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HomeMy WebLinkAboutTown of Bluffton - Public Financial ReportPOPULAR ANNUAL FINANCIAL REPORT For the Fiscal Year Ended June 30, 2021 www.TownofBluffton.sc.gov Town of BLUFFTON South Carolina Bluffton, the Heart of the Lowcountry, a Town that Appreciates the Past, Focuses on Today and is Planning Together for a Greater Future. We Take Care of our Citfzens, the Town and Each Other by Contfnuously Making our Community and Organizatfon Better. Town of Bluffton Vision and Mission Population Statistics Populatfon .............................................. 27,716(1) % Male .................................................... 48.5%(1) % Female ................................................. 51.5%(1) % with Bachelor’s degree or higher ........ 46.3%(1) Median age ...................................... 37.5 Years(1) Per capita income ................................ $44,326(1) Median family income ......................... $85,844(1) Average travel tfme to work in minutes .... 24.9(1) Median value of owner-occupied housing Units……………………………………………$299,700(1) Average household size…………..……………...2.71(1) Sales tax rate…………………………………………..7%(3) Unemployment Rate County ....................................................... 3.7%(2) State .......................................................... 4.5%(2) Demographic and Economic Statistics A Message from the Director ......... 3 Bluffton at a Glance ....................... 4 A Bluffton “State of Mind” ............. 5 Elected Officials .............................. 6 Organizatfonal Chart ..................... 7 Educatfon News ............................. 8 Bluffton Tourism ............................ 9 Bluffton Business News ................ 10 Don Ryan Center for Innovatfon .. 11 What’s Happening Around Town .12 2019 Financial Highlights ..............13 Where Our Money Comes From ...14 Where Our Money Goes ...............15 Assets and Liabilitfes .....................16 Outstanding Bonds .......................17 Revenues vs. Expenditures ...........18 2021 Budget Highlights .................19 In This Report References (1) U.S. Census Bureau, 2020 Census (2) SC Department of Employment and Workforce (06/2021) (3) S.C. Department of Revenue A Message from the Assistant Town Manager To the Citizens of the Town of Bluffton: I am pleased to present to you the Town of Bluffton’s Popular Annual Financial Report for the fiscal year ended June 30, 2021. This report is intended to increase awareness throughout the community of the financial operatfons of the Town. As such, this report is written in a manner that will summarize and communicate, in a user-friendly manner, the Town’s financial conditfon. I am pleased to announce that for the tenth consecutfve year the Town of Bluffton received the Award of Outstanding Achievement in Popular Annual Financial Reportfng from the Government Finance Officers Associatfon (GFOA) for our Popular Annual Financial Report prepared for Fiscal Year ended June 30, 2020. In additfon to providing financial informatfon, it is important to demonstrate what makes Bluffton a great place to live and work. Bluffton’s “Heart of the Lowcountry” uniqueness contributes to a variety of community events and destfnatfons. It is important for us to demonstrate the role that Town government is playing in supportfng these actfvitfes. Financial informatfon within this report is derived in large part from the Town’s 2021 independently audited set of financial statements that are prepared in accordance with generally accepted accountfng principles. These audited statements are part of the Town’s 2021 Annual Comprehensive Financial Report (ACFR). We are proud to say the Town’s ACFR has been awarded a Certfficate of Achievement for Excellence in Financial Reportfng by the Government Finance Officers Associatfon for each of the last twelve years. I welcome any feedback, comments, or concerns regarding the informatfon included in this report. Sincerely, Christopher D. Forster Assistant Town Manager Page 3 Town of Bluffton Popular Annual Financial Report FY 2021 Established 1825 Bluffton at a Glance Established in 1825 as a popular summer locatfon for wealthy Savannah merchants and plantatfon owners, Bluffton is now considered one of the fastest-growing municipalitfes in the state, and was recognized by a New York Times reporter as one of six up and coming spots for waterfront propertfes The town situated on a bluff along the May River just twelve miles from Hilton Head Island, has grown over 1000% since 2000. Now designated a Natfonal Historic District, Bluffton is part of the Hilton Head Urbanized Area, the Sun City-Hilton Head Urban Cluster and the Hilton Head Island—Bluffton—Beaufort Metropolitan Statfstfcal Area. Colleges and Universities The following post-secondary schools provide educatfonal advancement opportunitfes to the citfzens of Bluffton:  The University of South Carolina at Beaufort (USCB)  The Technical College of the Lowcountry (TCL)  Savannah College of Art and Design (SCAD) Although this report is largely derived from the Town’s 2021 Annual Comprehensive Financial Report (ACFR), this report is not prepared in accordance with generally accepted accountfng principles (GAAP). Informatfon on governmental funds is presented using the current financial resources measurement focus and the modified accrual basis of accountfng. The report is presented in a summarized manner and certain financial statements, discretely presented component units and note disclosures required by GAAP are omitted. A copy of the Town’s audited 2021 ACFR, which is prepared in accordance with GAAP and contains more detailed informatfon, is located at https://www.townobfluffton.sc.gov/finance-administratfon-department/financial-reports, then under the ACFR tftle, 2021 ACFR. About this Report Transportation Bluffton is located:  15 miles from Interstate Highway 95  26 miles from the Savannah/Hilton Head Internatfonal Airport  93 miles from the Charleston Internatfonal airport  12 miles from the Hilton Head Island Airport The Palmetto Breeze offers public transit service via eleven routes through Bluffton daily. The Town joined the Lowcountry Area Transportatfon Study (LATS), a Metropolitan Planning Organizatfon for regional organizatfon, which is federally mandated to plan for transportatfon improvements. Town of Bluffton, South Carolina Established 1825 Page 4 USCB Beaufort—South Campus Town of Bluffton Popular Annual Financial Report FY 2021 Bluffton “Heart of the Lowcountry” Parks & Leisure Trails  DuBois Park  Oyster Factory Park  Oscar Frazier Park  Wright Family Park  Buckwalter Regional Park  Tom Herbkersman Com- mons  Pritchard Pocket Park  Buckwalter Place Park  MC Riley Sports Complex  Bluffton Dog Park  Martfn Family Park Lowcountry Artists  Four Corners Art Gallery  Jacob Preston Studio  Society of Bluffton Artfsts  Pluff Mud Art  Palmetto Bluff Gallery  Maye River Gallery  Cedarstacker  The Red Piano Art Gallery  La Petfte Gallery  Signore Coastal Art The Town helps to coordinate more than 350 special events during most years, below is a list of just a few:  Bluffton Farmers Market  Historic Bluffton Arts and Seafood Festfval  May River Clean-up  Virtual Neighborhood Clean-up  Lutze 43 5k  BBQ & Blues Festfval  Bluffton Boiled Peanut Festfval  Historic Bluffton Turkey Chase 5k  Natfonal Night Out  Annual Bluffton Christmas Tree Lightfng and Light Up the Night Events  Bluffton Christmas Parade  Mayfest Annual Festivals and Events Bluffton as the “Heart of the Lowcountry,” embodies a unique variety of community events and destfnatfons. The Town hosts festfvals throughout the year that celebrate the May River, Gullah Heritage, seafood harvests and other local art and cultural interests. Bluffton supports its actfve community by providing for areas to engage in river sports, nature pathways and parks. Local art, festfvals and actfvitfes foster community spirit among neighbors and provide a means for town expression and entertainment. Bluffton is the heart of the Lowcountry. Page 5 Town of Bluffton Popular Annual Financial Report FY 2021 Town of Bluffton, South Carolina Established 1825 Elected Officials FY 2021 Fact Figure Town Property Tax Rate: $36.8/$1,000 TAV Town Bonded Debt Tax Rate: $1.7/$1,000 TAV Total County– Wide Property $286.3/$1,000 TAV Town Share of Total: 13.45% Total Annual Budget: $34,223,867 Employees: 151 FTEs Outstanding Debt: $14,521,190 The Town of Bluffton was incorporated in 1852. The Town operates under a Council–Manager form of government. Town Council is composed of a Mayor and four council members. Mayor and council members serve staggered four- year terms. The at-large electfons are non-partfsan and as of November 2021 there were 21,531 registered voters on the rolls. Town Council is responsible for setting millage rates during the annual budget process prior to the start of each fiscal year. The property tax rate was 49 mills in the year 2000 but has decreased to 38.5 mills in 2021 due in large part to the Town’s increased populatfon and property development. One mill is equal to 1/1000 of a dollar per $1 of assessed property value. Town County School District Fire Dist. 13% 23% 55% 9% TAV—Taxable Assessed Value FTEs—Full-tfme Equivalents Town of Bluffton, South Carolina Established 1825 Mayor Lisa Sulka Councilman Dan Woods Mayor Pro Tempore Fred Hamilton Councilman Larry Toomer Councilwoman Bridgette Frazier Page 6 Town of Bluffton Popular Annual Financial Report FY 2021 Organizational Chart Page 7 Accommodatfons Tax Advisory Committee Affordable Housing Committee Americans with Disabilitfes Act Grievance Committee Beaufort & Jasper County Lowcountry Area Transportatfon Study Policy Board Bluffton-County Traffic Advisory Group Beautfficatfon Committee Board of Zoning Appeals Constructfon Board of Adjustments and Appeals Development Review Committee Don Ryan Center for Innovatfon Board of Directors Historic Preservatfon Commission Historic Preservatfon Review Committee Law Enforcement Citfzens Advisory Com- mittee Lowcountry Council of Governments Board of Directors May River Watershed Actfon Plan Advisory Committee Municipal Electfons Commission Negotfatfng Committee Planning Commission Public Safety Citfzens Committee Southern Beaufort County Corridor Beautffi- catfon Board Southern Beaufort County Plan Implemen- tatfon Committee Southern Lowcountry Regional Board Stormwater Management Utflity Board Wall of Honor Committee Water Quality Technical Advisory Com- mittee Town of Bluffton Popular Annual Financial Report FY 2021 Town of Bluffton, South Carolina Established 1825 Education News Town of Bluffton, South Carolina Established 1825 Students at Bluffton High can earn college credits at the University of South Carolina Beaufort through a new partnership between the two schools. Bluffton High also partfcipates in the AP Capstone program, which lets students earn a special diploma signifying their mastery of skills valued by colleges and employers. 2021 Highlights for the Beaufort County School Districts reported in their Community Report Card:  College scholarship totals of $32.4 million.  68% of high school students taking Advanced Placement courses scored high enough to qualify for college credit.  Won the Champion for Children Award from the Instftute of Child Success for its efforts to improve early childhood educatfon. There are 983 full-day prekindergarten slots in the district.  68% of high school students taking Advanced Placement courses scored high enough to qualify for college credits, an improvement from 55% five years ago.  Additfons to May River High School and River Ridge Academy were completed as a result of the district’s $344 bond referendum. Across the district there was a 12% increase in the number of total students over the last 10 years. ESOL students increased by 10% in the same tfme period. Page 8 Sixteen years ago, the town of Bluffton had one elementary school. Today we are proud to claim two early childhood centers, four elementary, one PreK-Grade 8, two middle and two high schools. Beaufort County’s on-tfme high school graduatfon rate has improved for eight consecutfve years, with May River High School’s rate exceeding 90%. All of Beaufort County's public schools are now schools of choice, giving students and parents the flexibility to apply for academic programs offered in schools outside their zoned attendance areas. All district students now have personal mobile computfng devices through the Connect2Learn Program that they can use to enhance their learning, not only at school but also at home. May River High School opened in Bluffton in August 2016. Nearly 1,000 students attend college-prep and advanced technical classes at May River High. Its Advanced Technical Center offers four areas of study – automotfve, engineering, health sciences, mechatronics and welding – which has attracted students from other attendance zones who applied for admission through the district’s expanded school choice program. The high school recently added Cambridge programming which is another advanced placement opportunity for students, along with the existfng Capstone Program. Town of Bluffton Popular Annual Financial Report FY 2021 Bluffton Tourism Atlantic Ocean As depicted in the map to the left, the Town of Bluffton is located in Beaufort County, a southern coastal county in South Carolina. Bluffton is located just 12 miles west of Hilton Head Island, SC approximately 20 miles northeast of Savannah, GA, 25 miles southwest of Parris Island and 90 miles southwest of Charleston, SC. Hilton Head Island is home to one of golf's greatest traditfons, South Carolina's only PGA Tour event, the RBC Heritage is sponsored by the Royal Bank of Canada and presented by Boeing typically the week following the Masters in April. The St. Patrick's Day celebratfon in Savannah, Georgia is the city's largest annual celebratfon and the second largest St. Patrick's Day gathering in the United States. Attractfng roughly 400,000 Irish, honorary Irish visitors and local celebrators each year, Savannah's St. Patrick's Day traditfons are steeped in the area's rich Irish heritage. Parris Island, where all Marine recruits are trained east of the Mississippi River, is one of the most visited military facilitfes in the world. This translates into a significant economic impact for surrounding communitfes. Most visitors come to attend the recruit Graduatfon Ceremony. Visitors to these and other area events can find lodging, dining, tours and attractfons in nearby Bluffton. The Town of Bluffton is home to the award winning Inn at Palmetto Bluff. The Inn was developed by Charlotte-based Crescent Communitfes and is managed by Montage Hotels & Resorts. It is in the planned community of Palmetto Bluff in Bluffton and features a combinatfon of 200 Inn and cottage- style guest suites, a Jack Nicklaus Signature golf course, day spa and amenitfes such as horseback riding, kayaking and nature preserves. Current awards include:  Conde Nast Traveler Gold List “The Best Hotels and Resorts in the U.S. and Canada (2020)  U.S. News and World Report “Best Hotels in the USA” (2018, 2020, 2021)  AAA Five Diamond Award “Most Luxurious Accommodatfons North America” (2015, 2016, 2017, 2021).  Travel + Leisure World’s Best Awards “The Best New Hotels in the World” (2017, 2019)  Travel + Leisure World’s Best Awards “Top 10 South Carolina Resort Hotels” (2017, 2020, 2021) Page 9  Beaufort County School District (Bluffton sites)  The Inn at Palmetto Bluff & Palmetto Bluff Clubs  Kroger  EviCore Natfonal, LLC  Publix Supermarkets  Right at Home  NHC Healthcare/The Palmettos  Hargray  Resort Services, Inc.  Bluffton Township Fire Department  Town of Bluffton Bluffton serves as a critfcal hub in the Beaufort County region, and with steady populatfon growth throughout the last 22 years, the future development of the region has come into focus. Through several public sessions, the Growth Framework Map was created to define where growth should occur. It is a planning tool that organizes the future growth patterns of the Town and identffies centers for development and surrounding edges with varying degrees of residentfal and non-residentfal intensity. The vision of the plan prepares for a more compact and sustainable future, where new development is at higher density and focused away from key natural resources. It envisions the next century of Bluffton as a period during which Bluffton matures into a connected, complete southern town that effectfvely and efficiently provides services and attracts development. Where you do business says as much as how you do business. It’s why more and more companies are moving to the heart of the Lowcountry—Bluffton, SC. Dedicated to entrepreneurship, innovatfon and attractfng high-tech industries, Bluffton provides an atmosphere that inspires new ideas and encourages business growth. Please visit the Town’s website or the Don Ryan Center for Innovatfon’s website at www.donryancenter.com for more informatfon. Major Employers Located in the Town Town of Bluffton Popular Annual Financial Report FY 2021 Town of Bluffton, South Carolina Established 1825 Bluffton Business News Town of Bluffton, South Carolina Established 1825 Page 10 Burnt Church Distillery Watterson Brands, parent company of the Burnt Church Distfllery has constructed one of the most beautfful buildings in downtown Bluffton. In additfon, this new facility brought over 35 jobs to the area, adding to the 20 new jobs for the Waterson Brand corporate headquarters, which is now in Bluffton. Town leadership and the Don Ryan Center for Innovatfon was instrumental in bringing this industry to our Town. Town of Bluffton Popular Annual Financial Report FY 2021 Don Ryan Center for Innovation The Don Ryan Center for Innovation (DRCI) was established in 2012 as a 501 (C)(3). The DRCI’s vision is to create a vibrant entrepreneurial business climate within the region through economic development emphasizing organic, sustainable growth, and enhance the economic vitality, diversity, and dynamism of the region. Page 11 THE HUB About the Don Ryan Center for Innovation The Don Ryan Center for Innovatfon focuses on creatfng a vibrant business climate within the Bluffton area through economic development emphasizing entrepreneurism and sustainable growth. DRCI fosters and promotes economic development in five core areas:  Entrepreneurism: Business Incubatfon, Co-working offerings (The HUB), and Business Startup/Concierge Services  Business Attractfon, Expansion and Retentfon  Real Estate and Infrastructure  Workforce Development & Talent Retentfon and Attractfon  Marketfng, Educatfon, and Outreach This locatfon houses the DRCI’s headquarters and is the region’s premier co-working office. The space allows for collaboratfon and sharing in a high-tech, open environ- ment. At The HUB, small business owners, entrepreneurs, and freelancers work in proximity to each other where they can collaborate, create, and be a part of the entrepreneurial community. The HUB is located in Buckwalter Place Commerce Park and opened in Spring of 2020. Town of Bluffton Popular Annual Financial Report FY 2021 Town of Bluffton, South Carolina Established 1825 What’s Happening Around Town Town of Bluffton, South Carolina Established 1825 Page 12 Alarms.org reported that the Natfonal Council for Home Safety and Security ranked Bluffton as the second safest city in South Carolina. The Guide is based on FBI Uniform Crime Report statfstfcs. Bluffton attributes this high ranking to Town Council’s investment in the department’s training and tools. The Bluffton Police Department has established its own K-9 team, implemented more traffic safety check points, and held community events such as Natfonal Night Out and free child car seat inspectfons. The Farmers Market of Bluffton is an open air, community non-profit farmers market that features local produce, honey, various types of handcrafted dairy, grass-fed meats, baked goods, fresh pastas, live music, kids actfvitfes, and delicious much more. The market is held Thursday afternoons in historic downtown Bluffton, along Calhoun and Lawrence Streets. It is a favorite of both locals and tourists. Trip Advisor lists The Farmer’s Market of Bluffton #3 in the 15 Best Things to do in Bluffton. In early 2020, Wright Family Park was under construc- tion and opened to the public in December 2020. This open space provides access to the May River and green space for gathering. It has been named in honor of the Wright Family, who have graciously provided their for- mer property for the park. Located in Buckwalter Place, Bluffton Veterans Memo- rial was completed and dedicated on Veterans Day 2020. The memorial honors all veterans who have served in the US Military. Town of Bluffton Popular Annual Financial Report FY 2021 2021 Financial Highlights The previous sectfons of this document provided informatfon on what is happening in our Town. The remainder of this document will provide readers with the Town’s financial informatfon for the fiscal year ended June 30, 2021. A Successful Year  The General Fund (the chief operatfng fund of the Town) had revenues in excess of expenditures of $3,803,233 for the fiscal year. The Town transferred a portfon of the general fund balance for its various capital improvement projects, including over $1 million in sewer improvements. Transfers into the general fund and capital leases combined with the transfer out result in a net increase of $5,132,946 in the general fund balance.  At the end of the fiscal year the General Fund had an unassigned* or unrestricted fund balance of $17,234,780 or 96% of the year’s total General Fund expenditures ($17,918,198). This indicates a strong financial positfon for the Town.  The Town expended $662,131 in Federal Grant Awards for the fiscal year ended 2021. These grants supported capital improvements and public safety initfatfves including stormwater management, historic preservatfons and traffic safety.  Fund Balance Reserves—The Town strives to maintain service levels and adequate fund balance reserves through the adoptfon of financial policies. Financial policy standards were all met in FY 2021.  Infrastructure Maintenance—Appropriately funding public assets and infrastructure as to not accumulate deferred maintenance costs. The Town contfnues to fund an Equipment Replacement Reserve to help alleviate the costs of future vehicle replacements.  Economic Development—Attractfng and retaining businesses and adoptfng additfonal economic development strategies will contfnue to be a top priority in FY 2022, while maintaining our pristfne lowcountry town. The Challenges Ahead * Unassigned fund balance represents fund balance that is not designated as nonspendable, restricted, committed or assigned for other intended purposes by external partfes from the government, government elected officials or assigned staff. Page 13 Old Town Bluffton Inn Town of Bluffton Popular Annual Financial Report FY 2021 Town of Bluffton, South Carolina Established 1825 Where Our Money Comes From The Town pays for the services it provides to its citfzens and businesses from various sources, referred to as revenue. These include various taxes, grants and charges for services. The General Fund Licenses and Permits License and permit collectfons remain the leading source of revenue at 50%, and increased $1.2 million from fiscal year 2020 to fiscal year 2021 (14%). The revenue increase resulted from a return to business as usual after a year of COVID-19, and an increase in building permits. Major sources of revenues from licensing and permitting are as follows:  Franchise Fees—Revenues resultfng from any utflity franchise fees paid to the Town including gas, electric and cable.  Business Licenses—Revenues collected for all businesses licensed in the Town.  Municipal Associatfon of South Carolina (MASC) Telecommunicatfons and Insurance Tax—Revenues collected by MASC for the Town pursuant to the Telecommunicatfons Act of 1999 and insurance and broker’s tax.  Building Safety Permits—Revenues from building permitting and inspectfon fees collected for residentfal and commercial development. Town of Bluffton, South Carolina Established 1825 Page 14 When assessing the financial results of the Town, the Town’s General Fund is the primary focus. The General Fund is the general operatfng fund of the Town and supports the regular day-to-day operatfons. It is used to account for all revenues and expenditures of the Town, except for those required to be accounted for in another fund such as Capital Improvement Projects or Stormwater actfvity. The Town’s General Fund Revenues totaled $21,721,431 for FY 2021. Below are the details of where the Town’s General Fund revenues come from: Licenses & Permits (In Thousands) 2021 2020 2019 Franchise Fees $2,642 $2,604 $2,592 Business Licenses 2,925 2,474 2,471 MASC Insurance Tax Collectfons 2,418 2,443 2,301 MASC Telecommunicatfons 61 66 73 Building Permits 2,651 1,909 2,159 Administratfve Fees 44 44 44 Applicatfon Fees 70 64 85 Total $10,811 $9,604 $9,725 Town of Bluffton Popular Annual Financial Report FY 2021 Where Our Money Goes Once the Town receives taxes and other revenues, the monies must be efficiently spent to provide services to the citfzens and businesses of the Town. As detailed in this sectfon, the Town provides a variety of services to its residents and businesses. Most service expenditures are recorded within the Town’s General Fund since this fund finances the Town’s daily operatfons. During the year ended 2021 , the Town expended its funds as shown below. The per capita amounts represent the amount that the Town expended on each type of service per resident while the aggregate represents the total amount spent. The per capita amounts are based on estfmated populatfons of 27,716 for 2021, 25,557 for 2020, and 23,097 for 2019, which resulted in total expense per capita of $646, $680, and $718 2021, 2020, and 2019, respectfvely. The Town experienced increases in the Administratfve, Judicial, Planning, and Public Works functfons over the prior year. The majority of increased costs were attributable to staffing expenditures, with additfonal full tfme employees in Human Resources, Informatfon Technology, and Executfve which all flow into Administratfve. The expenditures are classified by the type of service provided. Administrative includes the costs of all elected officials and the departments of Executfve, Human Resources, Finance, Informatfon Technology Departments and other Town-wide costs. Judicial includes the costs of Municipal Court and Judges. Planning includes the costs of Growth Management and the Planning & Community Development Departments. Public Works includes the costs of the Facilitfes and Asset Management Department. The remaining functfons represent actual individual departments within the Town. Page 15 Expenditures Per Capita 2021 Per Capita 2020 Per Capita 2019 Per Capita Administratfve $6,174,410 $223 $5,770,318 $226 $5,786,239 $251 Judicial 406,149 15 410,893 16 384,219 17 Planning 1,369,423 49 1,215,163 48 1,378,998 60 Building Safety 591,485 21 651,005 25 633,186 27 Police Department 6,378,174 230 6,677,882 261 5,732,617 248 Public Works 1,829,154 66 1,481,690 58 1,482,283 64 Project Mgmt. 844,992 30 829,930 32 300,996 39 Debt Service 324,411 12 349,740 14 288,327 12 Total $17,918,198 $646 $17,386,621 $680 $16,586,865 $718 Town of Bluffton Popular Annual Financial Report FY 2021 Town of Bluffton, South Carolina Established 1825 Assets and Liabilities In additfon to where the Town’s money comes from and where it goes, it is also important to understand the flow of the Town’s financial positfon. When we look at the overall financial conditfon of the Town, it is better to use the full accrual basis of accountfng, which is similar to the basis of accountfng used in the private sector. This allows us to consider all assets, liabilitfes, revenues and expenses of the Town. The schedule left is intended to show the difference (defined as net positfon) between the Town’s total assets and the Town’s total liabilitfes as of June 30, 2021 as compared to June 30, 2020. The Statement of Net Positfon reflects a $9.9 million increase in the Town’s financial positfon over last year. Statement of Net Position Our Assets-What We Have 2020 2021 Change Unrestricted current assets $ 23,466,691 $ 38,564,202 $ 15,097,511 Restricted 12,418,943 11,852,060 (566,883) Capital assets 35,372,078 36,179,737 807,659 Total Assets $ 71,257,712 $ 86,595,999 $ 15,338,287 Deferred Outilows $ 2,750,400 $ 3,811,596 1,061,196 Our Liabilities-What We Owe Current liabilitfes $ 6,153,189 $ 6,369,045 $ 215,856 Long-term liabilitfes 1,350,504 39,299 (1,311,205) Bonds payable 9,045,677 13,987,185 4,941,508 Net Pension Liability 16,412,481 19,079,147 2,666,666 Total Liabilitfes $ 32,961,851 $ 39,474,676 $ 6,512,825 Deferred Inflows $ 676,883 $ 644,001 $ (32,882) Net Positfon $ 40,369,378 $ 50,288,918 $ 9,919,540 The assets of the Town exceeded its liabilitfes at the close of the fiscal year by $50,28,918 (net positfon). Of this amount, $6,783,599 (unrestricted net positfon) may be used to meet the Town’s ongoing obligatfons to its citfzens and creditors. Portfons of the restricted net positfon amount are designated for future capital improvements, tourism projects and related support, debt service and other designated purposes. Capital assets currently compose approximately 42% of the Town’s assets. While these assets are used to provide services to our citfzens, they are not available for future spending. The chart (right) displays the Town’s net positfon over the last five years and reflects a healthy and improving financial positfon. Town of Bluffton, South Carolina Established 1825 Page 16 Town of Bluffton Popular Annual Financial Report FY 2021 A major liability of the Town is the amount of outstanding general obligatfon and revenue bonds. General obligatfon bonds are debt instruments issued by the Town to raise funds for public projects (i.e. Law Enforcement Center). What makes general obligatfon bonds (or GO bonds for short) unique is that they are backed by the full faith and credit of the issuing municipality. The Town’s total bond issuances outstanding as of June 30, 2021 equal approximately $14 million. The Town of Bluffton’s bond ratfng at June 30, 2021 was Aa1 from Moody’s and an AA+ from Standard & Poor’s. Ratfng agencies assess the credit quality of municipal bond issues and assign a credit ratfng based on their analysis. Both agencies stated the high ratfngs reflect the growth in the Town’s tax base in recent years and a healthy financial positfon supported by fiscal policies, professional management and modest debt as shown in the bonds per capita results above. The estfmated populatfon as of June 2021 of 27,716 was used for the Outstanding Bonds per Capita calculatfon. In November 2020, the Town issued General Obligatfon Refunding Bonds, Series 2020, for the purpose of reducing the interest on the Town’s outstanding General Obligatfon Bonds, Taxable Series 2010A (Build America Bonds), which resulted in a net increase at June 2021 of $4.7 million. Page 17 Streetscape at the Calhoun Street Promenade Bonds 2019 2020 2021 General Obligatfon Bonds Beginning balance $ 5,415,000 $ 5,175,000 $ 4,930,000 Debt issued during the year - - 10,970,063 Principal repaid during the year (240,000) (245,000) (6,286,555) Ending Balance $ 5,175,000 $ 4,930,000 $ 9,616,508 TIF Revenue Bonds Beginning balance $ 6,734,888 $ 5,967,060 $ 5,179,165 Debt issued during the year - - - Principal repaid during the year (767,826) (787,895) (808,488) Ending Balance $ 5,967,076 $ 5,179,165 $ 4,370,677 Total Outstanding Bonds $ 11,142,062 $ 10,109,165 $ 13,987,185 Outstanding Bonds per Capita $ 864.19 $ 784.88 $ 504.66 Outstanding Bonds Major Bond Supported Projects • Bluffton Parkway • Buckwalter Parkway Widening • May River/Bruin Street Streetscape • Water & Sewer Drainage Projects • Law Enforcement Center Town of Bluffton Popular Annual Financial Report FY 2021 Town of Bluffton, South Carolina Established 1825 The General Fund Revenues of the Town including other financing sources* $ 23,089,839 Expenditures of the Town to provide services (17,593,787) Excess Revenues $ 5,496,052 Debt Service Expenditures (332,411) Capital Outlay Expenditures including other financing uses* (38,695) Excess Revenues $ 1,329,713 The table below summarizes the revenue and expenditure actfvity of the Town’s General Fund. Capital expenditures were 19% of total revenues in fiscal year 2021. The Capital Improvements Program Fund Beginning Fund Balance $ 4,798,234 Grants and Other Revenues 2,004,690 Capital Expenditures by Project: Multf-County Commerce Park (401,269) Buck Island Sewer—Phase V (969,024) Calhoun Street Dock (319,927) Historic District Sewer—Phase 1 (368,443) Jason-Able Sewer (106,415) Land Acquisitfon (489,067) Wright Family Park (312,038) Law Enforcement Center (562,675) Riverside Park/Barn Site (102,921) Other Projects (638,170) Funding transfers from other Funds 3,017,447 Ending Fund Balance $ 5,550,422 The Town maintains a separate Capital Improvements Program (CIP) Fund to account for the financial transactfons and resources used by the Town for the acquisitfon or constructfon of major capital projects. The table below lists the CIP projects and related expenditures that the Town incurred during fiscal year 2021. * Other Financing Sources (uses) are increases (decreases) to Fund Balance from Transfers In and (Transfers Out) from and (to) other funds, and capital leases. Established 1825 Town of Bluffton, South Carolina Revenues vs. Expenditures Page 18 The Church at Palmetto Bluff The Stormwater Fund is used to account for stormwater utflity fees collected on property tax bills and restricted for use in the Town’s Stormwater Management Program. Related grants are also recorded in this fund. The table below lists the routfne operatfng and capital expenditures that the Town incurred during fiscal year 2021. The Stormwater Fund Beginning Fund Balance $ 1,962,130 Stormwater Fund Revenue 2,230,862 Personnel & Operating Expenditures -935,940 Capital Outlay -29,550 Funding transfers to other Funds -1,444,144 Ending Fund Balance $ 1,783,358 Town of Bluffton Popular Annual Financial Report FY 2021 Page 19 The fiscal year 2022 financial plan supports our Bluffton Town Vision that states, “Bluffton, the heart of the lowcountry, a town that appreciates the past, focuses on today and is planning together for a greater future.” This financial plan provides the resources and staff for all of our commitments to making Bluffton a better place. The fiscal year 2022 consolidated budget concentrates on the Town of Bluffton Strategic Plan priority Focus Areas noted middle right of this page. The Town adopted a consolidated budget of $40,132,070 which consists of four funds, the General Fund budget of $22,445,764, the Stormwater Utflity Fund budget of $2,259,570, the Capital Improvements Program (CIP) Fund budget of $11,595,468, and the Debt Service Fund budget of $3,831,268. The fiscal year 2022 consolidated budget reflects growth over the prior year of 17.26%, as the effects of the COVID-19 pandemic are eased. The budget keeps the tax millage rate the same at 38.50, which reflects General Fund mills of 36.80 and Debt Service Fund mills of 1.70 for the GO bond for the Law Enforcement Center facility. The fiscal year 2022 revenues include an increase in property taxes for antfcipated growth on assessed values, as the real estate market has seen exceptfonal increases in value. An increase of 9.9% is expected for licenses and permits, which is a conservatfve outlook on business licensing and building permits. Federal and state government grants are scheduled to be 30% higher than FY2020. FY2022 Focus Areas May River and Surrounding Rivers and Watersheds Town Organizatfon Economic Growth Fiscal Sustainability Community Quality of Life Infrastructure Affordable and/or Workforce Housing 2022 Budget Highlights Additfonal copies of this report may be obtained by contactfng: The Town of Bluffton Attn: Finance Department 20 Bridge Street Bluffton, SC 29910 (843)706-4545 In additfon, this report is available at: www.townofbluffton.sc.gov/finance-administration-department/financial-reports Follow us on the following social media sites: Town of Bluffton Popular Annual Financial Report FY 2021 Sunset on The May River