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HomeMy WebLinkAboutColleton County - Public Financial Report - . i - . . . � � � � � . . . . . . . , ■ : - ;��; =. 1 , . . . _ _ . . - ,'� ►,'� . . . . . . , , . . . CULI�TC��T C;C)UI��Y � U i_' i t i � ,�� � c_� I i � ,� ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2022 COUNTY COUNCIL Steven D, Murdaugh Art Williams Phillip M. Taylor, Sr. Gene Whetsell Joseph F. Flowers, MD COUNTY ADMINISTRATOR J. Kevin Griffin FINANCE DIRECTOR Jon Carpenter Prepared by: Finance Department COLLETON COUNTY, SOUTH CAROLINA ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2022 TABLE OF CONTENTS Paqe INTRODUCTORY SECTION Tableof Contents...............................................................................................................................................i—iv Letterof Transmittal .........................................................................................................................................v—xi Certificate of Achievement for Excellence in Financial Reporting...................................................................xii ... rganizational hart.............................................................................................................................................xiii Listof Principal Officials......................................................................................................................................xiv FINANCIAL SECTION IndependentAuditor's Report..........................................................................................................................1 —4 Management's Discussion and Analysis ......................................................................................................5—21 Basic Financial Statements: Government-wide Financial Statements: Statementof Net Position........................................................................................................................22 Statementof Activities.............................................................................................................................23 Fund Financial Statements: Balance Sheet—Governmental Funds.......................................................................................24 and 25 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position ................................................................................................26 Statement of Revenues, Expenditures and Changes in Fund Balances—Governmental Funds..............................................................................................27 and 28 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities............................................29 Statement of Fiduciary Net Position—Custodial Funds.......................................................................30 Statement of Changes in Fiduciary Net Position—Custodial Funds..................................................31 Notes to the Financial Statements.........................................................................................................32—81 Required Supplementary Information: Schedule of Revenues, Expenditures and Changes in Fund Balances— Budget(GAAP Basis) and Actual—General Fund.....................................................................................82 Schedule of Revenues, Expenditures and Changes in Fund Balances— Budget(GAAP Basis) and Actual—Special Revenue Fund......................................................................83 Schedule of Proportionate Share of the Net Pension Liability: South Carolina Retirement System—Primary Government...................................................................84 Police Officers' Retirement System —Primary Government...................................................................84 South Carolina Retirement System— Fire and Rescue Commission ....................................................85 Police Officers' Retirement System— Fire and Rescue Commission....................................................85 South Carolina Retirement System —Memorial Library..........................................................................86 i COLLETON COUNTY, SOUTH CAROLINA ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2022 TABLE OF CONTENTS (CONTINUED) Paqe FINANCIAL SECTION (CONTINUED) Required Supplementary Information (Continued): Schedule of Contributions: South Carolina Retirement System—Primary Government...................................................................87 Police Officers' Retirement System —Primary Government...................................................................87 South Carolina Retirement System— Fire and Rescue Commission ....................................................88 Police Officers' Retirement System— Fire and Rescue Commission....................................................88 South Carolina Retirement System —Memorial Library..........................................................................89 Retirement Plan Assumptions.......................................................................................................................90 OPEB Retirement Plan—Schedule of Changes in the Primary Government's Total OPEB Liability and Related Ratios...........................................................................91 OPEB Retirement Plan—Schedule of Changes in the Fire and Rescue Commission's Total OPEB Liability and Related Ratios...........................................................................92 OPEB Retirement Plan—Schedule of Changes in the Memorial Library's Total OPEB Liability and Related Ratios....................................................................................93 Other Supplementary Information: Combining Balance Sheet— Nonmajor Governmental Funds............................................................94—96 Combining Statement of Revenues, Expenditures and Changes in Fund Balances—Nonmajor Governmental Funds.........................................................................97—99 Schedule of Revenues, Expenditures and Changes in Fund Balance— Budget and Actual Clerk of Court IV Incentives..............................................................................................................100 Clerk of Court IV Unit Costs..............................................................................................................101 VictimWitness Services....................................................................................................................102 Animal Care Control Donations........................................................................................................103 EmergencyTelephone.......................................................................................................................104 CountyHospitality Tax......................................................................................................................105 County Accommodations Tax..........................................................................................................106 DebtService........................................................................................................................................107 Capital Sales Tax Debt Service.........................................................................................................108 DebtService Non-GOB......................................................................................................................109 CapitalProjects Fund........................................................................................................................110 Custodial Funds: Combining Statement of Fiduciary Net Position...................................................................111 and 112 Combining Statement of Changes in Fiduciary Net Position...............................................113 and 114 ii COLLETON COUNTY, SOUTH CAROLINA ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2022 TABLE OF CONTENTS (CONTINUED) Paqe FINANCIAL SECTION (CONTINUED) Other Supplementary Information (Continued): Major Component Units Fire and Rescue Commission: BalanceSheet......................................................................................................................................115 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position......................................................................................................116 Statement of Revenues, Expenditures and Changes in Fund Balances.......................................117 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities.......................................118 Schedule of Revenues, Expenditures and Changes in Fund Balances—Budget and Actual...............................................................................................119 Memorial Library: BalanceSheet......................................................................................................................................120 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position......................................................................................................121 Statement of Revenues, Expenditures and Changes in Fund Balances.......................................122 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities.......................................123 Schedule of Revenues, Expenditures and Changes in Fund Balances— Budgetand Actual.............................................................................................................................124 Uniform Schedule of Court Fines, Assessments, and Surcharges (per ACT 96).....................125 and 126 STATISTICAL SECTION Financial Trends: NetPosition by Component.........................................................................................................................127 Changesin Net Position...............................................................................................................................128 Fund Balances—Governmental Funds.......................................................................................................129 Changes in Fund Balances—Governmental Funds..................................................................................130 Revenue Capacity: Assessed Value and Estimated Actual Value of Taxable Property..........................................................131 Direct and Overlapping Property Tax Rates...............................................................................................132 PrincipalProperty Taxpayers.......................................................................................................................133 Property Tax Levies and Collections ..........................................................................................................134 iii COLLETON COUNTY, SOUTH CAROLINA ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2022 TABLE OF CONTENTS (CONTINUED) Paqe STATISTICAL SECTION (CONTINUED) Debt Capacity Ratios of Outstanding Debt by Type...........................................................................................................135 Ratios of General Bonded Debt Outstanding.............................................................................................136 Direct and Overlapping Governmental Activities Debt .............................................................................137 LegalDebt Margin Information.....................................................................................................................138 Pledged Revenue Coverage.........................................................................................................................139 Demographic and Economic Information: DemographicStatistics.................................................................................................................................140 PrincipalEmployers......................................................................................................................................141 Operating Information: Full-time Equivalent County Government Employers by Function..........................................................142 Operating Indicators by Function................................................................................................................143 Capital Asset Statistics by Function/Program ...........................................................................................144 iv INTRODUCTORY SECTION �� �; � 7 `�'�11:'•J� � � �IIIII���� 1 . 1 �I��II��� � � COLL�TON C()IJN-TY �Ol'�l�ll C.1l:UL1N_1 January 27, 2023 To The Honorable Chairman & Honorable Members of County Council and the Citizens of Colleton County, South Carolina: State law requires that all general purpose local governments publish, within six months of the close of each fiscal year, a complete set of financial statements presented in conformity with generally accepted accounting principles ("GAAP")and audited in accordance with generally accepted accounting standards by a firm of licensed certified public accountants. Pursuant to that requirement, we hereby issue the Annual Comprehensive Financial Report("ACFR")of Colleton County, South Carolina (the "County")for the fiscal year ended June 30, 2022. This report consists of management's representations concerning the finances of the County. Consequently, management assumes full responsibility for the completeness and reliability of all the information presented in this report. To provide a reasonable basis for making these representations, management of the County has established a comprehensive internal control framework, which is designed both to protect the governmenYs assets from loss, theft, or misuse and to compile enough reliable information for the preparation of the County's financial statements in conformity with GAAP. Because the costs of internal controls should not outweigh their benefits, the County's comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. The County's financial statements have been audited by Mauldin & Jenkins LLC, a firm of licensed certified public accountants. The goal of the independent audit was to provide reasonable assurance that the financial statements of the County for the fiscal year ended June 30, 2022, are free of material misstatement. The independent audit involves examining on a test basis, evidence supporting the amounts and disclosures in the financial statement presentation; assessing the accounting principles used and significant estimates made by management and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion that the County's financial statements for the fiscal year ended June 30, 2022, are fairly presented in conformity with GAAP. The independent auditor's report is presented as the first component of the financial section of this report. GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management's Discussion and Analysis ("MD&A"). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The County's MD&A can be found immediately following the report of the independent auditors. Profile of the Government The County was founded in 1682 through a land grant to Sir John Colleton by King Charles II, of England and was one of the original proprietary counties in the present-day Carolinas. It was officially formed in 1798 and is in the southeastern part of South Carolina bordering on the Atlantic Ocean.The County is in the Lowcountry region of South Carolina, and it is located midway between Charleston, South Carolina and Savanah, Georgia on the I-95 corridor. The County occupies a large land area that is 1,056.48 square miles and has a population of roughly 38,600. v The County is empowered to levy a property tax on both real and personal properties located within its boundaries. The County operates under the Council-Administrator form of government. Policy-making and legislative authority are vested in a governing Council consisting of five members. In addition to policy-making and legislative authority that are vested with the Council, they also have the responsibility to pass ordinances, adopt the budget, appoint committees, and hire both the County Administrator and County Attorney. The County Administrator is responsible for the administration of all the departments of the County government which County Council has the authority to control. The powers and duties of the County Administrator include: (1) executing policies, directives, and legislative actions of County Council; (2) directing operational and administrative activities of the County; (3) preparing annual budgets; (4)supervising the expenditure of funds; and (5)employing and discharging personnel.The five Council members are each elected from residence districts or at-large for four-year staggered terms, with three Council members elected every two years, and two elected every two years. County elections occur in the fall of even-numbered years. The County provides a full range of services including: (1) Public Safety (including law enforcement, County-wide emergency dispatch services and detention facilities). (2) Fire and Rescue (including emergency preparedness, emergency medical services and fire protection in the unincorporated areas of the County through 34 fire stations). (3) Animal and Environmental Control. (4) Public Works (including street and drainage maintenance). (5) Solid Waste Management(waste disposal and recycling at County landfill and 15 convenience sites). (6) Judicial Administration (including prosecuting and public defender legal services, criminal, civil, probate and family court administration). (7) Tax Collection and Disbursal. (8) Libraries. (9) Recreation (Recreation Center, Community Centers, Dogwood Hills Golf Course and Restaurant, Colleton County Museum and Commercial Kitchen, Colleton Civic Center and Colleton County Farmers Market). (10) Planning and Zoning Administration. (11) Veterans Assistance. The annual budget serves as the foundation for the County's financial planning and control. All departments of the County are required to submit requests for appropriations to administration during the spring of each year.The County Administrator uses these requests as the starting point for developing a proposed budget. The County Administrator then presents this proposed budget to the Council for review during May of each year. The Council is required to hold a public hearing on the proposed budget and to adopt a final budget prior to June 30th, the close of the County's fiscal year. The appropriated budget is prepared by fund and department. Budgetary control (that is the level at which expenditures cannot legally exceed the appropriated amount) is maintained by the Administrator at the fund level and may be amended as necessary during the fiscal year. Budget-to-actual comparisons are provided in the report for each individual department by governmental fund for which an appropriated annual budget has been adopted. For the general fund,this comparison is presented as part of the required supplementary information for governmental funds. Factors Affecting Financial Condition The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the County operates. vi Economic Factors The County's fiscal year 2022 assessable property tax base is$205, 536, 66, which represented growth of 6.4%from 2021's assessable property tax base of$193,167,536. This growth in assessed values was driven by growth in real property, which increased by 9.2%, as a result of the continued high volume of home sales (up 9.4% from the prior year) and home refinancing activity due to mortgage rates remaining near historical lows. Home refinancing has led residents to undertake existing home renovations as seen in the over 1,765 building permits issued that total valuation of$61.8 million. Personal property assessed values remained flat from the prior year when we saw significant growth based on previously announced business expansions as well as new businesses beginning operations in the County. As reported by the U.S. Census Bureau, median household income for the County in 2022 was forecasted to increase slightly from the prior year amount of$36,324 to $37,748. The County continues to be roughly 65% of the median household income of the State of South Carolina that was reported at$58,234. The County's unemployment level has returned to pre-pandemic levels with unemployment on June 30, 2022 at 3.6%. Unemployment in the County was slightly higher than the rate for South Carolina of 3.2% and significantly lower than the U.S. rate of 7.0%. The County continued to see strong growth in retail sales, as seen in the growth of sales tax which increased by over 8% for the year and drove double digit increases in the collection of the 1% local option taxes and the 1% capital projects taxes. In addition to the growth in retail sales, the County saw a strong rebound in tourism with both the County share of State Accommodations Taxes and Local Accommodations Taxes growing by over 20°/o from the prior year. The U.S. Census Bureau forecasted the population for the County to be 38,462 as compared to the April 2020 census of 38,604, which represents less than a 0.5% decrease in population. County population continues to be primarily located within the Walterboro City Census Division ("CCD") as well as near the other CCDs within the County, including the Hendersonville CCD and Cottageville CCD. Given the stagnant population, the median age of the County dipped slightly to 42.3 which is 6.5°/o higher than median age in South Carolina of 39.7 and in the United States of 38.5. Housing in the County continues to be dominated with owner occupied units with over 75% as compared to the State of South Carolina average of 70% based on the most recently available data. Median home values have increased to $207,614, which is up 13% from the previously reported amount of$183,035 though it is still lower than the State of South Carolina average of$372,800, which is up 18.4% from the prior year. A large part of the County is served with easy access to Interstate 95 with five interchanges that include exits 42, 53, 57,62 and 68. In addition to this major interstate artery,the County has direct access to both Highway 17 and Highway 17A that provide connection to the cities and towns of Charleston, Beaufort, Savannah, and Summerville. The City of Walterboro is situated between exits 53 and 57 off Interstate 95 and is currently finishing up the infrastructure work related to the final phase of the I-95 business loop improvement project that is funded with a portion of the proceeds from the Capital Project Sales Tax referendum that voters approved in November 2014. This project is geared to improve the access of visitors into the downtown area from I-95 as well as from SC Highways 17A and 64 that connect to SC Highway 17. Economic Development Goals and Strategies With international pandemic travel restrictions lifted and continued strong national consumer demand, prospect activity has been strong through fiscal year 2021-2022. As noted above, given the low unemployment rate of the County at June 30th of 3.6% that are persisting, and with a comparatively small labor force, we point to our population of"out- commuters" who leave the County every morning to drive to (presumably better) jobs in Charleston, Berkeley, Dorchester, Beaufort and other neighboring counties, most times commuting for over an hour. The out-commuter number is presently over 10,000. Companies that are willing to pay well above average wages,with very good benefit packages, should be able to capture some of those out-commuters under the premise that commute times could be cut for similar or better wages and benefits. An important factor with being able to attract companies that are willing to pay above average wages is having an attractive site, at a competitive per acre price for company decision makers to consider, and that is what the County has been working on over the recent few years. Investments in financing the purchase of the H&B Railroad (now known as the 42-mile long Salkehatchie Railroad), acquisition of the 870-acre vii Colleton Mega Site("CMS")and optioning an adjoining 600 acres, underwriting the cost of engineering and permitting to construct the CMS sewer line, conducting due diligence and making site improvements to CMS, Colleton Venture Park and Colleton County Commerce Center are hallmarks of the County's efforts to set the stage to attract game- changer scale projects to the County. We expected companies investing in the hundreds of millions of dollars to locate on these sites, and the first such company just announced their plans to locate on 90 acres at the Colleton Industrial Campus. Pomega, a subsidiary of Kontrolmatic, announced on December 8, 2022 that they will invest$279 million and hire over 500 employees to build an electrical grid-scale battery plant. Their electrical storage batteries are essential to support renewable electric generation and to stabilize the power grid. Pomega is expected to break ground in the spring of 2023. It is these types of investments that we have been preparing our sites to attract, and as Pomega and other large-scale manufacturers locate in the County, it can be expected that national home builders, population growth, services and retail companies will follow. In addition to the Pomega win, we landed two other new manufacturing companies and one distribution company. Trison Wells, a contract blending and bottling company, focused on household cleaning products, announced that they plan to invest$1.2 million and to create 35 jobs. A larger win came from Gehl Foods Southeast. Gehl acquired the County's 100,000 square foot speculative building and plans to invest $46 million and create 106 new jobs to manufacture shelf-stable dairy products. Lastly, Boise Cascade announced their plans to build a lumber distribution center at the Stokes Tract. Their investment will top$9 million and will cause the creation of 30 jobs. However, even more exciting is that this project will mark the first company that the County has recruited that will use the Salkehatchie Railroad, boosting our return on investment in saving the railroad and helping to pay off the financing with each railcar that comes to their site. We will continue to improve our large sites and begin construction on a new speculative building in the new year. Much of this work will hinge on our ability to secure grants and other resources that are essential to these efforts. Recreation and Culture The County continues to offer some of the best opportunities for residents and visitors to enjoy both indoor and outdoor activities. The County's recreation center, known as the ACE Basin Sports Complex, continues to be a prime venue in the area as it hosts numerous baseball and softball tournaments. During fiscal year 2022, the recreation center hosted a busy spring youth sports season with over 425 children registered to play baseball and softball. The gym and fitness center continue to be a popular recreation venue for residents with revenue up over 20% and monthly check-ins averaging over 1,987. Planning is continuing on the development of a miracle league field (inclusive ball field)at the recreation center that will be funded with funds allocated in the State budget. The County-owned Dogwood Hills Golf Course and Restaurant did see a mixed year, with the golf course seeing a drop in activity while the restaurant benefited from some events that had been postponed due to the pandemic. The golf course underwent a number of course renovations which led to some periodic hole closures. Though these renovations led to a drop in revenue by 12°/o, the renovations were necessary and should reduce the cost of course maintenance in future years. All renovation work was completed in the spring of 2022, which should lead to a strong fiscal year 2023 for the golf course. The restaurant did continue to see strong growth in both dine-in services and event (catering) services. Dine-in service saw a 16°/o growth in sales, though part of this growth (10°/o) was due to increasing prices in an attempt to keep pace with rising food costs. Catering services did not see the double digit revenue growth that was seen in dine-in services,though we did see steady growth of over 3.5% in number of events. Given the continued rising prices for food as well as difficultly in staffing, the County did make the decision to close the restaurant for dine-in services in August 2022, though the venue is still available for catered functions. viii Colleton County Commercial Kitchen, Museum and Farmers Market all continue to grow in popularity with various local vendors that utilize the commercial kitchen space in development of their products as well as the centrally located museum and farmers' market retail venues that are continuing to see strong attendance. In addition to vendors, the Commercial Kitchen is heavily utilized by the County's Summer Feeding and After-School Programs, which are providing over 8,000 meals per day that are delivered via centralized sites. Planning is still ongoing for renovations of a separate site that will support the feeding program so that the Commercial Kitchen will be able to offer additional availability to local vendors. Museum staff is planning to offer more events and festivals during the upcoming year, which will allow our food and other vendors retail opportunities. The Colleton Civic Center was renovated as one of the projects under the voter-approved Capital Project Sales Tax and has been busy hosting a variety of community events, including film festivals and local artist concerts. Colleton County Memorial Library continues to be busy with over 51,000 in-person visits to all locations. In addition to the main library in Walterboro, the library has branches in both Edisto Beach and Cottageville that are open three days a week as well as continuing to operate the book mobile that provides service throughout the County. One of the most popular services offered by the library is computer usage, as there were over 16,750 sessions during the past fiscal year. In addition, the library provides wireless devices for checkout that were utilized over 5,000 times during the past year. The previous two years had seen COVID-19 impacts to some of the library classes and programs. This fiscal year,the library was able to resume a pre-pandemic schedule and held over 500 different classes and programs that saw a combined attendance of over 13,000. In addition to all the opportunities sponsored through County venues, the area boasts easy access to many of South Carolina's best eco-tourism spots, including the ACE Basin, the Walterboro Wildlife Sanctuary, Edisto State Park, Colleton State Park, and several other South Carolina Department of Natural Resources wildlife management areas. Long-Term Financial Planning The County closed fiscal year 2022 with a continued strong financial performance and continues to hold ratings of Aa3 with Moody's Investor Services and AA-with Standard and Poor's Rating Services. Both Moody's and Standard and Poor's ratings were reaffirmed in February 2022 as part of the general obligation bonds and fire protection service general obligation bonds that were issued in March 2022. The ratings cited the County's below average resident income indices offset by solid financial position that is supported by improved reserves and growth in major operating revenues and an above average, yet manageable, debt and pension burden. Total fund balance as of June 30, 2022 in the General Fund was $10,780,672 of which $9,705,545 was unassigned which represents an $853,010 increase in total fund balance when compared to total fund balance as of June 30, 2021 of$9,927,226, of which $9,131,378 was unassigned. These total fund balance figures represent 31% and 31% of total expenditures, respectively. The County budget ordinance requires the total general fund balance to be a minimum of 20% of total expenditures. An additional reference point to the strength of the County's general fund balance position, The Government Finance Officers Association of the United States and Canada ("GFOA") recommends at a minimum that a general purpose government maintain an unrestricted fund balance of no less than two months operating expenditures as outlined in its September 2015 Appropriate Level of Unrestricted Fund Balance in the General Fund "Best Practice" bulletin and currently the County has roughly 101 days in its General Fund unassigned fund balance. Relevant Financial Policies The County's financial processes are guided by formal and informal policies that have been designed to provide a consistent and measurable framework for County decision makers. ix The County, 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, 2022, the County's budget was balanced. The County maintains an open budget process by providing for input from County administration, department directors, elected officials, community agencies, County municipal governments and the public as budget priorities and funding is determined for the upcoming year. The County constantly updates the various forecasting models used in both revenue and expenditure forecasting to reduce the risk of miscalculation. These models do utilize a number of factors that could contribute to a change in a particular revenue or expenditure. For example, building permits would be forecasted based on any planned developments, historical permit volume of existing home improvements and known economic commercial development. In contrast, building repairs and maintenance would be forecasted based on age and condition rating applied to a particular building and forecasted change in the consumer price index that would impact materials and contract labor costs. In all cases, the starting point is to evaluate prior year actual and trends and to then apply any positive or negative adjustment related to the appropriate forecast model. The overall goal of revenue forecasting is to minimize the risk of overstating or understating revenues that could lead to overspending available resources or arbitrarily restricting expenditures and thus limiting services to residents. Major Initiatives The remaining projects as approved by voters under the Penny Capital Project Sales Tax are ongoing, including the County Taxpayer Service Center, which will house the Auditor, Treasurer and Delinquent Tax offices. Construction has been slowed due to delays in receiving materials, though construction was completed and the center began serving residents in August 2022. In addition, work is ongoing on the second phase of the City of Walterboro's Interstate 95 business loop. This project was undertaken to rehab and provide appeal to the Jefferies Blvd/Bells Highway span between exits 53 and 57 on I-95 to attract more visitors and tourists to the historic downtown of Walterboro. On November 8,2022,voters approved the reissuance of the Penny Capital Project Sales Tax for the next eight years. The tax is forecasted to generate over$40 million and will go towards the following projects: 1. Colleton County Animal Services Facility $3,330,550 2. Veterans Park 988,200 3. Town of Smoaks—Johnsville/Smoaks Community Center 937,000 4. Colleton County Emergency Operations Center 2,719,185 5. Colleton County Recreation Center Additions (Gym and Activity Rooms) 2,953,575 6. Colleton County Recreation Center Additions (Pool) 2,029,690 7. Town of Cottageville— Park Expansion 455,000 8. Town of Williams—Water Infrastructure Improvements 250,000 9. City of Walterboro— I-95 Business Loop Phase 3 6,802,045 10. Edisto Municipal Emergency Operations Center and Town Hall Complex 10,000,000 11. City of Walterboro— Ireland Creek Greenway Park and Stream Restoration 9,889,816 Total Amount of Sales and Use Tax Proceeds $40,355,061 The referendum did allow for the County to issue general obligation bonds in an amount not to exceed $40,355,061, with the proceeds of such bonds applied to defray the costs of the above purposes. The County expects to issue the bond during fiscal year 2023. x In November 2021, the County closed on a $5.5 million lease purchase with South State Bank, N.A. after conducting a request for proposal that saw eleven very competitive responses. The financing with South State is a five-year lease purchase with an interest cost of 1.0%. The proceeds of the lease purchase will be used to purchase Fire/Rescue ambulances (4) and fire trucks (4), Roads and Bridges motor graders (3) and dump trucks (2), Solid Waste landfill compactor(1), backhoe (1), and roll-off trucks (2). The trucks and equipment have been ordered and will be received during fiscal year 2023 and 2024, due to some delays in some manufacturing processes. The County has continued to move from purchasing fleet vehicles, including Sheriff vehicles, to a leased vehicle. As of June 30, 2022, roughly 100 of the 115 County fleet vehicles have been moved to a leased vehicle. Due to record sales prices of used vehicles over the last two years, the County has been able to early cycle a number of its existing leased vehicles for a new leased vehicle. This early cycle process leads to a sales price that can provide $10,000- $20,000 in equity. The County uses this equity to reduce the lease price of the new vehicle to an amount that is below the leased price of the older leased vehicle that was early cycled. This opportunity has allowed the County to reduce our annual lease cost by over 10% while maintaining a safe and more fuel-efficient fleet. Awards and Acknowledgments GFOA awards a Certificate of Achievement in Financial Reporting. To be awarded a Certificate of Achievement, a governmental unit must publish an easily readable and efficiently organized ACFR, the contents of which conform to program standards. Such reports must satisfy both generally accepted accounting principles and applicable legal requirements. Since 2014, the County has been awarded a Certificate of Achievement for Excellence in Financial Reporting award. A Certificate of Achievement is valid for a period of one year only. We believe our current report will conform to certificate of achievement program requirements, and we are submitting it to the GFOA to determine its eligibility for a certificate. The preparation of the ACFR would not have been possible without the assistance of the Finance Department staff, the Treasurer's office and several other County departments and staff. The arduous work and dedication of these individuals significantly contributed to the completion of this document. Moreover, the support and leadership of the County Council has been instrumental in the development of this project. Sincerely, :—� , �� � '�� ►-� J. Kevin Griffin Jon Carpenter County Administrator Finance Director xi � Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to Colleton County South Carolina For its Annual Comprehensive Financial Report For the Fiscal Year Ended June 30, 2021 C�i�r,�:o a�w.. P• 7J�e►u�-�-� Executive Director/CEO xii COLLETON COUNTY VOTERS COLLETON COUNTY GOVERNMENT BOARD OF CONSTITUTIONAL& GENERAL LEGISLATIVE EDUCATION ASSEMBLY CREATED OFFICES COLLETON COUNTY COUNCIL 1UDICIAL DELEGATION . � � � � . . . • : � � • � � • •� � � �• � � • • � � . � � . . � � . � -. �- � . . • • • • • • • , � . � . � . � . • • :� � • � • • ' • ' COUNTY ADMINISTRATOR ' • ' " ' " �.• � . � • � . . Chief Financial Administrative Services Q Director � . � Officer � � � Public Relations ` ' Accounts Payable/Payroll Governmental Affairs . � . . Accounting/Audits Insurance Services Debt Management Legal LlalSon '• Fixed Assets/Reporting � • •• Purchasing County En�ineer •Vehicle Repair •a options Project Management Maintenance •Pickup and Capital Projects C'�C � •Vehicle Protection •Ordinance � � • Purchasing Enforcement � '� •Project •Building � � •Land Use/Tax Management •Emergency � •� GENERAL COUNTY OPERATIONS Maintenance � Determinations •Custodial •Industrial •Re-Appraisal Services parks •Transfer •Landings •Project . • __ -- . , �� �, , Station � � •Grounds Recruiting •Convenience � Maintenance •Expansion � � � •Road Repair Centers &Retention •Fire Response " • " Maintenance •Paved Road 'C&D Landfill •Delin uent Services •IS Plan q •Workforce •Land Use • O erations •Personnel � Dev. •Ambulatory •IS Operations � p Plannin Repairs Property Tax Services &Installations Community g� •Benefits Collection �-'• •Partnerships •Rescue •LAN/WAN Activities Administration •Title Vl •Mobile Home Services Maintenance •Farmers •Flood Plain Decal •Plats � ' � •Fire Prevention •IP Phone Market Administration •Deeds - - •Emergency System •Commercial •Building •Recording •Parks Management •GISSystem Kitchen Inspection �_ •Safety •Fundraising •Nuisance •Active Enforcement � , � Recreation •Workers' ■ � •Fitness Comp. ' ��'��'ID� ' •GolfCourse •i''��i ��'�'�����h' ' COLL�TON COUNTY X��� COLLETON COUNTY, SOUTH CAROLINA LIST OF PRINCIPAL OFFICIALS JUNE 30, 2022 County Administrator..................................................................................................................... J. Kevin Griffin Chairman..................................................................................................................................Steven D. Murdaugh CouncilMember....................................................................................................................................Art Williams CouncilMember........................................................................................................................Phillip M. Taylor Sr. CouncilMember................................................................................................................................Gene Whetsell Council Member..................................................................................................................Joseph F. Flowers, MD Finance Director.................................................................................................................................Jon Carpenter Auditor.....................................................................................................................................................Jeff Slocum Clerkof Court...................................................................................................................................Rebecca H. Hill Treasurer................................................................................................................................................Becky S. Hill Sheriff........................................................................................................................................................Guerry Hill Coroner........................................................................................................................................Richard M. Harvey ProbateJudge..................................................................................................................................Arthur C. Utsey ChiefMagistrate.............................................................................................................................Harriet A. Bonds xiv FINANCIAL SECTION AULDIN & ENKINS CPAs & ADVISORS INDEPENDENT AUDITOR'S REPORT County Council of Colleton County Colleton County, South Carolina Walterboro, South Carolina Report on the Audit of the Financial Statements Opinions We have audited the accompanying financial statements of the governmental activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of Colleton County, South Carolina (the "County"), as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the County's basic financial statements as listed in the table of contents. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the County, as of June 30, 2022, 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. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America ("GAAS") and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States ("Government Auditing Standards'�. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the County and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Change in Accounting Principle As discussed in Notes 1, 6, and 7 to the financial statements, the County implemented Governmental Accounting Standards Board ("GASB") Statement No. 87, Leases, as of July 1, 2021. Our opinions are not modified with respect to this matter. 6001 CHATHAM CENTER DRiVE,SUITE 250•SAVANNAH,GEORGTA 31405•912-232-1622•www.mjcpa.com MEMBERS OF THE AMERICANINSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for 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. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the County's ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and, therefore, is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit 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 County's internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the County's ability to continue as a going concern for a reasonable period of time. 2 We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit. 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 of the General Fund, the Budgetary Comparison Schedule of the Special Revenue Fund, the Schedules of the Proportionate Share of the Net Pension Liability, the Schedules of Pension Contributions, and the Schedules of Change in Total OPEB Liability and Related Ratios as listed in the table of contents be presented to supplement the basic financial statements. Such information is the responsibility of management and, 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 Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the County's basic financial statements. The combining and individual nonmajor fund financial statements and schedules, combining statement of fiduciary net position and combining statement of changes in fiduciary net position, the individual financial statements and schedules of the County's discretely presented component units, and the Uniform Schedule of Court Fines, Assessments, and Surcharges (per Act 96), as required by the State of South Carolina (collectively referred to as the "Other Supplementary Information" 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. Such 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. The 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 Other Supplementary Information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. 3 Other Information Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections, but does not include the basic financial statements and our auditor's report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. Other Reporting Required by Government Auditing Standards In accordance with GovernmentAuditing Standards, we have also issued our report dated January 27, 2023 on our consideration of the County'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 solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the County's 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 County's internal control over financial reporting and compliance. ���� � , ��.°c Savannah, Georgia January 27, 2023 4 COLLETON COUNTY, SOUTH CAROLINA MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2022 As management of Colleton County, South Carolina, (the "County") we offer readers of the County's financial statements this narrative overview and analysis of the financial activities of the County for the fiscal year ended June 30, 2022. Please read this information in conjunction with the detail statements and notes to the financial statements to achieve a better understanding of the County's financial performance for the fiscal year. Financial Highlights • The assets plus deferred outflows of resources of the County exceed its liabilities plus deferred inflows of resources at the close of the most recent fiscal year by$41,839,303 (net position). The County's net position increased by $5,770,891 due to growth in general revenues (property taxes and other local taxes) of $2.8 million, charges for services (planning and development fees and recording fees) of $654 thousand and operating grants (Local Fiscal Recovery Funds)of$1.7 million. • At the close of the current fiscal year, the County's governmental funds reported combined ending fund balances of $33,510,412, an increase of $2,319,795. This increase in fund balance was primarily due to an increase in the General fund of $853 thousand and Capital Projects fund of $1.9 million offset by a $263 thousand reduction in nonomajor funds. • Governmental funds reported a total combined revenues of $61.9 million which represents growth of $4.71 million and 8.2%from the prior year.The growth was driven by tax revenues which increased$1.46 million and 4.4% (assessed values growth and return of pre-pandemic travel and spending), Intergovernmental revenues (Treasury fiscal recovery funds)which increased $2.84 million and 17.7% and Fees and Fines revenues which increased $460 thousand and 6.5% (increase in planning and development fee structure). • Governmental funds reported total combined expenditures of $68.3 million, which is an increase of $13.76 million and 25.2%from the prior year.The total increase in expenditures was made of a$3.16 million in general, a$9.54 million in capital projects and a $3.64 million increase in nonmajor that were offset by a ($2.61 million) decrease in special revenue. The details of these changes are included in the governmental funds expenses section below. Overview of the Financial Statements This Management's Discussion and Analysis ("MD&A") is intended to serve as an introduction to the County's basic financial statements,which are comprised of three components: 1. Government-wide financial statements 2. Fund financial statements 3. Notes to the financial statements Government-wide Financial Statements—Government-wide financial statements are designed to provide readers with a broad overview of the financial position of the County and are like financial statements issued in the private sector. They include a statement of net position and a statement of activities. These statements appear on pages 22 and 23 of this report. 5 MANAGEMENT'S DISCUSSION AND ANALYSIS Component units, which are other governmental units over which the County can exercise influence and/or may be obligated to provide financial subsidy, are presented as a separate column in the government-wide statements and as combining statements of activities in the fund financial statements.The focus of the statements is clearly on the primary government and the presentation allows the reader to address the relative relationship with the component units to the primary government. The nonmajor component units to the primary government are the Colleton County Memorial Library, the Colleton County Fire and Rescue Commission, and Pillars4Hope. The statement of net position shows the County's assets less its liabilities on June 30, 2022. The difference between these assets and liabilities is reported as net position. Changes in net position over time may be helpful in indicating an improving or deteriorating financial position. The statement of activities follows the statement of net position and presents information showing how the net position changed during the fiscal year. The statement presents all underlying events,which give rise to the change, regardless of the timing of related cash flows. Some included items, such as accounts payable or earned but unused vacation leave, will produce changes in cash in a future fiscal period. This report includes all major and nonmajor funds of the County. Both statements attempt to distinguish functions of the County that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The County has no business- type activities. Governmental activities reported in the statements include general government, judicial, public safety, roads and bridges, solid waste, recreation and culture, health and human services, economic development and intergovernmental. Fund Financial Statements—A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. Like other state and local governments, the County uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.All funds of the County can be divided into two categories: governmental and fiduciary. Governmental Funds—Governmental funds, presented on pages 24—28, essentially account for the same functions as those reported under the government-wide statement of net position and statement of activities. However, this set of financial statements focuses on events that produce near-term inflows and outflows of available resources as well as on the balance available at the end of the fiscal year and is a narrower focus than the government-wide financial statements. Such information may be useful in evaluating the County's near-term financing requirements and available resources. By comparing functions between the two sets of statements for governmental funds and governmental activities, readers may better understand the long-term impact of the governmenYs near-term financing decisions. Both the governmental funds balance sheet and the governmental funds statement of revenues, expenditures and changes in fund balances provide a reconciliation to facilitate this comparison. 6 MANAGEMENT'S DISCUSSION AND ANALYSIS Governmental funds individually presented in the County's statements include five major funds: the General Fund, the Special Revenue Fund, the Coronavirus Local Fiscal Recovery Fund, the Capital Projects Fund, and the Capital Sales Tax Debt Service Fund. Data from the other funds are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor funds is provided in the form of combining statements elsewhere in this report. Custodial Funds — Custodial funds are used to account for resources held for the benefit of parties outside the government. Custodial funds are not reflected in the government-wide financial statement because the resources of those funds are not available to support the County's own programs. The single aggregated presentation of custodial fund financial statements can be found on page 30 and 31 of this report. Individual fund data for each of these nonmajor funds is provided in the form of combining statements elsewhere in this report. Notes to the Financial Statements—The notes provide additional information that is essential to a full understanding of the data provided in both the government-wide and fund financial statements. Notes to the financial statements are presented on pages 32—81 of this report. Other Information—In addition to the basic financial statements and the accompanying notes,this report also presents certain required supplementary information concerning the County's budget on pages 82 and 83. Historical pension and OPEB information is located on pages 84—93 for the County and its component units. The combining statements referred to earlier in connection with nonmajor governmental and custodial funds are presented immediately following the required supplementary information and other budgetary schedules. Combining and individual fund statements and schedules for nonmajor governmental funds can be found on pages 94 — 110 of this report and combining fund statements for custodial funds can be found on pages 115— 123. Component unit financial statements are presented for the Memorial Library and the Fire and Rescue Commission on pages 96 to 106 of this report. Government-wide Financial Analysis As noted earlier, over time, net position may serve as a useful indicator of a government's financial position. The government-wide statements encompass all the funds of the County, notjust the general operational fund.The County's total assets plus deferred outflows of resources exceeded liabilities plus deferred inflows of resources by$41,839,303 on June 30, 2022, as compared to restated net total position of$36,068,412 on June 30, 2021. 7 MANAGEMENT'S DISCUSSION AND ANALYSIS COLLETON COUNTY, SOUTH CAROLINA NET POSITION Governmental Activities 2022 2021 Assets Current and other assets $ 50,311,576 $ 41,214,246 Capital assets 60,042,383 57,568,095 Total assets 110,353,959 98,782,341 Deferred Outflows of Resources 7,678,032 7,783,917 Liabilities Long-term liabilities 58,411,162 61,060,259 Other liabilities 12,128,203 8,627,050 Total liabilities 70,539,365 69,687,309 Deferred Inflows of Resources 5,653,323 810,357 Net Position Net investment in capital assets 42,262,227 43,815,008 Fund balance Restricted 10,118,153 10,571,627 Unrestricted (10,541,077) (18,318,223) Change in Accounting Principle - - Total net position, as restated $ 41,839,303 $ 36,068,412 Total assets did increase by $11,571,618 with most of this change coming from the increase in investments of $8,074,436, $2,831,961 in lease assets, net of accumulated amortization and $2,474,288 in total capital assets, net of depreciation that was offset by a decrease in cash and cash equivalents of ($3,206,326). The increase in investments was due to the Treasurer investing $8 million of existing cash and cash equivalents into certificate of deposits that have maturity schedules based forecasted cash flow needs. Moving these funds from cash and cash equivalents did lead to a decrease in cash and cash equivalents that was offset by the receipt of the remaining $3.7 million in Treasury Local Fiscal Recovery funds. Lease assets, net of accumulated amortization of $2,831,961 represents the adoption of GASB 87 and the County's fleet vehicle lease program. The increase in capital assets was due to the $6.67 million in asset additions for the year offset by $3.8 million in depreciation expense. More detail information about the asset additions can be found below in the capital assets section. Total deferred outflows decreased slightly by($105,885). Deferred outflows for pension did decrease by ($1,384,619)and was due to actual earnings exceeding projected earnings on pension plan assets. OPEB deferred outflows did increase by$1,278,374 and were due to an increase in headcount, an increase in per capita claims along with a decrease in the discount rate. Total liabilities did increase by$852,056 with most of the change due to the increase in other liabilities of$3,501,153 that was offset by a decrease in long-term liabilities of ($2,649,097). The increase in other liabilities was due to a $549,876 increase in payroll liabilities based on timing of pay period end dates as well as pay adjustments effective with the first pay date in the new fiscal year. In addition, unearned revenue increased by$2,768,970 based on unspent state appropriations for specific County projects of $1,801,220 and unspent Treasury local recovery funds of $4,307,567. The decrease in long-term debt was the result of a reduction in our net pension liability and other scheduled bond payments that were offset by the issuance of a $5.5 million lease financing agreement. Deferred inflows increased by $4,842,786 based on deferred outflows related to pension. The change in deferred outflows related to pension was due to actual earnings exceeding projected earnings on pension plan assets. 8 MANAGEMENT'S DISCUSSION AND ANALYSIS By far the largest portion of the County net position in the amount of$42,262,227(101°/o)represents its net investment in capital assets (e.g., land, buildings, machinery, and equipment)for governmental activities plus net value of leased assets, less any related debt used to acquire those assets that is still outstanding on June 30,2022 plus any remaining bond proceeds on hand, as compared to$43,815,008 (121.5%)on June 30, 2021. The decrease of($1,552,781)was primarily the result of a net increase of$2,474,287 in capital assets as the supply chain issues that had hampered projects in the prior year improved and thus lead to a decrease of ($4,812,783) in the amount of unspent bond proceeds in hand. Although the County's investment in capital assets is reported net of related debt, it should be noted the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate those liabilities. On June 30, 2022, the County had a net position restricted for debt service in the amount of $7,035,132 (16.8°/o), which was a decrease of ($603,931) from June 30, 2021. This decrease was due to transferring of$2,013,645 of excess capital projects sales tax collections to the capital projects fund to fund final capital projects sales tax projects that are seeing price increases for materials and labor. Overall debt service property tax collections increased 5.6°/o and the one cent capital project sales tax increased by 11.2% which partially offset the transfer of excess collections. The restricted portion of net position of $10,118,153 (24.2%) represents the balances of net position that have restricted resources and are not available to fund other commitments.The restricted net position relates to solid waste landfill post-closure, debt service, economic development, emergency and law enforcement services, and other revenue sources that are earmarked for specific County functions. The decrease of($453,474)from June 30, 2021, was a result of the decrease of($603,931)discussed above related to usage of excess prior year capital projects debt service collections and decreases in court administration, law enforcement and local hospitality tax. The decrease in court administration net position was based on increased operating expenses related to the court system operations returning to a pre-COVID schedule. The decrease in law enforcement net position was due to additional expenses related to hiring a second victim advocate in the Sheriff's office. The decrease in local hospitality tax net position (other purposes)was the result of implementing a County-wide contract litter pick-up service to combat the growing litter problem throughout the County. These decreases in net position were offset by increases in the 14th Circuit Solicitor net position (other purposes) based on resuming pre-COVID court schedule and in Emergency Telephone net position (emergency services) based on an increase in tariff collections. The remaining net position represents a deficit balance of($10,541,077) (-25.2%) in unrestricted net position which is an increase of $7,777,146 from June 30, 2021. This increase was the result of the overall net position increase $5,770,891 and when combined with the decrease of ($1,552,781) in our net investment in capital assets and the decrease in restricted net position of ($453,474). The increase in our unrestricted net position is the result of strong growth in revenues as represented in the overall increase in cash, cash equivalents and investments that partially offset an increase in liabilities, primarily unearned revenues. Governmental Activities The County's total net position increased $5,770,891 in 2022 compared to an increase of$2,950,916 in 2021. 9 MANAGEMENT'S DISCUSSION AND ANALYSIS COLLETON COUNTY, SOUTH CAROLINA CHANGES IN NET POSITION 2022 2021 Revenues Program Revenues Charges for services $ 8,809,303 $ 8,155,558 Operating grants and contributions 15,847,272 14,117,874 Capital grants and contributions 1,284,059 940,550 General Revenues Property taxes 30,826,620 28,560,290 Other taxes 4,079,010 3,592,375 Grants and contributions not restricted to specific programs 1,683,290 1,701,639 Miscellaneous income 48,519 327,711 Total Revenues 62,578,073 57,395,997 Expenses Governmental Activities: General government 11,224,373 10,882,562 Judical 6,773,058 7,005,856 Public safety 15,965,105 15,683,920 Roads and bridges 2,988,544 6,192,937 Solid waste 6,717,388 4,403,242 Recreation and culture 4,925,318 4,684,331 Health and human services 3,034,859 3,738,071 Economic development 4,653,832 1,194,174 Interest and fiscal charges 524,705 659,988 Total Expenses 56,807,182 54,445,081 Change in Net Position 5,770,891 2,950,916 Net Position, beginning of year, as restated 36,068,412 33,117,496 Net Position, end of year 41,839,303 36,068,412 Net position at the end of the fiscal year was $41,839,303, increasing by $5,770,891 and 16%. This increase in net position was driven by growth in total revenues of$5,182,076 that was offset by growth in expenses of$2,362,101. The increase in revenues was due to the $2,266,330 growth in property taxes, the $1,729,398 growth in operating grants and contributions and the $653,745 growth in charges for services. Additional details on these revenue changes can be found under the Revenue by Source — Governmental Activities chart on the following page. The growth in expenses was due to the$341,811 increase in General Government,the$281,185 increase in Public Safety, the $2,314,146 increase in Solid Waste and $3,459,658 in Economic Development offset by a decrease of ($3,204,393). Additional details on these expense changes can be found under the Expenses — Governmental Activities chart on the following pages. 10 MANAGEMENT'S DISCUSSION AND ANALYSIS Revenue by Source-Governmental Activities o Miscellaneous income 0.1% ■ Grants and O Othertaxes contributions not 6.5% restricted to specific O Charges for services programs 14.1% 2.7% 0 Operating grants and contributions 25.3% o Property taxes 49.3% � Capital grants and contributions 2.1% oCharges for services ■Operating grants and contributions OCapital grants and contributions ❑Property taxes ❑Other taxes ■Grants and contributions not restricted to specific programs 0 Miscellaneous income • Property Taxes continue to be the largest source of revenue for the County at 49.3°/o though with the County seeing growth in other revenue lines,the overall impact of property taxes has remained below 50°/o. Property taxes did increase by$2.27 million and 7.9% due to the continued strong growth of 6.4% in assessed values, as Council did not approve any millage increase. This growth continues to be based on the robust real estate market that has been increasing sales and growing sales values. This is evidenced in our real property assessed values increasing. 11 MANAGEMENT'S DISCUSSION AND ANALYSIS • Operating Grants and Contributions did increase slightly to 25.3%from roughly 24.6% in the prior fiscal year. The growth in operating grants and contributions is primarily focused in general government, roads and bridges and economic development. General government increased $2.77 million and was due primarily to the use of $3 million in Treasury local fiscal recovery funds to provide funding for personnel. Roads and bridges increased $449 thousand and was due in part to the additional $1.075 million received from the state in road maintenance funds. Economic Development increased by$379 thousand and was due to grant funds received to continue work on water/wastewater services in rural parts of the County. • Charges for services did dip slightly to 14.1%from 14.2%though revenue did increase by$654 thousand and 8%. General government increased by $625 thousand and was concentrated in the areas of planning and development building permits and register deeds document recording fees. Both of these fees have seen significant growth over this fiscal year and last fiscal year based on the low mortgage rates that made refinancing and buying and selling homes a popular choice for many County residents. Expenses-Governmental Activities $16,000,000 $14,000,000 �General government $12,000,000 ■Judical 0 Public safety $10,000,000 �Roads and bridges $8,000,000 ■Solid waste $6,000,000 oRecreation and culture $4,000,000 ■Health and human services 0 Economic development $2,000,000 ■Interest and fiscal charges $0 Expenses by Function 12 MANAGEMENT'S DISCUSSION AND ANALYSIS • Expenses for General Government increased by $341,809 and was primarily due to increases provided to personnel as part of the 2022 approved budget. Staff were provided a 5%adjustment and when coupled with the 1% mandated increase in employer retirement matching, personnel increased by 18%from the prior year. The increase related to the pay adjustment was offset by higher vacancy rate than the average historical rate. In addition to the budget personnel adjustments, an increase of over 10% in facility utility fees were incurred which was due in part to the age of some of the facilities still in use. • Public Safety expenses increased by$281,185 and was due to the 5-20% pay adjustments that were included in the 2022 budget. The pay adjustments were needed to maintain adequate staffing in the Sheriff's office, the Detention Center, and 911 Dispatch. In addition, the appropriation provided to the County Fire Rescue Commission did increase by 20% to provide additional funds to cover pay adjustments to Firefighter/EMTs and Firefighter/Paramedics. • Expenses for Roads and Bridges did decrease by ($3,204,392) and was due to a number of road projects completed in fiscal year 2021 and new road improvements project did not begin until the last quarter of fiscal year 2022. • Expenses for Solid Waste increased by $2,314,146 and was due to one-time expenses related to the replacement of some aging landfill equipment. During the fiscal year, investment of over$2.2 million was used to purchase various replacement pieces of heavy equipment at the landfill. This did include the purchase of a $1 million compactor for better compaction at the landfill and extend the remaining life. • Economic Development expenses did increase by$3,459,658 and was related to improving water/wastewater to rural parts of the County as well as to potential industrial sites that are within the County. More details on these sites are found in the Transmittal Letter under the Economic Development Goals and Strategies. These improvements were funded in part with funds from the U.S. Economic Development Agency and the SC Rural Infrastructure Authority. Financial Analysis of the Government's Funds As noted earlier, the County uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental Funds The focus of the County's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the County's financing requirements. Unassigned fund balance may serve as a useful measure of the County's net resources available for discretionary use as they represent the portion of fund balance which has not yet been limited to use for a particular purpose by either an external party, the County itself, or a group or individual that has been delegated authority to assign resources for use for purposes by the County Council. 13 MANAGEMENT'S DISCUSSION AND ANALYSIS On June 30, 2022, the County's governmental funds reported combined fund balances of$33,510,412, an increase of $2,319,795 in comparison with the prior year. Approximately 28.96% of this amount, or $9,705,545, constitutes unassigned fund balance, which is available for spending at the County's discretion. The remainder of the fund balance is either nonspendable, restricted, assigned, or committed, to indicate that it is: 1) not in spendable form ($751,932), 2) restricted for purposes ($9,728,951), 3) assigned for purposes ($1,430,926), or 4) committed for purposes ($11,893,058). The general fund is the chief operating fund of the County. On June 30,2022, unassigned fund balance of the general fund was$9,705,545. As a measure of the general fund's liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total general fund expenditures. Unassigned fund balance represents approximately 27.6%of total general expenditures,while total fund balance represents approximately 30.6%. County ordinance requires that total fund balance be maintained at 20%of total general fund expenditures. During the current fiscal year, the fund balance of the County's general fund increased by $853,010. This represents an increase of 8.6% in fund balance that was based on revenues increasing by 4.5%while expenditures grew significantly by 9.9%. This higher growth in expenditures as compared to revenues was offset by a $1,535,871 increase in other financing sources that that was due to transfers in from other funds, primarily from the local fiscal recovery fund. • Tax revenues did increase by 2.5%that was due solely to growth in assessed values of 6.4%that were offset by a dip in levy collections. The growth in assessed values are based on mortgage rates remaining at historical lows for most of fiscal year 2022,which continue to drive robust home sales and refinancing activity. County Council did not approve any operating millage increase for fiscal 2022. • Intergovernmental revenues did increase 16.3% based on new state revenues. Included in the fiscal year 2022 state budget, rural stabilization funds ($322,581)were created to aid the majority of counties that saw a small or no population change from the 2010 to 2020 census and, therefore, would receive less state aid to local government funds beginning in fiscal year 2022. In addition, the state funded the 25°/o cost share ($49,087) associated previously with declared federal disasters. • Fines and fees did increase by 7.3°/o from the prior year based on continuing to see increased volume/value of building permits and recording document fees related to mortgage liens. A building permit fee change was put into place with the fiscal year 2021 budget and no additional fee increase was budgeted in fiscal year 2022. In addition, County recreational venues did see a busier fiscal year 2022 as compared to 2021 that was up 18%and was driven by residents returning to pre-COVID activities(youth sports,gym visits, restaurant dining and large gathering events). Total expenditures grew at 9.9°/o, or$3,156,600, with every function showing growth from the prior year. The largest increases were seen in general government of $606,491 (6.4%), judicial of $149,710 (11.3%), public safety of $1,012,155 (12.0%) and intergovernmental of$449,901 (8.6%). • Governmental expenditures increased based on a 5% pay adjustment provided in the fiscal year as well as a mandated 1% increase in employer retirement matching. These two led to an increase of roughly $440,672 in expenditures. In addition to personnel, utilities and supplies saw significant increases in fiscal year 2022. Overall facility operating costs increased by 8% due to rate and usage increases and supply expenditures were impacted by the significant jump in fuel prices during the last quarter of the fiscal year which did lead to a $76,377 increase in fuel expense for the fiscal year. 14 MANAGEMENT'S DISCUSSION AND ANALYSIS • The increase seen in judicial was primarily due to increase in wages, associated employer benefits and jury expenses. Court staff were provided a minimum 5% salary adjustment in fiscal year 2022 as well as the mandated 1% increase in employer retirement matching which led to $140,335 in additional expenditures. With courts resuming their pre-COVID schedule,jury fees and associated expenditures did increase by 75%, or$30,191. • In order to maintain necessary public safety staffing in the Sheriff's office, the Detention Center and 911, pay adjustments of 5-20% were provided in fiscal year 2022. These pay adjustments factored with the 1% mandated employer retirement matching, increased expenditures by $720,882. Other than personnel expenditures, supply expense experienced 31% growth. The rapid rise in fuel prices during the last quarter of the fiscal year lead to a 50%, or additional $130,922, in fuel expenditures for the year. • The increase in intergovernmental expenditures was caused by an increase of$409,542 in funding to Colleton County Fire Rescue.This additional funding support was provided to cover additional personnel expenditures, medical/drug/blood supplies and fuel expenses. The fund balance of the County's special revenue fund did decrease by ($155,290) and (12.7%)from the prior year. During fiscal year 2020 and 2021, the Department of Agriculture's summer feeding program for children was expanded year-round so that children attending school virtually would have access to nutritious meals while at home. During this time, the County did receive per meal reimbursements that exceeded the meal cost and these additional prior year reimbursements were used during fiscal year 2022 to upgrade program related equipment as well as cover the increasing cost for food. During the current fiscal year, the fund balance of the County's capital projects fund increased by$1,943,231 million and 19.2%. Revenues increased by $2,077,424 from the prior year and included $1,075,108 in additional state appropriated road improvement funds, $769,539 in federal economic development grant funds and $500,000 in South Carolina rural infrastructure grant funds. Expenditures increased to $13,364,110 from $3,819,447 in the prior year. Major expenditures included $971,870 for a vacant retail building that will be renovated for use as the voter registration office, $2,309,063 for the ongoing construction of the taxpayer service center building (Capital Projects Sales Tax ("CPST")funded), $2,196,818 for six pieces of heavy equipment, including a solid waste compactor($5.5 million lease purchase financing), $904,616 in fleet vehicle lease expenses, $3,499,200 for road improvements (CPST and state gas tax)and$1,863,271 in water/sewer improvements(U.S. Economic Development Administration grant and South Carolina Rural Infrastructure Authority grant). Included in other financing sources is $5.500,000 from the November 2021 lease purchase financing. Capital Projects Sales Tax Debt Service did report a slight decrease of ($69,328) in fund balance. Total tax collections were $6,034,800 while debt service was $4,095,400. As part of the fiscal year 2022 budget, The County Council approved the use of($2,013,645)in excess collections to cover cost increases on remaining CPST approved projects. 15 MANAGEMENT'S DISCUSSION AND ANALYSIS Budgetary Highlights The County's general fund actual amounts reported for revenues of $35,008,499 were $1,414,325 higher than the final budget amount of$33,594,174. • Tax revenue was higher than final budget by$519,893 and 2.1% due to assessed values growth of 6.4% as compared to a budgeted historical average of slightly more than 2%. Property taxes did see lower collections at 93% compared to 96%, which did lessen the positive impact of the assessed values growth rate. • Intergovernmental revenues were higher than final budget by $388,283 and 16.8% due to collection cost reimbursements of previously declared disasters from both Federal Emergency Management Agency ("FEMA") and the State of South Carolina (25% funding). These reimbursements totaled $180,861 and had not been included in the final budget. In addition, the County received June primary reimbursements of $49,586 that were not included in the final budget. • Fines and fees revenues were higher than final budget by $670,132 and 10.6°/o. The increase was due to higher volumes and values related to building permits as well as document fees related to mortgage filings. Building permits were $163,199 over final budget and recording document fees were $194,084 over budget. With mortgages rising during the last part of fiscal year 2022 and continuing in fiscal year 2023, revenues are forecasted to return to more historical amounts. In addition to these two fees, County recreational venues saw volumes and revenues that mirrored or exceeded pre-COVID years. Between the ACE Basin Recreation Complex, Dogwood Hills Golf Course and Restaurant, and the Museum, revenues exceeded final budget by $201,587. Total actual expenditures of $35,208,708 were ($473,696) and (1.3°/o) under final budget of $35,682,404. The expenditure savings were seen in general government of$904,049 that was offset by over budget expenditures, in public safety of$202,484, recreation and culture of$64,996 and intergovernmental of$159,101. General government expenditures were under budget by$904,049 and 8.3% and were due to the following: • Vacant clerical positions of 8.5 FTEs that equated to salaries and retirement match and FICA match savings of$484,540. • Health Insurance (employer matching) budgeted with 4°/o increase which did not occur and led to savings of $226,128. • Workers' compensation premium is based on budgeted salaries and due to vacant positions, savings that were offset by higher overtime usage (see Public Safety), actual premium savings of$81,113 was seen. • Additional fuel contingency added to final budget based on fourth quarter price increases. Only a partial amount of contingency was needed—savings$95,226 Public safety expenditures were over budget by$202,484 and 2.2°/o and were due to the following: • Overtime for Sheriff, Detention Center and 911 Dispatch is budgeted at a total of 10.5 ftes (historical average) though actual overtime usage was 13.1 ftes. The 2.6 ftes of additional overtime equated to additional salaries, retirement match and FICA match of$136,472. This was partially offset by vacant position savings of$82,732. • Average census budgeted at the Detention Center is 90 per day, actual average census per day was 98. This created additional expense related to contract medical and food service at the Detention Center. This additional expense totaled $60,433. 16 MANAGEMENT'S DISCUSSION AND ANALYSIS • The County has moved roughly 70% of its fleet of vehicles (including Sheriff) from County-owned to lease vehicles. This has brought the average age of a County vehicle from over eight years to four years. This was especially important in the Sheriff's department since their vehicles are heavily utilized. With the slowdown in vehicle manufacturing over the last two years, we have not been able to replace vehicles as planned, especially in the Sheriff's office. This has caused the Sheriff to keep older vehicles in service and created additional vehicle repair expense. This additional expense totaled $17,947.61. Recreation expenditures were over budget by$64,996 and 3.7°/o and were due to the following: • Based on the higher usage volumes at Ace Basin and Dogwood Hills Restaurant, food costs associated with the concession stand operation and restaurant was over budget by$20,026.11. • Museum retail sales are partially made from goods on consignment from local merchants. With museum sales being over budget by 22%, payments to consignors was over budget by 18% and $21,866. • Unbudgeted repairs and maintenance were required at the golf course (down tree removal and dam repairs) which totaled $11,703. Intergovernmental expenditures were over budget by $159,101 and 2.9% and were due to additional appropriation provided to the Fire and Rescue Commission to cover higher than budgeted personnel costs that were due to providing additional pay adjustments to retain essential personnel. Total actual other financing sources (uses)were less than final budget by($1,357,414)and (56.3%)due to additional transfers out of $1,343,927 and 46.8%. Final actual transfers out included an additional amount of $1,343,927 to the capital projects to provide additional funding related to planned capital projects as well as funding for vehicle lease expense. Capital Assets The County's investment in capital assets for its governmental activities as of June 30, 2022, amounts to $60,042,383 (net of accumulated depreciation) as compared to $57,568,095 on June 30, 2021. Capital additions, including construction in progress totaled $6.67 million,which were offset by disposals in the amount of$615 thousand. Major capital asset additions during the fiscal year 2022 include the following: • Taxpayer Service Center construction (CPST funded)- $2.1 million • Gadsden Loop Infrastructure (CDBG funded—partially)-$265 thousand • Benson/Klein Street Parking Lot- $241 thousand • Chehaw Public Landing Improvements (U.S. Fish and Wildlife funded)- $167 thousand • Purchase of vacant retail site- Elections/Voter Registration Office-$972 thousand • Kenworth Dump Truck-$186 thousand • John Deere Motor Graders (3)-$893 thousand • Sun Machinery Landfill Compactor-$1 million • Building Improvement-215 Lemacks Street-$124 thousand 17 MANAGEMENT'S DISCUSSION AND ANALYSIS Construction in Progress completed and placed in service during fiscal year 2022 include the following: • Land - Demo of damaged building - $282 thousand • Chehaw Public Landing Improvements (U.S. Fish and Wildlife funded)- $167 thousand • Recreation Center- Generator and Transfer Switch -$364 thousand Disposals of assets acquired in prior years include the following: • $364 thousand in vacant land • $251 thousand in County fleet vehicles (moving to vehicle lease program) Additional information on the County's capital assets can be found in note 5 on page 46 in the notes to the financial statements. COLLETON COUNTY, SOUTH CAROLINA CAPITAL ASSETS, NET OF DEPRECIATION Governtal Activities 2022 2021 Land and land infrastructure $ 7,956,667 $ 8,073,207 Construction in progress 3,501,789 1,446,850 Buildings and improvements 29,449,233 29,753,153 Improvements other than buildings 4,888,039 5,074,071 Equipment and vericles 8,574,654 7,342,227 I nfrastructu re 5,672,001 5,878,587 Total $ 60,042,383 $ 57,568,095 Debt Administration On June 30, 2022, the County had long-term obligations of$58,411,162 compared to outstanding debt on June 30, 2021, totaling $63,676,105. During fiscal year 2022, the County did complete two general obligation bond issues. The first issue closed in October 2021 and was a short-term bond in the amount of$578 thousand that has a maturity of August 2022. The second issue closed in March 2022 and was a 10-year refunding bond in the amount $1.985 million. The bonds refunded the outstanding principle on the Series 2012 General Obligation Bonds and provided debt service savings of$125 thousand. In addition to the two general obligation bond issues, the County issued a new five-year lease purchase financing agreement in the amount $5.5 million that will allow the County to address heavy trucks and equipment replacements. All scheduled debt service payments for fiscal year 2022 were made when due. 18 MANAGEMENT'S DISCUSSION AND ANALYSIS COLLETON COUNTY, SOUTH CAROLINA LONG-TERM OBLIGATIONS Governmental Activities 2022 2021 General Obligation Bonds $ 14,682,077 $ 19,111,299 Special Revenue Bonds - - Financed Purchaes 4,962,221 833,292 Leases 2,346,540 2,615,846 Net OPEB Obligation 6,228,852 4,360,196 Note Payable - - Landfill Closure and Post-Closure Cost 606,560 583,878 Compensated Absences 997,844 852,547 Net Pension Liability 28,587,068 35,319,047 Total $ 58,411,162 $ 63,676,105 Additional information on the County's long-term obligations can be found in note 7 on page 49 in the notes to the financial statements. In accordance with State Law, the amount of General Obligation Bonds ("GOB") a government entity may issue (without referendum) is equal to 8% of its total assessed value. The current General Obligation Bond debt limitation for the County based on information received from the County Auditor related to the 2022 tax assessment value of $205,536,665 is $16,442,933 for fiscal year ended June 30, 2022. As of June 30, 2022, the County has net debt applicable to the limit of$6,510,127, which equals a 39.59% total net debt applicable to the limit percentage. Debt Rating — As part of the refunding bond issuance discussed above, both Moody's Investor Services and Standard and Poor's reaffirmed their ratings previously issued to the County. The County continued to receive a rating of Aa3 from Moody's and a rating of AA- from Standard and Poor's. In each of their analysis, the following positive attributes of the County and its management were noted: � Solid financial position that is supported by improved reserves and growth in major revenue lines; � Manageable debt burden with limited pension pressure; � Standard management and strong institutional framework score with a steady financial profile supported by conservative budgeting practices; � Below average resident income indices, though local economy is evolving beyond agriculture. 19 MANAGEMENT'S DISCUSSION AND ANALYSIS Economic Factors and Next Year's Budget The County passed budget ordinance No. 22-0-06 to provide for the levy of taxes in Colleton County, South Carolina with the third and final reading on June 2, 2022, to be effective July 1, 2022, through June 30, 2023. The highlights of the budget are provided below: • Operating millage at 116.31 mills and debt service millage at 10.24 mills—unchanged from fiscal year 2022. • Property tax revenues were budgeted at a growth rate of 4.6% based on a corresponding growth in assessed values and fiscal year 2022 actual growth. • Fees and fines were budgeted flat from forecasted fiscal year 2022 collections for the areas of planning and development, the courts and recording documents. The budget for planning and development and recording documents is based on the continued increase in interest rates which will further slow existing home sales, new home construction and home refinances. In the previous fiscal year, the courts had to address case backlog and though some backlog continues to exist, case volumes are forecasted to remain constant. • Intergovernmental revenues were primarily budgeted flat, though adjustments were included related to additional school resource officer funding from the South Carolina Department of Public Safety and continuation of the rural stabilization fund that was funded again in fiscal year 2023. The rural stabilization fund was enacted in fiscal year 2022 to help with funding losses that rural counties saw in their share of local government funds based on the 2020 census. • Local option sales tax and capital project sales taxes are budgeted to grow at 5-7% in fiscal year 2023. Capital project sales tax was budgeted through April 2023,which is the current expiration of the tax,since it is unknown if voters will approve another eight years of tax. • Local accommodations and hospitality taxes are projected to grow at 5% based on prior actual growth and expectation that travel will remain robust in fiscal year 2023. • Recreation was budgeted to grow slightly except for the golf course, which was budgeted to grow at 25°/o (back to their fiscal year 2021 amounts) based on course renovations which were completed late in fiscal year 2022. The restaurant was budgeted to cease operations during the first quarter of fiscal year 2023. • Minimum of 5°/o cost of living salary adjustment was provided to all employees and all full-time were moved to a minimum hourly rate of$15 per hour. • A years of service pay plan was put into place for fire/rescue first responders. This pay plan provides an annual wage increase for each year of continuous service. • Four new positions were included in the budget, one in planning and development, one in the museum/commercial kitchen and two firefighter/paramedics. • Mandated employer retirement contribution increase of 1% for all participating employees effective July 1, 2022. • Mandated employer health insurance premiums increase effective January 1, 2023 (exact not known, factor of 8%was used). • Continuation of funding 50% of the cost of individual health/dental insurance for eligible retirees. • Staffing of two armed security officers at the Magistrate Court building. • Continuation of direct assistance funding to 20 County agencies providing various essential services and programs for residents. 20 MANAGEMENT'S DISCUSSION AND ANALYSIS The following budgets and millage rates are currently in effect based on Budget Ordinance 22-0-06: COLLETON COUNTY, SOUTH CAROLINA 2021-2022 ORIGINAL FUND BUDGET Amount Millage General Fund $ 33,655,166 116.31 Debt Service Fund 2,059,700 10.24 Fire and Rescue Commission 13,371,849 37.56 Fire and Rescue Commission Debt Service 2,562,300 22.66 Capital Projects Sales Tax Debt Service 4,111,950 - Capital Fund 1,453,300 - Special Revenue Fund (various grants) 1,339,090 - State Aid to Library 150,000 - Memorial Library Fund 814,573 - IV-D Sheriff Unit Costs 14,900 - IV-D Clerk of Court Unit Costs 175,000 - Accomodations Tax Tourism Infrastructure 41,000 - Victim Witness Services 110,494 - Animal Care and Control 15,000 - Non-GOB Related Debt Service 1,130,476 - Emergency Telephone Fund 559,182 - Infrastructure/Industrial Development Fund 222,500 - CC 2015$5.4M GOB Proceeds 172,782 - Coronavirus Local Recovery Fund 3,898,828 - County Hospitality Tax Fund 645,800 - County Accomodations Tax Fund 755,975 - Recreation Fund 1,732,409 - Road and Bridges Fund 2,298,284 - School District - 116.42 Solid Waste Fund 3,454,314 - Total $ 74,744,872 303.19 Requests for Information This financial report is designed to provide a general overview of the County's finances and to demonstrate the County's accountability for the money it receives. Any questions about this report or request for information may be addressed to Colleton County, Director of Finance, P.O. Box 157,Walterboro, South Carolina 29488. 21 COLLETON COUNTY, SOUTH CAROLINA STATEMENT OF NET POSITION JUNE 30, 2022 Component Units Governmental Memorial Fire and Rescue Activities Library Commission Pillars4Hope ASSETS Cash and cash equivalents $ 29,599,387 $ 215,356 $ 5,518,007 $ 388,096 Investments 8,076,613 - - 105,371 Receivables,net of allowances 9,051,683 4,601 1,902,528 38,781 Due from state agency - - - 69,703 Prepaids and deposits 751,932 14,920 158,018 - Lease assets,net of accumulated amortization 2,831,961 - - - Capital assets: Nondepreciable 11,837,304 - 1,804,842 - Depreciable,net 48,205,079 287,832 9,561,800 41,156 Total assets 110,353,959 522,709 18,945,195 643,107 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows for pension 5,778,924 140,187 2,624,236 - Deferred outflows for other post-employment benefits 1,899,108 230,343 346,646 - Total deferred outflows of resources 7,678,032 370,530 2,970,882 - LIABILITIES Current liabilities: Accounts payable 2,593,343 15,830 409,263 14,947 Payrollliabilities 1,219,845 19,615 335,762 28,206 Accrued liabilities 155,026 - 103,090 - Unearned revenues 8,159,989 8,309 - - Non-current liabilities: Due within one year 7,023,106 2,071 1,450,938 17,013 Due in more than one year 51,388,056 1,520,464 23,290,250 149,900 Totalliabilities 70,539,365 1,566,289 25,589,303 210,066 DEFERRED INFLOWS OF RESOURCES Deferred inflows for pension 5,348,653 129,283 2,445,144 - Deferred inflows for other post-employment benefits 304,670 36,953 55,612 - Total deferred inflows of resources 5,653,323 166,236 2,500,756 - NET POSITION Net investment in capital assets 42,262,227 287,832 4,022,633 41,156 Restricted: Emergency services 529,506 - - - Court administration 93,834 - - - Law enforcement 218,641 - - - Solid waste 345,850 - - - Non-expendable 751,932 - - - Debt service 7,035,132 - 5,127,108 - Otherpurposes 1,143,258 - - - Unrestricted(deficit) (10,541,077) (1,127,118) (15,323,723) 391,885 Total net position 41,839,303 (839,286) (6,173,982) 433,041 The accompanying notes are an integral part of these financial statements. 22 COLLETON COUNTY, SOUTH CAROLINA STATEMENT OF ACTIVITIES FOR THE FISCAL YEAR ENDED JUNE 30, 2022 Changes in Net Position Primary Program Revenues Government Component Units Operating Capital Charges for Grants and Grants and Governmental Memorial Fire and Rescue Functions/Programs Expenses Services Contributions Contributions Activities Library Commission Pillars4Hope Primary government Governmental activities: General government $ 11,224,373 $ 2,075,308 $ 3,222,243 $ - $ (5,926,822) $ - $ - $ - Judicial 6,773,058 758,945 4,729,046 - (1,285,067) - - - Public safety 16,225,863 1,778,525 1,351,638 - (13,095,700) - - - Roads and bridges 2,727,786 1,060,879 3,732,088 1,284,059 3,349,240 - - - Solid waste 6,717,388 2,184,009 65,610 - (4,467,769) - - - Recreation and culture 4,925,318 951,637 331,389 - (3,642,292) - - - Health and human services 3,034,859 - 1,976,293 - (1,058,566) - - - Economic development 4,653,832 - 438,965 - (4,214,867) - - - Interest and fiscal charges 524,705 - - - (524,705) - - - Total governmental activities 56,807,182 $ 8,809,303 15,847,272 1,284,059 (30,866,548) - - - Component Units Memorial Library $ 958,193 $ 25,458 $ 839,849 $ - - (92,886) - - Fire and Rescue Commission 13,607,239 1,861,972 4,851,447 - - - (6,893,820) - Pillars4Hope 1,310,263 169,170 1,172,625 1,510 - - - 33,042 Total component units $ 15,875,695 2,056,600 6,863,921 1,510 - (92,886) (6,893,820) 33,042 General revenues: Property taxes 30,826,620 - 6,697,310 - Alcohol excise tax - - - 52,998 Local options sales tax 2,535,440 - - - Local accommodations tax 802,523 - - - Hospitality tax 614,120 - - - Franchise fees 126,927 - - - Grants and contributions not restricted to specific programs 1,683,290 - - - Miscellaneous 48,519 33,939 39,146 - Total general revenues 36,637,439 33,939 6,736,456 52,998 Change in net position 5,770,891 (58,947) (157,364) 86,040 Net position,beginning of year 36,068,412 (780,339) (6,016,618) 347,001 Net position,end ofyear $ 41,839,303 $ (839,2861 $ (6,173,982) $ 433,041 The accompanying notes are an integral part of these financial statements. 23 COLLETON COUNTY, SOUTH CAROLINA BALANCE SHEET GOVERNMENTALFUNDS J U N E 30, 2022 Coronavirus Special Local Fiscal General Revenue Recovery ASSETS Cash and cash equivalents $ 2,635,590 $ 2,849,480 $ 4,320,075 Investments 8,076,613 - - Receivables,net 4,292,636 461,877 - Prepaid expenditures 729,277 - - Total assets $ 15,734,116 $ 3,311,357 $ 4,320,075 LIABILITIES,DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES LIABILITIES Accounts payable $ 879,617 $ 166,788 $ - Accrued payroll and benefits 1,137,343 - - Accrued liabilities 1,337 - - Unearned revenue 1,053,169 2,073,091 4,307,567 Totalliabilities 3,071,466 2,239,879 4,307,567 DEFERRED INFLOWS OFRESOURCES Unavailable revenue-fees 6,703 - - Unavailable revenue-property taxes 1,554,213 - - Unavailable revenue-spec assessments 321,062 - - Total deferred inflows of resources 1,881,978 - - FUND BALANCES Non-spendable: Prepaid expenditures 729,277 - - Restricted for: Public safety - - - Recreation and culture - - - Judicial services - - - Solid waste reserve 345,850 - - Economic development - - - Debt service - - - Otherpurposes - 1,071,478 - Assigned: Judicial services - - - Committed: Recreation and culture - - - Capital projects - - 12,508 Unassigned 9,705,545 - - Total fund balances 10,780,672 1,071,478 12,508 Total liabilities,deferred inflows of resources and fund balances $ 15,734,116 $ 3,311,357 $ 4,320,075 The accompanying notes are an integral part of these financial statements. 24 Capital Nonmajor Total Capital Sales Tax Governmental Governmental Projects Debt Service Funds Funds $ 12,373,466 $ 5,228,150 $ 2,192,626 $ 29,599,387 - - - 8,076,613 1,915,822 1,571,855 809,493 9,051,683 - - 22,655 751,932 $ 14,289,288 $ 6,800,005 $ 3,024,774 $ 47,479,615 $ 1,491,985 $ - $ 54,953 $ 2,593,343 - - 82,502 1,219,845 - - - 1,337 726,162 - - 8,159,989 2,218,147 - 137,455 11,974,514 - - - 6,703 - - 112,711 1,666,924 - - - 321,062 - - 112,711 1,994,689 - - 22,655 751,932 - - 748,147 748,147 - - 71,780 71,780 - - 93,834 93,834 - - - 345,850 362,730 - - 362,730 - 6,800,005 235,127 7,035,132 - - - 1,071,478 - - 1,430,926 1,430,926 - - 172,139 172,139 11,708,411 - - 11,720,919 - - - 9,705,545 12,071,141 6,800,005 2,774,608 33,510,412 $ 14,289,288 $ 6,800,005 $ 3,024,774 $ 47,479,615 25 COLLETON COUNTY, SOUTH CAROLINA RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET POSITION JUNE 30, 2022 Total governmental fund balances: $ 33,510,412 Amounts reported for governmental activities in the statement of net position are different because of the following: Capital assets used in governmental activities are not financial resources and,therefore, are not reported in the government funds. 60,042,383 Lease assets used in governmental activities are not financial resources and, therefore, are not reported in the government funds. Lease assets $ 3,455,143 Accumulated amortization (623,182) 2,831,961 Other long-term assets are not available to pay for current period expenditures and, therefore,are deferred in the funds. Property taxes and other special assessments $ 1,987,986 Solid waste receivables 6,703 1,994,689 Deferred outflows of resources are not due and payable in the current period and, therefore,are not reported in the funds.These deferred outflows of resources consist of pension related experience differences,assumption changes and differences between projected and actual earnings on Plan investments. Deferred outflows related to pensions $ 5,778,924 Deferred outflows related to other post-employment benefits 1,899,108 7,678,032 Long-term liabilities are not due and payable in the current period and,therefore,are not reported in the funds. General obligation bonds $ (14,273,398) Bond premiums (408,679) Capital leases (4,962,221) Lease liabilities (2,346,540) Compensated absences (997,844) Landfill closure and post-closure cost (606,560) Accrued interest (153,689) Net pension liability (28,587,068) Total other post-employment benefits liability (6,228,852) (58,564,851) Deferred inflows of resources are not available to pay for current period expenditures and,therefore,are not reported in the funds.These deferred inflows of resources consist of pension related differences between projected and actual earnings on Plan investments. Deferred inflows related to pensions $ (5,348,653) Deferred inflows related to other post-employment benefits (304,670) (5,653,323) Net position of governmental activities $ 41,839,303 The accompanying notes are an integral part of these financial statements. 26 COLLETON COUNTY, SOUTH CAROLINA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2022 Coronavirus Special Local Fiscal General Revenue Recovery REVENUES Taxes $ 24,936,740 $ - $ - Intergovernmental 2,698,043 3,583,694 3,010,749 Fines and fees 7,022,524 - - Other income 351,192 2,812 11,591 Total revenues 35,008,499 3,586,506 3,022,340 EXPENDITURES Current: General government 10,036,349 3,000 - Judicial 1,477,138 509,379 - Public safety 9,423,341 439,918 - Roads and bridges 2,107,645 12,896 - Solid waste 3,286,186 - - Recreation and culture 1,829,931 27,755 - Health and human services 957,257 1,992,210 - Economic development 300,040 94,293 - Intergovernmental 5,655,281 169,560 - Capital outlay: - General government 85,650 - - Judicial - 23,780 - Public safety - 58,123 16,553 Roads and bridges - 870,520 - Solid waste 38,068 - - Recreation and culture 11,822 182,449 - Health and human services - - - Economic development - 78,183 - Debt service: Principal - - - Interest - - - Total expenditures 35,208,708 4,462,066 16,553 Excess(deficiency)of revenues over(under)expenditures (200,209) (875,560) 3,005,787 OTHER FINANCING SOURCES(USES) Sale of capital assets 1,597 - - Issuance of debt - - - Insurancerecoveries 190,014 - - Transfers in 5,076,786 720,270 - Transfers out (4,215,178) - (2,994,196) Total other financing sources (uses) 1,053,219 720,270 (2,994,196) Net change in fund balances 853,010 (155,290) 11,591 Fund balances,beginning of year 9,927,662 1,226,768 917 Fund balances,end of year $ 10,780,672 $ 1,071,478 $ 12,508 The accompanying notes are an integral part of these financial statements. 27 Capital Nonmajor Total Capital Sales Tax Governmental Governmental Projects Debt Service Funds Funds $ - $ 6,034,800 $ 3,526,093 $ 34,497,633 4,769,631 - 4,847,000 18,909,117 - - 510,738 7,533,262 497,633 4,917 43,018 911,163 5,267,264 6,039,717 8,926,849 61,851,175 918,736 - 57,211 11,015,296 - - 4,601,034 6,587,551 83,331 - 507,704 10,454,294 - - 5,856 2,126,397 1,981,174 - - 5,267,360 526,210 - 602,507 2,986,403 708 - - 2,950,175 601,983 - 124,152 1,120,468 3,381,297 - 31,702 9,237,840 3,333,625 - - 3,419,275 - - 29,464 53,244 17,604 - 33,420 125,700 - - - 870,520 2,196,822 - 19,049 2,253,939 198,328 - - 392,599 124,292 - - 124,292 - - - 78,183 - 3,875,000 4,677,164 8,552,164 - 220,400 423,587 643,987 13,364,110 4,095,400 11,112,850 68,259,687 (8,096,846) 1,944,317 (2,186,001) (6,408,512) - - 73,080 74,677 6,078,398 - 2,249,475 8,327,873 133,615 - 2,128 325,757 4,178,064 - 1,508,555 11,483,675 (350,000) (2,013,645) (1,910,656) (11,483,675) 10,040,077 (2,013,645) 1,922,582 8,728,307 1,943,231 (69,328) (263,419) 2,319,795 10,127,910 6,869,333 3,038,027 31,190,617 $ 12,071,141 $ 6,800,005 $ 2,774,608 $ 33,510,412 28 COLLETON COUNTY, SOUTH CAROLINA RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES FOR THE FISCAL YEAR ENDED JUNE 30, 2022 Net change in fund balances-total governmental funds $ 2,319,795 Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlays as expenditures. However,in the statement of activities,the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. Capital outlay $ 6,674,181 Depreciation expense (3,831,921) 2,842,260 Governmental funds report lease assets as expenditures. However,in the statement of activities,the cost of all lease asset additions are allocated over their estimated useful lives and reported as amortization expense. This is the amount by which lease asset additions exceeded amortization expense in the current period. Lease asset additions $ 1,154,398 Amortization expense (623,182) 531,216 The net effect of various miscellaneous transactions involving capital assets and lease assets(i.e.,sales,trade-ins,and donations)is to decrease net position. (683,073) Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds. Property taxes and other special assessments $ 407,997 Solid waste receivables (6,856) 401,141 The issuance of long-term debt provides current financial resources to governmental funds,while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction,however, has any effect on net position. Governmental funds report the effect of premiums,discounts,and similar items when debt is first issued,whereas these amounts are deferred and amortized in the statement of activities. The effects of these items are as follows. Leases $ (1,154,398) Repayment of the principal of long-term debt 8,552,164 Repayment of the principal of lease liability 1,423,704 Issuance of long-term debt (8,063,398) Premium on bond issuance (264,475) Amortization of premium on long-term debt 76,002 569,599 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 governmental funds. In addition, interest on long-term debt is not recognized under the modified accrual basis of accounting until due,rather than as it accrues. The following amounts represent the net liability changes using the full accrual method of accounting. Pension liability $ 443,336 Landfill closure and post-closure liability (22,682) Compensated absences (145,297) Accrued interest on long-term debt 43,280 Other post-employment benefits liability (528,684) (210,047) $ 5,770,891 The accompanying notes are an integral part of these financial statements. 29 COLLETON COUNTY, SOUTH CAROLINA STATEMENT OF FIDUCIARY NET POSITION CUSTODIAL FUNDS JUNE 30, 2022 ASSETS Cash and cash equivalents $ 13,741,995 Other receivable 4,627 Total assets $ 13,746,622 LIABILITIES Due to others $ 8,788,808 Totalliabilities $ 8,788,808 NET POSITION Restricted for individuals,organizations and other governments $ 4,957,814 $ 4,957,814 The accompanying notes are an integral part of these financial statements. 30 COLLETON COUNTY, SOUTH CAROLINA STATEMENT OF CHANGES IN FIDUCIARY NET POSITION CUSTODIAL FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2022 ADDITIONS Taxes $ 21,242,703 Fines and fees 4,901,940 Miscellaneous 71,076,097 Total additions 97,220,740 DEDUCTIONS Taxes and fees paid to other governments 81,073,277 Other custodial disbursements 14,112,639 Total deductions 95,185,916 Change in fiduciary net position 2,034,824 Net position,beginning of year 2,922,990 Net position,end of year $ 4,957,814 The accompanying notes are an integral part of these financial statements. 31 COLLETON COUNTY, SOUTH CAROLINA NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2022 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Description of Government-wide Financial Statements 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 primary government and its component units. All fiduciary activities are reported only in the fund financial statements. For the most part, the effect of interfund activity has been removed from these statements. The primary government is reported separately from certain legally separate component units for which the primary government is financially accountable. Reporting Entity Colleton County, South Carolina (the "County"), is governed by a five-member County Council (the "Council") under the Council-Administrator form of government, pursuant to the South Carolina Home Rule Act. Members of the Council are elected from resident districts. The Council acts as the governing body of the County with power to pass ordinances and adopt resolutions. The accompanying financial statements present the government and its component units, entities for which the government is considered to be financially accountable. Blended component units are, in substance, part of the primary governmenYs operations, even though they are legally separate entities. Each discretely presented component unit is reported in a separate column in the government-wide financial statements to emphasize that it is legally separate from the government. The County does not have any blended component units as of June 30, 2022. Discretely Presented Component Units The nine members of the Colleton County Memorial Library's (the "Memorial Library") governing board are appointed by the Council. The Memorial Library is fiscally dependent upon the government because the Council approves the Memorial Library's budgets, and can significantly influence the decisions of the Memorial Library. The Memorial Library does not issue separate financial statements. The five members of the Colleton County Fire and Rescue Commission (the "Fire and Rescue Commission") are selected by the Council from ten members presented by the Fire Control Board, an advisory board comprised of a member from each of the participating fire departments. The Fire and Rescue Commission is fiscally dependent upon the government because the Council approves the Fire and Rescue Commission's budgets, levies taxes and must approve any debt issuances. The Fire and Rescue Commission does not issue separate financial statements. 32 NOTES TO THE FINANCIAL STATEMENTS NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Reporting Entity (Continued) Discretely Presented Component Units (Continued) The nine members of Pillars4Hope, previously known as the Colleton County Commission on Alcohol and Drug Abuse (the "Organization") governing board are appointed by the Council. The Organization is fiscally dependent upon the County because the Council approves the Organization's budgets and can significantly influence the decisions of the Organization. Separately issued financial statements may be obtained at 1439 Thunderbolt Drive, Walterboro, South Carolina, 29488. Basis of Presentation—Government-wide Financial Statements While separate government-wide and fund financial statements are presented, they are interrelated. Separate financial statements are provided for governmental funds and fiduciary funds, even though the latter are excluded from the government-wide financial statements. As discussed earlier, the government has three discretely presented component units. While the Alcohol and Drug Commission is not considered to be a major component unit, it is nevertheless shown in a separate column in the government-wide financial statements. In the process of aggregating data for the statement of net position and the statement of activities, some amounts reported as interfund activity and balances in the funds are eliminated or reclassified in the government-wide financial statements. Eliminations have been made in the statement of activities to remove the "doubling-up" effect of internal service fund activity. Interfund services provided and used are not eliminated in the process of consolidation. Also, the County allocates indirect cost to each of its funds. The indirect costs are eliminated in the government-wide financial statements. Basis of Presentation—Fund Financial Statements The fund financial statements provide information about the County's funds, including its fiduciary funds. Separate statements for each fund category — governmental and fiduciary — are presented. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. All remaining governmental funds are aggregated and reported as nonmajor funds. Major individual governmental funds are reported as separate columns in the fund financial statements. Fiduciary funds are reported by type. 33 NOTES TO THE FINANCIAL STATEMENTS NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Reporting Entity (Continued) Basis of Presentation— Fund Financial Statements (Continued) The County reports the following major governmental funds: The General Fund is the County's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. The Special Revenue Fund accounts for all grants and contributions awarded to the County. The Coronavirus Local Fiscal Recovery Fund accounts for grant funds awarded to the County from the U.S. Department of Treasury as part of the State and Local Fiscal Recovery Fund under the American Rescue Plan Act. The Capital Projects Fund accounts for the transactions of the acquisition of capital assets and construction of major capital projects. The Capital Sa/es Tax Debt Service Fund is used to collect local option special purpose taxes and disburse debt paymentsfortheCapitalPennySalesTaxBond thatwas passed by voter referendum. In addition, the County reports the following nonmajor fund types: The Special Revenue Funds account for revenue sources that are legally restricted to expenditures for specific purposes (not including expendable trusts or major capital projects) such as grants, fire and other special purpose fees, and economic development. The Debt Service Funds account for the accumulation of resources for, and payment of, long- term debt principal and interest. The County's Debt Service Fund was established and is maintained in accordance with acts passed by the General Assembly of South Carolina authorizing the sale of general obligation bonds of the County. The Non-GOB Debt Service Fund accounts for the accumulation of funds and payment of various capital leases and notes payable. Additionally, the County reports the following fund types: The Custodial Funds are used to account for monies held on behalf of school districts, special districts and other agencies that use the County as a depository, or property taxes that are collected on behalf of the other governments. 34 NOTES TO THE FINANCIAL STATEMENTS NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Reporting Entity (Continued) Basis of Presentation— Fund Financial Statements (Continued) During the course of operations, the government has activity between funds for various purposes. Any residual balances outstanding at year-end are reported as due from/to other funds. While these balances are reported in fund financial statements, certain eliminations are made in the presentation of the government-wide financial statements. Further, certain activity occurs during the year involving transfers of resources between funds. In the fund financial statements, these amounts are reported at gross amounts as transfers in/out. While reported in fund financial statements, certain eliminations are made in the preparation of the government-wide financial statements. Transfers between the funds included in the governmental activities are eliminated so that only the net amount is included as transfers in the governmental activities column. Measurement Focus and Basis of Accounting The accounting and financial reporting treatment is determined by the applicable measurement focus and basis of accounting. Measurement focus indicates the type of resources being measured such as current financial resources or economic resources. The basis of accounting indicates the timing of transactions or events for recognition in the financial statements. The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the fiduciary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenues as soon as all eligibility requirements imposed by the provider have been met. The 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 measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the County considers revenues to be available if they are collected within the first 60 days of the end of the current fiscal period, except for grant reimbursements for which the availability period is 120 days. Expenditures generally are recorded when a liability is incurred as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. General capital asset acquisitions are reported as expenditures in governmental funds. Issuances of long-term debt and acquisitions under capital leases are reported as other financing sources. 35 NOTES TO THE FINANCIAL STATEMENTS NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Measurement Focus and Basis of Accounting (Continued) Property taxes, sales taxes, franchise taxes, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual and, therefore, have been recognized as revenues of the current fiscal period. Entitlements are recorded as revenues when all eligibility requirements are met, including any time requirements, and the amount is received during the period or within the availability period for this revenue source (within 60 days of year-end). Expenditure-driven grants are recognized as revenue when the qualifying expenditures have been incurred and all other eligibility requirements have been met, and the amount is received during the period or within the availability period for this revenue source (within 120 days of year-end). All other revenue items are considered to be measurable and available only when cash is received by the government. Budgetary Basis of Accounting Annual budgets are adopted on a basis consistent with generally accepted accounting principles ("GAAP") for the General Fund, the Fire and Rescue Commission, and the Memorial Library. All other special revenue funds and debt service funds (excludes the GO Bond Fund, State Accommodations Fund, Sheriff's Discretionary Fund and the 14t" Circuit Court Solicitor Fund) that have appropriated budgets, also conform to GAAP but tend to follow the revenue source generated by those funds (i.e., grant awards and projects funds). All annual appropriations lapse at fiscal year- end. Due to the late receipt of funding for the Coronavirus Local Fiscal Recovery Fund, a formal budget was not adopted during the fiscal year. However, the County has established a project- length budget for this fund. The appropriated budget is prepared by fund, function, and department. The governmenYs departmental heads may make transfers of appropriations within a department. Transfers of appropriations between departments require the approval of the County Administrator. The legal level of budgetary control (i.e., the level at which expenditures may not legally exceed appropriations) is the fund level. The Council may make supplemental budgetary appropriations throughout the year. Appropriations in all budgeted funds lapse at the end of the fiscal year even if they have related encumbrances. Encumbrances are commitments related to unperformed (executor) contracts for goods and services (i.e., purchase order, contracts, and commitments). Encumbrance accounting is utilized to the extent necessary to assure effective budgetary control and accountability and to facilitate effective cash planning and control. While all appropriations and encumbrances lapse at year-end, valid outstanding encumbrances (those for which performance under executor contract is expected in the next year) are re-appropriated and become part of the subsequent year's budget pursuant to state regulations. 36 NOTES TO THE FINANCIAL STATEMENTS NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Assets, Liabilities, Deferred Outflows/Inflows of Resources and Net Position/Fund Balance Cash and Cash Equivalents and Deposits The "deposits" classification is used only in the notes, not on the face of the statement of net position. Deposits include cash on hand, pooled money market funds and certificates of deposit. The County considers cash and cash equivalents for cash flow purposes to be currency on hand, demand deposits with banks, amounts included in pooled cash and investment accounts, and liquid investments with an original maturity of three months or less when purchased. Investments In accordance with Governmental Accounting Standards Board ("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. The County and its component units have a number of financial instruments, none of which are held for trading purposes. Except for non-participating investment contracts, investments are reported at fair value, which is based on quoted market prices. Debt securities are reported at cost or amortized cost. Prepaid Items Certain payments to vendors for services that will benefit periods beyond June 30, 2022, are recorded as prepaid items using the consumption method by recording the asset for the prepaid amount and reflecting the expenditure/expense in the year which the services are consumed. Prepaid items of governmental funds in the fund financial statements are offset by an equal amount with a reserve of fund balance to indicate that they are not available for general appropriation. 37 NOTES TO THE FINANCIAL STATEMENTS NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Assets, Liabilities, Deferred Outflows/Inflows of Resources and Net Position/Fund Balance (Continued) Capital Assets and Right to Use Lease Assets Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items) and right to use lease assets are reported in the governmental activities in the government-wide financial statements. Capital assets other than infrastructure are defined by the government as assets with an initial, individual cost of more than $5,000 and an estimated useful life in excess of one year. The capitalization threshold for infrastructure assets is $50,000 for individual items and networks. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend an asseYs life are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during construction of governmental-type activities is not capitalized. All reported capital assets except land and certain infrastructure assets are depreciated. Useful lives for infrastructure are estimated based on the County's historical records of necessary improvements and replacements. Depreciation and amortization is provided using the straight-line method over the following estimated useful lives: Component Units Memorial Fire and Rescue Asset Class County Library Commission Pillars4Hope Buildings and impro�ments Buildings 45 45 45 N/A Building improvements 10 10 10 N/A Impro�ments other than buildings Impro�ements other than buildings 10 10 10 N/A Radio and fire towers 10 10 10 N/A Library materials N/A 5 5 N/A Machinery and equipment Furniture and office equipment 5 5 5 3-20 Fire and medical equipment 5 5 5 N/A Heavy vehicles and equipment 10 10 10 N/A Vehicles Airplanes 6 N/A N/A N/A Law enforcement�hicles 3 N/A N/A N/A Leased vehicles 5 N/A N/A N/A Other�hicles 5 5 5 3-20 Infrastructure 20 N/A N/A N/A 38 NOTES TO THE FINANCIAL STATEMENTS NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Assets, Liabilities, Deferred Outflows/Inflows of Resources and Net Position/Fund Balance (Continued) Deferred Outflows/Inflows of Resources In addition to assets, the statement of net position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element represents a consumption of net assets that applies to a future period(s) and, therefore, will not be recognized as an outflow of resources (expense/expenditure) until then. The County reports deferred outflows related to its net pension liability and total other post-employment benefits liability in the statement of net position. These amounts are deferred and recognized as an outflow of resources in the period in which the amounts become available. In addition to liabilities, the statement of net position and the governmental funds balance sheet will sometimes report a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of net assets that applies to a future period(s) and, therefore, will not be recognized as an inflow of resources (revenue) until that time. The County has unavailable revenues from property taxes and special assessments, fees, and intergovernmental revenue that arise under the modified accrual basis of accounting that qualifies for reporting in this category and is reported in the governmental funds balance sheet. The statement of net position reports deferred inflows related to its net pension liability, and total other post-employment benefits liability. These amounts are deferred and recognized as an inflow of resources in the period in which the amounts become available. Leases Colleton County is a lessee for noncancellable leases of buildings and equipment. The County recognizes a lease liability and an intangible right-to-use lease asset in the government-wide financial statements. The County recognizes lease liabilities with an initial, individual value of $25,000 or more. At the commencement of a lease, the County initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made. The lease asset is initially measured as the initial amount of the lease liability, adjusted for lease payments made at or before the lease commencement date, plus certain initial direct costs. Subsequently, the lease asset is amortized on a straight-line basis over its useful life. 39 NOTES TO THE FINANCIAL STATEMENTS NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Assets, Liabilities, Deferred Outflows/Inflows of Resources and Net Position/Fund Balance (Continued) Leases (Continued) Key estimates and judgments related to leases include how the County determines: 1)the discount rate it uses to discount the expected lease payments to present value, 2) lease term, and 3) lease payments. • The County uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, the County generally uses its estimated incremental borrowing rate as the discount rate for leases. • The lease term includes the noncancellable period of the lease. Lease payments included in the measurement of the lease liability are composed of fixed payments and purchase option prices that the County is reasonably certain to exercise. The County monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability. Net Position Flow Assumptions Sometimes the County will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted net position and unrestricted net position in the government-wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the County's policy to consider restricted net position to have been depleted before unrestricted net position is applied. Fund Balance Flow Assumptions Sometimes the County will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the County's policy to consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance. Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last. 40 NOTES TO THE FINANCIAL STATEMENTS NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Assets, Liabilities, Deferred Outflows/Inflows of Resources and Net Position/Fund Balance (Continued) Fund Balance Policies Fund balance of governmental funds is reported in various categories based on the nature of any limitations requiring the use of resources for specific purposes. The County itself can establish limitations on the use of resources through either a commitment (committed fund balance) or an assignment (assigned fund balance). The committed fund balance classification includes amounts that can be used only for the specific purposes determined by a formal action of the County's highest level of decision-making authority. The governing Council is the highest level of decision-making authority for the County that can, by adoption of an ordinance prior to the end of the fiscal year, commit fund balance. Once adopted, the limitation imposed by the ordinance remains in place until a similar action is taken (the adoption of another ordinance)to remove or revise the limitation. Amounts in the assigned fund balance classification are intended to be used by the County for specific purposes but do not meet the criteria to be classified as committed. The governing Council has, by resolution, authorized the administrator to assign fund balance. The Council may also assign fund balance as it does when appropriating fund balance to cover a gap between estimated revenue and appropriations in the subsequent year's appropriated budget. Unlike commitments, assignments generally only exist temporarily. In other words, an additional action does not normally have to be taken for the removal of an assignment. Conversely, as discussed above, an additional action is essential to either remove or revise a commitment. Revenues and Expenditures/Expenses Program Revenues Amounts reported as 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 (including special assessments) that are restricted to meeting the operational or capital requirements of a particular function or segment. All taxes, including those dedicated for specific purposes, and other internally dedicated resources are reported as general revenues rather than as program revenues. 41 NOTES TO THE FINANCIAL STATEMENTS NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Revenues and Expenditures/Expenses (Continued) Property Taxes The County ordinance provides for the taxation of all real and personal property located within the County limits on the first day of January. Motor vehicle taxes are billed and collected by the County Treasurer on a monthly basis. Other personal and real property taxes are levied by the County after September of each year and become due and payable immediately upon receipt by the taxpayer. Real property taxes are delinquent after January 15th. Assessed property is subject to lien one year from the levy date if taxes remain unpaid. Compensated Absences Vacation — The County's policy permits employees to accumulate earned but unused vacation benefits, which are eligible for payment upon separation from County service. The liability for such leave is reported as incurred in the government-wide financial statements. A liability for those amounts is recorded in the governmental funds only if the liability has matured as a result of employee resignation or retirement. The liability for compensated absences includes salary-related benefits, where applicable, and is paid from the general fund for the most part with a small portion related to other nonmajor governmental funds. Sick Leave—Accumulated sick leave lapses when employees leave the employment of the County and, upon separation from service, no monetary obligation exists. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions. These estimates affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenditures/expenses during the reporting period. Actual results could differ from those estimates. NOTE 2. DEPOSITS AND INVESTMENTS Interest Rate Risk Interest rate risk is the risk that changes in interest rates that will adversely affect the fair value of an investment. Investments held for longer periods are subject to increased risk of adverse interest rate changes. The County does not have a formal investment policy that limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. 42 NOTES TO THE FINANCIAL STATEMENTS NOTE 2. DEPOSITS AND INVESTMENTS (CONTINUED) Credit Risk Credit risk is the risk that an issuer to an investment will not fulfill its obligations. In accordance with South Carolina state statutes, the County's investment decisions are at the discretion of the elected County Treasurer, subject to the statutes that authorize the County and its component units to invest in the following: 1. Obligations of the United States and agencies thereof; 2. Obligations issued by the Federal Financing Bank, Federal Farm Credit Bank, the Bank of Cooperatives, the Federal Intermediate Credit Bank, the Federal Land Banks, the Federal Home Loan Banks, the Federal Home Loan Mortgage Corporation, the Federal National Mortgage Association, the Government National Mortgage Association, the Federal Housing Administration, 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 agencies; 3. General obligations of the State of South Carolina or any of its political units; 4. Savings and loan association deposits to the extent insured by the Federal Deposit Insurance Corporation; 5. Certificates of Deposit and repurchase agreements collateralized by securities of the type described in 1. and 2. above, held by a third-party as escrow agent or custodian, of a fair value not less than the amount of certificates of deposit and repurchase agreements so secured, including interest; and 6. No-load open and closed-end management type investment companies or investment trusts registered under the Investment Company Act of 1940, as amended, where the investment is made by a bank or trust company, savings and loan association, or other financial institution when acting as trustee or agent for a bond or other debt issue of that local government unit. In addition, South Carolina state statues authorize the County to invest in the South Carolina Local Government Investment Pool ("SCLGIP"). The SCLGIP is an investment mechanism authorized by the Legislature and signed into law on May 13, 1983, to provide local governments an opportunity to acquire maximum returns on investments by pooling available funds with funds from other political subdivisions. The SCLGIP is permitted under South Carolina 1976 Code of Laws Section 6-6-10, Section 12-45-220 and Section 11-1-60 to purchase obligations of the United States government treasuries, United States government agencies, repurchase agreements fully collateralized by United States government treasuries or agencies, corporate securities and commercial paper that bear an investment grade rating of at least two nationally recognized rating services. 43 NOTES TO THE FINANCIAL STATEMENTS NOTE 2. DEPOSITS AND INVESTMENTS (CONTINUED) Concentration of Credit Risk Concentration of credit risk is the risk of loss attributed to the magnitude of the County's investment in a single issuer. The County places no limit on the amount that may be invested in any one issuer. See below for additional information regarding the County's deposits. All funds of the Fire and Rescue Commission and the Library are included in the funds administered by the County Treasurer. The only exception to this is that the funds of the Pillars4Hope are not included in the funds administered by the County Treasurer. Percentage Fair Value of Portfolio Repurchase agreements $ 31,969,310 56% Certificates of deposit 8,078,795 14% Savings accounts 98,208 0% Checking accounts 17,001,374 30% Cash on hand 3,671 0% Deposits held by County Treasurer $ 57,151,358 100% Custodial Credit Risk — Deposits In the case of deposits, custodial credit risk is the risk that in the event of a bank failure, the County's deposits may not be returned to it. Deposits of the County are subject to South Carolina state statutes for custodial credit risk. The statutes provide that banks accepting deposits of funds from local government units must furnish an indemnity bond or pledge as collateral obligations of the United States, South Carolina, political subdivisions of South Carolina, the Federal National Mortgage Association, the Federal Home Loan Bank, the Federal Farm Credit Bank, or the Federal Home Loan Mortgage Corporation. Driven by the aforementioned statute, the County's informal policy requires deposits to be secured by collateral valued at fair or par, whichever is lower, less the amount of the Federal Deposit Insurance Corporation ("FDIC") insurance. Deposited funds may be invested in demand or time deposits, continuously and fully secured with direct obligations of or obligations guaranteed by the United States of America having a fair value not less than the amount of such monies. Custodial credit risk for deposits is not formally addressed by bond indentures. Indentures require that restricted deposits be maintained by the trustee bank, as custodian, specified in the indenture. As of June 30, 2022, the County's bank balance of$57,274,460 was fully collateralized by pledging financial institutions trust departments in the County's name. 44 NOTES TO THE FINANCIAL STATEMENTS NOTE 2. DEPOSITS AND INVESTMENTS (CONTINUED) Custodial Credit Risk— Investments In the case of investments, custodial credit risk is the risk that, in the event of the failure of the counterparty, the County will not be able to recover the value of its investments or collateral securities that are in possession of an outside party. The County does not have a formal investment policy regarding custodial credit risk. NOTE 3. RECEIVABLES Receivables as of year-end for the County's individual major funds, nonmajor funds in the aggregate and component units, including the applicable allowances for uncollectible accounts, are as follows: Primary Government Ca pita I Tota I Special Capital SalesTax Nonmajor Primary General Revenue Projects Debt Service Governmental Government Taxes receivable $ 7,675,980 $ - $ - $ - $ 491,798 $ 8,167,778 Accounts receivable 287,339 - - - - 287,339 Other receivables 2,071,061 461,877 1,915,822 1,571,855 680,278 6,700,893 Less:allowance (5,741,744) - - - (362,583) (6,104,327) Net receivables $ 4,292,636 $ 461,877 $ 1,915,822 $ 1,571,855 $ 809,493 $ 9,051,683 Component Units Fire and Fire and Total Memorial Rescue Component Library Commission Pillars4Hope Units Taxes receivable $ - $ 2,110,053 $ - $ 2,110,053 Accounts receivable - 16,701,637 46,072 16,747,709 Other receivables 4,601 30,153 69,703 104,457 Less:allowance - (16,939,315) (7,291) (16,946,606) Net receivables $ 4,601 $ 1,902,528 $ 108,484 $ 2,015,613 45 NOTES TO THE FINANCIAL STATEMENTS NOTE 4. INTERFUND TRANSFERS Interfund transfers for the year ended June 30, 2022, consisted of the following: Major Go�rnmental Funds Transfers In Transfers Out General Fund $ 5,076,786 $ 4,215,178 Special Revenue Fund 720,270 - Coronavirus Local Fiscal Recovery Fund - 2,994,196 Capital Projects Fund 4,178,064 350,000 Capital Sales Tax Debt Service Fund - 2,013,645 Nonmajor Governmental Funds 1,508,555 1,910,656 Component Unit 817,508 817,508 Total interfund balances $ 12,301,183 $ 12,301,183 Transfers are used: 1)to move revenues from the fund with collection authorization to the fund with expenditure authorization, and 2) to use unrestricted revenues collected in the general fund to finance various programs accounted for in other funds in accordance with budgetary authorizations, including amounts provided as matching funds for various grant programs. NOTE 5. CAPITAL ASSETS Capital asset activity for the year ended June 30, 2022 was as follows: Balance Balance Governmental activities June 30,2021 Additions Deletions Transfers June 30,2022 Capital assets not being depreciated: Land $ 3,477,276 $ 343,821 $ (363,930) $ 282,416 $ 3,739,583 Land-infrastructure 4,595,932 - - - 4,595,932 Construction in progress 1,446,849 2,937,692 - (882,752) 3,501,789 Total capital assets notbeingdepreciated 9,520,057 3,281,513 (363,930) (600,336) 11,837,304 Capital assets being depreciated: Buildings and improvements 46,469,973 825,396 - - 47,295,369 Improvements otherthan buildings 12,268,437 198,960 - 167,207 12,634,604 Equipmentand vehicles 26,201,472 2,368,312 (251,374) 433,129 28,751,539 Infrastructure 14,436,202 - - - 14,436,202 Total capital assets being depreciated 99,376,084 3,392,668 (251,374) 600,336 103,117,714 Less accumulated depreciation: Buildings and improvements (16,716,821) (1,129,315) - - (17,846,136) Improvements otherthan buildings (7,194,365) (552,200) - - (7,746,565) Equipmentand vehicles (18,859,245) (1,564,972) 247,332 - (20,176,885) Infrastructure (8,557,615) (585,434) - - (9,143,049) Total accumulated depreciation (51,328,046) (3,831,921) 247,332 - (54,912,635) Total capital assets being depreciated,net 48,048,038 (439,253) (4,042) 600,336 48,205,079 Governmental activities capital assets,net $ 57,568,095 $ 2,842,260 $ (367,972) $ - $ 60,042,383 46 NOTES TO THE FINANCIAL STATEMENTS NOTE 5. CAPITAL ASSETS (CONTINUED) Depreciation expense was charged to functions of the primary government as follows: Governmental Activities General government $ 226,235 Judicial 70,376 Roads and bridges 1,202,635 Public safety 941,877 Solid waste 355,921 Recreation and culture 932,218 Health and human services 102,659 Total Governmental Activities Depreciation Expense $ 3,831,921 Discretely Presented Component Units Fire and Rescue Commission activity for the year ended June 30, 2022 is as follows: Balance Balance Fire and Rescue Commission June 30,2021 Additions Deletions Transfers June 30,2022 Capital assets not being depreciated: Land $ 542,365 $ - $ - $ - $ 542,365 Construction in progress 935,473 327,004 - - 1,262,477 Total capital assets not being depreciated 1,477,838 327,004 - - 1,804,842 Capital assets being depreciated: Buildings and improvements 7,353,862 - - - 7,353,862 Improvements other than buildings 147,532 - - - 147,532 Equipment and vehicles 21,081,940 384,504 - - 21,466,444 Total capital assets being depreciated 28,583,334 384,504 - - 28,967,838 Less accumulated depreciation: Buildings and improvements (2,496,670) (184,412) - - (2,681,082) Improvements other than buildings (135,864) (2,466) - - (138,330) Equipment and vehicles (15,712,138) (874,488) - - (16,586,626) Total accumulated depreciation (18,344,672) (1,061,366) - - (19,406,038) Total capital assets being depreciated, net 10,238,662 (676,862) - - 9,561,800 Fire and rescue commission capital assets, net $ 11,716,500 $ (349,858) $ - $ - $ 11,366,642 Depreciation expense incurred by the Fire and Rescue Commission for the fiscal year ended June 30, 2022 was$1,061,366. 47 NOTES TO THE FINANCIAL STATEMENTS NOTE 5. CAPITAL ASSETS (CONTINUED) Discretely Presented Component Units (Continued) Memorial Library activity for the year ended June 30, 2022 is as follows: Balance Balance Memorial Library June 30,2021 Additions Deletions Transfers June 30,2022 Capital assets being depreciated: Buildings and improvements $ 119,026 $ - $ - $ - $ 119,026 Librarymaterials 2,154,624 83,309 (34,789) - 2,203,144 Equipmentand vehicles 361,423 - - - 361,423 Total capital assets being depreciated 2,635,073 83,309 (34,789) - 2,683,593 Less accumulated depreciation: Buildings and improvements (119,026) - - - (119,026) Library materials (1,936,097) (87,006) 34,789 - (1,988,314) Equipmentand vehicles (271,174) (17,247) - - (288,421) Total accumulated depreciation (2,326,297) (104,253) 34,789 - (2,395,761) Total capital assets being depreciated,net 308,776 (20,944) - - 287,832 Memorial library capital assets,net $ 308,776 $ (20,944) $ - $ - $ 287,832 Depreciation expense incurred by the Memorial Library for the fiscal year ended June 30, 2022 was $104,253. 48 NOTES TO THE FINANCIAL STATEMENTS NOTE 6. LEASES Lessee — Lease Assets A schedule of lease asset activity for the County for the year ended for June 30, 2022 is as follows: Beginning Ending Balance Additions Remeasurements Deductions Balance Governmental activities: Lease assets: Equipment $ 3,183,316 $ 1,154,398 $ - $ (468,220) $ 3,869,494 Total 3,183,316 1,154,398 - (468,220) 3,869,494 Less accumulated amortization for: Equipment (567,470) (623,182) - 153,119 (1,037,533) Total accumulated amortization (567,470) (623,182) - 153,119 (1,037,533) Total lease assets, net $ 2,615,846 $ 531,216 $ - $ (315,101) $ 2,831,961 NOTE 7. LONG-TERM OBLIGATIONS Long-term obligations for the year ended June 30, 2022 is as follows: Balance Balance Due Within June 30,2021 Additions Reductions June 30,2022 One Year Primary Government Governmental activities: Bonds: General obligation $ 18,891,093 $ 2,563,398 $ 7,181,093 $ 14,273,398 $ 5,028,398 Bond premiums 220,206 264,475 76,002 408,679 - Financed purchases 833,292 5,500,000 1,371,071 4,962,221 1,083,556 Leases 2,615,846 1,154,398 1,423,704 2,346,540 761,475 Net pension liability 35,319,047 3,602,831 10,334,810 28,587,068 - Total OPEB liabiliry 4,360,196 1,898,327 29,671 6,228,852 - Compensated absences 852,547 354,301 209,004 997,844 149,677 Landfill closure and post-closure costs 583,878 22,682 - 606,560 - Governmental activity long-term liabilities $ 63,676,105 $ 15,360,412 $ 20,625,355 $ 58,411,162 $ 7,023,106 Landfill post-closure costs, net pension liability, compensated absences, and total OPEB liability are generally liquidated by the General Fund. The County implemented the provisions of GASB Statement No. 87 Leases, as of July 1, 2021. Beginning balances were restated as a result of this implementation. As the lease liability and leased assets were the same, there was no effect on net position. 49 NOTES TO THE FINANCIAL STATEMENTS NOTE 7. LONG-TERM OBLIGATIONS (CONTINUED) Balance Balance Due Within Component Units June 30,2021 Additions Reductions June 30,2022 One Year Fire and rescue commission Bonds: General obligation $ 7,415,000 $ 7,000,000 $ 3,035,000 $ 11,380,000 $ 1,060,000 Bond premiums 63,652 198,728 13,672 248,708 - Financed purchases 985,331 - 320,980 664,351 328,366 Net pension liability 13,983,150 2,048,184 5,137,308 10,894,026 - Total OPEB liability 795,869 346,504 5,416 1,136,957 - Compensated absences 346,396 219,284 148,534 417,146 62,572 Governmental activity long-term liabilities $ 23,589,398 $ 9,812,700 $ 8,660,910 $ 24,741,188 $ 1,450,938 Memorial library Net pension liability $ 915,621 $ 75,601 $ 237,989 $ 753,233 $ - Total OPEB liability 528,849 230,248 3,598 755,499 - Compensated absences 18,430 19,372 23,999 13,803 2,071 Governmental activity long-term liabilities $ 1,462,900 $ 325,221 $ 265,586 $ 1,522,535 $ 2,071 Primary Government Bonds Payable There are a number of limitations and restrictions contained in the various bond indentures. Management believes the County is in compliance with all significant limitations and restrictions. The South Carolina constitution permits the County to incur general obligation (general purpose) bonded indebtedness not to exceed 8°/o of the assessed value of taxable property in the County. At June 30, 2022, the County was in compliance with this requirement. 50 NOTES TO THE FINANCIAL STATEMENTS NOTE 7. LONG-TERM OBLIGATIONS (CONTINUED) Primary Government (Continued) Bonds Payable (Continued) The following is a summary of each long-term bond obligation of the governmental activities of the County at June 30, 2022: General Obligation Bonds Amount $5,395,000 General Obligation Bond, Series 2015, with interest of 3.498%, annual principal and interest payments beginning in 2017, matures 2032, for the purpose of refunding the special source revenue bond and for economic dev�elopment purposes. $ 3,650,000 $29,000,000 General Obligation Bond, Series 2015, 1.82% annual interest, annual principal and interest payments beginning in 2016, matures 2024, for the purpose of County-wide projects by wters. 8,060,000 $578,398 General Obligation Bond, Series 2021, 1.27% annual interest, annual principal and interest payments beginning in 2021, matures 2022, for the purpose of funding shortfalls in revenues to pay debt service. 578,398 $1,985,000 General Obligation Bond, Series 2022, 4.00% annual interest, annual principal and interest payments beginning in 2023, matures 2027, for the purpose of refunding outstanding General Obligation Bonds, Series 2012 for debt service savings. 1,985,000 $ 14,273,398 The annual requirements to amortize the bonds are as follows: Year Ending General Obligation Bonds June 30, Principal Interest Total 2023 $ 5,028,398 $ 351,105 $ 5,379,503 2024 4,580,000 243,943 4,823,943 2025 510,000 176,468 686,468 2026 525,000 158,748 683,748 2027 550,000 139,818 689,818 2028-2032 3,080,000 369,810 3,449,810 $ 14,273,398 $ 1,439,892 $ 15,713,290 51 NOTES TO THE FINANCIAL STATEMENTS NOTE 7. LONG-TERM OBLIGATIONS (CONTINUED) Primary Government (Continued) Refunding During the current year, the County issued $1.985 million General Obligation Bond Series 2022 that fully refunded the $4 million General Obligation Bonds Series 2012. The refunding resulted in the County saving $435,000 in debt service required from 2023 through 2032 to service the Series 2012 Bonds versus servicing the new debt Series 2022 General Obligation Bonds including the costs associated with completing the refunding. Financed Purchase Agreements The County has entered into a financed purchase agreement for financing the acquisition of certain equipment. The agreements qualify as financed purchases for accounting purposes (titles transfer at the end of the agreement). Interest rates are 1.00%, payments are made monthly, and the terms extend through 2027. The following is a schedule of debt service to maturity as of June 30, 2022: Year Ending Financed Purchases June 30, Principal Interest Total 2023 $ 1,083,556 $ 24,811 $ 1,108,367 2024 1,094,418 36,058 1,130,476 2025 1,105,390 25,086 1,130,476 2026 1,116,472 14,005 1,130,477 2027 562,385 2,812 565,197 $ 4,962,221 $ 102,772 $ 5,064,993 Lessee—Lease Liabilities The County entered into numerous lease agreements as lessee for the use of equipment ranging from four to five years. An initial lease liability was recorded in the amount of $2,615,846. As of June 30, 2022, the value of the lease liability was $2,346,540. The County is required to make monthly principal and interest payments ranging from $322 to $913. The leases have an interest rate of 2.5%. The right to use assets have a useful life from five to ten years. The value of the right- to-use assets as of the end of the current fiscal year were $2,831,961 and had accumulated amortization of$1,037,533. 52 NOTES TO THE FINANCIAL STATEMENTS NOTE 7. LONG-TERM OBLIGATIONS (CONTINUED) Primary Government (Continued) Lessee—Lease Liabilities (Continued) The future minimum lease obligations and the net present value of these minimum lease payments as of June 30, 2022 are as follows: Fiscal Year Principal Interest Total 2023 $ 761,475 $ 96,975 $ 858,450 2024 731,399 93,964 825,363 2025 481,408 68,468 549,876 2026 262,216 42,829 305,045 2027 110,042 21,816 131,858 Total $ 2,346,540 $ 324,052 $ 2,670,592 Landfill Closure and Post-Closure Care Costs State and federal laws and regulations require the County to place a final cover on its landfill sites when each site stops accepting waste and to perform certain maintenance and monitoring functions at the sites for 20 years after closure. Although closure and post-closure care costs will be paid only near or after the date that the landfill stops accepting waste, the County reports a portion of these closure and post-closure care costs as an operating expense in each period based on landfill capacity used as of each balance sheet date. The $606,560 reported as an accrual for landfill closure and post-closure care costs at June 30, 2022, includes the cumulative amount reported less amounts paid to date for the open site based on the following information. Estimated Total Costs Estimated Percentage Remaining Balance of Remaining Landfill Capacity to be Life Used Closure Post-closure Total Recognized 9 years 73% $ 680,520 $ 116,568 $ 797,088 $ 190,528 These amounts are based on what it would cost to perform all closure and post-closure care in fiscal year 2022. Actual cost may be higher due to inflation, changes in technology, or changes in regulations. The Council has restricted cash of $606,560 for payment of closure and post-closure care costs. 53 NOTES TO THE FINANCIAL STATEMENTS NOTE 7. LONG-TERM OBLIGATIONS (CONTINUED) Primary Government (Continued) Discretely Presented Component Units Fire and rescue general obligation bonds payable at June 30, 2022, consist of the following: General Obligation Bonds Amount $6,000,000 Fire Protection Service General Obligation Bonds, Series 2018, 3.0% annual interest, annual principal and interest payments beginning in 2020, matures 2029. $ 4,380,000 $7,000,000 Fire Protection Service General Obligation Bonds, Series 2022, variable interest rate of 2.0% - 3.0%, annual principal and interest payments beginning in 2023, matures 2036. 7,000,000 $ 11,380,000 Future debt service requirements for fire and rescue general obligation bonds outstanding at June 30, 2022 are as follows: Year Ending General Obligation Bonds June 30, Principal Interest Total 2023 $ 1,060,000 $ 280,944 $ 1,340,944 2024 1,085,000 264,250 1,349,250 2025 1,105,000 236,650 1,341,650 2026 1,140,000 208,500 1,348,500 2027 645,000 179,450 824,450 2028-2032 3,390,000 612,500 4,002,500 2033-2036 2,955,000 183,175 3,138,175 $ 11,380,000 $ 1,965,469 $ 13,345,469 Financed Purchase Agreements The Fire and Rescue Commission has entered into a financed purchase agreement for financing the acquisition of certain equipment. The agreements qualify as financed purchases for accounting purposes (titles transfer at the end of the agreement). Interest rates are 2.32°/o, payments are made monthly, and the terms extend through 2024. Principal payments for the fiscal year ended June 2023 and 2024 are $328,366 and $335,985, respectively. Interest payments for the fiscal year ended June 30, 2023 and 2024 are $15,413 and $7,724, respectively. 54 NOTES TO THE FINANCIAL STATEMENTS NOTE 8. POST-EMPLOYMENT BENEFITS OTHER THAN PENSIONS Plan Administration and Benefits The County, as authorized by the County Commission, administers a single-employer defined benefit healthcare plan (the "Retiree Health Plan"). The Retiree Health Plan provides lifetime healthcare insurance for eligible retirees and their spouses through the County's group health insurance plan, which covers both active and retired members. Benefit provisions are established by the County Council. Retiree medical coverage levels for retirees and their families are the same as coverage provided to active County employees in accordance with the terms and conditions of the current State Health Insurance Plan. The cost assistance provided by the County is calculated based on 50% of the cost of the single plan under which the employee is covered for healthcare added to 50% of the cost of the single plan for dental coverage. The employees pay the remaining 50% plus any additional coverage for spouse or children and a $3.00 administrative charge. Retirees not meeting the condition stated above must pay 100% of the total premium plus the $3.00 administrative charge. Even the provided benefits shown above are only "promised" on an annual basis and are not guaranteed beyond the annual appropriation and sufficiency of the annual appropriation to cover 50% of the cost. There are no "opt-ouY' benefits paid under any conditions nor are employees grated and sick-leave "pay-ouY' credit toward health insurance costs. An employee who retires with 20 years of full-time employment, but is not age 62 at retirement may continue under the County's benefit program paying 100% of the plan costs until reaching the age of 62 at which time, he or she will be eligible for the 50% cost assistance for the employee. No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75 and a separate report was not issued for the PHCB Plan. Plan Membership Membership of the Retiree Health Plan consisted of the following at June 30, 2021, the date of the latest actuarial valuation: Active participants 410 Retirees and beneficiaries currently receiving benefits 50 Total plan members 460 55 NOTES TO THE FINANCIAL STATEMENTS NOTE 8. POST-EMPLOYMENT BENEFITS OTHER THAN PENSIONS (CONTINUED) Contributions Contribution requirements are established annually by the County Council. The required contribution is based on projected "pay as you go" financing requirements. For the year ended June 30, 2022, the County contributed $38,681 for the pay as you go benefits for the Retiree Health Plan. Total OPEB Liability of the County Effective July 1, 2017, the County implemented the provisions of GASB Statement No. 75, Accounting and Financial Reporting for Post-employment Benefits Other Than Pensions, which significantly changed the County's accounting for OPEB amounts. The information disclosed below is presented in accordance with this new standard. The County's total OPEB liability was measured as of June 30, 2021 and was determined by an actuarial valuation as of June 30, 2021. Actuarial assumptions. The total OPEB liability in the June 30, 2021 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Discount rate: 2.16% as of June 30, 2021. Healthcare cost trend rate: Initial rate of 6.40% declining to an ultimate rate of 4.00% after 15 years. Ultimate trend rate includes a 0.15% adjustment for the excise tax. Inflation rate: 2.25% Salary increase: 3.50% to 10.50% for PORS and 3.00% to 9.50% for SCRS, including inflation. Participation rate: 70% if retiree has at least 20 years of service and is at least 60 years old at retirement. 35% if retiree has at least 20 years of service and younger than 60 years old at retirement. 20% for retirees that ha�e fewer than 20 years of service. Mortality rates were based on the 2020 Public Retirees of South Carolina Mortality Table for males or females, as appropriate, with adjustments for mortality improvements based on Scale UMP. The actuarial assumptions used in the June 30, 2021 valuation was based on the results of an actuarial experience study for 2020.. 56 NOTES TO THE FINANCIAL STATEMENTS NOTE 8. POST-EMPLOYMENT BENEFITS OTHER THAN PENSIONS (CONTINUED) Discount rate The discount rate used to measure the total OPEB liability was 2.16%. This rate was determined using an index rate of 20-year, tax-exempt general obligation municipal bonds with an average rating of AA/Aa or higher. The discount rate changed from 2.45% as of June 30, 2020 to 2.16% as of June 30, 2021. Changes in the Total OPEB Liability of the County The changes in the total OPEB liability of the County, and respective component units, for the year ended June 30, 2022, were as follows: Total OPEB Liability Primary Fire 8�Rescue Memorial Government Commission Library Beginning Balance $ 4,360,196 $ 795,869 $ 528,849 Changes for the year: Senrice cost 281,668 51,413 34,153 Interest 106,464 19,433 12,909 Difference between expected and actual experience 1,069,692 195,250 129,702 Effect of assumption changes 440,503 80,408 53,484 Benefit payments (29,671) (5,416) (3,598) Net changes 1,868,656 341,088 226,650 Ending Balance $ 6,228,852 $ 1,136,957 $ 755,499 The required schedule of changes in the County's total OPEB liability and related ratios immediately following the notes to the financial statements presents multi-year trend information about the total OPEB liability. 57 NOTES TO THE FINANCIAL STATEMENTS NOTE 8. POST-EMPLOYMENT BENEFITS OTHER THAN PENSIONS (CONTINUED) Sensitivity of the Total OPEB Liability to Changes in the Discount Rate The following presents the total OPEB liability of the County, and the respective component units, as well as what the County's, and respective component uniYs total OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (1.16%) or 1-percentage- point higher(3.16%)than the current discount rate: Sensitivity of the Total OPEB Liability to Changes in the Discount Rate Current 1%Decrease Discount Rate 1%Increase (1.16%) (2.16%) (3.16%) Primary Government $ 7,637,243 $ 6,228,852 $ 5,134,027 Component Units Fire and Rescue Commission 1,394,021 1,136,957 937,111 Memorial Library 926,028 755,499 622,509 Sensitivity of the Total OPEB Liability to Changes in the Healthcare Cost Trend Rates The following presents the total OPEB liability of the County, and respective component units, as well as what the County's and component uniYs total OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower or 1-percentage-point higher than the current healthcare cost trend rates: Sensitivity of the Total OPEB Liability to Changes in the Healthcare Cost Trend Rates Current Healthcare Cost Trend 1%Decrease Assumption Rate 1%Increase Primary Government $ 4,933,951 $ 6,228,852 $ 7,984,001 Component Units Fire and Rescue Commission 900,591 1,136,957 1,457,314 Memorial Library 598,250 755,499 968,073 58 NOTES TO THE FINANCIAL STATEMENTS NOTE 8. POST-EMPLOYMENT BENEFITS OTHER THAN PENSIONS (CONTINUED) Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB At June 30, 2022, the County reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Deferred Deferred OutFlows Inflows of Resources of Resources Difference between expected and actual experience $ 947,862 $ 131,392 Assumption changes 909,065 173,278 Employer contributions subsequent to the measurement date 42,181 - Total $ 1,899,108 $ 304,670 County contributions subsequent to the measurement date of $42,181, for the Retiree Health Plan are deferred outflows of resources and will be recognized as a reduction of the total OPEB liability in the year ending June 30, 2023. Amounts reported as deferred outflows of resources and deferred inflows of resources for the County related to OPEB will be recognized in OPEB expense as follows: Year ending June 30, 2023 $ 187,927 2024 187,927 2025 187,927 2026 187,927 2027 215,953 Thereafter 584,596 Total $ 1,552,257 59 NOTES TO THE FINANCIAL STATEMENTS NOTE 8. POST-EMPLOYMENT BENEFITS OTHER THAN PENSIONS (CONTINUED) Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB (Continued) At June 30, 2022, the Fire and Rescue Commission reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Deferred Deferred Outflows Inflows of Resources of Resources Difference between expected and actual experience $ 173,013 $ 23,983 Assumption changes 165,934 31,629 Employer contributions subsequent to the measurement date 7,699 - Total $ 346,646 $ 55,612 Fire and Rescue Commission contributions subsequent to the measurement date of$7,699, for the Retiree Health Plan are deferred outflows of resources and will be recognized as a reduction of the total OPEB liability in the year ending June 30, 2023. Amounts reported as deferred outflows of resources and deferred inflows of resources for the Fire and Rescue Commission related to OPEB will be recognized in OPEB expense as follows: Year ending June 30, 2023 $ 34,302 2024 34,302 2025 34,302 2026 34,302 2027 39,418 Thereafter 106,709 Total $ 283,335 60 NOTES TO THE FINANCIAL STATEMENTS NOTE 8. POST-EMPLOYMENT BENEFITS OTHER THAN PENSIONS (CONTINUED) Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB (Continued) At June 30, 2022, the Memorial Library reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Deferred Deferred Outflows Inflows of Resources of Resources Difference between expected and actual experience $ 114,930 $ 15,931 Assumption changes 110,298 21,022 Employer contributions subsequent to the measurement date 5,115 - Total $ 230,343 $ 36,953 Memorial Library contributions subsequent to the measurement date of $5,115, for the Retiree Health Plan are deferred outflows of resources and will be recognized as a reduction of the total OPEB liability in the year ending June 30, 2023. Amounts reported as deferred outflows of resources and deferred inflows of resources for the Memorial Library related to OPEB will be recognized in OPEB expense as follows: Year ending June 30, 2023 $ 22,786 2024 22,786 2025 22,786 2026 22,786 2027 26,185 Thereafter 70,946 Total $ 188,275 61 NOTES TO THE FINANCIAL STATEMENTS NOTE 8. POST-EMPLOYMENT BENEFITS OTHER THAN PENSIONS (CONTINUED) OPEB Expense For the year ended June 30, 2022, the County, Fire and Rescue Commission, and the Memorial Library recognized OPEB expense of$576,058; $105,148; and $69,848, respectively. OPEB expense for the Retiree Health Plan is calculated as follows: Primary Fire 8� Rescue Memorial Description Government Commission Library Service cost $ 281,668 $ 51,413 $ 34,153 Interest on the total OPEB liability 106,464 19,433 12,909 Recognition of deferred outflows/inflows of resources due to liabilities 14,333 2,616 1,738 Amortization of prior year deferred outflows/inflows of resources due to liabilities 173,593 31,686 21,048 Total employer OPEB expense $ 576,058 $ 105,148 $ 69,848 NOTE 9. RETIREMENT PLAN Description of the Entity The South Carolina Public Employee Benefit Authority ("PEBA"), created July 1, 2012, is the state agency responsible for the administration and management of the various retirement systems and retirement programs of the state of South Carolina, including the State Optional Retirement Program and the S.C. Deferred Compensation Program, as well as the state's employee insurance programs. As such, PEBA is responsible for administering the South Carolina Retirement Systems' ("Systems") five defined benefit pension plans. PEBA has an 11-member Board of Directors, appointed by the Governor and General Assembly leadership, which serves as custodian, co- trustee and co-fiduciary of the Systems and the assets of the retirement trust funds. The Retirement System Investment Commission (Commission as the governing body, RSIC as the agency), created by the General Assembly in 2005, has exclusive authority to invest and manage the retirement trust funds' assets. The Commission, an eight-member board, serves as co-trustee and co-fiduciary for the assets of the retirement trust funds. By law, the State Fiscal Accountability Authority ("SFAA"), which consists of five elected officials, also reviews certain PEBA Board decisions regarding the actuary of the Systems. 62 NOTES TO THE FINANCIAL STATEMENTS NOTE 9. RETIREMENT PLAN (CONTINUED) Description of the Entity (Continued) For purposes of ineasuring the net pension liability, deferred outflows and inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Systems and additions to/deductions from the Systems fiduciary net position have been determined on the accrual basis of accounting as they are reported by the Systems in accordance with GAAP. For this purpose, revenues are recognized when earned and expenses are recognized when incurred. Benefit and refund expenses are recognized when due and payable in accordance with the terms of the plan. Investments are reported at fair value. PEBA — Insurance Benefits issues audited financial statements and required supplementary information for the OPEB Trust Funds. This information is publicly available through the PEBA — Insurance Benefits' link on PEBA's website at www.peba.sc.gov or a copy may be obtained by submitting a request to PEBA — Insurance Benefits, 202 Arbor Lake Drive, Columbia, SC 29223. PEBA is considered a division of the primary government of the state of South Carolina and, therefore, OPEB Trust fund financial information is also included in the Annual Comprehensive Financial Report("ACFR")of the state. Plan Description The County contributes to the South Carolina Retirement System ("SCRS"), a cost-sharing multiple- employer defined benefit pension plan that was established effective July 1, 1945, pursuant to the provisions of Section 9-1-20 of the South Carolina Code of Laws for the purpose of providing retirement allowances and other benefits for employees of the state, its public school districts and political subdivisions. In addition to the SCRS pension plan, the County also contributes to the PORS, a cost-sharing multiple-employer defined benefit pension plan that was established effective July 1, 1962, pursuant to the provisions of Section 9-11-20 of the South Carolina Code of Laws for the purpose of providing retirement allowances and other benefits for police officers and firemen of the state and its political subdivisions. 63 NOTES TO THE FINANCIAL STATEMENTS NOTE 9. RETIREMENT PLAN (CONTINUED) Membership Membership requirements are prescribed in Title 9 of the South Carolina Code of Laws. A brief summary of the requirements under each System is described below. South Carolina Retirement System ("SCRS") — Generally, all employees of covered employers are required to participate in and contribute to the SCRS as a condition of employment. This plan covers general employees, teachers and individuals newly elected to the South Carolina General Assembly beginning with the November 2012 general election. An employee member of the SCRS with an effective date of inembership prior to July 1, 2012, is a Class Two member. An employee member of the SCRS with an effective date of inembership on or after July 1, 2012, is a Class Three member. South Carolina Police Officers' Retirement System ("PORS") — To be eligible for PORS membership, an employee must be required by the terms of his/her employment, by election or appointment, to preserve public order, protect life and property, and detect crimes in the state; to prevent and control property destruction by fire; or to serve as a peace officer employed by the Department of Corrections, the Department of Juvenile Justice, or the Department of Mental Health. Probate judges and coroners may elect membership in PORS. Magistrates are required to participate in PORS for service as a magistrate. PORS members, other than magistrates and probate judges, must also earn at least$2,000 per year and devote at least 1,600 hours per year to this work, unless exempted by statute. An employee member of the System with an effective date of membership prior to July 1, 2012, is a Class Two member. An employee member of the System with an effective date of inembership on or after July 1, 2012, is a Class Three member. Benefits Benefit terms are prescribed in Title 9 of the South Carolina Code of Laws. PEBA does not have the authority to establish or amend benefit terms without a legislative change in the code of laws. Key elements of the benefit calculation include the benefit multiplier, years of service, and average final compensation. A brief summary of benefit terms for each System is presented below. South Carolina Retirement System ("SCRS") — A Class Two member who has separated from service with at least five or more years of earned service is eligible for a monthly pension at age 65 or with 28 years credited service regardless of age. A member may elect early retirement with reduced pension benefits payable at age 55 with 25 years of service credit. A Class Three member who has separated from service with at least eight or more years of earned service is eligible for a monthly pension upon satisfying the Rule of 90 requirement that the total of the member's age and the member's creditable service equals at least 90 years. Both Class Two and Class Three members are eligible to receive a reduced deferred annuity at age 60 if they satisfy the five- or eight-year earned service requirement, respectively. An incidental death benefit is also available to beneficiaries of active and retired members of employers who participate in the death benefit program. 64 NOTES TO THE FINANCIAL STATEMENTS NOTE 9. RETIREMENT PLAN (CONTINUED) Benefits (Continued) South Carolina Retirement System ("SCRS") (Continued) The annual retirement allowance of eligible retirees or their surviving annuitants is increased by the lesser of 1% or $500 every July 1. Only those annuitants in receipt of a benefit on July 1 of the preceding year are eligible to receive the increase. Members who retire under the early retirement provisions at age 55 with 25 years of service are not eligible for the benefit adjustment until the second July 1 after reaching age 60 or the second July 1 after the date they would have had 28 years of service credit had they not retired. South Carolina Police Officers' Retirement System ("PORS") —A Class Two member who has separated from service with at least five or more years of earned service is eligible for a monthly pension at age 55 or with 25 years of service regardless of age. A Class Three member who has separated from service with at least eight or more years of earned service is eligible for a monthly pension at age 55 or with 27 years of service regardless of age. Both Class Two and Class Three members are eligible to receive a deferred annuity at age 55 with five or eight years of earned service, respectively. An incidental death benefit is also available to beneficiaries of active and retired members of employers who participate in the death benefit program. Accidental death benefits are also provided upon the death of an active member working for a covered employer whose death was a natural and proximate result of an injury incurred while in the performance of duty. The retirement allowance of eligible retirees or their surviving annuitants is increased by the lesser of 1% or $500 every July 1. Only those annuitants in receipt of a benefit on July 1 of the preceding year are eligible to receive the increase. 65 NOTES TO THE FINANCIAL STATEMENTS NOTE 9. RETIREMENT PLAN (CONTINUED) Contributions Actuarial valuations are performed annually by an external consulting actuary to ensure applicable contribution rates satisfy the funding parameters specified in Title 9 of the South Carolina Code of Laws. Under these provisions, SCRS and PORS contribution requirements must be sufficient to maintain an amortization period for the financing of the unfunded actuarial accrued liability ("UAAL") over a period that does not exceed the number of years scheduled in state statute. Legislation in 2017 increased, but also established a ceiling for SCRS and PORS employee contribution rates. Effective July 1, 2017, employee rates were increased to a capped rate of 9.00% for SCRS and 9.75% for PORS. The legislation also increased employer contribution rates beginning July 1, 2017 for both SCRS and PORS by two percentage points and further scheduled employer contribution rates to increase by a minimum of one percentage point each year through July 1, 2022. If the scheduled contributions are not sufficient to meet the funding periods set in state statute, the board shall increase the employer contribution rates as necessary to meet the funding periods set for the applicable year. The maximum funding period of SCRS and PORS is scheduled to be reduced over a ten-year schedule from 30 years beginning fiscal year 2018 to 20 years by fiscal year 2028. Additionally, the Board is prohibited from decreasing the SCRS and PORS contribution rates until the funded ratio is at least 85%. If the most recent annual actuarial valuation of the Systems for funding purposes shows a ratio of the actuarial value of system assets to the actuarial accrued liability of the System (the funded ratio) that is equal to or greater than 85%, then the Board, effective on the following July 1St, may decrease the then current contribution rates upon making a finding that the decrease will not result in a funded ratio of less than 85%. If contribution rates are decreased pursuant to this provision, and the most recent annual actuarial valuation of the System shows a funded ratio of less than 85%, then effective on the following July 15�, and annually thereafter as necessary, the Board shall increase the then current contribution rates until a subsequent annual actuarial valuation of the System shows a funded ratio that is equal to or greater than 85%. Required employee contribution rates for the year ended June 30, 2022 are as follows: South Carolina Retirement System Employee Class Two 9.00% of earnable compensation Employee Class Three 9.00% of earnable compensation South Carolina Police Officers' Retirement System Employee Class Two 9.75% of earnable compensation Employee Class Three 9.75% of earnable compensation 66 NOTES TO THE FINANCIAL STATEMENTS NOTE 9. RETIREMENT PLAN (CONTINUED) Contributions (Continued) Required employer contribution rates for the year ended June 30, 2022 are as follows: South Carolina Retirement System Employee Class Two 16.41% of earnable compensation Employee Class Three 16.41% of earnable compensation Employer incidental death benefit 0.15% of earnable compensation South Carolina Police Officers' Retirement System Employee Class Two 18.84% of earnable compensation Employee Class Three 18.84% of earnable compensation Employer incidental death benefit 0.20% of earnable compensation Employer accidental death program 0.20% of earnable compensation Net Pension Liability The June 30, 2021 total pension liability ("TPL"), net pension liability ("NPL"), and sensitivity information shown in this report were determined by our consulting actuary, Gabriel, Roeder, Smith and Company ("GRS") and are based on an actuarial valuation performed as of July 1, 2020. The total pension liability was rolled-forward from the valuation date to the plans' fiscal year-end, June 30, 2021, using generally accepted actuarial principles. Information included in the following schedules is based on the certification provided by GRS. The net pension liability is calculated separately for each System and represents that particular System's total pension liability determined in accordance with GASB No. 67, less that System's fiduciary net position. As of June 30, 2022 (measurement date of June 30, 2021), the net pension liability amounts for the County's proportionate share of the collective net pension liabilities associated with the SCRS and PORS plans are as follows: As of June 30, 2022, the County's net pension liability amounts for SCRS and PORS are as follows: Plan Fiduciary Total Plan Employer's Net Position as County's Proportionate Pension Fiduciary Net Net Pension a percentage of the Share of the Collective System Liability Position Liability Total Pension Liability Net Pension Liability SCRS $ 52,598,755 $ 31,951,813 $ 20,646,942 60.7% 0.095406°/a PORS 26,801,024 18,860,898 7,940,126 70.4% 0.308604% 67 NOTES TO THE FINANCIAL STATEMENTS NOTE 9. RETIREMENT PLAN (CONTINUED) Net Pension Liability (Continued) As of June 30, 2022, the Fire and Rescue Commission's net pension liability amounts for SCRS and PORS are as follows: Plan Fiduciary Fire and Rescue Total Plan Employer's Net Position as Commission's Proportionate Pension Fiduciary Net Net Pension a percentage of the Share of the Collective System Liability Position Liability Total Pension Liability Net Pension Liability SCRS $ 1,426,578 $ 866,594 $ 559,984 60.7% 0.002588% PORS 34,881,425 24,547,383 10,334,042 70.4% 0.401648% As of June 30, 2022, the Memorial Library's net pension liability amount for SCRS is as follows: Plan Fiduciary Memorial Total Plan Employer's Net Position as Library's Proportionate Pension Fiduciary Net Net Pension a percentage of the Share of the Collective System Liability Position Liability Total Pension Liability Net Pension Liability SCRS $ 1,918,887 $ 1,165,654 $ 753,233 60.7% 0.003481% Actuarial Assumptions and Methods Actuarial valuations of the plan involve estimates of the reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and future salary increases. Amounts determined regarding the net pension liability are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. South Carolina state statute requires that an actuarial experience study be completed at least once in each five-year period. An experience report on the Systems was most recently issued for the period ended June 30, 2019 for first use in the July 1, 2021 actuarial valuation. The June 30, 2021 total pension liability, net pension liability, and sensitivity information shown in this report were determined by our consulting actuary, Gabriel, Roeder, Smith and Company ("GRS") and are based on an actuarial valuation performed as of July 1, 2020. The total pension liability was rolled-forward from the valuation date to the plans' fiscal year-end, June 30, 2021, using generally accepted actuarial principles. 68 NOTES TO THE FINANCIAL STATEMENTS NOTE 9. RETIREMENT PLAN (CONTINUED) Actuarial Assumptions and Methods (Continued) The following provides a summary of the actuarial assumptions and methods used in the July 1, 2020 valuations for SCRS and PORS. SCRS PORS Actuarial cost method Entry Age Entry Age Actuarial assumptions: Investment rate of return 7.00% 7.00% Projected salary increases 3.0% to 11.0% (varies by service) 3.0% to 10.5°/o (varies by service) Inflation rate 2.25% 2.25% Benefit adjustments lesser of 1°/o or$500 annually lesser of 1% or$500 annually The post-retiree mortality assumption is dependent upon the member's job category and gender. The base mortality assumption, the 2020 Public Retirees of South Carolina Mortality table (the "2020 PRSC"), was developed using the Systems' mortality experience. These base rates are adjusted for future improvement in mortality using published Scale AA projected from the year 2020. Former Job Class Males Females General Employees and Members 2020 PRSC Males multiplied 2020 PRSC Females of the General Assembly by 97% multiplied by 107% Public Safety and Firefighters 2020 PRSC Males multiplied 2020 PRSC Females by 127% multiplied by 107% The long-term expected rate of return on pension plan investments is based upon 20-year capital market assumptions. The long-term expected rates of return represent assumptions developed using an arithmetic building block approach primarily based on consensus expectations and market-based inputs. Expected returns are net of investment fees. The expected returns, along with the expected inflation rate, form the basis for the target asset allocation adopted at the beginning of the 2020 fiscal year. The long-term expected rate of return is produced by weighting the expected future real rates of return by the target allocation percentage and adding expected inflation and is summarized in the table on the next page. For actuarial purposes, the 7.00% assumed annual investment rate of return used in the calculation of the TPL includes a 4.75% real rate of return and a 2.25% inflation component. 69 NOTES TO THE FINANCIAL STATEMENTS NOTE 9. RETIREMENT PLAN (CONTINUED) Actuarial Assumptions and Methods (Continued) Expected Long-Term Target Asset Arithmetic Real Expected PortFolio Asset Class Allocation Rate of Return Real Rate of Return Public Equity 46.0% 6.87% 3.16% Bonds 26.0% 0.27% 0.07% Private Equity 9.0°/a 9.68% 0.87% Private Debt 7.0°/a 5.47% 0.39% Real Assets 12.0% Real Estate 9.0% 6.01% 0.54% Infrastructure 3.0% 5.08% 0.15% 100.0% Total expected real return 5.18% Inflation for actuarial purposes 2.25% Total expected nominal return 7.43% Discount Rate The discount rate used to measure the total pension liability was 7.00%. The projection of cash flows used to determine the discount rate assumed that contributions from participating employers in SCRS and PORS will be made based on the actuarially determined rates based on provisions in the South Carolina State Code of Laws. Based on those assumptions, the County's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. 70 NOTES TO THE FINANCIAL STATEMENTS NOTE 9. RETIREMENT PLAN (CONTINUED) Discount Rate (Continued) The following table presents the sensitivity of the net pension liability to changes in the discount rate for the County and the respective component units. Sensitivity of the Net Position Liability to Changes in the Discount Rate Cu rre nt 1°/a Decrease Discount Rate 1%Increase (6.00%) (7.00%) (8.00%) Primary Government SCRS $ 27,045,054 $ 20,646,942 $ 15,328,970 PORS 11,520,112 7,940,126 5,007,576 Component Units Fire and Rescue Commission S CRS 733,513 559,984 415,751 PORS 14,993,380 10,334,042 6,517,340 Memorial Library SCRS 986,647 753,233 559,225 71 NOTES TO THE FINANCIAL STATEMENTS NOTE 9. RETIREMENT PLAN (CONTINUED) Pension Expense For the year ended June 30, 2022, pension expense was recognized as follows: Primary Government SCRS PORS Proportionate share of aggregate plan $ 1,507,667 $ 868,652 pension expense Deferred amounts from changes in proportion and differences between employer contributions and proportionate share on plan contributions (98,449) 147,116 Employer pension expense $ 1,409,218 $ 1,015,768 Fire and Rescue Commission SCRS PORS Proportionate share of aggregate plan $ 40,891 $ 1,130,546 pension expense Deferred amounts from changes in proportion and differences between employer contributions and proportionate share on plan contributions (2,670) 191,472 Employer pension expense $ 38,221 $ 1,322,018 Memorial Library SCRS Proportionate share of aggregate plan $ 55,002 pension expense Deferred amounts from changes in proportion and differences between employer contributions and proportionate share on plan contributions (3,592) Employer pension expense $ 51,410 72 NOTES TO THE FINANCIAL STATEMENTS NOTE 9. RETIREMENT PLAN (CONTINUED) Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions At June 30, 2022, the County reported deferred outflows of resources and deferred inflows of resources related to the SCRS and PORS pension plans, respectively, from the following sources: Deferred Deferred Outflows Inflows SCRS of Resources of Resources Differences between expected and actual experience $ 351,697 $ 27,866 Net difference between projected and actual earnings on pension plan inv�estments - 2,999,241 Assumption changes 1,130,146 - Changes in proportion and differences between employer contributions and proportionate share of contributions 474,273 516,678 Employer contributions subsequent to the measurement date 1,886,565 - Total $ 3,842,681 $ 3,543,785 Deferred Deferred Outflows Inflows PORS of Resources of Resources Differences between expected and actual experience $ 270,116 $ 24,728 Net difference between projected and actual earnings on pension plan inv�estments - 1,780,140 Assumption changes 566,327 - Changes in proportion and differences between employer contributions and proportionate share of contributions 118,045 - Employer contributions subsequent to the measurement date 981,755 - Total $ 1,936,243 $ 1,804,868 73 NOTES TO THE FINANCIAL STATEMENTS NOTE 9. RETIREMENT PLAN (CONTINUED) Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (Continued) County contributions subsequent to the measurement date of $1,886,565 and $981,755, for the SCRS plan and the PORS plan, respectively, and changes in proportion and differences between employer contributions and proportionate share of contributions are deferred outflows/inflows of resources and will be recognized as a reduction of the net pension liability in the year ending June 30, 2023. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Year ending June 30, SCRS PORS 2023 $ 28,532 $ (9,857) 2024 (79,819) (59,821) 2025 (414,105) (151,233) 2026 (1,122,277) (629,469) Total $ (1,587,669) $ (850,380) At June 30, 2022, the Fire and Rescue Commission reported deferred outflows of resources and deferred inflows of resources related to the SCRS and PORS pension plans, respectively, from the following sources: Deferred Deferred OutFlows Inflows SCRS of Resources of Resources Differences between expected and actual experience $ 9,539 $ 756 Net difference between projected and actual earnings on pension plan investments - 81,345 Assumption changes 30,652 - Changes in proportion and differences between employer contributions and proportionate share of contributions 12,863 14,013 Employer contributions subsequent to the measurement date 51,167 - Total $ 104,221 $ 96,114 74 NOTES TO THE FINANCIAL STATEMENTS NOTE 9. RETIREMENT PLAN (CONTINUED) Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (Continued) Deferred Deferred OutFlows Inflows PORS of Resources of Resources Differences between expected and actual experience $ 351,556 $ 32,184 Net difference between projected and actual earnings on pension plan investments - 2,316,846 Assumption changes 737,073 - Changes in proportion and differences between employer contributions and proportionate share of contributions 153,636 - Employer contributions subsequent to the measurement date 1,277,750 - Total $ 2,520,015 $ 2,349,030 The Fire and Rescue Commission contributions subsequent to the measurement date of $51,167 and $1,277,750, for the SCRS plan and the PORS plan, respectively, and changes in proportion and differences between employer contributions and proportionate share of contributions are deferred outflows/inflows of resources and will be recognized as a reduction of the net pension liability in the year ending June 30, 2023. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Year ending June 30, SCRS PORS 2023 $ 774 $ (12,828) 2024 (2,165) (77,856) 2025 (11,231) (196,829) 2026 (30,438) (819,252) Total $ (43,060) $ (1,106,765) 75 NOTES TO THE FINANCIAL STATEMENTS NOTE 9. RETIREMENT PLAN (CONTINUED) Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (Continued) At June 30, 2022, the Memorial Library reported deferred outflows of resources and deferred inflows of resources related to the SCRS pension plan from the following sources: Deferred Deferred Outflows Inflows SCRS of Resources of Resources Differences between expected and actual experience $ 12,830 $ 1,017 Net difference between projected and actual earnings on pension plan investments - 109,417 Assumption changes 41,230 - Changes in proportion and differences between employer contributions and proportionate share of contributions 17,302 18,849 Employer contributions subsequent to the measurement date 68,825 - Total $ 140,187 $ 129,283 The Memorial Library contributions subsequent to the measurement date of $68,825 for the SCRS plan and changes in proportion and differences between employer contributions and proportionate share of contributions are deferred outflows/inflows of resources and will be recognized as a reduction of the net pension liability in the year ending June 30, 2023. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Year ending June 30, SCRS 2023 $ 1,041 2024 (2,912) 2025 (15,107) 2026 (40,943) Total $ (57,921) 76 NOTES TO THE FINANCIAL STATEMENTS NOTE 9. RETIREMENT PLAN (CONTINUED) Pension Plan Fiduciary Net Position Detailed information regarding the fiduciary net position of the plans administered by PEBA is available in the separately issued ACFR containing financial statements and required supplementary information for SCRS and PORS. The ACFR of the Pension Trust Funds is publicly available on PEBA's Retirement Benefits' website at www.retirement.sc.gov, or a copy may be obtained by submitting a request to PEBA, PO Box 11960, Columbia, South Carolina 29211-1960. NOTE 10. OTHER INFORMATION Deferred Compensation Plans Internal Revenue Code Section 457 Plan The County offers its employees a deferred compensation plan, offered through the State of South Carolina, created in accordance with Internal Revenue Code Section 457. The plan, available to all regular full-time employees, permits participants to defer a portion of their salaries until future years. The deferred compensation is not available to the employee or his/her beneficiaries until termination, retirement, death, disability, or an approved hardship. All amounts of compensation deferred under the plan are held in trust for the contributing employee and are not subject to claims of the County's general creditors. The plan is administered by the State of South Carolina. Internal Revenue Code Section 401(k) Plan The County also offers its participation in a deferred compensation plan, offered through the State of South Carolina, created in accordance with internal Revenue Code Section 401(k). The 401(k) plan has the same eligibility requirements as the 457 plan, although the withdrawal provisions are more lenient under the 401(k) plan. All amounts of compensation deferred under the plan are held in trust for the contributing employee and are not subject to claims of the County's general creditors. The funds are administered by the State of South Carolina. 77 NOTES TO THE FINANCIAL STATEMENTS NOTE 10. OTHER INFORMATION (CONTINUED) Risk Management The County and its component units are exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; and natural disasters, for which the County carries commercial insurance, and policies with the South Carolina Insurance Reserve Fund, a public entity risk pool currently operating as a common risk management and insurance program for local governments. The County and its component units are covered under the same risk management umbrella and pay a pro-rata share of an annual premium for general insurance coverage. The County pays annual premiums to the State Insurance Reserve Fund for certain general insurance coverage. The State Insurance Reserve Fund is self-sustaining through member premiums and reinsures through commercial companies for certain claims. Contingent Liabilities Grants Amounts received or receivable from grantor agencies in previous years are subject to audit and adjustment by grantor agencies. Any disallowed claims, including amounts already collected, could become a liability of the general fund or other applicable funds. The amount, if any, of expenditures that may be disallowed by the grantor cannot be determined at this time, although the government expects such amounts, if any, to be immaterial. Litigation The County is party to various legal proceedings which normally occur in governmental operations. These lawsuits involve environmental issues, alleged failure to appropriate proper budgets, employment matters, and certain claims under contractual agreements. In the opinion of County management, based on the advice of legal counsel with respect to litigation, the ultimate disposition of these lawsuits and claims will not have a material adverse effect on the County's financial position. Additionally, the County would be allowed to appropriate any required funds in a subsequent year. 78 NOTES TO THE FINANCIAL STATEMENTS NOTE 10. OTHER INFORMATION (CONTINUED) Commitments Construction Commitments On June 30, 2022, the County has commitments under contracts for various architectural and engineering services and construction projects not completed of approximately $4,723,787 that relate to the Capital Penny Sales Tax Project approved by voter referendum. As discussed earlier in Note 1, budgetary basis of accounting, the encumbrances and related appropriation lapse at the end of the year, but are re-appropriated and become part of the subsequent year's budget because performance under the executory contract is expected in the next year. Encumbrances As discussed in Note 1, budgetary basis of accounting, encumbrance accounting is utilized to the extent necessary to assure effective budgetary control and accountability and to facilitate effective cash planning and control. At year-end, the amount of encumbrances expected to be honored upon performance by the vendor in the next year were as follows: Governmental Fund Amount Capital Projects Funds $ 546,351 Special Revenue Funds 74,225 Total $ 620,576 79 NOTES TO THE FINANCIAL STATEMENTS NOTE 11. NET INVESTMENT IN CAPITAL ASSETS The following summarizes the amounts included in the calculation for the net investment in capital assets. The County received the bond proceeds of $30,272,627 in May 2015 and has unspent funds on hand of $1,378,721. The list of projects includes asset acquisitions as well as assistance to other entities within the County. The Fire and Rescue Commission received proceeds of $6,100,337 in November 2018 and $5,000,000 in March 2022 and has unspent funds on hand of $124,165 and $4,824,885, respectively. The list of projects include asset acquisitions as well as improvements to fire stations. The net investment in capital assets is summarized below: County Component Units Governmental Fire & Rescue Memorial Activities Commission Library Capital assets, net $ 60,042,383 $ 11,366,642 $ 287,832 Lease assets, net 2,831,961 - - Long-term obligations (21,990,838) (12,293,059) - Bond proceeds on hand 1,378,721 4,949,050 - Net Investment in capital assets $ 42,262,227 $ 4,022,633 $ 287,832 NOTE 12. TAX ABATEMENTS The County negotiates property tax abatement agreements on an individual basis. The County has tax abatement agreements with the following as of June 30, 2022: Percentage Amount of of Taxes County Taxes Abated during Abated during Term of Purpose the Fiscal Year the Fiscal Year Agreement Manufacturing facility locates in the area and provides employment 43% $ 29,966 25 Years opportunities for citizens Manufacturing facility locates in the area and provides employment 43% $ 41,459 25 Years opportunities for citizens Provide healthcare to citizens in the area 48% $ 19,062 25 Years Manufacturing facility locates in the area and provides employment 48% $ 14,143 25 Years opportunities for citizens 80 NOTES TO THE FINANCIAL STATEMENTS NOTE 12. TAX ABATEMENTS (CONTINUED) Industries that invest at least $2.5 million within a five to six-year investment period in South Carolina may negotiate for a fee-in-lieu of property taxes under the authority of South Carolina Code of Laws Title 12 Chapter 44, Title 4 Chapter 29 and Chapter 12. This can result in a savings of about 40°/o on property taxes otherwise due for a project. Certain large investments may be able to further reduce their liability by negotiating the assessment ratio from 10.5% down to 6%. For large investments, the assessment ratio can be reduced to 4% and the investment period is extended to an eight-year investment period. The County and the industry may agree to either set the millage rate for the entire agreement period or have the millage change every five years in step with the average millage rate for the area where the project is located. Any personal property subject to the fee in lieu of property taxes depreciates in accordance with South Carolina law, while the real property is either set at cost for the life of the agreement or can be appraised every five years. If the project would incur costs of designing, acquiring, constructing, improving, or expanding improved or unimproved real estate or personal property to be used in the operation of a manufacturing or commercial enterprise, infrastructure servicing the project or certain aircraft, the industries may negotiate a Special Source Revenue Credit under the authority of South Carolina Code of Laws Section 4-29-68, 4-1-170 and 12-44-70. This can result in additional savings of 15% on property taxes otherwise due for a project and is applied manually as credit to the applicable tax bill. In each of the agreements disclosed above, the County has provided no additional commitments other than the abatement of taxes which would continue in effect for the term of the agreement as long as the industry complies with investment and job creation that are outlined in each agreement within the investment period of not to exceed five years. 81 REQUIRED SUPPLEMENTARY INFORMATION COLLETON COUNTY, SOUTH CAROLINA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET(GAAP BASIS)AND ACTUAL GENERALFUND FOR THE FISCAL YEAR ENDED JUNE 30, 2022 Variance Budgeted Amounts with Final Original Final Actual Budget REVENUES Taxes $ 23,912,900 $ 24,416,847 $ 24,936,740 $ 519,893 Intergovernmental 2,259,304 2,309,760 2,698,043 388,283 Fines and fees 6,105,725 6,352,392 7,022,524 670,132 Other income 331,200 515,175 351,192 (163,983) Total revenues 32,609,129 33,594,174 35,008,499 1,414,325 EXPENDITURES Current: General government 10,270,148 10,940,398 10,036,349 904,049 Judicial 1,509,929 1,522,433 1,477,138 45,295 Public safety 8,946,952 9,220,857 9,423,341 (202,484) Roads and bridges 2,221,284 2,186,599 2,107,645 78,954 Solid waste 3,024,925 3,212,910 3,286,186 (73,276) Recreation and culture 1,757,351 1,764,935 1,829,931 (64,996) Health and human services 930,211 936,662 957,257 (20,595) Economic development 315,443 299,801 300,040 (239) Intergovernmental 3,850,673 5,496,180 5,655,281 (159,101) Capital outlay: General government 29,650 101,129 85,650 15,479 Solid waste 500 500 38,068 (37,568) Recreation and culture - - 11,822 (11,822) Total expenditures 32,857,066 35,682,404 35,208,708 473,696 Excess(deficiency)of revenues over(under) expenditures (247,937) (2,088,230) (200,209) 1,888,021 OTHER FINANCING SOURCES(USES) Proceeds from the sale of capital assets - - 1,597 1,597 Insurancerecoveries - 12,998 190,014 177,016 Transfers in 3,566,834 5,268,886 5,076,786 (192,100) Transfersout (2,873,621) (2,871,251) (4,215,178) (1,343,927) Total otherfinancing sources,net 693,213 2,410,633 1,053,219 (1,357,414) Net change in fund balances 445,276 322,403 853,010 530,607 Fund balances,beginning of year 9,927,662 9,927,662 9,927,662 - Fund balances,end of year $ 10,372,938 $ 10,250,065 $ 10,780,672 $ 530,607 82 COLLETON COUNTY, SOUTH CAROLINA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET(GAAP BASIS)AND ACTUAL SPECIAL REVENUE FUND FOR THE FISCAL YEAR ENDED JUNE 30, 2022 Variance Budgeted Amounts with Final Original Final Actual Budget REVENUES Intergovernmental $ 1,104,220 $ 11,152,164 $ 3,583,694 $ (7,568,470) Otherrevenues - 4,064 2,812 (1,252) Total revenues 1,104,220 11,156,228 3,586,506 (7,569,722) EXPENDITURES General government - 169,960 3,000 166,960 Judicial services - 1,392,704 509,379 883,325 Public safety 401,389 465,862 439,918 25,944 Roads and bridges - 64,940 12,896 52,044 Recreation and culture - 861,825 27,755 834,070 Health and human services 702,831 2,270,221 1,992,210 278,011 Economic development - 2,083,267 94,293 1,988,974 Intergovernmental - 204,535 169,560 34,975 Capital outlay General government - 350,000 - 350,000 Judicial - 1,000,000 23,780 976,220 Public safety - 81,274 58,123 23,151 Roads and bridges - 1,642,183 870,520 771,663 Recreation and culture - 988,422 182,449 805,973 Health and human services - 169,200 - 169,200 Economic development - 149,093 78,183 70,910 Total expenditures 1,104,220 11,893,486 4,462,066 7,431,420 Deficiency of revenues under expenditures - (737,258) (875,560) (138,302) OTHER FINANCING SOURCES Insurance proceeds - 29,150 - (29,150) Transfers in - 701,179 720,270 19,091 Total other financing sources - 730,329 720,270 (10,059) Net change in fund balance - (6,929) (155,290) (148,361) FUND BALANCES,beginning of year 1,226,768 1,226,768 1,226,768 - FUND BALANCES,end ofyear $ 1,226,768 $ 1,219,839 $ 1,071,478 $ (148,361) 83 COLLETON COUNTY, SOUTH CAROLINA REQUIRED SUPPLEMENTARY INFORMATION FOR THE FISCAL YEAR ENDED JUNE 30, SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY SOUTH CAROLINA RETIREMENT SYSTEM — PRIMARY GOVERNMENT County's County's share of Plan fiduciary net proportion of County's the net pension position as a Plan Year the net proportionate liability as a percentage of the Ended pension share of the net County's percentage of its total pension June 30, liability pension liability covered payroll covered payroll liability 2021 0.095406% $ 20,646,942 $ 10,784,699 191% 60.75% 2020 0.098225% 25,098,134 10,717,988 234% 53.34% 2019 0.095718% 21,856,367 10,105,559 216% 53.34% 2018 0.092094% 20,635,403 9,569,920 216% 53.34% 2017 0.097985% 22,085,045 10,023,134 220% 53.34% 2016 0.092799% 19,526,510 8,800,266 222% 52.90% 2015 0.092174% 17,480,579 8,710,229 201% 57.00% 2014 0.094651% 16,295,759 8,614,344 189% 59.90% SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY POLICE OFFICERS' RETIREMENT SYSTEM — PRIMARY GOVERNMENT County's County's share of Plan fiduciary net proportion of County's the net pension position as a Plan Year the net proportionate liability as a percentage of the Ended pension share of the net County's percentage of its total pension June 30, liability pension liability covered payroll covered payroll liability 2021 0.308604% $ 7,940,126 $ 4,640,451 171% 70.37% 2020 0.308210% 10,220,913 4,655,962 220% 58.79% 2019 0.305935% 8,767,915 4,437,460 198% 62.69% 2018 0.296210% 8,393,222 4,461,857 188% 60.94% 2017 0.316857% 8,680,534 4,547,825 191% 60.94% 2016 0.318141% 7,795,862 3,956,317 197% 60.40% 2015 0.330253% 7,197,930 3,964,012 182% 64.60% 2014 0.314595% 6,022,663 3,641,573 165% 67.50% Notes to the Schedules: The schedules will present 10 years of information once it is accumulated. 84 COLLETON COUNTY, SOUTH CAROLINA REQUIRED SUPPLEMENTARY INFORMATION FOR THE FISCAL YEAR ENDED JUNE 30, SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY SOUTH CAROLINA RETIREMENT SYSTEM — FIRE AND RESCUE COMMISSION Commission's Commission's share Plan fiduciary net proportion of Commission's of the net pension position as a Plan Year the net proportionate liability as a percentage of the Ended pension share of the net Commission's percentage of its total pension June 30, liability pension liability covered payroll covered payroll liability 2021 0.002588% $ 559,984 $ 292,501 191% 60.75% 2020 0.002664% 680,710 290,692 234% 50.71% 2019 0.002596% 592,786 274,082 216% 54.40% 2018 0.002498% 559,670 231,432 242°/a 54.10°/a 2017 0.002370% 533,436 128,815 414% 53.34°/a 2016 0.001193% 525,824 297,612 177% 52.90% 2015 0.003117% 591,963 243,862 243% 57.00% 2014 0.002650% 456,236 189,312 241% 59.90°/a SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY POLICE OFFICERS' RETIREMENT SYSTEM — FIRE AND RESCUE COMMISSION Commission's Commission's share Plan fiduciary net proportion of Commission's of the net pension position as a Plan Year the net proportionate liability as a percentage of the Ended pension share of the net Commission's percentage of its total pension June 30, liability pension liability covered payroll covered payroll liability 2021 0.401648% $ 10,334,042 $ 6,039,529 171% 70.37% 2020 0.401133% 13,302,440 6,059,715 220% 58.79% 2019 0.398173% 11,411,400 5,775,336 198% 62.69% 2018 0.385515% 10,923,745 4,973,240 220% 61.73% 2017 0.353173% 9,675,427 4,473,174 216% 60.94% 2016 0.312920% 8,210,866 4,078,445 201% 60.40% 2015 0.340447% 7,420,061 4,404,638 168% 64.60% 2014 0.349565% 6,692,122 4,343,910 154% 67.50% Notes to the Schedules: The schedules will present 10 years of information once it is accumulated. 85 COLLETON COUNTY, SOUTH CAROLINA REQUIRED SUPPLEMENTARY INFORMATION FOR THE FISCAL YEAR ENDED JUNE 30, SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY SOUTH CAROLINA RETIREMENT SYSTEM — MEMORIAL LIBRARY Memorial Library's Memorial Library's Plan fiduciary net proportion of Memorial Library's share of the net position as a Plan Year the net proportionate Memorial pension liability as percentage of the Ended pension share of the net Library's a percentage of its total pension June 30, liability pension liability covered payroll covered payroll liability 2021 0.003481% $ 753,233 $ 393,443 191% 60.75% 2020 0.003583% 915,621 391,009 234% 50.71°/a 2019 0.003492% 797,355 368,667 216% 54.10% 2018 0.003360% 752,812 349,178 216% 54.10°/a 2017 0.003575% 804,833 335,043 240% 53.34% 2016 0.003102% 686,800 320,215 214% 52.90% 2015 0.003354% 635,958 322,367 197% 57.00°/a 2014 0.003503% 603,114 350,642 172% 59.90% Notes to the Schedules: The schedules will present 10 years of information once it is accumulated. 86 COLLETON COUNTY, SOUTH CAROLINA REQUIRED SUPPLEMENTARY INFORMATION FOR THE FISCAL YEAR ENDED JUNE 30, SCHEDULE OF CONTRIBUTIONS SOUTH CAROLINA RETIREMENT SYSTEM - PRIMARY GOVERNMENT Fiscal Year Statutorily Contributions Contribution Contributions as Ended required relative to deficiency County's covered a percentage of June 30, contribution statutorily required (excess) payroll covered payroll 2022 $ 1,886,565 $ 1,886,565 $ - $ 11,392,298 16.56% 2021 1,678,099 1,678,099 - 10,784,699 15.56% 2020 1,667,718 1,667,718 - 10,717,988 15.56% 2019 1,511,797 1,511,797 - 10,105,559 14.96% 2018 1,297,681 1,297,681 - 9,569,920 13.56% 2017 1,158,674 1,158,674 - 10,023,134 11.56% 2016 973,309 973,309 - 8,800,266 11.06% 2015 949,415 949,415 - 8,710,229 10.90% SCHEDULE OF CONTRIBUTIONS POLICE OFFICERS' RETIREMENT SYSTEM - PRIMARY GOVERNMENT Contributions Fiscal Year Statutorily relative to Contribution Contributions as Ended required statutorily required deficiency County's covered a percentage of June 30, contribution contribution (excess) payroll covered payroll 2022 $ 981,755 $ 981,755 $ - $ 5,156,276 19.04% 2021 846,418 846,418 - 4,640,451 18.24% 2020 849,246 849,246 - 4,655,962 18.24% 2019 765,018 765,018 - 4,437,460 17.24% 2018 724,610 724,610 - 4,461,857 16.24% 2017 647,610 647,610 - 4,547,825 14.24% 2016 543,598 543,598 - 3,956,317 13.74% 2015 531,574 531,574 - 3,964,012 13.41% Notes to the Schedules: The schedules will present 10 years of information once it is accumulated. 87 COLLETON COUNTY, SOUTH CAROLINA REQUIRED SUPPLEMENTARY INFORMATION FOR THE FISCAL YEAR ENDED JUNE 30, SCHEDULE OF CONTRIBUTIONS SOUTH CAROLINA RETIREMENT SYSTEM - FIRE AND RESCUE COMMISSION Contri butions Fiscal Year Statutorily relative to Contribution Contributions as Ended required statutorily required deficiency Commission's a percentage of June 30, contribution contribution (excess) covered payroll covered payroll 2022 $ 51,167 $ 51,167 $ - $ 308,981 16.56% 2021 45,513 45,513 - 292,501 15.56% 2020 45,232 45,232 - 290,692 15.56% 2019 41,003 41,003 - 274,082 14.96°/a 2018 31,380 31,380 - 231,432 13.56°/a 2017 14,891 14,891 - 128,815 11.56% 2016 32,916 32,916 - 297,612 11.06% 2015 26,581 26,581 - 243,862 10.90% SCHEDULE OF CONTRIBUTIONS POLICE OFFICERS' RETIREMENT SYSTEM - FIRE AND RESCUE COMMISSION Contributions Fiscal Year Statutorily relative to Contribution Contributions as Ended required statutorily required deficiency Commission's a percentage of June 30, contribution contribution (excess) covered payroll covered payroll 2022 $ 1,277,750 $ 1,277,750 $ - $ 6,710,872 19.04% 2021 1,101,610 1,101,610 - 6,039,529 18.24% 2020 1,105,291 1,105,291 - 6,059,715 18.24°/a 2019 995,668 995,668 - 5,775,336 17.24% 2018 807,740 807,740 - 4,973,240 16.24% 2017 636,980 636,980 - 4,473,174 14.24% 2016 560,378 560,378 - 4,078,445 13.74% 2015 590,662 590,662 - 4,404,638 13.41% Notes to the Schedules: The schedules will present 10 years of information once it is accumulated. 88 COLLETON COUNTY, SOUTH CAROLINA REQUIRED SUPPLEMENTARY INFORMATION FOR THE FISCAL YEAR ENDED JUNE 30, SCHEDULE OF CONTRIBUTIONS SOUTH CAROLINA RETIREMENT SYSTEM — MEMORIAL LIBRARY Contributions Fiscal Year Statutorily relative to Contribution Memorial Contributions as Ended required statutorily required deficiency Library's covered a percentage of June 30, contribution contribution (excess) payroll covered payroll 2022 $ 68,825 $ 68,825 $ - $ 415,609 16.56% 2021 61,219 61,219 - 393,443 15.56% 2020 60,841 60,841 - 391,009 15.56% 2019 55,153 55,153 - 368,667 14.96% 2018 47,349 47,349 - 349,178 13.56% 2017 38,731 38,731 - 335,043 11.56% 2016 35,416 35,416 - 320,215 11.06% 2015 35,138 35,138 - 322,367 10.90% Notes to the Schedules: The schedules will present 10 years of information once it is accumulated. 89 COLLETON COUNTY, SOUTH CAROLINA REQUIRED SUPPLEMENTARY INFORMATION RETIREMENT PLAN ASSUMPTIONS FOR THE FISCAL YEAR ENDED JUNE 30, 2022 The following represents the assumptions used for the County, Fire and Rescue Commission and the Memorial Library. System SC RS PORS Calculation date July 1, 2019 July 1, 2019 Actuarial cost method Entry Age Normal Entry Age Normal Asset valuation method Five-year smoothed Five-year smoothed Amortization method Level °/o of pay Level % of pay Amortization period 28 year maximum, closed 28 year maximum, closed Investment return 7.25% 7.25% Inflation 2.25% 2.25% Salary increases 3.00% plus step-rate increases for members 3.50°/o plus step-rate increases for members with less than 21 years of service. with less than 21 years of service. Mortality The 2016 Public Retirees of South Carolina The 2016 Public Retirees of South Carolina Mortality Tables for males and females, both Mortality Tables for males and females, both projected at Scale AA from the year 2016. projected at Scale AA from the year 2016. Males rates multiplied by 100%for Males rates are multiplied by 125%and noneducators and 92%for educators. female rates are multipled by 111%. Female rates multipled by 111%for noneducators and 98%for educators. 90 COLLETON COUNTY, SOUTH CAROLINA REQUIRED SUPPLEMENTARY INFORMATION OPEB RETIREMENT PLAN-SCHEDULE OF CHANGES IN THE PRIMARY GOVERNMENT'S TOTAL OPEB LIABILITY AND RELATED RATIOS FOR THE FISCAL YEAR ENDED JUNE 30, 2022 2021 2020 2019 2018 Total OPEB liability Service cost $ 281,668 $ 273,464 $ 220,060 $ 224,176 $ 260,008 Interest on total OPEB liability 106,464 114,920 119,093 107,751 89,458 Difference between expected and actual experience 1,069,692 1,434 (191,897) (3,268) - Effect of assumption changes 440,503 454,267 241,956 (32,142) (338,163) Benefit payments (29,671) (37,269) (31,099) (31,555) (29,153) Net change in total OPEB liability 1,868,656 806,816 358,113 264,962 (17,850) Total OPEB liability-beginning 4,360,196 3,553,380 3,195,267 2,930,305 2,948,155 Total OPEB liability-ending $ 6,228,852 $ 4,360,196 $ 3,553,380 $ 3,195,267 $ 2,930,305 Covered employee payroll $ 13,349,149 $ 14,712,492 $ 13,976,210 $ 13,463,416 $ 12,826,065 Total OPEB liability as a percentage of covered employee payroll 46.7% 29.6% 25.4% 23.7% 22.8% Notes to the Schedule: The schedule will present 10 years of information once it is accumulated. The discount rate changed from 2.45%as of June 30,2021 to 2.16%as of June 30,2022. The County is not accumulating assets in a trust fund that meets the criteria in paragraph 4 of GASB Statement No.75 for payment of future OPEB benefits. 91 COLLETON COUNTY, SOUTH CAROLINA REQUIRED SUPPLEMENTARY INFORMATION OPEB RETIREMENT PLAN-SCHEDULE OF CHANGES IN THE FIRE AND RESCUE COMMISSION'S TOTAL OPEB LIABILITY AND RELATED RATIOS FOR THE FISCAL YEAR ENDED JUNE 30, 2022 2021 2020 2019 2018 Total OPEB liability Service cost $ 51,413 $ 49,915 $ 40,169 $ 40,920 $ 47,459 Interest on total OPEB liability 19,433 20,976 21,738 19,668 16,329 Difference between expected and actual experience 195,250 262 (35,027) (597) - Effect of assumption changes 80,408 82,916 44,164 (5,867) (61,725) Benefit payments (5,416) (6,803) (5,676) (5,760) (5,321) Net change in total OPEB liability 341,088 147,266 65,368 48,364 (3,258) Total OPEB liability-beginning 795,869 648,603 583,235 534,871 538,129 Total OPEB liability-ending $ 1,136,957 $ 795,869 $ 648,603 $ 583,235 $ 534,871 Covered employee payroll $ 2,436,611 $ 2,685,461 $ 2,551,068 $ 2,457,468 $ 2,341,133 Total OPEB liability as a percentage of covered employee payroll 46.7% 29.6% 25.4% 23.7% 22.8% Notes to the Schedule: The schedule will present 10 years of information once it is accumulated. The discount rate changed from 2.45%as of June 30,2021 to 2.16°/o as of June 30,2022. The County is not accumulating assets in a trust fund that meets the criteria in paragraph 4 of GASB Statement No.75 for payment of future OPEB benefits. 92 COLLETON COUNTY, SOUTH CAROLINA REQUIRED SUPPLEMENTARY INFORMATION OPEB RETIREMENT PLAN -SCHEDULE OF CHANGES IN THE MEMORIAL LIBRARY'S TOTAL OPEB LIABILITY AND RELATED RATIOS FOR THE FISCAL YEAR ENDED JUNE 30, 2022 2021 2020 2019 2018 Total OPEB liability Service cost $ 34,153 $ 33,158 $ 26,693 $ 27,192 $ 31,526 Interest on total OPEB liability 12,909 13,934 14,440 13,065 10,847 Difference between expected and actual experience 129,702 174 (23,268) (396) - Effect of assumption changes 53,484 55,115 29,338 (3,897) (41,003) Benefit payments (3,598) (4,519) (3,771) (3,826) (3,535) Net change in total OPEB liability 226,650 97,862 43,432 32,138 (2,165) Total OPEB liability-beginning 528,849 430,987 387,555 355,417 357,582 Total OPEB liability-ending $ 755,499 $ 528,849 $ 430,987 $ 387,555 $ 355,417 Covered employee payroll $ 1,618,606 $ 1,783,914 $ 1,694,638 $ 1,632,461 $ 1,555,181 Total OPEB liability as a percentage of covered employee payroll 46.7% 29.6% 25.4% 23.7% 22.9% Notes to the Schedule: The schedule will present 10 years of information once it is accumulated. The discount rate changed from 2.45%as of June 30,2021 to 2.16%as of June 30,2022. The County is not accumulating assets in a trust fund that meets the criteria in paragraph 4 of GASB Statement No.75 for payment of future OPEB benefits. 93 OTHER SUPPLEMENTARY INFORMATION NONMAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS Special revenue funds are used to account for specific revenues that are legally restricted to expenditures for particular purposes. Sheriff's Discretionary Funds — to account for the program and activities associated with the Sheriff's department. Clerk of Court IV Incentives Fund — to account for federal child enforcement incentives received and disbursed by the Clerk of Court. Clerk of Court IV Unit Costs Fund — to account for federal child enforcement funds received and disbursed by the Clerk of Court. Victim Witness Services Fund—to account for victims'funds for the County. 14th Circuit Court Solicitor Fund — to account for the activities of the 14th Circuit Court Solicitor mandated by State Statute to prosecute within the 14th Circuit Court System that Colleton County acts as Host County. Animal Care Control Donations Fund—to account for projects and activities for animal control. Emergency Telephone Fund—to account for operations of the County's Emergency 911 communication system. County Hospitality Tax Fund—to account for local hospitality tax collected by the County. County Accommodations Tax Fund—to account for local accommodations tax collected by the County. State Accommodations Tax Fund—to account for state accommodations tax collected by the State. NONMAJOR GOVERNMENTAL FUNDS DEBT SERVICE FUNDS Debt Service Fund — used for the accumulation of resources for payment of principal and interest on County general obligation debt. GO Bond Fund — used to set aside funds to pay interest and principal related to the General Obligation Bond Series 2015. Debt Service Non-GOB — used to set aside funds to pay interest and principal on County non-general obligation debt. COLLETON COUNTY, SOUTH CAROLINA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2022 Special Revenue Funds Victim Sheriff's Clerk of Court Clerk of Court Witness Discretionary IV Incentives IV Unit Costs Services ASSETS Cash and cash equivalents $ 151,719 $ 92,824 $ - $ 66,059 Receivables,net 512 1,010 21,733 3,902 Prepaid expenditures - - - - Total assets $ 152,231 $ 93,834 $ 21,733 $ 69,961 LIABILITIES,DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES LIABILITIES Accounts payable $ 477 $ - $ 18,277 $ 848 Accrued payroll and benefits - - 3,456 2,226 Totalliabilities 477 - 21,733 3,074 DEFERRED INFLOWS OF RESOURCES Unavailable revenue-property taxes - - - - Total deferred inflows of resources - - - - FUND BALANCES Non-spendable: Prepaid expenditures - - - - Restricted for: Public safety 151,754 - - 66,887 Debt service - - - - Recreation and culture - - - - Judicial services - 93,834 - - Assigned: Judicial services - - - - Committed Recreation and culture - - - - Total fund balances 151,754 93,834 - 66,887 Total liabilities,deferred inflows of resources and fund balances $ 152,231 $ 93,834 $ 21,733 $ 69,961 (Continued) 94 Special Revenue Funds 14th Circuit Animal Care County County State Court Control Emergency Hospitality Accommodations Accommodations Solicitor ponations Telephone Tax Tax Tax $ 1,085,879 $ - $ 496,171 $ 7,450 $ 28,205 $ 48,550 427,408 - 42,590 57,427 99,612 23,230 22,655 - - - - - $ 1,535,942 $ - $ 538,761 $ 64,877 $ 127,817 $ 71,780 $ 21,945 $ - $ 5,278 $ - $ 8,128 $ - 60,416 - 3,977 - 12,427 - 82,361 - 9,255 - 20,555 - 22,655 - - - - - - - 529,506 - - - - - - - - 71,780 1,430,926 - - - - - - - - 64,877 107,262 - 1,453,581 - 529,506 64,877 107,262 71,780 $ 1,535,942 $ - $ 538,761 $ 64,877 $ 127,817 $ 71,780 95 COLLETON COUNTY, SOUTH CAROLINA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2022 Debt Service Funds Debt Service Debt Service GO Bond Non-GOB Totals ASSETS Cash and cash equivalents $ 41,876 $ 173,893 $ - $ 2,192,626 Receivables,net 132,069 - - 809,493 Prepaid expenditures - - - 22,655 Total assets $ 173,945 $ 173,893 $ - $ 3,024,774 LIABILITIES,DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES LIABILITIES Accounts payable $ - $ - $ - $ 54,953 Accrued payroll and benefits - - - 82,502 Totalliabilities - - - 137,455 DEFERRED INFLOWS OF RESOURCES Unavailable revenue-property taxes 112,711 - - 112,711 Total deferred inflows of resources 112,711 - - 112,711 FUND BALANCES Non-spendable: Prepaid expenditures - - - 22,655 Restricted for: Public safety - - - 748,147 Debt service 61,234 173,893 - 235,127 Recreation and culture - - - 71,780 Judicial services - - - 93,834 Assigned: Judicial services - - - 1,430,926 Committed Recreation and culture - - - 172,139 Total fund balances 61,234 173,893 - 2,774,608 Total liabilities,deferred inflows of resources and fund balances $ 173,945 $ 173,893 $ - $ 3,024,774 96 COLLETON COUNTY, SOUTH CAROLINA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2022 Special Revenue Funds Victim Sheriff's Clerk of Court Clerk of Court Witness Discretionary IV Incentives IV Unit Costs Services Revenues Taxes $ - $ - $ - $ - Intergovernmental 4,538 44,216 126,268 51,106 Fines and fees - - - - Other revenues 19,991 106 - 130 Total revenues 24,529 44,322 126,268 51,236 Expenditures Current: General government - - - - Judicial services - 43,372 147,754 - Public safety 46,192 - - 119,732 Roads and bridges - - - - Recreation and culture - - - - Economic development - - - - Intergovernmental - - - - Capital outlay Judicial services - - - - Public safety 33,420 - - - Recreation and culture - - - - Debt service: Principal - - - - Interest and fiscal charges - - - - Total expenditures 79,612 43,372 147,754 119,732 Excess(deficiency)of revenues over(under)expenditures (55,083) 950 (21,486) (68,496) Other financing sources(uses) Proceeds from sale of capital assets 73,080 - - - Proceeds from issuance of debt - - - - Insurance recoveries - - - - Transfers in 4,108 - 7,124 - Transfers out - - - - Total otherfinancing sources(uses) 77,188 - 7,124 - Net change in fund balances 22,105 950 (14,362) (68,496) Fund balances,beginning of year 129,649 92,884 14,362 135,383 Fund balances end of year $ 151,754 $ 93,834 $ - $ 66,887 (Continued) 97 Special Revenue Funds 14th Circuit Animal Care County County State Court Control Emergency Hospitality Accommodations Accommodations Solicitor ponations Telephone Tax Tax Tax $ - $ - $ - $ 614,120 $ 750,970 $ 51,553 4,337,325 - 87,658 - - - 195,184 15,440 290,110 - - - 10,053 10,287 562 223 253 83 4,542,562 25,727 378,330 614,343 751,223 51,636 - - - 57,211 - - 4,409,908 - - - - - - 39,398 302,382 - - - - - - - 5,856 - - - - 137,348 424,159 41,000 - - - 124,152 - - - - - 6,000 25,702 - 29,464 - - - - - - - - 19,049 - - 4,439,372 39,398 302,382 343,760 455,717 41,000 103,190 (13,671) 75,948 270,583 295,506 10,636 2,128 - - - - - 291,168 - - - - - (137,058) - - (292,443) (275,000) - 156,238 - - (292,443) (275,000) - 259,428 (13,671) 75,948 (21,860) 20,506 10,636 1,194,153 13,671 453,558 86,737 86,756 61,144 $ 1,453,581 $ - $ 529,506 $ 64,877 $ 107,262 $ 71,780 98 COLLETON COUNTY, SOUTH CAROLINA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2022 Debt Service Funds Debt Service Debt Service GO Bond Non-GOB Totals Revenues Taxes $ 2,109,450 $ - $ - $ 3,526,093 Intergovernmental - - 195,889 4,847,000 Fines and fees 10,004 - - 510,738 Otherrevenues 1,066 219 45 43,018 Total revenues 2,120,520 219 195,934 8,926,849 Expenditures Current: General government - - - 57,211 Judicial services - - - 4,601,034 Public safety - - - 507,704 Roads and bridges - - - 5,856 Recreation and culture - - - 602,507 Economic development - - - 124,152 Intergovernmental - - - 31,702 Capital outlay Judicial services - - - 29,464 Public safety - - - 33,420 Recreation and culture - - - 19,049 Debt service: Principal 3,306,093 - 1,371,071 4,677,164 Interest and fiscal charges 268,273 - 155,314 423,587 Total expenditures 3,574,366 - 1,526,385 11,112,850 Excess(deficiency)of revenues over(under)expenditures (1,453,846) 219 (1,330,451) (2,186,001) Other financing sources(uses) Proceeds from sale of capital assets - - - 73,080 Proceeds from issuance of debt 2,249,475 - 2,249,475 Insurance recoveries - - - 2,128 Transfers in - - 1,206,155 1,508,555 Transfers out (1,206,155) - - (1,910,656) Total other financing sources(uses) 1,043,320 - 1,206,155 1,922,582 Net change in fund balances (410,526) 219 (124,296) (263,419) Fund balances,beginning of year 471,760 173,674 124,296 3,038,027 Fund balances,end of year $ 61,234 $ 173,893 $ - $ 2,774,608 99 COLLETON COUNTY, SOUTH CAROLINA CLERK OF COURT IV INCENTIVES SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30, 2022 Original Final Budgeted Budgeted Amounts Amounts Actual Variance REVENUES Intergovernmental $ 39,500 $ 39,500 $ 44,216 $ 4,716 Otherrevenues 500 500 106 (394) Total revenues 40,000 40,000 44,322 4,322 EXPENDITURES Judicial services 40,000 40,000 43,372 (3,372) Total expenditures 40,000 40,000 43,372 (3,372) Net change in fund balance - - 950 950 FUND BALANCES,beginning of year 92,884 92,884 92,884 - FUND BALANCES,end of yea� $ 92,884 $ 92,884 $ 93,834 $ 950 100 COLLETON COUNTY, SOUTH CAROLINA CLERK OF COURT N UNIT COSTS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30, 2022 Original Final Budgeted Budgeted Amounts Amounts Actual Variance REVENUES Intergovernmental $ 146,543 $ 169,613 $ 126,268 $ (43,345) Otherrevenues 500 500 - (500) Total revenues 147,043 170,113 126,268 (43,845) EXPENDITURES Judicial services 182,810 176,330 147,754 28,576 Total expenditures 182,810 176,330 147,754 28,576 Deficiency of revenues under expenditures (35,767) (6,217) (21,486) (15,269) OTHER FINANCING SOURCES Transfers in 6,217 6,217 7,124 907 Total otherfinancing sources 6,217 6,217 7,124 907 Net change in fund balance (29,550) - (14,362) (14,362) FUND BALANCES,beginning of year 14,362 14,362 14,362 - FUND BALANCES,end of yea� $ (15,188) $ 14,362 $ - $ (14,362) 101 COLLETON COUNTY, SOUTH CAROLINA VICTIM WITNESS SERVICES SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30, 2022 Original Final Budgeted Budgeted Amounts Amounts Actual Variance REVENUES Intergovernmental $ 95,165 $ 98,334 $ 51,106 $ (47,228) Otherrevenues 2,000 2,000 130 (1,870) Total revenues 97,165 100,334 51,236 (49,098) EXPENDITURES Public safety 99,619 104,288 119,732 (15,444) Total expenditures 99,619 104,288 119,732 (15,444) Deficiency of revenues underexpenditures (2,454) (3,954) (68,496) (64,542) OTHER FINANCING SOURCES Transfers in 3,954 3,954 - (3,954) Total other financing sources 3,954 3,954 - (3,954) Net change in fund balance 1,500 - (68,496) (68,496) FUND BALANCES,beginning of year 135,383 135,383 135,383 - FUND BALANCES,end of yea� $ 136,883 $ 135,383 $ 66,887 $ (68,496) 102 COLLETON COUNTY, SOUTH CAROLINA ANIMAL CARE CONTROL DONATIONS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30, 2022 Original Final Budgeted Budgeted Amounts Amounts Actual Variance REVENUES Fines andfees $ 18,000 $ 18,000 $ 15,440 $ (2,560) Otherrevenues - - 10,287 10,287 Total revenues 18,000 18,000 25,727 7,727 EXPENDITURES Public safety 18,000 18,000 39,398 (21,398) Totalexpenditures 18,000 18,000 39,398 (21,398) Net change in fund balance - - (13,671) (13,671) FUND BALANCES,beginning of year 13,671 13,671 13,671 - FUND BALANCES,end of yea� $ 13,671 $ 13,671 $ - $ (13,671) 103 COLLETON COUNTY, SOUTH CAROLINA EMERGENCY TELEPHONE SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30, 2022 Original Final Budgeted Budgeted Amounts Amounts Actual Variance REVENUES Intergovernmental $ 52,850 $ 52,850 $ 87,658 $ 34,808 Fines and fees 246,383 266,383 290,110 23,727 Otherrevenues - 27,748 562 (27,186) Totalrevenues 299,233 346,981 378,330 31,349 EXPENDITURES Public safety 304,986 352,734 302,382 50,352 Totalexpenditures 304,986 352,734 302,382 50,352 Excess(deficiency)of revenues over(under)expenditures (5,753) (5,753) 75,948 81,701 OTHER FINANCING SOURCES Transfers in 5,753 5,753 - (5,753) Total other financing sources 5,753 5,753 - (5,753) Net change in fund balance - - 75,948 75,948 FUND BALANCES,beginning of year 453,558 453,558 453,558 - FUND BALANCES,end of yea� $ 453,558 $ 453,558 $ 529,506 $ 75,948 104 COLLETON COUNTY, SOUTH CAROLINA COUNTY HOSPITALITY TAX SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30, 2022 Original Final Budgeted Budgeted Amounts Amounts Actual Variance REVENUES Taxes $ 550,000 $ 550,000 $ 614,120 $ 64,120 Otherrevenues 1,200 1,200 223 (977) Totalrevenues 551,200 551,200 614,343 63,143 EXPENDITURES General government - - 57,211 (57,211) Recreation and culture 72,045 178,730 137,348 41,382 Economic development 124,152 124,152 124,152 - Intergovernmental 6,000 6,000 6,000 - Capital outlay - - 19,049 (19,049) Total expenditures 202,197 308,882 343,760 (34,878) Excess of revenues overexpenditures 349,003 242,318 270,583 28,265 OTHER FINANCING USES Transfers out (248,318) (248,318) (292,443) (44,125) Total other financing uses (248,318) (248,318) (292,443) (44,125) Net change in fund balance 100,685 (6,000) (21,860) (15,860) FUND BALANCES,beginning of year 86,737 86,737 86,737 - FUND BALANCES,end of yea� $ 187,422 $ 80,737 $ 64,877 $ (15,860) 105 COLLETON COUNTY, SOUTH CAROLINA COUNTY ACCOMMODATIONS TAX SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30, 2022 Original Final Budgeted Budgeted Amounts Amounts Actual Variance REVENUES Taxes $ 484,499 $ 484,499 $ 750,970 $ 266,471 Otherrevenues - - 253 253 Totalrevenues 484,499 484,499 751,223 266,724 EXPENDITURES Roads and bridges 7,614 7,614 5,856 1,758 Recreation and culture 496,129 496,129 424,159 71,970 Intergovernmental 25,702 25,702 25,702 - Total expenditures 529,445 529,445 455,717 73,728 Excess(deficiency)of revenues over(under)expenditures (44,946) (44,946) 295,506 340,452 OTHER FINANCING SOURCES(USES) Transfers in 44,946 44,946 - (44,946) Transfers out - - (275,000) (275,000) Total other financing sources(uses) 44,946 44,946 (275,000) (319,946) Net change in fund balance - - 20,506 20,506 FUND BALANCES,beginning of year 86,756 86,756 86,756 - FUND BALANCES,end of yea� $ 86,756 $ 86,756 $ 107,262 $ 20,506 106 COLLETON COUNTY, SOUTH CAROLINA DEBT SERVICE SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30, 2022 Original Final Budgeted Budgeted Amounts Amounts Actual Variance REVENUES Taxes $ 1,981,560 $ 2,010,010 $ 2,109,450 $ 99,440 Fines and fees 9,100 9,100 10,004 904 Otherrevenues 13,000 13,000 1,066 (11,934) Total revenues 2,003,660 2,032,110 2,120,520 88,410 EXPENDITURES Debt service: Principal 1,080,000 1,076,093 3,306,093 (2,230,000) Interest and fiscal charges 202,099 206,006 268,273 (62,267) Total expenditures 1,282,099 1,282,099 3,574,366 (2,292,267) Excess(deficiency)of revenues over(under)expenditures 721,561 750,011 (1,453,846) (2,203,857) OTHER FINANCING SOURCES(USES) Proceeds from issuance of debt - - 2,249,475 2,249,475 Transfers out (721,561) (750,011) (1,206,155) (456,144) Total other financing sources(uses) (721,561) (750,011) 1,043,320 1,793,331 Net change in fund balance - - (410,526) (410,526) FUND BALANCES,beginning of year 471,760 471,760 471,760 - FUND BALANCES,end of yea� $ 471,760 $ 471,760 $ 61,234 $ (410,526) 107 COLLETON COUNTY, SOUTH CAROLINA CAPITAL SALES TAX DEBT SERVICE SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30, 2022 Original Final Budgeted Budgeted Amounts Amounts Actual Variance REVENUES Taxes $ 6,146,610 $ 6,463,644 $ 6,034,800 $ (428,844) Otherrevenues 25,000 25,000 4,917 (20,083) Totalrevenues 6,171,610 6,488,644 6,039,717 (448,927) EXPENDITURES Debt service: Principal 4,254,600 4,254,600 3,875,000 379,600 Interest and fiscal charges 220,400 220,400 220,400 - Total expenditures 4,475,000 4,475,000 4,095,400 379,600 Excess of revenues overexpenditures 1,696,610 2,013,644 1,944,317 (69,327) OTHER FINANCING USES Transfersout (1,696,610) (2,013,644) (2,013,645) (1) Total other financing uses (1,696,610) (2,013,644) (2,013,645) (1) Net change in fund balance - - (69,328) (69,328) FUND BALANCES,beginning of year 6,869,333 6,869,333 6,869,333 - FUND BALANCES,end of yea� $ 6,869,333 $ 6,869,333 $ 6,800,005 $ (69,328) 108 COLLETON COUNTY, SOUTH CAROLINA DEBT SERVICE NON-GOB SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30, 2022 Original Final Budgeted Budgeted Amounts Amounts Actual Variance REVENUES Intergovernmental $ 195,889 $ 195,889 $ 195,889 $ - Otherrevenues - - 45 45 Total revenues 195,889 195,889 195,934 45 EXPENDITURES Debt service: Principal 923,333 912,054 1,371,071 (459,017) Interest and fiscal charges 276,667 287,946 155,314 132,632 Total expenditures 1,200,000 1,200,000 1,526,385 (326,385) Deficiency of revenues underexpenditures (1,004,111) (1,004,111) (1,330,451) (326,340) OTHER FINANCING SOURCES Transfers in 1,200,000 1,200,000 1,206,155 6,155 Total other financing sources 1,200,000 1,200,000 1,206,155 6,155 Net change in fund balance 195,889 195,889 (124,296) (320,185) FUND BALANCES,beginning of year 124,296 124,296 124,296 - FUND BALANCES,end of yea� $ 320,185 $ 320,185 $ - $ (320,185) 109 COLLETON COUNTY, SOUTH CAROLINA CAPITAL PROJECTS FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30, 2022 Original Final Budgeted Budgeted Amounts Amounts Actual Variance REVENUES Intergovernmental $ 75,000 $ 3,785,775 $ 4,769,631 $ 983,856 Otherrevenues 135,000 5,219,041 497,633 (4,721,408) Totalrevenues 210,000 9,004,816 5,267,264 (3,737,552) EXPENDITURES Generalgovernment 598,090 601,840 918,736 (316,896) Public safety - 63,746 83,331 (19,585) Solid waste - 3,445,214 1,981,174 1,464,040 Recreation and culture 212,000 1,125,548 526,210 599,338 Health and human services - - 708 (708) Economic development 784,265 784,265 601,983 182,282 Intergovernmental 1,650,000 7,087,423 3,381,297 3,706,126 Capital outlay: General government 2,312,758 5,275,013 3,333,625 1,941,388 Public safety - 2,835,895 17,604 2,818,291 Solid waste - 2,723,006 2,196,822 526,184 Recreation and culture - 423,620 198,328 225,292 Health and human services - 142,292 124,292 18,000 Total expenditures 5,557,113 24,507,862 13,364,110 11,143,752 Deficiency of revenues under expenditures (5,347,113) (15,503,046) (8,096,846) 7,406,200 OTHER FINANCING SOURCES(USES) Proceeds from sale of capital assets 159,611 159,611 - (159,611) Issuance ofdebt 584,265 6,084,265 6,078,398 (5,867) Insurance proceeds - - 133,615 133,615 Transfers in 2,125,090 2,877,287 4,178,064 1,300,777 Transfers out - (350,000) (350,000) - Total other financing sources,net 2,868,966 8,771,163 10,040,077 1,268,914 Net change in fund balance (2,478,147) (6,731,883) 1,943,231 8,675,114 FUND BALANCES,beginning of year 10,127,910 10,127,910 10,127,910 - FUND BALANCES,end of yea� $ 7,649,763 $ 3,396,027 $ 12,071,141 $ 8,675,114 110 FIDUCIARY FUNDS CUSTODIAL FUNDS Custodial funds are used to account for assets held by the County as an agent for individuals, private organizations, and other governments. Sheriff Trust Funds —to account for the receipts and disbursements by the Sheriff's office related to seized assets from offenders. Inmate Trust Funds—to account for the funds held for the offenders that are incarcerated. Jail Commissary Funds—to account for the resources used to operate the County detention center commissary. Willow Swamp Water Shed Fund—to account for the resources used for the Willow Swamp water shed. Law Officer's Memorial Fund—to account for contributions on behalf of law enforcement officials. Treasurer Fund — to account for receipts and disbursements by the Treasurer that will be disbursed to other entities. 14th Circuit Court Solicitor Fund — to account for receipts and disbursements by the 14th Circuit Court Solicitor that will be disbursed to other entities. Delinquent Tax Fund—to account for delinquent taxes collected. Clerk of Court Fund —to account for child support payments, bonds, restitution, and fines collected by the Clerk of Court and held in trust for others. Magistrate's Fund—to account for fines collected that have not been disposed of by the court. Firemen's Fund — represents the receipts and disbursements by the Treasurer that will be disbursed to the various fire departments within the County. Colleton County School Fund — used to account for receipts and disbursements by the Treasurer of assets earmarked for the school district. COLLETON COUNTY, SOUTH CAROLINA COMBINING STATEMENT OF FIDUCIARY NET POSITION CUSTODIAL FUNDS J U N E 30, 2022 Sheriff Inmate Jail Willow Swamp Law Officer's ASSETS Trust Trust Commissary Water Shed Memorial Cash and cash equivalents $ 249,897 $ 166,311 137,028 $ 54,729 $ 2,864 Other receivables - - - - - Totalassets 249,897 166,311 137,028 54,729 2,864 LIABILITIES Due to others 183,262 68,789 108,500 15,000 - Totalliabilities 183,262 68,789 108,500 15,000 - NET POSITION Restricted: Individuals,organizations, and othergovernments 66,635 97,522 28,528 39,729 2,864 Total net position $ 66,635 $ 97,522 28,528 $ 39,729 $ 2,864 111 14th Circuit Delinquent Clerk of Colleton Treasurer Court Solicitor Tax Court Magistrate Firemen County School Total $ 758,317 $ 7,541 $ 3,501,133 $ 322,518 $ 102,123 $ 127,946 $ 8,311,588 $ 13,741,995 4,627 - - - - - - 4,627 762,944 7,541 3,501,133 322,518 102,123 127,946 8,311,588 13,746,622 504,555 - 1,848,290 141,380 53,663 90,845 5,774,524 8,788,808 504,555 - 1,848,290 141,380 53,663 90,845 5,774,524 8,788,808 258,389 7,541 1,652,843 181,138 48,460 37,101 2,537,064 4,957,814 $ 258,389 $ 7,541 $ 1,652,843 $ 181,138 $ 48,460 $ 37,101 $ 2,537,064 $ 4,957,814 112 COLLETON COUNTY, SOUTH CAROLINA COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION CUSTODIAL FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2022 Sheriff Inmate Jail Willow Swamp Law Officer's Trust Trust Commissary Water Shed Memorial ADDITIONS Taxes $ - $ - $ - $ 33,928 $ - Fines and fees 13,521 79,775 - - - Miscellaneous 311 - 187,346 66 5 Total additions 13,832 79,775 187,346 33,994 5 DEDUCTIONS Taxes and fees paid to other governments - - - - - Other custodial disbursements 5,663 19,279 182,036 - - Total deductions 5,663 19,279 182,036 - - Net increase in fiduciary net position 8,169 60,496 5,310 33,994 5 Net position,beginning of year 58,466 37,026 23,218 5,735 2,859 Net position,end of year $ 66,635 $ 97,522 $ 28,528 $ 39,729 $ 2,864 113 14th Circuit Delinquent Clerk of Colleton Treasurer Court Solicitor Tax Court Magistrate Firemen County School Total $ 4,515,048 $ - $ 5,376,649 $ - $ - $ 80,866 $ 11,236,212 $ 21,242,703 3,601,499 - - 581,317 625,828 - - 4,901,940 33,572 28,947 1,153 22 - 188 70,824,487 71,076,097 8,150,119 28,947 5,377,802 581,339 625,828 81,054 82,060,699 97,220,740 8,145,491 - 4,641,799 - - - 68,285,987 81,073,277 - 24,618 - 477,382 569,062 64,351 12,770,248 14,112,639 8,145,491 24,618 4,641,799 477,382 569,062 64,351 81,056,235 95,185,916 4,628 4,329 736,003 103,957 56,766 16,703 1,004,464 2,034,824 253,761 3,212 916,840 77,181 (8,306) 20,398 1,532,600 2,922,990 $ 258,389 $ 7,541 $ 1,652,843 $ 181,138 $ 48,460 $ 37,101 $ 2,537,064 $ 4,957,814 114 COMPONENT UNITS MAJOR COMPONENT UNITS Component units are used to account for organizations that raise and hold economic resources for the direct benefit of the governmental unit and for which the elected officials of the primary government are financially accountable. Fire and Rescue Commission —used to account for programs and activities of the fire and rescue department. Memorial Library Fund—used to account for programs and activities for the Memorial Library. COLLETON COUNTY, SOUTH CAROLINA BALANCE SHEET COMPONENT UNIT FIRE AND RESCUE COMMISSION JUNE 30, 2022 General Debt Service Capital Total ASSETS Cash and cash equivalents $ 107,315 $ 132,929 $ 5,277,763 $ 5,518,007 Receivables,net 1,688,193 214,335 - 1,902,528 Prepaid expenditures 158,018 - - 158,018 Total assets $ 1,953,526 $ 347,264 $ 5,277,763 $ 7,578,553 LIABILITIES,DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES LIABILITIES Accounts payable $ 100,657 $ - $ 308,606 $ 409,263 Accrued payroll and benefits 335,762 - - 335,762 Totalliabilities 436,419 - 308,606 745,025 DEFERRED INFLOWS OF RESOURCES Unavailable revenue-fees 1,060,627 - - 1,060,627 Unavailable revenue-property taxes 293,557 189,313 - 482,870 Unavailable revenue-intergovernmental 15,280 - - 15,280 Total deferred inflows of resources 1,369,464 189,313 - 1,558,777 FUND BALANCES Nonspendable 158,018 - - 158,018 Restricted - 157,951 4,969,157 5,127,108 Unassigned (10,375) - - (10,375) Total fund balances 147,643 157,951 4,969,157 5,274,751 Total liabilities,deferred inflows of resources andfund balances $ 1,953,526 $ 347,264 $ 5,277,763 $ 7,578,553 115 COLLETON COUNTY, SOUTH CAROLINA RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET POSITION COMPONENT UNIT—FIRE AND RESCUE COMMISSION JUNE 30, 2022 Total Fire and Rescue fund balance: $ 5,274,751 Amounts reported for governmental activities in the statement of net position are different because of the following: Capital assets used in governmental activities are not financial resources and, therefore,are not reported in the government funds. 11,366,642 Other long-term assets are not available to pay for current period expenditures and, therefore,are deferred in the funds. Property taxes and other special assessments $ 482,870 EMS fee receivables 1,060,627 Intergovermentalrevenues 15,280 1,558,777 Deferred outFlows of resources are not due and payable in the current period and, therefore,are not reported in the funds.These deferred outflows of resources consist of pension related experience differences,assumption changes,and differences between projected and actual earnings on plan investments. Deferred outflows related to pensions $ 2,624,236 Deferred outFlows related to other post-employment benefits 346,646 2,970,882 Long-term liabilities are not due and payable in the current period and,therefore,are not reported in the funds. General obligation bonds $ (11,380,000) Bond premiums (248,708) Capital leases (664,351) Compensated absences (417,146) Accrued interest (103,090) Net pension liability (10,894,026) Total other post-employment benefits liability (1,136,957) (24,844,278) Deferred inflows of resources are not available to pay for current period expenditures and,therefore,are not reported in the funds.These deferred inflows of resources consist of pension related differences between projected and actual earnings on plan investments. Deferred inflows related to pensions $ (2,445,144) Deferred inflows related to other post-employment benefits (55,612) (2,500,756) Net position of governmental activities $ (6,173,982) 116 COLLETON COUNTY, SOUTH CAROLINA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES COMPONENT UNIT-FIRE AND RESCUE COMMISSION FOR THE FISCAL YEAR ENDED JUNE 30, 2022 General Debt Service Capital Total REVENUES Taxes $ 3,913,183 $ 2,638,552 $ - $ 6,551,735 Intergovernmental 4,886,515 - - 4,886,515 Fines and fees 2,222,645 - - 2,222,645 Other income 35,390 897 2,859 39,146 Totalrevenues 11,057,733 2,639,449 2,859 13,700,041 EXPENDITURES Current: Public safety 11,796,793 195,889 472,316 12,464,998 Capital outlay: Publicsafety 146,155 - 185,637 331,792 Debt service: Principal - 3,355,980 - 3,355,980 Interest - 373,479 - 373,479 Totalexpenditures 11,942,948 3,925,348 657,953 16,526,249 Excess(deficiency)of revenues over(under)expenditures (885,215) (1,285,899) (655,094) (2,826,208) OTHER FINANCING SOURCES(USES) Issuance of debt - 2,198,728 5,000,000 7,198,728 Insurancerecoveries 113,090 - - 113,090 Transfers in 817,508 - - 817,508 Transfers out - (817,508) - (817,508) Total other financing sources(uses) 930,598 1,381,220 5,000,000 7,311,818 Net change in fund balances 45,383 95,321 4,344,906 4,485,610 Fund balances,beginning of year 102,260 62,630 624,251 789,141 Fund balances,end of year $ 147,643 $ 157,951 $ 4,969,157 $ 5,274,751 117 COLLETON COUNTY, SOUTH CAROLINA RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGE� IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIE� COMPONENT UNIT—FIRE AND RESCUE COMMISSION FOR THE FISCAL YEAR ENDED JUNE 30, 2022 Net change in fund balances-total governmental funds $ 4,485,610 Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlays as expenditures. However,in the statement of activities,the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. Capital outlay $ 711,508 Depreciation expense (1,061,366) (349,858) Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds. Property taxes and other special assessments $ 145,575 EMS fees receivable (360,673) Intergovernmental revenues (35,068) (250,166) The issuance of long-term debt provides current financial resources to governmental funds,while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction,however, has any effect on net position. Governmental funds report the effect of premiums,discounts and similar items when debt is first issued,whereas these amounts are deferred and amortized in the statement of activities. The effects of these items are as follows. Repayment of the principal of long-term debt $ 3,355,980 Issuance of long-term debt (7,000,000) Premium on bond issuance (198,728) Amortization of premium on long-term debt 13,672 (3,829,076) 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 governmental funds. In addition,interest on long-term debt is not recognized under the modified accrual basis of accounting until due,rather than as it accrues. The following amounts represent the net liability changes using the full accrual method of accounting. Pension liability $ (31,321) Compensated absences (70,750) Accrued interest on long-term debt (15,301) Other post-employment benefits liability (96,502) (213,874) $ (157,364) 118 COLLETON COUNTY, SOUTH CAROLINA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL COMPONENT UNIT-FIRE AND RESCUE COMMISSION FOR THE FISCAL YEAR ENDED JUNE 30, 2022 Original Final Budgeted Budgeted Amounts Amounts Actual Variance REVENUES Taxes $ 6,045,388 $ 6,249,988 $ 6,551,735 $ 301,747 Intergovernmental 4,507,934 4,710,815 4,886,515 175,700 Fines andfees 1,750,000 1,815,395 2,222,645 407,250 Otherrevenues 12,859 511,463 39,146 (472,317) Totalrevenues 12,316,181 13,287,661 13,700,041 412,380 EXPENDITURES Public safety 11,431,503 12,302,648 12,464,998 (162,350) Capital outlay: Public safety 185,637 347,115 331,792 15,323 Debt service: Principal 1,350,921 1,350,980 3,355,980 (2,005,000) Interest and fiscal charges 229,078 229,019 373,479 (144,460) Total expenditures 13,197,139 14,229,762 16,526,249 (2,296,487) Deficiency of revenues underexpenditures (880,958) (942,101) (2,826,208) (1,884,107) OTHER FINANCING SOURCES(USES) Issuance of debt 5,000,000 5,000,000 7,198,728 2,198,728 Insurance proceeds - - 113,090 113,090 Transfers in 1,120,946 1,192,196 817,508 (374,688) Transfers out (879,519) (950,769) (817,508) 133,261 Total otherfinancing sources,net 5,241,427 5,241,427 7,311,818 2,070,391 Net change in fund balance 4,360,469 4,299,326 4,485,610 186,284 FUND BALANCES,beginning of year 789,141 789,141 789,141 - FUND BALANCES,end of yea� $ 5,149,610 $ 5,088,467 $ 5,274,751 $ 186,284 119 COLLETON COUNTY, SOUTH CAROLINA BALANCE SHEET COMPONENT UNIT MEMORIAL LIBRARY JUNE 30, 2022 Special General Revenue Fund Total ASSETS Cash and cash equivalents $ 210,875 $ 4,481 $ 215,356 Receivables,net 4,601 - 4,601 Prepaid expenditures 14,920 - 14,920 Total assets $ 230,396 $ 4,481 $ 234,877 LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable $ 11,349 $ 4,481 $ 15,830 Accrued payroll and benefits 19,615 - 19,615 Unearned revenue 8,309 - 8,309 Totalliabilities 39,273 4,481 43,754 FUND BALANCES Nonspendable 14,920 - 14,920 Unassigned 176,203 - 176,203 Total fund balances 191,123 - 191,123 Total liabilities and fund balances $ 230,396 $ 4,481 $ 234,877 120 COLLETON COUNTY, SOUTH CAROLINA RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET POSITION COMPONENT UNIT—MEMORIAL LIBRARY JUNE 30, 2022 Total Memorial Libraryfund balance: $ 191,123 Amounts reported for governmental activities in the statement of net position are different because of the following: Capital assets used in governmental activities are not financial resources and, therefore,are not reported in the government funds. 287,832 Deferred outflows of resources are not due and payable in the current period and, therefore,are not reported in the funds.These deferred outflows of resources consist of pension related experience differences,assumption changes,and differences between projected and actual earnings on plan investments. Deferred outflows related to pensions $ 140,187 Deferred outflows related to other post-employment benefits 230,343 370,530 Long-term liabilities are not due and payable in the current period and,therefore,are not reported in the funds. Compensated absences $ (13,803) Net pension liability (753,233) Total other post-employment benefits liability (755,499) (1,522,535) Deferred inflows of resources are not available to pay for current period expenditures and,therefore,are not reported in the funds.These deferred inflows of resources consist of pension related differences between projected and actual earnings on plan investments. Deferred inflows related to pensions $ (129,283) Deferred inflows related to other post-employment benefits (36,953) (166,236) Net position of governmental activities $ (839,286) 121 COLLETON COUNTY, SOUTH CAROLINA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES COMPONENT UNIT-MEMORIAL LIBRARY FOR THE FISCAL YEAR ENDED JUNE 30, 2022 Special General Revenue Fund Total REVENUES Intergovernmental $ 739,849 $ 100,000 $ 839,849 Fines and fees 25,458 - 25,458 Other income 33,920 19 33,939 Total revenues 799,227 100,019 899,246 EXPENDITURES Current: Recreation and culture 792,056 102,496 894,552 Capital outlay 615 - 615 Total expenditures 792,671 102,496 895,167 Net change in fund balances 6,556 (2,477) 4,079 Fund balances,beginning of year 184,567 2,477 187,044 Fund balances,end of year $ 191,123 $ - $ 191,123 122 COLLETON COUNTY, SOUTH CAROLINA RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES -COMPONENT UNIT-MEMORIAL LIBRARY FOR THE FISCAL YEAR ENDED JUNE 30, 2022 Net change in fund balances-total governmental funds $ 4,079 Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlays as expenditures. However,in the statement of activities,the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. Capital outlay $ 83,309 Depreciation expense (104,253) (20,944) 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 governmental funds. In addition,interest on long-term debt is not recognized under the modified accrual basis of accounting until due,rather than as it accrues. The following amounts represent the net liability changes using the full accrual method of accounting. Pension liability $ 17,415 Compensated absences 4,627 Other post-employment benefits liability (64,124) (42,082) $ (58,947) 123 COLLETON COUNTY, SOUTH CAROLINA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL COMPONENT UNIT-MEMORIAL LIBRARY FOR THE FISCAL YEAR ENDED JUNE 30, 2022 Original Final Budgeted Budgeted Amounts Amounts Actual Variance REVENUES Intergovernmental $ 812,660 $ 843,660 $ 839,849 $ (3,811) Fines and fees - - 25,458 25,458 Otherrevenues - 30,886 33,939 3,053 Total revenues 812,660 874,546 899,246 24,700 EXPENDITURES Current: Recreation and culture 799,481 913,319 894,552 18,767 Capital outlay - - 615 (615) Total expenditures 799,481 913,319 895,167 18,152 Net change in fund balance 13,179 (38,773) 4,079 42,852 FUND BALANCES,beginning of year 187,044 187,044 187,044 - FUND BALANCES,end ofyea� $ 200,223 $ 148,271 $ 191,123 $ 42,852 124 COLLETON COUNTY, SOUTH CAROLINA UNIFORM SCHEDULE OF COURT FINES, ASSESSMENTS AND SURCHARGES (per ACT 96) For The Year Ended June 30, 2022 FOR THE STATE TREASURER'S OFFICE: COUNTY/MUNiCIPAL FUNDS COLLECTED General Magistrate Municipal Total BY CLERK OF COURT Sessions Court Court Court Fines and Assessments: Court fines and assessments collected $ 365,868.00 $ 551,509.00 $ - $ 917,377.00 Court fines and assessments remitted to State Treasurer $ (214,221.00) $ (275,612.00) $ - $ (489,833.00) Total Court Fines and Assessments retained � 151,647.00 $ 275,897.00 $ - $ 427,544.00 Surcharges and Assessments retained for victim services: Surcharges collected and retained $ 8,379.00 $ 6,338.00 $ - $ 14,717.00 Assessments retained $ 426.00 $ 21,515.00 $ - $ 21,941.00 Total Surcharges and Assessments retained for victim $ g�g05.00 $ 27,853.00 $ - $ 36,658.00 services FOR THE DEPARTMENT OF CRIME VICTIM COMPENSATION (DCVC) VICTIM SERVICE FUNDS COLLECTED Municipal Countv Total Carryforward from Previous Year—Beginning Balance $ 135,383.00 $ 135,383.00 Victim Service Revenue: Victim Service Fines Retained by City/County Treasurer $ - $ - $ - Victim Service Assessments Retainedby City/County Treasurer $ - $ 21,941.00 $ 21,941.00 Victim Service Surcharges Retained by City/County Treasurer $ - $ 14,716.00 $ 14,716.00 Interest Earned $ - $ 130.00 $ 130.00 Grant Funds Received Grant from: $ - $ - $ - General Funds Transferred to Victim Service Fund $ - $ - $ - Contribution Received from Victim Service Contracts: (1)Town of Edisto Beach $ - $ 4,449.00 $ 4,449.00 (2)Town of Cottageville $ - $ 10,000.00 $ 10,000.00 (3)City of $ - $ - $ - Total Funds Allocated to Victim Service Fund+Beginning Balance(A) $ ' $ 186,619.00 $ 186,619.00 125 COLLETON COUNTY, SOUTH CAROLINA UNIFORM SCHEDULE OF COURT FINES, ASSESSMENTS AND SURCHARGES (per ACT 96) For The Year Ended June 30, 2022 Expenditures for Victim Service Program: Municipal Countv Total Salaries and Benefits $ - $ 103,192.00 $ 103,192.00 Operating Expenditures $ - $ 11,540.00 $ 11,540.00 Victim Service Contract(s): (1) Entity'sName $ - $ - $ - (2) Entity's Name $ - $ - $ - Victim Service Donation(s): (1)Domestic Violence Shelter: $ - $ - $ - (2)Rape Crisis Center:Hopeful Harizons $ - $ 5,000.00 $ 5,000.00 (3)Other local direct crime victims service agency: $ - $ - $ - Transferred to General Fund $ - $ - $ - Total Expenditures from Victim Service Fund/Program(B) $ - $ 119,732.00 $ 119,732.00 Total Victim Service Funds Retained by Municipal/Counry Treasurer(A-B) $ - $ 66,887.00 $ 66,887.00 Less: Prior Year Fund Deficit Repayment $ - $ - $ - Carryforward Funds—End of Year $ - $ 66,887.00 $ 66,887.00 126 STATISTICAL SECTION STATISTICAL SECTION This part of the Colleton County, South Carolina's (the "County") Annual Comprehensive Financial Report ("ACFR") presents detailed information as a context for understanding what the information in the financial statements, notes disclosures and required supplementary information says about the County's overall financial health. Contents Paqe FinancialTrends...........................................................................................................................................127— 130 These schedules contain trend information to help the reader understand how the County's financial performance and well-being have changed over time. RevenueCapacity........................................................................................................................................131 — 134 These schedules contain information to help the reader assess the factors affecting the County's ability to generate its property and sales taxes. DebtCapacity...............................................................................................................................................135— 139 These schedules present information to help the reader assess the affordability of the County's current levels of outstanding debt and the County's ability to issue additional debt in the future. Demographic and Economic Information............................................................................................. 140 and 141 These schedules offer demographic and economic indicators to help the reader understand the environment within which the County's financial activities take place and to help comparisons over time and with other governments. OperatingInformation .................................................................................................................................142— 144 These schedules contain information about the County's operations and resources to help the reader understand how the County's financial information relates to the services the County provides and the activities it performs. Sources: Unless otherwise noted, the information in these schedules is derived from the annual comprehensive financial reports for the relevant year. COLLETON COUNTY, SOUTH CAROLINA NET POSITION BY COMPONENT LAST TEN FISCAL YEARS Fiscal Year 2013 2014 2015 2016 2077 2018 2079 2020 2021 2022 Governmental activities Net investment in capital assets $ 29,208,570 $ 31,257,962 $ 33,464,047 $ 31,778,627 $ 37,187,490 $ 35,243,087 $ 40,730,332 $ 42,289,669 $ 43,815,008 $ 42,262,227 Restricted 8,976,701 10,305,751 9,738,050 17,017,936 12,733,361 14,691,101 7,998,775 8,295,818 10,571,627 10,118,153 Unrestricted 10,997,674 14,202,852 (8,369,151) (11,885,105) (9,606,502) (13,477,153) (14,118,289) (17,448,244) (18,318,223) (10,541,077) Total governmental activities netposition $ 49,182,945 $ 55,766,565 $ 34,832,946 $ 36,911,458 $ 40,314,349 $ 36,457,035 $ 34,610,818 $ 33,137,243 $ 36,068,412 $ 41,839,303 Source:County Audit Reports 127 COLLETON COUNTY, SOUTH CAROLINA CHANGES IN NET POSITION LAST TEN FISCAL YEARS (accrual basis of accounting) Fiscal Year 2013 2014 2015 2016 2077 2078 2079 2020 2021 2022 Expenses Governmental activities: General government $ 8,178,472 $ 10,740,147 $ 8,811,200 $ 9,227,968 $ 9,810,028 $ 8,428,469 $ 9,253,826 $ 10,607,610 $ 10,882,564 $ 11,224,373 Judicial 4,594,583 4,957,014 5,255,325 5,871,221 6,309,402 6,498,833 6,194,472 6,856,354 7,005,856 6,773,058 Public safety 8,410,210 8,589,140 8,642,672 8,319,638 8,702,190 13,309,631 14,133,924 15,820,923 15,683,920 16,225,863 Roads and bridges 2,496,358 4,182,236 4,949,171 6,405,248 2,975,077 3,398,083 4,699,060 7,154,129 6,192,936 2,727,786 Solid waste 2,449,740 2,568,610 2,509,851 2,418,936 2,575,815 3,215,275 3,903,706 4,104,787 4,403,242 6,717,388 Recreation and culture 1,313,153 1,743,106 2,906,984 2,627,302 2,927,170 3,825,057 4,813,076 4,691,384 4,684,331 4,925,318 Health and human services 1,789,799 1,925,374 1,928,313 1,908,438 1,888,520 2,392,807 2,249,725 2,734,348 3,738,071 3,034,859 Economic development 3,373,628 1,569,363 1,568,862 1,650,684 1,377,821 11,530,791 7,777,710 1,943,153 1,194,174 4,653,832 Intergovernmental 3,360,676 3,661,372 3,836,524 5,590,873 9,763,973 - - - - - Interest and fiscal changes 500,152 437,611 469,185 895,063 759,085 704,723 622,477 761,664 659,989 524,705 Totals expenses 36,466,771 40,373,973 40,878,087 44,915,371 47,089,081 53,303,669 53,647,976 54,674,352 54,445,083 56,807,182 Revenues Governmental activities: Charges for services General government 483,659 568,195 531,064 1,231,180 1,407,234 1,547,365 1,583,830 1,657,588 1,450,666 2,075,308 Judicial 2,769,668 1,159,451 1,117,461 1,058,359 1,090,259 1,004,415 987,001 837,494 724,092 758,945 Public safety 364,705 357,982 342,051 282,939 296,497 1,234,198 1,229,173 1,558,802 1,544,459 1,778,525 Roads and bridges 1,015,102 911,965 895,833 934,318 1,071,442 1,031,641 967,055 959,775 1,113,770 1,060,879 Solid waste 1,636,460 1,737,436 1,802,512 2,071,414 2,150,225 2,035,603 2,383,073 2,446,487 2,494,106 2,184,009 Recreation and culture 210,835 330,566 326,236 464,510 500,940 987,145 685,064 601,487 828,465 951,637 Health and human services 627,354 633,729 33,107 25,911 40,276 39,191 39,310 33,188 - - Economic development - 1,541,360 677,045 - - - - - - - Operating grants and contributions 3,073,637 9,860,851 8,629,703 11,726,799 12,448,200 9,796,813 8,959,746 11,937,834 14,117,874 15,847,272 Capital grants and contributions - - 4,473,000 - - 315,071 2,303,722 81,496 940,550 1,284,059 General revenues: Taxes 22,956,394 21,029,359 21,343,703 27,045,537 28,691,017 29,319,480 30,191,429 30,286,642 32,152,665 34,905,630 Grants and contributions not restricted to specific program 1,430,665 1,436,657 1,445,663 1,875,873 1,508,783 2,577,176 1,810,480 2,024,709 1,701,639 1,683,290 Interest and investment earnings - - - - - - - - - - Miscellaneous 271,784 438,004 428,830 724,951 1,287,099 638,280 661,876 775,275 327,713 48,519 Gain(loss)on sale of assets 66,667 - - - - - - - - - Transfer in(out) (52,796) 90,713 - - - - - - - - Total revenues 34,854,134 40,096,268 42,046,208 47,441,791 50,491,972 50,526,378 51,801,759 53,200,777 57,395,999 62,578,073 Change in net position (1,612,637) (277,705) 1,168,121 2,526,420 3,402,891 (2,777,291) (1,846,217) (1,473,575) 2,950,916 5,770,891 Net position-beginning 50,982,093 49,182,945 55,766,565 34,832,946 36,911,458 40,314,349 36,457,035 34,610,818 33,137,243 36,068,412 Prior period adjustment (186,511) 6,861,325 (22,101,740) (447,908) - (1,080,023) - - (19,747) - Net position-ending $ 49,182,945 $ 55,766,565 $ 34,832,946 $ 36,911,458 $ 40,314,349 $ 36,457,035 $ 34,610,818 $ 33,137,243 $ 36,068,412 $ 41,839,303 Source:County Audit Reports Note 1:Net position was restated at June 30,2015 for GASB Statement No.68,Accounting and Financial Reporting for Pensions. Note 2:Net position was restated at June 30,2018 for GASB Statement No.75,Accounting and Financial Reporting for Post-employment Benefits Other Than Pension;. 128 COLLETON COUNTY, SOUTH CAROLINA FUND BALANCES -GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (modified accrual basis of accounting) Fiscal Year 2013 2014 2015 2016 2077 2078 2079 2020 2021 2022 GENERALFUND Non-spendable $ 6,076 $ 14,004 $ 10,534 $ 11,570 $ 3,333 $ 258,279 $ 280,929 $ 375,765 $ 400,434 $ 729,277 Restricted 2,101 362,911 363,272 363,636 364,000 797,008 797,008 797,088 395,850 345,850 Committed - - - - 219,674 - - - - - Assigned - 695,942 893,097 968,193 199,057 - - - - - Unassigned 7,921,046 5,981,162 5,746,897 7,085,015 7,739,608 8,158,084 8,420,259 7,787,399 9,131,378 9,705,545 Total General Fund $ 7,929,223 $ 7,054,019 $ 7,013,800 $ 8,428,414 $ 8,525,672 $ 9,213,371 $ 9,498,196 $ 8,960,252 $ 9,927,662 $ 10,780,672 CAPITAL PROJECTS FUND Non-spendable $ - $ 2,700,933 $ 2,922,238 $ - $ - $ - $ - $ - $ - $ - Restricted - 5,214,418 4,954,705 10,170,294 4,504,276 5,478,472 435,104 214,746 362,730 362,730 Committed - 4,221,199 34,062,547 29,554,382 26,972,788 16,873,105 14,074,528 9,804,070 9,765,180 11,708,411 Total Capital Projects Fund $ - $ 12,136,550 $ 41,939,490 $ 39,724,676 $ 31,477,064 $ 22,351,577 $ 14,509,632 $ 10,018,816 $ 10,127,910 $ 12,071,141 FUNDS Non-spendable $ 7,728,952 $ 2,027,489 $ 1,497,835 $ 6,484,006 $ 7,865,085 $ 22,397 $ 15,146 $ 19,142 $ 22,532 $ 22,655 Restricted 3,136,266 1,238,084 831,384 573,094 594,006 8,415,621 1,772,320 7,318,569 10,115,541 9,383,101 Committed 567,675 38,487 - - - 416,430 213,692 9,906,021 9,938,673 11,880,550 Assigned 162,302 1,811,461 1,625,160 1,485,895 1,503,575 1,136,948 886,929 1,187,171 1,185,292 1,430,926 Total All Other Governmental Funds $ 11,595,195 $ 5,115,521 $ 3,954,379 $ 8,542,995 $ 9,962,666 $ 9,991,396 $ 2,888,087 $ 18,430,903 $ 21,262,038 $ 22,717,232 Source:County Audit Reports 129 COLLETON COUNTY, SOUTH CAROLINA CHANGES IN FUND BALANCES-GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (modified accrual basis of accounting) Fiscal Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Revenues Taxes $ 23,885,157 $ 21,090,421 $ 21,299,184 $ 27,396,764 $ 28,629,297 $ 29,130,415 $ 30,142,378 $ 3Q420,830 $ 33,041,207 $ 34,497,633 Fines and fees 7,107,783 7,212,428 10,075,366 13,602,672 13,956,983 6,465,956 6,760,008 6,586,845 7,073,699 7,533,262 Intergovernmental 4,504,302 11,297,508 5,811,340 6,030,559 6,516,583 13,534,245 13,122,440 15,383,606 16,070,709 18,909,117 Interest - - - - - - - - - - Other 173,666 300,227 302,635 627,055 1,239,266 1,121,298 1,729,253 862,474 95$647 911,163 Total revenues 35,670,908 39,900,584 37,488,525 47,657,050 50,342,129 50,251,914 51,754,079 53,253,755 57,144,262 61,851,175 Expenditures Current: General government 7,65$345 10,293,376 8,357,765 $705,075 9,233,056 $462,845 8,92Q357 10,108,898 10,395,349 11,015,296 Judicial 4,157,581 4,456,189 4,658,249 5,275,752 5,679,392 6,007,996 6,152,386 6,216,595 6,342,332 6,587,551 Publicsafety 7,46$560 7,723,408 7,66$476 7,348,907 7,713,186 $122,142 8,906,780 10,383,578 9,861,093 10,454,294 Roadsandbridges 1,833,460 3,466,507 4,257,082 5,644,622 2,096,123 1,751,263 2,016,790 2,044,893 2,454,941 2,126,397 Solid waste 2,156,449 2,240,650 2,208,389 2,127,950 2,256,218 2,585,498 3,16$898 3,648,480 4,OOQ181 5,267,360 Recreation and culture 1,055,271 1,30Q883 2,462,699 2,038,864 2,329,422 2,163,441 2,520,632 2,082,911 2,362,008 2,986,403 HeaRh and human services 1,674,861 1,794,798 1,797,883 1,780,141 1,751,754 1,875,826 2,142,595 2,656,161 3,505,444 2,950,175 Economic development 3,101,594 1,097,322 1,110,361 1,186,504 902,674 1,986,024 5,355,199 1,812,260 1,111,992 1,120,468 Intergovernmental 3,36Q676 3,661,372 3,836,524 5,590,873 9,763,973 7,560,938 10,012,911 11,088,354 8,075,258 9,237,840 Capital outlay 3,082,720 3,332,868 7,569,037 3,178,051 11,689,652 13,281,825 7,049,156 1,947,079 356,473 7,317,752 Debt service: Principal 2,246,534 2,294,875 2,528,493 2,286,585 4,860,166 4,925,632 6,990,718 5,108,333 5,198,333 8,552,164 Interest 536,892 466,532 393,567 768,914 854,370 795,505 722,984 886,356 779,712 643,987 Total expenditures 38,363,543 42,128,783 46,845,525 45,932,238 59,129,986 59,518,935 63,959,406 57,983,898 54,503,116 65,259,687 Excess(deficiency)ofrevenuesoverexpenditures (2,692,635) (2,228,199) (9,360,000) 1,724,812 (5,787,857) (9,267,021) (12,205,327) (4,730,143) 2,641,146 (6,408,512) Other financing sources(uses) Proceeds from sale of capital assets 66,667 90,713 46,575 184,544 - 143,459 194 131,655 18,332 74,677 Issuance of debt - - 33,362,354 5,395,000 2,000,000 582,353 2,500,000 - 551,093 8,327,873 Donation of capital asset - - 4,473,000 - - - - - - - Legal settlement - - 7,411 - - - - - - - Bond premium - - - 51,278 - - - - - - Payment to refund bond escrow - - - (3,710,000) - - - - - - Gain/loss on sale of asset - - - 5,295 - - - - - - Insurance proceeds 98,115 137,777 72,206 137,487 57,074 132,251 39,047 99,385 578,638 325,757 Transfers in 4,251,121 6,220,775 4,255,156 $423,212 6,53Q977 6,401,391 6,305,753 5,497,580 5,593,537 11,483,675 Transfersout (4,303,917) (6,220,775) (4,255,156) (8,423,212) (6,530,977) (6,401,391) (6,305,753) (5,497,550) (5,593,537) (11,483,675) Total other financing sources 111,989 228,490 37,961,579 2,063,604 2,057,074 858,063 2,539,241 231,040 1,17$063 $728,307 Net change in fund balances (2,580,646) (1,999,709) 28,601,579 3,788,416 (6,730,783) (8,408,958) (9,666,086) (4,499,103) 3,819,209 2,319,795 Otherchangesinfund balance 513,218 6,781,381 - - - - - - - - Fund balances,beginning - (2,067,428) 2,714,244 31,315,823 35,104,239 25,373,456 19,964,498 10,298,412 27,391,155 31,190,617 Prior period adjustment - - - - - - - - (19,747) - Fund balances,ending $ (2,067,428) $ 2,714,244 $ 31,315,823 $ 35,104,239 $ 28,373,456 $ 19,964,495 $ 10,295,412 $ 5,799,309 $ 31,190,617 $ 33,510,412 Debt service as a percentage of non-capital expenditures 7.9% 7.1% 7.4% 7.1% 12.0% 12.4% 13.6% 11.1% 11.3% 15.2% Source:County Audit Report<_ 130 COLLETON COUNTY, SOUTH CAROLINA ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTV LAST TEN FISCAL YEARS Assessed Value Market Value Total Direct Fiscal Real Personal Real Personal Tax Year Property Property Total Property Property Total Rate 2013 ' $ 124,529,285 $ 45,681,967 $ 170,211,252 $ 3,677,288,314 $ 577,742,213 $ 4,255,030,527 115.86 2014 124,290,470 46,322,848 170,613,318 3,675,411,178 542,309,703 4,217,720,881 115.86 2015 124,833,360 38,508,140 163,341,500 3,743,314,532 459,532,616 4,202,847,148 115.86 2016 125,463,400 41,403,580 166,866,980 3,792,357,210 512,687,036 4,305,044,246 125.05 2017 126,695,930 44,408,120 171,104,050 3,848,082,492 548,235,970 4,396,318,462 125.05 2018 " 130,485,880 45,527,140 176,013,020 3,997,547,588 562,409,403 4,559,956,991 125.05 2019 132,774,320 44,873,240 177,647,560 4,085,126,499 543,980,519 4,629,107,018 126.55 2020 136,463,280 44,446,986 180,910,266 4,075,367,609 494,862,138 4,570,229,747 126.55 2021 141,139,420 52,028,116 193,167,536 2,494,924,194 607,783,263 3,102,707,457 126.55 2022 154,190,550 51,346,115 205,536,665 2,803,142,591 574,641,148 3,377,783,739 126.55 ' Reassessment Year. Source:County Auditor 131 COLLETON COUNTY, SOUTH CAROLINA DIRECT AND OVERLAPPING PROPERTY TAX RATES LAST TEN FISCAL YEARS County Direct Rates Overlapping Rates Total School County County Town City Fiscal County County Direct School Debt Fire Fire of of Year Operations Debt Rate Operations Service Protection Debt Service Edisto Beach Walterboro 2013 108.45 7.41 115.86 104.31 46.50 33.56 17.67 19.53 88.00 2014 108.45 7.41 115.86 104.31 46.50 33.56 17.67 20.23 88.00 2015 108.45 7.41 115.86 104.31 46.50 33.56 17.67 20.23 88.00 2016 114.81 10.24 125.05 110.42 49.50 33.56 22.66 20.23 88.00 2017 114.81 10.24 125.05 110.42 49.50 33.56 22.66 20.71 88.00 2018 114.81 10.24 125.05 110.42 49.50 33.56 22.66 23.44 86.40 2019 116.31 10.24 126.55 113.42 54.50 33.56 22.66 23.44 86.40 2020 116.31 10.24 126.55 116.42 54.50 33.56 22.66 24.07 86.40 2021 116.31 10.24 126.55 116.42 54.50 33.56 22.66 24.07 86.40 2022 116.31 10.24 126.55 116.42 54.50 33.56 22.66 25.15 86.40 Source: County Auditor 132 COLLETON COUNTY, SOUTH CAROLINA PRINCIPAL PROPERTY TAXPAYERS CURRENT YEAR AND NINE YEARS AGO 2022 2013 Taxable Percentage of Taxable Percentage of Assessed Total Taxable Assessed Total Taxable Customer Value Rank Assessed Value Value Rank Assessed Value Dominion Energy South Carolina(SCE&G) $ 8,574,800 1 4.13% $ 11,934,910 1 6.73% Coastal Electric Coop 3,210,600 2 1.56% 2,526,060 2 1.42% CSX Transportation,Inc. 999,320 3 0.49% N/A - - Central Electric Power Coop 832,210 4 0.40% N/A - - Cellco Partnership DBA Verizon Wireless 823,220 5 0.40% N/A - - Wyndham Vacation Resorts,Inc.Etal 799,740 6 0.39% N/A - - Lawyers Title Insurance Corporation 753,630 7 0.37% N/A - - Cherokee Plantation Owners,Inc. 747,310 8 0.36% 569,376 5 0.32% Walterboro Community Hospital 740,426 9 0.36% 486,000 6 0.27% Walmart Real Estate Business Trust 735,000 10 0.36% 765,000 4 0.43% SCE&G N/A - - 1,202,710 3 0.68% Dayco Products,LLC N/A - - 434,570 7 0.24% Walterboro/SAV LLC N/A - - 387,300 8 0.22% Smithers Oasis Company N/A - - 392,900 9 0.22% Comcast Cablevision of Carolina N/A - - 346,560 10 0.20% $ 18,216,256 8.82% $ 19,045,386 10.73°/a Source:County Auditor N/A-Information is not applicable 133 COLLETON COUNTY, SOUTH CAROLINA PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS Collected within the Fiscal Year of the Levy Taxes Levied Collections Total Collections to Date Fiscal forthe Percentage in Subsequent Percentage Year Fiscal Year Amount of Levy Years Amount of Levy 2013 * $ 52,100,048 $ 44,052,013 84.55% $ 7,642,810 $ 51,694,823 99.22% 2014 48,000,778 46,192,180 96.23% 1,557,717 47,749,897 99.48% 2015 14,791,090 13,733,646 92.85% 841,436 14,575,082 98.54% 2016 16,482,359 15,385,339 93.34% 981,225 16,366,564 99.30% 2017 16,903,737 15,970,838 94.48% 786,423 16,757,261 99.13% 2018 " 20,208,055 19,219,246 95.11% 780,057 19,999,303 98.97% 2019 20,658,725 19,796,004 95.82% 588,624 20,384,628 98.67% 2020 21,028,987 20,449,213 97.24% 388,343 20,837,556 99.09% 2021 22,018,103 21,256,691 96.54% 413,896 21,670,587 96.54% 2022 23,523,755 21,843,632 92.86% - 21,843,632 92.86% " Reassessment year. Source: Delinquent Tax Collector,County Finance Office,County Auditor,County Treasurer. Note 1:2013 and 2014 figures include County, Fire and Rescue and School District. 134 COLLETON COUNTY, SOUTH CAROLINA RATIOS OF OUTSTANDING DEBT BY TYPE LAST TEN FISCAL YEARS Governmental Activities General Special Percentage Fiscal Obligation Notes Financed Revenue Total Primary of Personal Capital Year Bond Payable Purchases Bond Government Income Per Capita 2013 $ 7,280,000 $ 517,977 $ 1,526,344 $ 4,455,000 $ 13,779,321 11.57% 361.16 2014 6,110,000 352,290 932,153 4,090,000 11,484,443 9.44% 295.29 2015 35,012,627 1,059,759 2,535,947 3,710,000 42,318,333 33.86% 1,120.39 2016 38,989,949 880,032 1,854,089 - 41,724,070 33.39% 1,105.83 2017 35,440,618 880,032 2,473,965 - 38,794,615 31.18% 1,022.98 2018 31,897,356 880,032 1,603,333 - 34,380,721 26.60% 914.11 2019 27,138,079 - 2,680,000 - 29,818,079 22.62% 791.77 2020 22,879,822 - 1,756,667 - 24,636,489 18.03% 653.89 2021 19,111,299 - 833,292 - 19,944,591 14.22% 516.65 2022 14,682,077 - 4,962,221 - 19,644,298 13.90% 510.75 Source: County Audit Report,US Census Bureau Note 1: Details of the County's outstanding debt can be found in the notes to the financial statements. Note 2: The ratios are calculated using personal income and population for the prior calendar year. 135 COLLETON COUNTY, SOUTH CAROLINA RATIOS OF GENERAL BONDED DEBT OUTSTANDING LAST TEN FISCAL YEARS Less Amounts Percentage of General Available in Estimated Taxable Fiscal Obligation Debt Service Value of Per Year Bonds Funds Total Property Capita 2013 $ 7,280,000 $ 1,031,180 $ 6,248,820 3.7% 164 2014 6,110,000 919,745 5,190,255 3.0% 133 2015 35,012,627 411,973 34,600,654 21.2% 916 2016 38,989,949 5,496,753 33,493,196 20.1% 888 2017 35,440,618 6,325,794 29,114,824 17.0% 768 2018 31,897,356 7,010,933 24,886,423 14.1% 662 2019 27,138,079 5,519,838 21,618,241 12.2% 574 2020 22,879,822 6,059,526 16,820,296 9.3% 446 2021 19,111,299 7,639,063 11,472,236 5.9% 297 2022 14,682,077 7,035,133 7,646,944 3.7% 199 136 COLLETON COUNTY, SOUTH CAROLINA DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT JUNE 30, 2022 Estimated Estimated Share of Governmental Debt Percentage Overlapping Unit Outstanding Applicable Debt Debt repaid with property taxes Colleton County School District $ 71,317,151 100.00% $ 71,317,151 Fire and Rescue Commission 12,293,059 100.00% 12,293,059 City of Walterboro 4,071,878 100.00% 4,071,878 Town of Edisto Beach 1,720,000 100.00% 1,720,000 Subtotal overlapping debt 89,402,088 89,402,088 County direct debt 19,644,298 100.00% 19,644,298 Total direct and overlapping debt $ 109,046,386 $ 109,046,386 Source: Assessed value data used to estimate applicable percentage provided by Colleton County Auditor. Note: Debt outstanding data provided by each governmental unit. 137 COLLETON COUNTY, SOUTH CAROLINA LEGAL DEBT MARGIN INFORMATION LAST TEN FISCAL YEARS Fiscal Year 2013 2014 2015 2076 2077 2078 2019 2020 2021 2022 Debt limit $ 10,536,276 $ 13,649,065 $ 13,067,320 $ 13,349,358 $ 13,688,324 $ 14,081,042 $ 14,211,805 $ 14,472,821 $ 15,453,403 $ 16,442,933 Total net debt applicable to limit 7,280,000 6,110,000 4,740,000 ' 8,758,832 8,301,301 8,416,034 7,370,970 6,898,164 6,991,353 6,510,127 Legal debt margin $ 3,256,276 $ 7,539,065 $ 8,327,320 $ 4,590,526 $ 5,387,023 $ 5,665,008 $ 6,840,835 $ 7,574,657 $ 8,462,050 $ 9,932,806 Total net debt applicable to the limit as a percentage of debt limit 69.09% 44.76% 36.27% 65.61% 60.65% 59.77% 51.87% 47.66% 45.24% 39.59% Legal Debt Margin Calculation for Fiscal Year 2022 Total assessed value $ 205,536,665 Debt limit(8%of assessed value) 16,442,933 Debt applicable to limit 6,510,127 Legal debt margin $ 9,932,806 Note:Under State finance law,the County's outstanding general obligation debt should not exceed 8%of the total assessed property value. � Excludes$29,000,000 Bond Series 2015 because voter approval was obtained for the issuance of the bonds. Source:County Audit Reports,County Auditor. 138 COLLETON COUNTY, SOUTH CAROLINA PLEDGED REVENUE COVERAGE LAST TEN FISCAL YEARS Debt Fiscal Service Year Collections Principal Interest Coverage 2013 $ 1,361,755 $ 578,701 $ 218,444 1.71 2014 1,266,976 365,000 186,708 2.30 2015 1,253,752 1,370,000 172,260 0.81 2016 5,487,307 1,425,000 573,371 2.75 2017 6,003,018 3,480,000 801,890 1.40 2018 6,159,788 4,055,000 740,378 1.28 2019 6,441,766 4,687,353 757,213 1.18 2020 6,559,092 4,185,000 670,685 1.35 2021 7,465,237 4,275,000 584,694 1.54 2022 8,160,237 7,181,093 430,106 1.07 Source: County Auditor 139 COLLETON COUNTY, SOUTH CAROLINA DEMOGRAPHIC STATISTICS LAST TEN FISCAL YEARS Personal Income Per Capita Unemployment Fiscal (thousands Personal Median School Rate Year Population of dollars) Income Age Enrollment Percentage 2013 38,153 $ 1,190,505 $ 31,505 N/A 5,830 10.8% 2014 38,892 1,216,892 31,289 40.7 5,763 7.7% 2015 37,771 1,249,641 33,120 40.0 5,713 7.5% 2016 37,731 1,249,641 33,120 41.5 6,545 6.1% 2017 37,923 1,244,027 32,804 43.0 6,889 4.8% 2018 37,611 1,292,389 34,362 42.5 6,799 4.2% 2019 37,660 1,317,949 34,996 42.7 6,458 4.0% 2020 37,677 1,366,771 36,276 42.2 6,802 8.2% 2021 38,604 1,402,252 36,324 42.5 6,616 4.7% 2022 38,462 1,413,402 36,748 42.3 6,222 3.6% Source;(1)U.S.Census Bureau (2)S.C. Department of Employment and Workforce N/A-Information is not available 140 COLLETON COUNTY, SOUTH CAROLINA PRINCIPAL EMPLOYERS CURRENT YEAR AND NINE YEARS AGO 2022 2013 Percentage Percentage FTE of Total County FTE of Total County Employer Employees Rank Employment Employees Rank Employment Colleton County School District 750 1 4.4% 1,000 1 6.6% Colleton County Government 474 2 2.8% 503 2 3.3% Colleton Medical Center 420 3 2.4% 475 3 3.1% Walmart 300 4 1.7% 350 4 2.3% City of Walterboro 100 5 0.6% N/A - - Carolina Composites 100 6 0.6% N/A - - Rockford Manufacturing 100 7 0.6% N/A - - Carolina Visuals, LLC 75 8 0.4% N/A - - Crescent Dairy and Beverages, LLC 60 9 0.3% N/A - - Floralife 60 10 0.3% 110 7 0.7% Palmetto Rural Telephone Cooperative 60 - 0.3% N/A - - Dayco Products, LLC N/A - N/A 150 5 1.0% Heritage Healthcare-Walterboro N/A - N/A 137 6 0.9% Colleton County Disabilities N/A - N/A 100 8 0.7% Sunward Consolidated Group N/A - N/A 100 9 0.7% Walterboro Veneer Co, Inc. N/A - N/A 95 10 0.6% Total of Top Ten Employees 2,499 14.4% 3,020 19.9% Data Source: (1)Colleton County Economic Development (2)U.S.Census Bureau N/A-Information is not available. 141 COLLETON COUNTY, SOUTH CAROLINA FULL-TIME EQUIVALENT COUNTY GOVERNMENT EMPLOYEES BY FUNCTION LAST TEN FISCAL YEARS Fiscal Year Function 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 General government 93.0 77.0 76.5 84.0 79.0 78.0 81.0 85.3 87.0 83.0 Judicial 18.5 58.0 55.0 78.0 80.5 74.0 71.0 79.7 76.0 81.0 Public safety 132.0 116.0 103.0 135.0 144.5 115.0 123.0 137.6 144.0 138.0 Roads and bridges 27.5 17.0 15.0 25.0 24.0 23.0 23.0 23.0 22.0 21.0 Solid waste 15.5 12.0 23.5 44.0 31.2 14.5 10.0 12.2 14.0 14.0 Recreation and culture 9.0 13.0 15.0 28.0 23.0 19.0 20.0 20.2 21.0 16.0 Health and human services 1.5 2.0 6.0 17.0 6.5 5.0 5.0 2.0 9.0 6.0 Economic development 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 Alcohol and drug 10.5 9.0 8.5 11.0 8.0 9.0 10.0 14.0 14.0 15.0 Library 5.0 10.0 12.5 16.0 12.8 10.0 10.0 13.0 12.0 12.0 Fire and rescue 77.5 76.0 77.5 82.0 78.0 83.0 85.0 85.0 92.0 103.0 Total 392.00 392.00 394.50 522.00 489.50 432.50 440.00 473.85 493.00 491.0 Source: County Human Resource Department. 142 COLLETON COUNTY, SOUTH CAROLINA OPERATING INDICATORS BY FUNCTION LAST TEN FISCAL YEARS Fiscal Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 General Government N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Judicial N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Public Safety N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A EMS Transports 6,137 6,542 6,749 7,358 7,416 7,523 7,688 7,887 9,269 9,839 Roads and Bridges N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Solid Waste N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Recreation and Culture N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Health and Human Services N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Economic Development N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A-Information is not available.Schedule is currently a work in progress and will be updated in subsequent years as information becomes available. 143 COLLETON COUNTY, SOUTH CAROLINA CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM LAST TEN FISCAL YEARS Fiscal Year Function/Program 2013 2014 2015 2016 2077 2018 2079 2020 2021 2022 Recreation and Culture Community Centers 13 13 13 13 13 14 14 15 15 15 Recreation Complex 1 1 1 1 1 1 1 1 1 1 Golf Course - - 1 1 1 1 1 1 1 1 Emergency Services Number of Fire Stations 33 34 34 34 34 34 34 34 34 34 Number of Fire Trucks 119 106 106 115 103 119 119 119 118 118 Number of Ambulances 12 12 12 16 11 14 14 14 14 14 Streets and Highways Miles of Roads 347.8 362.7 362.7 362.7 362.7 352.7 352.7 352.7 353 353 Collection Sites 13 13 13 13 15 15 15 15 15 15 Sheriff Patrol Units 86 86 86 92 96 88 88 88 90 90 Health,Education and Welfare County Libraries 1 1 1 1 2 3 3 3 3 3 Book Mobiles 1 1 1 1 1 1 1 1 1 1 Sources:County Engineering,Fleet,and Facilities Departments. N/A-Information is not available. 144