FY18 Budget Document

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BUDGET 2017/2018 - APPROVED 2018/2019 - RECOMMENDED

Photo Background: Children watch as Fountain Park lights up during a Food Truck Friday event, hosted by the Old Town Association.

Photo Credit: Mike Baker

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Budget Adopted June 26, 2017 1

The Government Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished Budget Presentation Award to the City of Rock Hill, South Carolina for its annual budget for the fiscal year beginning July 1, 2016. In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, an operations guide, a financial plan, and a communications device.

This award is valid for a period of one year only. As we believe our current budget continues to conform to program requirements, we are submitting it to GFOA to determine its eligibility for another award.

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City of Rock Hill, South Carolina—Fiscal Year 2017/2018

The City received the 2017 Certificate of Distinction Award from the International City/County Management Association. Learn about our efforts on pages 88-89.

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

3

Mayor and City Council A. Douglas Echols, Jr. Mayor Ann Williamson Mayor Pro Tem, Ward 5 John A. Black III Councilmember, Ward 4 Sandra D. Oborokumo Councilmember, Ward 1 Kathy S. Pender Councilmember, Ward 2 James C. Reno, Jr. Councilmember, Ward 6 Kevin Sutton Councilmember, Ward 3

City Staff City Management David B. Vehaun City Manager

Mark Kettlewell Water/Sewer Utilities Director

James Bagley Deputy City Manager

William Meyer Planning and Development Director

Steven Gibson Assistant City Manager

Terrence Nealy Public Works Director

Management Team

John Taylor Parks, Recreation, and Tourism Director

Mike Blackmon Fire Chief Lisa M. Brown Strategy & Performance Manager Phyllis Fauntleroy Human Resources Director Anne Harty Chief Financial Officer Cynthia Howard General Services Director

Stephen Turner Economic and Urban Development Director Chris Watts Police Chief Jennifer Wilford Housing & Neighborhood Services Director Spencer & Spencer, P.A. City Attorney

Budget Staff Mike Jolly Electric Utility Director

4

Melanie Brandon Budget Analyst

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

City of Rock Hill Organization Chart Citizens of Rock Hill Mayor and City Council Boards & Commissions

City Attorney

City Manager Deputy City Manager

Assistant City Manager

Operations Administration *

Police

Solicitor’s Office*

Information Technology *

Fire

Municipal Court*

Electric

Planning & Development

Housing & Neighborhood Services

Water/Sewer Economic & Urban Development Public Works

Human Resources

Finance City Management *

Parks, Recreation, and Tourism Intergovernmental Manager General Services

Grants *

Airport *

*Denotes divisions within the organization

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

5

Table of Contents INTRODUCTORY SECTION City Manager’s Budget Message

9

Budget Highlights

13

Rock Hill at a Glance

14

Budget Process

20

Budget Calendar

21

Budgetary Fund Structure

22

Financial Policies and Strategies

23

Sources and Uses of Funds

26

REVENUE SUMMARY Revenue Summary

28

EXPENDITURE SUMMARY Expenditure Summary

39

FY2016—2018 Strategic Plan

44

Quality Services

51

Quality Places

67

Quality Community

77

PERFORMANCE BUDGETS

6

Introduction to Performance Budgets

88

Fiscal Year 2017 Performance Results Summary

88

Accountability & Transparency Efforts

89

Office of Management

90

Judicial Services

95

Human Resources

98

Housing and Neighborhood Services

101

Police

105

Fire

109

Planning and Development

113

Public Works

118

General Services (Fund 500)

124

Finance

129

Parks, Recreation, and Tourism

135

Housing Authority

139

Economic and Urban Development

140 City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Table of Contents Stormwater Fund

142

Electric Fund

143

Water Fund

150

Wastewater Fund

154

Statement of Revenues, Expenses, and Changes in Fund Balance/Net Assets

159

BOND SCHEDULES Debt Service Narrative

167

Revenue Bonds

168

General Obligation Bonds

173

Tax Increment Financing Bonds

177

Stormwater Bonds

185

Hospitality Tax Revenue Bonds

189

New Market Recovery Bonds

192

Equipment Lease Purchase

193

Summary of Total Debt Service Requirements

197

CAPITAL SUMMARY Capital Summary

198

Enterprise Funds Rate Plan

199

Capital Improvement Plan and Process

201

Development of the Plan

202

Impact of the CIP on the Operating Budget

203

Classification of Improvements

203

Distribution of Capital Improvements

204

Funding Plan

206

PERSONNEL SUMMARY Personnel Summary

234

APPENDIX Budget Ordinance

250

Glossary of Terms

256

Glossary of Acronyms

263

Financial Policies

264

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

7

FY2017/2018 Approved Budget

Monitor Rock Hill’s financial and strategic plan progress by visiting the City’s Financial and Performance Dashboards located on the City’s transparency webpage at: cityofrockhill.com/transparency.

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City of Rock Hill, South Carolina—Fiscal Year 2017/2018

City Manager’s Letter It is my privilege to present the balanced budget for the fiscal year beginning July 1, 2017, and ending June 30, 2018, which totals $236,159,457. The annual budget is the policy document that communicates the financial policies of the City for the fiscal year. The budget is prepared each year with the support and policy input of our elected officials and hard work from our departments to ensure that we are preparing the leanest budget possible while still providing high quality The Fiscal Year 2018 balanced services through excellent service delivery. Each annual budget has a long budget maintains the level of term impact on our community and our citizens. We continue to maintain service that Rock Hill citizens fiscal prudence and efficient management of operations to ensure we stay have grown to appreciate and well positioned to respond to challenges facing the City today while expect while continuing the addressing future needs of our community.

City’s tradition of fiscal Factors Affecting This Year’s Budget and efficient In preparing the annual budget, several factors greatly impacted the decision prudence operations which keeps us -making process. Three major factors influencing the FY 2018 budget, which impacted the General Fund more substantially, were increases to the road well positioned to respond to paving fund; an increase in the city-paid portion of healthcare cost; and a challenges that face our City required increase to the retirement system, the first of six expected annually today and address future through FY 2023. Since FY 2013, as a part of the City’s Strategic Plan, needs. The approved budget allocation of General Fund dollars to repave roads has increased from reflects the City’s priorities as $300,000 to $1,825,000. Implementation of this initiative has reduced the outlined in the Strategic percentage of city roads considered in poor condition from 12.27% in 2015 Plan. This budget document to 9.8%, an expected trend, given the emphasis placed on this strategic focus area. With rising healthcare costs and being a self-insured organization, it provides useful information was necessary to increase our per employee allocation for health insurance. about the City’s financial and The greatest challenge facing Rock Hill, like other member cities and counties performance plans, goals, throughout the state, was presented by the state legislature’s actions in late and policies. spring to correct deficiencies in the state pension system. The City absorbing a required one percent employer increase to the state retirement system, as well as making an adjustment to the employee gross pay to offset an additional employee increase to the state retirement system, stifled our ability to fund new initiatives in the General Fund, including needed staff additions to respond to increased demand for services. The increases in employer retirement contribution rates will ultimately produce an employer rate of 18.56% for SCRS and 21.24% for PORS. Even if payroll remained unchanged until FY 2023, it will add over $3 million in annual costs to the City’s payroll which will greatly impact the City’s financial flexibility in the coming years.

The growth of our community also creates challenges within our departments as we strive to meet the demands of a growing area where there are more services being provided to more customers without additional staff. The city’s population has grown 69.52% since 1990, mostly due to the progression from a textile community to a manufacturing, distribution and knowledge economy. Although the population has greatly increased, the number of City employees has only grown 18%. If you exclude public safety, the number of employees actually decreased by 2.62% during that same time period. Despite these growing demands and because of the pressures placed on the General Fund, only four new positions in electric and wastewater are included in the Fiscal Year 2018 budget: an Electronic Service Tech II to handle electrical preventative maintenance in the water and wastewater treatment plants, an Engineering Tech II to manage the electric capital improvement projects, a Water/Wastewater Superintendent to monitor permit requirements created by the expansion of the Wastewater Treatment Plant, and a Maintenance Technician III to maintain equipment, chemical systems, processes and buildings associated with the Wastewater Treatment Plant expansion.

The City continues to focus on business-friendly initiatives this fiscal year. City Management and elected officials continue to meet with the small business leadership group, developers and community members to determine ways the City can best assist businesses. The City also continues to offer a 10% discount on business license fees to those who pay on time. Additionally, a local preference ordinance was extended through this budget year that gives an advantage to our local contractors in matching the lowest bid on City projects. Finally, the City is keeping the business-friendly initiative of reimbursing contractors who upsize water and sewer lines.

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

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City Manager’s Letter Strategic Planning In 2015, Rock Hill’s City Council looked at new data collected from citizen, business & employee surveys, and worked with staff to develop a set of revised strategic initiatives and a strategic plan, which was adopted on May 26, 2015, and will guide the City through June 30, 2018, when a new strategic plan will be adopted. Business and employee surveys have already been collected and citizen’s surveys will be circulated this fall, which will guide the development of the new strategic plan. Our strategic plan provides a blueprint for the City’s future by outlining ambitions, setting priorities, and providing performance targets to ensure adequate progress toward making the vision a reality. Rock Hill is committed to quality, and this year’s budget continues to support providing quality services, developing quality places, and fostering a quality community.

Quality Services focuses on the core governmental functions that the City of Rock Hill provides. These include initiatives like police, fire, public works, parks, electric, water and sewer services. The City provides these basic services in a way that emphasizes efficiency, effectiveness, and affordability for our customers. Providing quality services is at the heart of the City’s 24/7/365 operations, leading to our tag line “Always on.”

Quality Places focuses on developing and sustaining exceptional locations throughout our city. Places to work, live, and play add to the appeal of Rock Hill. This includes everything from business parks to sports tourism facilities. In the development of City-led projects, input is solicited from civic, business, political, and cultural leaders.

Whenever possible, the City looks for public-private partnerships to help facilitate quality places throughout our city.

Quality Community is about enhancing the overall quality of life for Rock Hill citizens through partnerships and collaboration. The City is intent on engaging citizens and building public trust.

Additional information on the Strategic Plan can be found in the Performance Budget section of this document.

Funding by Strategic Initiative Our approved budget distributes Fiscal Year 2018 financial resources by departments and across strategic initiatives in the following manner:

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City of Rock Hill, South Carolina—Fiscal Year 2017/2018

City Manager’s Letter Financial reality on budget process As with any budget process, there are certain financial limitations that are taken into account. The City’s financial policies govern the entire budget process. For example, the City is very cognizant of our General Fund debt margin of 8%. With this in mind, there have been certain capital projects that the City chose to fund from the operating budget instead of issuing debt. Another example of how the City’s financial policies govern the budget process is with our operating transfer policy. The City uses a formula that presupposes that utility services would have been provided by a privately-owned utility instead of the City’s publicly-owned utility. Such utility would have paid municipal ad valorem taxes and a franchise fee to the General Fund of the City, and the utility’s investors would have been entitled to a return on their investment. For this reason, the City has established a policy guideline regarding franchise fees, payments in lieu of taxes, rates of return and operating transfers from the utility system.

Both the FY 2018 and FY 2019 budgets strictly adhere to these guidelines.

A Few Budget Highlights: Budget Summary The Fiscal Year 2018 approved budget totals $236,159,457, a 4.6% increase over last fiscal year. The proposed Fiscal Year 2019 budget totals $255,276,307, an 8.1% increase over Fiscal Year 2018.

The Local Hospitality Tax continues to have a positive impact on our community by supporting tourism-generating activities which have produced a significant economic impact since its inception in 2003. In July, the City hosted the 2017 UCI BMX World Championships, which attracted 3,700 riders from 48 countries and produced an estimated direct economic impact of over $19 million.

Successful business recruitment efforts have resulted in business license revenues remaining strong. There has also been modest growth in real and personal property taxes. Despite milder weather patterns, electric, water, and wastewater revenues also remained strong. FY 2017 produced electric and wastewater revenues that were on target, while water actually exceeded budget by 9.5%.

Due to the challenges facing our budget, particularly in the General Fund, the approved FY 2018 budget and the recommended FY 2019 budgets include a pay-for-performance that will be distributed as a lump sum instead of a base wage increase for employees. Additionally, fiscal years 2018 and 2019 budgets reflect a continued restoration of the City’s established equipment and vehicle replacement schedule.

General Fund The approved FY 2018 General Fund budget totals $61,560,125, an increase of 2.8% when compared to last fiscal year’s approved budget and includes a 5% increase in residential sanitation rates to cover a 7.5% increase in the York County landfill tipping fees absorbed since 2015 and an increase in operations. The impact of the increase to the average residential customer will be $0.90. The proposed FY 2019 General Fund budget totals $62,809,424, a 2.0% increase when compared to FY 2018.

The revenues in the General Fund are predominately property taxes (41%), charges for services (21%), and licenses/permits (17%).

The property tax rate remains at 93.5 mils. The City’s taxpayer concentration remains favorable; there is no significant exposure Tax Year among any certain taxpayer.

2016

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Taxpayer Concentration 2013-2016 Total Assessed Value

Assessed Value of % Top 10 Total Top 10 Taxpayers Assessed Value

273,946,825

28,500,960

10.40%

2015

258,937,028

20,583,964

7.95%

2014

251,125,844

18,373,151

7.32%

2013

247,622,812

18,201,187

7.35%

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City Manager’s Letter Utility Enterprise Fund The Utility Enterprise Fund consists of the electric, water, wastewater and stormwater funds and water and wastewater impact fee funds. Fiscal Year 2018 expenditures for the Utility Enterprise Fund total $163,399,571, a 4.9% increase over last year’s approved budget. The proposed 2019 budget is $172,892,847 which represents a 5.8% increase over Fiscal Year 2018. Maintaining aging infrastructure, expanding infrastructure into growing areas, and using technology to enhance service delivery are priorities for our Utility Fund. In Fiscal Year 2018, the combined utility system expects to issue an additional $57 million in new debt to begin expansion of our wastewater treatment facilities, $10.5 million to complete the final phase of the automated metering instrumentation system along with $4.2 million in State Revolving Funds to cover the completion of two major stormwater projects in the stormwater master plan.

For the first time in 18 years, neither Rock Hill customers nor the City saw an electric rate increase. Over the past twenty years, the City’s electric system has absorbed over $208 million worth of rate increases from PMPA, but because there was no PMPA rate increase this year, the City was able to keep electric rates stable. Implementing the 2nd phase of our water and wastewater rate restructure, the Fiscal Year 2018 approved budget includes—a combined 9.11% water base and volumetric rate increase, equivalent to $1.70 for our average inside residential customer, and a 2.99% wastewater base and volumetric rate increase, equivalent to $1.20 for our average inside residential customer. The restructure realigns the base rates and implements tiers based on consumption to reflect industry standards. Both water and wastewater rate increases will fund water and wastewater system capital projects and the expansion of the water and wastewater treatment facilities.

The proposed Fiscal Year 2019 budget includes a 1% electric rate increase to cover a projected wholesale power rate increase, along with a combined base and volumetric increase of 5.91% for water and a 3% combined base and volumetric wastewater rate increase to cover additional system capital improvements as outlined in our newly revised utility CIP. The overall monthly impact to the average residential customer will be $3.75 for these expected increases.

Conclusion Despite the challenges presented with balancing the Fiscal Year 2018 and Fiscal Year 2019 budgets, Rock Hill’s tradition of fiscal prudence has allowed us to continue with progress on accomplishing the goals outlined in the Strategic Plan and enhancing the overall quality of service delivery to our community. I invite you to monitor our financial and strategic plan progress throughout the year by visiting the City’s performance and financial dashboards located on the City’s transparency webpage— cityofrockhill.com/transparency.

Respectfully submitted,

David B. Vehaun City Manager

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The International City/ County Management Association recognized our performance management program, comparative analysis, and transparency in awarding us the 2017 Certificate of Distinction Award.

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Budget Highlights During Fiscal Year 2018, the City’s strategic goals will continue to guide our focus on maintaining Rock Hill as a city known for quality. The following funding highlights are included in the adopted budget: Quality Services

The budget provides for increased funding for road paving in our community – up $225,000 from the previous budget, for a total of $1,385,000. An additional $20,000 also brought funding for sidewalk repair to a total budget of $120,000.

Quality Places

Funding for capital improvement work in the Knowledge Park area, including utility work, is provided in the approved budget. In addition, $200,000 is allocated to fund the CMAQ local match for the Celanese/ India Hook Road intersection improvement project.

Quality Community

The Fiscal Year 2018 budget includes funding for the continuation of the successful Weed & Seed program which is a comprehensive approach to community revitalization that uses coordinated crime reduction activities combined with a mix of social, economic, and housing improvement programs in targeted neighborhoods.

City Financial Profile

Budget Challenges this year: 





Increasing state retirement cost -Over the next six years, the employer portion of state and police retirement will increase by 7%, while the employee portion will be capped at 9% for state retirement and 9.75% for police retirement. To offset the impact for employees this fiscal year, a total of $248,862 was budgeted over all funds to cover the employee portion of the increase with an additional $434,759 budgeted to cover the employer increase. 32% of the total General Fund revenue increase over FY17 was used to cover its portion of these increases.

Increasing funding for road improvements -An additional $225,000 was added to the FY18 full-cost paving budget to meet the ever increasing need for resources to maintain the roadways within the City limits, bringing the total allocation to $1,385,00. This along with the $200,000 allocated for the 20% CMAQ local match required for the Celanese/India Hook intersection improvement project, consumed approximately 26% of the total General Fund revenue increase in the FY18 budget.

Continuing business-friendly initiatives -Continued reduction of business license fees by 10% if paid on time -Extension of the Local Preference policy for purchasing to give local contractors an advantage for City projects.

- Reimbursement to developers for the cost of upsizing water and sewer lines.

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

2015/2016

2016/2017

2017/2018

Total Budget

$214,024,861

$225,791,516

$236,159,457

General Fund Budget

$57,687,100

$59,900,249

$61,560,125

Total Staff Positions

948

951

955

Property Tax Millage Rate

93.5

93.5

93.5

Quick Numbers 

Millage Rate remains at 93.5 mils.



Electric & Stormwater Rates remain the same.



5% Residential Sanitation Rate increase to cover 7.5% tipping fee increase absorbed since June 2015; $0.90 increase.



9.11% Water Rate increase for the average residential customer to cover water system capital projects, including plant improvements; $1.70 increase.



2.99% Wastewater Rate increase for the average residential customer to cover wastewater system capital projects and flow equalization; $1.20 increase.



Business License Discount offers a 10% reduction for on-time payment.



Fiscal Year 2017-2018 Budget- $236,159,457

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Rock Hill at a Glance Rock Hill was founded in 1852 when the Charlotte/Columbia/Augusta Railroad line was being constructed through the area. Rail crews encountered a small, flinty hill and dubbed the spot “Rock Hill.” The village was incorporated in 1892.

Rock Hill is a business-savvy blend of historic charm and responsibly implemented expansion. The city is located in the north-central area of South Carolina approximately 20 miles south of Charlotte, North Carolina along the I-77 corridor.

The City operates under the council-manager form of government. Under this organizational structure, the Mayor and Council set policy direction and appoint a city manager who is responsible for implementing those policies efficiently and effectively.

The governing board is composed of a mayor elected at large and six council members elected by ward, each for four-year staggered terms. All officials are elected on a non-partisan basis.

Educational Profile Rock Hill is served by Rock Hill School District 3 and is home to three colleges and universities.

With a student enrollment of over 18,000 and 2,400 employees, Rock Hill School District 3 is the largest of York County’s four school systems and the 11th largest in the state.

Winthrop University has been a Rock Hill landmark since 1886.

Winthrop’s 100-acre tree-lined main campus is complemented by a nearby 450 acre sports and recreation facility.

Winthrop has an estimated enrollment of 6,109 students with Area Vicinity Map approximately 17% of these students pursuing graduate degrees.

York Technical College, founded in 1964, is a public institution offering both technical and college transfer courses. The College is one of 16 state-funded technical colleges, with an annual enrollment of more than 7,200 students.

Under the supervision of the AME Zion Church, Clinton College, formerly Clinton Junior College, (founded in 1894) offers associate degrees in business, religious studies, early childhood development, natural sciences and liberal arts. In 2013, Clinton added two four-year programs to their course offerings, including, a Bachelor of Science in Business Administration and a Bachelor of Arts in Religious Studies. A Bachelor of Science in Biology was recently added to their program offerings.

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Community Arts Profile The arts are an important part of the quality of life in any community. In Rock Hill, the Arts Council of Rock Hill and York County serves as the hub of cultural activities. The Arts Council provides a network for cooperation between cultural organizations and provides the public with a central location for information and tickets.

Through the School of Visual and Performing Arts, Winthrop University offers a variety of arts programs each year.

Winthrop Galleries, located in Rutledge Building and McLaurin Hall, exhibits the work of local, regional and national artists. The Department of Music and the Department of Theatre and Dance schedule campus performances by guest artists, faculty, and students throughout the year.

The Rock Hill Community Theatre (RHCT) is dedicated to providing quality theatrical entertainment for the residents of York County. The RHCT annually stages between four and six performances. The 75-voice York County Choral Society (YCCS) is annually accompanied by members of the Charlotte Symphony and provides two performances annually. Finally, the York County Ballet offers two full-length ballets each year.

Additionally, the Old Town Association hosts the The Old Town Amphitheater Concert Series.

The Concert Series offers national entertainment on a local level scale in its 1,200 capacity outdoor concert/event facility.

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Rock Hill at a Glance Demographics Profile

72,937*

56,427

* United States Census Bureau’s July 1, 2016, population estimate for Rock Hill

Major Employers in York County Employer

Number of Employees

1. Rock Hill School District Three

2,400

2. Wells Fargo Home Mortgage

1,828

3. Lash Group

1,800

4. Ross Stores, Inc.

1,790

5. Fort Mill School District

1,748

6. Piedmont Medical Center

1,600

7. Schaeffler Group USA, Inc..

1,270

8. Duke Power– Catawba Nuclear Station

1,228

9. Winthrop University

1,219

10. Clover School District

1,103

Source: York County Economic Development

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Unemployment Rate for Rock Hill Year

Unemployment Rate

2007

8.1%

2008

10.7%

2009

16.5%

2010

16.9%

2011

15.8%

2012

12.9%

2013

10.5%

2014

6.9%

2015

6.0%

2016

5.1 %

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Rock Hill at a Glance Economics Profile Real Property

Personal Property

Total

Tax Levy Year

Assessed Value

Estimated Actual Value

Assessed Value

Estimated Actual Value

Assessed Value

Estimated Actual Value

2015*^ 2014 2013 2012 2011* 2010 2009 2008 2007

194,039,186 192,274,209 190,770,687 189,417,598 186,482,809 179,738,100 175,709,840 167,855,603 158,437,437

4,107,162,767 3,877,529,883 3,847,322,733 3,894,104,523 3,853,110,908 3,824,214,894 3,777,761,558 3,594,867,803 3,243,207,659

79,907,639 66,662,819 60,353,157 58,245,214 55,476,526 51,797,882 52,635,320 55,540,885 55,006,000

967,902,166 762,000,227 675,900,776 670,112,601 650,570,628 631,911,120 575,525,917 607,004,207 599,455,444

273,946,825 258,937,028 251,125,844 247,622,812 241,959,335 231,535,982 228,345,160 223,396,488 213,443,497

5,075,064,933 4,639,530,110 4,523,223,509 4,564,217,124 4,503,681,536 4,456,126,014 4,353,287,475 4,201,872,010 3,842,663,103

Classification of Property

2016 Assessed Value^

Real Property (Non-manufacturing)

200,477,996

Vehicles

28,145,355

Manufacturing (Real/Personal)

31,036,397

Marine/Aircraft

708,954

Business Personal Property Utilities

11,547,660 7,018,638

Total

278,935,000

Computation of General Fund Legal Debt Margin ^ 2016/2017 Total Assessed Value Debt Limit– 8% of Total Assessed Value Total Amount of Debt Applicable to Debt Limit Legal Debt Margin

278,935,0001 22,314,800 (17,995,000) $4,319,800

* Year of Reassessment ^ Projected 1

The gross assessed value for property taxes is the assessed value found in the City’s audit and is how the 8% debt limit is calculated. Budgetary purposes, however, only show the assessed value of property less Industrial Abatement. For 2016, Industrial Abatement is estimated to be $3,580,270.

Note: The City is authorized by state statute to exceed the legal debt margin of 8% , if such additional debt is approved by citizens of the City of Rock Hill.

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City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Rock Hill at a Glance Economics Profile City Financial Profile 2014/2015

2015/2016

2016/2017

2017/2018

Total Budget

$204,138,506

$214,024,861

$225,791,516

$236,159,457

Total General Fund Budget

$56,099,326

$57,687,100

$59,900,249

$61,560,125

934

948

951

955

Total Employees per 1,000 Population

13.68*

13.70*

13.29*

13.09*

Property Tax Millage Rate

93.5

93.5

93.5

93.5

Total Employees

*population estimated

Property Tax Rates Direct and Overlapping Governments Last Ten Tax Years

City General Fund

Rock Hill School District #3 and County* Purpose

2017*

93.5

307

400.5

2016

93.5

302.2

395.7

2015

93.5

298.1

391.6

2014

93.5

287.9

381.4

2013

93.5

287.9

381.4

2012

93.5

285.9

379.4

2011

93.5

289.4

382.9

2010

95.0

285.9

380.9

2009

95.0

285.5

380.5

2008

95.0

284.4

379.4

Year

Total

* County rate estimated

Top Five Taxpayers Taxpayer

2015 Property Taxes

Assessed Value

Ross Dress for Less Inc.

$910,377

$9,736,648

Comporium Inc.

$501,190

$5,360,322

AMISUB of SC Inc.

$313,868

$3,356,880

Atotech USA Inc.

$192,279

$2,056,464

REIT Management & Research LLC

$169,793

$1,815,970

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

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Rock Hill at a Glance Utility System Profile The combined utility system, which provides electrical, water, and sewer services within the City and its surrounding areas, is municipally owned and operated. Rates are set by City Council. The system presently serves approximately 110,000 people, including residential and commercial customers of the City and its suburbs. The Rock Hill City Council is the rate setting body for all utilities– no State or other authority regulates the City’s utility rates.

Electric System

Water System

The City has operated the electric system since 1911.

The electric system consists of eight substations which serve 33 distribution feeder circuits of 25,000 volts.

The City purchases electric power from Piedmont Municipal Power Agency (PMPA) and Southeastern Power Administration at wholesale rates and retails to local consumers through the City-owned distribution lines. A mutual assistance agreement with 20 other members provides for mutual assistance in extreme emergencies.

The City withdraws water from Lake Wylie, a Duke Energy Company lake constructed in 1915. The water division currently maintains 512 miles of waterline, 3,035 hydrants, 37,871 water meters, 6,694 valves and 5 elevated water tanks. Within the water system, 4.75 million gallons of elevated storage and 3 million gallons of ground storage are provided. The water system serves both residential and industrial customers.

Number of Customers - Electric System

Number of Customers - Water System

Last Ten Fiscal Years

Last Ten Fiscal Years

2017

35,770

2017

32,127

2016

34,937

2016

31,422

2015

34,338

2015

31,375

2014

33,839

2014

30,243

2013

33,531

2013

29,950

2012

33,142

2012

29,427

2011

33,126

2011

29,357

2010

33,204

2010

29,288

2009

32,873

2009

28,779

2008

32,917

2008

28,688

Wastewater System The City’s wastewater and a significant amount of wastewater collected by York County is treated at the Manchester Creek Treatment Facility. Manchester is a combination trickling filter and activated sludge plant with a 20 million gallons per day capacity. The sewer division maintains 488 miles of sewer line, 10,370 manholes and a low-pressure sewer system.

Number of Customers - Wastewater System Last Ten Fiscal Years

18

2017

2016

2015

2014

2013

2012

2011

2010

2009

2008

33,583

32,897

31,873

31,600

31,296

30,824

30,568

30,286

29,786

29,541

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Rock Hill at a Glance

Monthly Impact of Tax & Utility Rates on Typical Residential Household 2013/2014

2014/2015

2015/20166

2016/2017

2017/2018

$115.95

$122.91

$129.06

$131.00

$131.00

Sanitation including recycling

$18.59

$18.59

$18.59

$18.59

$19.49

Water2

$19.26

$19.26

$19.43

$18.66

$20.36

3

$39.03

$39.03

$39.45

$40.18

$41.38

$46.75

$46.75

$46.75

$46.75

$46.75

$2.88

$3.74

$3.74

$4.25

$4.25

$242.46

$250.28

$257.02

$259.43

$263.23

Electricity1

Sewer

Taxes4 Stormwater

5

Total Assumptions

1 Usage of 1,000 kWh 2 Usage of 6,000 gallons 3 Charged on 6,000 gallons 4 Based on a home valued at $150,000 5 Based on a lot size of more than 10,000 sq. ft.

6 Reassessment year (millage rate remained the same)

Monthly Impact of Tax & Utility Rates on Typical Business 2013/2014

2014/2015

2015/20168

2016/2017

2017/2018

1

$2,577.32

$2,732.64

$2,869.27

$2,912.45

$2,912.45

Sanitation2

Electricity

$387.73

$387.73

$387.73

$387.73

$387.73

3

$65.69

$65.69

$66.19

$73.31

$79.55

Sewer4

$166.64

$166.64

$168.31

$185.40

$193.73

$116.88

$116.88

$116.88

$116.88

$116.88

$84.96

$84.96

$84.96

$84.96

$84.96

$5.46

$6.55

$6.55

$7.93

$7.93

$3,404.68

$3,561.09

$3,699.89

$3,768.66

$3,783.23

Water

5

Taxes

Business License6 Stormwater Total

7

Assumptions 1 Usage of 24,000 kWh 2 Five day pick up and 8 cu yd. container 3 Usage of 38,700 gallons. Rock Hill uses a conservation water rate structure in which there is a lower charge per gal during non-peak months (November through April); reflects a typical bill during a non-peak month.

4 Charged on 38,700 gallons 5 Based on a business structure valued at $250,000 6 Based on $1,000,000 in sales and includes the ‘On-Time Payment Discount’ of 10% 7 Based on a developed building with 9,000 sq. ft. total area and a .6 weight factor.

8 Reassessment year (millage rate remained the same)

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

19

Budget Process Each year, the City of Rock Hill’s budget is developed in conjunction with the Mayor and City Council, the Office of Management, Finance, and all other city departments, with opportunities for citizen feedback.

Budget Process Developing the Budget Strategic planning sessions precede the official budget process. During these sessions, Council and staff discuss goals and priorities. Every three years these goals and priorities are evaluated and modified extensively with only minor adjustments occurring in the other years. Information from these sessions are then carried over to the budgeting process.

The budget process begins in January with a special, comprehensive work session in which the Budget Team (consisting of staff from the Office of Management and Finance Department) meets with all departments to discuss current and future trends, needs, and goals of the City. During this meeting, the City’s budget calendar is reviewed.

Departments are then responsible for preparing requests for programs, projects, and initiatives they would like to have considered for the upcoming budget year. The Strategic Plan serves as a guide by which each department prepares its expenditure requests. During this time, Finance prepares revenue estimates for both the current and upcoming two fiscal years.

Following these meetings, the Budget Team meets to prepare a draft budget for submission to City Council being sure that the priorities and goals discussed in the strategic planning sessions are appropriately reflected in the recommended budget. This draft budget is submitted to the Mayor and Council at formal budget workshops in April and May. Adopting the Budget The public has an opportunity to comment on the budget during the first and second reading of the ordinance to adopt the budget. A public hearing and two readings are required for formal adoption of the budget. State law requires the City Council to adopt a balanced budget, in which current revenues equal current expenditures, prior to June 30 of each year.

Amendments to the budget are allowable under South Carolina law and are made throughout the year as necessary.

The budget calendar is provided on the following page.

Two-Year Budgeting The City of Rock Hill uses a two-year budgeting process with the governing body approving the year one budget and being made aware of the projected budget for year two. The two-year budgeting process has several benefits; one of the most obvious benefits is demonstrating how financial decisions in one year affect the future.

Each department meets individually with the Budget Team to review program budgets and expenditure requests. During these meetings, the goals of each department are reviewed and expenditure requests are evaluated to determine their alignment with the strategic goals and the fiscal resources necessary to fund the requests.

20

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Budget Calendar FISCAL YEAR 2018 & FISCAL YEAR 2019 BUDGET DEVELOPMENT CALENDAR

January 10, 2017

Risk Management provides the Budget Office the City-wide FY2016, FY2017, and FY2019 projected costs for property, auto, liability, and workers compensation insurance

January 12, 2017

Budget kick-off meeting

January 13, 2017

Departments will be provided personnel information

January 23, 2017

Personnel confirmations & edits due

January 27, 2017

Departments will be provided expenditure baselines and, if applicable, revenue projections

February 13, 2017

Revenue and Expenditure data due. This includes: *January through June 2017 revenue projections (if applicable) *January through June 2017 expenditure projections *FY2018 & FY2019 revenue projections (if applicable) *FY2018 & FY2019 expenditure baseline reallocations

February 27, 2017

Issue papers due Requests for new positions due Requests for re-organizations due Requests for re-classifications due

March 9-31, 2017

Departmental budget reviews with Budget Team

April 1-26, 2017

Budget Office prepares draft budget for submission to City Council

April 27, 2017

First City Council Workshop

May 16, 2017

Second City Council Workshop

May 27, 2017

Advertise projected budget totals in newspaper

June 12, 2017

Public hearing and budget ordinance first reading at regular City Council meeting

June 26, 2017

Budget ordinance for second reading and adoption

July 1, 2017

New fiscal year begins

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

21

Budgetary Fund Structure The annual budget is comprised of many different types of funds. In creating the annual budget, the City appropriates funds for the General Fund, various Enterprise Funds, and a few Impact Fee Funds. Although there are other funds, like debt service or special revenue, they have specific revenues/expenditures that limit their uses. Therefore, the chart below only includes funds for which the City allocated its funds.

NON-ENTERPRISE FUNDS  The General Fund accounts for all financial resources that are not accounted for in other funds. This includes the   

common City functions such as Police, Fire, Finance, Public Works, etc.

The Tax Increment Surplus Fund accounts for special districts throughout the City. This Fiscal Year includes the following districts: Downtown, Textile Corridor, and Riverwalk.

State Accommodations Tax is a 2% tax on overnight lodging throughout the state of South Carolina. These monies can be spent on tourism-related expenses.

The Local Option Hospitality Tax is a City tax on lodging, food and beverage sales. The proceeds of this tax are used to fund tourism-related activities including local festivals and tourism facilities.

ENTERPRISE FUNDS  The Stormwater Utility Fund maintains and operates the City’s stormwater system.  The Electric Utility Fund maintains and operates the City’s electrical system.  The Water Utility Fund maintains and operates the City’s public water supply.  The Wastewater Utility Fund maintains and operates the City’s wastewater system.

IMPACT FEE FUNDS  Fire Impact Fees are collected on new development projects to pay for additional capital expenditures related to the Fire  

Master Plan.

Water Impact Fees are collected on new development projects to pay for additional water system capital expenditures.

Wastewater Impact Fees are collected on new development projects to pay for additional wastewater system capital expenditures.

Non-Enterprise Funds

Enterprise Funds

General Fund

Tax Increment Surplus

Stormwater

Water

State Accommodations

Local Option Hospitality Tax

Electric

Wastewater

Impact Fees

Fire

Water

Wastewater

22

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Financial Policies & Strategies Rock Hill budget and financial polices and strategies are governed by South Carolina state law, the City Charter, and generally accepted accounting principles (GAAP). These laws, strategies, principles, and policies describe ways to amend the budget after adoption, provide for budget controls and budget reporting, and identify appropriate methods for budgeting, accounting, and reporting.

Budget Amendments The City Manager is authorized to transfer any sum from one budget line item to another, or from one department or division to another department or division; provided, however, that no such transfer shall (1) be made from one fund to another fund, (2) conflict with any existing Bond Ordinance, or (3) conflict with any previously adopted policy of the City Council. Any change in the budget which would increase or decrease the total of all authorized expenditures must be approved by City Council.

Budget Controls & Reporting All excess material revenue collected by the City of Rock Hill that exceeds the projected budget revenue figure from a specific revenue category for each fiscal reporting period must be reported to City Council on a monthly basis. The expenditure of any and all excess revenue will be at Council’s discretion and cannot be utilized within the City budget without Council’s approval.

Enterprise Fund Transfers & Year Ending Condition In addition to building cash reserves, the City has also successfully met its goal of reducing the amount of transfers from the Enterprise Fund to the General Fund. By aggressively containing costs in General Fund departments and adhering to the established financial policies, the City has been able to reduce the General Fund’s dependency on the utilities fund transfer.

From a 1992 high of covering 42% of general fund expenditures, the Fiscal Year 2018 budgeted utilities transfer adheres to the policy and covers 12.75% ($7,847,775) of general fund expenditures.

28.0%

12.75%

8.40%

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

23

Financial Policies & Strategies Budgetary & Accounting Systems The accounting policies of the City of Rock Hill conform to generally accepted accounting principles (GAAP) as applicable to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted body for establishing governmental accounting and financial reporting principles. The following is a summary of the more significant policies applicable to revenues and expenditures.

Fund Accounting The accounts of the City are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain government functions or activities.

The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate.

Funds Governmental Funds are used to account for all or most of a government's general activities. Examples of these activities include public safety, parks, and sanitation services. These revenues come from property taxes, user fees, licenses, and permits.

Within the category of Governmental Funds, Rock Hill maintains General, Special Revenue, and Capital Projects Funds.

General Fund- The General Fund is the City's general operating fund and is used to account for all financial transactions except those required to be accounted for in another fund. Principle sources of revenue are property taxes, licenses and permits, intergovernmental revenues, and sanitation service charges. The expenditures in the General Fund are administration, budget, finance, economic development, fleet maintenance, public safety, general government, public works, housing authority, and parks and recreation.

Special Revenue Fund- The Special Revenue Fund is used to account for the proceeds from specific revenue sources (other than funding for major capital projects) that are legally restricted to expenditures for specified purposes. The City does not adopt a budget for the Special Revenue Fund because it primarily serves as a pass-through for federal grants.

Capital Projects Fund- The Capital Projects Fund accounts for financial resources, including bond proceeds and intergovernmental grants, used for the acquisition, construction, or improvement of major general government facilities. The City does not adopt a formal budget for the Capital Projects Fund, although particular projects are detailed within this budget in the "Bond Schedule" section.

Enterprise Funds are used to account for the business-type activities of a government. These are activities which are financed and operated in a manner where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods and services to the general public on a continuing basis be financed or recovered primarily through user charges. The funds include the Electric, Water, Wastewater, Stormwater, and Impact Fee funds.

Basis of Accounting The accounting and financial reporting applied to a fund are determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. Only current assets and current liabilities generally are included on the balance sheet.

Governmental fund revenues and expenditures are recognized on the modified accrual basis. Revenues are deemed susceptible to accrual and are recognized in the period when they become measurable and available. Expenditures are recognized when the fund liability is incurred, except principal and interest on general long-term debt which is recognized when due or when funds have been made available for payment.

The proprietary fund is accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and liabilities associated with the operation of these funds are included on the balance sheet. Unlike modified accrual basis, this basis includes depreciation, amortization, capital assets donated by private parties, and capital asset purchases are treated as expenses. Fund equity is segregated into contributed capital and retained earnings components. Proprietary fund-type operating statements present increases (revenues) and decreases (expenses) in net total assets.

24

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Financial Policies & Strategies Budgetary & Accounting Systems (continued) Basis of Budgeting In accordance with the General Statutes of the State of South Carolina, the City Council is required by state statute to adopt an annual balanced budget ordinance for the Combined General and Enterprise Operating Funds prior to July 1. Project ordinances are adopted for the Special Revenue and Capital Projects Funds when necessary. All budgets are prepared using the modified accrual basis of accounting. City Council has the authority to amend the budget ordinance. Appropriations lapse at the end of the budget year.

Appropriations are authorized in the annual budget ordinance generally at the department level. The legal level of budgetary control is at the fund level; however, in practice, the City maintains control at the department level. Administrative control is further maintained through more detailed line-item budgets. The City adopts this budget for the General Fund (Fund 500) and the Enterprise Funds (Fund 700 series).

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

25

26

Sources & Uses of Funds

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Sources & Uses of Funds

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

27

Revenue Summary Revenue Sources: General Fund

Fiscal Year 2018 The General Fund is budgeted at $61,560,125 for Fiscal Year 2018. This represents a 2.77% increase over the Fiscal Year 2017 adopted budget.

A 5% residential sanitation rate increase, which covers a 7.5% tipping fee increase from York County which has been absorbed since June 2015 and additional operating expenses, will be effective July 1, 2017.

The budget also projects increases in general property tax and business license revenue. A summary of the Fiscal Year 2018 General Fund revenue by source is provided in the chart on the right.

Fiscal Year 2019 The General Fund is budgeted at $62,809,424 for Fiscal Year 2019. This represents a 2.03% increase from the Fiscal Year 2018 adopted budget.

There are no general fund rate increases proposed for Fiscal Year 2019. The proposed Fiscal Year 2019 budget includes modest increases in property taxes and business licenses revenue. A summary of the Fiscal Year 2019 General Fund revenue by source is provided on the left.

Major General Fund Revenue Sources Major revenue sources for the General Fund, property taxes, charges for services, and licenses and permits are discussed on the following page.

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

28

Revenue Summary Major Revenue Sources: General General Property Taxes General property taxes account for 41% of General Fund revenue in the Fiscal Year 2018 budget and 41% in the Fiscal Year 2019 proposed budget. South Carolina law allows local governments to levy taxes on real and personal property valuations as assessed and equalized according to statutory guidelines (Code of Laws of South Carolina, Chapter 12, Article 3, Section 38 12-43-220). The tax rate remains at 93.5 mils in the adopted Fiscal Year 2018 and recommended Fiscal Year 2019 budgets.

*Year of Reassessment ^ Recommended

Additional History The local tax rate remained steady at 100 mils until 1998 when it was increased to 104 mils to meet the cost of Public Safety initiatives. An additional two mil tax increase was included in the Fiscal Year 2001 budget. Reassessment was completed by York County, and the rollback millage, with a two mill rate increase, brought the City’s total millage for Fiscal Year 2002 down to 98 mils. A four mill tax increase was included in the Fiscal Year 2005 budget to cover the cost of adding Firefighters to the new fire station. In Fiscal Year 2007, a three mill tax increase funded the addition of a Street Crimes Unit in the Police Department and construction of a new fire station. In Fiscal Year 2012, the tax rate was decreased to 93.5 mils to provide a revenue neutral budget as a result of reassessment.

Charges for Services

Operating Transfers

Charges for services, such as sanitation fees, cemetery fees, and recreation fees, significantly support many city government operations. In Fiscal Year 2018, charges for services represent approximately 21% of total General Fund revenue. Revenue projections are based on historical trend analysis of each revenue account and additional information provided by city departments.

The operating transfer is comprised of franchise fees, payments in lieu of taxes, and rates of return that are levied on the City’s publicly-owned utility as though it were privately held. The City has a financial policy, discussed on pages 266-267, that governs operating transfers. Operating transfers account for 12.8% of all General Fund revenue in fiscal year 2018 and 13.6% of all General Fund revenue in fiscal year 2019.

Licenses and Permits The Business License Fee, which is imposed on any business, occupation, or profession, in whole or in part, within the City limits, is the major source of revenue within this category and accounts for 17% of the General Fund revenues in Fiscal Year 2018 and 16% in Fiscal Year 2019. The fee consists of a base rate plus a percentage of gross income and varies according to the business classification. License and permit projections are based primarily on historical trend analysis. Beginning in Fiscal Year 2012, the City Council adopted an ordinance implementing a 10% reduction *Projected of business license fees for businesses who ^ Recommended paid their fees before the due date in an effort to promote job growth.

29

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Revenue Summary Revenue Sources: Utility Funds

Fiscal Year 2018 The Fiscal Year 2018 budget includes a combined water (base and volumetric) rate increase of 9.11% which will fund water capital improvements. In addition, a combined sewer (base and volumetric) rate increase of 2.99% is also included which will fund wastewater capital improvements and the expansion of the wastewater treatment plant. These increases are a continuation of the rate restructure that implements tiers based on consumption to reflect industry standards.

Fiscal Year 2019 A summary of the Fiscal Year 2019 Utility Fund revenue by source is provided on the left. A 1% electric rate increase is included in the recommended Fiscal Year 2019 budget to cover an anticipated PMPA wholesale power rate increase, along with a combined base and volumetric increase of 5.91% for water and a 3% base and volumetric wastewater rate increase to cover additional system capital improvements as outlined in our newly revised utility CIP.

Utility Fund Revenue Sources Utility fund revenue are discussed in greater detail on the following pages.

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

30

Revenue Summary Major Revenue Sources: Utility Electric Fund Electric sales represent the single largest source of revenue for the City of Rock Hill. The City monitors the Electric revenues closely on a week to week basis in order to project with great accuracy. Fiscal Years 2018 and 2019 estimates are based on historical trends of customer growth that is applied to rate schedules. Electric revenue account for approximately 71.2% of all Enterprise Fund revenues. There is no rate increase included in the FY 2018 approved budget. A 1% electric rate increase is projected for Fiscal Year 2019 to cover an anticipated *Projected ^ Budgeted PMPA wholesale power rate increase.

Wastewater Fund Wastewater fees represent the second largest source of utility revenues for the City. The budget estimates are based on historical trends of customer growth. These fees comprise approximately 14.6% of all Enterprise revenues. The 2018 budget includes a wastewater combined rate (base and volumetric) increase of 2.99% to fund wastewater system capital improvements and the expansion of the wastewater treatment plant. There is a 3% wastewater rate increase to the base and volume included in the Fiscal Year 2019 proposed budget to cover additional expansion of the plant.

Water Fund Water revenue estimates are based on historical trends of customer growth and customer water usage patterns. Water revenues account for approximately 11.3% of all Enterprise revenue. The FY 2018 budget includes a combined rate (base and volumetric) increase of 9.11% for the average inside, residential customer to cover system capital improvements. There is a combined base and volumetric increase of 5.91% for the average inside residential customer included in the Fiscal Year 2019 budget to cover system capital improvements.

Stormwater Fund Stormwater fees are imposed on residential and non-residential customers inside the City limits. There is no rate increase included in the FY 2018 approved budget or the proposed Fiscal Year 2019 budget.

Impact Fees In Fiscal Year 2004, the City began implementing fire, water and wastewater impact fees to ensure that growth pays for related infrastructure improvements. The Fire impact fees collected have covered over $5.7 million in eligible fire capital expenses. The water and wastewater impact fees collected to date have funded over $4.0 million in water improvements, mainly at the water treatment plant, and over $6.5 million in wastewater projects. In fall 2016, City Council was presented with an analysis which showed our aggregate existing fees among the lowest in the state and region. A new ordinance to phase in recommended increases to the rates over 2 fiscal years was adopted as a result.

31

*Projected ^ Budgeted

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Revenue Detail Revenue Detail The following pages provided more detailed information regarding revenue sources.

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

32

Revenue Detail

33

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Revenue Detail

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

34

Revenue Detail

35

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Revenue Detail

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

36

Revenue Detail

37

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Revenue Detail

Approved Fiscal Year 2018 Rate and Fee Changes

Residential Sanitation Rate

5% increase to cover a 7.5% increase from 2015 in the York County landfill tipping fee and an increase in operations.

Water Rate

9.11% combined base and volumetric increase to cover system capital improvements, resulting in a $1.70 increase for the average residential customer.

Wastewater Rate

2.99% base and volumetric increase to cover system capital improvements and the expansion of the wastewater treatment plant, resulting in a $1.20 increase for the average residential customer.

Projected Fiscal Year 2019 Rate and Fee Changes Electric Rate

1% increase to cover projected purchased power wholesale rate increase.

Water Rate

5.91% combined base and volumetric increase to cover system capital improvements.

Wastewater Rate

3% base and volumetric increase to cover system capital improvements and further expansion of the wastewater treatment plant.

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

38

Expenditure Summary Expenditure Observations General Fund General Fund departments continue to control costs to reduce the dependency on the Enterprise Fund transfer. The transfer for Fiscal Year 2018 covers approximately 12.75% of General Fund expenses, down from as much as 42% in 1990.

General Fund expenditures for Fiscal Year 2018 are budgeted at $61,560,125, a 2.77% increase when compared to Fiscal Year 2017. Personnel expenditures (salaries and salary additives) make up 68% of the total general fund expenditures ($43.6 million). Due to pressures placed on the budget by the mandatory increase in the employer and employee portion of the state retirement contribution and rising healthcare costs, the Fiscal Year 2018 budget reflects a modified pay-forperformance program with a 1% lump sum distribution based on performance instead of a base wage increase.

Sidewalk improvements on S. Cherry Road

Though the approved Fiscal Year 2018 budget includes $225,000 more for road maintenance and an additional $20,000 for sidewalk repairs, the overall budget reflects a 18.9% decrease in capital spending when compared to Fiscal Year 2017, which is another indication of the pressures being placed on the General Fund by rising personnel costs, including retirement and insurance. The Fiscal Year 2018 budget does include replacing vehicles according to our equipment replacement program totaling just under $3.9 million.

Enterprise Funds Despite the current challenges, the outlook for our region is still favorable, and the City continues to plan for the future.

The enterprise fund outlook includes $273 million in capital projects in the Electric, Water, Wastewater, and Stormwater Funds over the next ten years. Many of these projects will be funded from rate increases in the corresponding funds.

The others will be funded with revenue bonds and SRF loans. The Capital Improvement Plan section provides more information on these projects.

Enterprise Fund expenditures are budgeted at $163,399,571, a 4.9% increase compared to Fiscal Year 2017. Similar to the General Fund, personnel expenditures have greatly increased with healthcare costs and a mandatory increase in the state retirement contribution. The Fiscal Year 2018 approved budget includes a combined 9.11% water base and volumetric rate increase for the average inside residential customer and a 2.99% wastewater base and volumetric rate increase for the average inside residential customer, both which will fund system capital improvements and expansion of the water and wastewater treatment facilities. Electric rates remained stable in Fiscal Year 2018 as there was no Piedmont Municipal Power Agency (PMPA) rate increase.

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Intellirupter Pulse Switch (used for distribution, automated sectionalizing

39

Expenditure Summary

40

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Expenditure Summary

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

41

Expenditure Summary 2015 Actual

2016 Actual

2017 Budget

2017 Projected

2018 Approved

2019 Proposed

3,758,858 3,361,935 282,789 $7,403,582

3,332,081 3,426,854 274,440 $7,033,376

3,598,788 3,409,913 294,435 $7,303,136

3,556,882 3,663,331 285,552 $7,505,766

3,436,173 3,806,987 272,123 $7,515,284

3,537,258 3,825,692 256,511 $7,619,461

1,503,008 49,612 0 $1,552,620

1,586,204 39,112 0 $1,625,315

1,474,262 47,346 0 $1,521,608

1,731,512 37,055 0 $1,768,567

1,836,564 47,346 0 $1,883,910

1,849,293 47,346 0 $1,896,639

1,011,601 826,504 31,579 $1,869,684

1,039,963 679,372 0 $1,719,335

939,123 839,540 0 $1,778,663

1,038,338 675,528 0 $1,713,865

1,021,235 825,763 0 $1,846,998

1,096,235 825,763 0 $1,921,998

654,653 728,560 606,865 927,269 $2,917,347

707,720 666,921 1,424,879 1,044,678 $3,844,198

1,126,866 450,392 1,186,722 1,215,140 $3,979,119

1,004,920 1,506,058 1,271,853 1,195,569 $4,978,399

1,073,126 436,172 1,121,695 1,420,057 $4,051,050

1,078,460 427,798 984,466 1,631,516 $4,122,239

6,413,879 8,794,382 78,885,963 2,138,886 7,347,683 $103,580,793

7,212,811 8,531,254 82,245,408 2,871,833 7,866,678 $108,727,983

8,253,868 9,282,611 85,651,538 2,461,412 7,224,753 $112,874,182

8,674,428 11,219,326 84,341,412 1,177,697 7,797,918 $113,210,781

9,364,063 10,193,616 85,668,538 3,549,581 7,535,470 $116,311,267

9,244,430 10,450,074 86,525,223 4,806,298 8,381,846 $119,407,871

1,917,737 4,055,298 1,325,357 7,501,719 $14,800,111

2,117,506 3,736,657 2,456,900 8,181,592 $16,492,655

2,312,305 3,013,905 2,169,042 8,199,434 $15,694,686

2,473,261 4,134,487 413,751 9,209,555 $16,231,053

2,568,366 3,056,244 4,303,505 8,467,207 $18,395,321

2,985,402 3,073,470 4,438,751 10,964,256 $21,461,879

2,526,371 4,581,170 3,431,966 7,394,243 $17,933,750

2,546,004 5,041,394 2,957,673 6,934,078 $17,479,149

2,536,115 5,152,932 5,448,627 9,422,645 $22,560,318

2,550,117 5,225,043 3,174,668 8,722,757 $19,672,585

2,755,050 5,119,834 6,494,468 9,445,081 $23,814,433

2,722,396 5,151,976 7,832,855 11,193,630 $26,900,857

DEPARTMENTAL LEVEL SUMMARY Parks, Recreation, Tourism Personnel Operating Capital Total Housing Authority Personnel Operating Capital Total Economic & Urban Development Personnel Operating Capital Total Stormwater Personnel Operating Capital Non-operating* Total Electric Personnel Operating Purchased Power Capital Non-operating* Total Water Personnel Operating Capital Non-operating* Total Wastewater Personnel Operating Capital Non-operating* Total *Includes non-departmental and debt service.

Divisional level expenditure information is available on pages 90-158.

42

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Performance Budget Overview Performance Budgets FY2016—2018 Strategic Plan City of Rock Hill Strategic Plan

44

Quality Services

51

Quality Places

67

Quality Community

77

Performance Budget Overview Introduction to Performance Budgets

88

FY2017 Performance Results

88

Accountability & Transparency Efforts

89

Performance Budgets Office of Management

90

Judicial Services

95

Human Resources

98

Housing and Neighborhood Services

101

Police

105

Fire

109

Planning and Development

113

Public Works

118

General Services (Fund 500)

124

Finance

129

Parks, Recreation, and Tourism

135

Housing Authority

139

Economic and Urban Development

140

Stormwater Fund

142

Electric Fund

143

Water Fund

150

Wastewater Fund

154

Statement of Revenues, Expenses, and Changes in Fund Balance/Net Assets

159

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

43

44

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Performance Budgets: FY2016-2018 Strategic Plan Table of Contents Introduction

4

Quality Services

8

Public Safety

11

Public Works/Stormwater

14

Parks, Recreation, and Tourism

16

Utility System

18

Customer Service

20

Economic Development

22

Quality Places

24

Knowledge Park

27

Business Parks

29

Transportation

30

Key City Corridors

32

Quality Community

34

Neighborhoods

37

Civic Engagement

39

Partnerships

41

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

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Performance Budgets: FY2016-2018 Strategic Plan City Council and Leadership

Mayor Doug Echols Sandra Oborokumo

John A. Black III Ward 4

Ward 1

Kathy Pender Ward 2

Ann Williamson Ward 5

Kevin Sutton Ward 3

Jim Reno Ward 6

David B. Vehaun, City Manager Jimmy Bagley, Deputy City Manager Steven Gibson, Assistant City Manager

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Mike Blackmon

Bill Meyer

Phyllis Fauntleroy

Terrence Nealy

Anne Harty

John Taylor

Cindi Howard

Stephen Turner

Mike Jolly

Chris Watts

Mark Kettlewell

Jennifer Wilford

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Performance Budgets: FY2016-2018 Strategic Plan Introduction The strategic plan helps staff focus our efforts on providing quality services, developing quality places, and building a quality community. In 2012, the City adopted the phrase “always on” as a tagline to communicate Rock Hill’s constant progress and dedication to quality.

The strategic plan is an active document, referred to daily by staff at all levels of the organization, and at the heart of each day’s work. It serves as a roadmap to guide us from vision to reality. The phrase "always on" serves as a promise, reminding employees and the community that the bar is set high for quality, knowledge, and responsiveness.

From public safety to business parks to playgrounds, people you know serve Rock Hill 24/7/365.

Always on.

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Performance Budgets: FY2016-2018 Strategic Plan Development of the Plan The City of Rock Hill has utilized strategic planning as the primary method to align resources with predetermined initiatives. This FY16-18 Strategic Plan is the 5th version for the City.

The City’s strategic plan is updated every three years. A number of important steps are undertaken to ensure the plan fairly represents the concerns of our stakeholders. The first step in developing the new strategic plan is to administer a citizens’ survey. The citizen survey is conducted by an independent, third party in which residents are randomly selected to provide ratings regarding everything from service delivery to support for specific projects. The 2014 survey had 254 responses with a 23% response rate. The City also utilizes this third party to complete focus groups. These focus groups provide the City a greater understanding of resident perceptions and opinions. In 2014, there were three focus groups with a total of 18 residents.

Following this citizen input, the City sends a survey to our local business owners. This internally created and facilitated survey seeks to identify businesses’ opinions and perceptions. More than 100 businesses completed the survey with a 27% response rate. From this survey, the City gains insight into concerns that businesses have in relation to public services and regulations.

Additionally, we survey our employees to gauge their opinions about topics like customer service, safety, and communication.

Employee support of the City’s strategic plan is vital to the success of our future goals. The combined input of these key stakeholders provides the basis for our strategic plan.

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City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Performance Budgets: FY2016-2018 Strategic Plan Plan Structure The plan is structured from very general ideas at the highest level down to specific, measurable tasks. Five levels exist within the plan: Focus Area: The m ajor cor e valu es -

Objective: How to addr ess the goal

 Quality Services  Quality Places

 Quality Community Goal: W hat w e intend to accom plish

Task: Specific activities w e plan to work on Performance Metric: The par am eter by which we determine if we are successful or not

Focus Area

Goal

Objective

Task

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Performance Metric

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Performance Budgets: FY2016-2018 Strategic Plan Monitor our Progress www.cityofrockhill.com/transparency Since this Strategic Plan is a living document, the City is committed to providing continuing updates on our progress. Biannually, the City publishes mid-year and year-end performance reports that quantify our progress at meeting the tasks listed in this Strategic Plan. These performance reports provide qualitative and quantitative data to easily understand our successes and challenges. Along with these biannual reports, the City publishes a Performance Dashboard which provides graphical representation of progress.

Our Strategic Plan guides the formation of our budget, work programs, and capital plans.

With such far reaching implications, the City has made a commitment to transparency using a variety of mediums. A financial dashboard provides monthly revenue and expenditure data concerning budgeted and actual figures. This financial information is further described in the City’s monthly financial reports. Additionally, the City provides benchmarking comparisons to a number of other municipalities through the Ranking Rock Hill site. Covering everything from public safety comparisons to credit ratings, the City strives to be competitive in every service we provide.

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City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Performance Budgets: FY2016-2018 Strategic Plan

Providing Superior Service Delivery Quality Services focuses on the core governmental functions that the City of Rock Hill provides. These include initiatives like police, fire, public works, parks, water, and sewer services. However, we don’t just provide these basic services, we do so in a way that emphasizes efficiency, effectiveness, and affordability for our customers.

Efficient service delivery focuses on minimizing our resources and maximizing results. This is highlighted through tasks that focus on things like the median costs of all expenditures related to a certain service delivery. The City also works to reevaluate efficient services through completing regular audits of our programs every few years. Effective services are equally important. Every program or initiative that the City invests in must successfully achieve outcome related tasks. This is a key part of the City’s strategic plan.

Finally, there is a constant effort to make sure that our services are affordable for citizens and businesses. Every spring, the City collects information on 27 other communities and compares rates on everything from taxes and sanitation rates to utility rates. This information is shared with City Council during budget discussions and available on the City’s website under “Cost of Public Services” at: cityofrockhill.com/ transparency

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

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Performance Budgets: FY2016-2018 Strategic Plan Data Driven Approach Hard data shaped the development of specific goals, objectives, and tasks for the plan. One example of this is customer service. The Citizen Survey identified a decline in the overall customer satisfaction with both the “Services provided by Rock Hill” and the “Overall Impression of City Employees.”

Additionally, focus group participants were asked what “Quality Services” meant to them. That research highlighted certain key words/phrases like: Professional

Sensitive to Concerns

Hospitable

Attentive to Complaints

Responsive

Accountable

As a result of this feedback, our new Strategic Plan places greater emphasis on customer service. Additional tasks were added to address both internal and external facets of customer service. These include customer service refresher courses, completing work orders in a timely fashion, and decreasing the average call wait time for phone calls. Through meeting these specific targets, the City should see an increase in overall satisfaction with city services and employees in the next Citizen Survey.

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City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Performance Budgets: FY2016-2018 Strategic Plan Quality Services- Goals: 1. Provide high quality public safety and judicial services 2. Provide high quality public works and stormwater services 3. Provide high quality parks, recreation and tourism services 4. Provide high quality electric, water, and sewer services 5. Ensure exceptional customer service and proactive communication through accessible, responsive, and knowledgeable employees 6. Provide high quality economic development services

Award-winning Quality Services Every year, the City receives numerous awards and recognitions related to our Quality Services. A few of our recent awards include:

The Rock Hill Police Department received the CALEA Accreditation with Excellence Award (2013).

The Electric department received a 2-year designation that recognizes the City’s high proficiency in reliability, safety, work force development and system improvement (2013).

The Rock Hill Parks, Recreation, and Tourism Department was recognized for providing great sports venues and professionalism (2014).

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

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Performance Budgets: FY2016-2018 Strategic Plan

Goal: Provide high quality public safety and judicial services Reduce the crime rate and improve the community's perception of safety.

•Improve response times through zone expansions

At least one zone expansion over the next 3 years

•Respond to Priority One calls

70% within 5 minutes

•Reduce citywide property crime

2% per year (based on five year trend per 1,000 residents)

•Reduce citywide violent crime

1% per year (based on five year trend per 1,000 residents)

•Increase the overall percentage of residents who feel very or somewhat safe

More than 69%

•Increase the percentage of residents who feel very or somewhat safe in their neighborhood

More than 77%

•Increase the percentage of residents who feel very or somewhat safe downtown/commercial areas

More than 72%

Engage citizens and communicate current police initiatives and performance.

•Engage the public on a regular basis

Hold a public event at least once a quarter

•Inform the community about crime prevention and law enforcement activities by utilizing social media

At least 150 posts per year on Facebook or Twitter

•Attend community events and neighborhood meetings

At least 250 per year

Implement practices and strategies that contribute positively to the delivery of police services.

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•Complete the CALEA recertification

By 6/30/2016

•Evaluate progress of Police workforce diversity/minority recruitment

By 6/30 each year

•Advocate for changes at the state-run Police Academy

By 6/30 each year

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Performance Budgets: FY2016-2018 Strategic Plan

Goal: Provide high quality public safety and judicial services Enhance fire services and the community’s satisfaction with fire services.

•Respond to top priority fire suppression calls

90% within 5 minutes

•Respond to top priority medical emergency calls

90% within 5 minutes

•Percent of fires contained to the room of origin

90%

•Remain below the mean residential fire incident rate

Below NC Local Government Performance Measurement Project average of 3.62 incidents per 1,000 residents 100% inspected annually

•Complete inspections of commercial properties •Maintain or increase the percentage of residents who rate fire service as excellent or good

Equal to or more than 86%

Engage citizens and increase fire safety awareness in the community.

•Provide fire safety education programs to elementary school students

Educate over 7,000 students

•Improve citizen outreach by Fire personnel

By 10% annually

•Attend community events and neighborhood meetings

10 events per year

Implement practices and strategies that contribute positively to the delivery of fire services.

•Maintain all certifications required by law

100%

•Increase the number of personnel with paramedic certifications

2 per year

•Maintain all required certifications for all special operations

100%

•Evaluate progress of Fire workforce diversity/minority recruitment

By 6/30 each year

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

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Performance Budgets: FY2016-2018 Strategic Plan

Goal: Provide high quality public safety and judicial services Efficiently manage the Solicitor’s Office operations.

•Dispose of jury trials efficiently

75% within 90 days

Efficiently manage Municipal Court’s operations.

•Number of cases disposed of, and under conditional disposition, exceed the number of cases filed

Disposed/condition exceeds cases filed

•Increase the gross collection rate for fines imposed

By 2% annually

•Decrease outstanding court fines from previous years

By 2% annually

Spotlight: Police and Fire Response Times Over the past few years, the City has focused efforts to ensure quality police and fire protection for our citizens. One of the focal points is on response times– measured by how quickly the City receives a call for help and the Police or Fire Department arrives. The Rock Hill Police Department specifically explored options to improve response times for the

most pressing calls. They discovered that one of the most effective tools was to increase the number of patrol zones.

Since FY2010, the Police Department has gone from six zones to ten zones. This has resulted in a 9% increase in response rates for high priority calls. The Fire Department has also greatly emphasized their response to high priority suppression and medical calls. Over 90% of these high priority fire calls are responded to within 5 minutes. The City is committed to providing efficient and effective service delivery, especially during times of need.

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City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Performance Budgets: FY2016-2018 Strategic Plan

Goal: Provide high quality public works and stormwater services Evaluate current services/programs and communicate program features to customers.

•Increase YardCart program participation level

By 5% per year

•Complete an audit of residential waste

By 6/30/2017

•Complete an audit of commercial waste

By 6/30/2016

•Explore opportunities to increase the efficiency of the commercial waste program

By 12/31/2017

•Evaluate recycling rollcart opportunities

By 6/30/2018

•Evaluate opportunities to better explain the City's curbside collection program to customers.

By 6/30/2016

•Hold a national recycling night out

At least one per year

Evaluate the efficiency of service delivery and explore opportunities for maximizing economies of scale.

•Remain below median cost for operating and Remain 25% below NC Local maintenance expenditures for refuse collections per ton Government Performance of refuse collected Measurement Project average of $80 per ton •Explore opportunities to appeal to additional By 6/30/2016 commercial customers

Evaluate sidewalk infrastructure and address concerns in a methodical manner.

•Conduct an inventory and conditions assessment of all City sidewalks

By 6/30/2017

•Increase the repairing/replacing of damaged sidewalk

Increase funding by $20,000 per year

•Upgrade intersection ramps to comply with ADA requirements

40 ramps per year

•Update signage on all City owned streets to include the City logo

By 6/30/2018

•Increase the percentage of residents who rate sidewalk maintenance as excellent/good

More than 42%

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

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Performance Budgets: FY2016-2018 Strategic Plan

Goal: Provide high quality public works and stormwater services Implement the stormwater master plan.

•Complete the first phase of the Stormwater CIP

By 6/30/2016

•Make progress on the Operational Stormwater projects •Meet all requirements for the MS-4 permit

At least $300,000 annually

•Hold stormwater community meetings to inform the public of stormwater improvements and stormwater ponds

At least 4 meetings per year

Every 6 months

•Increase the percentage of residents who rate storm More than 60% drainage as excellent/good

Spotlight: Stormwater Improvements In 1996, a Stormwater Division was created to improve stormwater systems in the City.

Since then, there have been a number of studies commissioned to evaluate existing issues such as road flooding, sinkholes, channel erosion, etc. Recently, the Federal Emergency Management Agency (FEMA) along with the City’s Stormwater Division completed studies to identify potential areas of flooding. Through the course of these studies, a few hundred projects have been identified. The estimated cost for these projects is projected to exceed $200 million dollars. Therefore, a set of criteria was developed by the City’s Stormwater Advisory Board that prioritizes the projects as they impact things like danger to life, health hazards, infrastructure damage, major erosion, etc. As the City makes progress on these projects, there is a need to effectively communicate information to the citizens impacted by the flooding issues. Community meetings are scheduled on a quarterly basis to provide specific information to constituents directly impacted by these high priority projects.

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City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Performance Budgets: FY2016-2018 Strategic Plan Goal: Provide high quality parks, recreation and tourism services Evaluate existing and future infrastructure, resources, and operations to determine the most appropriate and efficient operational uses of facilities to meet the community’s park and recreation needs.

•Provide cross-training to personnel for maintenance, operational, and programming duties

25% of the workforce annually

•Provide web-based facility rental to customers

By 1/1/2018

•Provide recommendations for the programming of 5 facilities for multiple uses

By 7/1 Annually

•Evaluate opportunities for additional Sports Tourism By 1/1/2016 related facilities •Develop and construct restroom facilities along the By 6/30/2017 Catawba Riverfront Trail •Continue to work with City Council appointed Hold biannual meetings advisory commissions, advisory committees, Rock Hill School District 3, and other citizen groups to identify the next potential major regional park site •Increase the percentage of residents who rate city parks as excellent/good

More than 73%

•Increase the percentage of residents who rate recreation programs as excellent/good

More than 57%

•Increase the percentage of residents who rate recreation centers as excellent/good

More than 61%

The Parks, Recreation and Tourism Department operate a number of facilities with both a primary use and other secondary uses. One great example is Manchester Meadows, primarily a soccer complex. On an annual basis, the City hosts a number of other sports events at Manchester including lacrosse, quidditch, field hockey, and events during the ComeSee-Me Festival.

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

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Performance Budgets: FY2016-2018 Strategic Plan

Goal: Provide high quality parks, recreation, and tourism services Evaluate and communicate the economic impact of sports tourism.

•Meet with the Rock Hill Sports Marketing Alliance regularly

Hold meetings quarterly

•Work with the Sports Commission members to accomplish major sports events in Rock Hill

Hold meetings quarterly

•Work with local, state, and regional organizations to host quality sports tourism events

Hold at least 15 local/state/regional events per year

•Work with national and international organizations to host quality sports tourism events

Host at least 2 national or international events per year

•Develop and brand City initiated competitive events

By 1/1/2018

•Increase sports tourism’s financial impact annually (calendar year)

By at least $1 million per year

•Quantify the number of hotel nights created as a result # of hotel nights of sports tourism activities •Host major tourism events at Glencairn Garden

Host at least 4 major events

Spotlight: Economic Impact of Sports Tourism Every year, the City surveys attendees at special events to estimate the average amount of money people spend while visiting Rock Hill. This provides a direct economic impact. This information allows us to measure the financial impact of these events. As the City hosts more state, regional, national, and international events, the City expects to see an increase in economic impact. We plan to hold a certain number of sports events each year to reap the benefit of direct economic impact.

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City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Performance Budgets: FY2016-2018 Strategic Plan

Goal: Provide high quality electric, water, and sewer services Evaluate the efficiency and effectiveness of electric operations in order to address the system's maintenance and expansion needs.

•Continue trim cycle per substation/circuit

25% of primary power lines per year

•Decrease our system's average interruption duration index (SAIDI)

Less than 162.08 minutes

•Decrease our customer average interruption duration index (CAIDI)

Less than 85.26 minutes

•Improve or maintain our average system availability index (ASAI)

Maintain at least 99.95%

•Identify the three worst power outage circuits/areas inside the City limits and develop plans to improve reliability through operational and capital Improvements

By 6/30/2016

•Complete electric capital projects according to the Capital Improvement Plan (CIP) schedule

90% completed during scheduled fiscal Year

•Complete the conversion of Deliveries 2 and 3 to the City

By 6/30/2017

•Complete the Riverwalk electric substation

By 6/30/2016

•Implement recommendations of the electric rate study

By 6/30/2016

•Examine how rate structure/electrical system could be leveraged to attract new customers and industries

By 6/30/2016

The City is working on a rate study that will examine our rates compared to operating costs. The results of the rate study are expected by the fall of 2015 and recommendations from City staff are expected by the end of fiscal year 2016.

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

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Performance Budgets: FY2016-2018 Strategic Plan

Goal: Provide high quality electric, water, and sewer services Evaluate the efficiency and effectiveness of water operations in order to address the system's maintenance and expansion needs.

•Comply with EPA and DHEC drinking water standards

100% compliance

•Reduce non-metered loss of water

By 1% annually

•Implement recommendations of the water rate study

By 6/30/2016

•Investigate opportunities to expand wholesale opportunities throughout the region

By 7/1 annually

•Complete water capital projects according to the Capital Improvement Plan (CIP) schedule

90% completed during scheduled fiscal year

•Determine next steps for the expansion of the water plant

By 12/31/2015

Evaluate the efficiency and effectiveness of wastewater operations in order to address the system's maintenance and expansion needs.

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•Comply with EPA and DHEC wastewater treatment standards

100% compliance

•Complete the Process Optimization Study

By 3/1/2016

•Implement recommendations of the wastewater rate study

By 6/30/2016

•Investigate opportunities to expand wholesale opportunities throughout the region

By 7/1 annually

•Complete wastewater capital projects according to the Capital Improvement Plan (CIP) schedule

90% completed during scheduled fiscal year

•Evaluate opportunities for regional expansion of wastewater operations

By 12/31/2015

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Performance Budgets: FY2016-2018 Strategic Plan

Goal: Ensure exceptional customer service and proactive communication through accessible, responsive, and knowledgeable employees Evaluate and implement features/practices that will enhance customer service accessibility.

•Improve the Call Center’s average call wait time

Less than 90 seconds

•Average talk time per customer

Less than 2 min 30 sec

•Ensure Call Center efficiency by monitoring the average calls per day per full time agent

At least 100 calls per day per full-time Agent

•Expand and encourage the use of online service requests module via City website for customers and employees

10% increase annually

•Increase the usage of customized electronic notifications via email, text, and phone based on customer selection

By 10% Annually

•Market the use of the smart phone application for customers to submit service requests

Increase the number of app downloads

•Complete work orders for Public Works related issues in a timely fashion

90% within 36 hours

•Complete work orders for Utility related issues in a timely fashion

70% within 7 days

•Review social media uses for best point of contact with our customers

Annually by 6/30

Stay up-to-date on what’s happening in the City of Rock Hill through our social media efforts on: Like us on Facebook.

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Follow us on Twitter.

Watch us on YouTube.

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Performance Budgets: FY2016-2018 Strategic Plan

Goal: Ensure exceptional customer service and proactive communication through accessible, responsive, and knowledgeable employees Continue to cultivate an organizational culture that recognizes the importance of customer service.

•Provide customer service training to all new employees

100%

•Provide customer service training refresher in the Disney Model to all employees

By 6/30/2016

•Provide customer service training to all call center/front line workers

100% over three years

•Solicit email addresses from new customers in order to gauge their customer service experience

100% of new customers

Spotlight: Customer Service A top priority for the City is to provide quality customer service for all Rock Hill Citizens. Human Resources has developed three in-house customer service programs: IDEAL Customer Service, Customer Service Agent program, and a Customer Service Refresher. The IDEAL Customer Service is an eight-hour course for all new employees. Within the first year of employment, all employees must attend this class to understand the priority placed on customer service.

The Customer Service Agent program is a new, four-hour program that focuses on training for front-line customer service representatives. All front-line employees complete this training at least once every three years.

Finally, the Customer Service Refresher is a new program based on the Disney model of customer service.

Especially for employees who have not had recent training, the refresher course will remind and invigorate customer service efforts. All employees will complete this refresher by the end of fiscal year 2016.

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City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Performance Budgets: FY2016-2018 Strategic Plan

Goal: Provide high quality economic development services Promote and market Rock Hill as a business-friendly environment that supports business growth and recruitment.

•Solicit business investments in the City

$25 million in investment annually

•Support the creation of new full-time jobs in the City

At least 200 new full-time jobs by 6/30/2018

•Host meetings with developers and small business 2 meetings per year owners to solicit advice on how the City can support their efforts •Use the Key Accounts Manager to re-recruit local businesses

Visit 50 businesses per year

•Complete the Strategic Economic Development Marketing Plan

By 12/31/2015

•Maintain or increase the number of small business owners who use the Open for Business program

Maintain or increase

•Develop parameters for downtown business incentives

By 12/31/2016

Spotlight: Open for Business The City developed the Open for Business program in fiscal year 2012 in an effort to provide a one-stop shop for business owners looking to open, relocate, or expand their business. Created and operated by the Planning and Development Department, an initial appointment is set-up with the customer to determine what assistance is needed. A feasibility study is then completed with a Building Official, Fire Department representative, and a Zoning Coordinator to determine site compliance and estimate the costs necessary to make the site compliant. The City also provides business owners with a checklist of next steps that include information on a variety of topics including business license, utility service, and fire inspections.

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

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Performance Budgets: FY2016-2018 Strategic Plan

Goal: Provide high quality economic development services Support RHEDC as a key economic development leadership and investment organization.

•Provide staff support to the RHEDC board and all RHEDC Committees

40 meetings per year

•Present a sustainability proposal for the Knowledge Park By 6/30/2016 Innovation Center to support talent development/human capital •Complete a redesign of the www.RockHillUSA.com website that will provide prospects a fully interactive experience in evaluating locations

By 12/31/2016

•Complete design projects through the Rock Hill Designs Initiative

One project completed by 6/30/2016

Evaluate opportunities to improve Rock Hill’s position in the state and the Charlotte region.

•Encourage local leaders to seek positions with statewide organizations

Fill at least 2 statewide positions per year

•Build relationships with state and regional economic development allies

Meet quarterly with state or regional Allies

•Form alliances with other municipalities in York County to bring a team effort to issues with the state of South Carolina as they arise

By 6/30 Annually

The Rock Hill Designs Initiative began work on it’s first project: the Woolworth Walkway. The conceptual plan is the result of work from three local artists, student workshops, and a community event.

Construction should be complete by June 2016.

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City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Performance Budgets: FY2016-2018 Strategic Plan

Developing Exceptional Places Quality Places focuses on developing and sustaining exceptional locations throughout our City. Places to work, live, and play add to the appeal of Rock Hill. This includes everything from business parks to sports tourism facilities. In the development of City-led projects, input is solicited from civic, business, political, and cultural leaders.

Some of the projects are quite transformative in nature, like Riverwalk or Knowledge Park. Other projects are targeted to focus on specific areas throughout the City, like the Arcade Mill re-development. Whenever possible, the City looks for public-private partnerships to help facilitate quality places throughout our City.

In the heart of Downtown Rock Hill, the newly completed Fountain Park highlights the importance of public/private partnership in developing Quality Places.

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

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Performance Budgets: FY2016-2018 Strategic Plan Data Driven Approach The development of the specific goals, objectives, and tasks in Quality Places utilized valuable information from our data sources. The 2014 Citizen Survey included custom questions that gauged citizen support for redevelopment and revitalization.

86%

87%

90%

92%

Additionally, focus group participants were asked what “Quality Places” meant to them.

From that exercise, certain key words/phrases were highlighted: Well-maintained

Hometown feel

Clean

Southern hospitality

Abundant retail and business

First-class

We incorporated this feedback by adding a number of tasks to our plan. By June 2016, the City hopes to start a downtown business association that will have regular meetings to address issues and discuss how the City can better support business owners.

Additionally, the City is looking to move forward on recently studied areas like the Cherry Road Revitalization Study, the West Main/West Black Revitalization Study, and the College Town Action Bike/Pedestrian Plan. These studies have recommendations that will redevelop and enhance the appearance of these areas while encouraging new business growth that embody the definition of a Quality Place.

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City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Performance Budgets: FY2016-2018 Strategic Plan Quality Places- Goals: 7. Create a vibrant Knowledge Park Area 8. Contribute to the success of the community’s business parks 9. Provide for a coordinated transportation system that supports the City’s growth goals 10. Support the study and development of key city corridors

Award-winning Quality Places Every year, the City receives numerous awards and recognitions for our Quality Places.

Recent accolades include:

In October 2014, the Rock Hill Parks, Recreation and Tourism Department received the Parks Excellence Award for the Rock Hill Outdoor Center and its commitment and contributions to parks and recreation in South Carolina.

The Come-See-Me Festival was named Event of the Year (2014).

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

The Novant Health BMX Supercross Track has been chosen as the site of the 2017 BMX World Championships by Union Cyclist Internationale (UCI). This event is expected to bring 3,000 amateur participants and an estimated 300 professional athletes from over 45 countries.

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Performance Budgets: FY2016-2018 Strategic Plan

Goal: Create a vibrant Knowledge Park area Promote Knowledge Park and surrounding areas as a vibrant mixed- use area in Rock Hill through effective marketing, meeting with the business community, and implementing the Knowledge Park Strategy.

•Increase the number of new employees in Knowledge Park

At least 100 new jobs annually

•Attract and support residential construction in Old Town

At least 100 new residential units by 6/30/2018

•Support the Rock Hill School District in its interest in relocating administrative offices to the Knowledge Park area

Follow-up with RHSD at least twice per year

•Organize a downtown business association

By 6/30/2016

•Organize meetings with the Knowledge Park Leadership Group and facilitate economic development initiatives within group to support Knowledge Park and other key business initiatives

Hold at least three meetings per year

•Support new development around Fountain Park, including a proposed hotel, civic/performance center and mixed use development

Report updates semi-annually

•Engage and inform stakeholders in the evolution of the Knowledge Park plan and its impact on Rock Hill

Hold at least one meeting per year

•Complete an update to the Streetcar Feasibility and Economic Impact Study and seek decisions on alternative transportation modes

By 6/30/2016

•Implement Phase II of the College Town Area Bike/Pedestrian Plan

By 6/30/2018

Knowledge Park is the dynamic center of Rock Hill’s new economy. Technologically advanced, yet rooted in the city’s rich history, Knowledge Park is supported by a diverse community of learners and offers an appealing urban lifestyle built upon a model of economic and environmental sustainability.

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City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Performance Budgets: FY2016-2018 Strategic Plan

Goal: Create a vibrant Knowledge Park area Organize, manage, market, and support Old Town events.

•Develop programming opportunities at Fountain Park

At least 4 events per year

•Manage and support Old Town Events

At least 20 events per year

•Increase OnlyinOldtown.com website traffic

By 10% Annually

Continue development of the Bleachery site.

•Complete all cleanup related projects at the Bleachery site

By 12/31/2016

•Complete the master developer agreement

By 9/1/2015

•Complete development of public infrastructure on the Bleachery site

By 6/30/2017

•Market City owned properties adjacent to the Bleachery for development

Report updates semi-annually

Spotlight: The Bleachery Bridging 24 acres between Downtown Rock Hill and Winthrop University, the Bleachery, formerly known as the Rock Hill Printing and Finishing Company, is destined for a revitalized future.

Following the close of the company, the property became a danger to public health and safety. Using EPA and DHEC loans/grants, the City plans to facilitate clean-up of the site by 2016. Next, the

City will work to complete all required public infrastructure needs (including electric, water, sewer, and stormwater).

The City is working with a master developer to market zones of the property for development.

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

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Performance Budgets: FY2016-2018 Strategic Plan

Goal: Contribute to the success of the Develop publicly and privately owned business parks.

•Encourage the development of spec buildings

Build at least one spec building by 6/30/2018

•Continue to collaborate with public and private partners in the development of business parks

Assist in the development of at least one new business park by 6/30/2018

The City and the Rock Hill Economic Development Corporation (RHEDC) have worked together to create a speculative building at the Waterford Business Park. In the upcoming three years, the City plans to again partner with RHEDC to build another spec building.

The City is home to a number of high-amenity business and industrial parks which include Riverwalk, TechPark, SouthCross, Waterford, Aspen, Antrim, Airport, and Southway. Over the next three years, the City plans to partner with private partners to develop a new business park.

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City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Performance Budgets: FY2016-2018 Strategic Plan

Goal: Provide for a coordinated transportation system that supports the City’s growth goals Develop and implement a financial strategy to repair and maintain the City’s roads.

•Clearly identify all City streets within city limits

By 1/1/2016

•Increase resurfacing/street paving funding in the City’s General Fund

Increase by $250,000 annually

•Pilot pavement preservation methods and determine the best way in which to extend life of roads within the City

By 6/30/2016

•Conduct an inventory and conditions assessment of City streets

By 6/30 annually

•Create a webpage that allows citizens to check road ratings and learn about various road paving solutions

By 12/31/2016

Provide alternative transportation modes within our community.

•Update the community bike/pedestrian plan

By 6/30/2017

•Analyze existing transit programs to determine the feasibility of potential transit expansion

By 6/30/2016

•Increase participation/ridership level in transit programs

By 4% Annually

•Provide updates on the development of the transit system to stakeholders

Report updates quarterly

Collaborate through RFATS and other regional efforts on land use and transportation planning.

•Explore additional corridor and outlet options to relieve By 12/31/2016 congestion in the Celanese Corridor as a part of the RFATS Long Range Transportation Plan •Prioritize and implement the other RFATS Long Range Transportation Plan projects

By 6/30 Annually

•Continue to propose congested intersections for improvement through CMAQ

By 6/30 Annually

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Performance Budgets: FY2016-2018 Strategic Plan

Goal: Provide for a coordinated transportation system that supports the City’s growth goals Promote solutions to major traffic issues.

•Evaluate major corridors annually and make adjustments to traffic signal synchronization

By 6/30 Annually

•Develop a recommended list of potential projects for the 2017 Pennies for Progress program

By 3/1/2016

Spotlight: City Roads There are approximately 425 miles of road within the City limits. The City of Rock Hill owns and maintains about 200 miles and the South Carolina Department of Transportation maintains the other 225 miles. To simplify questions related to ownership, the City created a Street Ownership Map that clearly shows who owns which roads. In the next few years, the City will accomplish tasks that involve annual condition assessments of City streets and the development of a webpage that addresses road ratings and paving solutions. Also, we are committed to identifying all City streets with the City’s logo by January 2016. This should assist citizens in knowing who is responsible for repairs.

The largest hurdle to city road repair and maintenance is funding.

City streets receive funding through York County or the City’s general fund. The City allocates funds for road paving every year during the budget process. The Strategic Plan involves tasks that will increase the general fund paving budget by at least $250,000 per year. The City is also dedicated to exploring pavement preservation programs that will help extend the life of existing roads. By FY2017, the City hopes to begin allocating resources to focus on new pavement preservation programs.

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City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Performance Budgets: FY2016-2018 Strategic Plan

Goal: Support the study and development of key city corridors Complete the Comprehensive Plan update and institute recommendations that uphold the plan.

•Implement recommendations of the Comprehensive Plan growth policies

By 6/30 Annually

•Revisit the City's annexation policy

By 6/30/2017

Support City corridors.

•Select and study the next key corridor

By 6/30/2017

•Support private development through the implementation of the Cherry Rd. Revitalization Strategy

See $1 million per year in new investment

Provide support for major redevelopment projects.

•Support private development along Saluda Street and at South Gate

See $1 million per year in new investment

•Support private development in the Galleria/Manchester area

See $1 million per year in new investment

•Complete the Oakland Avenue streetscape project

By 6/30/2016

•Complete the Quiet Zone

By 12/31/2017

•Begin implementation of the recommendations of the West Main/West Black Revitalization Study

By 6/30/2017

The Railroad Sidetrack Extension project is a three-phase project consisting of track-related changes to reduce blockage in Downtown Rock Hill. The first phase will realign Quantz St. and Poe St. and create a new grade crossing. The sidetrack phase will construct a new sidetrack from Community St. to Quantz St. Phase three realigns the intersections of Community St., Church St., and Curtis St., and widens Poplar St. City of Rock Hill, South Carolina—Fiscal Year 2017/2018

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Performance Budgets: FY2016-2018 Strategic Plan Spotlight: City Projects The City is constantly working on capital projects that will enhance our community’s livability.

From utility maintenance on water/sewer lines to basic infrastructure needs like sidewalks, the City is committed to facilitating Quality Places. On a bimonthly basis, key project managers from throughout the City meet to discuss cross-departmental issues, funding, and logistical realities. From this, the Transportation and Civil Projects Report is developed and updated. The City posts this report on the City’s website and the City’s RH19 TV channel. Additionally, an interactive map on the City’s website provides detailed information as to the location, budget, and plans for these projects. This Civil Projects Map is updated on a quarterly basis.

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City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Performance Budgets: FY2016-2018 Strategic Plan

Fostering a Premier Community Quality Community is about enhancing the overall quality of life for Rock Hill citizens through partnerships and collaboration. In our neighborhoods, the City seeks to support neighborhood associations with community building and provides assistance to homeowners in need. The City is intent on engaging citizens and building public trust.

Over the next three years, we are committed to increasing our outreach through focus groups, increased publications, and social media efforts. Finally, facilitating cultural, recreational, and educational opportunities is very important to the City. This includes offering opportunities for special populations, promoting an active lifestyle, and cosponsoring cultural and artistic programs.

Starting clockwise: The Briarcliff neighborhood; Community meetings during the Comprehensive Plan development; School children involved in #1 Question.

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Performance Budgets: FY2016-2018 Strategic Plan Data Driven Approach The development of specific Quality Community goals, objectives, and tasks was based on quantifiable data source material. The Citizen Survey provided great information about how our citizens feel about the general community.

Focus group participants provided key words/phrases about what “Quality Community” meant to them: Neighborliness

Community Gatherings

Well-kept

Good place to raise a family

Appearance

Respect

The City’s emphasis on quality of life is evident through Quality Community. With our neighborhoods, there is a continued focus on code enforcement and helping keep citizens in their homes. In light of survey data that only 16% of citizens have contacted a Rock Hill elected official, a number of tasks have been added to hold focus groups on city projects. Also, the City is emphasizing communication through a number of printed publications, social media, and ad strategies. Cultivating partnerships and facilitating community gatherings will also be a focus over the next three years to get citizens involved in local events such as bike fairs, artistic/cultural programs, and exercise classes.

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City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Performance Budgets: FY2016-2018 Strategic Plan Quality Community- Goals: 11. Strengthen neighborhoods through partnerships that promote community, identity, and livability 12. Offer a variety of opportunities to engage citizens, build public trust, and encourage civic pride

13. Cultivate partnerships that encourage a wide range of cultural, recreational, and educational opportunities for all ages

Award-winning Quality Community On an annual basis, the City is recognized as a Quality Community. A few of the recent recognitions include:

The City received a 2014 Achievement Award from the Municipal Association of South Carolina in the Public Service Category for its partnership with the Rock Hill School District Three to support the Challenged Based Learning Program.

Rock Hill was designated a Playful City USA Community by KaBOOM (2014).

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Rock Hill’s Downtown was recognized as the state’s first cultural district in 2015. This designation will help the City attract visitors and residents to downtown.

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Performance Budgets: FY2016-2018 Strategic Plan

Goal: Strengthen neighborhoods through partnerships that promote community, identity, Evaluate and implement practices that contribute to the maintenance and vibrancy of neighborhoods.

•Track and prevent foreclosures in the community through the City’s foreclosure counseling and S.C. Homeownership and Employment Lending Program’s anti-foreclosure program

Prevent at least 50% of homes from actually going into foreclosure

•Refer qualifying homeowners to the South Carolina Homeownership and Employment Lending Program’s anti‐foreclosure program

At least 35 homeowners

•Code Enforcement — average number of calendar days from case initiation to voluntary compliance

At or below 60 days

•Code Enforcement — rate of voluntary compliance

At or below the ICMA median of 66%

•Demolish all eligible substandard structures

At least 30 demolitions per year

•Reduce major exterior structure code violations through By 10% annually a proactive windshield survey inspection •Provide owner occupied rehabilitations within Old Town neighborhoods

At least 25 rehabs

•Paint homes through Rolling in Rock Hill

Paint at least 20 homes annually

Rolling in Rock Hill is a community project that paints homes for eligible homeowners free of charge. Since its inception in 1995, over 300 homes in our community have been painted and more than 1,500 people have volunteered their time.

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City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Performance Budgets: FY2016-2018 Strategic Plan

Goal: Strengthen neighborhoods through partnerships that promote community, identity, and livability Examine and support affordable housing opportunities within the community.

•Rehabilitate and construct affordable housing in the community

Rehab 20 homes and construct 3 homes Annually

•Complete infrastructure improvements in the Arcade neighborhood

By 12/31/2015

•Construct/redevelop homes in the Hagins-Fewell neighborhood

6 homes by 6/30/2018

•Explore opportunities to support residential neighborhoods near commercial zones

By 6/30/2016

Engage neighborhoods to promote community building.

•Increase the number of neighborhood associations and/or reengage inactive neighborhood associations

Add 2 new associations/reengage inactive associations annually

•Encourage neighborhood participation in National Night Out

Register 25 neighborhoods annually

•Continue the Weed & Seed initiative and meet with neighborhoods regularly

Attend at least 9 meetings annually for each of the 7 Weed and Seed neighborhoods

•Provide meeting space for monthly neighborhood associations and provide support as needed

Attend 175 neighborhood association meetings annually

The City assists in the rehabilitation and construction of affordable housing in the community with the help of Neighborhood Stabilization Program (NSP) grants and the Housing Development Corporation of Rock Hill (HDCRH).

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Performance Budgets: FY2016-2018 Strategic Plan

Goal: Offer a variety of opportunities to engage citizens, build public trust, and encourage civic pride Enhance current communication methods to effectively provide a variety of information to the City’s various audiences.

•Use the utility connection process as an opportunity to get email addresses to push information to our customers who receive City services

By 9/1/2015

•Continue to host Operations Center Open House

Once every three years

•Create an ongoing series focusing on City messages that is marketed through local media

One video message per month

•Utilize printed publications to communicate city information to new residents

Create an information booklet by 12/31/2016

•Utilize printed publications to communicate city information to visitors

Create a brochure by 6/30/2016

•Utilize electronic and printed publications to communicate City information to existing customers

Distribute a quarterly newsletter

The City distributes a quarterly newsletter that highlights current events, important developments, and contact information for key city leaders. This newsletter is available on the City’s website and included as an insert in our utility bills.

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City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Performance Budgets: FY2016-2018 Strategic Plan Goal: Offer a variety of opportunities to engage citizens, build public trust, and encourage civic pride Promote and encourage sense of place and civic pride.

•Engage residents who commute to North Carolina •Increase the number of people who engage in the City's social media efforts

Institute one new ad strategy per year By 10% annually (Facebook and Twitter)

•Decrease the average vacancy age for boards and commissions' openings

Under 60 days

•Support the Inside Rock Hill Alumni Advisory Board

Attend 100% of meetings

Enhance public trust by sharing information in an accessible, convenient manner.

•Identify alternate locations to hold public forum groups

Hold at least three meetings per year

•Meet with community organizations and civic groups in order to facilitate communication and build community advocates

Hold at least six meetings per year

•Hold focus groups to gauge community support of general city projects

At least 4 focus groups per year

•Hold focus groups to gauge customer service feedback of At least 4 focus groups per year city services

The City’s Boards and Commissions are an important part of the City.

Volunteers review detailed information regarding relevant topics and make recommendations to City Council. Information on each Board/Committee is available on the City’s website.

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

A.W. Huckle City Beautification Fund Committee Airport Commission Appointments Committee Commission For Children and Youth Community Relations Council Construction Board Of Appeals Downtown Parking Management Commission Fire Prevention Code Board Of Adjustments And Appeals Housing Authority Commission Mayor's Committee For People With Disabilities Planning Commission Property Maintenance Code Board of Appeals Public Parks and Recreation Commission Rock Hill Board of Historic Review Rock Hill Clean and Green Board Rock Hill Tree Commission Stormwater Advisory Board Tourism Commission Traffic Commission Zoning Board of Appeals

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Performance Budgets: FY2016-2018 Strategic Plan Goal: Cultivate partnerships that encourage a wide range of cultural, recreational, and educational opportunities for all ages Work with community partners to expand cultural, educational, and leisure opportunities.

•Continue to support the Rock Hill School District and its teachers with the Challenge Based Learning initiative

At least four meetings per year with the CBL team

•Provide artistic and cultural programs that are co-sponsored by City partners

At least 2 artistic/cultural events per year

•Support vocal and instrumental students in downtown businesses

3 new venues per year

Work with community partners to develop social opportunities for all residents inclusive of special populations, retirees, teenagers and seniors.

•Offer alternative sport and adventure based opportunities to the teen population

One event per year

•Increase the number of sanctioned youth at the BMX Supercross Track

By 10% annually

•Increase the number of certified youth at the Velodrome

By 5% annually

•Hold a "bike fair" for families to get information on helmets, clothing and exposure to the track

Twice per year

•Provide an opportunity for special populations to participate in cycling at the Rock Hill Outdoor Center

One event per year

•Develop a cross-country trail at the RHOC and encourage By 6/30/2017 youth involvement

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•Increase the number of retirees and seniors who participate in the O.W.L.S. Club

Add 30 members each year

•Investigate opportunities for partnerships to address significant social issues in the community

By 12/31/2016

•Engage community partners in the design of at least one project

By 6/30/2018

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Performance Budgets: FY2016-2018 Strategic Plan Goal: Cultivate partnerships that encourage a wide range of cultural, recreational, and educational opportunities for all ages Continue to provide, support, and promote health and wellness initiatives.

•Promote an active lifestyle through the "Eat Smart, Move More" campaign

One event per year

•Track the number of exercise classes and participation for youth and adults at all recreation centers

By 6/30 Annually

•Complete the I-77 crossing of the Galleria Greenway as part of the Trails and Greenway Master Plan

By 6/30/2018

•Increase the number of marked family-friendly bike routes

By one route per year

Work to foster social, racial, and cultural acceptance and promote community inclusiveness by identifying, planning, and participating in events that promote diversity and inclusiveness.

•Partner with the Youth Council to host events that promote diversity and inclusiveness

Hold at least two events per year

•Partner with the City of Rock Hill Community Relations Council to host events that promote diversity and inclusiveness •Complete the Woolworth Walkway project

Hold at least three events per year By 6/30/2016

There are many family-friendly bike routes throughout the City. Maps are available that show specific routes, e.g. how to bike from one park to another. The City plans to add one new marked, family-friendly, bike route per year.

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Performance Budgets: FY2016-2018 Strategic Plan Spotlight: City Outreach Reaching out to our community is very important to the City. With the help of multiple partners, the City is able to enhance the Quality of Life of our citizens. These programs and events add to our great community.

Once a quarter, the Rock Hill Police Department (RHPD) holds Coffee with a Cop. This no agenda event gives the public an opportunity to informally interact with the RHPD.

The City of Rock Hill, Rock Hill School District, York County Library, and other organizations have partnered together to promote the importance of reading.

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The #1 Question: “Is it good for the children?” campaign seeks to accomplish two goals. It makes our community aware of existing youth resources. It also helps the community recognize how decisions impact the children and youth of Rock Hill.

In the summer, city employees collect fresh fruits and vegetables. This produce is then donated to Pilgrim’s Inn and Project Hope to give healthy food options to those in need.

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Performance Budgets: FY2016-2018 Strategic Plan

www.cityofrockhill.com/transparency

City of Rock Hill 155 Johnston St. PO Box 11706 Rock Hill, SC 29731 www.cityofrockhill.com

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

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Performance Budget Overview Introduction to Performance Budgets This section of the budget document details how the City of Rock Hill will allocate financial and personnel resources. The City’s Strategic Plan assists with the allocation of resources by reminding City leaders and staff of the established priorities, consequently improving the City’s ability to accomplish its goals. There are four sub-sections included in the Performance Budget section: FY2017 Year-End Performance Results Summary—provides a high level summary of the City’s progress at accomplishing performance goals that were due within Fiscal Year 2017. The full report is available at cityofrockhill.com/transparency.

Accountability & Transparency Efforts– provides information on the various efforts the City has undertaken to champion open and accessible government. Our efforts earned the Government Finance Officers Association’s (GFOA) 2011 Award for Excellence in Government and the Alliance for Innovation’s 2010 Outstanding Achievement in Innovation Award.

Performance Budgets— provides high level summaries of performance measurement, expenditure, and personnel information for departments and divisions.

FY2016—FY2018 Strategic Plan—while the performance budget section highlights a few performance measures, the Strategic Plan section provides the City’s official Strategic Plan in its entirety. Our Strategic Plan and Performance Dashboard earned the International City/County Management Association (ICMA) 2017 Certificate of DISTINCTION IN Performance Management.

Fiscal Year 2017 Performance Results Summary The City met 77% of the performance targets that were due in Fiscal Year 2017. The Year-End results suggest that the City experienced both successes and challenges. The results further solidify that the Strategic Plan’s goals and targets were developed with appropriate rigor. During Fiscal Year 2018, the City will continue to use its resources to address the priorities set forth in the FY2016-FY2018 Strategic Plan.

FY2017 Performance Results Strategic Focus Area

Targets Met (Percent)

Substantial Progress (Percent)

Targets Not Met (Percent)

All Focus Areas

77%

4%

19%

Quality Services

70%

6%

24%

Quality Places

91%

3%

6%

Quality Community

82%

0%

18%

The City’s Year-End Performance Report is available at cityofrockhill.com/transparency.

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City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Performance Budgets Accountability & Transparency Efforts To assist with providing the community with updates on revenues, expenditures, and progress at addressing the goals and meeting the targets within the Strategic Plan, the City has Performance and Financial Dashboards available on our website.

What are the Dashboards?

The Performance Dashboard is a tool to communicate track the City’s progress on addressing many of performance targets included in the Strategic Plan.

Financial Dashboard communicates revenue expenditure information specific to Rock Hill.

and the The and

What information is provided on the Dashboards?

Information on the City’s progress at meeting performance targets ranging from reducing crime to meeting milestone dates for major projects is included on the Performance Dashboard. Summaries of expenditures by department and revenues by source are included on the Financial Dashboard.

Progress is communicated using various types of graphs and timelines with narrative information. When available, historical performance data are included to offer added context.

How often are the Dashboards updated?

The Financial Dashboard is updated monthly. The Performance Dashboard as a whole is updated monthly; however, the frequency of updates for individual performance targets vary. Some targets are evaluated and updated on a monthly basis (e.g., tax base growth), while others are evaluated quarterly (e.g., stormwater master planning, public safety response times) or annually (e.g., code enforcement voluntary compliance rate).

How to access the Dashboards?

Visit cityofrockhill.com/transparency.

The City of Rock Hill is committed to using performance measurements to provide data to complement decision making, improve performance, communicate progress, and provide accountability.

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Performance Budgets Office of Management Department Description City Council is responsible for directing the government through policy actions and legislative decisions. City Management provides professional leadership and direction in the administration and execution of all polices, supervises City departments to ensure high quality community services, communicates public information to keep the public informed on City programs, policies, and initiatives and manages the strategic planning efforts.

The Grants division secures grant funding for various City operations and ensures compliance with grant requirements. The Airport division oversees the operation of the municipal airport. The City Attorney is a contracted service which provides legal support to all City Departments, Council, Boards, and Commissions.

Mayor & City Council City Management

City Attorney Office of Management

Grants

Airport

General Election

*In Fiscal Year 2017, Office of Management and Budget was renamed to Office of Management as the responsibility for budget was shifted to Finance. Mayor and City Council, City Attorney, Airport, Grants and General Election were moved from General Government to Office of Management in Fiscal Year 2017; however, the historical expenditure and personnel data above includes these divisions in all years listed.

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City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Performance Budgets Office of Management (continued)

Fiscal Year 2018 Key Issues Focus: Policy direction Communication of public information Develop communication plans Continue television broadcasts Strategic Planning Performance Management Airport taxiway rehabilitation and terminal building expansion Continued Grant applications

Financial Highlights: Airport Terminal & Taxiway Improvements-$57,000 Citizen’s Survey—$25,000 City Hall Maintenance—$15,000 Communications Initiative—$15,000 Strategic Plan Implementation—$15,000 Environmental Education—$5,000

The City’s Facebook Page

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Performance Budgets OFFICE of MANAGEMENT (continued) Division: City Council Mission: To serve the citizens of Rock Hill as the governing body of the City; responsible for formulating and enacting public policy which provides for the growth and development of the community and directs the government to provide services which meet the needs of the citizens and enhance the quality of life.

Division: City Management* Mission: To provide professional leadership and direction in the administration and execution of all policies set by the City Council, supervise City departments to ensure low-cost, high-quality community services and manage strategic planning efforts. To develop mutual understanding and support between City government and the community by communicating public information, managing municipal public relations, fostering community partnerships, and facilitating citizen involvement.

*Includes historical and projected expenditures and personnel from the former Budget Division.

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City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Performance Budgets OFFICE of MANAGEMENT (continued) Division: Grants Mission: To research, write and administer grants for the City of Rock Hill. Responsibilities associated with this include working in collaboration with City staff and project stakeholders on needs, and fostering positive relationships with funders.

Division: Airport Mission: To promote, operate, and maintain the City’s airport to ensure the facility is safe and up-to-date to attract air travelers to the area.

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Performance Budgets Office of Management (continued) Division: Elections

Division: City Attorney Mission: To serve as legal counsel and provide legal services to City Council, City Manager, Municipal Clerk, boards and commissions, and all departments of the City.

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City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Performance Budgets JUDICIAL SERVICES Department Description The Municipal Court strives to render fair, impartial judicial decisions on all traffic violations and certain criminal offenses which occur within the City limits. The Solicitor’s Office works to secure safety and justice for the citizens of Rock Hill and prosecutes cases in the Municipal Court, including jury trials and environmental code violations.

Municipal Court

Solicitor’s Office Judicial Services

*In Fiscal Year 2017, Municipal Court and Solicitor’s Office were moved from General Government to Judicial Services.

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Performance Budgets JUDICIAL SERVICES (continued)

Fiscal Year 2018 Key Issues Focus: Court and Solicitor’s process enhancement Case disposition Fine collection

Financial Highlights: Technology Upgrades and Maintenance—$30,540 Criminal Domestic Violence Prosecution—$40,000

Enhancements to the Court and Law Center entrance

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City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Performance Budgets Judicial Services (continued) Division: Municipal Court Mission: To serve the public in the administration of law; to render judicial decisions fairly and impartially; and to administer the Municipal Court in a dignified, professional, customer-focused and efficient manner consistent with the expectations of the citizens of Rock Hill.

Division: Solicitor’s Office Mission: To provide professional and responsive prosecution of criminal cases in the Rock Hill Municipal Court; to approach each citizen who has been the victim of a crime with a sense of compassion and understanding; to work in cooperation with the Rock Hill Police Department and other law enforcement agencies, including Winthrop University Police, in the preparation, presentation, and disposition of criminal cases and provide legal assistance to all departments of the City.

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Performance Budgets Human Resources Department Department Description Human Resources directs citywide human resources services in a manner that is innovative, effective, efficient, and customer-focused, serving as a conduit through which City Management affects comprehensive organizational change and quality of government; oversees employee customer service training to ensure that all employees understand the City’s commitment to providing high quality customer service.

Personnel Services

Administration Human Resources

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City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Performance Budgets Human Resources Department (continued)

Fiscal Year 2018 Key Issues Focus: Health Insurance cost containment Police and Fire retention efforts Manage and train staff Employee and retiree benefits Wage and salary administration Employment law compliance Youth grant programs Recruitment New-hire orientation

Financial Highlights: Employee Assistance Program—$28,000 Employee Training/Leadership Development $6,400 Customer Service Training- $4,800

Employee Health Fair

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Performance Budgets Human Resources Department (continued)

Division: Administration Mission: To direct citywide human resources services in a manner that is innovative, effective, efficient, and customer focused. Serve as a conduit through which City Management affects comprehensive organizational change and quality of government.

Division: Personnel Services Mission: To provide employment, training, and departmental partnerships that enable the City to excel in its goal of being a customer-driven organization.

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City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Performance Budgets Housing and Neighborhood Services Department Description The Housing and Neighborhood Services Department helps create partnerships between neighborhood residents, the business community, and local government to create a safer, healthier, and friendlier environment. Through programs, training, and support, these partnerships encourage responsible homeownership, provide a means of revitalizing neighborhoods, support community pride, and develop personal empowerment.

Administration

Neighborhood Empowerment

Housing & Neighborhood Services

Neighborhood Development Services

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Neighborhood Inspections

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Performance Budgets Housing and Neighborhood Services Department (continued)

New Home for Sale in Arcade Mill Village Fiscal Year 2018 Key Issues Focus: Neighborhood Stabilization Program Rehabilitate owner-occupied properties falling within low income guidelines Quarterly Windshield Surveys Residential Code Enforcement

102

Financial Highlights: Weed & Seed Community Initiatives — $30,000 Partnership Initiatives with Rock Hill Council of Neighborhoods—$10,000

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Performance Budgets Housing and Neighborhood Services Department (continued) Division: Administration Mission: To provide support to the Neighborhood Development, Neighborhood Inspections, and Neighborhood Empowerment divisions of the Housing and Neighborhood Services Department.

Division: Neighborhood Empowerment Mission: To stabilize and revitalize neighborhoods by encouraging and assisting citizens with developing neighborhood organizations, so they may better access City services and identify and leverage community resources. Neighborhood Empowerment serves as a link between City government and Rock Hill neighborhoods and works to build a sense of community and partnership within and between neighborhoods, the City of Rock Hill, and other public and private stakeholders.

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Performance Budgets Housing and Neighborhood Services Department (continued) Division: Neighborhood Inspections Mission: To provide customer-focused community development and housing services in a cost-effective manner that ensure quality development and living standards for all citizens. To improve health, safety, and community appearance through education and ordinance enforcement.

Division: Neighborhood Development Mission: To provide customer-focused community development and housing services in a cost-effective manner that ensure quality development and living standards for all citizens. To improve health, safety, and community appearance through education and to plan and implement quality programs which involve the public in community improvement, waste reduction, litter control, and environmental education.

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City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Performance Budgets Police Department Department Description Members of the Rock Hill Police Department are dedicated to delivering high quality police services through meaningful community partnerships and problem solving. The Police Department is built on a philosophy that includes the values of: community, excellence, integrity, loyalty, and teamwork.

Administration

Technical Services

Investigations Police Department

Professional Standards

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Patrol

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Performance Budgets Police Department (continued)

Worthy Boys and Girls Camp 2017 Fiscal Year 2018 Key Issues Focus: Performance targets such as reducing property crime and responding to Priority One calls with in five minutes Officer Recruitment

106

Financial Highlights: Body Camera Data Storage — $250,000

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Performance Budgets Police Department (continued) Division: Administration* Mission: To deliver high-quality police services through meaningful community partnerships and problem solving. The Police Department is built on a philosophy that includes the values of community, excellence, integrity, loyalty, and teamwork.

*To better reflect police enforcement strategies and subsequent frequent reassignment of personnel in the Police Department, all Police personnel expenditures are reflected in the Administration Division.

Division: Criminal Investigations Mission: To conduct thorough, fair, and impartial investigations against persons and property. Division members take a proactive approach toward focusing resources on crime detection, investigation, and apprehension of criminal offenders.

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Performance Budgets Police Department (continued) Division: Police Patrol Mission: To provide timely and professional service to the citizens of Rock Hill. Our goal is to improve the quality of life for our citizens and to enhance traffic safety within our community.

Division: Professional Standards Mission: To be responsive, fair, and impartial to the needs of the community and the employees of the agency when conducting investigations. Professional Standards is also dedicated to delivering high quality police services through meaningful community partnerships and leading the department in problem solving. The Division also strives to provide the most up-to-date and relevant training possible to all employees of the agency.

Division: Technical Services Mission: To provide the citizens of Rock Hill with a professional customer service experience. Members will provide accurate and near real-time crime analysis and maintain records and archives as required by state law.

In addition, members will provide for the implementation and maintenance of technology systems, utilizing state of the art technology as needed to assist in reducing crime.

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City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Performance Budgets Fire Department Department Description Members of the Rock Hill Fire Department provide a range of programs and services designed to protect the lives and property of those who live, visit, or invest in the City of Rock Hill from the adverse effects of fires, medical emergencies, and other hazardous conditions, natural and man-made.

Administration

Fire

Firefighting/ Suppression

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Prevention/ Inspections

109

Performance Budgets Fire Department (continued)

Construction of Burn Building Fiscal Year 2018 Key Issues Focus: Financial Highlights: Fire inspection regulations Construction of Burn Building and Training Fire safety awareness Tower— $2.5m GO Bond Inspections Employee Stipend for Paramedic Certification — Performance targets such as responding to 90% of $16,500 fire suppression and medical calls within five minutes

110

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Performance Budgets Fire Department (continued)

Division: Administration Mission: To provide leadership, administrative support, planning services, and training for all operations in the Fire Department to ensure the citizens and businesses of Rock Hill receive high quality fire protection and fire prevention services.

Division: Fire Fighting/Suppression Mission: To minimize the loss of life and property in the community through immediate and effective deployment of personnel and equipment at fires, medical emergencies, and other dangerous conditions including hazardous material spills and rescues.

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

111

Performance Budgets Fire Department (continued)

Division: Fire Prevention/Inspections Mission: To ensure a fire–safe community through effective fire code enforcement, fire prevention education, and fire investigation.

112

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Performance Budgets Planning and Development Department Department Description Planning and Development is committed to preserving and enhancing Rock Hill’s economic vitality and quality of life through thoughtful planning and careful management of growth and development activities. To accomplish this, they strive to engage the community and further its values, communicate and collaborate with internal and external partners at all levels, and provide the highest quality of customer service to citizens, businesses and investors in our community. As part of this mission, a one-stop service if provided for development investment in the City where every regulatory activity from the conception of the idea to the completion of the project be handled by one department in an efficient, customer-oriented manner.

Administration & Customer Service

Infrastructure

Zoning Planning & Development

Planning

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Building Inspections

113

Performance Budgets Planning and Development Department (continued)

Fiscal Year 2018 Key Issues Focus: Commercial Code Enforcement Inspections Annexation Permitting Business License Comprehensive Plan Update Transportation Planning Coordination

Financial Highlights: India Hook/Celanese CMAQ Match—$200,000

Celanese Road Traffic Study

114

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Performance Budgets Planning and Development Department (continued) Division: Administration & Customer Service Mission: To provide the support and overall coordination for the department, including Business License in addition to the Permit Application Center, which is charged to take in every application that we process and issue many permits and approvals on the spot.

Division: Building Inspections Mission: To protect the health and well-being of the community through the administration of building-related codes by highly trained professionals using progressive policies and the latest technology in a customer-focused process.

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

115

Performance Budgets Planning and Development Department (continued)

Division: Zoning Mission: To thoughtfully and effectively administer the Zoning Ordinance to foster quality, sustainable growth and economic development, and to provide thorough staff support to the Boards and Commissions that assist in implementing that vision.

Division: Planning Mission: To support the long-range vision of the City through development and implementation of the Comprehensive Plan and other special studies, and through the administration of the Rock Hill-Fort Mill Area Transportation Study (RFATS) and other transportation-related activities.

116

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Performance Budgets Planning and Development Department (continued)

Division: Infrastructure Mission: To ensure the adequacy and quality construction of newly developed public and private infrastructure, including landscaping, streets, utilities and stormwater management facilities, through the administration of development standards and coordination with affected departments and agencies.

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

117

Performance Budgets Public Works Department Department Description The Public Works Department seeks to improve the health, safety, and appearance of the community by cleaning, marking, and resurfacing roadways, collecting and disposing of solid waste and recyclable materials, and supporting other City departments with manpower, equipment, and expertise.

Construction

Administration

Street Maintenance

Recycling

Public Works

Residential Sanitation

Curbside

Commercial Sanitation

118

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Performance Budgets Public Works Department (continued)

Pot Hole Repair Truck

Fiscal Year 2018 Key Issues Focus: Streets, sidewalks, curbs and gutters Striping Refuse collection Dumpster rental Yard waste Recycling education

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Financial Highlights: Full Cost Paving- $1,385,000 Sidewalk Repair—$120,000

119

Performance Budgets Public Works Department (continued) Division: Administration Mission: To provide administrative leadership, supervision, support, and direction for all programs in the Public Works Department, so that services are delivered in a quality, cost-effective manner while emphasizing friendly and professional customer service.

Division: Street Maintenance Mission: To provide for the safe and efficient movement of traffic and pedestrians by maintaining and cleaning the City’s streets, sidewalks, and curb and gutter in a manner that meets the high standards of the community.

120

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Performance Budgets Public Works Department (continued) Division: Residential Sanitation Mission: To promote the environmental health and safety of the community by providing household solid waste removal at a cost that is reasonable to the public and is responsive to citizens’ needs.

Division: Commercial Sanitation Mission: To provide cost-effective, high-quality bulk container sanitation service to business, industry, and multifamily housing units within the City of Rock Hill.

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121

Performance Budgets Public Works Department (continued) Division: Curbside Mission: To promptly and properly collect and dispose of all household trash and yard waste in a cost-effective, expedient manner for the citizens of Rock Hill.

Division: Recycling Mission: To provide an efficient, cost-effective collection service for residential recycling, corrugated cardboard, office paper, and restaurant cans and bottles. The recycling collections program provides a significant diversion to products normally destined for the landfill and creates substantial savings in associated tipping fees.

122

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Performance Budgets Public Works Department (continued)

Division: Construction Mission: To construct and maintain City streets, sidewalks, and curb and gutter infrastructure in a manner that is safe and efficient.

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123

Performance Budgets General Services Department Description General Services is committed to providing high quality, reliable and sustainable services by managing quality facilities; providing healthy and safe work environments; cost-effective and compassionate cemetery services; management of capital projects; timely and competitive procurement; ensuring efficient fleet and equipment management; warehousing and distribution, and the many other varied services that support the City in the advancement of its strategic goals and objectives.

Project Management

Cemetery Services

General Services

Custodial Services

Purchasing & Fleet

Building Maintenance

*

In Fiscal Year 2017, General Services became a separate department with divisions in both the General Fund and the Electric Fund. Custodial Services, Cemetery Services, Building Maintenance and Purchasing & Fleet moved from General Government and Project Management moved from the Electric Fund to the General Fund, all as divisions of General Services. Fiscal Year 2016 expenses for Project Management are not listed here as their funding was in the Electric Fund during that time.

124

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Performance Budgets General Services (continued)

Fiscal Year 2018 Key Issues Focus: Continued maintenance of City-owned facilities Continued vehicle replacement program and maintenance Capital project management

Financial Highlights: Building Maintenance— $192,000 Gettys Center Improvements—$120,737 Cemetery Maintenance- $50,000 Parking Deck Maintenance—$36,000

University Center Development

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

125

Performance Budgets General Services (continued) Division: Buildings Maintenance Mission: To provide effective maintenance of all City facilities to ensure their optimal use by employees and the public.

Division: Cemetery Services Mission: To provide professional cemetery services at a cost that is reasonable to the public and responsive to customer needs.

126

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Performance Budgets General Services (continued) Division: Custodial Services Mission: To provide custodial services in a manner that ensures clean buildings.

Division: Project Management Mission: To support City operations through the efficient management of capital projects.

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127

Performance Budgets General Services (continued) Division: Purchasing & Fleet Mission: To provide competitive and timely purchase of supplies, materials, equipment and services which meet the needs of departments and adhere to state and municipal procurement guidelines and regulations and to ensure the safe and reliable use of City vehicles by providing quality, cost-effective fleet maintenance services.

128

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Performance Budgets Finance Department Department Description The Finance Department is responsible for ensuring the sound financial management of the City’s funds by planning and furnishing accountable financial records management, including treasury management, auditing, and tax administration, providing high quality customer services through effective billing collections and developing and managing the City’s budget and capital improvement plan.

Administration & Archives

Accounting

Finance

Risk Management

Central Collections

*

In Fiscal Year 2014, the four members of the call center team were moved to the General Services Division. Additionally, in Fiscal Year 2017, Billing & Metering, Account Management and Customer Services were moved to General Services in Fund 725 to implement the new AMI system.

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

129

Performance Budgets Finance Department (continued)

Fiscal Year 2018 Key Issues Focus: Accounting Internal Control Financial Reporting Budget Preparation Capital Improvement Plan Risk Management & Safety Programs

Financial Highlights: Safety Incentives—$47,600

Employee Safety Picnic 2017

130

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Performance Budgets Finance Department (continued)

Division: Administration & Archives Mission: To provide leadership, supervision, support, and direction for all programs in the Finance Department.

To serve as the Municipal Clerk to City Council and provide support services which include maintaining all records of the City, codification of ordinances, and compilation of minutes. To develop and manage the City’s budget and capital improvement plan, oversee the development and implementation of legal and ethical customer service policies and procedures and coordinate efforts appropriately.

Division: Accounting Mission: To provide City-wide accounting, internal control, and financial reporting services. To perform all necessary accounts payable and payroll functions of the City. To invest all funds of the City to maximize returns.

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131

Performance Budgets Finance Department (continued) Division: Risk Management Mission: To implement and administer a comprehensive risk management program with the highest concern for employee safety, public safety, prevention of financial losses from liability claims and contractual matters, and the reduction of physical damage to property. To promote citywide safety through inspections, training, and other loss prevention/reduction techniques.

Division: Customer Services Mission: To assist customers in establishing and maintaining their utility services while ensuring that all City policies and procedures related to these transactions are followed.

132

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Performance Budgets Finance Department (continued) Division: Central Collections Mission: To collect all monies due to the City with the exception of property taxes. Central Collections is committed to the proper processing of payment and reimbursements to ensure that both the customer’s account is maintained properly and that the City’s cash flow process is correct and intact and meets all audit standards.

Division: Account Management Mission: To assist and respond to citizens during times of financial difficulty. The staff of this area set terms for customers to avoid interruption of service, and further, have developed relationships with dozens of agencies willing to offer financial assistance to customers in need. Account Management further facilitates the coordination of efforts to bring assistance agencies and those in need together.

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133

Performance Budgets Finance Department (continued) Division: Billing & Metering Services Mission: To produce accurate and timely utility invoices for all utility customers. These efforts represent the single largest revenue source for the City. This group also investigates customer inquiries regarding utility charges and also carefully regulates the termination of service for those customers who are outside of the terms of payment required by municipal code.

134

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Performance Budgets Parks, Recreation, and Tourism Department Department Description Parks, Recreation and Tourism provides a wholesome program of leisure, recreational, tourism, and cultural opportunities and facilities to enhance the quality of life for Rock Hill residents and visitors.

Parks

PRT Department

Recreation

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Tourism

135

Performance Budgets Parks, Recreation, and Tourism Department (continued)

2017 BMX World Championship Fiscal Year 2018 Key Issues Focus: Recreation Centers Special Events Tournament Complexes Neighborhood Parks Marketing Hospitality Services

136

Financial Highlights: Seasonal Staff for Cycling Events —$192,215 Trails construction—$27,300 Power Equipment & Implements —$25,000

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Performance Budgets Parks, Recreation, and Tourism Department (continued)

Division: Tourism Mission: To provide leadership and administrative support to all divisions of the Parks, Recreation, and Tourism Department, to ensure efficient and effective operations, and to promote leisure and tourism opportunities to increase public participation and tourism.

Division: Recreation Mission: To provide diversified and quality recreational activities and special events for individual neighborhoods as well as the entire community, for citizens of all ages and economic statuses. To provide yearround, quality leisure services to the senior citizen and handicapped populations of the community by designing, planning, and conducting activities to meet the specific needs of these citizens.

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137

Performance Budgets Parks, Recreation, and Tourism Department (continued)

Division: Parks Mission: To develop and operate the City’s regional facilities to offer the public active and passive leisure opportunities and events that create tourism and economic impact.

Large crowd gathered for the 2017 BMX World Championship Race

138

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Performance Budgets Housing Authority Department Description The Housing Authority provides, maintains, and oversees governmental housing units in the City so that eligible, low-income families are afforded adequate housing.

Housing Authority

Fiscal Year 2018 Key Issues Focus: Manage public housing Partner with Boys and Girls Club of York County Voucher assistance to families and individuals Affordable housing programs

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

139

Performance Budgets Economic and Urban Development Department Description Economic and Urban Development is committed to strengthening the City’s role as a place for economic activity through job creation, business location and expansion, redevelopment, and tourism.

Administration

Economic and Urban Development

Marketing and Events

Knowledge Park

*

In Fiscal Year 2017, Economic and Urban Development re-structured, moving staff once assigned to Infrastructure/Re-development into the other divisions. Additionally, Business and Jobs Recruitment was renamed Knowledge Park.

140

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Performance Budgets Economic and Urban Development (continued)

Old Town Ice Skating Rink (photo by Mike Baker)

Fiscal Year 2018 Key Issues Focus: Assisting private investment Job creation RH Economic Development Corporation

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Financial Highlights: Knowledge Park Workforce Development— $30,000 Knowledge Park Business Development —$25,000 Downtown Facade Rehabilitation - $16,000

141

Performance Budgets Stormwater Department Department Description The Stormwater Division is responsible for managing the City’s stormwater infrastructure and improving drainage throughout the City by performing improvement projects, routine maintenance and repair on the City’s stormwater drainage system.

Stormwater

Includes Non-Departmental and Debt Service Expenditures

Fiscal Year 2018 Key Issues Focus: Stormwater Master Plan Drainage system maintenance Sediment/Erosion control inspections Public education– water quality, water pollution

142

Financial Highlights: $4,270,200 in Stormwater SRF Loans to fund 2 major capital improvement projects, including: College Downs

Cavendale Drive

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Performance Budgets Utilities Department- Electric Fund Department Description The Electric Department is responsible for providing the most reliable and efficient service of electrical power, traffic signalization, and street lighting with the best possible service and support to our customers and to coordinate recovery from storms, disasters, emergencies. The mission of General Services, a department within the Electric Fund, is to provide hometown security services and special event support, exemplary customer service, call center operations, accurate utility billing and a variety of tools and information to assist customers manage their utility usage and billing, as well as coordinate the annual federal legislative program. Operations Administration and Information Technology, divisions within the Electric Fund, support the business operations of the City through the operational and administrative assistance of its projects and technology endeavors for all City operations.

Operations Administration Utilities Administration

Information Technology

General Services

Electric Fund

Electric Services

Electric Engineering

AMI Operations AMI Administration

Power & Communication Services

^ Paid directly to Piedmont Municipal Power Agency and Southeastern Power Agency

Total includes Non-Departmental and Debt Service Expenditures

*

In Fiscal Year 2017, Billing & Metering, Account Management and Customer Services were moved to General Services in Fund 725 to implement the new AMI system, and Project Management was moved from Fund 725 to General Services, Fund 500. The Electric Department includes Electric Utilities Administration, Electrical Services, Electrical Engineering & Power & Communications. Information Technology Services and Operations Administration are divisions managed within Fund 725, while General Services was established as a separate department within Fund 725 in Fiscal Year 2017.

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143

Performance Budgets Utilities Department– Electric Fund (continued)

Rock Hill electrical crews bury new electric lines as part of the Cherry Road Improvement Project.

Fiscal Year 2018 Key Issues Focus: Capital projects throughout Old Town, Textile Corridor, and Knowledge Park Overhead to underground conversion Minimize outages and improve service AMI Implementation

144

Financial Highlights: New Substation Feeders—$150,000 Primary UG Cable Replacement— $100,000 Distribution SCADA Automation—$100,000

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Performance Budgets Utilities Department– Electric Fund (continued) Division: Utilities Administration Mission: To provide administrative leadership, supervision, support, and direction for all programs in the Electric, Water, and Wastewater Funds.

Division: Electrical Services Mission: To provide the most reliable and efficient service of electrical power, traffic signalization, and street lighting with the best possible service and support to our customers.

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

145

Performance Budgets Utilities Department– Electric Fund (continued) Division: Electric Engineering Mission: To provide engineering and project management services to our customers and coworkers. Design and manage an electrical system that is safe, reliable, and efficient. To set a standard of excellence in customer service, design applications, project management, and commitment to accomplishing the City’s strategic goals.

Division: Power and Communication Services * Mission: To provide the most reliable and efficient service of electrical power and street lighting with the best possible service and support to our customers while promoting safety and training as electrical professionals. To provide the greatest reliability for emergency generation at City facilities and reduce power costs by utilizing load control device and generation equipment during peak times.

* Beginning in FY2015, Dispatch/SCADA merged with Traffic Signals to make Power & Communication Services (division 3580).

146

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Performance Budgets Utilities Department– Electric Fund (continued) Division: Information Technology Services Mission: To support technology endeavors in hardware and software throughout the organization. Information Technology Services strives to provide high quality customer service in an efficient and effective manner.

Division: Operations Administration Mission: To provide oversight to all functions housed at the City’s Operations Center.

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

147

Performance Budgets Utilities Department– Electric Fund (continued) Division: General Services Administration* Mission: To manage the implementation and operation of Advanced Metering Infrastructure (AMI); provide hometown security services and special event support; exemplary customer service; call center operations; accurate utility billing; support City Utility Services through key account and business support functions.

*

Prior to Fiscal Year 2014, Division 2415 was known as Hometown Security. In FY2014, it was given a new name, General Services. A part of this re-organization was moving four call center employees from Public Services Administration and the Key Accounts Manager to this new division. In FY2015, General Services, which became a separate division in FY2016, also housed the newly created Project Management Team. In Fiscal Year 2017, General Services became a separate department with divisions in both the General Fund and Electric Fund.

148

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Performance Budgets Utilities Department– Electric Fund (continued) Division: AMI Administration * Mission: To deliver quality customer service in tandem with the implementation of the AMI meter project by seamlessly integrating systems to maximize internal efficiency while educating and supporting customers in saving time, energy and money in regards to their utility usage.

*

Fiscal Year 2016 expenditures and personnel represent staff and expenses incurred by Project Management as AMI Administration was not established until Fiscal Year 2017 and assumed the division number previously assigned to Project Management before the division was moved to Fund 500.

Division: AMI Operations Mission: To deliver an innovative customer experience for the citizens of Rock Hill with the successful installation and deployment of new AMI meters and load control devices in a timely and secure manner, offering increased ability for customers to effectively monitor and manage utility consumption.

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

149

Performance Budgets Utilities Department- Water Fund Department Description The Water Department is responsible for providing customers with reliable and safe water that meets their needs in a cost-effective manner and to plan, design, and expand the water system to support regional growth.

Engineering

Water Fund

Water Treatment Plant

Water Distribution

Includes Debt Service, Water Impact Fee and Non-departmental expenditures

150

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Performance Budgets Utilities Department– Water Fund (continued)

Laurel Street Elevated Water Tank during Red, White & Boom (photo by Mike Baker)

Fiscal Year 2018 Key Issues Focus: Construction phase of Water Filter Plant expansion (from 36 to 48 mgd) Water meter installation Pump maintenance

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Financial Highlights: White Street Improvements— $450,000 White/Firetower/Main Improvements— $335,381 Small Diameter Water Line Replacement— $100,000

151

Performance Budgets Utilities Department– Water Fund (continued) Division: Water Engineering Mission: To design, manage, survey, or inspect water, sewer, and other heavy construction for the citizens of Rock Hill in order to maintain current infrastructure and ensure quality growth.

Division: Water Distribution Mission: To effectively repair, replace, and expand the City’s water system to allow an adequate, uninterrupted supply of safe water for domestic, industrial, and fire protection needs of the community.

152

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Performance Budgets Utilities Department– Water Fund (continued) Division: Water Treatment Plant * Mission: To provide residents and customers with an adequate, high quality supply of drinking water through the effective operation of the water filter plant.

*

In Fiscal Year 2016, Raw Water Pump Station, Division 3525, was merged with Water Treatment. FY14 and 15 expenditures for Division 3525 are included in the totals above.

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

153

Performance Budgets Utilities Department- Wastewater Fund Department Description The Wastewater Department is responsible for providing customers with reliable and safe wastewater services in a cost-effective manner and to plan, design, and expand the wastewater system to support regional growth.

Wastewater System

Wastewater Treatment Plant

Plant Maintenance Wastewater Fund

Environmental Monitoring

Industrial Pretreatment

Includes Debt Service, Water Impact Fee and Non-departmental expenditures

154

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Performance Budgets Utilities Department– Wastewater Fund (continued)

Fiscal Year 2018 Key Issues Focus: Construction phase of Wastewater Treatment Plant expansion Maintain sewer pipes Maintain lift stations Analyze pretreatment samples

Financial Highlights: Cherry Road Improvements—$1,760,000 Manchester Outfall Replacement—$1,182,496 White Street Improvements — $663,555

Wastewater Treatment Plant

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

155

Performance Budgets Utilities Department– Wastewater Fund (continued) Division: Wastewater System Mission: To provide quality sewer service to customers by ensuring the integrity and reliability of the system through quick response to the problems that arise in the collection system and maintenance and expansion of the system to meet future needs.

Division: Wastewater Treatment Plant Mission: To protect the public health and preserve the environment by effectively treating the community ’s wastewater and producing clean water for discharge into the Catawba River.

156

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Performance Budgets Utilities Department– Wastewater Fund (continued)

Division: Industrial Pretreatment Mission: To monitor and control the discharge from industries utilizing the City’s treatment plant to protect the environment and plant from any unauthorized or harmful discharge.

Division: Environmental Monitoring Mission: To generate analytical data utilized by the wastewater treatment plant in process control and in satisfying the federal and state environmental program requirements.

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

157

Performance Budgets Utilities Department– Wastewater Fund (continued)

Division: Plant Maintenance* Mission: To manage and maintain the lift stations in proper working conditions at an economical cost to provide for the effective delivery of sewage to the treatment plant.

*

In Fiscal Year 2017, Lift Stations was re-named Plant Maintenance.

158

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Performance Budgets

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

159

Performance Budgets

160

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Performance Budgets

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

161

Performance Budgets

162

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Performance Budgets

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

163

Performance Budgets

164

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Performance Budgets

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

165

Performance Budgets

166

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Debt Service As the City’s capital needs have grown, varied financing models have been implemented to address the need for capital investment while preserving the City’s financial health. These financial models include using operating funds and issuing bonds to pay for capital projects. The bonds have been used to fund both revenue-producing facilities and general purpose facilities. As of July 1, 2017, the City of Rock Hill’s total principal bond debt service outstanding was $299,808,955, including $16,773,379 in Equipment Lease Purchases. The majority of debt consists of Revenue Bonds ($198,280,564), Tax Increment Financing ($33,576,000), Hospitality Tax Bonds ($19,205,000) and General Obligation Bonds ($17,995,000).

Legal Debt Margin The City has a legal debt limit of 8% of the total assessed value. The City is authorized by state statute to exceed the legal debt margin if the additional debt is approved by the City’s citizens.

General Obligation Debt Margin City’s Legal Debt Margin Tax Year 2014

Tax Year 2015

Tax Year 2016*

Assessed Value

258,937,028

273,946,825

280,595,374

8% Debt Limit

20,714,962

21,915,746

22,447,630

(16,430,000)

(15,470,000)

(17,995,000)

$4,284,962

$6,445,746

$4,452,630

Total Amount of Debt Applicable to Debt Limit Legal Debt Margin

*projected

Future Debt In Fiscal Year 2018, the City plans to borrow $4.2 million from the State Revolving Fund (SRF) to complete two major stormwater projects in College Downs and on Cavendale Drive. In addition, we anticipate using Tax Increment Funding to finance a $1.5million project in the Downtown TIF District for improvements on Main Street and a $5 million project in the Textile TIF District for improvements around the former Bleachery site.

Financing for the FY2018 Equipment Lease Purchase, totaling $3.9 million, will be finalized in late summer to fund vehicle replacements. A second equipment lease purchase for $10.5 million is expected later in the year to fund the third phase of the AMI Pilot program. A third equipment lease purchase for $2.5 million is also expected later in the year to fund furnishings and equipment for the new Indoor Facility scheduled to come online in August 2018 as a part of the Bleachery site redevelopment.

The debt service for this lease will be covered by Hospitality Tax revenues generated by the new facility.

Over the next eight to ten years, the City plans to issue approximately $171 million in debt for the purpose of completing improvements and additions to the current wastewater facilities. The expansion of the facilities will be financed through Utility Revenue Bonds. These improvements are needed not only to manage the current demand but also the anticipated demand on our system due to growth. Utility system rate increases projected for FY2018-2024 will help service the future debt and continue to fund pay-as-you- go projects. As the cost of the Utility System improvements have drastically increased in the last few years, the City will monitor the need for further rate increases to help pay the anticipated debt service.

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167

Debt Service Revenue Bonds All revenue bonds are payable from the net revenues of the City’s combined utility system. The various bond indentures contain significant limitations and restrictions on annual debt service requirements and minimum revenue bond coverage.

Revenue bond repayment is generally structured so that interest is payable semi-annually on the first of January and July.

Principal payments are paid in a lump sum on the first of January. The City is in compliance with all such significant financial limitations and restrictions. Highlights of outstanding Utility Revenue Bonds consist of:  In October 2009, the City issued $44,600,000 in Utility System Revenue Bonds. The bonds were issued to fund improvements to the electric, water and wastewater systems and to refund the outstanding Combined Utility System Revenue Bond Anticipation Notes, Series 2008 and Revenue Bonds 1998C, 2000A, and 2000C.  In 2012, the City refinanced $66,230,000 of old Utility System Revenue Bonds, including Series 2003A, 2008A and 2011 Combined Utility Revenue Bond Anticipation Note, in order to take advantage of lower interest rates.  In 2013, the City refinanced $20 million of old Utility System Revenue Bonds in order to take advantage of lower interest rates. The City also issued $9 million in new money to purchase three additional substations, paint the Herlong Tank, replacement of the Myrtle Dr. waterline and the Bleachery Outfall project.  In 2014, two State Revolving Fund (SRF) loans were secured: $4,380,667 to fund a water plant high service pumping modification and $4,956,563 to fund construction of the Laurel Street water line and elevated tank replacement.  In October 2016, the City issued $90,040,000 in Utility System Revenue Bonds. The bonds were issued to fund improvements to the electric, water and wastewater systems.

168

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Debt Service Revenue Bond Debt Schedules

Combined Utility System Revenue Bonds, Series 2009A Issued: September 30, 2009 Amount of Issue: $13,910,000 Remaining Principal Outstanding as of July 1, 2017: $9,355,000

January 1, 2018

$702,500

January 1, 2024

$902,500

January 1, 2019

$730,000

January 1, 2025

$945,000

January 1, 2020

$760,000

January 1, 2026

$985,000

January 1, 2021

$790,000

January 1, 2027

$1,027,500

January 1, 2022

$822,500

January 1, 2028

$677,500

January 1, 2023

$860,000

January 1, 2029

$152,500

Interest Rate: 4.31%

Combined Utility System Revenue Bonds, Series 2009B

January 1, 2028

$395,000

January 1, 2035

$1,427,500

January 1, 2029

$965,000

January 1, 2036

$1,487,500

Issued: September 30, 2009

January 1, 2030

$1,162,500

January 1, 2037

$1,550,000

Amount of Issue: $16,300,000

January 1, 2031

$1,210,000

January 1, 2038

$1,615,000

Remaining Principal Outstanding as of July 1, 2017: $16,300,000

January 1, 2032

$1,262,500

January 1, 2039

$1,682,500

January 1, 2033

$1,315,000

January 1, 2040

$857,500

Interest Rate: 4.31%

January 1, 2034

$1,370,000

Combined Utility System Revenue Bonds, Series 2009C January 1, 2018

$535,000

January 1, 2019

$557,500

Amount of Issue: $14,390,000

January 1, 2020

$582,500

Remaining Principal Outstanding as of July 1, 2017: $1,972,500

January 1, 2021

$297,500

Issued: October 28, 2009

Interest Rate: 3.47%

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

169

Debt Service Revenue Bond Debt Schedules (Continued) January 1, 2018 $2,150,000

January 1, 2025

$2,187,500

January 1, 2019 $2,220,000

January 1, 2026

$2,290,000

January 1, 2020 $2,322,500

January 1, 2027

$2,412,500

January 1, 2021 $2,430,000

January 1, 2028

$2,542,500

January 1, 2022 $2,520,000

January 1, 2029

$2,325,000

January 1, 2023 $2,300,000

January 1, 2030

$1,020,000

January 1, 2018 $2,380,000

January 1, 2031

$ 527,500

January 1, 2019 $1,687,500

January 1, 2032

$ 552,500

January 1, 2020 $1,045,000

January 1, 2033

$ 580,000

January 1, 2021

$ 375,000

January 1, 2034

$ 610,000

January 1, 2022

$ 387,500

January 1, 2035

$ 640,000

January 1, 2023

$ 402,500

January 1, 2036

$ 672,500

January 1, 2024

$ 417,500

January 1, 2037

$ 707,500

Remaining Principal Outstanding as of July 1, 2017: $17,422,500

January 1, 2025

$ 432,500

January 1, 2038

$ 742,500

January 1, 2026

$ 450,000

January 1, 2039

$ 780,000

Interest Rate: Variable

January 1, 2027

$ 465,000

January 1, 2040

$ 815,000

January 1, 2028

$ 477,500

January 1, 2041

$ 847,500

January 1, 2029

$ 490,000

January 1, 2042

$ 432,500

January 1, 2030

$ 505,000

Combined Utility System Revenue Bonds, Series 2012A Issued: March 22, 2012 Amount of Issue: $38,280,000 Remaining Principal Outstanding as of July 1, 2017: $28,812,500

January 1, 2024 $2,092,500 Interest Rate: Variable (2-5.25%)

Combined Utility System Revenue Bonds, Series 2012B Issued: October 17, 2012 Amount of Issue: $27,950,000

January 1, 2018

$ 917,500

January 1, 2027

$

0

January 1, 2019

$ 955,000

January 1, 2028

$

0

January 1, 2020

$ 995,000

January 1, 2029

$

0

January 1, 2021 $1,035,000

January 1, 2030

$ 337,500

Amount of Issue: $20,000,000

January 1, 2022 $1,075,000

January 1, 2031

$1,830,000

Remaining Principal Outstanding as of July 1, 2017: $17,850,000

January 1, 2023 $1,117,500

January 1, 2032

$3,045,000

January 1, 2024 $1,162,500

January 1, 2033

$3,170,000

Interest Rate: Variable

January 1, 2025 $ 592,500

January 1, 2034

$1,617,500

Combined Utility System Revenue Bonds, Series 2013A Issued: August 7, 2013

January 1, 2026 $ 170

0

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Debt Service Revenue Bond Debt Schedules (Continued)

Combined Utility System Revenue Bonds, Series 2013B Issued: August 2013 Amount of Issue: $9,000,000 Remaining Principal Outstanding as of July 1, 2017: $7,802,500 Interest Rate: Variable

January 1, 2018

$372,500

January 1, 2026

$510,000

January 1, 2019

$387,500

January 1, 2027

$530,000

January 1, 2020

$402,500

January 1, 2028

$552,500

January 1, 2021

$420,000

January 1, 2029

$575,000

January 1, 2022

$437,500

January 1, 2030

$597,500

January 1, 2023

$455,000

January 1, 2031

$622,500

January 1, 2024

$472,500

January 1, 2032

$647,500

January 1, 2025

$490,000

January 1, 2033

$330,000

October 1, 2017

$191,542

October 1, 2026

$223,622

State Revolving Funds, July 2014

October 1, 2018

$194,856

October 1, 2027

$227,517

October 1, 2019

$198,230

October 1, 2028

$231,483

Issued: July 2014

October 1, 2020

$201,665

October 1, 2029

$235,521

Amount of Issue: $4,380,667

October 1, 2021

$205,163

October 1, 2030

$239,632

October 1, 2022

$208,723

October 1, 2031

$243,818

October 1, 2023

$212,348

October 1, 2032

$248,080

October 1, 2024

$216,039

October 1, 2034

$252,419

October 1, 2025

$219,797

October 1, 2035

$256,838

Remaining Principal Outstanding as of July 1, 2017: $4,007,292 Interest Rate: Variable (1.73% blended)

July 1, 2017

$211,566

July 1, 2027

$255,721

State Revolving Funds, September 2014

July 1, 2018

$215,614

July 1, 2028

$260,614

July 1, 2019

$219,740

July 1, 2029

$265,601

Issued: September 2014

July 1, 2020

$223,945

July 1, 2030

$270,684

Amount of Issue: $4,956,563

July 1, 2021

$228,230

July 1, 2031

$275,863

Remaining Principal Outstanding as of July 1, 2016: $4,718,272

July 1, 2022

$232,598

July 1, 2032

$281,142

July 1, 2023

$237,049

July 1, 2033

$286,522

Interest Rate: Variable (1.73% blended)

July 1, 2024

$241,585

July 1, 2034

$292,005

July 1, 2025

$246,208

July 1, 2035

$222,665

July 1, 2026

$250,919

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

171

Debt Service Revenue Bond Debt Schedules (Continued)

January 1, 2018

$

80,000

January 1, 2033

$4,437,500

January 1, 2019

$ 285,000

January 1, 2034

$5,725,000

January 1, 2020

$ 830,000

January 1, 2035

$4,190,000

January 1, 2021

$1,460,000

January 1, 2036

$2,805,000

January 1, 2022

$1,715,000

January 1, 2037

$2,905,000

January 1, 2023

$1,972,500

January 1, 2038

$3,040,000

January 1, 2024

$2,240,000

January 1, 2039

$3,195,000

Remaining Principal Outstanding as of July 1, 2017: $90,040,000

January 1, 2025

$2,850,000

January 1, 2040

$3,357,500

January 1, 2026

$3,497,500

January 1, 2041

$3,512,500

Interest Rate: Blended rate of 3.4%

January 1, 2027

$3,682,500

January 1, 2042

$3,642,500

January 1, 2028

$3,762,500

January 1, 2043

$3,760,000

January 1, 2029

$3,717,500

January 1, 2044

$3,887,500

January 1, 2030

$3,230,000

January 1, 2045

$4,045,000

January 1, 2031

$2,835,000

January 1, 2046

$4,240,000

January 1, 2032

$2,967,500

January 1, 2047

$2,172,500

Combined Utility System Revenue Bonds, Series 2016 Issued: October 5, 2016 Amount of Issue: $90,040,000

Laurel Street Elevated Tank 172

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Debt Service General Obligation Bonds The full faith, credit, and taxing power of the City are pledged for the payment of General Obligation Bonds.

General Obligation Bonds have interest payable semi-annually on the first of October and April, as well as a principal lump sum payable on the first of April. Highlights of outstanding General Obligation Bonds include:  Series 2008, with outstanding principal in the amount of $1,515,000, was used for construction of a new fire station.  Series 2011, with outstanding principal in the amount of $9,195,000, was issued to fund the General Obligation debt portion for the construction of the City’s Operations Center.  Series 2013A, with outstanding principal in the amount of $1,520,000, was used for the expansion of the City’s Law Center.  Series 2013B, with outstanding principal amount of $2,265,000, was a refinancing of two older General Obligation Bonds: 1997 and 2003. The 1997 Series was issued to complete the first phase of the Fire Master Plan, including construction of a new fire station and various improvements to the three existing fire stations; The 2003 Series was used for the construction of two new fire stations.  Series 2017, totaling $3,500,000, was issued to fund the renovation of the Fire Department Burn Building and the implementation of a Quiet Zone in downtown.

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

173

Debt Service General Obligation Bond Debt Schedules

General Obligation Bonds, 2008 April 1, 2018

$185,000

April 1, 2022

$225,000

April 1, 2019

$195,000

April 1, 2023

$240,000

April 1, 2020

$205,000

April 1, 2024

$250,000

April 1, 2021

$215,000

April 1, 2018

$330,000

April 1, 2028

$495,000

April 1, 2019

$345,000

April 1, 2029

$515,000

General Obligation Bonds, 2011

April 1, 2020

$355,000

April 1, 2030

$535,000

April 1, 2021

$365,000

April 1, 2031

$555,000

Issued: August 3, 2011

April 1, 2022

$375,000

April 1, 2032

$580,000

Amount of Issue: $10,700,000

April 1, 2023

$395,000

April 1, 2033

$605,000

April 1, 2024

$415,000

April 1, 2034

$630,000

April 1, 2025

$430,000

April 1, 2035

$660,000

April 1, 2026

$450,000

April 1, 2036

$690,000

April 1, 2027

$470,000

Issued: December 30, 2008 Amount of Issue: $2,700,000 Remaining Principal Outstanding as of July 1, 2017: $1,515,000 Interest Rate: 4.3%

Remaining Principal Outstanding as of July 1, 2017: $9,195,000

Rock Hill Law Center Expansion 174

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Debt Service General Obligation Bond Debt Schedules (Continued) April 1, 2018

$70,000

April 1, 2026

$95,000

April 1, 2019

$75,000

April 1, 2027

$100,000

April 1, 2020

$75,000

April 1, 2028

$100,000

April 1, 2021

$80,000

April 1, 2029

$105,000

April 1, 2022

$85,000

April 1, 2030

$110,000

April 1, 2023

$85,000

April 1, 2031

$115,000

April 1, 2024

$90,000

April 1, 2032

$120,000

April 1, 2025

$90,000

April 1, 2033

$125,000

April 1, 2018

$460,000

April 1, 2021

$340,000

Issued: June 27, 2013

April 1, 2019

$355,000

April 1, 2022

$385,000

Amount of Issue: $3,935,000

April 1, 2020

$350,000

April 1, 2023

$375,000

April 1, 2018

$263,000

April 1, 2026

$162,000

April 1, 2019

$287,500

April 1, 2027

$167,000

April 1, 2020

$295,000

April 1, 2028

$171,000

April 1, 2021

$303,000

April 1, 2029

$176,000

Amount of Issue: $3,500,000

April 1, 2022

$312,000

April 1, 2030

$181,000

Remaining Principal Outstanding as of July 1, 2017: $3,500,000

April 1, 2023

$320,000

April 1, 2031

$185,000

April 1, 2024

$329,000

April 1, 2032

$191,000

Interest Rate: 2.72%

April 1, 2025

$158,000

General Obligation Bonds, 2013A Issued: June 27, 2013 Amount of Issue: $1,800,000 Remaining Principal Outstanding as of July 1, 2017: $1,520,000

General Obligation Bonds, 2013B

Remaining Principal Outstanding as of July 1, 2017: $2,265,000

General Obligation Bonds, 2017 Issued: January 27, 2017

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

175

Debt Service General Obligation Bond Debt Schedules

Rock Hill Fire Department Burn Building

Construction of Rock Hill Fire Department Training Tower 176

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Debt Service Tax Increment Financing BondsTaxes generated from the construction of businesses in these areas are being used to retire the debt on these bonds. To the extent that debt service requirements on the bonds exceed the incremental property tax revenues, utility net revenues are pledged. Currently, Rock Hill has three Tax Increment Bond areas: Downtown, Textile Corridor, and Red River. The debt service requirements for these three tax increment districts will be met through the construction of businesses and utilities generated by those businesses. The debt service payments for each TIF bond are due at different times throughout the year. Highlights of outstanding Tax Increment Bonds:        

Series 2012, outstanding principal of $2,380,000.

Series 2012A, outstanding principal of $1,782,000.

Series 2013A, outstanding principal of $6,315,000.

Series 2013B, outstanding principal of $3,095,000.

Series 2014, outstanding principal of $2,725,000.

Series 2015, outstanding principal of $7,812,000.

Series 2015B, outstanding principal of $6,624,000.

Series 2016A (MID), outstanding principal of $2,843,000.

The 2014 Tax Increment Financed Bond was a refinancing of the 2011A Textile TIF, and the Series 2015 was a refinancing of the 2009 Red River TIF, both which were done in order to take advantage of lower interest rates. The 2015B Tax Increment Financed Bond and 2016A Municipal Improvement District Assessment Revenue Bond were issued to construct major roads in the next phases of the Riverwalk Development.

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

177

Debt Service Downtown/Textile Corridor TIF Districts

178

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Debt Service TIF Debt Schedules—Downtown/Textile Corridor Tax Increment Bonds, Series 2012 (Textile Corridor)

May 1, 2018

$150,000

May 1, 2024

$205,000

May 1, 2019

$160,000

May 1, 2025

$215,000

Issued: May 18, 2012

May 1, 2020

$165,000

May 1, 2026

$220,000

Amount of Issue: $3,035,000

May 1, 2021

$170,000

May 1, 2027

$230,000

Remaining Principal Outstanding as of July 1, 2017: $2,380,000

May 1, 2022

$180,000

May 1, 2028

$240,000

May 1, 2023

$200,000

May 1, 2029

$245,000

April 1, 2018

$80,000

April 1, 2029

$300,000

April 1, 2019

$95,000

April 1, 2030

$325,000

Tax Increment Bonds, Series 2013A

April 1, 2020

$110,000

April 1, 2031

$350,000

April 1, 2021

$125,000

April 1, 2032

$400,000

Issued: July 2, 2013

April 1, 2022

$155,000

April 1, 2033

$425,000

Amount of Issue: $6,315,000

April 1, 2023

$160,000

April 1, 2034

$450,000

Remaining Principal Outstanding as of July 1, 2017: $6,315,000

April 1, 2024

$180,000

April 1, 2035

$490,000

April 1, 2025

$200,000

April 1, 2036

$520,000

Interest Rate: 4.89%

April 1, 2026

$215,000

April 1, 2037

$585,000

April 1, 2027

$260,000

April 1, 2038

$620,000

April 1, 2028

$270,000

Interest Rate: 3.62-4.42%

Fountain Park City of Rock Hill, South Carolina—Fiscal Year 2017/2018

179

Debt Service TIF Debt Schedules—Downtown/Textile Corridor (Continued)

April 1, 2018

$75,000

April 1, 2029

$145,000

April 1, 2019

$80,000

April 1, 2030

$155,000

Tax Increment Bonds, Series 2013B

April 1, 2020

$85,000

April 1, 2031

$165,000

April 1, 2021

$90,000

April 1, 2032

$175,000

Issued: July 2, 2013

April 1, 2022

$95,000

April 1, 2033

$185,000

Amount of Issue: $3,360,000

April 1, 2023

$105,000

April 1, 2034

$200,000

April 1, 2024

$110,000

April 1, 2035

$210,000

April 1, 2025

$115,000

April 1, 2036

$225,000

April 1, 2026

$125,000

April 1, 2037

$235,000

April 1, 2027

$130,000

April 1, 2038

$250,000

April 1, 2028

$140,000

May 1, 2018

$190,000

May 1, 2024

$225,000

May 1, 2019

$190,000

May 1, 2025

$235,000

May 1, 2020

$200,000

May 1, 2026

$245,000

May 1, 2021

$205,000

May 1, 2027

$260,000

May 1, 2022

$215,000

May 1, 2028

$265,000

May 1, 2023

$220,000

May 1, 2029

$275,000

Remaining Principal Outstanding as of July 1, 2017: $3,095,000 Interest Rate: 6.13%

Tax Increment Bonds, Series 2014 Issued: May 1, 2014 Amount of Issue: $3,250,000 Remaining Principal Outstanding as of July 1, 2017: $2,725,000 Interest Rate: 3.04%

180

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Debt Service TIF Debt Schedules—Downtown/Textile Corridor (continued)

Tax Increment Bonds, Catawba Regional Brownfields #1 Issued: July 2, 2013 Amount of Issue: $455,000 Remaining Principal Outstanding as of July 1, 2017: $164,437

September 30, 2017 March 30, 2018 September 30, 2018 March 30, 2019

$23,141 September 30, 2019

$23,607

$23,257

March 30, 2020

$23,725

$23,373 September 30, 2020

$23,844

$23,490

Interest Rate: 1.00%

Tax Increment Bonds, Catawba Regional Brownfields #2 Issued: July 2, 2013 Amount of Issue: $350,000 Remaining Principal Outstanding as of July 1, 2017: $144,203

December 27, 2017

$17,712

December 27, 2019

$18,069

June 27, 2018

$17,801

June 27, 2020

$18,160

December 27, 2018

$17,890

December 27, 2020

$18,250

June 27, 2019

$17,979

June 27, 2021

$18,342

November 2017

$61,966

November 2017

$65,135

May 2018

$62,276

May 2018

$65,461

November 2017

$62,588

November 2017

$65,788

May 2018

$62,901

May 2018

$66,117

November 2017

$63,215

November 2017

$66,448

May 2017

$63,531

May 2018

$66,780

November 2017

$63,849

November 2017

$67,114

May 2018

$64,168

May 2018

$67,450

November 2017

$64,489

November 2017

$67,787

May 2018

$64,811

May 2017

$68,126

Interest Rate: 1.00%

Tax Increment Bonds, Catawba Regional Brownfields #3 Issued: July 2, 2013 Amount of Issue: $1300,000 Remaining Principal Outstanding as of July 1, 2017: $1,300,000 Interest Rate: 1.00%

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

181

Debt Service TIF Debt Schedules—Red River

182

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Debt Service TIF Debt Schedules—Red River

Tax Increment Bonds, Series 2012A (Riverwalk MID) Issued: December 21, 2012 Amount of Issue: $2,080,000 Remaining Principal Outstanding as of July 1, 2017: $1,782,000

May 1, 2018

$93,000

May 1, 2024

$150,000

May 1, 2019

$101,000

May 1, 2025

$162,000

May 1, 2020

$110,000

May 1, 2026

$174,000

May 1, 2021

$119,000

May 1, 2027

$187,000

May 1, 2022

$129,000

May 1, 2028

$201,000

May 1, 2023

$139,000

May 1, 2029

$217,000

Interest Rate: 5.00%

Tax Increment Bonds, Series 2015A (Red River)

May 1, 2018

$559,000

May 1, 2024

$657,000

Issued: May 1, 2015

May 1, 2019

$574,000

May 1, 2025

$675,000

May 1, 2020

$590,000

May 1, 2026

$693,000

May 1, 2021

$606,000

May 1, 2027

$712,000

May 1, 2022

$622,000

May 1, 2028

$732,000

May 1, 2023

$640,000

May 1, 2029

$752,000

Amount of Issue: $8,885,000 Remaining Principal Outstanding as of July 1, 2017: $7,812,000 Interest Rate: 2.74%

Riverwalk Development

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

183

Debt Service TIF Debt Schedules—Red River

Tax Increment Bonds, Series 2015B (Red River)

May 1, 2018

$411,000

May 1, 2025

$523,000

May 1, 2019

$426,000

May 1, 2026

$541,000

May 1, 2020

$441,000

May 1, 2027

$560,000

Amount of Issue: $7,500,000

May 1, 2021

$456,000

May 1, 2028

$580,000

Remaining Principal Outstanding as of July 1, 2017: $6,624,000

May 1, 2022

$472,000

May 1, 2029

$600,000

May 1, 2023

$488,000

May 1, 2030

$621,000

Interest Rate: 3.49%

May 1, 2024

$505,000

Tax Increment Bonds, Series 2016A (Riverwalk MID)

May 1, 2018

$228,000

May 1, 2023

$316,000

Issued: September 29, 2016

May 1, 2019

$244,000

May 1, 2024

$336,000

Amount of Issue: $3,105,000

May 1, 2020

$261,000

May 1, 2025

$357,000

May 1, 2021

$279,000

May 1, 2026

$379,000

May 1, 2022

$297,000

May 1, 2027

$146,000

Issued: September 15, 2015

Remaining Principal Outstanding as of July 1, 2017: $2,843,000 Interest Rate: 4.00%

184

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Debt Service

Stormwater Bonds All Stormwater revenue bonds are payable from the net revenues of the City’s Stormwater system. The various bond indentures contain significant limitations and restrictions on annual debt service requirements and minimum revenue bond coverage. The City is in compliance with all such significant financial limitations and restrictions. Highlights of outstanding Stormwater Revenue Bonds consist of:    

Series 2006 (April), outstanding principal of $2,674,523.

Series 2006 (July), outstanding principal of $1,460,437.

Series 2015 (April), outstanding principal of $3,381,249.

Series 2017 (June), outstanding principal of $4,834,164

As the City learns more about its Stormwater system, there is an increased need to tackle some of the larger stormwater issues. Therefore, the City is exploring financing options to fund some large future stormwater projects.

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

185

Debt Service Stormwater Debt Schedules Stormwater Bonds, April 2006

April 1, 2018

$279,764

April 1, 2023

$312,977

April 1, 2019

$286,111

April 1, 2024

$320,079

Amount of Issue: $5,310,559

April 1, 2020

$292,604

April 1, 2025

$327,341

Remaining Principal Outstanding as of July 1, 2017: $2,674,523

April 1, 2021

$299,243

April 1, 2026

$250,371

April 1, 2022

$306,033

Issued: April 1, 2006

Interest Rate: 3.2% then 2.25% - new rate issued November 15, 2011

Major Stormwater Improvements in Bristol Park

186

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

Debt Service Stormwater Debt Schedules

Stormwater Bonds, July 2006 Issued: July 25, 2006

May 1, 2018

$146,595

May 1, 2023

$163,999

May 1, 2019

$149,922

May 1, 2024

$167,720

May 1, 2020

$153,324

May 1, 2025

$171,526

Amount of Issue: $2,850,000

May 1, 2021

$156,803

May 1, 2026

$175,418

Remaining Principal Outstanding as of July 1, 2017: $1,460,437

May 1, 2022

$160,361

August 1, 2026

$14,769

Interest Rate: 2.25%

February 1, 2018

$89,663

February 1, 2033

$120,942

February 1, 2019

$91,469

February 1, 2034

$123,379

February 1, 2020

$93,313

February 1, 2035

$125,865

Stormwater Bonds, April 2015

February 1, 2021

$95,193

February 1, 2036

$128,401

February 1, 2022

$97,111

February 1, 2037

$130,988

Issued: April 30, 2015, recalculated November 2016

February 1, 2023

$99,068

February 1, 2038

$133,628

February 1, 2024

$101,064

February 1, 2039

$136,320

February 1, 2025

$103,101

February 1, 2040

$139,067

February 1, 2026

$105,178

February 1, 2041

$141,870

February 1, 2027

$107,298

February 1, 2042

$144,728

February 1, 2028

$109,460

February 1, 2043

$147,645

February 1, 2029

$111,665

February 1, 2044

$150,620

February 1, 2030

$113,915

February 1, 2045

$153,655

February 1, 2031

$116,211

November 1,2045

$ 51,881

February 1, 2032

$118,553

Amount of Issue: $3,526,780 Remaining Principal Outstanding as of July 1, 2017: $3,381,249 Interest Rate: 2.00%

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Debt Service Stormwater Debt Schedules

May 1, 2018

$50,875

May 1, 2034

$161,851

May 1, 2019

$123,629

May 1, 2035

$164,784

May 1, 2020

$125,869

May 1, 2036

$167,771

Stormwater Bonds, June 2017

May 1, 2021

$128,150

May 1, 2037

$170,811

May 1, 2022

$130,473

May 1, 2038

$173,906

Issued: June 26, 2017

May 1, 2023

$132,847

May 1, 2039

$177,058

Amount of Issue: $4,834,164

May 1, 2024

$135,244

May 1, 2040

$180,266

Remaining Principal Outstanding as of July 1, 2017: $4,834,164

May 1, 2025

$137,695

May 1, 2041

$183,533

May 1, 2026

$140,190

May 1, 2042

$186,859

Interest Rate: 1.80%

May 1, 2027

$142,731

May 1, 2043

$190,245

May 1, 2028

$145,317

May 1, 2044

$193,693

May 1, 2029

$147,951

May 1, 2045

$197,203

May 1, 2030

$150,632

May 1, 2046

$200,777

May 1, 2031

$153,362

May 1, 2047

$204,415

May 1, 2032

$156,141

February 1, 2048

$120,915

May 1, 2033

$158,971

Installation of Headwall and Wingwall on Grand Oaks Drive

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Debt Service Hospitality Tax Bonds The Hospitality Tax is a fee imposed on the sale of prepared meals and beverages sold in establishments. These bonds are payable from the net revenues of the City’s Local Hospitality Tax. The various bond indentures contain significant limitations and restrictions on annual debt service requirements and minimum revenue bond coverage. The City is in compliance with all such significant financial limitations and restrictions. Highlights of outstanding Hospitality Tax Bonds consist of:    

Series 2013: BMX, outstanding principal of $4,820,000 Series 2013: Manchester Meadows, outstanding principal of $4,930,000 Series 2013: Glencairn Gardens, outstanding principal of $1,805,000 Series 2016: PRT capital projects, outstanding principal of $7,650,000

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Debt Service Hospitality Tax Revenue Bond Debt Schedules

April 1, 2018

$205,000

April 1, 2026

$300,000

April 1, 2019

$215,000

April 1, 2027

$315,000

April 1, 2020

$225,000

April 1, 2028

$330,000

April 1, 2021

$235,000

April 1, 2029

$350,000

Amount of Issue: $5,615,000

April 1, 2022

$245,000

April 1, 2030

$365,000

Remaining Principal Outstanding as of July 1, 2017: $4,820,000

April 1, 2023

$260,000

April 1, 2031

$385,000

April 1, 2024

$275,000

April 1, 2032

$405,000

Interest Rate: 2-5%

April 1, 2025

$285,000

April 1, 2033

$425,000

Hospitality Tax Revenue Bonds, BMX Issued: April 18,2013

2017 BMX World Championship Kick-Off Event in Fountain Park

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Debt Service Hospitality Tax Revenue Bond Debt Schedules

Hospitality Tax Revenue Bonds, Glencairn Gardens

April 1, 2018

$225,000

April 1, 2022

$270,000

Issued: April 18,2013

April 1, 2019

$235,000

April 1, 2023

$280,000

Amount of Issue: $2,650,000

April 1, 2020

$245,000

April 1, 2024

$295,000

Remaining Principal Outstanding as of July 1, 2017: $1,805,000

April 1, 2021

$255,000

April 1, 2018

$525,000

April 1, 2022

$625,000

April 1, 2019

$545,000

April 1, 2023

$655,000

April 1, 2020

$565,000

April 1, 2024

$690,000

April 1, 2021

$600,000

April 1, 2025

$725,000

Hospitality Tax Revenue Bonds, PRT capital projects

April 1, 2018

$480,000

April 1, 2025

$550,000

April 1, 2019

$485,000

April 1, 2026

$560,000

Issued: February 24, 2016

April 1, 2020

$495,000

April 1, 2027

$575,000

Amount of Issue: $8,100,000

April 1, 2021

$505,000

April 1, 2028

$585,000

Remaining Principal Outstanding as of July 1, 2017: $7,650,000

April 1, 2022

$520,000

April 1, 2029

$595,000

April 1, 2023

$530,000

April 1, 2030

$610,000

Interest Rate: 2.05%

April 1, 2024

$540,000

April 1, 2031

$620,000

Interest Rate: 2-5%

Hospitality Tax Revenue Bonds, Manchester Meadows Issued: April 18,2013 Amount of Issue: $6,895,000 Remaining Principal Outstanding as of July 1, 2017: $4,930,000 Interest Rate: 2-5%

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Debt Service New Market Recovery Bonds Used to finance the Velodrome. In year 8, the A-1 loan will be refinanced for the principal value of $3,780,000. Also in year 8, the Principal of $1,200,000 will be forgiven. The A-2 loan will be interest only for the first eight years.

Giordana Velodrome Recovery Zone Designation Velodrome Loan A-1

Recovery Zone Designation Velodrome Loan A-2

Issued: August 2010

Issued: August 2010

Amount of Issue: $3,780,000

Amount of Issue: $20,000

Remaining Principal Outstanding as of July 1, 2017: $3,780,000

Remaining Principal Outstanding as of July 1, 2017: $20,000

Principal payments deferred until after 2018.

Interest payable semi-annually on the fifth of January and July.

Principal payments deferred until after 2018.

Payoff in 2051. Interest payable semi-annually on the fifth of January and July.

Recovery Zone Designation Velodrome Loan B Issued: August 2010 Amount of Issue: $1,200,000 Remaining Principal Outstanding as of July 1, 2017: $1,200,000 Principal forgiven in 2018. Interest payable semiannually on the fifth of January and July.

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Debt Service Equipment Lease Purchase Each fiscal year, the City has entered into a larger lease-purchase agreement for several cars and trucks. This continues to be a favorable method of vehicle and equipment acquisition. This type of debt is incurred on an annual basis in order to maintain our fleet according to a replacement schedule. Typically, vehicles that are financed in this way are at least $30,000 and have an estimated useful life of at least three years. In past years, the City took advantage of lower interest rates by refinancing some older lease purchase deals. City Council approved the execution of an Equipment Lease Purchase in late-August; however, the bid is still outstanding and will not be included in this year’s budget document.

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Debt Service Equipment Lease Purchase

Equipment Lease Purchase Agreement, 2010

February 1, 2018

$49,000 February 1, 2020

Amount of Issue: $2,100,000

February 1, 2019

$49,000

Equipment Lease Purchase Agreement, 2012B

February 1, 2018

$117,929

Amount of Issue: $825,500

February 1, 2019

$117,926

February 1, 2018

$122,100 February 1, 2021

$122,100

February 1, 2019

$122,100 February 1, 2022

$122,100

February 1, 2020

$122,100

$49,000

Remaining Principal Outstanding as of July 1, 2017: $147,000

Remaining Principal Outstanding as of July 1, 2017: $235,835

Equipment Lease Purchase Agreement, 2012C Amount of Issue: $1,221,000 Remaining Principal Outstanding as of July 1, 2017: $610,500

Equipment Lease Purchase Refinancing, 2013 Amount of Issue: $5,667,000 February 1, 2018

$595,000

Remaining Principal Outstanding as of July 1, 2017: $595,000 The 2013 Equipment Lease Purchase Refinancing includes:  2006 Suntrust WI-FI Equipment  2007 First Citizens Lease Purchase  2008A Suntrust AMI  2008B Suntrust Lease Purchase  2009 Suntrust Lease Purchase

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Debt Service Equipment Lease Purchase (Continued)

Equipment Lease Purchase Agreement, 2013A

February 1, 2018

$368,200

Amount of Issue: $1,841,000 Remaining Principal Outstanding as of July 1, 2017: $368,200

Equipment Lease Purchase Agreement, 2013B

February 1, 2018

$177,700 February 1, 2020

Amount of Issue: $1,244,000

February 1, 2019

$177,700

$177,800

Remaining Principal Outstanding as of July 1, 2017: $533,200

February 1, 2018

$825,296 February 1, 2022

$241,704

February 1, 2019

$825,296 February 1, 2023

$241,704

Amount of Issue: $5,655,000

February 1, 2020

$401,704 February 1, 2024

$241,704

Remaining Principal Outstanding as of July 1, 2017: $3,179,114

February 1, 2021

$401,704

Equipment Lease Purchase Agreement, 2014

February 1, 2018

$695,915 February 1, 2022

$286,847

Equipment Lease Purchase Agreement, 2015

February 1, 2019

$695,915 February 1, 2023

$112,244

Amount of Issue: $4,390,000

February 1, 2020

$695,915 February 1, 2024

$112,244

February 1, 2021

$286,847 February 1, 2025

$112,244

Remaining Principal Outstanding as of July 1, 2017: $2,998,170

February 1, 2018

$652,465 February 1, 2023

$241,939

Equipment Lease Purchase Agreement, 2016

February 1, 2019

$661,828 February 1, 2024

$138,730

Amount of Issue: $4,260,000

February 1, 2020

$671,325 February 1, 2025

$140,721

February 1, 2021

$680,958 February 1, 2026

$142,741

February 1, 2022

$238,516

Remaining Principal Outstanding as of July 1, 2017: $3,569,222

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Debt Service Equipment Lease Purchase (Continued)

February 1, 2018

$468,527 February 1, 2023

$512,743

Equipment Lease Purchase Agreement, 2016 (AMI)

February 1, 2019

$477,054 February 1, 2024

$522,075

Amount of Issue: $5,000,000

February 1, 2020

$485,736 February 1, 2025

$531,577

February 1, 2021

$494,577

$541,251

February 1, 2022

$503,578

Remaining Principal Outstanding as of July 1, 2017: $4,537,117

February 1, 2026

AMI Meter Installation

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Debt Service

FISCAL YEAR 17/18 18/19 19/20 20/21 21/22 22/23 23/24 24/25 25/26 26/27 27/28 28/29 29/30 30/31 31/32 32/33 33/34 34/35 35/36 36/37 37/38 38/39 39/40 40/41 41/42 42/43 43/44 44/45 45/46 46/47 47/48 48/49 49/50 50/51 TOTAL

General Fund Enterprise Fund Other Debt Total

PRINCIPAL $16,914,789 $15,826,353 $15,606,692 $15,035,376 $14,814,167 $14,905,195 $14,859,946 $14,332,855 $13,847,534 $13,105,085 $13,254,868 $13,589,588 $12,013,065 $11,395,308 $11,265,819 $10,854,603 $9,809,668 $8,457,518 $6,919,392 $6,284,888 $6,575,657 $5,971,538 $5,350,032 $4,686,142 $4,407,371 $4,098,718 $4,232,689 $4,396,785 $4,493,640 $2,377,954 $122,022 $1,163 $1,231 $1,303

INTEREST $8,367,814 $11,471,441 $10,955,544 $10,426,382 $9,929,725 $9,381,387 $8,807,638 $8,269,956 $7,736,083 $7,181,524 $6,627,595 $6,025,805 $5,378,896 $4,837,754 $4,359,915 $3,872,016 $3,398,666 $2,972,350 $2,613,499 $2,321,170 $2,019,607 $1,674,122 $1,364,857 $1,102,963 $920,820 $783,344 $659,372 $516,089 $329,447 $113,427 $1,194 $196 $128 $56

$299,808,955 $144,420,783 $444,229,737

Fiscal Year 2018 Principal Interest $1,308,000 $ 670,404 $8,107,505 $5,129,671 $7,499,284 $2,567,739 $16,914,789 $8,367,814

City of Rock Hill, South Carolina—Fiscal Year 2017/2018

TOTAL $25,282,603 $27,297,794 $26,562,236 $25,461,758 $24,743,893 $24,286,582 $23,667,585 $22,602,811 $21,583,618 $20,286,610 $19,882,463 $19,615,394 $17,391,962 $16,233,062 $15,625,734 $14,726,619 $13,208,334 $11,429,868 $9,532,891 $8,606,059 $8,595,264 $7,645,660 $6,714,889 $5,789,105 $5,328,190 $4,882,062 $4,892,061 $4,912,874 $4,823,087 $2,491,382 $123,215 $1,359 $1,359 $1,359

Fiscal Year 2019 Principal Interest $1,257,000 $ 613,814 $7,884,102 $8,702,017 $6,685,251 $2,155,610 $15,826,353 $11,471,441

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Capital Summary Fiscal Year 2018 Capital Improvement Projects

Fiscal Year 2019 Capital Improvement Projects

The direct impact of capital improvements on the Fiscal Year 2018 budget is $20,904,128 in the operating budget. This figure includes pay-go capital projects, lease payments, utility infrastructure, computer infrastructure, etc. For Fiscal Year 2018, there are significant routine and non-routine capital expenditures that will have an additional impact on the operating budget beyond the direct cost, including $10.5 million to complete the final phase of the automated metering instrumentation system and $4.2 million to cover the completion of two major stormwater projects from the stormwater master plan. Fiscal Year 2018 includes capital highlights such as:

The direct impact of capital improvements on the Fiscal Year 2018 budget is $23,961,991 in the operating budget. This figure includes PAY-go capital projects, lease payments, utility infrastructure, computer infrastructure, etc. Although the year two budget is not approved, it does allow the City to be proactive in funding its needs, including capital. There are significant routine and non-routine capital expenditures that will have an additional impact on the operating budget beyond the direct cost, including a $57 million utility revenue bond that will be issued in the fall to fund the first phase of the expansion of the wastewater plant. Fiscal Year 2019 includes capital highlights such as:

  

  

  

Building Maintenance—$242,000 India Hook/Celanese CMAQ Project—$200,000 Stormwater Infrastructure Improvements— $816,783 Water Infrastructure Improvements—$2,016,212 Electric Infrastructure Improvements —$2,306,662 Wastewater Infrastructure Improvements — $4,745,875

  

Building Maintenance—$242,000 India Hook/Celanese CMAQ Projects—$400,000 Stormwater Infrastructure Improvements— $720,000 Electric Infrastructure Improvements—$2,000,000 Water Infrastructure Improvements—$2,750,000 Wastewater Infrastructure Improvements — $4,745,875

Breakdown of City Expenses

FY2015 and FY2016 are actual expenses. FY2017, FY2018, FY2019 are budgeted expenses.

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Capital Improvement Plan Enterprise Funds Rate Plan Past Rate Increases In the 2000’s, the City began proactively planning for future plant expansions for water and wastewater treatment.

Originally, the plant expansions were planned for Fiscal Year 2013. Knowing that the plant expansions would be very expensive, the City created a plan in order to have small, incremental rate increases over many years. These increases were designed to avoid rate shock to our customers by raising the necessary funding to pay the ultimate debt service over time.

Over the course of time, however, the projected date for the large bond issuance for water and wastewater plant expansions slipped. This was due to a number of reasons. One of the biggest factors was weak revenue growth.

Growth in electric revenues was hampered by yearly purchased power increases. Additionally, water revenues began declining due to a mentality shift in water consumption. For three years, from 2007 to 2010, the City was in a drought, and the citizens learned conservation techniques. Equally, wastewater growth was very mild. The plant expansions were also delayed due to a greater cost, which included unexpected inflation. Additional state and federal regulations also increased the cost. Estimated costs for expansion of our facilities, all improvements needed to manage the anticipated demand on our system due to growth, continued to climb, making a different approach to funding necessary. During 2015, a consultant was hired to complete a rate study which provided a proposal on how to best accommodate the needs of the system in a way that was equitable to our customers. Beginning in Fiscal Year 2017, a water and wastewater rate restructure initially decreased the water base charge and implemented tiers based on consumption to reflect industry standards. In addition, a wastewater base decrease with an increase to the volumetric charge was also implemented. Combining higher rates for higher consumption with increases to impact fees for new development, the approach put more of the cost of expanding the system on those responsible for the growth of the system.

Proposed Rate Increases In preparing for future debt service, City leaders wanted to ensure there was a reasonable plan for generating more revenue. The schedule included on the next page shows rate increase proposals in order to fund future debt service. In Fiscal Year 2017 alone, the combined utility system issued $90 million in new debt to expand our electric, water and wastewater facilities, with an anticipated total of $171 million going towards expansion of the wastewater treatment plant over the next ten years. The combined base and volumetric charge for water actually resulted in a 9.1% increase for the average inside, residential customer in FY 2018. Currently, the combined base and volumetric increase for the average inside, residential water customer is projected at 5.6% in FY 2019 and 7.9% in FY 2021. Volumetric rates are projected to stabilize in FY 2021, and the base increase for FY 2022 is projected at 4.3% for the average inside, residential customer. The combined base and volumetric charge for wastewater is 2.99% in FY 2018 but is projected at approximately 3% each year through FY 2024. For the first time in 18 years, neither Rock Hill customers nor the City saw an electric rate increase. Over the past twenty years, the City’s electric system has absorbed over $208 million worth of rate increases from PMPA, but because there was no PMPA rate increase this year, the City was able to keep electric rates stable. Future budgets only include projected wholesale power rate increases, which range from 1% to 2.5% each year.

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Capital Improvement Plan Enterprise Funds Rate Plan Proposed Rate Increases FY2018-2022

The City will continue to monitor growth, revenue, and capital projections in a way that best prepares our community for needed improvements. The subsequent pages specifically outline existing bonds and the projects associated with them, as well as the upcoming pay-as-you-go projects for electric, water, and wastewater funds.

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CAPITAL IMPROVEMENT PLAN Fiscal Year 2018-2022 201

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The City will expand the capacity of its wastewater treatment plant from 36 to 48 mgd to meet consumer demands.

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Capital Improvement Plan

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Capital Improvement Plan

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Personnel Summary This personnel summary provides a headcount of all full-time and part-time staff in all funds. The approved Fiscal Year 2018 budget includes 4 new positions, all of which were added to the Enterprise Funds. The City has worked efficiently with given staff in the past, but increased service needs resulting from the expansion of our water and wastewater treatment plants have created the need for additional staff. The City remains dedicated to providing Quality services with a growing population. This is demonstrated by the trend line representing the number of employees per 1,000 population in the chart below.

New Positions—FY 2018 Enterprise Funds  Electronic Service Tech II—Electric  Engineering Tech II—Electric  Water/Wastewater Superintendent— Wastewater • Maintenance Technician III—Wastewater

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Personnel Summary Position Summary By Fund FY2015/16

FY2016/17

FY2017/18

FY2018/19

Approved

Approved

Approved

Projected

General Fund

770

760

758

788

Stormwater Fund

14

14

14

14

Electric Fund

94

106

110

113

Water Fund

31

33

34

39

Wastewater

39

38

39

39

Total Approved Positions

948

951

955

993

Office of Management

23

22

22

22

Judicial

17

17

17

17

General Services - Fund 500

36

43

41

41

Human Resources

10

10

9

9

Housing & Neighborhood Services

19

20

21

21

Police

203

204

204

204

Fire

124

124

124

124

Planning & Development

35

35

36

36

Public Works

66

67

67

67

Finance

46

27

26

26

Parks, Recreation, and Tourism

153

153

153

183

Housing Authority

26

26

26

26

Economic and Urban Development

12

12

12

12

Stormwater Fund

14

14

14

14

Electric Fund

94

106

110

113

Water Fund

31

33

34

39

Wastewater Fund

39

38

39

39

Total Citywide

948

951

955

993

Fund

Departmental Overview

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Budget Ordinance

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Appendix GLOSSARY OF TERMS Accounting System: The total set of records and procedures which are used to record, classify, and report information on the financial status and operations of an entity.

Accounts Payable: A liability account reflecting amounts on open account owing to private persons or organizations for goods and services received by a government (but not including amounts due to other funds of the same government or to other governments).

Accounts Receivable: An asset account reflecting amounts owing to open accounts from private persons or organizations for goods and services furnished by a government.

Accrual Basis of Accounting: A basis of accounting in which transactions (debts and credits) are recognized at the time they are incurred, as opposed to when cash is received or spent.

Activity: A specific and distinguishable line of work performed by one or more organizational component of a government for the purpose of accomplishing a function for which the government is responsible (i.e. The Police Department is an activity within the public safety function).

Adoption: Formal action by the City Council that sets the spending limits for the fiscal year.

Ad Valorem: Latin for “value of”. Refers to the tax assessed against real (land and buildings) and personal (equipment and furniture) property.

Allocation: The portion of an appropriation which is designated for expenditure by specific organization units and/or for specific purposes.

Amortization: Repayment of principal over the course of time for a loan.

Annual Operating Budget: The City’s plan of current expenditures and the proposed means of financing them. The annual operating budget is the primary controlling document for most of the City’s spending, financing, and/or acquisition activities.

Appropriation: The legal authorization granted by a legislative body (the City Council) to make expenditures and to incur obligations for specific purposes. An appropriation is usually limited in both amount and time.

Appropriation Ordinance: The City’s legal instrument by which budgets are set and adopted on a line-item basis.

Arbitrage: The interest earnings derived from invested bond proceeds or debt service fund balances.

Assessed Valuation: The estimated value placed on real and personal property by the chief appraiser of the appraisal district as the basis for levying property taxes. All appraisal activity is the responsibility of The York County Assessor's Office.

Audit: A methodical examination of the use of resources. It concludes in a written report of its findings, and it is a test of management's accounting system to determine the extent to which internal accounting controls are both available and being used.

Balanced Budget: A budget in which current revenues equal current expenditures.

Balance Sheet: The basic financial statement which discloses the assets, liabilities, and equities of an entity at a specified date in conformity with GAAP. Bond: A written promise to pay a specified sum of money, called the face value or principal amount, at a specific date or dates in the future, called the maturity date(s), together with periodic interest at a specified rate.

Budget: A comprehensive financial plan of operation which incorporates an estimate of proposed expenditures for a given period and the proposed means of financing them.

Budget Calendar: The schedule of key dates or milestones which the City follows in the preparation and adoption of the budget.

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Appendix Budget Message: A general discussion of the proposed budget presented in writing as a part of the budget document. The budget message explains principal budget issues against the background of the present economy and financial experience in recent years.

Budgetary Control: The control or management of a governmental unit or enterprise in accordance with an approved budget for the purpose of keeping expenditures within the limitations of available appropriations and available revenues.

Capital Improvement Program (CIP): A plan for purchasing, leasing, and/or constructing the equipment or property needed to complete the City’s long-term improvement projects. The plan details by year (over a fixed number of years) for each project.

The plan also specifies the resources estimated to be available to pay for the project expenditures.

Capital Outlay: Equipment with a value in excess of $5,000 and an expected life of more than one year.

Capital Project: Construction, purchase or major renovation of City infrastructure with a cost of at least $20,000, or equipment purchase with a cost of at least $50,000, and which results in a fixed asset.

Cash Basis of Accounting: A basis of accounting under which revenues are recognized when cash is received and expenditures incurred when cash is paid.

Certificates of Participation (COPS): A financing instrument by which certificates or securities are sold to investors who underwrite a project. The issuance of COPs is secured by lease-purchase agreements to which the City is a party.

Consumer Price Index (CPI): A statistical description of price levels provided by the U.S. Department of Labor. The index is used as a measure of the increase in the cost of living.

Cost: The amount of money or other consideration exchanged for property or services. Costs may be incurred even before money is paid; that is, as soon as liability is incurred. Ultimately, however, money or other consideration must be given in exchange.

Current Assets: Those assets which are available or can be made readily available from current operations or to pay current liabilities. Those assets which will be used up or converted to cash within one year. Some examples are cash, temporary investments and taxes receivable which will be collected within one year.

Current Liabilities: Debt or other legal obligation arising out of transactions in the past which must be liquidated, renewed, or refunded within one year.

Current Taxes: Taxes levied and due within one year.

Debt: An obligation resulting from borrowed money or from the purchase of goods and services. Debts of government include bonds and notes.

Debt Limit: The maximum amount of general obligated debt which is legally permitted. The State of South Carolina forbids cities from incurring debt in excess of 8% of the total assessed valuation of taxable property within the City.

Debt Service: The payment of principal and interest on borrowed funds, such as bonds.

Debt Service Requirement: The amount of money required to pay the interest currently due on outstanding debt, and/or principal portion due on debt maturing in the up-coming year. The city’s debt service requirement may also include required annual contributions to sinking funds set up to accumulate monies for the retirement of term bonds.

Delinquent Taxes: Taxes that remain unpaid on and after the date they are due and which include a penalty for nonpayment.

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Appendix Department: A major administrative unit of the City which manages an operation or group of related operations within a functional area.

Depreciation: The decrease in value of physical assets due to use and the passage of time.

Division: A sub-unit of a Department having responsibility for a specific function within the Department.

Encumbrance: Commitments related to unperformed contracts for goods or services. Encumbrances represent the estimated amount of expenditures ultimately to result if the unperformed contracts are completed.

Encumbrances are used for budgetary purposes only and are not expenditures under generally accepted accounting principles (GAAP).

Enterprise Fund: A fund established to account for operations: (a) financed through user charges and operated in a manner similar to private businesses, where the intent is to cover the cost of providing goods and services to the general public on a continuing basis; or (b) where the governing body has decided that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, or other purposes. The City’s Enterprise Funds are for water, wastewater, storm water, and electric utilities.

Estimated Revenue: The amount of projected revenue to be collected during the fiscal year.

Exempt: Personnel not eligible to receive overtime pay and who are expected to put in whatever hours are necessary to complete their job assignments. Compensatory time off, as partial compensation for overtime hours worked, may be allowed by the respective department head.

Expenditures/Expenses: The amount of cash paid or to be paid for a service rendered, goods received or an asset purchased.

Federal Emergency Management Agency (FEMA): A federal agency that provides disaster relief.

Fiscal Year (FY): A 12-month period to which the annual operating budget applies and at the end of which a government determines its financial position and the results of its operations. The City of Rock Hill’s fiscal year begins July 1st and ends the following June 30th.

Fixed Asset: Assets of a long-term character which are intended to continue to be held or used, such as land, buildings, improvements other than buildings, machinery and equipment.

Full Time Equivalent (F.T.E.): Number of staff positions calculated on the basis that one FTE equates to 2080 hours a year.

Full Accrual Basis of Accounting: The method of accounting where revenues are recognized when earned, expenditures are recognized when incurred and fixed assets are depreciated over their estimated useful life. All enterprise and internal service funds are accounted for using this method of accounting.

Fund: A fiscal and accounting entity that has a self-balancing set of accounts recording cash and other financial resources, together with all related liabilities and residual equities or balances, and changes therein, which are segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions, or limitations.

Fund Balance: The difference between governmental fund assets and liabilities, also referred to as fund equity.

GASB 34: Statement number 34 issued by Governmental Accounting Standards Board (GASB). A new reporting model that will require government financial statements to be written in a format similar to private business.

Generally Accepted Accounting Principles (GAAP): A body of accounting and financial reporting standards set by the Governmental Accounting Standards Board (GASB) for state and local governments.

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Appendix General Fund: The fund used to account for all financial resources except those required to be accounted for in another fund.

General Ledger: A book, file or other device which contains the accounts needed to reflect the financial position and the results of operations of an entity. In double entry bookkeeping, the debits and credits in the general ledger are equal; therefore, the debit balances equal the credit balances.

General Obligation (GO) Bonds: When the City pledges its full-faith and credit to the repayment of the bonds it issues, then those bonds are general obligation (G.O.) bonds. Sometimes the term is used to refer to bonds which are repaid from taxes and other general revenue.

Goal: A statement of broad direction, purpose or intent on the needs of the community. A goal is general and timeless.

Governmental Accounting Standards Board (GASB): The authoritative accounting and financial reporting standardsetting body for government entities.

Governmental Funds: Those funds through which more governmental functions typically are financed. The acquisition, use and financial resources and the related current liabilities are accounted for through governmental funds (General, Special Revenue, Capital Projects, and Debt Service Funds).

Grant: A contribution by a government or other organization to support a particular function. Grants may be classified as either categorical or block, depending upon the amount of discretion allowed the grantee.

Infiltration & Inflow (I&I): A situation where storm water enters the sewer system.

Interfund Transfers: Amounts transferred from one fund to another, generally for expenses incurred but paid from another fund for services rendered or for account tracking purposes.

Intergovernmental Revenue: Revenue received from other governments, whether local, state or federal, usually in the form of grants, entitlements, shared revenues or payments in lieu of taxes.

Insurance Service Office (ISO): Provides ratings based on industry standards for fire services.

Kilovolt (KV): Equals 1,000 volts of electricity.

Kilovolt-ampere (KVA): The unit of measurement for power used for circuit sizing.

Levy: To impose taxes, special assessments, or service charges for the support of City activities.

Long Term Debt: Any not matured debt that is not a fund liability since it is not currently due, such as outstanding bonds issued by the City.

Maintenance and Operation (M&O) Costs: The day-to-day operating and maintenance cost of a municipality including such things as personnel, gas, electric utility bills, telephone expense, reproduction costs, postage, and vehicle maintenance.

Mil: A tax rate based on the valuation of property. A tax rate of one mil produces one dollar of taxes on each $1,000 of property valuation.

Modified Accrual Accounting: A basis of accounting in which expenditures are accrued but revenues are accounted for on a cash basis. This accounting technique is a combination of cash and accrual accounting since expenditures are immediately incurred as a liability while revenues are not recorded until they are actually received or are "measurable" and available. It is recommended as the standard for most governmental funds.

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Appendix Nephelometric Turbidity Units (NTU): The scientific unit of measure for fine particles in water.

Net Assets: Total assets minus total liabilities.

Non-Exempt: Personnel eligible to receive overtime pay when overtime work has been authorized or requested by the supervisor.

Objectives: A desired outcome that is measurable and that can be achieved within a specific time frame.

Operating Budget: A financial plan for the City’s general operations, such as salaries, utilities and supplies.

Operating Transfers: Legally authorized transfers from a fund receiving revenue to the fund through which the resources are to be expended. An example would be the transfer of funds from the general fund or an enterprise fund to an internal service fund to finance the services provided by the internal service fund.

Ordinance: A formal legislative enactment by the governing board of a municipality (the City Council). If it is not in conflict with any higher form of law, such as, a State statute, a Federal law, or constitutional provision, it has the full force and effect of law within the boundaries of the municipality to which it applies. The difference between an ordinance and a resolution is that the latter requires less formality and has a lower legal status. Ordinarily, the City’s statutes or charter will specify or imply those legislative actions which must be by ordinance and those which may be by resolution.

Performance Budget: A budget format that includes (1) performance goals and objects and (2) demand, workload, efficiency, and effectiveness measures for each governmental program.

Performance Indicators: Statistical information which denotes the demands for services within a department/ division.

Performance Measurement: A method of evaluation that uses measurable performance of activities to determine achievement of goals.

Personnel Services: The costs associated with compensating employees for their labor.

Program: An organized set of related work activities that are directed toward a common purpose or goal and represent well-defined uses of city resources.

Property Tax: Property taxes are levied on both real and personal property according to the property's assessed valuation and the tax rate applied.

Proposed Budget: The budget as formulated and proposed by the budget-making authority (the City Manager). It is submitted to the legislative body (the City Council) for review and approval.

Proprietary Fund: A fund used to account for the proceeds of specific revenue sources that are legally restricted to expenditure for specified purposes.

Purchase Order: A document which authorizes the delivery of specified merchandise or the rendering of certain services and the making of a charge for them.

Reserve: An account used to earmark a portion of the fund balance. This may be done for various reasons. The most common are to indicate that a portion of the fund balance is not available for general expenditures or the amount has been legally segregated for specific future use.

Resolution: A special or temporary order of a legislative body (the City Council). This action requires less legal formality than an ordinance.

Resources: Total monies available for appropriation purposes to include revenues, fund balances, transfers, and other financing services (e.g. bond proceeds).

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Appendix Restricted Assets: Monies or other resources whose use is restricted by legal or contractual requirements. In governmental accounting, special treatment is given to restricted assets arising out of revenue bond indentures in enterprise funds.

Retained Earnings: An equity account reflecting the accumulated earnings of an enterprise or internal service fund. For budgeting purposes, the working capital definition of fund balance is used.

Revenue: Income received or anticipated from taxes or other sources, such as business licenses, user fees, fines, and investments.

Revenue Bonds: When a government issues bonds which do not pledge the full faith and credit of the jurisdiction, it issues limited liability revenue bonds. Typically, pledges are made to dedicate one specific revenue source to repay these bonds. Revenue bonds are not included in the 8% general obligation debt limit set by the State. The City’s revenue bonds are repayable from utility user charges.

Rock Hill-Fort Mill Area Transportation Study (RFATS): A transportation planning area in the northeast section of York County.

Rock Hill Economic Development Corporation (RHEDC): The purpose of which is to transition the community from dependence on the textile industry to more diverse economic opportunities.

Services: The costs related to services performed for the City by individuals, business, or utilities.

Sexual Assault Nurse Examiner (SANE): A grant from South Carolina Department of Public Safety’s Stop Violence Against Women program.

Short Term Debt: Any debt obligation of five years or less duration, such as short term loans or lease/purchase agreements for equipment purchases.

Sinking Fund: A group of accounts established to account for the accumulation of resources for, and the payment of, long-term bond principal and interest. Bonds issued in such a fund contain an agreement requiring the governmental unit to periodically set aside a sum which, when compounded with interest, will be sufficient to redeem the debt at the stated maturity date. Bonds of this type are commonly known as term bonds.

Special Assessments: A compulsory levy made against certain properties to defray part or all of the cost of a specific improvement or service deemed to primarily benefit those properties.

Special Revenue Fund: A fund used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes.

Supervisory Control and Data Acquisition (SCADA): A technology of automatic radio transmissions of data from a remote source to a receiving station for recording and analysis. Used in providing a monitoring mechanism for water and sewer systems.

Supplies: A cost category for minor items (individually priced at less than $500) required by departments to conduct their operations.

Supplemental Appropriation: An additional appropriation made by the legislative body (the City Council) after the budget year has begun.

Support Services: The expenditure class for charges paid by one City department or agency to another for services rendered or materials supplied.

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Appendix Taxes: Compulsory charges levied by a government for the purpose of financing services performed for the common benefit, such as police and fire services, planning, parks and recreation, etc. This term does not include specific charges such as special assessments or user charges.

Unencumbered Balance: The amount of an appropriation that is neither expended nor encumbered. It is essentially the amount of money still available for future use.

User Charges: The payment of a fee for direct receipt of a public service by the party benefiting from the service (e.g. fees paid for periodic refuse pick-up).

Working Capital: An amount calculated by subtracting current liabilities from current assets. An indicator of the liquidity of an entity.

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Appendix GLOSSARY OF ACRONYMS

ADA: Americans with Disabilities Act GIS: Geographic Information System BS: Balance Sheet ICMA: International City/County Management Association CA: Current Assets I & I: Infiltration and inflow CAFR: Comprehensive Annual Financial Report ISO: Insurance Service Office CALEA: Communications Assistance for Law Enforcement Act KV: kilovolt CL: Current Liabilities

KVA: Kilovolt-ampere

CIP: Capital Improvement Program

M & O: Maintenance and Operation Costs

CDBG: Community Development Block Grant

MGD: Millions Gallons per Day

COPS: Certificates of Participation

NE: Neighborhood Empowerment program

CPI: Consumer Price Index

NPDES: National Pollutant Discharge Elimination System

DCC: Development Coordinating Center

NTU: Nephelometric Turbidity Units

DHEC: (South Carolina) Department of Health and Environ- OSHA: Occupational Safety and Health Administration mental Control PARD: (South Carolina) Parks and Recreation Department DOA: (South Carolina) Department of Aviation PMPA: Piedmont Municipal Power Agency DS: Debt Service PO: Purchase Order DSR: Debt Service Reserve RE: Retained Earnings EPA: Environmental Protection Agency RFATS: Rock Hill-Fort Mill Area Transportation Study FAA: Federal Aviation Administration RHEDC: Rock Hill Economic Development Corporation FBO: Fixed Base Operator SANE: Sexual Assault Nurse Examiner program FEMA: Federal Emergency Management Agency SCADA: Supervisory Control and Data Acquisition FY: Fiscal Year SCLGIP: South Carolina Local Government Investment Pool F.T.E.: Full Time Equivalent WWTP: Wastewater Treatment Plant GAAP: Generally Accepted Accounting Principles GASB: Governmental Accounting Standards Board GFOA: Government Finance Officers Association GO: General Obligation Bonds 263

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Appendix Financial Policies The City of Rock Hill has developed a comprehensive set of financial policies that are consistent with the City’s goals and objectives. Specific attention has been given to make sure that these policies are both consistent and relationally sound.

Financial policies are an integral part of the development of service, capital, and financial plans and the budget. They provide the basis for decision-making and continue Rock Hill’s tradition of financial stability.

FP 1: Fund Balances The City will maintain stabilization funds at levels sufficient to protect the City's credit as well as its financial position from emergencies.

The City of Rock Hill seeks to maintain a prudent level of financial resources to protect against reducing service levels or raising taxes and fees because of temporary revenue shortfalls or unpredicted one-time expenditures. Stabilization funds are called by many names including rainy day funds, unreserved, undesignated fund balances, and contingency funds. These funds are used at a government’s discretion for many purposes: to address temporary cash flow shortages; to fund emergencies; unanticipated economic downturns; and one-time opportunities.

These funds provide flexibility to respond to unexpected opportunities that may help a government achieve its goals. The minimum and maximum amounts to be accumulated are based on the types of revenue, the level of uncertainty associated with revenues, the condition of capital assets, or the City’s level of security with its financial position. It is the goal of the City of Rock Hill to maintain a General Fund Balance equal to at least 15% of the total audited General Fund expenditures from the previous fiscal year and to maintain Enterprise Fund Unrestricted Net Assets equal to at least 20% of total Enterprise Fund operating expenses for the previous fiscal year. The State of South Carolina does not provide any local government constraints regarding the establishment of stabilization funds.

The following summarizes the City's policy on different types of fund balances: Non-spendable The non-spendable fund balance includes amounts that cannot be spent because they are either not in spendable form, such as supplies inventories, or are legally or contractually required to be maintained intact, such as principal donated to the City to be invested and held in a permanent fund from which only the investment earnings can be spent.

Restricted Fund balance is reported as restricted when constraints placed on the use of resources are either externally imposed by creditors (such as through debt covenants), grantors, contributors, or laws or regulations of other governments or is imposed by law through constitutional provisions or enabling legislation (City ordinances).

Enabling legislation includes a legally enforceable requirement that those resources be used only for the specific purposes stipulated in the legislation. Legal enforceability means that the City can be compelled by an external party to use resources created by enabling legislation only for the purposes specified by the legislation.

Committed The committed fund balance classification includes amounts that can be used only for the specific purposes imposed by formal action of City Council. 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. In contrast to fund balance that is restricted by enabling legislation, committed fund balance classification may be redeployed for other purposes with appropriate due process.

Constraints imposed on the use of committed amounts are imposed by City Council, separate from the authorization to raise the underlying revenue; therefore, compliance with these constraints is not considered to be legally enforceable. Committed fund balance also incorporates contractual obligations to the extent that existing resources in the fund have been specifically committed for use in satisfying those contractual requirements.

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Appendix Assigned Amounts in the assigned fund balance classification are intended to be used by the City for specific purposes but do not meet the criteria to be classified as restricted or committed. In governmental funds other than the General Fund, assigned fund balance represents the remaining amount that is not restricted or committed. In the General Fund, assigned amounts represent intended uses established by City Council or the City Manager or his designee.

Unassigned Unassigned fund balance is the residual classification for the General Fund and includes all spendable amounts not contained in the other classifications. In other governmental funds, the unassigned classification is used only to report a deficit balance resulting from overspending for specific purposes for which amounts had been restricted, committed, or assigned.

FP 2: Revenue The City will design, maintain and administer a revenue system that will assure a reliable, equitable, diversified and sufficient revenue stream to support desired City services.

Since the principle revenue stream for the government is determined by the fees and charges that are established, it is important that the City adopt policies that identify the manner in which fees and charges are set and the extent to which they cover the cost of the service provided. A revenue system that requires the identification of both the cost of the program and the portion of the cost that will be recovered through fees & charges allows the City and its citizens to develop a better understanding of the cost of services and to consider the appropriateness of established fees and charges.

To that end, the City has established the following goals that are used to accomplish this policy: 1. The City will seek to establish all user charges fees at a level related to the full costs (operating, direct, indirect and capital) of providing the service. The City will review these fees & charges annually in the budget process and target rates that meet the cost to serve – particularly in the City’s key businesses (Public Safety, Public Works, Electric, Water, Wastewater, and Parks, Recreation & Tourism). In any event, all enterprise funds will be self-supporting.

2. Costs of service include direct and indirect costs such as operating and maintenance costs, overhead, and charges for use of capital (depreciation and debt service). A government may choose not to recover all costs, but it should identify such costs. Reasons for not recovering full costs should be identified and explained. State and local law may govern the establishment of fees and charges.

3. The City will consider market rates and charges levied by other businesses and municipalities for like services in establishing rates, fees and charges. These fees will be reviewed through the City’s annual rate survey.

4. One-time or special revenues shall not be used to finance ongoing City operations but rather be used for the funding of special projects.

5. An aggressive policy of seeking the collection of delinquent utility and license fee accounts will be maintained.

6. Citizen input into decisions relating to revenues will be solicited during the annual budget public hearing process and will be made available for public review prior to City Council consideration of first reading.

7. In determining revenue projections - and where judgment is required - conservatism shall be the rule.

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Appendix FP 3: Diversified Revenue Base The City will annually review its revenue source to maintain a diversified revenue base.

The City of Rock Hill is committed to a diverse revenue base. Since all revenue sources have particular characteristics in terms of stability, growth, sensitivity to inflation or business cycle effects, and impact on tax and rate payers - a diversity of revenue sources can improve a government’s ability to handle fluctuations in revenues and potentially help to better distribute the cost of providing services.

The City will identify approaches that will be used to improve revenue diversification. In accomplishing this policy, the City will analyze the sensitivity of revenues to changes in rates, the fairness of the tax or fee, administrative aspects of the revenue source, and other relevant issues.

Over time the City will strive to improve its revenue diversity to the extent feasible. Since the City is statutorily limited as to the types of revenues it may raise, it may consider options to enhance flexibility within the constraints of available revenue sources. For example, The City will seek to diversify the tax base on which the property tax is levied.

FP 4: Use of One-Time Revenue The City will limit the use of one-time revenues to pay for ongoing expenditures of the government.

By definition, one-time revenues cannot be relied on in future budget periods. Since the use of one-time revenues can have disruptive effects on services due to non-recurrence of these sources, the City will dedicate one-time revenues (e.g. infrequent sales of government assets, bond refunding savings, infrequent revenues from development, and grants) to be used on expenditures appropriate startup costs, stabilization, special projects, and capital purchases.

Any use of revenue that adds to the ongoing expenditure base will be carefully reviewed and minimized (e.g., capital expenditures that significantly increase ongoing operating expenses without a sustainable and offsetting long-term revenue plan).

FP 5: Revenue Classification The City will annually evaluate all revenues, determine those that are considered to be unpredictable, and determine the best use of those revenues.

A financial plan for governments should take into account the unpredictable nature of key revenues. This ensures that a government understands the potential impact on its ability to cover service costs and develops contingency plans in advance to address unpredictable revenue fluctuations. Specific allocation and contingency plans do not have to be developed for all unpredictable revenues, but become increasingly necessary as the size or unpredictability of the revenue source increases.

The City will annually identify major revenue sources it considers unpredictable and define how these revenues may be used. Unpredictable revenue sources cannot be relied on as to the level of revenue they will generate.

Particularly with major revenue sources, it is important to consider how significant variation in revenue receipts will affect the government’s financial outlook and ability to operate programs in the current and future budget periods.

For each major unpredictable revenue source, the City will identify those aspects of the revenue source that make the revenue unpredictable. Most importantly, the City will identify the expected or normal degree of volatility of the revenue source. For example, revenues from a particular source may fluctuate, but rarely, if ever, fall below some predictable minimum base. The City will decide, in advance, on a set of tentative actions to be taken if these revenue sources generate revenues substantially higher or lower than projected. The plans should be publicly discussed and used in budget decision making.

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Appendix FP 6: Operating Transfers The City will quantify operating transfers from the utility system to cover utility costs which are budgeted with general fund expenses.

The City Council has determined that the City needs to maintain the competitiveness of the utility system and rate structure, and therefore has historically minimized Utility Fund transfers to the General Fund, except for amounts reasonably necessary to cover a portion of the General Fund expenses which are incurred to support City General Fund obligations and costs related to the utility system services. Such General Fund expenses include, among other things, the use of City resources, assets, and facilities and funding obligations of the City’s General Fund related to utility system bonded indebtedness. Notwithstanding the higher costs to the General Fund related to such utility system expenses, the transfers should be reduced to a level that is supportable by standard utility business practices.

Accordingly, in order to maintain a competitive utility rate structure, the City will forgo a larger Utility Fund transfer and uses a formula that presupposes that utility services would have been provided by a privately-owned utility instead of the City’s publicly owned utility. Such utility would have paid municipal ad valorem taxes and a franchise fee to the General Fund of the City and the utility’s investors would have been entitled to a return on their investment. For this reason, the City has established the following policy guideline regarding franchise fees, payments in lieu of taxes, rates of return and operating transfers from the utility system:

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1.

Payment in Lieu of Franchise Fees. The City shall budget annually the equivalent of a franchise fee from the Utility Fund that would have been paid had electric, water and sewer services been provided by an investor-owned utility. This fee shall be calculated by multiplying all gross revenues of the electric, water and sewer systems made within the City’s corporate boundaries by the current franchise fee the City charges to private utility providers (5%). The payment in lieu of a franchise fee shall be reported as an expense of the electric, water and sewer system and as a revenue of the General Fund.

2.

Payment in Lieu of Taxes. The City shall budget annually the equivalent of a payment in lieu of taxes from the electric, water, and sewer systems to the General Fund that approximates the amount of ad valorem taxes that would have been paid had utility services been provided by an investorowned utility. The payment in lieu of taxes shall be calculated by multiplying the gross fixed assets of the system reported in the City’s most recent audited financial statements by the appropriate assessment ratio and then by the City-wide tax rate included in the City’s most recent budget ordinance. The resulting product shall be multiplied by the estimated percentage of electric, water and sewer fixed assets that are located within the City’s corporate boundaries. The payment in lieu of taxes amount calculated under this section shall be reported as an expense of the electric, water and sewer system and as a revenue of the General Fund.

3.

Payment in Lieu of Rate of Return. The City may budget annually a payment in lieu of a rate of return on the gross operational revenues of the electric, water and sewer systems. This rate of return will be based on 5% of gross utility revenues and may be adjusted by City Council to meet the current competitive utility business environment. The payment in lieu of a rate of return amount calculated under this section shall be reported as an expense of the electric, water and sewer system and as revenue of the General Fund.

4.

Exceptions. The amount to be paid from the electric, water and sewer systems under this resolution may be increased or reduced upon approval of the City Council so long as the amounts actually paid do not exceed amounts reasonably necessary to cover a portion of the General Fund expenses which are incurred to support City General Fund obligations and costs related to the utility system services, or as otherwise allowed by applicable law.

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Appendix FP 7: Operational Reporting City staff will provide to the City Council a report on the operating results of the City.

All excess revenue collected by the City of Rock Hill that exceeds the projected budget revenue figure from a specific revenue category for each fiscal reporting period must be reported to City Council on a monthly basis.

The expenditure of any and all excess revenue will be at Council’s discretion and cannot be utilized within the City budget without Council’s approval.

Likewise, all expenditures that exceed the projected budget expense figures in excess of $5,000 on a departmental level must be reported to Council in writing by the next scheduled Council meeting. Expenditures that would cause an increase above the $5,000 cap on a departmental level cannot be made without prior approval of Council.

Cost savings that may occur within a specific department can be utilized within that particular department; however, this cost savings cannot be transferred to another department without prior approval of Council.

FP 8: Adoption of Balanced Budget The City will annually adopt a Balanced Operating Budget.

According to the laws of the State of South Carolina, the City will adopt a balanced operating budget and provide full disclosure when a deviation from a balanced operating budget is planned or when it occurs. This balanced budget will ensure that all operating revenues are equal to, or exceed, all operating expenditures at adoption and at year-end. Any increase in expenses, decrease in revenues, or combination of the two that would result in a budget imbalance will require budget revision, rather than spending unappropriated surpluses or designated reserves to support ongoing operations. Any year end operating surpluses will revert to unappropriated balances.

The City of Rock Hill annual budget appropriation will cover the twelve-month period beginning July 1 and ending June 30 of the following year. The proposed budget document is to be presented to the City Council for their consideration no later than June 1 with adoption of the approved ordinance by June 30. According to state law, any required public hearings will be scheduled to receive input on the development of the budget. Special public hearings are also required to consider the issue of a tax increase.

Budgets shall be prepared at the department level and provide the basis for the City’s financial management system. The adopted appropriations by fund shall constitute the maximum expenditure authorization for that fund and can be amended only by action of the City Council. The budget shall be developed in conjunction with a stated program of performance objectives and measures with which to gauge progress towards meeting those objectives.

The following guidelines will be used in the preparation of the budget document: 1. Current appropriations in all funds are limited to the sum of available, unencumbered cash balances and revenues estimated to be received in the current budget period.

2. General Fund expenditures and subsidy appropriations for mandated and priority programs are to be made against current revenue sources, and not dependent upon uncertain reserves or fluctuating prior period cash balances.

3. Special Revenue Funds are supported by special levies and fees, grants or intergovernmental revenues. Expenditures in these funds are strictly limited to the mandates of the funding source.

Special Revenue Funds are not to be used to subsidize other funds, except as required or permitted by program regulations.

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Appendix 4. All operations of the Enterprise Fund will be self-supporting entities. The City will conduct an annual review of fee structures, charges for services, and other operating revenues and expenditures.

5. Multi-year operating cost projections shall be prepared and updated each year to identify the impact on resources.

6. A ten-year Capital Improvements Program shall be prepared and updated each year. The operating impact of each project shall be identified and incorporated into annual operating budgets. Capital assets shall be purchased and maintained on a regular schedule. Within legal limits and the constraints of operating budgets, debt shall be issued for the purchase of capital assets, including major renovations.

7. For purposes of this policy, the cash basis of accounting are used in defining revenues and expenditures.

8. It will be the duty of the City Manager to take action to bring the budget into balance if adjustments are needed in the course of a fiscal period.

FP 9: Delivery of Services The City will identify priority services, establish appropriate service levels, and administer the expenditure of available resources to assure fiscal stability and the effective and efficient delivery of services.

The City will operate on a current funding basis. Expenditures shall be budgeted and controlled so as not to exceed current revenues plus the planned use of fund balance accumulated through prior years.

The City shall take immediate corrective actions if at any time during the fiscal year expenditure and revenue reestimates are such that an operating deficit is projected at year-end. Corrective actions are outlined separately within these policies. Expenditure deferrals into the following fiscal year, short-term loans, or use of one-time revenue sources to balance the budget will be avoided.

The Finance Director is charged with performing periodic staff and third-party reviews of City programs for both efficiency and effectiveness. Privatization and contracting with other governmental agencies will be evaluated as alternatives to service delivery. Programs that are determined to be inefficient and/or ineffective are to be reduced in scope or eliminated.

The City of Rock Hill makes every effort to maximize any discounts offered by creditors / vendors. Staff shall also use competitive bidding to attain the best possible price on goods and services.

FP 10: Debt Policy The City will adhere to a debt policy that ensures that debt is issued and managed prudently in order to maintain a sound fiscal position and protect credit quality.

Issuing debt commits the City’s revenues several years into the future, and may limit the City’s flexibility to respond to changing service priorities, revenue inflows, or cost structures. A debt policy sets forth the parameters for issuing debt and managing outstanding debt and provides guidance to decision makers regarding the timing and purposes for which debt may be issued, types and amounts of permissible debt, method of sale that may be used and structural features that may be incorporated.

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Appendix The City plans long- and short-term debt issuance to finance its capital program based on its cash flow needs, sources of revenue, capital construction periods, available financing instruments and market conditions. The Director of Finance oversees and coordinates the timing, issuance process and marketing of the City’s borrowing and capital funding activities required in support of the capital improvement plan.

This debt policy recognizes a binding commitment to full and timely repayment of all debt as an intrinsic requirement for entry into the capital markets. Adherence to a debt policy helps to ensure that the City maintains a sound debt position and that credit quality is protected. Components of the debt policy are as follows: The City will confine its long-term borrowing to capital improvements and follow a policy of full disclosure on every financial report and bond prospectus. In no case will general obligation debt be used for self-supporting enterprise activity. The City will use voter-approved general obligation debt to fund general-purpose public improvements that cannot be financed from current revenues.

Capital Planning. The City will have an annual capital planning process that outlines major projected capital expenditures over the next ten years. The capital budget identifies revenue sources and capital expenditures and projects this information for each of the ten years. This information is updated annually.

Financing Team. The City often employs outside financial specialists to assist it in developing a bond issuance strategy, preparing bond documents and marketing bonds to investors. The key players in the City’s financing transactions include its bond counsel, the underwriter and underwriters counsel (on a negotiated sale), the City attorney and City representatives (the Director of Finance and other City representatives as may be appointed by the City Manager). Other outside firms, such as those providing paying agent/registrar, trustee, credit enhancement, auditing, or printing services, are retained as required. The financing team will meet at least annually to review the overall financing strategy of the City and make recommendations to the City Manager.

Term of Debt Repayment. Borrowings by the City shall mature over a term that does not exceed the economic life of the improvements that they finance. General Obligation Bonds shall be issued with a term not to exceed 25 years; Revenue Bonds with a term not to exceed 30 years; and tax increment bonds with a term not to exceed 25 years. The City does not finance improvements with a probable useful life less than twenty years, using pay-as-you-go funding for such needs.

Call provisions. The City seeks to minimize the protection from optional redemption given to bondholders, consistent with its desire to obtain the lowest possible interest rates on its bonds. The City’s bonds are generally subject to optional redemption. The City seeks early calls at low or no premiums because such features have allowed it in the past to refinance debt more easily for debt service savings when interest rates dropped. The City will annually evaluate optional redemption provisions for each issue to assure that the City does not pay unacceptably higher interest rates to obtain such advantageous calls.

Interest rates. In most cases, the city will use fixed-rate debt to finance it capital needs; however, the City may issue up to 25% of its total debt portfolio in variable rate debt.

Method of Sale. The City will select a method of sale that is the most appropriate in light of financial, market, transaction-specific and issuer-related conditions.

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Appendix Competitive Sales. General obligation debt obligations are issued through a competitive sale – according to state law. For these bonds – and any other bonds that the City may deem necessary - the City will set the terms of the sale to encourage as many bidders as possible. By maximizing bidding, the City seeks to obtain the lowest possible interest rates on its bonds. The following conditions may favor the use of a competitive sale: 1.

2.

3.

4.

5.

6.

7.

8.

9.

The market is familiar with the issuer; The issuer is a stable and regular borrower in the public market; There is an active secondary market with a broad investor base for the City’s bonds; The issue has a non-enhanced credit rating of A or above or can obtain a credit enhancement prior to the competitive sale; The debt structure is backed by the issuer’s full faith and credit or a strong, known or historically performing revenue stream; The issue is neither too large to be easily absorbed by the market nor too small to attract investors without a concerted sale effort; The issue does not include complex or innovative features or require explanation as to the bonds’ security; The issue can be sold and closed on a schedule that does not need to be accelerated or shortened for market or policy reasons; and Interest rates are stable, market demand is strong, and the market is able to absorb a reasonable amount of buying or selling at reasonable price changes.

Negotiated Sales. When certain conditions favorable for a competitive sale do not exist and when a negotiated sale will provide significant benefits to the City that would not be achieved through a competitive sale, the City may elect to sell its debt obligations through a private or negotiated sale. Such determination may be made on an issue-by-issue basis, for a series of issues, or for part or all of a specific financing program. The following conditions may favor the use of a negotiated sale: 1.

2.

3.

4.

5.

6.

7.

Insure fairness by using a competitive underwriter selection process through a request for proposals where multiple proposals are considered; Remain actively involved in each step of the negotiation and sale processes to uphold the public trust; Insure that either an employee of the issuer, or an outside professional other than the issue underwriter, who is familiar with and abreast of the condition of the municipal market, is available to assist in structuring the issue, pricing, and monitoring sales activities; Require that the financial advisor used for a particular bond issue not act as underwriter of the same bond issue; Require that financial professionals disclose the name or names of any person or firm, including attorneys, lobbyists and public relations professionals compensated in connection with a specific bond issue; Request all financial professionals submitting joint proposals or intending to enter into joint accounts or any fee-splitting arrangements in connection with a bond issue to fully disclose to the issuer any plan or arrangements to share tasks, responsibilities and fees earned, and disclose the financial professionals with whom the sharing is proposed, the method used to calculate the fees to be earned, and any changes thereto; and Review the “Agreement among Underwriters” and insure that it is filed with the issuer and that it governs all transactions during the underwriting period.

Refinancing. The City may undertake refinancing of outstanding debt under the following circumstances: Debt Service Savings. The City may refinance outstanding long-term debt when such refinancing allows the City to realize significant debt service savings without lengthening the term of refinanced debt and without increasing debt service in any subsequent fiscal year.

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Appendix Defeasance. The City may refinance outstanding debt, either by advance refunding to the first call or by defeasance to maturity, when the public policy benefits of replacing such debt outweigh the costs associated with new issuance as well as any increase in annual debt service.

Conduit Financings. Conduit financings are securities issued by a government agency to finance a project of a third party, such as a non-profit organization or other private entity. The City may sponsor conduit financings for those activities (e.g., economic development, housing) that have a general public purpose and are consistent with the City’s overall service and policy objectives. Unless a compelling public policy rationale exists, such conduit financings will not in any way pledge the City’s faith and credit.

Credit Ratings Rating Agency Relationships. The Director of Finance is responsible for maintaining relationships with the rating agencies that assign ratings to the City’s various debt obligations. This effort includes providing periodic updates on the City’s general financial condition along with coordinating meetings and presentations in conjunction with a new debt issuance.

Quality of Ratings. The City requests ratings prior to the sale of securities from each of the two major rating agencies for municipal bond issues: Moody’s Investors Service and Standard & Poor’s Corporation.

The City may provide a written and/or oral presentation to the rating agencies to help each credit analyst make an informed evaluation. The City will make every reasonable effort to maintain its high quality credit ratings.

Rebate Reporting/Covenant Compliance/Reporting Practices. The Director of Finance is responsible for maintaining a system of record keeping and reporting to meet the arbitrage rebate compliance requirements of the federal tax code. Additionally, general financial reporting and certification requirements embodied in bond covenants are monitored to ensure that all covenants are complied with. The City will comply with the standards of the Government Finance Officers Association for financial reporting and budget presentation and the disclosure requirements of the Securities and Exchange Commission.

Checklist of Debt Policy Considerations. The City will observe the following GFOA checklist in determining the appropriateness of debt issuance: 1. How long is the capital planning period?

2. Have all non-debt sources of funds been considered?

3. How are borrowing plans reviewed internally?

4. What level of debt is manageable in order to maintain or improve the government’s credit quality?

5. How much “pay-as-you-go” financing should be included in the capital plan?

6. How much short-term borrowing will be undertaken, including both operating and capital borrowings?

7. How much debt will be issued in the form of variable-rate securities?

8. How does the redemption schedule for each proposed issue affect the overall debt service requirements of the government?

9. What types of affordability guidelines will be established to help monitor and preserve credit quality?

10. What provisions have been made to periodically review the capital plan and borrowing practices?

11. What is the overlapping debt burden on the taxpayer?

12. How will the formal debt policies be integrated into the capital planning and funding process?

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Appendix FP 11: Debt Limit The city will establish thresholds for the maximum amount of debt and debt service that should be outstanding at any one time.

Policies guiding the amount of debt that may be issued by a government help ensure that outstanding and planned debt levels do not exceed an amount that can be supported by the existing and projected tax and revenue base. Because of this, the City has developed distinct policies for general obligation debt, debt supported by revenues of government enterprises, and other types of debt such as special assessment bonds, tax increment financing bonds, short-term debt, variable-rate debt, and leases.

General Obligation Debt Affordability Measures. The City examines four statistical measures to determine debt capacity and compares these ratios to other cities, rating agency standards and Rock Hill’s historical ratios to determine debt affordability.

This is the only measure that is prescribed by state law, which provides that the City’s general obligation debt cannot exceed 8% of the City’s total assessed value (excluding tax anticipation notes and other indebtedness with a maturity of one year or less; bonds or other indebtedness of the City payable from taxes levied from special taxing areas; and self-supporting bonds or other debt.)

Total general obligation debt as measured against the population on a per-capita basis cannot exceed $225.

Total annual general obligation debt as measured as a percent of current expenditures cannot exceed 12%.

Utility Enterprise Debt Affordability Measures. The City’s Revenue debt level shall not exceed a debt service coverage ratio of 1.20 times of the annual net pledged revenues to annual debt service. In addition, additional bonds should not have a negative impact on the City’s overall credit ratings.

Tax Increment Debt Affordability Measures. The City’s Tax Increment debt level shall not exceed the current available revenues or revenues projected within the district from projects that have obtained a building permit.

FP 12: Contingency Planning The City will develop practices to guide the financial actions it will take in the event of emergencies, natural disasters, or other unexpected events.

When emergencies or unexpected events occur, having a policy that can be applied, or at least serve as a starting point, for financial decisions and actions improves the ability of a government to take timely action and aids in the overall management of such situations. Policies on contingency planning are used as a general guide when an emergency or unexpected event occurs. A set of actions and strategies are identified for each type of situation.

Examples of financial emergencies that require contingency plans are sudden and severe decreases in locally collected revenues or intergovernmental aid, and unexpected major capital maintenance requirements.

Development of a contingency plan in advance of such situations may be viewed positively by the rating agencies when evaluating a government’s credit quality. This can also help expedite relief efforts when an emergency does occur and allow the government to recover funds more quickly or more effectively in the event of a natural disaster.

The following is a summary of the phase classifications and the corresponding actions to be taken.

Alert. An anticipated net reduction in available reserves or reduction in major revenue source(s) from 1% up to 9%. The actions associated with this phase would best be described as delaying expenditures where reasonably possible, while maintaining the "Same Level" of service. Each department will be responsible for monitoring its individual budgets to ensure that only essential expenditures are made.

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Appendix Minor. A reduction in reserves in excess of 9%, but less than 23%. The objective at this level is still to maintain "Same Level" of service where possible. Actions associated with this level would be: a. Implementing the previously determined "Same Level" Budget. b. Intensifying the review process for large items such as contract services, consulting services, and capital expenditures including capital improvements. c. Closely scrutinizing hiring for vacant positions, delaying the recruitment process, and using temporary help to fill in where possible.

Moderate. A reduction in reserves in excess of 23%, but less than 50%. Initiating cuts of service levels by: a. Requiring greater justification for large expenditures. b. Deferring capital expenditures. c. Reducing CIP appropriations from the affected fund. d. Hiring to fill vacant positions only with special justification and authorization. e. Closely monitoring and reducing expenditures for travel, seminars, retreats and bonuses.

Major. A reduction in reserves of 50% to 100%. Implementation of major service cuts. a. Instituting a hiring freeze. b. Reducing the temporary work force. c. Deferring merit wage increases. d. Further reducing capital expenditures. e. Preparing a strategy for reduction in force.

Crisis. Reserves have been 100% depleted and potential for having a deficit is present. a. Implementing reduction in force or other personnel cost-reduction strategies. b. Eliminating programs. c. Eliminating capital improvements.

In the event that an economic uncertainty is expected to last for consecutive years, the cumulative effect of the projected reduction in reserves will be used for determining the appropriate phase and corresponding actions.

FP 13: Accounting Functions The City of Rock Hill will perform accounting functions that shall conform to the generally accepted accounting principles as applicable to governments.

The diverse nature of governmental operations and the necessity of assuring legal compliance preclude recording all governmental financial transactions and balances in a single accounting entity. Therefore, from an accounting and financial management viewpoint, a governmental unit is a combination of several distinctly different fiscal and accounting entities, each having a separate set of accounts and functioning independently of each other.

The City will comply with prevailing federal, state, and local statutes and regulations. The City will also conform to generally accepted accounting principles as promulgated by the Governmental Accounting Standards Board (GASB), the American Institute of Certified Public Accountants (AICPA), and the Government Finance Officers Association (GFOA).

In general, it will be the policy of the City to: Prepare and present regular reports that analyze, evaluate, and forecast the City’s financial performance and economic conditions. This information will be made available to the public for their inspection.

With available resources, the City will seek out and employ the assistance of qualified financial advisors and consultants in the management and administration of the City’s financial functions.

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Appendix An independent audit will be performed annually.

The City will issue annual financial reports in accordance with generally accepted accounting principles (GAAP) as outlined in the Governmental Accounting, Auditing and Financial Reporting (GAAFR) publication.

The basis of accounting refers to the point at which revenues or expenditures/expenses are recognized in the accounts and reported in the financial statements. It relates to the timing of the measurements made regardless of the measurement focus applied. As in the basis of budgeting, accounting records for the City of Rock Hill governmental funds are maintained on a modified accrual basis with the revenues being recorded when available and measurable and expenditures being recorded when the services or goods are received and the liabilities are incurred. In contrast to the basis of budgeting, accounting records for proprietary funds are maintained on the accrual basis in which revenues are recognized when earned and expenses are recognized when incurred.

The City of Rock Hill’s accounting system is organized and operated on a "fund" basis. Each accounting entity is accounted for in a separate "fund” which is defined as a fiscal accounting entity with a self-balancing set of accounts recording cash and other financial resources together with related liabilities and residual equities or balances, and changes therein. Two fund types defined in the “Description of Budgeted Funds are further defined below as well as the addition of Fiduciary Funds.

Classification Fund Type Governmental Funds General Special Revenue Debt Service Capital Projects Proprietary Funds Enterprise Fiduciary Funds Agency Expendable Trust Governmental Funds. These funds are, in essence, accounting segregations of financial resources. Expendable assets are assigned to the various governmental funds according to the purposes for which they may or must be used; current liabilities are assigned to the fund from which they are to be paid; and the differences between governmental fund assets and liabilities (the fund equity) is referred to as "Fund Balance". The primary measurement focus is “flow of current financial resources.” Increases in spendable resources are reported in the operating statement as revenues or other financing sources, and decreases are reported as expenditures or other financing uses.

Proprietary Funds. These funds are sometimes referred to as "income determination," "non expendable," or "commercial type" funds and are used to account for a government's on-going organizations and activities which are similar to those often found in the private sector. All assets, liabilities, equities, revenues, expenses, and transfers relating to the government's business and quasi-business activities, where net income and capital maintenance are measured, are accounted for through proprietary funds.

The generally accepted accounting principles here are those applicable to similar businesses in the private sector, and the measurement focus is the economic condition of the fund as a result of the events and transactions of the period. Events and transactions that improve the economic position of a proprietary fund are reported as revenues or gains in the operating statement. Those that diminish the economic position are reported as expenses or losses.

Fiduciary Funds. These funds account for assets held by the City in a trustee capacity or as an agent for other governmental units and for other funds. Each trust fund is accounted for as either a governmental or a proprietary fund. Fiduciary funds are not budgeted in the annual budget process.

Account Groups. These represent another accounting entity used to establish control and accountability for the City's general fixed assets and the outstanding principal of its general long-term debt (General Fixed Assets Account Group and General Long- Term Debt Account Group). These records are accounted for in a self-expenditures. The outstanding principal of the general long-term debt and general long-term liabilities not accounted for in the Proprietary Funds or Trust Funds do not require an appropriation or expenditure during the account year.

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Appendix Internal Control. In developing and maintaining the City's accounting system, consideration is given to the adequacy of internal accounting controls. Internal accounting controls are designed to provide reasonable, but not absolute, assurance regarding the safeguarding of assets against loss from unauthorized use or disposition and the reliability of financial records for preparing financial statements and maintaining accountability for assets. The concept of reasonable assurance recognizes that the cost of a control should not exceed the benefits likely to be derived, and the evaluation of costs and benefits requires estimates and judgments by management. All internal control evaluations occur within the above framework. We believe that the City's internal accounting controls adequately safeguard assets and provide reasonable assurance of proper recording of financial transactions.

FP 14: Economic Development Incentive Policy The City of Rock Hill will provide economic development incentives with the goals of targeting economic and geographic sectors; promoting business retention and recruitment; encouraging job creation; increasing property tax revenue; and improving blight, economically distressed areas, and environmental conditions.

In general, it will be the policy of the City to maintain a fund, replenish the fund, and provide financial incentives programs in accordance with the strategic goals of the City.

Financial Incentive Programs: Growth Management Incentives Façade Grants Job Creation Land Acquisition Environmental Testing and/or Cleanup Gap Financing Infrastructure extensions Other Business Incentives at the discretion of the City Council Guidelines for Limits to Incentives: Growth Management incentives: as approved by City Council in the Growth Management Incentive Policy Façade Grants: to specific geographic areas Infrastructure: in general, to a 5 year payback from Utility revenues Fund Establishment and Replenishment: The Economic Development Incentive Fund was established from the land sale proceeds of City property in the Dave Lyle/Manchester area.

The following revenue sources are identified to replenish the fund: Interest income from the fund Cell tower rental revenues from Hwy 901 Water Tank Site Proceeds from the sale of property in City Business Parks: Tech Park – 50% of land sale proceeds Southway Industrial Park – 100% of land sale proceeds Proceeds from the sale of property in the Dave Lyle/Manchester area Proceeds from the sale of other City owned property at the discretion of Council Performance Monitoring: The effectiveness of the overall economic development incentive fund and each project funded shall be measured and reported annually to ensure that the overall goals of the program are met.

FP 15: Written Procedures Related to the Issuance of Tax-Exempt Bonds Post-issuance tax compliance begins with the debt issuance process itself and provides for a continuing focus on investments of bond proceeds and use of bond-financed property. It requires identifying existing policies, the responsible people, the applicable procedures, and the affected population.

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Appendix I.

Procedures

The City Manager or the Chief Financial Officer (the “City Representative”) of the City of Rock Hill, South Carolina (the “City”) will be responsible for post-issuance tax compliance and steps to be taken to transfer that responsibility and accumulated information in the future.

The City Representative may delegate to his/her staff responsibility for different aspects, for example investment of bond proceeds and expenditure of bond proceeds on projects, coordinate record-keeping and review; however, the City Representative will be ultimately responsible.

II.

Issuance

The City Representative will: Obtain and store the Transcript of Proceedings prepared by bond counsel.

Confirm filing of Form 8038-G with the Internal Revenue Service, usually overseen by bond counsel at or soon after closing.

III.

Recordkeeping

The City Representative will: Establish plan for keeping relevant books and records as to investment and expenditure of bond proceeds.

Keep accurate records including: - Basic records relating to the bond transactions (including the bond ordinances, closing certificates, and bond counsel opinion); - Documentation evidencing expenditure of bond proceeds; - Documentation evidencing use of bond-financed property by public and private sources (i.e., copies of management contracts use agreements); - Documentation evidencing all sources of payment or security for the bonds; and - Documentation pertaining to any investment of bond proceeds (including the purchase and sale of securities, SLGS subscriptions, yield calculations for each class of investments, actual investment income received from the investment of proceeds, guaranteed investment contracts, and rebate calculations).

Keep all records in a manner that ensures their complete access to the IRS so long as they are material. While this is typically accomplished through the maintenance of hard copies, records may be kept in an electronic format if certain requirements are satisfied, in accordance with the guidelines in Rev Proc 97-22, 1997-1 C.B. 652.

Keep records for as long as the bonds are outstanding plus three years after the final redemption date of the bonds.

IV.

Arbitrage

The City Representative will: Engage services of an arbitrage/rebate consultant for assistance in compliance with arbitrage related issues.

Monitor compliance with “temporary period expectations” for expenditure of bond proceeds, typically three years for new money bonds, and provide for yield restriction of investments or “yield reduction payments” if expectations are not satisfied.

Ensure investments acquired with bond proceeds are purchased at fair market value. This can include use of bidding procedures under regulatory safe harbor.

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Appendix Consult with the City’s bond counsel prior to the creation of funds which would reasonably be expected to be used to pay debt service on bonds to determine in advance whether such funds must be invested at restricted yield.

Consult with the City’s bond counsel before engaging in post-issuance credit enhancement transactions (e.g., bond insurance, letter of credit) or hedging transactions (e.g., interest rate swap, cap).

Consult with the City’s bond counsel and arbitrage consultant to identify situations in which compliance with applicable yield restrictions depends upon later investments, (e.g., purchase of 0% SLGS from U.S. Treasury), and monitor implementation.

Work with the City’s arbitrage consultant to arrange for timely computation of rebate liability and, if rebate is payable, for timely filing of Form 8038-T and payment of rebate. Rebate is ordinarily due at 5-year intervals.

The arbitrage consultant’s report will be reviewed by bond counsel.

V.

Private Use of Bonds-Funded Facilities

The City Representative will: Create and maintain records of which proceeds of bond issues were used to finance which facilities. These records shall track refunding or partial refunding of any bond issues.

Accurately record the allocation of bond proceeds to expenditures, including reimbursements. These records will be used for arbitrage purposes.

Record the allocation of bond proceeds and funds from other sources in connection with any bond funded project. Review expenditure of bond proceeds with bond counsel to ensure bond proceeds are used for qualifying costs.

Keep records of private use, if any, of bond financed facilities to ensure the amount of private use of bond financed facilities. Private use of bond-financed facilities shall be reviewed once a year (in connection with the preparation of annual financial statements). If a change in private use occurs, bond counsel will be consulted to determine if remedial action is necessary.

Review with bond counsel prior to the sale or lease of a bond-financed facility, or the granting of a license or management contract, or any other arrangement allowing private use of a bond financed facility.

VI.

Reissuance

The City Representative will: Consult with bond counsel to identify any post-issuance change to the terms of bonds which could be treated as a current refunding of “old” bonds by “new” bonds, often referred to as a “reissuance.”

Consult with bond counsel to determine whether any “remedial action” in connection with a “change of use” must be treated as a “reissuance.”

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FY2017/2018 Approved Budget

Monitor Rock Hill’s financial and strategic plan progress by visiting the City’s Financial and Performance Dashboards located on the City’s transparency webpage at: cityofrockhill/transparency.

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