Table of Contents
Agenda 2 January 13, 2020 Regular Meeting Minutes 1.13.2020 6 1.27.2020 16 Resolution of Appreciation for Alphonso Hill Jr./Eagle Scout Resolution 2020 R4 20 FY 18/19 Audit Presentation FY 18.19 Audit Report 21 FY 18.19 Audit Presentation 114 2020 Census Presentation Census Presentation 124 Hammocks at Port of Swannsborough-Phase II Preliminary Plat Agenda Memo 152 Preliminary Plat 154 Plat Approval 2017 177 Email Communications 178 Budget Amendment - Municipal Park Improvements and Kayak Launch Replacement Agenda Memo/Budget Amendment 179 Quote 181 Project Budget Ordinance Amendment - Municipal Park Improvements Agenda Memo 183 Financial Report - January 2020 January 2020 Report 185 Budget Schedule Amendment Budget Schedule FY 20/21 194 December Departments Report December 2019 195 January 2020 203 Future Agenda Items Agenda Memo 212
1 BOARD OF COMMISSIONERS MEETING AGENDA Town of Swansboro Monday, February 24, 2020
Board Members John Davis, Mayor | Frank Tursi, Mayor Pro Tem | Pat Turner, Commissioner Harry PJ Pugliese, Commissioner | Larry Philpott, Commissioner | Laurent Meilleur, Commissioner
I. Call to Order/Opening Prayer/Pledge Mayor John Davis II. Public Comment Citizens have an opportunity to address the Board for no more than three minutes per speaker regarding items listed on the agenda. There is a second opportunity at the end of the agenda for the public to address the Board on items not listed on the agenda.
III. Adoption of Agenda and Consent Items Board of Commissioners The Town Clerk respectfully submits to the Board, the Regular Agenda and the below consent items, which are considered to be of general agreement and little or no controversy. These items may be voted on as a single group without Board discussion “or” if so desired, the Board may request to remove any item(s) from the consent agenda and placed for consideration separately.
Consent Items: a. Meeting Minutes January 13, 2020 Regular Meeting Minutes January 27, 2020 Regular Meeting Minutes January 27, 2020 Closed Session Minutes Release of other Closed Session Minutes {Note: All Closed Session minutes are sealed upon adoption unless otherwise stated within the motion or as required by state statues.}
• IV. Appointments/Recognitions/Presentations a. Resolution of Appreciation for Alphonso Hill Jr./Eagle Scout Mayor John Davis
b. FY 18/19 Audit Presentation Gregory Redman, CPA
c. 2020 Census Presentation Onslow Civic Affairs Committee
2 V. Public Hearing - None
VI. Business Non-Consent a. Hammocks at Port of Swannsborough-Phase II Preliminary Plat Jennifer Ansell, Planner Preliminary Plat approval was granted for the Hammocks at the Port of Swansboro Phase II in August of 2017 for 83 townhome lots on 10.27 acres in the R-6 zoning district. Per Section 152.337 of the UDO, a final plat must be submitted within one year of the date upon which the Board approves the preliminary plat. Staff has the ability to grant an extension of one year before a final plat is required to be recorded. There is no evidence that an extension was granted, but that would have extended the plat until August of 2019. Preliminary plats whose approval has elapsed are required to be resubmitted. JEJ Investors, Inc. requests re-approval of the preliminary plat. There have been no changes to the plat since the 2017 approval.
Action Needed: 1) Motion to Approve the Preliminary Plat for the Hammocks at the Port of Swansboro Phase II as submitted; or 2) Motion to Deny the Preliminary Plat for the Hammocks at the Port of Swansboro Phase II. The reasons for disapproval shall be stated in writing and reference shall be made to the specific section(s) of the ordinance to which the plat does not comply. The applicant may make the recommended revisions and resubmit a revised preliminary plat or may appeal the disapproval of the preliminary plat to the Onslow County Superior Court.; or 3) Motion to Approve the Preliminary Plat for the Hammocks at the Port of Swansboro Phase II with Conditions. If the Board conditionally approves the preliminary plat, the conditions and reasons thereof shall be stated in writing.
b. Budget Amendment - Municipal Park Improvements and Kayak Launch Replacement Sonia Johnson Finance Director Municipal Park Improvements - On March 15, 2017, NC Department of Natural and Cultural Resources awarded the Town $196,324 through the Connect NC Bond Grant Program for feature and accessibility enhancements at Municipal Park. The total project budget - $245,404. Of that grant, $17,985 was set aside to fund asphalt for a 50-space parking lot for park patrons. 3 Engineer estimates provide a project cost of $99,990. Public Works staff can perform some of the installation; reducing the cost to an estimated $67,000. A request is made to appropriate $50,000 from the General Fund Balance to complete the Parking Lot project. Kayak Launch Replacement - In April of 2014, The Town received a grant of $32,250 from NC Department of Environment and Natural Resources for the Public Beach and Coastal Waterfront Access Program at Bicentennial Park. The grant was funded to construct a canoe/kayak launch, gangway, concrete walkway to parking, and a 45-foot boardwalk extension. In September 2018 Hurricane Florence severely damaged Bicentennial Park; the kayak launch was lost/damaged, and the gangway was damaged. There was discussion among the Board to consider relocating the kayak launch. However, staff believes certain language in the grant contract requires that the kayak launch remain in its original location at the Bicentennial Park. The quote to repair/replace those portions last/damaged is $20,826.50. A request is made to appropriate the $20,826.50 from the General Fund for such repairs/replacement.
Action Needed: Motion to approve Budget Amendment 2020-5
c. Project Budget Ordinance Amendment - Municipal Park Improvements Sonia Johnson Finance Director In connection with Budget Ordinance Amendment #2020-5, the project budget needs to be amended to reflect the transfer of $50,000 from the General Fund and the corresponding increase to project cost in the amount of $50,000.
Action Needed: Motion to approve Project Budget Ordinance Amendment #6 to the Municipal Park Improvement Project
d. Financial Report - January 2020 Sonia Johnson Finance Director
e. Budget Schedule Amendment Chris Seaberg Town Manager Action Needed: Discuss and amend schedule for Budget Workshop
4 VII. Items Moved from Consent VIII. Public Comment Citizens have an opportunity to address the Board for no more than five minutes regarding items not listed on the Agenda.
IX. Manager’s Report/Comments Chris Seaberg December Departments Report Town Manager January Departments Report Future Agenda Items X. Board Comments Board of Commissioners XI. Closed Session - None XII. Adjournment Board of Commissioners
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Town of Swansboro Board of Commissioners January 13, 2020 Regular Meeting
In attendance: Mayor John Davis, Mayor Pro Tem Frank Tursi, Commissioner Pat Turner, Commissioner Harry PJ Pugliese, Commissioner Larry Philpott, and Commissioner Laurent Meilleur.
********************************** Call to Order/Opening Prayer/Pledge of Allegiance The meeting was called to order at 6:00 pm. Doug Tyler of One Harbor Church gave the invocation and Mayor Davis led the Pledge of Allegiance.
Public Comment Citizens were offered an opportunity to address the Board regarding items listed on the agenda. Those who spoke were:
Fred Schachter of 148 Smallwood Road in Hubert NC (former President of Swansboro Chamber of Commerce) stated that he had inquired with the Planner if any complaints had come in regarding flags since she came onboard with the Town and she had told him no. He further stated that feather flags were the easiest flag to install and remove daily. He encouraged the Board to allow feather flags when the sign regulations were reviewed/amended. If prohibited, businesses would begin to park trucks and other vehicles at roadside.
Junior Freeman reminded the Board of its authority to appoint the Tourism Development Authority Chairman. He suggested that the Board also appoint a Vice Chair in case the Chair was unable to attend its meetings.
Mike Zangwill/803 Fort Sumter Way inquired when the Board would consider maintenance of the streets in the Charleston Park subdivision. The roads were crumbling, and other issues were evolving rapidly. He urged the Town to review and take action to accept the roads and street maintenance as soon as possible. Mayor Davis responded stating that Ms. Caldwell/resident of Charleston Park had been encouraged to work with the Manager, himself and the Town Attorney to come to some resolution. There was some ownership expected from the property owners that had not been done to date; he encouraged that meeting for further progress. Mary Woodard/702 Meeting Park Lane in Charleston Park asked when the meeting could be held. Ms. Woodard was asked to meet with the Manager after the meeting to set up a time. Mayor Pro Tem Tursi asked that the Town Attorney also be present at such meeting.
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Adoption of Agenda Mayor Pro Tem Tursi asked that the FY Budget Calendar be pulled from Consent for discussion. Mayor Davis also noted that the Agenda would be amended to consider items under Business Non-Consent (c) and (d) as one item (c) Budget Ordinance Amendment 2020-4. On a motion by Commissioner Turner, seconded by Commissioner Philpott, the amended Agenda and Consent Items below were unanimously approved.
- December 3, 2019 Special Meeting Minutes - December 10, 2019 Organizational Meeting Minutes - Tax Refunds for: Morse, Matthew John $ 81.85 Tag Surrender Phillips, Shane Michael $ 44.84 Military Smith, Alan Walker $ 34.83 Military Malon, Figueroa Marcelino Jr. $ 4.90 Military Vazquez, Domingo $ 55.62 Tag Surrender Wolff, Bonnie Loftin $ 8.11 Tag Surrender
Appointments Board Appointments – Multiple appointments were made as indicated below. On the Planning Board there was one in-town vacant seat, two ETJ vacant seats and one seat expired 1/2020. The Historic Preservation Commission would also need to assign/select one of its members to serve as the HPC representative to the Planning Board. Christina Ramsey had indicated she would like to be considered for reappointment and was re-appointed to another term. Scott Chadwick was appointed as an in-town member and a recommendation would be sent to Onslow County recommending that Edward McHale be appointed as an extra-territorial jurisdiction member (ETJ).
On the Historic Preservation Commission there were two vacant seats and two re- appointments to consider for Linda Thornley and April Clark (alternate). April Clark had indicated interest to remain as an alternate. However, Linda Thornley indicated she was only interested in re-appointment to the TDA due to family obligations. April Clark was re-appointed as an alternate, Christina Ramsey and Kim Kingery were appointed, leaving one vacancy.
On the Parks/Rec Board there was one in-town vacancy and one ETJ vacancy. Debra Pylypiw was appointed as an ETJ member. There were no other applications on file, leaving one in-town vacancy.
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On the Tourism Development Authority three seats were set to expire: Sherrie Hancock, Linda Thornley, and Hal Silver. Mr. Silver indicated he did not wish to be re-appointed. Sherrie Hancock was re-appointed, leaving two vacant seats.
Public Hearing Findley, Hargett, Matthews/Zetaier Rezoning Request from R20SF to O/I – At the October 22, 2019 regular meeting, the Board reviewed a rezoning proposal from Mr. SD “Junior” Freeman with Emerald Coast Inc. to rezone three parcels along Queens Creek Road from R-20 SF, Residential, to B-1, Highway Business. They voted unanimously to table the request, citing they felt O-I, Office and Institutional, was a more appropriate zoning designation in this location. Mr. Freeman subsequently withdrawn his application and submitted a request to rezone the properties O-I, Office and Institutional.
At their December 2, 2019 regular meeting, the Planning Board voted unanimously to recommend approval of the rezoning request, stating that it was consistent with the approved Comprehensive Plan, specifically the CAMA Land Use Plan.
The public hearing was opened at 5:55 pm. Comments were heard from:
Junior Freeman, representing the property owners indicated that although the property owners preferred B1 zoning, they would settle for O/I and noted that O/I had 34 permitted uses and 26 special uses.
Amy Hicks of 42 Pirates Cove Drive resided behind the parcels in question and was opposed to the rezoning; stating that traffic was already horrific and could not imagine what benefit a strip mall would add except to generate more traffic.
The public hearing was closed at 5:59 pm.
In response to inquiries from the Board regarding property owner notifications and whether the parcel owners would voluntarily annex into the town limits, Planner Jennifer Ansell shared that property owner notifications mailed out actually exceeded the requirement by law and although Mr. Freeman had indicated at a previous meeting the parcel owners would consider annexation, it could not be made a condition of rezoning.
On a motion by Commissioner Turner, seconded by Mayor Pro Tem Tursi Resolution 2020-R2 was adopted which stated that the Board of Commissioners consider the rezoning of tax parcels 1313-85, 1313-87 and 1313-88 located on Queens Creek Road (SR 1509) from R-20 SF to O-I, to be consistent with the future land use map, stated goals, and expressed intent of the Town of Swansboro CAMA Land Use Plan.
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Further, on a motion by Commissioner Turner, seconded by Mayor Pro Tem Tursi Ordinance 2020-O1 rezoning parcels 1313-85, 1313-87 and 1313-88 located on Queens Creek Road from R20SF to O/I was adopted by unanimous vote.
Business Non-Consent Temporary Signs – On January 17, 2019, the Board of Commissioners and Planning Board held a joint workshop meeting to discuss Temporary Signs. Among the discussion at that meeting were concerns over feather flags, the allowance of 45 days for banners and other temporary signs, and real estate “open house” signage.
The Planning Board continued their review of temporary signs at their February 4th regular meeting. At that meeting, the Board voted 3 to 1 to recommend the following proposed changes to the ordinance: • To add definitions for “Sign, Appurtenant (non-residential)” and “Sign, Appurtenant (residential)”; • To add a provision for temporary “open house” signage; • To add provisions for “Residential Appurtenant Signs”; • To delete the current provisions for “Business, banners, pennants, and flags”; • To delete the current provisions related to “Mobile Signs” and “Portable Signs”; and • To add provisions for “Appurtenant (Secondary) Signage.
When the recommendation went to the Board of Commissioners at their February 26th meeting, action was deferred until a later date, and the scheduled public hearing was not held. The cited their reasons for deferment being that the proposed amendment was too restrictive for businesses, it lacked clarity, and that the Planning Board had been asked to create regulations for separate zoning districts, which was not done.
In August, the former Planner met with business owners along Highway 24 and within the Historic District to discuss temporary sign provisions. However, the current Planner Jennifer Ansell felt the recommendations from those meetings seemed to address provisions that were already allowed by the existing ordinance. Additionally, it appeared that some of the discussion on temporary signs stemmed from the Reed v. Town of Gilbert (2015) U.S. Supreme Court case, which ruled that sign regulations must be content-neutral, but regulations could address size, location, and type of construction (monument signs, wall signs, etc.).
Planner Ansell sought guidance whether to 1) proceed and schedule a Public Hearing in February to consider the draft Ordinance prepared for the February 26, 2019 meeting; or 2) have Staff work with the Planning Board to refine the current ordinance allowances for temporary signs and remove specific content-based provisions.
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Manager Seaberg emphasized that some formal action was needed on the recommendation submitted by the Planning Board in February of 2019. Enforcement had been noted as an issue for former Planner Andrea Correll. However, Planner Ansell and Manager Seaberg did not share that concern and stood ready to enforce whatever the Code provided.
Discussion among the Board indicated that all agreed that additional input from the community and Planning Board review was needed. It was noted that the intent to redo the ordinance was to comply with the updating Land Use Plan and ultimately to address the appearance of the Highway 24 Corridor.
Direction to Staff was to work further with the Planning Board to refine the current ordinance allowances for temporary signs and remove specific content-based provisions. In addition, with new members on the Board of Commissioners and Planning Board, a workshop was to be scheduled so everyone understood the future direction for temporary signs and conformity with the Land Use Plan.
Sign Amortization – At their January 10, 2017 meeting, the Board voted to prohibit all freestanding signs which were not monument style-signs. This amendment effectively rendered all existing freestanding signs, which were not by definition monument signs, non-conforming.
When the Unified Development Ordinance (UDO) was adopted on March 15, 2005, the ordinance contained an amortization clause which stated that non-conforming freestanding signs must be removed within ten years after the adoption of the ordinance. The Town began sending initial notifications to property owners in March of 2011 of the March 15, 2015 compliance deadline. In 2013 and 2014 as a result of the adoption of the Gateway to Swansboro Report, the UDO was modified again to allow monument-style signs, but still allowed pole and pylon-style freestanding signs. Some of these signs identified as non-conforming in 2011 were brought into compliance or replaced when the Town initiated the amortization process.
In consultation with the Town Attorney, Staff determined that the amortization provision was enduring, therefore, any remaining or newly created nonconforming freestanding signs would be required to be brought into compliance by January 10, 2027. There were approximately 77 non-conforming freestanding signs. Six (6) sign permits had been issued for modifications to existing non-conforming signs, 1 for a new sign, and 1 to replace a damaged sign since the 2017 amendment. A similar amortization clause existed for Billboard Signs. Nonconforming billboards were to be brought into conformity within ten years of the ordinance adoption on March 15, 2005.
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By ordinance, billboard signs were prohibited on parcels adjoining the NC Highway 24 right-of-way, there were 4 existing nonconforming billboard signs.
Mayor Davis asked Attorney Parson was asked to speak on the legality that may or may not have been created due to lack of activity and if class action lawsuits were possible. Attorney Parson stated that amortization was authorized, and a time frame must be reasonable. Ten (10) years, in this case, was certainly reasonable. A “grandfathered clause” could have been applied but was not done in this case. The fact that letters were not sent did not change the fact that the amortization still existed. If letters were sent today, those whom it applied would still have 7.5 years to conform. The two signs that were approved after the ordinance was approved; the Town would not be able to require conformity because they were approved by the Town. Regarding class action lawsuits, seven-five would qualify as a class. Whether the Town would win or lose could not be answered. He further explained that what the Town was effectively doing with amortizing was taking property but giving a reasonable length of time to make use of the property. For instance, if a new sign was erected in 2016 and it was expected to have use of life of 25 years, the amortizing shortened that life to 10 years, so the full benefit was not received. Presumably, there would be a measure of damages someone could come up with. The State and NC Supreme Court have both said that this would not be a “taking” as long as the ordinance and enforcement were reasonable. Just because letters were not sent did not mean the signs were now conforming, according to Attorney Parson. In response to questions from the Board, Planner Ansel shared that in 2005 when the UDO was adopted single businesses were allowed one sign up to 20 feet in height. Shopping centers were allowed up to 30 feet in height. Those higher were made non- conforming. A separate amortization was put on billboard signs and there were four non-conforming billboard signs at that time. Additional amendments in 2014 would have made them non-conforming also. Those signs brought into conformity were now non-conforming with the 2017 amendments. Attorney Parson stated that any future notifications needed to be clear that non-conforming signs from 2005 would not be allowed an additional 10 years to comply with the ordinance; those signs needed to be removed now. Regarding the billboard signs, Attorney Parson did not believe the Interstate Law would allow Town to require conformance in removing the billboards.
Planner Ansell sought direction to; 1) proceed with sign amortization of non- conforming freestanding and billboard signs; and/or 2) to amend the Unified Development Ordinance to refine the provisions for nonconforming signs and to correct the inconsistency related to the definition of freestanding sings.
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Direction was given to send letters to non-conforming sign owners that compliance was required by 2028. Those with violations resulting from the 2005 UDO adoption should be sent notices to remove the non-conforming signs now, no further grace period would be given.
Budget Ordinance Amendment #2020-4 – Amendments to consider were: Public Buildings: The flooring in the PSB (Fire Department side) was installed approximately 5 years ago. At that time, funds were not available to install a commercial grade flooring. What was installed was an inexpensive peel and stick flooring that had proven to be unsuitable in heavy traffic areas. An appropriation of $15,000 from Fund Balance was requested to replace the flooring with commercial grade flooring.
Police Department: On September 17, 2019, Allstate awarded the Town $10,000 to install cameras at the intersections along the NCDOT intersections. Acceptance of the $10,000 was required.
Multiple Departments: At the November 12th BOC Meeting, Manager Seaberg reported that in response to the direction given the month prior, he and the Finance Director estimated $12,000 would be needed to payout those overtime hours for exempt employees following Hurricane Florence. It was noted that further discussion was warranted for the additional work for months, sometimes years beyond the normal duties following a hurricane. As an example, the Finance Director was still working with FEMA to secure reimbursements to the Town for costs associated with Hurricane Florence and Dorian. Board members were agreeable to proceed with the payout to exempt employees. An appropriation of $11,297.85 was needed from Fund Balance.
Multiple Departments: As part of the FY 2019-2020 Operating Budget, the Town opted to share the cost of Health Insurance Premiums with employees. At the December 10, 2019 Organizational Meeting, Mayor Pro Tem Tursi requested discussion and possible action on anticipated cost for the Town to begin covering these costs to employees for the remainder of the Fiscal Year.
On an inquiry whether the Town should expend funds to improve the PSB until a determination was made whether further improvements were needed for it to remain as the Emergency Operations Center, Manager Seaberg recommended that the flooring be repaired due to safety issues regardless of whether the building remained as the EOC or not. Commissioner Meilleur shared concern with proceeding with floor repairs before other unknown potential repairs were made; typically, flooring was the last
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repair/renovation completed. Public Works Director Jim Stipe proposed a wood floating floor which shouldn’t have an impact on future renovations.
Commissioner Pugliese inquired whether the cameras would be installed at every intersection. Manager Seaberg stated that there probably was not enough funding for every intersection. A priority list had been established. On an additional inquiry, Manager Seaberg was unclear on the exact camera details but believed the cameras could be used for accident investigation. He would provide further details on the cameras and whether they would have handheld zoom and/or other features. A partnership with the MPO was made to assure that the best cameras were purchased.
Although Mayor Pro Tem Tursi was okay with funding the health insurance premiums from fund balance, he was under the impression that it might be taken from funds the Town had allocated in the sidewalk fund knowing that the Town would not expend those funds in the current fiscal year. Manager Seaberg confirmed that the sidewalk funds would not be expended in the current fiscal year. Mayor Davis felt utilizing funds that were committed and expressed to legislators in efforts to gain their support would be disrespectful. He shared that NCDOT had committed to provide the Town with $366,668 toward sidewalk improvements. The Town had allocated $116,000 through resolution 2019-R9. Manager Seaberg clarified that the $366,668 would be provided by means of infrastructure and not monetarily to the Town. Sidewalk installations would occur along NC-24 (Corbett Ave.) from SR 1511 (Hammocks Beach Rd.) to SR 1514 (Phillips Loop Rd.); Old Hammocks Beach Road from SR 1513 (Deer Island Rd.) to existing sidewalk near Fredericks Lane; SR 1511 (Hammocks Beach Rd.) from the Moore’s BBQ sidewalk to Park Place Drive by NCDOT.
Commissioner Turner questioned why the sidewalks were not installed beyond the sidewalks that were already existing/installed by Walmart when the new light was added at Norris Road. Manager Seaberg shared that a former staff member had given permission to install the sidewalks when the parcels were developed. She further inquired whether the Town paid for family healthcare coverage. Manager Seaberg stated that family coverage had always been the responsibility of the employee.
On a motion by Commissioner Meilleur, seconded by Commissioner Philpott, Budget Ordinance Amendment 2020-4 was unanimously approved.
Budget Calendar for Fiscal Year 2020/2021 – Mayor Pro Tem Tursi indicated that more discussion may be needed on specific dates for budget workshops and was it possible to begin holding the workshops in March. Staff would revisit the proposed dates and bring the calendar back next meeting. Manager Seaberg had intentions to hold a separate Goals/Projects meeting. Page 8 of 10
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Public Comments Citizens were offered an opportunity to address the Board regarding items not listed on the agenda. No comments were heard.
Doug Tyler of One Harbor Church indicated that once OHC built its new facility it had been offered for use as an Emergency Operations Center. He also provided a handout on equipment expense and further lease options for the Board to consider. The lease for OHC was set to expire in March 2020. Manager Seaberg was working with OHC on that lease.
Manager’s Report/Comments In additional to the report provided in the agenda packet, Manager Seaberg reported on Tide Gauge Equipment that measures out the level of the water and fluctuates with the lunar tides, high tides, and low tides was currently on loan at no cost to the Town. Beaufort NC was the official location that tide data was collected for in our area and was reporting some historic levels of late. Mayor Tem Tursi added that the Town could use the data to help properly plan for flooding and the stormwater drains were greatly affected by the tides in Swansboro. A future permit fee for the equipment would be approximately $700.
Reminders:
February 6 Advisory Board Banquet – brief annual reports from each Board would be received.
February 22 Chamber of Commerce Business Expo - all agreed to participate.
Board Comments Commissioner Meilleur enjoyed his first meeting.
Mayor Pro Tem Tursi thanked Staff and Board on a complicated agenda for its first meeting of 2020.
Commissioner Philpott looked forward to year ahead. He noted that the Town lost a former Commissioner Jim Allen and business owner John Willard/Dudley’s Marina this past week.
Commissioner Pugliese agreed on the robust agenda but felt the Board had worked through it well.
Commissioner Turner asked that the Board Conduct/Ethics Policy be sent out for review and signature. She also noted that the Board still needed to complete its review work on wetland issues. Page 9 of 10
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Mayor Davis felt the Board worked well on the agenda tonight. Issues in Town he noted were Swansboro had a 20-25% poverty rate, and sex trafficking and drug addiction were becoming an issue. He would also like to recognize the late/former Commissioner Jim Allen and business owner John Willard, give future recognition to legislators who worked to gain sidewalk funding for Swansboro and hold the grand opening on phase II of the Town Hall parking lot which had been delayed due to scheduling conflicts.
Adjournment On a motion by Mayor Pro Tem Tursi, seconded by Commissioner Philpott, the meeting adjourned at 7:57pm.
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Town of Swansboro Board of Commissioners January 27, 2020 Regular Meeting
In attendance: Mayor John Davis, Mayor Pro Tem Frank Tursi, Commissioner Pat Turner, Commissioner Harry PJ Pugliese, Commissioner Larry Philpott, and Commissioner Laurent Meilleur.
********************************** Call to Order/Opening Prayer/Pledge of Allegiance The meeting was called to order at 6:00 pm. Mayor Davis gave the invocation and led the Pledge of Allegiance.
Public Comment Citizens were offered an opportunity to address the Board regarding items listed on the agenda. Those who spoke were:
Amelia Dees-Gillette/Swansboro Historic Association asked the Board to continue its commitment to SHA as One Harbor Church made plans to construct and move to a permanent home in Swansboro. She asked for consideration in utilizing the entire building, continued maintenance of the building and sought memberships from those who were not members. She announced upcoming events that would support SHA.
Adoption of Agenda Mayor Davis asked that the appointment of Linda Thornley to the Tourism Development Authority be added to the Agenda for action.
On a motion by Commissioner Philpott, seconded by Commissioner Turner, the amended Agenda was unanimously approved. There were no Consent Items to consider.
Recognitions/Presentations Resolution 2020-R3 Awarding Retired Sergeant Thomas Peluso Service Badge and Sidearm North Carolina General Statues 20-187.2 permitted municipalities to award service badges and sidearms to those qualifying law enforcement officers. Sergeant Thomas Peluso officially retired after 8 years of dedicated service to the Town of Swansboro on December 31, 2019.
On a motion by Commissioner Turner, seconded by Commissioner Philpott, Resolution 2020-R3 was unanimously adopted.
Chief Ken Jackson recognized Sergeant Peluso’s dedication to the Town and the Police Department. Along with the department in full force, Chief Jackson, Lieutenant Dwyane Taylor and other officers presented Sergeant Peluso with his service badge, sidearm and shadowbox containing a merit certificate and all his badges and service
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16 pins awarded during his tenure with the Town. Mayor Davis and Manager Seaberg also thanked Sergeant Peluso for his dedication to the Town. Sergeant Peluso expressed gratitude to the Town and the Police Department for the time he spent doing what he loved. Former Police Chief Ed Parrish was in attendance and spoke on his hiring of Sergeant Peluso and it being a great decision for the Town.
TDA Appointment On a motion by Commissioner Turner, seconded by Commissioner Philpott Linda Thornley was re-appointed to the Tourism Development Authority by unanimous vote.
Department Introductions Manager Seaberg and the Department Heads gave brief introductions of their departments and were available to answer any questions. Inquiries/responses by department were:
Finance – software proposals would be forthcoming during budget discussions. Demo’s on five programs had occurred and site visits planned.
Parks/Recreation – weekend staffing was needed and would be a FY 20/21 budget request. Finalization of the Municipal Park improvements and the Master Parks Plan would be priority. Day camp fees were covering the cost to fund the programs and fees were comparable to other area municipalities. Director Stanley believed the attendance for programs was probably 25% in-town residents and 75% outside the town participants – she would need to verify those numbers though. Events/programs were advertised through social media outlets to include about 10 community pages, radio stations, and a partnership with Onslow County Tourism. The Recreation Center offered two main spaces for events/programming. There were three on-going rentals with Onslow County Seniors Monday-Friday 9-1, Weight Watchers on Tuesday evenings, and Sylvan Learning on Tuesday/Thursday. In response to the usage data for the Church Street Dock, Director Stanley shared that slip rentals were most popular in the Fall and Spring due to transit boaters. A dockmaster would be beneficial during these times and downtown events. Additional facilities, such as showers and a washer/dryer were items that were asked about often by transit boaters.
Public Works – Manager Seaberg informed that the Town had recently filled the position for Inspector. Paul Brown was being trained by Public Works Director/Inspector Jim Stipe; he was also doing some maintenance work also. The department structure chart should be amended to show the Inspector supervised by the Director instead of just the Crew Leader. It was noted that the Christmas lighting throughout Town needed maintenance and improvement.
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Planning - In addition to code amendments following adoption of the Land Use Plan Update and sign amendments, there were two mandates for 2020 – the adoption of the new Flood Insurance Rate Maps and code amendments to reflect the changes in law with NCGS Chapter 160D. All amendments relating to NCGS 160D must be completed by January 2021. Staff was given instruction to expand its outreach for focus group discussion on temporary signs, consider amending the program of work for the Planning Board to include the mandates, consider bringing in experts to discuss the CAMA LUP – its importance and to define wetlands and climate resiliency. There was discussion on sign enforcement and a list of potential violations of which would be forwarded to Planner Ansell. Additional staff for compliance issues would be a wish list item for FY 20/21.
Fire – staffing would the biggest wish list item for FY 20/21. Chief Tessing explained the regulations required for structure fires. Four firefighters must response for the call not be reported as a non-response. The Town already had one non-response for the year. A second non-response would result in the Town being put on probation. A 3rd could result in the Town’s ISO rating dropping which ultimately would negatively affect resident’s insurance rates. The lack of volunteers was nation-wide.
Police –statistics shown for reportable calls/accidents in 2018 and 2019 reflected a reduction in 2019. Chief Jackson attributed the reduction to officers beefing up patrol/making more traffic stops and more visibility in the community. He would double check the statistic numbers provided. In discussion, Chief Jackson indicated that the future camera installations at intersections would provide speed and traffic count data. Cameras come both in a handheld version and vehicle/stoplight installation.
Due to the late hour, Board members agreed to a Special Meeting on Tuesday, February 4th at 5:30pm to consider the remaining items under Business Non-Consent.
Public Comments Citizens were offered an opportunity to address the Board regarding items not listed on the agenda. No comments were heard.
Manager’s Comments Manager Seaberg reminded Board members of the February 6, 2020 Advisory Board Banquet at 5:30pm at Town Hall.
Board members had also agreed to participate in the Chamber of Commerce Business Expo on Saturday, February 22 from 10am – 3pm. Manager Seaberg asked that
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18 members confirm their time slot for the event. A Preview Party/Dinner would be held on Friday, February 21 at 5:30 pm for those interested.
Board Comments Board members expressed appreciation for the Department Information Session indicating that it was overwhelming what the Town’s small staff was able to accomplish each day. They were also impressed by the comradery shown from the Police Department as Sergeant Peluso retired.
Closed Session On a motion by Commissioner Philpott, seconded by Commissioner Pugliese, the Board entered by unanimous vote, Closed Session pursuant to NCGS 143-318.11 (a)(3) to allow Attorney Parson to provide an update to the Board on legal closed session matters. No action was expected.
Pursuant to a motion duly made during Closed Session, the Board re-entered Open Session at 8:45pm. No action was taken.
Adjournment On a motion by Mayor Pro Tem Tursi, seconded by Commissioner Turner, the meeting adjourned at 8:45pm.
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Resolution of Appreciation
Honoring Alphonso Hill Jr.
WHEREAS, the Town of Swansboro wishes to acknowledge and congratulate the achievements of Eagle Scout, Alphonso Hill Jr; and
WHEREAS, Alphonso Hill Jr. is a sophomore at Swansboro High School and advanced to the rank of Eagle Scout in November of 2019; and
WHEREAS, it is acknowledged that he is one of the youngest in Onslow County and is one of the 2% of African Americans in scouting to achieve the Eagle Scout rank; and
WHEREAS, it is acknowledged that he has earned a total of 46 merit badge and received 4 Eagle Palms; and
WHEREAS, this young man erected a 25-foot flagpole at the White Oak Missionary Baptist Church in Maysville for his Eagle Scout project to show appreciation for those who have served in the military.
NOW THEREFORE, BE IT RESOLVED, that I, Mayor John Davis and the Board of Commissioners of the Town of Swansboro are proud to honor Eagle Scout, Alphonso Hill Jr., for his dedication to earn the rank of Eagle Scout and as a member of Boy Scout Troop 743.
This 24th day of February, 2020.
______John Davis, Mayor Attest: ______Paula Webb, Assistant Manager/Clerk
20
TOWN OF SWANSBORO NORTH CAROLINA
FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR’S REPORT
FOR THE YEAR ENDED JUNE 30, 2019
GREGORY T. REDMAN, CPA TARBORO, NORTH CAROLINA
21
Financial Statements Town of Swansboro Swansboro, North Carolina
Board of Commissioners
John Davis, Mayor Brent Hatlestad Roy Herrick Philip Keagy Patricia Turner Frank Tursi
Administrative Staff
Sonia Johnson, Finance Director
22
Town of Swansboro, North Carolina Table of Contents June 30, 2019
Page Financial Section:
Independent Auditor's Report 1
Management's Discussion and Analysis 4
Basic Financial Statements:
Government-wide Financial Statements:
Exhibit 1 Statement of Net Position 15
Exhibit 2 Statement of Activities 16
Fund Financial Statements:
Exhibit 3 Balance Sheet - Governmental Funds 17
Exhibit 3 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position 18
Exhibit 4 Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds 19
Exhibit 4 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 20
Exhibit 5 Statement of Revenues, Expenditures, and Changes in Fund Balances - Annual Budget and Actual - General Fund 21
Exhibit 6 Statement of Fund Net Position – Proprietary Funds 22
Exhibit 7 Statement of Revenues, Expenses, and Changes in Fund Net Position – Proprietary Funds 23
Exhibit 8 Statement of Cash Flows – Proprietary Funds 24
Notes to the Financial Statements 25
23
Town of Swansboro, North Carolina Table of Contents June 30, 2019
Page Required Supplemental Financial Data:
Schedule of the Proportionate Share of the Net Pension Liability – Local Government Employees’ Retirement System 56
Schedule of Contributions – Local Government Employees’ Retirement System 57
Schedule of Changes in Total Pension Liability – Law Enforcement Officers’ Special Separation Allowance 58
Schedule of Total Pension Liability as a Percentage of Covered Payroll 59
Schedule of Changes in the Total OPEB Liability and Related Ratios 60
Individual Fund Statements and Schedules:
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual – General Fund 61
Combining Balance Sheet - Non-major Governmental Funds 68
Combining Statement of Revenues, Expenditures, and Changes in Fund Balance - Non-major Governmental Funds 69
Schedules of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual:
Capital Reserve Fund 70
Parks & Recreation Reserve Fund 71
Public Safety Building Project Fund 72
Sleeping Quarters Project Fund 73
Waterfront Plan Implementation Project Fund 74
Information Technology Project Fund 75
Municipal Park Improvements Project Fund 76
Schedules of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual:
Stormwater Fund 77
Solid Waste Fund 78
24
Town of Swansboro, North Carolina Table of Contents June 30, 2019
Page
Other Schedules:
Schedule of Ad Valorem Taxes Receivable 79
Analysis of Current Tax Levy - Town-wide Levy 80
Compliance Section:
Report on Internal Control over Financial Reporting and on Compliance and Other Matters on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 81
25
Financial Section
26
GTR
Member Member North Carolina Association of American Institute of Certified Public Accountants Certified Public Accountants
Independent Auditor’s Report
To the Honorable Mayor and Members of the Board of Commissioners Swansboro, North Carolina
Report on the Financial Statements
I have audited the accompanying financial statements of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of Town of Swansboro, North Carolina, as of and for the year ended June 30, 2019, and the related notes to the financial statements, which collectively comprise the Town’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
My responsibility is to express opinions on these financial statements based on my audit. I conducted my audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The financial statements of Swansboro Tourism Development Authority were not audited in accordance with Government Auditing Standards.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, I express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall financial statement presentation of the financial statements.
I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinions
1
410 Dowd Street • Post Office Box 369 • Tarboro, NC 27 27886 • Phone: (252) 641-1999 • Fax: (252) 641-1946
Opinions
In my opinion, based on my audit, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the Town of Swansboro, North Carolina as of June 30, 2019, and the respective changes in financial position and cash flows, where appropriate, thereof and the respective budgetary comparison for the General Fund for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis, Other Postemployment Benefits’ Schedules of Changes in the Total OPEB Liability and Related Ratios, and the Local Government Employees’ Retirement System’s Schedules of Proportionate Share of the Net Pension Liability and Contributions and the Law Enforcement Officers’ Special Separation Allowance schedules of the Changes in Total Pension Liability and Total Pension Liability as a Percentage of Covered Payroll be presented to supplement the basic financial statements. Such information, although not a required part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. I have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to my inquiries, the basic financial statements, and other knowledge I obtained during my audit of the basic financial statements. I do not express an opinion or provide any assurance on the information because the limited procedures do not provide me with sufficient evidence to express an opinion or provide any assurance.
Supplementary and Other Information
My audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements of the Town of Swansboro, North Carolina. The combining and individual fund statements, budgetary schedules, and other schedules are presented for purpose of additional analysis and are not a required part of the basic financial statements.
The combining and individual fund statements, budgetary schedules and other schedules are the responsibility of management and were derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America by me. In my opinion, based on my audit, the procedures performed as described above, the combining and individual fund statements, budgetary schedules and other schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole.
2 28
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, I have also issued my report dated November 27, 2019 on my consideration of Town of Swansboro, North Carolina’s internal control over financial reporting and on my tests of its compliance with certain provisions of laws, regulations, contracts, and grants agreements, and other matters. The purpose of the report is to describe the scope of my testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Town of Swansboro, North Carolina’s internal control over financial reporting and compliance.
Tarboro, North Carolina November 27, 2019
3 29
Management’s Discussion and Analysis
30
Management’s Discussion and Analysis
As management of the Town of Swansboro, we offer readers of the Town of Swansboro’s financial statements this narrative overview and analysis of the financial activities of the Town of Swansboro for the fiscal year ended June 30, 2019. We encourage readers to read the information presented here in conjunction with additional information that we have furnished in the Town’s financial statements, which follow this narrative.
Financial Highlights
Highlights of the Town’s fiscal year ended June 30, 2019 include:
• The assets of the Town of Swansboro exceeded its liabilities and deferred inflows of resources at the close of the fiscal year by $7,509,250 (net position).
• The government’s total net position increased by $569,578.
• As of the close of the current fiscal year, the Town of Swansboro’s governmental funds reported combined ending fund balances of $3,004,099, an increase of $513,456 in comparison with the prior year. Approximately 72 percent of this total amount, or $2,144,927, is unassigned and available for spending at the government’s discretion.
• At the end of the current fiscal year, unassigned fund balance for the General Fund was $2,144,927, or 43 percent of total general fund expenditures for the fiscal year.
• Property and sales taxes are the two largest sources of revenues within the Town’s governmental fund.
• The Town has achieved the Certificate of Achievement for Excellence in Financial Reporting for the 23rd consecutive year.
Overview of the Financial Statements
This discussion and analysis are intended to serve as an introduction to Town of Swansboro’s basic financial statements. The Town’s basic financial statements consist of three components; 1) government- wide financial statements, 2) fund financial statements, and 3) notes to the financial statements (see Figure 1). The basic financial statements present two different views of the Town through the use of government-wide statements and fund financial statements. In addition to the basic financial statements, this report contains other supplemental information that will enhance the reader’s understanding of the financial condition of the Town of Swansboro.
4 31 Management Discussion and Analysis Town of Swansboro
Required Components of Annual Financial Report Figure 1
Management ’s Basic
Disc ussion and Financi al
Analysis Statements
Government-wide Fund Notes to the
Financial Financial Financial
Statements Statements Statements
Summary Detail
Basic Financial Statements
The first two statements (Exhibits 1 and 2) in the basic financial statements are the Government-wide Financial Statements. They provide both short and long-term information about the Town’s financial status.
The next statements (Exhibits 3 through 8-A) are Fund Financial Statements. These statements focus on the activities of the individual parts of the Town’s government. These statements provide more detail than the government-wide statements. There are three parts to the Fund Financial Statements: 1) the governmental funds statements; 2) the budgetary comparison statements; and 3) the proprietary fund statements.
The next section of the basic financial statements is the notes. The notes to the financial statements explain in detail some of the data contained in those statements. After the notes, supplemental information is provided about the Pension Liability, Law Enforcement Officer’s Special Separation Allowance, and the Town’s Health Care Plan. A section follows to show details about the Town’s individual funds. Budgetary information required by the North Carolina General Statutes also can be found in this part of the statements.
5 32 Management Discussion and Analysis Town of Swansboro
Government-wide Financial Statements
The government-wide financial statements are designed to provide the reader with a broad overview of the Town’s finances, similar in format to a financial statement of a private-sector business. The government-wide statements provide short and long-term information about the Town’s financial status as a whole.
The two government-wide statements report the Town’s net position and how it has changed. Net position is the difference between the Town’s total assets and deferred outflows of resources and total liabilities and deferred inflows of resources. Measuring net position is one way to gauge the Town’s financial condition.
The government-wide statements are divided into three categories: 1) governmental activities and 2) business-type activities; and 3) component units. The governmental activities include most of the Town’s basic services such as public safety, parks and recreation, and general administration. Property taxes, other taxes, and intergovernmental revenues principally support these activities. The business-type activities are those that the Town charges customers to provide. These include stormwater and solid waste services offered by the Town of Swansboro. The final category is the component unit. Although legally separate from the Town, the Swansboro Tourism Development Authority is important to the Town. The Town exercises control over the Authority by appointing its members and the Town is responsible for the collection and accounting of all funds remitted to or disbursed by the Authority.
The government-wide financial statements are on Exhibits 1 and 2 of this report.
Fund Financial Statements
The fund financial statements (see Figure 1) provide a more detailed look at the Town’s most significant activities. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The Town of Swansboro like all other governmental entities in North Carolina, uses fund accounting to ensure and reflect compliance (or non- compliance) with finance-related legal requirements, such as the General Statutes or the Town’s budget ordinance. All of the funds of Town of Swansboro can be divided into two categories: governmental funds and proprietary funds.
Governmental Funds – Governmental funds are used to account for those functions reported as governmental activities in the government-wide financial statements. Most of the Town’s basic services are accounted for in governmental funds. These funds focus on how assets can readily be converted into cash flow in and out, and what monies are left at year-end that will be available for spending in the next year. Governmental funds are reported using an accounting method called modified accrual accounting that provides a short-term spending focus. As a result, the governmental fund financial statements give the reader a detailed short-term view that helps him or her determine if there are more or less financial resources available to finance the Town’s programs. The relationship between government activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds is described in a reconciliation that is a part of the fund financial statements.
6 33 Management Discussion and Analysis Town of Swansboro
The Town of Swansboro adopts an annual budget for its General Fund, as required by the General Statutes. The budget is a legally adopted document that incorporates input from the citizens of the Town, the management of the Town, and the decisions of the Board about which services to provide and how to pay for them. It also authorizes the Town to obtain funds from identified sources to finance these current period activities. The budgetary statement provided for the General Fund demonstrates how well the Town complied with the budget ordinance and whether or not the Town succeeded in providing the services as planned when the budget was adopted. The budgetary comparison statement uses the budgetary basis of accounting and is presented using the same format, language, and classifications as the legal budget document. The statement shows four columns: 1) the original budget as adopted by the board; 2) the final budget as amended by the board; 3) the actual resources, charges to appropriations, and ending balances in the General Fund; and 4) the difference or variance between the final budget and the actual resources and charges. Because the Town’s budgetary basis of accounting does not differ from the modified accrual basis used in the funds statements, reconciliation is not necessary at the end of the statement.
Proprietary Funds –The Town of Swansboro has one proprietary fund. Enterprise Funds are used to report the same functions presented as business-type activities in the government-wide financial statements. Town of Swansboro uses enterprise funds to account for its stormwater and solid waste activity operations. This fund is the same as those functions shown in the business-type activities in the Statement of Net Position and the Statement of Activities.
Notes to the Financial Statements – The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements are on pages 25-55 of this report.
Other Information – In addition to the basic financial statements and accompanying notes, this report includes certain required supplementary information concerning the Town of Swansboro’s progress in funding its obligation to provide pension benefits to its employees. Required supplementary information can be found beginning on page 56-60 of this report.
Interdependence with Other Entities – The Town depends on financial resources flowing from, or associated with, both the Federal Government and the State of North Carolina. Because of this dependency, the Town is subject to changes in specific flows of intergovernmental revenues based on modifications to Federal and State laws and Federal and State appropriations. It is also subject to changes in investment earnings and asset values associated with U.S. Treasury Securities because of actions by foreign governments and other holders of publicly held U.S. Treasury Securities.
7 34 Management Discussion and Analysis Town of Swansboro
Government-Wide Financial Analysis
Town of Swansboro’s Net Position Figure 2
Governmental Business-type Activities Activities Total 2019 2018 2019 2018 2019 2018 Current and other assets $ 3,700,382 $ 3,123,559 $ 89,650 $ (5,204) $ 3,790,032 $ 3,118,355 Capital and other noncurrent assets 7,147,972 7,272,308 100,147 86,884 7,248,119 7,359,192 Total assets $ 10,848,354 $10,395,867 $ 189,797 $ 81,680 $ 11,038,151 $ 10,477,547 Deferred outflows of resources $ 407,606 $ 272,320 $ 20,434 $ 13,268 $ 428,040 $ 285,588 Long-term liabilities $ 2,688,403 $ 2,729,160 $ 60,636 $ 29,484 $ 2,749,039 $ 2,758,644 Other liabilities 891,670 799,185 36,260 22,284 927,930 821,469 Total liabilities $ 3,580,073 $ 3,528,345 $ 96,896 $ 51,768 $ 3,676,969 $ 3,580,113 Deferred inflows of resources $ 166,637 $ 139,239 $ 964 $ 1,740 $ 167,601 $ 140,979 Net position: Net investment in capital assets $ 5,542,096 $ 5,448,901 $ 100,147 $ 86,884 $ 5,642,243 $ 5,535,785 Restricted 735,701 576,215 - - 735,701 576,215 Unrestricted 1,231,453 975,487 12,224 (45,444) 1,243,677 930,043 Total net position $ 7,509,250 $ 7,000,603 $ 112,371 $ 41,440 $ 7,621,621 $ 7,042,043
As noted earlier, net position may serve over time as one useful indicator of a government’s financial condition. The assets of the Town of Swansboro’s government-wide activities exceeded its liabilities and deferred inflows by $7,621,621 as of June 30, 2019.
The Town’s net position increased by $569,578 for the fiscal year ended June 30, 2019. The Town of Swansboro uses capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the Town of Swansboro’s net investment in its capital assets is reported net of the outstanding related debt, the resources needed to repay that debt must be provided by other sources, since the capital assets cannot be used to liquidate these liabilities. This amount is $5,642,243. An additional portion of the Town of Swansboro’s net position, $735,701, represents resources that are subject to external restrictions on how they may be used. The remaining balance of $1,243,677 is unrestricted.
Several particular aspects of the Town’s financial operations positively influenced the total unrestricted governmental net position:
• Continued diligence by Onslow County in the collection of property taxes, achieving a tax collection rate of 99.41%. • Continued success with the combined method of sales tax distribution, ad valorem and per capita which enhances our sales tax revenue. • Due diligence in operational spending.
8 35 Management Discussion and Analysis Town of Swansboro
Changes in net position- The following table presents the Town’s changes in net position for the fiscal year ended June 30, 2019:
Town of Swansboro Changes in Net Position Figure 3
Governmental Business-type Activities Activities Total 2019 2018 2019 2018 2019 2018 Revenues: Program revenues: Charges for services $ 456,595 $ 317,828 $ 431,150 $ 395,891 $ 887,745 $ 713,719 Operating grants and contributions 942,063 305,050 - - 942,063 305,050 Capital grants and contributions 99,716 263,936 - - 99,716 263,936 General revenues: Property taxes 1,696,102 1,566,980 - - 1,696,102 1,566,980 Other taxes 98,783 68,371 - - 98,783 68,371 Grants and contributions not restricted to specific programs 1,212,651 1,091,843 - - 1,212,651 1,091,843 Other 1,160,687 160,065 5,874 - 1,166,561 160,065 Total revenues $ 5,666,597 $ 3,774,073 $ 437,024 $ 395,891 $ 6,103,621 $ 4,169,964 Expenses: General government $ 2,554,830 $ 1,264,390 $ - $ - $ 2,554,830 $ 1,264,390 Public safety 1,622,146 1,485,086 - - 1,622,146 1,485,086 Transportation 308,068 278,326 - - 308,068 278,326 Economic development 310,249 140,494 - - 310,249 140,494 Cultural and recreation 321,218 357,969 - - 321,218 357,969 Interest on long-term debt 42,939 43,548 - - 42,939 43,548 Stormwater - - 71,688 78,517 71,688 78,517 Solid Waste - - 302,905 307,920 302,905 307,920 Total expenses $ 5,159,450 $ 3,569,813 $ 374,593 $ 386,437 $ 5,534,043 $ 3,956,250 Increase in net position before transfers and special items $ 507,147 $ 204,260 $ 62,431 $ 9,454 $ 569,578 $ 213,714 Transfers and special items 1,500 (20,000) 8,500 20,000 10,000 -
Increase in net position $ 508,647 $ 184,260 $ 70,931 $ 29,454 $ 579,578 $ 213,714 Net position, July 1 7,000,603 7,168,941 41,440 11,986 7,042,043 7,180,927 Net position-beginning, restated - (352,598) - - - (352,598) Net position, June 30 $ 7,509,250 $ 7,000,603 $ 112,371 $ 41,440 $ 7,621,621 $ 7,042,043
9 36 Management Discussion and Analysis Town of Swansboro
Governmental Activities
Revenues by Source – Governmental Activities
Other taxes Other Charges for services 3% 3% 13%
Operating grants and Property taxes contributions 50% 28%
Capital grants and contributions 3%
Expenses and Program Revenues – Governmental Activities
3,000,000
2,500,000
2,000,000
1,500,000 Expenses
1,000,000 Program revenues
500,000
0 General Public SafetyTransportation Economic Cultural and Interest on government development recreation long-term debt
Total government-wide revenues were primarily derived from property taxes, other taxes, and grants and contributions not restricted to specific programs.
The total expenses of all programs cover a range of services, primarily public safety and general government.
Governmental activities increased the Town’s net position by $508,647.
10 37 Management Discussion and Analysis Town of Swansboro
Business – type Activities
Revenues by Source – Business-type Activities
Charges for services 100%
Expenses and Program Revenues – Business-type Activities
350,000
300,000
250,000 200,000 Expenses 150,000 Program revenues
100,000
50,000
0 Stormwater Solid Waste
Revenues from the business-type activities were derived from charges for services.
Expenses were mainly due to general operational costs for stormwater and solid waste.
Business-type activities increased the Town’s net position by $70,931.
11 38 Management Discussion and Analysis Town of Swansboro
Financial Analysis of the Town’s Funds
As noted earlier, the Town of Swansboro uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.
Governmental Funds: The focus of the Town of Swansboro’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the Town of Swansboro, North Carolina’s financing requirements.
The general fund is the chief operating fund of the Town of Swansboro. At the end of the current fiscal year, the Town of Swansboro’s fund balance available in the General Fund was $2,144,927, while the total fund balance reached $2,696,275. As a measure of the general fund’s liquidity, fund balance was calculated in accordance with North Carolina General Statute 159-8(a). The Town currently has an available fund balance of 43% of general fund expenditures, while total fund balance represents 53% of the same amount.
At June 30, 2019, the governmental funds of Town of Swansboro reported a combined fund balance of $3,141,950, a 19% increase from last year. This decrease is associated with unexpected expenditure increases.
Proprietary Funds: The Town’s proprietary fund provides the same type of information found in the government-wide statements but in more detail. Unrestricted net position of the Stormwater and Solid Waste Fund at the end of the fiscal year amounted to $12,224.
General Fund Budgetary Highlights: During the fiscal year, the Town revised the budget on several occasions. Generally, budget amendments fall into one of three categories: 1) amendments made to adjust the estimates that are used to prepare the original budget ordinance once exact information is available; 2) amendments made to recognize new funding amounts from external sources, such as Federal and State grants; and 3) increases in appropriations that become necessary to maintain services.
Capital Asset and Debt Administration
Capital assets. The Town of Swansboro’s investment in capital assets for its governmental and business- type activities as of June 30, 2019, totals $7,248,119 (net of accumulated depreciation). These assets include buildings, improvements other than buildings, land, machinery and equipment, and vehicles.
Major capital asset transactions during the year include the following additions:
• Waterfront Implementation - $74,086 • Municipal Park Enhancements - $31,550 • Police vehicles - $36,039
12 39 Management Discussion and Analysis Town of Swansboro
Town of Swansboro’s Capital Assets (net of depreciation) Figure 4
Governmental Business-type Activities Activities Total 2019 2018 2019 2018 2019 2018 Land $ 999,498 $ 999,498 $ - $ - $ 999,498 $ 999,498 Buildings and systems 2,996,711 2,262,520 - - 2,996,711 2,262,520 Improvements other than buildings 694,295 451,576 - - 694,295 451,576 Machinery and equipment 75,849 181,288 71,246 66,528 147,095 247,816 Software 5,727 10,603 - - 5,727 10,603 Vehicles and motorized equipment 800,005 791,144 28,901 20,356 828,906 811,500 Monuments 67,198 67,198 - - 67,198 67,198 Infrastructure 966,754 1,012,421 - - 966,754 1,012,421 Construction in progress 541,935 1,496,060 - - 541,935 1,496,060 Total $ 7,147,972 $ 7,272,308 $ 100,147 $ 86,884 $ 7,248,119 $ 7,359,192
Additional information on the Town’s capital assets can be found in note III.A.4. of the Basic Financial Statements.
Long-term Debt. As of June 30, 2019, the Town of Swansboro had total debt outstanding of $1,605,876.
Town of Swansboro’s Outstanding Debt Figure 5
Governmental Business-type Activities Activities Total 2019 2018 2019 2018 2019 2018 Installment notes $ 1,605,876 $ 1,823,407 $ - $ - $ 1,605,876 $ 1,823,407
The Town of Swansboro’s total debt decreased by $217,531 during the past fiscal year.
Additional information on the Town’s long-term debt can be found in note III.B.6. of the Basic Financial Statements.
Economic Factors and Next Year’s Budgets and Rates
The following economic indicators reflect the growth and prosperity of the Town:
• Increase in property tax base due to increase in residential and business construction. • Increase in funding received from Onslow County for Fire protection services • Modest increase in sales and use tax revenue • Current service levels maintained without the appropriation of fund balance.
13 40 Management Discussion and Analysis Town of Swansboro
All of these factors were considered in preparing the Town of Swansboro’s budget for the 2019-2020 fiscal year.
Budget Highlights for the Fiscal Year Ending June 30, 2020
Governmental Activities: Property taxes, sales taxes, other tax revenues are expected to lead the increase in budgeted revenues. The Town will use these revenues to finance programs currently in place.
The budget includes a stormwater and solid waste enterprise fund. This will reduce further deterioration of the general fund and fund reserves to carry out these respective programs and services.
Budgeted expenditures in the General Fund are expected to rise. The largest increments are in employee compensation, including funding compensation and benefits adjustments.
Business-type Activities: Fees will be reviewed and updated on an ongoing basis to ensure that they keep pace with the changes in service delivery costs as well as changes in methods or levels of service delivery.
Requests for Information
This financial report is designed to provide an overview of the Town of Swansboro’s finances for those with an interest in this area. Questions concerning any of the information found in this report or requests for additional information should be directed to the Town of Swansboro, Finance Director, 601 W. Corbett Avenue, Swansboro, NC 28584 or [email protected].
14 41
Basic Financial Statements
42
Exhibit 1 Town of Swansboro, North Carolina Statement of Net Position June 30, 2019
Primary Government Component Unit Swansboro Tourism Governmental Business-type Development Activities Activities Total Authority Assets Current Assets: Cash and cash equivalents $ 3,163,050 $ 58,422 $ 3,221,472 $ 75,063 Restricted cash 43,724 - 43,724 - Account interest receivable on taxes 13,407 - 13,407 - Taxes receivable (net) 27,683 - 27,683 - Deposits - - - 50 Internal balances - - - - Accounts receivable (net) 384,702 31,228 415,930 10,261 Grants receivable 67,816 - 67,816 - Total Current Assets $ 3,700,382 $ 89,650 $ 3,790,032 $ 85,374
Non-current Assets: Capital Assets: Land and non-depreciable assets 1,608,631 - 1,608,631 - Depreciable assets, net 5,539,341 100,147 5,639,488 - Total Capital Assets $ 7,147,972 $ 100,147 $ 7,248,119 $ - Total Assets $ 10,848,354 $ 189,797 $ 11,038,151 $ 85,374
Deferred Outflows of Resources Pension deferrals $ 407,606 $ 20,434 $ 428,040 $ -
Liabilities Current Liabilities: Accounts payable $ 655,193 $ 36,260 $ 691,453 $ - Accrued interest payable - - - - Other liabilities - - - - Current portion long-term liabilities 236,477 - 236,477 - Total Current Liabilities $ 891,670 $ 36,260 $ 927,930 $ -
Long-term liabilities: Due in more than one year 2,688,403 60,636 2,749,039 - Total Long-term Liabilities $ 2,688,403 $ 60,636 $ 2,749,039 $ - Total Liabilities $ 3,580,073 $ 96,896 $ 3,676,969 $ -
Deferred Inflows of Resources Pension deferrals $ 166,637 $ 964 $ 167,601 $ -
Net Position Net investment in capital assets $ 5,542,096 $ 100,147 $ 5,642,243 $ - Restricted for: Stabilization by State Statute 384,702 - 384,702 10,261 Streets 31,901 - 31,901 - Capital improvements 307,824 - 307,824 - Festivals and events 11,274 - 11,274 - Unrestricted 1,231,453 12,224 1,243,677 75,113 Total Net Position $ 7,509,250 $ 112,371 $ 7,621,621 $ 85,374
The notes to the financial statements are an integral part of this statement.
15 43
Exhibit 2 Town of Swansboro, North Carolina Statement of Activities For the Year Ended June 30, 2019
Program Revenues Net (Expense) Revenue and Changes in Net Position Primary Government Component Unit Swansboro Charges Operating Capital Grants Tourism for Grants and and Governmental Business-type Development Functions/Programs Expenses Services Contributions Contributions Activities Activities Total Authority Primary Government: Governmental Activities: General government $ 2,554,830 $ 130,524 $ 688,039 $ - $ (1,736,267) $ - $ (1,736,267) Public safety 1,622,146 203,587 169,945 - (1,248,614) - (1,248,614) Transportation 308,068 - 81,993 - (226,075) - (226,075) Economic development 310,249 6,045 - 99,716 (204,488) - (204,488) Environmental protection - - 2,086 - 2,086 - 2,086 Cultural and recreation 321,218 116,439 - - (204,779) - (204,779) Interest on long-term debt 42,939 - - - (42,939) - (42,939) Total Governmental Activities $ 5,159,450 $ 456,595 $ 942,063 $ 99,716 $ (3,661,076) $ - $ (3,661,076)
Business-type Activities: Stormwater $ 71,688 $ 116,268 $ - $ - $ - $ 44,580 $ 44,580 Solid waste 302,905 314,882 - - - 11,977 11,977 Total business-type activities $ 374,593 $ 431,150 $ - $ - $ - $ 56,557 $ 56,557
Total Primary Government $ 5,534,043 $ 887,745 $ 942,063 $ 99,716 $ (3,661,076) $ 56,557 $ (3,604,519) Component Unit: Swansboro Tourism Development Authority $ 64,009 $ - $ - $ - $ 59,781
General Revenues: Taxes: Property taxes $ 1,696,102 $ - $ 1,696,102 $ - Other taxes 98,783 - 98,783 98,177 Grants and contributions not restricted to specific programs 1,212,651 - 1,212,651 - Unrestricted investment earnings 42,378 - 42,378 - Miscellaneous 1,118,309 5,874 1,124,183 - Total General Revenues Not Including Transfers $ 4,168,223 $ 5,874 $ 4,174,097 $ 98,177 Transfers 1,500 8,500 10,000 - Total General Revenues and Transfers $ 4,169,723 $ 14,374 $ 6,563,309 $ 98,177 Change In Net Position 508,647 70,931 569,578 38,396 Net position, beginning 7,000,603 41,440 7,042,043 46,978 Restatement - - - - Net position, beginning restated $ 7,000,603 $ 41,440 $ 7,042,043 $ 46,978 Net position, ending $ 7,509,250 $ 112,371 $ 7,611,621 $ 85,374
The notes to the financial statements are an integral part of this statement.
16 44
Exhibit 3 Town of Swansboro, North Carolina Balance Sheet Governmental Funds June 30, 2019
Major Funds Non-Major Funds Other Total Governmental Governmental General Funds Funds Assets Cash and cash equivalents $ 2,879,912 $ 283,138 $ 3,163,050 Restricted cash 43,724 - 43,724 Receivables, net: Taxes 27,683 - 27,683 Accounts 384,702 - 384,702 Grants - 67,816 67,816 Due from other funds - - - Total Assets $ 3,336,021 $ 350,954 $ 3,686,975 Liabilities Due to other funds $ - $ - $ - Accounts payable and accrued liabilities 612,063 43,130 655,193 Other liabilities - - - Total Liabilities $ 612,063 $ 43,130 $ 655,193
Deferred Inflows of Resources Property taxes receivable $ 27,683 $ - $ 27,683 Prepaid taxes - - - Total Deferred Inflows of Resources $ 27,683 $ - $ 27,683 Fund Balances Restricted: Stabilization by State Statute $ 384,702 $ - $ 384,702 Streets 31,901 - 31,901 Capital improvements - 307,824 307,824 Festivals and events 11,274 - 11,274 Assigned: Subsequent year's expenditures 123,471 - 123,471 Unassigned 2,144,927 - 2,144,927 Total Fund Balances $ 2,696,275 $ 307,824 $ 3,004,099 Total Liabilities, Deferred Inflows of Resources, And Fund Balances $ 3,336,021 $ 350,954 $ 3,686,975
The notes to the financial statements are an integral part of this statement.
17 45
Exhibit 3 Town of Swansboro, North Carolina Reconciliation of the Balance Sheet of the Governmental Funds to the Statement of Net Position For the Year Ended June 30, 2019
Amounts reported for governmental activities in the Statement of the Net Position (Exhibit 1) are different because:
Total Fund Balance, Governmental Funds $ 3,004,099
Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds:
Gross capital assets at historical cost 10,281,479 Accumulated depreciation (3,133,507) $ 7,147,972
Deferred outflows of resources related to pensions are not reported in the funds 407,606
Other long-term assets (accrued interest receivable from taxes) are not available to pay for current-period expenditures and therefore are inflows of resources in the funds. 13,407
Long-term liabilities used in governmental activities are not financial uses and therefore are not reported in the funds. (2,924,880)
Earned revenue considered deferred inflows of resources in fund statements 27,683
Deferred inflows of resources related to pensions are not reported in the funds (166,637)
Net Position of Governmental Activities $ 7,509,250
The notes to the financial statements are an integral part of this statement.
18 46
Exhibit 4 Town of Swansboro, North Carolina Statement of Revenues, Expenditures, and Changes in Fund Balance Governmental Funds For the Year Ended June 30, 2019
Major Non-Major Other Total Governmental Governmental General Fund Funds Funds Revenues Ad valorem taxes $ 1,722,590 $ - $ 1,722,590 Other taxes and licenses 98,783 - 98,783 Unrestricted intergovernmental 1,212,651 - 1,212,651 Restricted intergovernmental 942,063 99,716 1,041,779 Permits and fees 456,595 - 456,595 Sales and services 360 - 360 Investment earnings 42,378 - 42,378 Miscellaneous 1,110,184 - 1,110,184 Contributions 7,765 - 7,765 Total Revenues $ 5,593,369 $ 99,716 $ 5,693,085 Expenditures Current: General government $ 2,282,960 $ - $ 2,282,960 Public safety 1,656,995 - 1,656,995 Transportation 229,227 - 229,227 Economic development 180,001 130,248 310,249 Cultural and recreational 250,184 - 250,184 Non-departmental 191,044 - 191,044 Debt service: Principal 217,531 - 217,531 Interest and other charges 42,939 - 42,939 Total Expenditures $ 5,050,881 $ 130,248 $ 5,181,129
Excess (Deficiency) Of Revenues Over Expenditures $ 542,488 $ (30,532) $ 511,956
Other Financing Sources (Uses) Sale of capital assets $ - $ - $ - Transfers in: Capital projects 17,500 95,680 113,180 General fund - 64,500 64,500 Transfers out: Capital projects (64,500) (103,180) (167,680) Solid waste fund (8,500) - (8,500) Total Other Financing Sources And Uses $ (55,500) $ 57,000 $ 1,500 Net Change In Fund Balance $ 486,988 $ 26,468 $ 513,456 Fund balances, beginning 2,209,287 419,207 2,628,494 Fund balances, ending $ 2,696,275 $ 445,675 $ 3,141,950
The notes to the financial statements are an integral part of this statement.
19 47
Exhibit 4 Town of Swansboro, North Carolina Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balance of Governmental Funds to the Statement of Activities For the Year Ended June 30, 2019
Amounts reported for governmental activities in the Statement of the Net Position (Exhibit 1) are different because:
Net change in fund balances - governmental funds $ 513,456
Governmental funds report capital outlays as expenditures. However, in the Statement of Activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlays exceeded depreciation in the current period.
Capital outlay expenditures which were capitalized $ 177,217 Depreciation expense for governmental assets (301,553) $ (124,336)
Contributions to the pension plan in the current fiscal year are not included on the Statement of Activities 112,470
Benefit payments paid for LEOSSA are not included on the Statement of Activities 16,660
The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction has any effect on net assets. Also, governmental funds report the effect of issuance costs, premiums, discounts and similar items when debt is first issued, wheras these amounts are deferred and amortized in the statement of activities. This amount is the net effect of these differences in the treatment of long-term debt and related items.
New long-term debt issued $ - Principal payments on long-term debt 217,531 $ 217,531
Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds: Change in unavailable revenue for tax revenues (26,488) Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds: Compensated absences (5,587) Pension expense (136,756) Other postemployment benefits (58,303) (200,646)
Total Change in Net Position of Governmental Activities $ 508,647
The notes to the financial statements are an integral part of this statement.
20 48
Exhibit 5 Town of Swansboro, North Carolina General Fund Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 2019
Variance With Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Ad valorem taxes $ 1,683,513 $ 1,683,513 $ 1,722,590 $ 39,077 Other taxes and licenses 70,000 98,691 98,783 92 Unrestricted intergovernmental 1,116,155 1,116,155 1,212,651 96,496 Restricted intergovernmental 263,106 323,404 942,063 618,659 Permits and fees 441,449 521,249 456,595 (64,654) Sales and services 1,000 1,000 360 (640) Investment earnings 18,000 18,000 42,378 24,378 Miscellaneous 45,440 1,059,972 1,110,184 50,212 Contributions 5,750 9,776 7,765 (2,011) Total Revenues $ 3,644,413 $ 4,831,760 $ 5,593,369 $ 761,609 Expenditures Current: General government $ 709,547 $ 2,597,444 $ 2,282,960 $ 314,484 Public safety 1,871,189 1,925,898 1,656,995 268,903 Transportation 259,260 285,760 229,227 56,533 Economic development 112,450 180,941 180,001 940 Environmental protection - - - - Cultural and recreational 267,392 344,807 250,184 94,623 Non-departmental 124,770 204,500 191,044 13,456 Debt Service: Principal 213,305 263,305 217,531 45,774 Interest and other charges 50,000 - 42,939 (42,939) Total Expenditures $ 3,607,913 $ 5,802,655 $ 5,050,881 $ 751,774 Revenues Over (Under) Expenditures $ 36,500 $ (970,895) $ 542,488 $ 1,513,383 Other Financing Sources (Uses) Loan issuance $ 90,000 $ 90,000 $ - $ (90,000) Sale of capital assets - - - - Transfers-In - 28,766 17,500 (11,266) Transfers-Out (144,500) (163,000) (73,000) 90,000 Total Other Financing Sources (Uses) $ (54,500) $ (44,234) $ (55,500) $ (11,266) Fund balance appropriated $ 18,000 $ 1,015,129 $ - $ (192,531) Net Change In Fund Balance $ - $ - $ 486,988 $ 1,309,586 Fund balance, beginning 2,209,287 Fund Balance, ending $ 2,696,275
The notes to the financial statements are an integral part of this statement.
21 49
Exhibit 6 Town of Swansboro, North Carolina Statement of Net Position Proprietary Funds June 30, 2019
Major Enterprise Funds Stormwater Solid Waste Fund Fund Totals Assets Current assets: Cash and cash equivalents $ 26,073 $ 32,349 $ 58,422 Accounts receivable (net) 31,228 - 31,228 Due from other funds - - - Total Current Assets $ 57,301 $ 32,349 $ 89,650 Noncurrent assets: Capital assets: Land and other non-depreciable assets - - - Other capital assets, net of depreciation 71,000 29,147 100,147 Capital assets (net) $ 71,000 $ 29,147 $ 100,147 Total Assets $ 128,301 $ 61,496 $ 189,797
Deferred Outflows of Resources Pension deferrals $ 10,217 $ 10,217 $ 20,434
Liabilities Current liabilities: Accounts payable - trade $ 7,624 $ 28,636 $ 36,260 Due to other funds - - - Customer deposits - - - Compensated absences - current - - -
Total Current Liabilities $ 7,624 $ 28,636 $ 36,260 Noncurrent liabilities: Compensated absences $ - $ - $ - Net pension liability 12,923 12,923 25,846 Total OPEB liability 17,395 17,395 34,790 Total non-current liabilities $ 30,318 $ 30,318 $ 60,636 Total Liabilities $ 37,942 $ 58,954 $ 96,896
Deferred Inflows of Resources Pension deferrals $ 482 $ 482 $ 964
Net Position Net investment in capital assets $ 71,000 $ 29,147 $ 100,147 Restricted net position - - - Unrestricted net position 29,094 (16,870) 12,224 Total Net Position $ 100,094 $ 12,277 $ 112,371
The notes to the financial statements are an integral part of this statement.
22 50
Exhibit 7 Town of Swansboro, North Carolina Statement of Revenues, Expenses, And Changes in Fund Net Position Proprietary Funds For the Year Ended June 30, 2019
Major Enterprise Funds Stormwater Solid Waste Fund Fund Totals Operating Revenues Charges for services $ 116,268 $ 314,882 $ 431,150 Other operating revenues - - - Total Operating Revenues $ 116,268 $ 314,882 $ 431,150
Operating Expenses Administration $ - $ - $ - Stormwater operations 65,059 - 65,059 Solid waste operations - 296,413 296,413 Depreciation 6,629 6,492 13,121 Total Operating Expenses $ 71,688 $ 302,905 $ 374,593 Operating income (loss) $ 44,580 $ 11,977 $ 56,557
Non-operating Revenues (Expenses) Investment earnings $ - $ - $ - Miscellaneous revenue 5,874 - 5,874 Total Non-operating Revenues (expenses) $ 5,874 $ - $ 5,874
Income (loss) before contributions and transfers $ 50,454 $ 11,977 $ 62,431 Capital contributions - - - Transfers from other funds 8,500 - 8,500 Transfers to other funds - - - Change in net position $ 58,954 $ 11,977 $ 70,931
Net position, beginning 41,140 300 41,440
Net position, ending $ 100,094 $ 12,277 $ 112,371
The notes to the financial statements are an integral part of this statement.
23 51
Exhibit 8 Town of Swansboro, North Carolina Statement of Cash Flows Proprietary Funds For the Year Ended June 30, 2019
Major Enterprise Funds Stormwater Solid Waste Fund Fund Total Cash Flows From Operating Activities Cash received from customers $ 101,772 $ 316,861 $ 418,633 Cash paid for goods and services (19,210) (240,333) (259,543) Cash paid to or on behalf of employees for services (28,808) (35,934) (64,742) Other operating revenues - - - Net cash provided (used) by operating activities $ 53,754 $ 40,594 $ 94,348 Cash Flows From Noncapital Financing Activities Other revenue $ 5,874 $ - $ 5,874 Transfers from other funds 8,500 - 8,500 Increase (decrease) in due to other funds (32,817) (30,148) (62,965) Net cash provided by noncapital financing activities $ (18,443) $ (30,148) $ (48,591) Cash Flows From Capital and Related Financing Acquisition of capital assets $ (26,385) $ - $ (26,385) Capital contributions - - - Net cash provided (used) by capital and related financing activities $ (26,385) $ - $ (26,385) Cash Flows From Investing Activities Interest and dividends $ - $ - $ - Net increase (decrease) in cash and cash equivalents $ 8,926 $ 10,446 $ 19,372 Balances - Beginning of year 17,147 21,903 39,050 Balances - End of year $ 26,073 $ 32,349 $ 58,422
Reconciliation of operating income to net cash provided by operating activities: Operating income (loss) $ 44,580 $ 11,977 $ 56,557 Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation $ 6,629 $ 6,492 $ 13,121 Changes in assets and liabilities: (Increase) decrease in accounts receivable (14,496) 1,979 (12,517) (Increase) decrease in deferred outflows (3,583) (3,583) (7,166) Increase (decrease) in accounts payable and accrued liabilities 5,436 8,541 13,977 Increase (decrease) in net pension liability 4,757 4,757 9,514 Increase (decrease) in OPEB liability 10,819 10,819 21,638 Increase (decrease) in deferred inflows (388) (388) (776) Total adjustments $ 9,174 $ 28,617 $ 37,791 Net cash provided by operating activities $ 53,754 $ 40,594 $ 94,348
The notes to the financial statements are an integral part of this statement.
24 52 Town of Swansboro, North Carolina Notes to the Financial Statements For the Year Ended June 30, 2019
I. Summary of Significant Accounting Policies
The accounting policies of the Town of Swansboro, North Carolina and its discretely presented component unit conform to generally accepted accounting principles as applicable to governments. The following is a summary of the more significant accounting policies:
A. Reporting Entity
The Town of Swansboro, North Carolina (the Town) is a municipal corporation that is governed by an elected mayor and a five-member board. As required by generally accepted accounting principles, these financial statements present the Town and its component unit, a legally separate entity for which the Town is financially accountable. The discretely presented component unit presented below is reported in a separate column in the Town’s financial statement in order to emphasize that it is legally separate from the Town.
Swansboro Tourism Development Authority (TDA) The members of the Swansboro TDA governing board are appointed by the Town. In addition, the Town shall be responsible for the collection and accounting of all funds remitted to or disbursed by the Swansboro TDA. The Swansboro TDA, which has a June 30 year end, is presented as if it were a governmental fund (discrete presentation). Complete financial statements for the Swansboro TDA may be obtained from the Town’s administrative offices at Swansboro Town Hall, 601 W Corbett Avenue, Swansboro, NC 28584.
B. Basis of Presentation
Government‐wide Statements. The statement of net position and the statement of activities display information about the primary government. These statements include the financial activities of the overall government and its component unit. Eliminations have been made to minimize the double counting of internal activities. All transactions from interfund services provided and used are not eliminated in the process of consolidation. These statements distinguish between the governmental and business‐type activities of the Town. Governmental activities generally are financed through taxes, intergovernmental revenues, and other non‐exchange transactions. Business-type activities are financed in whole or in part by fees charged to external parties.
The statement of activities presents a comparison between direct expenses and program revenues for the different business-type activities and for each function of the Town’s governmental activities. Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expense allocations that have been made in the funds have been reversed for the statement of activities. Program revenues include (a) fees and charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues.
25 53 Town of Swansboro, North Carolina Notes to the Financial Statements For the Year Ended June 30, 2019
Fund Financial Statements. The fund financial statements provide information about the Town’s funds. Separate statements for each fund category – “governmental and proprietary” – are presented. The emphasis of fund financial statements is on major governmental and enterprise funds. All remaining governmental and enterprise funds are aggregated and reported as non‐major funds.
Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with the principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. Non-operating revenues, such as subsidies, result from non-exchange transactions. Other non-operating revenues are ancillary activities such as investment earnings.
The Town reports the following major governmental funds:
General Fund. The General Fund is the general operating fund of the Town. The General Fund accounts for all financial resources except those that are required to be accounted for in another fund. The primary revenue sources are ad valorem taxes, State grants, and various other taxes and licenses. The primary expenditures are for public safety, general government, environmental protection, street maintenance and construction, and recreation.
The Town reports the following non‐major governmental funds:
Capital Project Funds. Capital Projects Funds account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by proprietary funds and trust funds). The Town has seven non‐major Capital Project Funds: Capital Reserve Fund, Park and Recreation Reserve Fund, Public Safety Building Project Fund, Sleeping Quarters Project Fund, Waterfront Plan Implementation Fund, Municipal Park Improvement Fund, and Information Technology Project Fund, within its governmental fund types.
The Town reports the following major enterprise funds:
Stormwater Fund – This fund is used to account for the Town’s stormwater operations.
Solid Waste Fund – This fund is used to account for the Town’s solid waste operations.
C. Measurement Focus and Basis of Accounting
In accordance with North Carolina General Statutes, all funds of the Town are maintained during the year using the modified accrual basis of accounting.
Government‐wide and Proprietary Fund Financial Statements. The government‐wide and proprietary fund financial statements are reported using the economic resources measurement focus. The government‐wide financial statements are reported using the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Non‐exchange transactions in
26 54 Town of Swansboro, North Carolina Notes to the Financial Statements For the Year Ended June 30, 2019
which the Town gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, grants, and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied.
Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes.
Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the Town enterprise funds are charges to customers for sales and services. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses.
Governmental Fund Financial Statements. Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, claims and judgments, and compensated absences, which are recognized as expenditures to the extent they have matured. General capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term debt and acquisitions under capital leases are reported as other financing sources.
The Town considers all revenues available if they are collected within 90 days after year end, except for property taxes. Ad valorem taxes receivable are not accrued as revenue because the amount is not susceptible to accrual. At June 30, taxes receivable for property other than motor vehicles are materially past due and are not considered to be an available resource to finance the operations of the current year. Also, as of September 1, 2013, State law altered the procedures for the assessment and collection of property taxes on registered motor vehicles in North Carolina. Effective with this change in the law, the State of North Carolina is responsible for billing and collecting the property taxes on registered motor vehicles on behalf of all municipalities and special tax districts. Property taxes are due when vehicles are registered. The billed taxes are applicable to the fiscal year in which they are received. Uncollected taxes that were billed in periods prior to September 1, 2013 and for limited registration plates are shown as a receivable in these financial statements and are offset by deferred inflows of resources.
Sales taxes and certain intergovernmental revenues, such as the beer and wine tax, collected and held by the State at year end on behalf of the Town are recognized as revenue. Sales taxes are considered a shared revenue for the town because the tax is levied by Onslow County and then remitted to and distributed by the State. Most intergovernmental revenues and sales and services are not susceptible to accrual because generally they are not measurable until received in cash.
27 55 Town of Swansboro, North Carolina Notes to the Financial Statements For the Year Ended June 30, 2019
All taxes, including those dedicated for specific purposes are reported as general revenues rather than program revenues. Under the terms of grant agreements, the Town funds certain programs by a combination of specific cost reimbursement grants, categorical block grants and general revenues. Thus, when program expenses are incurred, there is both restricted and unrestricted net position available to finance the program. It is the Town’s policy to first apply cost reimbursement grant resources to such programs, followed by categorical block grants, and then by general revenues.
D. Budgetary Data
The Town’s budgets are adopted as required by the North Carolina General Statutes. An annual budget is adopted for the General Fund and the Enterprise Funds. All annual appropriations lapse at the fiscal year end. Project ordinances are adopted for the Capital Projects Funds. All budgets are prepared using the modified accrual basis of accounting. Expenditures may not legally exceed appropriations at the departmental level for all annually budgeted funds and at the project level for the capital project funds. The finance officer may transfer amounts between objects of expenditures within a department without limitations and without an official report being requested. Any other transfer or revisions that later the total expenditures of any fund must be approved by the governing board. During the year, several material amendments to the original budget were necessary mainly due to funding capital project funds. The budget ordinance must be adopted by July 1 of the fiscal year or the governing board must adopt an interim budget that covers that time until the annual ordinance can be adopted.
E. Assets, Liabilities, Deferred Inflows and Outflows, and Fund Equity
1. Deposits and Investments
All deposits of the Town and Swansboro TDA are made in board-designated official depositories and are secured as required by State law (G.S. 159-31). The Town and Swansboro TDA may designate, as an official depository, any bank or savings association whose principal office is located in North Carolina. Also, the Town and Swansboro TDA may establish time deposit accounts such as NOW and SuperNOW accounts, money market accounts, and certificates of deposit.
State law [G.S. 159-30(c)] authorizes the Town and Swansboro TDA to invest in obligations of the United States or obligations fully guaranteed both as to principal and interest by the United States or obligations of the State of North Carolina; bonds and notes of any North Carolina local government or public authority; obligations of certain non-guaranteed federal agencies; certain high quality issues of commercial paper and bankers' acceptances and the North Carolina Capital Management Trust (NCCMT).
The Town’s investments are reported at fair value. The NCCMT Government Portfolio, a SEC-registered (2a-7) external investment pool is measured at fair value. The NCCMT-Term Portfolio is bond fund, has no rating, and is measured at fair value. As of June 30, 2019, the Term portfolio has a duration of .11 years. Because the NCCMT Government and Term Portfolios have a weighted average maturity of less than 90 days, they are presented as an investment with a maturity of less than 6 months.
28 56 Town of Swansboro, North Carolina Notes to the Financial Statements For the Year Ended June 30, 2019
2. Cash and Cash Equivalents
The Town pools moneys from several funds to facilitate disbursement and investment and to maximize investment income. All cash and investments are essentially demand deposits and are considered cash and cash equivalents.
3. Restricted Assets
Money in the Drug Seizure fund is classified as restricted cash because its use is restricted for drug seizure purposes within the Town. Powell Bill funds are also classified as restricted cash because it can be expended only for the purposes of maintaining, repairing, constructing, reconstructing or widening of local streets per G.S. 136‐41.1 through 136‐41.4.
Town of Swansboro Restricted Cash Streets $ 31,901 Public safety 11,823 Total Restricted Cash $ 43,724
4. Ad Valorem Taxes Receivable
In accordance with State law [G.S. 105-347 and G.S. 159-13(a)], the Town levies ad valorem taxes on property other than motor vehicles on July 1, the beginning of the fiscal year. The taxes are due on September 1 (lien date); however, interest does not accrue until the following January 6. These taxes are based on the assessed values as of January 1, 2018. As allowed by State law, the Town has established a schedule of discounts that apply to taxes that are paid prior to the due date. In the Town's General Fund, ad valorem tax revenues are reported net of such discounts.
5. Allowances for Doubtful Accounts
All receivables that historically experience uncollectible accounts are shown net of an allowance for doubtful accounts. This amount is estimated by analyzing the percentage of receivables that were written off in prior years.
6. Capital Assets
Capital assets are defined by the government as assets with an initial, individual cost of more than a certain cost and an estimated useful life in excess of two years. Minimum capitalization cost for all types of capital assets is $5,000. Purchased or constructed capital assets are reported at cost or estimated historical cost. Donated capital assets received prior to June 15, 2015 are recorded at their estimated fair value at the date of donation. Donated capital assets received after June 15, 2015 are recorded at acquisition value. All other purchased or constructed capital assets are reported at cost or estimated historical cost.
29 57 Town of Swansboro, North Carolina Notes to the Financial Statements For the Year Ended June 30, 2019
General infrastructure assets acquired prior to July 1, 2003, consist of the road network and water and sewer system assets that were acquired or that received substantial improvements subsequent to July 1, 1980, and are reported at estimated historical cost using deflated replacement cost. The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend assets’ lives are not capitalized.
Capital assets of the Town are depreciated using the straight-line method over the following estimated useful lives:
Asset Class Estimated Useful Life Buildings 50 Infrastructure 30 Improvements 25 Heavy equipment 10
Software 8 Vehicles 5 Furniture and equipment 5 Computer equipment 3
Property, plant, and equipment of the Swansboro Tourism Development Authority are depreciated over their useful lives on a straight-line basis as follows:
Asset Class Estimated Useful Life Buildings 20 Equipment and furniture 10 Vehicles 3-5 Computers 3
7. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, Deferred Outflows of Resources, represents a consumption of net position that applies to a future period and so will not be recognized as an expense or expenditure until then. The Town has one item that meets this criterion – pension deferrals for the 2019 fiscal year. In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, Deferred Inflows of Resources, represents an acquisition of net position that applies to a future period and so will not be recognized as revenue until then. The Town has several items that meet the criterion for this category – property taxes receivable, OPEB deferrals, and pension deferrals.
30 58 Town of Swansboro, North Carolina Notes to the Financial Statements For the Year Ended June 30, 2019
8. Long-term Obligations
In the government-wide financial statements, and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net position. Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the straight-line method that approximates the effective interest method. Bonds payable are reported net of the applicable bond premiums or discount. Bond issuance costs, except for prepaid insurance costs, are expensed in the reporting period in which they occurred. Prepaid insurance costs are expensed over the life of the debt.
In fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.
9. Compensated Absences
The vacation policy of the Town provides for the accumulation of up to thirty days earned vacation leave with such leave being fully vested when earned. For the Town’s government‐wide fund, an expense and a liability for compensated absences and the salary related payments are recorded as the leave is earned. The Town has assumed a first in, first out method of using accumulated compensated time. The portion of that time that is estimated to be used in the next fiscal year has been designated as a current liability in the government‐wide financial statements.
The Town’s sick leave policy provide for an unlimited accumulation of earned sick leave. Sick leave does not vest, but any unused sick leave accumulated at the time of retirement may be used in the determination of length of service for retirement benefit purposes. Since the Town does not have any obligation for the accumulated sick leave until it is actually taken, no accrual for sick leave has been made.
10. Net Position/Fund Balances
a. Net Position
Net position in government-wide and proprietary fund financial statements are classified as net investment in capital assets, restricted and unrestricted. Restricted net position represents constraints on resources that are either a) externally imposed by creditors, grantors, contributors, or laws or regulations of other governments, or b) imposed by law through state statute.
31 59 Town of Swansboro, North Carolina Notes to the Financial Statements For the Year Ended June 30, 2019
b. Fund Balances
In the governmental fund financial statements, fund balance is composed of two classifications designed to disclose the hierarchy of constraints placed on how fund balance can be spent.
The governmental fund types classify fund balances as follows:
Restricted Fund Balance - This classification includes amounts that are restricted to specific purposes externally imposed by creditors or imposed by law.
Restricted for Stabilization by State Statute - North Carolina G.S. 159-8 prohibits units of government from budgeting or spending a portion of their fund balance. This is one of several statutes enacted by the North Carolina State Legislature in the 1930’s that were designed to improve and maintain the fiscal health of local government units. Restricted by State statute (RSS), is calculated at the end of each fiscal year for all annually budgeted funds.
The calculation in G.S. 159-8(a) provides a formula for determining what portion of fund balance is available for appropriation. The amount of fund balance not available for appropriation is what is known as “restricted by State statute”. Appropriated fund balance in any fund shall not exceed the sum of cash and investments minus the sum of liabilities, encumbrances, and deferred revenues arising from cash receipts, as those figures stand at the close of the fiscal year next preceding the budget. Per GASB guidance, RSS is considered a resource upon which a restriction is “imposed by the law through constitutional provisions or enabling legislation”. RSS is reduced by inventories and prepaids as they are classified as nonspendable. Outstanding Encumbrances are included within RSS. RSS is included as a component of Restricted Net position and Restricted fund balance on the face of the balance sheet.
Restricted for Streets - Powell Bill portion of fund balance that is restricted by revenue source for street construction and maintenance expenditures. This amount represents the balance of the total unexpended Powell Bill Funds.
Restricted for Capital Improvements – portion of fund balance that is restricted for future capital improvements.
Restricted for Festivals and Events – portion of fund balance that is restricted by an external source for future Town festivals and events.
Assigned Fund Balance – portion of fund balance that the Town of Swansboro intends to use for specific purposes.
Subsequent year’s expenditures – portion of fund balance that is appropriated in the next year’s budget that is not already classified in restricted or committed.
32 60 Town of Swansboro, North Carolina Notes to the Financial Statements For the Year Ended June 30, 2019
Unassigned Fund Balance - portion of total fund balance that has not been restricted, committed, or assigned to specific purposes or other funds.
11. Defined Benefit Cost-Sharing Plans
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Local Governmental Employees’ Retirement System (LGERS) and additions to/deductions from LGERS’ fiduciary net position have been determined on the same basis as they are reported by LGERS. For this purpose, plan member contributions are recognized in the period in which the contributions are due. The Town of Swansboro, North Carolina’s employer contributions are recognized when due and the Town of Swansboro, North Carolina has a legal requirement to provide the contributions. Benefits and refunds are recognized when due and payable in accordance with terms of LGERS. Investments are reported at fair value.
II. Stewardship, Compliance, and Accountability
A. Noncompliance with North Carolina General Statutes
There were no violations of noncompliance with North Carolina General Statutes reported for the year ended June 30, 2019.
III. Detail Notes on All Funds
A. Assets
1. Deposits
All the deposits of the Town and the Swansboro TDA are either insured or collateralized by using one method. Under the Pooling Method, which is a collateral pool, all uninsured deposits are collateralized with securities held by the State Treasurer’s agent in the name of the State Treasurer. Since the State Treasurer is acting in a fiduciary capacity for the Town and Swansboro Tourism Development Authority, these deposits are considered to be held by the Town’s and Swansboro Tourism Development Authority agent in their names. The amount of the pledged collateral is based on an approved averaging method for non-interest- bearing deposits and the actual current balance for interest-bearing deposits. Depositories using the Pooling Method report to the State Treasurer the adequacy of their pooled collateral covering uninsured deposits. The State Treasurer does not confirm this information with the Town and Swansboro Tourism Development Authority, or the escrow agent. Because of the inability to measure the exact amounts of collateral pledged for the Town and Swansboro Tourism Development Authority under the Pooling Method, the potential exists for under- collateralization, and this risk may increase in periods of high cash flows. However, the State Treasurer of North Carolina enforces strict standards of financial stability for each depository that collateralizes public deposits under the Pooling Method. The Town has no formal policy regarding custodial risk for deposits but relies on the State Treasurer to enforce standards of
33 61 Town of Swansboro, North Carolina Notes to the Financial Statements For the Year Ended June 30, 2019
minimum capitalization for all pooling method financial institutions and to monitor them for compliance. The Town complies with the provision of G.S. 159-31 when designating official depositories and verifying that deposits are properly secured.
The Swansboro TDA has no formal policy regarding custodial credit risk for deposits.
At June 30, 2019, the Town’s deposits had a carrying amount of $1,040,195 and a bank balance of $1,027,480. Of the bank balance, $261,823 was covered by federal depository insurance and the remainder was covered by collateral held under the Pooling Method. At June 30, 2019, the Town had $150 cash on hand.
The carrying amount of deposits for the Swansboro TDA was $75,063 and the bank balance was $88,767. All of the bank balance was covered by federal depository insurance.
2. Investments
At June 30, 2019, the investments of the Town were as follows:
Valuation Book Measurement Value at Investment by Type Method 6/30/2019 Maturity Rating NC Capital Management Trust - Fair Value Government Portfolio Level 1 $ 1,074,749 N/A AAAm NC Capital Management Trust - Fair Value Term Portfolio Level 1 1,150,102 .11 years Unrated Total $ 2,224,851
All investments are measured using the market approach: using prices and other relevant information generated by market transactions involving identical or comparable assets or a group of assets.
Level of fair value hierarchy: Level 1: Debt securities valued using directly observable, quoted prices (unadjusted) in active markets for identical assets. Level 2 debt securities are valued using a matrix pricing technique. Matrix pricing is used to value securities based on the securities’ benchmark quoted prices.
Interest Rate Risk. The Town has no formal investment policy regarding interest rate risk.
Credit Risk. The Town has no formal policy regarding credit risk but has internal management procedures that limits the Town’s investments to the provisions of G.S. 159-30 and restricts the purchase of securities to the highest possible ratings whenever particular types of securities are rated. The Town’s investment in the NC Capital Management Trust Government Portfolio carried a credit rating of AAAm by Standard & Poor’s as of June 30, 2019. The Town’s investment in the NC Capital Management Trust Term Portfolio is unrated. The Term Portfolio is authorized to invest in obligations of the U.S. government and agencies, and in high grade money market instruments as permitted under North Carolina General Statutes 159-30 as amended.
34 62 Town of Swansboro, North Carolina Notes to the Financial Statements For the Year Ended June 30, 2019
Custodial Credit Risk. The Town has no formal policy on custodial credit risk, but management procedures are that the Town shall utilize a third-party custodial agent for book entry transactions, all of which shall be held in the Town’s name.
3. Receivables – Allowance for Doubtful Accounts
The amounts presented in the Balance Sheet and the Statement of Net Position for the year ended June 30, 2019 are net of the following allowances for doubtful accounts:
Fund June 30, 2019 General Fund - Taxes receivable $ 7,281
4. Capital Assets
Capital asset activity for the year ended June 30, 2019, was as follows:
Beginning Ending Balances Increases Decreases Balances Governmental Activities: Capital Assets Not Being Depreciated: Land $ 999,498 $ - $ - $ 999,498 Monuments 67,198 - - 67,198 Construction in progress 1,496,060 108,981 1,063,106 541,935 Total Capital Assets Not Being Depreciated $ 2,562,756 $ 108,981 $ 1,063,106 $ 1,608,631 Capital Assets Being Depreciated: Buildings $ 2,769,400 $ 789,454 $ - $ 3,558,854 Software 24,606 - - 24,606 Infrastructure 1,477,385 - - 1,477,385 Equipment 617,102 5,812 - 622,914 Vehicles 1,973,424 62,424 - 2,035,848 Park improvements 679,589 273,652 - 953,241 Total Capital Assets Being Depreciated $ 7,541,506 $ 1,131,342 $ - $ 8,672,848 Less Accumulated Depreciation For: Buildings $ 507,520 $ 54,623 $ - $ 562,143 Software 14,003 4,876 - 18,879 Infrastructure 464,964 45,667 - 510,631 Equipment 456,170 90,895 - 547,065 Vehicles 1,161,284 74,559 - 1,235,843 Park improvements 228,013 30,933 - 258,946 Total Accumulated Depreciation $ 2,831,954 $ 301,553 $ - $ 3,133,507 Total Capital Assets Being Depreciated, net $ 4,709,552 $ 5,539,341 Governmental Activity Capital Assets, net $ 7,272,308 $ 7,147,972
35 63 Town of Swansboro, North Carolina Notes to the Financial Statements For the Year Ended June 30, 2019
Depreciation expense was charged to functions/programs of the primary government as follows:
General government $ 9,310 Public safety 115,983 Transportation 105,226 Cultural and recreation 71,034 Total $ 301,553
Beginning Ending Balances Increases Decreases Balances Business-type Activities: Stormwater Fund Capital Assets Not Being Depreciated: Land $ - $ - $ - $ - Construction in progress - - - - Total Capital Assets Not Being Depreciated $ - $ - $ - $ - Capital Assets Being Depreciated: Stormwater system $ - $ - $ - $ - Buildings - - - - Equipment 60,089 26,385 - 86,474 Total Capital Assets Being Depreciated $ 60,089 $ 26,385 $ - $ 86,474 Less Accumulated Depreciation For: Stormwater system $ - $ - $ - $ - Buildings - - - - Equipment 8,845 6,629 - 15,474 Total Accumulated Depreciation $ 8,845 $ 6,629 $ - $ 15,474 Total Capital Assets Being Depreciated, net $ 51,244 $ 71,000 Governmental Activity Capital Assets, net $ 51,244 $ 71,000
Beginning Ending Balances Increases Decreases Balances Business-type Activities: Solid Waste Fund Capital Assets Not Being Depreciated: Land $ - $ - $ - $ - Construction in progress - - - - Total Capital Assets Not Being Depreciated $ - $ - $ - $ - Capital Assets Being Depreciated: Buildings $ - $ - $ - $ - Equipment 45,122 - - 45,122 Total Capital Assets Being Depreciated $ 45,122 $ - $ - $ 45,122 Less Accumulated Depreciation For: Buildings $ - $ - $ - $ - Equipment 9,482 6,492 - 15,974 Total Accumulated Depreciation $ 9,482 $ 6,492 $ - $ 15,974 Total Capital Assets Being Depreciated, net $ 35,640 $ 29,148 Governmental Activity Capital Assets, net $ 35,640 $ 29,148
36 64 Town of Swansboro, North Carolina Notes to the Financial Statements For the Year Ended June 30, 2019
B. Liabilities
1. Pension Plan and Postemployment Obligations
a. Local Governmental Employees' Retirement System
Plan Description. The Town of Swansboro, North Carolina is a participating employer in the statewide Local Governmental Employees’ Retirement System (LGERS), a cost‐sharing multiple‐employer defined benefit pension plan administered by the State of North Carolina. LGERS membership is comprised of general employees and local law enforcement officers (LEOs) of participating local governmental entities. Article 3 of G.S. Chapter 128 assigns the authority to establish and amend benefit provisions to the North Carolina General Assembly. Management of the plan is vested in the LGERS Board of Trustees, which consists of 13 members – nine appointed by the Governor, one appointed by the State Senate, one appointed by the State House of Representatives, and the State Treasurer and State Superintendent, who serve as ex‐officio members. The Local Governmental Employees’ Retirement System is included in the Comprehensive Annual Financial Report (CAFR) for the State of North Carolina. The State’s CAFR includes financial statements and required supplementary information for LGERS. That report may be obtained by writing to the Office of the State Controller, 1410 Mail Service Center, Raleigh, North Carolina 27699‐1410, by calling (919) 981‐ 5454, or at www.osc.nc.gov.
Benefits Provided. LGERS provides retirement and survivor benefits. Retirement benefits are determined as 1.85% of the member’s average final compensation times the member’s years of creditable service. A member’s average final compensation is calculated as the average of a member’s four highest consecutive years of compensation. Plan members are eligible to retire with full retirement benefits at age 65 with five years of creditable service, at age 60 with 25 years of creditable service, or at any age with 30 years of creditable service. Plan members are eligible to retire with partial retirement benefits at age 50 with 20 years of creditable service or at age 60 with five years of creditable service (age 55 for firefighters). Survivor benefits are available to eligible beneficiaries of members who die while in active service or within 180 days of their last day of service and who have either completed 20 years of creditable service regardless of age (15 years of creditable service for firefighters and rescue squad members who are killed in the line of duty) or have completed five years of service and have reached age 60. Eligible beneficiaries may elect to receive a monthly Survivor’s Alternate Benefit for life or a return of the member’s contributions. The plan does not provide for automatic post‐retirement benefit increases. Increases are contingent upon actuarial gains of the plan.
37 65 Town of Swansboro, North Carolina Notes to the Financial Statements For the Year Ended June 30, 2019
LGERS plan members who are LEOs are eligible to retire with full retirement benefits at age 55 with five years of creditable service as an officer, or at any age with 30 years of creditable service. LEO plan members are eligible to retire with partial retirement benefits at age 50 with 15 years of creditable service as an officer. Survivor benefits are available to eligible beneficiaries of LEO members who die while in active service or within 180 days of their last day of service and who also have either completed 20 years of creditable service regardless of age, or have completed 15 years of service as a LEO and have reached age 50, or have completed five years of creditable service as a LEO and have reached age 55, or have completed 15 years of creditable service as a LEO if killed in the line of duty. Eligible beneficiaries may elect to receive a monthly Survivor’s Alternate Benefit for life or a return of the member’s contributions.
Contributions. Contribution provisions are established by General Statute 128‐30 and may be amended only by the North Carolina General Assembly. Town of Swansboro, North Carolina employees are required to contribute 6% of their compensation. Employer contributions are actuarially determined and set annually by the LGERS Board of Trustees. The Town of Swansboro, North Carolina’s contractually required contribution rate for the year ended June 30, 2019, was 8.50% of compensation for law enforcement officers and 7.75% for general employees and firefighters, actuarially determined as an amount that, when combined with employee contributions, is expected to finance the costs of benefits earned by employees during the year. Contributions to the pension plan from the Town of Swansboro, North Carolina were $112,470 for the year ended June 30, 2019.
Refunds of Contributions – Town employees who have terminated service as a contributing member of LGERS, may file an application for a refund of their contributions. By state law, refunds to members with at least five years of service include 4% interest. State law requires a 60-day waiting period after service termination before the refund may be paid. The acceptance of a refund payment cancels the individual’s right to employer contributions or any other benefit provided by LGERS
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions
At June 30, 2019, the Town reported a liability of $516,933 for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2018. The total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of December 31, 2017. The total pension liability was then rolled forward to the measurement date of June 30, 2018 utilizing update procedures incorporating the actuarial assumptions. The Town’s proportion of the net pension liability was based on a projection of the Town’s long‐term share of future payroll covered by the pension plan, relative to the projected future payroll covered by the pension plan of all participating LGERS employers, actuarially determined. At June 30, 2018, the Town’s proportion was 0.02179%, which was an increase of 0.00041% from its proportion measured as of June 30, 2017.
38 66 Town of Swansboro, North Carolina Notes to the Financial Statements For the Year Ended June 30, 2019
For the year ended June 30, 2019, the Town recognized pension expense of $143,954. At June 30, 2019, the Town reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Deferred Deferred Outflows of Inflows of Resources Resources Differences between expected and actual experience $ 79,751 $ 2,676 Changes of assumptions 137,174 -
Net difference between projected and actual earnings on pension plan investments 70,959 - Changes in proportion and differences between Town contributions and proportionate share of contributions 8,328 16,609 Town contributions subsequent to the measurement date 112,470 - Total $ 408,682 $ 19,285
$112,470 reported as deferred outflows of resources related to pensions resulting from Town contributions subsequent to the measurement date will be recognized as an increase of the net pension liability in the year ended June 30, 2020. Other amounts reported as deferred inflows of resources related to pensions will be recognized in pension expense as follows:
Year ended June 30: 2020 $ 131,606 2021 84,784 2022 19,005 2023 41,531 2024 - Thereafter - $ 276,926
Actuarial Assumptions. The total pension liability in the December 31, 2017 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement:
Inflation 3.0 percent Salary increases 3.50 to 8.10 percent, including inflation and productivity factor Investment rate of return 7.00 percent, net of pension plan investment expense, including inflation
39 67 Town of Swansboro, North Carolina Notes to the Financial Statements For the Year Ended June 30, 2019
The plan currently uses mortality tables that vary by age, gender, employee group (i.e. general, law enforcement officer) and health status (i.e. disabled and healthy). The current mortality rates are based on published tables and based on studies that cover significant portions of the U.S. population. The healthy mortality rates also contain a provision to reflect future mortality improvements.
The actuarial assumptions used in the December 31, 2017 valuation were based on the results of an actuarial experience study for the period January 1, 2010 through December 31, 2014.
Future ad hoc COLA amounts are not considered to be substantively automatic and are therefore not included in the measurement.
The projected long‐term investment returns and inflation assumptions are developed through review of current and historical capital markets data, sell‐side investment research, consultant whitepapers, and historical performance of investment strategies. Fixed income return projections reflect current yields across the U.S. Treasury yield curve and market expectations of forward yields projected and interpolated for multiple tenors and over multiple year horizons. Global public equity return projections are established through analysis of the equity risk premium and the fixed income return projections. Other asset categories and strategies’ return projections reflect the foregoing and historical data analysis. These projections are combined to produce the long‐term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class as of June 30, 2018 are summarized in the following table:
Long-Term Expected Asset Class Target Allocation Real Rate of Return Fixed Income 29.0% 1.4% Global Equity 42.0% 5.3% Real Estate 8.0% 4.3% Alternatives 8.0% 8.9% Credit 7.0% 6.0% Inflation Protection 6.0% 4.0% Total 100%
The information above is based on 30-year expectations developed with the consulting actuary for the 2018 asset liability and investment policy study for the North Carolina Retirement Systems, including LGERS. The long-term nominal rates of return underlying the real rates of return are arithmetic annualized figures. The real rates of return are calculated from nominal rates by multiplicatively subtracting a long-term inflation assumption of 3.00%. All rates of return and inflation are annualized.
40 68 Town of Swansboro, North Carolina Notes to the Financial Statements For the Year Ended June 30, 2019
Discount rate. The discount rate used to measure the total pension liability was 7.00%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current contribution rate and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on these assumptions, the pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments of the current plan members. Therefore, the long‐term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability.
Sensitivity of the Town’s proportionate share of the net pension liability to changes in the discount rate. The following presents the Town’s proportionate share of the net pension liability calculated using the discount rate of 7.00 percent, as well as what the Town’s proportionate share of the net pension asset or net pension liability would be if it were calculated using a discount rate that is one percentage point lower (6.00 percent) or one percentage point higher (8.00 percent) than the current rate:
1% Discount 1% Decrease Rate Increase (6.00%) (7.00%) (8.00%) Town's proportionate share of the net pension liability (asset) $ 1,241,719 $ 516,933 $ (88,709)
Pension plan fiduciary net position. Detailed information about the pension plan’s fiduciary net position is available in the separately issued Comprehensive Annual Financial Report (CAFR) for the State of North Carolina. b. Law Enforcement Officers' Special Separation Allowance
1) Plan Description
The Town of Swansboro administers a public employee retirement system (the Separation Allowance), a single-employer defined benefit pension plan that provides retirement benefits to the Town's qualified sworn law enforcement officers under the age of 62 who have completed at least 30 years creditable service or have attained 55 years of age and have completed five or more years of creditable service. The Separation Allowance is equal to 0.85 percent of the annual equivalent of the base rate of compensation most recently applicable to the officer for each year of creditable service. The retirement benefits are not subject to any increases in salary or retirement allowances that may be authorized by the General Assembly. Article 12D of G.S. Chapter 143 assigns the authority to establish and amend benefit provisions to the North Carolina General Assembly.
41 69 Town of Swansboro, North Carolina Notes to the Financial Statements For the Year Ended June 30, 2019
All full-time law enforcement officers of the Town are covered by the Separation Allowance. At December 31, 2018, the Separation Allowance’s membership consisted of:
Retirees receiving benefits 1 Terminated plan members entitled to but not yet receiving benefits 0 Active plan members 10 11
2) Summary of Significant Accounting Policies
Basis of Accounting
The Town has chosen to fund the Separation Allowance on a pay as you go basis. Pension expenditures are made from the General Fund, which is maintained on the modified accrual basis of accounting. Benefits are recognized when due and payable in accordance with the terms of the plan.
The Separation Allowance has no assets accumulated in a trust that meets the following criteria which are outlined in GASB Statements 73.
3) Actuarial Assumptions
The entry age actuarial cost method was used in the December 31, 2017 valuation. The total pension liability in the December 31, 2017 actuarial valuation was determined using the following actuarial assumption, applied to all periods included in the measurement:
Inflation 2.50 percent Salary increases 3.50 to 7.35 percent, including inflation and productivity factor Discount rate 3.64 percent
The discount rate is the weekly average of the Bond Buyer General Obligation 20-Year Municipal Bond Index at the end of each month. Maturity rates are based on the RP- 014 Mortality tables.
4) Contributions
The Town is required by Article 12D of G.S. Chapter 143 to provide these retirement benefits and has chosen to fund the amounts necessary to cover the benefits earned on a pay as you go basis through appropriations made in the General Fund operating budget.
42 70 Town of Swansboro, North Carolina Notes to the Financial Statements For the Year Ended June 30, 2019
There were no contributions made by employees. The Town’s obligation to contribute to this plan is established and may be amended by the North Carolina General Assembly. Administration costs of the Separation Allowance are financed through investment earnings. The Town paid $11,956 as benefits came due for the reporting period.
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions
At June 30, 2019, the Town reported a total pension liability of $63,708. The total pension liability was measured as of December 31, 2018 based on a December 31, 2017 actuarial valuation. The total pension liability was then rolled forward to the measurement date of December 31, 2018 utilizing update procedures incorporating the actuarial assumptions. For the year ended June 30, 2019, the Town recognized pension expense of $5,381. Deferred Deferred Outflows of Inflows of Resources Resources Differences between expected and actual experience $ - $ 19,903 Changes of assumptions 2,698 2,517 Town benefit payments and plan administrative expense made subsequent to the measurement date 16,660 - Total $ 19,358 $ 22,420
$16,660 reported as deferred outflows of resources related to pensions resulting from benefit payments made subsequent to the measurement date will be recognized as a decrease of the net pension liability in the year ended June 30, 2020. Other amounts reported as deferred inflows of resources related to pensions will be recognized in pension expense as follows:
Year ended June 30 2020 $ (5,975) 2021 (5,975) 2022 (5,975) 2023 (1,703) 2024 (94) Thereafter $ - $ (19,722)
Sensitivity of the Town’s total pension liability to changes in the discount rate. The following presents the Town’s total pension liability calculated using the discount rate of 3.64 percent, as well as what the total pension liability would be if it were calculated using a discount rate that is one percentage point lower (2.64 percent) or one percentage point higher (4.64 percent) than the current rate:
43 71 Town of Swansboro, North Carolina Notes to the Financial Statements For the Year Ended June 30, 2019
1% Discount 1% Decrease Rate Increase (2.64%) (3.64%) (4.64%) Town's proportionate share of the total pension liability $ 68,010 $ 63,708 $ 59,942
Schedule of Changes in Total Pension Liability Law Enforcement Officers' Special Separation Allowance
2018 Beginning balance $ 70,646 Service cost 8,953 Interest 2,044 Changes of benefit terms - Differences between expected and actual experience in the measurement of the total pension liability (3,986) Changes of assumptions or other inputs (1,993) Benefit payments (11,956) Other changes - Ending balance of the total pension liability $ 63,708
The plan currently uses mortality tables that vary by age, and health status (i.e. disabled and healthy). The current morality rates are based on published tables and based on studies that cover significant portions of the U.S. population. The healthy mortality rates also contain a provision to reflect future morality improvements.
The actuarial assumptions used in the December 31, 2017 valuation were based on the results of an actuarial experience study for the period January 1, 2010 through December 31, 2014.
Total Expense, Liabilities, and Deferred Outflows and Inflows of Resources of Related to Pensions
Following is information related to the proportionate share and pension expense for all pension plans:
44 72 Town of Swansboro, North Carolina Notes to the Financial Statements For the Year Ended June 30, 2019
LGERS LEOSSA Total Pension Expense $ 143,954 $ 5,381 $ 149,335 Pension Liability 516,933 63,708 580,641 Proportionate share of the net pension liability 0.02179% n/a 0.02138%
Deferred of Outflows of Resources Differences between expected and actual experience 79,751 - 79,751 Changes of assumptions 137,174 2,698 139,872 Net difference between projected and actual earnings on pension plan investments 70,959 - 70,959 Changes in proportion and differences between contributions and proportionate share of contributions 8,328 - 8,328 Benefit payments and administrative costs paid subsequent to the measurement date 112,470 16,660 129,130
Deferred of Inflows of Resources Differences between expected and actual experience 2,676 19,903 22,579 Changes of assumptions - 2,517 2,517 Net difference between projected and actual earnings on pension plan investments - - - Changes in proportion and differences between contributions and proportionate share of contributions 16,609 - 16,609
c. Supplemental Retirement Income Plan for Law Enforcement Officers
1) Plan Description
The Town contributes to the Supplemental Retirement Income Plan (Plan), a defined contribution pension plan administered by the Department of State Treasurer and a Board of Trustees. The Plan provides retirement benefits to law enforcement officers employed by the Town. Article 5 of G.S. Chapter 135 assigns the authority to establish and amend benefit provisions to the North Carolina General Assembly. The Supplemental Retirement Income Plan for Law Enforcement Officers is included in the Comprehensive Annual Financial Report (CAFR) for the State of North Carolina. The State’s CAFR includes the pension trust fund financial statements for the Internal Revenue Code Section 401(k) plan that includes the Supplemental Retirement Income Plan for Law Enforcement Officers. That report may be obtained by writing to the Office of the State Controller, 1410 Mail Service Center, Raleigh, North Carolina 27699-1410, or by calling (919) 981-5454.
45 73 Town of Swansboro, North Carolina Notes to the Financial Statements For the Year Ended June 30, 2019
2) Funding Policy
Article 12E of G.S. Chapter 143 requires the Town to contribute each month an amount equal to five percent of each officer's salary, and all amounts contributed are vested immediately. Also, the law enforcement officers may make voluntary contributions to the plan. Contributions for the year ended June 30, 2019 were $30,769 which consisted of $24,709 from the Town and $5,066 from the law enforcement officers. No amounts were forfeited.
The Town has also elected to contribute to the Supplemental Retirement Income Plan for general employees. Contributions for the year ended June 30, 2019 were $26,918 which consisted of $7,800 from the Town and $19,160 from the employees. No amounts were forfeited. d. Other Postemployment Benefits
Health Care Benefits
1) Plan Description
The Town of Swansboro, North Carolina administers a health care plan, a single employer defined benefit pension plan that provides a stipend for health insurance to retirees who have completed a specified number of years of service to the town and in service to local government. Employees who retire under the provisions of the North Carolina Local Government Employees’ Retirement System (NCLGERS) and have at least 10 (ten) years of consecutive service with the Town and at least 25 years of service with the NCLGERS are eligible to participate in the Town’s health care plan.
The Town provides a portion of the total cost for individual coverage for retirees based on years of service at retirement. The amount paid by the Town is based on the current value of the monthly premium being paid by the town for group health insurance to current employees.
Years of Service Years of Service with the Town with the NCLGERS Town at Retirement at Retirement Contribution 10-14 25 25% 15-19 25 50% 20 or more 25 75%
All full-time employees of the Town are covered by the Health Care Plan. At June 30, 2019, the Plan’s membership consisted of:
Retirees and dependents receiving benefits 1 Active plan members 32 33
46 74 Town of Swansboro, North Carolina Notes to the Financial Statements For the Year Ended June 30, 2019
Total OPEB Liability
The District’s Total OPEB Liability (TOL) of $695,820 was measured as of June 30, 2018 and was determined by an actuarial valuation as of June 30, 2017.
Actuarial Assumptions and Other Inputs. The total OPEB liability in the June 30, 2017 actuarial valuation was determined using the following actuarial assumptions and other inputs, applied to all periods included in the measurement unless otherwise specified:
Paragraph 166: Listed below is the information to be disclosed regarding the actuarial assumptions and other inputs used to measure the TOL. The complete set of actuarial assumptions and other inputs utilized in developing the TOL are outlined in Schedule C. The TOL was determined by an actuarial valuation as of June 30, 2017, using the following key actuarial assumptions and other inputs:
Inflation 2.50% Real wage growth 1.00% Wage inflation 3.50% Salary Increases, including wage inflation: General employees 3.50% - 7.75% Firefighters 3.50% - 7.75% Law Enforcement 3.50% - 7.35% Municipal Bond Index Rate: Prior measurement date 3.56% Measurement date 3.89% Health Care Cost Trends: Pre-Medicare 5.50% for 2017 decreasing to an ultimate rate of 5.00% by 2020
The discount rate used to measure the TOL was based on the June average of the Bond Buyer General Obligation 20-year Municipal Bond Index published weekly by The Bond Buyer.
Mortality rates were based on the RP-2014 mortality tables, with adjustments for LGERS experience and generational mortality improvements using Scale MP-2015.
The demographic actuarial assumptions for retirement, disability incidence, withdrawal, and salary increases used in the June 30, 2017 valuation were based on the results of an actuarial experience study for the period January 1, 2010 – December 31, 2014, adopted by the LGERS.
47 75 Town of Swansboro, North Carolina Notes to the Financial Statements For the Year Ended June 30, 2019
The remaining actuarial assumptions (e.g., initial per capita costs, health care cost trends, rate of plan participation, rates of plan election, etc.) used in the June 30, 2017 valuation were based on a review of recent plan experience done concurrently with the June 30, 2017 valuation.
Paragraph 167(a): This paragraph requires disclosure of the sensitivity of the TOL to changes in the health care cost trend rates. The following exhibit presents the TOL of the Plan, calculated using the health care cost trend rates, as well as what the Plan’s TOL would be if it were calculated using a health care cost trend rate that is 1- percentage-point lower or 1-percentage-point higher than the current rate.
Health Care Cost Trend Rate Sensitivity 1% 1% Decrease Current Increase Total OPEB Liability $ 535,587 $ 695,820 $ 920,943
Paragraph 167(b): This paragraph requires disclosure of the sensitivity of the TOL to changes in the discount rate. The following exhibit presents the TOL of the Plan, calculated using the discount rate of 3.89%, as well as what the Plan’s TOL would be if it were calculated using a Discount Rate that is 1-percentage-point lower or 1- percentage-point higher than the current rate.
Discount Rate Sensitivity 1% Current 1% Decrease Discount Rate Increase (2.89%) (3.89%) (4.89%) Total OPEB Liability $ 876,421 $ 695,820 $ 560,700
Paragraph 168(a)-(c): This paragraph requires a schedule of changes in the TOL. The needed information is shown in the following table:
Changes in the TOL Total OPEB Liability as of June 30, 2017 $ 663,045 Changes for the year: Service Cost at the end of the year* 71,196 Interest on TOL and Cash Flows 23,521 Change in benefit terms - Difference between expected and actual experience (3,447) Changes of assumptions or other inputs (53,792) Benefit payments and implicit subsidy credit (4,703) Other - Net Changes 32,775 Total OPEB Liability as of June 30, 2018 $ 695,820 * The service cost includes interest for the year.
48 76 Town of Swansboro, North Carolina Notes to the Financial Statements For the Year Ended June 30, 2019
Paragraph 168(d): The employer does not have a special funding situation.
Paragraph 169(a): The TOL is based upon an actuarial valuation performed as of the Valuation Date, June 30, 2018. An expected TOL is determined as of June 30, 2017, the Prior Measurement Date, using standard roll back techniques. The roll back calculation begins with the TOL, as of the Measurement Date, June 30, 2018, adds the expected benefit payments for the year, deducts interest at the Discount Rate for the year, and then subtracts the annual Normal Cost (also called the Service Cost).
CMC has assumed no significant changes, other than the change in the Municipal Bond Index Rate, have occurred between the Valuation Date and the Measurement Date. If a significant change, other than the change in the Municipal Bond Index Rate, has occurred between the Valuation Date and the Measurement Date, an updated valuation may need to be performed.
Paragraph 169(b): Our understanding is that the employer does not have a special funding situation.
Paragraph 169(c): Since the Prior Measurement Date, the Discount Rate has changed from 3.56% to 3.89% due to a change in the Municipal Bond Rate.
Paragraph 169(d): There are no changes in benefit terms since the Prior Measurement Date.
Paragraph 169(e): No benefit payments are attributable to the purchase of allocated insurance contracts.
Paragraph 169(f): CMC was not expected to supply this information.
Paragraph 169(g): Please see Section IV for the development of the OPEB Expense (OE).
Paragraph 169(h)(1)-(2): Since certain expense items are recognized over closed periods each year, the deferred portions of these items must be tracked annually. If the amounts will increase OPEB Expense, they are labeled Deferred Outflows of Resources. If they serve to reduce OPEB Expense, they are labeled Deferred Inflows of Resources. The recognition of these amounts is accomplished on a level dollar basis, with no interest included in the deferred amounts. Experience gains/losses and the impact of changes in actuarial assumptions or other inputs, if any, are recognized over the average expected remaining service life of the active and inactive Plan members at the beginning of the measurement period.
The following table provides a summary of the Deferred Outflows of Resources and Deferred Inflows of Resources as of June 30, 2018:
49 77 Town of Swansboro, North Carolina Notes to the Financial Statements For the Year Ended June 30, 2019
Deferred Deferred Outflows of Inflows of Resources Resources Differences between expected and actual experience $ - $ 5,090 Changes of assumptions or other inputs - 120,806 Total $ - $ 125,896
Paragraph 169(h)(3): Our understanding is that the employer does not have a special funding situation.
Paragraph 169(h)(4): CMC was not expected to supply this information.
Paragraph 169(i)(1)-(2): Amounts reported as Deferred Outflows of Resources and Deferred Inflows of Resources related to OPEB benefits will be recognized in OPEB Expense as follows:
Measurement Period Ended June 30: 2019 $ (14,251) 2020 (14,251) 2021 (14,251) 2022 (14,251) 2023 (14,251) Thereafter (54,641)
Paragraph(i)(3): Our understanding is that the employer does not have a special funding situation.
Paragraph(j): CMC was not expected to supply this information.
2. Other Employment Benefits
The Town has also elected to provide death benefits to employees through the Death Benefit Plan for members of the Local Governmental Employees’ Retirement System (Death Benefit Plan), a multiple‐employer, State‐administered, cost‐sharing plan funded on a one‐year term cost basis. The beneficiaries of those employees who die in active service after one year of contributing membership in the System, or who die within 180 days after retirement or termination of service and have at least one year of contributing membership service in the System at the time of death are eligible for death benefits. Lump sum death benefit payment to beneficiaries are equal to the employee’s 12 highest months’ salary in a row during the 24 months prior to the employee’s death, but the benefit may not exceed $50,000 or be less than $25,000. All death benefit payments are made from the Death Benefit Plan. The Town has no liability beyond the payment of monthly contributions. The contributions to the Death Benefit Plan cannot be separated between the post‐employment benefit amount and the other benefit amount. Contributions are determined as a percentage of monthly payroll based upon rates established annually by the State. Separate rates are set for employees not engaged in law enforcement and for law enforcement officers. The Town considers these contributions to be immaterial.
50 78 Town of Swansboro, North Carolina Notes to the Financial Statements For the Year Ended June 30, 2019
3. Deferred Outflows and Inflows of Resources
Deferred outflows of resources at year-end are comprised of the following:
Contributions to pension plan in current fiscal year $ 112,470 Benefit payments made and administrative expenses for LEOSSA 16,660 Differences between expected and actual experience 79,751 Changes of assumptions 139,872 Net difference between projected and actual earnings on plan investments 70,959 Changes in proportion and differences between employer contributions and proportionate share of contributions 8,328 $ 428,040
Deferred inflows of resources at year-end are comprised of the following:
Statement of General Fund Net Position Balance Sheet Taxes receivable, less penalties (General Fund) $ - $ 27,683 Changes in assumptions 123,323 Differences between expected and actual experience 27,669 - Changes in proportion and differences between Town Contributions and proportionate share of contributions 16,609 - Total $ 167,601 $ 27,683
4. Risk Management
The Town is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The Town participates in three self‐funded risk financing pools administered by the North Carolina League of Municipalities. Through these pools, the Town obtains general liability and auto liability coverage of $3 million per occurrence, property coverage up to the total insurance values of the property policy, and workers’ compensation coverage up to statutory limits, and employee health coverage. The liability and property exposures are reinsured through commercial carriers for claims in excess of retentions as selected by the Board of Trustees each year. Stop loss insurance is purchased by the Board of Trustees to protect against large medical claims that exceed certain dollar cost levels. Specific information on the limit of the reinsurance, excess and stop loss policies purchased by the Board of Trustees can be obtained by contacting the Risk Management Services Department of the NC League of Municipalities. The pools are audited annually by certified public accountants, and the audited financial statements are available to the Town upon request.
51 79 Town of Swansboro, North Carolina Notes to the Financial Statements For the Year Ended June 30, 2019
The Town carries commercial coverage for all other risks of loss. There have been no significant reductions in insurance coverage in the prior year and settled claims have not exceeded coverage in any of the past three fiscal years.
The Town did not carry flood insurance during the year ended June 30, 2019. The Town has received all certifications for eligible properties but has not purchased flood insurance.
In accordance with G.S. 159‐29, the Town’s employees that have access to $100 or more at any given time of the Town’s funds are performance bonded through a commercial surety bond. The finance officer is individually bonded for $50,000. The remaining employees that have access to funds are bonded under a blanket bond for $50,000.
5. Claims, Judgments and Contingent Liabilities
At June 30, 2019, the Town was a defendant to a lawsuit. In the opinion of the Town’s management and the Town attorney, the ultimate effect of this legal matter will not have a material adverse effect on the Town’s financial position.
6. Long-term Obligations
a. Direct Placements
Notes from direct placements are collateralized by capital assets with a carrying value of $1,721,844.
The Town’s outstanding note from direct placements in the amount $1,034,486 is secured with collateral of the town hall annex and tanker truck. The note, entered into in March 2013, requires principal payments beginning in 2014 with an interest rate of 2.69%.
The Town’s outstanding note from direct placements in the amount of $400,000 is secured with collateral of the building and property known as the Public Safety Building. The note, entered into in December 2014, requires principal payments beginning in 2015 with an interest rate of 2.58%.
The Town’s outstanding note from direct placements in the amount of $425,000 is secured with collateral of the fire truck purchased. The note, entered into November 2016, will be paid in annual installments of $47,512 at an interest rate of 2.08% for 10 years.
The Town’s outstanding note from direct placements in the amount of $245,000 is secured with collateral of the various equipment and vehicles purchased. The note, entered into in November 2016, will be paid in annual installments of $51,783 at an interest rate of 1.87% for 5 years.
52 80 Town of Swansboro, North Carolina Notes to the Financial Statements For the Year Ended June 30, 2019
The Town’s outstanding note from direct placements in the amount of $250,000 is secured with collateral of the building renovated known as the Sleeping Quarters. The note, entered into in December 2016, will be paid in annual installments at an interest rate of 2.43% for 10 years.
The future minimum payments of the notes from direct placement as of June 30, 2019, including $176,577 of interest, are as follows:
Year Ended June 30 Principal Interest Interest 2020 $ 221,000 $ 39,070 $ 260,070 2021 224,549 33,883 258,432 2022 228,180 28,612 256,792 2023 180,115 24,206 204,321 2024 182,949 18,780 201,729 2025-2029 569,083 32,026 601,109 Total $ 1,605,876 $ 176,577 $ 1,782,453
At June 30, 2019, the Town of Swansboro, North Carolina had a legal debt margin of $37,465,461. b. Changes in Long-term Liabilities
Compensated absences, pension liabilities and OPEB liabilities for governmental activities have typically been liquidated in the General fund. Current Beginning Ending Portion of Governmental Activities: Balance Increases Decreases Balance Balance Notes from direct placement $1,823,407 $ - $ 217,531 $1,605,876 $ 221,000 Total pension liability (LEO) 70,646 - 6,938 63,708 - Net pension liability (LGERS) 310,295 180,792 - 491,087 - Total OPEB liability 649,893 11,137 - 661,030 - Compensated absences 108,766 36,812 42,399 103,179 15,477 Total $2,963,007 $ 228,741 $ 266,868 $2,924,880 $ 236,477
For the governmental funds, accrued compensated absences, pensions, and post- employment benefits are generally liquidated in the General Fund. Current Beginning Ending Portion of Business-type Activities: Balance Increases Decreases Balance Balance Net pension liability (LGERS) $ 16,332 $ 9,514 $ - $ 25,846 $ - Total OPEB liability 13,152 21,638 - 34,790 - Compensated absences - 1,826 1,826 - - Total $ 29,484 $ 32,978 $ 1,826 $ 60,636 $ -
53 81 Town of Swansboro, North Carolina Notes to the Financial Statements For the Year Ended June 30, 2019
C. Interfund Balances and Activity
The interfund balances resulted from the initial set-up of the Enterprise Funds. Once the Enterprise Funds are operating at full capacity, the amounts will be reimbursed to the General Fund.
Transfers to/from other funds at June 30, 2019, consist of the following:
From the Parks and Recreation Reserve Fund to the General Fund to return unused funds. $ 7,500 From the General Fund to the Reserve Fund to fund future capital purchases. 54,500 From the General Fund to the Stormwater Fund to assist with operations of new fund. 8,500 From the Parks and Recreation Reserve Fund to the Waterfront Plan Implementation Project Fund to assist with future projects. 46,600 From the Parks and Recreation Reserve Fund to the Municipal Park Improvements Fund to assist with future projects. 49,080 From the General Fund to the Waterfront Plan Implementation Project Fund to assist with future projects. 10,000 $ 176,180
Transfers are used to move unrestricted revenues to finance various programs that the government must account for in other funds in accordance with budgetary authorizations, including amounts provided matching funds for various grant programs.
D. Net Investment in Capital Assets Governmental Business-type Capital assets $ 7,147,972 $ 100,147 Less: long-term debt 1,605,876 - Net Investment in Capital Assets $ 5,542,096 $ 100,147
E. Fund Balance
The following schedule provides management and citizens with information on the portion of General fund balance that is available for appropriation:
Total fund balance - General Fund $ 2,696,275 Less: Stabilization by State Statute 384,702 Streets-Powell Bill 31,901 Festivals and events 11,274 Appropriated Fund Balance in 2020 budget 123,471 Remaining Fund Balance $ 2,144,927
54 82 Town of Swansboro, North Carolina Notes to the Financial Statements For the Year Ended June 30, 2019
IV. Jointly Governed Organization
The Town, in conjunction with 9 counties and 46 municipalities, established the East Carolina Council of Governments (Council). The participating governments established the Council to coordinate various funding received from federal and State agencies. Each participating government appoints one member to the Council’s governing board. The Town considers the membership fees paid to the Council during the fiscal year ended June 30, 2019 to be immaterial. The Town has no equity interest nor does the town materially contribute to the continued existence of the Council. The Town’s interests are other than financial.
V. Summary Disclosure of Significant Contingencies
Federal and State Assisted Programs
The Town has received proceeds from several federal and State grants. Periodic audits of these grants are required, and certain costs may be questioned as not being appropriate expenditures under the grant agreements. Such audits could result in the refund of grant moneys to the grantor agencies. Management believes that any required refunds will be immaterial. No provision has been made in the accompanying financial statements for the refund of grant monies.
VI. Subsequent Events
As of November 27, 2019, the date of completion of the financial statements, there were no material subsequent events that were required to be reported.
55 83
Required Supplemental Financial Data
This section contains additional information required by generally accepted accounting principles.
• Schedule of Proportionate Share of Net Pension Liability for Local Government Employees' Retirement Schedule
• Schedule of Contributions to Local Government Employees’ Retirement System
• Schedule of Changes in Total Pension Liability
• Schedule of Total Pension Liability as a Percentage of Covered Payroll
• Schedule of Changes in the Total OPEB Liability
84
Town of Swansboro, North Carolina Town of Swansboro’s Proportionate Share of Net Pension Liability (Asset) Required Supplementary Information Last Six Fiscal Years
Local Government Employees' Retirement System
2019 2018 2017 2016 2015 2014 Town of Swansboro's proportion of the net pension liability (asset) (%) 0.02179% 0.02138% 0.01978% 0.02512% 0.0230% 0.0220% Town of Swansboro's proportion of the net pension liability (asset) ($) $ 516,933 $ 326,627 $ 419,798 $ 112,737 $ (135,936) $ 247,104 Town of Swansboro's covered payroll $ 1,359,899 $ 1,294,306 $ 1,098,158 $ 1,197,066 $ 1,205,459 $ 1,206,100 Town of Swansboro's proportionate share of the net pension liability (asset) as a percentage of its covered payroll 38.01% 25.24% 38.23% 9.42% -11.28% 20.49% Plan fiduciary net position as a percentage of the total pension liability 91.63% 94.18% 91.47% 98.09% 102.64% 94.35%
Information on this schedule will report 10 years’ information once the 10th year of implementation occurs.
56 85
Town of Swansboro, North Carolina Town of Swansboro's Contributions Required Supplementary Information Last Six Fiscal Years
Local Government Employees' Retirement System
2019 2018 2017 2016 2015 2014 Contractually required contribution $ 112,470 $ 105,976 $ 97,659 $ 78,302 $ 86,146 $ 86,148 Contributions in relation to the contractually required contributions 112,470 105,976 97,659 78,302 86,146 86,148 Contribution deficiency (excess) $ - $ - $ - $ - $ - $ - Town of Swansboro's covered payroll $ 1,395,261 $ 1,359,899 $ 1,294,306 $ 1,098,158 $ 1,197,066 $ 1,205,459 Contributions as a percentage of covered payroll 8.06% 7.79% 7.55% 7.13% 7.20% 7.15%
Information on this schedule will report 10 years’ information once the 10th year of implementation occurs.
57 86
Town of Swansboro, North Carolina Schedule of Changes in Total Pension Liability Law Enforcement Officers' Special Separation Allowance June 30, 2019
2019 2018 2017 Beginning balance $ 70,646 $ 95,469 $ 97,664 Service cost 8,953 6,719 8,244 Interest 2,044 3,454 3,273 Changes of benefit terms - - - Differences between expected and actual experience in the measurement of the total pension liability (3,986) (27,478) - Changes of assumptions or other inputs (1,993) 4,438 (1,756) Benefit payments (11,956) (11,956) (11,956) Other changes - - - Ending balance of the total pension liability $ 63,708 $ 70,646 $ 95,469
The amounts presented for each fiscal year were determined as of the prior fiscal year ending December 31.
Information on this schedule will report 10 years’ information once the 10th year of implementation occurs.
58 87
Town of Swansboro, North Carolina Schedule of Total Pension Liability as a Percentage of Covered Payroll Law Enforcement Officers' Special Separation Allowance June 30, 2019
2019 2018 2017 Total pension liability $ 63,708 $ 70,646 $ 95,469 Covered payroll 437,602 401,145 429,917 Total pension liability as a percentage of covered payroll 14.56% 17.61% 22.21%
Notes to the schedules:
The Town of Swansboro has no assets accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement 73 to pay related benefits.
Information on this schedule will report 10 years’ information once the 10th year of implementation occurs.
59 88
Town of Swansboro, North Carolina Schedule of Changes in the Total OPEB Liability and Related Ratios June 30, 2019
Total OPEB Liability 2019 2018
Service Cost $ 71,196 $ 82,197 Interest 23,521 19,727 Change in benefit terms - - Difference between expected and actual experience (3,447) (2,439) Changes of assumptions or other inputs (53,792) (89,242) Benefit payments and implicit subsidy credit (4,703) (5,124) Net Change in Total OPEB Liability 32,775 5,119 Total OPEB Liability - beginning 663,045 657,926 Total OPEB Liability - ending $ 695,820 $ 663,045
Covered Payroll $ 1,231,757 $ 1,231,757 Total OPEB Liability as a Percentage of Covered Payroll 56.49% 53.83%
Notes to Schedule
Changes of Assumptions: Changes of assumptions and other inputs reflect the effects of changes in the discount rate of each period. The following are the discount rates used in each period:
Fiscal Year Rate 2019 3.89% 2018 3.56%
Information on this schedule will report 10 years’ information once the 10th year of implementation occurs.
60 89
Individual Fund Statements and Schedules
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Town of Swansboro, North Carolina General Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 2019 (With Comparative Actual Amounts for the Year Ended June 30, 2018)
Variance Final Actual Positive Actual Budget 2019 (Negative) 2018 Revenues Ad Valorem Taxes: Current year $ 1,689,551 $ 1,546,150 Prior year 24,910 20,710 Penalties and interest 8,129 6,483 Total $ 1,683,513 $ 1,722,590 $ 39,077 $ 1,573,343 Other Taxes and Licenses: Occupancy tax $ 98,783 $ 68,371 Animal taxes - - Total $ 98,691 $ 98,783 $ 92 $ 68,371 Unrestricted Intergovernmental: Utility franchise tax $ 239,265 $ 236,106 Local option sales tax 881,457 784,325 Beer and wine tax 13,722 13,619 Court costs 9,470 5,312 ABC profit distribution 52,907 38,711 Tax refunds 12,230 10,170 Administrative fees 3,600 3,600 Total $ 1,116,155 $ 1,212,651 $ 96,496 $ 1,091,843 Restricted Intergovernmental: Powell Bill allocation $ 81,993 $ 82,382 Various grants 688,039 48,712 County - fire department 169,945 171,945 Solid waste disposal tax 2,086 2,011 Total $ 323,404 $ 942,063 $ 618,659 $ 305,050 Permits and Fees: Building permits and inspection fees $ 203,587 $ 183,808 Garbage collection fees - - Planning and zoning fees 6,045 11,510 Recreation contract fees 30,627 41,938 Festivals and events 85,812 1,345 Rental fees - building 130,524 78,767 Total $ 521,249 $ 456,595 $ (64,654) $ 317,368 Sales and Services: Homeowners recovery fund 1,000 360 (640) 460 Investment Earnings 18,000 42,378 24,378 25,378
61 91
Town of Swansboro, North Carolina General Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 2019 (With Comparative Actual Amounts for the Year Ended June 30, 2018)
Variance Final Actual Positive Actual Budget 2019 (Negative) 2018 Miscellaneous: Miscellaneous income $ 78,610 $ 25,317 Insurance proceeds 996,574 12,335 ONWASA reimbursements 35,000 35,000 Total $ 1,059,972 $ 1,110,184 $ 50,212 $ 72,652 Contributions: Donations - Memorial Trees $ - $ 150 Donations - Park 1,188 6,449 Donations - Police 6,352 3,700 Donations - Fire Department 225 1,250 Total $ 9,776 $ 7,765 $ (2,011) $ 11,549 Total Revenues $ 4,831,760 $ 5,593,369 $ 761,609 $ 3,466,014 Expenditures Governing Body: Salaries - elected officials $ 8,893 $ 9,121 FICA 680 698 Insurance - 284 Miscellaneous 2,439 1,837 Supplies 1,162 1,998 Election expense - 4,526 Travel 258 5,692 Contributions - 2,900 Total $ 17,217 $ 13,432 $ 3,785 $ 27,056 Administration: Salaries and wages $ 215,419 $ 217,432 FICA 17,666 16,629 Group insurance 22,087 24,214 Retirement 15,027 20,482 Employee allowances 13,038 8,500 Department supplies 1,287 727 Dues & subscriptions 9,294 7,440 Miscellaneous 1,448 138 Professional services 253,745 49,555 Travel 4,972 7,027 Capital outlay - - Capital outlay (non-capitalized) - - Total $ 593,670 $ 553,983 $ 39,687 $ 352,144
62 92
Town of Swansboro, North Carolina General Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 2019 (With Comparative Actual Amounts for the Year Ended June 30, 2018)
Variance Final Actual Positive Actual Budget 2019 (Negative) 2018 Human Resources: Salaries and wages $ - $ - FICA - - Miscellaneous - 162 Insurance - 1,075 Retirement - - Employee allowances - 500 Employee relations - 3,604 Professional services - 8,980 Supplies - 50 Travel - 699 Dues & subscriptions - 209 Advertising & notices - 410 Total $ - $ - $ - $ 15,689 Public Buildings: Salaries and wages $ 43,024 $ 42,395 FICA 3,192 3,393 Group insurance 120 2,308 Retirement 3,044 3,137 Employee allowances 300 775 Maintenance and renovations 884,136 39,139 Vehicle maintenance 1,351 5,763 Professional services 499,785 - Supplies 6,376 8,575 Utilities 56,584 48,095 Miscellaneous 921 493 Capital outlay - 103,459 Capital outlay (non-capitalized) 3,043 410 Total $ 1,754,519 $ 1,501,876 $ 252,643 $ 257,942 Legal: Professional services $ 38,500 $ 37,228 $ 1,272 $ 61,358 Finance: Salaries and wages $ 98,633 $ 89,771 FICA 7,479 6,879 Group Insurance 6,921 8,889 Retirement 8,185 7,464 Employee allowances 600 2,408 Department supplies 3,441 3,966
63 93
Town of Swansboro, North Carolina General Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 2019 (With Comparative Actual Amounts for the Year Ended June 30, 2018)
Variance Final Actual Positive Actual Budget 2019 (Negative) 2018 Dues & subscriptions 255 205 Fees 1,562 - Professional service 26,710 24,253 Tax collection 20,939 22,618 Travel 1,716 1,232 Capital outlay - - Capital outlay (non-capitalized) - - Total $ 193,538 $ 176,441 $ 17,097 $ 167,685 Total General Government $ 2,597,444 $ 2,282,960 $ 314,484 $ 881,874 Public Safety: Police and Fire: Salaries and wages $ 878,898 $ 820,652 FICA 70,292 65,222 Fees 13 1,168 Group insurance 84,459 74,211 Retirement 82,721 91,034 Employee allowances 16,726 10,466 Automotive supplies 9,147 - Department supplies 11,383 4,115 Dues & subscriptions 2,304 2,311 Fire prevention 3,664 - Maintenance - building 1,285 341 Maintenance - equipment 14,495 8,876 Maintenance - vehicle 16,055 74,293 Miscellaneous 1,963 932 Professional services 8,754 12,910 Telephone 6,435 6,278 Travel 626 1,772 Uniforms 3,595 5,079 Utilities - 14 Volunteer retention 4,145 7,237 Capital outlay 150,832 115,667 Capital outlay (non-capitalized) - 3,644 Total $ 1,604,856 $ 1,367,792 $ 237,064 $ 1,306,222 Planning: Salaries and wages $ 183,421 $ 148,569 FICA 12,197 11,033 Group insurance 20,403 29,808 Retirement 16,503 11,978 Employee allowances 2,825 2,952 Maintenance - equipment 6 677
64 94
Town of Swansboro, North Carolina General Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 2019 (With Comparative Actual Amounts for the Year Ended June 30, 2018)
Variance Final Actual Positive Actual Budget 2019 (Negative) 2018 Department supplies 2,802 418 Professional services 46,456 29,944 Miscellaneous 1,633 1,380 Travel 830 1,689 Dues and subscriptions 1,002 - Capital outlay (non-capitalized) - - Total $ 319,917 $ 288,078 $ 31,839 $ 238,448 Emergency Management: Services $ 1,125 $ 1,125 $ - $ 1,125 Total Public Safety $ 1,925,898 $ 1,656,995 $ 268,903 $ 1,545,795 Transportation: Streets and Highways: Salaries and wages $ 45,489 $ 41,583 FICA 3,348 3,415 Group insurance 6,747 9,919 Retirement 3,695 3,338 Employee allowances 300 450 Automotive supplies - 3,954 Department supplies 1,440 2,049 Fees 392 - Maintenance - building 73 - Maintenance - equipment 617 1,358 Maintenance - traffic signs 2,232 - Maintenance - storm drains - - Maintenance - streets - 24 Maintenance - vehicles 3,959 1,325 Sidewalk repairs 18,060 - Street lights 39,751 - Miscellaneous 40 45 Professional services 42 1,047 Travel 246 - Telephone - 456 Uniforms 396 293 Utilities - 35,058 Capital outlay 26,385 38,701 Capital outlay (non-capitalized) 7,777 5,030 Total $ 176,878 $ 160,989 $ 15,889 $ 148,045
65 95
Town of Swansboro, North Carolina General Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 2019 (With Comparative Actual Amounts for the Year Ended June 30, 2018)
Variance Final Actual Positive Actual Budget 2019 (Negative) 2018 State Street - Aid: Maintenance - streets $ 108,882 $ 68,238 $ 40,644 $ 53,310 Total Transportation $ 285,760 $ 229,227 $ 56,533 $ 201,355 Economic Development: Tourism Development Authority $ 98,176 $ 67,535 Festivals 74,537 64,145 Old Town Hall - - Church Street Dock 7,288 6,121 Total Economic Development $ 180,941 $ 180,001 $ 940 $ 137,801 Cultural and Recreation: Parks and Recreation: Salaries and wages $ 151,862 $ 147,260 FICA 11,663 11,568 Group insurance 12,043 9,737 Retirement 9,686 9,761 Employee allowances 875 3,708 Automotive supplies 1,984 2,229 Department supplies 12,310 17,700 Insurance - - Miscellaneous 2,202 2,570 Maintenance - building 10,720 15,191 Maintenance - vehicles 788 579 Maintenance - equipment 694 634 Professional services 22,612 35,638 Travel 2,694 2,197 Utilities - - Capital outlay - 23,610 Capital outlay (non-capitalized) 10,051 2,846 Total Cultural and Recreation $ 344,807 $ 250,184 $ 94,623 $ 285,228 Non-departmental: Miscellaneous $ 8,993 $ 6,842 Supplies - 2,283 Insurance 130,518 110,827 Fees 42,109 120,000 Telephone 2,645 2,352 Maintenance - equipment - 51,062 Utilities 6,779 6,779 Total Non-departmental $ 204,500 $ 191,044 $ 13,456 $ 300,145
66 96
Town of Swansboro, North Carolina General Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 2019 (With Comparative Actual Amounts for the Year Ended June 30, 2018)
Variance Final Actual Positive Actual Budget 2019 (Negative) 2018 Debt Service: Principal retirement $ 217,531 $ 214,144 Interest and other charges 42,939 43,548 Total Debt Service $ 263,305 $ 260,470 $ 2,835 $ 257,692
Total Expenditures $ 5,802,655 $ 5,050,881 $ 751,774 $ 3,609,890
Revenues Over Expenditures $ (970,895) $ 542,488 $ 1,513,383 $ (143,876) Other Financing Sources (Uses) Loan issuance $ 90,000 $ - $ (90,000) $ - Sale of capital assets - - - 50,486 Transfers in: Capital Reserve and Capital Projects 28,766 17,500 (11,266) 144,132 Transfers out: Waterfront Plan Implementation (10,000) (10,000) - - Capital Reserve (54,500) (54,500) - - Stormwater Fund (8,500) (8,500) - - Other (90,000) - 90,000 - Solid Waste Enterprise Fund - - - (20,000) Total Other Financing Sources (Uses) $ (44,234) $ (55,500) $ (11,266) $ 174,618
Fund balance appropriated $ 1,015,129 $ - $ (1,015,129) $ -
Net Change in Fund Balance $ - $ 486,988 $ 486,988 $ 30,742 Fund Balance, beginning 2,209,287 2,178,545 Fund Balance, ending $ 2,696,275 $ 2,209,287
67 97
Town of Swansboro, North Carolina Nonmajor Governmental Funds Combining Balance Sheet June 30, 2019
Capital Projects
Park & Public Sleeping Municipal Waterfront Capital Recreation Safety Quarters Park Plan Information Total Reserve Reserve Building Project Improvements Implementation Technology Combining Assets Cash and cash equivalents $ 173,898 $ 16,161 $ - $ - $ - $ 87,601 $ 5,478 $ 283,138 Grants receivable - - - - 67,816 - - 67,816 Total Assets $ 173,898 $ 16,161 $ - $ - $ 67,816 $ 87,601 $ 5,478 $ 350,954
Liabilities and Fund Balances Current Liabilities: Due to other funds $ - $ - $ - $ - $ - $ - $ - $ - Accounts payable - - - - 43,130 - - 43,130 Total Liabilities $ - $ - $ - $ - $ 43,130 $ - $ - $ 43,130
Fund Balances: Restricted: Capital improvements $ 173,898 $ 16,161 $ - $ - $ 24,686 $ 87,601 $ 5,478 $ 307,824 Total Fund Balances $ 173,898 $ 16,161 $ - $ - $ 24,686 $ 87,601 $ 5,478 $ 307,824 Total Liabilities and Fund Balances $ 173,898 $ 16,161 $ - $ - $ 67,816 $ 87,601 $ 5,478 $ 350,954
68 98
Town of Swansboro, North Carolina Nonmajor Governmental Funds Combining Statement of Revenue, Expenditures, and Charges in Fund Balances For the Year Ended June 30, 2019
Capital Projects
Park & Public Sleeping Waterfront Capital Recreation Building Quarters Plan Municipal Park Information Total Reserve Reserve Safety Project Implementation Improvements Technology Combining Revenues Total Revenues $ - $ 2,123 $ - $ - $ 97,593 $ - $ - $ 99,716
Expenditures Total Expenditures $ - $ - $ 6,281 $ 18,330 $ 74,087 $ 31,550 $ - $ 130,248
Revenues Over Expenditures $ - $ 2,123 $ (6,281) $ (18,330) $ 23,506 $ (31,550) $ - $ (30,532)
Other Financing Sources (Uses) Transfers in: General Fund $ 54,500 $ - $ - $ - $ 10,000 $ - $ - $ 64,500 Capital Reserve Fund - - - - 46,600 49,080 - 95,680 Transfers out: General Fund - (7,500) - - - - - (7,500) Other funds - (95,680) - - - - - (95,680) Total Other Financing Sources (Uses) $ 54,500 $ (103,180) $ - $ - $ 56,600 $ 49,080 $ - $ 57,000
Net Change in Fund Balance $ 54,500 $ (101,057) $ (6,281) $ (18,330) $ 80,106 $ 17,530 $ - $ 26,468
Fund Balance, beginning 119,398 117,218 6,281 18,330 7,495 7,156 5,478 281,356 Fund Balance, ending $ 173,898 $ 16,161 $ - $ - $ 87,601 $ 24,686 $ 5,478 $ 307,824
69 99
Town of Swansboro, North Carolina Capital Project Funds Capital Reserve Fund From Inception and For the Fiscal Year Ended June 30, 2019
Actual Variance Project Prior Current Total to Favorable Authorization Years Year Date (Unfavorable) Revenues: Reserve for capital $ - $ - $ - $ - $ -
Total Revenues $ - $ - $ - $ - $ -
Other Financing Sources (Uses) Transfers out: Waterfront Project $ - $ - $ - $ - $ - General Fund - - - - - Transfers in: - General Fund 320,000 263,530 54,500 318,030 (1,970) Fund balance appropriated (320,000) - - - 320,000
Total Other Financing Sources (Uses) $ - $ 263,530 $ 54,500 $ 318,030 $ 318,030
Revenues Over (Under) Expenditures $ - $ - $ 54,500 $ - $ -
Fund Balance: Beginning of year, July 1 119,398
End of year, June 30 $ 173,898
70 100
Town of Swansboro, North Carolina Capital Project Funds Parks & Recreation Reserve Fund From Inception and For the Fiscal Year Ended June 30, 2019
Actual Variance Project Prior Current Total to Favorable Authorization Years Year Date (Unfavorable) Revenues: Restricted intergovernmental Parks & recreation development fee $ 103,180 $ 117,218 $ 2,123 $ 119,341 $ 16,161
Other Financing Sources (Uses) Transfers out: Waterfront Plan Implementation Project $ 46,600 $ - $ 46,600 $ 46,600 $ - Municipal Park Improvements 49,080 - 49,080 49,080 - General Fund 7,500 - 7,500 7,500 - Total Other Financing Sources (Uses) $ 103,180 $ - $ 103,180 $ 103,180 $ -
Revenues Over (Under) Expenditures $ 103,180 $ 117,218 $ (101,057) $ 119,341 $ 16,161
Fund Balance: Beginning of year, July 1 117,218
End of year, June 30 $ 16,161
71 101
Town of Swansboro, North Carolina Capital Project Funds Public Safety Building Project Fund From Inception and For the Fiscal Year Ended June 30, 2019
Actual Variance Project Prior Current Total to Favorable Authorization Years Year Date (Unfavorable)
Expenditures: Architect $ 30,000 $ 27,000 $ 3,000 $ 30,000 $ - Legal 7,898 7,898 - 7,898 - Planning 1,450 656 794 1,450 - Construction 527,925 525,438 2,487 527,925 -
Total Expenditures $ 567,273 $ 560,992 $ 6,281 $ 567,273 $ -
Revenues Over (Under) Expenditures $ (567,273) $ (560,992) $ (6,281) $ (567,273) $ -
Other Financing Sources Transfers in: General Fund $ 567,273 $ 567,273 $ - $ 567,273 $ -
Net Change in Fund Balance $ - $ 6,281 (6,281) $ - $ -
Fund Balance: Beginning of year, July 1 6,281
End of year, June 30 $ -
72 102
Town of Swansboro, North Carolina Capital Project Funds Sleeping Quarters Project From Inception and For the Fiscal Year Ended June 30, 2019
Actual Variance Project Prior Current Total to Favorable Authorization Years Year Date (Unfavorable) Revenues: Restricted intergovernmental $ - $ - $ - $ - $ -
Total Revenues $ - $ - $ - $ - $ -
Expenditures: Planning services $ - $ - $ - $ - $ - Engineering 12,300 12,300 - 12,300 - Construction 217,700 201,593 16,107 217,700 - Miscellaneous 20,000 17,777 2,223 20,000 -
Total Expenditures $ 250,000 $ 231,670 $ 18,330 $ 250,000 $ -
Revenues Over (Under) Expenditures $ (250,000) $ (231,670) $ (18,330) $ (250,000) $ -
Other Financing Sources (Uses): Transfers-in: General Fund $ 250,000 $ 250,000 $ - $ 250,000 $ -
Net Change in Fund Balance $ - $ 18,330 $ (18,330) $ 102,399 $ (102,399)
Fund Balance: Beginning of year, July 1 18,330
End of year, June 30 $ -
73 103
Town of Swansboro, North Carolina Capital Project Funds Waterfront Plan Implementation Project Fund From Inception and For the Fiscal Year Ended June 30, 2019
Actual Variance Project Prior Current Total to Favorable Authorization Years Year Date (Unfavorable) Revenues: Restricted Intergovernmental Local grants $ 12,183 $ 25,183 $ - $ 25,183 $ 13,000 State grants 325,035 132,716 97,593 230,309 (94,726)
Total Revenues $ 337,218 $ 157,899 $ 97,593 $ 255,492 $ (81,726)
Expenditures: Surveying $ 4,200 $ 4,200 $ - $ 4,200 $ - Planning services 50,311 46,888 200 47,088 3,223 Engineering 30,012 24,057 2,000 26,057 3,955 Construction 409,295 175,259 71,887 247,146 162,149
Total Expenditures $ 493,818 $ 250,404 $ 74,087 $ 324,491 $ 169,327
Revenues Over (Under) Expenditures $ (156,600) $ (92,505) $ 23,506 $ (68,999) $ 87,601
Other Financing Sources (Uses): Transfers-in: General fund $ 141,000 $ 131,000 $ 10,000 $ 141,000 $ - Parks and Recreation Reserve Fund 46,600 - 46,600 46,600 - Capital reserve fund 10,000 10,000 - 10,000 - Transfers-out: Port of Swannsborough (41,000) (41,000) - (41,000) -
Total Other Financing Sources $ 156,600 $ 100,000 $ 56,600 $ 156,600 $ -
Net Change in Fund Balance $ - $ 7,495 $ 80,106 $ 87,601 $ -
Fund Balance: Beginning of year, July 1 7,495
End of year, June 30 $ 87,601
74 104
Town of Swansboro, North Carolina Capital Project Funds Information Technology Project Fund From Inception and For the Fiscal Year Ended June 30, 2019
Actual Variance Project Prior Current Total to Favorable Authorization Years Year Date (Unfavorable) Revenues: Restricted intergovernmental Time Warner contribution $ 55,300 $ 55,300 $ - $ 55,300 $ -
Total Revenues $ 55,300 $ 55,300 $ - $ 55,300 $ -
Expenditures: Construction $ 82,500 $ 101,486 $ - $ 101,486 $ (18,986) Supplies 22,800 1,273 - 1,273 21,527 Capital Outlay 15,000 14,302 - 14,302 698 Miscellaneous 5,000 2,761 - 2,761 2,239
Total Expenditures $ 125,300 $ 119,822 $ - $ 119,822 $ 5,478
Revenues Over (Under) Expenditures $ (70,000) $ (64,522) $ - $ (64,522) $ 5,478
Other Financing Sources (Uses): Transfers-in: General Fund $ 45,000 $ 45,000 $ - $ 45,000 $ - Town Hall Offices Project 25,000 25,000 - 25,000 -
Total Other Financing Sources $ 70,000 $ 70,000 $ - $ 70,000 $ - Revenues and Other Financing Sources Over (Under) Expenditures $ - $ 5,478 $ - $ (39,522) $ 5,478
Fund Balance: Beginning of year, July 1 5,478
End of year, June 30 $ 5,478
75 105
Town of Swansboro, North Carolina Capital Project Funds Municipal Park Improvement Project Fund From Inception and For the Fiscal Year Ended June 30, 2019
Actual Variance Project Prior Current Total to Favorable Authorization Years Year Date (Unfavorable) Revenues: Restricted intergovernmental: PARTF grant $ 500,000 $ 477,642 $ - $ 477,642 $ (22,358) NC Dept of Natural & Cultural Resources 196,324 195,187 - 195,187 (1,137) Donations 100,000 100,000 - 100,000 -
Total Revenues $ 796,324 $ 772,829 $ - $ 772,829 $ (23,495)
Expenditures: Design and engineering $ 30,000 $ 25,406 $ 2,891 $ 28,297 $ 1,703 Construction-recreation center 698,000 694,661 - 694,661 3,339 Construction-concession stand 75,000 69,402 - 69,402 5,598 Construction-SMP enhancement 245,404 192,298 28,659 220,957 24,447 Exercise trail 35,400 26,836 - 26,836 8,564 Skateboard area 60,000 58,192 - 58,192 1,808 Playground structure 81,500 81,434 - 81,434 66 Equipment 9,800 9,800 - 9,800 - Contingency 40,000 37,344 - 37,344 2,656
Total Expenditures $ 1,275,104 $ 1,195,373 $ 31,550 $ 1,226,923 $ 48,181
Other Financing Sources (Uses): Transfers-in: General Fund $ 110,000 $ 110,000 $ - $ 110,000 $ - Parks & Recreation Reserve Fund 368,780 319,700 49,080 368,780 -
Total Other Financing Sources $ 478,780 $ 429,700 $ 49,080 $ 478,780 $ -
Revenues Over (Under) Expenditures $ - $ 7,156 $ 17,530 $ 24,686 $ 24,686
Fund Balance: Beginning of year, July 1 7,156
End of year, June 30 $ 24,686
76 106
Town of Swansboro, North Carolina Stormwater Fund Schedule of Revenues And Expenditures Budget and Actual (Non - GAAP) For the Year Ended June 30, 2019
Variance Positive Budget Actual (Negative) Revenues Charges for services $ 104,291 $ 116,268 $ 11,977 Other operating revenues 5,874 5,874 - Total Operating Revenues $ 110,165 $ 122,142 $ 11,977 Expenditures Stormwater: Salaries and employee benefits $ 35,772 Supplies 1,372 Maintenance 2,644 Tipping fees 2,466 Other operating expenditures 11,200 Total $ 110,165 $ 53,454 $ 56,711
Capital outlay 26,500 26,385 -
Total Expenditures $ 136,665 $ 79,839 $ 56,826
Revenues Over (Under) Expenditures $ (26,500) $ 42,303 $ 68,803
Other Financing Sources (Uses) Transfers from (to) other funds $ 8,500 $ 8,500 $ - Fund balance appropriated 18,000 - (18,000) Total Other Financing Sources $ 26,500 $ 8,500 $ (18,000)
Revenues and Other Sources Over (Under) Expenditures and Other Uses $ - $ 50,803 $ 50,803
Reconciliation from budgetary basis (modified accrual) to full accrual: Revenues and Other Sources Over Expenditures and Other Uses $ 50,803 Reconciling items: Capital outlay 26,385 Increase in deferred outflows of resources-pensions 3,583 Increase in net pension liability (4,757) Decrease in deferred inflows of resources-pensions 388 Depreciation (6,629) Increase in OPEB liability (10,819) Total reconciling items $ 8,151 Change in Net Position $ 58,954
77 107
Town of Swansboro, North Carolina Solid Waste Fund Schedule of Revenues And Expenditures Budget and Actual (Non - GAAP) For the Year Ended June 30, 2019
Variance Positive Budget Actual (Negative) Revenues Charges for services $ 314,882 Other operating revenues - Total operating revenues $ 330,909 $ 314,882 $ (16,027) Non-operating revenues: Interest earnings - - - Total Revenues $ 330,909 $ 314,882 $ (16,027) Expenditures Sewer Salaries and employee benefits $ 24,329 Supplies 484 Tipping fees 72,814 Other operating expenditures 187,181 Total $ 330,909 $ 284,808 $ 46,101
Capital Outlay $ 90,000 $ - $ 90,000
Total Expenditures $ 420,909 $ 284,808 $ 136,101
Revenues Over (Under) Expenditures $ (90,000) $ 30,074 $ 120,074
Other Financing Sources (Uses) Transfers from (to) other funds $ 90,000 $ - $ (90,000) Fund balance increase - - - Total Other Financing Sources (Uses) $ 90,000 $ - $ (90,000)
Revenues and Other Sources Over (Under) Expenditures and Other Uses $ - $ 30,074 $ 30,074
Reconciliation from budgetary basis (modified accrual) to full accrual: Revenues and Other Sources Over Expenditures and Other Uses $ 30,074 Reconciling items: Depreciation (6,492) Capital outlay - Increase in deferred outflows or resources-pensions 3,583 Increase in net pension liability (4,757) Increase in deferred inflows of resources-pensions 388 Increase in OPEB liability (10,819) Total Reconciling Items $ (18,097) Change in Net Position $ 11,977
78 108
Other Schedules
This section contains additional information on property taxes.
• Schedule of Ad Valorem Taxes Receivable
• Analysis of Current Tax Levy
109
Town of Swansboro, North Carolina General Fund Schedule of Ad Valorem Taxes Receivable June 30, 2019
Uncollected Uncollected Balance Collections Balance Fiscal Year June 30, 2018 Additions And Credits June 30, 2019 2018-2019 $ - $ 1,709,371 $ 1,699,362 $ 10,009 2017-2018 21,315 - 18,827 2,488 2016-2017 9,839 - 6,882 2,957 2015-2016 6,270 - 4,369 1,901 2014-2015 2,148 - 173 1,975 2013-2014 3,794 - 237 3,557 2012-2013 5,522 - 228 5,294 2011-2012 2,060 - 97 1,963 2010-2011 2,113 - 67 2,046 2009-2010 2,800 - 26 2,774 2008-2009 2,614 - 2,614 - $ 58,475 1,709,371 1,732,882 $ 34,964
Less: allowance for uncollectible accounts 7,281
Ad valorem taxes receivable - net $ 27,683
Reconciliation with Revenues: Ad valorem taxes - General Fund $ 1,722,590 Reconciling items: Releases and adjustments 15,807 Taxes written off 2,614 Interest collected (8,129) Total reconciling items $ 10,292 Total collections and credits $ 1,732,882
79 110
Town of Swansboro, North Carolina Analysis of Current Tax Levy Town-wide Levy For the Fiscal Year Ended June 30, 2019
Total Levy Property excluding Town-wide Registered Registered Property Amount Motor Motor Valuation Rate of Levy Vehicles Vehicles
Original levy: Property taxed at current year's rate $ 453,992,571 0.35 $ 1,588,974 $ 1,588,974 $ - Registered motor vehicles taxed at current rate 34,399,143 0.35 120,397 - 120,397 Total property valuation $ 488,391,714
Net levy $ 1,709,371 $ 1,588,974 $ 120,397
Unpaid (by taxpayer) at June 30, 2019 (10,009) (10,009) -
Current year's taxes collected $ 1,699,362 $ 1,578,965 $ 120,397
Current levy collection percentage 99.41% 99.37% 100.00%
80 111
GTR
Member Member North Carolina Association of American Institute of Certified Public Accountants Certified Public Accountants
Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards
Independent Auditor’s Report
To the Town Council Town of Swansboro, North Carolina
I have audited in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the accompanying financial statements of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the Town of Swansboro, North Carolina, as of and for the year ended June 30, 2019, and the related notes to the financial statement, which collectively comprises the Town of Swansboro, North Carolina’s basic financial statements, and have issued my report thereon dated November 27, 2019.
Internal Control over Financial Reporting
In planning and performing my audit, I considered Town of Swansboro, North Carolina’s internal control over financial reporting to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing my opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of Town of Swansboro, North Carolina’s internal control over financial reporting. Accordingly, I do not express an opinion on the effectiveness of the Town’s internal control over financial reporting.
A deficiency in internal control exists when design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the Town’s financial statements will not be prevented, or detected, and corrected on a timely basis. A significant deficiency is a deficiency or combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
81
410 Dowd Street • Post Office Box 369 • Tarboro, NC 112 27886 • Phone: (252) 641-1999 • Fax: (252) 641-1946
My consideration of the internal control over financial reporting was for limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies. Given these limitations, during my audit I did not identify any deficiencies in internal control that I consider to be material weaknesses. However, material weaknesses may exist that have not been identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Town of Swansboro, North Carolina’s financial statements are free of material misstatement, I performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of my audit and, accordingly, I do not express such an opinion. The results of my tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of my testing of internal control and compliance and the result of that testing, and not to provide an opinion on the effectiveness of the Town's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Town's internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
Tarboro, North Carolina November 27, 2019
82 113 Town of Swansboro Audit Report Presentation
GTR
114 Independent Auditor’s Report
Opinion
In my opinion, based on my audit, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the Town of Swansboro, North Carolina as of June 30, 2018, and the respective changes in financial position and cash flows, where appropriate, thereof and the respective budgetary comparison for the General Fund for the year then ended in accordance with accounting principles generally accepted in the United States of America.
“Unmodified Opinion”
115 Government-Wide Financial Analysis
Governmental Business-type Activities Activities Total 2019 2018 2019 2018 2019 2018 Current and other assets $ 3,700,382 $ 3,123,559 $ 89,650 $ (5,204) $ 3,790,032 $ 3,118,355 Capital and other noncurrent assets 7,147,972 7,272,308 100,147 86,884 7,248,119 7,359,192 Total assets $ 10,848,354 $10,395,867 $ 189,797 $ 81,680 $ 11,038,151 $ 10,477,547 Deferred outflows of resources $ 407,606 $ 272,320 $ 20,434 $ 13,268 $ 428,040 $ 285,588 Long-term liabilities $ 2,688,403 $ 2,729,160 $ 60,636 $ 29,484 $ 2,749,039 $ 2,758,644 Other liabilities 891,670 799,185 36,260 22,284 927,930 821,469 Total liabilities $ 3,580,073 $ 3,528,345 $ 96,896 $ 51,768 $ 3,676,969 $ 3,580,113 Deferred inflows of resources $ 166,637 $ 139,239 $ 964 $ 1,740 $ 167,601 $ 140,979 Net position: Net investment in capital assets $ 5,542,096 $ 5,448,901 $ 100,147 $ 86,884 $ 5,642,243 $ 5,535,785 Restricted 735,701 576,215 - - 735,701 576,215 Unrestricted 1,231,453 975,487 12,224 (45,444) 1,243,677 930,043 Total net position $ 7,509,250 $ 7,000,603 $ 112,371 $ 41,440 $ 7,621,621 $ 7,042,043
116 Changes in Net Position
Governmental Business-type Activities Activities Total 2019 2018 2019 2018 2019 2018 Revenues: Program revenues: Charges for services $ 456,595 $ 317,828 $ 431,150 $ 395,891 $ 887,745 $ 713,719 Operating grants and contributions 942,063 305,050 - - 942,063 305,050 Capital grants and contributions 99,716 263,936 - - 99,716 263,936 General revenues: Property taxes 1,696,102 1,566,980 - - 1,696,102 1,566,980 Other taxes 98,783 68,371 - - 98,783 68,371 Grants and contributions not restricted to specific programs 1,212,651 1,091,843 - - 1,212,651 1,091,843 Other 1,160,687 160,065 5,874 - 1,166,561 160,065 Total revenues $ 5,666,597 $ 3,774,073 $ 437,024 $ 395,891 $ 6,103,621 $ 4,169,964
Expenses: General government $ 2,554,830 $ 1,264,390 $ - $ - $ 2,554,830 $ 1,264,390 Public safety 1,622,146 1,485,086 - - 1,622,146 1,485,086 Transportation 308,068 278,326 - - 308,068 278,326 Economic development 310,249 140,494 - - 310,249 140,494 Cultural and recreation 321,218 357,969 - - 321,218 357,969 Interest on long-term debt 42,939 43,548 - - 42,939 43,548 Stormwater - - 71,688 78,517 71,688 78,517 Solid Waste - - 302,905 307,920 302,905 307,920 Total expenses $ 5,159,450 $ 3,569,813 $ 374,593 $ 386,437 $ 5,534,043 $ 3,956,250
Increase in net position before transfers and special items $ 507,147 $ 204,260 $ 62,431 $ 9,454 $ 569,578 $ 213,714 Transfers and special items 1,500 (20,000) 8,500 20,000 10,000 -
Increase in net position $ 508,647 $ 184,260 $ 70,931 $ 29,454 $ 579,578 $ 213,714 Net position, July 1 7,000,603 7,168,941 41,440 11,986 7,042,043 7,180,927 Net position-beginning, restated - (352,598) - - - (352,598) Net position, June 30 $ 7,509,250 $ 7,000,603 $ 112,371 $ 41,440 $ 7,621,621 $ 7,042,043
117 Balance Sheet Governmental Funds
Town of Swansboro, North Carolina Balance Sheet Governmental Funds June 30, 2019
2019 2018 General General Assets Cash and cash equivalents $ 2,879,912 $ 2,232,858 Restricted cash 43,724 54,510 Receivables, net: Taxes 27,683 51,194 Accounts 384,702 188,798 Grants - - Due from other funds - 62,965 Total Assets $ 3,336,021 $ 2,590,325 Liabilities Due to other funds $ - $ - Accounts payable and accrued liabilities 612,063 329,817 Other liabilities - 27 Total Liabilities $ 612,063 $ 329,844 Deferred Inflows of Resources Property taxes receivable $ 27,683 $ 51,194 Prepaid taxes - - Total Deferred Inflows of Resources $ 27,683 $ 51,194 Fund Balances Restricted: Stabilization by State Statute $ 384,702 $ 251,763 Streets 31,901 43,096 Capital improvements - - Festivals and events 11,274 - Assigned: Subsequent year's expenditures 123,471 97,730 Unassigned 2,144,927 1,816,698 Total Fund Balances $ 2,696,275 $ 2,209,287 Total Liabilities, Deferred Inflows of Resources, And Fund Balances $ 3,336,021 $ 2,539,131
118 Unassigned Fund Balance as a Percentage of Total General Fund Expenditures
2019 2018 Unassigned fund balance $ 2,144,927 $ 1,816,698
Total General Fund expenditures 5,050,881 3,609,890
Unassigned fund balance as a Percentage of Total General Fund expenditures 42% 50%
GFOA recommended minimum 16.67% 16.67%
LGC recommended amount 32% 32%
119 Changes in Long-term Liabilities
Current Beginning Ending Portion of Governmental Activities: Balance Increases Decreases Balance Balance Installment purchase $ 1,823,407 $ - $ 217,531 $ 1,605,876 $ 221,000 Total pension liability (LEO) 70,646 - 6,938 63,708 - Net pension liability (LGERS) 310,295 180,792 - 491,087 - Total OPEB liability 649,893 11,137 - 661,030 - Compensated absences 108,766 36,812 42,399 103,179 15,477 Total $ 2,963,007 $ 228,741 $ 266,868 $ 2,924,880 $ 236,477
Current Beginning Ending Portion of Business-type Activities: Balance Increases Decreases Balance Balance Net pension liability (LGERS) $ 16,332 $ 9,514 $ - $ 25,846 $ - Total OPEB liability 13,152 21,638 - 34,790 - Compensated absences - 1,826 1,826 - - Total $ 29,484 $ 32,978 $ 1,826 $ 60,636 $ -
120 Combining Statement of Revenue, Expenditures, and Changes in Fund Balance - Nonmajor Governmental Funds
Town of Swansboro, North Carolina Nonmajor Governmental Funds Combining Statement of Revenue, Expenditures, and Charges in Fund Balances For the Year Ended June 30, 2019
Capital Projects Park & Public Sleeping Waterfront Municipal Capital Recreation Building Quarters Plan Park Information Total Reserve Reserve Safety Project Implementation Improvements Technology Combining Revenues Total Revenues $ - $ 2,123 $ - $ - $ 97,593 $ - $ - $ 99,716
Expenditures Total Expenditures $ - $ - $ 6,281 $ 18,330 $ 74,087 $ 31,550 $ - $ 130,248
Revenues Over Expenditures $ - $ 2,123 $ (6,281) $ (18,330) $ 23,506 $ (31,550) $ - $ (30,532)
Other Financing Sources (Uses) Transfers in: General Fund $ 54,500 $ - $ - $ - $ 10,000 $ - $ - $ 64,500 Capital Reserve Fund - - - - 46,600 49,080 - 95,680 Transfers out: General Fund - (7,500) - - - - - (7,500) Other funds - (95,680) - - - - - (95,680) Total Other Financing Sources (Uses) $ 54,500 $ (103,180) $ - $ - $ 56,600 $ 49,080 $ - $ 57,000
Net Change in Fund Balance $ 54,500 $ (101,057) $ (6,281) $ (18,330) $ 80,106 $ 17,530 $ - $ 26,468
Fund Balance, beginning 119,398 117,218 6,281 18,330 7,495 7,156 5,478 281,356 Fund Balance, ending $ 173,898 $ 16,161 $ - $ - $ 87,601 $ 24,686 $ 5,478 $ 307,824
121 Analysis of Current Tax Levy
Town of Swansboro, North Carolina Analysis of Current Tax Levy Town-wide Levy For the Fiscal Year Ended June 30, 2019
Total Levy Property excluding Town-wide Registered Registered Property Amount Motor Motor Valuation Rate of Levy Vehicles Vehicles
Original levy: Property taxed at current year's rate $ 453,992,571 0.35 $ 1,588,974 $ 1,588,974 $ - Registered motor vehicles taxed at current rate 34,399,143 0.35 120,397 - 120,397 Total property valuation $ 488,391,714
Net levy $ 1,709,371 $ 1,588,974 $ 120,397
Unpaid (by taxpayer) at June 30, 2019 (10,009) (10,009) -
Current year's taxes collected $ 1,699,362 $ 1,578,965 $ 120,397
Current levy collection percentage 99.41% 99.37% 100.00%
122 Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with “Government Auditing Standards”
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Town of Swansboro, North Carolina’s financial statements are free of material misstatement, I performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of my audit and, accordingly, I do not express such an opinion. The results of my tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.
123 Onslow Civic Affairs Committee
Slide #1
124 Jacksonville-Onslow Complete Count Committee
125 Days Until Census Day
126 Slide #4
127 What Onslow Lost from 2010
• At least 22,000 people not counted • Jacksonville dropped in rank from 10th to 14th because of the loss of population • NC Lost chance for an additional Congressional Seat
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128 Swansboro
2010 Census (7/1) 2,268 2018 NC 3,045 (14%) 2018 ACS 3,145 Median Age 37.9
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129 Census: Count every person living in the US
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130 Census: Required by the Constitution
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131 Funds are distributed by population
$1,623 +$205
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132 2010 Impact
$1,623 Per Person $357 Each Year Federal Funds $45.1 X Decade Million Million Federal State $205 Per Person Each Year State Funds Lost X Decade Lost $402 Million Lost for the Decade Slide #10
133 Military Count Issue
2010 Effect Losses • Chance for another Congressional Seat • Rankings, Attention
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134 Military Count Issue
New Rule Business Traveler • Where do you intend to return to? • Counts Deployed at their base
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135 It is used for Determining Representation & Redistricting
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136 • Residents use the data • Tells the story of our community
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137 • Businesses use it to determine where to locate • Customer profiles
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138 Local Governments use the info for public safety & preparedness
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139 Real Estate & Developers use the data
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140 Responding will be easier than ever •Do it online, •Or, Phone it in •Or, ask for Paper
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141 • Information Secure • Confidential for 72 Years • Cannot Share with others
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142 It’s Our Civic Duty
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143 $402 Million In Federal & State Revenues Over the Decade
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144 Potential 2020 Effects
• NC shows 10% growth; Boosts ranking •NC wins 14th Congressional Seat • Onslow County tops 200,000 population • Redistricting Congress, State House & State Senate
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145 Days Until Census Letters
146 March 2020 1234567 Timing 8 9 10 11 12 13 14 15 16 17 18 19 20 21
22 23 24 25 26 27 28 Awareness and Education Phase April 2020 Through March 12 29 30 31 1234 May 2020 Motivation and Participation Phase 56789101112 March 13 to May 20 12 133456789 14 15 16 17 18 Reminder and Nonresponse Phase May 13 to June 28 19 2010 21 11 22 12 2313 24 14 25 15 16 26 2717 28 18 29 19 30 20 21 22 23
24 25 26 27 28 29 30
31 Slide #24
147 Trusted, Local Faces Local voices representative of the community
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148 Slide #26
149 Slide #27
150 www.2020Census.gov
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151 Board of Commissioners Meeting Agenda Item Submittal
______Item To Be Considered: The Hammocks at the Port Phase II Preliminary Plat
Board Meeting Date: February 24, 2020
Prepared By: Jennifer Ansell, Planner
Overview: Preliminary Plat approval was granted for the Hammocks at the Port of Swansboro Phase II in August of 2017 for 83 townhome lots on 10.27 acres in the R-6 zoning district.
Per Section 152.337 of the Town of Swansboro Unified Development Ordinance, a final plat must be submitted within one year of the date upon which the Board of Commissioners approved the preliminary plat. Staff has the ability to grant an extension of one year before a final plat is required to be recorded. There is no evidence that an extension was granted, but that would have extended the plat until August of 2019. Preliminary plats whose approval has elapsed are required to be resubmitted.
In an email from Dewey Edwards, council for the property owners, JEJ Investors, Inc., he explains that the completion of the infrastructure was delayed due to the workload of the site contractor. He explains that they have paid in excess of $1,000,000.00 for the infrastructure that is now substantially complete, and further that the delay was due to market conditions.
When the preliminary plat was originally approved, Townhouses were a permitted use in the R-6 zoning district. There was also a requirement for approval under the Planned Building Group process, which was removed from the ordinance in 2016. As a part of the re-approval of the preliminary plat in 2017, the Planned Building Group was also re-approved. Staff has consulted with the Town Attorney and has determined that only preliminary plat approval is required in order to allow the recordation of a final plat.
JEJ Investors, Inc. is now requesting re-approval of the preliminary plat. There have been no changes to the plat since the 2017 approval.
Planning Board Recommendation: The Planning Board reviewed the preliminary plat at their February 3, 2020 regular meeting and voted unanimously to recommend approval of the plat.
As an aside, they requested that Staff prepare an agenda item for their next meeting to further discuss preliminary plat duration.
Reviewed By: Town Manager 2/18/2020 Finance Director Town Clerk 2/18/2020 Town Attorney
Date Action Approved by Board: Action if different from Recommended:
152
Action Needed:
1) Motion to Approve the Preliminary Plat for the Hammocks at the Port of Swansboro Phase II as submitted; or
2) Motion to Deny the Preliminary Plat for the Hammocks at the Port of Swansboro Phase II. The reasons for disapproval shall be stated in writing and reference shall be made to the specific section(s) of the ordinance to which the plat does not comply. The applicant may make the recommended revisions and resubmit a revised preliminary plat or may appeal the disapproval of the preliminary plat to the Onslow County Superior Court.; or
3) Motion to Approve the Preliminary Plat for the Hammocks at the Port of Swansboro Phase II with Conditions. If the Board conditionally approves the preliminary plat, the conditions and reasons thereof shall be stated in writing.
Attachments Approved Preliminary Plat (2017) Edwards Email Preliminary Plat Package
153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176 177 1/16/2020 The Hammocks Phase II - Protected Trust
Dewey Edwards
This message was protected by using Protected Trust.
From: Dewey Edwards
I have been requested by John Pierce to see if the Town is willing to extend the vested rights created by approval of the preliminary plat for the Hammocks, Phase II project.
I understand that the two (2) year period for vested rights under Section 152-153(A) has expired, however, under Section 152-153(B) it states that “Notwithstanding the provisions of division (A) of this section, the town may provide that rights shall be vested for a period exceeding two years but not exceeding five years where warranted in light of all relevant circumstances, including, but not limited to, the size and phasing of the development , the level of investment, the need for the development , economic cycles, and market conditions. These determinations shall be in the sound discretion of the town.”
My client was delayed in completing the infrastructure for this subdivision due to the work load of his site contractor. They have paid in excess of $1,000,000.00 for the infrastructure that is now substantially complete. I do not believe there have been any changes to the Unified Development Ordinance in the last 2 ½ years that would affect approval of the development, so it would be a waste of time and money to require them to re-apply for the preliminary plat approval. The delay was due to market conditions and the level of investment of my client is substantial.
I have copied the Town Manager and Town Attorney so you can discuss this request, and hopefully, allow my client to submit the final plat for approval.
Thanks,
J. Dewey Edwards, Jr. Gaylor Edwards & Vatcher, P.A. PO Box 1057 219 New Bridge Street Jacksonville, NC 28540
Telephone No.: (910) 455-9494 Fax No.: (910) 455-0117
https://app.protectedtrust.com/Print/uAzup9EQw5lX 178 1/1 Board of Commissioners Meeting Agenda Item Submittal
______Item To Be Considered: Budget Ordinance Amendment #2020-5 Board Meeting Date: February 24, 2020 Prepared By: Sonia Johnson, Finance Director Overview:
1. On March 15, 2017, NC Department of Natural and Cultural Resources awarded the Town $196,324 through the Connect NC Bond Grant Program for feature and accessibility enhancements at Municipal Park. Total project budget is $245,404. Of that grant, $17,985 of that grant was set aside to fund asphalt for a 50-space parking lot for park patrons. Engineer estimates provide a project cost of $99,990. Public Works staff can perform some of the installation; reducing the cost to an estimated $67,000. With the grant subsidizing the project cost of $17,985, we are asking $50,000 be appropriated from the General Fund Balance to complete the Parking Lot project. Source: Appropriated Fund Balance
2. In April of 2014, The Town of Swansboro received a grant of $32,250 from NC Department of Environment and Natural Resources for the Public Beach and Coastal Waterfront Access Program at Bicentennial Park. The grant was funded to construct a canoe/kayak launch, gangway, concrete walkway to parking, and a 45-foot boardwalk extension. In September 2018 Hurricane Florence severely damaged Bicentennial Park. During the hurricane the kayak launch was lost/damaged, and the gangway was damaged.
Contract No. 6028 between NC Department of Environment and Natural Resources and the Town of Swansboro for the North Carolina Public Beach and Coastal Waterfront Access Program-Swansboro Bicentennial Park Access, Section D: Other Requirements, Guidance and Conditions; Item 3h states that the community is required to agree to operate and maintain solely at its own expense, insofar as it is legally empowered to do so, for as long as they exist, the facilities and areas covered by the grant award contract.
The Public Beach and Coastal Waterfront Access Program is funded from the NC Parks and Recreation Trust Fund (PARTF). PARTF requires that assisted development facilities are maintained and managed for public recreation use for a minimum period of 25 years after the completion date set forth in the grant agreement. (Section 15A NCAC 12K .0109 Site Control and Dedication, item C). Requesting $20,826.50 be appropriated from General Fund Balance for repairs. Source: Appropriated Fund Balance
Background Attachment(s): • EZ Dock Plus, LLC Quote • Budget Ordinance Amendment #2020-5
Recommended Action: Motion to approve Budget Ordinance Amendment #2020-5
Reviewed By: Town Manager 2/18/2020 Finance Director 2/18/2020 Town Clerk 2/18/2020 Town Attorney
Date Action Approved by Board: Action if different from Recommended:
179
AN ORDINANCE AMENDING THE ANNUAL BUDGET FOR FY 19/20
BUDGET ORDINANCE AMENDMENT #2020-5
BE IT ORDAINED by the Board of Commissioners of the Town of Swansboro that the following amendment be made to the annual budget ordinance for fiscal year ending June 30, 2020:
Section 1. To amend the Parks & Recreation Reserve Fund budget, the following changes are to be made:
Appropriations Increase Non-Departmental-Transfer out to Municipal Park Improvement Project $50,000.00 Parks & Recreation $20,826.50
Revenues Appropriated Fund Balance $70,826.50
Section 2. Copies of this budget amendment shall be furnished to the Town Clerk, the Budget Officer, and the Finance Director, to carry out their duties.
Adopted by the Board of Commissioners in regular session, February 24, 2020.
______John Davis, Mayor Attest: ______Paula Webb, Assistant Manager/Town Clerk
180 181 182 Board of Commissioners Meeting Agenda Item Submittal
______Item To Be Considered: Ordinance Amendment #6 to the Municipal Park Improvement Project
Board Meeting Date: February 24, 2020
Prepared By: Sonia Johnson, Finance Director
Overview:
In connection with Budget Ordinance Amendment #2020-5, the project budget needs to be amended to reflect the transfer of $50,000 from the General Fund and the corresponding increase to project cost in the amount of $50,000.
Source: Transfer from General Fund
Background Attachment(s): • Ordinance Amendment #6 to the Municipal Park Improvement Project
Recommended Action: • Motion to approve Ordinance Amendment #6 to the Municipal Park Improvement Project
Reviewed By: Town Manager 2/18/2020 Finance Director 2/18/2020 Town Clerk 2/18/2020 Town Attorney
Date Action Approved by Board: Action if different from Recommended:
183
ORDINANCE AMENDMENT #6 TO THE CAPITAL PROJECT BUDGET FOR THE MUNICIPAL IMPROVEMENTS PROJECT
BE IT ORDAINED by the Board of Commissioners of the Town of Swansboro that the capital project budget for the Municipal Improvements Project is amended as follows:
Section 1. The following revenues and appropriations are amended for additional construction costs.
BUDGET
REVENUES CURRENT BUDGET CHANGE REVISED Donations-SADF 100,000 100,000 Grant-PARTF 500,000 500,000 Transfers from General 110,000 50,000 160,000 Fund Transfers from Park & 368,780 368,780 Recreation Capital Reserve NC Department of Natural 196,324 196,324 & cultural Resources Total $1,275,104 $50,000 $1,325,104
APPROPRIATIONS CURRENT BUDGET CHANGE REVISED Project Costs $1,275,104 $50,000 $1,325,104
Section 2. This ordinance shall be effective upon its adoption.
Adopted by the Swansboro Board of Commissioners in regular session, February 24, 2020
______John Davis, Mayor
Attest: ______Paula Webb, Assistant Manager/Town Clerk
184 TOWN OF SWANSBORO FINANCIAL REPORT (AS OF JANUARY 31, 2020)
REVENUES
EXPENDITURES
LOAN PAYMENTS
INVESTMENTS
185 TOWN OF SWANSBORO REVENUES/EXPENDITURES TWO YEAR COMPARISON (AS OF JANUARY 31, 2020)
GENERAL FUND
ENCUMBRANCES INCLUDED Total Excess of Revenues186 Over Expenditures $410,868 TOWN OF SWANSBORO REVENUES/EXPENDITURES TWO YEAR COMPARISON (AS OF JANUARY 31, 2020)
(ACTUAL)
GENERAL FUND
(ENCUMBRANCES NOT INCLUDED) Total Excess of Revenues Over Expenditures $596,235 187 (PAID YEAR TO DATE) (PURCHASE ORDERS) SPENT % DEPT. BUDGET ACTUAL ENCUMBERED BALANCE JANUARY 31, 2020 GOVERNING BODY 37,616 22,229 3,803 69.2% ADMIN SERVICES 408,791 209,715 19,890 56.2% FINANCE 240,292 137,927 1,162 57.9% LEGAL 31,000 19,498 - 62.9% PUBLIC BUILDINGS 483,473 242,070 98,750 70.5% FIRE 724,853 351,088 8,222 49.6% PERMITTING 218,732 80,258 164 36.8% POLICE 1,014,518 579,048 7,234 57.8% PUBLIC WORKS-STREETS 267,617 89,968 - 33.6% POWELL BILL-STREETS 96,952 81,038 12,828 96.8% PARKS & RECREATION 263,996 132,005 13,931 55.3% CHURCH STREET DOCK 6,348 2,190 - 34.5% EMERGENCY MANAGEMENT 356,206 284,992 7,943 82.2% FESTIVALS & EVENTS 87,825 82,281 1,150 95.0% NON DEPARTMENTAL 458,102 220,977 10,396 50.5% TOTAL 4,696,321 2,535,283 185,367 57.9% ** 188 TOWN OF SWANSBORO REVENUES/EXPENDITURES TWO YEAR COMPARISON (AS OF JANUARY 31, 2020)
STORMWATER ENTERPRISE FUND
ENCUMBRANCES INCLUDED Total Excess of Revenues189 Over Expenditures $25,444 TOWN OF SWANSBORO REVENUES/EXPENDITURES TWO YEAR COMPARISON (AS OF JANUARY 31, 2020)
SOLID WASTE ENTERPRISE FUND
ENCUMBRANCES INCLUDED Total Excess of Revenues190 Over Expenditures $16,858 TOWN OF SWANSBORO LOAN REPORT (AS OF JANUARY 31, 2020)
Item Principal Interest End Date Annual Debt DEBTBalance Rate Service Town Hall/Tanker $669,310 2.69 03/21/2028 $84,724
Public Safety FacilitySERVICE$200,000 2.58 12/22/2024 $47,224
Fire Truck $306,554 2.08 11/01/2026 $47,512
Equipment/Vehicles $100,731 1.87 11/01/2021 $51,783
Sleeping Quarters $175,000 2.43 12/14/2026 $30,467
Total Debt $1,451,595 $261,710
191 TOWN OF SWANSBORO CASH & INVESTMENTS REPORT (AS OF JANUARY 31, 2020)
CASH & INVESTMENTS
BALANCE INTEREST RATE BANK
First Citizens Bank $617,259 .05%
NC CMT-General $656,974 1.46%
NC CMT-Term $2,465,980 1.68%
192 Any Questions ?
193
BUDGET SCHEDULE – FISCAL YEAR 2020-21*
January 27, 2020 Adoption of Budget Calendar
January 17, 2020 Budget instructions distributed to Department Heads
February 10, 2020 FY 20-21 draft CIP, capital outlay requests and major program request changes (i.e. new personnel, large contracts, etc.) are
due. Any increase that will cause the budget request to be greater than 5-10% of current year’s initial budget must be submitted at this point.
February 17, 2020 Operating and year–end projection worksheets due to Finance
February 28, 2020 Finance presents first draft of budget to Town Manager
March 2-6, 2020 Town Manager, Finance Director and Department Heads review
departmental requests. Departments-try to leave schedules open.
March 9-12, 2020 Budget Revisions & Team Lock Down to balance budget
March 13, 2020 Budget Distribution, available for public inspection
March 16-17, 2020 Budget Workshop: Budget Overview
April 14-30, 2020 Additional Budget Workshops, if necessary
May 11, 2020 Set Pubic Hearing for June 8, 2020
June 8, 2020 Board holds Public Hearing
June 22, 2020 Board adopts Fiscal-Year 2020-2021 budget
July 1, 2020 FY 20-21 Begins *All dates are subject to change
194 1 Department Reports for December 2019
Administrative Services • Phone Records Report for December: 1,614 calls Town Hall – 471 Parks and Recreation – 163 Police Department – 398 Fire Department – 74 Outgoing totals – 508 • Building permits sold for December: 36 residential/commercial combined; $6,359.33 total fees collected (includes 13 re-inspections) • 121 building inspections processed/8 Fire Inspections processed • 68 various receipts processed • 602 ONWASA payments processed, 9 New Service Setups, 16 Other transactions • 14 Work Orders generated for Public Works • 6 Notarization’s performed • Developed monthly and special meeting notices/hearings, agenda items, packets and minutes/distributed for all meetings of Board of Commissioners, Planning Board, Historic Preservation Commission, and Tourism Development Authority. A staff representative attended each meeting and prepared meeting follow-up • HR related items estimated at 12 hours (includes new hire processing, interviews, timesheets, policy review, employment verifications, benefit submittals, preparation of job descriptions/submittals/postings, etc.) • Town website updates continue (including Homepage articles/minutes/agendas/calendar, special events, projects, plans, etc.). Website Home Page visits: 7,841. Total Page Views 18,715. Top 5 pages viewed in June – Employment, Special Events, Permitting, Police Dept, and Web Docs • Updated NCLM Database with new contact info to include incoming Board members • Attended Military Appreciate Dinner for Veterans and Chamber Christmas Dinner • Webinar: Making Good Data-Driven Decisions for Police Departments with Manager 12/11 • Preparations for Organizational Meeting • Prepared write-up for Sam Bland Award • Address verifications for Hammocks at Port of Swansboro Phase II • ADA Plan Compliance forms 1-3 completed • Distributed employee service pins for 2019 • Finalized records request for purchase orders and for permit records • Assisted with preparation of Employee Breakfast • Finalized October and November Department Reports Finance • Sales & Use Tax received in December 2019: $77,229 • Accounts Payable Summary for December 2019: 125 Invoices-Totaling $161,434 16 Purchase Orders Issued
195 2 Department Reports for December 2019
• PEV ChargePoint Station – Accumulated (kWh) for December 2019 – (66.7) • Stormwater Fees Collected – December 2019 – $1,146 • Updated Stormwater spreadsheet • Prepared 3rd Quarter Stormwater billing • Processed Payroll-12/6 & 12/20; updated employee accrual balances – (spreadsheet & Asyst) • November 2019 Bank Reconciliation – Town accounts • November 2019 Bank Reconciliation – Swansboro TDA • Processed TDA checks • Attended Recovery Scoping Meeting for Hurricane Dorian & gathered receipts related to the storm • Met with NC Coastal Federation to discuss the Community Conservation Assistance Program (CCAP) • Hurricane Florence: updated management cost in the FEMA Grants Portal • Local Government Commission (LGC) approved the Audit Report for FY 18/19 • Updating the Management Discussion & Analysis and statistical section of the CAFR
Fire Department Fire Calls • 41 Total fire calls o 12 Calls in Town including - 2 Citizen Assist, 2 Vehicle Fire, 1 Lift Assist, 7 MVC o 5 Calls in White Oak District including - 1 Structure Fire, 1 MVC, 2 Service Call, 1 Vehicle Fire o 10 Mutual Aid including - 2 Watercraft in Distress, 7 Structure Fires, 1 Outside Fire o 14 EMS Calls including - 4 Difficulty Breathing, 2 Overdose, 3 EMS Assist, 5 Chest Pain • 153 Training Hours Paid Staff • 73 Training Hours Volunteers • 305 Hours Volunteer Duty Days = 12 (24 hr. Shifts) 1 (17 hr. Shift) Cost Saved 305 hrs. x $14.00 = $4,270
Paid Staff • Currently all paid staff positions are full
Vehicle Repairs • All fire pumps were tested, and all passed
Department Activities • Chief Tessing completed eight level one fire inspections • Held annual Christmas party for members and their family • Completed end of the year hose testing • Took a tour of the new Team Chevrolet spray booth
196 3 Department Reports for December 2019
Parks and Recreation Director’s Report Festivals – General • Continue to work with Town Manager and Town Attorney to create a standard contract for all performers and entertainers • Secured band for July 4 Fireworks Celebration
Mullet Festival • Applications for 2020 are available - secured approximately 60 vendors for 2020 to date • Revising 2020 Sponsorship Packet and will go out by February 1, 2020
Flotilla • Updated tracking sheet with all festival staffing hours
Pirate Fest • Parks and Recreation will continue to partner with Onslow County Parks and Recreation to host Pirate Fest in Downtown Swansboro on May 9, 10 am – 4 pm, this is a free event open to the public • Meet with Onslow County Parks and Recreation for review of event budget and entertainers - event expenses are split between the two agencies Ward Shore • Continue to oversee project, compile invoices and setup spreadsheet to submit for reimbursement • Met with Finance Director to review and begin the final closeout process
Municipal Park Enhancement • Continue to work with Town Manager and Public Works Director on project details and discuss the work that the Town can do itself
Miscellaneous • Received sample RFP examples for Parks and Recreation Comprehensive Master Plan • Continue to work with Cunningham Recreation on repairs of the pour and play surface at Municipal Park • Continue to work with Duke Energy and Town Manager on a lighting project in the parks - attended pre-construction meeting with Duke Energy, Town Manager, and Public Works Director • Facilitated the Holiday Wreath Class with 20 participants • Facilitated monthly Parks and Recreation Advisory Board meeting • Attended Board of Commissioner meeting • Continue to attend monthly Senior Games committee meetings. Serving as the Co- Coordinator for the 2020 Senior Games. Senior Games is conducted by committee members
197 4 Department Reports for December 2019
from Onslow County Parks and Recreation, Onslow County Senior Services, and Jacksonville Recreation and Parks • Facebook management – 10,721 followers • Weight Watchers meets at the Recreation Center on Tuesday evenings • Onslow Senior Services meeting Monday – Friday 9 am to 1 pm at the Recreation Center • The Recreation Center had 858 visitors for the month of December • There are 277 dogs registered as of December 30, 2019
December Revenue • Slip Fee - Town Dock $110.50 • Rental Fees-Recreation Center Rooms $1,020.00 • Rec Program Fees $1,151.00 • Gym Memberships $25.00 • Festival Vendor Fees $1,570.00
Program Supervisor Report • Prepared monthly programs list for distribution to news, magazines, radio for January • Daily deposits • Disbursement forms for recent room rental deposit refunds • Decorated Rec Center for Christmas (Tree, Wreaths, lights) • Edited and sent out new staff schedule for end of December/January due to canceling of Holiday Camp because of low registration • Weekly community service hours added and submitted
Santa Fest/Ugly Sweater Fun Run • Set up for event early Saturday morning (games, crafts, concessions, photo booth) • Decorated Recreation Center Friday for event • Distributed candy, toys, prizes to participants • Sent out thank you email to all volunteers • Put together prize bags for age group winners with trophies, snacks, and donated prizes • Recognized winners at Santa Fest and handed out prize bags to each • Hand delivered thank you letters to prize donators
Theatre Trips • Sent bulk emails to previous participants to promote upcoming theatre trips • Paid for tickets to La Cage Aux Folles
Fellowship Class • Canceled due to instructor being sick • Rescheduled planned holiday party and moved to January program date
198 5 Department Reports for December 2019
Shag Dance Lessons • Met with instructor Anna Bradshaw - discussed fees and contract details • Instructor contract signed by town manager and returned to contractor • 3 sessions for class established (day, time, room, maximum/minimum, fees) • Set up class on RecDesk for registration • Advertised on with flyers on Facebook, JD News, Ribeye’s restaurant, and at Rec Center
Pound Class • Advertised on social media, newspaper, posted at gym in Rec Center • Requested liability insurance policy from instructor
Hockey Trip • Established POC with Brian Kapusta from Carolina Hurricanes for ticket ordering and information • Paid deposit for tickets to hold seats • Requested and had extension approved for final payment of tickets • Advertised on Facebook, JD News, Downtown, Chamber
Sea Glass Resin Art Class • Contacted owner Carla Paschal of The Wild Child Art Studio in Hampstead • Discussed class structure, timeline, dates, times, and fees • Booked two dates for classes to be held at Rec Center • Instructor contract signed by town manager and returned to contractor • Listed programs information on RecDesk for registration • Advertised on Facebook • Requested liability insurance policy from instructor • Printed and posted flyers for classes in Rec Center
Winter Day Camp • Established fees for Resident/Non-Resident and daily camp registration • Set dates and time, listed on RecDesk • Advertised on Facebook, JD News, and posted in Rec Center • Started planning crafts, snacks, daily timeline • Bulk emailed past summer camp participants information about the camp
Cook with your Kid! • Set dates, fees, class details with instructor Jamie Botinovch • Entered program into RecDesk for registration • Promoted on social media • Printed and posted flyers at Rec Center
199 6 Department Reports for December 2019
Senior Games Meeting 12/17 • Attended Senior Games meeting at Onslow County Parks and Recreation • Signed up to attend Senior Games Sport Management Conference in Cary, NC • Signed up to work bowling events for Senior Games
Parks & Recreation Board Meet & Greet • Purchased cups/drinks/plates/utensils for event • Prepared snacks and drinks for event • Cleaned up after event • Returned food containers to the Boro Restaurant
Seaside Book Buzz – Monthly Book Club • Established dates and book titles from instructor • Entered program and dates into RecDesk for registration • Advertised on social media and posted flyers in Rec Center
Natural Wellness: Cooking with Essential Oils • Spoke with instructor Lisa Sparr about kitchen availability for the class • Confirmed dates and times for program with instructor • Set up program date and time on RecDesk for registrations • Listed on Facebook events
Ukrainian Easter Egg Decorating Class • Meeting with instructor Deb Pylypiw about ordering necessary supplies • Entered program into RecDesk for registration • Set date, times, fees
Research • Researching potential Summer Teen Adventure Camp and Summer Day Camp activities • Water parks, ropes courses, biking, hiking, kayaking/fishing, science museum, fossil hunting • Researched camping trips locations/costs for Paddle trips with Pogie’s
Permitting Training • Jennifer Ansell completed the LGFCU Fellows, Leading for Results course at the UNC School of Government the week of December 8-13, 2019
Planning Board • Regular meeting December 2, 2019 o Recommended approval of the Findley, Hargett, Matthews-Zetaier Rezoning from R-20 SF to O-I
200 7 Department Reports for December 2019
Historic Preservation Commission • The December 17th regular meeting was cancelled
Projects/Misc. • Met via conference call with representatives from FEMA, the NC Department of Public Safety/Emergency Management and the Icehouse to discuss the issues that arose related to the reconstruction of the restaurant and the classification of the existing building. Received a letter with their decision/further direction this week, see attached
Police Department Patrol • 127 Reportable Events • 18 Motor Vehicle Crashes • 156 Citations; 159 Verbal/Written Warnings • 3 Felony Arrests • 10 Misdemeanor Arrests • 2 Arrests by Warrant Service • 3 DWI Arrests • 1-Drug Arrest • 8 Arrests with Transport to the Onslow County Jail • 5 Felony Crimes Reported (2-Larceny; 2-Fraud; 1-Other) • 29 Misdemeanor Crimes Reported (12-Larceny; 9-Property Damage; 1-Trespassing; 1-Drug; 6-Other) • Larcenies (12-Misdemeanor; 2-Felony) • 5 Domestics • 8 Disputes/Disturbances • 14 Open Door/Alarm Calls • 3 Crisis Intervention with Mental Subject • 1 Overdose (non-fatality) • 47 Requests by Other Agencies for Assistance • 102 Requests by Citizens for Non-Criminal Assistance 4,260 Operational Events Performed on Patrol
Community Service/Training • 11 Vehicle Unlocks • 6 Requests for Fingerprinting • 4 Funeral Escorts • 62 Foot Patrols • 108 Business Closing Standbys
201 8 Department Reports for December 2019
• 6 requests for residence check while homeowners were away • Chief Jackson attended monthly NARANON meeting held in Morehead City • Chief Jackson attended monthly QRT meeting held in Jacksonville • Lieutenant Taylor attended monthly ECALEE meeting held on Camp LeJeune. Judge Surles conducted a presentation on new rules regarding the testing of hemp and marijuana • Lieutenant Taylor and Detective Watt attended quarterly Crime Stoppers meeting held in Jacksonville • Detective Fickey attended quarterly meeting of area Detectives held in Emerald Isle • Detective Fickey completed Prescription Drug Diversion Investigator Training. A 24-hour training conducted by the NC Justice Academy • Sergeant Peluso celebrated his 8-year anniversary with the Town of Swansboro – he retired December 31, 2019
Admin Services: • Answered 478 phone calls during business hours • Assisted 66 walk in requests for assistance during business hours • Took 29 requests for reports during business hours
Public Works No report provided
202 1 Department Reports for January 2020
Administrative Services • Phone Records Report for January: 2,322 calls Town Hall – 695 Parks and Recreation – 299 Police Department – 474 Fire Department – 141 Outgoing totals – 713 • Building permits sold for January: 50 residential/commercial combined; $16,448.46 total fees collected (includes 9 re-inspections) • 161 building inspections processed/6 Fire Inspections processed • 110 various receipts processed • 567 ONWASA payments processed, 11 New Service Setups, 29 Other transactions • 24 Work Orders generated for Public Works • 4 Notarization’s performed • Developed monthly and special meeting notices/hearings, agenda items, packets and minutes/distributed for meetings of Board of Commissioners, Planning Board, and Historic Preservation Commission. A staff representative attended each meeting and prepared meeting minutes/follow-ups • HR related items estimated at 19.75 hours (includes new hire processing, interviews, timesheets, policy review, employment verifications, benefit submittals, preparation of job descriptions/submittals/postings, etc.) • Town website updates continue (including Homepage articles/minutes/agendas/calendar, special events, projects, plans, etc.). Website Home Page visits: 3,644. Total Page Views 30,882. Top 5 pages viewed in June – Employment, Permitting, Police Dept, and Contact Us • Attended Chamber Board of Directors Meeting • Attended Military Appreciation Committee Meeting • LUCA Census Response • Records Retention Review in Vault • Attended Digital Communications Workshop through ECC • Meet with Attorney Parson to review closed session minutes/determine release • Arranged for Crystal Coast Mayor’s Meeting in Swansboro for February 19 at White Oak Bistro • Began planning for Advisory Board Banquet February 6 and Business Expo February 22 • Attended Chamber Members Breakfast • Organized/finalized Department Information presentation for January 27 meeting • Prepared press release for military training exercise January 29-30 in Swansboro • Met with shredding company for quote on records destruction and future shred day in Swansboro • Began preparing budget submittals for FY 20/21 • Began department budget reviews • Met with Advance Office Solutions regarding future needs/contract assessment • Prepared resolutions for Mayor’s future recognition of SHS Swim and SMS Wrestling Teams
203 2 Department Reports for January 2020
• Finalized December Departments Report
Finance • Sales & Use Tax received in January 2020 - $77,553 • Accounts Payable Summary for January 2020: 305 Invoices-Totaling $222,448 18 Purchase Orders Issued • PEV ChargePoint Station-Accumulated (kWh) for January 2020-(38.0) • Stormwater Fees Collected-January 2020-$1,992 • Updated Stormwater spreadsheet • Processed payroll-01/03, 01/17 & 01/31; updated employee accrual balances- (spreadsheet & Asyst) • December 2019 Bank Reconciliation-Town accounts • December 2019 Bank Reconciliation-Swansboro TDA • Processed TDA checks • TDA-prepared the Agenda and quarterly financial report • Gathered receipts and completed the Force Account form related to Hurricane Dorian • Hurricane Florence: review projects and update management cost • HUBSCO Report (Historically Underutilized Businesses State Construction Office) Construction Reporting System • Updating statistical section of the CAFR • Preparing Year End Projections FY 19/20/updating operating budget spreadsheet • Budget instructions for FY 20/21 distributed to Department Heads • Updating Capital Improvement Plan
Fire Department Fire Calls • 40 Total fire calls o 15 Calls in Town including: 5 Alarms, 3 Structure Fire, 2 Lift Assist, 3 MVC, Misc. o 6 Calls in White Oak District including: 6 Medical Assist, o 9 Mutual Aid: 2 MVC, 5 Structure Fires, 1 Outside Fire, 1 Alarm o 10 EMS Calls: 4 Breathing Problem, 1 Overdose, 2 EMS Assist, 3 Chest Pain • 175 Training Hours Paid Staff • 51 Training Hours Volunteers • 242 Hours Volunteer Duty Days = 10 (24 hr. Shifts) Cost Saved 242 hrs. x $14.00 = $3,388
Paid Staff • Currently all paid full-time and part-time positions are filled
204 3 Department Reports for January 2020
Volunteer Recruitment • Currently 12 volunteers on the roster, 4 certified for interior firefighting • Currently 3 volunteers enrolled in Carteret Community College for fire certification
Vehicle Repairs • All vehicles have had their yearly maintenance • DOT inspection • Pump tests completed; no issues found • Two-way communication system on ladder truck is out of service waiting for repair estimate
Department Activities • Chief Tessing completed six level one fire inspections • Began yearly preplanning updates • Captain Maready applied for the North Carolina State Smoke Detector Grant • Duty crew visited Swansboro Library on Jan 16th and read fire prevention material to 12 students • Captain Earles started inventory of turnout gear for next year’s budget • Captain Taveirne gathered all certifications for yearly EMS responses Parks and Recreation Director’s Report Festivals - General • Continue to work with Town Manager and Town Attorney to create a standard contract for all performers and entertainers • Final revisions for 2020 Sponsorship Packet; to begin distributing by February 1st • Marketing/Sponsorship-secured an exclusive radio sponsor with Curtis Media Group. Curtis Media Group has five stations that reaches all demographics. 30 second ads will be run on five stations for each event (PirateFest, Arts by the Sea, July 4, Mullet, Flotilla). Discussion of which festivals will have on site radio hosts and hosts to conduct activities and on-air giveaways • Applications for 2020 festivals are available and currently accepting applications
PirateFest • Parks and Recreation will continue to partner with Onslow County Parks and Recreation to host PirateFest in Downtown Swansboro on May 9th, 10 am - 4 pm; this is a free event open to the public. Event expenses are split between the two agencies. • Receiving quotes for entertainers so that we can solidify the budget
Ward Shore • Submitted the final closeout documents to North Carolina Division of Water Resources • Working with NC Coastal Federation to receive the $5,000 grant reimbursement
205 4 Department Reports for January 2020
• Working with Onslow County Soil and Water Conservation to receive $6,999 in grant funds that will go to the plantings over the next three years
Municipal Park Enhancement • Continue to work with Town Manager and Public Works Director on project details and discuss the work that the Town can do itself
Miscellaneous • Reviewing repairs/equipment replacement that needs to be completed from Hurricane Florence • Delivered a presentation of an overview of the Parks and Department and its 2019 accomplishments to the Board of Commissioners on January 27th • Met with Recreation Resource Consultant for the annual review of the NC Connect Grant (Municipal Park Enhancement Project) • Met with General Manager of Curtis Media Group, Joe Peters and Promotions Manger to discuss sponsorship for festivals and partnering on new events • Attend webinar on the Land and Water Conservation Fund; information on applying for the grant, guidelines, and requirements • Attended Senior Games Local Coordinator Conference January 14th -16th • Compiling information to begin composing RFP for Parks and Recreation Comprehensive Master Plan • Continue to work with Cunningham Recreation on repairs of the pour and play surface at Municipal Park, waiting on a new reduced quote • Continue to work with Duke Energy and Town Manager on a lighting project in the parks • Facilitated monthly Parks and Recreation Advisory Board meeting • Attended Board of Commissioner meetings • Continue to attend monthly Senior Games committee meetings. Serving as the Co- Coordinator for the 2020 Senior Games. Senior Games is conducted by committee members from Onslow County Parks and Recreation, Onslow County Senior Services, and Jacksonville Recreation and Parks • Facebook management continues – 10,750 followers • Weight Watchers meets at the Recreation Center on Tuesday evenings • Onslow Senior Services, Monday-Friday 9am-1pm at the Recreation Center • The Recreation Center had 723 visitors for the month of January • 280 dogs registered as of December 30, 2019 • Activity Report for January
206 5 Department Reports for January 2020
January Revenue • Slip Fee - Town Dock $774.00 • Rental Fees-Recreation Center Rooms $2,150.00 • Rental Fees-Parks $570.00 • Rec Program Fees $4,850.00 • Dog Park Registration Fees $55.00 • Festival Vendor Fees $1,170.00 • TOTAL REVENUE $9,649.00
Recreation Program Supervisor Report • Prepared monthly programs list for distribution to news, magazines, radio for January • Daily deposits • Disbursement forms for recent room rental deposit refunds • Weekly community service hours added and submitted
Pound Class • Met with instructor to talk about future classes and dates • Established dates for another 5-week series
Sea glass Resin Art Class • Booked three additional dates for classes to be held at Rec Center • Listed programs information on RecDesk for registration
207 6 Department Reports for January 2020
• Advertised on Facebook • Printed and posted flyers for classes in Rec Center • Emailed first participants and requested/received feedback about first class
Carnival Day Camp • Established fees for Resident/Non-Resident and daily camp registration • Set dates and time, listed on RecDesk • Advertised on Facebook, JD News, and posted in Rec Center • Started planning daily timeline • Booked time at MEGAPLAY in Jacksonville • Bulk emailed past summer camp participants information about the camp
Spring Break Camp • Set dates, times, fees • Listed program on RecDesk • Researched local events to tie to camp dates
Cook with your Kid! • Set dates for April, fees, class details with instructor Jamie Botinovch • Entered program into RecDesk for registration • Printed and posted flyers at Rec Center
Blood Drive • Coordinated dates with American Red Cross for blood drive • Entered program and dates into RecDesk for registration • Advertised on social media and posted flyers in Rec Center
Pogies • Met with owners and discussed events we will be partnering with him for the upcoming spring/summer/fall • Discussed details (pricing, schedule, timeframe, logistics) about numerous events planned • Potential teen adventure camp in conjunction with Pogies • Discussed all programs in partnership - chartered boat trips, kayak clinic, sharktooth and shelling exposition, kids fishing, paddle tour, paddlepalooza • Input all programs into RecDesk for registration
Sponsorships • Approached Jersey Mike’s about becoming a sponsor • Discussed meeting after sponsorship packets are complete
Yoga • Contacted Becky at Mandala Yoga Center about Yoga at the Pug for the summer
208 7 Department Reports for January 2020
• Discussed a beginner yoga class at Recreation Center for spring/summer
Pickleball • Sent out emails to past participants in search of a volunteer coordinator for the season • Researched pricing for pickleball equipment
Easter Egg Hunt • Spoke with Gigi Robles and set dates/times for event • Discussed event details and was informed of how past events have been carried out
Fellowship Night • Discussed theme with instructor Jamie Botinovch • Spoke with Jamie about volunteers for event who have contacted me
Down Syndrome Network • Contacted by Rebecca Droberg about hosting National Down Syndrome day at the Recreation Center • Partnered with their organization for the event • Discussed activities, room availability, and overall event details • Blocked off the entire Recreation Center for this event on March 21st
Bridge Club • Discussed potential bridge club with Tudi and John Gigillat • Discussed partnership and event details • Established dates/times/fees for program • Looking into budget to see if we have available funds for program Permitting Planning Board • The January 6, 2020 regular meeting was cancelled due to no applications being received and pending appointments
Historic Preservation Commission • January 21, 2020 regular meeting o Approved a request from Jonathan and Chelsea McDaniel for their home at 114 Elm Street (the Jonathan Green House) for exterior alteration (resurfacing and repointing foundation). They did not approve their request to paint their front door black o Board request to revisit the color palette at their February meeting
209 8 Department Reports for January 2020
Training • Attended the Chapter 160D Workshop hosted by the School of Government in Wilmington on January 23rd
Projects/Misc. • Met with representatives from One Harbor Church on January 9th with regard to the requirements of their special use approval and the permitting process • Inspected the landscaping and parking at Swansboro House/The Landing on January 22nd. A couple of items remain outstanding (sidewalk, stormwater) before a Certificate of Occupancy can be issued • Met with John Freshwater, John Pierce and Dave Newsome on January 24th to discuss Phase II of Ward Farm Village • Met with Tom and Llewellyn Copeland on January 28th with regard to their property at 633 Old Hammock Road concerning their previously denied variance request to install an accessory structure forward of their home. Staff agreed that the section of the ordinance concerning accessory structures needs to be clarified and will pursue a staff-initiated text amendment to do so • Collected several illegal signs that were posted in the right-of-way and Staff notified the owners of their impoundment. Staff contacted several business owners with flag signs to require their removal until a permit could be obtained. Staff deducted the number of days the flags had been displayed from the 45 days allowed • A permit application was received on January 27th for the Icehouse construction; however, it was not complete. In contact with Kathy Vinson to obtain the required documentation for review • Received a building permit from Grace Church to expand into the adjacent unit. Churches are currently allowed in the B-1 zoning district as a Special Use, that change was made in July 2016. The zoning permit for the church was signed in August 2017 for its current location. Upon a search of our records, we could not locate a special use permit for the church. Because there is no evidence that a special use was issued, it is an existing nonconfining use, and a special use permit would be required for expansion. Churches were previously a permitted use in the B-1 zoning district.
Police Department Patrol • 147 Reportable Events • 11 Motor Vehicle Crashes • 70 Citations; 123 Verbal/Written Warnings • 5 Felony Arrests • 11 Misdemeanor Arrests • 3 Drug Arrests
210 9 Department Reports for January 2020
• 4 Arrests by Warrant Service • 10 Arrests with Transport to the Onslow County Jail • 7 Felony Crimes Reported (2-Larceny; 2-Break & Enter; 1-Drug; 1-Assault; 1-Fraud) • 32 Misdemeanor Crimes Reported (8-Larceny; 8-Property Damage; 2-Drug; 1-Assault; 2; Trespassing; 1-Break & Enter; 10-Other) • 10 Larcenies (2-Felony; 8-Misdemeanor) • 4-Domestics4 Disputes/Disturbances • 22 Alarm/Open Door Calls • 4 Crisis Interventions with Mental Patients • 1 Overdose (non-fatality) • 60 Requests by Other Agencies for Assistance • 69 Requests by Citizens for non-criminal Assistance 3,882 Operational Events Performed on Patrol
Community Service/Training: • 12 Vehicle Unlocks • 12 Requests for fingerprinting • 3 Funeral escorts • 86 Foot Patrols • 109 Business Closing Standbys • 5 Requests by residents for Residence Check while they were away • Chief Jackson attended monthly NARANON meeting held in Morehead City • Chief Jackson attended monthly QRT meeting held in Jacksonville • Lieutenant Taylor attended monthly East Carolina Association of Law Enforcement Executives meeting held in Holly Ridge. Ysidra Keffer, Criminal Intelligence Analyst, gave a briefing on updates in Criminal Intelligence • Detective Fickey and Detective Watt attended the quarterly Bank Watch meeting. The US Attorney’s Office for the Eastern District of NC did a presentation on Human Trafficking • Detective Watt attended the quarterly Bank Secrecy Act meeting, conducted by the IRS and held in Raleigh. The focus of the meeting was financial investigations.
Admin Services • Answered 557 phone calls during business days • Assisted 81 walk in requests for assistance during business hours • Took 37 requests for reports during business hours
Public Works No report provided
211 Board of Commissioners Meeting Agenda Item Submittal
______Item To Be Considered: Future Agenda Topics Board Meeting Date: February 24, 2020 Prepared By: Paula Webb – Assistant Manager/Town Clerk
The purpose of this memo is to provide the Board with matters that staff anticipates/proposes for upcoming meetings. It should be noted that these items are tentatively scheduled for the specified monthly agenda but are subject to change due to preparation of materials, public notice requirements, etc.
In providing this memo each month, we hope it will also provide opportunity for the Board to introduce items of interest and subsequent direction for placement on future agendas, which will allow staff the opportunity to plan accordingly.
Future Items ⁕ One Harbor Church Lease Renewal - March ⁕ Shipwrights Point Acceptance – Phase 1 – March/April ⁕ Downtown Parkin Study Discussion/Jeff Hochanadel - March 9 ⁕ Text Amendment – Accessory Building Setbacks - March 23 ⁕ Hazard Mitigation Plan Revisions – April ⁕ LUP Amendment – add back Urban Waterfront Designation - April 27 ⁕ Park Place Street Acceptance – phase 3 ⁕ Sign Amendments - referred back to Planning Board ⁕ Flood Map Amendments ⁕ Walmart Entrance Annexation ⁕ Sub-committee designations for Strategic Plan Implementation ⁕ Text Amendments – R/A Zoning Uses – referred back to Planning Board ⁕ Further LUP Review/Amendments ⁕ Implementation of Downtown Traffic Movement (Jan/Feb 2020) ⁕ Presentations – ONWASA Otway Burns Daughters of the American Revolution Day Proclamation Wetlands/Rick Savage/President of the Carolina Wetlands Association – March 23 SMS Wrestling Team SHS Swim Team Eagle Scout – Actual identity unknown to date ⁕ Chamber/Cigar Shop Lease Revisions ⁕ Stormwater Discussion ⁕ Text Amendments - Occupancy Tax ⁕ Comprehensive Transportation Plan Revisions ⁕ FY 20/21 Budget Workshops/Adoption – No later than June 30
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