COMPREHENSIVE ANNUAL
FINANCIAL REPORT
TOWN OF MOUNT PLEASANT
SOUTH CAROLINA
FOR FISCAL YEAR ENDED
JUNE 30, 2014
FINANCE DIVISION
OF ADMINISTRATIVE SERVICES
CHARLES H. POTTS
CHIEF FINANCIAL OFFICER
JEANNE N. GRIFFIN
FINANCIAL SERVICES OFFICER
NANCY DRAGO
ACCOUNTING MANAGER
TOWN OF MOUNT PLEASANT, SOUTH CAROLINA
TABLE OF CONTENTS
FOR THE YEAR ENDED JUNE 30, 2014
INTRODUCTORY SECTION (UNAUDITED)
Page Number
Transmittal Letter
1
Listing of Principal Officials
8
Organizational Chart - Town of Mount Pleasant
9
Organizational Chart - Finance Division of Administrative Services
10
Certificate of Achievement for Excellence in Financial Reporting
11
FINANCIAL SECTION
INDEPENDENT AUDITOR'S REPORT
13
The Finance Department Mission Statement
17
Management's Discussion and Analysis
19
BASIC FINANCIAL STATEMENTS
Government-Wide Financial Statements:
Statement of Net Position
32
Statement of Activities
33
Fund Financial Statements:
Balance Sheet - Governmental Funds
34
Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide
Statement of Net Position
36
Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds
38
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of
Governmental Funds to the Statement of Activities
40
Statement of Assets and Liabilities - Fiduciary Funds - Agency Funds
41
Notes to the Financial Statements
42
REQUIRED SUPPLEMENTARY INFORMATION:
Budgetary Comparison Schedule
Required Supplementary Information - General Fund - Schedule of Revenues,
Expenditures, and Changes in Fund Balance -Budgets and Actual
71
Notes to the Budgetary Comparison Schedules
72
Other Post Employment Benefit Plan Schedules
Required Supplementary Information - Defined Benefit Healthcare Plan Schedules of Employer Contributions and Funding Progress
73
(Continued)
i
TOWN OF MOUNT PLEASANT, SOUTH CAROLINA
TABLE OF CONTENTS
FOR THE YEAR ENDED JUNE 30, 2014
FINANCIAL SECTION (CONTINUED)
Page Number
SUPPLEMENTARY INFORMATION:
Combining and Individual Fund Financial Schedules:
Combining Balance Sheet - Nonmajor Governmental Funds
80
Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds
82
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual:
Accommodations Tax Special Revenue Fund
84
Hospitality Tax Special Revenue Fund
85
Special Permit Special Revenue Fund
86
Storm Water Utility Special Revenue Fund
87
Victims' Advocate Special Revenue Fund
88
Impact Assessment Special Revenue Fund
89
TIF Bond Capital Projects Fund
90
Combining Schedule of Changes in Assets and Liabilities - Fiduciary Fund - Agency Funds
91
Schedule of Fines, Assessments, and Surcharges - Victims' Advocate Special Revenue Fund
92
STATISTICAL SECTION (UNAUDITED)
Financial Trends Information
Net Position by Component - Last Ten Fiscal Years - Accrual Basis
95
Changes in Net Position - Last Ten Fiscal Years - Accrual Basis
96
Fund Balances of Governmental Funds - Last Ten Fiscal Years - Modified Accrual Basis
97
Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years - Modified Accrual Basis
98
General Governmental Tax Revenues by Source - Last Ten Fiscal Years - Modified Accrual Basis
99
Revenue Capacity Information
Assessed Value and Estimated Actual Value of Taxable Property - Last Ten Fiscal Years
100
Property Tax Rates - Direct and Overlapping Governments - Last Ten Fiscal Years
101
Principal Property Taxpayers - Current Year and Nine Years Ago
102
Property Tax Levies and Collections - Last Ten Fiscal Years
103
Debt Capacity Information
Ratios of Outstanding Debt by Type - Last Ten Fiscal Years
104
Ratios of General Bonded Debt Outstanding - Last Ten Fiscal Years
105
Direct and Overlapping Governmental Activities Debt - For The Year Ended June 30, 2014
106
Legal Debt Margin Information - Last Ten Fiscal Years
107
Pledged-Revenue Coverage - Last Ten Fiscal Years
108
(Continued)
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TOWN OF MOUNT PLEASANT, SOUTH CAROLINA
TABLE OF CONTENTS
FOR THE YEAR ENDED JUNE 30, 2014
STATISTICAL SECTION (UNAUDITED) (CONTINUED)
Page Number
Demographic and Economic Information
Demographic and Economic Statistics - Last Ten Fiscal Years
109
Principal Employers - Current Year and Nine Years Ago
110
Operating Information
Full-Time Equivalent City Government Employees by Function - Last Ten Calendar Years
111
Operating Indicators by Function - Last Ten Fiscal Years
112
Capital Asset Statistics by Function - Last Ten Fiscal Years
113
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December 1, 2014
To the Honorable Mayor, Members of the Town Council, and Citizens of the Town of Mount Pleasant:
State law requires that every general-purpose local government publish a complete set of financial
statements presented in conformity with generally accepted accounting principles (“GAAP”) and audited
in accordance with generally accepted auditing standards by a firm of licensed certified public
accountants. This report is published to fulfill that requirement for the fiscal year ended June 30, 2014.
Management assumes full responsibility for the completeness and reliability of the information contained
in this report, based upon a comprehensive framework of internal control that it has established for this
purpose. The cost of internal control should not exceed anticipated benefits. Accordingly, the objective
of internal controls is to provide reasonable, rather than absolute, assurance that the financial statements
are free of any material misstatements.
Greene, Finney & Horton, LLP, Certified Public Accountants, have issued an unmodified opinion on the
Town of Mount Pleasant’s financial statements for the year ended June 30, 2014. The independent
auditor’s report is located at the front of the financial section of this report.
Management’s discussion and analysis (“MD&A”) immediately follows the independent auditor’s report
and provides a narrative introduction, overview, and analysis of the basic financial statements. MD&A
complement this letter of transmittal and should be read in conjunction with the Financial Statements.
Profile of the Government
The Town of Mount Pleasant is located in the southeastern part of South Carolina, connected by the
Arthur Ravenel, Jr. Bridge across the Cooper River to the City of Charleston. The Town was first settled
by the British in 1680. Large plantations once covered the area that has become Mount Pleasant; the
name itself came from a small plantation owned by Jacob Motte. In 1803, the estate was sold to James
Hibben who subsequently subdivided the property into 35 large village lots founding the village of Mount
Pleasant. Merging with settlements nearby, the Town was incorporated in 1837 and grew throughout the
1800’s.
During the first half of the 20th century, the Town was quite small and grew slowly. In 1946, following
World War II, the population numbered 1,500 and by 1960, grew to more than 5,000. The 2000 census
population of the Town was 47,609. In the 2010 census, the official count was 67,843 and Mount
Pleasant became the fourth largest municipality in South Carolina. In 2013, Mount Pleasant was
recognized as the ninth fastest growing large city in the nation and had the largest population gain in
South Carolina. Population estimates for 2015 reach 81,151.
The Town operates under the Council form of government as provided in S.C. Code 5-11-10 et. seq. as
amended. The Council is composed of the Mayor and eight council members elected at large. Council
terms run for a period of four years with four of the council seats terms expiring on alternating years.
Under this form of government, all legislative and administrative powers are vested in the Council. Each
member of Council, including the Mayor, has one vote. The Council enacts ordinances and resolutions
relative to municipal services, levies taxes, establishes appropriations, issues debt, and institutes other
fees and regulations, which aid in the maintenance of equitable treatment and quality standards within the
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municipality. The Council employs a Town Administrator to ensure that management functions are
carried out within the policies and procedures endorsed by Council and that personnel requirements and
budget constraints are upheld by the departments. Town departments include General Government,
Municipal Court, Legal, Police, Fire, Public Services, Planning and Development, Recreation, and
Transportation.
The Town’s fiscal affairs are budgeted annually and in accordance with Article X of the South Carolina
Constitution. After input from the department managers and the Chief Financial Officer, the Town
Administrator presents the proposed budget to Council. A public hearing is held, the proposed budget is
further reviewed and ultimately adopted by Town Council. At the request of a department, line items
may be adjusted by the Town Administrator although the total appropriation for such department may not
be exceeded. In order to modify the original ordinance adopting the budget, formal action must be taken
by the Town Council.
Local Economy
Located in the Charleston Metropolitan area which includes the second (City of Charleston) and third
(City of North Charleston) largest cities in South Carolina, Mount Pleasant benefits from a strong and
diverse regional economy. The region is driven by six engines of growth: (1) Port of Charleston, (2)
Medical Industry, (3) Visitor Industry, (4) Military, (5) Higher Education, and (6) Manufacturing.
Port of Charleston – The Port of Charleston (the “Port”) comprises seaport facilities in Charleston, North
Charleston, Mount Pleasant, and Georgetown. The South Carolina Ports Authority (“SCPA”) operates
five facilities located in Charleston harbor and employs a total of approximately 500 people. The Port
annually handles shipments valued in excess of $58 billion and helps facilitate the employment of an
estimated 260,800 South Carolina residents.
Healthcare Industry – The region’s medical industry accounts for over ten percent of the area’s total
employment. Mount Pleasant is home to two hospitals and numerous medical offices.
Visitor Industry – Tourists arrive in the region by land, sea, and air. The centrally located Charleston
International Airport brings in tourists from around the world. Tourism generates an economic impact of
approximately $4 billion annually. The past few years have seen the emergence of a new facet to the
region’s tourism market, the cruise ship industry. The cruise business has an estimated $37 million
annual impact on the market. Mount Pleasant benefits from the strong visitor industry, as evidenced by
increases in Accommodations Tax and Hospitality Tax revenues.
Military – The military provides a large economic impact to the region. There are 22,000 active-duty
reserve personnel, civilians, and civilian contractors employed in the region by the area’s defense
facilities. The annual economic impact of the military on the region is estimated at $5 billion.
Higher Education – There are 25 colleges and universities offering a range of two-year, bachelor’s,
masters and doctoral degree programs in the region. In 2011, Trident Technical College opened a satellite
campus in Mount Pleasant. Currently, Francis Marion University is offering a four year nursing program
in Mount Pleasant. There is discussion between the Town and Francis Marion about the possibility of
offering additional degrees locally. In addition to the abundance of higher education options, Mount
Pleasant’s single high school, Wando High School, opened a Career and Technology Academy in 2014 to
provide students opportunities to gain technical certifications. Areas of study include cosmetology,
automotive technology, nursing, engineering, biomedical, and horticulture.
Manufacturing – Within the manufacturing sector, the Charleston Regional Development Alliance has
adopted a recruitment strategy that targets four primary industries:
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(1) Aerospace; Boeing has a strong presence in the area, employs approximately 6,000 workers
with plans to expand their facility and add an additional 2,000 employees.
(2) Biomedical; The Medical University of South Carolina’s world-class research is key to the
region becoming a globally competitive location for biomedical business and talent. The
region offers a network of support businesses needed to thrive, as well as incentive programs
to facilitate the location/expansion of biomedical companies and venture investment.
(3) Advanced Security and Information Technology; The region is expanding efforts to draw
high-profile, high-tech companies to grow our knowledge economy. It is estimated that one
job in the high-tech sector is associated with the creation of approximately 4.3 additional jobs
in other industries.
(4) Wind energy; The wind energy sector is anchored locally by the Clemson University
Restoration Institute’s drive train test facility. The facility is the larger of the nation’s two
drive-train testing locations. In addition to advancing wind power, a goal of the facility
includes capturing jobs from companies that build the device, as well as those in the supply,
transportation, and port and construction businesses.
Mount Pleasant continues to outpace neighboring communities in residential construction. During fiscal
year 2014, the Town issued permits for 820 homes, the most since the peak of the building boom in 2005.
Neighborhoods under construction include Carolina Park, Oyster Point, Park West, Dunes West, and
Rivertowne. The Tides condominium community is adding a fourth building to the three existing
structures. Overlooking the Charleston Harbor, the Tides development experienced a reduction in sales
during the Great Recession. Construction of the additional high-end condos is an indication of the
improving local economy.
Numerous commercial projects are under construction or are in the plan review process. Some of these
projects include a new Walgreens, a medical office building, and two sports retail centers. The site of the
former Kmart shopping center in Mount Pleasant is being redeveloped and will be anchored by Dick’s
Sporting Goods and Nordstrom Rack. Significant expansion of the Belk department store at Towne
Centre has created a flagship store.
Two new mixed-use developments underway include Bridgeside at Patriots Point and the Boulevard on
Coleman. The Boulevard, opened in December 2013, includes 325 upscale apartments, and ground level
retail space to house merchants. The four-story development has been dubbed an important piece in the
efforts to transform one of the town’s major thoroughfares into a vibrant main street. Phase II of the
Boulevard is now underway.
Mount Pleasant continues to maintain a lower unemployment rate (4.2%) and higher per capita income
($39,347) than the State (6.6% and $22,128 respectively), two indicators of a strong economy.
Long-term Financial Planning
Future financial requirements are directly linked to the vision and goals outlined in the Town of Mount
Pleasant’s Comprehensive Plan, Strategic Plan, and Capital Improvement Plan.
The Comprehensive Plan is developed in accordance with South Carolina Code of Laws, Article 3,
Section 6-29-510. The purpose of the Comprehensive Plan is to help manage the physical, social and
economic growth, development and redevelopment of the Town. To accomplish the goals of the
Comprehensive Plan, recommended strategies are organized by plan element to create a five year
implementation plan.
One of the required elements of the Comprehensive Plan is the priority investment element. The priority
investment element addresses the coordination of major capital improvements, intergovernmental
coordination, and provides direction for implementing many of the recommended strategies described in
3
other elements. It encourages local jurisdictions to examine their future needs for capital improvements
and public facilities and associated funding sources over a ten year horizon.
The Strategic Plan is reviewed each year in January by Town Council. The overall plan is amended based
on the needs of the Town. The goals and objectives as stated in the Strategic Plan are used to guide the
capital and operational spending plan for the Town’s next four years.
The Capital Improvement Plan (“CIP”) is a five-year fiscal planning tool that is used to identify needed
capital projects and the appropriate funding and timing for those projects. The CIP is prepared annually
based on submissions from the Town’s various departments. The Town Administrator reviews each
project and presents a recommended CIP to Town Council. A financing strategy for approved projects is
developed based on a comprehensive financial forecast. The future impact of the completed projects on
the annual budget, including operational and staffing costs, is also considered.
The Town analyzes a number of financial indicators using the International City Managers Association’s
(“ICMA") guidelines contained in “Evaluating Financial Condition”. The analysis of these indicators is
designed to present information on the fiscal health of the Town which can then be used as one of the
factors influencing short-term organization-wide decisions and the long term financial forecast.
The Town’s financial trends are analyzed annually utilizing many factors in order to understand the
financial condition of the Town. These factors include:
(1) Global, National, State, Regional and Town economic conditions.
(2) Types and amounts of revenues and whether they are sufficient and the right mix to support the
population as the Town grows.
(3) Expenditure levels and whether these expenditures are sufficient to provide the desired level of
services as the Town continues to grow.
(4) Fund balances and debt levels and their impact on the Town’s current financial resources.
The following indicators provide insight into the overall financial position of the Town:
(1) Total General Fund Revenue per Capita – This trend ($727) is considered unfavorable since it
shows an eroding revenue base. This is to be expected since the time frame covers the Great
Recession. This indicator is expected to improve based on recent growth in revenue.
(2) Property Tax Revenue per Capita – This trend ($302) has been unfavorable, but is expected to
improve due to growth and an increase (3 mills) in the millage rate effective for the fiscal year
beginning July 1, 2014.
(3) General Fund Expenditure per Resident – This trend ($756) is favorable as cost cutting initiatives
such as outsourcing, cost sharing, job sharing and alternative fuel usage helped lower the cost per
capita.
(4) Employees per 1,000 Residents – A declining trend has been favorable (from 8.13 in 2010 to 7.10
in 2014).
(5) General Fund Balance – The increase in unassigned fund balance is a favorable trend (from
$15,437,000 in 2010 to $23,662,000 in 2014).
(6) General Fund Balance as a percentage of General Fund expenditures – This indicator (40%) is
favorable and demonstrates Council’s commitment to maintain an appropriate level of fund
balance.
(7) Long-term Debt as a percentage of Assessed Property Valuation – This indicator is favorable
given that the Town (7%) is below both the State law requirement (8%) and credit industry
standards (10%).
(8) Fringe Benefits as a percentage of Salaries and Wages – This trend has remained consistent over
the last four years (42-43%) and is considered favorable.
4
(9) Property Assessed Value Changes – The five year average growth is 4.32% and represents a
favorable trend.
(10) Other Postemployment Benefits (OPEB Liability per Employee) – This is a favorable trend due to
restructuring of the benefits and increases in contributions. The liability per employee has
decreased dramatically from $22,100 in 2010 to $6,999 in 2013.
During fiscal year 2014, the Town of Mount Pleasant’s General Obligation bond rating was upgraded
from AA+ to AAA by Standard & Poor’s Rating Services. Moody’s Investors Service maintained its
rating of Aa1, but raised the outlook from “stable” to “positive”. Both rating agencies view the Town as
being strong in its financial position, its management, and its political will to address tough problems.
Relevant Financial Policies
The Town’s financial decisions are guided by formal and informal financial policies designed to provide a
consistent and measurable framework for Town decision makers.
The Town, as a political subdivision of the State of South Carolina, is required to prepare and maintain a
balanced budget. For the fiscal year ended June 30, 2014, the Town’s budget was balanced.
Unassigned fund balance of $23,661,938 in the General Fund for the fiscal year ended June 30, 2014,
represents 40.1% of 2013-2014 General Fund expenditures. Town policy requires the unassigned fund
balance in the General Fund be no less than 25% of General Fund expenditures for the same year.
General Fund Committed Emergency Reserves of $2,000,000 were maintained in accordance with policy.
Per Town policy, during fiscal year 2014, $3,015,914 was transferred to the Infrastructure Fund from the
General Fund (based on 50% of audited excess fund balance for the fiscal year ended June 30, 2013, over
the 25% requirement above). The amount to be transferred next fiscal year will be $4,458,756. Town
policy also requires that 65% of the prior year’s Special Permit Fund State revenue be transferred to the
Infrastructure Fund for drainage projects. Based on 65% of fiscal year ended June 30, 2013, Special
Permit State revenue, $141,837 was transferred. Based on 65% of fiscal year ended June 30, 2014,
Special Permit State revenue, $165,477 will be transferred during the 2015 fiscal year.
An effective debt planning strategy promotes financial strength and flexibility and integrates the Town’s
financial position, Strategic Plan, and Capital Improvement Plan. The Town’s debt policy limits issuance
of general obligation bonds by requiring annual debt service payments to not exceed 25% of General
Fund operating expenditures for the same year. For the fiscal year ended June 30, 2014, annual debt
service payments were 13.0% of General Fund operating expenditures.
Major Initiatives
Town Council is committed to upgrading and maintaining the Town’s aging infrastructure. During 2012,
the Town hired a consulting firm to prepare a condition assessment of the Town’s infrastructure. As a
result of the consultant’s report, Council adopted the above-referenced transfer policy to establish funding
for infrastructure management. As in most communities across the nation, Mount Pleasant is facing
costly repairs, replacements, and improvements to Town-owned streets, sidewalks, and drainage systems.
Many of these assets are 30 to 50 years old. For safety purposes and for the purposes of attracting new
economic development and maintaining a vibrant community, Council realized that infrastructure
management should become a top priority. Transportation and drainage projects are approved in the
annual CIP budget based on a ranking system provided by the consultants, on staff recommendations, and
on citizen requests. In the fiscal year 2015 budget, Council approved an additional three mills to be used
for infrastructure projects. The annual Stormwater Fee was doubled to fund drainage infrastructure
repairs and maintenance and to help fund federal water quality mandates. Two new positions to manage
these projects were funded with Stormwater revenue.
5
Another major initiative for Town Council is the ongoing revitalization of Coleman Boulevard. Some
elements of this approximately $20 million project, include drainage improvements, undergrounding
utilities, streetscape enhancements, and a traffic circle to replace an existing intersection. It is Council’s
intent to design and construct an urban core along Coleman Boulevard to include mixed use zoning,
structured parking, dining, and pedestrian friendly walkways. Shem Creek on Coleman Boulevard is a
popular destination for both tourists and locals. Home to the Town’s shrimping industry, Shem Creek is
known for its excellent seafood restaurants and picturesque views of the Charleston Harbor. As part of
the revitalization effort, the Town purchased land on Shem Creek and during 2013, completed Phase I of
a public park which included the construction of a walkway and dock, creating additional public access to
this special area of Town. Shem Creek Park Phase II is budgeted in the Town’s Capital Improvement
Plan and funding has been identified. Phase II will create a waterfront walkway for the public allowing
for the ability to walk along the creek edge from a point near the Shem Creek Bridge to the end of the
existing Town docks.
The Town has completed the design phase for the construction of a new town hall. The current Municipal
Complex is comprised of separate buildings, one of which is a former elementary school. While these
facilities have served us well, they cannot meet the needs of a growing community such as Mount
Pleasant. The new facility will house all of the departments that currently occupy separate buildings, and
will provide increased security for staff while still serving the public in a friendly and inviting manner.
The Town solicited input from the public at the beginning stages of this project. The estimated
completion date for this project is June 2016.
In an ongoing effort to control the rising costs of health care, the Town implemented two new initiatives
during fiscal year 2014. Previous efforts to reduce health care costs have included increasing employee
premiums and co-pays, increasing deductibles and out-of-pocket limits, and reducing benefits. The latest
initiatives are a Medical Advocate Program (“MAP”) and the hiring of two primary care physicians
through Paladina Health. Through a simple phone call, MAP provides access to an advocate nurse to
guide and coach employees towards higher qualified physicians at the most cost- effective facilities.
Employees receive incentives for using MAP, save on co-pays, reduce the Town’s cost for procedures,
and in turn, become more educated consumers of health care. Paladina Health’s dedicated physicians are
expected to create a health care savings by providing primary, preventive and urgent care services inhouse instead of through other networks. Since both of these programs are new, data needed to provide a
cost-benefit analysis is currently unavailable.
Awards and Acknowledgments
The Government Finance Officers Association of the United States and Canada (“GFOA”) awarded a
Certificate of Achievement for Excellence in Financial Reporting to the Town of Mount Pleasant for its
Comprehensive Annual Financial Report (“CAFR”) for the fiscal year ended June 30, 2013. This was the
twenty-sixth consecutive year that the Town has received this prestigious award. In order to be awarded a
Certificate of Achievement, the government has to publish an easily readable and efficiently organized
CAFR, which satisfies both generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current CAFR
continues to meet the Certificate of Achievement Program’s requirements and we are submitting it to the
GFOA to determine its eligibility for another certificate.
The Town also received GFOA’s Distinguished Budget Presentation Award for the second time for fiscal
year 2013-2014. In order to receive this award, the budget process and documents must meet program
criteria as a policy document, operations guide, financial plan, and communications device.
6
The preparation of this report would not have been possible without the efficient and dedicated service of
the Finance staff. We wish to express our appreciation to the Town’s various departments who assisted
and contributed to its preparation. Credit also must be given to the Mayor and Town Council for their
unfailing support for maintaining the highest standards of professionalism in the management of the
Town of Mount Pleasant’s finances.
Respectfully submitted,
Eric M. DeMoura
Town Administrator
Charles H. Potts
Chief Financial Officer
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TOWN OF MOUNT PLEASANT, SOUTH CAROLINA
MAYOR
Linda Page
MAYOR PRO TEMPORE
Thomasena Stokes-Marshall
COUNCIL MEMBERS
Elton Carrier
Ken Glasson
Chris O’Neal
Mark Smith
Paul Gawrych
Chris Nickels
Gary Santos
Thomasena Stokes-Marshall
MUNICIPAL JUDGES
J. Lawrence Duffy, Jr.
Tom Hesse
David Michel
Jack Sinclaire
Tanya Staubes
TOWN ADMINISTRATOR
Eric M. DeMoura
DEPARTMENT HEADS
Corporation Counsel
Court Administrator
Chief Financial Officer
Police Chief
Fire Chief
Planning and Development Director
Public Services Director
Recreation Director
Transportation Director
David G. Pagliarini
LeVica Kirvin
Charles H. Potts
Carl Ritchie
Herbert Williams
Christiane Farrell
Joseph H. Peele, III
Kenneth Ayoub
Brad Morrison
8
9
BUSINESS LICENSES
INFORMATION TECHNOLOGY
FLEET MAINTENANCE
CODE ENFORCEMENT
BUILDING INSPECTION
ECONOMIC DEVELOPMENT
HUMAN RESOURCES
PURCHASING
PROGRAMMING
LONG RANGE PLANNING
FINANCE ADMINISTRATION SERVICES
ENGINEERING
ATHLETICS RECREATION DEPARTMENT
CURRENT PLANNING
PLANNING & DEVELOPMENT
COMMITTEES
STREETS & DRAINAGE
EMERGENCY RESPONSE
SANITATION
PUBLIC SERVICES
BUILDINGS & GROUNDS
LITIGATION
LEGAL DEPARTMENT
INSPECTION
SUPPRESSION
FIRE DEPARTMENT
LEGAL COUNSEL
COMMUNITY DEVELOPMENT & TOURISM
TOWN ADMINISTRATOR
PUBLIC INFORMATION
COMMISSIONS
MAYOR AND TOWN COUNCIL
CITIZENS
MUNICIPAL JUDGES
COMMUNITY AWARENESS
INVESTIGATIONS
PATROL
POLICE DEPARTMENT
TOWN OF MOUNT PLEASANT
BENCH WARRANTS
TRIALS
FINES & FORFEITURES
MUNICIPAL COURT
SIGNALIZATION
ROAD CONSTRUCTION
INFRASTRUCTURE ASSESSMENTS
TRANSPORTATION
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PAYROLL TECHNICIAN
STORMWATER CLERK(FROZEN)
ACCT TECH ASSETS
ACCT TECH STORMWATER
ACCT TECH ACCOUNTS PAYABLE
ACCOUNTING TECHNICIAN
ACCT TECHNICIAN SP FUNDS/GRANTS
ACCOUNTING MANAGER
FINANCIAL SERVICES OFFICER
FINANCIAL SERVICES DIVISION
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12
Greene Finney &Horton
C E RT I F I E D
& CO N S U LTAN T S
P U B L I C A C C O U N TA N T S
INDEPENDENT AUDITOR’S REPORT
Honorable Mayor and Members of Town Council
Town of Mount Pleasant
Mount Pleasant, South Carolina
Report on Financial Statements
We have audited the accompanying financial statements of the governmental activities, each major fund, and
the aggregate remaining fund information of the Town of Mount Pleasant, South Carolina, (the “Town”) as of
and for the year ended June 30, 2014, and the related notes to the financial statements, which collectively
comprise the Town’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes the
design, implementation, and maintenance of internal control relevant to the preparation and fair presentation
of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our
audit in accordance with auditing standards generally accepted in the United States of America and the
standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether due to fraud or error. In making those
risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation
of the financial statements in order to design audit procedures that are appropriate in the circumstances, but
not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly,
we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used
and the reasonableness of significant accounting estimates made by management, as well as evaluating the
overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinions.
W W W. G F H L L P. C O M
8 64 2 3 2 .5 204 P l ! · 864 .23 2 5 5 3 2 f A X
84 3.73 5 .5805 P H
8 6 4 . 4 5 1 .7 3 8 1 P H
I N F O t!:'J G F H L L P. C O M
2 1 1 E A S T B U T LE R R O A D . S U IT E C - 6
1 9 8 5 R. !V l E R A D R I V E . S U I T E 1 0 3 - 2 0 3
M.T. P L C A S A N T. S C 2 9 4 6 4
8 0 0 E A S T W A S H I N G T O N S T R EE T , S U IT E D
13
M A U L D I N . S C 2 96 6 2
G R EE N V I L LE . S C 2 9 6 0 1
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective
financial position of the governmental activities, each major fund, and the aggregate remaining fund
information of the Town of Mount Pleasant, South Carolina, as of June 30, 2014, and the respective changes
in financial position for the year then ended in accordance with accounting principles generally accepted in the
United States of America.
Pending Implementation of Governmental Accounting Standards Board Statement on Pensions
As discussed in Note IV.H, the Governmental Accounting Standards Board issued Statement No. 68,
“Accounting and Financial Reporting for Pension” (“Statement”) in June 2012. This Statement, which will
be adopted by the Town for the fiscal year ended June 30, 2015, will require the Town to report a net pension
liability on its applicable financial statements for its participation in the South Carolina Retirement System and
the Police Officers’ Retirement System (“Plans”). Based on recent information provided by the South
Carolina Public Employee Benefit Authority, it is anticipated that the Town’s share of the net pension liability
associated with these Plans will decrease the Town’s beginning net position by approximately $45,284,000.
Our opinion is not modified with respect to this matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s
discussion and analysis, the budgetary comparison schedule, and other post employment benefit plan
schedules, as listed in the table of contents, be presented to supplement the basic financial statements. Such
information, although not a part of the basic financial statements, is required by the Governmental Accounting
Standards Board who considers it to be an essential part of financial reporting for placing the basic financial
statements in an appropriate operational, economic, or historical context. We have applied certain limited
procedures to the required supplementary information in accordance with auditing standards generally
accepted in the United States of America, which consisted of inquiries of management about the methods of
preparing the information and comparing the information for consistency with management’s responses to our
inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic
financial statements. We do not express an opinion or provide any assurance on the information because the
limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Supplementary and Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the Town’s basic financial statements. The introductory section, supplementary information, and
the statistical section, as listed in the table of contents, are presented for purposes of additional analysis and
are not a required part of the basic financial statements.
The supplementary information is the responsibility of management and was derived from and relates directly
to the underlying accounting and other records used to prepare the basic financial statements. Such
information has been subjected to the auditing procedures applied in the audit of the basic financial
statements and certain additional procedures, including comparing and reconciling such information directly
to the underlying accounting and other records used to prepare the basic financial statements or to the basic
financial statements themselves, and other additional procedures in accordance with auditing standards
generally accepted in the United States of America. In our opinion, the supplementary information is fairly
stated, in all material respects, in relation to the basic financial statements as a whole.
The introductory section and statistical section have not been subjected to the auditing procedures applied in
the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any
assurance on them.
14
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December 1, 2014
on our consideration of the Town’s internal control over financial reporting and on our tests of its compliance
with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose
of that report is to describe the scope of our testing of internal control over financial reporting and compliance
and the results of that testing, and not to provide an opinion on internal control over financial reporting or on
compliance. That report is an integral part of an audit performed in accordance with Government Auditing
Standards in considering the Town’s internal control over financial reporting and compliance.
Greene, Finney, and Horton, LLP
Mauldin, South Carolina
December 1, 2014
15
16
TheFinanceDepartment
MissionStatement
The Finance Division serves the citizens,
elected officials and employees of the
Town of Mount Pleasant with integrity,
dedication, knowledge and experience
through prudent management of the
Town’s financial needs in accordance with
laws
and
safeguarding
professional
the
Town’s
resources.
17
standards
financial
This page is intentionally left blank
18
TOWN OF MOUNT PLEASANT, SOUTH CAROLINA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2014
As management of the Town of Mount Pleasant (“Town”), we offer readers of the Town’s financial statements this narrative
overview and analysis of the financial activities of the Town for the fiscal year ended June 30, 2014 (“2014” or “FY 2014”)
as compared to fiscal year ended June 30, 2013 (“2013” or “FY 2013”). The intent of this discussion and analysis is to look
at the Town’s financial performance as a whole. We would encourage readers to not only consider the information presented
here but also the information provided in the letter of transmittal, financial statements and notes to the financial statements to
enhance their understanding of the Town’s overall financial performance.
FINANCIAL HIGHLIGHTS







The assets of the Town exceeded its liabilities and deferred inflows of resources at the close of the fiscal year by
approximately $493,664,000 (net position). Of this amount, approximately $26,342,000 (unrestricted net position) may
be used to meet the government’s ongoing obligations to citizens and creditors.
The government’s total net position increased by approximately $10,338,000, as total revenues of approximately
$84,994,000 exceeded total expenses of approximately $74,656,000.
As of the close of the current fiscal year, the Town’s governmental funds reported combined ending fund balances of
approximately $97,794,000, an increase of approximately $33,191,000 over the prior year fund balance.
At the end of the current fiscal year, unassigned fund balance for the General Fund was approximately $23,662,000, or
approximately (40%) of total General Fund expenditures for the year ended June 30, 2014.
The Town’s total capital assets decreased approximately $1,006,000 (0.2%) during the current fiscal year, as capital asset
additions of approximately $12,312,000 were exceeded by depreciation expense of approximately $12,845,000 and net
disposals of approximately $473,000.
The Town’s total long-term obligations increased by approximately $21,565,000 (42%) during the current fiscal year.
The increase in long-term obligations is primarily due to issuance of the 2014 General Obligation bonds of $25,000,000
(plus a bond premium received of approximately $2,649,000) as well as two new capital leases issued during the year of
approximately $3,114,000, which were partially offset by scheduled principal payments on debt and capital leases of
approximately $9,234,000.
The Town implemented GASB Statement No. 65, “Items Previously Reported as Assets and Liabilities” (“GASB #65”)
in 2014. GASB #65 establishes accounting and financial reporting standards that require reclassification, as deferred
outflows of resources or deferred inflows of resources, certain items that were previously reported as assets and liabilities
and recognizes, as outflows of resources or inflows of resources, certain items that were previously reported as assets and
liabilities. GASB #65 supplements and extends the reach of GASB Statement No. 63, “Financial Reporting of Deferred
Outflows of Resources, Deferred Inflows of Resources, and Net Position”, which was adopted by the Town in 2013. The
Town’s only former financial statement item that was affected by the implementation of GASB #65 was its deferred
revenue liability (for unavailable – property taxes, unavailable – other, and deferred revenue – business licenses) in its
statements of financial position. Under GASB #65, deferred revenue that is not available or deferred revenue that is
received by a government but is applicable to a future year should no longer be shown as a liability but will be
reclassified and shown as a component of deferred inflows of resources.
OVERVIEW OF FINANCIAL STATEMENTS
This annual report consists of two parts – Financial Section (which includes management’s discussion and analysis, the
financial statements, required supplementary information, and supplementary information), and Statistical Section.
Basic Financial Statements
This discussion and analysis is intended to serve as an introduction to the Town’s financial statements. The Town’s financial
statements comprise three components; 1) government-wide financial statements, 2) fund financial statements, and 3) notes
to the financial statements. The financial statements present two different views of the Town through the use of governmentwide statements and fund financial statements. In addition to the financial statements, this report contains supplementary
information that will enhance the reader’s understanding of the financial condition of the Town.
The financial statements include two kinds of statements that present different views of the Town. The government-wide
financial statements are designed to provide readers with a broad overview of the Town’s finances in a manner similar to a
private-sector business.
19
TOWN OF MOUNT PLEASANT, SOUTH CAROLINA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2014
OVERVIEW OF FINANCIAL STATEMENTS (CONTINUED)
Government-Wide Financial Statements
The statement of net position presents information on all of the Town’s assets, deferred outflows of resources (if any),
liabilities, and deferred inflows of resources (if any), with the differences between them 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 Town 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 as soon as the underlying event giving rise to the change occurs,
regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that
will only result in cash flows in future fiscal periods.
Government-wide financial statements are divided into two categories: 1) governmental activities; and 2) business-type
activities. The Town does not have any business-type activities, but its governmental activities include general government,
justice department, public safety, public service, highways and streets, planning and development, culture and recreation, and
interest and other charges. Taxes (including business licenses), building permits, impact assessments, other charges for
services, and state and federal grant funds finance most of these activities. The government-wide financial statements can be
found as listed in the table of contents.
Fund Financial Statements
The fund financial statements provide a more detailed look at the Town’s most significant activities. A fund is a grouping of
related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives.
The Town, like all other governmental entities in South Carolina, uses fund accounting to ensure and reflect compliance with
finance-related legal requirements, such as the General Statutes or the Town’s budget ordinance. All of the funds of the
Town can be divided into two categories: governmental funds and fiduciary funds.
Governmental Funds – Governmental funds are used to account for those functions reported as governmental activities in
the government-wide financial statements. Most of the Town’s basic services are accounted for in governmental funds.
These funds focus on how assets can be readily converted into cash flow (in and out), and what monies are left at year-end
that will be available for spending in the next year. Governmental funds are reported using the modified accrual basis of
accounting which provides a short-term spending focus. As a result, the governmental fund financial statements give the
reader a detailed short-term view that helps him or her determine if there are more or less financial resources available to
finance the Town’s programs. The relationship between governmental activities (reported in the Statement of Net Position
and the Statement of Activities) and governmental funds is described in a reconciliation that is a part of the fund financial
statements.
The Town maintains numerous individual governmental funds. Information is presented separately in the governmental fund
balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the
General Fund, Federal Grants Special Revenue Fund, State and Local Grants Special Revenue Fund, GO Bond Capital
Projects Fund, and TIF Bond Capital Projects Fund – as they are considered major funds. Information from the other
governmental funds is combined into aggregated presentations – other governmental funds. Individual fund data for each of
these non-major governmental funds is provided in the form of combining schedules elsewhere in this report. The
governmental fund financial statements can be found as listed in the table of contents.
Fiduciary Funds – Fiduciary funds are used to account for resources held for the benefit of parties outside the government.
Fiduciary funds are not reflected in the government-wide financial statement because the resources of those funds are not
available to support the Town’s own programs.
20
TOWN OF MOUNT PLEASANT, SOUTH CAROLINA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2014
OVERVIEW OF FINANCIAL STATEMENTS (CONTINUED)
Agency Funds are used to account for assets the Town holds on behalf of others. The Carolina Park Fund, Fireman’s Fund,
State Seized Assets and Drug Fund, and the Federal Seized Assets and Drug Fund are used by the Town to account for the
receipt and disbursement of funds received from a (a) development related to charitable contributions and (b) the State
relating to the payment of one percent of the premiums received by out of state fire insurance companies, (c) state assets that
were forfeited and/or seized during a law enforcement action and (d) federal assets that were forfeited and/or seized during a
law enforcement action. These assets are held until completion of court proceedings. Agency funds are custodial in nature
and do not present results of operations. The financial statement of the fiduciary funds can be found as listed in the table of
contents.
Notes to the Financial Statements – The notes provide additional information that is essential to a full understanding of the
data provided in the government-wide and fund financial statements. The notes to the financial statements can be found as
listed in the table of contents.
Other Information – In addition to the financial statements and accompanying notes, this report includes certain required
supplementary information. Regarding the Town’s major funds, the Town adopts an annual budget for its General Fund, as
required by the General Statutes. A required budgetary comparison schedule has been provided to demonstrate compliance
with the budget. The Town sponsors a single-employer defined benefit healthcare plan (“OPEB Plan”). The Town has
provided the required schedule of employer contributions and the schedule of funding progress for the OPEB Plan. Required
supplementary information can be found as listed in the table of contents.
Supplementary information, including non-major governmental funds and budgetary comparison schedules for the non-major
budgeted funds, is presented immediately following the required supplementary information. These schedules can be found
as listed in the table of contents.
Figure A-1 - Major Features of the Town’s Government-Wide and Fund Financial Statements
Fund Financial Statements
Scope
Government-Wide
Financial Statements
Entire Town (except
fiduciary funds).
Governmental Funds
The activities of the Town that are not
fiduciary.
Fiduciary Funds
Instances in which the Town is
the trustee or agent for
someone else’s resources.
Required financial
statements
 Statement of net
position.
 Statement of
activities.
 Balance sheet.
 Statement of revenues, expenditures,
and changes in fund balances.
 Statement of assets and
liabilities.
Accounting basis
and measurement
focus
Accrual accounting and
economic resources
focus.
Modified accrual accounting and
current financial resources focus.
Accrual accounting and
economic resources focus.
Type of balance
sheet
information
All balance sheet types,
both financial and
capital, and short-term
and long-term.
Only assets and deferred outflows of
resources (if any) expected to be used
up and liabilities and deferred inflows
of resources (if any) that come due
during the year or soon thereafter; no
capital assets included.
All balance sheet types, both
short-term and long-term.
Type of
inflow/outflow
Information
All revenues and
expenses during the
year, regardless of
when cash is received
or paid.
Revenues for which cash is received
during or soon after the end of the year;
expenditures when goods or services
have been received and payment is due
during the year or soon thereafter.
All revenues and expenses
during the year, regardless of
when cash is received or paid.
21
TOWN OF MOUNT PLEASANT, SOUTH CAROLINA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2014
GOVERNMENT-WIDE FINANCIAL ANALYSIS
The following table provides a summary of the Town’s net position at June 30, 2014 compared to June 30, 2013:
Town's Governmental Activities
June 30, 2014
June 30, 2013 ^
Assets:
Current and Other Assets
Capital Assets, Net
Total Assets
$
Liabilities:
Long-Term Liabilities
Other Liabilities
Total Liabilities
Deferred Inflows of Resources:
Deferred Revenue
Total Deferred Inflows of Resources
Net Position:
Net Investment in Capital Assets
Restricted Assets
Unrestricted
Total Net Position
$
117,602,057
466,965,993
584,568,050
$
83,321,844
467,971,832
551,293,676
73,031,396
11,102,781
84,134,177
51,465,958
10,155,931
61,621,889
6,770,363
6,770,363
6,346,654
6,346,654
432,653,188
34,668,383
26,341,939
493,663,510
432,528,949
29,087,245
21,708,939
483,325,133
$
^ The Town implemented GASB #65 in FY 2014 and has restated FY 2013 balances for comparability purposes. See Note
I.B in the notes to the financial statements for more details.
The Town’s current and other assets at June 30, 2014 increased by approximately $34,280,000 (41%) from the prior year,
primarily due to the issuance of the 2014 General Obligation Bonds (“2014 GOB”). Related to the 2014 GOB, the Town had
unspent bond proceeds of approximately $20,719,000 which are restricted for funding future capital projects and bond
premium proceeds of approximately $2,535,000 which are restricted for future debt service requirements. The remaining
increase was the result of revenue growth in Charges for Services, Property Taxes and Other Revenues that partially offset
the decline in Grants and Contributions Revenue. The revenue growth in non-grant funds combined with a reduction in
Highway & Streets expense resulted in the Town holding more cash and equivalents at year end.
The Town’s capital assets at June 30, 2014 decreased by approximately $1,006,000 (0.2%) (net of accumulated depreciation).
During 2014, the Town received donations of capital assets of approximately $4,869,000 which consisted of infrastructure
from developers. Of this amount, approximately $1,928,000 is representative of right-of-ways/land; $378,000 for curbs and
sidewalks; $1,452,000 for roads & road improvements; and $1,111,000 for storm water related improvements. The Town
also removed 2.954 acres of land previously donated by Carolina Park with a value of $435,000 which was exchanged for a
more prominent site located in Carolina Park to build Fire Station #6 and sold/disposed of approximately $303,000 in assets.
The Town completed approximately $2,092,000 in on-going capital projects which were reclassified from Construction in
Progress as follows: approximately $988,000 for Hungryneck Blvd. Phase IV improvements; approximately $811,000 for
Dunes West Blvd resurfacing; and approximately $293,000 for improvements at Wando Boulevard Business Park. There
were several on-going capital projects remaining in construction in progress at the end of the fiscal year, of which
approximately $2,290,000 related to building and road projects such as the Six Mile Public Services Facility improvements,
design and architectural studies for a New Town Hall, Hamlin Brewer Tract improvements, Water Front Park improvements,
realignment of Patriots Point Boulevard, construction related to Fire Station #6 in Carolina Park, Sweetgrass Basket Pkwy
Phase 4A, and Whitehall Terrace Community Center. Stormwater related projects of approximately $383,000 were
outstanding, including Water Quality Monitoring projects, Edwards Park Pump Station Replacement, Laurel Grove Pipe
Repair/Replacement, Belle Hall/Hibben improvements, Brickyard Outfall Bridge, and Flap Gate Replacements.
22
TOWN OF MOUNT PLEASANT, SOUTH CAROLINA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2014
GOVERNMENT-WIDE FINANCIAL ANALYSIS (CONTINUED)
The Town also spent approximately $3,248,000 in capital lease purchase proceeds as follows: approximately $1,606,000 for
the Fire Department including $1,499,000 for Fire Trucks and approximately $107,000 for (2) Quick Response Vehicles;
approximately $51,000 for (2) vehicles for the Planning Department; approximately $743,000 for (20) vehicles for the Police
Department; approximately $791,000 for Public Services, including approximately $61,000 for equipment, approximately
$44,000 for (2) vehicles and approximately $686,000 for Heavy Vehicles; approximately $32,000 to purchase (1) vehicle for
the Recreation Department and approximately $25,000 to purchase (1) vehicle for the Transportation Department.
Total liabilities at June 30, 2014 increased by approximately $22,512,000 (37%) from the prior year. The increases related to
long-term liabilities total approximately $21,565,000 and are as follows: $25,000,000 of General Obligation Bonds issued,
plus additional capital lease borrowings of $3,114,000 and a net premium increase of $2,581,000 offset by approximately
$4,795,000 in reductions to long-term debt related to General Obligation Bonds, approximately $2,477,000 in reductions to
Tax Increment Financing Bonds, and approximately $1,963,000 in reductions related to Capital Leases. Other changes to
long-term liabilities include approximately $278,000 increase to the Town’s OPEB Liability; reduction to Infrastructure
Credits of approximately $345,000 and approximately $172,000 increase to compensated absences. Other Liabilities
increased by approximately $947,000 (9%) due to an increase in unearned revenue for Sweetgrass Parkway and a reduction
in accounts payable and retainage payable.
Deferred inflows of resources increased by approximately $424,000 (7%) due to deferred Insurance Licenses revenue
increasing as a result of changes from the Brokers Tax Collection Program and the Dodd-Frank Act which changed insurance
reporting requirements. The new reporting requirements resulted in the Town receiving credit for more locations within the
Town.
The Town’s net position increased by approximately $10,338,000 during the current fiscal year, or a total increase of two
percent. Revenue slightly declined but expenses significantly declined due to the completion of the Highway 17 and
Bowman road projects. The result is the Town held more cash and equivalents at year end.
Assets exceeded liabilities and deferred inflows of resources (net position) by approximately $493,664,000 at the close of the
most recent fiscal year. By far the largest portion of the Town’s net position, or approximately $432,653,000 (88%), reflects
its investment in capital assets (i.e., land, buildings, furniture and equipment, infrastructure, etc.) less any related outstanding
debt, including capital leases, used to acquire those assets. The Town uses these capital assets to provide services to citizens;
consequently, these assets are not available for future spending. Although the Town’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 generally be used to liquidate these liabilities.
An additional portion of the Town’s net position of approximately $34,668,000 (7%) represents resources that are subject to
external restrictions on how they may be used. This portion of the net position is restricted primarily for special revenue
programs which are restricted by the revenue source (i.e. impact assessment fees, tax increment financing revenues,
accommodation taxes, hospitality taxes, etc.). The remaining balance is unrestricted net position of approximately
$26,342,000 (5%) which may be used to meet the government’s ongoing obligations to citizens and creditors.
23
TOWN OF MOUNT PLEASANT, SOUTH CAROLINA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2014
GOVERNMENT-WIDE FINANCIAL ANALYSIS (CONTINUED)
The following table shows the changes in the Town’s net position for FY 2014 compared to FY 2013.
Town's Governmental Activities
2014
2013
Revenues:
Program Revenues:
Charges for Services
Operating Grants and Contributions
Capital Grants and Contributions
General Revenues:
Property Taxes
Other Taxes
State Shared
Other
$
10,298,743
793,704
6,434,480
$
8,776,458
999,967
14,845,290
27,713,286
36,756,399
1,472,155
1,525,096
26,559,195
33,970,372
1,463,729
996,761
Total Revenues
84,993,863
87,611,772
Expenses:
General Government
Justice Department
Public Safety
Public Service
Highway and Streets
Planning and Development
Culture and Recreation
Interest and Other Charges
20,024,819
1,188,269
19,950,935
9,248,984
6,920,853
9,326,570
6,819,185
1,175,871
20,571,792
1,137,647
17,865,105
9,094,277
20,890,066
9,080,432
7,198,147
1,440,709
Total Expenses
74,655,486
87,278,175
Net Change in Net Position
10,338,377
333,597
483,325,133
482,991,536
Net Position - Beginning of Year
Net Position - End of Year
$
493,663,510
$
483,325,133
Revenues exceeded expenses by approximately $10,338,000 for FY 2014. Total revenues decreased from the prior year by
approximately $2,618,000 (3%) to approximately $84,994,000. The largest part of this decrease can be attributed to
reductions to Capital Grants and Contributions totaling approximately $8,411,000 related to Highway 17 and Bowman
transportation projects (SCDOT and SIB Grants) which were received in the prior year. The decrease in Capital Grants and
Contributions was partially offset by growth in most other revenue sources (i.e. sales tax, accommodation taxes, hospitality
taxes, business licenses, etc.) of approximately $5,999,000 (8%). Operating Grants had a slight reduction of approximately
$206,000.
Expenses decreased approximately $12,623,000 (14%) over the prior year to approximately $74,655,000. The activity with
the largest decrease is Highway and Streets with decreased expenses of approximately $13,969,000 (67%) over the prior year
to approximately $6,921,000. This decrease is related to completing construction for Highway 17 Widening, Highway 17
Interchange, and Bowman Road Widening. The work performed on roads owned by the State of South Carolina will not
become assets of the Town and are not tracked as such.
Public Safety increased $2,086,000 (12%) mainly due to the Consolidated Dispatch payment and the additional firefighters
hired for the new Fire Station #6. The final payment per the Consolidated Dispatch Agreement will be in FY 2015.
24
TOWN OF MOUNT PLEASANT, SOUTH CAROLINA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2014
FINANCIAL ANALYSIS OF THE TOWN’S FUNDS
As noted previously, the Town uses fund accounting to ensure and demonstrate compliance with finance-related legal
requirements.
Governmental Funds – The focus of the Town’s governmental funds is to provide information on near-term inflows,
outflows, and balances of spendable resources. Such information is useful in assessing the Town’s financing requirements.
In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending
at the end of the fiscal year.
As of the end of the current fiscal year, the Town’s governmental funds reported combined ending fund balance of
approximately $97,795,000, which represents an increase of approximately $33,191,000 in comparison with the prior year.
Approximately (24%) of this total amount of $23,662,000 constitutes General Fund unassigned fund balance, which is
available for spending at the government’s discretion. The Town’s non-spendable fund balance was approximately $4,000 for
other assets. The remainder of fund balance is committed for emergency reserves for disaster recovery ($2,000,000),
committed for Charleston County 911 dispatch agreement ($252,000), committed for capital projects and debt service
($5,646,000), or restricted for a particular fund type as follows: (1) for federal, state and local grants special revenue
($542,000), (2) for debt service ($2,535,000), (3) for capital projects ($46,372,000), (4) for tourism related costs
($9,702,000), (5) by donors ($497,000), (6) for special permits ($723,000), (7) for storm water ($1,280,000), (8) for crime
victims’ related services ($91,000), and (9) for impact assessment infrastructure/capital assets ($4,489,000).
The General Fund is the chief operating fund of the Town. At the end of the current fiscal year, the total fund balance was
approximately $25,918,000. As a measure of the General Fund’s liquidity, it may be useful to compare total unassigned fund
balance to total General Fund expenditures. Total unassigned fund balance of the General Fund represents approximately
(40%) of total General Fund expenditures. During FY 2011, the Town adopted a fund balance policy which requires the
Town to leave (25%) of the total operating expenditures in the bank or approximately $14,744,000 for fiscal year ending June
30, 2014. This policy was put in place in order to meet the cash-flow needs of the Town and to avoid having to issue Tax
Anticipation Notes (“TANs”) for operations. This policy was developed based on historical data related to maintaining
sufficient reserves to sustain cash-flow until revenues are received from the County, State, or any other outside grantor
agency. The net increase in the fund balance of the General Fund was approximately $2,572,000 during FY 2014. Some of
the highlights for the increase in fund balance for the General Fund are as follows:

General Fund revenues increased by approximately $4,463,000 (9%) over the prior year primarily due to the
following:
o
Increased activity related to construction within the Town resulted in increases to the business license and
building permit revenue of approximately $2,360,000 or (11%) over the prior year’s revenues.
o
Property taxes increased approximately $593,000 (3%) above the prior year’s revenue due to growth in the
housing market.
o
Local option sales tax collections increased approximately $470,000 (6%) above the prior year’s revenue.
The local economy continues to benefit from population growth and a declining unemployment rate.
o
Charges for Services increased approximately $449,000 or (13%) primarily due to an increase in building
review fees and re-inspection fees.
o
Insurance and loss control increased approximately $278,000 (207%) due to insurance reimbursements.
o
A one-time revenue was recognized due to the dissolution of James Island of approximately $156,000
(100%).
o
Fines and Forfeitures and Other Revenues increased by approximately $157,000 (6%).
25
TOWN OF MOUNT PLEASANT, SOUTH CAROLINA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2014
FINANCIAL ANALYSIS OF THE TOWN’S FUNDS (CONTINUED)
Governmental Funds (Continued)
Ending fund balances for the special revenue funds increased by approximately $2,306,000 or (15%). A comparison by fund
to the prior fiscal year is listed below:
June 30, 2014
June 30, 2013
Federal Grants
State and Local Grants
Accommodations Tax
Donor Programs
Hospitality Tax
Special Permit
Storm Water Utility
Victims Advocate
Impact Assessments
$
516,830
24,833
2,394,003
496,792
7,307,692
723,237
1,280,237
90,894
4,488,787
$
493,637
19,157
1,905,692
858,697
6,630,597
664,886
974,882
131,249
3,338,243
Total
$
17,323,305
$
15,017,040
The fund balance related to the Federal Grants Fund increased approximately $23,000 (5%) in FY 2014 primarily due to the
transfer in and use of the General Fund grant match. The State and Local Grants fund increased $6,000 (30%) primarily due
to interest and grant match transfer from the General Fund.
The Federal Grants Special Revenue Fund expenditures decreased approximately $2,666,000 (74%) due to a reduction in
expenditures for Bowman Road Widening which is nearing completion. Reporting and grants monitoring continues to be the
focus for the Town’s financial staff especially in the area of tracking outstanding receivables with external grantor agencies
to ensure sufficient cash-flow.
The State and Local Grants Special Revenue Fund expenditures decreased approximately $8,351,000 (83%) due to a
reduction in expenditures for Highway 17 Interchange which is nearing completion.
The fund balance related to the Accommodations Tax Fund increased approximately $488,000 (26%) from the prior year.
This increase is related to additional revenues received from overnight stays at local hotels. Charleston was named (for the
4th year in a row) the #1 city in the United States in the 2014 Conde’ Nast Traveler Readers’ Choice Poll. The recognition
establishes our local area’s enduring appeal to visitors.
The fund balance related to the Hospitality Tax Fund increased approximately $677,000 (10%) from the prior year.
Approximately 50% of this increase is related to additional revenues received from the tax on all food and beverages
prepared or modified by restaurants, convenience stores, fast food outlets, grocery stores, or other establishments within the
Town. The other 50% is the result of reduced expenditures in FY 2014. The purchase of police vehicles and a donation to
Danny Jones Pool in North Charleston were one time expenditures in FY 2013.
Fund balances in the capital projects funds (major and non-major) increased by approximately $25,777,000 in FY 2014
mainly due to the issuance of the $25 million 2014 GO Bonds. Project expenditures funded with the new bond (New Town
Hall, New Town Hall Gym, and Sweetgrass Basket Parkway) will occur in future years. There were approximately $157,000
in expenditures from the bond fund in FY 2014.
A new Debt Service Fund was established in FY 2014 for the 2014 GO Bonds. The fund balance of approximately
$2,535,000 will be used to pay debt service on the 2014 GO Bonds.
26
TOWN OF MOUNT PLEASANT, SOUTH CAROLINA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2014
FINANCIAL ANALYSIS OF THE TOWN’S FUNDS (CONTINUED)
Fiduciary Funds – The Carolina Park Fund, Fireman’s 1% Insurance and Inspection Fund, and the Federal and State Seized
Asset Funds comprise the fiduciary funds held by the Town and account for resources from a development related to
charitable contributions, 1% of Insurance Payments within the State that are held for the benefit of fire personnel, as well as
revenues from law enforcement related drug cases. Approvals for disbursements for the Fireman’s Insurance and Inspection
Fund are filtered through the State and Local Supervisory Boards to ensure that expenditures are not liabilities to be assumed
by the General Fund. The State and Federal Seized Asset Fund expenditures are filtered through the Police Department. The
Fiduciary Funds had amounts held in custody for others of approximately $208,000 at June 30, 2014.
General Fund Budgetary Highlights: During the fiscal year, the Town prepared a mid-year revision to the budget and
recorded the annual infrastructure transfer that was established by the Town’s Fund Balance Policy. Generally, budget
amendments fall into one of three categories: 1) amendments made to adjust the estimates that are used to prepare the
original budget ordinance once more exact information is available; 2) amendments made to recognize new funding amounts
from external sources, such as Federal and State grants; and 3) increases in appropriations that become necessary to maintain
services. The mid-year amendments to the General Fund increased budgeted revenues and expenditures by approximately
$278,000 and the annual infrastructure transfer increased revenues and transfers out by approximately $3,016,000.
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets – The Town’s capital assets for its governmental activities as of June 30, 2014, amounted to approximately
$466,966,000 (net of accumulated depreciation). These capital assets include land, construction in progress, buildings,
improvements, machinery and equipment, roads, and other infrastructure.
The capital assets (net of accumulated depreciation) as of June 30, 2014 and 2013 were as follows:
Town's Governmental Activities
June 30, 2014
June 30, 2013
Land
Construction in Progress
Buildings and Building Improvements
Improvements Other Than Buildings
Infrastructure
Machinery and Equipment
Less: Accumulated Depreciation
$
284,363,137
2,672,730
48,779,594
12,900,119
257,676,416
28,459,568
(167,885,571)
$
282,282,440
1,756,631
48,504,115
12,823,576
252,936,006
24,974,408
(155,305,344)
Total
$
466,965,993
$
467,971,832
The total decrease in the Town’s capital assets for the period ending June 30, 2014 was approximately $1,006,000 which
represents a 0.2% decrease over the prior year. Depreciation expense was approximately $12,845,000 for 2014 compared to
$12,763,000 for 2013.
Construction in progress projects completed during the current fiscal year included the following:



Hungryneck Phase IV
Dunes West Boulevard
Wando Blvd Business Park
Construction in progress projects outstanding at June 30, 2014 included the following:





Six Mile – Public Services Facility Improvements
New Town Hall
Hamlin Brewer Tract
Waterfront Park Improvements
Patriot Point Realignment
27
TOWN OF MOUNT PLEASANT, SOUTH CAROLINA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2014
CAPITAL ASSET AND DEBT ADMINISTRATION (CONTINUED)









Fire Station #6
Sweetgrass Basket Pkwy Phase 4A
Whitehall Terrace
Water Quality Monitoring
Edwards Park Pump Station Replacement
Laurel Grove Pipe Repair/Replace
Belle Hall/Hibben
Brickyard Outfall Bridge
Flap Gate Replacement
Intergovernmental Related Improvements:
Improvements related to State/Federal Highway road projects are not counted as assets by the Town as the condemnation of
property and right-of-ways are released back to the South Carolina Department of Transportation (“SCDOT”) at the
completion of the projects. The major projects/road improvements taking place within the Town of Mount Pleasant in
conjunction with State, County and Federal Transportation officials include road improvements to Bowman Road, Federal
Highway 17 Widening, Interstate I-526/Highway 17 Interchange Project and design related to future improvements to
Coleman Boulevard.
Additional information on the Town’s capital assets can be found in Notes I and III of the notes to the financial statements.
Debt – As of June 30, 2014, the Town had total outstanding long-term obligations of approximately $73,031,000. Of the
Town’s total, $48,070,000 was general obligation debt which is backed by the full faith and credit of the Town. The Town’s
total long-term obligations as of June 30, 2014 and 2013 were as follows:
Town's Governmental Activities
June 30, 2014
June 30, 2013
General Obligation Bonds
Tax Increment Bonds
$
Subtotal
48,070,000
5,025,900
$
27,865,000
7,502,400
53,095,900
35,367,400
Premiums
2,672,439
91,087
Total Debt
55,768,339
35,458,487
4,380,907
3,868,756
7,341,933
1,671,461
3,229,839
3,590,612
7,687,428
1,499,592
Capital Leases
Net OPEB Liability
Infrastructure Credits
Compensated Absences
Total Long-Term Obligations
$
73,031,396
$
51,465,958
The total increase in the Town’s long-term obligations for the current fiscal year was approximately $21,565,000 or (42%).
Major events during the current fiscal year included the following:




Issuance of $25,000,000 in new GO Bonds which will be used to fund capital projects
Issuance of two new capital leases totaling approximately $3,114,000 which were used to fund the purchase of
vehicles and equipment
Principal payments on debt and capital leases of approximately $9,234,000
Additional premium received on the new 2014 GO Bonds of approximately $2,649,000, offset by amortization of
premiums of approximately $67,000
28
TOWN OF MOUNT PLEASANT, SOUTH CAROLINA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2014
CAPITAL ASSET AND DEBT ADMINISTRATION (CONTINUED)


The Town implemented GASB Statement No. 45, “Accounting and Financial Reporting by Employers for
Postemployment Benefits Other Than Pensions” in fiscal year 2009. The actuary’s latest valuation dated July 1,
2013 which is based on the present design of the OPEB plan resulted in an unfunded actuarial accrued liability and
an annual required contribution (“ARC”) of approximately $17,875,000 and $1,315,000, respectively. The Town
funded approximately $1,055,000 of its 2014 ARC. The Town had a net OPEB liability of approximately
$3,869,000 and $3,591,000 at June 30, 2014 and June 30, 2013, respectively.
The State of South Carolina limits the amount of general obligation debt that a unit of government can issue to 8%
of the total assessed value of taxable property located within that government’s boundaries. The Town’s statutory
debt limit at June 30, 2014 was approximately $52,748,000. The Town had non-referendum bonded debt of
approximately $46,213,000 which resulted in the Town having an unused legal debt margin of approximately
$6,535,000.
Additional information regarding the Town’s long-term obligations can be found in Note III in the notes to the financial
statements.
NEXT YEAR’S BUDGETS AND RATES FOR THE TOWN
The budget process began in February of 2014, with the Town Council adopting a total General Fund budget of
approximately $70,929,000 which represents an increase of approximately (7%) from the prior year’s original budgeted
expenditures.


Town Council Revenue Highlights for FY 2015 Budget:
o
General Fund revenue is projected by the Budget Office to increase by 11%. The major factors that
contributed to the revenue projection include: the millage rate was increased by 3 mills (38.3 to 41.3 mills
or approximately $1,500,000), business license fees were restructured ($750,000), and Planning &
Development fees were increased ($40,000)
o
Appropriated fund balance of approximately $3,832,000 for FY 2015 includes the annual infrastructure
transfer of $3,177,000 and Consolidated Dispatch payment of $655,000
Town Council Expenditure Highlights for FY 2015 Budget:
o
A pay for performance increase of 3% to 3.5% was approved for employees
o
South Carolina Police Retirement Contribution increased from 12.84% to 13.41%
o
State Retirement Contribution increased from 10.6% to 10.90%
o
The Annual Required Contribution (ARC) for OPEB was increased by $300,000
o
Annual vehicle replacements will be purchased with cash instead of a three year lease purchase agreement
o
Six new positions were added in order to support the Capital Budget Program (including NPDES
Mandates) and the Strategic Plan’s objective to increase social media direct contact in support of a new
engagement model to better connect government to its citizens (The Concierge Government): GIS Analyst,
Media Coordinator, Tourism & Marketing Assistant, Administrative Assistant, NPDES Inspector and Staff
Engineer.
REQUESTS FOR TOWN INFORMATION
This financial report is designed to provide a general overview of the Town of Mount Pleasant’s finances for all those with an
interest in the government’s financial situation. Questions concerning any of the information should be addressed to Peggy
Conkel, CPA, CGFO, Financial Services Officer, [email protected] or mailed to 100 Ann Edwards Lane, Mount
Pleasant, SC 29464.
29
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30
Basic Financial Statements
31
TOWN OF MOUNT PLEASANT, SOUTH CAROLINA
GOVERNMENT-WIDE STATEMENT OF NET POSITION
JUNE 30, 2014
GOVERNMENTAL
ACTIVITIES
ASSETS
Cash and Cash Equivalents
Cash and Cash Equivalents - Restricted
Investments - Restricted
Property Taxes Receivable, Net
Intergovernmental Receivables
Other Receivables, Net
Other Assets
Capital Assets:
Non-Depreciable
Depreciable, Net
$
46,658,003
40,924,494
22,168,687
770,332
4,815,400
2,260,689
4,452
287,035,867
179,930,126
TOTAL ASSETS
584,568,050
LIABILITIES
Accounts Payable
Retainage Payable
Intergovernmental Payables
Security Deposit Liability
Accrued Payroll and Fringe Liability
Health Claims Liability
Escrow For Seized Funds
Accrued Interest Payable
Unearned Revenue
Noncurrent Liabilities:
Due Within One Year
Due In More Than One Year
4,494,876
37,770
108,888
182,510
1,164,610
1,250,000
585,401
239,972
3,038,754
9,755,041
63,276,355
TOTAL LIABILITIES
84,134,177
DEFERRED INFLOWS OF RESOURCES
Deferred Revenue - Business Licenses
6,770,363
NET POSITION
Net Investment in Capital Assets
Restricted For:
Impact Assessment Infrastructure/Capital Assets
Tourism Related Costs
Storm Water
Capital Projects/Debt Service
Grants
Other
Unrestricted
432,653,188
5,905,528
9,701,695
1,479,539
15,729,035
541,663
1,310,923
26,341,939
TOTAL NET POSITION
$
The notes to the financial statements are an integral part of this statement.
See accompanying independent auditor's report.
32
493,663,510
TOWN OF MOUNT PLEASANT, SOUTH CAROLINA
GOVERNMENT-WIDE STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2014
FUNCTIONS/PROGRAMS
Governmental Activities:
General Government
Justice Department
Public Safety
Public Service
Highway and Streets
Planning and Development
Culture and Recreation
Interest and Other Charges
EXPENSES
NET (EXPENSE)
REVENUE AND
CHANGES IN
PROGRAM REVENUES
OPERATING
CAPITAL
NET POSITION
CHARGES FOR
GRANTS AND
GRANTS AND GOVERNMENTAL
SERVICES
CONTRIBUTIONS CONTRIBUTIONS
ACTIVITIES
$
20,024,819
1,188,269
19,950,935
9,248,984
6,920,853
9,326,570
6,819,185
1,175,871
58,177
1,361,767
1,355,500
1,133,411
3,547,645
2,842,243
-
544,703
111,470
137,531
-
83,569
431,017
5,919,894
-
Total Governmental Activities $
74,655,486
10,298,743
793,704
6,434,480
$
(19,966,642)
(1,188,269)
(17,960,896)
(7,350,997)
132,452
(5,778,925)
(3,839,411)
(1,175,871)
(57,128,559)
General Revenues:
Taxes:
Property Taxes
Sales Taxes
Accommodation Taxes
Hospitality Taxes
Franchise Taxes
Business Licenses
Other Taxes
Payments in Lieu of Taxes
State Shared Revenue Not Restricted to Specific Programs
Miscellaneous Revenue
Interest Earned
27,713,286
8,481,990
1,839,142
4,979,809
1,160,058
20,040,822
254,578
293,667
1,472,155
1,168,280
63,149
Total General Revenues
67,466,936
NET CHANGE IN NET POSITION
10,338,377
NET POSITION - Beginning of Year
483,325,133
NET POSITION, End of Year
The notes to the financial statements are an integral part of this statement.
See accompanying independent auditor's report.
33
$
493,663,510
TOWN OF MOUNT PLEASANT, SOUTH CAROLINA
BALANCE SHEET - GOVERNMENTAL FUNDS
JUNE 30, 2014
FEDERAL
GRANTS
SPECIAL REVENUE
FUND
GENERAL
FUND
ASSETS
Cash And Cash Equivalents
Cash And Cash Equivalents - Restricted
Investments - Restricted
Property Taxes Receivable, Net
Intergovernmental Receivables
Other Receivables, Net
Due From Other Funds
Other Assets
TOTAL ASSETS
$
40,805,623
791,771
770,332
2,703,439
628,889
2,838,479
4,452
763,310
375,444
-
$
48,542,985
1,138,754
$
3,347,770
8,436,817
108,888
182,510
1,164,610
1,250,000
585,401
220,179
152,436
37,770
431,718
-
15,296,175
621,924
LIABILITIES, DEFERRED INFLOWS OF RESOURCES,
AND FUND BALANCES
LIABILITIES
Accounts Payable
Retainage Payable
Due To Other Funds
Intergovernmental Payables
Security Deposit Liability
Accrued Payroll and Fringe Liability
Health Claims Liability
Escrow For Funds Held
Unearned Revenue
TOTAL LIABILITIES
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue - Property Taxes
Unavailable Revenue - Other
Deferred Revenue - Business Licenses
TOTAL DEFERRED INFLOWS OF RESOURCES
558,387
6,770,363
7,328,750
-
4,452
-
FUND BALANCES
Nonspendable:
Other Assets
Restricted:
Grants
Debt Service
Capital Projects/Debt Service
Tourism Related Costs
By Donors
Special Permits
Storm Water
Victims' Services
Impact Assessment Infrastructure/Capital Assets
Committed:
Emergency Reserves for Disaster Recovery
Charleston County 911 Dispatch
Capital Projects/Debt Service
Unassigned
2,000,000
251,670
23,661,938
TOTAL FUND BALANCES
TOTAL LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
$
The notes to the financial statements are an integral part of this statement.
See accompanying independent auditor's report.
34
516,830
-
25,918,060
516,830
48,542,985
1,138,754
STATE AND LOCAL
GRANTS
SPECIAL REVENUE
FUND
GO BOND
CAPITAL PROJECTS
FUND
TIF BOND
CAPITAL PROJECTS
FUND
OTHER
GOVERNMENTAL
FUNDS
TOTAL
GOVERNMENTAL
FUNDS
1,760,125
1,450,000
142,126
583
-
5,873,443
20,718,687
5,666
-
9,651,732
8,403,657
-
5,852,380
22,084,113
1,594,391
208,810
33,160
-
$
46,658,003
40,924,494
22,168,687
770,332
4,815,400
843,948
11,275,296
4,452
3,352,834
26,597,796
18,055,389
29,772,854
$
127,460,612
121,769
387,657
2,818,575
4,168
31,608
-
232,676
-
636,057
1,987,496
-
$
4,494,876
37,770
11,275,296
108,888
182,510
1,164,610
1,250,000
585,401
3,038,754
3,328,001
35,776
232,676
2,623,553
22,138,105
199,302
199,302
558,387
199,302
6,770,363
7,528,052
-
-
-
-
-
-
24,833
-
26,562,020
-
17,822,713
-
-
-
2,535,379
1,987,297
9,701,695
496,792
723,237
1,280,237
90,894
4,488,787
541,663
2,535,379
46,372,030
9,701,695
496,792
723,237
1,280,237
90,894
4,488,787
5,645,681
-
2,000,000
251,670
5,645,681
23,661,938
97,794,455
24,833
26,562,020
17,822,713
26,949,999
3,352,834
26,597,796
18,055,389
29,772,854
35
4,452
$
127,460,612
TOWN OF MOUNT PLEASANT, SOUTH CAROLINA
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE GOVERNMENT-WIDE
STATEMENT OF NET POSITION
FOR THE YEAR ENDED JUNE 30, 2014
TOTAL FUND BALANCES - GOVERNMENTAL FUNDS
$
97,794,455
Amounts reported for the governmental activities in the Statement of Net Position are different because
of the following:
Outstanding property taxes and other revenues which will be collected in the future, but are not available
soon enough to pay for the current period's expenditures are therefore deferred in the funds.
757,689
Long-term receivables that will be collected in the future, but are not available soon enough to pay
for the current period's expenditures are not recognized in the governmental funds but are
recognized in the Statement of Net Position.
1,416,741
Capital assets used in governmental activities are not financial resources and therefore are not reported
as assets in governmental funds. The cost of the assets was $634,851,564 and the accumulated
depreciation was $167,885,571.
466,965,993
Interest is recorded as an expenditure when due and payable in the governmental funds. Interest is
recorded in the government-wide statements when it is incurred. This amount represents the amount of
interest incurred but not yet due and payable at year-end.
(239,972)
Long-term liabilities, including bonds payable, are not due or payable in the current period and therefore
are not reported as liabilities in the funds. Long-term liabilities at year-end consisted of the following:
Long-Term Debt and Premiums
Capital Leases
Net OPEB Liability
Infrastructure Credits
Compensated Absences (Vacation and Compensatory Time Earned)
(55,768,339)
(4,380,907)
(3,868,756)
(7,341,933)
(1,671,461)
TOTAL NET POSITION - GOVERNMENTAL ACTIVITIES
The notes to the financial statements are an integral part of this statement.
See accompanying independent auditor's report.
36
$
493,663,510
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37
TOWN OF MOUNT PLEASANT, SOUTH CAROLINA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2014
GENERAL
FUND
FEDERAL
GRANTS
SPECIAL REVENUE
FUND
REVENUES
Property, Sales and Other Taxes
Licenses and Permits
Intergovernmental
Fines and Forfeitures
Special Assessments
Charges for Services
Rents and Royalties
Investment Earnings
Other Revenues
$
26,388,905
23,165,348
1,706,095
525,865
13,015
3,928,754
209,497
26,703
773,448
552,673
246,724
56,737,630
799,397
16,716,896
1,182,977
18,242,052
7,908,186
741,453
1,742,115
4,768,506
520,782
397,422
6,757,932
917,590
58,977,707
918,204
(2,240,077)
(118,807)
7,923,718
(3,165,914)
54,394
-
142,000
-
4,812,198
142,000
NET CHANGE IN FUND BALANCES
2,572,121
23,193
FUND BALANCES - Beginning of Year
23,345,939
493,637
25,918,060
516,830
TOTAL REVENUES
EXPENDITURES
Current:
General Government
Justice Department
Public Safety
Public Service
Highways and Streets
Planning and Development
Culture and Recreation
Debt Service:
Principal
Interest
Intergovernmental
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF
REVENUES OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfers In
Transfers Out
Sale of Capital Assets
Capital Lease Proceeds
Bonds Issued
Premium on Bonds Issued
TOTAL OTHER FINANCING SOURCES (USES)
FUND BALANCES - End of Year
$
The notes to the financial statements are an integral part of this statement.
See accompanying independent auditor's report.
38
STATE AND LOCAL
GRANTS
SPECIAL REVENUE
FUND
GO BOND
CAPITAL PROJECTS
FUND
TIF BOND
CAPITAL PROJECTS
FUND
1,719,227
3,108
-
(20,579)
-
9,803,658
19,503
-
5,533,498
1,463,196
80,490
2,471,235
1,196,318
34,414
148,108
1,722,335
(20,579)
9,823,161
10,927,259
79,989,203
OTHER
GOVERNMENTAL
FUNDS
TOTAL
GOVERNMENTAL
FUNDS
$
41,726,061
23,165,348
5,441,191
606,355
2,484,250
5,125,072
209,497
63,149
1,168,280
75,062
124,182
383,234
-
127,481
81,415
30,000
-
740,344
171,384
766,429
-
744,508
2,693,470
1,582,028
1,153,275
1,132,688
479,427
18,404,291
1,182,977
21,580,486
9,571,629
2,479,346
3,641,232
5,645,355
1,180,396
3,101,256
2,476,500
254,542
-
421,969
9,234,432
1,172,132
4,703,621
1,762,874
3,340,152
4,409,199
8,207,365
77,615,501
(40,539)
(3,360,731)
5,413,962
2,719,894
2,373,702
46,215
-
25,000,000
-
(1,612,211)
-
3,157,751
(6,491,559)
3,114,000
2,648,546
11,269,684
(11,269,684)
54,394
3,114,000
25,000,000
2,648,546
46,215
25,000,000
(1,612,211)
2,428,738
30,816,940
5,676
21,639,269
3,801,751
5,148,632
33,190,642
19,157
4,922,751
14,020,962
21,801,367
64,603,813
24,833
26,562,020
17,822,713
26,949,999
39
$
97,794,455
TOWN OF MOUNT PLEASANT, SOUTH CAROLINA
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND
BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2014
TOTAL NET CHANGE IN FUND BALANCES - GOVERNMENTAL FUNDS
$
33,190,642
Amounts reported for the governmental activities in the Statement of Activities are different because of the following:
Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues
in the funds.
226,339
The collection of principal amounts related to long-term receivables is considered income in the governmental funds
but the repayment is shown as a reduction of the long-term receivable in the Statement of Net Position.
(436,394)
Repayment of principal is an expenditure in the governmental funds, but the repayment reduces long-term
liabilities in the Statement of Net Position.
9,234,432
Bond and capital lease proceeds provide current financial resources to governmental funds, but issuing debt or
entering into capital leases increases long term liabilities in the Statement of Net Position
(28,114,000)
Premiums on issuance of debt must be deferred and amortized over the life of the respective debt in the Statement
of Activities. However, proceeds from premiums are reported as an other financing source in the year they are
received in the governmental funds. This is the net change in premiums during the current year.
(2,581,352)
Interest on long-term debt in the Statement of Activities differs from the amount reported in the governmental
funds because interest is recognized as an expenditure in the funds when it is due and payable and thus requires
the use of current financial resources. In the Statement of Activities, however, interest expense is recognized
as the interest accrues, regardless of when it is due and payable. This represents the change in accrued interest
during the current year.
(70,933)
The Town from time to time accepts donated infrastructure in lieu of its normal impact assessment fees which
sometimes results in a credit balance. This is the net amount of infrastructure credits provided/used during the
current year.
345,495
A net OPEB liability results from not fully funding the annual required contribution to an OPEB Plan in the current
and/or prior years and is not reported as a liability in the governmental funds. This amount represents the change
in this liability during the current year.
(278,144)
Some expenses reported in the Statement of Activities do not require the use of current financial resources and
therefore are not reported as expenditures in the governmental funds.
(171,869)
Governmental funds report only proceeds received from the sale of capital assets, without any consideration for the
net book value of the assets that were sold. The Statement of Activities reports gains or losses based on the
proceeds and the net book value of the assets sold.
(473,032)
Governmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of
those assets that are considered capital asset additions is allocated over their estimated useful lives as
depreciation expense. This is the amount by which depreciation expense of $12,844,802 exceeded capital
asset additions of $12,311,995, which includes donated capital assets of $4,869,220, in the current period.
(532,807)
TOTAL CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES
The notes to the financial statements are an integral part of this statement.
See accompanying independent auditor's report.
40
$
10,338,377
TOWN OF MOUNT PLEASANT, SOUTH CAROLINA
STATEMENT OF ASSETS AND LIABILITIES
FIDUCIARY FUNDS - AGENCY FUNDS
JUNE 30, 2014
AGENCY
FUNDS
ASSETS
Cash and Cash Equivalents - Restricted
TOTAL ASSETS
$
460,424
$
460,424
$
252,857
207,567
$
460,424
LIABILITIES
Accounts Payable
Amounts Held in Custody for Others
TOTAL LIABILITIES
The notes to the financial statements are an integral part of this statement.
See accompanying independent auditor's report.
41
TOWN OF MOUNT PLEASANT, SOUTH CAROLINA
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2014
The Town of Mount Pleasant (“Town”) was organized under a charter originally granted by the State of South Carolina in
1837. Section 47-26 of the 1962 Code of Laws, as amended (Home Rule Act), requires that municipalities adopt a specific
form of government. The Town operates under a Council form of government. Town Council (“Council”) is composed of a
Mayor and eight council members elected at large. Council member terms run for a period of four years with four of the
council seats terms expiring on alternating years.
All legislative and administrative powers of the Town and the determination of all matters of policy are vested in Council.
Each member of Council, including the Mayor, has one vote in each matter. Under the Town’s form of government, the
Mayor acts as the chief executive officer. To assist the Mayor and Council, the Council employs a Town Administrator to
oversee and coordinate activities among the various departments of the government.
I.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. The Reporting Entity
The financial statements of the Town have been prepared in conformity with accounting principles generally
accepted in the United States of America (“GAAP”), as applied to governmental units. The Governmental
Accounting Standards Board (“GASB”) is the accepted standard-setting body for establishing governmental
accounting and financial reporting principles. The more significant of the Town’s accounting policies are described
below.
As required by GAAP, the financial statements must present the Town’s financial information with any of its
component units. The primary criterion for determining inclusion or exclusion of a legally separate entity
(component unit) is financial accountability, which is presumed to exist if the Town both appoints a voting majority
of the entity’s governing body, and either 1) the Town is able to impose its will on the entity or, 2) there is a
potential for the entity to provide specific financial benefits to, or impose specific financial burdens on the Town. If
either or both of the foregoing conditions are not met, the entity could still be considered a component unit if it is
fiscally dependent on the Town and there is a potential that the entity could either provide specific financial benefits
to, or to impose specific financial burdens on the Town.
In order to be considered fiscally independent, an entity must have the authority to do all of the following: (a)
determine its budget without the Town having the authority to approve or modify that budget; (b) levy taxes or set
rates or charges without approval by the Town; and (c) issue bonded debt without approval by the Town. An entity
has a financial benefit or burden relationship with the Town if, for example, any one of the following conditions
exists: (a) the Town is legally entitled to or can otherwise access the entity’s resources, (b) the Town is legally
obligated or has otherwise assumed the obligation to finance the deficits or, or provide financial support to, the
entity, or (c) the Town is obligated in some manner for the debt of the entity. Finally, an entity could be a
component unit even if it met all the conditions described above for being fiscally independent if excluding it would
cause the Town’s financial statements to be misleading.
Blended component units, although legally separate entities, are in substance, part of the government's operations
and data from these units are combined with data of the primary government in the fund financial statements.
Discretely presented component units, on the other hand, are reported in a separate column in the government-wide
financial statements to emphasize they are legally separate from the Town. Based on the criteria above, the Town
does not have any component units.
Related Organizations
The legal name of the entity is Commissioners of Public Works for the Town of Mount Pleasant but the popular
name is Mount Pleasant Waterworks or Waterworks. Waterworks provides water and wastewater services to the
Town and certain surrounding areas. Separate financial statements are prepared and are available at the offices of
Mount Pleasant Waterworks, 1619 Rifle Range Road, Mount Pleasant, South Carolina 29464.
42
TOWN OF MOUNT PLEASANT, SOUTH CAROLINA
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2014
I.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. The Reporting Entity (Continued)
Major Operations
The Town’s major operations include police and fire protection, parks and recreation, sanitation and environmental
services, economic/community development, public works, transportation, and general administrative services.
B. Measurement Focus, Basis of Accounting, and Basis of Presentation
The government-wide financial statements (i.e., the Statement of Net Position and the Statement of Activities)
report information on all of the non-fiduciary activities of the Town. For the most part, the effect of interfund
activity (except for interfund services provided and used between functions) has been removed from these financial
statements.
Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported
separately from business-type activities, which rely, to a significant extent, on fees and charges for support. The
Town does not have any business-type activities.
The Statement of Activities demonstrates the degree to which the direct expenses of a given function or segment are
offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or
segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit
from goods, services or privileges provided by a given function or segment and 2) grants and contributions that are
restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other
items not properly included among program revenues are reported instead as general revenues. The comparison of
direct expenses with program revenues identifies the extent to which each business segment or governmental
function is self-financing or draws from the general revenues of the Town.
The government-wide financial statements are reported using the economic resources measurement focus and the
accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is
incurred, regardless of the timing of related cash flows. Non-exchange transactions, in which the Town gives or
receives value without directly receiving or giving equal value in exchange, include property taxes, grants and
donations. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items
are recognized as revenues as soon as all eligibility requirements imposed by the provider have been met.
The government-wide statements are prepared using a different measurement focus from the manner in which
governmental fund financial statements are prepared (see further detail below). Governmental fund financial
statements therefore, include reconciliations with brief explanations to better identify the relationship between the
government-wide statements and the statements for governmental funds.
The Town implemented GASB Statement No. 65, “Items Previously Reported as Assets and Liabilities” (“GASB
#65”) in 2014. GASB #65 establishes accounting and financial reporting standards that require reclassification, as
deferred outflows of resources or deferred inflows of resources, certain items that were previously reported as assets
and liabilities and recognizes, as outflows of resources or inflows of resources, certain items that were previously
reported as assets and liabilities. GASB #65 supplements and extends the reach of GASB Statement No. 63,
“Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position”, which
was adopted by the Town in 2013. The Town’s former financial statement item that was affected by the
implementation of GASB #65 was its deferred revenue liability (for unavailable revenue – property taxes,
unavailable revenue – other, and deferred revenue – business licenses) in its statements of financial position. Under
GASB #65, deferred revenue that is not available or deferred revenue that is received by a government but is
applicable to a future year should no longer be shown as a liability but will be reclassified and shown as a
component of deferred inflows of resources.
43
TOWN OF MOUNT PLEASANT, SOUTH CAROLINA
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2014
I.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
B. Measurement Focus, Basis of Accounting, and Basis of Presentation (Continued)
Governmental fund financial statements are reported using the current financial resources measurement focus and
the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and
available. Revenues are considered to be available when they are collectible within the current period or soon
enough thereafter to pay liabilities of the current period. Property taxes, intergovernmental revenues, franchise
taxes, licenses, and interest associated with the current fiscal period are all considered to be measurable and
susceptible to accrual and so have been recognized as revenues of the current fiscal period. For this purpose, the
government generally considers its revenues to be available if they are collected within 60 days of the end of the
current fiscal period with the exception of certain reimbursement expenditure grants for which a twelve month
availability period is generally used.
Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt
service expenditures, capital lease expenditures, as well as expenditures related to compensated absences and claims
and judgments, are recorded only when payments are due and payable. Capital asset acquisitions are reported as
capital outlay expenditures in governmental funds. Proceeds of long-term debt and acquisitions under capital leases
are reported as other financing sources.
Fund financial statements report detailed information about the Town. The focus of governmental fund financial
statements is on major funds rather than reporting funds by type. Each major fund is presented in a separate
column. Non-major funds are aggregated and presented in a single column. Fiduciary funds are reported by fund
type.
When both restricted and unrestricted resources are available for use, it is the Town’s practice to use restricted
resources first, then unrestricted resources as they are needed.
The accounts of the government are organized and operated on the basis of funds. A fund is an independent fiscal
and accounting entity with a self-balancing set of accounts. Fund accounting segregates funds according to their
intended purpose and is used to aid management in demonstrating compliance with finance-related legal and
contractual provisions. The minimum number of funds is maintained consistent with legal and managerial
requirements. The Town uses the following fund categories:
Governmental fund types are those through which most governmental functions of the Town are financed. The
Town's expendable financial resources and related assets and liabilities (except for those accounted for in the
fiduciary funds) are accounted for through governmental funds. The Town’s governmental fund types and
funds are as follows:
The General Fund, a major fund and a budgeted fund, is the general operating fund of the Town and
accounts for all revenues and expenditures of the Town except those required to be accounted for in other
funds. All general tax revenues and other receipts that (a) are not allocated by law or contractual
agreement to other funds or (b) that have not been restricted, committed, or assigned to other funds are
accounted for in the General Fund. General operating expenditures and the capital improvement costs that
are not paid through other funds are paid from the General Fund.
Special revenue funds are used to account for and report the proceeds of specific revenue sources (that are
expected to continue to comprise a substantial portion of the inflows of the fund) that are restricted or
committed to expenditures for specified purposes other than debt service or capital projects. The Town has
the following special revenue funds:
The Federal Grants Fund, a major special revenue fund and an unbudgeted fund, is generally used
to account for funds received from the federal government (including its agencies) that are restricted
for a specified purpose. The Town from time to time may also transfer in other monies in order to
meet grant match requirements or to assist with the payment of other non-reimbursable costs.
44
TOWN OF MOUNT PLEASANT, SOUTH CAROLINA
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2014
I.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
B. Measurement Focus, Basis of Accounting, and Basis of Presentation (Continued)
The State and Local Grants Fund, a major special revenue fund and an unbudgeted fund, is
generally used to account for funds received from state and local governments (including their
agencies) that are restricted for a specified purpose. The Town from time to time may also transfer in
other monies in order to meet grant match requirements or to assist with the payment of other nonreimbursable costs.
Non-major special revenue funds consist of the following:
Accommodations Tax
Donor Programs
Hospitality Tax
Special Permit
Storm Water Utility
Victims Advocate
Impact Assessment
Capital projects funds are used to account for and report financial resources that are restricted, committed,
or assigned for (a) the acquisition, construction, or renovation of major capital facilities, (b) ongoing major
improvement projects which usually span more than one year, and (c) major equipment or other capital
asset acquisitions which are not financed by another fund. The Town has the following capital projects
funds:
The GO Bond Fund, a major capital projects fund and an unbudgeted fund, is used to account for
proceeds from the Town’s General Obligation Bonds which will be used for construction, expansion
and improvements to recreational facilities, public safety facilities, public service facilities,
transportation projects, municipal improvements, and other miscellaneous improvements. Projects for
this fund are designated by Town officials. Budgets for capital projects are approved on a project-byproject basis and not on an annual or biennial basis.
The TIF Bond Fund, a major capital projects fund and a budgeted fund, is used to account for the
proceeds from the Tax Increment Financing (“TIF”) Bonds and from tax revenues received from the
TIF district which will be used for transportation improvements and to meet TIF debt service
requirements. Projects for this fund are designated by Town officials.
Non-major capital projects funds consist of the following:
Special Projects
Infrastructure Management
Capital Equipment
Debt service funds are used to account for the accumulation of resources and payments of long-term bond
principal and interest from government resources. The 2014 General Obligation Bond fund, a non-major
debt service fund and an unbudgeted fund, is used to service the debt related to the issuance of the 2014
General Obligation Bond.
Fiduciary Fund Types include Agency Funds. An agency fund is generally used to account for miscellaneous
assets that the government holds on behalf of others. The Town’s agency funds are custodial in nature and do
not present results of operations. The Town has four unbudgeted agency funds which include the Fireman’s
Fund, Carolina Park Fund, Federal Seized Assets and Drug Fund, and the State Seized Assets and Drug
Fund. These funds are used by the Town to account for the receipt and disbursement of funds from (a) the
State related to the payment of one percent of the premiums received by out of state fire insurance companies,
(b) a development related to a community center contributions, (c) federal assets that were forfeited and/or
seized during a law enforcement action and (d) state assets that were forfeited and/or seized during a law
enforcement action.
45
TOWN OF MOUNT PLEASANT, SOUTH CAROLINA
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2014
I.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Equity
1.
Cash, Cash Equivalents, and Investments
The Town considers all highly liquid investments (including restricted assets) with original maturities of three
months or less when purchased and investments in the South Carolina Pooled Investment Fund (“Pool”) to be cash
equivalents. Securities with an initial maturity of more than three months (from when initially purchased) that are
not purchased from the pool are reported as investments.
The Town’s investment policy is designed to operate within existing statutes (which are identical for all funds, fund
types and component units within the State of South Carolina). The statutes of the State of South Carolina authorize
the Town to invest in the following:
(a)
Obligations of the United States and its agencies, the principal and interest of which is fully guaranteed by
the United States.
(b)
Obligations issued by the Federal Financing Bank, Federal Farm Credit Bank, the Bank of Cooperatives,
the Federal Intermediate Credit Bank, the Federal Land Banks, the Federal Home Loan Banks, the Federal
Home Loan Mortgage Corporation, the Federal National Mortgage Association, the Government National
Mortgage Association, the Federal Housing Administration, and the Farmers Home Administration, if, at
the time of investment, the obligor has a long-term, unenhanced, unsecured debt rating in one of the top
two ratings categories, without regard to a refinement or gradation of rating category by numerical
modifier or otherwise, issued by at least two nationally recognized credit rating organizations.
(c)
(i) General obligations of the State of South Carolina or any of its political units; or (ii) revenue obligations
of the State of South Carolina or its political units, if at the time of investment, the obligor has a long-term,
unenhanced, unsecured debt rating in one of the top two ratings categories, without regard to a refinement
or gradation of rating category by numerical modifier or otherwise, issued by at least two nationally
recognized credit rating organizations.
(d)
Savings and Loan Associations to the extent that the same are insured by an agency of the federal
government.
(e)
Certificates of deposit where the certificates are collaterally secured by securities of the type described in
(a) and (b) above held by a third party as escrow agent or custodian, of a market value not less than the
amount of the certificates of deposit so secured, including interest; provided, however, such collateral shall
not be required to the extent the same are insured by an agency of the federal government.
(f)
Repurchase agreements when collateralized by securities as set forth in this section.
(g)
No load open-end or closed-end management type investment companies or investment trusts registered
under the Investment Company Act of 1940, as amended, where the investment is made by a bank or trust
company or savings and loan association or other financial institution when acting as trustee or agent for a
bond or other debt issue of that local government unit, political subdivision, or county treasurer if the
particular portfolio of the investment company or investment trust in which the investment is made (i) is
limited to obligations described in items (a), (b), (c), and (f) of this subsection, and (ii) has among its
objectives the attempt to maintain a constant net asset value of one dollar a share and to that end, value its
assets by the amortized cost method.
The Town’s cash and investment objectives are safety, liquidity and yield. The Town reports its cash and
investments at fair value which is normally determined by quoted market prices. The Town currently or in the past
year has primarily used the following investments in its operating activities:
46
TOWN OF MOUNT PLEASANT, SOUTH CAROLINA
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2014
I.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Equity (Continued)
1.
Cash, Cash Equivalents, and Investments (Continued)



2.
South Carolina Local Government Investment Pool (“LGIP”) investments are invested with the South
Carolina State Treasurer’s Office, which established the South Carolina Pool pursuant to Section 6-6-10 of
the South Carolina Code. The Pool is an investment trust fund, in which public monies in excess of current
needs, which are under the custody of any city treasurer or any governing body of a political subdivision of
the State, may be deposited. The Pool is a 2a 7-like pool which is not registered with the Securities and
Exchange Commission (“SEC”) as an investment company, but has a policy that it will operate in a manner
consistent with the SEC’s Rule 2a 7 of the Investment Company Act of 1940. In accordance with GASB
Statement No. 31, “Accounting and Financial Reporting for Certain Investments and for External Investment
Pools”, investments are carried at fair value determined annually based upon quoted market prices. The total
fair value of the Pool is apportioned to the entities with funds invested on an equal basis for each share
owned, which are acquired at a cost of $1.00. Financial statements for the LGIP may be obtained by writing
the Office of State Treasurer, Local Government Investment Pool, P.O. Box 11778, Columbia, SC 29211.
US securities are generally treasury notes, treasury bonds, treasury bills, and related securities which are debt
obligations of the U.S. government (lending money to the federal government for a specified period of time).
These debt obligations are backed by the “full faith and credit” of the government, and thus by its ability to
raise tax revenues and print currency, U.S. Treasury securities are considered the safest of all investments.
Government mutual funds are generally open-ended funds that invest in short term debt securities (including
obligations of the United States and related agencies) that generally have a weighted average maturity of less
than one year and do not invest more than 5% in any one issuer, except for government securities and
repurchase agreements.
Receivables and Payables
During the course of its operations, the Town has numerous transactions occurring between funds. These
transactions include expenditures and transfers of resources to provide services, construct assets, and service debt.
The accompanying financial statements generally reflect such transactions as transfers in (out). To the extent that
certain transactions between funds had not been paid or received as of year-end, balances of interfund receivables or
payables have been recorded.
Property taxes receivable represent current real and personal property as well as delinquent real and personal
property taxes for the past ten years, less an allowance for amounts estimated to be uncollectible. All net property
taxes receivable at year end, except those collected within 60 days, are recorded as unavailable revenue – property
taxes (a component of deferred inflows of resources) and thus not recognized as revenue until collected in the
governmental funds.
Property taxes are assessed and collected by Charleston County under a joint billing and collection agreement. Real
property and all personal property taxes other than vehicle property taxes attach as an enforceable lien on property
as of January 1st. Taxes are levied and billed in September on all property other than vehicles and are payable
without penalty until January 15th of the following year. Penalties are assessed on unpaid taxes on the following
dates: January 16th – 3%, February 1st – an additional 7%, and March 16th – an additional 5%. On March 16th, the
property tax bills are transferred to the delinquent tax collection office of Charleston County and the properties are
subject to sale. Vehicle property taxes attach a lien and are levied throughout the year depending on when the
vehicles' license tags expire. Other personal property taxes are levied in October and are payable by December 31.
The Town records receivables related to federal, state, and local grants when the reimbursable expenditure is
incurred, less an allowance for amounts estimated to be uncollectible (if any). All net grant receivables at year end
are recognized as revenue, except those that are not expected to be collected within one year for which the amounts
are reflected as unavailable revenue (if any) All trade, property taxes, grants, and other receivables are shown net of
an allowance for uncollectibles.
47
TOWN OF MOUNT PLEASANT, SOUTH CAROLINA
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2014
II. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Equity (Continued)
3.
Inventories and Prepaid Items
Inventories and prepaid items in the governmental funds are accounted for using the purchase method (expensed
when paid). If significant amounts of inventories or prepaid items exist in the governmental funds, the Town
records these amounts in the balance sheet.
4.
Capital Assets
All of the Town’s capital assets are general capital assets as the Town does not have any proprietary funds. These
assets are reported in the governmental activities column of the government-wide Statement of Net Position, but are
not reported in the fund financial statements.
Capital assets, which include property, plant, and equipment, are reported in the governmental activities columns in
the government-wide financial statements. Capital assets are recorded at historical cost or estimated historical cost
if not purchased or constructed. Donated capital assets are recorded at estimated fair market value (as estimated by
the Town) at the date of donation. Improvements by the Town to roads owned by the state are not capitalized but
are expensed as incurred. The costs of normal maintenance and repairs that do not add to the value of the asset or
materially extend assets' lives are not capitalized. Interest costs during construction are not capitalized in the
Town’s governmental funds. Capital assets are depreciated on the straight-line method using the following
estimated useful lives and capitalization thresholds:
Years
Land Improvements
Buildings
Building Improvements
Infrastructure
Machinery, Equipment, Furniture, and Software
Vehicles
Heavy Vehicles
5.
10
25
15
30-40
5
5
15
Thresholds
$
$
50,000
50,000
50,000
100,000
5,000
5,000
5,000
Compensated Absences
It is the Town’s policy to permit employees to accumulate earned but unused vacation and sick pay benefits.
Accumulated unused vacation, up to a maximum of eighteen (18) days, and accumulated compensatory time, is
payable upon termination if the employee leaves the Town in good standing. There is no liability for unpaid
accumulated sick leave since the Town does not have a policy to pay any amounts when employees separate from
service with the Town.
The Town reports compensated absences in accordance with the provisions of GASB Statement No. 16,
“Accounting for Compensated Absences.” The entire compensated absence liability and expense is reported on the
government-wide financial statements. Governmental funds will only recognize a liability for compensated
absences if they are significant and have matured, for example, as a result of employee resignations or retirements.
6.
Accrued Liabilities and Long-Term Obligations
All payables, accrued liabilities and long-term obligations are reported in the government-wide financial statements.
Bond premiums and discounts are deferred and amortized over the life of the bonds using the straight-line method
(as it approximates the effective interest method) if material. Debt is reported net of applicable bond premiums and
discounts. Issuance costs are expensed in the period incurred.
48
TOWN OF MOUNT PLEASANT, SOUTH CAROLINA
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2014
I.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Equity (Continued)
6.
Accrued Liabilities and Long-Term Obligations (Continued)
In general, payables and accrued liabilities that will be paid from governmental funds are reported on the
governmental fund financial statements regardless of whether they will be liquidated with current financial
resources. However, claims and judgments, debt and capital leases, compensated absences, contractually required
pension contributions, special termination benefits and other similar long-term liabilities that will eventually be paid
from governmental funds are not reported as a liability in the fund financial statements until due and payable.
In the governmental fund financial statements, bond premiums, discounts and bond issuance costs are recognized
immediately. The face amount of debt or capital leases issued is reported as other financing sources. Premiums
received on debt issuances are reported as other financing sources while discounts are reported as other financing
uses. Issuance costs are reported as debt service expenditures.
7.
Deferred Outflows/Inflows of Resources
As defined by GASB Concept Statement No. 4, “Elements of Financial Statements”, deferred outflows of resources
and deferred inflows of resources are the consumption of net assets by the government that are applicable to a future
reporting period and an acquisition of net assets by the government that are applicable to a future reporting period,
respectively.
In addition to assets, the Town’s statement of financial position will sometimes report a separate section for deferred
outflows of resources. This separate financial statement element, deferred outflows of resources, represents a
consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of
resources (expense/expenditure) until then. The Town does not currently have any deferred outflows of resources.
In addition to liabilities, the Town’s statement of financial position will sometimes report a separate section for
deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents
an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of
resources (revenue) until that time. The government has two types of deferred inflows of resources. One of these
items arises only under the modified accrual basis of accounting. Accordingly, the items, unavailable revenue –
property taxes and unavailable revenue – other, are reported only in the governmental funds balance sheet. These
items are deferred and recognized as inflows of resources (revenues) in the period the amounts become available.
The other item arises under both the modified and full accrual basis of accounting. Accordingly, the item, deferred
revenue – business licenses, is reported not only in the governmental funds balance sheet but also in the
government-wide Statement of Net Position. This item is deferred and recognized as an inflow of resources
(revenue) in the period for which it was intended to finance.
8.
Fund Balance
In accordance with GASB Statement No. 54, “Fund Balance Reporting and Governmental Fund Type Definitions”
(“GASB #54”), the Town classifies its governmental fund balances as follows:
Nonspendable – includes amounts that inherently cannot be spent either because they are not in
spendable form (i.e. prepaids, inventories, etc.) or because of legal or contractual requirements (i.e.
principal on an endowment, etc.).
Restricted – includes amounts that are constrained by specific purposes which are externally
imposed by (a) other governments through laws and regulations, (b) grantors or contributions
through agreements, (c) creditors through debt covenants or other contracts, or (d) imposed by law
through constitutional provisions or enabling legislation.
49
TOWN OF MOUNT PLEASANT, SOUTH CAROLINA
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2014
I.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Equity (Continued)
8.
Fund Balance (Continued)
Committed – includes amounts that are constrained for specific purposes that are internally
imposed by the government through formal action made by the highest level of decision making
authority (Town Council) before the end of the reporting period. Those committed amounts cannot
be used for any other purpose unless the government removes or changes the specified use by taking
the same type of action it employed to previously commit those amounts. Committed amounts for
the Town consist of amounts passed and approved by resolution by Town Council (“Council”).
Assigned – includes amounts that are intended to be used for specific purposes that are neither
considered restricted nor committed and that such assignments are made before the report issuance
date. The Town reserves the right to assign fund balance by a simple majority vote of Council.
Unassigned – includes amounts that do not qualify to be accounted for and reported in any of the
other fund balance categories. This classification represents the amount of fund balance that has not
been assigned to other funds and that has not been restricted, committed, or assigned to specific
purposes within the General Fund. The General Fund should be the only fund that reports a positive
unassigned fund balance amount. In other governmental funds, if expenditures incurred for specific
purposes exceeded the amounts of restricted, committed, or assigned to those purposes, it may be
necessary to report a negative unassigned fund balance.
The Town generally uses restricted amounts to be spent first when both restricted and unrestricted (committed,
assigned, and unassigned) fund balance is available unless there are legal documents, contracts, or agreements that
prohibit doing such. Additionally, the Town generally would first use committed, then assigned, and lastly
unassigned amounts of unrestricted fund balance when expenditures are made.
Town Council approved by resolution on May 11, 2011 a fund balance policy whereby the unassigned fund balance
for the General Fund should be no less than 25% of total operating expenditures based on historical data. This
targeted amount should provide the Town sufficient reserves to maintain the cash flow needs of the Town until
revenues are received from the County, the State, and any other outside grantor agency.
9.
Net Position
Net position represents the difference between assets and deferred outflows of resources (if any) and liabilities and
deferred inflows of resources (if any) in the Statement of Net Position. Net position is classified as net investment
in capital assets; restricted; and unrestricted. Net investment in capital assets consists of capital assets, net of
accumulated depreciation, reduced by the outstanding balances of any borrowings used for the acquisition,
construction or improvement of those assets. Outstanding debt which has not been spent is included in the same net
position component as the unspent proceeds. Net position is reported as restricted when there are limitations
imposed on its use either through enabling legislation or through external restrictions imposed by creditors,
grantors, contributors, or laws or regulations of other governments.
10. Encumbrances
Encumbrance accounting, under which purchase orders, contracts, and other commitments for expenditures are
recorded to reflect the use of the applicable spending appropriations, is used by the General Fund during the year to
control expenditures. Encumbrances do not constitute expenditures or liabilities. For budget purposes
encumbrances and unused expenditure appropriations lapse at year end.
50
TOWN OF MOUNT PLEASANT, SOUTH CAROLINA
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2014
I.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Equity (Continued)
11. Accounting Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United
States of America requires management to make estimates and assumptions. Those estimates and assumptions
affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements. In addition, they affect the reported amounts of revenues and expenditures/expenses
during the reporting period. Actual results could differ from those estimates and assumptions.
12. Comparative Data
Comparative data (i.e. presentation of prior year totals by fund type) has not been presented in each of the
statements since their inclusion would make the statements unduly complex and difficult to read.
II. STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
A. Budgetary Information
The Town has elected to present its budgetary comparison information for the General Fund as a separate schedule
and not as financial statements. The Town does not have legally adopted budgets for the major special revenue
funds. See the Notes to the Budgetary Comparison Schedule (following the notes to the financial statements) for
details regarding the Town’s budgetary information and process.
III. DETAILED NOTES ON ALL FUNDS AND ACTIVITIES
A. Deposits and Investments
Deposits
Custodial Credit Risk for Deposits: Custodial credit risk for deposits is the risk that, in the event of a bank
failure, the Town’s deposits might not be recovered. The Town does not have a formal deposit policy for custodial
credit risk but follows the investment policy statutes of the State of South Carolina. As of June 30, 2014, none of
the Town’s bank balances of approximately $45,325,000 (with a carrying value of approximately $44,625,000)
were uncollateralized and exposed to custodial credit risk.
Investments
As of June 30, 2014, the Town had the following investments and maturities (if applicable):
Investment Type
South Carolina Local Government Investment Pool
US Government Mutual Fund
United States Treasury Bonds
Total
Fair Value
$
$
42,535,858
2,332,403
20,718,687
65,586,948
Credit Rating
Weighted Average
Maturity (In Years)
Unrated
Unrated
*
^
<1
1-3
* Credit ratings are not required for obligations of the US government.
^ Investments in 2a-7 like funds are not required to disclose interest rate risk.
Interest Rate Risk: The Town does not have a formal policy limiting investment maturities that would help
manage its exposure to fair value losses from increasing interest rates.
51
TOWN OF MOUNT PLEASANT, SOUTH CAROLINA
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2014
III. DETAILED NOTES ON ALL FUNDS AND ACTIVITIES (CONTINUED)
A. Deposits and Investments (Continued)
Investments (Continued)
Custodial Credit Risk for Investments: Custodial credit risk for investments is the risk that, in the event of a
bank failure, the government will not be able to recover the value of its investments or collateral securities that are
in the possession of an outside party.
Credit Risk for Investments: Credit risk for investments is the risk that an issuer or other counterparty to an
investment will not fulfill its obligations.
Concentration of Credit Risk for Investments: The Town places no limit on the amount the Town may invest in
any one issuer. Investments issued by or explicitly guaranteed by the U.S. Government and investments in mutual
funds, external investment pools and other pooled investments are exempt from concentration of credit risk
disclosures.
Certain cash, cash equivalents and investments of the Town are legally restricted for specified purposes. The major
types of restrictions at June 30, 2014 were (a) those imposed by the revenue source (i.e. hospitality tax,
accommodation taxes, impact assessment fees, etc.) and (b) unspent capital lease and bond proceeds.
Reconciliation to the Financial Statements
The following table reconciles the amounts reported as deposits and investments in the notes to the financial
statements to cash and cash equivalents and investments reported in the Statement of Net Position:
Financial Statements
Statement of Net Position
Cash and Cash Equivalents
Cash and Cash Equivalents - Restricted
Investments - Restricted
$
Statement of Assets and Liabilities - Fiduciary Funds - Agency Funds
Cash and Cash Equivalents - Restricted
Total
46,658,003
40,924,494
22,168,687
460,424
$ 110,211,608
Notes
Deposits and Cash on Hand
Investments
$
44,624,660
65,586,948
Total
$ 110,211,608
B. Receivables and Unavailable, Deferred, and Unearned Revenues
Property Taxes
The Town’s fiscal year 2014 real and business personal property taxes (which were for tax year 2013) were levied
on September 30, 2013, and were due beginning on this date based on the assessed valuation as of January 1, 2013.
Property taxes were considered late on January 16, 2014. Motor vehicle property tax is levied and collected on a
portion of taxable vehicles monthly. Assessed values are established by the Charleston County Tax Assessor and
the South Carolina Tax Commission. The Town’s current operating and debt service millage rates were 35.4 mills
and 2.9 mills, respectively. Town property taxes are billed and collected by Charleston County under a joint billing
and collection agreement.
52
TOWN OF MOUNT PLEASANT, SOUTH CAROLINA
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2014
III. DETAILED NOTES ON ALL FUNDS AND ACTIVITIES (CONTINUED)
B. Receivables and Unavailable, Deferred, and Unearned Revenues (Continued)
Development Receivable
In December 2004, the Town entered into a land development agreement with the Carolina Park developer whereby
the Town agreed to annex the development into the Town (along with numerous other provisions as defined) and
provided for an agreed upon impact assessment fee of $6,000,000 which was to be paid over 12 years at $500,000
per year beginning on December 20, 2005.
Since the impact assessment fee related to this development agreement qualifies as a structured payment plan, the
amount owed under the development agreement has been discounted and recorded as a receivable in the Statement
of Net Position. The receivable balance was approximately $1,417,000 as of June 30, 2014. No amounts were
recorded in the Town’s governmental fund financial statements as this was considered a long-term receivable and
was not available as of June 30, 2014.
The Town’s governmental activities net receivables at June 30, 2014 consisted of the following:
Property
Taxes
Gross Receivables
$
Allow. for Collectability
Net Receivables
$
Intergovernmental
Receivables
Other Receivables
Development
Other
Receivable
Miscellaneous
Storm
Water
879,742
(109,410)
4,815,400
-
281,414
(81,336)
1,416,741
-
$
643,870
-
770,332
4,815,400
200,078
1,416,741
$
643,870
Unavailable, Deferred, and Unearned Revenues
Governmental funds report as a component of deferred inflows of resources (a) revenues that are not considered to
be available to liquidate liabilities (unavailable revenue) and (b) revenues that have been received but are intended
to finance future periods (deferred revenue). Governmental funds also defer revenue recognition and report
liabilities in connection with resources that have been received but not yet earned (unearned revenue).
At June 30, 2014, the various components of unavailable, deferred, and unearned revenues were as follows:
Deferred Inflows of Resources
Unavailable
Deferred
Fund
Property Taxes Receivable
General
Advance - Business Licenses Fees
General
Advance - Recreation Fees
General
General
Advance - Other
Advance - Grants
State and Local Grants
Storm Water Receivable
Other Governmental
$
Total
$
53
558,387
199,302
757,689
6,770,363
6,770,363
Liabilities
Unearned
Total
206,003
14,176
2,818,575
-
$
558,387
6,770,363
206,003
14,176
2,818,575
199,302
3,038,754
$ 10,566,806
TOWN OF MOUNT PLEASANT, SOUTH CAROLINA
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2014
III. DETAILED NOTES ON ALL FUNDS AND ACTIVITIES (CONTINUED)
C. Interfund Receivables, Payables, and Transfers
Interfund Receivables and Payables
Interfund balances at June 30, 2014, consisted of the following individual fund receivables and payables:
Fund
Receivables
Major Funds:
General Fund
Federal Grants Special Revenue Fund
State and Local Grants Special Revenue Fund
GO Bond Capital Projects Fund
TIF Bond Capital Projects Fund
$
2,838,479
8,403,657
Other Non-Major Governmental Funds:
Other Governmental Funds
Totals
Payables
$
8,436,817
431,718
387,657
31,608
-
33,160
$
11,275,296
1,987,496
$
11,275,296
Interfund receivables and payables are a result of the General Fund financing salaries and other operating
expenditures for Grant Funds, Special Revenue Funds, and Capital Project Funds. The TIF Bond Capital Projects
Fund receivable is related to the TIF property tax revenues that were received by the General Fund in late June. All
of these amounts are expected to be paid within one year.
Interfund Transfers
Interfund transfers for the year ended June 30, 2014, consisted of the following:
Fund
Transfers In
Major Funds:
General Fund
Federal Grants Special Revenue Fund
State and Local Grants Special Revenue Fund
TIF Bond Capital Projects Fund
$
Other Non-Major Governmental Funds:
Other Governmental Funds
Totals
7,923,718
142,000
46,215
-
Transfers Out
$
3,157,751
$
11,269,684
3,165,914
1,612,211
6,491,559
$
11,269,684
During the course of normal operations and in order to support the numerous functions of the Town, transactions
between funds may occur. The Town uses transfers to move unrestricted receipts so that they may be used for
various programs in other funds.
Transfers into the General Fund were processed to meet the debt service obligations of the Town. Transfers out of
the General Fund consisted primarily of funds needed to meet the funding requirements of ongoing and future
capital projects of the Town and to meet grant matching obligations as appropriated by Town Council during the
fiscal year. The total amounts transferred out of the TIF Bond Capital Projects Fund were related to various capital
projects as appropriated by Town Council. The transfers in and out of the Other Governmental Funds were
processed primarily to meet funding requirements related to various capital projects as appropriated by Town
Council during the fiscal year and were provided to meet capital debt service obligations of the Town.
54
TOWN OF MOUNT PLEASANT, SOUTH CAROLINA
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2014
III. DETAILED NOTES ON ALL FUNDS AND ACTIVITIES (CONTINUED)
D. Capital Assets
Capital asset activity for the Town’s governmental activities for the year ended June 30, 2014, was as follows:
Beginning
Balance
Capital Assets, Non-Depreciable:
Land
Construction In Progress
Increases
Decreases
Transfers
Ending
Balance
$ 282,282,440
1,756,631
2,515,697
3,008,068
435,000
-
$ 284,363,137
(2,091,969)
2,672,730
Total Capital Assets, Non-Depreciable
284,039,071
5,523,765
435,000
(2,091,969)
287,035,867
Capital Assets, Depreciable:
Buildings and Building Improvements
Improvements Other than Buildings
Infrastructure
Machinery and Equipment
48,504,115
12,823,576
252,936,006
24,974,408
76,543
2,941,619
3,770,068
17,699
284,908
293,178
1,798,791
-
48,779,594
12,900,119
257,676,416
28,459,568
339,238,105
6,788,230
302,607
2,091,969
347,815,697
17,301,907
6,793,894
115,725,960
15,483,583
2,062,719
930,907
7,779,660
2,071,516
17,699
246,876
-
19,346,927
7,724,801
123,505,620
17,308,223
Total Accumulated Depreciation
155,305,344
12,844,802
264,575
-
167,885,571
Total Capital Assets, Depreciable, Net
183,932,761
(6,056,572)
38,032
$ 467,971,832
(532,807)
473,032
Total Capital Assets, Depreciable
Less: Accumulated Depreciation for:
Buildings and Building Improvements
Improvements Other than Buildings
Infrastructure
Machinery and Equipment
Total Capital Assets, Net
2,091,969
-
179,930,126
$ 466,965,993
The cost of equipment recorded under capital lease was approximately $8,690,000 and accumulated amortization
was approximately $2,807,000 at June 30, 2014. Amortization of assets recorded under capital lease obligations has
been included with depreciation expense
Capital asset additions and depreciation expense for governmental activities was charged to functions/programs as
follows:
Functions/Programs
Depreciation
Additions
General Government
Public Safety
Public Service
Highways and Streets
Planning and Development
Culture and Recreation
Total
.
55
$
552,531
2,934,285
1,250,173
5,517,961
1,549,405
507,640
$
1,450,193
1,225,086
902,337
386,627
7,214,608
1,665,951
$
12,311,995
$
12,844,802
TOWN OF MOUNT PLEASANT, SOUTH CAROLINA
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2014
III. DETAILED NOTES ON ALL FUNDS AND ACTIVITIES (CONTINUED)
D. Capital Assets (Continued)
From time to time, the Town receives donated land and infrastructure for new subdivisions/projects that are given to
the Town from various developers. In 2014, the Town received approximately $4,869,000 in donated
infrastructure, land (including right of ways), and other capital assets primarily related to several new subdivisions.
The Town’s engineers inspect and approve (verifying that the donated infrastructure meets federal, state and local
building codes) donated infrastructure before the Town takes over ownership. The Town’s engineer certifies the
construction costs related to the infrastructure and the donation is recorded in the Town’s capital asset system.
South Carolina Transportation Infrastructure Bank
In May 2007, the Town entered into an intergovernmental agreement with the South Carolina Transportation
Infrastructure Bank (“SIB”) for financial assistance in funding the US 17/I-526 Interchange (the “Interchange
Project”) for approximately $40,000,000, in the form of an initial grant of $7,000,000 for engineering and
environmental work and $33,000,000 for completion of the Interchange Project. In August 2008, the Town entered
into an amended agreement for an additional $11,400,000, with the SIB for the acquisition of rights of way. In
August 2011, the Town entered into an amended agreement for an additional $6,010,000 with the SIB for work
related to this project. The SIB allocated an additional $1,030,000 for the acquisition of rights of way during 2011,
which brought the SIB’s total financial assistance provided for the Interchange Project to $58,440,000. The
Interchange Project is expected to be completed in fiscal year 2015.
Improvements by the Town to roads owned by the federal or state government are not capitalized but are expensed
as incurred as intergovernmental expenditures.
E. Long-Term Obligations
The Town issues bonds to provide funds for the acquisition and construction of major capital facilities. General
Obligation Bonds (“GOB”) are direct obligations and pledge the full faith and credit of the Town. Tax Increment
Financing Bonds (“TIFB”) are considered a special obligation of the Town payable solely from ad valorem taxes
generated by improvements to real property within the redevelopment project area. The full faith, credit, and taxing
powers of the Town are not pledged for the payment of the TIFB nor the interest thereon. Capital Lease (“CL”)
obligations are special obligations of the Town payable from the general revenues of the Town. The full faith,
credit and taxing powers of the Town are not pledged for the payment of capital lease obligations nor the interest
thereon. Details on the Town’s outstanding debt issues and capital leases as of June 30, 2014 are as follows:
Balance at
June 30, 2014
General Obligation Bonds
$12,650,000 general obligation bond issued in December 2005 (“GOB-12/05”), due in semiannual installments of $1,145,000 to $1,695,000 beginning December 1, 2006 through December
1, 2014, plus interest at 3.250% to 4.00%, due semi-annually. The proceeds from this issue were
primarily used for constructing, improving and/or expanding the following: (a) Jones Center, (b)
installing lights at Cario Middle School, (c) gymnasium for Park West, (d) construction funding
for the expansion of the Town municipal complex, (e) visitors center, (f) senior citizens facility,
and (g) transportation projects (for Bowman Road, Hungryneck Boulevard Phase II & III,
Whipple Road, and the Beaucastle Frontage Road). A premium on the issuance of these bonds
was received of approximately $67,000. Unamortized premiums as of June 30, 2014 totaled
approximately $4,000. $6,003,425 of this issue was issued under referendum and thus not subject
to the 8% debt limit.
56
$ 1,695,000
TOWN OF MOUNT PLEASANT, SOUTH CAROLINA
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2014
III. DETAILED NOTES ON ALL FUNDS AND ACTIVITIES (CONTINUED)
E. Long-Term Obligations (Continued)
Balance at
June 30, 2014
General Obligation Bonds (Continued)
$15,695,000 general obligation bond issued in March 2007 (“GOB-3/07”), due in semi-annual
installments of $1,285,000 to $1,885,000 beginning December 1, 2008 through December 1,
2016, plus interest at 4.00%, due semi-annually. The proceeds from this issue were primarily
used for constructing, improving and/or expanding the following: (a) transportation projects for
Hungryneck Boulevard, Highway 17, and Park West, (b) recreation projects at Carolina Park,
Park West, Whipple Road and a senior service center, and (c) miscellaneous projects (including
fire/police training facility, municipal complex, Six-Mile Public Services Complex, economic
development infrastructure, and piping along Mathis Ferry Road). A premium on the issuance of
these bonds was received of approximately $226,000. Unamortized premiums as of June 30,
2014 totaled approximately $56,000. $6,451,575 of this issue was issued under referendum and
thus not subject to the 8% debt limit.
$ 5,430,000
$20,000,000 general obligation bond issued in August 2010 (“GOB-8/10”), due in semi-annual
installments of $780,000 to $1,750,000 beginning December 1, 2010 through December 1, 2024,
plus interest at 2.89%, due semi-annually. The proceeds from this issue were primarily used to
defray the cost of designing, acquiring, constructing, and expanding various capital
improvements within the Town, including but not limited to, (a) widening of U.S. Highway 17
and other road improvements, (b) recreational facilities, and (c) other municipal improvements.
15,945,000
$25,000,000 general obligation bond issued in April 2014 (“GOB-4/14”), due in annual
installments of $1,110,000 to $2,180,000 beginning June 1, 2015 through June 1, 2029, plus
interest at 2.59%, due semi-annually. The proceeds from this issue were primarily used to defray
the cost of designing, acquiring, constructing, and expanding various capital improvements
within the Town, including but not limited to, (a) construction of a new municipal complex, (b)
various transportation, recreation and stormwater projects, and (c) other municipal improvements.
A premium on the issuance of these bonds was received of $2,649,000. Unamortized premiums
as of June 30, 2014 totaled approximately $2,612,000. Bond issuance costs of approximately
$264,000 were incurred and expensed related to this issue.
25,000,000
Tax Increment Financing Bonds
$4,900,000 tax increment financing bonds issued in September, 2001 (“TIFB-9/01”), due in
annual installments of $225,000 to $455,000 beginning October 1, 2002 through October 1,
2016, plus interest at 4.27%, due semi-annually. The proceeds from this issue were used in
accordance with the redevelopment plan which consisted of construction projects for the
following redevelopment areas (a) East Cooper Gateway, (b) Coleman Boulevard, (c) Bowman
Road/K-Mart, (d) U.S. 17/Isle of Palms Connector, and (e) I-526 Gateway and Long Point Road.
This issuance is not subject to the 8% debt limit requirement.
1,300,000
$6,315,000 tax increment financing bonds issued in April, 2003 (“TIFB-4/03”), due in annual
installments of $320,000 to $615,000 beginning October 1, 2003 through October 1, 2016, plus
interest at 3.69%, due semi-annually. The proceeds from this issue were used in accordance with
the redevelopment plan and were primarily used to further the construction work initiated under
earlier TIFBs. This issuance is not subject to the 8% debt limit requirement.
1,740,000
57
TOWN OF MOUNT PLEASANT, SOUTH CAROLINA
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2014
III. DETAILED NOTES ON ALL FUNDS AND ACTIVITIES (CONTINUED)
E. Long-Term Obligations (Continued)
Balance at
June 30, 2014
Tax Increment Financing Bonds (Continued)
$8,000,000 tax increment financing bonds issued in February, 2005 (“TIFB-2/05”), due in annual
installments of $672,850 to $945,900 beginning October 1, 2005 through October 1, 2014, plus
interest at 4.34%, due semi-annually. The proceeds from this issue were used in accordance with
the redevelopment plan and were primarily used to further the construction work initiated under
the earlier TIFBs. The issuance is not subject to the 8% debt limit requirement.
$
$4,485,000 tax increment financing bonds issued in March, 2006 (“TIFB-3/06”), due in annual
installments of $375,000 to $530,000 beginning October 1, 2006 through October 1, 2015, plus
interest at 4.14%, due semi-annually. The proceeds from this issue were used in accordance with
the redevelopment plan and were primarily used to further the construction work initiated under
the earlier TIFBs. The issuance is not subject to the 8% debt limit requirement.
Total Outstanding General Obligation and Tax Increment Financing Bonds
945,900
1,040,000
$ 53,095,900
Capital Lease Obligations
$2,178,000 capital lease was entered into in August, 2010 (“CL-8/10B”), with semi-annual
installments (including interest) of $167,736 beginning August 20, 2010 through February 20,
2017 which includes interest at 2.365%. The proceeds from this capital lease obligation were
primarily used to purchase two fire trucks and various public service vehicles.
$
966,046
$1,257,000 capital lease was entered into in August, 2011 (“CL-8/11A”), with semi-annual
installments (including interest) of $95,648 beginning August 18, 2011 through February 18,
2018 which includes interest at 1.980%. The proceeds from this capital lease obligation were
primarily used to purchase a fire truck, two loaders, and other vehicles.
732,187
$250,000 capital lease was entered into in August, 2012 (“CL-8/12A”), with semi-annual
installments (including interest) of $25,791 beginning August 29, 2012 through February 28,
2017 which includes interest at 1.400%. The proceeds from this capital lease obligation were
primarily used to purchase a packer truck.
151,024
$552,000 capital lease was entered into in August, 2012 (“CL-8/12B”), with semi-annual
installments (including interest) of $93,358 beginning August 29, 2012 through February 28,
2015 which includes interest at 1.180%. The proceeds from this capital lease obligation were
primarily used to purchase vehicles and equipment.
185,076
$1,084,000 capital lease was entered into in September, 2013 (“CL-9/13A”), with semi-annual
installments (including interest) of $182,513 beginning September 9, 2013 through March 9,
2016 which includes interest at 0.817%. The proceeds from this capital lease obligation were
primarily used to purchase vehicles and equipment.
722,657
$2,030,000 capital lease was entered into in September, 2013 (“CL-9/13B”), with semi-annual
installments (including interest) of $208,515 beginning September 9, 2013 through March 9,
2018 which includes interest at 1.202%. The proceeds from this capital lease obligation were
primarily used to purchase vehicles and equipment.
1,623,917
Total Outstanding Capital Lease Obligations
$
58
4,380,907
TOWN OF MOUNT PLEASANT, SOUTH CAROLINA
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2014
III. DETAILED NOTES ON ALL FUNDS AND ACTIVITIES (CONTINUED)
E. Long-Term Obligations (Continued)
Presented below is a summary of changes in long-term obligations for the Town’s governmental activities for the
year ended June 30, 2014:
Beginning
Balance
Additions
385,000
3,310,000
7,090,000
17,080,000
-
25,000,000
Total General Obligation Bonds
27,865,000
25,000,000
Tax Increment Financing Bonds:
TIFB-9/01
TIFB-4/03
TIFB-2/04
TIFB-2/05
TIFB-3/06
1,695,000
2,265,000
160,000
1,852,400
1,530,000
Total Tax Increment Financing Bonds
7,502,400
Long-Term Obligations
Debt:
General Obligation Bonds:
GOB-6/99
GOB-12/05
GOB-3/07
GOB-8/10
GOB-4/14
$
Ending
Balance
Due Within
One Year
385,000
1,615,000
1,660,000
1,135,000
-
1,695,000
5,430,000
15,945,000
25,000,000
$
4,795,000
48,070,000
5,720,000
-
395,000
525,000
160,000
906,500
490,000
1,300,000
1,740,000
945,900
1,040,000
410,000
550,000
945,900
510,000
-
2,476,500
5,025,900
2,415,900
Reductions
1,695,000
1,735,000
1,180,000
1,110,000
Subtotal
Premium on Issuance of GOB-12/05
Premium on Issuance of GOB-3/07
Premium on Issuance of GOB-4/14
35,367,400
11,417
79,670
-
25,000,000
2,648,546
7,271,500
7,406
23,307
36,481
53,095,900
4,011
56,363
2,612,065
8,135,900
-
Total Debt
35,458,487
27,648,546
7,338,694
55,768,339
8,135,900
Capital Leases:
CL-9/09
CL-8/10B
CL-8/11A
CL-8/11B
CL-8/12A
CL-8/12B
CL-9/13A
CL-9/13B
117,216
1,273,212
906,394
365,065
199,977
367,975
-
1,084,000
2,030,000
117,216
307,166
174,207
365,065
48,953
182,899
361,343
406,083
966,046
732,187
151,024
185,076
722,657
1,623,917
314,474
177,673
49,641
185,076
359,855
398,705
Total Capital Leases
3,229,839
3,114,000
1,962,932
4,380,907
1,485,424
38,688,326
30,762,546
9,301,626
60,149,246
9,621,324
3,590,612
7,687,428
1,499,592
1,333,144
1,081,198
1,055,000
345,495
909,329
3,868,756
7,341,933
1,671,461
133,717
$ 51,465,958
33,176,888
11,611,450
73,031,396
$ 9,755,041
Total Debt and Capital Leases
Net OPEB Liability
Infrastructure Credits
Compensated Absences
Total Long-Term Obligations
59
TOWN OF MOUNT PLEASANT, SOUTH CAROLINA
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2014
III. DETAILED NOTES ON ALL FUNDS AND ACTIVITIES (CONTINUED)
E. Long-Term Obligations (Continued)
Resources from the General Fund, TIF Bond Fund, and 2014 GOB Debt Service Fund will be used to liquidate the
governmental activities debt and capital lease obligations. Resources from the General Fund have been used to
liquidate the compensated absences liability and net OPEB liability.
The Town from time to time enters into development agreements in accordance with Chapter 157 of the Town’s
code of ordinances. In certain development agreements, the Town may allow developers to donate eligible
infrastructure projects in lieu of a paid transportation impact assessment fee. During 2014, the Town issued no
infrastructure credits and recognized credits used of approximately $345,000, which left an ending balance of
approximately $7,342,000 for future years.
Article Eight, Section Seven of the South Carolina Constitution of 1895, as amended, provides that no City or Town
shall incur any bonded debt which shall exceed eight percent (8%) of the assessed value of the property therein and
no such debt shall be created without the electors of such City or Town voting in favor of such further bonded debt.
Prior to Home Rule Act of July 1, 1976, the bonded debt exemption was thirty five percent (35%). In 1976, the
General Assembly reduced the general obligation debt limit without voter approval to eight percent (8%) of
assessed valuation; whereas, with a referendum any amount can be floated. As of June 30, 2014, the Town had
approximately $46,213,000 of bonded debt subject to the 8% limit of approximately $52,748,000 resulting in an
unused legal debt margin of approximately $6,535,000.
Interest paid on the debt issued by the Town is exempt from federal income tax. The Town sometimes temporarily
reinvests the proceeds of such tax-exempt debt in higher-yielding taxable securities, especially during construction
projects. The federal tax code refers to this practice as arbitrage. Excess earnings (the difference between the
interest on the debt and the investment earnings received) resulting from arbitrage must be rebated to the federal
government. At June 30, 2014, the Town had no arbitrage rebate liability.
Presented below is a summary of debt service requirements to maturity by year for the Town’s governmental
activities as of June 30, 2014:
Debt
Principal
Year Ending June 30,
2015
2016
2017
2018
2019
2020-2024
2025-2029
Totals
$
Interest
Capital Leases
Interest
Principal
Total
8,135,900
5,845,000
5,555,000
2,720,000
2,845,000
16,020,000
11,975,000
1,950,234
1,565,846
1,353,093
1,190,440
1,081,708
3,834,555
1,025,038
1,485,424
1,319,815
973,851
601,817
-
61,698
40,592
21,530
6,510
-
$ 11,633,256
8,771,253
7,903,474
4,518,767
3,926,708
19,854,555
13,000,038
$ 53,095,900
12,000,914
4,380,907
130,330
$ 69,608,051
F. Conduit Debt
As of June 30, 2014, Mount Pleasant Waterworks had approximately $66,552,000 of outstanding bonds and loans
(net of premiums) in the name of the Town of Mount Pleasant. The bonds and loans are secured by a pledge of, and
lien upon, all revenues derived from the operations of Mount Pleasant Waterworks, and all funds and accounts
derived from such revenues. The Town is not obligated to pay any of these bonds or loans, or any interest thereon.
60
TOWN OF MOUNT PLEASANT, SOUTH CAROLINA
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2014
IV. OTHER INFORMATION
A. Risk Management
Participation in Public Entity Risk Pools for Property and Casualty Insurance
The Town is exposed to various risks of loss related to torts, theft of, damage to, and destruction of assets, errors
and omissions, and natural disasters. The Town has joined together with other municipalities in the state to form the
South Carolina Municipal Insurance and Risk Financing Fund (“SCMIRF”), which is a public entity risk pool
currently operating as a common risk management and insurance program. The Town obtains its general risk
insurance through SCMIRF. It pays an annual premium for this coverage. For the year ended June 30, 2014, the
Town made premium payments totaling approximately $650,000. SCMIRF is self-sustaining through member
premiums and reinsures through commercial companies. SCMIRF’s net assets from its most recently issued audited
financial statements at December 31, 2013, totaled approximately $28,412,000. There were no significant
reductions in coverage in the past fiscal year and there were no settlements exceeding insurance coverage in the past
three fiscal years.
The Town has also joined together with other municipalities in the state to form the South Carolina Municipal
Insurance Trust (“SCMIT”), a public entity risk pool operating as a common risk management and insurance
program for worker’s compensation. The Town pays an annual premium to SCMIT. In the year ended June 30,
2014, the Town made premium payments totaling approximately $349,000. The Trust uses reinsurance agreements
to reduce its exposure to large workers’ compensation losses. SCMIT’s net assets from its most recently issued
audited financial statements at December 31, 2013, totaled approximately $48,279,000. There were no significant
reductions in coverage in the past fiscal year and there were no settlements exceeding insurance coverage in the past
three fiscal years.
Self-Insurance Health Plan
The Town maintains a partial self-insurance program (minimum premium plan) for medical and life insurance
coverage for Town employees. The Town has contracted with a plan administrator that directly handles the
settlement of all claims. The Town’s health insurance plan has an individual stop loss insurance amount of
approximately $150,000 (the Town does not carry aggregate stop loss insurance coverage). In December 2013, the
Town entered into an agreement with a healthcare contractor to provide corporate primary care services for the
Town’s employees, retirees, and dependents; wellness support functions; the establishment and maintenance of an
on-site pharmacy; and for chronic disease and risk management. This agreement is for three years and may be
renewed for consecutive one year periods upon mutual written agreement.
The liability of $1,250,000 reported in the General Fund at June 30, 2014 is based on the requirements of
Governmental Accounting Standards Board Statement No. 10, which requires that a liability for claims be reported
if information prior to the issuance of the financial statements indicates that it is probable that a liability has been
incurred at the date of the financial statements and the amount of the loss can be reasonably estimated.
Changes in the reported health liabilities for the past few years are as follows:
Beginning of
Fiscal Year
Liability
Fiscal Year
2011 - 2012
2012 - 2013
2013 - 2014
$
$
Claims, Administrative
Costs, and Changes in
Estimates
1,000,000
1,000,000
1,000,000
5,643,753
5,808,176
5,921,551
Claims/
Administrative
Payments
(5,643,753)
(5,808,176)
(5,671,551)
End of
Fiscal Year
Liability
$
$
1,000,000
1,000,000
1,250,000
The Town has not significantly reduced insurance coverages from the previous year; and settled claims in excess of
insurance coverage for the last three years were immaterial.
61
TOWN OF MOUNT PLEASANT, SOUTH CAROLINA
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2014
IV. OTHER INFORMATION (CONTINUED)
B. Related Party Transactions
The Town has agreed to waive inspection fees, building permit fees, fee in lieu of taxes, and impact fees where
Waterworks is the owner of the property. In consideration, Waterworks makes an annual payment to the Town
equal to one percent of Waterworks’ gross operating revenues derived from water and wastewater sales and facility
charges only, of the prior fiscal year. During the fiscal year ended June 30, 2014, the payment equaled
approximately $262,000. Waterworks provides water and sewer services to the Town at reasonable rates. During
the fiscal year ended June 30, 2014, the Town paid approximately $245,000 for water and sewer services.
Waterworks will not charge the Town impact fees for projects that are owned and operated by the Town.
C. Contingent Liabilities
Grants
Amounts received or receivable from grant agencies are subject to audit and adjustment by grantor agencies,
principally the federal government. Any disallowed claims, including amounts already collected, may constitute a
liability of the applicable funds. The amount, if any, of expenditures that may be disallowed by the grantor cannot
be determined at this time, although the Town expects such amounts, if any, to be immaterial.
Litigation
From time to time, the Town is a defendant in various other lawsuits arising out of employment, accidents, street
defects, and other alleged torts. These cases are being defended by the insurance carrier of the Town and there is
minimal risk to the Town.
D. Deferred Compensation Plan
The Town offers its employees the option to participate in the South Carolina 401 (k), Roth 401 (k), and 457
Deferred Compensation plans (collectively the “Deferred Compensation Plans”). The Deferred Contribution Plans
are administered by the South Carolina Deferred Compensation Commission (“Commission”). All amounts of
compensation contributed under the Deferred Compensation Plans, all income, and rights attributed to such amounts
remain the sole property of the participating employee. Current year payroll covered under the Deferred
Compensation Plans was approximately $5,925,000 of the Town’s total payroll (for all Town employees) of
approximately $24,657,000. Employees can contribute a minimum of $10 of gross salary per paycheck, up to a
maximum of $17,500, with an additional $5,500 if participants are over age 50 or will turning 50 during the year.
Contributions are not available to employees until termination of employment, retirement, death, or foreseeable
emergency, with the exceptions of education and purchase or improvement of a primary residence. There is no
eligibility or vesting requirements. The Town has no obligation to contribute to the Deferred Compensation Plans,
and has made no contributions during the year. Employee contributions were approximately $308,000 for the year
ended June 30, 2014. There were no significant changes in plan provisions during the current year.
E. Retirement Plans
South Carolina Retirement and Police Officers’ Retirement System
Full time employees of the Town are covered under two different retirement plans. Town employees, except for fire
and police department employees participate in the South Carolina Retirement System (“SCRS”), a cost-sharing
multiple-employer defined benefit pension plan. Town police officers and firemen participate in the South Carolina
Police Officers’ Retirement System (“SCPORS”), a cost-sharing multiple-employer defined benefit pension plan.
The SCRS was established by the South Carolina state legislature on July 1, 1945, for the benefit of teachers and
employees of the State and its political subdivisions. The SCPORS was established by the South Carolina state
legislature on July 1, 1962, for the benefit of police officers and firemen.
62
TOWN OF MOUNT PLEASANT, SOUTH CAROLINA
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2014
IV. OTHER INFORMATION (CONTINUED)
E. Retirement Plans (Continued)
South Carolina Retirement and Police Officers’ Retirement System (Continued)
Both the SCRS and the SCPORS offer retirement and disability benefits, cost of living adjustments on an ad-hoc
basis, life insurance benefits, and survivor benefits. The Plans’ provisions are established under Title 9 of the South
Carolina Code of Laws and are administered by the South Carolina Public Employee Benefit Authority (“PEBA”).
The PEBA has the authority to establish and amend benefits and funding policy. A comprehensive annual financial
report containing financial statements and required supplementary information for the retirement benefits is issued
and publicly available by writing to the South Carolina Public Employee Benefit Authority, P.O. Box 11960,
Columbia, SC 29211-1960.
Group life insurance for active employees are covered by an insurance benefit equal to one year’s salary after one
year of SCRS service and retirees are covered by a benefit up to $6,000 based on years of service.
Both employees and the Town are required to contribute to the Plans at rates established and as amended by the
PEBA. The Town’s contributions are actuarially determined, but are communicated to and paid by the Town as a
percentage of the employees’ annual earnings.
Employer Rate
Retirement
Group Life Ins. Benefit
Accidental Death Benefit
Employee Rate
2012
SCRS Rates
2013
2014
2012
SCPORS Rates
2013
2014
9.39%
0.15%
N/A
10.45%
0.15%
N/A
10.45%
0.15%
N/A
11.36%
0.20%
0.20%
11.90%
0.20%
0.20%
12.44%
0.20%
0.20%
9.54%
10.60%
10.60%
11.76%
12.30%
12.84%
6.50%
7.00%
7.50%
6.50%
7.00%
7.84%
The required contributions and percentages of amounts contributed for the past three years were as follows:
SCRS Contributions
SCPORS Contributions
Year Ending
June 30,
Required
% Contributed
% of Covered
Payroll
Required
% Contributed
% of Covered
Payroll
2014
2013
2012
$ 1,227,959
1,226,649
$ 1,143,999
100%
100%
100%
10.60%
10.60%
9.54%
$ 1,484,351
1,342,414
$ 1,300,204
100%
100%
100%
12.84%
12.30%
11.76%
The retirement plans require mandatory participation from employees. Current year eligible payrolls covered under
both systems are as follows:
SCRS
Payroll
Fiscal Year
2014
2013
2012
$
$
SCPORS
Payroll
11,584,520
11,572,163
11,997,890
11,560,369
10,913,935
11,053,339
Total SCRS/SCPORS
Payroll
$
$
23,144,889
22,486,098
23,051,229
Total payroll for 2014, 2013, and 2012 for all Town employees was approximately $24,657,000, $23,923,000, and
$23,429,000, respectively.
63
TOWN OF MOUNT PLEASANT, SOUTH CAROLINA
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2014
IV. OTHER INFORMATION (CONTINUED)
F. Postemployment Benefits Other Than Pensions
Plan Description
The Town sponsors a defined benefit postemployment healthcare plan (the “OPEB Plan”) that provides medical and
dental insurance for retirees. Eligibility and benefit provisions are different for each of the following groups:
Group A:
Employees who retired prior to January 1, 2013. Employees must have a minimum of five
years of service with the Town and be eligible to retire in the state retirement system to be
eligible to receive medical benefits from the Town upon retirement. Employees must have a
minimum of 5 years of service for the Town to pay a portion of the premium on behalf of the
retiree. Retirees are provided lifetime coverage with the Town’s health plan being secondary
to Medicare.
Group B:
Employees hired prior to November 1, 2008. Employees who retire on or after January 1,
2013 must have a minimum of 20 aggregate years of service with the Town. In addition,
SCRS employees must have attained age 60 and SCPORS employees must have attained age
55 at the time of retirement. SCRS and SCPORS employees who retire due to disability on or
after January 1, 2013 must meet the state retirement system or Social Security requirements;
however, the Town service and age retirements are waived. Employees must have a
minimum of 20 years of service for the Town to pay a portion of the premium on behalf of
the retiree. Health insurance benefits are provided through the Town’s plan until the retiree
reaches Medicare-eligibility age, at which point the Town will provide a Medicare
supplemental plan.
Group C:
Employees hired on or after November 1, 2008. Employees must have a minimum of 20
aggregate years of service with the Town. In addition, SCRS employees must have attained
age 60 and SCPORS employees must have attained age 55 at the time of retirement. SCRS
and SCPORS employees who retire due to disability on or after January 1, 2013 must meet
the state retirement system or Social Security requirements; however, the Town service and
age retirements are waived. Employees must have a minimum of 20 years of service for the
Town to pay a portion of the premium on behalf of the retiree. Health insurance benefits are
provided through the Town’s plan until the retiree reaches Medicare-eligibility age, at which
point benefits cease.
Information regarding SCRS and SCPORS eligibility may be found above in Note IV.E. The OPEB Plan is
approved each year by the Town’s Council; the benefit and contribution requirements of the Town and plan
members are established and amended by the Town’s Council. These contributions are neither guaranteed nor
mandatory. The Town has retained the right to unilaterally modify its payments toward retiree health care benefits at
any time.
As of July 1, 2013, the measurement date, there were 601 covered participants; 95 members are retirees receiving
benefits and 506 are active participants and dependents.
The Plan is affiliated with the South Carolina Other Retirement Benefits Employer Trust (“SC ORBET”), an agent
multiple-employer investment plan administered by the Municipal Association of South Carolina (“MASC”). SC
ORBET issues a publicly available financial report that includes audited financial statements and required
supplementary information for the OPEB Plan. A copy of the report may be obtained by writing to: Chief Financial
Officer for Risk Management Services, Municipal Association of South Carolina, P.O. Box 12109, Columbia,
South Carolina 29211.
64
TOWN OF MOUNT PLEASANT, SOUTH CAROLINA
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2014
IV. OTHER INFORMATION (CONTINUED)
F. Postemployment Benefits Other Than Pensions (Continued)
Funding Policy
Retirees contribute monthly for medical and dental coverage based on years of service with the Town being
responsible for any remaining portion. Retirees contribute as follows:
Years of Service
Retiree
Portion
0-4
5-9
10 - 14
15 - 19
20 +
100%
75%
50%
25%
5%
Retiree
Coverage
$
$
290.64
229.67
168.72
107.77
59.00
Family
Coverage
$
$
569.92
516.23
462.56
408.89
365.94
The Town’s annual other postemployment benefits (“OPEB”) cost (expense) is calculated based on the annual
required contribution (“ARC”) of the employer, an amount actuarially determined in accordance with the
parameters of GASB Statement No. 45. The ARC represents a level of funding that, if paid on an ongoing basis, is
projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a
period not to exceed thirty years.
Actuarial Methods and Assumptions
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about
the probability of occurrence of events far into the future. Examples include assumptions about future employment,
mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the OPEB Plan and the
annual required contributions of the employer are subject to continual revision as actual results are compared with
past expectations and new estimates are made about the future.
Projections of benefits for financial reporting purposes are based on the substantive OPEB Plan (the plan as
understood by the employer and the plan members) and include the types of benefits provided at the time of each
valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point.
The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term
volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of
the calculations.
The following table summarizes the key actuarial assumptions and cost method:
Actuarial Valuation Date:
Actuarial Cost Method:
Amortization Method:
Amortization Period:
Asset Valuation Method:
Actuarial Assumptions:
Investment Rate of Return
Health Cost Trend
Salary/Inflation
Coverage Elections
July 1, 2013
Projected Unit Credit
Level Percent of Pay, Open
30 Years
5 Year Smoothed Market Value; 80% - 120% Corridor
5.00%
8.5% from 2013 and decreasing until it reaches 5.0% for 2018 and beyond
3.5% which includes 2.75% inflation component
75% of eligible retirees will elect coverage; 50% of those who elect
coverage will elect to cover the spouse
Active Participant Marriage Assumption 100% of all active employees are assumed to be married with female
spouses assumed to be 3 years younger than males
Mortality Table
RP-2000
65
TOWN OF MOUNT PLEASANT, SOUTH CAROLINA
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2014
IV. OTHER INFORMATION (CONTINUED)
F. Postemployment Benefits Other Than Pensions (Continued)
Actuarial Methods and Assumptions (Continued)
The Town implemented GASB Statement No. 45 in fiscal year 2009. The actuarial value of assets recognizes a
portion of the difference between the market value of assets and the expected market value of assets, based on the
assumed valuation investment rate of return over an amortization period of five years. The amount recognized each
year is 20% of the difference between actual market value and expected market value since the last actuarial
valuation. The resulting value must be no less than 80% of market value and no more than 120% of market value
(referred to as a corridor). The OPEB Plan’s UAAL is being amortized as a level percent of payroll with an
inflation assumption of 2.75%. The remaining amortization period at June 30, 2014 was thirty years.
Annual OPEB Costs and Rollforward of Net OPEB Obligation
For 2014, the Town’s annual OPEB cost (expense) and the progression of the net OPEB obligation in the OPEB
Plan for the most recent plan year (fiscal year 2014) was as follows:
1.
2.
3.
4.
Net OPEB Obligation (Asset), Beginning of the Plan Year
One Year's Interest on the Net OPEB Obligation
ARC (Normal Cost Plus Any Amortization Payments)
Adjustment to Annual Required Contribution
5.
6.
Annual OPEB Cost: (2)+(3)+(4)
Contributions Made for the Plan Year
7.
Increase (Decrease) in Net OPEB Obligation (Asset): (5)+(6)
8.
Net OPEB Obligation (Asset), End of the Plan Year: (1)+(7)
$
3,590,612
179,531
1,314,621
(161,008)
1,333,144
(1,055,000)
278,144
$
3,868,756
Schedule of Employer Contributions
Contributions include $603,000 paid by the Town to the OPEB Plan to pre-fund benefits and approximately
$452,000 made by the Town through payment of covered participants’ explicit benefits. Annual OPEB cost, annual
OPEB cost contributed, percentage of annual OPEB cost contributed to the OPEB Plan, and the net OPEB
obligation (asset) were as follows:
Schedule of Employer Contributions
Percentage of
Annual OPEB
Annual OPEB
Annual OPEB
Cost
Cost Contributed
Cost Contributed
Applicable to
Fiscal Year
Ending
June 30, 2014
June 30, 2013
June 30, 2012
$
$
1,333,144
846,731
844,307
1,055,000
1,207,000
659,000
79.14%
142.55%
78.05%
Net OPEB
Obligation (Asset)
$
$
3,868,756
3,590,612
3,950,881
Schedule of Funding Progress
The schedule of funding progress immediately following the notes presents multiyear trend information about
whether the actuarial values of OPEB Plan assets are increasing or decreasing over time relative to the actuarial
accrued liabilities for benefits. Actuarial valuations involve estimates of the value of reported amounts and
assumptions about the probability of events far into the future, and actuarially determined amounts are subject to
continual revision as results are compared to past expectations and new estimates are made about the future.
Actuarial calculations reflect a long-term perspective. Calculations for fiscal year 2014 are based on the substantive
plan in effect as of July 1, 2013.
66
TOWN OF MOUNT PLEASANT, SOUTH CAROLINA
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2014
IV. OTHER INFORMATION (CONTINUED)
F. Postemployment Benefits Other Than Pensions (Continued)
Schedule of Funding Progress (Continued)
The schedule of funding progress for the OPEB Plan as of the most recent valuation date is as follows:
Schedule of Funding Progress
Actuarial
Value of
Assets
(a)
Actuarial
Valuation Date
July 1, 2013
$
967,221
Actuarial
Accrued
Liability (AAL)
(b)
18,841,733
Unfunded
(UAAL)
(b-a)
17,874,512
Funded
Ratio
(a/b)
5.13%
Covered
Payroll
(c)
$ 21,270,217
UAAL as a
Percentage Of
Covered
Payroll
((b-a)/c)
84.04%
G. Commitments
In March 2011, the Town entered into a contract with a construction company to widen a portion of US 17 and to
construct the 526 Interchange for approximately $55,810,000. Change orders increased this amount to
approximately $62,682,000, and the amount outstanding at June 30, 2014 is approximately $943,000.
In August 2013, the Town entered into an agreement with Charleston County School District (“District”) regarding
Hamlin Road/Hungryneck Boulevard Phase IV Roadway Improvements. The District made a contribution of
$3,000,000 for the improvement, and any unused portion will be returned to the District upon completion of the
project.
In June 2014, the Town renewed its Fleet Management and Maintenance Contract through fiscal year 2015 for
approximately $1,052,000 with the option to extend the contract with the Contractor for two successive additional
one year terms if certain conditions are met.
The Town has numerous other ongoing projects as of June 30, 2014, for building improvements/renovations,
miscellaneous transportation projects, and other construction projects. Total remaining commitments on these
contracts were approximately $2,913,000 at June 30, 2014.
H. Pending Implementation of GASB Statement on Pensions
GASB Statement No. 68, “Accounting and Financial Reporting for Pensions” (“GASB #68”), was issued by the
GASB in June 2012, is required to be implemented by the Town for the fiscal year ended June 30, 2015. The
primary objective of GASB #68 is to improve accounting and financial reporting by state and local governments for
pensions. It also improves information provided by state and local government employers about financial support
for pensions that are provided by other entities. In addition, state and local governments who participate in a costsharing multiple employer plan will now be required to recognize a liability for its proportionate share of the net
pension liability of that plan. It is GASB’s intention that GASB #68 will provide citizens and other users of the
financial statements with a clearer picture of the size and nature of the Town’s financial obligations to current and
former employees for past services rendered.
In particular, the Town will be required to report a net pension liability (and related deferred outflows and inflows
of resources) for its participation in the SCRS and SCPORS on financial statements prepared on the economic
resources measurement focus and accrual basis of accounting (i.e., the Statement of Net Position) and present more
extensive note disclosures. It is anticipated that its implementation will not have a significant impact on the Town’s
governmental funds.
67
TOWN OF MOUNT PLEASANT, SOUTH CAROLINA
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2014
IV. OTHER INFORMATION (CONTINUED)
H. Pending Implementation of GASB Statement on Pensions (Continued)
The Town has been in communication with the PEBA on the effect of implementing GASB #68. Based on recent
information provided by the PEBA, it is anticipated that the Town’s proportionate share of the net pension liability
associated with the SCRS and SCPORS will decrease the Town’s beginning unrestricted net position for the year
ended June 30, 2015 by approximately $45,284,000.
I.
Subsequent Events
In July 2014, the Town entered into a capital lease with U.S. Bancorp Government Leasing and Finance, Inc. for
$1,165,000 for garbage trucks and other public service heavy equipment. The lease is for five years with an annual
interest rate of 1.378% and semi-annual lease payments of approximately $120,000 beginning in July 2014 and
continuing through January 2019.
In September 2014, the Town awarded a contract for approximately $5,897,000 for the construction of Sweetgrass
Basket Parkway.
68
Required Supplementary Information
69
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70
TOWN OF MOUNT PLEASANT, SOUTH CAROLINA
REQUIRED SUPPLEMENTARY INFORMATION - BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGETS AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2014
BUDGETED AMOUNTS
ORIGINAL
FINAL
ACTUAL
AMOUNTS
VARIANCE
REVENUES
25,971,091
20,676,786
1,496,185
537,712
3,398,412
233,203
27,000
274,483
25,661,447
21,344,166
1,496,185
537,712
3,398,412
218,203
27,000
210,000
26,388,905
23,165,348
1,706,095
525,865
13,015
3,928,754
209,497
26,703
773,448
52,614,872
52,893,125
56,737,630
3,844,505
17,640,152
17,773,653
16,716,896
1,056,757
686,131
554,752
686,131
599,054
645,516
537,461
40,615
61,593
11,358,766
7,349,993
8,856,145
846,376
1,913,231
5,171,608
11,358,766
7,410,238
8,856,145
846,376
1,913,231
5,211,813
11,166,488
7,075,564
7,908,186
741,453
1,742,115
4,768,506
192,278
334,674
947,959
104,923
171,116
443,307
7,287,181
1,376,374
7,321,794
1,341,761
6,757,932
917,590
563,862
424,171
63,040,709
63,318,962
58,977,707
4,341,255
(10,425,837)
(10,425,837)
(2,240,077)
8,185,760
9,005,883
(150,000)
100,000
9,005,883
(3,165,914)
100,000
7,923,718
(3,165,914)
54,394
(1,082,165)
(45,606)
8,955,883
5,939,969
4,812,198
(1,127,771)
NET CHANGE IN FUND BALANCES
(1,469,954)
(4,485,868)
2,572,121
7,057,989
FUND BALANCES - Beginning of Year
23,345,939
23,345,939
23,345,939
21,875,985
18,860,071
25,918,060
Property, Sales and Other Taxes
Licenses and Permits
Intergovernmental
Fines and Forfeitures
Special Assessments
Charges for Services
Rents and Royalties
Investment Earnings
Other Revenues
$
TOTAL REVENUES
$
727,458
1,821,182
209,910
(11,847)
13,015
530,342
(8,706)
(297)
563,448
EXPENDITURES
Current:
General Government
Justice:
Municipal Court Department
Legal Department
Public Safety:
Police Department
Fire Department
Public Service
Highways and Streets
Planning and Development
Culture and Recreation
Debt Service:
Principal
Interest
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfers In
Transfers Out
Sale of Capital Assets
TOTAL OTHER FINANCING SOURCES (USES)
FUND BALANCES - End of Year
$
$
Note: The notes to the budgetary comparison schedule are an integral part of this schedule.
Note: The Town's original and final budget reflected the use of appropriated fund balance of $1,469,954 and $4,485,868, respectively.
Actual performance was considerably better than budget and no fund balance was used.
71
7,057,989
TOWN OF MOUNT PLEASANT, SOUTH CAROLINA
NOTES TO THE BUDGETARY COMPARISON SCHEDULES
FOR THE YEAR ENDED JUNE 30, 2014
A. BASIS OF ACCOUNTING
The budgetary comparison schedules have been presented on the modified accrual basis of accounting, which is consistent with
accounting principles generally accepted in the United States of America.
B. BUDGETARY INFORMATION
The Town follows the following procedures in establishing the budgetary data reflected in the budgetary comparison schedules:
1.
Prior to May 1, the Town Administrator submits to the Town Council a proposed operating budget previously reviewed by
the appropriate standing committees of Council for the fiscal year commencing July 1. The operating budget includes
proposed expenditures and the means of financing them.
2.
Public hearings, Budget Committee meetings, and Council meetings are conducted by the Budget Committee, which includes
all members of Town Council, at the Municipal Complex to inform and obtain taxpayer comments.
3.
The budget is legally enacted through passage of an ordinance by July 1. The budget is amended at midyear. Any
supplemental budgetary appropriations made at this time are subject to the same procedures as the original budget ordinance.
4.
The Town Administrator is authorized to administer the budget and may only transfer appropriated funds between accounts
within each department without Town Council's prior approval provided the transfer does not alter the total appropriations for
a department. Town Council must approve any revisions that alter the total appropriations of a department. Department
managers are responsible for managing their respective budgets. Department managers are not allowed to make transfers of
appropriated funds. The legal level of budgetary authority is at the departmental level.
5.
Legally adopted budgets are employed as a management control device during the year for the General Fund, TIF Bond
Capital Projects Fund, and six (6) Special Revenue Funds (i.e. Accommodations Tax Fund, Hospitality Tax Fund, Special
Permit Fund, Storm Water Utility Fund, Victims Advocate Fund, and Impact Assessment Fund). Expenditures may not
legally exceed appropriations on the fund level. The Federal Grants Fund, State and Local Grants Fund, Donor Programs
Fund, Special Projects Fund, Infrastructure Management Funds, and Capital Equipment Fund are not formally budgeted but
effective budgetary control is achieved through the various grant budgets, bond indentures, and construction project
authorizations.
6.
The budgets for the budgeted funds are legally adopted on a basis consistent with GAAP.
7.
The budgets at the end of the year for these funds represent the budgets adopted and amended by the Town Council plus
encumbrances and funds designated for continuing projects carried over from the preceding year.
8.
Encumbrances do not lapse but are brought forward to the new fiscal year and added to the budget adopted by Town Council
for that year. It is Town policy to close out all encumbrances possible before year-end. The Town had no encumbrances at
June 30, 2014.
9.
All unencumbered appropriations, except those designated as continuing projects by the Town Administrator, lapse at yearend.
10. Town Council made one supplementary budget adjustment at mid-year to adjust the revenue and expense budgets to reflect
new estimates for current year activity/results.
72
TOWN OF MOUNT PLEASANT, SOUTH CAROLINA
REQUIRED SUPPLEMENTARY INFORMATION
OTHER POST EMPLOYMENT BENEFIT PLAN – DEFINED BENEFIT HEALTHCARE PLAN
SCHEDULES OF EMPLOYER CONTRIBUTIONS AND FUNDING PROGRESS
FOR THE YEAR ENDED JUNE 30, 2014
Fiscal year 2009 was the first year of implementation of GASB Statement No. 45 and the Town has elected to implement
prospectively. Therefore, information prior to that date is not available.
SCHEDULE OF EMPLOYER CONTRIBUTIONS
Applicable to Fiscal
Year Ending
June 30, 2009
June 30, 2010
June 30, 2011
June 30, 2012
June 30, 2013
June 30, 2014
Annual Required
Contribution
$
Actual
Contribution
1,725,000
1,725,000
1,581,623
795,034
795,034
1,314,621
$
$
$
Percent
Funded
475,000
455,000
464,000
659,000
1,207,000
1,055,000
27.54%
26.38%
29.34%
82.89%
151.82%
80.25%
SCHEDULE OF FUNDING PROGRESS
Actuarial
Valuation Date
July 1, 2008
July 1, 2010
July 1, 2011
July 1, 2013
Actuarial Value
of Assets
(a)
$
$
100,000
209,628
324,072
967,221
Actuarial
Accrued
(b)
12,034,000
13,105,937
9,805,096
18,841,733
Unfunded AAL
(UAAL)
(b-a)
$
$
11,934,000
12,896,309
9,481,024
17,874,512
73
Funded Ratio
(a/b)
0.83%
1.60%
3.31%
5.13%
Covered Payroll
(c)
$
$
23,275,000
20,886,050
20,646,810
21,270,217
UAAL as a
Percentage Of
Covered Payroll
((b-a)/c)
51.27%
61.75%
45.92%
84.04%
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74
Supplementary Information
75
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76
Non-Major Governmental Funds
Special Revenue, Debt Service and Capital Projects Funds
Special Revenue Funds
Accommodations Tax Fund - This fund is used to account for state and local funds relating to
accommodations tax revenue and for disbursements for tourism related activities as defined by SC Code
of Laws Section 6-4-5.
Donor Programs Fund - This fund is used to account for donated funds to the Town of Mount Pleasant
for specific purposes. This fund is also used to receipt corporate and foundation related awards to the
Town for specified purposes. This fund is not a budgeted fund, rather revenues are recorded when
received and budgets established at the time of donation. After the close of the fiscal year funds remaining
are re-budgeted for the specified purposes. The Town registers annually with the Secretary of State in
compliance with the SC Solicitation of Charitable Funds Act.
Hospitality Tax Fund - This fund is used to account for receipts and disbursements for the Town’s 2%
hospitality tax applied to food and beverage sales in accordance with SC Code of Laws Section(s) 6-7700 to 6-7-710.
Special Permit Fund - This fund is used to account for revenue from temporary permits issued by the
State for the sale of alcoholic beverages and the expenditure of these fees as dictated by SC Code of Laws
Section 12-33-40.
Storm Water Fund - This fund is used to account for the annual collection of storm water fees and the
disbursement of funds to maintain, repair and improve the Town’s drainage system in accordance with SC
Code of Laws Sections(s) 48-14-10 to 48-15-150 and Town of Mount Pleasant Code of Ordinances, Title
52.02.
Victims Advocate Fund -This fund is used to account for funds received from Municipal Court fines to
be used to assist victims of crime as mandated by State Law in Titles 14, 15 and 16. This program is
monitored by the State Office of Victims Assistance (“SOVA”). The Police Department is responsible for
the submission of the annual budget to the SOVA office and for preparing annual reports related to the
expenditure of these funds.
Impact Assessment Fund - This fund is used to account for the funds assessed on residential and nonresidential development and used for capital acquisitions or improvements by the general government,
police, fire, public services, planning and recreation departments in accordance with SC Code of Laws
Title 6, Section 6-1-910 and the Town of Mount Pleasant Ordinance Chapter 154: Municipal Impact Fees.
Debt Service Funds
Debt service funds are used to account for the accumulation of resources and payments of long-term bond
principal and interest from government resources. 2014 General Obligation Bond – As per the bond
covenants for the 2014 General Obligation Bond issued by the Town of Mount Pleasant, the Town is
required to maintain “sinking” funds to service the debt related to the bond issuance.
77
Capital Projects Funds
Special Projects Fund - These are funds from Operational Transfers combined to complete a project or
from other sources not otherwise identified such as residual bond proceeds after arbitrage is completed
related to General Obligation Bond (“GOB”) or Tax Increment Financing Bond (“TIF”) Funds. After the
close of the fiscal year funds remaining for projects are re-budgeted based on the specified purposes. At
the close of a project, any remaining funds will be made available in the Special Projects Fund for future
projects. Town officials may budget available funds to new projects during the annual budget process or
during the year on a project by project basis.
Infrastructure Management Fund - These are funds budgeted for project(s) $100,000 or greater, which
will improve or maintain specified condition assessments related to the Town’s drainage and
transportation infrastructure as established in Council Resolution R.12111. Projects are submitted
annually for the Capital Improvement Plan (“CIP”) of the Town by the respective department(s). After
the close of the fiscal year funds remaining for projects are re-budgeted for the specified purposes. After
the close of a project, any remaining funds will be made available in the Infrastructure Management Fund
for future projects.
Capital Equipment Fund These are budgeted funds used to account for lease proceeds for the
acquisition of new capital equipment. Funds remaining for prior year lease proceeds are re-budgeted for
the specified purpose(s) after the close of the fiscal year.
78
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79
TOWN OF MOUNT PLEASANT, SOUTH CAROLINA
COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2014
SPECIAL REVENUE FUNDS
ACCOMMODATIONS
TAX
DONOR
PROGRAMS
HOSPITALITY
TAX
SPECIAL
PERMIT
ASSETS
Cash And Cash Equivalents
Cash And Cash Equivalents - Restricted
Intergovernmental Receivable
Accounts Receivable
Due From Other Funds
TOTAL ASSETS
$
1,909,739
643,017
5,288
491,777
5,436
6,419,025
905,244
-
679,299
46,130
-
$
2,558,044
497,213
7,324,269
725,429
$
164,041
-
421
-
16,577
-
2,192
-
164,041
421
16,577
2,192
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
LIABILITIES
Accounts Payable
Due To Other Funds
TOTAL LIABILITIES
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue - Other
TOTAL DEFERRED INFLOWS OF RESOURCES
-
-
-
-
-
-
-
-
FUND BALANCES
Restricted:
Debt Service
Capital Projects
Tourism Related Costs
By Donors
Special Permits
Storm Water
Victims' Services
Impact Assessment Infrastructure/Capital Assets
Committed:
Capital Projects/Debt Service
2,394,003
-
TOTAL FUND BALANCES
TOTAL LIABILITIES, DEFERRED INFLOWS
OF RESOURCES, AND FUND BALANCES
$
80
496,792
-
7,307,692
-
723,237
-
2,394,003
496,792
7,307,692
723,237
2,558,044
497,213
7,324,269
725,429
DEBT
SERVICE
FUNDS
SPECIAL REVENUE FUNDS
STORM
WATER
UTILITY
VICTIMS
ADVOCATE
IMPACT
ASSESSMENT
2014
GOB
CAPITAL PROJECTS FUNDS
SPECIAL
PROJECTS
TOTAL
INFRANONMAJOR
STRUCTURE
CAPITAL
GOVERNMENTAL
MANAGEMENT EQUIPMENT
FUNDS
1,340,277
200,078
3,003
86,719
7,230
-
4,479,581
1,502
19,433
2,535,379
-
1,635,785
-
5,852,380
91,452
-
2,415,080
-
$
5,852,380
22,084,113
1,594,391
208,810
33,160
1,543,358
93,949
4,500,516
2,535,379
1,635,785
5,943,832
2,415,080
$
29,772,854
63,819
-
104
2,951
11,729
-
-
29,993
-
206,699
347,181
1,777,846
$
636,057
1,987,496
63,819
3,055
11,729
-
29,993
206,699
2,125,027
199,302
-
-
-
-
-
-
199,302
199,302
-
-
-
-
-
-
199,302
1,280,237
-
90,894
-
4,488,787
-
2,535,379
-
1,605,792
-
-
-
91,452
5,645,681
2,535,379
1,987,297
9,701,695
496,792
723,237
1,280,237
90,894
4,488,787
290,053
-
5,645,681
-
1,280,237
90,894
4,488,787
2,535,379
1,605,792
5,737,133
290,053
1,543,358
93,949
4,500,516
2,535,379
1,635,785
5,943,832
2,415,080
81
2,623,553
26,949,999
$
29,772,854
TOWN OF MOUNT PLEASANT, SOUTH CAROLINA
COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2014
SPECIAL REVENUE FUNDS
ACCOMMODATIONS
TAX
DONOR
PROGRAMS
HOSPITALITY
TAX
SPECIAL
PERMIT
REVENUES
Property, Sales and Other Taxes
Intergovernmental
Fines and Forfeits
Special Assessments
Charges for Services
Investment Earnings
Other Revenues
$
TOTAL REVENUES
553,689
1,208,616
2,662
-
87,801
4,979,809
15,963
-
254,580
301
60,307
1,764,967
87,801
4,995,772
315,188
375,701
62,802
76,087
218,024
-
3,047
3,953
3,468
17,269
421,969
199,942
38,029
-
115,000
-
732,614
449,706
237,971
115,000
4,757,801
200,188
EXPENDITURES
Current:
General Government
Public Safety
Public Service
Highways and Streets
Planning and Development
Culture and Recreation
Intergovernmental
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
1,032,353
(361,905)
OTHER FINANCING SOURCES (USES)
Transfers In
Transfers Out
Capital Lease Proceeds
Premium on Bonds Issued
TOTAL OTHER FINANCING SOURCES (USES)
NET CHANGE IN FUND BALANCES
(544,042)
-
-
(4,080,706)
-
(141,837)
-
(544,042)
-
(4,080,706)
(141,837)
488,311
FUND BALANCE - Beginning of Year
FUND BALANCE - End of Year
$
82
(361,905)
677,095
58,351
1,905,692
858,697
6,630,597
664,886
2,394,003
496,792
7,307,692
723,237
DEBT
SERVICE
FUNDS
SPECIAL REVENUE FUNDS
STORM
WATER
UTILITY
VICTIMS
ADVOCATE
IMPACT
ASSESSMENT
2014
GOB
CAPITAL PROJECTS FUNDS
SPECIAL
PROJECTS
INFRASTRUCTURE
CAPITAL
MANAGEMENT EQUIPMENT
TOTAL
NONMAJOR
GOVERNMENTAL
FUNDS
1,196,318
-
80,490
1,651
-
2,471,235
5,523
-
847
-
267
-
6,811
-
389
-
1,196,318
82,141
2,476,758
847
267
6,811
389
10,927,259
18,461
294,611
1,060
-
122,496
-
34,400
142,331
18,030
-
114,014
-
77,352
696,239
1,001,171
58,827
-
386,768
457,036
-
1,990
2,348,244
815,864
50,902
32,278
-
744,508
2,693,470
1,582,028
1,153,275
1,132,688
479,427
421,969
314,132
122,496
194,761
114,014
1,833,589
843,804
3,249,278
8,207,365
882,186
(40,355)
2,281,997
(113,167)
(1,833,322)
(836,993)
(3,248,889)
2,719,894
(576,831)
-
-
(1,131,453)
-
2,648,546
-
3,157,751
-
(16,690)
3,114,000
-
3,157,751
(6,491,559)
3,114,000
2,648,546
(576,831)
-
(1,131,453)
2,648,546
-
3,157,751
3,097,310
2,428,738
305,355
(40,355)
1,150,544
2,535,379
974,882
131,249
3,338,243
1,280,237
90,894
4,488,787
2,535,379
83
$
5,533,498
1,463,196
80,490
2,471,235
1,196,318
34,414
148,108
(1,833,322)
2,320,758
(151,579)
5,148,632
3,439,114
3,416,375
441,632
21,801,367
1,605,792
5,737,133
290,053
$
26,949,999
TOWN OF MOUNT PLEASANT, SOUTH CAROLINA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
ACCOMMODATIONS TAX SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 30, 2014
BUDGETED AMOUNTS
ORIGINAL
FINAL
ACTUAL
VARIANCE
REVENUES
Property, Sales and Other Taxes
Intergovernmental
Investment Earnings
$
TOTAL REVENUES
512,587
964,696
2,500
$
512,587
964,696
2,500
553,689
1,208,616
2,662
$
41,102
243,920
162
1,479,783
1,479,783
1,764,967
285,184
413,693
80,537
586,001
234,282
425,478
80,537
586,001
234,282
375,701
62,802
76,087
218,024
49,777
17,735
509,914
16,258
1,314,513
1,326,298
732,614
593,684
165,270
153,485
1,032,353
878,868
(655,827)
(694,042)
(544,042)
150,000
(655,827)
(694,042)
(544,042)
150,000
(490,557)
(540,557)
488,311
EXPENDITURES
Current:
General Government
Public Service
Planning and Development
Culture and Recreation
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfers Out
TOTAL OTHER FINANCING SOURCES (USES)
NET CHANGE IN FUND BALANCES
1,905,692
FUND BALANCE - Beginning of Year
FUND BALANCE - End of Year
$
1,415,135
$
1,905,692
1,905,692
1,365,135
2,394,003
1,028,868
$
Note: The Town's original and final budget reflected the use of appropriated fund balance of $490,557 and $540,557, respectively .
84
1,028,868
TOWN OF MOUNT PLEASANT, SOUTH CAROLINA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
HOSPITALITY TAX SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 30, 2014
BUDGETED AMOUNTS
ORIGINAL
FINAL
ACTUAL
VARIANCE
REVENUES
Property, Sales and Other Taxes
Investment Earnings
$
TOTAL REVENUES
4,477,199
16,226
$
4,477,199
16,226
4,979,809
15,963
$
502,610
(263)
4,493,425
4,493,425
4,995,772
502,347
253,762
100,000
519,691
253,762
100,000
732,708
199,942
38,029
53,820
100,000
694,679
873,453
1,086,470
237,971
848,499
3,619,972
3,406,955
4,757,801
1,350,846
(4,080,706)
(4,080,706)
(4,080,706)
-
(4,080,706)
(4,080,706)
(4,080,706)
-
(460,734)
(673,751)
EXPENDITURES
Current:
General Government
Public Safety
Culture and Recreation
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfers Out
TOTAL OTHER FINANCING SOURCES (USES)
NET CHANGE IN FUND BALANCES
6,630,597
FUND BALANCE - Beginning of Year
FUND BALANCE - End of Year
$
6,169,863
$
677,095
6,630,597
6,630,597
5,956,846
7,307,692
1,350,846
$
Note: The Town's original and final budget reflected the use of appropriated fund balance of $460,734 and $673,751, respectively.
85
1,350,846
TOWN OF MOUNT PLEASANT, SOUTH CAROLINA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
SPECIAL PERMIT SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 30, 2014
BUDGETED AMOUNTS
ORIGINAL
FINAL
ACTUAL
VARIANCE
REVENUES
Intergovernmental
Investment Earnings
Other Revenues
$
TOTAL REVENUES
203,961
200
43,900
$
203,961
200
43,900
254,580
301
60,307
$
50,619
101
16,407
248,061
248,061
315,188
67,127
75,000
50,000
134,105
75,000
50,000
134,105
115,000
75,000
50,000
19,105
259,105
259,105
115,000
144,105
(11,044)
(11,044)
200,188
211,232
EXPENDITURES
Current:
General Government
Public Service
Culture and Recreation
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfers Out
-
(141,837)
(141,837)
-
-
(141,837)
(141,837)
-
NET CHANGE IN FUND BALANCES
(11,044)
(152,881)
58,351
FUND BALANCE - Beginning of Year
664,886
664,886
664,886
512,005
723,237
TOTAL OTHER FINANCING SOURCES (USES)
FUND BALANCE - End of Year
$
653,842
$
Note: The Town's original and final budget reflected the use of appropriated fund balance of $11,044 and $152,881, respectively.
86
211,232
$
211,232
TOWN OF MOUNT PLEASANT, SOUTH CAROLINA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
STORM WATER UTILITY SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 30, 2014
BUDGETED AMOUNTS
ORIGINAL
FINAL
ACTUAL
VARIANCE
REVENUES
Charges for Services
$
1,115,000
1,196,318
1,115,000
1,115,000
1,196,318
81,318
38,000
593,483
1,350
38,000
593,483
1,350
18,461
294,611
1,060
19,539
298,872
290
632,833
632,833
314,132
318,701
482,167
482,167
882,186
400,019
(576,831)
(576,831)
(576,831)
-
(576,831)
(576,831)
(576,831)
-
NET CHANGE IN FUND BALANCES
(94,664)
(94,664)
305,355
400,019
FUND BALANCE - Beginning of Year
974,882
974,882
974,882
-
880,218
1,280,237
TOTAL REVENUES
1,115,000
$
$
81,318
EXPENDITURES
Current:
General Government
Public Service
Planning and Development
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfers Out
TOTAL OTHER FINANCING SOURCES (USES)
FUND BALANCE - End of Year
$
880,218
$
Note: The Town's original and final budget reflected the use of appropriated fund balance of $94,664.
87
$
400,019
TOWN OF MOUNT PLEASANT, SOUTH CAROLINA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
VICTIMS' ADVOCATE SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 30, 2014
BUDGETED AMOUNTS
ORIGINAL
FINAL
ACTUAL
VARIANCE
REVENUES
Fines and Forfeits
Investment Earnings
$
81,482
140
80,490
1,651
81,622
81,622
82,141
519
132,569
132,569
122,496
10,073
132,569
132,569
122,496
10,073
NET CHANGE IN FUND BALANCES
(50,947)
(50,947)
(40,355)
10,592
FUND BALANCE - Beginning of Year
131,249
131,249
131,249
-
80,302
90,894
TOTAL REVENUES
81,482
140
$
$
(992)
1,511
EXPENDITURES
Current:
Public Safety
TOTAL EXPENDITURES
FUND BALANCE - End of Year
$
80,302
$
Note: The Town's original and final budget reflected the use of appropriated fund balance of $50,947.
88
$
10,592
TOWN OF MOUNT PLEASANT, SOUTH CAROLINA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
IMPACT ASSESSMENT SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 30, 2014
BUDGETED AMOUNTS
ORIGINAL
FINAL
ACTUAL
VARIANCE
REVENUES
Special Assessments
Investment Earnings
$
TOTAL REVENUES
1,304,097
-
$
1,304,097
-
2,471,235
5,523
$
1,167,138
5,523
1,304,097
1,304,097
2,476,758
1,172,661
34,400
691,433
100,096
100,095
53,796
34,400
1,143,717
100,096
100,095
53,796
34,400
142,331
18,030
-
1,001,386
82,066
100,095
53,796
979,820
1,432,104
194,761
1,237,343
2,281,997
2,410,004
EXPENDITURES
Current:
General Government
Public Safety
Public Service
Highways and Streets
Culture and Recreation
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES
324,277
(128,007)
OTHER FINANCING SOURCES (USES)
Transfers Out
TOTAL OTHER FINANCING SOURCES (USES)
NET CHANGE IN FUND BALANCES
FUND BALANCE - Beginning of Year
FUND BALANCE - End of Year
(1,131,453)
(1,131,453)
(1,131,453)
-
(1,131,453)
(1,131,453)
(1,131,453)
-
(807,176)
(1,259,460)
1,150,544
3,338,243
3,338,243
2,078,783
4,488,787
3,338,243
$
2,531,067
$
2,410,004
$
Note: The Town's original and final budget reflected the use of appropriated fund balance of $807,176 and $1,259,460, respectively.
89
2,410,004
TOWN OF MOUNT PLEASANT, SOUTH CAROLINA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
TIF BOND CAPITAL PROJECTS FUND
FOR THE YEAR ENDED JUNE 30, 2014
BUDGETED AMOUNTS
ORIGINAL
FINAL
ACTUAL
VARIANCE
REVENUES
Property, Sales and Other Taxes
Investment Earnings
$
9,343,351
40,000
9,803,658
19,504
9,383,351
9,383,351
9,823,162
5,000
11,057,271
5,000
11,057,271
740,345
171,384
766,429
2,476,500
254,542
2,476,500
254,542
2,476,500
254,542
13,793,313
13,793,313
4,409,200
9,384,113
(4,409,962)
(4,409,962)
5,413,962
9,823,924
(2,561,066)
(2,561,066)
(1,612,211)
948,855
(2,561,066)
(2,561,066)
(1,612,211)
948,855
NET CHANGE IN FUND BALANCES
(6,971,028)
(6,971,028)
3,801,751
FUND BALANCE - Beginning of Year
14,020,962
14,020,962
14,020,962
7,049,934
17,822,713
TOTAL REVENUES
9,343,351
40,000
$
$
460,307
(20,496)
439,811
EXPENDITURES
Current:
General Government
Highways and Streets
Planning and Development
Debt Service:
Principal
Interest
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES
(735,345)
(171,384)
10,290,842
-
OTHER FINANCING SOURCES (USES)
Transfers Out
TOTAL OTHER FINANCING SOURCES (USES)
FUND BALANCE - End of Year
$
7,049,934
$
Note: The Town's original and final budget reflected the use of appropriated fund balance of $6,971,028.
90
10,772,779
$
10,772,779
TOWN OF MOUNT PLEASANT, SOUTH CAROLINA
COMBINING SCHEDULE OF CHANGES IN ASSETS AND LIABILITIES - FIDUCIARY FUND - AGENCY FUNDS
FOR THE YEAR ENDED JUNE 30, 2014
BALANCE AT
JUNE 30, 2013
ADDITIONS
BALANCE AT
JUNE 30, 2014
DEDUCTIONS
FIREMAN'S FUND:
ASSETS
Cash and Cash Equivalents
$
87,721
437,142
474,814
$
50,049
TOTAL ASSETS
$
87,721
437,142
474,814
$
50,049
Accounts Payable
Amounts Held for Custody for Others
$
87,721
478,587
437,142
476,169
477,232
$
2,418
47,631
TOTAL LIABILITIES
$
87,721
915,729
953,401
$
50,049
LIABILITIES
CAROLINA PARK FUND:
ASSETS
Cash and Cash Equivalents
$
326,750
1,106
-
$
327,856
TOTAL ASSETS
$
326,750
1,106
-
$
327,856
Accounts Payable
Amounts Held for Custody for Others
$
326,750
246,725
1,106
246,725
$
246,725
81,131
TOTAL LIABILITIES
$
326,750
247,831
246,725
$
327,856
Cash and Cash Equivalents
$
6,319
-
202
$
6,117
TOTAL ASSETS
$
6,319
-
202
$
6,117
Accounts Payable
Amounts Held for Custody for Others
$
6,319
65
65
202
$
-
6,117
TOTAL LIABILITIES
$
65
267
$
6,117
LIABILITIES
FEDERAL SEIZED ASSETS AND DRUG FUND:
ASSETS
LIABILITIES
6,319
STATE SEIZED ASSETS AND DRUG FUND:
ASSETS
Cash and Cash Equivalents
$
94,393
37,588
55,579
$
76,402
TOTAL ASSETS
$
94,393
37,588
55,579
$
76,402
Accounts Payable
Amounts Held for Custody for Others
$
215
94,178
61,011
37,588
57,512
59,078
$
3,714
72,688
TOTAL LIABILITIES
$
94,393
98,599
116,590
$
76,402
Cash and Cash Equivalents
$
515,183
475,836
530,595
$
460,424
TOTAL ASSETS
$
515,183
475,836
530,595
$
460,424
Accounts Payable
Amounts Held for Custody for Others
$
215
514,968
786,388
475,836
533,746
783,237
$
252,857
207,567
TOTAL LIABILITIES
$
515,183
1,262,224
1,316,983
$
460,424
LIABILITIES
TOTAL COMBINED FUNDS:
ASSETS
LIABILITIES
91
TOWN OF MOUNT PLEASANT, SOUTH CAROLINA
SCHEDULE OF FINES, ASSESSMENTS, AND SURCHARGES
VICTIMS' ADVOCATE SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 30, 2014
TOTAL
REMITTANCE
TO STATE
RETAINED
BY TOWN
GENERAL
FUND
VICTIMS'
ADVOCATE
TOTAL TOWN
REVENUE
Municipal Court
Fines
Traffic/Criminal
DUI
$
525,865
24,072
24,072
525,865
-
525,865
-
-
549,937
24,072
525,865
525,865
-
525,865
Assessments
515,669
495,234
20,435
-
20,435
20,435
Surcharge
377,221
317,166
60,055
-
60,055
60,055
1,442,827
836,472
606,355
525,865
80,490
Total Fines
$
92
$
$
525,865
-
606,355
STATISTICAL SECTION
This part of the Town of Mount Pleasant’s (“Town”) comprehensive annual financial report presents detailed
information as a context for understanding what the information in the financial statements, notes, and required
supplementary information says about the Town’s overall financial health.
Contents
Page
Financial Trends Information
These schedules contain trend information to help the reader understand how the Town’s
financial performance and well-being have changed over time.
95
Revenue Capacity Information
These schedules contain information to help the reader assess the Town’s most
significant local revenue source, the property tax.
100
Debt Capacity Information
These schedules present information to help the reader assess the affordability of the
Town’s current levels of outstanding debt and the Town’s ability to issue additional debt
in the future.
104
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader
understand the environment within which the Town’s financial activities take place.
109
Operating Information
These schedules contain service and infrastructure data to help the reader understand
how the information in the Town’s financial report relates to the services the Town
provides and the activities it performs.
111
Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual
financial reports for the relevant year.
93
This page is intentionally left blank
94
95
$ 432,653,188
34,668,383
26,341,939
$ 493,663,510
Total Governmental Activities Net Position
2014
Governmental Activities
Net Investment in Capital Assets
Restricted
Unrestricted
UNAUDITED
LAST TEN FISCAL YEARS
(accrual basis of accounting)
NET POSITION BY COMPONENT
TOWN OF MOUNT PLEASANT, SOUTH CAROLINA
483,325,133
432,528,949
29,087,245
21,708,939
2013
482,991,536
438,456,589
28,006,867
16,528,080
2012
498,223,917
451,519,999
34,448,412
12,255,506
2011
482,778,040
2009
479,391,954
441,947,333
27,739,839
9,704,782
Fiscal Year
443,765,261
27,782,465
11,230,314
2010
466,555,347
426,452,091
31,386,649
8,716,607
2008
432,624,076
395,230,198
27,544,757
9,849,121
2007
411,151,695
372,027,447
28,982,541
10,141,707
2006
$ 391,993,614
$ 356,728,778
28,822,622
6,442,214
2005
Table 1
96
333,597
62,990,057
26,559,195
8,012,235
1,745,386
4,607,699
1,126,290
18,260,552
218,210
1,463,729
346,991
102,671
441,543
105,556
(62,656,460)
24,621,715
50,103
1,202,570
1,267,420
832,356
2,703,095
2,720,914
999,967
14,845,290
87,278,175
20,571,792
1,137,647
17,865,105
9,094,277
20,890,066
9,080,432
7,198,147
1,440,709
2013
1,635,596
60,749,003
27,878,349
5,998,768
1,551,891
4,301,720
1,071,129
17,389,289
231,510
1,240,537
41,539
126,178
825,183
92,910
(59,113,407)
43,486,959
1,421,802
971,239
1,046,592
2,114,988
2,580,336
2,329,433
33,022,569
102,600,366
17,421,677
1,270,610
17,414,334
8,406,240
43,744,659
6,707,657
5,896,731
1,738,458
2012
15,445,877
57,686,499
25,495,587
5,921,414
1,430,132
3,862,446
1,019,058
16,591,845
190,440
1,345,511
33,276
204,052
994,660
598,078
(42,240,622)
41,018,399
207,154
1,186,706
1,210,829
455,423
1,305,520
2,500,012
430,661
33,722,094
83,259,021
20,649,192
1,271,620
16,382,633
7,808,857
22,767,549
6,989,323
5,407,543
1,982,304
2011
Fiscal Year
3,521,593
43,207,783
25,820,293
8,918,755
1,181,372
3,665,002
1,012,738
167,080
1,545,082
32,316
254,977
479,873
130,295
(39,686,190)
39,879,580
153,741
677,056
647,729
1,109,839
17,279,328
2,418,689
411,152
17,182,046
79,565,770
16,189,104
1,129,690
16,807,589
8,075,906
17,712,422
12,204,970
5,670,673
1,775,416
2010
12,836,607
39,273,743
23,809,134
6,207,761
1,328,270
3,638,671
1,229,862
135,900
1,842,370
79,836
647,815
220,534
133,590
(26,437,136)
39,105,255
199,570
729,556
552,864
1,276,887
16,182,792
2,142,891
203,584
17,817,111
65,542,391
5,576,261
1,100,973
17,073,966
7,697,292
16,310,158
7,807,177
7,882,968
2,093,596
2009
33,931,271
38,430,333
19,966,585
6,668,125
1,591,382
3,685,370
912,197
135,650
1,931,058
78,217
2,786,929
462,403
212,417
(4,499,062)
50,817,216
172,573
770,877
945,577
866,355
16,907,408
1,990,423
254,946
28,909,057
55,316,278
5,483,720
1,266,886
16,902,495
7,724,763
9,324,388
5,816,592
6,400,967
2,396,467
2008
21,472,381
35,594,388
17,228,564
7,209,631
1,305,020
3,511,877
769,422
118,400
1,747,260
68,689
3,403,818
189,918
41,789
(14,122,007)
37,579,073
249,319
688,699
1,000,130
891,465
18,035,198
1,827,586
206,624
14,680,052
51,701,080
5,325,818
949,633
16,517,318
7,369,891
9,055,504
4,542,856
5,755,593
2,184,467
2007
Notes: Certain amounts which were presented in prior year comprehensive annual financial reports for "Charges for Services" have been reclassified by function for all periods presented.
Beginning in fiscal year 2010, Nondepartmental expenses were added to General Government. In addition, some expenses previously charged to Planning and Development were charged to Highways and Streets.
Beginning in fiscal year 2011, Business Licenses were shown separately. They had been charged to Charges for Services for Planning and Development in prior years.
10,338,377
$
Change In Net Position
Total Primary Government
27,713,286
8,481,990
1,839,142
4,979,809
1,160,058
20,040,822
254,578
1,472,155
293,667
63,149
1,168,280
67,466,936
$
Total Primary Government General Revenues
General Revenues and Other Changes In Net Position
Governmental Activities
Taxes:
Property Taxes
Sales Taxes
Accommodation Taxes
Hospitality Taxes
Franchise Taxes
Business Licenses
Other Taxes
State Shared Revenue
Payments in Lieu of Taxes
Interest Earned
Miscellaneous Revenue
Gain on Sale of Capital Assets
17,526,927
(57,128,559)
58,177
1,361,767
1,355,500
1,133,411
3,547,645
2,842,243
793,704
6,434,480
74,655,486
20,024,819
1,188,269
19,950,935
9,248,984
6,920,853
9,326,570
6,819,185
1,175,871
Total Primary Government Net (Expense)
$
$
$
$
2014
Total Governmental Activities Program Revenues
Program Revenues
Governmental Activities:
Charges for Services
General Government
Justice Department
Public Safety
Public Services
Highways and Streets
Planning and Development
Culture and Recreation
Operating Grants and Contributions
Capital Grants and Contributions
Total Primary Governmental Expenses
Expenses
Governmental Activities:
General Government
Justice Department
Public Safety
Public Services
Highways and Streets
Planning and Development
Culture and Recreation
Nondepartmental
Interest on Long Term Debt
UNAUDITED
LAST TEN FISCAL YEARS
(accrual basis of accounting)
CHANGES IN NET POSITION
TOWN OF MOUNT PLEASANT, SOUTH CAROLINA
19,158,081
33,164,349
16,990,202
6,590,033
1,152,103
3,450,577
791,841
135,900
1,542,928
71,639
1,853,306
337,369
248,451
(14,006,268)
35,529,837
440,882
817,774
1,133,511
995,924
17,746,778
1,849,731
359,222
12,186,015
49,536,105
4,586,190
889,535
14,717,810
6,594,680
9,200,740
5,044,255
6,708,653
1,794,242
2006
$
$
$
$
$
$
23,202,390
27,302,813
15,467,010
4,949,453
1,058,314
3,123,033
561,137
134,600
1,289,175
508,240
142,237
69,614
(4,100,423)
41,029,317
319,594
797,702
1,071,363
862,121
19,144,380
1,618,183
1,723,264
15,492,710
45,129,740
4,231,764
766,253
13,358,223
5,671,035
7,094,725
4,038,979
8,609,882
1,358,879
2005
Table 2
97
38,166,981
3,090,893
41,257,874
66,230,714
5,645,681
$ 71,876,395
-
-
23,345,939
$ 25,918,060
-
2,000,000
1,721,244
19,621,513
2,000,000
251,670
23,661,938
-
3,182
4,452
$
-
2013
-
$
2014
-
-
44,722,644
44,722,644
-
-
-
21,948,229
66,656
21,881,573
2012
-
-
53,312,002
53,312,002
-
-
-
17,490,056
89,179
17,400,877
2011
43,578,869
-
14,466,094
28,932,803
179,972
15,437,463
-
-
2009
46,918,116
-
15,760,716
30,584,470
572,930
12,480,602
-
-
117,966
12,362,636
Fiscal Year
15,437,463
2010
62,443,169
-
13,587,784
48,855,385
-
10,204,323
-
-
103,775
10,100,548
2008
75,791,892
-
13,332,840
62,459,052
-
11,479,004
-
-
281,424
11,197,580
2007
56,739,655
-
16,331,053
40,408,602
-
11,605,757
-
-
635,566
10,970,191
2006
-
-
35,158
6,512,715
-
15,948,925
20,167,417
-
$ 36,116,342
$
$ 6,547,873
$
2005
Table 3
Note 1: The Town implemented GASB #54 “Fund Balance Reporting and Governmental Fund Type Definitions ” (“GASB #54”) in 2011. GASB #54 established new fund balance classifications that comprise a hierarchy based
primarily on the extent to which a government is bound to observe constraints imposed upon the use of the resources reported in the governmental funds. The Town has elected to apply GASB #54 prospectively - and thus has
provided fund balance information before ("Pre") and after ("Post") its implementation.
Note: Certain amounts which were presented in prior year comprehensive annual financial reports have been restated due to prior period adjustments.
Total All Other Governmental Funds
All Other Governmental Funds
Pre-GASB #54 1
Reserved
Unreserved, Reported In:
Special Revenue Funds
Capital Projects Funds
Post GASB #54 1
Restricted
Committed
Total General Fund
General Fund
Pre GASB #54 1
Reserved
Unreserved
Post GASB #54 1
Nonspendable
Committed
Emergency Reserves for Disaster Recovery
Charleston County 911 Dispatch
Assigned
Unassigned
UNAUDITED
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
FUND BALANCES OF GOVERNMENTAL FUNDS
TOWN OF MOUNT PLEASANT, SOUTH CAROLINA
98
$
Capital Expenditures
14.83%
12.30%
4,457,845
(2,067,060)
994,300
17,121,686
(17,121,686)
192,300
802,000
-
(3,061,360)
11.56%
5,089,195
(4,131,185)
2,461,410
16,472,444
(16,472,444)
2,368,500
92,910
-
(6,592,595)
107,089,559
9,986,135
1,806,398
42,805,035
16,340,803
1,286,104
18,697,249
8,224,030
691,386
1,650,719
5,248,447
353,253
100,496,964
38,683,688
19,540,458
34,291,764
597,640
1,921,802
4,312,350
197,900
126,176
825,186
2012
14.71%
15,819,213
11,785,726
23,945,613
20,115,321
(20,115,321)
3,321,150
624,463
20,000,000
-
(12,159,887)
95,692,594
9,752,127
1,994,244
22,083,255
18,744,498
1,266,664
18,571,072
9,000,152
1,769,914
626,676
5,978,912
5,905,080
83,532,707
35,774,648
18,449,869
21,694,846
638,485
1,364,759
4,221,524
189,864
204,052
994,660
2011
Fiscal Year
13.34%
6,072,507
(246,879)
1,047,224
12,740,368
(12,740,368)
145,324
901,900
-
(1,294,103)
83,055,290
8,432,199
1,837,315
17,142,443
15,102,920
1,125,898
16,367,282
7,746,544
1,599,258
569,979
5,942,567
7,188,885
81,761,187
35,646,069
18,073,897
21,298,736
677,055
5,369,646
195,868
499,916
2010
16.94%
15,789,498
(13,248,774)
1,563,846
14,833,476
(14,833,476)
183,594
1,380,252
-
(14,812,620)
79,024,621
8,562,906
2,150,997
-
6,697,837
1,155,996
16,103,852
7,060,455
5,896,626
5,083,387
6,227,986
20,084,579
64,212,001
33,909,293
16,769,982
5,250,789
752,476
4,934,193
713,347
1,881,921
2009
20.94%
25,605,698
(14,623,404)
1,800,255
11,486,029
(11,486,029)
238,027
1,562,228
-
(16,423,659)
80,461,419
9,043,727
2,443,988
-
5,425,119
1,255,874
15,732,707
7,167,183
5,001,594
7,276,002
5,698,407
21,416,818
64,037,760
30,737,072
16,226,647
6,535,311
2,818,451
809,245
5,720,798
1,190,236
2008
Note: Certain amounts which were presented in prior year comprehensive annual financial reports have been restated due to prior period adjustments.
Beginning in fiscal year 2010, Nondepartmental expenses were added to General Government. In addition, some expenses previously charged to Planning and Development were charged to Highways and Streets.
Beginning in fiscal year 2011, Special Assessments and Rents and Royalties were shown separately . In prior years they had been charged to Charges for Services.
Debt Service as a Percentage Of Noncapital Expenditures
33,190,642
$
Net Change in Fund Balance
7,442,775
30,816,940
Total Other Financing Sources (Uses)
2,373,702
88,357,192
8,854,851
1,462,808
19,884,178
9,234,432
1,172,132
4,703,621
77,615,501
19,575,841
1,134,583
17,858,663
9,092,682
2,696,202
853,269
6,915,698
28,417
85,295,832
39,837,450
20,805,724
16,741,458
521,956
2,035,551
4,616,131
193,347
102,671
441,544
2013
18,404,291
1,182,977
21,580,486
9,571,629
2,479,346
3,641,232
5,645,355
-
79,989,203
41,726,061
23,165,348
5,441,191
606,355
2,484,250
5,125,072
209,497
63,149
1,168,280
11,269,684
(11,269,684)
54,394
3,114,000
25,000,000
2,648,546
$
2014
Other Financing Sources (Uses)
Transfers In
Transfers Out
Sale of Capital Assets
Capital Leases
Bonds Issued
Premium on Bonds Issued
Excess of Revenues Over (Under) Expenditures
Total Expenditures
Expenditures
General Government
Justice
Public Safety
Public Service
Highway and Streets
Planning and Development
Culture and Recreation
Nondepartmental
Capital Outlay
Debt Service
Principal
Interest
Issuance costs
Intergovernmental
Total Revenues
Revenues
Taxes
Licenses, Permits, and Franchise Fees
Intergovernmental Revenues
Fines and Forfeitures
Special Assessments
Charges for Services
Rents and Royalties
Investment Earnings
Other Revenues
UNAUDITED
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TOWN OF MOUNT PLEASANT, SOUTH CAROLINA
19.07%
8,542,962
18,925,484
18,096,969
27,460,485
(27,460,485)
54,335
2,121,324
15,695,000
226,310
828,515
59,025,820
7,401,080
2,171,253
55,021
-
4,839,968
942,351
14,982,534
7,125,130
4,175,033
6,573,972
4,791,789
5,967,689
59,854,335
28,331,654
15,343,018
3,988,064
704,517
7,744,124
3,518,154
224,804
2007
15.45%
6,540,997
25,681,197
21,305,268
49,102,910
(49,102,910)
330,854
3,772,143
17,135,000
67,271
4,375,929
53,211,629
5,411,002
1,745,722
52,756
-
4,246,260
888,715
13,547,977
6,074,483
3,110,901
4,302,514
4,128,098
9,703,201
57,587,558
27,422,440
15,168,911
3,763,119
870,593
7,969,764
1,853,306
539,425
2006
$
$
$
13.28%
5,652,565
13,865,566
10,200,255
4,214,608
(4,214,608)
137,165
2,063,090
8,000,000
-
3,665,311
44,657,245
3,946,684
1,231,511
-
4,036,200
764,588
12,501,356
5,826,491
2,851,087
3,722,857
5,765,748
4,010,723
48,322,556
23,779,197
12,443,463
4,274,717
857,295
6,218,489
478,942
270,453
2005
Table 4
TOWN OF MOUNT PLEASANT, SOUTH CAROLINA
Table 5
GENERAL GOVERNMENTAL TAX REVENUES BY SOURCE
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
UNAUDITED
Fiscal
Year
Ended
June 30
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
Property
Tax
$
$
27,710,574
26,700,055
27,900,569
25,539,894
25,689,171
23,659,269
19,925,011
17,194,628
17,017,241
15,363,539
Sales
Tax
Accommodation
Tax
8,481,989
8,012,235
5,998,768
5,921,414
5,891,120
6,207,761
6,668,125
7,209,631
6,590,033
4,949,453
553,689
517,461
482,631
450,894
400,776
403,592
458,566
415,518
364,589
343,172
Source: Charleston County Treasurer
99
Hospitality
Tax
4,979,809
4,607,699
4,301,720
3,862,446
3,665,002
3,638,671
3,685,370
3,511,877
3,450,577
3,123,033
Total
$
$
41,726,061
39,837,450
38,683,688
35,774,648
35,646,069
33,909,293
30,737,072
28,331,654
27,422,440
23,779,197
100
34,659,380
32,070,030
35,054,155
35,894,654
39,068,817
40,105,647
37,511,560
36,496,544
39,698,097
40,058,447
37,654,820
37,450,310
35,560,810
35,252,610
34,514,370
32,846,040
29,231,490
25,327,803
26,403,920
24,912,240
Includes tax-exempt property
Note: Certain amounts for 2006 - 2009, 2011, and 2013 have been restated.
1
Source: Charleston County Auditor
274,297,440
244,245,100
258,930,120
239,161,250
251,042,290
240,908,740
214,156,850
202,629,600
189,785,620
123,934,530
Other
8,273,670
7,844,760
6,980,130
6,901,450
6,763,650
6,320,000
6,259,350
6,329,420
5,627,740
5,122,160
Real Property
$ 649,151,400
607,791,370
615,935,316
562,751,711
574,690,840
555,320,291
500,952,589
473,101,643
436,176,832
$ 331,462,913
Value
0.383
0.383
0.383
0.386
0.386
0.386
0.386
0.386
0.386
0.472
Rate
$ 310,813,430
301,870,690
293,370,361
259,344,647
256,829,013
247,779,864
226,312,039
214,977,116
185,916,935
$ 147,679,856
Vehicles
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
Property
Property
June 30
Total Taxable
Assessed
Direct
Tax
Less:
Tax Exempt
Real Property
Residential
Commercial
Year
Ended
Personal Property
Motor
Total
Fiscal
UNAUDITED
LAST TEN FISCAL YEARS
ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
TOWN OF MOUNT PLEASANT, SOUTH CAROLINA
$ 13,047,242,089
12,286,701,646
12,369,454,459
11,275,737,947
11,434,331,833
11,028,095,334
9,945,185,456
9,395,632,404
8,488,652,401
$ 6,182,724,428
Value
Actual
Taxable
Estimated
4.98%
4.95%
4.98%
4.99%
5.03%
5.04%
5.04%
5.04%
5.14%
5.36%
Actual Value
Assessed
Value1 as a
Percentage of
Table 6
101
0.354
0.354
0.354
0.357
0.357
0.357
0.357
0.386
0.386
0.472
0.383
0.383
0.383
0.386
0.386
0.386
0.386
0.386
0.386
0.472
Notes: Millage rates above are per $100 of assessed value.
In 2008, the Town adopted a separate debt millage.
0.029
0.029
0.029
0.029
0.029
0.029
0.029
-
Town of Mount Pleasant
Debt
Total
Operating
Service
City
Millage
Millage
Millage
Source: Charleston County Auditor
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
Fiscal
Year
UNAUDITED
LAST TEN FISCAL YEARS
0.467
0.458
0.451
0.459
0.459
0.438
0.437
0.437
0.437
0.548
0.079
0.080
0.079
0.085
0.085
0.086
0.087
0.087
0.087
0.136
0.546
0.538
0.530
0.544
0.544
0.524
0.524
0.524
0.524
0.684
1.005
1.005
0.986
0.987
0.987
1.007
0.974
0.948
0.931
1.111
0.260
0.260
0.279
0.279
0.279
0.239
0.182
0.136
0.158
0.124
1.265
1.265
1.265
1.266
1.266
1.246
1.156
1.084
1.089
1.235
Overlapping Rates
Charleston County
Charleston County School District
Debt
Total
Debt
Total
Operating
Service
County
Operating
Service
School
Millage
Millage
Millage
Millage
Millage
Millage
PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS
TOWN OF MOUNT PLEASANT, SOUTH CAROLINA
2.194
2.186
2.178
2.196
2.196
2.156
2.066
1.994
1.999
2.391
Direct &
Overlapping
Rates
Table 7
TOWN OF MOUNT PLEASANT, SOUTH CAROLINA
Table 8
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND NINE YEARS AGO
UNAUDITED
2014
Taxpayer
SCE&G
East Cooper Community Hospital
IMI Mount Pleasant, LLC
Oakland Properties
Edgewater Plantation Associates LLC
Automated Trading Desk
Central Square Holdings LLC
SNH SE SG LLC
GR-105 Long Point
Dominion Sr Living of Mt Pleasant
G and I III
Nemplorp LLC
American Medical International
MRRM P A
Keystone Legends I LP
Southhampton Properties LLC
Weiland Homes of SC
Harbor Point Associates
Centex Homes
Totals
Taxable
Assessed
Value
$ 8,588,400
5,629,353
4,552,250
2,664,490
2,550,000
2,150,805
2,302,910
2,160,000
1,830,000
1,694,620
$ 34,122,828
2005
Taxes
Paid
Taxable
Assessed
Value
328,936
215,604
174,351
102,050
97,665
82,376
88,201
82,728
70,089
64,904
$ 1,306,904
$ 4,739,240
3,384,420
2,515,350
2,486,230
1,413,700
1,344,600
1,050,000
1,037,840
1,027,560
851,290
$ 19,850,230
Rank
1
2
3
4
5
6
7
8
9
10
-
$
Source: Charleston County Treasurer
Note: These figures represent millage solely for the Town of Mount Pleasant.
102
Taxes
Paid
Rank
1
2
3
4
5
6
7
8
9
10
$
$
223,692
159,745
118,725
117,350
66,727
63,465
49,560
48,986
48,501
40,181
936,932
TOWN OF MOUNT PLEASANT, SOUTH CAROLINA
Table 9
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
UNAUDITED
Fiscal Year
Ended
June 30
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
Collected within the
Fiscal Year of the Levy
Percentage
Amount
of Levy
Total Tax
Levy for
Fiscal Year
$
$
22,789,970
22,110,243
21,811,505
20,692,582
20,590,235
19,751,151
18,028,341
17,097,272
15,908,318
15,645,049
$
$
22,071,162
21,345,588
21,210,833
20,116,745
19,915,651
19,151,334
17,684,522
16,934,591
15,670,888
14,761,383
97%
97%
97%
97%
97%
97%
98%
99%
99%
94%
Total Collections to Date
Percentage
Amount
of Levy
Subsequent
Years
$
$
301,695
583,700
1,136,900
755,824
837,497
584,486
453,472
329,645
205,016
$
$
22,071,162
21,647,283
21,794,533
21,253,645
20,671,475
19,988,831
18,269,008
17,388,063
16,000,533
14,966,399
97%
98%
100%
103%
100%
101%
101%
102%
101%
96%
Sources: Charleston County Treasurer
Charleston County Auditor
Tax levies and collections have been restated to include local option rollback taxes for fiscal years prior to FY 2014.
Prior to FY 2013, delinquent collections were not available by applicable tax year, and therefore were reported in the fiscal year collected.
103
TOWN OF MOUNT PLEASANT, SOUTH CAROLINA
Table 10
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
UNAUDITED
Governmental Activities
Fiscal
General
Obligation
TIF
Capital
Total
Primary
Year
Bonds
Bonds
Leases
Government
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
$
$
50,742,439
27,956,087
32,675,000
38,365,000
24,050,000
28,960,000
33,960,000
38,730,000
26,355,000
15,825,000
$
$
5,025,900
7,502,400
9,871,150
12,128,650
14,286,400
16,340,900
18,323,550
20,225,650
22,033,500
19,050,000
$
$
4,380,907
3,229,839
4,103,886
3,774,075
2,362,302
2,928,101
3,128,105
3,937,504
4,089,410
2,106,769
1
$
$
Percentage
of Personal
Income1
60,149,246
38,688,326
46,650,036
54,267,725
40,698,702
48,229,001
55,411,655
62,893,154
52,477,910
36,981,769
See the Schedule of Demographic and Economic Statistics for personal income and population data.
Note: Beginning in fiscal year 2013, the outstanding debt by type includes the related premiums
104
1.99%
1.37%
1.75%
2.04%
1.46%
1.86%
2.31%
2.90%
2.41%
1.84%
Per
Capita1
$
$
803
538
673
800
613
743
856
997
844
626
TOWN OF MOUNT PLEASANT, SOUTH CAROLINA
Table 11
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS
UNAUDITED
General
Less: Amounts
Fiscal
Obligation
Available in Debt
Year
Bonds
Service Fund
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
$
$
50,742,439
27,956,087
32,675,000
38,365,000
24,050,000
28,960,000
33,960,000
38,730,000
26,355,000
15,825,000
2,535,379
-
Percentage of
Estimated
Actual Taxable
Value1 of
Total
$
$
48,207,060
27,956,087
32,675,000
38,365,000
24,050,000
28,960,000
33,960,000
38,730,000
26,355,000
15,825,000
Property
0.37%
0.23%
0.26%
0.34%
0.21%
0.26%
0.34%
0.41%
0.31%
0.26%
1
See the Schedule of Assessed Value and Estimated Actual Value of Taxable Property for property value data.
2
Population data can be found in the Schedule of Demographic and Economic Statistics.
Note: Beginning in fiscal year 2013, the outstanding debt includes the related premiums.
105
Per
Capita 2
$
$
644
389
471
565
362
446
525
614
424
268
TOWN OF MOUNT PLEASANT, SOUTH CAROLINA
Table 12
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
OUTSTANDING AT YEAR END
UNAUDITED
Debt
Governmental Unit
Debt Repaid with Property Taxes:
Charleston County General
Public School Districts
Parks and Recreation Commission
Outstanding
$
Subtotal, Overlapping Debt
Town of Mount Pleasant Direct Debt
Total Direct and Overlapping Debt
$
Estimated
Share of
Overlapping
Estimated
Percentage
Applicable1
Debt
557,817,917
201,070,000
37,602,367
19.53%
19.53%
19.53%
796,490,284
19.53%
155,554,552
60,149,246
100.00%
60,149,246
856,639,530
$
$
108,941,839
39,268,971
7,343,742
215,703,798
Sources:
Charleston County Treasurer
Charleston County Parks and Recreation Commission.
Notes:
Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the Town. This
schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and
businesses of the Town of Mount Pleasant. This process recognizes that, when considering the government's ability to
issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account.
However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each
overlapping government.
1
The percentage of overlapping debt applicable is estimated using taxable assessed property values. Applicable
percentages were estimated by determining the portion of the county's taxable assessed value that is within the
government's boundaries and dividing it by the county's total taxable assessed value.
106
107
50.19%
20,213,388
20,363,567
40,576,955
2008
87.61%
6,534,890
Legal Debt Margin
Total Net Debt Applicable to Limit
$
6,534,890
46,212,648
48,070,000
(1,857,352)
$ 52,747,538
$
46,212,648
$ 52,747,538
Debt Limit (8% of Total Assessed Value)
Debt Applicable to Limit:
General Obligation Bonds (Excluding Premiums)
Less: Amounts Issued Under Referendum
50.90%
24,181,643
25,069,247
49,250,890
2014
$ 659,344,220
57.09%
21,385,125
28,448,111
49,833,236
2013
Total Assessed Value
69.63%
13,840,278
31,731,975
45,572,253
2012
$ 649,151,400
8,273,670
1,919,150
32.37%
31,460,520
15,055,839
46,516,359
2011
Legal Debt Margin Calculation for Fiscal Year 2014
Assessed Value
Add Back: Exempt Real Property
Add Back: FILOT Property
39.27%
27,286,520
17,644,703
44,931,223
Fiscal Year
2009
2010
Certain amounts for 2007 and 2009 have been restated.
59.67%
15,467,054
22,887,431
38,354,485
2007
Note:
42.81%
20,186,040
15,111,575
35,297,615
2006
Article Eight (8) Section Seven (7) of the South Carolina Constitution of 1895, as amended, provides that no City or Town shall incur any bonded debt which shall exceed eight per centum (8%) of the assessed value of the
property therein and no such debt shall be created without the electors of such City or Town voting in favor of such further bonded debt. Prior to Home Rule Act of July 1, 1976, the bonded debt exempt was thirty five per
centum (35%). In 1976, the General Assembly reduced the general obligation debt limit without voter approval to eight per centum (8%) of assessed valuation; whereas, with a referendum any amount can be floated.
37.09%
$ 16,682,033
9,835,000
$ 26,517,033
2005
Table 13
Note:
Total Net Debt Applicable to the
Limit as a Percentage of Debt Limit
Legal Debt Margin
Total Net Debt Applicable to Limit
Debt Limit
UNAUDITED
LAST TEN FISCAL YEARS
LEGAL DEBT MARGIN INFORMATION
TOWN OF MOUNT PLEASANT, SOUTH CAROLINA
TOWN OF MOUNT PLEASANT, SOUTH CAROLINA
Table 14
PLEDGED-REVENUE COVERAGE
LAST TEN FISCAL YEARS
UNAUDITED
Tax Increment Financing (TIF) Bonds
TIF Property
Tax Collections
Fiscal Year
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
$
$
9,803,658
9,386,197
9,534,032
8,323,631
8,648,739
7,195,211
5,621,065
4,257,881
4,044,775
3,052,642
TIF Debt Service
Principal
Interest
2,476,500
2,368,750
2,257,500
2,157,750
2,054,500
1,982,650
1,902,100
1,807,850
1,501,500
690,000
$
$
254,542
353,765
448,514
538,983
625,321
708,059
786,787
866,661
782,361
447,541
Note: The Town's first Tax Increment Financing bonds (TIF) were issued during fiscal year 2002.
108
Coverage
3.59
3.45
3.52
3.09
3.23
2.67
2.09
1.59
1.77
2.68
TOWN OF MOUNT PLEASANT, SOUTH CAROLINA
Table 15
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
UNAUDITED
Fiscal Year
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
Population
1,3
74,885
71,875
69,357
67,843
66,418
64,941
64,707
63,067
62,213
59,104
Personal Income
(amounts
expressed in
thousands)
$
$
3,017,416
2,828,066
2,669,419
2,659,513
2,789,998
2,587,185
2,398,000
2,169,126
2,179,135
2,009,950
Per Capita
Personal
Income2
$
$
40,294
39,347
40,808
39,201
42,007
39,839
37,059
34,394
35,027
34,007
Median Age
38.0
39.1
39.1
39.1
37.7
37.7
37.2
36.6
36.6
35.9
3
School
Enrollment4
Unemployment
Rate5
11,996
12,302
11,659
11,718
12,086
10,751
10,520
10,448
10,257
10,239
3.4%
5.1%
5.5%
6.4%
5.9%
6.3%
3.5%
3.1%
2.0%
2.1%
Source:
1, 2
Figures obtained from the US Census Bureau
3, 4
Figures obtained from the Town of Mount Pleasant Planning Department Demographics Report and are Estimates.
5
Figures obtained from the Bureau of Labor Statistics
109
TOWN OF MOUNT PLEASANT, SOUTH CAROLINA
Table 16
PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO
UNAUDITED
2012**
Employer
Charleston County School District
East Cooper Regional Medical Center
Town of Mount Pleasant
Roper St. Frances Healthcare
Walmart
Publix Supermarkets
Sandpiper Retirement Community
Mediterranean Shipping Co.
Carolina One Real Estate
Motley Rice, LLC
Keller Williams Real Estate
Target Stores
Kindred Hospital Charleston
Franke at Seaside
Somerby Mount Pleasant
Peligan Food Systems
Lowe's
Clear Channel Communications
Shem Creek Bar and Grill
Hilton Charleston Hardor
Cooper Hall Retirement
Charleston Nursing and Rehab
Silkworm
Passport International
Harris Teeter
T Bonz
Belk
Employees
1,228
748
550
450
402
356
300
290
268
240
200
180
172
160
160
-
2001*
Rank
Percentage
of Total Town
Employment
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
3.11%
1.89%
1.39%
1.14%
1.02%
0.90%
0.76%
0.73%
0.68%
0.61%
0.51%
0.46%
0.44%
0.40%
0.40%
-
5,704
14.44%
TOTAL
Source: Charleston Metro Chamber of Commerce
*2004 data is not readily available. 2001 data is considered a reasonable comparison.
**2013 figures not currently available. 2012 data is considered a reasonable comparison.
Notes: Employment figures for periods ending December 31.
110
Employees
610
334
250
80
300
500
140
120
120
120
110
110
100
100
100
80
72
3,246
Rank
Percentage
of Total Town
Employment
-
1
3
2.44%
1.34%
5
10
1.00%
0.32%
-
4
1.20%
-
2
6
7
7
7
8
8
9
9
9
10
11
2.00%
0.56%
0.48%
0.48%
0.48%
0.44%
0.44%
0.40%
0.40%
0.40%
0.32%
0.29%
12.99%
111
513
502
124
31
105
107
26
7
32
50
20
2011
540
139
37
110
124
26
6
35
45
18
535
136
41
108
126
26
6
39
39
14
556
134
45
110
122
36
0
37
52
20
545
135
38
116
120
37
0
38
40
21
545
135
38
115
122
38
0
38
39
20
Full - Time Equivalent Employees as of December 31,
2010
2009
2008
2007
2006
Source: Town of Mount Pleasant Finance Division-Human Resources Division
* New Department in Fiscal Year 2009/2010
532
130
31
106
115
23
6
34
140
26
112
115
28
6
37
Total
51
17
48
20
General Government
Justice
Public Safety
Police
Sworn
Non-Sworn
Fire
Public Services
Planning
Transportation*
Recreation
2012
2013
Function
UNAUDITED
LAST TEN CALENDAR YEARS
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION
TOWN OF MOUNT PLEASANT, SOUTH CAROLINA
531
141
41
109
109
35
0
38
37
21
2005
515
132
37
103
123
33
0
36
34
17
2004
500
127
40
105
102
35
0
37
36
18
2003
Table 17
112
2
1
27,539
13,063
1,638
6,179
2,871
20,846
18,538
2,776
32,541
7,637
15,274
1,682
7,205
3,558
20,579
21,642
3,527
33,666
7,455
2013
27,980
2014
7,894
1,854
30,975
21,185
17,788
5,898
3,413
1,195
13,478
27,220
2012
11,602
2,041
30,471
21,574
20,289
5,709
3,464
1,432
14,507
27,057
2011
10,164
1,860
30,143
23,180
21,370
5,532
2,834
1,527
15,258
26,962
Data reported prior to 2007 only includes 6 months.
9,542
1,566
29,926
23,206
19,408
5,473
3,040
1,550
16,232
26,834
Fiscal Year
2010
2009
Part I offenses are murder, rape, robbery, aggravated assault, burglary, larceny, motor vehicle theft, and arson.
Sources: Various town departments.
General Government
Stormwater Utility Billings
Justice
Cases Filed
Police
Part I Offenses1
Fire
Emergency Calls
Inspections
Public Services
Tons of Garbage Collected
Tons of Trash Collected
Planning
Building Permits
Dwelling Units
Culture and Recreation2
Youth Athletic Enrollment
Function
UNAUDITED
LAST TEN FISCAL YEARS
OPERATING INDICATORS BY FUNCTION
TOWN OF MOUNT PLEASANT, SOUTH CAROLINA
9,733
1,835
29,398
24,536
21,099
5,384
3,378
1,422
17,903
31,206
2008
9,651
2,387
28,741
24,303
22,245
5,103
1,408
1,451
14,343
30,433
2007
3,497
2,857
27,604
23,867
21,007
5,057
699
1,500
15,469
28,284
2006
3,055
2,708
26,524
24,493
25,986
4,886
1,250
1,795
13,976
26,636
2005
Table 18
113
4
6
12
437.71
22
2.18
647.44
19
437.88
22
2.532
22.48
2013
4
7
2014
Sources: Various town departments and asset database.
Public Safety
Police Stations
Fire Stations
Public Services - Sanitation
Collection Trucks
Culture and Recreation
Recreation Acreage
Recreation Facilities
Planning
Streets - Miles Added
Total Acres Annexed
Function
UNAUDITED
LAST TEN FISCAL YEARS
CAPITAL ASSET STATISTICS BY FUNCTION
TOWN OF MOUNT PLEASANT, SOUTH CAROLINA
12
4
6
0.92
504.98
437.71
22
2012
22
4
5
2.066
276.78
437.71
22
2011
0.96
34.88
191.50
22
22
4
5
21
5
5
4.37
89.12
191.50
22
Fiscal Year
2010
2009
24
5
5
7.66
96.21
190.50
21
2008
24
7
5
4.23
137.92
189.50
20
2007
24
7
5
0.347
604.73
190.70
21
2006
19
7
5
4.391
1,782.30
176.90
21
2005
Table 19
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114