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COMPREHENSIVE ANNUAL FINANCIAL REPORT

CITY OF COLUMBIA, SOUTH CAROLINA

FISCAL YEAR ENDED JUNE 30, 2015

City Manager Teresa B. Wilson

Chief Financial Officer

Jeffery M. Palen

Finance Director Jan Alonso CGFO

Prepared by the

Finance Department

TABLE OF CONTENTS

CITY OF COLUMBIA, SOUTH CAROLINA COMPREHENSIVE ANNUAL FINANCIAL REPORT

YEAR ENDED JUNE 30, 2015

TABLE OF CONTENTS

INTRODUCTORY SECTION Letter of Transmittal 1-6

Certificate of Achievement for Excellence in Financial Reporting 7 City Leaders 8 City Organizational Chart 9 Finance Department Organizational Chart 10 FINANCIAL SECTION Independent Auditors’ Report 11-12 Management’s Discussion and Analysis – Unaudited 13-27

Basic Financial Statements Government-wide Financial Statements Statement of Net Position 28-29 Statement of Activities 30 Fund Financial Statements Balance Sheet – Governmental Funds 31 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position 32 Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds 33 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 34 Statement of Fund Net Position – Proprietary Funds 35-36 Statement of Revenues, Expenses, and Changes in Net Position - Proprietary Funds 37 Statement of Cash Flows – Proprietary Funds 38-39 Statement of Fiduciary Net Position – Fiduciary Funds 40 Statement of Changes in Fiduciary Net Position – Fiduciary Funds 41 Discretely Presented Component Units Combining Statement of Net Position – Business-Type Activity Discretely Presented Component Units 42-43 Combining Statement of Activities – Business-Type Activity Discretely Presented Component Units 44 Notes to Financial Statements 45-94 Required Supplementary Information Schedules of Funding Progress and Employer Contributions – Other Postemployment Benefits (Unaudited) 95 Budgetary Comparison Schedule – General Fund (Unaudited) 96 Notes to Budgetary Comparison Schedule (Unaudited) 97 Schedules of the City’s Contributions (Unaudited) 98 Schedules of the City’s Proportionate Share of the Net Pension Liability (Unaudited) 99

TABLE OF CONTENTS (Continued)

FINANCIAL SECTION (Continued)

Supplementary Information

Combining and Individual Fund Statements and Schedules Schedule of Revenues and Other Financing Sources – Budget and Actual – General Fund 100-102 Schedule of Expenditures and Other Financing Uses – Budget and Actual – General Fund 103-109 Combining Balance Sheet – Nonmajor Governmental Funds 110-111 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Nonmajor Governmental Funds 112-113 Combining Statement of Net Position – Nonmajor Proprietary Funds 114 Combining Statement of Revenues, Expenses, and Changes in Net Position – Nonmajor Proprietary Funds 115 Combining Statement of Cash Flows – Nonmajor Proprietary Funds 116-117 Combining Statement of Net Position – Internal Service Funds 118 Combining Statement of Revenues, Expenses, and Changes in Net Position – Internal Service Funds 119 Combining Statement of Cash Flows – Internal Service Funds 120 Combining Statement of Fiduciary Net Position – Fiduciary Funds – Private Purpose Trust Funds 121 Combining Statement of Changes in Fiduciary Net Position – Fiduciary Funds – Private Purpose Trust Funds 122

Statement of Changes in Assets and Liabilities – Agency Fund 123 Other Schedule Schedule of Fines, Assessments and Surcharges 124 STATISTICAL SECTION (UNAUDITED) Schedule 1 – Net Position by Component 125 Schedule 2 – Changes in Net Position 126-127 Schedule 3 – Fund Balances – Governmental Funds 128 Schedule 4 – Changes in Fund Balances – Governmental Funds 129 Schedule 5 – Assessed Value and Estimated Actual Value of Taxable Property 130 Schedule 6 – Direct and Overlapping Property Tax Rates 131 Schedule 7 – Principal Property Taxpayers 132 Schedule 8 – Property Tax Levies and Collections 133 Schedule 9 – Ratios of Outstanding Debt by Type 134-135 Schedule 10 -- Ratios of General Bonded Debt Outstanding 136 Schedule 11 – Direct and Overlapping Governmental Activities Debt 137 Schedule 12 – Legal Debt Margin 138 Schedule 13 – Certificates of Participation Debt Coverage 139 Schedule 14 – Water and Sewer Department – Schedule of Revenue Bond Coverage 140 Schedule 15 – Parking Department – Schedule of Revenue Bond Coverage 141 Schedule 16 – Demographic and Economic Statistics 142 Schedule 17 – Principal Employers 143 Schedule 18 – Full-Time Equivalent Employees by Function/Program 144 Schedule 19 – Operating Indicators by Function/Program 145 Schedule 20 – Capital Asset Statistics by Function 146

INTRODUCTORY SECTION

CITY OF COLUMBIA, SOUTH CAROLINA CITY LEADERS

As of June 30, 2015

Mayor

Stephen K. Benjamin

Council Members

District 1 Sam Davis District 2 Brian DeQuincey Newman District 3 Moe Baddourah District 4 Leona Plaugh At Large Tameika Isaac-Devine At Large Cameron Runyan

City Manager

Teresa Wilson

Assistant City Managers

Senior Assistant City Manager for Public Safety S. Allison Baker Assistant City Manager for Operations Melissa Gentry-Smith, P.E Assistant City Manager Finance & Economic Svc/CFO Jeff Palen

Department Directors

Budget and Program Management Office Melissa Caughman City Attorney Teresa Knox Community Development Deborah Livingston Court Administrator Judge Dana Turner Planning and Development Services Krista Hampton Economic Development Ryan Coleman Emergency Communications Kimberly Gathers Finance Jan Alonso, CGFO Fire Aubrey Jenkins General Services David Knoche Human Resources Pamela Benjamin, CPM Information Technology Sylvia White (interim) Office of Business Opportunities Tina Herbert Parks and Recreation Jeff Caton Parking John David Spade Police William “Skip” Holbrook Public Relations Leshia Utsey Public Works Robert Anderson Utilities & Engineering Joseph Jaco, P.E.

Development Corporation Directors

Columbia Development Corp. Fred Delk Columbia Housing/TN Development Corp. Gloria Saeed Eau Claire Development Corp. Michael Strange

Other Directors

Columbia Empowerment Zone, Inc. Felicia Maloney Midlands Authority for Conventions, Sports, and Tourism Bill Ellen

City of Columbia FY 2014/2015 Organizational Chart

Citizens

Columbia City Council

City Attorney Teresa Knox

City Manager

Teresa B. Wilson

Municipal Court Judge Dana Turner

Sr. Assistant City Manager S. Allison Baker

City Management Office *City Clerk‐ Erika Moore *City Council Staff Liaison‐ Libby Gober

*Mayor’s Office Staff *Governmental Affairs/Special Projects‐ Ray Gray *Grant Management‐ Chris Segars

Assistant City Manager Operations

Melissa Gentry‐Smith, P.E.

Assistant City Manager

Finance & Economic Services

Jeff Palen

Human Resources Pamela Benjamin

Columbia Police Department Police Chief**

William “Skip” Holbrook

Columbia‐Richland 911 Communications Kimberly Gathers

Community Development Deborah Livingston

Budget & Program Management Office

Melissa Caughman

Fire Chief Aubrey Jenkins

Parks & Recreation Jeff Caton

Public Relations, Marketing &

Media Leshia Utsey

General Services David Knoche

Office of Business Opportunities

Tina Herbert

Parking Services John Spade

Planning & Development Services

Krista Hampton

Development Corporations

Columbia Dev. Corporation

Fred Delk CEZ, Inc. Felicia Maloney

CHDC & TNDC

Gloria Saeed Eau Claire Dev. Corp

Michael Strange

Economic Development Ryan Coleman, Interim

Public Works Robert Anderson

Finance * Jan Alonso

*Division of Customer Care will be moved to the Finance Department **Division of Code Enforcement will be moved to Columbia Police Department

Utilities & Engineering Joey Jaco

Information Technology Vacant‐ CIO

CITY OF COLUMBIA, SOUTH CAROLINA Finance Department Organizational Chart

As of June 30, 2015

Finance Director Jan Alonso, CGFO

Senior Office Assistant Latisha Grice

Deputy Finance Director Dennie Ulmer, CPA

Accounting Manager Rashad Rogers, CGFO

Payroll Marilyn Dorley– Supervisor Kimelisa Kinloch-Gaines Crystal Minelli

Accounts Receivable Melissa Hughey

Grants and Special Projects Charles Myers

Banking and Investments Ginger Page, CGFO

Glenn Sharpe

Special Revenue Accountant Vacant

Accounts Payable Michelle Haynes

Lashaun McFarland Anne Thomas

Linda Fikas

Fixed Assets Edith Fisher

General Fund Accountant Amanda Nelson-Bedenbaugh, CGFO

Water & Sewer Accountant

Tammy Smith, CGFO

Parking & Hospitality Accountant Jessica Cartzendafner, CGFO

FINANCIAL SECTION

Columbia • Charleston • Florence • Georgetown • Hilton Head • Myrtle Beach • Pawley’s Island • Summerville • Sumter

Members

SC Association of Certified Public Accountants 1301 Gervais Street, Suite 1950 (29201) NC Association of Certified Public Accountants Columbia, South Carolina Member 803‐312‐0001, Fax 803‐255‐8886 Division for CPA Firms, AICPA www.websterrogers.com

McGladrey Alliance is a premier affiliation of independent accounting and consulting firms. McGladrey Alliance member firms maintain their name, autonomy and independence and are responsible for their own client fee arrangements, delivery of services and maintenance of client relationships.

Independent Auditors’ Report

The Honorable Stephen K. Benjamin, Mayor and Members of City Council City of Columbia, South Carolina Columbia, South Carolina Report on the Financial Statements

We have audited the accompanying financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information for the City of Columbia (the City), as of and for the year ended June 30, 2015, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility

Our responsibility is to express opinions on these financial statements based on our audit. We did not audit the financial statements of Midlands Authority for Conventions, Sports, and Tourism, a discretely presented component unit of the City of Columbia, which represent 45.48%, 54.25%, and 75.17%, respectively, of the assets, net position, and revenues of the aggregate discretely presented component units. Those statements were audited by other auditors, whose report has been furnished to us, and our opinion, insofar as it relates to the amounts included for Midlands Authority for Convention, Sports and Tourism is based solely on the report of the other auditors. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to the financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit involves performing procedures to obtain evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of significant accounting estimates made by management as well as evaluating the overall financial statement presentation. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions

In our opinion, based on our audit and the report of other auditors, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Columbia as of June 30, 2015, and the respective changes in financial position, and where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Change in Accounting Principle

As discussed in Note VII. C. to the financial statements, the City adopted the provisions of Governmental Accounting Standards Board Statement No. 68, Accounting and Financial Reporting for Pensions, effective July 1, 2014. Our audit opinions are not modified with respect to this matter.

Other Matters

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that Management’s Discussion and Analysis; Budgetary Comparison Schedule – General Fund; Schedules of Funding Progress and Employer Contributions – Other Postemployment Benefits; Schedule of the City’s Contributions; and Schedule of the City’s Proportionate Share of the Net Pension Liability, as listed in the table of contents, be presented to supplement the basic financial statements. Such information, although not part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplementary and Other Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The introductory section, combining and individual nonmajor fund statements and schedules, supplementary information to the financial statements, and the statistical section, as listed in the accompanying table of contents, are presented for purposes of additional analysis and are not a required part of the financial statements. The Schedule of Fines, Assessments and Surcharges listed in the Table of Contents under Supplementary Information is presented for purposes of additional analysis as required by the State of South Carolina and is not a required part of the financial statements. The combining and individual nonmajor fund financial statements and schedules and supplementary information are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. Such information has been subjected to the auditing procedures applied in the audit of the 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 by us and other auditors. In our opinion, based on our audit, the procedures performed as described above, and the report of the other auditors, the combining and individual nonmajor fund financial statements and schedules and supplementary information are fairly stated, in all material respects, in relation to the basic financial statements as a whole. The introductory section and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on them. Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated December 29, 2015, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

Columbia, South Carolina December 29, 2015

CITY OF COLUMBIA, SOUTH CAROLINA Management’s Discussion and Analysis (Unaudited)

June 30, 2015

As management of the City of Columbia (the “City”), we offer readers of the City’s financial statements this narrative overview and analysis of the financial activities of the City for the year ended June 30, 2015, as part of the overall Comprehensive Annual Financial Report (CAFR). This overview compares the year ended June 30, 2015, with the year ended June 30, 2014. The Management’s Discussion and Analysis is intended to highlight significant transactions, events, and conditions, and readers are encouraged to consider the information presented here, in conjunction with the letter of transmittal, which can be found on the pages indicated in the table of contents of this report. This discussion and analysis is intended to provide a broad overview using a short-term and long-term analysis of the City’s activities based on information presented in the financial report and fiscal policies that have been adopted by City Council (the “Council”). The intent of this discussion and analysis is to (a) assist the reader in focusing on significant financial issues, (b) provide an overview of the City’s financial activities, (c) identify changes in the City’s financial position, (d) identify significant deviations from the approved general fund budget, and (e) highlight significant issues in the individual funds. Overview of the Financial Statements

This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements which are comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Financial Highlights

 The assets and deferred outflows of the City exceeded its liabilities and deferred inflows at the close of 2015 by $709,483,129. This amount represents the City’s net position. Of this amount, $115,632,534 in unrestricted net position may be used to meet the City’s ongoing obligations.

 The City’s total net position increased by $16,364,117 ($10,980,199 from governmental activities and $5,383,918 from business-type activities) as total revenues of $309,850,157 exceeded total expenses of $294,987,316. This increase in net position for the current year is approximately $7,534,900 less than the prior year and is due primarily to the increased costs incurred by the Water and Sewer Facilities Fund related to compliance with the consent decree and additional depreciation expense on completed construction projects.

 As of June 30, 2015, the City’s governmental funds reported combined ending fund balances of $100,785,186. The unrestricted General Fund balance (i.e., committed, assigned, and unassigned) of $30,816,689 is available for spending at the City’s discretion and represents approximately 23.25% of the General Fund’s actual expenditures and transfers out for the year ended June 30, 2015.

 The City’s total capital assets were $1,038,180,774 as of June 30, 2015, increasing $46,503,555 (4.69%). This increase was the result of additions of $22,672,088 in governmental activities and $73,146,603 in business type activities offset by depreciation expense and net disposals of $13,207,146 in governmental activities and $36,107,990 in business-type activities.

 The City’s long-term debt at June 30, 2015, totaled $607,312,228, a net increase of $15,902,500 or 2.69% from the balance at June 30, 2014, of $591,409,728. This net increase was the result of $31,141,791 in principal payments, $2,088,548 in premium amortization, the issuance of a $29,922,839 hospitality revenue bond (including premium) in the miscellaneous projects capital fund, the issuance of a $7,000,000 capital lease obligation in the general fund, and the issuance of a $12,210,000 revenue bond in the parking facilities fund.

 As of June 30, 2015, the City’s General Obligation bonds were rated AA+ by Standard and Poor’s and AA1 by Moody’s. The City’s Water and Sewer Facilities revenue bonds were rated AA by Standard and Poor’s and AA1 by Moody’s. The City’s Parking Facilities revenue bonds were rated BBB+ by Standard and Poor’s and A2 by Moody’s.

CITY OF COLUMBIA, SOUTH CAROLINA Management’s Discussion and Analysis (Unaudited)

June 30, 2015

Using This Annual Report

This discussion and analysis is intended to serve as an introduction to the City of Columbia’s financial statements. This annual report consists of a series of financial statements. The Statement of Net Position and the Statement of Activities (on the pages identified in the table of contents) provide information about the activities of the City as a whole and present a longer-term view of the City’s finances. Fund financial statements start on page 31. For governmental activities, these statements tell how these services were financed in the short term as well as what remains for future spending. Fund financial statements also report the City’s operations in more detail than the government-wide statements by providing information about the City’s most significant funds. The remaining statements provide financial information about activities for which the City acts solely as a trustee or agent for the benefit of those outside the government. In addition to the financial statements, this report contains other supplementary information that will enhance the reader’s understanding of the financial condition of the City of Columbia. Government-wide financial statements – The government-wide financial statements are designed to provide readers with a broad overview of the City’s finances in a manner similar to a private-sector business. The government-wide financial statements provide both short-term and long-term information regarding the overall financial position of the City. The Statement of Net Position presents information on all of the City’s assets, liabilities, deferred outflows, and deferred inflows with the difference between all of the items reported as Net Position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The Statement of Activities presents information showing how the City’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs regardless of the related timing of the cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g. uncollected taxes and earned but unused annual leave). Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are designed to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include general government, judicial, finance, community development and planning, public safety, parks and recreation, public services, general services, and community promotions. Governmental activities are financed primarily through property taxes, business licenses and permits, intergovernmental revenues, and federal and state grants. The business-type activities of the City include Water and Sewer, Parking, Stormwater, Hydro-Electric, Redevelopment Programs, Parks and Recreation Camps, and Economic Development. These activities are financed in whole or in part primarily through fees charged to external parties for goods and services. The government-wide statements include not only the City itself (known as the primary government), but also the legally separate Public Facilities Corporation; Columbia Parking Facilities Corporation; Columbia Development Corporation; Columbia Housing Development Corporation; Eau Claire Development Corporation; Midlands Authority for Conventions, Sports and Tourism; TN Development Corporation; and the Columbia Empowerment Zone, Inc., for which the City is financially accountable. Financial information for these component units is reported separately from the financial information presented for the primary government itself, except for the Public Facilities Corporation and the Columbia Parking Facilities Corporation, whose statements are blended with the primary government. The government-wide financial statements can be found following this section of the report.

CITY OF COLUMBIA, SOUTH CAROLINA Management’s Discussion and Analysis (Unaudited)

June 30, 2015

Fund financial statements – A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the City’s funds can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Our analysis of the City’s major funds begins on page 24. The fund financial statements beginning on page 31 provide detailed information about the most significant funds – not the City as a whole. Some funds are required to be established by State law and by bond covenants. However, the City Council established many other funds to help it control and manage for particular purposes or to show it is meeting legal responsibilities for using certain taxes, grants, and other money. The City’s three kinds of funds – governmental, proprietary, and fiduciary – use different accounting approaches. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating the City’s near-term financing requirements. Most of the City’s basic services are reported in governmental funds which focus on how money flows into and out of these funds and the balances that are left at year-end that are nonspendable, restricted, committed, assigned, or unassigned. These classifications of fund balance show the nature and extent of constraints placed on the City’s fund balances by law, creditors, and City Council. Unassigned fund balance is available for spending for any purpose. These funds are reported using an accounting method called modified accrual accounting which measures cash and all other financial assets that can be readily converted to cash. The governmental funds present a detailed short-term view of the City’s general government operations and the basic services it provides. Governmental fund information helps you determine whether there are more or fewer financial resources that can be spent in the near future to finance the City’s programs. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for the governmental funds with similar information presented for governmental activities in the government-wide statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. We describe the relationship (or differences) between governmental activities (reported in the statement of net position and the statement of activities) and governmental funds in reconciliations following the governmental funds balance sheet and the governmental funds statement of revenues, expenditures and changes in fund balances. The City utilizes five generic governmental fund types (see Section I Note B in the notes to the financial statements). The City maintains 17 individual governmental funds within these generic fund types. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balance for the general fund and county services fund which are considered to be major funds. Data from the 15 other governmental funds are combined into a single aggregated presentation. Individual fund data for each of these 15 nonmajor governmental funds is provided in the form of combining statements elsewhere in this report. The City adopts an annual appropriated budget for its general fund. A budgetary comparison schedule has been provided as Required Supplementary Information for the general fund to demonstrate compliance with this budget. The governmental funds financial statements immediately follow the government-wide financial statements. The City has a formal fund balance policy applicable to governmental funds. The policy defines fund balance categories consistent with Governmental Accounting Standards Board Statement 54, sets spending priority within the categories, and established the authority to commit or assign balances. For a full discussion of the City’s fund balance policy, please refer to the Notes to the Financial Statements, Section I. F. Fund Balances. Proprietary Funds – The City maintains two different types of proprietary funds. Enterprise funds are used to report the same functions as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for the business-type activities of the Water and Sewer system, Parking system, Stormwater system, Hydro-electric plant, Redevelopment Programs, Parks and Recreation camps, and Economic Development activities.

CITY OF COLUMBIA, SOUTH CAROLINA Management’s Discussion and Analysis (Unaudited)

June 30, 2015

An internal service fund is an accounting device used to accumulate and allocate costs internally among the City’s various functions. The City uses internal service funds to account for the maintenance and operation of its fleet of vehicles, its risk management function, and its support services. Because these services benefit both governmental activities and business-type functions, the net position and change in net position have been allocated between governmental activities and business-type activities in the government-wide financial statements. Proprietary funds provide the same type of information as the business type activities in the government-wide financial statements. The City maintains seven enterprise type funds. The proprietary fund financial statements provide separate information for the water and sewer system and the parking system which are considered to be major funds of the City. Data from the other five funds are combined into a single aggregated presentation. Individual fund data for each of these nonmajor business-type funds is provided in the form of combining statements elsewhere in this report. Conversely, all three internal service funds are combined into a single aggregated position in the proprietary fund financial statements. Individual fund data for the internal service funds is provided in the form of combining statements elsewhere in this report. Because the internal funds predominately benefit governmental rather than business-type activities, the internal service funds have been included within the governmental activities in the government-wide statements. The proprietary fund financial statements follow the governmental fund financial statements. Fiduciary Funds - Fiduciary funds are used to account for resources held for the benefit of parties outside of the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the City’s own programs. Trust funds are used to account for resources received and held by the City as trustee. The accounting for fiduciary fund is much like that used for proprietary funds. The fiduciary fund financial statements follow the proprietary funds statements. Notes to the Financial Statements – The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes can be found following the basic financial statements.

Other Information - In addition to the basic financial statements, this report also contains certain required supplementary information concerning the City’s progress in funding its obligation to provide pension benefits to its employees and a general fund budgetary comparison schedule to demonstrate compliance with the budget. Required supplementary information can be found following the notes in this report. The combining and individual fund statements, referred to earlier in connection with the nonmajor governmental and proprietary funds, are presented immediately following the required supplementary information. Financial Analysis – Government-wide Statements

As noted earlier, Net Position may serve over time as a useful indicator of a government’s financial position. In the case of the City, assets and deferred outflows exceed liabilities and deferred inflows by $709,483,129 as of June 30, 2015. The City’s overall financial position improved, and net position increased by $16,364,117 during the year ended June 30, 2015. This increase of $16,364,117 is a decrease from the prior year. This decrease is primarily the result, in the business activities, of increased expenses in the Water and Sewer Facilities Fund relating to the consent decree with the Environmental Protection Agency and additional depreciation expense on completed water and sewer projects related to the consent decree. The consent decree requires the City to make significant repairs and upgrades to the sewer system to prevent sanitary sewer overflows. Water and sewer fund revenues, as well as stormwater fund revenues, showed a modest increase during the current fiscal year. Water and sewer revenues increased primarily due to increased consumption from new customers added during the fiscal year. Stormwater revenues increased due to a one-time receipt of funds from the South Carolina Department of Transportation. Parking revenues increased primarily due to the completion of a new apartment complex in the downtown area. This complex rented parking space in the City’s Sumter Street parking garage. The decrease in hydro-electric plant fees resulted from less electricity being generated due to low water levels in the canal and a reduction in the amount of incentive payments from the operator of the facility. In the governmental activities, the increase in collections from business licenses resulted primarily from a two percent fee increase and the continuing economic recovery. Improved economic conditions also resulted in an increase in the collection of sales taxes and hospitality taxes. Less revenue was reported in the County Services Fund due to the City refunding approximately $2,146,800 in fees back to Richland County during the current year in an attempt to operate the fund on a break even basis. This reduction was offset in part by increased funding from the State of South Carolina to assist in the repaving of highways. Property tax revenue decreased slightly due to a reduction in assessed property values. Table 1 summarizes the major categories of assets, deferred outflows, liabilities, deferred inflows, and net position for governmental activities, business type activities, and the City has a whole.

CITY OF COLUMBIA, SOUTH CAROLINA Management’s Discussion and Analysis (Unaudited)

June 30, 2015

Table 1 City of Columbia

Statement of Net Position As of June 30, 2015 and June 30, 2014

As of June 30, As of June 30, As of June 30, As of June 30, As of June 30, As of June 30, 2015 2014 2015 2014 2015 2014

Current and other assets 211,241,380$ 169,701,591$ 345,605,104$ 385,437,503$ 556,846,484$ 555,139,094$ Capital assets, net of

depreciation 221,655,500 212,190,558 816,525,274 779,486,661 1,038,180,774 991,677,219

Total assets 432,896,880 381,892,149 1,162,130,378 1,164,924,164 1,595,027,258 1,546,816,313

Def erred outf low s of resources 14,470,968 3,950,107 37,866,038 27,741,893 52,337,006 31,692,000

Total assets and def erred outf low s of resources 447,367,848 385,842,256 1,199,996,416 1,192,666,057 1,647,364,264 1,578,508,313

Long-term liabilities outstanding 293,065,198 143,467,480 564,275,506 528,829,611 857,340,704 672,297,091

Other liabilities 33,078,115 25,822,238 28,765,714 25,910,878 61,843,829 51,733,116

Total liabilities 326,143,313 169,289,718 593,041,220 554,740,489 919,184,533 724,030,207

Def erred inf low of resources 14,809,030 2,521,972 3,887,572 - 18,696,602 2,521,972

Net position Net investment in

capital assets 162,102,481 156,454,488 368,742,602 375,763,776 530,845,083 532,218,264 Restricted 53,653,231 30,669,437 9,352,281 9,330,640 63,005,512 40,000,077 Unrestricted (109,340,207) 26,906,641 224,972,741 252,831,152 115,632,534 279,737,793

Total net position 106,415,505$ 214,030,566$ 603,067,624$ 637,925,568$ 709,483,129$ 851,956,134$

Activities Governmental

Activities Business-type

Primary Government Total

As of June 30, 2015, the City is able to report positive balances for the government as a whole as well as for its governmental activities and business-type activities, respectively. The largest portion of the City’s net position, $530,845,083 (74.82%), reflects its investment in capital assets (e.g., land, buildings, machinery, infrastructure, and equipment), less any related debt used to acquire those assets that are still outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources since the capital assets themselves cannot be used to liquidate these liabilities. An additional portion of the City’s net position, $63,005,512 (8.88%), represents resources that are subject to external restrictions on how they may be used. The remaining balance of $115,632,534 (16.30%) in unrestricted net position may be used to meet the ongoing obligations of the City. For governmental activities, the City reported a deficit balance in unrestricted net position of $(109,340,207). This deficit resulted from the adoption of GASBS 68 during the current year. GASBS 68 required the City to record its proportionate share of the net pension liability of the cost-sharing retirement plans it participates in. For business- type activities, the City reported a positive balance in unrestricted net position of $224,972,741. This is also a decrease as the result of the adoption of GASBS 68.

CITY OF COLUMBIA, SOUTH CAROLINA Management’s Discussion and Analysis (Unaudited)

June 30, 2015

The City reported a positive balance of $30,816,689 in unrestricted fund balance (committed plus assigned plus unassigned fund balance) for the general fund as of June 30, 2015. Unrestricted fund balance represents the spendable resources available for governmental activities without externally enforceable limitation. The major contributing factors to the difference between unrestricted fund balance and unrestricted net position are changes in accrued receivables or payables, operating losses in the internal service fund operations, charges related to post-employment benefits, capital assets, debt, and expenses related to compensated absences and pension benefits. Revenue for the City for the year ended June 30, 2015, which totaled approximately $311,351,400, increased from the year ended June 30, 2014. The increase for the City as a whole was approximately $11,285,500 which was an increase of 3.76%. Revenues for the business-type activities increased approximately $911,600 (0.63%). Water and sewer operating revenues increased approximately $3,072,400 (2.63%). This was primarily due to additional customers added during the year and increased consumption. The Hydro Electric Facilities Fund showed a decrease of approximately $1,806,000 (-37.28). The hydroelectric plant is a “run of the river” hydro plant. As such the amount of flow in the canal has a significant impact on the plant’s ability to generate electricity. During fiscal year 2015 there was approximately a 36% dip in flow in the canal. This dip in flow limited the ability to generate electricity which resulted in a decrease in revenue. Stormwater revenues increased during the fiscal year approximately $562,900 (8.09%) due to one-time funding received during the year from the South Carolina Department of Transportation. Parking revenues increased approximately $650,500 (10.01%) during the fiscal year primarily due to an apartment complex opening in the downtown area. The complex leased parking spaces in the City’s Sumter Street Garage. Revenue from governmental activities for the year ended June 30, 2015, which totaled approximately $167,746,000, represented an increase from the year ended June 30, 2014, of approximately $10,374,200 (6.59%). The majority of the increase resulted from a two percent increase in franchise fees enacted during the fiscal year. The City also received additional revenue as a result of the increase in the hydrant fees charged to water users living outside the city limits. Business license revenue and sales tax collections provided the majority of the remaining increase as the downtown revitalization continued to attract additional business and the overall general economy continued to show improvement.

Table 2 City of Columbia’s

Changes in Net Position Years Ended June 30, 2015 and June 30, 2014

Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended June 30, 2015 June 30, 2014 June 30, 2015 June 30, 2014 June 30, 2015 June 30, 2014

Revenues: Program revenues

Charges f or services General government 726,487$ 758,177$ -$ -$ 726,487$ 758,177$ Finance 37,837,666 31,467,056 - - 37,837,666 31,467,056 Community development 799,663 832,159 - - 799,663 832,159 Public saf ety 22,811,461 22,040,936 - - 22,811,461 22,040,936 Parks and recreation 822,319 818,304 - - 822,319 818,304 Public services 258,211 344,718 - - 258,211 344,718 Water/sew er f acilities - - 119,716,789 116,644,423 119,716,789 116,644,423 Hydro-electric plant - - 3,037,971 4,843,922 3,037,971 4,843,922 Stormw ater facilities - - 7,521,149 6,958,281 7,521,149 6,958,281 Parking f acilities - - 7,145,520 6,495,064 7,145,520 6,495,064 Redevelopment programs - - 680,111 564,456 680,111 564,456 Parks and recreation camps - - 300,931 275,182 300,931 275,182

Operating grants and contributions General government 5,440,411 2,339,163 - - 5,440,411 2,339,163 Community development 3,363,032 3,120,983 - - 3,363,032 3,120,983 Public saf ety 20,029,516 23,203,634 - - 20,029,516 23,203,634 Public services 294,858 298,722 - - 294,858 298,722 Community promotion 5,852,478 5,485,700 - - 5,852,478 5,485,700

Capital grants and contributions General government 2,134,035 393,750 - - 2,134,035 393,750 Public services 935,401 373,087 - - 935,401 373,087 Water/sew er f acilities - - 3,872,664 5,431,910 3,872,664 5,431,910

General revenues General property taxes 34,178,067 34,353,070 - - 34,178,067 34,353,070 Local Option Sales Tax 16,385,254 16,465,463 - - 16,385,254 16,465,463 Sales taxes 12,626,419 12,072,024 - - 12,626,419 12,072,024 Motor f uel taxes 3,348 1,381 - - 3,348 1,381 State shared revenue 2,829,726 2,805,133 - - 2,829,726 2,805,133 Unrestricted investment earnings 163,175 89,001 1,226,558 1,158,475 1,389,733 1,247,476 Gain on disposal of capital assets 254,447 109,361 103,766 322,133 358,213 431,494

Total revenues 167,745,974 157,371,822 143,605,459 142,693,846 311,351,433 300,065,668

Governmental Business-type Total Activities Activities Primary Government

CITY OF COLUMBIA, SOUTH CAROLINA Management’s Discussion and Analysis (Unaudited)

June 30, 2015

Table 2 City of Columbia’s

Changes in Net Position (Continued) Years Ended June 30, 2015 and June 30, 2014

Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended June 30, 2015 June 30, 2014 June 30, 2015 June 30, 2014 June 30, 2015 June 30, 2014

Governmental Business-type Total Activities Activities Primary Government

Expenses: General government 8,050,355$ 8,049,816$ -$ -$ 8,050,355$ 8,049,816$ Judicial 2,749,136 2,615,194 - - 2,749,136 2,615,194 Finance 1,886,778 1,726,481 - - 1,886,778 1,726,481 Community development 5,791,062 5,787,850 - - 5,791,062 5,787,850 Public saf ety 87,251,472 84,053,096 - - 87,251,472 84,053,096 Parks and recreation 13,081,872 12,290,401 - - 13,081,872 12,290,401 Public services 24,282,518 21,960,858 - - 24,282,518 21,960,858 General services 5,269,511 4,933,285 - - 5,269,511 4,933,285 Community promotion 10,660,364 12,872,657 - - 10,660,364 12,872,657 Interest on long-term debt 4,491,254 2,955,994 - - 4,491,254 2,955,994 Non-departmental 2,141,310 2,515,184 - - 2,141,310 2,515,184 Water/sew er f acilities - - 113,273,814 100,389,819 113,273,814 100,389,819 Hydro electric plant - - 2,422,544 3,012,376 2,422,544 3,012,376 Stormw ater f acilities - - 4,814,419 5,668,819 4,814,419 5,668,819 Parking f acilities - - 7,678,876 6,162,449 7,678,876 6,162,449 Redevelopment programs - - 835,812 848,141 835,812 848,141 Parks and recreation camps - - 306,219 324,209 306,219 324,209

Total expenses 165,655,632 159,760,816 129,331,684 116,405,813 294,987,316 276,166,629

Increase (decrease) in net position bef ore transfers 2,090,342 (2,388,994) 14,273,775 26,288,033 16,364,117 23,899,039 Transf ers 8,889,857 9,031,340 (8,889,857) (9,031,340) - -

Increase in net position 10,980,199 6,642,346 5,383,918 17,256,693 16,364,117 23,899,039

Net position, beginning of period * 95,435,306 207,388,220 * 597,683,706 620,668,875 * 693,119,012 828,057,095

Net position, end of period 106,415,505$ 214,030,566$ 603,067,624$ 637,925,568$ 709,483,129$ 851,956,134$

* As restated for implementation of GASB 68 (see Note VII. C).

Total expenses for the City were approximately $294,987,300 for the year ended June 30, 2015. This represents an increase of approximately $18,820,700 (6.81%) when compared to the year ended June 30, 2014. This overall increase resulted from an increase of approximately $5,894,800 in governmental activities and an increase of approximately $12,925,900 in business-type activities. Most of the increase in governmental activities is related to the City’s commitment to public safety during the current year. Not only were there additional policemen added during the current year, there was investment in new technology and equipment. Additional costs were incurred with the City’s revitalization of the Bull Street Commons area. As a result of the increase in the amount of hospitality taxes collected, the City was able to increase its support of community organizations during the current fiscal year by approximately $1,000,000. The majority of the remaining increase is the result of the increase in debt related expenses resulting from the issuance of a capital lease and a hospitality revenue bond during the current year. Expenses for business-type activities increased by approximately $12,925,900, or 9.99%, compared to the year ended June 30, 2014. The overall increase in expenses was primarily due to an increase in repairs and maintenance projects undertaken during the current year to comply with the consent decree the City executed with the Environmental Protection Agency, additional depreciation expense on completed water and sewer projects related to the consent decree, and the increase in retirement expenses related to the City’s adoption of GASBS 68. This resulted in an increase of approximately $12,884,000 in expenses in the Water and Sewer Facilities Fund. The Hydro Electric Facilities fund expenses decreased by approximately $589,800. This decrease is primarily due to the way the contract with the company that operates the hydro-electric plant for the City is structured. The operating company’s compensation is based on a percentage of revenue generated. Therefore, as operating revenues decrease, operating costs will likewise decrease. When compared to the prior year, the Stormwater

CITY OF COLUMBIA, SOUTH CAROLINA Management’s Discussion and Analysis (Unaudited)

June 30, 2015

Facilities Fund expenses decreased by approximately $854,400. This decrease was a result of personnel related costs, primarily insurance related costs, decreasing during fiscal year 2015 due to a change in allocation methods. When compared to the prior year, the Parking Facilities Fund expenses increased by approximately $1,516,400. This increase was the result of additional repair costs on the garages, installation of new technology, debt related costs due to the issuance of a refunding bond during the current year, and increase retirement expense due to the adoption of GASBS 68. The expenses for the remaining programs remained virtually unchanged compared to the year ended June 30, 2014. The City’s net position increased by $16,364,117 during the year ended June 30, 2015. The net position for governmental funds increased by $10,980,199, while the change in net position of business-type funds increased by $5,383,918. The overall net position increase of the City was approximately $7,534,900 less when compared to the prior fiscal year. This overall decrease was the combination of an approximately $4,337,900 increase in the governmental activities and an approximately $11,872,800 decrease in business-type activities. The main factor in the overall decrease was the increased repair and maintenance costs in the water and sewer fund and the parking fund, increased depreciation expense in the water and sewer fund and the increased retirement related costs in the business-type activity funds with personnel in fiscal year 2015. Governmental Activities – A comparative analysis of the governmental activities expenses and program revenues is presented below.

Figure 1 Program Revenues Compared to Expenses

Governmental Activities Year Ended June 30, 2015

$‐ $10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 $60,000,000 $70,000,000 $80,000,000 $90,000,000

Program Revenues Compared to Expenses Governmental Activities

Expenses

Program Revenue

CITY OF COLUMBIA, SOUTH CAROLINA Management’s Discussion and Analysis (Unaudited)

June 30, 2015

Figure 2 Program Revenues by Source

Governmental Activities Year Ended June 30, 2015

Business-type Activities – The net position of the City’s business-type activities increased by approximately $5,383,900 for the year ended June 30, 2015. This growth is primarily attributable to the operations of the water and sewer and stormwater departments. A comparative analysis and discussion of expenses and program revenues for these enterprise operations is presented below.

Figure 3 Program Revenue Compared to

Expenses for Business-type Activities Year Ended June 30, 2015

General government 4%

Finance 34%

Community development

Public safety 50%

Parks and recreation 1%

Public services 1%

Community promotion

Program Revenues by Source Governmental Activities

General government

Finance

Community development

Public safety

Parks and recreation

Public services

Community promotion

$‐ $20,000,000 $40,000,000 $60,000,000 $80,000,000

$100,000,000 $120,000,000 $140,000,000

Program Revenue Compared to Expenses Business‐type Activities

Expenses

Program Revenues

CITY OF COLUMBIA, SOUTH CAROLINA Management’s Discussion and Analysis (Unaudited)

June 30, 2015

Figure 4 Program Revenues by Source for Business-type Activities Year Ended June 30, 2015

Water and Sewer Facilities Fund – The net position for the water and sewer facilities fund for the year ended June 30, 2015, increased by approximately $4,491,500.

Table 3 Water and Sewer Facilities Fund Revenues and Expenses

Years Ended June 30, 2015 and June 30, 2014

2015 2014 Revenues Total operating revenues 118,178,523$ 116,498,720$ Non-operating revenues (281,047) 1,425,545 Development contributions 3,872,664 5,431,910

Total revenues 121,770,140 123,356,175

Expenses Total operating expenses 98,033,982 89,855,344 Interest and amortization expense 10,414,620 9,496,543 Transfers, net 8,830,077 8,058,247

Total expenses 117,278,679 107,410,134

Change in net position 4,491,461$ 15,946,041$

Year Ended June 30,

Total operating revenues, which primarily consist of water and sewer fees, increased by approximately $1,679,800, or 1.44%, to $118,178,523. The increase in operating revenues was due primarily to increased consumption. Sewer fees also increased for the same reason. The decrease in non-operating revenues was due to losses incurred in disposing of capital assets. Contributed infrastructure revenue decreased approximately $1,559,200 from the year ended June 30, 2014, as new construction decreased from prior year. Total revenues for the year ended June 30, 2015, decreased approximately $1,586,000, or 1.29%, to $121,770,140. Total operating expenses increased by approximately $8,178,600, or 9.10%, to $98,033,982 when compared to the year ended June 30, 2014. This increase was primarily the result of increase in maintenance and repair projects to the system in fiscal 2015 as part of the City’s compliance with the consent decree and additional depreciation

96%

Program Revenues by Source Business‐type Activities

Charges for services

Capital grants

CITY OF COLUMBIA, SOUTH CAROLINA Management’s Discussion and Analysis (Unaudited)

June 30, 2015

expense. The increase in operating expenses exceeded the increase in operating revenue resulting in an operating margin decrease of approximately $4,491,500 compared to the year ended June 30, 2014. Interest expense increased by approximately $918,100 as less interest was capitalized in fiscal year 2015 due to completion of construction projects financed by bond proceeds. Net transfers in fiscal year 2015 increased by approximately $771,800 from fiscal year 2014 due to the increased transfer to the internal service fund to cover the increased health care costs. Total expenses increased by approximately $9,868,500, or 9.19%, to approximately $117,278,700. The increase in water and sewer repair costs and retirement costs, along with the decrease in contributed infrastructure were the primary reasons change in net position increased by $4,491,461 for the year ended June 30, 2015. The restricted portion of the water and sewer facilities fund’s net assets represents debt service reserve funds that are restricted under various bond ordinances. Parking Facilities Fund – The net position of the Parking Facilities Fund for the year ended June 30, 2015, decreased by approximately $593,600.

Table 4 Parking Facilities Fund Revenue and Expenses Years Ended June 30, 2015 and June 30, 2014

2015 2014 Revenues Total operating revenues 7,040,165$ 6,386,389$ Non-operating revenues 183,805 206,066 Gain (loss) on sale of assets 3,690 -

Total revenues 7,227,660 6,592,455

Expenses Total operating expenses 5,082,334 4,556,545 Interest and amortization expense 2,416,329 1,508,716 Transfers, net 322,586 178,323

Total expenses 7,821,249 6,243,584

Change in net position (593,589)$ 348,871$

Year Ended June 30,

Total operating revenues, which primarily consist of parking fees and fines, increased by approximately $653,800, or 10.24%, to $7,040,165. The increase in operating revenues was due primarily to the recovery of parking spaces lost in the downtown area during fiscal year 2014 due to construction activity and the increase in space rented due to the completion of a new apartment complex in the downtown area. Non-operating revenue decreased by approximately $22,300 due primarily to a continued decline in interest rates and less unspent bond proceeds to invest. Total revenues for the year ended June 30, 2015, increased approximately $635,200, or 9.94%, to $7,227,660 primarily as a result of the increase in available parking spaces and additional spaces rented under long term rental agreements. Total operating expenses increased by approximately $525,800, or 11.54%, to $5,082,334 when compared to the year ended June 30, 2014. This was primarily the result of technology upgrades to select parking garages and increase retirement related expenses due to the adoption of GASBS 68. The increase in operating revenues offset increase in operating expenses resulting in an operating margin increase of approximately $128,700 compared to the year ended June 30, 2014.

Interest and amortization expense increased in fiscal year 2015 by approximately $907,600, or 60.16%, when compared to fiscal year 2014 due to additional debt outstanding and the costs related to issuing the refunding debt. Net transfers increased in fiscal year 2015 by approximately $144,300 when compared to fiscal year 2014. The increase was due to increased transfers to the internal service funds to cover increased health care costs. Total

CITY OF COLUMBIA, SOUTH CAROLINA Management’s Discussion and Analysis (Unaudited)

June 30, 2015

expenses increased by approximately $1,577,700, or 25.27%, to $7,821,249. Debt issuance costs, increased health care costs, and retirement related costs were the main reasons for the increase in total expenses. Financial Analysis of the City’s Funds

As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental funds – The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year. As of June 30, 2015, the City’s governmental funds reported combined ending fund balances of approximately $100,785,200, an increase of approximately $28,405,600. Unassigned fund balance is available for spending at the City’s discretion. As of June 30, 2015, the City has an unassigned fund balance of approximately $21,336,100, a decrease of approximately $3,723,800 compared to the year ended June 30, 2014. The general fund is the chief operating fund of the City. During the year ended June 30, 2015, the fund balance of the general fund increased by approximately $7,399,400 to approximately $36,393,700. The increase in fund balance was made possible by revenue collections that exceeded the adopted budget along with closely monitored spending. The major portion of the 2015 surplus was due to increased collections from franchise fees due to the enactment of a two percent increase in the amount of fee to be collected. This rate increase resulted in approximately $4,800,000 in additional fees being collected. Unspent funds of approximately $4,880,600 from the issuance of a capital lease was also a major contributor to the surplus. The unassigned fund balance, which is available for use without restriction, decreased by approximately $2,707,800 to approximately $22,352,200. Unrestricted fund balance is the combination of unassigned fund balance ($22,352,200), assigned fund balance ($3,654,100), and committed fund balance ($4,810,400), and totals approximately $30,816,700. The remainder of the fund balance in the general fund is comprised of approximately $4,880,700 in restricted fund balance and $696,400 in nonspendable fund balance. As a measure of liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total fund expenditures. The County Services fund is used to report funds received from Richland County, South Carolina to offset costs incurred by the City of Columbia in providing fire services and 911 emergency communications services to Richland County citizens living outside the incorporated area of the City of Columbia. Collections for the year ended June 30, 2015, decreased by approximately $2,442,000, or 11.36%, due to the City refunding a portion of the fees received during the current year, back to Richland County. The fund is intended to operate on a break even basis and the current year fees were refunded in an attempt to achieve the break even objective. Expenditures for the year ended June 30, 2015, increased by approximately $496,000 primarily due to increased personnel costs and normal price increases of goods and services. Proprietary funds – The statements of the City’s proprietary funds provide the same type of information as the business-type activities in the government-wide financial statements but in more detail. Factors concerning the finances of these funds were previously addressed in the discussion of the City’s business-type activities. General Fund Budgetary Highlights

The general fund is the principal operating fund of the City and is used to account for all activities of the City not otherwise accounted for by a specified fund. It is also the largest of the City’s funds and is mostly comprised of general tax revenues and license and permit fees. Over the course of the fiscal year, the City revises its budget to address unanticipated changes in revenues and expenditures. The City provides basic city services such as police, fire, parks and recreation, and other public services. Each department budget must be developed and justified annually during the legally required budget adoption process. Total general fund revenues for the year ended June 30, 2015, were approximately $118,574,100, approximately $7,544,100, or 6.79%, more than the final budget of approximately $111,030,000. This overall revenue increase was the result of an increase in license and permit fees due to an improving economy and a franchise fee rate increase and increases in intergovernmental revenues resulting from a rate increase in fire hydrant fees. These increases were offset by a decrease in general property taxes and charges for services.

CITY OF COLUMBIA, SOUTH CAROLINA Management’s Discussion and Analysis (Unaudited)

June 30, 2015

Total general fund expenditures were approximately $115,148,700 for the year ended June 30, 2015, approximately $4,998,100, or 4.16%, less than the final budgeted expenditures of approximately $120,146,800. Closely monitoring of expenditures resulted in most city departments being under budget. The most significant exception was savings in personnel related expenses of approximately $2,575,200 resulting from position vacancies and approximately $2,000,000 less in capital spending than budgeted. Capital Assets and Debt Administration

Capital assets – The City’s investment in capital assets (before reductions for debt service) for its governmental and business-type activities as of June 30, 2015, totaled $1,038,180,774 net of accumulated depreciation. This investment in capital assets includes land, buildings, infrastructure, construction in progress, machinery, and equipment. The net increase in the City’s investment in capital assets for the year ended June 30, 2015, was approximately $46,503,600, or 4.69%. Major capital asset events during the year ended June 30, 2015, included the following:

 Construction in progress (CIP) decreased by a net $61,009,198. This decrease was primarily the result of projects started in prior years and completed during the current fiscal year. Major completed projects included a $14,666,838 upgrade to the main waste water treatment plant influent pump station, a $8,545,195 upgrade to the main waste water treatment plant preliminary treatment facility, $1,735,559 in mechanical screens were installed at the main waste water treatment plant, a $1,872,984 upgrade to the flow equalization vault at the main waste water treatment plant, approximately $4,000,000 in electrical system upgrades were completed at the main waste water treatment plant, as well as over $10,000,000 in upgrades to the clarifiers at the main waste water treatment plant. There was approximately $4,627,200 added to the governmental CIP balance related to various governmental projects. There was a decrease of approximately $65,636,400 in the business-type activities CIP balance as prior year projects were completed during the current year.

 Buildings and improvements additions totaled approximately $112,398,800 during the year ended June 30, 2015. Most of these were the result of completed construction projects started in prior years. Significant additions included clarifiers at the main waste water treatment plant, aeration tanks at the main waste water treatment plant, booster pumps at the Chapin pump station, improvements in the Read Street area, as well as various improvements in the Burnside area. The main decrease resulted from the disposal of old clarifiers at the main waste water treatment plant.

 Machinery and equipment additions totaled approximately $34,765,100 during the year ended June 30, 2015. These additions consisted mainly of police vehicles, garbage trucks, fire trucks, other items of rolling stock, generators, pumps, actuators, and other water treatment equipment. Disposals consisted mainly of fully depreciated items, a raw water pump station, and a water tank.

 Depreciation expense totaled approximately $46,615,700 for the City as a whole.

CITY OF COLUMBIA, SOUTH CAROLINA Management’s Discussion and Analysis (Unaudited)

June 30, 2015

Capital assets, net of depreciation, for the governmental and business-type activities are as follows:

Table 5 Capital Assets (Net of Depreciation)

As of June 30, 2015 and June 30, 2014

As of June 30, As of June 30, As of June 30, As of June 30, As of June 30, As of June 30, 2015 2014 2015 2014 2015 2014

Land 33,257,979$ 32,647,161$ 30,164,566$ 30,111,133$ 63,422,545$ 62,758,294$ Construction in progress 11,052,394 6,425,233 88,301,082 153,937,441 99,353,476 160,362,674 Buildings and improvements 138,368,256 144,615,099 657,967,963 573,875,162 796,336,219 718,490,261 Inf rastructure 19,721,673 13,392,943 - - 19,721,673 13,392,943 Machinery and equipment 19,255,198 15,110,122 40,091,663 21,562,925 59,346,861 36,673,047

Total 221,655,500$ 212,190,558$ 816,525,274$ 779,486,661$ 1,038,180,774$ 991,677,219$

Activities Activities Primary Government Governmental Business-type Total

Additional information on the City’s capital assets can be found in Note III. F. in the Notes to the Financial Statements. Long-term debt – The City’s long-term debt, including capital leases payable, reflected a net increase of approximately $15,902,500, or 2.69%. This net increase was the result of $31,141,791 in principal payments and $2,088,547 in amortization of bond premiums. The City also received proceeds of $29,922,839 (including a premium of $3,747,839) from the issuance of a hospitality revenue bond. This bond is backed by a revenue fee pledge of the City’s hospitality fees. The City also received proceeds of $12,210,000 from the issuance of additional revenue bonds. These bonds are backed by revenues from the parking system. Principal payments of $21,815,000 were made on business-type activity revenue bonds. Principal payments of $396,791 were made on governmental activities capital lease obligations. Principal payments of $8,930,000 were made on governmental activities bonds and notes payable. Total governmental activities debt had a net increase of approximately $27,272,300, while business-type activities debt had a net decrease of approximately $11,369,800. The capital lease obligation debt was issued to fund the purchase of police cars and other capital assets. The Parking Facilities Refunding Revenue Bond Series 2014 was issued to refund a portion of the Series 2005A Parking Bonds. The Special Obligation Bonds Series 2014 were issued to finance the cost of acquisition of a multi-use entertainment venue.

Table 6 Outstanding Indebtedness

As of June 30, 2015 and June 30, 2014

As of June 30, As of June 30, As of June 30, As of June 30, As of June 30, As of June 30, 2015 2014 2015 2014 2015 2014

Notes payable 5,034,142$ 5,229,142$ -$ -$ 5,034,142$ 5,229,142$ General obligation bonds 30,665,000 35,680,000 - - 30,665,000 35,680,000

Bond premiums 1,577,297 1,814,897 - - 1,577,297 1,814,897 Revenue bonds 66,035,000 43,580,000 - - 66,035,000 43,580,000

Bond premiums 3,661,682 - - - 3,661,682 - Parking Facilities revenue bonds - - 41,680,000 43,190,000 41,680,000 43,190,000

Bond premiums - - 42,101 44,046 42,101 44,046 Waterw orks and Sew er System revenue bonds - - 424,115,000 432,210,000 424,115,000 432,210,000

Bond premiums - - 27,898,797 29,661,642 27,898,797 29,661,642 Capital leases payable 6,603,209 - - - 6,603,209 -

Total 113,576,330$ 86,304,039$ 493,735,898$ 505,105,688$ 607,312,228$ 591,409,727$

Activities Activities Primary Government TotalGovernmental Business-type

CITY OF COLUMBIA, SOUTH CAROLINA Management’s Discussion and Analysis (Unaudited)

June 30, 2015

As noted earlier, the City’s underlying bond rating for its general obligation debt issues and water and sewer revenue bonds as of June 30, 2015, was an “AA1” by Moody’s Investors Service, Inc. and “AA” by Standard and Poor’s Rating Services. The parking system revenue bonds as of June 30, 2015, were rated “BBB+” by Standard and Poor’s Rating Service and “A2” by Moody’s Investor Service, Inc. Article X, Section 14 of the State Constitution limits the amount of general obligation debt a governmental entity may issue to 8% of its assessed property value. The City as of June 30, 2015, had $30,665,000 in debt subject to this limitation which is less than the $41,434,582 allowed without approval by the voters in the City. Additional information regarding the City’s long-term obligations can be found in Note III. H. in the Notes to the Financial Statements. Economic Factors and Next Year’s Budget

Based on the economic forecasts for South Carolina, the City expects to see a continuing recovery in fiscal year 2016, even with the early October flooding that occurred. The economic effect of these floods are expected to be similar to that of Hurricane Hugo, which struck Charleston, South Carolina, in that there were losses associated with property and infrastructure damage as well as a four to six-week period of major disruptions to business activity. This damage will likely generate additional spending in 2016 resulting from rebuilding efforts. Total personal income is expected to increase from 4.6% to 4.9%. Major drivers of these economic gains are expected to be wage growth and disposable income. Job creation is expected to grow by 2.9%. Housing demand in 2015 was fueled by new construction rather than remodeling, and this trend is expected to continue in 2016. In early October 2015, almost twenty-four inches of rain fell in the Columbia area in less than forty-eight hours. This rainfall caused historic flooding and unprecedented damage to City infrastructure. The City has been approved to receive federal disaster aid and has begun the Federal Emergency Management Agency Public Assistance process. While some aid money has been received, the total amount of aid to be received has yet to be determined. Additional information can be found in Note VII A in the Notes to the Financial Statements. While the City’s unemployment rate is approximately one percent higher than the national rate of 5.3 percent, City Council is committed to maintaining a strong fund balance while still providing high level services to its residents. General fund revenues are budgeted at $117,086,953 for fiscal year 2016, an increase of approximately $6,057,000 or 5.46% over fiscal year 2015. Franchise fees and fines and forfeitures will account for significantly all of this increase. General fund expenditures are budgeted at $117,056,300 for fiscal year 2016, an increase of approximately $4,888,500 or 4.36% over fiscal year 2015 final budget. Substantially all of this increase reflects the City’s commitment to public safety in 2016. Key items that factored into the preparation of the budget for the year ending June 30, 2016, are listed below:

 The budget includes $3,000,000 towards a phase in implementation of the 2015 Comprehensive Compensation and Classification Study. It is felt the City’s ability to attract and retain competent and capable employees is a critical part of providing quality city services.

 There will be a two mil property tax decrease for fiscal year 2016. Even with this reduction in mils, property tax revenues are expected to increase approximately $420,200.

 The budget increase for water and sewer is allocated almost entirely toward the capital improvement program designed to meet the requirements of the Clean Water 2020 program.

 The budgeted transfer from the water and sewer fund to the general fund will decrease from $4,000,000 to $2,675,605.

 The City expects to invest $120,000,000 in capital improvements for the water and sewer system during the year ending June 30, 2016.

 Public Safety is a top priority in the fiscal year 2016 budget. Funding is budgeted for the support of the recruitment and retention efforts in the police and fire departments. The budget has been increased to provide additional funds for training and protective equipment, as well as security cameras.

Requests for Information

This financial report is designed to provide a general overview of the City’s finances for all those with an interest in the City’s finances. Questions concerning any of the information provided in this report or requests for additional information should be addressed to the City’s Chief Financial Officer, P.O. Box 147, 1737 Main Street, Columbia, South Carolina 29217. Thank you for your interest in the City, in general, and its finances specifically.

BASIC FINANCIAL STATEMENTS

Governmental Activities

Business-type Activities Total

Component Units

ASSETS AND DEFERRED OUTFLOWS ASSETS

Current Assets Cash and equivalents 125,780,762$ 194,593,483$ 320,374,245$ 7,855,046$ Certificates of deposit - - - 500,000 Investments 11,316,911 86,826,972 98,143,883 - Receivables

Property taxes, net of allowance 1,904,907 - 1,904,907 - Federal government 932,502 - 932,502 - State government 7,586,757 - 7,586,757 - County government 500,130 - 500,130 - Accounts, net of allowance 500,193 8,389,684 8,889,877 412,236 Accrued interest 20,703 160,732 181,435 42,370 Notes, net of allowance - 528,258 528,258 1,339,234

Due from component units - 870,168 870,168 - Due from primary government - - - 825,000 Internal balances 9,954,028 (9,954,028) - - Prepaid expenses 947,195 94,470 1,041,665 228,141 Inventory 686,763 2,541,882 3,228,645 - Capital lease receivable 580,000 - 580,000 - Real estate held for sale and development - 84,810 84,810 - Restricted assets

Real estate held for sale and development - - - 512,101

Total current assets 160,710,851 284,136,431 444,847,282 11,714,128

Noncurrent Assets Cash on deposit with escrow agent 100,000 1,300,296 1,400,296 10,678,747 Investments 36,102,642 38,845,336 74,947,978 - Mortgage notes receivable, net of current portion - 20,926,464 20,926,464 2,558,257 Deposits 78,745 - 78,745 - Other assets

Prepaid bond insurance costs - 396,577 396,577 - Organizational costs - - - 5,106 Real estate held for sale or development - - - 3,148,146 Security deposits - - - 5,500 Capital lease receivable, net of current portion 14,249,142 - 14,249,142 -

Capital assets not being depreciated Land 33,257,979 30,164,566 63,422,545 2,775,059 Construction in progress 11,052,394 88,301,082 99,353,476 -

Capital assets net of accumulated depreciation Buildings, improvements and utility plant 138,368,256 657,967,963 796,336,219 6,965,772 Infrastructure 19,721,673 - 19,721,673 - Machinery and equipment 19,255,198 40,091,663 59,346,861 -

Total noncurrent assets 272,186,029 877,993,947 1,150,179,976 26,136,587

TOTAL ASSETS 432,896,880 1,162,130,378 1,595,027,258 37,850,715

DEFERRED OUTFLOWS OF RESOURCES Deferred charge on refunding 1,881,399 7,107,890 8,989,289 - Deferred outflows related to net pension liability 11,414,950 3,873,332 15,288,282 - Accumulated decrease in fair value of hedging

derivatives 1,174,619 26,884,816 28,059,435 -

TOTAL DEFERRED OUTFLOWS OF RESOURCES 14,470,968 37,866,038 52,337,006 -

TOTAL ASSETS AND DEFERRED OUTFLOWS OF RESOURCES 447,367,848$ 1,199,996,416$ 1,647,364,264$ 37,850,715$

Primary Government

June 30, 2015 STATEMENT OF NET POSITION

CITY OF COLUMBIA, SOUTH CAROLINA

(Continued)

Governmental Activities

Business-type Activities Total

Component Units

LIABILITIES, DEFERRED INFLOWS, AND NET POSITION

LIABILITIES Current Liabilities

Accounts payable and accrued expenses 11,560,127$ 14,272,331$ 25,832,458$ 1,113,953$ Accrued salaries and benefits 2,938,692 1,311,925 4,250,617 - Accrued liability for claims 16,225,389 23,600 16,248,989 - Accrued interest 836,390 9,081,603 9,917,993 - Retainage payable 538,668 4,046,755 4,585,423 - Unearned revenue - - - 960,273 Due to primary government - - - 505,995 Refundable advances 121,319 - 121,319 - Due to related party - - - 406 Due to component unit 825,000 - 825,000 - Compensated absences 1,378,419 355,678 1,734,097 212,412 Deposits payable 32,530 29,500 62,030 61,410 Current notes and mortgages payable 215,000 - 215,000 1,077,338 General obligation bonds, current portion 5,155,000 - 5,155,000 - Revenue bonds, current portion 3,815,000 9,450,000 13,265,000 - Obligation under capital lease - current portion 972,567 - 972,567 -

Liabilities payable from restricted assets Due to primary government - - - 364,173

Total current liabilities 44,614,101 38,571,392 83,185,493 4,295,960

Noncurrent liabilities Unearned revenue - 1,302,696 1,302,696 - Compensated absences 5,271,211 1,422,712 6,693,923 86,404 Net pension liability 119,566,514 40,573,706 160,140,220 - OPEB liability 52,098,105 - 52,098,105 - Mortgages payable, net of current portion 14,999,142 - 14,999,142 5,140,385 General obligation bonds, net of current portion 27,087,297 - 27,087,297 - Revenue bonds, net of current portion 55,701,682 484,285,898 539,987,580 - Obligation under capital lease - net of current portion 5,630,642 - 5,630,642 - Derivative instrument liability, interest rate swap 1,174,619 26,884,816 28,059,435 -

Total noncurrent liabilities 281,529,212 554,469,828 835,999,040 5,226,789

TOTAL LIABILITIES 326,143,313 593,041,220 919,184,533 9,522,749

DEFERRED INFLOWS OF RESOURCES Deferred inflows related to net pension liability 11,456,914 3,887,572 15,344,486 - Deferred inflow - property sale 100,000 - 100,000 - Deferred inflow - property tax credit 3,252,116 - 3,252,116 -

TOTAL DEFERRED INFLOWS OF RESOURCES 14,809,030 3,887,572 18,696,602 -

NET POSITION Net investment in capital assets 162,102,481 368,742,602 530,845,083 4,877,075 Restricted for

Capital projects 42,264,148 - 42,264,148 - Debt service 3,978,932 9,352,281 13,331,213 - Tourism 6,127,487 - 6,127,487 10,245,283 Public safety 231,622 - 231,622 - Community development

Expendable 1,046,042 - 1,046,042 604,431 Nonexpendable 5,000 - 5,000 -

Unrestricted (109,340,207) 224,972,741 115,632,534 12,601,177

TOTAL NET POSITION 106,415,505 603,067,624 709,483,129 28,327,966 TOTAL LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND NET POSITION 447,367,848$ 1,199,996,416$ 1,647,364,264$ 37,850,715$

CITY OF COLUMBIA, SOUTH CAROLINA STATEMENT OF NET POSITION (CONTINUED)

June 30, 2015

Primary Government

See accompanying Notes to the Financial Statements 29

FUNCTIONS/PROGRAMS Expenses Charges for

Services

Operating Grants and

Contributions

Capital Grants and

Contributions Governmental

Activities Business-type

Activities Total Component Units Primary Government

Governmental activities General government 8,050,355$ 726,487$ 5,440,411$ 2,134,035$ 250,578$ -$ 250,578$ -$ Judicial 2,749,136 - - - (2,749,136) - (2,749,136) - Finance department 1,886,778 37,837,666 - - 35,950,888 - 35,950,888 - Community development 5,791,062 799,663 3,363,032 - (1,628,367) - (1,628,367) - Public safety 87,251,472 22,811,461 20,029,516 - (44,410,495) - (44,410,495) - Parks and recreation 13,081,872 822,319 - - (12,259,553) - (12,259,553) - Public services 24,282,518 258,211 294,858 935,401 (22,794,048) - (22,794,048) - General services 5,269,511 - - - (5,269,511) - (5,269,511) - Community promotion 10,660,364 - 5,852,478 - (4,807,886) - (4,807,886) - Interest and other charges 4,491,254 - - - (4,491,254) - (4,491,254) - Nondepartmental 2,141,310 - - - (2,141,310) - (2,141,310) -

Total governmental activities 165,655,632 63,255,807 34,980,295 3,069,436 (64,350,094) - (64,350,094) -

Business-type activities Water/sewer facilities 113,273,814 119,716,789 - 3,872,664 - 10,315,639 10,315,639 - Hydro-electric plant 2,422,544 3,037,971 - - - 615,427 615,427 - Stormwater facilities 4,814,419 7,521,149 - - - 2,706,730 2,706,730 - Parking facilities 7,678,876 7,145,520 - - - (533,356) (533,356) - Redevelopment programs 835,812 680,111 - - - (155,701) (155,701) - Parks and recreation camps 306,219 300,931 - - - (5,288) (5,288) -

Total business-type activities 129,331,684 138,402,471 - 3,872,664 - 12,943,451 12,943,451 -

Total Primary Government 294,987,316$ 201,658,278$ 34,980,295$ 6,942,100$ (64,350,094) 12,943,451 (51,406,643) -

COMPONENT UNITS 11,477,709$ 4,620,188$ 8,895,253$ 10,075$ - - - 2,047,807

General revenues: General property taxes 34,178,067 - 34,178,067 - Local Option Sales Tax 16,385,254 - 16,385,254 - Sales taxes 12,626,419 - 12,626,419 - Motor fuel taxes 3,348 - 3,348 - State shared revenue 2,829,726 - 2,829,726 - Appropriations - City of Columbia - - - 1,386,338 Unrestricted investment earnings 163,175 1,226,558 1,389,733 100,421 Gain on disposal of capital assets 254,447 103,766 358,213 3,800

Transfers 8,889,857 (8,889,857) - -

Total general revenues and transfers 75,330,293 (7,559,533) 67,770,760 1,490,559

Change in net position 10,980,199 5,383,918 16,364,117 3,538,366

Net position - beginning of period as previously reported 214,030,566 637,925,568 851,956,134 24,789,600 Restatement (Note VII. C.) (118,595,260) (40,241,862) (158,837,122) - Net position - beginning of period as restated 95,435,306 597,683,706 693,119,012 24,789,600

Net position - end of period 106,415,505$ 603,067,624$ 709,483,129$ 28,327,966$

Net (Expense) Revenue and Changes in Net Position Program Revenue Primary Government

Year Ended June 30, 2015 STATEMENT OF ACTIVITIES

CITY OF COLUMBIA, SOUTH CAROLINA

See accompanying Notes to Financial Statements.

General Fund County

Services

Other Governmental

Funds

Total Governmental

Funds ASSETS Cash and cash equivalents 27,252,162$ -$ 33,355,912$ 60,608,074$ Investments 14,986,942 - 32,432,611 47,419,553 Receivables

Property taxes, net 1,892,101 - - 1,892,101 Federal government - - 932,502 932,502 State government 4,571,504 - 3,015,253 7,586,757 County - - 500,130 500,130 Accounts, net 159,891 - - 159,891 Accrued interest receivable 20,688 - 15 20,703 Capital lease receivable 14,829,142 - - 14,829,142

Due from other funds - - 2,986,200 2,986,200 Cash on deposit with escrow agent 100,000 - - 100,000 Prepaid charges 696,389 64,376 - 760,765

TOTAL ASSETS 64,508,819$ 64,376$ 73,222,623$ 137,795,818$

LIABILITIES, DEFERRED INFLOWS, AND FUND BALANCES Liabilities

Accounts payable 3,856,140$ 356,790$ 4,463,183$ 8,676,113$ Accrued salaries and benefits 2,283,127 497,001 28,876 2,809,004 Retainage payable - - 538,668 538,668 Due to component unit - - 825,000 825,000 Refundable advances 41,250 - 80,069 121,319 Due to other funds 1,589,930 162,314 1,943,652 3,695,896 Customer deposits 32,530 - - 32,530 Advances from other funds 1,150,042 - - 1,150,042

Total liabilities 8,953,019 1,016,105 7,879,448 17,848,572

Deferred inflows of resources Unearned revenue - deferred property tax credit 3,252,116 - - 3,252,116 Unearned revenue - property sale 100,000 - - 100,000 Unavailable revenue - property taxes 980,802 - - 980,802 Unavailable revenue - capital lease receivable 14,829,142 - - 14,829,142

Total deferred inflows of resources 19,162,060 - - 19,162,060

Fund balances Nonspendable 696,389 64,376 5,000 765,765 Restricted 4,880,662 - 48,767,569 53,648,231 Committed 4,810,356 - - 4,810,356 Assigned 3,654,109 - 16,570,606 20,224,715 Unassigned 22,352,224 (1,016,105) - 21,336,119

Total fund balances 36,393,740 (951,729) 65,343,175 100,785,186

TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES 64,508,819$ 64,376$ 73,222,623$ 137,795,818$

CITY OF COLUMBIA, SOUTH CAROLINA BALANCE SHEET

GOVERNMENTAL FUNDS

June 30, 2015

See accompanying Notes to Financial Statements.

Total fund balance, governmental funds 100,785,186$

Amounts reported for governmental activities in the statement of net position are different because

Capital assets, net of accumulated depreciation, used in governmental activities are not current financial resources and therefore are not reported in the fund financial statements, but are reported in the governmental activities of the statemen of net position.

Land 33,257,979$ Construction in progress 11,052,394 Buildings and improvements, net 137,464,670 Infrastructure, net 19,721,673 Machinery and equipment, net 18,946,280 220,442,996

Certain other long-term deferred outflows are not available to pay current period expenditures and therefore are not reported in the fund financial statements, but are reported in the governmental activities of the statement of net position

Unamortized deferred loss on refunding 1,881,399$ Pension contributions made subsequent to the measurement date 7,816,111 Differences between expected and actual experience 3,199,815 12,897,325

Certain property tax revenues will be collected after year end but are not available soon enough to pay for the current period's expenditures and, therefore, are deferred in the funds 993,607

Internal service funds are used by management to charge the costs of certain activities to individual funds. The asset and liabilities of the internal service funds are included i governmental activities in the statement of net position (9,285,700)

Eliminations relating to the consolidation of internal servic funds resulted in an amount due to governmental activities from business-type activities in the statement of net position 13,016,117

Some liabilities (such as notes payable, capital leases contracts payable, compensated absences, and bonds payable) are not due and payable in the current period and are not included in the fund financial statements, but are include in the governmental activities of the statement of net position

Accrued compensated absences (6,407,171)$ Accrued interest payable (836,390) Net pension liability (115,386,854) Bonds and notes payable (101,734,142) Capital lease payable (6,603,209) Unamortized premium (5,238,979) (236,206,745)

Other long term deferred inflows related to pension expense do not consume current financial resources and are, therefore, no reported in the fund financial statements

Investment earnings on retirement plan fiduciary held assets (11,056,423)

Capital leases receivable does not provide current financia resources and, therefore, is deferred in the fund financia statements. 14,829,142

Net position of governmental activities in the statement of net position 106,415,505$

CITY OF COLUMBIA, SOUTH CAROLINA RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS

TO THE STATEMENT OF NET POSITION

June 30, 2015

See accompanying Notes to Financial Statements.

General Fund County Services

Other Governmental

Funds

Total Governmental

Funds REVENUES General property taxes 50,563,321$ -$ -$ 50,563,321$ Sales, hospitality and admission taxes 90,899 - 12,535,520 12,626,419 Licenses and permits 37,837,446 - - 37,837,446 Intergovernmental revenue 15,682,389 - - 15,682,389 Charges for services 12,553,980 - 68,974 12,622,954 Fines and forfeitures 1,033,384 - 203,769 1,237,153 Federal government - - 3,434,392 3,434,392 State government - - 3,381,680 3,381,680 County government - 19,045,714 6,606,436 25,652,150 Promotions 78,322 - 43,606 121,928 Confiscated funds - - 279,147 279,147 Interest 147,133 - 16,133 163,266 Other revenues 200,567 - 1,537,641 1,738,208

Total revenues 118,187,441 19,045,714 28,107,298 165,340,453

EXPENDITURES Current

General government 6,865,829 - 318,772 7,184,601 Judicial 2,539,958 - - 2,539,958 Finance department 1,779,283 - - 1,779,283 Planning and development 3,228,917 - - 3,228,917 Public safety 56,018,445 21,430,128 892,387 78,340,960 Parks and recreation 10,525,782 - - 10,525,782 Public services 16,257,427 - 700,962 16,958,389 General services 4,680,453 - - 4,680,453 Community promotion 613,031 - 12,796,831 13,409,862 Non departmental 2,279,518 - - 2,279,518

Debt service Principal payment on bonds 936,791 - 8,390,000 9,326,791 Interest on bonds 910,452 - 2,262,394 3,172,846 Fiscal agent charges - - 5,461 5,461 Debt issuance costs - - 904,310 904,310

Capital outlay Capital outlay 8,512,817 24,289 11,970,019 20,507,125

Total expenditures 115,148,703 21,454,417 38,241,136 174,844,256

Excess (deficiency) of revenues over (under) expenditures 3,038,738 (2,408,703) (10,133,838) (9,503,803)

OTHER FINANCING SOURCES (USES Transfers in 14,341,918 - 16,184,915 30,526,833 Transfers (out) (17,367,879) (689,832) (11,869,240) (29,926,951) Sale of general capital assets 386,636 - - 386,636 Issuance of capital leases 7,000,000 - - 7,000,000 Issuance of debt - - 26,175,000 26,175,000 Premium on debt issuance - - 3,747,839 3,747,839

Total other financing sources (uses) 4,360,675 (689,832) 34,238,514 37,909,357

Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses 7,399,413 (3,098,535) 24,104,676 28,405,554

Beginning fund balances 28,994,327 2,146,806 41,238,499 72,379,632

Ending fund balances 36,393,740$ (951,729)$ 65,343,175$ 100,785,186$

CITY OF COLUMBIA, SOUTH CAROLINA STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

GOVERNMENTAL FUNDS

Year Ended June 30, 2015

See accompanying Notes to Financial Statements.

Net change in fund balances - total governmental funds 28,405,554$

Amounts reported for governmental activities in the statement of activities are different because:

Governmental funds report outlays for capital assets as expenditures because such outlays use current financial resources. In contrast, the statement of activities reports only a portion of the outlay as expense. The outlay is allocated over the assets' estimated useful lives as depreciation expense for the period.

Capital asset purchases capitalized 20,507,125$ Depreciation expense (12,813,591) 7,693,534

The net effect of various miscellaneous transactions involving capital assets (i.e., sales and disposals) is to decrease net position.

Disposition of capital assets -$ Proceeds from the sale of capital assets (386,636) (386,636)

Internal service funds are used by management to charge costs of certain activities to individual funds. The net loss of the internal service funds is included in governmental activities in the statement of activities. (35,481)

Donations of capital assets increase net assets in the statement of activities, but do not appear in the governmental fund statements because they are not financial resources. 2,134,035

Governmental funds do not present revenues that are not available to pay current obligations. In contrast, such revenues are reported in the statement of activities when earned.

Collections on capital lease receivable (540,000)$ Property taxes (12,802) (552,802)

Governmental funds report bond proceeds as current financial resources. In contrast, the statement of activities treats such issuance of debt as a liability. Governmental funds report repayment of bond principal as an expenditure. In contrast, the statement of activities treats such repayment as a reduction in long-term liabilities. This is the amount by which proceeds exceeded repayments.

Proceeds from bonds payable issued (26,175,000)$ Proceeds from bond premium (3,747,839) Proceeds from capital lease issued (7,000,000) Principal retirement of long-term debt 9,326,791 Amortization of premium (192,256) Amortization of bond refunding deferred charge (239,342) (28,027,646)

Some expenses reported in the statement of activities do not require the use of current financial resources, and these are not reported as expenditures in governmental funds:

Accrued compensated absences (120,945)$ Pension expense (942,243) Accrued interest payable 499,603 (563,585)

Eliminations in the consolidation of internal service funds resulted in a net increase in expenses for the business-type activities in the statement of activities. 2,313,226

Change in net position of governmental activities 10,980,199$

CITY OF COLUMBIA, SOUTH CAROLINA RECONCILIATION OF THE STATEMENT OF REVENUES,

TO THE STATEMENT OF ACTIVITIES

Year Ended June 30, 2015

EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS

See accompanying Notes to Financial Statements.

Governmental Activities

Water/Sewer Parking Nonmajor Internal Facilities Facilities Proprietary Service

Fund Fund Funds Total Funds ASSETS Current Assets

Cash and cash equivalents 164,955,106$ 8,754,044$ 20,884,333$ 194,593,483$ 65,172,688$ Investments 76,914,168 4,233,564 5,679,240 86,826,972 - Accounts receivable, net 8,121,162 144,779 123,743 8,389,684 340,302 Mortgage notes receivable, net 107,787 - 420,471 528,258 - Accrued interest receivable 133,902 15,204 11,626 160,732 - Due from other funds 1,912,047 - - 1,912,047 - Due from component units 500,000 - 370,168 870,168 - Inventory 2,416,171 125,711 - 2,541,882 686,763 Prepaid expenses 83,505 1,679 9,286 94,470 186,431 Real estate held for resale - - 84,810 84,810 -

Total current assets 255,143,848 13,274,981 27,583,677 296,002,506 66,386,184

Noncurrent Assets Mortgage notes receivable, net 323,363 - 20,603,101 20,926,464 - Investments 38,206,800 638,536 - 38,845,336 - Cash on deposit with escrow agent 1,300,296 - - 1,300,296 - Deposits - - - - 78,745 Prepaid bond insurance costs - 396,577 - 396,577 - Advances to other funds 1,150,042 - - 1,150,042 - Capital assets

Land 13,973,101 15,845,287 346,178 30,164,566 - Buildings, improvements

and utility plant 943,205,072 56,779,279 29,640,545 1,029,624,896 903,586 Machinery and equipment 68,531,307 1,436,404 3,570,322 73,538,033 1,823,019 Less accumulated depreciation (379,928,393) (16,720,083) (8,454,827) (405,103,303) (1,514,101) Construction in progress 84,926,451 464,563 2,910,068 88,301,082 -

Net capital assets 730,707,538 57,805,450 28,012,286 816,525,274 1,212,504

Total noncurrent assets 771,688,039 58,840,563 48,615,387 879,143,989 1,291,249

TOTAL ASSETS 1,026,831,887 72,115,544 76,199,064 1,175,146,495 67,677,433

DEFERRED OUTFLOWS OF RESOURCES Deferred charge on refunding 7,107,890 - - 7,107,890 - Deferred outflows related to

net pension liability 3,332,846 250,728 289,758 3,873,332 399,024 Accumulated decrease in fair value of

hedging derivatives 26,884,816 - - 26,884,816 -

TOTAL DEFERRED OUTFLOWS OF RESOURCES 37,325,552 250,728 289,758 37,866,038 399,024

TOTAL ASSETS AND DEFERRED OUTFLOWS OF RESOURCES 1,064,157,439$ 72,366,272$ 76,488,822$ 1,213,012,533$ 68,076,457$

CITY OF COLUMBIA, SOUTH CAROLINA STATEMENT OF FUND NET POSITION

PROPRIETARY FUNDS June 30, 2015

Business-type Activities

(Continued)

Governmental Activities

Water/Sewer Parking Nonmajor Internal Facilities Facilities Proprietary Service

Fund Fund Funds Total Funds LIABILITIES, DEFERRED INFLOWS

AND FUND NET POSITION Current Liabilities

Accounts payable 13,640,079$ 111,230$ 521,022$ 14,272,331$ 2,884,014$ Accrued salaries and benefits 1,120,233 79,402 112,290 1,311,925 129,688 Compensated absences 314,793 22,556 18,329 355,678 48,493 Retainage payable 3,882,653 - 164,102 4,046,755 - Accrued interest payable 8,353,931 727,672 - 9,081,603 - Revenue bonds payable 8,385,000 1,065,000 - 9,450,000 - Due to other funds - - - - 1,202,351 Deposits payable 29,500 - - 29,500 - Accrued liability for claims 23,600 - - 23,600 16,225,389

Total current liabilities 35,749,789 2,005,860 815,743 38,571,392 20,489,935

Noncurrent Liabilities Compensated absences 1,259,171 90,226 73,315 1,422,712 193,966 Net pension liability 34,910,568 2,626,300 3,036,838 40,573,706 4,179,660 OPEB liability - - - - 52,098,105 Revenue bonds payable - net 443,628,795 40,657,103 - 484,285,898 - Derivative instrument liability - interest

rate swap 26,884,816 - - 26,884,816 - Unearned revenue 1,302,696 - - 1,302,696 -

Total noncurrent liabilities 507,986,046 43,373,629 3,110,153 554,469,828 56,471,731

Total liabilities 543,735,835 45,379,489 3,925,896 593,041,220 76,961,666

DEFERRED INFLOWS OF RESOURCES

Deferred inflows related to

net pension liability 3,345,098 251,650 290,824 3,887,572 400,491

Fund Net Position Net investment in capital assets 324,008,433 16,721,883 28,012,286 368,742,602 1,212,504 Restricted for debt service 9,352,281 - - 9,352,281 - Unrestricted 183,715,792 10,013,250 44,259,816 237,988,858 (10,498,204)

Total fund net position 517,076,506 26,735,133 72,272,102 616,083,741 (9,285,700)

TOTAL LIABILITIES, DEFERRED INFLOWS AND FUND NET POSITION 1,064,157,439$ 72,366,272$ 76,488,822$ 68,076,457$

Adjustment to report the cumulative internal balance for the net effect of the activity between the internal service funds and the enterprise funds over time (13,016,117)

Net position of business-type activities 603,067,624$

STATEMENT OF FUND NET POSITION PROPRIETARY FUNDS (CONTINUED)

June 30, 2015

Business-type Activities

CITY OF COLUMBIA, SOUTH CAROLINA

See accompanying Notes to Financial Statements

Governmental Activities

Water/Sewer Parking Nonmajor Internal Facilities Facilities Proprietary Service

Fund Fund Funds Total Funds Operating revenues

Charges for service 117,776,372$ 5,167,253$ 10,603,345$ 133,546,970$ 45,885,139$ Other operating revenue 402,151 1,872,912 750,020 3,025,083 -

Total operating revenues 118,178,523 7,040,165 11,353,365 136,572,053 45,885,139

Operating expenses Personnel services 31,562,122 2,357,244 2,980,977 36,900,343 3,809,195 Materials and supplies 9,864,982 234,365 273,651 10,372,998 8,709,817 Other services and charges 18,761,782 658,682 3,670,403 23,090,867 5,316,098 Heat, light and power 6,916,836 326,287 - 7,243,123 51,462 Depreciation 30,928,260 1,505,756 1,113,515 33,547,531 254,601 Claims and premiums - - - - 36,076,912 Bad debt expense - - 468,660 468,660 -

Total operating expenses 98,033,982 5,082,334 8,507,206 111,623,522 54,218,085

Operating income (loss) 20,144,541 1,957,831 2,846,159 24,948,531 (8,332,946)

Nonoperating revenues (expenses) Investment income (loss) 1,059,323 77,005 90,231 1,226,559 - Other nonoperating revenue 160,906 106,800 500,000 767,706 - Gain (loss) from sale of assets (1,501,276) 3,690 100,076 (1,397,510) 7,490 Interest expense (9,828,911) (1,988,663) - (11,817,574) - Bond related costs (22,175) (401,734) - (423,909) - Amortization of deferred charges (563,534) (25,932) - (589,466) -

Total nonoperating revenues (expenses) (10,695,667) (2,228,834) 690,307 (12,234,194) 7,490

Income (loss) before contributions and transfers 9,448,874 (271,003) 3,536,466 12,714,337 (8,325,456)

Capital contributions and transfers Transfers in 1,295 - 1,098,236 1,099,531 9,114,754 Transfers out (8,831,372) (322,586) (835,430) (9,989,388) (824,779) Development contributions 3,872,664 - - 3,872,664 -

Total capital contributions and transfers (4,957,413) (322,586) 262,806 (5,017,193) 8,289,975

Change in net position 4,491,461 (593,589) 3,799,272 7,697,144 (35,481)

Net position - beginning as previously reported 547,211,538 29,933,650 71,483,271 (5,104,570)

Restatement (Note VII. C.) (34,626,493) (2,604,928) (3,010,441) (4,145,649) Net position - beginning as restated 512,585,045 27,328,722 68,472,830 (9,250,219)

Net position - ending 517,076,506$ 26,735,133$ 72,272,102$ (9,285,700)$

Adjustment for the net effect of the current year activity between the internal service funds and the enterprise funds (2,313,226)

Change in net position of business-type activities 5,383,918$

CITY OF COLUMBIA, SOUTH CAROLINA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION

PROPRIETARY FUNDS

Year Ended June 30, 2015

Business-type Activities

See accompanying Notes to Financial Statements.

Governmental Activities

Water/Sewer Parking Nonmajor Internal Facilities Facilities Proprietary Service

Fund Fund Funds Total Funds Cash Flows From Operating Activities

Receipts from customers and users 117,390,686$ 6,936,723$ 11,608,616$ 135,936,025$ 1,855,629$ Internal activity - receipts from other funds - - - - 43,999,121 Internal activity - payments to other funds (9,439,713) (600,430) (804,489) (10,844,632) (611,417) Payments to suppliers (28,735,622) (1,311,608) (3,793,056) (33,840,286) (10,468,807) Claims paid - - - - (35,258,588) Payments to employees (25,040,406) (1,849,765) (2,472,098) (29,362,269) (2,399,173)

Net cash provided by (used in) operating activities 54,174,945 3,174,920 4,538,973 61,888,838 (2,883,235)

Cash Flows From Noncapital Financing Activities

Advances to other funds - - (7,000,000) (7,000,000) (177,087) Advances from other funds 2,586,575 - 1,665 2,588,240 7,000,000 Transfers in 1,295 - 1,098,236 1,099,531 9,114,754 Transfers out (8,831,372) (322,586) (835,430) (9,989,388) (824,779)

Net cash provided by (used in) noncapital financing activities (6,243,502) (322,586) (6,735,529) (13,301,617) 15,112,888

Cash Flows From Capital And Related Financing Activities

Principal paid on bonds and notes (8,095,000) (13,720,000) - (21,815,000) - Interest paid on debt (20,341,385) (2,147,933) - (22,489,318) - Proceeds from capital debt - 12,210,000 - 12,210,000 - Purchase of capital assets (55,065,380) (460,163) (4,204,077) (59,729,620) (14,614) Bond related costs (22,175) (401,734) - (423,909) - Proceeds from sale of capital assets 206,853 3,690 100,076 310,619 7,490

Net cash provided by (used in) capital and related financing activities (83,317,087) (4,516,140) (4,104,001) (91,937,228) (7,124)

Cash Flows From Investing Activities Sale of investments 56,691,689 1,490,701 333,795 58,516,185 - Receipts from property rentals 160,906 106,800 - 267,706 - Advances of mortgage notes receivable (156,750) - (3,153,894) (3,310,644) - Collections of mortgage notes receivable 271,572 - 8,476,790 8,748,362 - Interest received 1,065,024 77,530 89,812 1,232,366 -

Net cash provided by (used in) investing activities 58,032,441 1,675,031 5,746,503 65,453,975 -

Net increase (decrease) in cash and cash equivalents 22,646,797 11,225 (554,054) 22,103,968 12,222,529

Cash and cash equivalents, July 1, 2014 143,608,605 8,742,819 21,438,387 173,789,811 52,950,159

Cash and cash equivalents, June 30, 2015 166,255,402$ 8,754,044$ 20,884,333$ 195,893,779$ 65,172,688$

CITY OF COLUMBIA, SOUTH CAROLINA STATEMENT OF CASH FLOWS

PROPRIETARY FUNDS

Year Ended June 30, 2015

Business-type Activities

(Continued)

Governmental Activities

Water/Sewer Parking Nonmajor Internal Facilities Facilities Proprietary Service

Fund Fund Funds Total Funds Reconciliation of operating income (loss) to net cash provided by (used in) operating activities

Operating income (loss) 20,144,541$ 1,957,831$ 2,846,159$ 24,948,531$ (8,332,946)$

Adjustments to reconcile operating income to net cash provided by (used in) operating activities:

Depreciation 30,928,260 1,505,756 1,113,515 33,547,531 254,601 Accrued benefits related to net pension liability 304,772 30,929 39,556 375,257 35,478 Bad debt expense - - 468,660 468,660 - Change in operating assets and liabilities

Accounts receivable (787,837) (103,442) 255,251 (636,028) (30,389) Inventory 114,947 14,203 - 129,150 (13,736) Prepaid expenses (1,791) 3,406 510 2,125 (79,130) Accounts payable 2,129,782 (249,375) (179,400) 1,701,007 927,448 Accrued salaries 80,449 6,983 (3,665) 83,767 2,510 Accrued compensated absences (78,314) 8,629 (1,613) (71,298) 49,204 OPEB liability - - - - 3,485,401 Accrued expenses 1,340,136 - - 1,340,136 - Accrued liability for claims - - - - 818,324

Total adjustments 34,030,404 1,217,089 1,692,814 36,940,307 5,449,711

Net cash provided by (used in) operating activities 54,174,945$ 3,174,920$ 4,538,973$ 61,888,838$ (2,883,235)$

Noncash Investing, Capital and Financing Activities

Water and sewer contributed assets 3,872,664$ -$ -$ 3,872,664$ -$

CITY OF COLUMBIA, SOUTH CAROLINA STATEMENT OF CASH FLOWS

PROPRIETARY FUNDS (CONTINUED)

Year Ended June 30, 2015

Business-type Activities

See accompanying Notes to Financial Statements.

Private- Purpose Agency

Trust Funds Funds

ASSETS

Cash and cash equivalents 16,099$ 33,728$

Total assets 16,099 33,728$

LIABILITIES

Accounts payable - 33,728$

Total liabilities - 33,728$

NET POSITION

Held in trust - other purposes 16,099$

CITY OF COLUMBIA, SOUTH CAROLINA STATEMENT OF FIDUCIARY NET POSITION

FIDUCIARY FUNDS

June 30, 2015

See accompanying Notes to Financial Statements.

Private- Purpose

Trust Funds

ADDITIONS Contributions:

Private donations 30,899$ Total contributions 30,899

DEDUCTIONS Administrative expenses 27,233

Total deductions 27,233

Change in net position 3,666

Net position - beginning 12,433

Net position - ending 16,099$

CITY OF COLUMBIA, SOUTH CAROLINA STATEMENT OF CHANGES IN FIDUCIARY NET POSITION

FIDUCIARY FUNDS

Year Ended June 30, 2015

See accompanying Notes to Financial Statements.

Midlands Columbia Authority for

Columbia Housing Eau Claire Conventions, TN Columbia Development Development Development Sports, and Development Empowerment Corporation Corporation Corporation Tourism Corporation Zone, Inc. Total

ASSETS

Current Assets Cash and cash equivalents 466,330$ 204,489$ 352,535$ 4,416,096$ 1,054,013$ 1,361,583$ 7,855,046$ Certificates of deposit 200,000 100,000 100,000 - 100,000 - 500,000 Due from primary government - - - 825,000 - - 825,000 Accounts receivable, net 590 2,398 1,581 356,870 42,123 8,674 412,236 Accrued interest receivable - - - - - 42,370 42,370 Mortgage notes receivable,

current portion 1,203,450 46,000 - - - 89,784 1,339,234 Prepaid expenses 5,837 2,937 4,672 188,980 21,195 4,520 228,141

Restricted Assets Real estate held for sale

and development - 473,856 38,245 - - - 512,101

Total current assets 1,876,207 829,680 497,033 5,786,946 1,217,331 1,506,931 11,714,128

Capital Assets Capital assets, not being

depreciated - 92,835 58,000 - 729,147 1,895,077 2,775,059 Capital assets, net of

accumulated depreciation 6,186 696,097 290,931 810,906 3,045,677 2,115,975 6,965,772

Net capital assets 6,186 788,932 348,931 810,906 3,774,824 4,011,052 9,740,831

Other Assets Mortgage note receivable,

net of allowance 6,833 615,656 - - - 1,935,768 2,558,257 Real estate held for

sale and development 975,991 924,692 504,186 - 743,277 - 3,148,146 Organizational costs - - - - - 5,106 5,106 Security deposits - 3,000 - 2,500 - - 5,500 Cash on deposit with

escrow agent 50,000 - - 10,615,783 - 12,964 10,678,747

Total other assets 1,032,824 1,543,348 504,186 10,618,283 743,277 1,953,838 16,395,756

TOTAL ASSETS 2,915,217$ 3,161,960$ 1,350,150$ 17,216,135$ 5,735,432$ 7,471,821$ 37,850,715$

CITY OF COLUMBIA, SOUTH CAROLINA COMBINING STATEMENT OF NET POSITION -

BUSINESS-TYPE ACTIVITY DISCRETELY PRESENTED COMPONENT UNITS

June 30, 2015

(Continued)

Midlands Columbia Authority for

Columbia Housing Eau Claire Conventions, TN Columbia Development Development Development Sports, and Development Empowerment Corporation Corporation Corporation Tourism Corporation Zone, Inc. Total

LIABILITIES

Current Liabilities Accounts payable 4,998$ 4,071$ 8,346$ 551,104$ 27,346$ 27,168$ 623,033$ Accrued expenses 22,037 35,604 8,888 363,772 54,639 5,980 490,920 Customer deposits - 4,363 1,375 - 42,158 13,514 61,410 Due to primary government 200,000 100,000 105,995 - 100,000 - 505,995 Due to related party - 406 - - - - 406 Compensated absences 6,757 4,026 1,806 190,811 6,089 2,923 212,412 Mortgage/bonds/notes payable/

lines of credit - current portion - - 948,984 - 128,354 - 1,077,338 Unearned revenue - 152,856 500 741,688 62,054 3,175 960,273

Liabilities payable from restricted assets

Due to primary government - 364,173 - - - - 364,173

Total current liabilities 233,792 665,499 1,075,894 1,847,375 420,640 52,760 4,295,960

Noncurrent Liabilities Compensated absences 27,026 16,104 7,225 - 24,356 11,693 86,404 Mortgage/bonds/lines of credit

payable 201,644 1,029,170 - - 3,909,571 - 5,140,385

Total noncurrent liabilities 228,670 1,045,274 7,225 - 3,933,927 11,693 5,226,789

TOTAL LIABILITIES 462,462 1,710,773 1,083,119 1,847,375 4,354,567 64,453 9,522,749

Net Position Net investment in capital assets 6,186 - 48,931 810,906 - 4,011,052 4,877,075 Restricted

Coummunity development - 604,431 - - - - 604,431 Tourism - - - 10,245,283 - - 10,245,283

Unrestricted 2,446,569 846,756 218,100 4,312,571 1,380,865 3,396,316 12,601,177

Total net position 2,452,755 1,451,187 267,031 15,368,760 1,380,865 7,407,368 28,327,966

TOTAL LIABILITIES AND NET POSITION 2,915,217$ 3,161,960$ 1,350,150$ 17,216,135$ 5,735,432$ 7,471,821$ 37,850,715$

CITY OF COLUMBIA, SOUTH CAROLINA COMBINING STATEMENT OF NET POSITION -

BUSINESS-TYPE ACTIVITY DISCRETELY PRESENTED COMPONENT UNITS (CONTINUED)

June 30, 2015

See accompanying Notes to Financial Statements.

Midlands Columbia Authority for

Operating Capital Columbia Housing Eau Claire Conventions, TN Columbia Charges for Grants and Grants and Development Development Development Sports, and Development Empowerment

Expenses Services Contributions Contributions Corporation Corporation Corporation Tourism Corporation Zone, Inc. Totals

Columbia Development Corporation

Community Development 491,616$ 7,353$ 730,345$ -$ 246,082$ -$ -$ -$ -$ -$ 246,082$

Columbia Housing Development Corporation

Community Development 444,409 72,319 60,000 - - (312,090) - - - - (312,090)

Eau Claire Development Corporation

Community Development 360,636 37,554 - 10,075 - - (313,007) - - - (313,007)

Midlands Authority for Convention, Sports, and

Tourism Community Promotions 8,354,319 3,245,990 8,006,761 - - - - 2,898,432 - - 2,898,432

TN Development Corporation Community Development 1,333,291 985,074 98,147 - - - - - (250,070) - (250,070)

Columbia Empowerment Zone, Inc. Community Development 493,438 271,898 - - - - - - - (221,540) (221,540)

Total component units 11,477,709$ 4,620,188$ 8,895,253$ 10,075$ 246,082 (312,090) (313,007) 2,898,432 (250,070) (221,540) 2,047,807

General revenues: Appropriations - City of Columbia 321,202 222,700 279,726 - 410,550 152,160 1,386,338 Investment earnings 77,286 4,959 210 17,966 - - 100,421 Gain (loss) from disposal of capital assets - - - - - 3,800 3,800

Total general revenues 398,488 227,659 279,936 17,966 410,550 155,960 1,490,559

Change in net position 644,570 (84,431) (33,071) 2,916,398 160,480 (65,580) 3,538,366 Net position - beginning 1,808,185 1,535,618 300,102 12,452,362 1,220,385 7,472,948 24,789,600

Net position - ending 2,452,755$ 1,451,187$ 267,031$ 15,368,760$ 1,380,865$ 7,407,368$ 28,327,966$

Program Revenue Changes in Net Position Net (Expense) Revenues and

Year Ended June 30, 2015

CITY OF COLUMBIA, SOUTH CAROLINA COMBINING STATEMENT OF ACTIVITIES -

BUSINESS-TYPE ACTIVITY DISCRETELY PRESENTED COMPONENT UNITS

See accompanying Notes to Financial Statements.

INDEX TO NOTES TO FINANCIAL STATEMENTS

CITY OF COLUMBIA, SOUTH CAROLINA Index to Notes to Financial Statements

Year Ended June 30, 2015

INDEX

Note Page

I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A. Reporting Entity 45

B. Basis of Presentation 47

C. Measurement Focus and Basis of Accounting 51

D. Assets, Liabilities, and Deferred Outflows/Inflows of Resources 52

E. Revenues, Expenditures, and Expenses 56

F. Fund Balance 57

G. Net Position 60

II. STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY

A. Budgetary Information 60

B. Deficit Fund Equity 60

C. Risk Management 61

III. DETAIL NOTES ON ALL ACTIVITIES AND FUNDS

A. Deposits and Investments 62

B. Receivables 63

C. Mortgage Notes Receivable and Revolving Loan Pools 64

D. Interfund Receivables, Payables, and Transfers 64

E. Operating Leases 65

F. Capital Assets 66

G. Other Postemployment Benefits 69

H. Long-Term Obligations 72

IV. PENSION PLANS 79

CITY OF COLUMBIA, SOUTH CAROLINA Index to Notes to Financial Statements

Year Ended June 30, 2015

INDEX

Note Page

V. INTEREST RATE SWAP AGREEMENTS 87

VI. COMMITMENTS AND CONTINGENCIES

A. Federal Grants 91

B. Consent Decree 91

C. Litigation 91

D. Development Agreement 91

VII. OTHER INFORMATION

A. Subsequent Events 92

B. Pending Implementation of GASB Statements 92

C. Change in Accounting Principles and Other Restatements 93

CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS

June 30, 2015

I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The City of Columbia (the City), a political subdivision of the State of South Carolina, incorporated in 1854, is located in the central part of South Carolina. Columbia is the state capital as well as the county seat of Richland County. The City has an estimated population of approximately 132,000 living within an area of 134.94 square miles. The Greater Columbia Metropolitan Area consists of Lexington and Richland Counties and has an estimated population of 785,000. The City’s economy is driven by education, government, military, finance, and industry. In 1950, the City approved a charter adopting a Council-Manager form of government and is governed by a six member council and Mayor. The financial statements of the City have been prepared in accordance with Generally Accepted Accounting Principles (GAAP) as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the standard-setting body for governmental accounting and financial reporting. The more significant of these accounting policies are described below. A. REPORTING ENTITY

The basic financial statements of the City present the reporting entity that consists of the primary government and those organizations for which the primary government is financially accountable and for which the nature and significance of their relationship with the primary government are such that exclusion could cause the City’s financial statements to be misleading or incomplete. As required by GAAP, the financial statements of the City must present the City’s financial information along with its component units. The primary criterion for determining inclusion or exclusion of a legally separate entity (component unit) is financial accountability, which is presumed to exist if the City both appoints a voting majority of the entity’s governing body, and either 1) the City is able to impose its will on the entity or, 2) there is a potential for the entity to provide specific financial benefits to or impose specific financial burdens on the City. In order to be considered fiscally independent, an entity must have the authority to do all of the following: (a) determine its budget without the City having the authority to approve or modify that budget; (b) levy taxes or set rates or charges without approval by the City; and (c) the City is obligated in some manner for the debt of the entity. Finally, an entity could be a component unit even if it met all the conditions described above if excluding it would cause the City’s financial statements to be misleading. Blended component units, although legally separate entities, are in substance part of the government’s operations, and data from these units are combined with the data of the primary government in the fund financial statements. Discretely presented component units, on the other hand, are reported in a separate column in the entity-wide financial statements to emphasize they are legally separate from the City. Based on the criteria above, the City has two blended component units and six discretely presented component units. Blended Component Units Public Facilities Corporation This is a single-purpose corporate entity that was formed in 2002 as a non-profit corporation to undertake certain obligations with respect to the acquisition of real and personal property and the design, construction, operation, and financing of a multipurpose conference/convention center and other improvements. Its board is comprised of the City Manager of Columbia, the Assistant City Manager for Development, and the Finance Director or the equivalent thereof. For details of the outstanding debt see Note III. H. The balances of this entity are reported in the Tourism Development Convention Center fund, a nonmajor special revenue fund. The Corporation does not issue separate financial statements.

CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS

June 30, 2015

I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

A. REPORTING ENTITY (Continued) Blended Component Units (Continued) Columbia Parking Facilities Corporation This is a single-purpose entity whose balances are reported in the general fund. The entity was formed during fiscal year 2007 to undertake certain obligations with the University of South Carolina (the University) to build two parking garages. These garages are part of the University’s Innovista project. The Board of Directors is comprised of five members of City Council. For further discussion of this component unit, see Note III. F. The Corporation does not issue separate financial statements. Discretely Presented Component Units Columbia Empowerment Zone, Inc. (CEZ) Incorporated in 2009, the CEZ was formed to carry out the mission of the Columbia Empowerment Zone, Inc., a federally designated area (1999-2009). The purpose of CEZ is to initiate, develop, and maintain projects and programs in economically depressed or blighted areas that encourage the attraction and utilization of both public and private investment capital. The Board of Directors is composed of nine members. New board members are appointed by the existing board. The entity promotes: the fostering of sustainable business; government and community alliances to help lessen the burdens of government; reduction of physical and economic blight; combating community deterioration by fostering business attraction, retention, and expansion in areas in need of permanent job opportunities; workforce advancement and general growth opportunities. Funding for the CEZ is derived from appropriations from the City of Columbia, loan repayments, rental income, and grant funds. The City provides appropriations to support CEZ when it experiences operating deficits that are not financed by other means. Upon dissolution, any remaining assets of CEZ would revert to the City of Columbia. Columbia Development Corporation (CDC) Incorporated in 1980, the CDC was formed to assist the City in promoting and monitoring the growth and development of business concerns through the strengthening of the economic and residential base of the community. The nine-member Board of Directors is composed of three members of City Council, the Mayor, the City Manager, and four members that are appointed by City Council. The Executive Director of the CDC serves as an ex-officio Administrative Secretary. Funding for the CDC is derived from property sales, contributions, and appropriations from the City. Columbia Housing Development Corporation (CHDC) The CHDC, an eleemosynary organization, was formed in 1980 to assist the City in the development of housing and to promote growth in the residential base of the community. The twelve-member Board of Directors is composed of three members of City Council, the Mayor, the City Manager, and seven members that are appointed by City Council. In an ex-officio capacity, city staff serves as the Secretary/Treasurer and the Executive Director. Funding for CHDC is derived from sale of properties, interest income, mortgage receivables, and appropriations from the City. Eau Claire Development Corporation (ECDC) Incorporated in 1993, the ECDC provides assistance in the conservation and redevelopment of neighborhoods located in the Eau Claire area of North Columbia. The nine-member Board of Directors is composed of three City Council members and six members appointed by City Council. Current funding is derived from appropriations from the City of Columbia, grants, sale of properties, and rents.

CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS

June 30, 2015

I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

A. REPORTING ENTITY (Continued) Discretely Presented Component Units (Continued) Midlands Authority for Conventions, Sports, and Tourism (MACST) The MACST, originally incorporated as the Midlands Regional Convention Center in July 2001, was formed to oversee the development of a regional convention center and operate the convention center under a long- term management arrangement for the mutual benefit of the City and Richland and Lexington Counties of South Carolina (the Governmental Entities). The MACST has a nine member board of directors. The City appoints five of the directors. Lexington County and Richland County each appoint two members. The Governmental Entities have pledged their tourism development fees to support this project. However, outside of this pledge of revenues, the City issued the debt to fund this project and is responsible for the ongoing debt payments. The City is also required to fund any operating deficits incurred. The City owns the building where the MACST is located. TN Development Corporation (TNDC) Incorporated in 1993 as an eleemosynary organization, the TNDC was organized to promote growth and develop opportunities for affordable rental housing. The ten-member Board of Directors is composed of three members from City Council and seven members appointed by City Council. Funding for the TNDC is derived from rental income, the State of South Carolina Housing Trust Fund, the Federal Home Loan Bank, HOME Program funds received as a subrecipient through the City, other grants, and appropriations from the City. Complete financial statements of the discretely presented individual Component Units can be requested from the City’s Chief Financial Officer. B. BASIS OF PRESENTATION

GOVERNMENT WIDE FINANCIAL STATEMENTS

The Statement of Net Position and Statement of Activities display information about the non-fiduciary activities of the reporting government as a whole. The statements distinguish between governmental and business-type activities. Governmental activities generally are financed through taxes, inter-governmental revenue, and other nonexchange revenues. Business-type activities are financed in whole or in part by fees charged to external parties for goods or services. The City’s internal service funds are a cost allocation of shared services and are combined with the governmental funds to produce the government wide financial statements. These statements include all funds of the reporting entity except for fiduciary funds. FUND FINANCIAL STATEMENTS The City uses funds to report financial position and the results of operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain government functions or activities. A fund is an independent fiscal and accounting entity with a self-balancing set of accounts. Funds are classified into three categories: Governmental, Proprietary, and Fiduciary as follows: Governmental Fund Types: General Fund The General Fund is the principal operating fund of the City that accounts for all financial resources not accounted for in other funds.

CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS

June 30, 2015

I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

B. BASIS OF PRESENTATION (Continued)

FUND FINANCIAL STATEMENTS (Continued) Special Revenue Funds These funds are used to account for revenue derived from specific taxes, governmental grants, and other revenue sources that are designated to finance particular functions or activities of the City. Special Revenue Funds include:

 County Services (a major fund) – accounts for fire services and 911 emergency communications provided to citizens outside the City limits and the reimbursement for expenditures from Richland County.

 Liquor Permit Fee – accounts for receipts from the sale of temporary permits to allow the possession, sale, and consumption of alcoholic liquors for a period not to exceed 24 hours.

 Business Improvement District – accounts for the Business Improvement District taxes assessed on the businesses in the downtown area of the City to promote downtown beautification.

 Accommodations Tax – accounts for State Hotel Accommodations Tax receipts to promote tourism-related activities of City organizations.

 Confiscated Drug Program – accounts for the disposition of forfeited property and money seized in Columbia by law enforcement agencies.

 Hospitality Tax – accounts for a local 2% gross sales tax on prepared food and beverages sold in establishments to promote tourism-related activities of the City.

 Community Development – accounts for the Community Development Block Grants and other community development type grants.

 Federal Grants – accounts for federal grant funds received except for Community Development Block Grants.

 Other Programs – provides for miscellaneous programs for park improvements and special events.

 Tourism Development Convention Center – accounts for the Tourism Development Fee imposed upon the rental of hotels, motels, and other lodging establishments in the City. This fee is dedicated to the attraction of and improving the services provided to tourists. This fund also accounts for the activities of the Public Facilities Corporation, a blended component unit.

Debt Service Fund This fund accounts for the accumulation of financial resources for the payment of interest and principal on the general long-term debt of the City, other than debt service payments financed by proprietary fund types. Transfers, interest earned on the investments of the Debt Service Fund and, if applicable, interest earned on investments of certain Capital Projects Funds are used for the payment of principal, interest, and fiscal agent expenditures on the City’s general obligation and revenue bonds and bond anticipation notes.

CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS

June 30, 2015

I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

B. BASIS OF PRESENTATION (Continued)

FUND FINANCIAL STATEMENTS (Continued) Capital Projects Funds The Capital Projects Funds account for all capital improvements, except those accounted for in Proprietary Funds, financed by the City’s general obligation bond issues, certain Federal grants, and other specific receipts. These funds include:

 Congaree Vista District – accounts for the construction and development of parks and infrastructure within the Congaree Vista Redevelopment District.

 Streetscaping – accounts for capital improvements to street landscaping.  General Capital Projects – accounts for various capital projects funded by various funds.  Miscellaneous Projects – accounts for various capital projects funded by the General Fund.

Permanent Funds Permanent funds are used to report resources that are legally restricted to the extent that only earnings and not principal may be used for purposes that support the City’s programs. This fund includes:

 Dickson Trust – accounts for trust funds specifically intended for the income to be used for beautification of the parks. The funds are invested in an interest bearing account. The amount invested equals the fair value.

Proprietary Fund Types: Business-type Funds The business-type funds are used to account for operations of the City (a) that are financed and operated in a manner similar to private business where the intent is for the cost of providing goods or services to be recovered, in whole or in part, through user charges; or (b) where City Council has decided that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability or other purposes. These funds include:

 Water/Sewer Facilities Fund (a major fund) -- accounts for water and sewer utility activities.  Parking Facilities Fund (a major fund) -- accounts for parking garage and parking ticket

activities.  Hydro-Electric Facilities Fund -- accounts for hydro-electric plant activities.  Stormwater Facilities Fund -- accounts for stormwater utility activities.  Redevelopment Programs Fund -- accounts for various home rehabilitation and mortgage

lending programs funded from various sources.  Parks and Recreation Camp Fund -- accounts for parks and recreation camp activities.  Economic Development Fund – accounts for economic develop activities.

CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS

June 30, 2015

I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

B. BASIS OF PRESENTATION (Continued)

FUND FINANCIAL STATEMENTS (Continued) Internal Service Funds

Internal Service Funds are used to account for the financing of goods and services provided by one department or agency to other departments or agencies of the City, or to other governments, on a user charge basis. These nonmajor funds include:

 Fleet Management -- accounts for the maintenance and repair of movable vehicles.  Support Services -- accounts for a decentralized business-type inventory system, a central

supply facility, procurement functions, and the City's general maintenance functions.  Risk Management -- accounts for the costs associated with self-funded liability plans for

employee health, worker's compensation, and tort liability for all City departments.

Fiduciary Funds Types (Not included in government-wide statements): Transactions related to assets held by the City as an agent of a private organization are accounted for in Fiduciary Fund types. These are presented separately in the statements. The City's fiduciary fund types are comprised of: Agency Fund This fund is used to account for assets held by the City as an agent and does not involve measurement of results of operations.

Private-Purpose Trust Funds These funds are used to account for assets held by the City as a trustee capacity under which principal and income benefit individuals, private organizations, or other governments. Major Funds

The City reports the following major governmental funds:

 The General Fund is the City’s primary operating fund. It accounts for all financial resources

of the general government, except those required to be accounted for in another fund.  The County Services Fund accounts for fire services and 911 emergency communication

services provided to citizens outside the City limits and the reimbursement for expenditures from Richland County.

The City reports the following major proprietary funds:

 The Water and Sewer Facilities Fund accounts for the activities of the water and sewer

facilities.  The Parking Facilities Fund accounts for the activities of the parking facilities.

CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS

June 30, 2015

I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) C. MEASUREMENT FOCUS AND BASIS OF ACCOUNTING

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 City. Governmental activities, which are normally supported by taxes and intergovernmental revenues, are reported separately from business-type activities which rely to a significant extent on fees and charges for support. The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting as are the proprietary funds and 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 revenue as soon as all eligibility requirements imposed by the provider have been met. The government-wide statements are prepared using a different measurement focus from the manner in which governmental fund financial statements are prepared (see below for further detail). Governmental fund financial statements, therefore, include reconciliations with brief explanations to better identify the relationship between the government wide statements and the statements for governmental funds. The City implemented Governmental Accounting Standards Board Statement No. 68, “Accounting and Financial Reporting for Pensions” (“GASBS 68”) during the year ended June 30, 2015. GASBS 68 establishes accounting and financial reporting standards for measuring and recognizing liabilities, deferred outflows of resources, deferred inflows of resources, and expense/expenditures. For defined benefit plans, this statement also identifies the methods and assumptions that should be used to project benefit payments, discount projected benefit payments to their actuarial present value, and attribute that present value to periods of employee service. The requirements of this statement will improve financial reporting by improving information provided by state and local government employers about financial support for pensions that is provided by other entities. The governmental fund financial statements are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets, and the unassigned fund balance is a measure of available spendable resources. Governmental fund financial statements are reported using the current financial resources measurement focus. All governmental fund types use the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized when they become both measurable and available. "Measurable" means the transaction can be identified, and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Property taxes are considered available if they are collected within 60 days after year end. The City considers revenues available if they are collected within 60 days after year end. Expenditures are recorded when the related fund liability is incurred. However, principal and interest on general long-term debt are recorded as fund liabilities when due or when amounts have been accumulated in the Debt Service Fund for payments to be made early in the following year. Allocations of costs, such as depreciation and amortization, are not recognized in the governmental funds.

CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS

June 30, 2015

I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) C. MEASUREMENT FOCUS AND BASIS OF ACCOUNTING (Continued)

Sales taxes, hospitality taxes, admission taxes, grant funds, charges for services, intergovernmental revenue, and interest associated with the current fiscal period are all considered susceptible to accrual and have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable and available only when cash is received by the City. Refundable advances arise when resources are received by the City before it has a legal claim to them as when grant monies are received prior to the occurrence of the qualifying expenditures. When the revenue recognition criteria are met and the City has a legal claim to the resources, the liability for the advance is removed from the balance sheet and revenue is recognized. Proprietary fund types are accounted for using a flow of economic resources measurement focus and use the accrual basis of accounting. Under this method, revenues are recorded when earned, and expenses are recorded at the time liabilities are incurred. The City has implemented GASB Statement No.62 “Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements,” and thus the City applies all applicable GASB pronouncements. As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are payments-in-lieu of taxes and other charges between the government’s water and sewer function and various other functions of the government. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. The Statement of Activities demonstrates the degree to which direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided; 2) operating grants and contributions restricted to meeting the operational requirements of a particular function or segment; and 3) capital grants and contributions restricted to meeting the capital requirements of a particular function or segment. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. The preparation of financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the balance sheet date and reported amounts of revenues and expenses during the reporting period. Estimates are used to determine depreciation expense, the allowance for doubtful accounts, realizable value of real estate held for sale, impairment of assets, and certain claims and judgment liabilities among other accounts. Actual results could differ from those estimates.

D. ASSETS, LIABILITIES, AND DEFERRED OUTFLOWS/INFLOWS OF RESOURCES

Deposits City procedures require that all unrestricted cash belonging to the City be placed in a "Pooled Cash" account to maintain the cash and investment accounts in the accounting records. Under this method, all cash is pooled for investment purposes, and each fund has equity in the pooled accounts. The City considers cash and cash equivalents (including restricted cash and cash equivalents) 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.

CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS

June 30, 2015

I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. ASSETS, LIABILITIES, AND DEFERRED OUTFLOWS/INFLOWS OF RESOURCES (Continued) Investments In accordance with GASB 31, investments in all funds are stated at fair value. State statutes authorize the City to invest in certificates of deposit, United States Treasury and United States Agency obligations, South Carolina and related political subdivision general obligation bonds, and repurchase agreements collateralized by these obligations. Inventory and Prepaid Assets In the fund financial statements, all governmental City inventories are recorded in the Internal Service Fund at cost or estimated historical cost on a first-in, first-out (FIFO) basis. All proprietary inventories are recorded in the respective fund at cost or estimated historical cost on a first-in, first-out (FIFO) basis. The related expenditures or expenses are recognized when inventories are consumed. Changes in the year-end inventory are reflected in expenses.

Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements.

Real Estate Real estate held for sale and development is recorded at the lower of cost or net realizable value. Mortgage Notes and Notes Receivable and Allowance for Loan Losses Mortgage notes receivable, secured by the financed property, and other notes receivable are recorded in various business-type funds and component units and are stated at unpaid principal balances net of an allowance for loan losses. An allowance for loan losses is increased by estimated uncollectible loans, net of recoveries. Management's periodic evaluation of the adequacy of the allowance is based on past loan loss experiences, known and inherent risks in the portfolio, adverse situations that may affect the borrower's ability to repay the loan, estimated value of any underlying collateral, and current economic conditions. Interest is accrued monthly on notes receivable and stops when the notes go into default. Accounts Receivable and Allowance for Bad Debt Accounts receivable are recorded in various funds and are stated net of their allowance for uncollectible accounts. Interfund Balances Balances between funds that are outstanding at the end of the fiscal year and expected to be repaid within the current period are referred to as “due to/from other funds.” Balances between funds not expected to be repaid within the current period are referred to as “advances to/from other funds.” Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances.” Capital Assets In the government-wide financial statements, capital assets, which include property, plant, and equipment, are reported in the applicable governmental or business-type activities columns. Capital assets 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. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. Interest incurred during the construction phase is reflected in the capitalized value of the asset constructed net of interest earned on the invested proceeds during the same period.

CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS

June 30, 2015

I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

D. ASSETS, LIABILITIES, AND DEFERRED OUTFLOWS/INFLOWS OF RESOURCES (Continued) Capital Assets (Continued) Under the provisions of GASB 34, the City switched from the modified method to the straight-line depreciation method of reporting infrastructure during the year ended June 30, 2006. To determine the historical value of the infrastructure, the City used the information provided by the Department of Utilities and Engineering on streets acquired during fiscal years 2003 through 2006. This information provided the street name and the cost or estimated cost of the street at acquisition. These amounts also included sidewalks, curbs, and gutters adjacent to the street acquired. The City determined the life of the streets to be 20 years using the “Capital Assets of Local Governments Suggested Useful Lives.” Infrastructure assets acquired prior to 1986 would have been fully depreciated and were not considered in this calculation. For those assets acquired between fiscal years 1986 and 2008, the acquisition date is assumed to have been on the last day of the fiscal year. For assets acquired after 2008, the acquisition date is the actual date of purchase. Infrastructure assets acquired during fiscal year 2008 to the present are depreciated from the date of acquisition. In the fund financial statements, capital assets used in governmental fund operations are accounted for as capital outlay expenditures of the governmental fund upon acquisition. Capital assets used in proprietary fund operations are accounted for the same as in the government-wide financial statements. Property, plant, and equipment of the primary government, as well as the component units, are depreciated using the straight-line method over the estimated useful lives as follows:

Improvements 10-50 years Buildings and Utility Plant 15-50 years Infrastructure 20 years Office Furniture and Equipment 5-15 years Machinery 5-12 years

Capital Lease Receivable The City leases two parking garages to the University of South Carolina under a capital lease agreement. The City receives lease payments on the garages in installments equal to the corresponding debt service requirements on the debt used to fund the construction of the garages. Revenue related to the lease receivable is classified as a deferred inflow in the funds until available. Restricted Assets Restricted assets consist of real estate that is held for sale and development. Compensated Absences It is the City's policy to allow employees to accumulate unused vacation and sick leave benefits up to certain maximum hours. Once an employee has completed the probationary period, any accumulated unused vacation and 20% of unused sick leave, as restricted below, are payable upon termination of employment with the City. An employee with service of less than 10 years may receive up to a maximum of two weeks of accrued compensated absences. An employee with service of 10 to 20 years may receive up to a maximum of four weeks, and service of over 20 years may receive a maximum of five weeks. Maximum carryover allowed per employee is 10 weeks of accrued compensated absences. The liability for compensated absences in the government-wide, proprietary, and fiduciary fund financial statements is calculated based upon recorded balances of unused leave for which the City would compensate employees if employment ended June 30, 2015. The change in this calculated amount from the previous year is expensed in current operations. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements.

CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS

June 30, 2015

I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

D. ASSETS, LIABILITIES, AND DEFERRED OUTFLOWS/INFLOWS OF RESOURCES (Continued) Long-Term Obligations In the government-wide financial statements and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net position. Debt is reported net of applicable premiums and discounts on the statement of net position. Bond premiums and discounts are deferred and amortized over the term of the bonds using the straight-line method which does not significantly differ from the effective interest method. Deferred refunding costs are reported as deferred inflows or outflows and recognized as a component of interest expense in a systematic and rational manner over the remaining term of the old debt or the term of the new debt, whichever is shorter. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as refunding costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received in debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Payments to refunded bonds escrow agents are reported as other financing uses to the extent the proceeds from the bond are used to make the payment. Any payment made from funds on hand is reported as an expenditure. Deferred Outflows of Resources In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The City has three items that qualify for reporting in this category. They are the deferred charge on refunding, the deferred outflows related to the net pension liability, and the accumulated decrease in the fair value of hedging derivatives reported in the entity-wide statement of net position and in the statement of net position of the Water and Sewer Facilities fund financial statements. A deferred charge on refunding results from the difference in the carrying value of the refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the term of the refunded or refunding debt. The change in fair value of hedging derivatives results from changes in cash flows and interest rates over the term of the interest rate swap. The deferred outflows related to the net pension liability result from retirement contributions made to the South Carolina Retirement System subsequent to the measurement date, which will be recognized as a reduction of the net pension liability in the subsequent year, and differences between expected and actual experience, which will be amortized into pension expense beginning in the year the deferral occurs over a closed period equal to the average remaining service lives of all plan participants. Deferred Inflows of Resources In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City has three types of items that qualify for reporting in this category. One type, unavailable revenue, arises only under a modified accrual basis of accounting. Accordingly, this type is only reported in the governmental funds balance sheet. The governmental funds report unavailable revenue from two sources - property taxes and capital leases. These amounts are deferred and recognized as an inflow of resources in the periods the amounts become available. The second type is revenue received before time requirements are met, but after all other requirements have been met. In 2006, City residents approved a Local Option Sales Tax referendum. This tax is detailed further in Note I. E. Under state law, the City is required to give the taxpayers a credit on their property tax bill once the referendum is passed. The City recognizes revenue, on both the entity-wide statements and the fund financial statements, in the period in which the credit is given on the property tax bills and for the dollar amount of credit taxpayers are given on their property tax bills. Deferred inflows result when funds are received from the State of South Carolina prior to time requirements being met, but after all other eligibility

CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS

June 30, 2015

I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

D. ASSETS, LIABILITIES, AND DEFERRED OUTFLOWS/INFLOWS OF RESOURCES (Continued) requirements are met. During the current year the City also received funds relating to a property sale prior to all time requirements being met. The third type is deferred inflows relating to pension obligations and is the net difference between the projected and actual earnings on pension plan investments and is amortized over a closed five year period.

E. REVENUES, EXPENDITURES AND EXPENSES

Property Tax Revenues Real property and business personal property taxes, excluding automobile property taxes, become enforceable liens as of January 1. Real property taxes are levied in November and are payable immediately, but can be paid without penalty before January 16. Automobile property taxes are levied throughout the year depending on vehicle tag expiration dates. Business personal property taxes are levied in September and are payable by January 15. Property taxes are assessed and collected by Richland and Lexington Counties under a joint billing and collection agreement. The City collects property taxes assessed in Richland and Lexington Counties on property annexed into Columbia. Penalties and charges are assessed if taxes are not paid by the following dates:

January 16 through February 1 - 3% penalty for tax due February 2 through March 16 - 10% penalty for tax due March 17 through April 30 - 15% penalty for tax due plus costs May 1 through July 31 - $30 additional execution cost plus previous penalties and costs After July 31 - $50 additional execution cost plus previous penalties and costs Unpaid taxes after one year - Property is sold at the annual tax sale in December

The City does not receive any penalty amount or costs on delinquent taxes collected by Richland County. Assessed values are established by the Richland County Tax Assessor, the Lexington County Tax Assessor, and the South Carolina Department of Revenue. The City’s operating tax rate is currently 98.1 mills. Amounts received by Richland County and Lexington County, but not remitted to the City at year end, are included in Property Taxes Receivable on the Statement of Net Position and the Balance Sheet. That portion, if any, of General Fund property taxes allocated for payment of debt service is transferred to the Debt Service Fund. Local Option Sales Tax Revenue The City incorporated a Local Option Sales Tax during the year ended June 30, 2006, of 1% to offset a reduction in property taxes. In the governmental fund financial statements, this revenue is included in the general fund property tax revenue. On the government wide financial statements, this revenue is reported as general revenue separate from general property taxes. The tax generated approximately $17.1 million during the year ended June 30, 2015. There was a cap placed on the tax in order to prevent a windfall effect of taxes collected. This “cap” created deferred inflows of resources of approximately $3.2 million in the General Fund and Statement of Net Position as of June 30, 2015. Investment Income The City has a policy of allocating interest income on pooled cash and investments to appropriate funds on an annual basis. The allocation is based on a percentage of the fund's month-end balance in pooled cash and investments to the total month-end balance in cash and investments. Grant Revenue Revenues from grants are recognized when qualifying expenditures are made and all grant requirements have been met. Cash received by the City prior to the City incurring qualifying expenditures is recorded as a refundable advance on the balance sheet or statement of net position as applicable.

CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS

June 30, 2015

I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

E. REVENUES, EXPENDITURES AND EXPENSES (Continued) Operating and Nonoperating Revenues and Expenses Proprietary and internal service funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a fund’s principal ongoing operations. The principal operating revenues of the water/sewer facilities fund and the parking facilities fund are charges to customers for sales and services. Operating revenues for internal service funds consist of charges to other funds for the services being provided by the internal service funds. Operating expenses for business-type funds and internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. Expenditures/Expenses In the government-wide financial statements, expenses are classified by function for both governmental and business-type activities. In the fund financial statements, expenditures are classified as follows:

Governmental Funds – By Characteristic: Current (further classified by function) Debt Service Capital Outlay

Proprietary Funds – By Operating and Nonoperating

In the fund financial statements, governmental funds report expenditures of financial resources. Proprietary funds report expenses relating to use of economic resources. Pensions For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions and pension expense, information about the fiduciary net position of the South Carolina Retirement System (SCRS) and the Police Officers Retirement System (PORS), and additions to/deductions from SCRS’s and PORS’s fiduciary net position have been determined on the same basis as they are reported by SCRS and PORS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. Interfund transfers Permanent reallocations of resources between funds of the reporting entity are classified as interfund transfers. For the purposes of the Statement of Activities, all interfund transfers between individual governmental funds have been eliminated. F. FUND BALANCE

The City has implemented GASB Statement No. 54, “Fund Balance Reporting and Governmental Fund Type Definitions.” The objective of this statement is to enhance the usefulness of fund balance information by providing clearer fund balance classifications that can be more consistently applied and by clarifying the existing governmental fund type definitions. The following categories of fund balance are used in the fund level financial statements of the governmental funds:

CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS

June 30, 2015

I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) F. FUND BALANCE (Continued) Nonspendable fund balance The nonspendable fund balance classification includes amounts that cannot be spent because they are either not in spendable form or legally or contractually required to be maintained intact. The “not in spendable form” criterion includes items that are not expected to be converted to cash, for example, inventories and prepaid amounts. It also includes the long-term amount of loans and notes receivable as well as property acquired for resale. Restricted fund balance The restricted fund balance classification includes amounts that are either restricted externally by creditors, grantors, contributors, or laws or regulations of other governments or restricted by law through constitutional provisions or enabling legislation. Committed fund balance The committed fund balance classification includes amounts that can only be used for specific purposes imposed by ordinance approved by the City Council, the highest level of decision-making authority. Those committed amounts cannot be used for any other purpose unless City Council removes or changes the specified use by taking the same type of action it employed to previously commit those amounts. Committed fund balances also incorporate contractual obligations to the extent that existing resources in the fund have been specifically committed for use in satisfying those contractual requirements. The City recognizes committed fund balances that have been approved for specific purposes by City Council before the fiscal year end. Assigned fund balance The assigned fund balance classification includes amounts that are constrained by the City’s intent to be used for specific purposes, but are not restricted or committed. The authority for making an assignment is not required to be the City’s highest level of decision-making authority, and as such, the nature of the actions necessary to remove or modify an assignment does not require the City’s highest level of authority. However, City Council has not granted the authority to anyone to make assignments of fund balance. Assigned fund balance amounts in the City’s financial statements represent amounts approved by City Council to be transferred and spent after year end and for specific purposes. In the special revenue fund, assigned fund balances represent amounts to be spent for specific purposes. Unassigned fund balance The unassigned fund balance classification includes amounts that have not been assigned to other funds and has not been restricted, committed, or assigned for specific purposes within the general fund. Based on the City’s policies regarding fund balance classifications as noted above, the City considers amounts that are restricted, committed, or assigned to be spent when the corresponding expenditure that has been designated by City Council or donors has been made. It is the City’s policy to consider restricted fund balances 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. After these fund balances have been depleted, unassigned fund balance will be considered to have been spent.

CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS

June 30, 2015

I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

F. FUND BALANCE (Continued)

Classification / Fund Purpose Amount Nonspendable

General Fund Prepaid charges 696,389$ County Services Prepaid charges 64,376 Dickson Trust Nonspendable principal 5,000

Total nons pendable 765,765

Res tricted General Fund Capital projects 4,880,662 Liquor Perm it Fee Touris m 560,183 Accomm odations Tax City prom otions 51,490 Tourism Developm ent Convention Center Touris m 5,515,814 Hos pitality Tax Com m unity development 839,162 Confis cated Drug Program Law enforcem ent 231,622 Other Programs Com m unity development 206,294 Debt Service Fund Debt Service 3,978,932 Congaree Vista Dis trict Construction of parks in

Congaree Vis ta District 5,648,755 Mis cellaneous Projects General capital projects 31,734,731 Dickson Trust Com m unity development 586

Total res tricted 53,648,231

Com mitted General Fund Com m unity development 24,438 General Fund Public s afety 4,785,918

Total com m itted 4,810,356

As s igned

General Fund Subs equent year expenditures 3,654,109 Streetscaping Streets caping capital projects 7,451,655 General Capital Projects General capital im provements 9,118,951

Total as signed 20,224,715

Unass igned General Fund 22,352,224 County Services (1,016,105)

Total unas s igned 21,336,119

Total fund balances 100,785,186$

CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS

June 30, 2015

I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

G. NET POSITION

Net position represents the difference between assets and deferred outflows and liabilities and deferred inflows in the statement of net position. Net position is classified as net investment in capital assets, restricted, and unrestricted. Net position classified as net investment in capital assets, consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of any borrowings used for the acquisition, construction, or improvement of those assets. Outstanding debt which has not been spent is included in the same net position component as the unspent proceeds. Net position is reported as restricted when there are limitations imposed on their use either through enabling legislation or through external restrictions imposed by creditors, grantors, contributors, or laws or regulations of other governments. Periodically, the City will fund outlays for a particular purpose from both restricted (e.g. restricted bond or grant proceeds) and unrestricted resources. It is the City’s policy to consider restricted net position to have been depleted before unrestricted net position is applied.

II. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY

A. BUDGETARY INFORMATION

The City utilizes the following procedures in establishing the budgetary data reflected in the financial statements: Budgets are adopted on the modified accrual basis of accounting. The budget process begins with the development of the Annual Activity Work Plan by each department and division. These plans are due by the end of November. The City Manager reviews these plans in December and gives departments and divisions input on the City Manager’s desired emphasis in the upcoming budget. Budgets are then developed in the departments and divisions and submitted to the City Manager by the beginning of February. The City Manager reviews these budgets in March, and the City Manager’s recommended budget is submitted in April to City Council for final approval prior to the beginning of each fiscal year on July 1

st. The operating budget includes proposed expenditures and means of financing them. Public meetings are conducted to obtain taxpayer comments. A target date in June is set for legal enactment of the budget through passage of an ordinance. The ordinance sets the limit at the fund level at which expenditures may not exceed appropriations. After two readings of the budget, the City Council legally adopts the budget through the passage of the ordinance. The City Manager is authorized to administer the budget and may authorize the transfer of appropriated funds within and between departments and funds as necessary to achieve the goals of the budget. Such transfers are recorded on the City’s records. All unused appropriations lapse at year end. Encumbrances are re-appropriated on a yearly basis and are reflected as an increase in budgeted expenditures in the next year. Budget accountability rests primarily with the operating departments and divisions of the City. In accomplishing the programs and objectives for which the budget was authorized, department and divisions directors are responsible for ensuring that their respective expenditures do not exceed the prescribed funding levels. B. DEFICIT FUND EQUITY The County Services Fund had a deficit fund balance of $951,729 at June 30, 2015. The Parks and Recreation Camp Fund had a deficit net position of $39,499 at June 30, 2015. The Risk Management Internal Service Fund had a deficit net position of $5,328,846 at June 30, 2015. The Fleet Management Internal Service Fund had a deficit net position of $2,675,280 at June 30, 2015. The Support Services Internal Service Fund had a deficit net position of $1,281,574 at June 30, 2015. Revenues and transfers from other funds in subsequent years are expected to fund these deficits.

CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS

June 30, 2015

II. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY (Continued)

C. RISK MANAGEMENT

The City is self-insured for medical and dental coverage. Health claims for individuals are limited to an annual amount of $2,000,000 with a stop-loss provision of $400,000 per year. The accrued liability for prior year claims represents estimates for medical and dental claims incurred as of June 30, 2015. Some of these claims were reported at June 30, 2015, while others may not be reported until a later date. The incurred but not reported (IBNR) is estimated by the City's independent insurance administrator based on historical results.

The City self-insures worker's compensation and general liability programs. The City accounts for the Worker's Compensation program in the Risk Management Fund (an internal service fund) by charging premiums to user departments. The stop-loss provision for Worker's Compensation is $800,000. The limits of liability for tort actions not specifically exempt by the South Carolina Government Tort Claims Act are $300,000 per person and $600,000 per occurrence. The Risk Management Fund establishes claim liabilities (health, dental, worker’s compensation, and legal) based on estimates of the ultimate cost of claims (including future claim adjustment expenses) that have been reported but not settled and of claims that have been incurred but not reported. The length of time for which such costs must be estimated varies depending on the coverage involved. Estimated amounts of salvage, subrogation, and reinsurance recoverable on unpaid claims are deducted from the liability for unpaid claims. Because actual claim costs depend on such complex factors as inflation, changes in doctrines of legal liability, and damage awards, the process used in computing claim liabilities does not necessarily result in an exact amount, particularly for coverage such as general liability. Adjustments to claim liabilities are charged or credited to expense in the period in which they are made. Changes in the aggregate liability for health, dental, worker’s compensation, and legal claims were as follows:

Current Year Claims and

Beginning Changes in Claims Ending Fiscal Year Liability Estimates Payments Liability

2014 $16,491,117 $29,310,208 ($30,370,660) $15,430,665 2015 $15,430,665 $35,855,659 ($35,037,335) $16,248,989

This liability is reported in both the Risk Management Fund of the internal services funds ($16,225,389) and the Water and Sewer Facilities Fund ($23,600). Fiscal year 2015 aggregate liability above includes the following amounts for legal claims: $7,043,373 beginning liability, $3,452,562 current year claims and changes in estimates, and $4,065,612 claims payments. The ending liability for legal claims is $6,430,324. See also Note VI. B.

Property and Boiler Coverage policies are accounted for in the Risk Management Fund as well as other small insurance policies such as surety bond coverage and miscellaneous floaters. Funds are charged expenditures based on premium amounts and administrative charges. The City has had no significant reductions in insurance coverage during the year, and settlements have not exceeded insurance coverage for each of the past three fiscal years.

CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS

June 30, 2015

III. DETAIL NOTES ON ALL ACTIVITIES AND FUNDS

A. DEPOSITS AND INVESTMENTS

As of June 30, 2015, the City, excluding component units, had the following investments:

Fair Less Greater Investment Type Value Than 1 Than 1

Certificates of Deposit / Money Market 97,302,658$ 97,302,658$ -$

Treasuries 50,620,768 4,647,429 45,973,339 Agencies 25,054,777 8,447,887 16,606,890 Municipals 113,658 - 113,658

Total 173,091,861$ 110,397,974$ 62,693,887$

Investment Maturities (in Years)

Investment Classification Investments are classified as current or noncurrent on the Statements of Net Position based on the intended use of the investment. Investments purchased with bond proceeds that will be used to purchase capital assets are classified as noncurrent. All other investments are classified as current regardless of the maturity date. Interest Rate Risk In accordance with its investment policy, the City manages its exposure to declines in fair values typically by limiting the maturity of its portfolio to no more than seven years. Investments in securities in agencies related to the U.S. Government earn interest at a stated fixed rate and are normally held to maturity when the full principal and interest amount is paid to the City. Credit Risk for Investments The City’s investment policy requires that the portfolio consist largely of securities with active secondary or resale markets. In addition, a portion of the portfolio may be placed in the South Carolina Pooled Investment Fund. This fund is unrated. Investments in U.S. Treasuries are considered to have no credit risk. The investments in agencies related to the U. S. Government include the following: (1) Federal Home Loan Mortgage Corp Discount Notes and (2) Federal National Mortgage Association Discount Notes; these securities are rated A-1+ by Standard and Poor’s and P-1 by Moody’s Investors Service. State law and the City’s investment policy limit investments to the following securities:

 Obligations of the United States and agencies thereof.  General obligations of the State of South Carolina or any of its political subdivisions.  Certificates of deposit where the certificates are collaterally insured by securities described

above held by a third party as escrow agent or custodian, of a market value not less than the amount of the certificates of deposit so secured, including interest.

 Repurchase agreements when collateralized by securities set forth above.

Concentration of Credit Risk The City’s investment policy prohibits investing more than 10% of the total portfolio in a single holding or more than 25% in any one issuer except for United States Treasury securities and money market mutual funds.

CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS

June 30, 2015

III. DETAIL NOTES ON ALL ACTIVITIES AND FUNDS (Continued)

A. DEPOSITS AND INVESTMENTS (Continued)

Custodial Credit Risk - Deposits The City’s cash deposit policy requires that United States Treasury or Agency securities of a fair value equal to the bank deposits be held by a third-party custodian in the City’s name. At June 30, 2015, the City was in full compliance with its collateral policy. Custodial Credit Risk - Investments Custodial credit risk for investments is the risk that, in the event of a bank failure, the government will not be able to recover the value of its investments or collateral securities that are in possession of an outside party. The City’s investment policy requires that securities be held by a third-party custodian in the name of the City. As of June 30, 2015, none of the City’s security investments were exposed to custodial credit risk. Reconciliation to the Financial Statements A reconciliation of cash and investments, excluding component units, as shown on the combined balance sheet for all fund types follows:

Amount

Carrying Amount of Deposits 321,824,368$ Fair Value of Investments 173,091,861

Total Deposits and Investments 494,916,229$

Statement of Net Position Cash and Equivalents 320,374,245$ Investments - Current 98,143,883 Cash on Deposit with Escrow Agent 1,400,296 Investments - Noncurrent 74,947,978

Statement of Net Position - Fiduciary Funds Cash and Equivalents - Trust Funds 16,099 Cash and Equivalents - Agency Funds 33,728

Total Cash and Investments 494,916,229$

Description

B. RECEIVABLES

Receivables for the primary government as of year-end are shown net of allowances for uncollectible accounts. Management’s estimates of uncollectible accounts at June 30, 2015, are as follows:

General Fund 61,942$ Water/Sewer Facilities 2,903,148$ Parking Facilities 1,582,171$ Nonmajor Business-type activities 687$

Receivables for the component units consist of items totaling approximately $456,800 at June 30, 2015, which are net of allowances for doubtful accounts. As of June 30, 2015, the allowance for doubtful accounts was approximately $44,600 for the component units.

CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS

June 30, 2015

III. DETAIL NOTES ON ALL ACTIVITIES AND FUNDS (Continued)

B. RECEIVABLES (Continued)

Governmental funds report deferred inflows of resources in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period. Governmental funds also defer revenue recognition in connection with resources that have been received but not yet earned. C. MORTGAGE NOTES RECEIVABLE AND REVOLVING LOAN POOLS

The various mortgage programs involve the Community Development fund’s loan programs and economic development programs which are reported in the nonmajor proprietary funds and certain component units. The various types of loan programs are complex in nature and require specialized accounting methods, including the valuation of notes and mortgages receivable at the lower of cost or market. Primary government Mortgage notes receivable in the various Community Development revolving loan programs are evaluated annually, and loan loss allowances are applied where appropriate. All mortgages are secured by the property. Delinquent mortgages receivable are estimated to be approximately $1,686,900 of the total net mortgage notes receivable of approximately $21,023,600 as of June 30, 2015. Component units The Columbia Housing Development Corporation (CHDC) has mortgage notes receivable consisting of $661,656, which is net of an allowance for uncollectible loans of $71,876. Mortgage notes receivable consist of loans to individuals under various federal housing lending programs and have various interest rates and maturity dates. The CHDC is considered a real estate development corporation, and revenue recognition is applied under the cost recovery method. The Columbia Development Corporation (CDC) has mortgage notes receivable consisting of $1,210,283. No allowance for uncollectible loans is deemed necessary by management. Mortgage notes receivable consist of four loans to corporations for the purpose of community development and have various interest rates and maturity dates. The CDC is considered a community development corporation, and revenue recognition is applied under the cost recovery method. CEZ, Inc. has loans receivable amounting to $2,025,552, which is the net of allowance for uncollectible loans of $370,674. Mortgage notes receivable consist of loans to businesses within the Columbia Empowerment Zone and have various interest rates and maturity dates. CEZ, Inc. is a non-profit corporation, and revenue recognition is applied under the accrual method. D. INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS

The interfund receivables and payables (including advances) at June 30, 2015, are as follows:

Interfund Interfund

Receivables Payables Funds:

Water/Sewer Facilities Fund 3,062,089$ -$ County Services Fund - 162,314 General Fund - 2,739,972 Other Governmental 2,986,200 1,943,652 Nonmajor Proprietary Fund - - Internal Service - 1,202,351

Total 6,048,289$ 6,048,289$

CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS

June 30, 2015

III. DETAIL NOTES ON ALL ACTIVITIES AND FUNDS (Continued)

D. INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS (Continued)

The outstanding balance between funds results primarily from one of the following time lags: (1) the dates that interfund goods and services are provided or reimbursable expenditures or repayments occur; (2) transactions are recorded in the accounting system; and (3) payments between funds are made.

The interfund transfers for the year ended June 30, 2015, are as follows:

Transfers In Transfers Out

General 14,341,918$ 17,367,879$ County Services - 689,832 Nonmajor governmental funds 16,184,915 11,869,240 Water/Sewer 1,295 8,831,372 Parking - 322,586 Nonmajor proprietary funds 1,098,236 835,430 Internal service funds 9,114,754 824,779

40,741,118$ 40,741,118$

Transfers are used to 1) move revenues from the fund with collection authorization to the Debt Service Fund as debt service principal and interest payments become due, 2) move restricted amounts from borrowing to the Debt Service Fund to establish mandatory reserve accounts, and 3) move unrestricted general fund revenues to finance various programs that the government must account for in other funds in accordance with budgetary authorizations, including amounts provided as subsidies or matching funds for various grants programs. E. OPERATING LEASES

The City is committed under various operating leases for real estate, office, and copier equipment. Operating lease expenditures for the year ended June 30, 2015, were approximately $799,100. Future minimum lease payments for these leases are as follows:

Year Ending June 30, Amount

2016 1,053,040$ 2017 1,054,051 2018 652,025 2019 560,644 2020 560,644

2021 - 2025 252,000 2026 - 2030 252,000 2031 - 2035 252,000 2036 - 2039 201,600

Total 4,838,004$

CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS

June 30, 2015

III. DETAIL NOTES ON ALL ACTIVITIES AND FUNDS (Continued)

F. CAPITAL ASSETS

Capital asset activity for the year ended June 30, 2015, is as follows:

Balance Balance June 30, 2014 Increases Transf ers Decreases June 30, 2015

Governm ental Activities Capital assets, not being

depreciated: Land 32,647,161$ 696,100$ -$ (85,282)$ 33,257,979$ Construction in progress 6,425,233 11,962,266 (7,318,791) (16,314) 11,052,394

Total capital assets not being depreciated 39,072,394 12,658,366 (7,318,791) (101,596) 44,310,373

Capital assets, being depreciated: Buildings and improvements 203,248,910 28,961 521,585 - 203,799,456 Machinery and equipment 50,084,854 8,546,827 731,265 (1,775,409) 57,587,537 Inf rastructure 24,829,533 1,437,934 6,065,941 - 32,333,408

Total capital assets, being depreciated 278,163,297 10,013,722 7,318,791 (1,775,409) 293,720,401

Less accumulated depreciation: Buildings and improvements (58,633,811) (6,797,389) - - (65,431,200) Machinery and equipment (34,974,732) (5,095,658) - 1,738,051 (38,332,339) Inf rastructure (11,436,590) (1,175,145) - - (12,611,735)

Total accumulated depreciation (105,045,133) (13,068,192) - 1,738,051 (116,375,274)

Total capital assets, being depreciated, net 173,118,164 (3,054,470) 7,318,791 (37,358) 177,345,127

Governmental activities capital

assets, net 212,190,558$ 9,603,896$ -$ (138,954)$ 221,655,500$

CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS

June 30, 2015

III. DETAIL NOTES ON ALL ACTIVITIES AND FUNDS (Continued)

F. CAPITAL ASSETS (Continued)

Balance Balance June 30, 2014 Increases Transfers Decreases June 30, 2015

Business-Type Activities Capital assets, not being

depreciated: Land 30,111,133$ 53,889$ -$ (456)$ 30,164,566$

Construction in progress 153,937,441 65,530,041 (130,323,064) (843,336) 88,301,082

Total capital assets not being depreciated 184,048,574 65,583,930 (130,323,064) (843,792) 118,465,648

Capital assets, being depreciated: Buildings and improvements 920,226,042 3,818,775 108,580,000 (2,999,921) 1,029,624,896

Machinery and equipment 49,545,818 3,743,898 21,743,064 (1,494,747) 73,538,033

Total capital assets, being depreciated 969,771,860 7,562,673 130,323,064 (4,494,668) 1,103,162,929

Less accumulated depreciation: Buildings and improvements (346,350,880) (26,604,205) - 1,298,152 (371,656,933) Machinery and equipment (27,982,893) (6,943,326) - 1,479,849 (33,446,370)

Total accumulated depreciation (374,333,773) (33,547,531) - 2,778,001 (405,103,303)

Total capital assets, being depreciated, net 595,438,087 (25,984,858) 130,323,064 (1,716,667) 698,059,626

Business-type activities capital assets, net 779,486,661$ 39,599,072$ -$ (2,560,459)$ 816,525,274$

Depreciation expense was charged to function/programs of the primary government as follows:

Governmental Activities : General governm ent 7,207,150$ Public safety 3,241,808 Parks and recreation 1,622,116 Public services 650,705 Judicial 50,017 Com munity development 11,851 General services 27,756 Finance departm ent 2,188 Internal s ervice funds 254,601

Total depreciation expense - governm ental activities 13,068,192$

Business -type Activities : Water/Sewer facilities 30,928,260$ Storm water facilities 790,049 Parking facilities 1,505,756 Hydro electric plant 323,466

Total depreciation expense - business -type activities 33,547,531$

CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS

June 30, 2015

III. DETAIL NOTES ON ALL ACTIVITIES AND FUNDS (Continued)

F. CAPITAL ASSETS (Continued)

During the year ended June 30, 2015, $8,637,663 of interest expense in the Business-type activities was capitalized. The City has several ongoing construction projects as of June 30, 2015, for renovations and other construction projects. Total remaining commitments on these construction contracts as of June 30, 2015, totaled approximately $91,555,300. During the year ended June 30, 2015, the City recorded in the governmental activities $2,134,035 in infrastructure contributed by private parties and in the business-type activities $3,872,664 in infrastructure contributions by developers.

Columbia Parking Facilities Corporation – Capital Lease Receivable In 2008, construction was completed on the Innovista parking garages. The parking garages and corresponding long-term debt were recorded by the Columbia Parking Facilities Corporation (the Corporation), a blended component unit as noted in Note I. A. The Corporation entered into an agreement with the University of South Carolina (the University) that provided the University use of the garages and, in return, the University would pay the debt service on the associated long term debt. A review of the terms of the agreement during 2010 determined that the agreement represented a capital lease with the University, and therefore, the parking garages were removed from the Corporation and recorded by the University. Additionally, a lease receivable from the University was also recorded in the amount of the outstanding associated debt. See Note III. H. for details of the related debt (Note payable $4,209,142 and revenue bond payable of $10,620,000). Total future minimum rentals to be received from the University under the capital lease agreement will be $14,829,142. Future capital lease payments to be received from the University are as follows:

Year Ending June 30, Amount

2016 695,869$ 2017 4,660,451 2018 598,990 2019 633,860 2020 628,730 2021-2025 3,556,630 2026-2030 4,375,180 2031 725,860

Total 15,875,570 Less amount representing interest 1,046,428

Total minimum future rentals 14,829,142 Less amount due within one year 580,000

Noncurrent capital lease receivable 14,249,142$

CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS

June 30, 2015

III. DETAIL NOTES ON ALL ACTIVITIES AND FUNDS (Continued)

G. OTHER POSTEMPLOYMENT BENEFITS Plan Description and Funding Policy The City provides postemployment health care benefits, in accordance with City policy, to all employees who retire from the City under early or regular retirement and have been employed by the City for 20 years or more. Currently, 778 retirees meet those requirements. The City pays all Medicare supplemental insurance premiums for all qualifying retirees. For the year ended June 30, 2015, premiums totaled approximately $1,219,867. Retirees paid dependent coverage of approximately $779,100. Currently, the City is financing the postemployment retirement benefits on a pay-as-you-go basis, and expenditures for these insurance premiums are recorded in all of the City’s funds. Prior to January 1, 2015, retirees under the age of 65 paid between $37 and $383 a month depending on the various coverage elections. The City’s contributions during the same time period were $800 a month for the retiree and $600 per month for the retiree’s domestic partner. After January 1, 2015, the retiree paid between $37 and $383 a month depending on the various coverage elections, and the City paid $ 800 a month for the retiree and $600 a month for the retiree’s domestic partner. Prior to January 1, 2015, for retirees over the age of 65, the retiree paid $120 per month for health care benefits. The City paid $300 a month for retirees over 65. If the retiree elected to cover their domestic partner, the cost to the retiree was $195 a month, and the cost to the City was $225 a month. After January 1, 2015, the retiree paid $143 a month for single coverage, and the cost to the City was $300 a month. If the retiree elected to cover their domestic partner, the retiree paid an additional $218 a month, and the City paid an additional $225 a month. Surviving spouses of retirees may elect to continue health care benefits. The contribution requirements of the retirees are established and may be amended by the members of City Council. The following schedule reflects the costs and number of participants in the City's health care program.

2015 2014 2013 2012 2011 Participants:

Active 2,019 2,083 2,032 2,030 2,039 Retired 812 778 757 698 702

Total Employee Claims Active 17,169,674$ 15,727,732$ 15,880,782$ 13,999,800$ 11,903,954$ Retired 5,801,345$ 5,548,464$ 5,754,566$ 5,868,443$ 3,557,000$

% of Active Payroll Active 18.37% 17.11% 17.63% 15.79% 13.47% Retired 6.21% 6.04% 6.39% 6.62% 4.03%

Total 24.58% 23.15% 24.02% 22.41% 17.50%

For the fiscal year ended June 30, 2008, the City implemented Governmental Accounting Standards Board Statement No. 45, “Accounting and Financial Reporting by Employers for Postemployment Benefits Other than Pensions,” for certain postemployment health care benefits provided by the City, which are offered under a single employer defined benefit plan.

From an accrual perspective, the cost of other postemployment healthcare benefits (OPEB), like the cost of pension benefits, generally should be associated with the periods in which that cost occurs. In adopting GASB Statement 45 during the year ended June 30, 2008, prospectively, the City recognized the Annual Required Contribution (ARC) associated with OPEB as an expense and the liability associated with the net OPEB obligations. The ARC consists of the cost of benefits accruing in a year plus an amount calculated to amortize any unfunded actuarial accrued liability over a period of 30 years.

CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS

June 30, 2015

III. DETAIL NOTES ON ALL ACTIVITIES AND FUNDS (Continued)

G. OTHER POSTEMPLOYMENT BENEFITS (Continued) Annual OPEB cost and Net OPEB Obligation The City had an actuarial valuation performed for the plan as of July 1, 2013, to determine the funded status of the plan as of that date as well as the employer’s ARC for the fiscal year ended June 30, 2014. The City’s annual OPEB cost and the net OPEB obligation for the year ended June 30, 2015, on the Statement of Net Position was as follows:

Employer Normal Cost 3,817,795$ Amortization of UAAL* 6,527,674

Annual Required Contribution (ARC) 10,345,469 Interest on Net Obligation 2,585,047 Adjustment to the ARC (2,196,210)

Annual OPEB Cost 10,734,306 Contributions made (7,248,904)

Increase in Net OPEB Obligation 3,485,402 Net OPEB Obligation, July 1, 2013 48,612,703

Net OPEB Obligation June 30, 2014 52,098,105$

* Unfunded Actuarial Accrued Liabilities (UAAL) are being amortized over 30 years. A summary of the annual OPEB cost, percentage of the annual OPEB cost contributed, and the year end net OPEB obligation for the year ended June 30, 2015, and the two preceding years is as follows:

Percentage of Annual Annual OPEB Net OPEB

Year ended June 30, OPEB Cost Cost Contributed Obligation

2013 8,146,966$ 61.29% 45,803,720$ 2014 9,546,348 70.58% 48,612,704 2015 10,734,306 67.53% 52,098,105

Trend Information

CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS

June 30, 2015

III. DETAIL NOTES ON ALL ACTIVITIES AND FUNDS (Continued) G. OTHER POSTEMPLOYMENT BENEFITS (Continued)

Funded Status and Funding Progress Funded status and funding progress of the plan as of July 1, 2014, was as follows:

Present Value of Future Benefits: Retirees & Beneficiaries 71,889,828$ Participants Fully Eligible for Benefits 15,449,801 Participants Not Fully Eligible for Benefits 51,409,078

Total Present Value of Future Benefits 138,748,708$

Present Value of Future Normal Costs 10,047,531$

Actuarial Accrued Liabilities (AAL) 138,748,708$ Actuarial Value of Plan Assets -

Unfunded Actuarial Accrued Liability (UAAL) 138,748,708$

Funded Ratio (actuarial value of plan assets/AAL) 0% Covered payroll (annual payroll of employees covered by the plan) 93,451,271$ UAAL as a percentage of covered payroll 148.47%

Actuarial valuations for OPEB plans involve estimates of the value of the reported amounts and assumptions about the probability of events far into the future. These actuarially determined amounts are subject to continual revisions as actual results are compared to past expectations and new estimates are made about the future. The schedule of funding progress presented immediately following the financial statements, as required supplementary information, presents multi-year trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits. Actuarial Methods and Assumptions Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events well into the future, thus reflecting a long-term perspective. Examples would include assumptions about future employment, rates of retirement, mortality, and health care cost trends. Actuarially determined amounts are subject to continual revision as actual results are compared to past expectations, and new estimates are made about the future. Projections of benefits for financial reporting purposes are based on the substantive plan (the plan understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The schedule of funding progress, presented as required supplementary information following the Notes to Financial Statements, presents multi-year trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. In the July 1, 2013, actuarial valuation, the projected unit credit cost method was used. The UAAL amortization payment is the level percent of payroll (assumed to increase 3%) required to fully amortize the UAAL over a 30-year period. As of June 30, 2015, 23 years of amortization remain on the UAAL. The actuarial assumptions included 5.25% rate of investment return. The valuation assumes a 7.5% health care trend inflation rate for 2015 and decreases 0.5% each year until 2017. General inflation is assumed to be 3% per year.

CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS

June 30, 2015

III. DETAIL NOTES ON ALL ACTIVITIES AND FUNDS (Continued) H. LONG-TERM OBLIGATIONS

Balance Balance Amount

June 30, 2014 Additions Reductions June 30, 2015 Due in 2016 Governm ental Activities Notes payable 5,229,142$ -$ (195,000)$ 5,034,142$ 215,000$ GO bonds 35,680,000 - (5,015,000) 30,665,000 5,155,000 Revenue bonds 43,580,000 26,175,000 (3,720,000) 66,035,000 3,815,000 Unamortized bond premiums 1,814,898 3,747,839 (323,758) 5,238,979 - Capital lease payable - 7,000,000 (396,791) 6,603,209 972,567 Compensated absences 6,721,371 6,945,280 (7,017,021) 6,649,630 1,378,419 OPEB costs 48,612,704 10,734,306 (7,248,905) 52,098,105 - Derivative instrument liability 1,829,366 - (654,747) 1,174,619 -

Total governmental activities 143,467,481 54,602,425 (24,571,222) 173,498,684 11,535,986

Busines s-Type Activities Revenue bonds 475,400,000 12,210,000 (21,815,000) 465,795,000 9,450,000 Unamortized bond premiums 29,705,688 - (1,764,790) 27,940,898 - Compensated absences 1,849,688 2,145,836 (2,217,134) 1,778,390 355,678 Derivative instrument liability 20,070,469 6,814,347 - 26,884,816 -

Total business-type activities 527,025,845 21,170,183 (25,796,924) 522,399,104 9,805,678

Total all long-term obligations 670,493,326$ 75,772,608$ (50,368,146)$ 695,897,788$ 21,341,664$

Internal Service Funds predominantly serve the Governmental Funds. Accordingly, long-term liabilities for them are included as part of the above totals for governmental activities. At year end, $242,459 of Internal Service Funds compensated absences is included in the above amounts. Also, for the governmental activities, claims and judgments and compensated absences are generally liquidated by the General Fund. The Series 2012 Certificates of Participation are liquidated by the Tourism Development Convention Center Fund. The notes payable and capital lease obligations are liquidated by the General Fund. The remaining governmental debt is liquidated by the Debt Service Fund. The entire other post-employment benefit liability is reported in the Risk Management Internal Service Fund and will be liquidated by that fund.

CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS

June 30, 2015

III. DETAIL NOTES ON ALL ACTIVITIES AND FUNDS (Continued) H. LONG-TERM OBLIGATIONS (Continued)

The annual requirements to amortize all outstanding debt of the City as of June 30, 2015, including interest payments, but excluding accrued vacation payable and amortization of bond premiums, are as follows:

Governmental Activities:

General Capital

Year Ending Obligation Revenue Note Lease Total Total June 30, Bonds Interest Bonds Interest Payable Interest Payable Interest Principal Interest

2016 5,155,000$ 1,034,076$ 3,815,000$ 2,049,695$ 215,000$ 7,569$ 972,567$ 96,693$ 10,157,567$ 3,188,033$ 2017 5,300,000 889,374 3,945,000 1,965,632 4,144,142 7,569 987,946 81,314 14,377,088 2,943,889 2018 5,350,000 715,200 4,040,000 1,879,242 75,000 - 1,003,570 65,690 10,468,570 2,660,132 2019 3,810,000 517,275 4,165,000 1,790,714 75,000 - 1,019,440 49,820 9,069,440 2,357,809 2020 2,650,000 391,049 4,255,000 1,700,175 75,000 - 1,035,561 33,699 8,015,561 2,124,923 2021-2025 6,890,000 890,082 14,720,000 7,249,697 375,000 - 1,584,125 19,765 23,569,125 8,159,544 2026-2030 1,510,000 92,340 9,115,000 5,996,030 75,000 - - - 10,700,000 6,088,370 2031-2035 - - 6,725,000 4,737,660 - - - - 6,725,000 4,737,660 2036-2040 - - 7,645,000 3,086,000 - - - - 7,645,000 3,086,000 2041-2044 - - 7,610,000 974,500 - - - - 7,610,000 974,500

30,665,000$ 4,529,396$ 66,035,000$ 31,429,345$ 5,034,142$ 15,138$ 6,603,209$ 346,981$ 108,337,351$ 36,320,860$

CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS

June 30, 2015

III. DETAIL NOTES ON ALL ACTIVITIES AND FUNDS (Continued)

H. LONG-TERM OBLIGATIONS (Continued)

Business-Type Activities:

Year Ending Revenue June 30, Bonds Interest

2016 9,450,000$ 21,795,848$ 2017 9,865,000 21,383,283 2018 10,305,000 20,940,643 2019 10,730,000 20,512,989 2020 11,180,000 20,066,553 2021-2025 64,540,000 92,935,556 2026-2030 81,635,000 76,608,393 2031-2035 105,785,000 54,956,440 2036-2040 125,635,000 27,759,131 2041-2043 36,670,000 2,512,500

465,795,000$ 359,471,336$

General Obligation Bonds The City has issued General Obligation Bonds to fund building programs of the City, acquire capital assets, and also to refinance debt issued to fund infrastructure improvements and acquire land. The City has complete liability for the retirement of these obligations. Principal payments on all bonds are due annually and interest is due semi-annually. The South Carolina Constitution limits local unit borrowing power to 8% of its assessed property value. The limitation excludes bonded indebtedness existing prior to December 1, 1977, (date of the Constitutional Amendment), certain special levies assessed on properties located in an area receiving special benefits, and other prescribed indebtedness approved by the voters.

CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS

June 30, 2015

III. DETAIL NOTES ON ALL ACTIVITIES AND FUNDS (Continued)

H. LONG-TERM OBLIGATIONS (Continued)

General Obligation Bonds outstanding as of June 30, 2015, are as follows: Governmental Activities: $9,085,000 City of Columbia General Obligation Bonds, Series 2007A

Proceeds for: Defeasance of the 2006 Bond Anticipation Notes, construction and infrastructure improvements

Annual principal installments of $410,000 to $770,000 through June 1, 2027 Interest rate: 3.75 to 4.05% 7,345,000$

$9,375,000 City of Columbia General Obligation Bonds, Series 2011A Proceeds for: Acquisition of capital assets Annual principal installments of $225,000 to $1,505,000 through Feb. 1, 2021 Interest rate: 2.00 to 3.00% 3,575,000

$9,945,000 City of Columbia General Obligation Bonds, Series 2011B Proceeds for: Refund Series 2002 General Obligation Bonds Annual principal installments of $10,000 to $1,160,000 through Feb. 1, 2022 Interest rate: 2.00 to 3.00% 7,310,000

$5,575,000 City of Columbia General Obligation Bonds, Series 2011C Proceeds for: Acquisition of capital assets Annual principal installments of $115,000 to $975,000 through June 1, 2021 Interest rate: 2.00 to 4.00% 2,155,000

$6,375,000 City of Columbia General Obligation Bonds, Series 2012 Proceeds for: Acquisition of capital assets Annual principal installments of $195,000 to $1,235,000 through June 1, 2022 Interest rate: 2.00 to 3.00% 4,215,000

$7,315,000 City of Columbia General Obligation Bonds, Series 2013 Proceeds for: Acquisition of capital assets Annual principal installments of $215,000 to $1,505,000 through February 1, 2021 Interest rate: 2.00 to 3.50% 6,065,000

Total Governmental Activities General Obligation Bonds 30,665,000$

Revenue Bonds, Notes and Certificates of Participation Revenue bonds, notes, and certificates of participation are special obligations of the City payable from revenues derived from certain operations. The City's revenue bond ordinances stipulate that the City maintain certain debt service, operations, and renewal and replacement funds. The City has complied in all material respects with the bond covenants as outlined in each issue's indenture.

CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS

June 30, 2015

III. DETAIL NOTES ON ALL ACTIVITIES AND FUNDS (Continued)

H. LONG-TERM OBLIGATIONS (Continued)

The construction of the second of two Innovista garages was funded by the issuance of a $13,070,000 tax- exempt South Carolina Jobs-Economic Development Authority Revenue Bonds, Series 2007. The Columbia Parking Facilities Parking Corporation, a component unit of the City, is responsible for the payment of the bonds. BB&T, the bond holder, also holds a first mortgage on both garages. Richland County was responsible for 50% of the construction costs. The garages are operated by the University, and the revenues from them are remitted by USC to the Corporation to retire this debt. This arrangement constitutes a capital lease agreement with the University, and as such, a receivable has been recorded for the amount of future debt service. The garages have been recorded by the University (see Note III. F. for more details). Interest payments began on April 1, 2007. The principal balance is payable in monthly installments beginning September 1, 2008, together with interest on the unpaid balance, with a final payment of all principal and interest, due and payable in full on March 1, 2031. Interest is at a rate per annum equal to 95% of the LIBOR Rate, which was 0.186% at June 30, 2015. The Corporation entered into an interest rate swap agreement in relation to the bond issue as detailed in Note V. In the event of default of these Series 2007 revenue bonds, no judgment for any deficiency upon the indebtedness will be sought or obtained by the bank against the City. The University of South Carolina is the guarantor for payment of the debt. An additional $5,185,000 taxable (based on percent of garage used for private purposes) construction and term loan was made to the Corporation by a bank for the second garage that enables the Corporation to draw down proceeds from the loan as needed during the construction of the second garage. The principal balance and any accrued interest are due in full on March 1, 2017. Interest is payable at an adjusted LIBOR rate which is a rate of interest per annum equal to the One Month Libor plus 1.5% per year. This rate is adjusted monthly on the first day of each month for each LIBOR interest period (0.186%, at June 30, 2015). At June 30, 2015, $4,215,000 was outstanding on the term loan. In the event of foreclosure of this note, no judgment for any deficiency upon the indebtedness will be sought or obtained by the bank against the City. Notes Payable Governmental Activities:

$1,500,000 Note secured for development costs for Drew Wellness Center. Annual principal installments of $75,000 through August 14, 2026. Interest rate 0.0%. 825,000$

$5,185,000 Construction note secured for the construction of a 1,450 parking space parking deck for Innovista. (Note III.F.) Annual principal installments of $120,000 to $140,000 through March 1,

2017, with balloon payment at maturity. Interest rate: Adjusted LIBOR rate (0.20%). (See Note V. for details

regarding the interest rate swap related to this note issue.) Maximum draw amount: $5,185,000. 4,209,142

Total Governmental Activities Note Payable 5,034,142$

CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS

June 30, 2015

III. DETAIL NOTES ON ALL ACTIVITIES AND FUNDS (Continued)

H. LONG-TERM OBLIGATIONS (Continued)

Revenue bonds outstanding as of June 30, 2015, are as follows: Governmental Activities: $14,825,000 Revenue Bond - Hospitality Fee Pledge, Series 2012

Payable from revenues derived by the City from hospitality taxes Annual principal installments of $1,000,000 to $1,315,000 through Feb. 1, 2025 Interest rate: 2.50% 11,795,000$

$24,260,000 Certificates of Participation Series 2012 Payable from revenues derived by the City from tourism development fees Annual principal installments of $2,225,000 to $2,660,000 through June 1, 2022 Interest rate: 2.29% 17,445,000

$26,175,000 Special Obligation Revenue Bond - Hospitality Fee Pledge, Series 2014 Payable from revenues derived by the City from hospitality taxes Annual principal installments of $900,000 to $2,045,000 through Feb. 1, 2044 Interest rate: 2.42 to 3.15% 26,175,000

$13,070,000 South Carolina Jobs-Economic Development Authority Bond 2007 Payable from revenues derived by the City from operation of a garage (Note III.F.) Annual principal installments of $250,000 to $920,000 through March 1, 2031 Interest rate: Rate per annum equal to 95% of LIBOR (0.20%). See Note V. for details regarding the interest rate swap related to this bond issue. 10,620,000

Total Governmental Activities Revenue Bonds 66,035,000$

Business-Type Activities: Parking Facilities Fund: $39,895,000 Parking Facilities Revenue Bonds, Series 2005A

Payable from revenues derived by the City from operation of off-street and on-street parking facilities

Annual principal installments of $1,240,000 to $3,015,000 through Feb. 1, 2037 Interest rate: 4.375 to 5.0% 28,170,000$

$5,380,000 Parking Facilities Revenue Bonds, Series 2005B Payable from revenues derived by the City from operation of off-street

and on-street parking facilities Proceeds for: Expand City parking facilities

Annual principal installments of $225,000 to $1,120,000 through Feb. 1, 2017 Interest rate: 4.88 to 5.2% 1,580,000

$12,210,000 Parking Facilities Refunding Revenue Bonds, Series 2014 Payable from revenues derived by the City from operation of off-street

and on-street parking facilities Proceeds for: Refunding a portion of the Series 2000A and 2000B bonds

Annual principal installments of $300,000 to $1,750,000 through Feb. 1, 2025 Interest rate: 2.38% 11,930,000

Total Park ing Facilities Revenue Bonds 41,680,000

CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS

June 30, 2015

III. DETAIL NOTES ON ALL ACTIVITIES AND FUNDS (Continued)

H. LONG-TERM OBLIGATIONS (Continued) Business-Type Activities: (Continued) Water and Sewer Fund: $81,860,000 Waterworks and Sewer System Revenue Bonds, Series 2009

Payable from revenues derived from the City's water and sewer system Proceeds for: Cost of improvements to the System Annual principal installments of $525,000 to $10,840,000 through Feb. 1, 2038 Interest rate: 3.6 to 5.0% See Note V for details regarding the interest rate swap related to this

bond issue 81,860,000$

$105,000,000 Waterworks and Sewer System Revenue Bonds, Series 2010 Payable from revenues derived from the City's water and sewer system Proceeds for: Cost of improvements to the System Annual principal installments of $1,090,000 to $17,855,000 through Feb. 1, 2040 Interest rate: 3.0 to 5.0% 101,650,000

$100,000,000 Waterworks and Sewer System Revenue Bonds, Series 2011A Payable from revenues from the City's water and sewer system Proceeds for: Cost of improvements to the System Annual principal installments of $1,815,000 to $23,520,000 through Feb. 1, 2041 Interest rate: 2.0 to 5.0% 94,005,000

$27,265,000 Waterworks and Sewer System Revenue Bonds, Series 2011B Payable from revenues from the City's water and sewer system Proceeds for: Refunding portion of Series 2001 ($30,345,000) Annual principal installments of $3,420,000 to $4,455,000 through Feb. 1, 2019 Interest rate: 4.0 to 5.0% 16,585,000

$58,055,000 Waterworks and Sewer System Revenue Bonds, Series 2012 Payable from revenues from the City's water and sewer system Proceeds for: Refunding portion of Series 2005 ($60,000,000) Annual principal installments of $4,560,000 to $6,115,000 through Feb. 1, 2030 Interest rate: 3.5 to 5.0% 58,055,000

$75,305,000 Waterworks and Sewer System Revenue Bonds, Series 2013 Payable from revenues from the City's water and sewer system Proceeds for: Cost of improvements to the System Annual principal installments of $1,205,000 to $4,600,000 through Feb. 1, 2043 Interest rate: 1.0 to 5.0% 71,960,000

Total Water and Sewer Revenue Bonds 424,115,000

Total Business-Type Activities Revenue Bonds 465,795,000$

Obligations Under Capital Leases During the current year the City entered into a lease agreement as lessee for financing the acquisition of various vehicles valued at approximately $7,000,000. The estimated useful lives of the vehicles range from five to twelve years. During the current year approximately $275,000 was included in depreciation expense.

CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS

June 30, 2015

III. DETAIL NOTES ON ALL ACTIVITIES AND FUNDS (Continued)

H. LONG-TERM OBLIGATIONS (Continued)

Obligations Under Capital Leases (Continued) This lease agreement qualifies for as a capital lease for accounting purposes and, therefore has been recorded at the present value of future minimum lease payments as of the inception date. $7,315,000 City of Columbia General Obligation Bonds, Series 2013

Proceeds for: Acquisition of capital assets Monthly principal and interest installments of $89,105 through December 1, 2021 Interest rate: 1.57% 6,603,209$

Refundings In February 2015, the City issued $12,210,000 in a fixed rate Parking Facilities Refunding Revenue Bond Series 2014 at an interest rate of 2.58%. The net proceeds of $12,210,000 (after payment of approximately $401,700 in issue costs) along with funds on hand were used to refund $11,725,000 of outstanding fixed rate Parking Facilities Revenue Bonds Series 2005A. There was no difference between the reacquisition price and the net carrying amount of the old debt as a result of the refunding. The City completed the refunding to reduce its total debt service payments over a period of 11 years by $2,746,601 and to obtain an economic gain (difference between the present values of the old and new debt service payments) of $1,300,021. Conduit Debt Resolution 2006-027, passed June 28, 2006, was issued in support of the issuance of not exceeding $4,500,000 in revenue bonds by JEDA for the Palmetto Health Foundation Project. While the City is not obligated for the repayment of conduit type debt, disclosure is required in the notes to the financial statements. As of June 30, 2015, the balance of this conduit debt was approximately $2,675,350. Arbitrage In accordance with Section 148 of the Internal Revenue Code of 1986, as amended, and Sections 1.103-13 to 1.103-15 of the related Treasury Regulations, the City must rebate to the federal government “arbitrage profits” earned on governmental bonds issued after August 31, 1986. Arbitrage profits are the excess of the amount earned on investments over the interest paid on the borrowings, if any. For the year ended June 30, 2015, the City did not have any arbitrage profits due to the federal government.

IV. PENSION PLANS

The South Carolina Public Employee Benefit Authority (“PEBA”), which was created July 1, 2012, administers the various retirement systems and retirement programs managed by its Retirement Division. PEBA has an 11-member Board of Directors, appointed by the Governor and General Assembly leadership, which serves as co-trustee and co-fiduciary of the systems and the trust funds. By law, the Budget and Control Board (restructured into the Department of Administration on July 1, 2015), which consists of five elected officials, also reviews certain PEBA Board decisions regarding the funding of the South Carolina Retirement Systems (“Systems”) and serves as a co-trustee of the Systems in conducting that review.

PEBA issues a Comprehensive Annual Financial Report (“CAFR”) containing financial statements and required supplementary information for the Systems' Pension Trust Funds. The CAFR is publicly available through the Retirement Benefits' link on PEBA's website at www.peba.sc.gov, or a copy may be obtained by submitting a request to PEBA, PO Box 11960, Columbia, SC 29211-1960. PEBA is considered a division of the primary government of the state of South Carolina, and therefore, retirement trust fund financial information is also included in the comprehensive annual financial report of the state.

CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS

June 30, 2015

IV. PENSION PLANS (Continued)

Plan description The South Carolina Retirement System (“SCRS”), a cost-sharing multiple-employer defined benefit pension plan, 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. The South Carolina Police Officers Retirement System (“PORS”), a cost-sharing multiple-employer defined benefit pension plan, 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.

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 presented below.

• SCRS - Generally, all employees of covered employers are required to participate in and contribute to the system as a condition of employment. This plan covers general employees and teachers and individuals newly elected to the South Carolina General Assembly beginning with the November 2012 general election. 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 membership on or after July 1, 2012, is a Class Three member.

• PORS - To be eligible for PORS membership, an employee must be required by the terms of his 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 membership 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 the benefit terms for each system is presented below. • 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

CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS

June 30, 2015

IV. PENSION PLANS (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. • 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.

Contributions Contributions are prescribed in Title 9 of the South Carolina Code of Laws. The PEBA Board may increase the SCRS and PORS employer and employee contribution rates on the basis of the actuarial valuations, but any such increase may not result in a differential between the employee and employer contribution rate that exceeds 2.9% of earnable compensation for SCRS and 5% for PORS. An increase in the contribution rates adopted by the Board may not provide for an increase of more than one-half of one percent in any one year. If the scheduled employee and employer contributions provided in statute or the rates last adopted by the board are insufficient to maintain a 30-year amortization schedule of the unfunded liabilities of the plans, the board shall increase the contribution rates in equal percentage amounts for the employer and employee as necessary to maintain the 30-year amortization period; this increase is not limited to one-half of one percent per year.

CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS

June 30, 2015

IV. PENSION PLANS (Continued)

Required employee contribution rates for fiscal year 2014-2015 are as follows:

SCRS Employee Class Two 8.00% of earnable compensation Employee Class Three 8.00% of earnable compensation

PORS Employee Class Two 8.41% of earnable compensation Employee Class Three 8.41% of earnable compensation

Required employer contribution rates for fiscal year 2014-2015 are as follows:

SCRS Employer Class Two 10.75% of earnable compensation Employer Class Three 10.75% of earnable compensation Employer Incidental Death Benefit 0.15% of earnable compensation

PORS Employer Class Two 13.01% of earnable compensation Employer Class Three 13.01% of earnable compensation Employer Incidental Death Benefit 0.20% of earnable compensation Employer Accidental Death Program 0.20% of earnable compensation

The City’s required and actual employer contributions are as follows: Year Ended June 30, 2015 SCRS PORS Required contributions $5,815,863 $5,031,606 Actual contributions $5,815,863 $5,031,606 Actuarial Assumptions and Methods

Actuarial valuations 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 during the valuation process 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. The last experience study was performed on data through June 30, 2010, and the next experience study is scheduled to be conducted after the June 30, 2015, annual valuation is complete.

The most recent annual actuarial valuation reports adopted by the PEBA Board are as of July 1, 2013. The net pension liability of each defined benefit pension plan was therefore determined by the consulting actuary, Gabriel, Roeder, Smith and Company (“GRS”), based on the July 1, 2013, actuarial valuations using membership data as of July 1, 2013, projected forward to the end of the fiscal year, and financial information of the pension trust funds as of June 30, 2014, using generally accepted actuarial procedures. Information included in the following schedules is based on the certification provided by GRS.

CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS

June 30, 2015

IV. PENSION PLANS (Continued)

The following provides a summary of the actuarial assumptions and methods used in the July 1, 2013, valuations for SCRS and PORS. SCRS PORS Actuarial cost method Entry age Entry age Actuarial assumptions: Investment rate of return 7.5% 7.5% Projected salary increases Levels off at 3.5% Levels off at 4.0% Includes inflation at 2.75% 2.75% Benefit adjustments Lesser of 1% or $500 Lesser of 1% or $500 The post-retiree mortality assumption is dependent upon the member's job category and gender. This assumption includes base rates which are automatically adjusted for future improvement in mortality using published Scale AA projected from the year 2000.

Former Job Class Males Females Educators and Judges RP-2000 Males (with White Collar

adjustment) multiplied by 110% RP-2000 Females (with White Collar adjustment) multiplied by 95%

General Employees and Members of the General Assembly

RP-2000 Males multiplied by 100%

RP-2000 Females multiplied by 90%

Public Safety, Firefighters and members of the South Carolina National Guard

RP-2000 Males (With Blue Collar adjustment) multiplied by 115%

RP-2000 Females (with Blue Collar adjustment) multiplied by 115%

Net Pension Liability

The net pension liability (NPL) is calculated separately for each system and represents that particular system's total pension liability determined in accordance with GASB Statement No. 67 less that System's fiduciary net position. The City’s proportional share of the NPL amounts for SCRS and PORS are presented below:

Measurement Period Fiscal Year Ended June 30, Ended June 30, SCRS PORS

2013 2014 $105,670,520 $63,572,138 2014 2015 $101,430,205 $58,710,015

The total pension liability is calculated by the Systems' actuary, and each plan's fiduciary net position is reported in the Systems' financial statements. The City’s proportionate share of the net pension liability was calculated on the basis of historical employer contributions. Although GASB 68 encourages the use of the employer's projected long-term contribution effort to the retirement plan, allocating on the basis of historical employer contributions is considered acceptable. For the measurement period ended June 30, 2014, the City’s percentage of the SCRS and PORS net pension liability was 0.589139% and 3.06671%, respectively.

CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS

June 30, 2015

IV. PENSION PLANS (Continued)

Discount Rate The discount rate used to measure the total pension liability was 7.50%. 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, each System'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.

Long-term Expected Rate of Return The long-term expected rate of return on pension plan investments for actuarial purposes is based upon the 30 year capital market outlook at the end of the third quarter 2012. The actuarial long-term expected rates of return represent best estimates of arithmetic real rates of return for each major asset class and were developed in coordination with the investment consultant for the Retirement System Investment Commission (“RSIC”) using a building block approach, reflecting observable inflation and interest rate information available in the fixed income markets as well as Consensus Economic forecasts. The actuarial long-term assumptions for other asset classes are based on historical results, current market characteristics, and professional judgment.

The RSIC has exclusive authority to invest and manage the retirement trust funds' assets. As co-fiduciary of the Systems, statutory provisions and governance policies allow the RSIC to operate in a manner consistent with a long-term investment time horizon. The expected real rates of investment return, along with the expected inflation rate, form the basis for the target asset allocation adopted annually by the RSIC. For actuarial purposes, the long-term expected rate of return is calculated by weighting the expected future real rates of return by the target allocation percentage and then adding the actuarial expected inflation which is summarized in the table below. For actuarial purposes, the 7.50% assumed annual investment rate of return used in the calculation of the total pension liability includes a 4.75% real rate of return and a 2.75% inflation component.

CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS

June 30, 2015

IV. PENSION PLANS (Continued) Long Term

Expected Expected Portfolio

Target Asset Arithmetic Real Real Rate of Asset Class Allocation Rate of Return Return Short Term 5.0% Cash 2.0% 0.3 0.01 Short Duration 3.0% 0.6 0.02 Domestic Fixed Income 13.0% Core Fixed Income 7.0% 1.1 0.08 High Yield 2.0% 3.5 0.07 Bank Loans 4.0% 2.8 0.11 Global Fixed Income 9.0% Global Fixed Income 3.0% 0.8 0.02 Emerging Markets Debt 6.0% 4.1 0.25 Global Public Equity 31.0% 7.8 2.42 Global Tactical Asset Allocation 10.0% 5.1 0.51 Alternatives 32.0% Hedge Funds (Low Beta) 8.0% 4.0 0.32 Private Debt 7.0% 10.2 0.71 Private Equity 9.0% 10.2 0.92 Real Estate (Broad Market) 5.0% 5.9 0.29 Commodities 3.0% 5.1 0.15 Total Expected Real Return 100.0% 5.88 Inflation for Actuarial Purposes 2.75 Total Expected Nominal Return 8.63 Sensitivity Analysis The following table presents the collective net pension liability of the City’s calculated using the discount rate of 7.50%, as well as what the City’s net pension liability would be if it were calculated using a discount rate that is 1.00% lower (6.50%) or 1.00% higher (8.50%) than the current rate.

Sensitivity of the City’s Proportional Share of Net Pension Liability To Changes in the Discount Rate

System 1.00% Decrease Current Discount Rate 1.00% Increase SCRS $131,256,960 $101,430,204 $76,546,134 PORS $82,045,613 $58,710,014 $39,401,605 Plan Fiduciary Net Position Detailed information about the Plan’s fiduciary net position is available in PEBA’s separately issued financial report.

CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS

June 30, 2015

IV. PENSION PLANS (Continued) Pension Expense and Deferred Outflows (Inflows) of Resources

For the year ended June 30, 2015, the City recognized pension expense of $12,245,505. At June 30, 2015, the City reported deferred outflows (inflows) of resources related to pensions from the following sources:

Deferred Outflows Deferred Inflows of Resources of Resources

Pension contributions subsequent to the measurement date 10,847,469$ -$ Differences in actual and expected experience 4,440,813 - Net differences between projeted and actual earnings on

plan investments - 15,344,486

15,288,282$ 15,344,486$

The City reported $10,847,469 as deferred outflows of resources related to contributions subsequent to the measurement date which will be recognized as a reduction of the net pension liability in the year ending June 30, 2016. Other amounts reported as deferred outflows (inflows) of resources will be recognized in pension expense in future years. The following schedule reflects the amortization of the City’s proportional share of the net balance of remaining deferred outflows (inflows) of resources at June 30, 2015. Average remaining service lives of all employees provided with pensions through the pension plans at June 30, 2014, measurement date was 4.233 years for SCRS and 4.856 years for PORS.

Measurement Period Fiscal Year Ending SCRS & Ending June 30, June 30, PORS

2015 2016 (2,540,825)$ 2016 2017 (2,540,825)$ 2017 2018 (2,540,825)$ 2018 2019 (3,281,198)$

Net Balance of Deferred Outflows/ (Inflows) of Resources (10,903,673)$

Payables to the Pension Plans At June 30, 2015, the City reported a payable of $788,630 and $621,665 for the outstanding amount of contributions due to SCRS and PORS, respectively. This liability will be paid in the normal course of paying year-end obligations.

CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS

June 30, 2015

IV. PENSION PLANS (Continued) Component Units Significantly all of the employees of the City’s component units, with the exception of MACST, are members of the SCRS due to the City being a member. Due to the City being the employer of record it reports the amount of the proportional net pension liability and the related deferred inflows and outflows related to the service of these employees in its financial statements.

V. INTEREST RATE SWAP AGREEMENTS

Swap One – The City maintains this variable-to-fixed interest rate swap to hedge exposure to rising interest rates. The City entered into an interest rate swap agreement related to the 2009 Waterworks and Sewer Bonds on September 20, 2007, with an effective date of September 15, 2009. The counterparty is J.P. Morgan. The City agreed to pay a fixed rate to J.P. Morgan and receive a variable rate while paying a variable rate to bond holders. Semi-annually the City pays a fixed rate of 4.354% to J.P. Morgan, and monthly receives a variable rate based on the average Securities Industry and Financial Markets Association (“SIFMA”) index rate. Interest payments to the bond holders are offset by the amount received by the City from J. P. Morgan under the swap. The purpose of the swap was to effectively change the variable rate bonds to fixed rate bonds. The bonds and related swap agreement mature February 2038. The notional amount of the swap equals the principal amount of the associated bonds and decreases simultaneously with the reduction in the principal amount of the associated bonds. As of June 30, 2015, the notional amount was $81,860,000.

The obligation of the City to make regularly scheduled payments under the interest rate swap agreement is junior and subordinate to the City’s obligation to make debt service payments on its outstanding revenue bonds. The obligation of the City to make any termination payments under the swaps is junior and subordinate to the obligation to make debt service payments on bonds. Under the swap agreement, if the City modifies the bond ordinance, the counterparty has certain limited rights to consent to modifications to the swap agreement which would affect the rights of the counterparty. Under the swap, J.P. Morgan does not require collateral to be posted to reduce credit risk exposure. During the year ended June 30, 2015, the City made variable bond interest payments in the amount of $34,309 and fixed rate payments on the swap in the amount of $3,564,184. The City also received variable payments on the swap in the amount of $41,715. The net of variable payments on the bonds and receipts on the swap was $7,406. Swap Two and Three – One of the City’s blended component units, the Columbia Parking Facilities Corporation (the “Corporation”), maintains two interest rate swaps to hedge exposure to rising interest rates. The Corporation entered into two variable-to-fixed interest rate swap agreements related to a $13,070,000 tax exempt revenue bond payable and $5,185,000 taxable bond payable. The agreements were entered into February 23, 2007, and were effective on February 23, 2007, and March 1, 2008, respectively. The counterparty is Branch Bank and Trust Corporation. The purpose of the swaps was to effectively change the variable rate debt to fixed rate debt. The swap agreements mature on March, 1, 2017, and the related debt matures in 2031 and 2017, respectively. The notional amounts of the swaps equal the principal amounts of the associated debt and decrease simultaneously with the reduction in the principal amounts of the associated bonds. As of June 30, 2015, the notional amounts were $10,620,000 and $4,209,142. The swaps provide for monthly payment by the Corporation of a 5.085% and 6.815% fixed rate on a notional amount having an amortization schedule equal to that of the bonds. In return, the counterparty will pay the Corporation a variable rate equal to 95% of the one-month London Interbank Offered Rate (LIBOR) and LIBOR plus 1.50% on each swaps’ respective notional amount. At June 30, 2015, 95% of LIBOR was 0.177%, and LIBOR plus 1.50% was 1.677%. The Corporation also makes interest payments to the bondholders at 95% of LIBOR and LIBOR, respectively, (0.177% and 0.186% at June 30, 2015), on the outstanding principal amount.

CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS

June 30, 2015

V. INTEREST RATE SWAP AGREEMENTS (Continued)

The obligation of the Corporation to make regularly scheduled payments under the swaps ranks on a parity basis with the Corporation's obligation to make debt service payments on its outstanding bonds. Under certain circumstances, the swaps are subject to termination prior to their respective scheduled expiration dates and prior to the maturity of the bonds to which each such swaps relates, in which event the Corporation may be obligated to make a substantial payment to the respective counterparty ("Termination Payments"). The obligation of the Corporation to make any termination payments under the swaps is junior and subordinate to the obligation to make debt service payments on notes. Under the swaps, the counterparties have certain limited rights to consent to modifications to the master resolution, which modifications would affect the rights of the counterparties under the swaps. To minimize credit or repayment risk, the swap agreements contain varying collateral agreements with the counterparties. The swaps require collateralization of the fair value of the swaps should the counterparty's credit rating fall below the applicable thresholds. During the fiscal year, the Corporation made variable interest payments of $88,648 and recovered offsetting variable payments on this swap in a like amount. The Corporation made fixed payments of $773,070 under the swaps. The market value of the swaps was ($818,267) and ($356,352) at June 30, 2015, respectively. In the event that either party to the swap, BB&T or Columbia Parking Facilities Corporation, cannot perform on the agreement, no judgment for any deficiency will be sought or obtained against the City of Columbia. The University of South Carolina is solely responsible for payment if the Corporation cannot perform on the agreements. As such, the City has decided not to implement the provisions of GASB Statement No. 53 for this interest rate swap.

The fair value balances and notional amounts of derivative instruments outstanding at June 30, 2015, classified by type, and the changes in fair value of such derivatives for the year then ended are as follows:

Classif ication Amount Classif ication Amount Notional Governmental activities

Cash f low hedges: Pay-f ixed interest rate sw ap Sw ap Tw o

Def erred outf low (458,532)$ Debt 818,267$ 10,620,000$

Pay-f ixed interest rate sw ap Sw ap Three

Def erred outf low (196,215)$ Debt 356,352 4,209,142$

1,174,619$

Business-type activity Cash f low hedges:

Pay-f ixed interest rate sw ap Sw ap One

Def erred outf low 6,814,347$ Debt 26,884,816$ 81,860,000$

Changes in Fair Value Fair Value at June 30

CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS

June 30, 2015

V. INTEREST RATE SWAP AGREEMENTS (Continued) The following table displays the objectives and terms of the City’s hedging derivative instruments outstanding at June 30, 2015, along with the credit rating of the associated counterparty:

Notional Ef f ective Maturity Counterparty Type Objective Amount Date Date Terms Credit Rating*

Pay-f ixed interest rate sw ap

Hedge of changes in cash f low s on the Series 2009 Water and Sew er Revenue Bonds 81,860,000$ 9/15/2009 2/1/2038

Receive monthly average SIFMA rate and pay f ixed rate of 4.354% Aa3 / A+ / A+

Pay-f ixed interest rate sw ap

Hedge of changes in cash f low s on the Series 2007 JEDA Revenue Bonds 10,620,000$ 2/23/2007 3/1/2017

Receive 95% of one month LIBOR and pay f ixed rate of 5.085% A2 / A- / A+

Pay-f ixed interest rate sw ap

Hedge of changes in cash f low s on the Inovista construction note payable 4,209,142$ 3/1/2007 3/1/2017

Receive 95% of one month LIBOR plus 1.5% and pay f ixed rate of 6.815% A2 / A- / A+

* Moody's, S&P, and Fitch, respectively.

Future Debt Service Requirements The following schedules detail the debt service requirements to maturity for the underlying debt instruments related to the interest rate swaps. The interest rates in effect at June 30, 2015, have been used for all future periods. These amounts assume the current interest rates on variable-rate bonds will remain the same for their terms. As these rates vary, interest payments on variable-rate bonds and net receipts/payments on the hedging derivative instruments will vary.

Year Ended Hedging June 30, Principal Interes t Derivatives, Net Total 2016 -$ -$ 3,565,995$ 3,565,995$ 2017 - - 3,565,995 3,565,995 2018 - - 3,565,995 3,565,995 2019 - - 3,565,995 3,565,995 2020 - - 3,565,995 3,565,995 2021-2025 2,245,000 - 17,760,278 20,005,278 2026-2030 4,755,000 - 17,184,604 21,939,604 2031-2035 43,705,000 - 14,205,608 57,910,608 2036-2038 31,155,000 - 4,525,451 35,680,451

81,860,000$ -$ 71,505,916$ 153,365,916$

Variable Rate Bonds

Waterworks and Sewer Bonds Series 2009 (Swap One)

CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS

June 30, 2015

V. INTEREST RATE SWAP AGREEMENTS (Continued)

Year Ended Hedging June 30, Principal Interes t Derivatives, Net Total 2016 440,000$ 15,417$ 89,365$ 544,782$ 2017 480,000 14,831 85,698 580,529 2018 500,000 14,216 81,878 596,094 2019 540,000 13,546 77,752 631,298 2020 540,000 12,848 73,627 626,475 2021-2025 3,200,000 52,564 298,151 3,550,715 2026-2030 4,200,000 28,712 152,228 4,380,940 2031 720,000 3,296 4,521 727,817

10,620,000$ 155,430$ 863,220$ 11,638,650$

Year Ended Hedging June 30, Principal Interes t Derivatives, Net Total 2016 140,000$ 6,364$ 6,786$ 153,150$ 2017 4,069,142 5,982 6,790 4,081,914

4,209,142$ 12,346$ 13,576$ 4,235,064$

Variable Rate Bonds

Parking Facilities Corporation

Innovista Note Payable (Swap Three)

South Carolina JEDA Bond 2007 (Swap Two)

Risks Credit Risk – Credit risk is the risk that the counterparty will not fulfill its obligations. As of June 30, 2015, the three swaps were in liability positions; therefore, the City is not exposed to credit risks. However, should interest rates change and the fair market value of the swaps becomes an asset position, the City would be exposed to credit risks. Credit ratings of the counterparties are summarized in the table above. Interest Rate Risk – Interest rate risk is the risk that changes in interest rates will adversely affect the fair values of the City’s financial instruments or its cash flows. The City is exposed to interest rate risk on its pay-fixed, receive-variable interest rate swaps. As LIBOR or the SIMFA swap index decreases, the City’s liability upon early termination of the swaps increases. Basis Risk – Basis risk is the risk that arises when variable rates or prices of a hedging derivative instrument and a hedge item are based on different reference rates. The City is exposed to basis risk on the interest rate swap hedging instrument related to the Waterworks and Sewer bonds because the variable-rate payments received by the City on these hedging derivative instruments are based on a rate or index other than interest rates the City pays on its hedge variable-rate debt. As of June 30, 2015, the interest rate on the City’s hedged variable rate debt was 0.04%, while the SIFMA swap index rate was 0.05%. Termination Risk – Termination risk is the risk that a hedging derivative instrument’s unscheduled end will affect the City’s asset and liability strategy or will present the City with potentially significant unscheduled termination payments to the counterparty. Termination events exist for the interest rate swaps. Under the City’s interest rate swap (Swap One), a decline in either party’s credit rating below BBB or Baa2 in the case of S&P and Moody’s, respectively, can trigger termination in addition to events that are customary for these types of transactions. The Corporation’s interest rate swaps (Swaps Two and Three) may be terminated if the counterparty ceases to be a party to the credit support documents and the Corporation fails to replace the counterparty with a credit support provider acceptable to the counterparty.

CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS

June 30, 2015

V. INTEREST RATE SWAP AGREEMENTS (Continued) Rollover Risk – Rollover risk is the risk that a hedging instrument associated with hedgeable item does not extend to the maturity of that hedgeable item. The Corporation is exposed to rollover risk because the hedging derivative instrument (Swap Two) associated with the hedgeable debt items do not extend to the maturity of the hedgeable debt items. The City is not required to post collateral under any of the interest rate swap agreements.

VI. COMMITMENTS AND CONTINGENCIES

A. FEDERAL GRANTS

In the normal course of operations, the City receives grant funds from various federal agencies. The grant programs are subject to audit by agents of the granting authority, the purpose of which is to insure compliance with conditions precedent to the granting of funds. Any liability for reimbursement that may arise as the result of audits of grant funds is not believed by City officials to be material. B. CONSENT DECREE During the year ended June 30, 2014, the Environmental Protection Agency filed with the federal court system a consent decree against the City. The terms of this Consent Decree require the City to (i) evaluate the Sanitary Sewer System and, based on that evaluation, implement capital improvements to the Sanitary Sewer System’s infrastructure; and (ii) implement a $1,000,000 Supplemental Environmental Project (“SEP”) aimed at restoring and reducing flooding along segments of Rocky Branch and Gills Creek. The City anticipates total expenditures of approximately $750,000,000 will be required over a period of approximately 11 years in order to meet the requirements of the Consent Decree. The City’s five-year Capital Improvements Program, which the City believes is presently responsive to a portion of the capital improvements that are or will be required by the Consent Decree, is being further revised to enable the City to meet all of its obligations under the Consent Decree within the prescribed timeframes. In addition, the City paid a civil penalty in the amount of $476,400 to resolve the alleged Clean Water Act violations. The City expects to pay for the cost of these improvements through revenues generated by the system and future and current bond proceeds. City management feels the City is meeting the requirements and deadlines imposed by the Consent Decree.

C. LITIGATION

The City is a party to legal proceedings that normally occur in government operations. The City is involved in unresolved legal actions concerning construction contracts and other matters. The City believes its positions are meritorious and is vigorously defending its positions. The City’s estimate of ultimate loss has been recorded as a liability in the Risk Management Fund and other funds in the financial statements (Note II. C). D. DEVELOPMENT AGREEMENT On July 9, 2013, the City executed a development agreement with a private developer to develop approximately 165 acres of land within the City of Columbia. Any City commitment is expected to occur during the first five years of the 20-year agreement. The agreement requires a minimum level of investment by the developer. Prior to the City being required to incur any of the preceding costs, the developer is required to have obtained funding and commitments to construct taxable improvements of various amounts ranging from $25,000,000 to $81,250,000. If these minimum amounts of taxable improvements are not obtained, the City is under no obligation to incur any costs.

CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS

June 30, 2015

VI. COMMITMENTS AND CONTINGENCIES (Continued) D. DEVELOPMENT AGREEMENT (Continued) If the developer attains the minimum amount of investment, the City is obligated to provide infrastructure and other items at no cost to the developer. The costs are to be incurred in four phases. The City estimates the public infrastructure costs during phase one will approximate $5,250,000. The City’s parking facility commitment is estimated to cost approximately $16,000,000. Public infrastructure costs during phase two are estimated to cost approximately $7,965,800. During phase three, public infrastructure costs are estimated to cost approximately $2,179,400. During phase four, public infrastructure costs are estimated to be approximately $15,840,800. The City has not identified a definite funding source for these potential commitments. While the costs indicated in the agreement represent the City’s best estimate at the time of signing the agreement, actual costs will probably be different.

VII. OTHER INFORMATION

A. SUBSEQUENT EVENTS In early October 2015, almost twenty-four inches of rain fell in the Columbia area in less than forty-eight hours. This rainfall caused historic flooding and unprecedented damages to the City. The flooding caused multiple dam failures, a massive breach in the Columbia Canal (a main water source for the City), multiple sewer and water line ruptures or breaks, and over 100 City streets had to be closed. City management estimates the initial cost to repair the damages to City property will exceed $75,528,900 and long-term mitigation costs will exceed $50,000,000. The City estimates between 75% and 90% of the estimated repair costs will be reimbursed, either by the federal government or the State of South Carolina. While City management believes these estimates to be accurate, actual results could differ from these estimates and the difference could be significant. B. PENDING IMPLEMENTATION OF GASB STATEMENTS GASB Statement No. 72, “Fair Value Measurement and Application,” provides guidance for determining a fair value measurement for financial reporting purposes. This Statement also provides guidance for applying fair value to certain investments and disclosures related to all fair value measurements. The requirements of this Statement are effective for financial statements for reporting periods beginning after June 15, 2015. The City will implement the new guidance with the 2016 financial statements.

GASB Statement No. 73, “Accounting and Financial Reporting for Pensions and Related Assets That are Not within the Scope of GASB Statement 68 and Amendments to Certain Provision of GASB Statement 67 and 68.” The requirements of this Statement will improve financial reporting by establishing a single framework for the presentation of information about pensions which will enhance the comparability of pension-related information reported by employers and nonemployer contributing entities. The provisions in Statement 73 are effective for fiscal years beginning after June 15, 2015—except those provisions that address employers and governmental nonemployer contributing entities for pensions that are not within the scope of Statement 68, which are effective for fiscal years beginning after June 15, 2016. The City will implement the new guidance with the 2016 financial statements.

GASB Statement No. 74, “Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans.” The objective of this Statement is to improve the usefulness of information about postemployment benefits other than pensions (other postemployment benefits or OPEB) included in the general purpose external financial reports of state and local governmental OPEB plans for making decisions and assessing accountability. The provisions in Statement 74 are effective for fiscal years beginning after June 15, 2016. The City will implement the new guidance with the 2017 financial statements.

CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS

June 30, 2015

VII. OTHER INFORMATION (Continued)

B. PENDING IMPLEMENTATION OF GASB STATEMENTS (Continued)

GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions,” establishes new accounting and financial reporting requirements for governments whose employees are provided with OPEB as well as for certain nonemployer governments that have a legal obligation to provide financial support for OPEB provided to the employees of other entities. The provisions in Statement 75 are effective for fiscal years beginning after June 15, 2017. The City will implement the new guidance with the 2018 financial statements. GASB Statement No. 76, “The Hierarchy of Generally Accepted Accounting Principles for State and Local Governments.” The requirements in this Statement improve financial reporting by 1) raising the category of GASB Implementation Guides in the GAAP hierarchy, thus providing the opportunity for broader public input on implementation guidance; 2) emphasizing the importance of analogies to authoritative literature when the accounting treatment for an event is not specified in authoritative GAAP; and 3) requiring the consideration of consistency with the GASB Concepts Statements when evaluating accounting treatments specified in nonauthoritative literature. The provisions in Statement 76 are effective for reporting periods beginning after June 15, 2015. The City will implement the new guidance with the 2016 financial statements.

GASB Statement No. 77, “Tax Abatement Disclosures,” requires disclosure of tax abatement information about 1) a reporting government’s own tax abatement agreements and 2) those that are entered into by other governments and that reduce the reporting government’s tax revenues. The requirements of this Statement are effective for reporting periods beginning after December 15, 2015. The City will implement the new guidance with the 2017 financial statements.

Management has not yet determined the impact implementation of these standards will have on the City’s financial statements, if any.

C. CHANGE IN ACCOUNTING PRINCIPLE

The City implemented Governmental Accounting Standards Board (GASB) Statement 68, Accounting and Financial Reporting for Pensions, and GASB Statement 71, Pension Transition for Contributions Made Subsequent to the Measurement Date, in the fiscal year ended June 30, 2015. These statements establish standards for measuring and recognizing liabilities, deferred outflows of resources, and deferred inflows of resources and expenses/expenditures. For defined benefit pensions, this Statement identifies the methods and assumptions that should be used to project benefit payments, discount projected benefit payments to their actuarial present value, and attribute that present value to periods of employee service. The implementation of this new accounting principal was retroactive and required a net pension liability of $169,242,658, deferred outflows of $4,440,814 and deferred inflows of $15,344,485 to be recorded on the Statement of Net Position as of June 30, 2014, and a net adjustment of Net Position of $162,982,771. The net position of the government-wide activities, the Water and Sewer Facilities, the Parking Facilities, Stormwater Facilities, the Redevelopment Programs, and the Parks and Recreation Camp enterprise funds, and the Fleet Management, Support Services, and Risk Management internal service funds have been restated in the following amounts:

CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS

June 30, 2015

VII. OTHER INFORMATION (Continued)

C. CHANGE IN ACCOUNTING PRINCIPLE GASB Statement 68 Restatement

Governmental activities - 118,595,260$

Enterprise funds - Water and Sewer Facilities 34,626,493$ Parking Facilities 2,604,928 Stormwater Facilities 2,652,579 Redevelopment Programs 199,025 Parks and Recreation Camp 158,837

Total Enterprise funds 40,241,862$

Internal Service funds - Fleet Management 2,652,580$ Support Services 1,270,697 Risk Management 222,372

Total Internal Service funds 4,145,649$

REQUIRED SUPPLEMENTARY INFORMATION

The Schedules of Funding Progress and Employer Contributions – Other Postemployment Benefits provide information relating to the City’s adoption of GASB Statement No. 45. Budgetary Comparison Schedule – General Fund provides information regarding the original budget, final budget, and actual results as compared to the final budget for the General Fund. The General Fund is the principal operating fund of the City that accounts for all financial resources not accounted for in other funds. Notes to Budgetary Comparison Schedule provides information related to the budgetary basis of accounting used by the City as well as budget amendments made to the appropriated budget. The Schedules of the City’s Contributions provide information relating to the City’s adoption of GASB Statement No. 68. The Schedules of the City’s Proportionate Share of the Net Pension Liability provide information relating to the City’s adoption of GASB Statement No. 68.

Actuarial Unfunded UAAL as a Actuarial Actuarial Accrued AAL Funded Covered Percentage Valuation Value of Liability (UAAL) Ratio Payroll of Covered

Date Assets (a) (AAL) (b) (b-a) (a/b) (c) Payroll [(b-a)/c]

Primary Government

7/1/2014 -$ 138,748,707$ 138,748,707$ 0% 93,451,271$ 148.47% 7/1/2013 - 131,827,750 131,827,750 0% 91,937,081 143.39% 7/1/2012 - 108,363,404 108,363,404 0% 90,099,630 120.27%

Annual Annual Net Percent of OPEB OPEB Cost OPEB OPEB Cost Cost Contributed Liability Contributed

10,734,306$ 7,248,904$ 52,098,105$ 67.53% 9,546,348 6,737,364 48,612,704 70.58% 8,146,966 4,993,487 45,803,720 61.29%

SCHEDULE OF FUNDING PROGRESS

Primary Government

2015 2014 2013

SCHEDULE OF EMPLOYER CONTRIBUTIONS

Fiscal Year Ended

June 30

CITY OF COLUMBIA, SOUTH CAROLINA SCHEDULES OF FUNDING PROGRESS AND EMPLOYER CONTRIBUTIONS -

OTHER POSTEMPLOYMENT BENEFITS FOR THE FISCAL YEAR ENDED JUNE 30, 2015

(UNAUDITED)

Original Final Budget Budget Actual Variance

REVENUES:

General property taxes 51,406,365$ 51,406,365$ 50,563,321$ (843,044)$ Admission taxes - - 90,899 90,899 License and permits 30,732,426 30,732,426 37,837,446 7,105,020 Intergovernmental revenue 12,690,828 12,690,828 15,682,389 2,991,561 Charges for services 14,498,924 14,498,924 12,680,046 (1,818,878) Fines and forfeitures 1,310,000 1,310,000 1,033,384 (276,616) Revenues from use of money and property 50,000 50,000 147,133 97,133 Other revenues 121,404 121,404 152,823 31,419

Total revenues 110,809,947 110,809,947 118,187,441 7,377,494

EXPENDITURES: General government 7,486,258 7,549,128 6,889,085 660,043 Judicial 2,648,014 2,722,131 2,590,810 131,321 Finance department 1,912,136 1,912,136 1,779,283 132,853 Development services and planning 3,428,316 3,788,788 3,485,413 303,375 Public safety 57,859,235 62,776,396 57,706,979 5,069,417 Parks and recreation 10,978,400 11,253,361 10,934,710 318,651 Public works 18,131,836 20,494,569 17,880,627 2,613,942 General services 6,236,732 6,423,825 5,230,670 1,193,155 Community promotion 270,670 270,670 175,670 95,000 Community development 346,938 370,489 369,601 888 Nondepartmental 2,869,290 2,585,290 8,105,855 (5,520,565)

Total expenditures 112,167,825 120,146,783 115,148,703 4,998,080

Excess (deficiency) of revenues over (under) expenditures (1,357,878) (9,336,836) 3,038,738 12,375,574

OTHER FINANCING SOURCES (USES) Transfers in 16,434,143 17,895,987 14,341,918 (3,554,069) Transfers (out) (15,296,265) (8,779,151) (17,367,879) (8,588,728) Sale of capital assets 220,000 220,000 386,636 166,636 Issuance of capital lease - - 7,000,000 7,000,000

Total other financing sources (uses) 1,357,878 9,336,836 4,360,675 (4,976,161)

Excess (deficiency) of revenues and other financing sources over (under) expenditures and other uses - - 7,399,413 7,399,413

Fund balance - beginning 28,994,327 28,994,327 28,994,327 -

Fund balance - ending 28,994,327$ 28,994,327$ 36,393,740$ 7,399,413$

CITY OF COLUMBIA, SOUTH CAROLINA BUDGETARY COMPARISON SCHEDULE

GENERAL FUND (UNAUDITED)

For the Year Ended June 30, 2015

See accompanying Notes to Budgetary Comparison Schedule.

CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO BUDGETARY COMPARISON SCHEDULE (UNAUDITED)

YEAR ENDED JUNE 30, 2015

Budget and Budgetary Accounting A legal operating budget is prepared annually for the General Fund on the GAAP basis (modified accrual basis of accounting). Informal budgetary controls are maintained for other fund types, and therefore, budgetary comparisons to actual amounts are not presented. The approved budget and amendments are legally enacted through passage of an ordinance authorizing the City Manager to administer the budget and to transfer necessary appropriations among funds. Additional budget appropriations must be approved by Council, and at the fund level, expenditures may not legally exceed budgeted appropriations. All budget amounts presented in the accompanying financial statements and supplementary information have been adjusted for legally authorized revisions of the annual budget during and after the year. Appropriations, except remaining project appropriations, encumbrances, and unexpended grant appropriations lapse at year end. The final budget amendments presented are necessary based on the operating activities of the City. The budget was amended to reflect the increase of budgeted amount of transfers in, the decrease in the amount of transfers out and the in the increase in the amount of capital expenditures. These amendments have been approved by City Council authorizations.

Original Final Budget Revised Adopted Budget Amendments Budget

General Fund 127,464,090$ 1,461,844$ 128,925,934$

Schedule of Changes in Appropriated Budget For Year Ended June 30, 2015

June 30, 2015 June 30, 2014

Contractually required contribution 5,815,863$ 5,669,535$ Contributions made to pension plan 5,815,863 5,669,535

Contribution deficiency (excess) -$ -$

City's covered payroll during the measurement period 53,480,622$ 52,411,010$ Contributions as a percentage of covered employee payroll 10.87% 10.82%

June 30, 2015 June 30, 2014

Contractually required contribution 5,031,606$ 4,736,002$ Contributions made to pension plan 5,031,606 4,736,002

Contribution deficiency (excess) -$ -$

City's covered payroll during the measurement period 37,437,424$ 36,688,676$ Contributions as a percentage of covered employee payroll 13.44% 12.91%

The City implemented GASB 68 during fiscal year 2015, as such only the last two years of data are available.

SCRS

PORS

CITY OF COLUMBIA, SOUTH CAROLINA SCHEDULES OF THE CITY'S CONTRIBUTIONS FOR THE FISCAL YEAR ENDED JUNE 30, 2015

(UNAUDITED)

June 30, 2015 June 30, 2014

The City's percentage of the net pension liability 0.589139% 0.589139%

The City's proportionate share of the net pension liability 101,430,204$ 105,670,520$

The City's covered employee payroll 53,356,551$ 53,480,622$

The City's proportionate share of the net pension liability as a percentage of its covered payroll 190.10% 197.59%

The Plan's fiduciary net position as a percentage of the total pension liability 59.90% 59.90%

June 30, 2015 June 30, 2014

The City's percentage of the net pension liability 3.06671% 3.06671%

The City's proportionate share of the net pension liability 58,710,014$ 63,572,138$

The City's covered employee payroll 38,089,381$ 37,437,424$

The City's proportionate share of the net pension liability as a percentage of its covered payroll 154.14% 169.81%

The Plan's fiduciary net position as a percentage of the total pension liability 67.50% 67.50%

The City implemented GASB 68 during fiscal year 2015, as such only the last two years of data are available.

CITY OF COLUMBIA, SOUTH CAROLINA SCHEDULES OF THE CITY'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY

FOR THE FISCAL YEAR ENDED JUNE 30, 2015 (UNAUDITED)

SCRS

PORS

SUPPLEMENTARY INFORMATION

COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES

Original Final Budget Budget Actual Variance

REVENUES

General property taxes General property taxes - current 49,601,215$ 49,601,215$ 45,828,640$ (3,772,575)$ Real estate tax - Lexington County - current - - 2,071,184 2,071,184 Real estate tax - Lexington County - prior - - 10,226 10,226 Personal tax - Lexington County - current - - 185,568 185,568 Homestead exemption 1,050,000 1,050,000 1,070,667 20,667 Payment in lieu of taxes - - 635,365 635,365 Merchants inventory tax 755,150 755,150 761,671 6,521

Total general property taxes 51,406,365 51,406,365 50,563,321 (843,044)

Admission taxes - - 90,899 90,899

License and permits Business license 9,700,000 Business license - Business license - Insurance 10,700,000 Delinquent business license 189,416 Business license franchise Franchise fees - vendors 1,200 Arts and craft permits 2,300 New business list sales - Business license ordinance sales - Business license contractor's Group event license/permit 5,700 Building permits 610,350 Electrical permits 139,040 Plumbing permits 51,700 Gas permits 9,900 Sign permits 20,900 Heat permits 143,220 Zoning permits 52,800 Dog license 36,000 Chauffeur license - Other miscellaneous - business 130,000 Other miscellaneous - non-business 2,400 9,700,000 10,738,215 1,038,215 Telecommunications 850,000 850,000 794,364 (55,636) 10,700,000 11,153,218 453,218 189,416 93,063 (96,353) fees 8,065,000 8,065,000 13,225,397 5,160,397 1,200 - (1,200) 2,300 2,090 (210) - 309 309 - 1,050 1,050 decals 22,500 22,500 25,953 3,453 5,700 7,038 1,338 610,350 1,555,614 945,264 139,040 49,757 (89,283) 51,700 11,432 (40,268) 9,900 5,704 (4,196) 20,900 17,814 (3,086) 143,220 45,406 (97,814) 52,800 54,116 1,316 36,000 43,239 7,239 - 3,645 3,645 130,000 8,593 (121,407) 2,400 1,429 (971)

Total license and permits 30,732,426 30,732,426 37,837,446 7,105,020

Intergovernmental revenues State shared 2,809,494 2,809,494 3,120,862 311,368 School resource officer services 190,000 190,000 190,565 565 SC Motor fuel tax reimbursement - - 3,348 3,348 USC parking garage revenues - - 1,874,592 1,874,592 Highway signal maintenance 291,334 291,334 294,858 3,524 Fire rebate - Richland County 9,400,000 9,400,000 10,198,164 798,164

Total intergovernmental revenues 12,690,828 12,690,828 15,682,389 2,991,561

CITY OF COLUMBIA, SOUTH CAROLINA SCHEDULE OF REVENUES & OTHER FINANCING SOURCES

BUDGET AND ACTUAL

For the Year Ended June 30, 2015

GENERAL FUND

(Continued)

100

Original Final Budget Budget Actual Variance

Charges for services Trade publication renewals 7,700$ 7,700$ 8,560$ 860$ Support services 2,270,000 2,270,000 - (2,270,000) Return check service charges - - 1,211 1,211 Regulation code books - - 125 125 Duplicated business licenses - - 220 220 Compost sales 5,000 5,000 7,292 2,292 Recycling sales 105,000 105,000 114,422 9,422 Solid waste disposal fees 15,000 15,000 13,305 (1,695) Storm water inspection fees - - 2,964 2,964 Commercial bulk container disposal - - 1,679 1,679 Commercial roll cart disposal 44,000 44,000 44,001 1 Eleemosynary roll cart collection 29,000 29,000 65,476 36,476 Eleemosynary roll cart disposal 7,000 7,000 7,446 446 Eleemosynary homeowner collection 7,000 7,000 6,485 (515) Eleemosynary homeowner disposal 1,700 1,700 1,607 (93) Six night service disposal 19,000 19,000 21,239 2,239 Tree and forestry lot clearance fees 50,000 50,000 14,380 (35,620) Animal shelter fees - Richland County 280,000 280,000 284,697 4,697 Animal shelter fees 132,000 132,000 142,897 10,897 Employee animal clinic fees 1,000 1,000 38 (962) Hydrant fees 10,700,000 10,700,000 10,999,479 299,479 Police accident report copies 33,000 33,000 32,417 (583) Reimbursement police services 100,000 100,000 107,081 7,081 False fire alarm charges 20,000 20,000 28,413 8,413 Maxcy Gregg admission fees 25,000 25,000 39,290 14,290 Drew Park admission fees 310,000 310,000 346,474 36,474 Recreation athletics 50,000 50,000 65,788 15,788 Tennis court fees 57,500 57,500 66,816 9,316 Other parks/recreation fees 77,724 77,724 161,285 83,561 Finlay Park ground reservation 15,000 15,000 16,637 1,637 Columbia Action Council event fees 137,300 137,300 78,322 (58,978)

Total charges for services 14,498,924 14,498,924 12,680,046 (1,818,878)

Fines and forfeitures Criminal court fines 1,300,000 1,300,000 1,020,052 (279,948) Bond forfeiture from county courts - - 12,033 12,033 Late fees 10,000 10,000 1,299 (8,701)

Total fines and forfeitures 1,310,000 1,310,000 1,033,384 (276,616)

CITY OF COLUMBIA, SOUTH CAROLINA SCHEDULE OF REVENUES & OTHER FINANCING SOURCES

BUDGET AND ACTUAL GENERAL FUND

For the Year Ended June 30, 2015

(Continued)

101

Original Final Budget Budget Actual Variance

Revenues from use of money and property Interest on investments general 50,000$ 50,000$ 110,012$ 60,012$ Interest gain (loss) cost/market - - 37,121 37,121

Total revenues from use of money

and property 50,000 50,000 147,133 97,133

Other revenues Miscellaneous revenue 57,000 57,000 58,757 1,757 Rents and royalties 64,404 64,404 94,066 29,662

Total other revenues 121,404 121,404 152,823 31,419

TOTAL REVENUES 110,809,947 110,809,947 118,187,441 7,377,494

OTHER FINANCING SOURCES

Sale of capital assets 220,000 220,000 386,636 166,636

Issuance of capital lease - - 7,000,000 7,000,000

Transfers from Water and sewer operating fund 4,000,000 4,000,000 6,270,000 2,270,000 Hospitality fund 2,569,143 2,569,143 2,569,143 - Accommodations fund 25,000 25,000 25,000 - Other funds 7,500,000 7,500,000 5,477,775 (2,022,225) Unappropriated surplus transfer 2,340,000 3,801,844 - (3,801,844)

Total transfers 16,434,143 17,895,987 14,341,918 (3,554,069)

Total other financing sources 16,654,143 18,115,987 21,728,554 3,612,567

Total revenues and other financing sources 127,464,090$ 128,925,934$ 139,915,995$ 10,990,061$

CITY OF COLUMBIA, SOUTH CAROLINA SCHEDULE OF REVENUES & OTHER FINANCING SOURCES

BUDGET AND ACTUAL GENERAL FUND

(Continued)

For the Year Ended June 30, 2015

102

Original Final Budget Budget Actual Variance

EXPENDITURES

General Government Legislative

Personnel services 472,127$ 472,127$ 486,146$ (14,019)$ Supplies 29,500 29,500 25,774 3,726 Other services and charges 216,800 242,972 184,582 58,390

Total legislative 718,427 744,599 696,502 48,097

Executive/Administration Personnel services 412,291 412,291 389,754 22,537 Supplies 27,230 32,225 28,098 4,127 Other services and charges 62,562 77,567 17,443 60,124

Total executive/administration 502,083 522,083 435,295 86,788

Governmental Affairs Personnel services 272,437 272,437 274,714 (2,277) Supplies 16,215 16,215 11,629 4,586 Other services and charges 164,114 164,114 159,727 4,387

Total governmental affairs 452,766 452,766 446,070 6,696

Chief Financial Officer Personnel services 156,233 156,233 157,290 (1,057) Supplies 3,135 10,135 7,237 2,898 Other services and charges 22,776 15,776 15,300 476 Capital outlay - 23,256 23,256 -

Total administrative operations 182,144 205,400 203,083 2,317

Senior Assistant City Manager Personnel services 255,053 255,053 257,010 (1,957) Supplies 6,655 6,655 1,393 5,262 Other services and charges 55,409 50,799 35,616 15,183

Total senior assistant city manager 317,117 312,507 294,019 18,488

Assistant City Manager for Operations Personnel services 272,050 272,050 295,920 (23,870) Supplies 18,700 14,900 12,296 2,604 Other services and charges 77,694 87,495 78,594 8,901

Total assistant city manager for

operations 368,444 374,445 386,810 (12,365)

Citizen's Support Services Personnel services 380,672 380,672 380,461 211 Supplies 17,500 17,500 17,884 (384) Other services and charges 23,075 23,075 21,721 1,354

Total citizen's support services 421,247 421,247 420,066 1,181

CITY OF COLUMBIA, SOUTH CAROLINA SCHEDULE OF EXPENDITURES AND OTHER FINANCING USES

BUDGET AND ACTUAL GENERAL FUND

For the Year Ended June 30, 2015

(Continued)

103

Original Final Budget Budget Actual Variance

Office of Business Opportunities Personnel services 367,013$ 367,013$ 350,749$ 16,264$ Supplies 27,025 31,211 30,163 1,048 Other services and charges 164,515 160,329 167,703 (7,374)

Total office of business opportunities 558,553 558,553 548,615 9,938

Human Resources and Training Personnel services 876,454 876,454 812,202 64,252 Supplies 55,787 51,787 46,825 4,962 Other services and charges 48,205 52,205 43,466 8,739

Total human resources and training 980,446 980,446 902,493 77,953

Budget and Program Personnel services 268,536 268,536 254,671 13,865 Supplies 3,750 6,450 4,115 2,335 Other services and charges 79,650 68,950 49,089 19,861

Total budget and program 351,936 343,936 307,875 36,061

Legal Personnel services 1,040,146 1,216,146 889,308 326,838 Supplies 60,507 83,707 55,942 27,765 Other services and charges 959,307 760,122 742,011 18,111

Total legal 2,059,960 2,059,975 1,687,261 372,714

Public Information Personnel services 410,043 410,043 404,689 5,354 Supplies 54,203 54,530 45,461 9,069 Other services and charges 108,889 108,598 110,846 (2,248)

Total public information 573,135 573,171 560,996 12,175

Total General Government 7,486,258 7,549,128 6,889,085 660,043

Judicial Municipal Court

Personnel services 2,309,819 2,310,769 2,231,330 79,439 Supplies 88,695 95,395 97,240 (1,845) Other services and charges 249,500 241,865 211,388 30,477 Capital outlay - 74,102 50,852 23,250

Total municipal court 2,648,014 2,722,131 2,590,810 131,321

Total Judicial 2,648,014 2,722,131 2,590,810 131,321

CITY OF COLUMBIA, SOUTH CAROLINA SCHEDULE OF EXPENDITURES AND OTHER FINANCING USES

BUDGET AND ACTUAL GENERAL FUND

For the Year Ended June 30, 2015

(Continued)

104

Original Final Budget Budget Actual Variance

Finance Department Administration

Personnel services 135,090$ 135,090$ 136,154$ (1,064)$ Supplies 5,000 5,000 1,141 3,859 Other services and charges 59,980 59,980 58,116 1,864

Total administration 200,070 200,070 195,411 4,659

Accounting Personnel services 793,697 793,697 713,893 79,804 Supplies 22,350 22,350 16,511 5,839 Other services and charges 105,280 105,280 89,242 16,038

Total accounting 921,327 921,327 819,646 101,681

Business License Personnel services 666,494 666,494 646,201 20,293 Supplies 26,638 26,638 27,704 (1,066) Other services and charges 97,607 97,607 90,321 7,286

Total business license 790,739 790,739 764,226 26,513

Total Finance Department 1,912,136 1,912,136 1,779,283 132,853

Development Services and Planning Development Services

Personnel services 2,719,311 2,719,311 2,766,588 (47,277) Supplies 114,245 114,245 85,477 28,768 Other services and charges 544,020 880,842 376,852 503,990 Capital outlay 50,740 74,390 256,496 (182,106)

Total development services 3,428,316 3,788,788 3,485,413 303,375

Total Development Services and Planning 3,428,316 3,788,788 3,485,413 303,375

Public Safety Police Department Administrative Services

Personnel services 3,312,346 3,312,346 2,467,566 844,780 Supplies 987,581 987,581 730,857 256,724 Other services and charges 1,604,286 1,604,320 1,834,482 (230,162) Capital outlay - - 7,557 (7,557)

Total administrative services 5,904,213 5,904,247 5,040,462 863,785

CITY OF COLUMBIA, SOUTH CAROLINA SCHEDULE OF EXPENDITURES AND OTHER FINANCING USES

BUDGET AND ACTUAL GENERAL FUND

(Continued)

For the Year Ended June 30, 2015

(Continued)

105

Original Final Budget Budget Actual Variance

Operations Personnel services 18,935,647$ 18,935,647$ 16,361,612$ 2,574,035$ Supplies 1,187,287 2,003,114 1,166,261 836,853 Other services and charges 789,721 790,935 809,455 (18,520) Capital outlay - 1,753,912 528,750 1,225,162

Total operations 20,912,655 23,483,608 18,866,078 4,617,530

Special Services Personnel services 7,398,987 7,398,987 9,670,208 (2,271,221) Supplies 360,929 360,929 212,027 148,902 Other services and charges 254,173 254,173 290,564 (36,391) Capital outlay - 179,886 8,500 171,386

Total special services 8,014,089 8,193,975 10,181,299 (1,987,324)

Total Police Department 34,830,957 37,581,830 34,087,839 3,493,991

Fire Department - City Administration

Personnel services 933,513 933,513 891,789 41,724 Supplies 31,425 43,425 35,208 8,217 Other services and charges 30,260 20,960 24,587 (3,627) Capital outlay 70,000 70,000 - 70,000

Total administration 1,065,198 1,067,898 951,584 116,314

Fire Prevention Personnel services 1,093,885 1,093,885 1,032,705 61,180 Supplies 82,304 44,304 38,844 5,460 Other services and charges 81,950 66,150 60,698 5,452 Capital outlay 20,000 20,000 - 20,000

Total fire prevention 1,278,139 1,224,339 1,132,247 92,092

Fire Suppression Personnel services 14,569,577 14,569,577 15,024,907 (455,330) Supplies 1,334,500 1,237,980 1,045,102 192,878 Other services and charges 1,439,400 1,604,490 1,425,558 178,932 Capital outlay 20,000 2,190,351 1,131,496 1,058,855

Total fire suppression 17,363,477 19,602,398 18,627,063 975,335

Fire Logistics Personnel services 132,323 132,323 127,904 4,419 Supplies 98,605 77,605 49,000 28,605 Other services and charges 73,000 58,100 50,606 7,494 Capital outlay 72,500 72,500 12,231 60,269

Total fire logistics 376,428 340,528 239,741 100,787

Total Fire Department - City 20,083,242 22,235,163 20,950,635 1,284,528

CITY OF COLUMBIA, SOUTH CAROLINA SCHEDULE OF EXPENDITURES AND OTHER FINANCING USES

BUDGET AND ACTUAL GENERAL FUND

(Continued)

For the Year Ended June 30, 2015

(Continued)

106

Original Final Budget Budget Actual Variance

911 Emergency and 311 Center Personnel services 2,642,086$ 2,642,086$ 2,428,035$ 214,051$ Supplies 54,400 68,767 44,489 24,278 Other services and charges 248,550 248,550 195,981 52,569

Total 911 Emergency and 311 Center 2,945,036 2,959,403 2,668,505 290,898

Total Public Safety 57,859,235 62,776,396 57,706,979 5,069,417

Parks and Recreation Recreation

Personnel services 3,940,579 3,856,079 3,656,044 200,035 Supplies 161,320 159,903 170,034 (10,131) Other services and charges 1,081,374 1,077,241 1,251,255 (174,014) Capital outlay - 92,752 92,742 10

Total recreation 5,183,273 5,185,975 5,170,075 15,900

Parks Personnel services 4,416,100 4,355,950 4,310,735 45,215 Supplies 477,458 581,733 537,395 44,338 Other services and charges 676,569 711,622 677,901 33,721 Capital outlay 225,000 418,081 238,604 179,477

Total parks 5,795,127 6,067,386 5,764,635 302,751

Total Parks and Recreation 10,978,400 11,253,361 10,934,710 318,651

Public Works Administration

Personnel services 350,125 350,125 310,851 39,274 Supplies 27,650 32,550 19,288 13,262 Other services and charges 108,650 114,650 120,355 (5,705)

Total administration 486,425 497,325 450,494 46,831

Solid Waste Personnel services 4,400,379 4,400,379 4,249,160 151,219 Supplies 1,327,896 1,373,060 910,498 462,562 Other services and charges 2,344,535 2,219,970 1,902,763 317,207 Capital outlay 15,000 1,517,668 810,244 707,424

Total solid waste 8,087,810 9,511,077 7,872,665 1,638,412

CITY OF COLUMBIA, SOUTH CAROLINA SCHEDULE OF EXPENDITURES AND OTHER FINANCING USES

BUDGET AND ACTUAL GENERAL FUND

(Continued)

For the Year Ended June 30, 2015

(Continued)

107

Original Final Budget Budget Actual Variance

Streets and Storm Drains Personnel services 1,815,856$ 1,815,856$ 1,466,476$ 349,380$ Supplies 229,935 234,710 186,471 48,239 Other services and charges 108,075 110,092 91,934 18,158 Capital outlay 29,700 314,853 278,888 35,965

Total streets and storm drains 2,183,566 2,475,511 2,023,769 451,742

Animal Control Personnel services 1,150,523 1,150,523 1,132,152 18,371 Supplies 174,266 189,801 177,196 12,605 Other services and charges 138,673 123,155 126,369 (3,214) Capital outlay - 19,342 - 19,342

Total animal control 1,463,462 1,482,821 1,435,717 47,104

Forestry and Beautification Personnel services 1,729,981 1,729,981 1,528,184 201,797 Supplies 216,777 216,527 165,842 50,685 Other services and charges 266,802 266,904 252,693 14,211 Capital outlay 8,500 487,447 410,306 77,141

Total forestry and beautification 2,222,060 2,700,859 2,357,025 343,834

Traffic Engineering Personnel services 1,350,224 1,350,224 1,299,345 50,879 Supplies 196,045 227,545 164,740 62,805 Other services and charges 2,103,394 2,112,394 2,153,110 (40,716) Capital outlay 38,850 136,813 123,762 13,051

Total traffic engineering 3,688,513 3,826,976 3,740,957 86,019

Total Public Works 18,131,836 20,494,569 17,880,627 2,613,942

General Services Information Technology

Personnel services 2,094,766 2,094,766 1,735,331 359,435 Supplies 162,780 162,780 122,406 40,374 Other services and charges 1,397,428 1,423,176 1,091,123 332,053 Capital outlay - 21,331 274,042 (252,711)

Total information technology 3,654,974 3,702,053 3,222,902 479,151

Support Services Personnel services 558,303 558,303 534,016 24,287 Supplies 59,550 59,550 62,968 (3,418) Other services and charges 1,298,905 1,328,007 1,134,609 193,398 Capital outlay 665,000 775,912 276,175 499,737

Total public buildings 2,581,758 2,721,772 2,007,768 714,004

Total General Services 6,236,732 6,423,825 5,230,670 1,193,155

CITY OF COLUMBIA, SOUTH CAROLINA SCHEDULE OF EXPENDITURES AND OTHER FINANCING USES

BUDGET AND ACTUAL GENERAL FUND

(Continued)

For the Year Ended June 30, 2015

(Continued)

108

Original Final Budget Budget Actual Variance

Community Promotion Community promotion 270,670$ 270,670$ 175,670$ 95,000$

Total Community Promotion 270,670 270,670 175,670 95,000

Community Development Personnel services 290,688 290,688 281,596 9,092 Supplies 24,100 24,100 36,512 (12,412) Other services and charges 32,150 32,167 51,493 (19,326) Capital outlay - 23,534 - 23,534

Total community development 346,938 370,489 369,601 888

Nondepartmental Contingencies

Supplies 475,000 - - - Other services and charges 889,290 1,080,290 910,345 169,945 Capital Outlay - - 3,988,916 (3,988,916)

Total contingencies 1,364,290 1,080,290 4,899,261 (3,818,971)

Administration Other services and charges 505,000 505,000 515,801 (10,801)

Total administration 505,000 505,000 515,801 (10,801)

Homeless Services Other services and charges 1,000,000 1,000,000 843,550 156,450

Total homeless services 1,000,000 1,000,000 843,550 156,450

Debt Service Principal payments on debt - - 936,791 (936,791) Interest payments on debt - - 910,452 (910,452)

Total debt service - - 1,847,243 (1,847,243)

Total Nondepartmental 2,869,290 2,585,290 8,105,855 (5,520,565)

TOTAL EXPENDITURES 112,167,825 120,146,783 115,148,703 4,998,080

OTHER FINANCING USES

Transfers to Other Funds Debt service 5,927,980 5,927,980 5,927,980 - Transfers interfund 9,368,285 2,851,171 11,439,899 (8,588,728)

Total Transfers to Other Funds 15,296,265 8,779,151 17,367,879 (8,588,728)

Total Other Financing Uses 15,296,265 8,779,151 17,367,879 (8,588,728)

TOTAL EXPENDITURES AND OTHER FINANCING USES 127,464,090$ 128,925,934$ 132,516,582$ (3,590,648)$

CITY OF COLUMBIA, SOUTH CAROLINA SCHEDULE OF EXPENDITURES AND OTHER FINANCING USES

BUDGET AND ACTUAL GENERAL FUND

(Continued)

For the Year Ended June 30, 2015

109

NONMAJOR GOVERNMENTAL FUNDS

Special Revenue Funds Liquor Permit Fee – accounts for receipts from the sale of temporary permits to allow the possession, sale, and consumption of alcoholic liquors for a period not to exceed 24 hours. Business Improvement District accounts for the Business Improvement District taxes assessed on the business in the downtown area of the City to promote downtown beatification. Accommodations Tax accounts for the 2% State Hotel Accommodations Tax receipts to promote tourism-related activities of City organizations. Confiscated Drug Program accounts for the disposition of forfeited property and money seized in Columbia by law enforcement agencies. Hospitality Tax accounts for a 2% gross sales tax on prepared food and beverages sold in establishments to promote tourism-related activities of City organizations. Community Development grants and awards accounts for the Community Development Block Grants and other community development type grants. Federal Grants accounts for the receipt of Federal grants except for Community Development Block Grants. Other Programs – accounts for miscellaneous programs for park improvements and special events. Tourism Development Convention Center accounts for a 3% Tourism Development Fee imposed upon the rental of hotels, motels, and other lodging establishments in the City. This fee is dedicated to the attraction of and improvement of the services provided to tourists and to the retirement of the Series 2012 Certificates of Participation revenue bonds. Debt Service Funds Debt Service accounts for the accumulation of financial resources for the payment of interest and principal on the general long-term debt of the City, other than debt service payments financed by the Tourism Development Convention Center fund and the proprietary fund types. Ad valorem taxes, interest earnings on the investments of the Debt Service Fund, and interest earned on investments of certain Capital Projects Funds are used for the payment of principal, interest, and fiscal agent expenditures on the City’s general obligation and revenue bonds. Capital Project Funds Congaree Vista District accounts for the construction and development of parks and infrastructure within the Congaree Vista District funded by tax increment district property tax revenues. Streetscaping accounts for capital improvements to street landscaping. General Capital Projects accounts for various capital improvements in the City. Miscellaneous Projects accounts for various capital projects funded by the General Fund. Permanent Trust Anna Dickson Park Fund accounts for an endowment for which the investment income must be used to purchase flowers for the parks.

Special Revenue

Liquor Permit Fee

Business Improvement

District Accommodations

Tax Confiscated

Drug Program Hospitality

Tax Community

Development Federal Grants

Other Programs

Tourism Development Convention

Center Total

ASSETS Cash and cash equivalents 533,603$ -$ 136,213$ 261,323$ 840,122$ -$ -$ 214,158$ 5,023,475$ 7,008,894$ Investments - - - 47,679 - - - - - 47,679 Due from the Federal government - - - - - 671,334 261,168 - - 932,502 Due from State government 26,580 - 741,860 - - - - - - 768,440 Due from County government - - - - - - - - 500,130 500,130 Accrued interest receivable - - - - - - - - 9 9 Due from other funds - - - - - - - - - -

TOTAL ASSETS 560,183$ -$ 878,073$ 309,002$ 840,122$ 671,334$ 261,168$ 214,158$ 5,523,614$ 9,257,654$

LIABILITIES AND FUND BALANCES Liabilities

Accounts payable -$ -$ 1,583$ 21,841$ 960$ 256,828$ 79,656$ 3,094$ 7,800$ 371,762$ Accrued salaries and benefits - - - - - 21,587 2,519 4,770 - 28,876 Retainage payable - - - - - - - - - - Due to component unit - - 825,000 - - - - - - 825,000 Refundable advances - - - 55,539 - 727 23,803 - - 80,069 Due to other funds - - - - - 392,192 155,190 - - 547,382

Total liabilities - - 826,583 77,380 960 671,334 261,168 7,864 7,800 1,853,089

Fund balances Nonspendable - - - - - - - - - - Restricted 560,183 - 51,490 231,622 839,162 - - 206,294 5,515,814 7,404,565 Assigned - - - - - - - - - -

Total fund balances 560,183 - 51,490 231,622 839,162 - - 206,294 5,515,814 7,404,565

TOTAL LIABILITIES AND FUND BALANCES 560,183$ -$ 878,073$ 309,002$ 840,122$ 671,334$ 261,168$ 214,158$ 5,523,614$ 9,257,654$

CITY OF COLUMBIA, SOUTH CAROLINA COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS

June 30, 2015

(Continued)

110

Permanent Trust

Debt Service Fund

Congaree Vista District Streetscaping

General Capital Projects

Miscellaneous Projects Total Dickson Trust

Total Nonmajor Governmental

Funds

ASSETS Cash and cash equivalents 3,232,499$ 5,548,755$ 7,595,360$ 9,063,393$ 901,425$ 23,108,933$ 5,586$ 33,355,912$ Investments 746,433 - - - 31,638,499 31,638,499 - 32,432,611 Due from the Federal government - - - - - - - 932,502 Due from State government - - - - 2,246,813 2,246,813 - 3,015,253 Due from County government - - - - - - - 500,130 Accrued interest receivable - - - - 6 6 - 15 Due from other funds - 100,000 - 600,956 2,285,244 2,986,200 - 2,986,200

TOTAL ASSETS 3,978,932$ 5,648,755$ 7,595,360$ 9,664,349$ 37,071,987$ 59,980,451$ 5,586$ 73,222,623$

LIABILITIES AND FUND BALANCES Liabilities

Accounts payable -$ -$ 38,546$ 465,111$ 3,587,764$ 4,091,421$ -$ 4,463,183$ Accrued salaries and benefits - - - - - - - 28,876 Retainage payable - - 105,159 80,287 353,222 538,668 - 538,668 Due to component unit - - - - - - - 825,000 Refundable advances - - - - - - - 80,069 Due to other funds - - - - 1,396,270 1,396,270 - 1,943,652

Total liabilities - - 143,705 545,398 5,337,256 6,026,359 - 7,879,448

Fund balances Nonspendable - - - - - - 5,000 5,000 Restricted 3,978,932 5,648,755 - - 31,734,731 37,383,486 586 48,767,569 Assigned - - 7,451,655 9,118,951 - 16,570,606 - 16,570,606

Total fund balances 3,978,932 5,648,755 7,451,655 9,118,951 31,734,731 53,954,092 5,586 65,343,175

TOTAL LIABILITIES AND FUND BALANCES 3,978,932$ 5,648,755$ 7,595,360$ 9,664,349$ 37,071,987$ 59,980,451$ 5,586$ 73,222,623$

Capital Projects

CITY OF COLUMBIA, SOUTH CAROLINA

COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS (CONTINUED)

June 30, 2015

111

Liquor Permit Fee

Business Improvement

District Accommodations

Tax Confiscated

Drug Program Hospitality

Tax Community

Development Federal Grants

Other Programs

Tourism Development Convention

Center Total REVENUES Federal government -$ -$ -$ -$ -$ 2,890,899$ 543,493$ -$ -$ 3,434,392$ State government 411,210 - - - - - - - - 411,210 County government - 778,396 - - - - - - 5,828,040 6,606,436 Promotions - - - - - - - 43,606 - 43,606 Charges for services - - - - - - - 68,974 - 68,974 Fines and forfeitures - - - - - - - 203,769 - 203,769 Confiscated funds - - - 279,147 - - - - - 279,147 Sales and hospitality taxes - - 2,084,883 - 10,450,637 - - - - 12,535,520 Interest income - - - 91 4,907 - - - 110 5,108 Other revenue - - - - - 168 285,714 - - 285,882 Total revenues 411,210 778,396 2,084,883 279,238 10,455,544 2,891,067 829,207 316,349 5,828,150 23,874,044

EXPENDITURES Current

General government - - 8,848 - - - 93,719 - - 102,567 Public safety - - - 181,671 - - 531,229 179,487 - 892,387 Public services - - - - - - - - - - Community promotion - 778,396 2,566,972 - 6,308,175 2,263,578 - 82,361 13,407 12,012,889

Debt Service Principal - - - - - - - - 2,275,000 2,275,000 Interest and other charges - - - - - - - - 451,588 451,588 Fiscal agent charges - - - - - - - - - - Debt issuance costs - - - - - - - - - -

Capital Outlay Capital outlay - - - 65,967 - - 205,561 - 11,000 282,528

Total expenditures - 778,396 2,575,820 247,638 6,308,175 2,263,578 830,509 261,848 2,750,995 16,016,959 Excess (deficiency) of revenues

over expenditures 411,210 - (490,937) 31,600 4,147,369 627,489 (1,302) 54,501 3,077,155 7,857,085

OTHER FINANCING SOURCES (USES) Issuance of debt - - - - - - - - - - Premium on bond issuance - - - - - - - - - - Transfers in - - - - - 238,257 1,302 1,182 - 240,741 Transfers out - - (25,000) - (5,211,710) (865,746) - - - (6,102,456) Total other financing sources

and uses - - (25,000) - (5,211,710) (627,489) 1,302 1,182 - (5,861,715)

Net change in fund balances 411,210 - (515,937) 31,600 (1,064,341) - - 55,683 3,077,155 1,995,370 Fund balances - beginning 148,973 - 567,427 200,022 1,903,503 - - 150,611 2,438,659 5,409,195 Fund balances - ending 560,183$ -$ 51,490$ 231,622$ 839,162$ -$ -$ 206,294$ 5,515,814$ 7,404,565$

CITY OF COLUMBIA, SOUTH CAROLINA

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

NONMAJOR GOVERNMENTAL FUNDS

Year Ended June 30, 2015

Special Revenue

(Continued)

112

Permanent Trust

Debt Service Fund

Congaree Vista District Streetscaping

General Capital Projects

Miscellaneous Projects Total Dickson Trust

Total Nonmajor Governmental

Funds REVENUES Federal government -$ -$ -$ -$ -$ -$ -$ 3,434,392$ State government - - - 25,990 2,944,480 2,970,470 - 3,381,680 County government - - - - - - - 6,606,436 Promotions - - - - - - - 43,606 Charges for services - - - - - - - 68,974 Fines and forfeitures - - - - - - - 203,769 Confiscated funds - - - - - - - 279,147 Sales and hospitality taxes - - - - - - - 12,535,520 Interest income 104 - - - 10,916 10,916 5 16,133 Other revenue - 267,000 935,401 22,524 26,834 1,251,759 - 1,537,641 Total revenues 104 267,000 935,401 48,514 2,982,230 4,233,145 5 28,107,298

EXPENDITURES Current

General government - 216,205 - - - 216,205 - 318,772 Public safety - - - - - - - 892,387 Public services - - - - 700,962 700,962 - 700,962 Community promotion - - - 783,942 - 783,942 - 12,796,831

Debt Service Principal 6,115,000 - - - - - - 8,390,000 Interest and other charges 1,810,806 - - - - - - 2,262,394 Fiscal agent charges 5,461 - - - - - - 5,461 Debt issuance costs - - - - 904,310 904,310 - 904,310

Capital Outlay Capital outlay - 20,390 979,795 2,565,808 8,121,498 11,687,491 - 11,970,019

Total expenditures 7,931,267 236,595 979,795 3,349,750 9,726,770 14,292,910 - 38,241,136 Excess (deficiency) of revenues

over expenditures (7,931,163) 30,405 (44,394) (3,301,236) (6,744,540) (10,059,765) 5 (10,133,838)

OTHER FINANCING SOURCES (USES) Issuance of debt - - - - 26,175,000 26,175,000 - 26,175,000 Premium on debt issuance - - - - 3,747,839 3,747,839 - 3,747,839 Transfers in 8,570,547 - - 7,247,754 125,873 7,373,627 - 16,184,915 Transfers out - - - (5,766,784) (5,766,784) - (11,869,240) Total other financing sources

and uses 8,570,547 - - 7,247,754 24,281,928 31,529,682 - 34,238,514

Net change in fund balances 639,384 30,405 (44,394) 3,946,518 17,537,388 21,469,917 5 24,104,676 Fund balances - beginning 3,339,548 5,618,350 7,496,049 5,172,433 14,197,343 32,484,175 5,581 41,238,499

Fund balances - ending 3,978,932$ 5,648,755$ 7,451,655$ 9,118,951$ 31,734,731$ 53,954,092$ 5,586$ 65,343,175$

Capital Projects

CITY OF COLUMBIA, SOUTH CAROLINA

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

NONMAJOR GOVERNMENTAL FUNDS (CONTINUED)

Year Ended June 30, 2015

113

NONMAJOR PROPRIETARY FUNDS

Nonmajor Proprietary Funds are used to account for operations of the City (a) that are financed and operated in a manner similar to private business where the intent is for the cost of providing goods or services to be recovered, in whole or in part, through user charges; or (b) where the City Council has decided that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. These funds include:

Hydro-Electric Facilities Fund accounts for hydro-electric plant activities. Stormwater Facilities Fund accounts for stormwater utility activities. Redevelopment Programs Fund accounts for various home rehabilitation and mortgage lending programs funded from various sources. Parks and Recreation Camp Fund accounts for the parks and recreations camp activities. Economic Development Fund accounts for economic development activities.

Total Hydro Electric Stormwater Redevelopment Parks and Economic Nonmajor

Facilities Facilities Programs Recreation Development Proprietary Fund Fund Fund Camp Fund Fund Funds

ASSETS Current Assets

Cash and cash equivalents 305,409$ 14,071,548$ 6,358,765$ 148,611$ -$ 20,884,333$ Investments - 5,679,240 - - - 5,679,240 Accounts receivable, net 119,530 4,213 - - - 123,743 Mortgage notes receivable, net - - 420,471 - - 420,471 Accrued interest receivable - 11,626 - - - 11,626 Due from component units - - 370,168 - - 370,168 Prepaid expenses - 9,286 - - - 9,286 Real estate held for resale - - 84,810 - - 84,810

Total current assets 424,939 19,775,913 7,234,214 148,611 - 27,583,677

Noncurrent Assets Mortgage notes receivable, net - - 20,603,101 - - 20,603,101 Capital assets

Land 327,169 19,009 - - - 346,178 Buildings, improvements, and

utility plant 16,173,300 13,467,245 - - - 29,640,545 Machinery and equipment - 3,570,322 - - - 3,570,322 Less accumulated depreciation (4,124,192) (4,330,635) - - - (8,454,827) Construction in progress - 2,910,068 - - - 2,910,068

Net capital assets 12,376,277 15,636,009 - - - 28,012,286

Total noncurrent assets 12,376,277 15,636,009 20,603,101 - - 48,615,387

TOTAL ASSETS 12,801,216 35,411,922 27,837,315 148,611 - 76,199,064

DEFERRED OUTFLOWS OF RESOURCES Deferred outflows related to

net pension liability - 255,314 19,156 15,288 - 289,758

TOTAL ASSETS AND DEFERRED OUTFLOWS OF RESOURCES 12,801,216$ 35,667,236$ 27,856,471$ 163,899$ -$ 76,488,822$

LIABILITIES, DEFERRED INFLOWS AND FUND NET POSITION

Current Liabilities Accounts payable 58$ 456,752$ 56,089$ 8,123$ -$ 521,022$ Accrued salaries and benefits - 85,761 6,738 19,791 - 112,290 Compensated absences - 14,250 4,079 - - 18,329 Retainage payable - 164,102 - - - 164,102

Total current liabilities 58 720,865 66,906 27,914 - 815,743

Noncurrent Liabilities Net pension liability - 2,674,342 202,356 160,140 - 3,036,838 Compensated absences - 57,001 16,314 - - 73,315

Total noncurrent liabilities - 2,731,343 218,670 160,140 - 3,110,153

Total liabilities 58 3,452,208 285,576 188,054 - 3,925,896

DEFERRED INFLOWS OF RESOURCES Deferred inflows related to

net pension liability - 256,253 19,227 15,344 - 290,824

Fund Net Position Net investment in capital assets 12,376,277 15,636,009 - - - 28,012,286 Unrestricted 424,881 16,322,766 27,551,668 (39,499) - 44,259,816

Total fund net position 12,801,158 31,958,775 27,551,668 (39,499) - 72,272,102

TOTAL LIABILITIES, DEFERRED INFLOWS AND FUND NET POSITION 12,801,216$ 35,667,236$ 27,856,471$ 163,899$ -$ 76,488,822$

CITY OF COLUMBIA, SOUTH CAROLINA COMBINING STATEMENT OF NET POSITION

NONMAJOR PROPRIETARY FUNDS

June 30, 2015

114

Total Hydro Electric Stormwater Redevelopment Parks and Economic Nonmajor

Facilities Facilities Programs Recreation Development Proprietary Fund Fund Fund Camp Fund Fund Funds

Operating revenues Charges for service 2,537,971$ 7,222,413$ 542,030$ 300,931$ -$ 10,603,345$ Other operating revenue - 300,000 450,020 - - 750,020

Total operating revenues 2,537,971 7,522,413 992,050 300,931 - 11,353,365

Operating expenses Personnel services - 2,573,024 183,186 224,767 - 2,980,977 Materials and supplies - 223,099 1,636 48,916 - 273,651 Other services and charges 2,099,077 1,044,520 494,270 32,536 - 3,670,403 Depreciation 323,466 790,049 - - - 1,113,515 Bad debt expense - - 468,660 - - 468,660

Total operating expenses 2,422,543 4,630,692 1,147,752 306,219 - 8,507,206

Operating income (loss) 115,428 2,891,721 (155,702) (5,288) - 2,846,159

Nonoperating revenues (expenses) Investment income (loss) - 90,231 - - - 90,231 Other nonoperating revenue 500,000 - - - - 500,000 Gain from sale of assets - 11,205 88,871 - - 100,076

Total nonoperating revenues (expenses) 500,000 101,436 88,871 - - 690,307

Income (loss) before transfers 615,428 2,993,157 (66,831) (5,288) - 3,536,466

Transfers Transfers in - 500,000 598,236 - - 1,098,236 Transfers out (500,000) (84,076) (240,604) (10,750) - (835,430)

Total transfers (500,000) 415,924 357,632 (10,750) - 262,806

Change in net position 115,428 3,409,081 290,801 (16,038) - 3,799,272

Net position - beginning as

previously reported 12,685,730 31,202,273 27,459,892 135,376 - 71,483,271

Restatement (Note VII. C.) - (2,652,579) (199,025) (158,837) - (3,010,441) Net position - beginning as restated 12,685,730 28,549,694 27,260,867 (23,461) - 68,472,830

Net position - ending 12,801,158$ 31,958,775$ 27,551,668$ (39,499)$ -$ 72,272,102$

CITY OF COLUMBIA, SOUTH CAROLINA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION

NONMAJOR PROPRIETARY FUNDS

Year Ended June 30, 2015

115

Total Hydro Electric Stormwater Redevelopment Parks and Economic Nonmajor

Facilities Facilities Programs Recreation Development Proprietary Fund Fund Fund Camp Fund Fund Funds

Cash Flows From Operating Activities Receipts from customers and users 2,795,015$ 7,520,620$ 992,050$ 300,931$ -$ 11,608,616$ Internal activity - payments to other funds - (790,826) - (13,663) - (804,489) Payments to suppliers (2,099,433) (1,013,654) (602,427) (77,542) - (3,793,056) Payments to employees - (2,084,675) (177,373) (210,050) - (2,472,098)

Net cash provided by (used in) operating activities 695,582 3,631,465 212,250 (324) - 4,538,973

Cash Flows From Noncapital Financing Activities

Advances from other funds - - 1,665 - - 1,665 Advances to other funds - - - - (7,000,000) (7,000,000) Transfers in - 500,000 598,236 - - 1,098,236 Transfers out (500,000) (84,076) (240,604) (10,750) - (835,430)

Net cash provided by (used in) noncapital financing activities (500,000) 415,924 359,297 (10,750) (7,000,000) (6,735,529)

Cash Flows From Capital And Related Financing Activities

Purchase of capital assets - (4,204,077) - - - (4,204,077) Proceeds from sale of capital assets - 11,205 88,871 - - 100,076

Net cash provided by (used in) capital and related financing activities - (4,192,872) 88,871 - - (4,104,001)

Cash Flows From Investing Activities Sale of investments - 333,795 - - - 333,795 Advances of mortgage notes receivable - - (3,056,979) - (96,915) (3,153,894) Collections of mortgage notes receivable - - 2,567,568 - 5,909,222 8,476,790 Interest received - 89,812 - - - 89,812

Net cash provided by (used in) investing activities - 423,607 (489,411) - 5,812,307 5,746,503

Net increase (decrease) in cash and cash equivalents 195,582 278,124 171,007 (11,074) (1,187,693) (554,054)

Cash and cash equivalents, July 1, 2014 109,827 13,793,424 6,187,758 159,685 1,187,693 21,438,387

Cash and cash equivalents, June 30, 2015 305,409$ 14,071,548$ 6,358,765$ 148,611$ -$ 20,884,333$

CITY OF COLUMBIA, SOUTH CAROLINA COMBINING STATEMENT OF CASH FLOWS

NONMAJOR PROPRIETARY FUNDS

Year Ended June 30, 2015

(Continued)

116

Total Hydro Electric Stormwater Redevelopment Parks and Economic Nonmajor

Facilities Facilities Programs Recreation Development Proprietary Fund Fund Fund Camp Fund Fund Funds

Reconciliation Of Operating Income (Loss) To Net Cash Provided By (Used In) Operating Activities

Operating income (loss) 115,428$ 2,891,721$ (155,702)$ (5,288)$ -$ 2,846,159$

Adjustments to reconcile operating income to net cash provided by (used in) operating activities:

Depreciation 323,466 790,049 - - - 1,113,515 Accrued benefits related to net pension liability - 34,745 3,452 1,359 - 39,556 Bad debt expense - - 468,660 - - 468,660 Change in operating assets and liabilities

Accounts receivable 257,044 (1,793) - - - 255,251 Prepaid expenses - 510 - - - 510 Accounts payable (356) (76,433) (106,521) 3,910 - (179,400) Accrued salaries - (3,914) 554 (305) - (3,665) Accrued compensated absences - (3,420) 1,807 - - (1,613)

Total adjustments 580,154 739,744 367,952 4,964 - 1,692,814

Net cash provided by (used in) operating activities 695,582$ 3,631,465$ 212,250$ (324)$ -$ 4,538,973$

CITY OF COLUMBIA, SOUTH CAROLINA COMBINING STATEMENT OF CASH FLOWS

NONMAJOR PROPRIETARY FUNDS (CONTINUED)

Year Ended June 30, 2015

117

INTERNAL SERVICE FUNDS

Internal Service Funds are used to account for the financing of goods and services provided by one department or agency to other departments or agencies in the City, or to other governments, on a user charge basis. These funds include:

Fleet Management accounts for the maintenance and repair of vehicles. Support Services accounts for a decentralized governmental and enterprise inventory system, a central supply facility, procurement functions, and the City’s general maintenance functions. Risk Management accounts for the costs associated with self-funded liability plans for employee health, worker’s compensation, and tort liability for all City departments.

Totals Internal

Fleet Support Risk Service Management Services Management Funds

ASSETS Current Assets

Cash and cash equivalents 1,866,344$ 69,555$ 63,236,789$ 65,172,688$

Accounts receivable 60,700 - 279,602 340,302

Prepaid expenses 5,944 180,487 - 186,431

Inventory - 686,763 - 686,763

Total current assets 1,932,988 936,805 63,516,391 66,386,184

Noncurrent Assets Deposits - - 78,745 78,745

Capital assets Buildings 903,586 - - 903,586

Machinery and equipment 507,658 1,315,361 - 1,823,019

Less accumulated depreciation (984,842) (529,259) - (1,514,101)

Total capital assets (net of accumulated depreciation) 426,402 786,102 - 1,212,504

Total noncurrent assets 426,402 786,102 78,745 1,291,249

TOTAL ASSETS 2,359,390 1,722,907 63,595,136 67,677,433

DEFERRED OUTFLOWS OF RESOURCES Deferred outflows related to

net pension liability 255,314 122,306 21,404 399,024

TOTAL DEFERRED OUTFLOWS OF RESOURCES 255,314 122,306 21,404 399,024

TOTAL ASSETS AND DEFERRED OUTFLOWS OF RESOURCES 2,614,704$ 1,845,213$ 63,616,540$ 68,076,457$

LIABILITIES, DEFERRED INFLOWS AND FUND NET POSITION

Current Liabilities Accounts payable 2,129,932$ 433,790$ 320,292$ 2,884,014$

Accrued salaries and benefits 84,750 30,214 14,724 129,688

Accrued compensation absences 28,942 11,311 8,240 48,493

Due to other funds - 1,202,351 - 1,202,351

Accrued liability for claims - - 16,225,389 16,225,389

Total current liabilities 2,243,624 1,677,666 16,568,645 20,489,935

Noncurrent Liabilities OPEB liability - - 52,098,105 52,098,105

Net pension liability 2,674,342 1,281,122 224,196 4,179,660

Accrued compensated absences 115,765 45,243 32,958 193,966

Total noncurrent liabilities 2,790,107 1,326,365 52,355,259 56,471,731

Total liabilities 5,033,731 3,004,031 68,923,904 76,961,666

DEFERRED INFLOWS OF RESOURCES Deferred inflows related to

net pension liability 256,253 122,756 21,482 400,491

FUND NET POSITION Net investment in capital assets 426,402 786,102 - 1,212,504

Unrestricted (3,101,682) (2,067,676) (5,328,846) (10,498,204)

Total net position (deficit) (2,675,280) (1,281,574) (5,328,846) (9,285,700)

TOTAL LIABILITIES, DEFERRED INFLOWS AND FUND NET POSITION 2,614,704$ 1,845,213$ 63,616,540$ 68,076,457$

CITY OF COLUMBIA, SOUTH CAROLINA COMBINING STATEMENT OF NET POSITION

INTERNAL SERVICE FUNDS

June 30, 2015

118

Total Internal

Fleet Support Risk Service Management Services Management Funds

Operating revenues Charges for service 10,100,293$ 1,783,996$ 34,000,850$ 45,885,139$

Total operating revenue 10,100,293 1,783,996 34,000,850 45,885,139

Operating expenses Personnel services 2,477,740 936,180 395,275 3,809,195 Materials and supplies 7,812,655 774,378 122,784 8,709,817 Heat, light and power 51,462 - - 51,462 Other services and charges 173,657 1,520,369 3,622,072 5,316,098 Claims and premiums - - 36,076,912 36,076,912 Depreciation 94,500 160,101 - 254,601

Total operating expenses 10,610,014 3,391,028 40,217,043 54,218,085

Operating income (loss) (509,721) (1,607,032) (6,216,193) (8,332,946)

Nonoperating revenues Gain from sale of assets 7,490 - - 7,490

Total nonoperating revenues 7,490 - - 7,490

Loss before transfers (502,231) (1,607,032) (6,216,193) (8,325,456)

Transfers Transfers in 479,531 1,645,695 6,989,528 9,114,754 Transfers out - (49,540) (775,239) (824,779)

Total transfers 479,531 1,596,155 6,214,289 8,289,975

Change in net position (22,700) (10,877) (1,904) (35,481)

Net position - beginning as previously reported - - (5,104,570) (5,104,570)

Restatement (Note VII. C.) (2,652,580) (1,270,697) (222,372) (4,145,649) Net position - beginning as restated (2,652,580) (1,270,697) (5,326,942) (9,250,219)

Net position (deficit) - ending (2,675,280)$ (1,281,574)$ (5,328,846)$ (9,285,700)$

CITY OF COLUMBIA, SOUTH CAROLINA COMBINING STATEMENT OF REVENUES, EXPENSES

INTERNAL SERVICE FUNDS

Year Ended June 30, 2015

AND CHANGES IN NET POSITION

119

Total Internal

Fleet Support Risk Service Management Services Management Funds

Cash Flows From Operating Activities Internal activity - receipts from other funds 8,235,208$ 1,783,996$ 33,979,917$ 43,999,121$ Receipts from customers and users 1,855,629 - - 1,855,629 Internal activity - payments to other funds (517,109) (69,403) (24,905) (611,417) Payments to suppliers (6,963,817) (2,924,523) (580,467) (10,468,807) Claims paid - - (35,258,588) (35,258,588) Payments to employees (1,890,541) (148,751) (359,881) (2,399,173)

Net cash provided by (used in) operating activities 719,370 (1,358,681) (2,243,924) (2,883,235)

Cash Flows From Noncapital Financing Activities

Advances from other funds - - 7,000,000 7,000,000 Advances to other funds - (177,087) - (177,087) Transfers in 479,531 1,645,695 6,989,528 9,114,754 Transfers out - (49,540) (775,239) (824,779)

Net cash provided by (used in) noncapital financing activities 479,531 1,419,068 13,214,289 15,112,888

Cash Flows From Capital and Related Financing Activities

Proceeds from sale of capital assets 7,490 - - 7,490 Purchase of capital assets - (14,614) - (14,614)

Net cash provided by (used in) capital and related financing activities 7,490 (14,614) - (7,124)

Net increase (decrease) in cash and cash equivalents 1,206,391 45,773 10,970,365 12,222,529

Cash and cash equivalents, July 1, 2014 659,953 23,782 52,266,424 52,950,159

Cash and cash equivalents, June 30, 2015 1,866,344$ 69,555$ 63,236,789$ 65,172,688$

Reconciliation Of Operating Loss To Net Cash Provided By (Used In) Operating Activities

Operating income (loss) (509,721)$ (1,607,032)$ (6,216,193)$ (8,332,946)$

Adjustments to reconcile operating loss to net cash provided by (used in) operating activities:

Depreciation 94,500 160,101 - 254,601 Accrued benefits related to net pension liability 22,701 10,875 1,902 35,478 Change in operating assets and liabilities

Accounts receivable (9,456) - (20,933) (30,389) Inventory - (13,736) - (13,736) Prepaid expenses (4,347) (74,783) - (79,130) Accounts payable 1,078,304 170,156 (321,012) 927,448 Accrued salaries 3,543 (2,285) 1,252 2,510 Accrued compensated absences 43,846 (1,977) 7,335 49,204 OPEB liability - - 3,485,401 3,485,401 Accrued liability for claims - - 818,324 818,324

Total adjustments 1,229,091 248,351 3,972,269 5,449,711

Net cash provided by (used in) operating activities 719,370$ (1,358,681)$ (2,243,924)$ (2,883,235)$

CITY OF COLUMBIA, SOUTH CAROLINA COMBINING STATEMENT OF CASH FLOWS

INTERNAL SERVICE FUNDS

Year Ended June 30, 2015

120

FIDUCIARY FUNDS

Private-Purpose Trust Funds are used to report trust arrangements under which principal and income benefit individuals, private organizations, or other governments. Breast Cancer Awareness fund – accounts for contributions made and revenue raised on behalf of breast cancer awareness in the Midlands region. Police Canteen fund – to account for revenue raised to support police activities. Inspections Education Program fund – accounts for contributions made and revenue raised to promote the United Way of the Midlands. Employee Special Activity fund –accounts for contributions made and revenue raised to support educational activities and benevolent events. Mayor’s Commission Employ People with Disabilities fund – accounts for contributions made to help individuals with disabilities find jobs. Agency Funds are used to account for short-term custodial collections on resources on behalf of another individual, entity, or government. Agency fund - to account for contributions collected by the City on behalf of other entities.

Mayor's Commission Total

Breast Inspections Employee Employ Private- Cancer Police Education Special People with Purpose

Awareness Canteen Program Activity Disabilities Trust Funds

ASSETS Cash and cash equivalents 1,580$ 1,005$ -$ 10,800$ 2,714$ 16,099$

Total assets 1,580 1,005 - 10,800 2,714 16,099

NET POSITION Held in trust - other purposes 1,580$ 1,005$ -$ 10,800$ 2,714$ 16,099$

Private-Purpose Trust Funds

CITY OF COLUMBIA, SOUTH CAROLINA COMBINING STATEMENT OF FIDUCIARY NET POSITION

PRIVATE PURPOSE TRUST FUNDS

June 30, 2015

121

Mayor's Commission Total

Breast Inspections Employee Employ Private- Cancer Police Education Special People with Purpose

Awareness Canteen Program Activity Disabilities Trust Funds

ADDITIONS Contributions:

Private donations 17,114$ -$ -$ 13,785$ -$ 30,899$ Total contributions 17,114 - - 13,785 - 30,899

DEDUCTIONS Administrative expenses 17,056 40 100 9,777 260 27,233

Total deductions 17,056 40 100 9,777 260 27,233

Change in net position 58 (40) (100) 4,008 (260) 3,666

Net position - beginning 1,522 1,045 100 6,792 2,974 12,433

Net position - ending 1,580$ 1,005$ -$ 10,800$ 2,714$ 16,099$

CITY OF COLUMBIA, SOUTH CAROLINA COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION

PRIVATE PURPOSE TRUST FUNDS

Year Ended June 30, 2015

Private-Purpose Trust Funds

122

Balance Balance July 1, 2014 Additions Deductions June 30, 2015

ASSETS

Cash and cash equivalents 33,484$ 136,733$ 136,489$ 33,728$ Total assets 33,484 136,733 136,489 33,728

LIABILITIES Accounts payable 33,484 136,733 136,489 33,728

Total liabilities 33,484$ 136,733$ 136,489$ 33,728$

CITY OF COLUMBIA, SOUTH CAROLINA STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

AGENCY FUND

Year Ended June 30, 2015

123

OTHER SCHEDULE

Court Fines and Assessments Fines Collected 1,020,052$ Assessments 1,125,034 Surcharges 459,494

Total Court Fines and Assessments Collected 2,604,580$

Surcharges and Assessments Remitted to State Treasurer Fines, Fees and Filing Fee / Assessment

Municipal Conditional Discharge Fee 18,300$ DUI/DUS/BUI

Municipal DUS DPS Pullout 30,976 Municipal DUI Assessment 1,207 Municipal DUI Surcharge 10,156 DUS DPS Pullout - DUIHP 10,056 DUI/DUAC Breathalyzer Test Conviction Fee - SLED 2,539

Surcharges Municipal Drug Surcharge 22,756 Municipal Law Enforcement Surcharge 322,495 Criminal Justice Academy Surcharge 64,494

Other Assessments - State Shared 953,415

Total Revenue Remitted to State Treasurer 1,436,394$

Fines, Surcharges, and Assessments Retained by City Fines 1,020,052$ Assessments 119,804 Surcharges 28,330

Total Revenue Retained by City 1,168,186$

Funds Allocated to Victims Assistance Carryover Funds from Prior Year 30,187$ Assessments Retained 119,804 Surcharges Retained 28,330 Expenditures (178,660) Transfers from General Fund 82

Total Due From General Fund (257)$

CITY OF COLUMBIA, SOUTH CAROLINA

SCHEDULE OF FINES, ASSESSMENTS, AND SURCHARGES

YEAR ENDED JUNE 30, 2015

124

STATISTICAL SECTION

(UNAUDITED)

City of Columbia, South Carolina Statistical Section This part of the City of Columbia’s comprehensive financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City’s overall financial health. Contents Financial Trends (Schedule 1 through 4)

These schedules contain trend information to help the reader understand how the City’s financial performance and well-being have changed over time.

Revenue Capacity (Schedule 5 through 8)

These schedules contain information to help the reader assess the City’s most significant local revenue source, the property tax.

Debt Capacity (Schedule 9 through 15)

These schedules present information to help the reader assess the affordability of the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future.

Demographic and Economic Information (Schedule 16 through 18)

These schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place.

Operating Information (Schedule 19 through 20)

These schedules contain service and infrastructure data to help the reader understand how the information in the City’s financial report relates to the services the City provides and the activities it performs.

Sources

Unless otherwise noted the information in these schedules is derived from the comprehensive annual reports for the relevant year.

Schedule 1 CITY OF COLUMBIA, SOUTH CAROLINA Net Position by Component (unaudited)

Last Ten Fiscal Years (accrual basis of accounting)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Governmental activities

Net investment in capital assets 1 97,571,357$ 170,666,468$ 133,392,515$ 150,922,216$ 141,865,590$ 142,944,260$ 155,989,971$ 155,118,428$ 156,454,488$ 162,102,481$ Restricted for:

Public safety 6,982 7,270 5,435 5,528 5,575 701,466 386,158 2,294,259 4,233,960 231,622 Community development - - - - - - - 209,030 107,259 1,051,042 Tourism - - - - - 5,323,341 5,187,200 5,149,465 3,155,058 6,127,487 Debt service - - - - - 4,940,501 3,480,333 3,512,035 3,339,548 3,978,932 Capital projects - - - - - 16,940,012 17,701,662 15,264,573 19,833,612 42,264,148

Unrestricted 2 74,054,519 23,619,914 45,278,383 36,636,210 44,723,202 20,963,118 18,967,653 25,840,430 26,906,641 (109,340,207) Total governmental activities net position 171,632,858$ 194,293,652$ 178,676,333$ 187,563,954$ 186,594,367$ 191,812,698$ 201,712,977$ 207,388,220$ 214,030,566$ 106,415,505$

Business-type activities Net investment in capital assets 1 412,723,624$ 441,526,920$ 402,973,904$ 445,685,893$ 438,133,821$ 414,942,578$ 389,423,595$ 373,649,773$ 375,763,776$ 368,742,602$ Restricted for debt service - - - - 9,231,571 9,231,571 9,292,810 9,315,421 9,330,640 9,352,281 Unrestricted 92,520,653 84,719,370 156,426,859 144,213,396 145,389,137 168,441,129 195,789,983 237,703,681 252,831,152 224,972,741

Total business-type activities net position 505,244,277$ 526,246,290$ 559,400,763$ 589,899,289$ 592,754,529$ 592,615,278$ 594,506,388$ 620,668,875$ 637,925,568$ 603,067,624$

Primary government Net investment in capital assets 1 510,294,981$ 612,193,388$ 536,366,419$ 596,608,109$ 579,999,411$ 557,886,838$ 545,413,566$ 528,768,201$ 532,218,264$ 530,845,083$ Restricted for:

Public safety 6,982 7,270 5,435 5,528 5,575 701,466 386,158 2,294,259 4,233,960 231,622 Community development - - - - - - - 209,030 107,259 1,051,042 Tourism related expenditures - - - - - 5,323,341 5,187,200 5,149,465 3,155,058 6,127,487 Debt service - - - - 9,231,571 14,172,072 12,773,143 12,827,456 12,670,188 13,331,213 Capital projects - - - - - 16,940,012 17,701,662 15,264,573 19,833,612 42,264,148

Unrestricted 2 166,575,172 108,339,284 201,705,242 180,849,606 190,112,339 189,404,247 214,757,636 263,544,111 279,737,793 115,632,534 Total primary government net position 676,877,135$ 720,539,942$ 738,077,096$ 777,463,243$ 779,348,896$ 784,427,976$ 796,219,365$ 828,057,095$ 851,956,134$ 709,483,129$

1 Net of related debt

2 Years 2006 through 2013 have been restated to reflect the adoption of GASB Statement 65

Fiscal Year

125

Schedule 2

CITY OF COLUMBIA, SOUTH CAROLINA

Changes in Net Position (unaudited)

Last Ten Fiscal Years

(accrual basis of accounting)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Expenses Governmental Activities:

General government 51,296,220$ 35,358,581$ 37,178,955$ 41,427,388$ 53,883,052$ 35,131,885$ 10,877,738$ 17,577,215$ 8,049,816$ 8,050,355$ Judicial 2,044,037 2,167,922 2,131,608 2,364,353 2,360,125 2,697,932 2,447,105 2,601,919 2,615,194 2,749,136 Finance 1,360,869 1,982,964 2,474,302 2,647,689 1,986,467 2,235,981 2,348,922 2,051,555 1,726,481 1,886,778 Community development 3,396,497 3,904,174 4,012,966 4,192,966 4,017,482 4,365,542 4,760,642 5,855,023 5,787,850 5,791,062 Public safety 41,619,178 50,306,710 55,514,924 57,138,835 50,615,722 58,762,428 75,783,788 73,682,870 84,053,096 87,251,472 Parks and recreation 7,853,425 11,053,830 11,544,030 11,142,423 8,681,126 11,445,882 9,912,910 11,329,817 12,290,401 13,081,872 Public services 22,868,279 24,014,241 20,835,435 20,798,283 17,884,065 21,229,705 24,168,009 23,483,659 21,960,858 24,282,518 General services 5,791,988 3,382,092 4,018,322 3,919,228 3,598,839 3,924,144 4,193,394 4,540,814 4,933,285 5,269,511 Community promotions 7,946,764 9,926,673 9,744,750 8,321,723 8,990,842 7,843,093 11,899,487 11,915,733 12,872,657 10,660,364 Interest and other charges 2,275,464 4,081,910 4,459,396 3,824,725 3,413,317 3,763,963 2,366,916 3,027,411 2,955,994 4,491,254 Non departmental 1,147,254 3,433,419 11,904,001 1,694,525 1,936,148 2,644,113 2,401,408 2,455,260 2,515,184 2,141,310

Total governmental activities expense 147,599,975 149,612,516 163,818,689 157,472,138 157,367,185 154,044,668 151,160,319 158,521,276 159,760,816 165,655,632 Business-type Activities:

Water and sewer facilities 80,189,801 83,849,936 85,963,177 85,747,245 103,530,941 107,934,251 106,594,059 107,410,948 100,389,819 113,273,814 Hydro-electric plant 1,010,483 1,020,132 3,037,803 5,989,066 3,310,407 1,615,222 1,547,093 1,544,804 3,012,376 2,422,544 Stormwater 1,683,476 3,382,264 3,383,853 3,148,296 4,117,396 5,169,916 4,595,847 4,692,223 5,668,819 4,814,419 Parking facilities 6,149,446 5,139,583 5,213,105 5,740,304 6,959,024 7,234,418 6,336,721 6,330,524 6,162,449 7,678,876 Transportation 31,363 30,320 433,773 - - - - - - - Redevelopment programs 901,209 774,935 3,611,769 960,872 4,704,419 606,265 1,966,452 734,283 848,141 835,812 Parks and recreation camps - - - - 248,705 268,639 305,939 271,271 324,209 306,219

Total business-type expenses 89,965,778 94,197,170 101,643,480 101,585,783 122,870,892 122,828,711 121,346,111 120,984,053 116,405,813 129,331,684 Total primary government expenses 237,565,753$ 243,809,686$ 265,462,169$ 259,057,921$ 280,238,077$ 276,873,379$ 272,506,430$ 279,505,329$ 276,166,629$ 294,987,316$

Program revenues Governmental Activities

Charges for services General government 10,872,952$ 8,853,475$ 10,150,599$ 7,900,830$ 6,461,975$ 9,042,002$ 771,459$ 940,028$ 758,177$ 726,487$ Finance 24,697,055 29,319,287 28,351,828 28,850,804 26,306,361 27,706,315 28,328,937 30,505,679 31,467,056 37,837,666 Community development 2,079,932 2,138,058 1,623,669 1,478,580 1,112,332 1,052,569 721,425 793,431 832,159 799,663 Public safety 10,345,365 12,874,328 12,384,856 12,926,072 13,953,062 14,123,994 16,154,103 21,387,115 22,040,936 22,811,461 Parks and recreation 457,103 608,728 718,288 656,535 629,982 644,895 583,471 728,247 818,304 822,319 Public services 1,123,926 297,809 1,038,433 1,060,884 860,914 762,632 350,100 247,570 344,718 258,211 Non departmental 2,367,405 2,492,238 3,091,810 440,682 154,783 170,256 - - - -

Operating grants and contributions 30,208,259 30,413,604 27,663,920 29,022,624 34,616,143 35,000,087 33,702,068 33,701,772 34,448,202 34,980,295 Capital grants and contributions 2,165,766 8,291,673 5,649,457 11,318,774 5,851,833 3,618,198 4,112,450 1,295,665 766,837 3,069,436

Total Governmental Activities Program Revenue 84,317,763 95,289,200 90,672,860 93,655,785 89,947,385 92,120,948 84,724,013 89,599,507 91,476,389 101,305,538

Business-type Activities Charges for services

Water and sewer facilities 88,919,453 98,386,267 112,790,238 106,434,644 109,044,457 107,976,683 112,750,717 121,723,711 116,644,423 119,716,789 Hydro-electric plant 662,924 493,290 784,235 4,094,441 1,346,041 851,431 2,622,234 2,731,475 4,843,922 3,037,971 Stormwater 3,921,119 3,983,590 3,980,323 4,725,468 4,800,452 4,778,442 4,861,153 6,685,838 6,958,281 7,521,149 Parking facilities 6,165,672 6,135,182 6,916,956 6,265,683 5,765,996 6,441,140 6,520,866 6,864,323 6,495,064 7,145,520 Transportation - - - - - - - - - - Redevelopment programs 3,603,824 495,150 934,614 918,809 881,876 646,954 599,950 921,759 564,456 680,111 Parks and recreation camps - - - - 207,707 226,238 262,582 253,150 275,182 300,931

Capital grants and contributions 13,738,679 12,161,089 12,847,905 8,358,175 5,154,530 4,038,585 4,066,060 5,831,240 5,431,910 3,872,664 Total Business-type Activities Revenues 117,011,671 121,654,568 138,254,271 130,797,220 127,201,059 124,959,473 131,683,562 145,011,496 141,213,238 142,275,135

Total Primary Government Revenues 201,329,434$ 216,943,768$ 228,927,131$ 224,453,005$ 217,148,444$ 217,080,421$ 216,407,575$ 234,611,003$ 232,689,627$ 243,580,673$

Net (expense) revenue Governmental activities (63,282,212)$ (54,323,316)$ (73,145,829)$ (63,816,353)$ (67,419,800)$ (61,923,720)$ (66,436,306)$ (68,921,769)$ (68,284,427)$ (64,350,094)$ Business-type activities 27,045,893 27,457,398 36,610,791 29,211,437 4,330,167 2,130,762 10,337,451 24,027,443 24,807,425 12,943,451 Total Primary Government Net Expense (36,236,319)$ (26,865,918)$ (36,535,038)$ (34,604,916)$ (63,089,633)$ (59,792,958)$ (56,098,855)$ (44,894,326)$ (43,477,002)$ (51,406,643)$

Fiscal Year

(Continued)

126

Schedule 2 (Continued) CITY OF COLUMBIA, SOUTH CAROLINA Changes in Net Position (unaudited)

Last Ten Fiscal Years (accrual basis of accounting)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 General Revenues and Other Changes in Net Position Governmental Activities

Taxes Property taxes levied for general purposes 27,134,829$ 32,028,856$ 30,888,940$ 35,042,668$ 34,096,781$ 35,775,181$ 35,831,679$ 34,462,835$ 34,353,070$ 34,178,067$ Local Option Sales Tax 14,241,132 14,988,418 14,988,418 13,616,717 15,722,327 13,947,099 14,874,049 15,781,749 16,465,463 16,385,254 Sales tax - - 8,061,364 8,070,790 7,941,705 8,359,028 14,216,318 11,498,370 12,072,024 12,626,419 Alcoholic beverages 3,204,139 3,435,403 254,562 323,644 261,200 - - - - - Motor fuel 9,241 7,715 1,275 1,059 11,024 4,976 3,436 3,566 1,381 3,348 Miscellaneous 10,383 - - - - - - - - -

State shared revenue - - 3,796,780 3,622,407 3,037,888 2,604,423 2,363,791 2,788,097 2,805,133 2,829,726 Investment income 2,478,194 4,670,483 3,481,543 1,282,669 417,459 1,068,106 537,702 26,022 89,001 163,175 Other (2,950,480) (7,426,558) (1,159,745) 1,891,037 - - 156,323 188,511 109,361 254,447 Transfers 5,832,436 8,736,903 2,788,348 8,580,988 4,838,083 6,126,263 7,826,063 9,739,875 9,031,340 8,889,857

Total Governmental Activities 49,959,874 56,441,220 63,101,485 72,431,979 66,326,467 67,885,076 75,809,361 74,489,025 74,926,773 75,330,293

Business-type Activities Investment income 5,536,084 6,715,293 8,194,017 5,589,423 5,146,089 3,389,883 2,899,062 231,513 1,158,475 1,226,558 Gain (loss) on sale of capital assets 22,080 (116,006) (228,140) 3,843,432 17,476 143,088 (2,609,759) 10,922,099 322,133 103,766 Transfers (5,832,436) (8,736,903) (2,788,348) (8,580,988) (4,838,083) (6,126,263) (7,826,063) (9,739,875) (9,031,340) (8,889,857)

Total Business-type Activities (274,272) (2,137,616) 5,177,529 851,867 325,482 (2,593,292) (7,536,760) 1,413,737 (7,550,732) (7,559,533)

Total Primary Government 49,685,602$ 54,303,604$ 68,279,014$ 73,283,846$ 66,651,949$ 65,291,784$ 68,272,601$ 75,902,762$ 67,376,041$ 67,770,760$

Change in Net Position Governmental activities (13,322,338)$ 2,117,904$ (10,044,344)$ 8,615,626$ (1,093,333)$ 5,961,356$ 9,373,055$ 5,567,256$ 6,642,346$ 10,980,199$ Business-type activities 26,771,621 25,319,782 41,788,320 30,063,304 4,655,649 (462,530) 2,800,691 25,441,180 17,256,693 5,383,918 Total Primary Government 13,449,283$ 27,437,686$ 31,743,976$ 38,678,930$ 3,562,316$ 5,498,826$ 12,173,746$ 31,008,436$ 23,899,039$ 16,364,117$

Fiscal Year

127

Schedule 3 CITY OF COLUMBIA, SOUTH CAROLINA Fund Balances - Governmental Funds (unaudited)

Last Ten Fiscal Years (modified accrual basis of accounting)

2006 2007 2008 2009 2010 *** 2011 2012 2013 2014 2015

General Fund Reserved 1,126,443$ 2,037,950$ 2,083,436$ 1,523,270$ -$ -$ -$ -$ -$ -$ Unreserved 22,394,019 21,687,149 10,463,453 5,300,625 - - - - - - Nonspendable - - - - 246,160 493,807 280,272 298,252 233,945 696,389 Restricted - - - - - - - - - 4,880,662 Committed - - - - - 2,126,479 - - 72,975 4,810,356 Assigned - - - - 1,538,430 - 190,599 2,159,860 3,627,442 3,654,109 Unassigned - - - - 13,668,226 11,424,065 14,972,196 22,380,727 25,059,965 22,352,224

Total general fund 23,520,462$ 23,725,099$ 12,546,889$ 6,823,895$ 15,452,816$ 14,044,351$ 15,443,067$ 24,838,839$ 28,994,327$ 36,393,740$

County Services Fund * Reserved -$ 445,261$ -$ 445,261$ -$ -$ -$ -$ -$ -$ Unreserved 1,046,348 (1,039,064) (862,306) (445,261) - - - - - - Nonspendable - - - - 35,374 4,378 14,536 71,775 56,905 64,376 Assigned - - - - 303,617 481,073 735,023 1,704,488 2,089,901 - Unassigned - - - - - - - - - (1,016,105)

Total county services fund 1,046,348$ (593,803)$ (862,306)$ -$ 338,991$ 485,451$ 749,559$ 1,776,263$ 2,146,806$ (951,729)$

Columbia Parking Facilities Corporation Fund ** Unreserved -$ 4,784,113$ 176,310$ 1,068,371$ -$ -$ -$ -$ -$ -$

All Other Governmental Funds Reserved 22,490,311$ 17,534,858$ 7,670,827$ 16,065,853$ -$ -$ -$ -$ -$ -$ Unreserved 26,824,717 24,688,537 40,903,607 27,174,124 - - - - - - Nonspendable - - - - 6,943 19,080 16,433 5,000 5,000 5,000 Restricted - - - - 5,575 27,900,320 26,750,353 24,724,874 28,565,017 48,767,569 Committed - - - - - 3,864,378 - - - - Assigned - - - - 39,198,661 16,417,601 17,744,836 12,603,593 12,668,482 16,570,606 Unassigned - - - - (31,068) (14,080) (225,792) (152,559) - -

Total all other governmental funds 49,315,028$ 42,223,395$ 48,574,434$ 43,239,977$ 39,180,111$ 48,187,299$ 44,285,830$ 37,180,908$ 41,238,499$ 65,343,175$

* The County Services Fund is considered a major fund, however, prior to fiscal year 2006 it had no fund balance.

** The Columbia Parking Facilities Fund became a major fund in fiscal year 2007 and was considered not to be a major fund in fiscal year 2010 and thereafter and was therefore included with the General Fund.

*** Beginning in fiscal year 2010, GASB 54 was implemented and the Governmental Fund balances are presented accordingly.

Fiscal Year

128

Schedule 4 CITY OF COLUMBIA, SOUTH CAROLINA Changes in Fund Balances - Governmental Funds (unaudited)

Last Ten Fiscal Years (modified accrual basis of accounting)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Revenues:

General property taxes 41,546,505$ 46,684,713$ 45,540,299$ 48,292,387$ 48,930,564$ 49,728,075$ 50,496,237$ 50,644,107$ 50,884,644$ 50,563,321$ Sales, hospitality and admission taxes - - 8,061,364 8,070,790 7,941,705 8,359,028 14,216,318 11,498,370 12,072,024 12,626,419

License and permits 27,911,017 31,162,106 29,961,967 29,591,085 27,418,693 28,758,883 28,329,064 30,505,429 31,466,856 37,837,446 Intergovernmental revenue 8,884,739 9,879,961 11,401,560 11,689,903 11,961,868 11,734,994 12,974,392 13,540,185 14,380,520 15,682,389 Charges for services 7,708,719 8,412,727 7,200,753 7,166,064 7,004,163 6,945,737 6,915,049 11,983,172 12,692,387 12,622,954 Fines and forfeitures 788,374 786,187 910,061 922,675 864,112 889,048 1,139,209 1,230,219 1,334,420 1,237,153 Federal revenues 7,364,346 6,296,982 8,143,042 15,391,313 16,205,021 12,019,998 7,905,552 5,452,069 3,942,851 3,434,392 State revenues 2,501,419 1,630,152 2,988,092 2,002,864 1,634,625 1,971,391 417,851 380,553 1,010,674 3,381,680 County revenues 20,548,995 27,546,699 18,674,699 20,093,357 21,084,511 21,626,422 25,013,335 26,530,590 27,742,117 25,652,150 Promotions 60,177 188,563 148,073 192,721 144,639 220,148 392,947 89,314 78,047 121,928 Confiscated funds 143,818 44,057 192,623 291,003 74,057 671,961 403,311 533,541 267,863 279,147 Cost recovery fees 3,200,000 3,200,000 2,735,000 2,270,000 2,270,000 - - - - - Interest 1,869,260 3,512,130 3,451,240 1,282,669 417,458 1,068,106 539,145 26,386 89,104 163,266 Other revenues 6,999,423 4,991,201 5,158,653 4,789,277 3,355,276 8,279,105 2,970,687 1,688,232 1,415,305 1,738,208

Total revenues 129,526,792 144,335,478 144,567,426 152,046,108 149,306,692 152,272,896 151,713,097 154,102,167 157,376,812 165,340,453

Expenditures: Current:

General government 46,732,884 30,136,559 30,673,629 32,129,878 32,931,032 33,091,576 6,222,202 6,644,937 7,109,837 7,184,601 Judicial 1,833,635 1,874,399 2,276,204 2,279,449 2,264,446 2,267,244 2,387,018 2,494,267 2,481,917 2,539,958 Finance 1,252,432 1,747,050 2,583,820 2,601,962 1,953,988 1,974,835 1,978,427 1,978,474 1,668,970 1,779,283 Planning and development 3,093,611 3,249,126 4,311,401 4,027,245 3,898,247 3,635,412 3,939,862 4,041,701 4,013,337 3,228,917 Public safety 37,555,878 42,204,031 56,694,907 54,665,050 48,782,688 52,391,812 73,865,581 73,409,740 76,120,091 78,340,960 Parks and recreation 6,857,319 8,959,135 11,172,199 9,889,048 9,133,653 9,135,419 9,349,169 9,486,586 10,075,127 10,525,782 Public services 21,433,541 20,907,423 21,341,887 19,926,127 17,257,530 19,094,868 20,637,713 20,561,911 17,476,210 16,958,389 General services 5,181,242 3,221,626 3,873,214 3,847,700 3,537,722 3,644,002 4,109,575 4,476,134 4,757,553 4,680,453 Community promotion 7,946,764 8,028,392 9,744,750 8,321,723 8,990,842 7,843,093 12,745,631 14,114,668 15,149,073 13,409,862 Nondepartmental 656,597 1,994,232 5,348,207 1,395,676 1,066,644 1,666,009 2,388,824 2,475,304 2,835,449 2,279,518 Other charges 483,367 1,567,941 6,464,433 8,357 729,482 825,212 - 11,079 - -

Debt service: Principal payment on bonds 8,168,439 7,559,169 16,741,585 9,144,966 5,205,034 5,655,000 7,205,000 8,260,000 8,989,992 9,326,791 Interest payments on bonds 1,626,467 3,804,084 4,838,956 3,899,408 3,444,234 3,776,747 4,069,181 2,778,884 2,909,808 3,172,846 Fiscal agent charges 5,208 87,360 4,072 27,424 8,040 9,040 8,913 4,975 4,587 5,461 Debt issuance costs - - - - - 276,774 2,122,842 550,421 243,479 904,310

Capital outlay: Capital outlay: 6,027,774 25,409,592 11,293,382 16,773,619 9,410,916 6,081,858 13,338,436 11,293,853 8,425,531 20,507,125

Total expenditures 148,855,158 160,750,119 187,362,646 168,937,632 148,614,498 151,368,901 164,368,374 162,582,934 162,260,961 174,844,256

Excess of revenues over (under) expenditures (19,328,366) (16,414,641) (42,795,220) (16,891,524) 692,194 903,995 (12,655,277) (8,480,767) (4,884,149) (9,503,803)

Other financing sources (uses): Transfers in 25,167,313 23,252,127 57,336,108 25,317,909 22,801,863 28,197,309 31,021,933 28,738,040 26,160,749 30,526,833 Transfers out (19,334,877) (31,432,694) (46,409,322) (22,775,520) (19,811,164) (31,220,308) (27,084,972) (24,286,578) (21,206,734) (29,926,951) Issuance of debt 1,500,000 22,014,258 13,143,195 2,429,249 - 9,375,000 5,575,000 6,375,000 7,315,000 26,175,000 Issuance of capital lease - - - - - - - - - 7,000,000 Premium on debt issued - - - - - 662,383 343,785 401,659 816,175 3,747,839 Refunding bonds issued - - - 3,625,000 - 9,945,000 14,825,000 24,260,000 - - Payment to refunded bond escrow agent - - - (3,540,000) - (10,262,899) (14,436,356) (23,915,684) - - Sales of assets 6,485,100 2,526,053 9,021,764 2,531,802 156,782 144,703 170,409 225,883 382,589 386,636

Total other financing sources (uses) 13,817,536 16,359,744 33,091,745 7,588,440 3,147,481 6,841,188 10,414,799 11,798,320 13,467,779 37,909,357

Net change in fund balance (5,510,830)$ (54,897)$ (9,703,475)$ (9,303,084)$ 3,839,675$ 7,745,183$ (2,240,478)$ 3,317,553$ 8,583,630$ 28,405,554$

Debt service as a percentage of noncapital expenditures 7% 8% 12% 9% 6% 6% 7% 7% 8% 8%

Fiscal Year

129

Schedule 5 CITY OF COLUMBIA, SOUTH CAROLINA Assessed Value and Estimated Actual Value of Taxable Property (unaudited)

Last Ten Fiscal Years

Assessed Fiscal Value as a Year Percentage Total

Ended Tax Assessed Estimated Assessed Estimated Assessed Estimated of Actual Direct

June 30, Year Value Actual Value Value 1

Actual Value Value Actual Value Value Rate

2006 2005 286,201,640$ 5,920,364,697$ 102,642,841$ 1,128,091,643$ 388,844,481$ 7,048,456,340$ 5.52% 83.6 2007 2006 292,337,560 6,045,640,063 108,588,202 1,178,467,212 400,925,762 7,224,107,275 5.55% 99.0 2008 2007 308,221,850 6,240,046,571 112,847,593 1,353,108,906 421,069,443 7,593,155,477 5.55% 102.5 2009 2008 344,361,680 7,060,929,803 113,237,212 1,354,280,788 457,598,892 8,415,210,591 5.44% 106.3 2010 2009 386,566,370 7,933,397,705 111,006,869 1,308,826,126 497,573,239 9,242,223,831 5.38% 98.1 2011 2010 395,897,190 8,042,557,033 101,465,789 1,231,433,192 497,362,979 9,273,990,225 5.36% 98.1 2012 2011 399,357,360 8,240,197,133 105,214,744 1,241,437,184 504,572,104 9,481,634,317 5.32% 98.1 2013 2012 400,610,960 8,131,722,177 110,571,977 1,297,785,551 511,182,937 9,429,507,728 5.42% 98.1 2014 2013 404,719,630 8,212,659,856 110,356,777 1,315,979,478 515,076,407 9,528,639,334 5.41% 98.1 2015 2014 394,221,790 7,949,097,129 117,043,195 1,709,777,055 511,264,985 9,658,874,184 5.29% 98.1

Source: Richland County and Lexington County Auditor's office

Note: Neither Richland County nor Lexington County assess tax exempt property. Total assessed value based upon assessment ratios set by state statutes. Reassessment took place in 2009 for Richland County and 2010 for Lexington County.

1 The total taxable assessed value does not include Merchant's Inventory Value of $6,667,290; however, it is included in the value used to calculate the legal debt limit.

Real Property Personal Property Total

130

Schedule 6 CITY OF COLUMBIA, SOUTH CAROLINA Direct and Overlapping Property Tax Rates (unaudited)

Last Ten Fiscal Years (Rate per $1,000 of assessed value)

Year City Richland County Richland County Richland/Lexington Ended Direct Richland Lexington School District School District School District

June 30, Millage County County Number 1 Number 2 Number 5

2006 83.6 98.0 100.7 246.0 259.0 214.6 2007 99.0 98.3 104.1 260.8 273.5 231.1 2008 102.5 100.1 109.7 276.9 288.9 252.5 2009 106.3 104.0 114.2 283.2 301.3 261.5 2010 98.1 101.8 115.2 284.4 342.3 265.0 2011 98.1 102.8 109.7 288.4 343.3 266.3 2012 98.1 105.3 112.7 289.7 349.4 274.4 2013 98.1 84.2 118.5 296.1 367.5 274.4 2014 98.1 111.5 122.1 301.7 385.5 281.8 2015 98.1 121.2 125.0 300.9 406.0 288.3

Source: Richland County Auditor's office and Lexington County Auditor's office.

1 Overlapping rates are those of county governments that apply to property owners with the City of Columbia. Not all overlapping rates apply to all City property owners (e.g. the rates for the counties and school districts apply only to the property owners whose property is located within the geographical boundaries of that county or school district). The majority of the property owners in the City of Columbia are within the geographical boundaries of Richland County and Richland County School District Number 1.

Counties School Districts Overlapping Rates 1

131

Schedule 7 CITY OF COLUMBIA, SOUTH CAROLINA Principal Property Taxpayers (unaudited)

Current Year and Nine Years Ago

Percentage Percentage of Total of Total

Taxable Taxable Taxable Taxable Assessed Assessed Assessed Assessed

Taxpayer Value 1

Rank Value Value 2

Rank Value

South Carolina Electric and Gas 15,191,700$ 1 2.97% 12,211,150$ 1 3.14% Bellsouth Telecommunications LLC 5,395,810 2 1.06% 9,022,470 2 2.32% GGP Columbiana Trust 3,001,520 3 0.59% 3,025,400 3 0.78% CW Meridian Inc. 2,700,000 4 0.53% - Bottling Group LLC 2,473,640 5 0.48% - Assembly Station Columbia LLC 2,234,910 6 0.44% - UNUM Group 2,211,040 7 0.43% - US REIF/MJW Capital Center Fee 2,181,610 8 0.43% - Main & Gervais LLC 1,810,360 9 0.35% - AG First Farm Credit Bank 1,769,580 10 0.35% - Cingular Wireless - 2,752,400 4 0.71% Main Street Associates - 2,334,900 5 0.60% Colonial Life and Accident - 2,067,976 6 0.53% Baker and Baker - 2,001,830 7 0.51% Time Warner Entertainment-Advanced - 1,741,620 8 0.45% Parkway Properties LP - 1,726,610 9 0.44% DDR MDT Harbison Court LLC - 1,070,880 10 0.28%

38,970,170$ 7.62% 37,955,236$ 9.76%

Source: The assessed valuations for the taxpayers listed above were provided by either Richland or Lexington County Assessor's Office.

1 Total assessed valuation was $511,264,985 2 Total assessed valuation was $388,844,481

2015 2006

132

Schedule 8 CITY OF COLUMBIA, SOUTH CAROLINA Property Tax Levies and Collections (unaudited)

Last Ten Fiscal Years

Taxes Levied Collections in

Fiscal for the Percentage Subsequent Percentage Year Fiscal Year Amount of Levy Years Amount of Levy

2006 36,175,090$ 34,021,898$ 94.05% 1,216,010$ 35,237,908$ 97.41% 2007 39,338,096 38,398,690 97.61% 1,011,744 39,410,434 100.18% 2008 43,166,262 42,270,086 97.92% 1,348,627 43,618,713 101.05% 2009 48,642,762 46,502,075 95.60% 1,322,443 47,824,518 98.32% 2010 49,514,889 46,637,386 94.19% 2,293,178 48,930,564 98.82% 2011 49,454,262 47,105,225 95.25% 2,622,850 49,728,075 100.55% 2012 50,201,476 48,564,952 96.74% 1,931,285 50,496,237 100.59% 2013 50,179,312 48,712,822 97.08% 1,058,584 49,771,406 99.19% 2014 50,554,312 49,826,060 98.56% 1,070,102 50,896,162 100.68% 2015 50,167,100 49,493,219 98.66% - 49,493,219 98.66%

Sources: Richland County Finance Department and Lexington County Finance Department Neither Richland County nor Lexington County report delinquent collections by tax year.

Collected within the Fiscal Year of the Levy Total Collections to Date

133

Schedule 9 CITY OF COLUMBIA, SOUTH CAROLINA Ratios of Outstanding Debt by Type (unaudited)

Last Ten Fiscal Years

Total General Tax Governmental

Fiscal Obligation Increment Notes Capital Revenue Activities

Year Bonds 1 Bonds 1 Payable Lease Bonds

1 Debt

2006 19,663,197$ 14,245,754$ 1,500,000$ 2,956,233$ 53,337,508$ 91,702,692$ 2007 18,225,370 10,241,585 3,738,526 2,246,993 64,230,236 98,682,710 2008 28,885,543 3,760,000 4,658,191 1,518,235 61,888,539 100,710,508 2009 26,302,152 - 6,747,474 - 59,071,248 92,120,874 2010 23,688,812 - 6,009,142 - 56,324,804 86,022,758 2011 30,756,608 - 5,814,142 - 53,949,135 90,519,885 2012 32,020,777 - 5,619,142 - 50,811,284 88,451,203 2013 33,848,474 - 5,424,142 - 48,082,505 87,355,121 2014 37,494,897 - 5,229,142 - 43,580,000 86,304,039 2015 32,242,297 - 5,034,142 6,603,209 69,696,682 113,576,330

1 2005 through 2013 have been restated for the implementation of GASB 65

(Continued)

134

Schedule 9 (Continued) CITY OF COLUMBIA, SOUTH CAROLINA Ratios of Outstanding Debt by Type (unaudited)

Last Ten Fiscal Years

Total Total Percentage Debt Fiscal Revenue Notes Notes Business-type Primary of Personal Per

Year Bonds 1

Payable Payable Activities Government Income 2 Capita 3

2006 209,271,100$ 1,140,000$ 3,566,640$ 213,977,740$ 305,680,432$ 8.06% 2,604$ 2007 197,038,605 520,000 2,736,055 200,294,660 298,977,370 7.98% 2,571 2008 186,593,978 - 1,866,018 188,459,996 289,170,504 6.71% 2,276 2009 175,862,492 - 933,009 176,795,501 268,916,375 6.12% 2,117 2010 357,487,401 - - 357,487,401 443,510,159 9.84% 3,429 2011 345,878,897 - - 345,878,897 436,398,782 9.62% 3,376 2012 444,643,320 - - 444,643,320 533,094,523 11.51% 4,082 2013 435,639,889 - - 435,639,889 522,995,010 11.23% 3,972 2014 505,105,688 - - 505,105,688 591,409,727 12.50% 4,435 2015 493,735,898 - - 493,735,898 607,312,228 12.19% 4,599

1 2005 through 2013 have been restated for the implementation of GASB 65

2 Personal income is disclosed on Schedule 16

3 Population is disclosed on Schedule 16

Source for Personal Income: U.S Department of Commerce, Bureau of Economic Analysis Population Data: U.S. Census

Other Business-Type Activities Debt

135

Schedule 10 CITY OF COLUMBIA, SOUTH CAROLINA Ratios of General Bonded Debt Outstanding (unaudited)

Last Ten Fiscal Years

Governmental Percentage Activities Less: Amount of Estimated General Available in Actual Taxable

Fiscal Obligation Debt Service Value of Per

Year Bonds 1

Funds Total Property 2 Capita 3

2006 19,663,197$ 4,073,137$ 15,590,060$ 0.22% 132.80$ 2007 18,225,370 1,196,198 17,029,172 0.24% 146.45 2008 28,885,543 4,687,280 24,198,263 0.32% 190.49 2009 26,302,152 1,288,755 25,013,397 0.30% 196.91 2010 23,688,812 3,013,132 20,675,680 0.22% 159.86 2011 30,756,608 4,940,502 25,816,106 0.28% 199.70 2012 32,020,777 3,481,333 28,539,444 0.30% 218.54 2013 33,848,474 3,512,035 30,336,439 0.32% 230.37 2014 37,494,897 3,339,548 34,155,349 0.36% 256.12 2015 32,242,297 3,978,932 28,263,365 0.29% 214.01

1 2006 through 2013 have been restated for the implementation of GASB 65

2 Estimated value of property is disclosed on Schedule 5

3 Population is disclosed on Schedule 16

General Bonded Debt

136

Schedule 11

CITY OF COLUMBIA, SOUTH CAROLINA

Direct and Overlapping Governmental Activities Debt (unaudited)

June 30, 2015

Assessed Net Governmental Estimated Total Value Activities Percentage Amount

Assessed Within the Debt Applicable to Applicable to Jurisdiction Value City Outstanding 1 the City the City

Direct: City of Columbia 511,264,985$ 511,264,985$ 113,576,330$ 100.00% 113,576,330$

Overlapping Counties:

Richland County 1,498,404,260 489,445,315 93,695,000 32.66% 30,604,943 Lexington County 1,183,327,270 21,819,670 45,590,386 1.84% 840,653

School Districts: Lexington Richland SD 5 182,010,350 18,606,860 226,774,000 10.22% 23,183,034 Richland School District One 798,482,136 431,033,327 482,955,000 53.98% 260,706,772 Richland School District Two 517,911,774 39,805,128 462,350,000 7.69% 35,534,819

Special Districts: Airport District 1,498,404,260 489,445,315 8,070,000 32.66% 2,636,020 Riverbanks Park District 2,681,731,530 511,264,985 34,760,000 19.06% 6,626,902

Total Overlapping Debt 360,133,143

Total Direct and Overlapping Debt 473,709,473$

Source: Richland County Treasurer, Lexington County Treasurer, Richland County Auditor and Lexington County Auditor

1 The estimated amount of overlapping debt applicable to the City is determined by computing the percentage of property for

each government that lies within the City. The resulting percentage is then multiplied by the amount of governmental activities debt of each government.

137

Schedule 12 CITY OF COLUMBIA, SOUTH CAROLINA Legal Debt Margin (unaudited)

Last Ten Fiscal Years

Ratio of Net Debt

Fiscal Debt Net Debt Legal Debt Outstanding to

Year Limit Outstanding 1

Margin the Debt Limit

2006 31,640,942$ 18,830,000$ 12,810,942$ 59.51% 2007 32,607,444 17,430,000 15,177,444 53.45% 2008 34,218,939 28,155,000 6,063,939 82.28% 2009 37,162,628 25,695,000 11,467,628 69.14% 2010 40,339,242 23,125,000 17,214,242 57.33% 2011 40,322,422 30,055,000 10,267,422 74.54% 2012 40,899,152 31,505,000 9,394,152 77.03% 2013 41,428,018 33,515,000 7,913,018 80.90% 2014 41,564,012 35,680,000 5,884,012 85.84% 2015 41,434,582 30,665,000 10,769,582 74.01%

Source: Richland County Auditor's Office and Lexington County Auditor's Office

1 Excludes debt not applicable to the limit.

Legal Debt Margin Calculation for the Year Ended June 30, 2015:

Assessed value in Richland County 489,445,315$ Assessed value in Lexington County 21,819,670 Subtotal 511,264,985 Business inventory 1987 assessed value 6,667,290 Total assessed value 517,932,275

8.00% Debt Limit 41,434,582 Net debt outstanding subject to the debt limit 30,665,000 Legal debt margin as of June 30, 2015 10,769,582$

138

Schedule 13 CITY OF COLUMBIA, SOUTH CAROLINA Certificates of Participation Debt Coverage (unaudited)

Last Ten Fiscal Years

COPS Fiscal Allowable Debt

Year Revenues 1

Principal Interest Total Coverage

2006 11,478,171$ 2,411,813$ 2,585,435$ 4,997,248$ 2.3 2007 11,945,776 2,080,000 2,455,630 4,535,630 2.6 2008 13,375,022 2,175,000 2,365,080 4,540,080 2.9 2009 13,026,184 2,250,000 2,274,105 4,524,105 2.9 2010 12,519,790 2,335,000 2,191,986 4,526,986 2.8 2011 12,875,743 2,480,000 2,012,205 4,492,205 2.9 2012 13,760,410 2,635,000 1,976,483 4,611,483 3.0 2013 14,655,101 3,700,000 1,720,250 5,420,250 2.7 2014 15,260,239 3,225,000 848,193 4,073,193 3.7 2015 16,283,694 3,300,000 772,230 4,072,230 4.0

1 As defined in the bond documents.

Debt Service Requirement

139

Schedule 14 CITY OF COLUMBIA, SOUTH CAROLINA Water and Sewer Department Schedule of Revenue Bond Coverage (unaudited)

Last Ten Fiscal Years

Current Net Revenue Revenue Fiscal Allowable Operating Available for Net Swap Bond

Year Revenues 1

Expenses 2 Debt Service Principal Interest 3 Payments 4

Total Coverage

2006 92,726,369$ 51,852,947$ 40,873,422$ 14,915,000$ 7,052,737$ -$ 21,967,737$ 1.9

2007 101,657,409 53,436,775 48,220,634 9,275,000 7,889,584 - 17,164,584 2.8 2008 118,014,221 61,347,698 56,666,523 9,865,000 7,419,673 - 17,284,673 3.3 2009 110,181,495 58,541,111 51,640,384 10,410,000 6,880,982 - 17,290,982 3.0 2010 113,389,385 76,393,887 36,995,498 11,295,000 7,673,174 (49,865) 18,918,309 2.0 2011 110,749,377 79,584,775 31,164,602 11,905,000 12,724,467 (56,216) 24,573,251 1.3 2012 115,271,396 80,373,777 34,897,619 12,150,000 13,873,881 (29,306) 25,994,575 1.3 2013 121,878,086 74,400,785 47,477,301 6,465,000 17,047,580 (828) 23,511,752 2.0 2014 117,924,265 66,189,697 51,734,568 8,810,000 18,790,180 (1,811) 27,598,369 1.9 2015 118,178,523 67,105,722 51,072,801 8,095,000 20,219,738 (7,406) 28,307,332 1.8

1 Represents total operating revenues as well as all nonoperating revenues and investment income. 2 Represents total operating expenses less depreciation expense. 3 Includes capitalized interest. 4 The City has a pay fixed interest rate swap associated with the Series 2009 revenue bond.

Debt Service Requirement

140

Schedule 15 CITY OF COLUMBIA, SOUTH CAROLINA Parking Department Schedule of Revenue Bond Coverage (unaudited)

Last Ten Fiscal Years

Current Net Revenue Revenue

Fiscal Allowable Operating Available for Bond

Year Revenues 1 Expenses 2 Debt Service Principal Interest

3 Total Coverage

2006 5,091,104$ 404,645$ 4,686,459$ 440,000$ 2,455,384$ 2,895,384$ 1.6 2007 4,859,393 524,835 4,334,558 460,000 2,455,384 2,915,384 1.5 2008 5,765,193 1,046,949 4,718,244 740,000 2,429,153 3,169,153 1.5 2009 6,190,809 1,571,323 4,619,486 780,000 2,388,322 3,168,322 1.5 2010 4,549,663 1,616,796 2,932,867 825,000 2,344,732 3,169,732 0.9 2011 4,365,608 760,577 3,605,031 870,000 2,298,059 3,168,059 1.1 2012 4,487,992 863,010 3,624,982 310,000 2,152,618 2,462,618 1.5 2013 6,911,985 3,299,708 3,612,277 970,000 2,184,910 3,154,910 1.1 2014 6,592,455 3,073,503 3,518,952 1,030,000 2,128,167 3,158,167 1.1 2015 7,040,165 3,576,578 3,463,587 1,065,000 2,000,288 3,065,288 1.1

1 Represents total operating revenues as well as all nonoperating revenues and investment income less revenues from parking fines and late fees.

Definition of allowable revenues was revised during fiscal years 2006 and 2013.

2 For the years 2006 and 2007 represents total operating expenses less depreciation expense less operating expenses paid with revenues from

parking fines and late fees. Definition of current operating expenses was revised during fiscal years 2006 and 2013.

3 Includes capitalized interest

Debt Service Requirement

141

Schedule 16 CITY OF COLUMBIA, SOUTH CAROLINA Demographic and Economic Statistics (unaudited)

Last Ten Fiscal Years

Per Capita Public Personal Personal School Unemployment

Year Population 1

Income 2

Income Enrollment3 Rate4

2006 117,394 3,792,765,352$ 32,308$ 24,060 6.20% 2007 116,278 3,748,570,164 32,238 23,658 5.10% 2008 127,029 4,311,745,347 33,943 24,179 5.80% 2009 127,029 4,395,203,400 34,600 24,590 9.80% 2010 129,333 4,506,867,051 34,847 23,119 9.20% 2011 129,272 4,536,930,112 35,096 22,898 10.50% 2012 130,591 4,632,454,543 35,473 22,475 8.50% 2013 131,686 4,655,100,100 35,350 24,166 8.00% 2014 133,358 4,730,608,334 35,473 24,171 5.50% 2015 132,067 4,980,378,637 37,711 24,320 6.30%

Source of data:

1 U.S. Census Bureau 2 U.S. Census Bureau 3 S.C. State Department of Education 4 S.C. Department of Employment and Workforce

142

Schedule 17 CITY OF COLUMBIA, SOUTH CAROLINA Principal Employers

Current Year and Nine Years Ago

Percentage Percentage to Total City to Total City

Employer Employees Rank Employment 3 Employees Rank Employment

Palmetto Health 9,400 1 7.67% 9,300 2 N/A University of South Carolina 8,400 2 6.86% N/A 3 Blue Cross Blue Shield of South Carolina 6,459 3 5.27% 7,200 4 N/A Wal-Mart 5,800 4 4.73% 4,500 5 N/A SC Department of Transportation 4,318 5 3.52% N/A 6 N/A Richland County School District One 4,229 6 3.45% N/A 7 N/A SC Department of Mental Health 3,917 7 3.20% N/A 8 SC Department of Health and Environmental Control 3,500 8 2.86% N/A 9 N/A City of Columbia, South Carolina 2,438 9 1.99% N/A N/A AT&T 2,400 10 1.96% 2,300 10 State of South Carolina N/A 1 N/A

Source of data:

1 South Carolina Department of Employment and Workforce 2 2005 Central Midlands Council of Government Survey 3 122,507 total workers were reported working in Columbia, South Carolina, per the 2010 PHC-T-40 Estimated Daytime

Population and Employment - Residence Ratios: 2000, published by the US Census Bureau N/A Data not available

2015 1 2006 2

143

Schedule 18 CITY OF COLUMBIA, SOUTH CAROLINA Full-Time Equivalent Employees By Function/Program

Last Ten Fiscal Years

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Function/Program General government 81.25 84.30 93.25 100.00 99.00 93.97 99.00 101.00 105.00 104.25 Judicial 40.00 42.00 41.00 36.00 35.00 36.00 37.00 36.00 37.00 37.00 Finance 50.00 54.00 58.00 57.00 56.00 51.50 53.50 51.50 71.50 79.50 Development services and planning 59.00 62.00 64.30 56.00 63.00 63.00 63.00 63.00 63.00 43.00 Public safety 689.00 735.00 743.50 757.50 757.50 747.50 757.50 770.00 770.50 792.50 Parks and recreation 131.75 155.80 155.75 156.00 149.00 149.00 149.00 149.00 149.00 149.00 Public works 296.00 295.00 301.00 303.00 275.00 269.00 270.00 269.00 268.00 269.00 General services 10.00 10.00 11.00 11.00 11.00 11.00 15.00 14.00 14.00 17.00 Fleet services 47.00 47.00 47.00 47.00 41.00 44.00 46.00 46.00 48.00 48.00 Risk Management 3.00 3.00 3.00 3.00 3.00 2.00 2.00 2.00 2.00 2.00 County fire 154.00 184.00 198.00 233.00 236.00 236.00 235.00 235.50 235.50 235.50 County emergency communications 36.00 36.00 35.50 35.50 38.50 38.50 38.50 45.50 45.00 45.00 Economic & Community development 48.00 46.00 53.04 51.20 43.50 44.63 39.60 36.50 41.50 44.50 Parking 37.00 41.90 41.66 46.00 42.00 41.00 41.00 42.00 43.00 44.25 Utilities & Engineering 507.00 489.00 489.00 499.80 482.50 501.90 498.90 519.00 504.00 504.50 Summer Programs 21.50 25.00 21.00 21.00 18.50 20.00 24.50 24.50 23.50 23.50

Total 2,210.50 2,310.00 2,356.00 2,413.00 2,350.50 2,349.00 2,369.50 2,404.50 2,420.50 2,438.50

Source: City's Human Resource department

Years 2006-2014 have been re-stated to reflect budgeted positions

Full-time Equivalent Employees as of June 30,

144

Schedule 19 CITY OF COLUMBIA, SOUTH CAROLINA Operating Indicators By Function/Program

Last Ten Fiscal Years

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Function/Program Public Safety

Police physical arrests N/A N/A N/A 6,418 6,734 7,259 8,024 10,652 5,301 5,658 Citations written 25,741 N/A N/A 34,357 29,522 25,985 30,996 33,111 37,307 32,497 911 call volume 997,111 998,628 1,021,541 1,032,664 1,171,433 1,197,141 1,102,640 1,317,008 1,222,436 1,096,117 Fire calls answered 22,860 27,025 28,982 28,746 30,208 30,629 31,265 31,240 35,785 34,500 Number of inspections 1,740 2,049 3,630 4,410 6,943 7,911 7,726 6,261 5,292 6,482

Sanitation Refuse collected (in tons) 99,875 97,616 96,140 90,222 63,507 57,903 N/A 43,157 51,106 43,924 Recyclables collected (in tons) 3,262 3,739 3,779 3,538 3,932 4,223 N/A 3,867 4,591 4,021

Fleet Management Fleet maintained 2,664 2,934 3,164 3,329 3,668 3,925 4,055 2,802 2,893 3,005 Fleet workdays 13,074 13,909 13,385 13,747 13,336 13,309 12,901 12,608 12,052 12,048

Streets and highways Potholes repaired 1,168 1,505 1,120 2,757 1,524 1,416 920 1,231 1,453 1,598

Water Number of service connections 116,857 127,196 124,414 125,846 134,910 140,721 136,220 137,701 140,009 139,990 Average daily consumption (in millions of gallons) 0.454 0.360 0.349 0.436 0.352 0.315 0.320 0.440 0.458 0.449

Sewer

Number of service connections 61,248 65,848 67,786 68,550 74,865 69,199 69,508 67,698 1 60,239 59,677 Average daily treatment (in millions of gallons) 0.142 0.139 0.127 0.136 0.139 0.134 0.152 0.169 0.189 0.182

Economic development Permits issued 6,023 5,697 4,667 4,404 4,204 4,129 4,181 4,950 4,262 5,438 Building inspections 12,355 11,932 11,612 9,472 10,544 40,018 10,277 15,735 14,514 10,025

1 During the year ended June 30, 2013, the City of Columbia sold a portion of its sewer system to a private contractor.

Source: Various City departments

Year Ended June 30,

145

Schedule 20 CITY OF COLUMBIA, SOUTH CAROLINA Capital Asset Statistics By Function

Last Ten Fiscal Years

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Function/Program Police

Police stations 24 24 22 14 14 14 16 10 12 13 Patrol units N/A N/A N/A N/A N/A N/A N/A 205 238 296 Vehicles 138 155 206 233 244 305 371 358 395 483

Fire Fire stations 11 11 11 12 12 12 12 12 12 12 Vehicles 144 180 194 210 215 219 236 251 270 270

Public works Vehicles 376 422 457 486 518 553 603 600 600 626 Streets (miles) 219.00 219.00 219.00 219.00 219.00 220.00 220.00 275.00 275.00 275.00 Sidewalks (miles) 120.25 120.45 120.45 120.45 120.45 120.45 139.56 139.46 139.46 139.50 Traffic signals 261 261 262 262 262 262 265 364 364 331 Street lights 9,030 9,067 9,250 9,437 9,859 10,190 10,325 11,724 11,363 11,483

Parks and recreation Parks - acreage 597.85 597.85 597.85 600.00 600.00 600.00 600.00 600.00 600.00 600.00 Park facilities 58.00 58.00 58.00 59.00 59.00 59.00 60.00 60.00 60.00 60.00 Tennis courts 54.00 54.00 54.00 54.00 54.00 54.00 54.00 57.00 55.00 55.00 Swimming pools/splash pads 3.00 3.00 3.00 4.00 4.00 4.00 4.00 15.00 16.00 16.00 Playground 30.00 30.00 30.00 30.00 30.00 30.00 31.00 31.00 31.00 31.00

Parking Garages 6 7 7 8 8 8 9 9 8 8 Lots 5 5 5 5 5 5 5 5 4 5 Metered spaces 4,333 4,604 4,602 4,703 4,736 4,728 4,704 4,502 4,487 4,198

Stormwater Storm drains (miles) 137.00 137.00 137.00 137.00 137.00 137.00 137.00 254.00 254.00 366.00 Vehicles N/A 54 55 55 70 67 69 63 64 68

Wastewater Sanitary sewer (miles) 992.70 1,002.50 1,036.90 1,047.97 1,053.75 1,100.00 1,108.50 1,059.00 1,077.00 1,109.00 Vehicles 143 161 183 200 212 278 331 300 277 278 Treatment plants 1 1 1 1 1 1 1 1 1 1

Solid Waste Vehicles 62 73 85 94 95 117 128 130 125 127

Water Water lines (miles) 1,837.70 1,887.10 1,935.69 1,954.68 1,966.58 1,966.58 1,978.45 2,250.00 2,301.00 2,356.00 Vehicles 138 178 209 228 237 256 281 291 285 298 Fire hydrants 6,189 3,063 3,307 5,200 5,300 5,300 5,350 5,450 4,300 4,390 Treatment plants 2 2 2 2 2 2 2 2 2 2

Source: Various City departments

Vehicle data includes both licensed and unlicensed vehicles

Year Ended June 30,

146