City of Rock Hill, South Carolina

Transcription

1 City of Rock Hill, South Carolina Rating Agency Presentation June,

2 Presentation Outline I. Introduction II. General Fund Overview III. Expanded Downtown Redevelopment Area IV. Utility System Overview V. Demographics and Economic Information 2

3 I. Introduction 3

4 City of Rock Hill City founded in 1852 and incorporated in 1892 City Manager Form of Government since 1915 City encompasses approximately square miles Current Population: 68,718 (estimated) 20 miles south of Uptown Charlotte, North Carolina 4

5 Organizational Chart 5

6 Rock Hill City Council Number of Name Occupation Years on Council **A. Douglas Echols, Jr., Retired 24 Mayor John A. Black, III Investment Consultant 4 Mayor Pro Tempore Sandra Oborokumo Civic Leader 1 Kathy S. Pender Civic Leader 9 James C. Reno, Jr. Banker 15 Osbey Roddey Retired-Education 23 Kevin H. Sutton Marketing & Sales 19 *Years of service include 8 years of previous service **Mayor Echols currently serves on the National League of Cities Advisory Council 6

7 Management Team David B. Vehaun, City Manager City Manager since October, 2010 Formerly served as Assistant City Manager & Finance Director/Municipal Clerk Formerly served as Budget Officer from Previously worked with the City of Charlotte Masters in Public Administration, University of North Carolina at Chapel Hill Bachelor s in Government & Public Service, Winthrop University Certificate of Completion from the Advanced Government Finance Institute, University of Wisconsin School of Business Past President of the Government Finance Officers Association of South Carolina Past President of the Municipal Finance Officers, Clerks and Treasurers Association of S.C. Formerly served on GFOA National Budget Committee (3 years as Chair) and National Nominating Committee Previously served on GFOA National Executive Board 2008 to 2011 Gerald E. Schapiro, Deputy City Manager Named Deputy City Manager August, 2008 Assistant City Manager since 1999 Previously served as Finance Director from Employed with the City since 1970 Masters in Business Administration, Columbia University Graduate Business School Bachelors in Economics, University of Pittsburgh Past President of the Municipal Finance Officers, Clerks and Treasurers Association of SC 7

8 Management Team James G. Bagley, Jr., P.E., Deputy City Manger Named Deputy City Manager July, 2011 Assistant City Manager since October, 2010 Former Utilities Director and Chief Information Officer Employed with the City since 1989 Bachelor of Science in Electrical Engineering, Clemson University Masters in Business Administration, Winthrop University Past President of the S.C. Society of Professional Engineers, Catawba Chapter Past President of the S.C. Association of Municipal Power Systems Board Member of the American Public Power Association Transmission and Distribution Committee Registered Professional Engineer and Licensed Electrical Engineer Anne P. Harty, CPA, Chief Financial Officer/Municipal Clerk Chief Financial Officer since November, 2010 Former Customer Service Director Employed with the City since 2005 Formerly Served as York County Treasurer and Finance Director from Bachelors of Science with emphasis in Business Administration from Winthrop University Certified Public Accountant since 1990 Certificate of Completion from the Advanced Government Finance Institute, University of Wisconsin School of Business Past President SC Association of CPAs Catawba Chapter Served on SC Government Finance Officers Assoc and SC Assoc of CPAs State Boards Currently serves on GFOA National Committee on Accounting, Auditing and Financial Reporting ReceipentSouth Carolina Association of Certified Public Accountants 2012 Women to Watch Award Currently Vice-chairman, National GFOA Women s Network 8

9 Management Team Steven Gibson, Office of Management and Budget Director Office of Management and Budget Director since November, 2010 Formerly Administrative Services Director Employed with the City since 1990 Bachelor of Science with emphasis in Business Admin. From Winthrop University Certificate of Completion from the Advanced Government Finance Institute, University of Wisconsin School of Business Serves as Examiner for South Carolina Governor s Quality Award Serves as Primary Coordinator for ICMA Center for Performance Measurement Currently Chariman of the GFOA National Budget Committee Andrew C. Cooper, CPA, Financial Compliance Manager Employed with the City since 1988 Bachelors degree in Accounting, University of North Carolina at Chapel Hill Certified Public Accountant since 1984 Twenty-five years electrical utilities accounting experience Four years public accounting experience with emphasis in governmental accounting 9

10 II. General Fund Review 10

11 Financial Review Overview General Fund Revenues & Expenditures Property Tax Overview Multi Year Budget Process/Long Range Financial Plan Fund Balance General Fund Debt Overview 11

12 General Fund Revenues Historical Review Total General Fund Revenues (in m illions) $60 $55 $50 $45 $40 $35 $30 $25 $20 $15 $10 $5 $ '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 General Fund Revenues 12

13 General Fund Expenditures Historical Review $70 Total General Fund Expenditures (in millions) $60 $50 $40 $30 $20 $ '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 General Fund Expenditures 13

14 $14,000,000 General Fund Balance Capital Outlays from Reserved Fund Balance occurred in 07 and 08 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $0 1/1/2007 1/1/2008 1/1/2009 1/1/2010 1/1/2011 1/1/2012 Unassigned* Restricted, Committed & Assigned 14

15 General Fund Revenues/Expenditures Historical Review $65 Total Revenues and Expenditures (in millions) $60 $55 $50 $45 $40 $35 $30 $25 $20 $15 $ '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 Expenditures Revenues Revenues Plus Transfers 15

16 General Property Tax Revenue $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $0 98/99 99/00 '00/01 '01/02 '02/03 '03/04 '04/05 '05/06 '06/07 '07/08* '08/09 '09/10 '10/11 '11/12 '12/13** Tax Revenue * Includes reduction of $2.5 million in schools/county tax revenue related to the Red River Tax Increment District ** Collections through April 30,

17 Assessed Value of Taxable Property Tax Levy Year Real Property Personal Property Total Total Assessed Value Estimated Actual Value Assessed Value Estimated Estimated Actual Actual Value Assessed Value Value 2012** $189,417,598 $4,056,693,558 $58,901,016 $653,011,237 $248,318,614 $4,709,704, * $186,482,809 $3,853,110,908 $55,889,794 $592,206,186 $242,372,603 $4,445,317, $175,709,840 $3,777,761,558 $52,635,320 $575,525,917 $228,345,160 $4,353,287, $167,855,603 $3,594,867,803 $55,540,885 $607,004,207 $223,396,488 $4,201,872, $158,437,437 $3,243,207,659 $55,006,060 $599,455,444 $213,443,497 $3,842,663, $154,070,543 $3,224,700,346 $52,326,124 $584,447,242 $206,396,667 $3,809,147, * $129,105,803 $2,702,188,890 $46,873,797 $523,577,505 $175,979,600 $3,225,746, $120,531,406 $2,355,935,382 $48,473,002 $503,565,564 $169,004,408 $2,859,500, $119,951,208 $2,300,609,615 $42,252,247 $426,134,477 $162,203,455 $2,726,744, $114,518,584 $2,203,116,261 $42,820,555 $415,140,812 $157,339,139 $2,618,257,073 *Revaluation ** Estimated Source: York County Auditor 17

18 Rock Hill s Tax Rates From Fiscal Year 2002/ / Annual Tax Rate (in millions) '02/03 '03/04 '04/05 '05/06 '06/07* '07/08 '08/09 '10/11 '10/11 '11/12* '12/13 Year of Reassessment 18

19 Rock Hill s Total Tax Rates Tax Millage Rate * * * 2012** Rock Hill County & Schools Includes City, County and School Tax Millage Rates **2012 County rate estimated * Year of Reassessment 19

20 Comparison of City Tax Rates Rock Hill City Tax Rates Compared to S.C. Cities, PMPA Cities, Regional Cities, & York County Cities Current Millage Rate * 1. Lancaster* 2. Monroe 3. Gastonia 4. Anderson 5. Laurens* 6. Gaffney* 7. York 8. Clover 9. Charlotte 10. Concord 11. Sumter* 12. Spartburg 13. Abbeville* 14. Columbia* 15. Greer 16. Clinton* 17. Rock Hill(17) 18. W'minster 19. N. Charlstn* 20. Tega Cay 21. Newberry 22. Fort Mill 23. Greenville 24. Union 25. Charleston* 26. Easley* 27. Florence* 28. Mt. Pleasant* 20 * Local Option Sales Tax

21 Tax Collections Real Property Fiscal Years Year Total Tax Levy Fiscal Year Current Tax Collections Fiscal Year % of Levy Collected Delinquent Collections Tax Collections % of Total Tax Collections to Tax Levy Outstanding Delinquent Taxes 2013* $22,538,940 $21,461, % $702,099 $22,163, % $2,350, $22,115,139 $20,502, % $1,359,748 $21,862, % $1,117, $19,876,412 $18,583, % $844,066 $19,427, % $864, $19,612,386 $18,500, % $1,082,408 $19,582, % $415, $18,947,739 $17,718, % $843,458 $18,561, % $385, $17,518,468 $16,536, % $728,979 $17,265, % $253, $15,992,763 $15,008, % $580,789 $15,589, % $403, $14,352,175 $13,546, % $564,628 $14,110, % $241, $13,725,723 $13,175, % $436,947 $13,612, % $550, $13,145,366 $12,701, % $296,823 $12,998, % $115,647 * Collections Thru April 30, 2013 Source: City of Rock Hill, York County Treasurer 21

22 Ten Largest Taxpayers 2013 Taxpayer Property Taxes Assessed Value Rock Hill Telephone Company $526,991 $5,636,270 AMISUB of SC Inc. (Tenet) $321,137 $3,434,616 Atotech USA Inc. $185,211 $1,953,701 Piedmont Medical Center $177,829 $1,901,910 Transaxel Manufacturing $103,601 $1,108,030 TTP South Brookstone LLC Etal $98,674 $1,055,340 FPRO 401 LCC (Atlas CopCo) $95,230 $1,018,500 Whisper Creek Apartments LLC $90,672 $ 969,756 Mallard Pointe LLC $89,798 $960,402 Workplace Resources LLC $22,207 $820,081 Total $1,711,349 $18,858,606 Source: York County Treasurer 22

23 Taxpayer Concentration Tax Year Total Assessed Value Total of Top 10 Taxpayers Top 10 Total Assessed Value ,318,614 18,858, % ,372,603 18,559, % ,345,160 17,396, % ,396,488 17,801, % ,443,497 17,835, % ,396,667 18,607, % ,979,600 16,810, % ,004,408 16,591, % ,203,455 16,823, % ,339,139 15,241, % 23

24 Market Value Per Capita Per Capita Income Population True Property Value Market Value Per Capita 2011 $34,053 67,477 $4,445,317,094 $65, $32,906 66,154 $4,353,287,478 $65, $33,302 65,875 $4,201,872,010 $63, $30,081 64,020 $3,842,663,103 $60, $31,449 63,480 $3,809,147,588 $60, $30,722 61,620 $3,225,746,395 $52, $29,690 59,554 $2,859,500,946 $48, $28,714 57,902 $2,726,744,092 $47, $27,778 56,114 $2,618,257,073 $46, $27,407 53,940 $2,609,786,674 $48,383 24

25 Multi-Year Budgeting Balanced budgets for 2012/2013 and 2013/2014 Summarized expense projections for personnel, operating, and capital expenses for 2014/15, 2015/16 & 2016/ / /17 Line Item Projections for all revenues 25

26 Summary of Revenues/Expenses 2012/ / / / / / /17 EXPENSES BY FUND Total General Fund Expenses $51,641,018 $52,141,019 $53,965,955 $55,854,763 $57,809,680 Total Utility Fund Expenses 116,379, ,976, ,245, ,664, ,237,758 Total Stormwater Expenses 2,415,000 2,416,000 2,464,320 2,513,606 2,563,879 Total Expenses 170,435, ,533, ,676, ,032, ,611,316 EXPENSES BY CATEGORY Total Personal Expenses 46,557,946 47,362,986 48,783,876 49,759,553 50,973,686 Total Operating Expenses 43,480,065 43,805,179 44,618,033 45,510,394 46,420,601 Total Purchased Power 68,872,110 73,379,536 77,048,513 80,900,938 85,097,804 Total Capital Expenses 11,525,478 11,986,027 12,225,748 12,861,985 13,119,224 Total Expenses 170,435, ,533, ,676, ,032, ,611,316 REVENUES BY FUND Total General Fund Revenues 45,278,854 45,733,515 46,419,518 47,115,810 47,822,548 Total Utility Fund Revenues 122,741, ,384, ,877, ,192, ,720,478 Total Stormwater Revenues 2,415,000 2,416,000 2,464,320 2,513,606 2,563,879 Total Revenues 170,435, ,533, ,761, ,822, ,106,904 Total Difference 0 0 (914,670) (1,210,686) (1,504,412) 26

27 Liquidity Ratio General Fund Cash and Investments General Fund Current Liabilities Liquidity Ratio ,807,185 4,493, % ,562,531 4,957, % ,458,222 4,022, % ,759,235 4,575, % ,095,339 4,500, % ,956,544 4,410, % ,038,013 3,804, % ,089,802 3,364, % ,485,897 3,077, % ,298,230 3,686, % 27

28 Fund Equity As a Percentage of Expenditures & Transfers Fund Balance Expenditures General Fund Equity Fund Balance as % of Expenditures ,228,750 8,596, % ,364,911 8,200, % ,757,014 5,650, % ,691,522 6, % ,874,746 9,888, % ,761,828 12,761, % ,956,239 10,677, % ,970,535 7,710, % ,907,260 6,384, % ,968,517 5,367, % 28

29 Unreserved Fund Equity As a Percentage of Expenditures & Transfers Fund Balance Expenditures Unassigned* General Fund Equity Unassigned* Fund Balance as % of Expenditures ,228,750 3,624, % ,364,911 2,376,143* 4.91%* ,757,014 2,602, % ,691,522 2,602, % ,874,746 2,602, % ,761,828 2,402, % ,956,239 2,970, % ,970,535 2,473, % ,907, , % ,968, , % *For Fiscal Year 2011, GASB54 requires changes in reporting fund balances to unassigned 29

30 Debt Service as a Percentage of Expenditures Governmental Funds Total Governmental Fund Debt Service Total Governmental Fund Expenditures Carrying Charge ,793,876 78,362, % ,467,217 78,352, % ,367,864 65,371, % ,817,719 70,772, % ,426,441 66,568, % ,925,072 60,985, % ,345,701 59,064, % ,725,700 52,520, % ,119,710 47,773, % ,833,664 39,727, % 30

31 CITY OF ROCK HILL, SOUTH CAROLINA General Obligation/Stormwater Principal of Outstanding Debt GO and Stormwater Gen Obligation Gen Obligation Gen Obligation Gen Obligation Stormw ater Stormw ater Fiscal Series 1997 Series 2003 Series 2008 Series 2011 Series 2006A Series 2006B Year Principal Coupon Principal Coupon Principal Coupon Principal Coupon Principal Coupon Principal Coupon Total , % 275, % 150, % 295, % 241, % 133, % 1,174, , % 300, % 160, % 300, % 248, % 136, % 1,230, , % 300, % 165, % 310, % 256, % 139, % 1,261, , % 300, % 175, % 315, % 265, % 142, % 1,292, , % 350, % 185, % 330, % 273, % 146, % 1,384, , % 195, % 345, % 282, % 149, % 1,321, , % 205, % 355, % 291, % 151, % 1,353, , % 215, % 365, % 301, % 156, % 1,387, , % 225, % 375, % 310, % 159, % 1,470, , % 240, % 395, % 320, % 163, % 1,519, , % 415, % 331, % 167, % 1,163, , % 342, % 170, % 943, , % 353, % 175, % 979, , % 44, , , % 495, , % 515, , % 535, , % 555, , % 580, , % 605, , % 630, , % 660, , % 690,000 Total 450,000 3,375,000 2,165,000 10,415,000 3,819,141 2,037,072 22,261,213 - Call Date Adv. Ref. 0 Times 0 Times N/A 0 0 Times 0 Times Eligibility Eligible Eligible Eligible Eligible Eligible Eligible Wt.Avg 31

32 CITY OF ROCK HILL, SOUTH CAROLINA TIF/Recovery Zone/NMTC/Hospitality Tax Principal of Outstanding Debt COP/TIF/Stormwater Tax Increment Tax Increment Tax Increment Tax Increment Velodrome Velodrome BMX/Manchester Meadow s Fiscal Series A 2012 Series 2009 Riverw a Recovery Zone Loan B Hospitality Tax Year Principal Coupon Principal Coupon Principal Coupon Principal Coupon Principal Coupon Principal CouponPrincipal Coupon Total , % 125, % 125, % 410, % , % 1,895, , % 135, % 435, % , % 1,585, , % 140, % 455, % , % 1,640, , % 145, % 475, % , % 1,700, , % 150, % 500, % , % 1,775, , % 160, % 525, % 299, , % 2,154, , % 165, % 550, % 307,159 1,035, % 2,242, , % 170, % 580, % 323,982 1,090, % 2,358, , % 180, % 610, % 342,878 1,140, % 2,477, , % 200, % 640, % 362,877 1,195, % 2,612, , % 205, % 670, % 384,042 1,260, % 2,744, , % 215, % 705, % 406,442 1,010, % 2,571, , % 220, % 735, % 430, , % 1,940, , % 230, % 775, % 455, , % 2,045, , % 240, % 810, % 487, , % 2,152, , % 245, % 855, % 350, % 1,750, , % 365, , % 385, , % 405, , % 425,000 Total 315,000 3,295,000 2,925,000 9,730,000 3,800,000 1,200,000 15,160,000 36,425,000 Call Date Not Callable Not Callable Not Callable Adv. Ref. 0 Times N/A 0 Times 0 Times Weighted Eligibility Eligible N/A Eligible Eligible Avg. Int Wt.Avg Rate Int Rate % % % 4.960% 4.808% % 32

33 CITY OF ROCK HILL, SOUTH CAROLINA General Obligation/TIF/Stormwater/Hospitality Tax Fiscal Gen Oblig Gen Oblig Gen Oblig Gen Oblig Stormw ater Stormw ater Tax Inc Tax Inc Velodrome Velodrome BMX/MM Total Year Series 1997 Series 2003 Series 2008 Series 2011 Series 2006A Series 2006B Series 2007 Series 2011A Series 2012 Rec Zone A Rec Zone B Hospitality Tax Debt , , , , , , , , , ,500 27,000 1,514,207 4,665, , , , , , , , , ,500 27,000 1,518,000 4,377, , , , , , , , , ,500 27,000 1,516,900 4,366, , , , , , , , , ,500 27,000 1,515,050 4,353, , , , , , , , , ,500 27,000 1,513,250 4,396, , , , , , , , ,656 1,515,050 4,514, , , , , , , , , ,250 3,137, , , , , , , , , ,500 3,129, , , , , , , , ,656 1,514,000 4,523, , , , , , , , ,656 1,512,000 4,511, , , , , , , ,656 1,517,250 4,097, , , , , , ,656 1,204,250 3,525, , , , , , , ,750 2,769, ,413 44, , , , ,750 2,277, , , , , ,000 2,237, , , , ,500 1,735, , ,000 1,163, , ,750 1,163, , ,500 1,166, , ,250 1,166, , , , ,750 33

34 General Obligation Bonds Aggregate Debt Service $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23 '24 '25 '26 '27 '28 '29 '30 '31 '32 '33 '34 '35 ' New Money 2003 New Money 2008 New Money 2011 New Money 34

35 Hospitality, Tax Increment and Stormwater Bonds Aggregate Debt Service $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23 '24 '25 '26 '27 '28 '29 '30 '31 '32 '33 Hospitality Tax Tax Increment Stormwater Recovery Zone 35

36 GO Principal Outstanding By Year $20,000 Total Outstanding Principal (in thousands) $18,000 $16,000 $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 16,805 16,145 15,450 14,740 14,015 13,225 12,525 11,815 11,095 10,310 9,515 9,105 8,660 8,200 7,720 7,220 6,700 6,155 5,585 4,985 4,355 3,695 3,000 2,575 $

37 Total GO Debt Per Assessed Valuation % Total GO Debt Per A ssessed V aluation 8% 5% 3% 6.09% 5.50% 5.04% 3.96% 3.48% 4.20% 3.70% 3.27% 7.09% 6.61% *Estimated 0% * 37

38 General Obligation Debt Margin City s Legal Debt Margin FY FY FY FY 12-13* Assessed Value $228,345,160 $231,535,982 $242,372,603 $248,318,614 8% Debt Limit 18,267,613 18,522,879 19,389,808 19,865,489 Total Existing Outstanding Debt (8,445,000) (18,180,000) (17,185,000) (16,405,000) Legal Debt Margin $ 9,822,613 $ 342,879 $ 2,204,808 $ 3,460,489 * Estimated 38

39 Outstanding Overlapping Debt June 30, 2012 Percent Total Assessed City Share Applicable Debt Value of Debt to City City of Rock Hill $17,185,000 $242,372,603 $17,185, % York County $57,630,000 $1,110,313,000 $12,390, % Rock Hill Schools $161,185,000 $430,524,118 $91,069, % Total $236,000,000 $120,644,525 39

40 Net Direct Debt to Market Value Fiscal Year True Property Value Tax Supported Debt City Direct Debt to Market Value ,445,317,094 17,185, % ,353,287,475 7,480, % ,201,872,010 8,445, % ,842,663,103 9,385, % ,809,147,588 7,435, % ,225,746,395 8,165, % ,859,500,946 8,870, % ,726,744,092 9,295, % ,618,257,073 9,875, % ,609,786,674 4,900, % 40

41 III. Downtown Redevelopment Area 41

42 Downtown Redevelopment Project Area The City of Rock Hill is proposing to issue approximately $10 million Tax Increment Bonds, Series 2013 A&B to fund projects in the Expanded Downtown Redevelopment Area that encompasses the City s historic core around which the community was developed in In the 1960 s, the City s downtown experienced a decline due to the growth of suburban shopping centers and residential development. The Downtown Redevelopment Plan was established in 1988 and encompasses 48.5 acres in the central business district of Rock Hill. The 2013 Downtown Redevelopment Projects, referred to as Old Town East, is a public-private redevelopment project designed to support new private investment on the east side of downtown Rock Hill. This mixed use development centered at the intersection of East Main Street and Elizabeth Lane, spearheaded by ComporiumCommunications, a Rock Hill-based cable, internet and security business, Old Town East will begin with a 48,000 square foot office building set to begin construction in the summer of Future projects include a hotel ( construction) and additional office and retail spaces. Today the area is the heart of the City s newest economic development initiative, The Knowledge Park, a one-square-mile area between Downtown Rock Hill and Winthrop University and is York County s largest employment center with approximately 5,500 jobs. Once completed, the Knowledge Park will be home to a mixed use development district linking Downtown to Winthrop University, with a strong emphasis on attracting jobs and businesses. 42

43 Downtown Redevelopment Project Area 43

44 Historical Revenues Downtown Redevelopment Area Fiscal Year Tax Year Tax Rate Total Assessed Value Original Assessed Value Incremental Assessed Value City County/ School Total Downtown 2007 $1.65 M TIF Coverage ,475,676 1,354,910 1,120, , , , , ,510,478 1,354,910 1,155, , , , , ,816, ,248 1,030,998 97, , , , ,745, , ,130 91, , , , ,738, , ,589 90, , , ,

45 Major Property Taxpayers Property Owner Rock Hill Telephone DBA Comporium Communications East Coast Newspapers Type of Business Original Assessed Value 2012 Assessed Value Increment Added Telephone/Cable TV 807, ,034 43,156 Newspaper Reporting/Printing/Distribution 76, ,500 39,264 RC&W Partnership Commercial Real Estate 74,152 77,442 3,290 First Citizens Bank & Trust Bank Building 60,882 72,444 11,562 First State Investors Bank Building 58, ,798 60,100 Main Street Properties Commercial Real Estate 16, , ,942 Mains Street East LLC Commercial Real Estate 11, , ,808 Dalton Properties Residential Condominiums 10,146 79,180 69,034 Kimbrells Investment Retail Furniture Store 2,546 71,874 69,328 Piedmont Regional MLS Board of Realtors Office and Meeting Space 5,970 64,530 58,560 DARK III LLC Call Center Operations Tax Exempt 33,348 33,648 45

46 Tax Increment Financing Overview Downtown Redevelopment Area Following are a list of projects the City will proposes to fund with the issuance of these bonds: Improvements to streets, sidewalks, lighting, water and sewer infrastructure, storm drainage, intersection and signalization; Public park improvements; A public parking structure; Professional services necessary in connection with such projects; and Related costs associated with the foregoing. 46

47 Tax Increment Financing Overview Series 2013A&B Bond details Series 2013A - approximately $6.5 million; tax-exempt Series 2013B approximately $3.5 million; taxable(public parking structure) FinalMaturityofApril1,2039 Approximately level debt service Bond insurance/surety policy The Series 2013A&B Bonds will be secured by a pledge of the Tax Increment Revenues in the Expanded Downtown Redevelopment Area and the Combined Utility System Revenues Pledge of Combined Utility System Revenues shall be: junior and subordinate to outstanding Combined Utility System Revenue Bonds; subordinatetothepledgethereofforpaymentofthesrfloans; on a parity with any tax increment bonds previously issued and outstanding or hereafter issued by the City for any redevelopment project area within the City; and priortothepledgethereofforpaymentofthedhecnotes. 47

48 Tax Increment Projected Revenues Downtown Redevelopment Area Please Refer to Projected Revenues/Coverage Handout 48

49 IV. Utility System Overview 49

50 Utility System Overview The City operates the Electric, Water and Sewer System - providing utilities to over 95,000 customers The Rock Hill City Council is the rate setting body for all utilities -no State or other authority regulates the City s utility rates 50

51 Electric System 51

52 Electric System Overview Established in 1911 The City serves 33,142 customers inside and outside the City limits The electric service area covers square miles 52

53 Electric System Overview Rock Hill s Purchased Power represents 32% of PMPA s output City operates a standby/peak generation unit at the Manchester Wastewater Treatment Plant site 53

54 Electric System Overview Additional standby/peak generation units can be found at the City s Operations Center, City Hall, Main Fire Station, and Law Center Load switches for water heaters and air conditioner compressors 54

55 Trend in Electric Customers ,000 Total Electric Customers 30,000 25,000 20,000 15,000 10,000 25,487 26,252 26,906 27,911 29,088 29,584 29,618 29,843 29,711 29,725 5, ,088 3,146 3,221 3,245 3,321 3,333 3,255 3,361 3,415 3, Residential Commercial/Industrial Source: City of Rock Hill, Finance Department As of June 30, 2012, 92.6% of the electric system customers were located inside the City limits. 55

56 Electric Customers Top 10 Customers Customer Name Services Provided or Type of Business Annual kwh Annual Revenues (%of total System) City of Rock Hill Municipal Government 35,746,413 3,277, % Rock Hill School District Elementary/Secondary 23,025,621 2,474, % Education Piedmont Medical Center Hospital 16,928,371 1,328, % Comporium Telephone/Cable TV 10,742, , % Communications Wal Mart Department Store 9,845, , % York Technical College Technical Education 7,374, , % Lexington Medical Manufacturer 8,745, , % Food Lion, LLC Retail Grocery Store 7,868, , % Bi-Lo, LLC Retail Grocery Store 7,247, , % Winthrop University University 5,091, , % Total 132,617,229 11,703, % Note: Number of meters affects ratio of kwh to revenues. Portions of Winthrop University are not served by the City s electric system. 56

57 Rock Hill s Electric Rates From 2002/ /13 Monthly Residential Electric Rate (1000 kwh $120 $100 $80 $60 $40 $20 $0 $ $ $ $97.04 $84.46 $86.15 $87.87 $89.18 $90.30 $92.10 $93.94 '02/03 '03/04 '04/05 '05/06 '06/07 '07/08 '08/09 '09/10 '10/11 '11/12 '12/13 57

58 Comparison of Electric Rates Rock Hill ResidentialRates Compared to S.C. Cities, PMPA Cities, Regional Cities, & York County Cities $148 $140 $140 $140 $140 $133 $131 $128 $127 $118 $118 $117 $117 $117 $117 $117 $117 $117 $117 $116 $116 $109 $109 $108 $107 $101 $98 $ Clinton (PMPA) 2. Columbia (SCE&G) 3. Charleston (SCE&G) 4. N. Charlstn (SCE&G) 5. Mt. Pleasant (SCE&G) 6. W'minster (PMPA) 7. Laurens (PMPA) 8. Gastonia (Electricities) 9. Abbeville (PMPA) 10. Easley (PMPA) 11. Newberry (PMPA) 12. Greenville (Duke-SC) 13. Spartburg (Duke-SC) 14. Lancaster (Duke-SC) 15. Anderson (Duke-SC) 16. Fort Mill (Duke-SC) 17. Clover (Duke-SC) 18. Tega Cay (Duke-SC) 19. York (Duke-SC) 20. Monroe (Electricities) 21. Rock Hill (13) 22. Florence (Progress) 23. Sumter (Progress) 24. Charlotte (Duke-NC) 25. Greer (PMPA) 26. Concord (Electricities) 27. Union (PMPA) 28. Gaffney (PMPA) 58

59 Comparison of Electric Rates Rock Hill Commercial/IndustrialRates Compared to S.C. Cities, PMPA Cities, Regional Cities, & York County Cities 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1, $4,256 $3,722 $3,583 $3,583 $3,583 $3,582 $3,096 $3,034 $3,026 $2,916 $2,805 $2,791 $2,788 $2,695 $2,563 $2,471 $2,407 $2,361 $2,269 $2,269 $2,193 $2,193 $2,193 $2,193 $2,193 $2,193 $2,193 $2, W'minster (PMPA) 2. Clinton (PMPA) 3. Charleston (SCE&G) 4. N. Charlstn (SCE&G) 5. Mt. Pleasant (SCE&G) 6. Columbia (SCE&G) 7. Concord (Electricities) 8. Easley (PMPA) 9. Gastonia (Electricities) 10. Newberry (PMPA) 11. Rock Hill (PMPA) (12) 12. Abbeville (PMPA) 13. Gaffney (PMPA) 14. Union (PMPA) 15. Monroe (Electricities) 16. Laurens (PMPA) 17. Greer (PMPA) 18. Charlotte (Duke-NC) 19. Florence (Progress) 20. Sumter (Progress) 21. Greenville (Duke-SC) 22. Spartburg (Duke-SC) 23. Lancaster (Duke-SC) 24. Anderson (Duke-SC) 25. Fort Mill (Duke-SC) 26. Clover (Duke-SC) 27. Tega Cay (Duke-SC) 28. York (Duke-SC) 59

60 Water System 60

61 Water System Overview Established in 1911 The City serves 29,427 customers inside and outside the City limits The City serves approximately 34,000 water meters The water service area covers square miles 61

62 Water System Overview Raw water intake on Lake Wylie; expected to be sufficient through 2030 Raw water is currently pumped through a 54, 20,000 foot line to the water filter plant 62

63 Water System Overview Water is treated and pumped into a 382 mile water distribution system 3.5 million gallons of elevated storage 3.0 million gallons of ground storage 36 MGD Water Filter Plant with capacity for 60 MGD 63

64 Water System Overview Current average flow of MGD for 2012 Peak flow of MGD for 2012 The City has current water agreements with the Town of Fort Mill, County of York, and City of York 64

65 Trend in Water Customers ,000 30,000 25,000 24,040 24,921 25,903 26,927 28,075 28,688 28,779 29,288 29,357 29,427 Total Water Customers 20,000 15,000 10,000 5, Water Customers Source: City of Rock Hill, Finance Department. As of June 30, 2012, 83.3% of the water system customers were located within the City limits. 65

66 Average Day MGD Average Day MGD Average Day MGD* *Average Day MGD based on raw water usage. Source: City of Rock Hill, Finance Department. 66

67 Water System Top 10 Customers Customer Name Services Provided or Type of Business Annual Water Consumption (Gallons) Annual Revenue Revenues (% of Total System) Town of Fort Mill Municipal Government 1,346,750,000 1,894, % York County County Government 414,193, , % City of Rock Hill Municipal Government 60,523, , % Resolute Forest Paper Manufacturing 93,339, , % Products Winthrop University University 78,534, , % South Wood Realty Real Estate 27,841,884 97, % Power Construction Real Estate 24,944, , % Paces River Community Brookstone Communities National Welders Supply Real Estate 23,561,080 92, % Real Estate 11,594,202 60, % Supplier 18,750,490 53, % Total 2,103,375,651 3,306, % 67

68 Rock Hill s Water Rates 2002/ /13 Monthly Water Rate (7,500 Gallons) $20 $15 $10 $5 $0 $21.41 $21.41 $20.39 $19.42 $19.42 $19.42 $18.52 $18.52 $18.52 $15.61 $16.84 '02/03 '03/04 '04/05 '05/06 '06/07 '07/08 '08/09 '09/10 '10/11 '11/12 '12/13 68

69 Comparison of Water Rates Rock Hill ResidentialRates Compared to S.C. Cities, PMPA Cities, Regional Cities, & York County Cities $50 $45 $40 $35 $30 $25 $20 $15 $10 $5 $0 $44 $44 $44 $42 $40 $40 $39 $38 $34 $33 $32 $31 $29 $28 $26 $26 $25 $25 $24 $23 $22 $21 $20 $19 $19 $17 $16 $ Concord 2. Clover 3. Laurens 4. Tega Cay 5. Lancaster 6. N. Charlstn 7. Anderson 8. York 9. Abbeville 10. Fort Mill 11. Easley 12. Mt. Pleasant 13. Union 14. Spartburg 15. Florence 16. Monroe 17. W'minster 18. Clinton 19. Newberry 20. Charleston 21. Sumter 22. Rock Hill (22) 23. Columbia 24. Gaffney 25. Charlotte 26. Greer 27. Gastonia 28. Greenville 69

70 Comparison of Water Rates Rock Hill CommercialRates Compared to S.C. Cities, PMPA Cities, Regional Cities, & York County Cities C om m ercial R ate (145,000 G allo ns)... $900 $800 $700 $600 $500 $400 $300 $200 $100 $0 $805 $739 $739 $663 $578 $554 $512 $509 $488 $487 $476 $428 $427 $420 $359 $353 $337 $332 $332 $326 $307 $286 $279 $216 $ $206 $193 $ Clover 2. Concord 3. Laurens 4. Tega Cay 5. Mt. Pleasant 6. Lancaster 7. York 8. Gastonia 9. N. Charlstn 10. Abbeville 11. Fort Mill 12. Charlotte 13. Easley 14. Spartburg 15. Clinton 16. Anderson 17. Union 18. Monroe 19. Columbia 20. Newberry 21. W'minster 22. Florence 23. Charleston 24. Rock Hill(23) 25. Greer 26. Greenville 27. Sumter 28. Gaffney 70

71 Comparison of Water Rates Rock Hill IndustrialRates Compared to S.C. Cities, PMPA Cities, Regional Cities, & York County Cities $900 $800 $700 $600 $500 $400 $300 $200 $100 $0 $805 $740 $739 $663 $604 $556 $516 $512 $512 $505 $469 $456 $453 $387 $366 $366 $353 $ $326 $307 $294 $292 $224 $216 $206 $187 $142 $25 1. Clover 2. Laurens 3. Concord 4. Tega Cay 5. Mt. Pleasant 6. Lancaster 7. N. Charlstn 8. York 9. Abbeville 10. Fort Mill 11. Spartburg 12. Charlotte 13. Easley 14. Columbia 15. Clinton 16. Union 17. Anderson 18. Monroe 19. Newberry 20. W'minster 21. Charleston 22. Florence 23. Greer 24. Rock Hill(24) 25. Greenville 26. Sumter 27. Gaffney 28. Gastonia 71

72 Wastewater System 72

73 Wastewater System Overview Established in 1920 The City serves 30,824 customers inside and outside the City limits The wastewater service area covers square miles 73

74 Wastewater System Overview Wastewater is collected from a 366 mile sewer collection system 20 MGD Wastewater Treatment Plant Average daily flow for 2012 was 9.43 MGD Peak daily flow for 2012 was MGD 74

75 Wastewater System Overview The City has current wastewater agreements with the Town of Fort Mill, York County, and City of TegaCay 75

76 Trend in Wastewater Customers ,000 30,000 25,000 24,448 25,120 26,427 27,735 28,828 29,541 29,786 30,286 30,568 30,824 20,000 15,000 10,000 5, Wastewater Customers 76

77 Wastewater System Top Ten Customers Customer Name Services Provided or Type of Business Annual Revenues ( % of Total System) York County County Government 2,041, % City of Tega Cay Municipal Government 215, % Inchem Corporation Chemical Manufacturer 161, % Winthrop University University 158, % Rock Hill School Public School District 156, % District 3 Piedmont Medical Center Hospital 120, % PBI Performance Manufacturer 100, % Products Powers Construction Real Estate 82, % City of Rock Hill Municipal Government 80, % Paces River Communities Real Estate 72, % Total 3,190, % 77

78 Rock Hill s Wastewater Rates 2002/ /13 Monthly Wastewater Rate (7,500 Gallons) $45 $40 $35 $30 $25 $20 $15 $10 $5 $29.33 $31.70 $34.87 $34.87 $34.87 $34.87 $38.36 $38.36 $42.20 $42.20 $44.31 $0 '02/03 '03/04 '04/05 '05/06 '06/07 '07/08 '08/09 '09/10 '10/11 '11/12 '12/13 78

79 Comparison of Wastewater Rates Rock Hill ResidentialRates Compared to S.C. Cities, PMPA Cities, Regional Cities, & York County Cities $80 $60 $40 $20 $0 $84 $58 $55 $50 $50 $50 $48 $46 $45 $44 $44 $43 $43 $42 $42 $42 $41 $40 $39 $38 $38 $38 $38 $37 $35 $32 $31 $ Charleston 2. Greenville 3. N. Charlstn 4. W'minster 5. Spartburg 6. Clinton 7. Charlotte 8. Clover 9. Fort Mill 10. Rock Hill(8) 11. Gastonia 12. Concord 13. Lancaster 14. Mt. Pleasant 15. Laurens 16. Florence 17. Tega Cay 18. Abbeville 19. Easley 20. Monroe 21. York 22. Anderson 23. Greer 24. Union 25. Newberry 26. Columbia 27. Sumter 28. Gaffney 79

80 Comparison of Wastewater Rates Rock Hill CommercialRates Compared to S.C. Cities, PMPA Cities, Regional Cities, & York County Cities $1,500 $1,000 $500 $0 $1,280 $936 $859 $847 $842 $794 $784 $772 $768 $720 $696 $654 $650 $632 $596 $595 $586 $567 $555 $543 $521 $515 $507 $493 $476 $431 $413 $ Charleston 2. Spartburg 3. N. Charlstn 4. Charlotte 5. Clinton 6. W'minster 7. Mt. Pleasant 8. Concord 9. Greenville 10. Anderson 11. Laurens 12. Tega Cay 13. Fort Mill 14. Abbeville 15. Clover 16. Lancaster 17. Gastonia 18. Columbia 19. Greer 20. Rock Hill(17) 21. Union 22. York 23. Monroe 24. Newberry 25. Easley 26. Florence 27. Gaffney 28. Sumter 80

81 Comparison of Wastewater Rates Rock Hill IndustrialRates Compared to S.C. Cities, PMPA Cities, Regional Cities, & York County Cities $2,500 $2,000 $1,500 $1,000 $500 $0 $2,183 $1,613 $1,500 $1,476 $1,461 $1,446 $1,346 $1,340 $1,335 $1,241 $1,194 $1,155 $1,141 $1,123 $1,056 $1,018 $1,016 $980 $976 $922 $891 $880 $877 $809 $809 $726 $571 $ Charleston 2. Spartburg 3. N. Charlstn 4. Charlotte 5. Greenville 6. Clinton 7. Mt. Pleasant 8. Greer 9. Concord 10. Anderson 11. Laurens 12. Fort Mill 13. Abbeville 14. Tega Cay 15. Gastonia 16. Lancaster 17. Clover 18. Rock Hill(18) 19. Columbia 20. Monroe 21. Union 22. York 23. Newberry 24. Easley 25. Florence 26. Gaffney 27. Sumter 28. W'minster 81

82 Utility System Financial Overview 82

83 Electric Cost to Serve 2007/ / / / / /13* 2013/14* OPERATING REVENUES Sales 69,969,207 69,991,412 73,799,817 78,109,884 78,236,905 84,125,758 90,408,669 Other User Charges 3,130,510 3,184,448 3,433,212 4,156,350 4,444,748 3,849,782 4,160,253 73,099,717 73,175,860 77,233,029 82,266,234 82,681,653 87,975,540 94,568,922 OPERATING EXPENSES Purchased Power 54,089,857 54,704,270 57,056,584 60,910,535 63,596,858 68,022,076 74,127,833 System Operations 4,697,668 5,804,884 6,036,363 6,780,647 8,714,578 8,932,442 9,155,754 Depreciation 3,512,726 3,642,433 3,766,567 4,247,635 4,372,193 4,525,220 4,683,602 General and Administrative 2,732,634 2,732,947 2,920,055 3,051,589 2,545,034 2,608,660 2,673,876 65,032,885 66,884,534 69,779,569 74,990,406 79,228,663 84,088,398 90,641,065 NONOPERATING REVENUES (EXPENSES) Interest Income 533, , , , , , ,000 Interest Expense (920,350) (1,137,297) (1,010,689) (1,071,150) (1,179,127) (1,360,528) (1,319,395) Other (35,063) (902) 84,042 (18,631) (20,000) (20,000) (20,000) (421,654) (891,289) (743,124) (887,613) (997,816) (1,180,528) (1,139,395) NET INCOME 7,645,178 5,400,037 6,710,336 6,388,215 2,455,174 2,706,614 2,788,462 Franchise Fee 156, , , , , , ,013 Rate of Return 156, , , , , , ,013 PILOT (land & buildings) 67,595 70,974 74,523 77, , , ,942 PILOT (equipment) 634, , , , , , ,486 Operating Transfer 1,014,699 1,055,175 1,116,888 1,208,665 1,255,464 1,228,407 1,259,454 TOTAL DIFFERENCE 6,630,479 4,344,862 5,593,449 5,179,550 1,199,710 1,478,207 1,529,008 *projected 83

84 Electric System Summary of Revenues & Expenses $90 Electric Revenues & Expenses (in millions) $80 $70 $60 $50 $40 $30 $20 $10 $ '00/01 '01/02 '02/03 '03/04 '04/05 '05/06 '06/07 '07/08 '08/09 '09/10 '10/11 Projected All numbers are prior to transfers. Revenues Expenses 84

85 Electric Cost to Serve 2012/13* 2013/14* 2014/15* 2015/16* 2016/17* 2017/18* OPERATING REVENUES Sales 84,125,758 90,408,669 96,827, ,714, ,607, ,796,595 Other User Charges 3,849,782 4,160,253 4,004,281 4,084,367 4,166,054 4,249,375 87,975,540 94,568, ,831, ,799, ,773, ,045,970 OPERATING EXPENSES Purchased Power 68,022,076 74,127,833 80,344,396 85,229,335 87,629,393 90,275,801 System Operations 8,932,442 9,155,754 9,384,647 9,619,264 9,859,745 10,106,239 Depreciation 4,525,220 4,683,602 4,847,529 5,017,192 5,192,794 5,374,542 General and Administrative 2,608,660 2,673,876 2,740,723 2,809,241 2,879,472 2,951,459 84,088,398 90,641,065 97,317, ,675, ,561, ,708,040 NONOPERATING REVENUES (EXPENSES) Interest Income 200, , , , , ,000 Interest Expense (1,360,528) (1,319,395) (1,278,829) (1,238,263) (1,197,697) (1,157,131) Other (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (1,180,528) (1,139,395) (1,098,829) (1,058,263) (1,017,697) (977,131) NET INCOME 2,706,614 2,788,462 2,415,841 3,065,879 3,194,209 3,360,799 Franchise Fee 192, , , , , ,469 Rate of Return 192, , , , , ,469 PILOT (land & buildings) 134, , , , , ,421 PILOT (equipment) 708, , , , , ,829 Operating Transfer 1,228,407 1,259,454 1,273,546 1,312,390 1,352,587 1,394,188 TOTAL DIFFERENCE 1,478,207 1,529,008 1,142,295 1,753,489 1,841,621 1,966,611 *projected ^ 4% increase 2012/13 6% increase 2013/14 85

86 Water Cost to Serve 2007/ / / / / /13* 2013/14* OPERATING REVENUES Sales 11,386,680 11,128,718 11,713,386 12,676,303 12,899,237 12,436,353 13,347,148 Impact Fees 208, , , , , , ,000 Other User Charges 343, , , , , , ,691 11,938,595 11,798,322 12,151,960 13,101,410 13,375,009 12,966,715 13,890,839 OPERATING EXPENSES System Operations 4,672,569 4,476,526 3,126,139 4,977,300 5,076,846 5,203,767 5,333,861 Depreciation 1,995,879 2,189,955 2,386,828 2,185,606 2,251,174 2,329,965 2,411,514 General and Administrative 1,547,159 1,625,084 1,652,188 1,787,796 1,717,440 1,760,376 1,804,385 8,215,607 8,291,565 7,165,155 8,950,702 9,045,460 9,294,108 9,549,761 NONOPERATING REVENUES (EXPENSES) Interest Income 369, , , , , , ,000 Interest Expense (1,192,072) (1,552,569) (1,895,724) (1,964,360) (2,068,796) (2,203,637) (2,236,049) Other 10, , (811,876) (1,347,494) (1,352,890) (1,725,646) (1,918,796) (2,053,637) (2,086,049) NET INCOME 2,911,112 2,159,263 3,633,915 2,425,062 2,410,753 1,618,970 2,255,029 Franchise Fee 596, , , , , , ,542 Rate of Return 596, , , , , , ,542 PILOT (land & buildings) 102, , , , , , ,078 PILOT (equipment) 428, , , , , , ,272 Operating Transfer 1,724,795 1,737,314 1,800,552 1,918,911 2,128,207 2,119,005 2,198,434 TOTAL DIFFERENCE 1,186, ,949 1,833, , ,546 (500,035) 56,596 *projected 86

87 Water System Summary of Revenues & Expenses $14 Water Revenues & Expenses (in millions) $12 $10 $8 $6 $4 $2 $ '00/01 '01/02 '02/03 '03/04 '04/05 '05/06 '06/07 '07/08 '08/09 '09/10 '11/12 *Projected All numbers are prior to transfers. Revenues Expenses 87

88 Water Cost to Serve 2012/13* 2013/14* 2014/15* 2015/16* 2016/17* 2017/18* OPERATING REVENUES Sales 12,436,353 13,347,148 13,858,503 14,135,673 14,418,387 14,706,754 Impact Fees 217, , , , , ,757 Other User Charges 312, , , , , ,962 12,966,715 13,890,839 14,411,381 14,699,609 14,993,601 15,293,473 OPERATING EXPENSES System Operations 5,203,767 5,333,861 5,467,208 5,603,888 5,743,985 5,887,585 Depreciation 2,329,965 2,411,514 2,495,917 2,583,274 2,673,689 2,767,268 General and Administrative 1,760,376 1,804,385 1,849,495 1,895,732 1,943,126 1,991,704 9,294,108 9,549,761 9,812,620 10,082,895 10,360,800 10,646,557 NONOPERATING REVENUES (EXPENSES) Interest Income 150, , , , , ,000 Interest Expense (2,203,637) (2,236,049) (2,152,052) (2,068,055) (1,984,058) (1,900,061) Other (2,053,637) (2,086,049) (2,002,052) (1,918,055) (1,834,058) (1,750,061) NET INCOME 1,618,970 2,255,029 2,596,709 2,698,659 2,798,743 2,896,855 Franchise Fee 648, , , , , ,674 Rate of Return 648, , , , , ,674 PILOT (land & buildings) 156, , , , , ,249 PILOT (equipment) 665, , , , , ,575 Operating Transfer 2,119,005 2,198,434 2,282,862 2,345,353 2,409,768 2,476,172 TOTAL DIFFERENCE (500,035) 56, , , , ,683 *projected 88

89 Wastewater Cost to Serve 2007/ / / / / /13* 2013/14* OPERATING REVENUES Sales 14,404,044 15,861,794 16,384,562 17,532,479 17,536,668 19,189,535 19,480,476 Impact Fees 426, , , , , , ,000 Other User Charges 337, , , , , , ,691 15,168,524 16,530,264 16,885,759 18,018,505 18,097,966 19,809,763 20,124,167 OPERATING EXPENSES System Operations 6,967,501 6,340,143 8,193,925 7,501,298 7,651,324 7,842,607 8,038,672 Depreciation 3,138,134 3,734,617 3,629,383 3,312,090 3,960,610 4,099,231 4,242,704 General and Administrative 1,836,950 1,830,703 1,841,282 1,868,989 1,654,408 1,695,768 1,738,162 11,942,585 11,905,463 13,664,590 12,682,377 13,266,342 13,637,607 14,019,539 NONOPERATING REVENUES (EXPENSES) Interest Income 329, , , , , , ,000 Interest Expense (1,246,301) (1,602,785) (1,688,080) (1,798,447) (1,900,978) (1,542,042) (1,648,389) Other (13,140) - 66, (929,733) (1,487,809) (1,492,734) (1,647,143) (1,800,978) (1,442,042) (1,548,389) NET INCOME 2,296,206 3,136,992 1,728,435 3,688,985 3,030,646 4,730,115 4,556,239 Franchise Fee 758, , , , , ,488 1,006,208 Rate of Return 758, , , , , ,488 1,006,208 PILOT (land & buildings) 338, , , , , , ,649 PILOT (equipment) 483, , , , , , ,419 Operating Transfer 2,339,021 2,516,303 2,595,017 2,744,549 2,878,462 3,092,388 3,126,485 TOTAL DIFFERENCE (42,815) 620,689 (866,582) 944, ,184 1,637,727 1,429,754 *projected 89

90 Wastewater System Summary of Revenues & Expenses $20 Wastewater Revenues & Expenses (in millions) $18 $16 $14 $12 $10 $8 $6 $4 $2 $ '00/01 '01/02 '02/03 '03/04 '04/05 '05/06 '06/07 '07/08 '08/09 '09/10 '11/12 All projections are prior to transfers. Revenues Expenses 90

91 Wastewater Cost to Serve 2012/13* 2013/14* 2014/15* 2015/16* 2016/17* 2017/18* OPERATING REVENUES Sales 19,189,535 19,480,476 19,871,183 20,268,607 20,673,979 21,087,458 Impact Fees 307, , , , , ,204 Other User Charges 312, , , , , ,962 19,809,763 20,124,167 20,525,311 20,935,817 21,354,534 21,781,624 OPERATING EXPENSES System Operations 7,842,607 8,038,672 8,239,639 8,445,630 8,656,771 8,873,190 Depreciation 4,099,231 4,242,704 4,391,199 4,544,891 4,703,962 4,868,601 General and Administrative 1,695,768 1,738,162 1,781,616 1,826,157 1,871,811 1,918,606 13,637,607 14,019,539 14,412,455 14,816,678 15,232,544 15,660,397 NONOPERATING REVENUES (EXPENSES) Interest Income 100, , , , , ,000 Interest Expense (1,542,042) (1,648,389) (1,557,867) (1,467,345) (1,376,823) (1,286,301) Other (1,442,042) (1,548,389) (1,457,867) (1,367,345) (1,276,823) (1,186,301) NET INCOME 4,730,115 4,556,239 4,654,989 4,751,794 4,845,167 4,934,926 Franchise Fee 990,488 1,006,208 1,026,266 1,046,791 1,067,727 1,089,081 Rate of Return 990,488 1,006,208 1,026,266 1,046,791 1,067,727 1,089,081 PILOT (land & buildings) 415, , , , , ,250 PILOT (equipment) 695, , , , , ,945 Operating Transfer 3,092,388 3,126,485 3,208,399 3,295,685 3,385,641 3,478,357 TOTAL DIFFERENCE 1,637,727 1,429,754 1,446,590 1,456,109 1,459,526 1,456,569 *projected 91

92 Utility System Cost to Serve 2007/ / / / / /13* 2013/14* OPERATING REVENUES Sales 95,759,931 96,981, ,897, ,318, ,672, ,751, ,236,293 Impact Fees 635, , , , , , ,000 Other User Charges 3,811,509 3,999,164 4,042,536 4,796,852 5,057,380 4,474,667 4,797, ,206, ,504, ,270, ,386, ,154, ,752, ,583,928 OPERATING EXPENSES Purchased Power 54,089,857 54,704,270 57,056,584 60,910,535 63,596,858 68,022,076 74,127,833 System Operations 16,337,738 16,621,553 17,356,427 19,259,245 21,442,748 21,978,817 22,528,287 Depreciation 8,646,739 9,567,005 9,782,778 9,745,331 10,583,977 10,954,416 11,337,821 General and Administrative 6,116,743 6,188,734 6,413,525 6,708,374 5,916,882 6,064,804 6,216,424 Other 85,191,077 87,081,562 90,609,314 96,623, ,540, ,020, ,210,365 NONOPERATING REVENUES (EXPENSES) Interest Income 1,232, , , , , , ,000 Interest Expense (3,358,723) (4,292,651) (4,209,518) (4,833,957) (5,148,901) (5,106,207) (5,203,833) Other (37,303) (902) 472,542 (18,631) (20,000) (20,000) (20,000) (2,163,263) (3,726,592) (3,286,976) (4,260,402) (4,717,590) (4,676,207) (4,773,833) NET INCOME 12,852,496 10,696,292 12,072,686 12,502,262 7,896,573 9,055,699 9,599,730 Franchise Fee 1,511,881 1,575,652 1,623,547 1,763,813 1,795,886 1,831,313 1,908,763 Rate of Return 1,511,881 1,575,652 1,623,547 1,763,813 1,795,886 1,831,313 1,908,763 PILOT (land & buildings) 508, , , , , , ,668 PILOT (equipment) 1,545,788 1,623,078 1,704,231 1,760,922 1,990,417 2,070,034 2,062,178 Operating Transfer 5,078,514 5,308,792 5,512,456 5,872,125 6,262,132 6,439,800 6,584,372 TOTAL DIFFERENCE 7,773,982 5,387,500 6,560,230 6,630,137 1,634,441 2,615,898 3,015,358 *projected 92

93 $140 $120 $100 $80 $60 $40 $20 $0 Utility System Summary of Revenues & Expenses '03/04 '04/05 '05/06 '06/07 '07/08 '08/09 '09/10 '10/11 '11/12* Revenues Expenses 93 '02/03 '01/02 '00/ Utility System Revenues & Expenses (in millions) *Unaudited

94 Utility System Cost to Serve 2012/13* 2013/14* 2014/15* 2015/16* 2016/17* 2017/18* OPERATING REVENUES Sales 115,751, ,236, ,557, ,119, ,699, ,590,808 Impact Fees 525, , , , , ,961 Other User Charges 4,474,667 4,797,635 4,654,411 4,747,499 4,842,449 4,939, ,752, ,583, ,768, ,434, ,121, ,121,067 OPERATING EXPENSES Purchased Power 68,022,076 74,127,833 80,344,396 85,229,335 87,629,393 90,275,801 System Operations 21,978,817 22,528,287 23,091,494 23,668,782 24,260,501 24,867,014 Depreciation 10,954,416 11,337,821 11,734,645 12,145,357 12,570,445 13,010,410 General and Administrative 6,064,804 6,216,424 6,371,835 6,531,131 6,694,409 6,861,769 Other 107,020, ,210, ,542, ,574, ,154, ,014,994 NONOPERATING REVENUES (EXPENSES) Interest Income 450, , , , , ,000 Interest Expense (5,106,207) (5,203,833) (4,988,748) (4,773,663) (4,558,578) (4,343,493) Other (20,000) (20,000) (20,000) (20,000) (20,000) (20,000) (4,676,207) (4,773,833) (4,558,748) (4,343,663) (4,128,578) (3,913,493) NET INCOME 9,055,699 9,599,730 9,667,539 10,516,332 10,838,118 11,192,580 Franchise Fee 1,831,313 1,908,763 1,947,049 1,985,990 2,025,709 2,066,224 Rate of Return 1,831,313 1,908,763 1,947,049 1,985,990 2,025,709 2,066,224 PILOT (land & buildings) 707, , , , , ,921 PILOT (equipment) 2,070,034 2,062,178 2,141,902 2,227,579 2,316,682 2,409,349 Operating Transfer 6,439,800 6,584,372 6,764,807 6,953,428 7,147,996 7,348,717 TOTAL DIFFERENCE 2,615,898 3,015,358 2,902,733 3,562,904 3,690,122 3,843,863 *projected ^Electric 4% Rate Increase in 2012/13 and 6% proposed 2013/14 94

95 Financial Performance 2013 YTD 2013 Fiscal Year-To-Date Operating revenues for the first ten months of FY 2013 were about 3.4% below budget primarily due to uncharacteristically mild temperatures and above average rainfall. Operating Expenses for the same period were approximately 2.3% below budget. FY 2013 Projections indicate that utility revenues are likely to be approximately 3.5% below budget. Purchased power is currently below budget and is anticipated to fluctuate with revenues. To insure healthy results, some capital projects are being modified or delayed based upon revenue projections. YTD Thru April 30, 2013 Budget Actual Variance *Operating Revenue Electric $ 74,021,079 $ 71,430, % Water $ 11,956,530 $ 11,313, % Wastewater $ 16,307,178 $ 16,099, % Total Operating Revenue $102,284,787 $ 98,843, % *Operating Expenses Electric $ 74,021,079 $ 73,106, % Water $ 11,807,780 $ 12,196, % Wastewater $ 16,070,928 $ 14,611, % Total Operating Expenses $102,284,787 $ 99,915, % *Assumes a linear budget for revenue and expenses 95

96 Comparison of Electric/Water/Wastewater Rates Rock Hill Residential Rates Compared to S.C. Cities, PMPA Cities, Regional Cities, & York County Cities $280 $240 $200 $160 $120 $80 $40 $0 $247 $234 $223 $218 $214 $208 $207 $201 $200 $199 $195 $195 $192 $194 $193 $189 $188 $188 $189 $181 $180 $177 $177 $174 $165 $162 $162 $ Charleston 2. N. Charlstn 3. Clinton 4. Laurens 5. Mt. Pleasant 6. W'minster 7. Clover 8. Abbeville 9. Lancaster 10. Tega Cay 11. Fort Mill 12. Spartburg 13. Columbia 14. Anderson 15. York 16. Easley 17. Gastonia 18. Concord 19. Greenville 20. Rock Hill (21) 21. Monroe 22. Florence 23. Newberry 24. Charlotte 25. Union 26. Greer 27. Sumter 28. Gaffney 96

97 Comparison of Electric/Water/Wastewater Rates Rock Hill CommercialRates Compared to S.C. Cities, PMPA Cities, Regional Cities, & York County Cities $5,000 $4,000 $3,000 $2,000 $1,000 $0 $5,357 $5,157 $4,971 $4,958 $4,930 $4,607 $4,536 $3,962 $3,935 $3,906 $3,735 $3,664 $3,637 $3,597 $3,593 $3,582 $3,565 $3,510 $3,410 $3,347 $3,344 $3,343 $3,266 $3,220 $3,186 $3,166 $2,992 $2, W'minster 2. Charleston 3. Mt. Pleasant 4. N. Charlstn 5. Clinton 6. Concord 7. Columbia 8. Easley 9. Abbeville 10. Laurens 11. Newberry 12. Charlotte 13. Gastonia 14. Spartburg 15. Clover 16. Union 17. Rock Hill (16) 18. Tega Cay 19. Monroe 20. Fort Mill 21. Lancaster 22. Gaffney 23. Anderson 24. York 25. Greer 26. Greenville 27. Florence 28. Sumter 97