CITY OF GASTONIA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR YEAR ENDED JUNE , City of Gastonia North Carolina Comprehensive Annual Financial Report for Fiscal Year Ended June 30, 2020 Prepared by The Financial Services Department City of Gastonia North Carolina Annual Financial Report Year Ended June 30, 2020 Walker E. Reid, III, Mayor Council Members Ward 1 – Robert J. Kellogg Ward 4 – Charles M. Odom Ward 2 – Dave Kirlin, Mayor Pro-Tem Ward 5 – Jennifer M. Stepp Ward 3 – Jim Gallagher Ward 6 – Donyel Barber City Manager Michael C. Peoples Director of Financial Services Crystal Certain CITY OF GASTONIA, NORTH CAROLINA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED JUNE 30, 2020 TABLE OF CONTENTS Exhibit Page INTRODUCTORY SECTION Letter of Transmittal i-xv City Facts xvi-xxiv GFOA's Certificate of Achievement for Excellence in Financial Reporting xxv Organizational Chart xxvi FINANCIAL SECTION Independent Auditor's Report 1-3 Management's Discussion and Analysis 4-18 Basic Financial Statements: Government-Wide Financial Statements: A Statement of Net Position 19 B Statement of Activities 20-21 Fund Financial Statements: C Balance Sheet - Governmental Funds 22-23 D Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds 24 E Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds to the Statement of Activities 25 F General Fund - Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual 26 G Statement of Net Position - Proprietary Funds 27 H Statement of Revenues, Expenses, and Changes in Fund Net Position - Proprietary Funds 28 I Statement of Cash Flows - Proprietary Funds 29-30 J Statement of Fiduciary Net Position 31 Notes to the Financial Statements 32-93 CITY OF GASTONIA, NORTH CAROLINA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED JUNE 30, 2020 TABLE OF CONTENTS Schedule Page Required Supplementary Information: A-1 Schedule of Changes in Total Pension Liability - Law Enforcement Officers' and Firemen's Special Separation Allowance 94 A-2 Schedule of Total Pension Liability as a Percentage of Covered Payroll - Law Enforcement Officers' and Firemen's Special Separation Allowance 95 A-3 Schedule of Changes in the Total OPEB Liability and Related Ratios - Other Post-Employment Benefits 96 A-4 Required Supplementary Information - Local Government Employees' Retirement System - Proportionate Share of Net Pension Liability (Asset) 97 A-5 Required Supplementary Information - Local Government Employees' Retirement System - Contributions 98 Other Supplemental Schedules: A-6 Nonmajor Governmental Funds - Combining Balance Sheet 99 A-7 Nonmajor Governmental Funds - Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 100 A-8 Schedule of Ad Valorem Taxes Receivable 101 A-9 Analysis of Current Year Levy 102 General Fund: B-1 Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual 103-118 Special Revenue Funds: C-1 Nonmajor Special Revenue Funds - Combining Balance Sheet 119-120 C-2 Nonmajor Special Revenue Funds - Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 121-122 C-3 Community Development Block Grant Program - Program Fund - Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual 123 C-4 Community Development Block Grant Program - Affordable Housing Fund - Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual 124 C-5 Community Development Block Grant Program - Rehabilitation Fund - Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual 125 C-6 Community Development Block Grant Program - Home Investment Trust Fund - Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual 126 CITY OF GASTONIA, NORTH CAROLINA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED JUNE 30, 2020 TABLE OF CONTENTS Schedule Page Special Revenue Funds (continued): C-7 Community Development Block Grant Program - 108 Loan/Revitalization - Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual 127 C-8 Community Development Block Grant Program - 108 Loan/Economic - Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual 128 C-9 Community Development Block Grant Program - Economic Development - Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual 129 C-10 Occupancy Tax - Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual 130 C-11 Uptown Municipal Tax District - Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual 131 C-12 Economic Stimulus Grants Fund - Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual 132 Capital Project Funds: D-1 Major Capital Project Fund - Mayor/Council - Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual 133 D-2 Major Capital Project Fund - Streets - Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual 134 D-3 Nonmajor Capital Project Funds - Combining Balance Sheet 135 D-4 Nonmajor Capital Project Funds - Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 136 D-5 Capital Project Fund - Developer Sidewalk - Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual 137 D-6 Capital Project Fund - Airport - Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual 138 D-7 Capital Project Fund - Downtown Revitalization - Schedule of Expenditures, and Changes in Fund Balance - Budget and Actual 139 D-8 Infrastructure Rehabilitation Fund - Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual 140 CITY OF GASTONIA, NORTH CAROLINA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED JUNE 30, 2020 TABLE OF CONTENTS Schedule Page Enterprise Funds: E-1 Nonmajor Enterprise Funds - Combining Statement of Net Position 141 E-2 Nonmajor Enterprise Funds - Combining Statement of Revenues, Expenses, and Changes in Fund Net Position 142 E-3 Nonmajor Enterprise Funds - Combining Statement of Cash Flows 143 E-4 Water and Sewer Fund - Schedule of Revenues and Expenditures - Budget and Actual (Non-GAAP) 144-147 E-5 Water and Sewer Capital Project Funds - Schedule of Revenues and Expenditures - Budget and Actual (Non-GAAP) 148 E-6 Electric Fund - Schedule of Revenues and Expenditures - Budget Budget and Actual (Non-GAAP) 149-152 E-7 Electric Capital Project Funds - Schedule of Revenues and Expenditures - Budget and Actual (Non-GAAP) 153 E-8 Stormwater Fund - Schedule of Revenues and Expenditures - Budget and Actual (Non-GAAP) 154-155 E-9 Stormwater Capital Project Fund - Schedule of Revenues and Expenditures - Budget and Actual (Non-GAAP) 156 E-10 Transit System Fund - Schedule of Revenues and Expenditures - Budget and Actual (Non-GAAP) 157-158 E-11 Municipal Golf Course Fund - Schedule of Revenues and Expenditures - Budget and Actual (Non-GAAP) 159 E-12 Solid Waste Fund - Schedule of Revenues and Expenditures - Budget and Actual (Non-GAAP) 160-161 Internal Service Funds: F-1 Internal Service Funds - Combining Statement of Net Position 162 F-2 Internal Service Funds - Combining Statement of Revenues, Expenses, and Changes in Fund Net Position 163 F-3 Internal Service Funds - Combining Statement of Cash Flows 164 F-4 Vehicle and Equipment Renewal and Replacement Fund - Schedule of Revenues and Expenditures - Financial Plan and Actual (Non-GAAP) 165-167 F-5 Information Technology Fund - Schedule of Revenues and Expenditures - Financial Plan and Actual (Non-GAAP) 168-171 F-6 Dental Self-Insurance Fund - Schedule of Revenues and Expenditures - Financial Plan and Actual (Non-GAAP) 172 F-7 Medical Self-Insurance Fund - Schedule of Revenues and Expenditures - Financial Plan and Actual (Non-GAAP) 173 Agency Fund: G-1 Statement of Changes in Fiduciary Assets and Liabilities 174 CITY OF GASTONIA, NORTH CAROLINA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED JUNE 30, 2020 TABLE OF CONTENTS Table Page STATISTICAL SECTION 1 Net Position by Component 175 2 Changes in Net Position 176-177 3 Fund Balances, Governmental Funds 178 4 Changes in Fund Balances, Governmental Funds 179 5 Tax Revenue by Source, Governmental Funds 180 6 Assessed Value and Estimated Actual Value of Taxable Property 181 7 Direct and Overlapping Property Tax Rates 182 8 Principal Property Tax Payers 183 9 Property Tax Levies and Collections 184 10 Ratios of Debt Outstanding Debt by Type 185 11 Ratios of General Bonded Debt Outstanding 186 12 Direct and Overlapping Governmental Activities Debt 187 13 Legal Debt Margin Information 188 14 Pledged-Revenue Coverage 189 15 Demographic and Economic Statistics 190 16 Principal Employers 191 17 Full-Time Equivalent City Government Employees by Function 192 18 Operating Indicators by Function/Program 193 19 Capital Asset Statistics by Function/Program 194 COMPLIANCE SECTION 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 195-196 Report on Compliance for Each Major Federal Program; Report on Internal Control Over Compliance; Required by the Uniform Guidance and the State Single Audit Implementation Act 197-198 Report On Compliance For Each Major State Program; Report On Internal Control Over Compliance; Required by the Uniform Guidance