Kinard Sworn In On Tuesday; More City Council News
Carlton Kinard was sworn in to Newberry City Council Tuesday night. Kinard will be representing District 3.
Kinard thanked constituents for trusting him to serve as their new councilman and that he looked forward to working with all constituents.
He said he understood that the council seat did not belong to him, but to the people in the city’s District 3 and that he promised to represent them to the best of his ability.
Also recognized Tuesday was the City of Newberry’s Finance Department. For the twenty-seventh year in a row, the city has received a “Certificate of Achievement for Excellence in Financial Reporting,” presented annually by the Government Finance Officers Association of the United States.
It is presented to governments that have achieved the highest standards of perfection in their accounting procedures.
“There are very few municipalities in the United States that achieve this level of competency,” said City Manager Matt DeWitt. “Shannon and her staff have done an outstanding job and we are delighted to receive this award again.”
Updates and Announcements
Under updates and announcements, Jeff Wicker was appointed as the Clerk to Council. Pursuant to South Carolina Code § 5-7-220, the city manager has the authority and duty to appoint an officer of the municipality to have the title of municipal clerk. The municipal clerk shall give notice of council meetings to its members and the public, keep the minutes of its proceedings, and perform such other duties as are assigned by council.
DeWitt updated council and the community on a few items from the city’s Parks, Recreation and Tourism department to include that the construction on the recreation complex’s concessions, bathroom and scores tower was continuing.
“It is framed and ready to go and we have made substantial progress on that building,” he said.
Two new park shelters have been installed at the recreation complex as well with the concrete pads for both the shelter and the park’s ping-pong and pickleball courts would be poured soon.
The restroom at Wise Street Park has been completed, DeWitt said with work to soon begin on the restrooms at Marion Davis Park as they are currently not ADA accessible. Schumpert and Sons Paving, Inc. was awarded the contract for the paving of the Wise Street Park trail, which DeWitt said should commence soon.
As another update for council, DeWitt went over an unassigned fund corrective action plan as the city has a clause in their financial policies that states they will strive to maintain the fund balance of the General Fund such that the unassigned portion of the fund balance is between 33 and 67 percent of the total audited General Fund expenditures for the most recently audited fiscal year.
If, at the end of the fiscal year, the minimum fund balance policy is not met, the city manager will submit a plan of corrective action to council within six months of notification of the shortfall.
DeWitt told council last year, the city was at 41.57 percent, however, this year fell to 11.14 percent due to the city’s fiber project. This year, he said was the first time the city had fallen below the 33 percent line.
In order to alleviate this from becoming a reoccurring finding, the General Fund needs to accelerate payback to the Utility System so that it can then begin to build up unassigned savings at least at the 33 percent level of the most recently audited figures, he said.
“Our payback to the utility will happen as revenues from the new fiber system continue to be generated,” DeWitt said. “The city will also obligate any economic development funds that haven’t been earmarked to help accelerate the payback.”
Once funds have been returned to the utility system, the General Fund will then use this same approach to return to the city’s historical savings levels as in years’ past. The city will also limit capital expenditures requests over the next few fiscal years to accelerate both payback and savings in that period.
“We’re the first town in South Carolina to have the whole town set up for broadband by the city and we are very proud of that,” said Mayor Foster Senn.
DeWitt said while the financial obligation for the fiber project was huge, the timing on accelerating and finishing the project was also a big step.
“This project culminated just as the current pandemic struck and our residents had high speed internet options ready to launch thanks to the accelerated approach,” he said.
Financial Report
David Phillips of Greene Finney, LLC presented City Council with an overview of the fiscal year 2019-2020 Comprehensive Financial Report. As of June 30, 2020, Phillips said their firm saw the City of Newberry in reasonable financial condition.
The city’s total fund balance decreased $3.3 million over the previous. Phillips reported that their unassigned fund balance this year was at 11 percent of 2020 actual expenditures, with the decrease being the unbudgeted capital outlay for the fiber optic network.
Positives that Phillips mentioned were that the city’s general fund revenues increased $0.2 million from 2019.
“You would have probably thought that with a health pandemic that there was a high probability that they could be down, but they were actually slightly up,” Phillips said.
While revenues were up, they were slightly under budget, he said primarily due to grant revenue. Phillips said that also due to the health pandemic, some of the grant revenues that people were expecting to get got delayed or pushed to future years.
Other items of note included a total of $107 million in total capital assets as of June 30, 2020 – an increase of $7.5 million from the prior year.
Total long-term obligations outstanding at June 30, 2020 decreased $2.5 million from June 30, 2019, primarily due to regularly scheduled principal payments.
A deficiency noted in the audit related to the tracking and recording of capital asset activity. Phillips said while there had been great improvements in this area, the city’s capital asset system was less than ideal, making it more difficult to track projects, rerun depreciation, etc.
Phillips said the city had made good progress from the group’s prior year audit. Senn thanked Phillips and his colleagues for their work on this year’s audit.
Old Business
Under old business, second and final reading of an ordinance providing for the issuance and sale of combined public utility system refunding revenue bonds of the City of Newberry.
The City of Newberry maintains its combined public utility system, providing water, sewer and electric services to customers inside and outside the City. Through the years and as necessary to finance capital improvements to improve, upgrade and support the utility system, the city has issued bonds secured by the revenues of its combined utility system, Senn said.
Currently, the City has outstanding two series of revenue bonds secured by the revenues of its utility system: (1) $19,002,796 Combined Public Utility System Revenue Bond, Series 2009 dated June 24, 2009; and (2) the $39,005,000 original principal amount Combined Public Utility System Improvement Revenue Bonds, Series 2021 dated May 26, 2015.
Senn said the 2009 bond included improvements to city’s wastewater treatment plant, while the 2015 bonds included improvements to multiple items in the city’s utility system, such as the water plant.
The city was advised by its municipal financial advisor, Southern Municipal Advisors that the city’s 2009 bond (currently held by the State Revolving Loan Fund) could be refunded (refinanced) for substantial savings.
Preliminary and conservative estimates indicate the City could achieve approximately $200,000-500,000 in savings by refunding the 2009 bond, City Manager Matt DeWitt told council.
The city has engaged Bond Counsel, Pope Flynn, LLC, to prepare documents necessary to authorize the refunding of the 2009 bond. Second reading was passed with a motion by Councilman David DuBose and seconded by Councilman Edwin Wicker.
New Business
Under new business, council approved to extend their ordinance regarding face coverings. Originally set to expire on December 13, the ordinance has been extended 61 days into February 2021.
The measure requires masks or face coverings in grocery stores, pharmacies and dollar stores and clarifies the term grocery store to mean an indoor or outdoor establishment that primarily sells food but may also sell other convenience and household goods.
Motion was made by Councilwoman Jackie Holmes and seconded by Councilman Carlton Kinard to approve the ordinance.
Senn said SCDHEC applauded local governments that worked to slow the spread of COVID-19 by taking the proactive step to implement mask mandates.
Also under new business, council approved of an outside water request for a property located at 781 Quaker Road. While outside of the city limits, the property owner has agreed to execute an annexation covenant indicating a willingness to annex if the property became contiguous to the city limits and council determined it in the best interest of the city to annex the property.
The property is located adjacent to an existing water line; however, a bore will be required below Quaker Road in order to tie the property into the city’s system. The resident has agreed to pay the costs associated with the road bore and outside tap connection.
Motion was made by Councilman LeMont Glasgow and seconded by DuBose.
The city’s recreation complex was officially named the Newberry Recreation Complex with a discussion by council on Tuesday.
Senn said when council originally began looking at the naming of the park in years past, it was discussed that there was no primary identifiable natural feature, such as a river or creek to be named after.
“We began to casually call it the Newberry Recreation Complex and it seems that name has fit,” he said.
Motion to accept the name was made by Councilwoman Holmes and seconded by Councilman DuBose.
Following a motion from the call of the chair, council returned from executive session. Tommy Bowers and Robin Newton were reappointed to the Newberry Housing Authority board, with a motion from Councilman Glasgow and seconded by Councilwoman Holmes.
Councilman Edwin Wicker made a motion, seconded by Councilman David Force to appoint Jerry Hammond to the Newberry Accommodations Tax Advisory Committee.
Newberry City Council will reconvene again on Tuesday, January 12, 2021.
Carlton Kinard was sworn in to Newberry City Council Tuesday night. Kinard will be representing District 3.
Kinard thanked constituents for trusting him to serve as their new councilman and that he looked forward to working with all constituents.
He said he understood that the council seat did not belong to him, but to the people in the city’s District 3 and that he promised to represent them to the best of his ability.
Also recognized Tuesday was the City of Newberry’s Finance Department. For the twenty-seventh year in a row, the city has received a “Certificate of Achievement for Excellence in Financial Reporting,” presented annually by the Government Finance Officers Association of the United States.
It is presented to governments that have achieved the highest standards of perfection in their accounting procedures.
“There are very few municipalities in the United States that achieve this level of competency,” said City Manager Matt DeWitt. “Shannon and her staff have done an outstanding job and we are delighted to receive this award again.”
Updates and Announcements
Under updates and announcements, Jeff Wicker was appointed as the Clerk to Council. Pursuant to South Carolina Code § 5-7-220, the city manager has the authority and duty to appoint an officer of the municipality to have the title of municipal clerk. The municipal clerk shall give notice of council meetings to its members and the public, keep the minutes of its proceedings, and perform such other duties as are assigned by council.
DeWitt updated council and the community on a few items from the city’s Parks, Recreation and Tourism department to include that the construction on the recreation complex’s concessions, bathroom and scores tower was continuing.
“It is framed and ready to go and we have made substantial progress on that building,” he said.
Two new park shelters have been installed at the recreation complex as well with the concrete pads for both the shelter and the park’s ping-pong and pickleball courts would be poured soon.
The restroom at Wise Street Park has been completed, DeWitt said with work to soon begin on the restrooms at Marion Davis Park as they are currently not ADA accessible. Schumpert and Sons Paving, Inc. was awarded the contract for the paving of the Wise Street Park trail, which DeWitt said should commence soon.
As another update for council, DeWitt went over an unassigned fund corrective action plan as the city has a clause in their financial policies that states they will strive to maintain the fund balance of the General Fund such that the unassigned portion of the fund balance is between 33 and 67 percent of the total audited General Fund expenditures for the most recently audited fiscal year.
If, at the end of the fiscal year, the minimum fund balance policy is not met, the city manager will submit a plan of corrective action to council within six months of notification of the shortfall.
DeWitt told council last year, the city was at 41.57 percent, however, this year fell to 11.14 percent due to the city’s fiber project. This year, he said was the first time the city had fallen below the 33 percent line.
In order to alleviate this from becoming a reoccurring finding, the General Fund needs to accelerate payback to the Utility System so that it can then begin to build up unassigned savings at least at the 33 percent level of the most recently audited figures, he said.
“Our payback to the utility will happen as revenues from the new fiber system continue to be generated,” DeWitt said. “The city will also obligate any economic development funds that haven’t been earmarked to help accelerate the payback.”
Once funds have been returned to the utility system, the General Fund will then use this same approach to return to the city’s historical savings levels as in years’ past. The city will also limit capital expenditures requests over the next few fiscal years to accelerate both payback and savings in that period.
“We’re the first town in South Carolina to have the whole town set up for broadband by the city and we are very proud of that,” said Mayor Foster Senn.
DeWitt said while the financial obligation for the fiber project was huge, the timing on accelerating and finishing the project was also a big step.
“This project culminated just as the current pandemic struck and our residents had high speed internet options ready to launch thanks to the accelerated approach,” he said.
Financial Report
David Phillips of Greene Finney, LLC presented City Council with an overview of the fiscal year 2019-2020 Comprehensive Financial Report. As of June 30, 2020, Phillips said their firm saw the City of Newberry in reasonable financial condition.
The city’s total fund balance decreased $3.3 million over the previous. Phillips reported that their unassigned fund balance this year was at 11 percent of 2020 actual expenditures, with the decrease being the unbudgeted capital outlay for the fiber optic network.
Positives that Phillips mentioned were that the city’s general fund revenues increased $0.2 million from 2019.
“You would have probably thought that with a health pandemic that there was a high probability that they could be down, but they were actually slightly up,” Phillips said.
While revenues were up, they were slightly under budget, he said primarily due to grant revenue. Phillips said that also due to the health pandemic, some of the grant revenues that people were expecting to get got delayed or pushed to future years.
Other items of note included a total of $107 million in total capital assets as of June 30, 2020 – an increase of $7.5 million from the prior year.
Total long-term obligations outstanding at June 30, 2020 decreased $2.5 million from June 30, 2019, primarily due to regularly scheduled principal payments.
A deficiency noted in the audit related to the tracking and recording of capital asset activity. Phillips said while there had been great improvements in this area, the city’s capital asset system was less than ideal, making it more difficult to track projects, rerun depreciation, etc.
Phillips said the city had made good progress from the group’s prior year audit. Senn thanked Phillips and his colleagues for their work on this year’s audit.
Old Business
Under old business, second and final reading of an ordinance providing for the issuance and sale of combined public utility system refunding revenue bonds of the City of Newberry.
The City of Newberry maintains its combined public utility system, providing water, sewer and electric services to customers inside and outside the City. Through the years and as necessary to finance capital improvements to improve, upgrade and support the utility system, the city has issued bonds secured by the revenues of its combined utility system, Senn said.
Currently, the City has outstanding two series of revenue bonds secured by the revenues of its utility system: (1) $19,002,796 Combined Public Utility System Revenue Bond, Series 2009 dated June 24, 2009; and (2) the $39,005,000 original principal amount Combined Public Utility System Improvement Revenue Bonds, Series 2021 dated May 26, 2015.
Senn said the 2009 bond included improvements to city’s wastewater treatment plant, while the 2015 bonds included improvements to multiple items in the city’s utility system, such as the water plant.
The city was advised by its municipal financial advisor, Southern Municipal Advisors that the city’s 2009 bond (currently held by the State Revolving Loan Fund) could be refunded (refinanced) for substantial savings.
Preliminary and conservative estimates indicate the City could achieve approximately $200,000-500,000 in savings by refunding the 2009 bond, City Manager Matt DeWitt told council.
The city has engaged Bond Counsel, Pope Flynn, LLC, to prepare documents necessary to authorize the refunding of the 2009 bond. Second reading was passed with a motion by Councilman David DuBose and seconded by Councilman Edwin Wicker.
New Business
Under new business, council approved to extend their ordinance regarding face coverings. Originally set to expire on December 13, the ordinance has been extended 61 days into February 2021.
The measure requires masks or face coverings in grocery stores, pharmacies and dollar stores and clarifies the term grocery store to mean an indoor or outdoor establishment that primarily sells food but may also sell other convenience and household goods.
Motion was made by Councilwoman Jackie Holmes and seconded by Councilman Carlton Kinard to approve the ordinance.
Senn said SCDHEC applauded local governments that worked to slow the spread of COVID-19 by taking the proactive step to implement mask mandates.
Also under new business, council approved of an outside water request for a property located at 781 Quaker Road. While outside of the city limits, the property owner has agreed to execute an annexation covenant indicating a willingness to annex if the property became contiguous to the city limits and council determined it in the best interest of the city to annex the property.
The property is located adjacent to an existing water line; however, a bore will be required below Quaker Road in order to tie the property into the city’s system. The resident has agreed to pay the costs associated with the road bore and outside tap connection.
Motion was made by Councilman LeMont Glasgow and seconded by DuBose.
The city’s recreation complex was officially named the Newberry Recreation Complex with a discussion by council on Tuesday.
Senn said when council originally began looking at the naming of the park in years past, it was discussed that there was no primary identifiable natural feature, such as a river or creek to be named after.
“We began to casually call it the Newberry Recreation Complex and it seems that name has fit,” he said.
Motion to accept the name was made by Councilwoman Holmes and seconded by Councilman DuBose.
Following a motion from the call of the chair, council returned from executive session. Tommy Bowers and Robin Newton were reappointed to the Newberry Housing Authority board, with a motion from Councilman Glasgow and seconded by Councilwoman Holmes.
Councilman Edwin Wicker made a motion, seconded by Councilman David Force to appoint Jerry Hammond to the Newberry Accommodations Tax Advisory Committee.
Newberry City Council will reconvene again on Tuesday, January 12, 2021.
