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City of Rock Hill,
South Carolina
Nov 21, 2008
1
Current City Ratings
In Determining Credit Quality – the Rating
Agencies will evaluate governmental
entities on the following criteria
– Local Economy
– Existing Debt
– Current Finances
– Management of the Government
2
Current City Ratings
Moody’s and Standard & Poor’s Rating Agencies issue
ratings on governments across the U.S.
Moody’s Standard & Poor’s
Aaa AAA
Aa AA Investment
A A Grade
Baa BBB
Ba BB
Less than
B B
Investment
Caa CCC
Grade
Ca C
C D
3
Current City Ratings
Within Credit Quality Bonds – there are
additional segregations on the rating
Moody’s Standard & Poor’s
Aaa AAA
Aa1 AA+
Aa2 AA
Aa3 AA-
A1 A+
A2 A
A3 A-
Baa1 BBB
4
Current City Ratings
The Rating Agencies have assigned the
following upgrades to the City of Rock Hill
General Government
– Standard and Poor’s: A- to A+
– Moody’s: A3 to A1
Combined Utility System
– Standard and Poor’s: BBB to A
– Moody’s: Baa1 to A2
5
Current City Ratings
A quick review of the City’s presentation
to the Rating Agencies reveals strengths in
all four areas that are considered:
– Local Economy
– Existing Debt
– Current Finances
General Government
Combined Utility System
– Management of the Government
6
I. Local Economy
7
City Population Growth
Since Last Decennial Census
70,000
64,858
61,620
Total Population
60,000 59,554
57,902
56,114
53,940
51,253
49,765
50,000
40,000
2000 2001 2002 2003 2004 2005 2006 2007
Source: U.S Census 8
Fastest-growing Municipalities in S.C.
Total Population Growth thru 2008
Mount Pleasant
Summerville
Rock Hill 15,093
Charleston
North Charleston
Columbia
Population Increase since 2000
Goose Creek
Myrtle Beach
Greer
Port Royal
Lexington
Mauldin
North Myrtle Beach
Aiken
Conway
Bluffton
Greenville
North Augusta
Hanahan
9
Source: U.S. Census 0 5,000 10,000 15,000 20,000
York County Total Labor Force
1990-2007
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
1990
0 20,000 40,000 60,000 80,000 100,000 120,000
Total Labor Force 10
Median Household Effective Buying Income
Among Highest in the State/Region in 2008
Concord $42,259
Charlotte $41,654
Monroe $38,151
Charleston $35,896
Rock Hill $34,654
Gastonia $34,539
Kannapolis $32,824
Columbia $31,485
Greenville $30,946
N. Charleston $29,682
Spartanburg $27,170
$0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000 $50,000
Source: Nielson Claritas 11
Per Capita Aggregate Household EBI
Among Highest in the State/Region in 2008
Charlotte $23,289
Charleston $21,379
Concord $19,928
Greenville $19,837
Rock Hill $17,768
Columbia $17,397
Gastonia $17,089
Monroe $16,168
Kannapolis $15,695
Spartanburg $15,423
N. Charleston $13,449
$0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000
Source: Nielson Claritas/US Census Bureau 12
Retail Sales & Growth Trends
City and County - Since 1990
$5,000 $ 4 ,9 5 9
$ 4 ,7 3 4
$4,500
$ 3 ,9 9 1
$4,000
Retail Sales (millions)
$ 3 ,6 7 4
$3,500 $ 3 ,2 8 5
$ 3 ,3 5 7
$ 3 ,1 7 2
$ 3 ,0 6 3
$3,000 $ 2 ,8 2 7
$ 2 ,4 9 5
$2,500 $ 2 ,3 7 9
$ 2 ,2 1 4
$2,000 $ 1 ,8 8 1
$ 1 ,9 8 1
$ 1 ,6 1 3 $ 1 ,6 3 3
$ 1 ,4 5 5 $ 1 ,5 0 3 $ 1 ,5 1 1
$1,500
$ 1 ,2 3 5
$ 1 ,0 7 6
$ 9 7 0 $ 1 ,0 2 0
$1,000 $781 $769
$921 $915
$809 $808 $836
$911
$601 $608 $649
$500
$0
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2003 2004 2005 2006 2007
City County
13
Source: South Carolina Department of Revenue
Major new Businesses in Rock Hill
Last 10 years
Compact Power Services (45 employees) TechPark – 1998
West Marine Products (285 employees) Firetower Road –
1998
Tyco Electronics – formerly AMP (449 employees) Porter
Road – 1995
State Farm Distribution Facility (25) Porter Road – 1997
ATS Carolina (95 employees) Waterford – 2000
Transaxle Manufacturing of America (150) Waterford –
2002
C.C. Dickson (74 employees) TechPark - 2000
Hyosung Corporation (40 employees) Waterford – 2002
Spirit/PalmettoNet (18 employees) TechPark – 2001
Atotech USA (178 employees) Waterford – 2001 expansion
Composite Resources (12 employees) TechPark – 2004
Performance Food Group (60 employees) Firetower – 2005
Atlas Copco (87 employees) Waterford – 2004
3D Systems Corp. (145 employees) Waterford – 2007
Williams & Fudge (150 employees) – Textile Corridor
2007 expansion
14
Major Business Centers
Within Rock Hill City Limits
Approximate
Location Employees Investment
TechPark Business Park 1,026 $ 66,050,000
Waterford Business Park 882 $126,000,000
Airport Industrial Park 599 $ 24,386,000
Southway Industrial Park 149 $ 12,402,000
Antrim Business Park 25 $ 3,500,000
Downtown 1,055 $ 37,680,000
Textile Corridor 200 $ 19,400,000
3,936 $289,418,000
15
II. Existing Debt
16
CITY OF ROCK HILL, SOUTH CAROLINA
General Obligation/COPs/TIF/Stormwater
Principal of Outstanding Debt
Gen Obligation Gen Obligation Gen Obligation Cert of Particip Tax Increment Tax Increment Stormwater Stormwater Stormwater
Year Series 1997 Series 2003 Series 2005 Series 2005 Series 2007 Series 2008A Series 2006A Series 2006B Series 2006C
1-Jan Principal Coupon Principal Coupon Principal Coupon Principal Coupon Principal Coupon Principal Coupon Principal Coupon Principal Coupon Principal Couponn Total .
2009 65,000 4.800% 200,000 5.000% 485,000 3.250% 460,000 3.000% 215,000 4.370% 0 2.910% 124,563 2.250% 84,754 3.750% 120,689 2.250% 1,755,006
2010 65,000 4.900% 250,000 3.250% 500,000 3.250% 475,000 3.000% 235,000 4.370% 0 2.910% 129,300 2.250% 86,677 3.750% 123.428 2.250% 1,864,405
2011 70,000 5.000% 250,000 3.250% 515,000 3.500% 490,000 3.250% 250,000 4.370% 0 2.910% 134,217 2.250% 88,644 3.750% 126.229 2.250% 1,924,090
2012 75,000 5.000% 250,000 3.500% 535,000 3.250% 505,000 3.500% 275,000 4.370% 2,750,000 2.910% 139,322 2.250% 90,656 3.750% 129.093 2.250% 4,749,069
2013 75,000 5.000% 275,000 3.250% 525,000 3.500% 295,000 4.370% 144,620 2.250% 92,713 3.750% 132,022 2.250% 1,539,354
2014 80,000 5.100% 275,000 3.375% 540,000 3.750% 315,000 4.370% 150,120 2.250% 94,816 3.750% 135,018 2.250% 1,589,954
2015 85,000 5.125% 300,000 3.500% 560,000 3.750% 155,829 2.250% 96,968 3.750% 138,081 2.250% 1,335,878
2016 90,000 5.125% 300,000 3.750% 580,000 4.000% 161,755 2.250% 99,168 3.750% 141,214 2.250% 1,372,137
2017 95,000 5.125% 300,000 3.750% 605,000 4.000% 167,907 2.250% 101,418 3.750% 144,419 2.250% 1,413,744
2018 100,000 5.125% 350,000 4.000% 630,000 4.000% 174,293 2.250% 103,719 3.750% 147,696 2.250% 1,505,708
2019 350,000 4.000% 655,000 4.000% 180,921 2.250% 106,073 3.750% 151,047 2.250% 1,443,041
2020 350,000 4.000% 680,000 4.000% 187,802 2.250% 108,480 3.750% 154,474 2.250% 1,480,756
2021 350,000 4.100% 710,000 4.000% 194,944 2.250% 110,941 3.750% 157,979 2.250% 1,523,864
2022 400,000 4.125% 735,000 4.000% 202,358 2.250% 113,458 3.750% 161,564 2.250% 1,612,380
2023 400,000 4.125% 765,000 4.000% 210,054 2.250% 116,033 3.750% 165,230 2.250% 1,656,317
2024 795,000 4.500% 218,042 2.250% 118,666 3.750% 168,979 2.250% 1,300,687
2025 835,000 4.500% 226,334 2.250% 121,358 3.750% 172,813 2.250% 1,355,506
2026 115,827 2.250% 61,534 3.750% 131, 929 2.250% 309,290
Total 800,000 4,600,000 2,035,000 10,545,000 1,585,000 15,120,000 3,018,206 1,796,076 7,352,000 29,731,185
Call Date 05/01/09@100% 04/01/13@100% Not Callable 01/01/15@100% Not Callable 05/01/09@100% Anytime@100% Anytime@100% Anytime@100%
Adv. Ref. 0 Times 0 Times N/A 0 Times N/A 0 Times 0 Times 0 Times 0 Times Weighted
Eligibility Eligible Eligible N/A Eligible N/A Eligible Eligible Eligible Eligible Avg. Int
Wt.Avg Rate
Int Rate 5.0434% 3.8167% 3.3133% 3.8789% 4.370% 2.910% 2.250% 3.750% 2.250% 3.3129%
17
General Obligation Bonds
Aggregate Debt Service
$1,200,000
$1,000,000
$800,000
$600,000
$400,000
$200,000
$0
'08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22
2005 Ref of 1993 A/B 1997 New Money 2003 New Money
18
GO Principal Outstanding
By Year
$10,000
Total Outstanding Principal (in thousands)
$8,000
$7,435
$6,685
$6,000 $5,870
$5,035
$4,175
$4,000 $3,825
$3,470
$3,085
$2,695
$2,300
$2,000 $1,850
$1,500
$1,150
$800
$400
$0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
19
Total GO Debt Per Capita
1999-2008
$500
$400
Total GO Debt Per Capita
$300
$200 $175.98
$160.52 $148.94
$128.37 $125.80 $132.51
$112.94 $102.92 $116.73
$100 $90.84
$0
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
20
Total GO Debt Per Assessed Valuation
1999-2008
10%
Total GO Debt Per Assessed Valuation
8%
6.09%
5.75% 5.54%
5.50%
5.04%
5% 4.44%
3.96%
3.44% 3.50%
3.11%
3%
0%
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008*
*Projected 21
General Obligation Debt Margin
City’s Legal Debt Margin
FY 04-05 FY 05-06 FY 06-07 FY 07-08
Assessed Value $171,076,148 $175,979,600 $206,396,667 $213,443,497
8% Debt Limit 13,686,092 14,078,368 16,511,733 17,075,480
Total Existing
Outstanding Debt (9,295,000) (8,870,000) (8,165,000) (7,435,000)
Legal Debt Margin $ 4,391,092 $ 5,208,368 $ 8,346,733 $ 9,640,480
22
CITY OF ROCK HILL, SOUTH CAROLINA
Combined Debt
Principal of Outstanding
Utility System Revenue Bonds
AMBAC AMBAC FSA FSA FSA FSA FSA FSA FSA
Series 1998A Series 1998C Series 2000A Series 2000B Series 2000C Series 2003A Series 2003A Series 2003A Series 2003B Series 2008
Year Refunding of 1988 Refunding of 1994 New Money New Money Refunding of 1991 Refunding of 1991 Refunding of 1993 New Money New Money Refunding of 1998B
1-Jan Principal Coupon Principal Coupon Principal Coupon Principal Coupon Principal Coupon Principal Coupon Principal Coupon Principal Coupon Principal Coupon Principal Coupon Total .
2009 390,000 4.400% 350,000 4.400% 555,000 5.000% 2,020,000 5.000% 955,000 5.000% 990,000 5.000% 286,000 3.710% 5,546,000
2010 365,000 4.500% 585,000 5.000% 965,000 5.000% 1,000,000 5.000% 1,040,000 5.000% 394.000 3.710% 4,349,000
2011 385,000 4.600% 610,000 5.125% 1,015,000 5.000% 1,050,000 5.000% 1,095,000 5.000% 409.000 3.710% 4,564,000
2012 400,000 4.625% 645,000 5.125% 1,070,000 5.000% 1,100,000 4.000% 1,145,000 5.000% 424.000 3.710% 4,784,000
2013 420,000 4.750% 675,000 5.250% 1,125,000 5.125% 1,150,000 5.250% 1,200,000 4.000% 440,000 3.710% 5,010,000
2014 440,000 4.800% 710,000 5.375% 1,175,000 5.125% 1,200,000 4.000% 1,255,000 5.250% 456,000 3.710% 5,236,000
2015 460,000 4.900% 750,000 5.400% 1,235,000 5.250% 1,265,000 5.375% 1,315,000 4.000% 473,000 3.710% 5,498,000
2016 485,000 5.000% 835,000 4.000% 1,340,000 5.375% 1,330,000 5.375% 1,390,000 5.375% 490,000 3.710% 5,870,000
2017 505,000 5.000% 865,000 4.000% 1,410,000 5.375% 1,400,000 5.375% 1,465,000 5.375% 508,000 3.710% 6,153,000
2018 535,000 5.000% 900,000 4.000% 1,490,000 5.375% 1,475,000 5.375% 1,545,000 5.375% 527,000 3.710% 6,472,000
2019 560,000 5.000% 935,000 4.000% 1,555,000 5.375% 1,630,000 5.375% 547,000 3.710% 5,227,000
2020 585,000 5.000% 975,000 4.000% 1,640,000 5.375% 1,720,000 5.375% 567,000 3.710% 5,487,000
2021 615,000 5.000% 1,015,000 4.000% 1,815,000 5.375% 588,000 3.710% 4,033,000
2022 1,055,000 4.000% 1,915,000 5.375% 610,000 3.710% 3,580,000
2023 1,095,000 4.000% 2,025,000 5.375% 633,000 3.710% 3,753,000
2024 1,140,000 4.000% 2,125,000 4.750% 3,265,000
2025 1,185,000 4.000% 2,230,000 4.750% 3,415,000
2026 2,345,000 5.000% 2,345,000
2027 2,465,000 5.000% 2,465,000
2028 2,590,000 5.000% 2,590,000
2029 2,725,000 5.000% 2,725,000
2030 2,185,000 5.000% 675,000 4.000% 2,860,000
2031 2,985,000 4.000% 2,985,000
2032 3,105,000 4.000% 3,105,000
2033 3,235,000 4.000% 3,235,000
Total 390,000 6,105,000 4,530,000 10,000,000 8,605,000 4,240,000 15,120,000 38,210,000 10,000,000 7,352,000 104,552,000
Call Date Not Callable 01/01/08 @ 101% 01/01/10 @ 101% Anytime @ 100% 01/01/10 @ 101% 01/01/13 @100% 01/01/13 @ 100% 01/01/13 @ 100% Anytime @ 100% 01/01/10 @ 100%
Adv. Ref. N/A 1 Time 0 Times 0 Times 1 Time 1 Time 1 Time 0 Times 0 Times 0 Times Weighted
Eligibility N/A Not Eligible Eligible Eligible Not Eligible Not Eligible Not Eligible Eligible Eligible Eligible Avg. Int.
Wt.Avg Rate 23
Int Rate 4.400% 4.8468% 5.1969% 4.000% 5.0693% 5.375% 5.0818% 5.0620% 4.000% 3.710% 4.7710%
Combined Utility System Bonds
Aggregate Debt Service
$10,000,000
$9,000,000
$8,000,000
$7,000,000
$6,000,000
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
$0
'08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23 '24 '25 '26 '27 '28 '29 '30 '31 '32
Series 1998A Ref of Series 1988 New Money Series 2000A New Money
Series 2000C Partial Ref of Series 1991 Series 2003A Partial Ref of Series 1991
Series 2003A Ref of Series 1993 Series 1998C Ref of Series 1994 New Money
Series 2008 Ref of Serie 1998B New Money Series 2000B New Money
Series 2003A New Money Series 2003B New Money
24
City of Rock Hill Debt Coverage
Utility System Debt Coverage Ratios: 1998-2008
3
2.61 2.54
2.42 2.37
2.31 2.30 2.30
2.08 2.09
Debt Coverage Ratio
2
1.70
1
0
'98 '99 '01 '02 '03 '04 '05 '06 '07 '08*
Previous Covenants Require a 1.20x coverage ratio *Projected 25
Source: City of Rock Hill Finance Department
III.Current Finances
26
Multi-Year Budgeting
Balanced budgets for
2008/2009 and
2009/2010
Summarized expense
projections for personnel,
operating, and capital
expenses for 2010/11,
2011/12 & 2012/13
2008/09-2012/13 Line
Item Projections for all
revenues
27
Summary of Revenues/Expenses
2008/09-2012/13
2008/09 2009/10 2010/11* 2011/12* 2012/13*
EXPENSES BY FUND
Total General Fund Expenses $50,108,249 $51,417,274 $54,223,965 $56,392,924 $58,648,641
Total Utility Fund Expenses 98,903,658 103,194,414 109,077,110 112,340,078 117,073,843
Total Stormwater Expenses 2,168,501 2,220,545 2,309,367 2,401,741 2,497,811
Total Expenses 151,180,408 156,832,233 165,610,441 171,134,743 178,220,295
EXPENSES BY CATEGORY
Total Personal Expenses 40,735,848 42,230,098 44,341,603 46,558,683 48,886,618
Total Operating Expenses 42,925,398 44,072,490 47,518,330 48,597,959 50,821,257
Total Purchased Power 56,929,872 58,637,768 60,103,712 61,606,305 63,146,463
Total Capital Expenses 10,589,290 11,891,877 13,646,796 14,371,796 15,365,958
Total Expenses 151,180,408 156,832,233 165,610,441 171,134,743 178,220,295
REVENUES BY FUND
Total General Fund Revenues 42,832,068 44,917,274 46,264,792 47,652,736 49,082,318
Total Utility Fund Revenues 106,179,839 109,694,415 114,740,166 117,099,805 120,860,211
Total Stormwater Revenues 2,168,501 2,220,544 2,287,160 2,355,775 2,426,448
Total Revenues 151,180,408 156,832,233 163,292,119 167,108,316 172,368,977
TOTAL DIFFERENCE IN
REVENUES /EXPENSES $0 $0 $(2,318,322) $(4,026,427) $(5,851,317)
*Projected 28
Summary of Previous Gaps
Taken From Prior Long Range Financial Plans and Long
Range Budget Projections
2000 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11* 2011/12* 2012/13*
1999 (1,658,869) (1,838,912) (2,981,955) (4,879,638) (5,901,501) - - - - - - - -
2000 (69,856) (965,524) (1,365,947) (2,976,400) (3,281,377) (5,602,313) - - - - - - -
2001/02 1,540,883 (765,652) (1,719,719) (2,549,757) (3,206,406) (5,210,945) - - - - - -
2002/03 (119,110) (586,526) (2,158) (569,281) (1,217,753) (4,125,569) - - - - -
2003/04 (281,188) (105,524) (423,556) (115,564) (3,564,889) (5,243,562) - - - -
2004/05 1,740,000 (159,907) (1,704,710) (3,357,457) (5,123,851) (7,009,864) - - -
2005/06 4,154,365 (30,401) (1,566,319) (3,209,714) (4,966,268) (6,841,928) - -
2006/07 3,865,569 (1,216,915) (3,793,428) (5,518,837) (7,360,472) (8,489,645) -
2007/08 390,361 (1,536,407) (3,132,505) (4,838,486) (6,660,127) (8,603,476)
2008/09 0 0 (2,318,322) (4,026,427) (5,851,317)
*Projected
29
City of Rock Hill Cash Balances
March 1 Funds Held by State Investment Pool
Thousands
$25,000
$22,034
$20,284
$20,000
Total March 1 Cash Balance
$15,952
$15,000
$11,590
$10,000
$7,013 $7,119
$5,955
$4,923
$5,000 $3,399
$2,526
$0
'99 '00 '01 '02 '03 '04 '05 '06 '07 '08
30
Source: City of Rock Hill Finance Department
General Government Finances
31
General Fund Revenues/Expenditures
Historical Review
$60
Total Revenues and Expenditures (in millions)
$55
$50
$45
$40
$35
$30
$25
$20
$15
$10
90 91 92 93 94 95 96 97 98 99 '01 '02 '03 '04 '05 '06 '07 '08*
Expenditures Revenues Revenues Plus Transfers
32
* Projected
Rock Hill’s Tax Rates
From Fiscal Year 2000/2001 - 2008/2009
120
106
102 102
Annual Tax Rate (in millions)
100 98 98 98 95 95 95
80
60
40
20
0
'00/01 '01/02 * '02/03 '03/04 '04/05 '05/06 '06/07* '07/08 '08/09
•Year of Reassessment 33
Rock Hill’s Total Tax Rates
1995-2007
400
300
Tax Millage Rate
243 265 271 262 275
225 229 233 239 234 244 255
209 217
200
100
100 100 100 104 104 104 106 98 98 98 102 102 95 95
0
1995 1996 1997 1998 1999 2000 2001 2002* 2003 2004 2005 2006 2007* 2008
Rock Hill County & Schools
Includes City, County and School Tax Millage Rates
* Year of Reassessment 34
Comparison of City Tax Rates
Rock Hill City Tax Rates Compared to S.C. Cities, PMPA
Cities, Regional Cities, & York County Cities
150 1. Lancaster *
140
138
135
2. Monroe
3. Gastonia
127
124
4. Anderson
5. Laurens*
116
115
115
112
6. Gaffney
110
7. York
105
105
103
8. Charlotte
99
99
100 9. Concord
95
Current Millage Rate
93
93
90
10. Clover
90
88
11. Sumter*
83
81
12. Spartanburg
76
74
13. Columbia*
14. Abbeville*
61
15. Clinton*
55
16. Rock Hill (16)
17. Greer
50 18. N. Charleston*
39
19. Greenville
20. Newberry
21. Westminster
22. Tega Cay
23. Fort Mill
24. Charleston*
25. Union
0 26. Easley*
27. Florence*
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 28. Mt. Pleasant*
35
* Local Option Sales Tax
Taxpayer Concentration
2001-2007
Total Assessed Total of Top 10 Top 10 Total
Year Value Taxpayers Assessed Value
2007 206,396,667 18,607,287 9.02%
2006 175,979,600 16,810,076 9.55%
2005 169,004,408 16,591,322 9.82%
2004 162,203,455 16,823,873 10.37%
2003 157,339,139 15,241,531 9.69%
2002 153,230,931 14,023,952 9.15%
2001 126,553,454 11,176,259 8.83%
36
General Fund Equity
General Fund Equity and Unreserved Fund Equity
Thousands
$14,000
$12,761
$12,000
$10,678
$10,000
$7,711
$8,000
$6,384
$6,000 $5,367
$4,000 $3,200
$2,717 $2,970
$2,474 $2,403
$2,000
$543 $743
$343 $343
$0
00/01 '01/02 '02/03 '03/04 '04/05 '05/06 '06/07
37
General Fund Equity Unreserved General Fund Equity
General Fund Equity
General Fund Cash and Investments
Thousands
$7,000
$6,090 $6,038 $5,957
$6,000
$5,000
$4,341 $4,298
$4,000
$3,000
$2,396 $2,486
$2,000
$1,000
$0
00/01 '01/02 '02/03 '03/04 '04/05 '05/06 '06/07
General Fund Cash and Investments 38
Combined Utility System Finances
39
Trend in Electric Customers
1998-2008
35,000
29,088 29,584
30,000 27,911
26,252 26,906
25,152 25,487
25,000 23,910
Total Electric Customers
22,398 22,684
21,611
20,000
15,000
10,000
5,000 3,333
2,952 3,065 3,132 3,208 3,265 3,088 3,146 3,221 3,245 3,321
0
1998 1999 2000 2001* 2002 2003 2004 2005 2006 2007 2008
Residential Commercial/Industrial
*Fiscal Year changed to end June 30.
Source: City of Rock Hill, Finance Department 40
As of June 30, 2007, 89.55% of the electric system customers were located inside the City limits.
Trend in Water Customers
1998-2008
35,000
30,000 28,075 28,688
26,927
25,903
24,921
25,000 23,540 24,040
22,514 22,521
21,434
20,663
Total Water Customers
20,000
15,000
10,000
5,000
0
1998 1999 2000 2001** 2002 2003 2004 2005 2006 2007 2008
Water Customers
**Fiscal Year changed to end June 30, 2001.
Source: City of Rock Hill, Finance Department. 41
As of June 30, 2007, 81.05% of the water system customers were located within the City limits.
Trend in Wastewater Customers
1998-2008
35,000
28,828 29,541
30,000 27,735
26,427
25,120
25,000 24,093 24,448
23,055 23,258
21,011 21,928
20,000
15,000
10,000
5,000
0
1998 1999 2000 2001* 2002 2003 2004 2005 2006 2007 2008
Wastewater Customers
*Fiscal Year changed to end June 30, 2001. 42
Comparison of Electric/Water/Wastewater Rates
Rock Hill Residential Rates Compared to S.C. Cities, PMPA
Cities, Regional Cities, & York County Cities $236
1.N. Charlstn
2. Greenville
$240 3. Charleston
$212
4. Laurens
Combined Electric, Water and Sewer Rates
5. Gastonia
$189
6. Clinton
$184
$200
$175
7. W'minster
$171
$169
$168
$168
$164
8. Clover
$163
$160
$160
$157
9. Mt. Pleasant
$154
$153
$152
$153
$148
$147
$144
$146
$160 10. Tega Cay
$144
$144
$143
$140
$139
11. Abbeville
$129
12. Concord
13. Easley
$120 14. Lancaster
15. Columbia
16. Florence
17. Union
$80 18. Rock Hill (20)
19. Anderson
20. Greer
21. Newberry
$40 22. Monroe
23. Fort Mill
24. York
$0 25. Spartburg
26. Sumter
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 27. Charlotte
28. Gaffney
43
Comparison of Electric/Water/Wastewater Rates
Rock Hill Commercial Rates Compared to S.C. Cities, PMPA
Cities, Regional Cities, & York County Cities
$4,779
$5,000
1. N. Charlstn
$4,329
2.W'minster
3. Charleston
$4,012
$3,869
Electric Rate(90kW and 27,000 kWh
$3,854 4. Concord
$4,000 $3,608 5. Greenville
$3,521
6. Columbia
commercial/industrial rate)
$3,376
$3,221
$3,244
7. Mt. Pleasant
$3,150
$3,118
$3,107
$3,091
$3,041
$3,024
$2,985
8. Gastonia
$2,975
$2,900
$2,856
$2,838
$2,809
9. Union
$2,752
$2,747
$2,707
$2,659
$3,000
$2,641
10. Laurens
$2,584
11. Easley
12. Clinton
13. Clover
14. Abbeville
$2,000 15. Newberry
16. Gaffney
17. Charlotte
18. Rock Hill (17)
19. Fort Mill
$1,000 20. Lancaster
21. Spartburg
22. Greer
23. Florence
24. York
$0 25. Anderson
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 26. Sumter
27. Monroe
28. Tega Cay
44
Comparison of Electric/Water/Wastewater Rates
Rock Hill Industrial Rates Compared to S.C. Cities, PMPA
Cities, Regional Cities, & York County Cities
$6,193
$5,449
1. N. Charlstn
$4,956
$4,870
2. Greenville
$4,619
$5,000 3. W'minster
4. Charleston
$4,279
Electric Rate(90kW and 27,000 kWh
$4,187
5. Concord
$4,095
$4,020
$3,991
6. Mt. Pleasant
$3,914
$3,873
$3,791
7. Columbia
$3,735
commercial/industrial rate)
$3,705
$3,666
$3,624
$4,000
$3,612
$3,572
8. Gastonia
$3,529
$3,488
$3,418
$3,406
$3,370
9. Clover
$3,228
$3,226
$3,104
10. Laurens
$2,960
11. Clinton
$3,000 12. Greer
13. Charlotte
14. Easley
15. Union
16. Fort Mill
$2,000 17. Abbeville
18. Lancaster
19. Spartburg
20. Newberry
$1,000 21. Rock Hill (14)
22. Gaffney
23. York
24. Anderson
25. Monroe
$0 26. Florence
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 27. Tega Cay
28. Sumter
45
Electric System
Summary of Revenues & Expenses
$80
$70
Electric Revenues & Expenses (in millions)
$60
$50
$40
$30
$20
$10
$0
95 96 97 98 99 '00/01 '01/02 '02/03 '03/04 '04/05 '05/06 '06/07 '07/08
Revenues Expenses
•Projected 46
•All numbers are prior to transfers.
Water System
Summary of Revenues & Expenses
$14
Water Revenues & Expenses (in millions)
$12
$10
$8
$6
$4
$2
$0
95 96 97 98 99 '00/01 '01/02 '02/03 '03/04 '04/05 '05/06 '06/07 '07/08*
Revenues Expenses
*Projected
All numbers are prior to transfers. 47
Wastewater System
Summary of Revenues & Expenses
$16
Wastewater Revenues & Expenses (in millions)
$14
$12
$10
$8
$6
$4
$2
$0
95 96 97 98 99 '00/01 '01/02 '02/03 '03/04 '04/05 '05/06 '06/07 '07/08
Revenues Expenses
All projections are prior to transfers. 48
Utility System
Summary of Revenues & Expenses
$120
Utility System Revenues & Expenses (in millions)
$100
$80
$60
$40
$20
$0
96 97 98 99 '00/01 '01/02 '02/03 '03/04 '04/05 '05/06 '06/07 '07/08
Revenues Expenses
49
Enterprise Fund Transfers
To the General Fund
59%
60%
Percent of General Fund Expenses Covered by Utilities
42% 42%
38% 38%
40%
32% 31%
28%
23%
18%
20%
12% 13% 13%
10% 11% 11% 11% 12%
8%
0%
1
2
3
4
5
6
7
8
89
90
91
92
93
94
95
96
97
98
99
/0
/0
/0
/0
/0
/0
/0
/0
'00
'01
'02
'03
'04
'05
'06
'07
Revenues
50
IV. Management of the Government
51
Rock Hill City Council
Number of
Name Occupation Years on Council
*A. Douglas Echols, Jr., Retired 18
Mayor
Kathy S. Pender Civic Leader 4
John P. Gettys, Jr. Attorney 5
Susie B. Hinton Community Activist 1
James C. Reno, Jr. Banker 10
Osbey Roddey Retired-Education 18
Kevin H. Sutton Marketing & Sales 14
Mayor Pro Tempore
*Years of service include 8 years of previous service
**Mayor Echols currently serves on the National League of Cities Board of Directors
52
Management Team
Carey F. Smith, City Manager
City Manager since April 2002
Previously served as City Manager of Daytona Beach, FL
Former City Manager of Myrtle Beach, S.C., Hilton Head Island, S.C., and Tarpon
Springs, FL
Masters in Public Administration, University of Georgia
Bachelors in Political Science, The Citadel
Past President of the South Carolina City and County Management Association
Past Board Member of the Florida City and County Management Association
Currently Serving on ICMA’s Strategic Planning Committee and the PMPA Board
Gerald E. Schapiro, Assistant City Manager
Assistant City Manager since 1999
Previously served as Finance Director from 1977-1999
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 S.C.
53
Management Team
David B. Vehaun, Management Services Administrator
Has served as Finance Director since 1999
Formerly served as Budget Officer from 1989-1999
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
Currently serves on GFOA National Executive Board
Steven Gibson
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
54
Management Team
Andrew C. Cooper
Controller
Has held position since 1988
Bachelors degree in Accounting, University of North Carolina at Chapel Hill
Certified Public Accountant since 1984
Four years public accounting experience with emphasis in governmental
accounting
Twenty-one years electrical utilities accounting experience
Anne P. Bunton
Customer Service Director
Employed with the City since 2005
Formerly Served as York County Treasurer and Finance Director from 1991-2005
Bachelors of Science with emphasis in Business Admin. from Winthrop University
Certified Public Accountant since 1990
Serves on the S.C. Association of Certified Public Accountants Board
55
Management Team
Nick Stegall
Public Services Administrator-Previously served as Utilities Director
Employed with the City since 1991
Associate of Applied Science, York Technical College
Bachelor of Science in Electrical Engineering, Clemson University
Registered Professional Engineer
Previously employed by South Carolina Electric & Gas Company
Previously served as Utilities Director and City Manager for the City of Camden,
S.C.
Serves on the PMPA Board and as Vice President of the Water Quality
Association
Appointed to the Catawba/Wateree River Basin Advisory Board
James G. “Jimmy” Bagley, Jr., P.E.
Former Utilities Director – now serving as Chief Information Officer
Employed with the City since 1989
Bachelor of Science in Electrical Engineering, Clemson University
Masters of 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 Contractor for S.C. 56
Conclusion
57
Credit Strengths and
Summary
Diversified economic base
Close Proximity to
Charlotte
Long Range Financial
Planning and Multi-Year
Budgeting
58
Credit Strengths and
Summary
The City’s Strategic Planning
Process
This process aids in assessing
the City’s financial ability,
assists the City Council in
evaluating the impact of local
decision-making on the City,
and plays a crucial role in the
annual budget process.
59
Credit Strengths and
Summary
City Services are
competitively priced
The City continues to
provide high quality
services
Sports Tourism is a
growing sector in our
economy
60
Presentation available online at
www.cityofrockhill.com then
click on Departments &Finance
or request through an email at
dvehaun@cityofrockhill.com
61
