Comprehensive Annual Financial Report FY Ended June 30, 2019 South Carolina Photo by: Bob Hill Council Members Mayor Chris Widuch, Mayor Pro Tempore Town Administrator Treasurer Craig Weaver Maryanne Connelly Stephanie Monroe Tillerson Dorota Szubert Dan Prickett Klaus Said TOWN OF KIAWAH ISLAND, SOUTH CAROLINA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2019 TOWN OF KIAWAH ISLAND, SOUTH CAROLINA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2019 TABLE OF CONTENTS Page INTRODUCTORY SECTION Letter of Transmittal ............................................................................................................................................ i – vii Organizational Chart ..................................................................................................................................... viii and ix Principal Officials .........................................................................................................................................................x GFOA Certificate of Achievement ............................................................................................................................ xi FINANCIAL SECTION Independent Auditor’s Report ............................................................................................................................. 1 – 3 Management’s Discussion and Analysis.......................................................................................................... 4 – 16 Basic Financial Statements: Government-wide Financial Statements Statement of Net Position ............................................................................................................................. 17 Statement of Activities .................................................................................................................................. 18 Fund Financial Statements Balance Sheet – Governmental Funds ............................................................................................ 19 and 20 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position .............................................................................................................. 21 Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds ................................................................................................ 22 and 23 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities .............................................................................................................................. 24 Notes to the Financial Statements .................................................................................................................. 25 – 64 REQUIRED SUPPLEMENTARY INFORMATION Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual – GAAP Basis: General Fund ................................................................................................................................................. 65 State Accommodations Tax Fund ............................................................................................................... 66 County Accommodations Tax Fund ............................................................................................................ 67 Local Accommodations Tax Fund ............................................................................................................... 68 Beverage Permits Fund ................................................................................................................................ 69 Hospitality Tax Fund ..................................................................................................................................... 70 Victims’ Assistance Fund ............................................................................................................................. 71 Capital Projects Fund ................................................................................................................................... 72 TOWN OF KIAWAH ISLAND, SOUTH CAROLINA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2019 TABLE OF CONTENTS (CONTINUED) Page REQUIRED SUPPLEMENTARY INFORMATION (CONTINUED) Schedule of Proportionate Share of the Net Pension Liability and Related Ratios – South Carolina Retirement System.............................................................................. 73 Schedule of Contributions – South Carolina Retirement System ....................................................................... 74 Schedule of Proportionate Share of the Net Pension Liability and Related Ratios – Police Officers Retirement System .............................................................................. 75 Schedule of Contributions – Police Officers Retirement System ........................................................................ 76 Schedule of Changes in Total OPEB Liability and Related Ratios ..................................................................... 77 OTHER SUPPLEMENTARY INFORMATION Comparative Schedules of Revenues and Expenditures: General Fund ...................................................................................................................................................... 78 State Accommodations Tax Fund ................................................................................................................... 79 County Accommodations Tax ........................................................................................................................... 80 Local Accommodations Tax .............................................................................................................................. 81 Beverage Permits Fund ..................................................................................................................................... 82 Hospitality Tax Fund .......................................................................................................................................... 83 c Vi tims’ Assistance Fund .................................................................................................................................. 84 Capital Projects Fund......................................................................................................................................... 85 Uniform Schedule of Court Fines, Assessments and Surcharges (Per ACT 96) .................................... 86 and 87 STATISTICAL SECTION FINANCIAL TRENDS INFORMATION Narrative .............................................................................................................................................................. 88 Schedule 1 – Net Position by Component – Last Ten Fiscal Years .............................................................. 89 Schedule 2 – Changes in Net Position – Last Ten Fiscal Years ........................................................ 90 and 91 Schedule 3 – Fund Balances – Governmental Funds – Last Ten Fiscal Years .................................................................................................................................... 92 Schedule 4 – Change in Fund Balances – Governmental Funds – Last Ten Fiscal Years ................................................................................................................................... 93 TOWN OF KIAWAH ISLAND, SOUTH CAROLINA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2019 TABLE OF CONTENTS Page STATISTICAL SECTION (CONTINUED) REVENUE CAPACITY Narrative .............................................................................................................................................................. 94 Schedule 1 – Significant Revenue – Governmental Funds – Last Ten Fiscal Years .................................................................................................................................... 95 Schedule 2 – Significant Revenue – Percent of Business License by Class for the Last Ten Fiscal Years ............................................................................................................. 96 Schedule 3 – Significant Revenue – Percent of Accommodations Taxes by Class for the Current Year and Last Three Fiscal Years ...................................................................... 97 DEBT CAPACITY Narrative .............................................................................................................................................................. 98 Schedule 1 – Ratio of Outstanding Debt by Type ........................................................................................... 99 Schedule 2 – Ratio of General Bonded Debt Outstanding ........................................................................... 100 Schedule 3 – Legal Debt Margin Information ................................................................................................ 101 DEMOGRAPHIC AND ECONOMIC INFORMATION Narrative ............................................................................................................................................................ 102 Demographic and Economic Information – Profile of General Demographic Characteristics ...........................................................................................