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COMPREHENSIVE  ANNUAL FINANCIAL  REPORT       CITY OF  COLUMBIA,  SOUTH CAROLINA       FISCAL YEAR  ENDED  JUNE  30,  2015                   City Manager   Teresa B.  Wilson     Chief Financial  Officer   Jeffery M.  Palen     Finance  Director   Jan Alonso  CGFO    Prepared  by  the   Finance  Department      TABLE OF CONTENTS CITY OF COLUMBIA, SOUTH CAROLINA COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED JUNE 30, 2015 TABLE OF CONTENTS I NTRODUCTORY SECTION Letter of Transmittal 1-6 Certificate of Achievement for Ex cellence in Financial Reporting 7 City Leaders 8 City Organizational Chart 9 Finance Department Organizational Chart 10 FINANCIAL SECTION Independent Auditors’ Report 11-12 Management’s Discussion and Analysis – Unaudited 13-27 Basic Financial Statements Government-wide Financial Statements Statement of Net Position 28-29 Statement of Activities 30 Fund Financial Statements Balance Sheet – Governmental Funds 31 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position 32 Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds 33 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 34 Statement of Fund Net Position – Proprietary Funds 35-36 Statement of Revenues, Expenses, and Changes in Net Position - Proprietary Funds 37 Statement of Cash Flows – Proprietary Funds 38-39 Statement of Fiduciary Net Position – Fiduciary Funds 40 Statement of Changes in Fiduciary Net Position – Fiduciary Funds 41 Discretely Presented Component Units Combining Statement of Net Position – Business-Type Activity Discretely Presented Component Units 42-43 Combining Statement of Activities – Business-Type Activity Discretely Presented Component Units 44 Notes to Financial Statements 45-94 Required Supplementary Information Schedules of Funding Progress and Employer Contributions – Other Postemployment Benefits (Unaudited) 95 Budgetary Comparison Schedule – General Fund (Unaudited) 96 Notes to Budgetary Comparison Schedule (Unaudited) 97 Schedules of the City’s Contributions (Unaudited) 98 Schedules of the City’s Proportionate Share of the Net Pension Liability (Unaudited) 99 TABLE OF CONTENTS (Continued) F INANCIAL SECTION (Continued) Supplementary Information Combining and Individual Fund Statements and Schedules Schedule of Revenues and Other Financing Sources – Budget and Actual – General Fund 100-102 Schedule of Expenditures and Other Financing Uses – Budget and Actual – General Fund 103-109 Combining Balance Sheet – Nonmajor Governmental Funds 110-111 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Nonmajor Governmental Funds 112-113 Combining Statement of Net Position – Nonmajor Proprietary Funds 114 Combining Statement of Revenues, Expenses, and Changes in Net Position – Nonmajor Proprietary Funds 115 Combining Statement of Cash Flows – Nonmajor Proprietary Funds 116-117 Combining Statement of Net Position – Internal Service Funds 118 Combining Statement of Rev enues, Expenses, and Changes in Net Position – Internal Service Funds 119 Combining Statement of Cash Flows – Internal Service Funds 120 Combining Statement of Fiduciary Net Position – Fiduciary Funds – Private Purpose Trust Funds 121 Combining Statement of Changes in Fiduciary Net Position – Fiduciary Funds – Private Purpose Trust Funds 122 Statement of Changes in Assets and Liabilities – Agency Fund 123 Other Schedule Schedule of Fines, Assessments and Surcharges 124 S TATISTICAL SECTION (U NAUDITED ) Schedule 1 – Net Position by Component 125 Schedule 2 – Changes in Net Position 126-127 Schedule 3 – Fund Balances – Governmental Funds 128 Schedule 4 – Changes in Fund Balances – Governmental Funds 129 Schedule 5 – Assessed Value and Estimated Actual Value of Taxable Property 130 Schedule 6 – Direct and Overlapping Property Tax Rates 131 Schedule 7 – Principal Property Taxpayers 132 Schedule 8 – Property Tax Levies and Collections 133 Schedule 9 – Ratios of Outstanding Debt by Type 134-135 Schedule 10 -- Ratios of General Bonded Debt Outstanding 136 Schedule 11 – Direct and Overlapping Governmental Activities Debt 137 Schedule 12 – Legal Debt Margin 138 Schedule 13 – Certificates of Participation Debt Coverage 139 Schedule 14 – Water and Sewer Department – Schedule of Revenue Bond Coverage 140 Schedule 15 – Parking Department – Schedule of Revenue Bond Coverage 141 Schedule 16 – Demographic and Economic Statistics 142 Schedule 17 – Principal Employers 143 Schedule 18 – Full-Time Equivalent Employees by Function/Program 144 Schedule 19 – Operating Indicators by Function/Program 145 Schedule 20 – Capital Asset Statistics by Function 146 INTRODUCTORY SECTION 1 2 3 4 5 6 7 8 CITY OF COLUMBIA, SOUTH CAROLINA CITY LEADERS As of June 30, 2015 Mayor Stephen K. Benjamin Council Members District 1 Sam Davis District 2 Brian DeQuincey Newman District 3 Moe Baddourah District 4 Leona Plaugh At Large Tameika Isaac-Devine At Large Cameron Runyan City Manager Teresa Wilson Assistant City Managers Senior Assistant City Manager for Public Safety S. Allison Baker Assistant City Manager for Operations Melissa Gentry-Smith, P.E Assistant City Manager Finance & Economic Svc/CFO Jeff Palen Department Directors Budget and Program Management Office Melissa Caughman City Attorney Teresa Knox Community Development Deborah Livingston Court Administrator Judge Dana Turner Planning and Development Services Krista Hampton Economic Development Ryan Coleman Emergency Communications Kimberly Gathers Finance Jan Alonso, CGFO Fire Aubrey Jenkins General Services David Knoche Human Resources Pamela Benjamin, CPM Information Technology Sylvia White (interim) Office of Business Opportunities Tina Herbert Parks and Recreation Jeff Caton Parking John David Spade Police William “Skip” Holbrook Public Relations Leshia Utsey Public Works Robert Anderson Utilities & Engineering Joseph Jaco, P.E.

Development Corporation Directors Columbia Development Corp. Fred Delk Columbia Housing/TN Development Corp. Gloria Saeed Eau Claire Development Corp. Michael Strange Other Directors Columbia Empowerment Zone, Inc. Felicia Maloney Midlands Authority for Conventions, Sports, and Tourism Bill Ellen City of Columbia FY 2014/2015 Org an izatio nal C hart Citizens      Columbia  City Council        City Attorney   Teresa  Knox    City  Manager   Teresa  B. Wilson   Municipal  Court   Judge  Dana  Turner       Sr. Assistant  City  Manager   S.  Allison  Baker   City  Management  Office  *City  Clerk ‐ Erika  Moore   *City  Council  Staff  Liaison ‐ Libby  Gober   *Mayor’s  Office  Staff *Governmental  Affairs/Special  Projects‐ Ray  Gray   *Grant  Management ‐ Chris  Segars       Assistant  City Manager   Operations   Melissa  Gentry‐Smith,  P.E.   Assistant  City Manager   Finance  & Economic  Services  Jeff  Palen   Human  Resources   Pamela  Benjamin   Columbia  Police Department   Police  Chief**   William  “Skip” Holbrook       Columbia‐Richland  911  Communications   Kimberly  Gathers   Community  Development   Deborah  Livingston    Budget &  Program  Management  Office  Melissa  Caughman       Fire  Chief  Aubrey  Jenkins        Parks &  Recreation   Jeff  Caton         Public  Relations,  Marketing  &  Media   Leshia  Utsey   General  Services  David  Knoche        Office of Business  Opportunities   Tina  Herbert       Parking Services  John  Spade        Planning &  Development  Services   Krista  Hampton    Development  Corporations   Columbia  Dev. Corporation   Fred  Delk   CEZ,  Inc. Felicia  Maloney   CHDC  &  TNDC    Gloria  Saeed   Eau  Claire  Dev.  Corp   Michael  Strange         Economic  Development   Ryan  Coleman,  Interim       Public Works   Robert  Anderson   Finance  *  Jan  Alonso  *Division  of  Customer  Care will be  moved  to  the  Finance  Department   **Division  of  Code Enforcement  will be  moved  to  Columbia  Police  Department      Utilities &  Engineering  Joey  Jaco   Information  Technology   Vacant ‐ CIO   9 10 CITY OF COLUMBIA, SOUTH CAROLINA Finance Department Organizational Chart As of June 30, 2015 Finance Director Jan Alonso, CGFO Senior Office Assistant Latisha Grice         Deputy Finance Director Dennie Ulmer, CPA Accounting Manager Rashad Rogers, CGFO Payroll Marilyn Dorley– Supervisor Kimelisa Kinloch-Gaines Crystal Minelli Accounts Receivable Melissa Hughey Grants and Special Projects Charles Myers Banking and Investments Ginger Page, CGFO Glenn Sharpe Special Revenue Accountant Vacant Accounts Payable Michelle Haynes Lashaun McFarland Anne Thomas Linda Fikas Fixed Assets Edith Fisher General Fund Accountant Amanda Nelson-Bedenbaugh, CGFO Water & Sewer Accountant Tammy Smith, CGFO Parking & Hospitality Accountant Jessica Cartzendafner, CGFO FINANCIAL SECTION     Columbia  •  Charleston  •  Florence  •  Georgetown  •  Hilton  Head  •  Myrtle  Beach  •  Pawley’s  Island  •  Summerville  •  Sumter     Members   SC  Association  of Certified Public  Accountants  1301 Gervais  Street,  Suite  1950 (29201) NC Association  of Certified Public  Accountants   Columbia, South  Carolina Member   803‐312‐0001,  Fax  803‐ 255‐8886   Division  for CPA  Firms,  AICPA  www.websterrogers.com     McGladrey Alliance  is a premier  affiliation  of independent  accounting and consulting  firms. McGladrey  Alliance  member  firms maintain  their name,  autonomy  and  independence  and are  responsible  for their own  client fee  arrangements,  delivery of services  and maintenance  of  client relationships.   Independent Auditors’ Report The Honorable Stephen K. Benjamin, Mayor and Members of City Council City of Columbia, South Carolina Columbia, South Carolina Report on the Financial Statements We have audited the accompanying financia l statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund , and the aggregate remaining fund information for the City of Columbia (the City), as of and for the year ended June 30, 2015, and the related notes to the financial statements, which collectively comprise the City’s basic financial st atements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair present ation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ Responsibility Our responsibility is to express opinions on these financial st atements based on our audit. We did not audit the financial statements of Midlands Authority for Conv entions, Sports, and Tourism, a discretely presented component unit of the City of Columbia, which represent 45.48%, 54.25%, and 75.17%, respectively, of the assets, net position, and revenues of the aggregate discretely presented component units. Those stat ements were audited by other auditors, whose report has been furnished to us, and our opinion, insofar as it relates to the amounts included for Midlands Authority for Convention, Sports a nd Tourism is based solely on the report of the other auditors. We conducted our audit in accordance with auditing standards generally accepted in the Unit ed States of America and the standards applicable to the financial audits contained in Government Auditing Standards issued by the Comptroller General of the Unit ed States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit involves performing procedures to obtain evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, includin g the assessment of the risks of material misstatement of the financial statements, whether due to fr aud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentati on of the financial statements in order to design audit procedu res that are appropriate in the ci rcumstances, but not for the purpose of expressi ng an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinio n. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of signif icant accounting estimates made by management as well as evaluating the overall financia l statement presentation. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Opinions In our opinion, based on our audit and the report of other auditors, the financial statements referred to above present fairly, in all material respects, the respective financial position of t he governmental activities, the business-type activities, the aggr egate discretely presented component un its, each major fund, and the aggregate remaining fund information of the City of Columbia as of June 30, 2015, and the respective changes in financial po sitio n , and where applicable, cash flows thereof for the year then ended in accordance with accounting principles ge nerally accepted in the United States of America.

11 12 Change in Accounting Principle As discussed in Note VII. C. to the financial statements, the City adopted the provisions of Governmental Accounting Standards Board Statement No. 68, Accounting and Financial Reporting for Pensions , effective July 1, 2014. Our audit opinions are not modified with respect to this matter.

Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that Management ’s Discussion and Analysis; Budgetary Comparison Schedule – General Fund; Schedules of Funding Progress and Empl oyer Contributions – Other Postemployment Benefits; Schedul e of the City’s Contributions; and Schedule of the City’s Proportionate Share of the Net Pension Liability, as listed in the table of contents, be pres ented to supplement the basic financial statements. Such information, although not part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial report ing for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applie d certain limited procedures to the required supplementary information in accordance with auditing standards generally acc epted in the United States of America which consisted of inquiries of management about the method s of preparing the information and comparin g the information for consistency with management’s responses to our inquiries, the basic financial st atements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assuranc e on the information because the limited procedures do not provide us with sufficient evidenc e to express an opinion or provide any assurance.

Supplementary and Other Information Our audit was conducted for the purpose of forming opinions on t he financial statements that collectively comprise the City’s basic financial statements. The introductory section, combining and indivi dual nonmajor fund statements and schedules, supplementary information to the financial statements, and the statistical section, as listed in the accompanying table of contents, are presented for purposes of additional analysis and are not a required part of the financial statements. The Schedule of Fines, Assessments and Surcharges listed in t he Table of Contents under Supplementary Information is presented for purposes of additional analysis as required by t he State of South Carolina and is not a required part of the financial statements. The combining and individual nonmajor fund financial stat ements and schedules and supplementary information are the responsibility of management and were derived from and relate di rectly to the underlying accounting and other records used to prepare the financial statements. Such information has been subj ected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America by us and other auditors. In our opinion, based on our audit, the procedures performed as described above, and the report of the other auditors, the combining and individual nonmajor fund financial statements and schedules and supplementary information are fairly stated, in all material respects, in relation to the basic financial statements as a whole . The introductory section and statistical sect ions have not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on them. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards , we have also issued our report dated December 29, 2015, on our consi derati on of the City’s intern al control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agr eements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and co mpliance and the results of that testing and not to provide an opinion on the internal control over financial reporting or on co mpliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance. Columbia, South Carolina December 29, 2015 CITY OF COLUMBIA, SOUTH CAROLINA Management’s Discussion and Analysis (Unaudited) June 30, 2015 13 As management of the City of Columbia (the “City”), we offe r readers of the City’s financial statements this narrative overview and analysis of the financial activities of the City for the year ended June 30, 2015, as part of the overall Comprehensive Annual Financial Report (CAFR). This over view compares the year ended June 30, 2015, with the year ended June 30, 2014. The M anagement’s Discussion and Analysis is intended to highlight significant transactions, events, and conditions, and readers are encouraged to consider the information presented here, in conjunction with the letter of transmittal, which can be found on the pages indicated in the table of contents of this report. This discussion and analysis is intended to pr ovide a broad overview using a short-term and long-term analysis of the City’s activities based on information presented in the financial report and fiscal policies that have been adopted by City Council (the “C ouncil”). The intent of this discussion and analysis is to (a) assist the reader in focusing on significant financial issues, (b) provide an overvi ew of the City’s financial activities, (c) identify changes in the City’s financial position, (d) identify significant deviations from the approved general fund budget, and (e) highlight significant issues in the individual funds.

Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements which are comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves.

Financial Highlights  The assets and deferred outflows of the City exceeded its liabilities and deferred inflows at the close of 2015 by $709,483,129. This amount represents the Ci ty’s net position. Of this amount, $115,632,534 in unrestricted net position may be used to meet the City’s ongoing obligations.

 The City’s total net position increased by $16,364, 117 ($10,980,199 from governmental activities and $5,383,918 from business-type activities) as total revenues of $309,850,157 exceeded total expenses of $294,987,316. This increase in net position for the cu rrent year is approximately $7,534,900 less than the prior year and is due primarily to the increased co sts incurred by the Water and Sewer Facilities Fund related to compliance with the consent decree and additional depreciation expense on completed construction projects.  As of June 30, 2015, the City’s governmental funds reported combined ending fund balances of $100,785,186. The unrestricted General Fund balanc e (i.e., committed, assigned, and unassigned) of $30,816,689 is available for spending at the City’s di scretion and represents approximately 23.25% of the General Fund’s actual expenditures and tran sfers out for the year ended June 30, 2015.

 The City’s total capital assets were $1,038,180,7 74 as of June 30, 2015, increasing $46,503,555 (4.69%).

This increase was the result of additions of $22, 672,088 in governmental activities and $73,146,603 in business type activities offset by depreciation ex pense and net disposals of $13,207,146 in governmental activities and $36,107,990 in business-type activities.

 The City’s long-term debt at June 30, 2015, totaled $607,312,228, a net increase of $15,902,500 or 2.69% from the balance at June 30, 2014, of $591,409,728. This net increase was the result of $31,141,791 in principal payments, $2,088,548 in premium amortizati on, the issuance of a $29,922,839 hospitality revenue bond (including premium) in the miscellaneous projects capital fund, the issuance of a $7,000,000 capital lease obligation in the general fund, and the issu ance of a $12,210,000 revenue bond in the parking facilities fund.

 As of June 30, 2015, the City’s General Obligation b onds were rated AA+ by Standard and Poor’s and AA1 by Moody’s. The City’s Water and Sewer Facilities revenue bonds were rated AA by Standard and Poor’s and AA1 by Moody’s. The City’s Parking Facilities revenue bonds were rated BBB+ by Standard and Poor’s and A2 by Moody’s.

CITY OF COLUMBIA, SOUTH CAROLINA Management’s Discussion and Analysis (Unaudited) June 30, 2015 14 Using This Annual Report This discussion and analysis is intended to serve as an intr oduction to the City of Columbia’s financial statements.

This annual report consists of a series of financial stat ements. The Statement of Net Position and the Statement of Activities (on the pages identified in t he table of contents) provide information about the activities of the City as a whole and present a longer-term view of the City’s financ es. Fund financial statements start on page 31. For governmental activities, these statements tell how these services were financed in the short term as well as what remains for future spending. Fund financial statements al so report the City’s operations in more detail than the government-wide statements by providi ng information about the City’s most significant funds. The remaining statements provide financial information about activities for wh ich the City acts solely as a trustee or agent for the benefit of those outside the government. In addition to the financial statements, this report contains other supplementary information that will enhance the reader’s understanding of the financial condition of the City of Columbia.

Government-wide financial statements – The government-wide financial statements are designed to provide readers with a broad overview of the City’s finances in a manner similar to a private-sector business. The government-wide financial statements provide both short- term and long-term information regarding the overall financial position of the City.

The Statement of Net Position presents information on all of the City’s assets, liabilities, deferred outflows, and deferred inflows with the difference between all of the item s reported as Net Position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating.

The Statement of Activities presents information show ing how the City’s net position changed during the most recent fiscal year. All changes in net position are repo rted as soon as the underlying event giving rise to the change occurs regardless of the related timing of the cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash fl ows in future fiscal periods (e.g. uncollected taxes and earned but unused annual leave). Both of the governmen t-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are designed to recover all or a signific ant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include general government, judicial, finance, community development and planning, public safety, parks and recreation, public services, general services, and community promotions. Governmental activities are financed primarily through property taxes, business licenses and permits, intergovernmental revenues, and federal and state grants.

The business-type activities of the City include Wa ter and Sewer, Parking, Stormwater, Hydro-Electric, Redevelopment Programs, Parks and Recreation Camps, and Economic Development. These activities are financed in whole or in part primarily through fees charged to external parties for goods and services.

The government-wide statements include not only the City itself (known as the primary government), but also the legally separate Public Facilities Corporation; Columbia Parking Facilitie s Corporation; Columbia Development Corporation; Columbia Housing Development Corporation; Eau Claire Development Corporation; Midlands Authority for Conventions, Sports and Tourism; TN Development Corporation; and the Columbia Empowerment Zone, Inc., for which the City is financially accountable. Financial information for these component units is reported separately from the financial information presented for the primary government itself, exc ept for the Public Facilities Corporation and the Columbia Parking Facilities Corpor ation, whose statements are blended with the primary government.

The government-wide financial statements can be found following this section of the report.

CITY OF COLUMBIA, SOUTH CAROLINA Management’s Discussion and Analysis (Unaudited) June 30, 2015 15 Fund financial statements – A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrat e compliance with finance-related legal requirements. All of the City’s funds can be divided into three categorie s: governmental funds, proprietary funds, and fiduciary funds. Our analysis of the City’s major funds begins on page 24. The fund financial statements beginning on page 31 provide detailed information about the most significant f unds – not the City as a whole. Some funds are required to be established by State law and by bond covenants. Howe ver, the City Council established many other funds to help it control and manage for particular purposes or to show it is meeting legal responsibilities for using certain taxes, grants, and other money. The City’s three kinds of funds – governmental, proprietary, and fiduciary – use different accounting approaches. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide statements. Howe ver, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating the City’s near-term financing requirements. Most of the City’s basic services are reported in governmental funds which focus on how money flows into and out of these funds a nd the balances that are left at year-end that are nonspendable, restricted, committed, assi gned, or unassigned. These classifications of fund balance show the nature and extent of constraints placed on the City’s fund balances by law, creditors, and City Council. Unassigned fund balance is available for spending for any purpose. These funds are reported using an accounting method called modified accrual accounting which measures cash and all other financial assets that can be readily converted to cash. The governmental funds present a det ailed short-term view of the City’s general government operations and the basic services it provides. Governm ental fund information helps you determine whether there are more or fewer financial resources that can be spent in the near future to finance the City’s programs. Because the focus of governmental funds is narr ower than that of the government-wide fi nancial statements, it is useful to compare the information presented for the governmental funds with similar information presented for governmental activities in the government-wide statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. We describe the relationship (or differences) between governmental activities (reported in the statement of net position and the statement of activities) and governmental funds in reconciliations following the governmental funds balance sheet and the governmental funds statement of revenues, expenditures and changes in fund balances. The City utilizes five generic governmental fund types (see Section I Note B in the notes to the financial statements). The City maintains 17 individual governmental funds within these generic fund types. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balance for the general fund and county services fund which are considered to be major funds. Data from the 15 other governmental funds are combined into a single aggregated presentation. Individual fund data for each of these 15 nonmajor gover nmental funds is provided in the form of combining statements elsewhere in this report.

The City adopts an annual appropriated budget for its gene ral fund. A budgetary comparison schedule has been provided as Required Supplementary Information for the general fund to demonstrate compliance with this budget. The governmental funds financial st atements immediately follow the government-wide financial statements.

The City has a formal fund balance policy applicable to governmental funds. The policy defines fund balance categories consistent with Governmental Accounting St andards Board Statement 54, sets spending priority within the categories, and established the authority to commit or assign balances. For a full discussion of the City’s fund balance policy, please refer to the Notes to the Financial Statements, Section I. F. Fund Balances.

Proprietary Funds – T he City maintains two different types of proprietary funds. Enterprise funds are used to report the same functions as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for the business-type activi ties of the Water and Sewer system, Parking system, Stormwater system, Hydro-electric plant, Redevelopm ent Programs, Parks and Recreation camps, and Economic Development activities. CITY OF COLUMBIA, SOUTH CAROLINA Management’s Discussion and Analysis (Unaudited) June 30, 2015 16 An internal service fund is an accounting device used to accumulate and allocate costs internally among the City’s various functions. The City uses internal service funds to account for the maintenance and operation of its fleet of vehicles, its risk management function, and its supp ort services. Because these services benefit both governmental activities and business-type functions, the net position and change in net position have been allocated between governmental activities and business-ty pe activities in the government-wide financial statements. Proprietary funds provide the same type of information as the business type activities in the government-wide financial statements. The City maintains seven enterprise type funds. The proprietary fund financial statements provide separate information for the water and sewer system and the parking system which are considered to be major funds of the City. Data from the other five f unds are combined into a single aggregated presentation.

Individual fund data for each of these nonmajor business- type funds is provided in the form of combining statements elsewhere in this report. Conversely, all th ree internal service funds are combined into a single aggregated position in the proprietary fund financial statements. Individual fund data for the internal service funds is provided in the form of combining statements elsewhere in this report. Because the internal funds predominately benefit governmental rather than business-type activities, the internal service funds have been included within the governmental activities in the government-wide statements. The proprietar y fund financial statements follow the governmental fund financial statements.

Fiduciary Funds - Fiduciary funds are used to account for resour ces held for the benefit of parties outside of the government. Fiduciary funds are not reflected in the gov ernment-wide financial statements because the resources of those funds are not available to support the City’s own programs. Trust funds are used to account for resources received and held by the City as truste e. The accounting for fiduciary fund is much like that used for proprietary funds. The fiduciary fund financial statement s follow the proprietary funds statements.

Notes to the Financial Statements – The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes can be found following the basic financial statements.

Other Information - In addition to the basic financial statements, this report also contains certain required supplementary information concerning t he City’s progress in funding its obligation to provide pension benefits to its employees and a general fund budgetary comparison schedule to demonstrate compliance with the budget.

Required supplementary information can be found following the notes in this report. The combining and individual fund statements, referred to earlier in connection wi th the nonmajor governmental and proprietary funds, are presented immediately following the required supplementary information.

Financial Analysis – Government-wide Statements As noted earlier, Net Position may serve over time as a usef ul indicator of a government’s financial position. In the case of the City, assets and deferr ed outflows exceed liabilities and deferred inflows by $709,483,129 as of June 30, 2015. The City’s overall financial position improved, and net position increased by $16,364,117 during the year ended June 30, 2015. This increase of $16,364,117 is a decr ease from the prior year. This decrease is primarily the result, in the business activities, of increased exp enses in the Water and Sewer Facilities Fund relating to the consent decree with the Environmental Protection Agency and additional depreciation expense on completed water and sewer projects related to the consent decree. The cons ent decree requires the City to make significant repairs and upgrades to the sewer system to pr event sanitary sewer overflows. Water and sewer fund revenues, as well as stormwater fund revenues, showed a modest increase during the current fiscal year. Water and sewer revenues increased primarily due to increased consumption from new customers added during the fiscal year. Stormwater revenues increased due to a one-time receipt of funds fr om the South Carolina Department of Transportation. Parking revenues increased primarily due to the completi on of a new apartment complex in the downtown area. This complex rented parking space in the City’s Sumter Stre et parking garage. The decrease in hydro-electric plant fees resulted from less electricity being generated due to low water levels in the canal and a reduction in the amount of incentive payments from the op erator of the facility. In the governmental activities, the increase in collections from business licenses resulted primarily from a two percent fee increase and the continuing economic recovery. Improved economic conditions also resulted in an increase in the collection of sales taxes and hospitality taxes. Less revenue was reported in the County Services Fund due to the City refunding approximately $2,146,800 in fees back to Richland County during the current year in an attempt to operate the fund on a break even basis. This reduction was offset in part by increased funding from the State of South Carolina to assist in the repaving of highways. Property tax revenue decreased slightly due to a reduction in assessed property values. Table 1 summarizes the major categories of assets, deferred outfl ows, liabilities, deferred inflows, and net position for governmental activities, business type activities, and the City has a whole. CITY OF COLUMBIA, SOUTH CAROLINA Management’s Discussion and Analysis (Unaudited) June 30, 2015 17 Table 1 City of Columbia Statement of Net Position As of June 30, 2015 and June 30, 2014 A s of June 30, A s of June 30, A s of June 30, A s of June 30, A s of June 30, A s of June 30, 2015 2014 2015 2014 2015 2014 Current and other as sets 211,241,380 $ 169,701,591$ 345,605,104$ 385,437,503 $ 556,846,484 $ 555,139,094$ Capital as sets , net of deprec iation 221,655,500 212,190,558 816,525,274 779,486,661 1,038,180,774 991,677,219 Total as sets 432,896,880 381,892,149 1,162,130,378 1,164,924,164 1,595,027,258 1,546,816,313 Def erred outf low s of res ourc es 14,470,968 3,950,107 37,866,038 27,741,893 52,337,006 31,692,000 Total as sets and def erred outf low s of res ourc es 447,367,848 385,842,256 1,199,996,416 1,192,666,057 1,647,364,264 1,578,508,313 Long-term liabilities outs tanding 293,065,198 143,467,480 564,275,506 528,829,611 857,340,704 672,297,091 Other liabilities 33,078,115 25,822,238 28,765,714 25,910,878 61,843,829 51,733,116 Total liabilities 326,143,313 169,289,718 593,041,220 554,740,489 919,184,533 724,030,207 De ferred in flow o f res ourc es 14,809,030 2,521,972 3,887,572 - 18,696,602 2,521,972 Net position Net investment in c apital as sets 162,102,481 156,454,488 368,742,602 375,763,776 530,845,083 532,218,264 Res tric ted 53,653,231 30,669,437 9,352,281 9,330,640 63,005,512 40,000,077 Unrestric ted (109,340,207) 26,906,641 224,972,741 252,831,152 115,632,534 279,737,793 Total net position 106,415,505 $ 214,030,566$ 603,067,624$ 637,925,568 $ 709,483,129 $ 851,956,134$ A ctivities Gov ernmental A c tivities Business-type Primary GovernmentTo t a l As of June 30, 2015, the City is able to report positive balances for the government as a whole as well as for its governmental activities and busines s-type activities, respectively.

The largest portion of the City’s net position, $530,845,083 (74.82%), reflects its investment in capital assets (e.g., land, buildings, machinery, infrastructure, and equipment), less any related debt used to acquire those assets that are still outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending.

Although the City’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources since the capital assets themselves cannot be used to liquidate these liabilities. An additional portion of the City’s net position, $63,005,512 (8.88%), represents reso urces that are subject to external restrictions on how they may be used. The re maining balance of $115,632,534 (16.30%) in unrestricted net position may be used to meet the ongoing obligations of the City.

For governmental activities, the City reported a deficit bal ance in unrestricted net position of $(109,340,207). This deficit resulted from the adoption of GASBS 68 during the current year. GASB S 68 required the City to record its proportionate share of the net pension liability of the cost-sharing retirement plans it participates in. For business- type activities, the City reported a positive balance in un restricted net position of $224,972,741. This is also a decrease as the result of the adoption of GASBS 68.

CITY OF COLUMBIA, SOUTH CAROLINA Management’s Discussion and Analysis (Unaudited) June 30, 2015 18 The City reported a positive balance of $30,816,689 in unrestricted fund balance (committed plus assigned plus unassigned fund balance) for the general fund as of June 30, 2015. Unrestricted fund balance represents the spendable resources available for governmental activities without externally enforceable limitation. The major contributing factors to the difference between unrestri cted fund balance and unrestricted net position are changes in accrued receivables or payables, operating losses in the internal service fund operations, charges related to post-employment benefits, capital assets, debt, and ex penses related to compensated absences and pension benefits. Revenue for the City for the year ended June 30, 2015, which totaled approximatel y $311,351,400, increased from the year ended June 30, 2014. The increase for the City as a whole was approximately $11,285,500 which was an increase of 3.76%. Revenues for the business-type acti vities increased approximately $911,600 (0.63%). Water and sewer operating revenues increased approximately $3,072,400 (2.63%). This was primarily due to additional customers added during the year and increased consumption. The Hydro El ectric Facilities Fund showed a decrease of approximately $1,806,0 00 (-37.28). The hydroelectric plant is a “run of the river” hydro plant. As such the amount of flow in the canal has a significant impact on the plant’s ability to generate electricity. During fiscal year 2015 there was approximately a 36% dip in flow in the canal. This dip in flow limited the ability to generate electricity which resulted in a decrease in revenue. Stormwater revenues increased during the fiscal year approximately $562,900 (8.09%) due to one-time funding re ceived during the year from the South Carolina Department of Transportation. Parking revenues increas ed approximately $650,500 (10.01%) during the fiscal year primarily due to an apartment complex opening in the downtow n area. The complex leased parking spaces in the City’s Sumter Street Garage. Rev enue from governmental activities for the year ended June 30, 2015, which totaled approximately $167,746,000, represented an increase from the year ended June 30, 2014, of approximately $10,374,200 (6.59%). The majority of the increase resulted from a two percent increase in franchise fees enacted during the fiscal year. The City also received additional revenue as a result of the increase in the hydrant fees charged to water users living outside the city limits. Business license revenue and sales tax collections provided the majority of the remaining increase as the downtown revitalization continued to attract additional business and the overall general economy continued to show improvement.

Table 2 City of Columbia’s Changes in Net Position Years Ended June 30, 2015 and June 30, 2014 Y ear Ended Y ear Ended Y ear Ended Y ear Ended Y ear Ended Y ear Ended June 30, 2015 June 30, 2014 June 30, 2015 June 30, 2014 June 30, 2015 June 30, 2014 Rev enues :

Program rev enues Charges f or s erv ic es General gov ernment 726,487 $ 758,177$ - $ -$ 726,487$ 758,177 $ Financ e 37,837,666 31,467,056 - - 37,837,666 31,467,056 Community dev elopment 799,663 832,159 - - 799,663 832,159 Public saf ety 22,811,461 22,040,936 - - 22,811,461 22,040,936 Parks and rec reation 822,319 818,304 - - 822,319 818,304 Public serv ices 258,211 344,718 - - 258,211 344,718 Water/sew er f ac ilities - - 119,716,789 116,644,423 119,716,789 116,644,423 Hydro-elec tric plant - - 3,037,971 4,843,922 3,037,971 4,843,922 Stor mw ater f ac ilities - - 7,521,149 6,958,281 7,521,149 6,958,281 Par king f ac ilities - - 7,145,520 6,495,064 7,145,520 6,495,064 Redev elopment programs - - 680,111 564,456 680,111 564,456 Parks and rec reation c amps - - 300,931 275,182 300,931 275,182 Operating grants and c ontributions General gov ernment 5,440,411 2,339,163 - - 5,440,411 2,339,163 Community dev elopment 3,363,032 3,120,983 - - 3,363,032 3,1 20,983 Public saf ety 20,029,516 23,203,634 - - 20,029,516 23,203,634 Public serv ices 294,858 298,722 - - 294,858 298,722 Community promotion 5,852,478 5,485,700 - - 5,852,478 5,485,700 Capital grants and c ontributions General gov ernment 2,134,035 393,750 - - 2,134,035 393,750 Public serv ices 935,401 373,087 - - 935,401 373,087 Water/sew er f ac ilities - - 3,872,664 5,431,910 3,872,664 5,431,910 General rev enues General property tax es 34,178,067 34,353,070 - - 34,178,067 34,353,070 Loc al Option Sales Tax 16,385,254 16,465,463 - - 16,385,254 16,465,463 Sales tax es 12,626,419 12,072,024 - - 12,626,419 12,072,024 Motor f uel taxes 3,348 1,381 - - 3,348 1,381 State s hared rev enue 2,829,726 2,805,133 - - 2,829,726 2,805,133 Unrestricted investment earnings 163,175 89,001 1,226,558 1,158,475 1,389,733 1,247,476 Gain on dis pos al of capital as s ets 254,447 109,361 103,766 322,133 358,213 431,494 Total revenues 167,745,974 157,371,822 143,605,459 142,693,846 311,351,433 300,065,668 G o vernmental Bus iness -ty pe Total A c tiv ities A c tivitiesPrimary Gov ernment CITY OF COLUMBIA, SOUTH CAROLINA Management’s Discussion and Analysis (Unaudited) June 30, 2015 19 Table 2 City of Columbia’s Changes in Net Position (Continued) Years Ended June 30, 2015 and June 30, 2014 Y ear Ended Y ear Ended Y ear Ended Y ear Ended Y ear Ended Y ear Ended June 30, 2015 June 30, 2014 June 30, 2015 June 30, 2014 June 30, 2015 June 30, 2014 Governmental Busines s -ty pe Total Activities Activities Primary Government Ex pens es :

General government 8,050,355 $ 8,049,816$ -$ -$ 8,050,355$ 8,049,816$ Judic ial 2,749,136 2,615,194 - - 2,749,136 2,615,194 Financ e 1,886,778 1,726,481 - - 1,886,778 1,726,481 Community dev elopment 5,791,062 5,787,850 - - 5,791,062 5,787,850 Public s af ety 87,251,472 84,053,096 - - 87,251,472 84,053,096 Parks and rec reation 13,081,872 12,290,401 - - 13,081,872 12,290,401 Public s erv ic es 24,282,518 21,960,858 - - 24,282,518 21,960,858 General s erv ic es 5,269,511 4,933,285 - - 5,269,511 4,933,285 Community promotion 10,660,364 12,872,657 - - 10,660,364 12,872,657 Interes t on long-term debt 4,491,254 2,955,994 - - 4,491,254 2,955,994 Non-departmental 2,141,310 2,515,184 - - 2,141,310 2,515,184 Water /s ew er f ac ilities - - 113,273,814 100,389,819 113,273,814 100,389,819 Hy dro elec tric plant - - 2,422,544 3,012,376 2,422,544 3,012,376 Stor mw ater f ac ilities - - 4,814,419 5,668,819 4,814,419 5,668,819 Par king f ac ilities - - 7,678,876 6,162,449 7,678,876 6,162,449 Redev elopment programs - - 835,812 848,141 835,812 848,141 Parks and rec reation c amps - - 306,219 324,209 306,219 324,209 Total ex penses 165,655,632 159,760,816 129,331,684 116,405,813 294,987,316 276,166,629 Inc reas e (dec reas e) in net pos ition bef ore trans f ers 2,090,342 (2,388,994) 14,273,775 26,288,033 16,364,117 23,899,039 Trans f ers 8,889,857 9,031,340 (8,889,857) (9,031,340) - - Inc reas e in net pos ition 10,980,199 6,642,346 5,383,918 17,256,693 16,364,117 23,899,039 Net position, beginning of period * 95,435,306 207,388,220 * 597,683,706 620,668,875 * 693,119,012 828,057,095 Net position, end o f period 106,415,505 $ 214,030,566 $ 603,067,624$ 637,925,568$ 709,483,129$ 851,956,134 $ * As restated for implementation of GASB 68 (see Note VII. C). Total expenses for the City were approximately $294,987, 300 for the year ended June 30, 2015. This represents an increase of approximately $18,820,700 (6.81%) when compar ed to the year ended June 30, 2014. This overall increase resulted from an increase of approximately $5, 894,800 in governmental activities and an increase of approximately $12,925,900 in business-type activities. Most of the increase in governmental activities is related to the City’s commitment to public safety during the curre nt year. Not only were there additional policemen added during the current year, there was investment in new te chnology and equipment. Additional costs were incurred with the City’s revitalization of the Bull Street Commons area. As a result of the increase in the amount of hospitality taxes collected, the City was able to increase its support of community organizations during the current fiscal year by approximately $1,000, 000. The majority of the remaining increase is the result of the increase in debt related expenses resulting from the issuance of a capital lease and a hospitality revenue bond during the current year. Expenses for business-type activities increased by approximately $12,925,900, or 9.99%, compared to the year ended June 30, 2014. The overall increase in expenses was primarily due to an increase in repairs and maintenance projects undertaken during the current year to comply with the consent decree the City executed with the Environmental Protection Agency, additional deprec iation expense on completed water and sewer projects related to the consent decree, and the in crease in retirement expenses related to the City’s adoption of GASBS 68. This resulted in an increase of appr oximately $12,884,000 in expenses in the Water and Sewer Facilities Fund. The Hydro Electric Facilities fund expe nses decreased by approximately $589,800. This decrease is primarily due to the way the contract with the company that operates t he hydro-electric plant for the City is structured. The operating company’s compensation is based on a percentage of revenue generated. Therefore, as operating revenues decrease, operating costs w ill likewise decrease. When compared to the prior year, the Stormwater CITY OF COLUMBIA, SOUTH CAROLINA Management’s Discussion and Analysis (Unaudited) June 30, 2015 20 Facilities Fund expenses decreased by approximately $854,400. This decrease was a result of personnel related costs, primarily insurance related costs, decreasing during fiscal year 2015 due to a change in allocation methods. When compared to the prior year, the Parking Facilities Fund expenses increased by approximately $1,516,400. This increase was the result of additional repair costs on the garages, installation of new technology, debt related costs due to the issuance of a refunding bond during the current year, and increase retirement expense due to the adoption of GASBS 68. The ex penses for the remaining programs remained virtually unchanged compared to the year ended June 30, 2014.

The City’s net position increased by $16,364,117 during the year ended June 30, 2015. The net position for governmental funds increased by $10,980, 199, while the change in net position of business-type funds increased by $5,383,918. The overall net position increase of the City was approximately $7,534,900 less when compared to the prior fiscal year. This overall decrease was the comb ination of an approximately $4,337,900 increase in the governmental activities and an approximat ely $11,872,800 decrease in business-type activities. The main factor in the overall decrease was the increased repair and maintenance costs in the water and sewer fund and the parking fund, increased depreciation expense in the water and sewe r fund and the increased retirement related costs in the business-type activity funds with personnel in fiscal year 2015.

Governmental Activities – A comparative analysis of the governmental activities expenses and program revenues is presented below.

Figure 1 Program Revenues Compared to Expenses Governmental Activities Year Ended June 30, 2015  $ ‐   $10,000,000   $20,000,000   $30,000,000   $40,000,000   $50,000,000   $60,000,000   $70,000,000   $80,000,000   $90,000,000 Program  Revenues  Compared  to  Expenses Governmental  Activities Expenses Program  Revenue    CITY OF COLUMBIA, SOUTH CAROLINA Management’s Discussion and Analysis (Unaudited) June 30, 2015 21 Figure 2 Program Revenues by Source Governmental Activities Year Ended June 30, 2015 Business-type Activities – The net position of the City’s business-type activities increased by approximately $5,383,900 for the year ended June 30, 2015. This growth is primarily attributable to the operations of the water and sewer and stormwater departments. A comparativ e analysis and discussion of expenses and program revenues for these enterprise op erations is presented below.

Figure 3 Program Revenue Compared to Expenses for Business-type Activities Year Ended June 30, 2015 General  government 4% Finance 34% Community   development 4% Public  safety 50% Parks  and  recreation 1% Public  services 1% Community   promotion 6% Program  Revenues  by Source Governmental  Activities General  government Finance Community  development Public  safety Parks  and  recreation Public  services Community  promotion   $ ‐   $20,000,000   $40,000,000   $60,000,000   $80,000,000   $100,000,000   $120,000,000   $140,000,000 Program  Revenue  Compared  to  Expenses     Business ‐type  Activities Expenses Program  Revenues CITY OF COLUMBIA, SOUTH CAROLINA Management’s Discussion and Analysis (Unaudited) June 30, 2015 22 Figure 4 Program Revenues by Source for Business-type Activities Year Ended June 30, 2015 Water and Sewer Facilities Fund – The net position for the water and sewer facilities fund for the year ended June 30, 2015, increased by approximately $4,491,500.

Table 3 Water and Sewer Facilities Fund Revenues and Expenses Years Ended June 30, 2015 and June 30, 2014 20152014 Re ve nue s Tot al operat ing revenues 118, 178, 523 $ 116,498,720 $ Non-operat ing revenues (281, 047) 1,425,545 Development c ont ribut ions 3, 872, 664 5,431,910 Tot al revenues 121, 770, 140 123,356,175 Ex pe nse s Tot al operat ing ex pens es 98, 033, 982 89,855,344 Interest and amortiz ation expens e 10,414,620 9,496,543 Trans fers , net 8, 830, 077 8,058,247 Total ex pens es 117,278,679 107,410,134 Change in net pos ition 4,491,461 $ 15,946,041 $ Year Ended June 30, Total operating revenues, which primarily consist of wate r and sewer fees, increased by approximately $1,679,800, or 1.44%, to $118,178,523. The increase in operating re venues was due primarily to increased consumption. Sewer fees also increased for the same reason. The decrease in non-operating revenues was due to losses incurred in disposing of capital assets. Contributed infrastructure rev enue decreased approximately $1,559,200 from the year ended June 30, 2014, as new construction decreased from prior year. Total revenues for the year ended June 30, 2015, decreased approximately $1,586,000, or 1.29%, to $121,770,140.

Total operating expenses increased by approximately $8,178,600, or 9.10%, to $98,033,982 when compared to the year ended June 30, 2014. This increase was primarily the re sult of increase in maintenance and repair projects to the system in fiscal 2015 as part of the City’s compliance with the consent decree and additional depreciation 96% 4% Program  Revenues  by  Source    Business ‐type  Activities Charges  for  services Capital  grants CITY OF COLUMBIA, SOUTH CAROLINA Management’s Discussion and Analysis (Unaudited) June 30, 2015 23 expense. The increase in operating expenses exceeded the increase in operating revenue resulting in an operating margin decrease of approximately $4, 491,500 compared to the year ended June 30, 2014.

Interest expense increased by approximately $918,100 as le ss interest was capitalized in fiscal year 2015 due to completion of construction projects financed by bond pr oceeds. Net transfers in fiscal year 2015 increased by approximately $771,800 from fiscal year 20 14 due to the increased transfer to the internal service fund to cover the increased health care costs. Total expenses increas ed by approximately $9,868,500, or 9.19%, to approximately $117,278,700. The increase in water and sewer repair cost s and retirement costs, along with the decrease in contributed infrastructure were the primary reasons change in net position increased by $4,491,461 for the year ended June 30, 2015.

The restricted portion of the water and sewer facilities f und’s net assets represents debt service reserve funds that are restricted under various bond ordinances.

Parking Facilities Fund – The net position of the Parking Facilities Fund for the year ended June 30, 2015, decreased by approximately $593,600.

Table 4 Parking Facilities Fund Revenue and Expenses Years Ended June 30, 2015 and June 30, 2014 20152014 Re ve nue s Tot al operat ing revenues 7, 040, 165 $ 6,386,389 $ Non-operat ing revenues 183, 805 206,066 Gain (loss) on sale of assets 3,690 - Tot al revenues 7, 227, 660 6,592,455 Ex pe nse s Tot al operat ing ex pens es 5, 082, 334 4,556,545 Interest and amortiz ation expens e 2,416,329 1,508,716 Trans fers , net 322, 586 178,323 Total ex pens es 7,821,249 6,243,584 Change in net pos it ion (593, 589) $ 348,871 $ Year Ended June 30, Total operating revenues, which primarily consist of parking fees and fines, increased by approximately $653,800, or 10.24%, to $7,040,165. The increase in operating revenues was due primarily to the recovery of parking spaces lost in the downtown area during fiscal year 2014 due to construction activity and the increase in space rented due to the completion of a new apartment complex in t he downtown area. Non-operating revenue decreased by approximately $22,300 due primarily to a continued decline in interest rates and less unspent bond proceeds to invest. Total revenues for the year ended June 30, 2015, increased approximately $635,200, or 9.94%, to $7,227,660 primarily as a result of the increase in ava ilable parking spaces and additional spaces rented under long term rental agreements.

Total operating expenses increased by approximately $525,800, or 11.54%, to $5,082,334 when compared to the year ended June 30, 2014. This was primarily the result of technology upgrades to select parking garages and increase retirement related expenses due to the adoption of GASBS 68. The increase in operating revenues offset increase in operating expenses resulting in an operating margin increase of approximately $128,700 compared to the year ended June 30, 2014.

Interest and amortization expense increased in fiscal y ear 2015 by approximately $907,600, or 60.16%, when compared to fiscal year 2014 due to additional debt outstanding and the costs related to issuing the refunding debt. Net transfers increased in fiscal year 2015 by approx imately $144,300 when compared to fiscal year 2014. The increase was due to increased transfers to the internal serv ice funds to cover increased health care costs. Total CITY OF COLUMBIA, SOUTH CAROLINA Management’s Discussion and Analysis (Unaudited) June 30, 2015 24 expenses increased by approximately $1, 577,700, or 25.27%, to $7,821,249. Debt issuance costs, increased health care costs, and retirement related costs were the main reasons for the increase in total expenses. Financial Analysis of the City’s Funds As noted earlier, the City uses fund accounting to ensur e and demonstrate compliance with finance-related legal requirements.

Governmental funds – The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such info rmation is useful in assessing the City’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year.

As of June 30, 2015, the City’s governmental funds re ported combined ending fund balances of approximately $100,785,200, an increase of approximately $28,405,600. Unassigned fund bal ance is available for spending at the City’s discretion. As of June 30, 2015, the City has an unassigned fund balance of approximately $21,336,100, a decrease of approximately $3,723,800 compar ed to the year ended June 30, 2014.

The general fund is the chief operating fund of the City. During the year ended June 30, 2015, the fund balance of the general fund increased by approx imately $7,399,400 to approximately $36,393,700. The increase in fund balance was made possible by revenue collections that exceeded the adopted budget along with closely monitored spending. The major portion of the 2015 surplus was due to increased collections from franchise fees due to the enactment of a two percent increase in the amount of fee to be collect ed. This rate increase resulted in approximately $4,800,000 in additional f ees being collected. Unspent funds of approximately $4,880,600 from the issuance of a capital lease was also a major contributor to the surplus. The unassigned fund balance, which is available for use without restriction, decreased by approximately $2,707,800 to approximately $22,352,200. Unrestricted fund balance is the combination of una ssigned fund balance ($22,352,200), assigned fund balance ($3,654,100), and committed fund balance ($4,810,400), and totals approximately $30,816,700. The remainder of the fund balance in the general fund is comprised of approximately $4,880,700 in restricted fund balance and $696,400 in nonspendable fund balance. As a measure of liq uidity, it may be useful to compare both unassigned fund balance and total fund balance to total fund expenditures.

The County Services fund is used to report funds rece ived from Richland County, South Carolina to offset costs incurred by the City of Columbia in providing fire services and 911 emergency communications services to Richland County citizens living outside the incorporated area of the City of Columbia. Collections for the year ended June 30, 2015, decreased by approximately $2,442,000, or 11.36%, due to the Ci ty refunding a portion of the fees received during the current year, back to Richland County. The fund is intended to operate on a break even basis and the current year fees were refunded in an attempt to achieve the break even objective. Expenditures for the year ended June 30, 2015, increased by approximately $496, 000 primarily due to increased personnel costs and normal price increases of goods and services.

Proprietary funds – The statements of the City’s proprietary fund s provide the same type of information as the business-type activities in the government-wide financial statements but in more detail. Factors concerning the finances of these funds were previous ly addressed in the discussion of the City’s business-type activities.

General Fund Budgetary Highlights The general fund is the principal operating fund of the City and is used to account for all activities of the City not otherwise accounted for by a specified fund. It is also t he largest of the City’s funds and is mostly comprised of general tax revenues and license and permit fees. Over the co urse of the fiscal year, the City revises its budget to address unanticipated changes in revenues and expenditures. The City provides basic city services such as police, fire, parks and recreation, and other public services. Each department budget must be developed and justified annually during the legally required budget adoption proce ss. Total general fund revenues for the year ended June 30, 2015, were approximately $118,574, 100, approximately $7,544,100, or 6.79%, more than the final budget of approximately $111,030,000. This overa ll revenue increase was the result of an increase in license and permit fees due to an improving economy and a franchise fee rate increase and increases in intergovernmental revenues resulting from a rate increase in fire hydrant fees. Th ese increases were offset by a decrease in general property taxes and charges for services.

CITY OF COLUMBIA, SOUTH CAROLINA Management’s Discussion and Analysis (Unaudited) June 30, 2015 25 Total general fund expenditures were approximat ely $115,148,700 for the year ended June 30, 2015, approximately $4,998,100, or 4.16%, less than the final budgeted expenditures of approximately $120,146,800. Closely monitoring of expenditures resulted in most city departments being under budget. The most significant exception was savings in personnel related expenses of approximately $2,575,200 resulting from position vacancies and approximately $2,000,000 less in capital spending than budgeted. Capital Assets and Debt Administration Capital assets – The City’s investment in capital assets (befor e reductions for debt service) for its governmental and business-type activities as of June 30, 2015, total ed $1,038,180,774 net of accumulated depreciation. This investment in capital assets includes land, buildings, in frastructure, construction in progress, machinery, and equipment. The net increase in the City’s investment in capital assets for the year ended June 30, 2015, was approximately $46,503,600, or 4.69%.

Major capital asset events during the year ended June 30, 2015, included the following:

 Construction in progress (CIP) decr eased by a net $61,009,198. This decrease was primarily the result of projects started in prior years and completed during the current fiscal year. Major completed projects included a $14,666,838 upgrade to the main waste wa ter treatment plant influent pump station, a $8,545,195 upgrade to the main waste water treatment plant preliminary treatment facility, $1,735,559 in mechanical screens were installed at the main wast e water treatment plant, a $1,872,984 upgrade to the flow equalization vault at the main waste water treatment plant, approximately $4,000,000 in electrical system upgrades were completed at the main waste water treatment plant, as well as over $10,000,000 in upgrades to the clarifiers at the main waste water treatment plant. There was approximately $4,627,200 added to the governmental CIP balance related to vari ous governmental projects. There was a decrease of approximately $65,636,400 in the business-type activi ties CIP balance as prior year projects were completed during the current year.

 Buildings and improvements additions totaled approximately $112,398,800 during the year ended June 30, 2015. Most of these were the result of comple ted construction projects started in prior years. Significant additions included clarifiers at the main waste water treatment plant, aeration tanks at the main waste water treatment plant, booster pumps at the Chap in pump station, improvements in the Read Street area, as well as various improvements in the Burnside ar ea. The main decrease resulted from the disposal of old clarifiers at the main waste water treatment plant.

 Machinery and equipment additions totaled approximately $34,765,100 during the year ended June 30, 2015. These additions consisted mainly of police vehicles, garbage trucks, fire trucks, other items of rolling stock, generators, pumps, actuators, and other water treatment equipment. Disposals consisted mainly of fully depreciated items, a raw water pump station, and a water tank.

 Depreciation expense totaled approximately $46,615,700 for the City as a whole.

CITY OF COLUMBIA, SOUTH CAROLINA Management’s Discussion and Analysis (Unaudited) June 30, 2015 26 Capital assets, net of depreciation, for the governm ental and business-type activities are as follows: Table 5 Capital Assets (Net of Depreciation) As of June 30, 2015 and June 30, 2014 A s of June 30, A s of June 30, A s of June 30, A s of June 30, A s of June 30, A s of June 30, 2015 2014 2015 2014 2015 2014 Land 33,257,979 $ 32,647,161$ 30,164,566 $ 30,111,133$ 63,422,545 $ 62,758,294 $ Cons truc tion in progres s 11,052,394 6,425,233 88,301,082 153,937,441 99,353,476 160,362,674 Buildings and improv ements 138,368,256 144,615,099 657,967,963 573,875,162 796,336,219 718,490,261 Inf ras truc ture 19,721,673 13,392,943 - - 19,721,673 13,392,943 Mac hinery and equipment 19,255,198 15,110,122 40,091,663 21,562,925 59,346,861 36,673,047 Total 221,655,500 $ 212,190,558$ 816,525,274 $ 779,486,661$ 1,038,180,774 $ 991,677,219 $ A c tiv ities A c tiv ities Primary Gov ernment Governmental Business-type Total Additional information on the City’s ca pital assets can be found in Note III. F. in the Notes to the Financial Statements.

Long-term debt – The City’s long-term debt, including capital leases payable, reflected a net increase of approximately $15,902,500, or 2.69%. Th is net increase was the result of $31,141,791 in principal payments and $2,088,547 in amortization of bond premiums. The City also received proceeds of $29,922,839 (including a premium of $3,747,839) from the issu ance of a hospitality revenue bond. This bond is backed by a revenue fee pledge of the City’s hospitality fees. The City also received proceeds of $12,210,000 from the issuance of additional revenue bonds. These bonds are backed by revenues from the parking system . Principal payments of $21,815,000 were made on business-type activity revenue bonds. Principal payments of $396,791 were made on governmental activities capital lease obligations. Pr incipal payments of $8,930,000 were made on governmental activities bonds and notes payable. Total governmental activities debt had a net increase of approximately $27,272,300, while business-type activities debt had a net decrease of approximatel y $11,369,800. The capital lease obligation debt was issued to fund the purchase of police cars and other capital assets. The Parking Facilities Refunding Revenue Bond Series 2014 was issued to refund a portion of the Series 2005A Parking Bonds. The Special Obligation Bonds Series 2014 were issued to finance the cost of acquisition of a multi-use entertainment venue. Table 6 Outstanding Indebtedness As of June 30, 2015 and June 30, 2014 A s of June 30, A s of June 30, A s of June 30, A s of June 30, A s of June 30, A s of June 30, 2015 2014 2015 2014 2015 2014 Notes pay able 5,034,142 $ 5,229,142$ -$ - $ 5,034,142 $ 5,229,142$ General obligation bonds 30,665,000 35,680,000 - - 30,665,000 35,680,000 Bond premiums 1,577,297 1,814,897 - - 1,577,297 1,814,897 Rev enue bonds 66,035,000 43,580,000 - - 66,035,000 43,580,000 Bond premiums 3,661,682 - - - 3,661,682 - Par king Fac ilities r ev enue bonds - - 41,680,000 43,190,000 41,680,000 43,190,000 Bond premiums - - 42,101 44,046 42,101 44,046 Waterw orks and Sew er Sy s tem rev enue bonds - - 424,115,000 432,210,000 424,115,000 432,210,000 Bond premiums - - 27,898,797 29,661,642 27,898,797 29,661,642 Capital leas es pay able 6,603,209 - - - 6,603,209 - Total 113,576,330 $ 86,304,039 $ 493,735,898 $ 505,105,688 $ 607,312,228 $ 591,409,727$ Activities ActivitiesPrimary GovernmentTo t a l Gov ernmental Bus ines s -ty pe CITY OF COLUMBIA, SOUTH CAROLINA Management’s Discussion and Analysis (Unaudited) June 30, 2015 27 As noted earlier, the City’s underlying bond rating for its general obligation debt issues and water and sewer revenue bonds as of June 30, 2015, was an “AA1” by Moody ’s Investors Service, Inc. and “AA” by Standard and Poor’s Rating Services. The parking system revenue bon ds as of June 30, 2015, were rated “BBB+” by Standard and Poor’s Rating Service and “A2” by Moody’s Investor Service, Inc. Article X, Section 14 of the State Constitution limits t he amount of general obligation debt a governmental entity may issue to 8% of its assessed property value. The Ci ty as of June 30, 2015, had $30,665,000 in debt subject to this limitation which is less than the $41,434,582 allow ed without approval by the voters in the City. Additional information regarding the City’s long-term obligations can be found in Note III. H. in the Notes to the Financial Statements.

Economic Factors and Next Year’s Budget Based on the economic forecasts for South Carolina, the City expects to see a continuing recovery in fiscal year 2016, even with the early October flooding that occurred. The economic effect of these floods are expected to be similar to that of Hurricane Hugo, which struck Charlest on, South Carolina, in that there were losses associated with property and infrastructure damage as well as a four to six-week period of major disruptions to business activity. This damage will likely generate additional spending in 2016 resulting from rebuilding efforts. Total personal income is expected to increase from 4.6% to 4. 9%. Major drivers of these economic gains are expected to be wage growth and disposable income. Job creation is expected to grow by 2.9%. Housing demand in 2015 was fueled by new construction rather than remodeling, and this trend is expected to continue in 2016. In early October 2015, almost twenty-four inches of rain fell in the Columbia area in less than forty-eight hours. This rainfall caused historic flooding and unprecedented damage to City infrastructure. The City has been approved to receive federal disaster aid and has begun the Federal Emergency Management Agency Public Assistance process. While some aid money has been received, the total amount of aid to be received has yet to be determined. Additional information can be found in Note VII A in the Notes to the Financial Statements.

While the City’s unemployment rate is approximately one per cent higher than the national rate of 5.3 percent, City Council is committed to maintaining a strong fund balance whil e still providing high level services to its residents. General fund revenues are budgeted at $117,086,953 for fiscal year 2016, an increase of approximately $6,057,000 or 5.46% over fiscal year 2015. Franchise fees and fines and forfeitures will account for significantly all of this increase. General fund expenditures are budget ed at $117,056,300 for fiscal year 2016, an increase of approximately $4,888,500 or 4.36% ov er fiscal year 2015 final budget. Substantia lly all of this increase reflects the City’s commitment to public safety in 2016. Key items that factored into the preparation of the bud get for the year ending June 30, 2016, are listed below:

 The budget includes $3,000,000 towards a phase in implementation of the 2015 Comprehensive Compensation and Classification Study. It is felt the City’s ability to attract and retain competent and capable employees is a critical part of providing quality city services.

 There will be a two mil property tax decrease for fiscal year 2016. Even with this reduction in mils, property tax revenues are expected to increase approximately $420,200.

 The budget increase for water and sewer is allocated almost entirely toward the capital improvement program designed to meet the requirements of the Clean Water 2020 program.

 The budgeted transfer from the water and sewer fund to the general fund will decrease from $4,000,000 to $2,675,605.  The City expects to invest $120,000,000 in capita l improvements for the water and sewer system during the year ending June 30, 2016.

 Public Safety is a top priority in the fiscal year 2016 budget. Funding is budgeted for the support of the recruitment and retention efforts in the police and fire departments. The budget has been increased to provide additional funds for training and protective equipment, as well as security cameras.

Requests for Information This financial report is designed to provide a general overview of the City’s finances for all those with an interest in the City’s finances. Questions concerning any of the inform ation provided in this report or requests for additional information should be addressed to the City’s Chief Finan cial Officer, P.O. Box 147, 1737 Main Street, Columbia, South Carolina 29217. Thank you for your interest in the City , in general, and its finances specifically. BASIC FINANCIAL STATEMENTS Governmental ActivitiesBusiness-type Activities TotalComponent Units ASSETS AND DEFERRED OUTFLOW S ASSETS Current AssetsCash and equivalents 125,780,762 $ 194,593,483$ 320,374,245 $ 7,855,046$ Certificates of deposit - - - 500,000 Investments 11,316,911 86,826,972 98,143,883 - Receivables Property taxes, net of allowance 1,904,907 - 1,904,907 - Federal government 932,502 - 932,502 - State government 7,586,757 - 7,586,757 - County government 500,130 - 500,130 - Accounts, net of allowance 500,193 8,389,684 8,889,877 412,236 Accrued interest 20,703 160,732 181,435 42,370 Notes, net of allowance - 528,258 528,258 1,339,234 Due from component units - 870,168 870,168 - Due from primary government - - - 825,000 Internal balances 9,954,028 (9,954,028) - - Prepaid expenses 947,195 94,470 1,041,665 228,141 Inventory 686,763 2,541,882 3,228,645 - Capital lease receivable 580,000 - 580,000 - Real estate held for sale and development - 84,810 84,810 - Restricted assets Real estate held for sale and development - - - 512,101 Total current assets 160,710,851 284,136,431 444,847,282 11,714,128 Noncurrent Assets Cash on deposit with escrow agent 100,000 1,300,296 1,400,296 10,678,747 Investments 36,102,642 38,845,336 74,947,978 - Mortgage notes receivable, net of current portion - 20,926,464 20,926,464 2,558,257 Deposits 78,745 - 78,745 - Other assets Prepaid bond insurance costs - 396,577 396,577 - Organizational costs - - - 5,106 Real estate held for sale or development - - - 3,148,146 Security deposits - - - 5,500 Capital lease receivable, net of current portion 14,249,142 - 14,249,142 - Capital assets not being depreciated Land 33,257,979 30,164,566 63,422,545 2,775,059 Construction in progress 11,052,394 88,301,082 99,353,476 - Capital assets net of accumulated depreciation Buildings, improvements and utility plant 138,368,256 657,967,963 796,336,219 6,965,772 Infrastructure 19,721,673 - 19,721,673 - Machinery and equipment 19,255,198 40,091,663 59,346,861 - Total noncurrent assets 272,186,029 877,993,947 1,150,179,976 26,136,587 TOTAL ASSET S 432,896,880 1,162,130,378 1,595,027,258 37,850,715 DEFERRED OUTFLOWS OF RESOURCES Deferred charge on refunding 1,881,399 7,107,890 8,989,289 - Deferred outflows related to net pension liability 11,414,950 3,873,332 15,288,282 - Accumulated decrease in fair value of hedging derivatives 1,174,619 26,884,816 28,059,435 - TOTAL DEFERRED OUTFLOWS OF RESOURCES 14,470,968 37,866,038 52,337,006 - TOTAL ASSETS AND DEFERRED OUTFLOWS O F RESOURCES 447,367,848 $ 1,199,996,416 $ 1,647,364,264 $ 37,850,715$ Primary Government June 30, 2015 STATEMENT OF NET POSITION CITY OF COLUMBIA, SOUTH CAROLIN A (Continued) 28 Governmental Activities Business-type Activities TotalComponent Units LIABILITIES, DEFERRED INFLOWS, AND NET POSITION LIABILITIESCurrent LiabilitiesAccounts payable and accrued expenses 11,560,127 $ 14,272,331 $ 25,832,458 $ 1,113,953 $ Accrued salaries and benefits 2,938,692 1,311,925 4,250,617 - Accrued liability for claims 16,225,389 23,600 16,248,989 - Accrued interest 836,390 9,081,603 9,917,993 - Retainage payable 538,668 4,046,755 4,585,423 - Unearned revenue - - - 960,273 Due to primary government - - - 505,995 Refundable advances 121,319 - 121,319 - Due to related party - - - 406 Due to component unit 825,000 - 825,000 - Compensated absences 1,378,419 355,678 1,734,097 212,412 Deposits payable 32,530 29,500 62,030 61,410 Current notes and mortgages payable 215,000 - 215,000 1,077,338 General obligation bonds, current portion 5,155,000 - 5,155,000 - Revenue bonds, current portion 3,815,000 9,450,000 13,265,000 - Obligation under capital lease - current portion 972,567 - 972,567 - Liabilities payable from restricted assets Due to primary government - - - 364,173 Total current liabilities 44,614,101 38,571,392 83,185,493 4,295,960 Noncurrent liabilities Unearned revenue - 1,302,696 1,302,696 - Compensated absences 5,271,211 1,422,712 6,693,923 86,404 Net pension liability 119,566,514 40,573,706 160,140,220 - OPEB liability 52,098,105 - 52,098,105 - Mortgages payable, net of current portion 14,999,142 - 14,999,142 5,140,385 General obligation bonds, net of current portion 27,087,297 - 27,087,297 - Revenue bonds, net of current portion 55,701,682 484,285,898 539,987,580 - Obligation under capital lease - net of current portion 5,630,642 - 5,630,642 - Derivative instrument liability, interest rate swap 1,174,619 26,884,816 28,059,435 - Total noncurrent liabilities 281,529,212 554,469,828 835,999,040 5,226,789 TOTAL LIABILITIES 326,143,313 593,041,220 919,184,533 9,522,749 DEFERRED INFLOWS OF RESOURCES Deferred inflows related to net pension liability 11,456,914 3,887,572 15,344,486 - Deferred inflow - property sale 100,000 - 100,000 - Deferred inflow - property tax credit 3,252,116 - 3,252,116 - TOTAL DEFERRED INFLOWS OF RESOURCES 14,809,030 3,887,572 18,696,602 - NET POSITION Net investment in capital assets 162,102,481 368,742,602 530,845,083 4,877,075 Restricted for Capital projects 42,264,148 - 42,264,148 - Debt service 3,978,932 9,352,281 13,331,213 - Tourism 6,127,487 - 6,127,487 10,245,283 Public safety 231,622 - 231,622 - Community development Expendable 1,046,042 - 1,046,042 604,431 Nonexpendable 5,000 - 5,000 - Unrestricted (109,340,207) 224,972,741 115,632,534 12,601,177 TOTAL NET POSITION 106,415,505 603,067,624 709,483,129 28,327,966 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND NET POSITION 447,367,848 $ 1,199,996,416 $ 1,647,364,264 $ 37,850,715$ CITY OF COLUMBIA, SOUTH CAROLIN A STATEMENT OF NET POSITION (CONTINUED) June 30, 2015 Primary Government See accompanying Notes to the Financial Statements 29 FUNCTIONS/PROGRAMSExpensesCharges for Services Operating Grants and Contributions Capital Grants and Contributions Governmental Activities Business-type Activities Total Component Units Primary Governmen t Governmental activities General governmen t 8,050,355 $ 726,487 $ 5,440,411$ 2,134,035$ 250,578 $ -$ 250,578$ - $ Judicial 2,749,136 - - - (2,749,136 ) - (2,749,136 ) - Finance departmen t 1,886,778 37,837,666 - - 35,950,888 - 35,950,888 - Community developmen t 5,791,062 799,663 3,363,032 - (1,628,367 ) - (1,628,367 ) - Public safet y 87,251,472 22,811,461 20,029,516 - (44,410,495 ) - (44,410,495 ) - Parks and recreation 13,081,872 822,319 - - (12,259,553 ) - (12,259,553 ) - Public services 24,282,518 258,211 294,858 935,401 (22,794,048 ) - (22,794,048 ) - General services 5,269,511 - - - (5,269,511 ) - (5,269,511 ) - Community promotion 10,660,364 - 5,852,478 - (4,807,886 ) - (4,807,886 ) - Interest and other charge s 4,491,254 - - - (4,491,254 ) - (4,491,254 ) - Nondepartmental 2,141,310 - - - (2,141,310 ) - (2,141,310 ) - Total governmental activities 165,655,632 63,255,807 34,980,295 3,069,436 (64,350,094 ) - (64,350,094 ) - Business-type activitie s Water/sewer facilities 113,273,814 119,716,789 - 3,872,664 - 10,315,639 10,315,639 - Hydro-electric plan t 2,422,544 3,037,971 - - - 615,427 615,427 - Stormwater facilities 4,814,419 7,521,149 - - - 2,706,730 2,706,730 - Parking facilities 7,678,876 7,145,520 - - - (533,356 ) (533,356 ) - Redevelopment program s 835,812 680,111 - - - (155,701 ) (155,701 ) - Parks and recreation camps 306,219 300,931 - - - (5,288) (5,288) - Total business-type activitie s 129,331,684 138,402,471 - 3,872,664 - 12,943,451 12,943,451 - Total Primary Governmen t 294,987,316 $ 201,658,278 $ 34,980,295 $ 6,942,100 $ (64,350,094 ) 12,943,451 (51,406,643 ) - COMPONENT UNITS 11,477,709 $ 4,620,188 $ 8,895,253 $ 10,075 $ - - - 2,047,807 General revenues: General property taxe s 34,178,067 - 34,178,067 - Local Option Sales Ta x 16,385,254 - 16,385,254 - Sales taxes 12,626,419 - 12,626,419 - Motor fuel taxe s 3,348 - 3,348 - State shared revenu e 2,829,726 - 2,829,726 - Appropriations - City of Columbi a - - - 1,386,338 Unrestricted investment earning s 163,175 1,226,558 1,389,733 100,421 Gain on disposal of capital asset s 254,447 103,766 358,213 3,800 Transfers 8,889,857 (8,889,857 ) - - Total general revenues and transfer s 75,330,293 (7,559,533 ) 67,770,760 1,490,559 Change in net position 10,980,199 5,383,918 16,364,117 3,538,366 Net position - beginning of period as previously reporte d 214,030,566 637,925,568 851,956,134 24,789,600 Restatement (Note VII. C.

) (118,595,260 ) (40,241,862 ) (158,837,122 ) - Net position - beginning of period as restate d 95,435,306 597,683,706 693,119,012 24,789,600 Net position - end of perio d 106,415,50 5 $ 603,067,624 $ 709,483,129 $ 28,327,966 $ Net (Expense) Revenue and Changes in Net Positio n Program Revenu e Primary Governmen t Year Ended June 30, 201 5 STATEMENT OF ACTIVITIES CITY OF COLUMBIA, SOUTH CAROLINA See accompanying Notes to Financial Statements.

30 General FundCounty Services Other Governmental Funds Total Governmental Funds ASSETS Cash and cash equivalents 27,252,162 $ -$ 33,355,912$ 60,608,074$ Investments 14,986,942 - 32,432,611 47,419,553 Receivables Property taxes, net 1,892,101 - - 1,892,101 Federal government - - 932,502 932,502 State government 4,571,504 - 3,015,253 7,586,757 County - - 500,130 500,130 Accounts, net 159,891 - - 159,891 Accrued interest receivable 20,688 - 15 20,703 Capital lease receivable 14,829,142 - - 14,829,142 Due from other funds - - 2,986,200 2,986,200 Cash on deposit with escrow agent 100,000 - - 100,000 Prepaid charges 696,389 64,376 - 760,765 TOTAL ASSETS 64,508,81 9 $ 64,37 6 $ 73,222,62 3 $ 137,795,81 8 $ LIABILITIES, DEFERRED INFLOWS, AND FUND BALANCES Liabilities Accounts payable 3,856,140 $ 356,790$ 4,463,183$ 8,676,113$ Accrued salaries and benefits 2,283,127 497,001 28,876 2,809,004 Retainage payable - - 538,668 538,668 Due to component unit - - 825,000 825,000 Refundable advances 41,250 - 80,069 121,319 Due to other funds 1,589,930 162,314 1,943,652 3,695,896 Customer deposits 32,530 - - 32,530 Advances from other funds 1,150,042 - - 1,150,042 Total liabilities 8,953,019 1,016,105 7,879,448 17,848,572 Deferred inflows of resources Unearned revenue - deferred property tax credit 3,252,116 - - 3,252,116 Unearned revenue - property sale 100,000 - - 100,000 Unavailable revenue - property taxes 980,802 - - 980,802 Unavailable revenue - capital lease receivable 14,829,142 - - 14,829,142 Total deferred inflows of resources 19,162,060 - - 19,162,060 Fund balances Nonspendable 696,389 64,376 5,000 765,765 Restricted 4,880,662 - 48,767,569 53,648,231 Committed 4,810,356 - - 4,810,356 Assigned 3,654,109 - 16,570,606 20,224,715 Unassigned 22,352,224 (1,016,105) - 21,336,119 Total fund balances 36,393,740 (951,729) 65,343,175 100,785,186 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCE S 64,508,81 9 $ 64,37 6 $ 73,222,62 3 $ 137,795,81 8 $ CITY OF COLUMBIA, SOUTH CAROLINA BALANCE SHEET GOVERNMENTAL FUNDS June 30, 2015 See accompanying Notes to Financial Statements.

31 Total fund balance, governmental fund s 100,785,186 $ Amounts reported for governmental activities in the statemen t of net position are different because Capital assets, net of accumulated depreciation, used in governmental activities are not current financial resource s and therefore are not reported in the fund financial statements , but are reported in the governmental activities of the stateme n of net position . Land 33,257,979 $ Construction in progres s 11,052,394 Buildings and improvements, ne t 137,464,670 Infrastructure, ne t 19,721,673 Machinery and equipment, ne t 18,946,280 220,442,996 Certain other long-term deferred outflows are not available to pa y current period expenditures and therefore are not reporte d in the fund financial statements, but are reported in th e governmental activities of the statement of net positio n Unamortized deferred loss on refundin g 1,881,399 $ Pension contributions made subsequent to the measurement dat e 7,816,111 Differences between expected and actual experienc e 3,199,815 12,897,325 Certain property tax revenues will be collected after year en d but are not available soon enough to pay for the current period' s expenditures and, therefore, are deferred in the fund s 993,607 Internal service funds are used by management to charg e the costs of certain activities to individual funds. The asse t and liabilities of the internal service funds are included i governmental activities in the statement of net positio n (9,285,700) Eliminations relating to the consolidation of internal servi c funds resulted in an amount due to governmental activitie s from business-type activities in the statement of net positio n 13,016,117 Some liabilities (such as notes payable, capital lease s contracts payable, compensated absences, and bond s payable) are not due and payable in the current period an d are not included in the fund financial statements, but are include in the governmental activities of the statement of net positio n Accrued compensated absence s (6,407,171) $ Accrued interest payabl e (836,390) Net pension liabilit y (115,386,854) Bonds and notes payabl e (101,734,142) Capital lease payabl e (6,603,209) Unamortized premium (5,238,979) (236,206,745) Other long term deferred inflows related to pension expense d o not consume current financial resources and are, therefore, n o reported in the fund financial statements Investment earnings on retirement plan fiduciary held asset s (11,056,423) Capital leases receivable does not provide current financi a resources and, therefore, is deferred in the fund financi a statements. 14,829,142 Net position of governmental activities in the statement of net positio n 106,415,505 $ CITY OF COLUMBIA, SOUTH CAROLINA RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION June 30, 2015 See accompanying Notes to Financial Statements. 32 General Fund County ServicesOther Governmental Funds Total Governmental Funds REVENUE S General property taxes 50,563,321 $ - $ -$ 50,563,321$ Sales, hospitality and admission taxes 90,899 - 12,535,520 12,626,419 Licenses and permits 37,837,446 - - 37,837,446 Intergovernmental revenue 15,682,389 - - 15,682,389 Charges for services 12,553,980 - 68,974 12,622,954 Fines and forfeitures 1,033,384 - 203,769 1,237,153 Federal government - - 3,434,392 3,434,392 State government - - 3,381,680 3,381,680 County government - 19,045,714 6,606,436 25,652,150 Promotions 78,322 - 43,606 121,928 Confiscated funds - - 279,147 279,147 Interest 147,133 - 16,133 163,266 Other revenues 200,567 - 1,537,641 1,738,208 Total revenues 118,187,441 19,045,714 28,107,298 165,340,453 EXPENDITURE S Current General government 6,865,829 - 318,772 7,184,601 Judicial 2,539,958 - - 2,539,958 Finance department 1,779,283 - - 1,779,283 Planning and development 3,228,917 - - 3,228,917 Public safety 56,018,445 21,430,128 892,387 78,340,960 Parks and recreation 10,525,782 - - 10,525,782 Public services 16,257,427 - 700,962 16,958,389 General services 4,680,453 - - 4,680,453 Community promotion 613,031 - 12,796,831 13,409,862 Non departmental 2,279,518 - - 2,279,518 Debt service Principal payment on bonds 936,791 - 8,390,000 9,326,791 Interest on bonds 910,452 - 2,262,394 3,172,846 Fiscal agent charges - - 5,461 5,461 Debt issuance costs - - 904,310 904,310 Capital outlay Capital outlay 8,512,817 24,289 11,970,019 20,507,125 Total expenditures 115,148,703 21,454,417 38,241,136 174,844,256 Excess (deficiency) of revenues over (under) expenditures 3,038,738 (2,408,703) (10,133,838) (9,503,803) OTHER FINANCING SOURCES (USE S Transfers in 14,341,918 - 16,184,915 30,526,833 Transfers (out) (17,367,879) (689,832) (11,869,240) (29,926,951) Sale of general capital assets 386,636 - - 386,636 Issuance of capital leases 7,000,000 - - 7,000,000 Issuance of debt - - 26,175,000 26,175,000 Premium on debt issuance - - 3,747,839 3,747,839 Total other financing sources (uses) 4,360,675 (689,832) 34,238,514 37,909,357 Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses 7,399,413 (3,098,535) 24,104,676 28,405,554 Beginning fund balances 28,994,327 2,146,806 41,238,499 72,379,632 Ending fund balances 36,393,740 $ (951,729) $ 65,343,175$ 100,785,186$ CITY OF COLUMBIA, SOUTH CAROLINA STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS Year Ended June 30, 2015 See accompanying Notes to Financial Statements. 33 Net change in fund balances - total governmental funds28,405,554 $ Amounts reported for governmental activities in the statement of activities are different because:

Governmental funds report outlays for capital assets as expenditures because such outlays use current financial resources. In contrast, the statement of activities reports only a portion of the outlay as expense. The outlay is allocated over the assets' estimated usefu l lives as depreciation expense for the period . Capital asset purchases capitalized 20,507,125 $ Depreciation expense (12,813,591) 7,693,534 The net effect of various miscellaneous transactions involving capital assets (i.e., sales and disposals) is to decrease net position\ . Disposition of capital assets - $ Proceeds from the sale of capital assets (386,636) (386,636) Internal service funds are used by management to charge costs of certain activities to individual funds. The net loss of the internal service funds is included in governmental activities in the statement of activities. (35,481) Donations of capital assets increase net assets in the statement of activities, but do not appear in the governmental fund statements because they are not financial resources. 2,134,035 Governmental funds do not present revenues that are not available to pay current obligations. In contrast, such revenues are reported in the statement of activities when earned. Collections on capital lease receivable (540,000) $ Property taxes (12,802) (552,802) Governmental funds report bond proceeds as current financial resources. In contrast, the statement of activities treats such issuance of debt as a liability. Governmental funds report repayment of bond principal as an expenditure. In contrast, the statement of activities treats such repayment as a reduction in long-term liabilities. This is the amount by which proceeds exceeded repayments . Proceeds from bonds payable issued (26,175,000) $ Proceeds from bond premium (3,747,839) Proceeds from capital lease issued (7,000,000) Principal retirement of long-term debt 9,326,791 Amortization of premium (192,256) Amortization of bond refunding deferred charge (239,342) (28,027,646) Some expenses reported in the statement of activities do no t require the use of current financial resources, and these are no t reported as expenditures in governmental funds: Accrued compensated absence s (120,945) $ Pension expens e (942,243) Accrued interest payabl e 499,603 (563,585) Eliminations in the consolidation of internal service funds resulted in a net increase in expenses for the business-type activities in the statement of activities. 2,313,226 Change in net position of governmental activities 10,980,199 $ CITY OF COLUMBIA, SOUTH CAROLIN A RECONCILIATION OF THE STATEMENT OF REVENUES , TO THE STATEMENT OF ACTIVITIES Year Ended June 30, 2015 EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUND S See accompanying Notes to Financial Statements.

34 Governmental Activities Water/Sewer Parking Nonmajor Internal Facilities Facilities Proprietary ServiceFund Fund Funds Total Funds ASSETS Current Assets Cash and cash equivalents 164,955,106 $ 8,754,044$ 20,884,333$ 194,593,483$ 65,172,688 $ Investments 76,914,168 4,233,564 5,679,240 86,826,972 - Accounts receivable, net 8,121,162 144,779 123,743 8,389,684 340,302 Mortgage notes receivable, net 107,787 - 420,471 528,258 - Accrued interest receivable 133,902 15,204 11,626 160,732 - Due from other funds 1,912,047 - - 1,912,047 - Due from component units 500,000 - 370,168 870,168 - Inventory 2,416,171 125,711 - 2,541,882 686,763 Prepaid expenses 83,505 1,679 9,286 94,470 186,431 Real estate held for resale - - 84,810 84,810 - Total current assets 255,143,848 13,274,981 27,583,677 296,002,506 66,386,184 Noncurrent Assets Mortgage notes receivable, net 323,363 - 20,603,101 20,926,464 - Investments 38,206,800 638,536 - 38,845,336 - Cash on deposit with escrow agent 1,300,296 - - 1,300,296 - Deposits - - - - 78,745 Prepaid bond insurance costs - 396,577 - 396,577 - Advances to other funds 1,150,042 - - 1,150,042 - Capital assets Land 13,973,101 15,845,287 346,178 30,164,566 - Buildings, improvements and utility plant 943,205,072 56,779,279 29,640,545 1,029,624,896 903,586 Machinery and equipment 68,531,307 1,436,404 3,570,322 73,538,033 1,823,019 Less accumulated depreciation (379,928,393) (16,720,083) (8,454,827) (405,103,303) (1,514,101) Construction in progress 84,926,451 464,563 2,910,068 88,301,082 - Net capital assets 730,707,538 57,805,450 28,012,286 816,525,274 1,212,504 Total noncurrent assets 771,688,039 58,840,563 48,615,387 879,143,989 1,291,249 TOTAL ASSETS 1,026,831,887 72,115,544 76,199,064 1,175,146,495 67,677,433 DEFERRED OUTFLOWS OF RESOURCES Deferred charge on refunding 7,107,890 - - 7,107,890 - Deferred outflows related to net pension liability 3,332,846 250,728 289,758 3,873,332 399,024 Accumulated decrease in fair value of hedging derivatives 26,884,816- - 26,884,816 - TOTAL DEFERRED OUTFLOWS OF RESOURCES 37,325,552 250,728 289,758 37,866,038 399,024 TOTAL ASSETS AND DEFERRED OUTFLOWS OF RESOURCES 1,064,157,439 $ 72,366,272 $ 76,488,822 $ 1,213,012,533 $ 68,076,457 $ CITY OF COLUMBIA, SOUTH CAROLIN A STATEMENT OF FUND NET POSITION PROPRIETARY FUNDSJune 30, 2015 Business-type Activities (Continued)35 Governmental Activities Water/Sewer Parking Nonmajor Internal Facilities Facilities Proprietary ServiceFund Fund Funds Total Funds LIABILITIES, DEFERRED INFLOWS AND FUND NET POSITION Current Liabilities Accounts payable 13,640,079 $ 111,230$ 521,022$ 14,272,331$ 2,884,014 $ Accrued salaries and benefits 1,120,233 79,402 112,290 1,311,925 129,688 Compensated absences 314,793 22,556 18,329 355,678 48,493 Retainage payable 3,882,653 - 164,102 4,046,755 - Accrued interest payable 8,353,931 727,672 - 9,081,603 - Revenue bonds payable 8,385,000 1,065,000 - 9,450,000 - Due to other funds - - - - 1,202,351 Deposits payable 29,500 - - 29,500 - Accrued liability for claims 23,600 - - 23,600 16,225,389 Total current liabilities 35,749,789 2,005,860 815,743 38,571,392 20,489,935 Noncurrent Liabilities Compensated absences 1,259,171 90,226 73,315 1,422,712 193,966 Net pension liability 34,910,568 2,626,300 3,036,838 40,573,706 4,179,660 OPEB liability - - - - 52,098,105 Revenue bonds payable - net 443,628,795 40,657,103 - 484,285,898 - Derivative instrument liability - interest rate swap 26,884,816 - - 26,884,816 - Unearned revenue 1,302,696 - - 1,302,696 - Total noncurrent liabilities 507,986,046 43,373,629 3,110,153 554,469,828 56,471,731 Total liabilities 543,735,835 45,379,489 3,925,896 593,041,220 76,961,666 DEFERRED INFLOWS OF RESOURCES Deferred inflows related to net pension liability 3,345,098 251,650 290,824 3,887,572 400,491 Fund Net Position Net investment in capital assets 324,008,433 16,721,883 28,012,286 368,742,602 1,212,504 Restricted for debt service 9,352,281 - - 9,352,281 - Unrestricted 183,715,792 10,013,250 44,259,816 237,988,858 (10,498,204) Total fund net position 517,076,506 26,735,133 72,272,102 616,083,741 (9,285,700) TOTAL LIABILITIES, DEFERRED INFLOWS AND FUND NET POSITION 1,064,157,439 $ 72,366,272 $ 76,488,822$ 68,076,457 $ Adjustment to report the cumulative internal balance for the net effect \ of the activity between the internal service funds and the enterprise funds over time (13,016,117) Net position of business-type activities 603,067,624 $ STATEMENT OF FUND NET POSITION PROPRIETARY FUNDS (CONTINUED) June 30, 2015 Business-type Activities CITY OF COLUMBIA, SOUTH CAROLIN A See accompanying Notes to Financial Statements 36 Governmental Activitie s Water/Sewer ParkingNonmajor Internal Facilities Facilities Proprietary Service Fund FundFunds TotalFunds Operating revenues Charges for service 117,776,372 $ 5,167,253 $ 10,603,345 $ 133,546,970 $ 45,885,139 $ Other operating revenue 402,151 1,872,912750,0203,025,083 - Total operating revenues 118,178,523 7,040,165 11,353,365 136,572,053 45,885,139 Operating expenses Personnel services 31,562,122 2,357,244 2,980,977 36,900,3433,809,195 Materials and supplies 9,864,982234,365273,651 10,372,9988,709,817 Other services and charges 18,761,782658,682 3,670,403 23,090,8675,316,098 Heat, light and power 6,916,836326,287 - 7,243,12351,462 Depreciation 30,928,260 1,505,756 1,113,515 33,547,531254,601 Claims and premiums - - - - 36,076,912 Bad debt expense - - 468,660468,660 - Total operating expenses 98,033,982 5,082,334 8,507,206 111,623,522 54,218,085 Operating income (loss) 20,144,541 1,957,831 2,846,159 24,948,531 (8,332,946) Nonoperating revenues (expenses) Investment income (loss) 1,059,32377,00590,2311,226,559 - Other nonoperating revenue 160,906106,800500,000 767,706 - Gain (loss) from sale of assets (1,501,276) 3,690 100,076(1,397,510) 7,490 Interest expense (9,828,911) (1,988,663) - (11,817,574) - Bond related costs (22,175) (401,734) - (423,909) - Amortization of deferred charges (563,534) (25,932) - (589,466) - Total nonoperating revenues (expenses) (10,695,667) (2,228,834) 690,307 (12,234,194) 7,490 Income (loss) before contributions and transfers 9,448,874 (271,003) 3,536,466 12,714,337 (8,325,456) Capital contributions and transfers Transfers in 1,295- 1,098,236 1,099,5319,114,754 Transfers out (8,831,372) (322,586) (835,430) (9,989,388) (824,779) Development contributions 3,872,664- - 3,872,664 - Total capital contributions and transfers (4,957,413) (322,586) 262,806 (5,017,193) 8,289,975 Change in net position 4,491,461 (593,589) 3,799,272 7,697,144 (35,481) Net position - beginning as previously reported 547,211,538 29,933,650 71,483,271 (5,104,570) Restatement (Note VII. C.) (34,626,493) (2,604,928) (3,010,441) (4,145,649) Net position - beginning as restated 512,585,045 27,328,722 68,472,830 (9,250,219) Net pos ition - en ding 517 ,076 ,506 $ 26,735 ,133 $ 72,272 ,102 $ (9,285 ,700) $ Adjustment for the net effect of the current year activity between the \ internal service funds and the enterprise funds (2,313,226) Change in net position of business-type activities 5,383,918 $ CITY OF COLUMBIA, SOUTH CAROLIN A STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITIO N PROPRIETARY FUND S Year Ended June 30, 2015 Business-type Activitie s See accompanying Notes to Financial Statements. 37 Governmental Activities Water/Sewer Parking Nonmajor Internal Facilities Facilities Proprietary ServiceFund Fund Funds Total Funds Cash Flows From Operating Activities Receipts from customers and users 117,390,686 $ 6,936,723$ 11,608,616$ 135,936,025$ 1,855,629 $ Internal activity - receipts from other funds - - - - 43,999,121 Internal activity - payments to other funds (9,439,713) (600,430) (804,489) (10,844,632) (611,417) Payments to suppliers (28,735,622) (1,311,608) (3,793,056) (33,840,286) (10,468,807) Claims paid - - - - (35,258,588) Payments to employees (25,040,406) (1,849,765) (2,472,098) (29,362,269) (2,399,173) Net cash provided by (used in) operating activities 54,174,945 3,174,920 4,538,973 61,888,838 (2,883,235) Cash Flows From Noncapital Financing Activities Advances to other funds - - (7,000,000) (7,000,000) (177,087) Advances from other funds 2,586,575 - 1,665 2,588,240 7,000,000 Transfers in 1,295 - 1,098,236 1,099,531 9,114,754 Transfers out (8,831,372) (322,586) (835,430) (9,989,388) (824,779) Net cash provided by (used in) noncapital financing activities (6,243,502) (322,586) (6,735,529) (13,301,617) 15,112,888 Cash Flows From Capital And Related Financing Activities Principal paid on bonds and notes (8,095,000) (13,720,000) - (21,815,000) - Interest paid on debt (20,341,385) (2,147,933) - (22,489,318) - Proceeds from capital debt - 12,210,000 - 12,210,000 - Purchase of capital assets (55,065,380) (460,163) (4,204,077) (59,729,620) (14,614) Bond related costs (22,175) (401,734) - (423,909) - Proceeds from sale of capital assets 206,853 3,690 100,076 310,619 7,490 Net cash provided by (used in) capital and related financing activities (83,317,087) (4,516,140) (4,104,001) (91,937,228) (7,124) Cash Flows From Investing Activities Sale of investments 56,691,689 1,490,701 333,795 58,516,185 - Receipts from property rentals 160,906106,800 - 267,706 - Advances of mortgage notes receivable (156,750) - (3,153,894) (3,310,644) - Collections of mortgage notes receivable 271,572 - 8,476,790 8,748,362 - Interest received 1,065,024 77,530 89,812 1,232,366 - Net cash provided by (used in) investing activities 58,032,441 1,675,031 5,746,503 65,453,975 - Net increase (decrease) in cash and cash equivalents 22,646,797 11,225 (554,054) 22,103,968 12,222,529 Cash and cash equivalents, July 1, 2014 143,608,605 8,742,819 21,438,387 173,789,811 52,950,159 Cash and cash equivalents, June 30, 2015 166,255,402 $ 8,754,044 $ 20,884,333 $ 195,893,779 $ 65,172,688 $ CITY OF COLUMBIA, SOUTH CAROLIN A STATEMENT OF CASH FLOWS PROPRIETARY FUNDS Year Ended June 30, 2015 Business-type Activitie s (Continued)38 Governmental Activities Water/Sewer Parking Nonmajor Internal Facilities Facilities Proprietary ServiceFund Fund Funds Total Funds Reconciliation of operating income (loss) to net cash provided by (used in) operating activities Operating income (loss) 20,144,541 $ 1,957,831 $ 2,846,159$ 24,948,531$ (8,332,946)$ Adjustments to reconcile operating income to net cash provided by (used in) operating activities: Depreciation 30,928,260 1,505,756 1,113,515 33,547,531 254,601 Accrued benefits related to net pension liability 304,772 30,929 39,556 375,257 35,478 Bad debt expense - - 468,660 468,660 - Change in operating assets and liabilities Accounts receivable (787,837) (103,442) 255,251 (636,028) (30,389) Inventory 114,947 14,203 - 129,150 (13,736) Prepaid expenses (1,791) 3,406 510 2,125 (79,130) Accounts payable 2,129,782 (249,375) (179,400) 1,701,007 927,448 Accrued salaries 80,449 6,983 (3,665) 83,767 2,510 Accrued compensated absences (78,314) 8,629 (1,613) (71,298) 49,204 OPEB liability - - - - 3,485,401 Accrued expenses 1,340,136 - - 1,340,136 - Accrued liability for claims - - - - 818,324 Total adjustments 34,030,404 1,217,089 1,692,814 36,940,307 5,449,711 Net cash provided by (used in) operating activities 54,174,945 $ 3,174,920 $ 4,538,973$ 61,888,838$ (2,883,235)$ Noncash Investing, Capital and Financing Activities Water and sewer contributed assets 3,872,664 $ - $ - $ 3,872,664 $ - $ CITY OF COLUMBIA, SOUTH CAROLIN A STATEMENT OF CASH FLOWS PROPRIETARY FUNDS (CONTINUED ) Year Ended June 30, 2015 Business-type Activities See accompanying Notes to Financial Statements. 39 Private- Purpose Agenc y Trust Funds Funds ASSETS Cash and cash equivalents 16,099 $ 33,728 $ Total assets 16,099 33,728 $ LIABILITIES Accounts payable - 33,728 $ Total liabilities - 33,728 $ NET POSITION Held in trust - other purposes 16,099 $ CITY OF COLUMBIA, SOUTH CAROLIN A STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS June 30, 2015 See accompanying Notes to Financial Statements. 40 Private- Purpose Trust Funds ADDITIONS Contributions: Private donations 30,899 $ Total contributions 30,899 DEDUCTIONS Administrative expenses 27,233 Total deductions 27,233 Change in net position 3,666 Net position - beginning 12,433 Net position - ending 16,099 $ CITY OF COLUMBIA, SOUTH CAROLIN A STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FIDUCIARY FUNDS Year Ended June 30, 2015 See accompanying Notes to Financial Statements. 41 Midlands Columbia Authority for Columbia Housing Eau Claire Conventions, TN Columbia Development Development Development Sports, and Development Empowerment Corporation Corporation Corporation Tourism Corporation Zone, Inc. Total ASSETS Current Assets Cash and cash equivalents 466,330 $ 204,489$ 352,535 $ 4,416,096 $ 1,054,013$ 1,361,583$ 7,855,046$ Certificates of deposit 200,000 100,000 100,000 - 100,000 - 500,000 Due from primary government - - - 825,000 - - 825,000 Accounts receivable, net 590 2,398 1,581 356,870 42,123 8,674 412,236 Accrued interest receivable - - - - - 42,370 42,370 Mortgage notes receivable, current portion 1,203,450 46,000 - - - 89,784 1,339,234 Prepaid expenses 5,837 2,937 4,672 188,980 21,195 4,520 228,141 Restricted Assets Real estate held for sale and development - 473,856 38,245 - - - 512,101 Total current assets 1,876,207 829,680 497,033 5,786,946 1,217,331 1,506,931 11,714,128 Capital Assets Capital assets, not being depreciated - 92,835 58,000 - 729,147 1,895,077 2,775,059 Capital assets, net of accumulated depreciation 6,186 696,097 290,931 810,906 3,045,677 2,115,975 6,965,772 Net capital assets 6,186 788,932 348,931 810,906 3,774,824 4,011,052 9,740,831 Other Assets Mortgage note receivable, net of allowance 6,833 615,656 - - - 1,935,768 2,558,257 Real estate held for sale and development 975,991 924,692 504,186 - 743,277 - 3,148,146 Organizational costs - - - - - 5,106 5,106 Security deposits - 3,000 - 2,500 - - 5,500 Cash on deposit with escrow agent 50,000 - - 10,615,783 - 12,964 10,678,747 Total other assets 1,032,824 1,543,348 504,186 10,618,283 743,277 1,953,838 16,395,756 TOTAL ASSET S 2,915,217 $ 3,161,960 $ 1,350,150 $ 17,216,135 $ 5,735,432$ 7,471,821$ 37,850,715$ CITY OF COLUMBIA, SOUTH CAROLINA COMBINING STATEMENT OF NET POSITION - BUSINESS-TYPE ACTIVITY DISCRETELY PRESENTED COMPONENT UNITS June 30, 2015 (Continued) 42 Midlands Columbia Authority for Columbia Housing Eau Claire Conventions, TN Columbia Development Development Development Sports, and Development Empowerment Corporation Corporation Corporation Tourism Corporation Zone, Inc. Total LIABILITIES Current Liabilities Accounts payable 4,998 $ 4,071$ 8,346 $ 551,104 $ 27,346$ 27,168$ 623,033$ Accrued expenses 22,037 35,604 8,888 363,772 54,639 5,980 490,920 Customer deposits - 4,363 1,375 - 42,158 13,514 61,410 Due to primary government 200,000 100,000 105,995 - 100,000 - 505,995 Due to related party - 406 - - - - 406 Compensated absences 6,757 4,026 1,806 190,811 6,089 2,923 212,412 Mortgage/bonds/notes payable/ lines of credit - current portion - - 948,984 - 128,354 - 1,077,338 Unearned revenue - 152,856 500 741,688 62,054 3,175 960,273 Liabilities payable from restricted assetsDue to primary government - 364,173 - - - - 364,173 Total current liabilities 233,792 665,499 1,075,894 1,847,375 420,640 52,760 4,295,960 Noncurrent Liabilities Compensated absences 27,026 16,104 7,225 - 24,356 11,693 86,404 Mortgage/bonds/lines of credit payable 201,644 1,029,170 - - 3,909,571 - 5,140,385 Total noncurrent liabilities 228,670 1,045,274 7,225 - 3,933,927 11,693 5,226,789 TOTAL LIABILITIES 462,462 1,710,773 1,083,119 1,847,375 4,354,567 64,453 9,522,749 Net Position Net investment in capital assets 6,186 - 48,931 810,906 - 4,011,052 4,877,075 Restricted Coummunity development - 604,431 - - - - 604,431 Tourism - - - 10,245,283 - - 10,245,283 Unrestricted 2,446,569 846,756 218,100 4,312,571 1,380,865 3,396,316 12,601,177 Total net position 2,452,755 1,451,187 267,031 15,368,760 1,380,865 7,407,368 28,327,966 TOTAL LIABILITIES AND NET POSITION 2,915,217 $ 3,161,960 $ 1,350,150 $ 17,216,135 $ 5,735,432 $ 7,471,821 $ 37,850,715 $ CITY OF COLUMBIA, SOUTH CAROLINA COMBINING STATEMENT OF NET POSITION - BUSINESS-TYPE ACTIVITY DISCRETELY PRESENTED COMPONENT UNITS (CONTINUED)\ June 30, 2015 See accompanying Notes to Financial Statements.

43 Midlands Columbia Authority for Operating Capital Columbia Housing Eau Claire Conventions, TN Columbia Charges for Grants and Grants and Development Development Development Sports, and Development Empowerment Expenses Services Contributions Contributions Corporation Corporation Corporation Tourism Corporation Zone, Inc. Totals Columbia Development Corporation Community Development 491,616 $ 7,353$ 730,345 $ -$ 246,082 $ -$ -$ -$ - $ -$ 246,082$ Columbia Housing Development Corporation Community Development 444,409 72,319 60,000 - - (312,090) - - - - (312,090) Eau Claire Development Corporation Community Development 360,636 37,554 - 10,075 - - (313,007) - - - (313,007) Midlands Authority for Convention, Sports, and Tourism Community Promotions 8,354,319 3,245,990 8,006,761 - - - - 2,898,432 - - 2,898,432 TN Development Corporation Community Development 1,333,291 985,074 98,147 - - - - - (250,070) - (250,070) Columbia Empowerment Zone, Inc.

Community Development 493,438 271,898 - - - - - - - (221,540) (221,540) Total component units 11,477,709 $ 4,620,188$ 8,895,253 $ 10,075$ 246,082 (312,090) (313,007) 2,898,432 (250,070) (221,540) 2,047,807 General revenues: Appropriations - City of Columbia 321,202 222,700 279,726 - 410,550 152,160 1,386,338 Investment earnings 77,286 4,959 210 17,966 - - 100,421 Gain (loss) from disposal of capital assets - - - - - 3,800 3,800 Total general revenues 398,488 227,659 279,936 17,966 410,550 155,960 1,490,559 Change in net position 644,570 (84,431) (33,071) 2,916,398 160,480 (65,580) 3,538,366 Net position - beginning 1,808,185 1,535,618 300,102 12,452,362 1,220,385 7,472,948 24,789,600 Net position - ending 2,452,755 $ 1,451,187 $ 267,031 $ 15,368,760 $ 1,380,865 $ 7,407,368 $ 28,327,966 $ Program Revenue Changes in Net Position Net (Expense) Revenues and Year Ended June 30, 2015 CITY OF COLUMBIA, SOUTH CAROLINA COMBINING STATEMENT OF ACTIVITIES - BUSINESS-TYPE ACTIVITY DISCRETELY PRESENTED COMPONENT UNITS See accompanying Notes to Financial Statements.

44 INDEX TO NOTES TO FINANCIAL STATEMENTS CITY OF COLUMBIA, SOUTH CAROLINA Index to Notes to Financial Statements Year Ended June 30, 2015 INDEX Note Page I. S UMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Reporting Entity 45 B. Basis of Presentation 47 C. Measurement Focus and Basis of Accounting 51 D. Assets, Liabilities, and Deferred Outflows/Inflows of Resources 52 E. Revenues, Expenditures, and Expenses 56 F. Fund Balance 57 G. Net Position 60 II. S TEWARDSHIP , COMPLIANCE , AND ACCOUNTABILITY A. Budgetary Information 60 B. Deficit Fund Equity 60 C. Risk Management 61 III. D ETAIL NOTES ON ALL ACTIVITIES AND FUNDS A. Deposits and Investments 62 B. Receivables 63 C. Mortgage Notes Receivable and Revolving Loan Pools 64 D. Interfund Receivables, Payables, and Transfers 64 E. Operating Leases 65 F. Capital Assets 66 G. Other Postemployment Benefits 69 H. Long-Term Obligations 72 IV. P ENSION PLANS 79 CITY OF COLUMBIA, SOUTH CAROLINA Index to Notes to Financial Statements Year Ended June 30, 2015 INDEX Note Page V. I NTEREST RATE SWAP AGREEMENTS 87 VI. C OMMITMENTS AND CONTINGENCIES A. Federal Grants 91 B. Consent Decree 91 C. Litigation 91 D. Development Agreement 91 VII. O THER INFORMATION A. Subsequent Events 92 B. Pending Implementation of GASB Statements 92 C. Change in Accounting Principles and Other Restatements 93 CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS June 30, 2015 45 I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The City of Columbia (the City), a po litical subdivision of the State of Sout h Carolina, incorporated in 1854, is located in the central part of South Carolina. Columbia is the state capital as well as the county seat of Richland County. The City has an estimated populati on of approximately 132,000 living within an area of 134.94 square miles. The Greater Columbia Metropolit an Area consists of Lexington and Richland Counties and has an estimated population of 785,000. The Ci ty’s economy is driven by education, government, military, finance, and industry. In 1950, the City a pproved a charter adopting a Council-Manager form of government and is governed by a six member council and Mayor. The financial statements of the City have been prepared in accordance with Generally Accepted Accounting Principles (GAAP) as applied to governmental unit s. The Governmental Accounting Standards Board (GASB) is the standard-setting body fo r governmental accounting and financial reporting. The more significant of these accounti ng policies are described below.

A. REPORTING ENTITY The basic financial statements of the City present t he reporting entity that consists of the primary government and those organizations for which the prim ary government is financially accountable and for which the nature and significance of their relationship with the primary government are such that exclusion could cause the City’s financial statements to be misl eading or incomplete. As required by GAAP, the financial statements of the City must present the City’s financial inform ation along with its component units.

The primary criterion for determining inclusion or excl usion of a legally separate entity (component unit) is financial accountability, which is presumed to exist if the City both appoints a voting majority of the entity’s governing body, and either 1) the City is able to impose its will on the entity or, 2) there is a potential for the entity to provide specific financial benefits to or impose specific financial burdens on the City.

In order to be considered fiscally independent, an entity must have the authority to do all of the following: (a) determine its budget without the City having the authority to approve or modify that budget; (b) levy taxes or set rates or charges without approval by the City; and (c) the City is obligated in some manner for the debt of the entity. Finally, an entity could be a component unit even if it met all the conditions described above if excluding it would cause the City’s fi nancial statements to be misleading.

Blended component units, although legally separate entitie s, are in substance part of the government’s operations, and data from these units are combined with the data of the primary government in the fund financial statements. Discretely pr esented component units, on the othe r hand, are reported in a separate column in the entity-wide financial statements to empha size they are legally separate from the City. Based on the criteria above, the City has two blended component units and six discretely presented component units.

Blended Component Units Public Facilities Corporation This is a single-purpose corporate entity that was fo rmed in 2002 as a non-profit corporation to undertake certain obligations with respect to the acquisition of real and personal property and the design, construction, operation, and financing of a multipurpose conference/c onvention center and other improvements. Its board is comprised of the City Manager of Columbia, the As sistant City Manager for Development, and the Finance Director or the equivalent thereof. For details of the outstanding debt see Note III. H. The balances of this entity are reported in the Tourism Development Conventi on Center fund, a nonmajor special revenue fund. The Corporation does not issue separate financial statements.

CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS June 30, 2015 46 I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) A. REPORTING ENTITY (Continued) Blended Component Units (Continued) Columbia Parking Facilities Corporation This is a single-purpose entity whose balances are r eported in the general fund. The entity was formed during fiscal year 2007 to undertake certain obligations wi th the University of South Carolina (the University) to build two parking garages. These garages are part of the University’s Innovista project. The Board of Directors is comprised of five members of City Counc il. For further discussion of this component unit, see Note III. F. The Corporation does not issue separate financial statements.

Discretely Presented Component Units Columbia Empowerment Zone, Inc. (CEZ) Incorporated in 2009, the CEZ was formed to carry out the mission of the Columbia Empowerment Zone, Inc., a federally designated area (1999-2009). The purpose of CEZ is to initiate, develop, and maintain projects and programs in economical ly depressed or blighted areas that encourage the attraction and utilization of both public and private investment capital. The Board of Directors is composed of nine members. New board members are appointed by the exis ting board. The entity promotes: the fostering of sustainable business; government and community allia nces to help lessen the burdens of government; reduction of physical and economic blight; combati ng community deterioration by fostering business attraction, retention, and expansion in areas in need of permanent job opportunities; workforce advancement and general growth opportunities. Funding for the CEZ is derived from appropriations from the City of Columbia, loan repayments, rental income, and grant fund s. The City provides appropriations to support CEZ when it experiences operating defi cits that are not financed by other means. Upon dissolution, any remaining assets of CEZ would revert to the City of Columbia.

Columbia Development Corporation (CDC) Incorporated in 1980, the CDC was formed to assist t he City in promoting and monitoring the growth and development of business concerns th rough the strengthening of the economic and residential base of the community. The nine-member Board of Directors is composed of three members of City Council, the Mayor, the City Manager, and four members that are appointed by City Council. The Exec utive Director of the CDC serves as an ex-officio Administrative Secretary. Funding for the CDC is derived from property sales, contributions, and appropriations from the City.

Columbia Housing Development Corporation (CHDC) The CHDC, an eleemosynary organization, was formed in 1980 to assist the City in the development of housing and to promote growth in the residential base of the community. The twelve-member Board of Directors is composed of three members of City Coun cil, the Mayor, the City Manager, and seven members that are appointed by City Council. In an ex-officio c apacity, city staff serves as the Secretary/Treasurer and the Executive Director. Funding for CHDC is derived from sale of properties, interest income, mortgage receivables, and appropriations from the City.

Eau Claire Development Corporation (ECDC) Incorporated in 1993, the ECDC provides assi stance in the conservation and redevelopment of neighborhoods located in the Eau Claire area of North Columbia. The nine-member Board of Directors is composed of three City Council members and six member s appointed by City Council. Current funding is derived from appropriations from the City of Co lumbia, grants, sale of properties, and rents.

CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS June 30, 2015 47 I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) A. REPORTING ENTITY (Continued) Discretely Presented Component Units (Continued) Midlands Authority for Conventions, Sports, and Tourism (MACST) The MACST, originally incorporated as the Midlands Regional Convention Center in July 2001, was formed to oversee the development of a regi onal convention center and operate the convention center under a long- term management arrangement for the mutual benefit of the City and Richland and Lexington Counties of South Carolina (the Governmental Entities). The MA CST has a nine member board of directors. The City appoints five of the directors. Lexington County and Richland County each appoint two members. The Governmental Entities have pledged their tourism dev elopment fees to support this project. However, outside of this pledge of revenues, the City issued t he debt to fund this project and is responsible for the ongoing debt payments. The City is also required to f und any operating deficits incurred. The City owns the building where the MACST is located. TN Development Corporation (TNDC) Incorporated in 1993 as an eleemosynary organization, the TNDC was organized to promote growth and develop opportunities for affordable rental housing. T he ten-member Board of Directors is composed of three members from City Council and seven members appointed by City Council. Funding for the TNDC is derived from rental income, the State of South Caro lina Housing Trust Fund, the Federal Home Loan Bank, HOME Program funds received as a subrecipient through the City, other grants, and appropriations from the City.

Complete financial statements of the discretely present ed individual Component Units can be requested from the City’s Chief Financial Officer.

B. BASIS OF PRESENTATION GOVERNMENT WIDE FINANCIAL STATEMENTS The Statement of Net Position and Statement of Acti vities display information about the non-fiduciary activities of the reporting government as a whole. The statements distinguish between governmental and business-type activities. Governmental activities generally are financed through taxes, inter-governmental revenue, and other nonexchange revenues. Business-type ac tivities are financed in whole or in part by fees charged to external parties for goods or services. The City’s internal service funds are a cost allocation of shared services and are combined with the governmental funds to produce the government wide financial statements. These statements includ e all funds of the reporting entity except for fiduciary funds. FUND FINANCIAL STATEMENTS The City uses funds to report financial position and the results of operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain government functions or activities.

A fund is an independent fiscal and accounting entity with a self-balancing set of accounts. Funds are classified into three categories: Governm ental, Proprietary, and Fiduciary as follows:

Governmental Fund Types: General Fund The General Fund is the principal operating fund of t he City that accounts for all financial resources not accounted for in other funds. CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS June 30, 2015 48 I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) B. BASIS OF PRESENTATION (Continued) FUND FINANCIAL STATEMENTS (Continued) Special Revenue Funds These funds are used to account for revenue derived fr om specific taxes, governmental grants, and other revenue sources that are desi gnated to finance particular functions or activities of the City. Special Revenue Funds include:

 County Services (a major fund) – accounts for fire services and 911 emergency communications provided to citizens outside the City limits and the reimbursement for expenditures from Richland County.

 Liquor Permit Fee – accounts for receipts from the sale of temporary permits to allow the possession, sale, and consumption of alcoholic liquors for a period not to exceed 24 hours.

 Business Improvement District – accounts fo r the Business Improvement District taxes assessed on the businesses in the downtown area of the City to promote downtown beautification.

 Accommodations Tax – accounts for State Hotel Accommodations Tax receipts to promote tourism-related activities of City organizations.

 Confiscated Drug Program – accounts for the disposition of forfeited property and money seized in Columbia by law enforcement agencies.

 Hospitality Tax – accounts for a local 2% gross sales tax on pr epared food and beverages sold in establishments to promote t ourism-related activities of the City.

 Community Development – accounts for the Co mmunity Development Block Grants and other community development type grants.

 Federal Grants – accounts for federal gr ant funds received except for Community Development Block Grants.

 Other Programs – provides for miscellaneous programs for park improvements and special events.

 Tourism Development Convention Center – accounts for the Tourism Development Fee imposed upon the rental of hotels, motels, and othe r lodging establishments in the City. This fee is dedicated to the attraction of and improving the services provided to tourists. This fund also accounts for the activities of the Public Facilities Corporation, a blended component unit.

Debt Service Fund This fund accounts for the accumulation of financial re sources for the payment of interest and principal on the general long-term debt of the City, other than debt service payments financed by proprietary fund types. Transfers, interest earned on the inve stments of the Debt Service Fund and, if applicable, interest earned on investments of certain Capital Projects Funds are used for the payment of principal, interest, and fiscal agent expenditures on the City’s general obligation and revenue bonds and bond anticipation notes.

CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS June 30, 2015 49 I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) B. BASIS OF PRESENTATION (Continued) FUND FINANCIAL STATEMENTS (Continued) Capital Projects Funds The Capital Projects Funds account for all capital improvements, except those accounted for in Proprietary Funds, financed by the City’s general obligation bond issues, certain Federal grants, and other specific receipts. These funds include:

 Congaree Vista District – accounts for the construction and development of parks and infrastructure within the Congaree Vista Redevelopment District.

 Streetscaping – accounts for capital improvements to street landscaping.

 General Capital Projects – accounts for various capital projects funded by various funds.

 Miscellaneous Projects – accounts for various capital projects funded by the General Fund.

Permanent Funds Permanent funds are used to report resources that are legally restricted to the extent that only earnings and not principal may be used for purposes that sup port the City’s programs. This fund includes:

 Dickson Trust – accounts for trust funds specif ically intended for the income to be used for beautification of the parks. T he funds are invested in an interest bearing account. The amount invested equals the fair value.

Proprietary Fund Types: Business-type Funds The business-type funds are used to account for operations of the City (a) that are financed and operated in a manner similar to private business where the intent is for the cost of providing goods or services to be recovered, in whole or in part, through user charges; or (b) where City Council has decided that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, acco untability or other purposes. These funds include:

 Water/Sewer Facilities Fund (a major fund) -- accounts for water and sewer utility activities.

 Parking Facilities Fund (a major fund) -- accounts for parking garage and parking ticket activities.

 Hydro-Electric Facilities Fund -- accounts for hydro-electric plant activities.

 Stormwater Facilities Fund -- accounts for stormwater utility activities.  Redevelopment Programs Fund -- accounts for various home rehabilitation and mortgage lending programs funded from various sources.

 Parks and Recreation Camp Fund -- accounts for parks and recreation camp activities.  Economic Development Fund – accounts for economic develop activities.

CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS June 30, 2015 50 I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) B. BASIS OF PRESENTATION (Continued) FUND FINANCIAL STATEMENTS (Continued) Internal Service Funds Internal Service Funds are used to account for th e financing of goods and services provided by one department or agency to other departments or agencies of the City, or to other governments, on a user charge basis. These nonmajor funds include:

 Fleet Management -- accounts for the ma intenance and repair of movable vehicles.

 Support Services -- accounts for a decentra lized business-type inventory system, a central supply facility, procurement functions, a nd the City's general maintenance functions.

 Risk Management -- accounts for the costs associated with self-funded liability plans for employee health, worker's compensation, and tort liability for all City departments.

Fiduciary Funds Types (Not included in government-wide statements): Transactions related to assets held by the City as an agent of a private organization are accounted for in Fiduciary Fund types. These are presented separately in the statements. The City 's fiduciary fund types are comprised of:

Agency Fund This fund is used to account for assets held by th e City as an agent and does not involve measurement of results of operations. Private-Purpose Trust Funds These funds are used to account for assets held by the City as a trustee capacity under which principal and income benefit individuals, private or ganizations, or other governments. Major Funds The City reports the following major governmental funds:  The General Fund is the City’s primary operating fund. It accounts for all financial resources of the general government, except those requi red to be accounted for in another fund.

 The County Services Fund accounts for fire services and 911 emergency communication services provided to citizens outside the City limits and the reimbursement for expenditures from Richland County.

The City reports the following major proprietary funds:

 The Water and Sewer Facilities Fund accounts for the activities of the water and sewer facilities.

 The Parking Facilities Fund accounts for the activities of the parking facilities.

CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS June 30, 2015 51 I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) C. MEASUREMENT FOCUS AND BASIS OF ACCOUNTING The government-wide financial statements (i.e. the Statement of Net Position and the Statement of Activities) report information on all of the non-fiduciary activities of the City. Governmental activities , which are normally supported by taxes and intergovernmental revenues, are reported separately from business-type activities which rely to a significant extent on fees and charges for support.

The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting as are the proprietary funds and fiduciary fund financial statements. Revenues are recorded when earned, and expenses are reco rded when a liability is incurred regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.

The government-wide statements are prepared using a different measurement focus from the manner in which governmental fund financial statements are pr epared (see below for further detail). Governmental fund financial statements, t herefore, include reconciliations with br ief explanations to better identify the relationship between the government wide statem ents and the statements for governmental funds.

The City implemented Governmental Acco unting Standards Board Statement No. 68, “ Accounting and Financial Reporting for Pensions ” (“GASBS 68”) during the year ended June 30, 2015. GASBS 68 establishes accounting and financial reporting standards for measuring and recognizing liabilities, deferred outflows of resources, deferred inflows of resource s, and expense/expenditures. For defined benefit plans, this statement also identifies the methods and assumpti ons that should be used to project benefit payments, discount projected benefit payments to their actuaria l present value, and attribute that present value to periods of employee service. The requirements of this statement will improve financial reporting by improving information provided by state and local government employers about financial support for pensions that is provided by other entities. The governmental fund financial stat ements are accounted for using a current financial resources measurement focus . With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets, and the unassigned fund balance is a measur e of available spendable resources.

Governmental fund financial statements are reported using the current financial resources measurement focus. All governmental fund types use the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recogniz ed when they become both measurable and available. "Measurable" means the transaction ca n be identified, and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Property taxes are considered available if they are collected within 60 days after year end. The City considers revenues available if they are collected within 60 days after year end. Expenditures are recorded when the related fund liability is incurred. However, principal and intere st on general long-term debt are recorded as fund liabilities when due or when amount s have been accumulated in the Debt Service Fund for payments to be made early in the following year. Allocations of costs, such as depreciation and amortization, are not recognized in the governmental funds.

CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS June 30, 2015 52 I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) C. MEASUREMENT FOCUS AND BASIS OF ACCOUNTING (Continued) Sales taxes, hospitality taxes, admission taxes, grant funds, charges for services, intergovernmental revenue, and interest associated with the current fisca l period are all considered susceptible to accrual and have been recognized as revenues of the current fiscal per iod. All other revenue items are considered to be measurable and available only when ca sh is received by the City. Refundable advances arise when resources are received by the City before it has a legal claim to them as when grant monies are received prior to the occurrence of the qualifying expendi tures. When the revenue recognition criteria are met and the City has a legal cl aim to the resources, the liability for the advance is removed from the balance sheet and revenue is recognized.

Proprietary fund types are accounted for using a fl ow of economic resources measurement focus and use the accrual basis of accounting. Under this method, revenues are recorded when earned, and expenses are recorded at the time liabilities are incurred. The City has implemented GASB Statement No.62 “ Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements, ” and thus the City applies a ll applicable GASB pronouncements.

As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are pay ments-in-lieu of taxes and other charges between the government’s water and sewer function and various other functions of the government. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned.

The Statement of Activities demonstrates the degree to which direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided; 2) operating grants and contributions restricted to meeting the operational requirements of a particular function or segment; and 3) capital grants and contributions restricted to meeting the capital requir ements of a particular function or segment. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. The preparation of financial statem ents in conformity with GAAP requ ires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the balance sheet date and reported amounts of revenues and expenses during the reporting period. Estimates are used to determine depreciation expense, the allowance for doubtful accounts, realizable value of real estate held fo r sale, impairment of assets, and certain claims and judgment liabilities among other accounts. Actual results could differ from those estimates.

D. ASSETS, LIABILITIES, AND DEFERRE D OUTFLOWS/INFLOWS OF RESOURCES Deposits City procedures require that all unrestricted cash belonging to the City be placed in a "Pooled Cash" account to maintain the cash and investment accounts in the accounting records. Under this method, all cash is pooled for investment purposes, and each fund has equity in the pooled accounts. The City considers cash and cash equivalents (incl uding restricted cash and cash equivalents) to be:

currency on hand, demand deposits with banks, amou nts included in pooled cash and investment accounts, and liquid investments with an original maturity of three months or less when purchased.

CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS June 30, 2015 53 I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. ASSETS, LIABILITIES, AND DEFERRED OUT FLOWS/INFLOWS OF RESOURCES (Continued) Investments In accordance with GASB 31, investment s in all funds are stated at fair value. State statutes authorize the City to invest in certificates of deposit, United Stat es Treasury and United States Agency obligations, South Carolina and related political subdivision general obligation bonds, and repurchase agreements collateralized by these obligations.

Inventory and Prepaid Assets In the fund financial statements, all governmental City inventories are recorded in the Internal Service Fund at cost or estimated historical cost on a first-in, first- out (FIFO) basis. All proprietary inventories are recorded in the respective fund at cost or estimated historical cost on a first-in, first-out (FIFO) basis. The related expenditures or expenses are recognized when invent ories are consumed. Changes in the year-end inventory are reflected in expenses.

Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wid e and fund financial statements.

Real Estate Real estate held for sale and development is record ed at the lower of cost or net realizable value.

Mortgage Notes and Notes Receivable and Allowance for Loan Losses Mortgage notes receivable, secured by the financed property, and other notes receivable are recorded in various business-type funds and component units and are stated at unpaid principal balances net of an allowance for loan losses. An allowance for loan losses is increased by estimated un collectible loans, net of recoveries. Management's periodic evaluation of the adequacy of the allowance is based on past loan loss experiences, known and inherent risks in the portfolio, adverse situations that may affect the borrower's ability to repay the loan, estimated value of any underlying collateral, and current economic conditions. Interest is accrued monthly on notes rece ivable and stops when the notes go into default.

Accounts Receivable and Allowance for Bad Debt Accounts receivable are recorded in various funds and are stated net of their allowance for uncollectible accounts.

Interfund Balances Balances between funds that are outstanding at the end of the fiscal year and expected to be repaid within the current period are referred to as “due to/from ot her funds.” Balances between funds not expected to be repaid within the current period are referred to as “ advances to/from other funds.” Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances.” Capital Assets In the government-wide financial statements, capita l assets, which include property, plant, and equipment, are reported in the applicable governmental or business-t ype activities columns. Capital assets are defined by the government as assets with an initial individual cost of more than $5,000 and an estimated useful life in excess of one year. Such assets are recorded at historic al cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at es timated fair market value at the date of donation. Interest incurred during the construction phase is reflec ted in the capitalized value of the asset constructed net of interest earned on the invested proceeds during the same period.

CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS June 30, 2015 54 I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. ASSETS, LIABILITIES, AND DEFERRED OUT FLOWS/INFLOWS OF RESOURCES (Continued) Capital Assets (Continued) Under the provisions of GASB 34, the City switch ed from the modified method to the straight-line depreciation method of reporting infrastructure during the year ended June 30, 2006. To determine the historical value of the infrastructure, the City used the information provided by the Department of Utilities and Engineering on streets acquired during fiscal years 2003 th rough 2006. This information provided the street name and the cost or estimated cost of the street at acquisition. These amounts also included sidewalks, curbs, and gutters adjacent to the street acquired. Th e City determined the life of the streets to be 20 years using the “Capital Assets of Local Governments Suggested Useful Lives.” Infrastructure assets acquired prior to 1986 would have been fully depreciated and were not considered in this calculation. For those assets acquired betw een fiscal years 1986 and 2008, the acquisition date is assumed to have been on the last day of the fiscal year. For assets acquired after 2008, the acquisition date is the actual date of purchase. In frastructure assets acquired during fi scal year 2008 to the present are depreciated from the date of acquisition.

In the fund financial statements, capital assets used in governmental fund operations are accounted for as capital outlay expenditures of the governmental fund upon acquisition. Capital assets used in proprietary fund operations are accounted for the same as in the government-wide financial statements.

Property, plant, and equipment of the primary governmen t, as well as the component units, are depreciated using the straight-line method over the estimated useful lives as follows:

Improvements 10-50 years Buildings and Utility Plant 15-50 years Infrastructure 20 years Office Furniture and Equipment 5-15 years Machinery 5-12 years Capital Lease Receivable The City leases two parking garages to the University of South Carolina under a capital lease agreement. The City receives lease payments on the garages in installments equal to the corresponding debt service requirements on the debt used to fund the construc tion of the garages. Revenue related to the lease receivable is classified as a deferred inflow in the funds until available.

Restricted Assets Restricted assets consist of real estate that is held for sale and development.

Compensated Absences It is the City's policy to allow employees to accumula te unused vacation and sick leave benefits up to certain maximum hours. Once an employee has completed the probationary period, any accumulated unused vacation and 20% of unused sick leave, as restrict ed below, are payable upon termination of employment with the City. An employee with service of less than 10 years may receive up to a maximum of two weeks of accrued compensated absences. An employee with serv ice of 10 to 20 years may receive up to a maximum of four weeks, and service of ov er 20 years may receive a maximum of five weeks. Maximum carryover allowed per employee is 10 weeks of accrued compensated absences.

The liability for compensated absences in the government-wide, proprietary, and fiduciary fund financial statements is calculated based upon recorded balances of unused leave for which the City would compensate employees if employment ended June 30, 2015. The change in this calculated amount from the previous year is expensed in current operations. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements. CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS June 30, 2015 55 I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. ASSETS, LIABILITIES, AND DEFERRED OUT FLOWS/INFLOWS OF RESOURCES (Continued) Long-Term Obligations In the government-wide financial statements and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are re ported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund ty pe statement of net position. Debt is reported net of applicable premiums and discounts on the statement of net position. Bond premiums and discounts are deferred and amortized over the term of the bonds using the straight-line method which does not significantly differ from the effective interest method. Deferred refunding costs are reported as deferred inflows or outflows and recognized as a component of interest expense in a systematic and rational manner over the remaining term of the old debt or the term of the new debt, whichever is shorter.

In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as refunding costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received in debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Payments to refunded bonds escrow agents are reported as other financing uses to the extent the proceeds from the bond are used to make the payment. Any payment made from funds on hand is reported as an expenditure.

Deferred Outflows of Resources In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This sepa rate financial statement element, deferred outflows of resources, represents a consumption of net position that applie s to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The City has three items that qualify for reporting in this category. They are the deferred charge on refundi ng, the deferred outflows related to the net pension liability, and the accumulated decrease in the fair va lue of hedging derivatives reported in the entity-wide statement of net positi on and in the statement of net position of the Water and Sewer Facilit ies fund financial statements. A deferred charge on ref unding results from the difference in the carrying value of the refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the term of the refunded or refunding debt. The change in fair value of hedging derivatives results from changes in cash flows and interest rates over the term of the interest rate swap. The deferred outflows related to the net pension liability result from retirement contributions made to the South Carolina Retirement System subsequent to the measurement date, which will be recognized as a reduction of the net pension liability in the subsequent year, and differences between expected and actual experience, which will be amortized into pension expense beginning in the year the deferral occurs over a closed period equal to the average remaining service lives of all plan participants.

Deferred Inflows of Resources In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net positi on that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City has three types of items that qualify for reporting in this category. One type, unavailabl e revenue, arises only under a modified accrual basis of accounting.

Accordingly, this type is only reported in the gover nmental funds balance sheet. The governmental funds report unavailable revenue from two sources - pro perty taxes and capital leases. These amounts are deferred and recognized as an inflow of resources in the periods the amounts become available. The second type is revenue received before time requirem ents are met, but after all other requirements have been met. In 2006, City residents approved a Local Option Sales Tax referendum. This tax is detailed further in Note I. E. Under state law, the City is requ ired to give the taxpayers a credit on their property tax bill once the referendum is passed. The City recognizes revenu e, on both the entity-wide statements and the fund financial statements, in the period in which the credit is given on the property tax bills and for the dollar amount of credit taxpayers are given on their property tax bills. Deferred inflows result when funds are received from the State of South Carolina prior to ti me requirements being met, but after all other eligibility CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS June 30, 2015 56 I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. ASSETS, LIABILITIES, AND DEFERRED OUT FLOWS/INFLOWS OF RESOURCES (Continued) requirements are met. During the current year the City also received funds relating to a property sale prior to all time requirements being met. The third type is deferred inflows relating to pension obligations and is the net difference between the projected and actual earnin gs on pension plan investments and is amortized over a closed five year period.

E. REVENUES, EXPENDITURES AND EXPENSES Property Tax Revenues Real property and business personal property taxes, excluding automobile property taxes, become enforceable liens as of January 1. Real property taxes are levied in November and are payable immediately, but can be paid without penalty before January 16. Automobile property taxes are levied throughout the year depending on vehicle tag expiration dates. Business personal property taxes are levied in September and are payable by January 15. Property taxes are as sessed and collected by Richland and Lexington Counties under a joint billing and collection agreement. The City collects property taxes assessed in Richland and Lexington Counties on property annexed into Columbia . Penalties and charges are assessed if taxes are not paid by the following dates:

January 16 through February 1 - 3% penalty for tax due February 2 through March 16 - 10% penalty for tax due March 17 through April 30 - 15% penalty for tax due plus costs May 1 through July 31 - $30 additional execution cost plus previous penalties and costs After July 31 - $50 additional execut ion cost plus previous penalties and costs Unpaid taxes after one year - Property is sold at the annual tax sale in December The City does not receive any penalty amount or costs on delinquent taxes collected by Richland County.

Assessed values are established by the Richland Co unty Tax Assessor, the Lexington County Tax Assessor, and the South Carolina Department of Revenue. The City’s operating tax rate is currently 98.1 mills.

Amounts received by Richland County and Lexington County, but not remitted to the City at year end, are included in Property Taxes Receivable on the St atement of Net Position and the Balance Sheet.

That portion, if any, of General Fund property taxes allo cated for payment of debt service is transferred to the Debt Service Fund. Local Option Sales Tax Revenue The City incorporated a Local Option Sales Tax during the year ended June 30, 2006, of 1% to offset a reduction in property taxes. In the governmental fu nd financial statements, this revenue is included in the general fund property tax revenue. On the government wide financial statements, this revenue is reported as general revenue separate from general property taxes. The tax generated approximately $17.1 million during the year ended June 30, 2015. There was a cap plac ed on the tax in order to prevent a windfall effect of taxes collected. This “cap” created deferred infl ows of resources of approximately $3.2 million in the General Fund and Statement of Net Position as of June 30, 2015.

Investment Income The City has a policy of allocating interest income on pooled cash and investments to appropriate funds on an annual basis. The allocation is based on a percentage of the fund's month-end balance in pooled cash and investments to the total month-end balance in cash and investments. Grant Revenue Revenues from grants are recognized when qualifying expenditures are made and all grant requirements have been met. Cash received by the City prior to t he City incurring qualifying expenditures is recorded as a refundable advance on the balance sheet or st atement of net position as applicable. CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS June 30, 2015 57 I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) E. REVENUES, EXPENDITURES AND EXPENSES (Continued) Operating and Nonoperating Revenues and Expenses Proprietary and internal service funds distingui sh operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a fund’s principal ongoing operations. The principal operating revenues of the water/sewer facilities fund and the parking facilities fund are charges to customers for sales and services. Operating revenues for internal service fund s consist of charges to other funds for the services being provided by the internal service funds. Oper ating expenses for business-type funds and internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.

Expenditures/Expenses In the government-wide financial statements, expenses are classified by function for both governmental and business-type activities.

In the fund financial statements, expen ditures are classified as follows:

Governmental Funds – By Characteristic: Current (further classified by function) Debt Service Capital Outlay Proprietary Funds – By Operating and Nonoperating In the fund financial statements, gover nmental funds report expenditures of financial resources. Proprietary funds report expenses relating to use of economic resources.

Pensions For purposes of measuring the net pension liability, deferred outflow s of resources and deferred inflows of resources related to pensions and pension expense, inform ation about the fiduciary net position of the South Carolina Retirement System (SCRS) and the Police O fficers Retirement System (PORS), and additions to/deductions from SCRS’s and PORS’s fiduciary net position have been determined on the same basis as they are reported by SCRS and PORS. For this pur pose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. Interfund transfers Permanent reallocations of resource s between funds of the reporting entity are classified as interfund transfers. For the purposes of the Statement of Ac tivities, all interfund transfers between individual governmental funds have been eliminated.

F. FUND BALANCE The City has implemented GASB Statement No. 54, “ Fund Balance Reporting and Governmental Fund Type Definitions. ” The objective of this statement is to enhance the usefulness of fund balance information by providing clearer fund balance classifications that c an be more consistently applied and by clarifying the existing governmental fund type definitions. The following categories of fund balance are used in the fund level financial statements of the governmental funds:

CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS June 30, 2015 58 I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) F. FUND BALANCE (Continued) Nonspendable fund balance The nonspendable fund balance classification includes amounts that cannot be spent because they are either not in spendable form or legally or contractua lly required to be maintained intact. The “not in spendable form” criterion includes items that are not expected to be converted to cash, for example, inventories and prepaid amounts. It also includes t he long-term amount of loans and notes receivable as well as property acquired for resale.

Restricted fund balance The restricted fund balance classification includes amount s that are either restricted externally by creditors, grantors, contributors, or laws or r egulations of other governments or rest ricted by law through constitutional provisions or enabling legislation.

Committed fund balance The committed fund balance classification includes amounts that can only be used for specific purposes imposed by ordinance approved by th e City Council, the highest level of decision-making authority. Those committed amounts cannot be used for any other purpose unless City Council removes or changes the specified use by taking the same type of action it employed to previously commi t those amounts. Committed fund balances also incorporate contractual obligations to the extent that existing resources in the fund have been specifically committed for use in satisfying thos e contractual requirements. The City recognizes committed fund balances that have been approved for spec ific purposes by City Council before the fiscal year end.

Assigned fund balance The assigned fund balance classification includes amounts that are constrained by the City’s intent to be used for specific purposes, but are not restricted or committed. The authority for making an assignment is not required to be the City’s highest level of decision- making authority, and as such, the nature of the actions necessary to remove or modify an assignment does not require the City’s highest level of authority.

However, City Council has not granted the authority to anyone to make assignments of fund balance. Assigned fund balance amounts in the City’s financial statements represent amounts approved by City Council to be transferred and spent after year end and for specific purposes. In the special revenue fund, assigned fund balances represent amounts to be spent for specific purposes.

Unassigned fund balance The unassigned fund balance classification includes amounts that have not been assigned to other funds and has not been restricted, committed, or assigned for specific purposes within the general fund.

Based on the City’s policies regarding fund balance cl assifications as noted above, the City considers amounts that are restricted, committed, or assigned to be spent when the corresponding expenditure that has been designated by City Council or donors has been m ade. It is the City’s policy to consider restricted fund balances to have been depleted before using any of the components of unrestricted fund balance.

Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance. After these fund balances have been depleted, unassigned fund balance will be considered to have been spent.

CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS June 30, 2015 59 I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) F. FUND BALANCE (Continued) Cla s sifica tion / Fund Pur pos eAm ount Nonspendable General Fund Prepaid charges696,389 $ County Services Prepaid charges64,376 Dickson Trust Nonspendable principal5,000 Total nons pendable 765,765 Res tricted General Fund Capital projects4,880,662 Liquor Perm it Fee Touris m560,183 Accomm odations Tax City prom otions51,490 Tourism Developm ent Convention Center Touris m 5,515,814 Hos pitality Tax Com m unity development839,162 Confis cated Drug Program Law enforcem ent231,622 Other Programs Com m unity development206,294 Debt Service Fund Debt Service3,978,932 Congaree Vista Dis trict Construction of parks in Congaree Vis ta District 5,648,755 Mis cellaneous Projects General capital projects31,734,731 Dickson Trust Com m unity development 586 Total res tricted 53,648,231 Com m itted General Fund Com m unity development24,438 General Fund Public s afety4,785,918 Total committed 4,810,356 As s igned General Fund Subs equent year expenditures3,654,109 Streetscaping Streets caping capital projects7,451,655 General Capital Projects General capital im provements9,118,951 Total as signed 20,224,715 Unass igned General Fund 22,352,224 County Services (1,016,105) Total unas s igned 21,336,119 Total fund balances 100,785,186 $ CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS June 30, 2015 60 I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) G. NET POSITION Net position represents the difference between assets and deferred outflows and liabilities and deferred inflows in the statement of net position. Net positi on is classified as net investment in capital assets, restricted, and unrestricted. Net position classified as net investment in capital assets, consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of any borrowings used for the acquisition, construction, or improvement of those assets. Outstanding debt which has not been spent is included in the same net position component as the unspent proceeds. Net position is reported as restricted when there are limitations imposed on their use either through enabling legislation or through external restrictions imposed by cred itors, grantors, contributors, or laws or regul ations of other governments.

Periodically, the City will fund outlays for a particular purpose from both restricted (e.g. restricted bond or grant proceeds) and unrestricted resources. It is the City ’s policy to consider restricted net position to have been depleted before unrestricted net position is applied.

II. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY A. BUDGETARY INFORMATION The City utilizes the following procedures in establishing the budgetary data reflected in the financial statements:

Budgets are adopted on the modified accrual basis of accounting. The budget process begins with the development of the Annual Activity Wo rk Plan by each department and division. These plans are due by the end of November. The City Manager reviews these pl ans in December and gives departments and divisions input on the City Manager’s desired emphasis in t he upcoming budget. Budgets are then developed in the departments and divisions and submitted to the City Manager by the beginning of February. The City Manager reviews these budgets in Ma rch, and the City Manager’s recommended budget is submitted in April to City Council for final approval prior to the beginning of each fiscal year on July 1 st. The operating budget includes proposed expenditures and means of financing them.

Public meetings are conducted to obtain taxpayer comments. A target date in June is set for legal enactment of the budget through passage of an ordinance. The ordinance sets the limit at the fund level at which expenditures may not exceed appropriations. After two readings of the budget, the City Council legally adopts the budget through the passage of the ordinance. The City Manager is authorized to administer the budget and may authorize the transfer of appropriated funds within and between departments and funds as necessary to achieve the goals of the budget. Such transfers are recorded on the City’s records. All unused appropriations lapse at year end. Encumbrances are re-appropriated on a yearly basis and are reflected as an increase in budge ted expenditures in the next year.

Budget accountability rests primarily with the operat ing departments and divisions of the City. In accomplishing the programs and objectives for which th e budget was authorized, department and divisions directors are responsible for ensuri ng that their respective expenditures do not exceed the prescribed funding levels.

B. DEFICIT FUND EQUITY The County Services Fund had a deficit fund balan ce of $951,729 at June 30, 2015. The Parks and Recreation Camp Fund had a deficit net position of $39,499 at June 30, 2015. The Risk Management Internal Service Fund had a deficit net position of $5,328,846 at June 30, 2015. The Fleet Management Internal Service Fund had a deficit net position of $2,675,280 at June 30, 2015. The Support Services Internal Service Fund had a deficit net position of $1 ,281,574 at June 30, 2015. Revenues and transfers from other funds in subsequent years are expected to fund these deficits.

CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS June 30, 2015 61 II. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY (Continued) C. RISK MANAGEMENT The City is self-insured for medical and dental covera ge. Health claims for individuals are limited to an annual amount of $2,000,000 with a stop-loss provision of $400,000 per year. The accrued liability for prior year claims represents estimates for medical and dental claims incurred as of June 30, 2015. Some of these claims were reported at June 30, 2015, while others ma y not be reported until a later date. The incurred but not reported (IBNR) is estimated by the City's i ndependent insurance administrator based on historical results. The City self-insures worker's compensation and gene ral liability programs. The City accounts for the Worker's Compensation program in the Risk Management Fund (an internal service fund) by charging premiums to user departments. The stop-loss provision for Worker's Compensation is $800,000. The limits of liability for tort actions not spec ifically exempt by the South Carolin a Government Tort Claims Act are $300,000 per person and $600,000 per occurrence.

The Risk Management Fund establishes claim liabilities (health, dental, worker’s compensation, and legal) based on estimates of the ultimate cost of claims (i ncluding future claim adjustment expenses) that have been reported but not settled and of claims that have been incurred but not reported. The length of time for which such costs must be estimated varies depending on the coverage involved. Estimated amounts of salvage, subrogation, and rein surance recoverable on unpaid claims are deducted from the liability for unpaid claims. Because actual claim costs depend on such complex factors as inflation, changes in doctrines of legal liability, and damage awar ds, the process used in computing claim liabilities does not necessarily result in an exact amount, par ticularly for coverage such as general liability.

Adjustments to claim liabilities are charged or credit ed to expense in the period in which they are made.

Changes in the aggregate liability for health, dental, worker’s compensation, and legal claims were as follows:

Current Year Claims and Beginning Changes in Claims Ending Fis c al Year Liabilit y Es t imat es Pay ment s Liabilit y 2014 $16,491,117 $29,310,208 ($30,370,660) $15,430,665 2015 $15,430,665 $35,855,659 ($35,037,335) $16,248,989 This liability is reported in both the Risk Management F und of the internal services funds ($16,225,389) and the Water and Sewer Facilities Fund ($23,600).

Fiscal year 2015 aggregate liability above includes the following amounts for legal claims: $7,043,373 beginning liability, $3,452,562 current year claims and changes in estimates, and $4,065,612 claims payments. The ending liability for legal claims is $6,430,324. See also Note VI. B. Property and Boiler Coverage policies are accounted for in the Risk Management Fund as well as other small insurance policies such as surety bond coverage and miscellaneous floaters. Funds are charged expenditures based on premium amounts and administrati ve charges. The City has had no significant reductions in insurance coverage during the year, and settlements have not exceeded insurance coverage for each of the past th ree fiscal years.

CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS June 30, 2015 62 III. DETAIL NOTES ON ALL ACTIVITIES AND FUNDS A. DEPOSITS AND INVESTMENTS As of June 30, 2015, the City, excluding component units, had the following investments:

Fair LessGreater Investment Type ValueThan 1 Than 1 Cer tific ates of Deposit / Money Market 97,302,658 $ 97,302,658 $ - $ Treasuries 50,620,768 4,647,429 45,973,339 Agenc ies 25,054,777 8,447,887 16,606,890 Munic ipals 113,658 - 113,658 Total 173,091,861 $ 110,397,974 $ 62,693,887$ Investment Maturities (in Years) Investment Classification Investments are classified as current or noncurrent on the Statements of Net Position based on the intended use of the investment. Investments purchased with bond proceeds that will be used to purchase capital assets are classified as noncurrent. All other investments are classified as current regardless of the maturity date.

Interest Rate Risk In accordance with its investment policy, the City manage s its exposure to declines in fair values typically by limiting the maturity of its portfolio to no more than se ven years. Investments in securities in agencies related to the U.S. Government earn interest at a st ated fixed rate and are normally held to maturity when the full principal and interest amount is paid to the City. Credit Risk for Investments The City’s investment policy requires that the portfolio consist largely of securities with active secondary or resale markets. In addition, a portion of the portfolio may be placed in the South Carolina Pooled Investment Fund. This fund is unrated. Investments in U.S. Treasuries are considered to have no credit risk. The investments in agencies related to the U. S. Government include the following: (1) Federal Home Loan Mortgage Corp Discount Notes and (2) Federal National Mortgage Association Discount Notes; these securities are rated A-1+ by Standard and Poor ’s and P-1 by Moody’s Investors Service.

State law and the City’s investment policy lim it investments to the following securities:

 Obligations of the United States and agencies thereof.

 General obligations of the State of South Carolina or any of its political subdivisions.

 Certificates of deposit where t he certificates are collaterally insured by securities described above held by a third party as escrow agent or custodian, of a market value not less than the amount of the certificates of deposit so secured, including interest.

 Repurchase agreements when collateralized by securities set forth above.

Concentration of Credit Risk The City’s investment policy prohibits investing more than 10% of the total portfolio in a single holding or more than 25% in any one issuer except for United States Treasury securities and money market mutual funds.

CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS June 30, 2015 63 III. DETAIL NOTES ON ALL ACTIV ITIES AND FUNDS (Continued) A. DEPOSITS AND INVESTMENTS (Continued) Custodial Credit Risk - Deposits The City’s cash deposit policy requires that United States Treasury or Agency securities of a fair value equal to the bank deposits be held by a third-party custodian in the City’s name. At June 30, 2015, the City was in full compliance with its collateral policy. Custodial Credit Risk - Investments Custodial credit risk for investments is the risk that, in the event of a bank failure, the government will not be able to recover the value of its investments or collateral securities that are in possession of an outside party.

The City’s investment policy requires that securities be held by a third-party custodian in the name of the City. As of June 30, 2015, none of the City’s security investments were exposed to custodial credit risk.

Reconciliation to the Financial Statements A reconciliation of cash and investments, excluding component units, as shown on the combined balance sheet for all fund types follows:

Amount Carry ing Amount of Depos it s 321, 824, 368 $ Fair Value of Investments 173,091,861 Tot al Depos it s and Inves t ment s 494, 916, 229 $ Statement of Net Position Cas h and Equivalent s 320, 374, 245 $ Inves t ment s - Current 98, 143, 883 Cash on Deposit with Escrow Agent 1,400,296 Investments - Noncurrent 74,947,978 Statement of Net Pos ition - Fiduc iary Funds Cas h and Equivalent s - Trus t Funds 16, 099 Cas h and Equivalent s - Agenc y Funds 33, 728 Total Cas h and Investments 494,916,229 $ Des c ript ion B. RECEIVABLES Receivables for the primary government as of year-e nd are shown net of allowances for uncollectible accounts. Management’s estimates of uncollectible accounts at June 30, 2015, are as follows:

General Fund 61,942 $ W ater/Sewer Fac ilities 2,903,148 $ Parking Fac ilities 1,582,171 $ Nonmajor Business-ty pe ac tivities 687 $ Receivables for the component units consist of item s totaling approximately $456,800 at June 30, 2015, which are net of allowances for doubtful accounts. As of June 30, 2015, the allowance for doubtful accounts was approximately $44,600 for the component units. CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS June 30, 2015 64 III. DETAIL NOTES ON ALL ACTIV ITIES AND FUNDS (Continued) B. RECEIVABLES (Continued) Governmental funds report deferred inflows of resource s in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period. Governmental funds also defer revenue recognition in connection with resour ces that have been received but not yet earned. C. MORTGAGE NOTES RECEIVABLE AND REVOLVING LOAN POOLS The various mortgage programs involve the Community Development fund’s loan programs and economic development programs which are reported in the nonmaj or proprietary funds and certain component units. The various types of loan programs are complex in nature and require specialized accounting methods, including the valuation of notes and mortgages receivable at the lower of cost or market.

Primary government Mortgage notes receivable in the various Community Development revolving loan programs are evaluated annually, and loan loss allowances are applied where appropriate. All mortgages are secured by the property. Delinquent mortgages receivable are estima ted to be approximately $1,686,900 of the total net mortgage notes receivable of approximat ely $21,023,600 as of June 30, 2015. Component units The Columbia Housing Development Corporation (CHDC) has mortgage notes receivable consisting of $661,656, which is net of an allowance for uncollectibl e loans of $71,876. Mortgage notes receivable consist of loans to individuals under various federal housing lending programs and have various interest rates and maturity dates. The CHDC is considered a real estate development corporation, and revenue recognition is applied under the cost recovery method.

The Columbia Development Corporation (CDC) has mort gage notes receivable consisting of $1,210,283. No allowance for uncollectible loans is deemed necessary by management. Mortgage notes receivable consist of four loans to corporations fo r the purpose of community development and have various interest rates and maturity dates. The CDC is considered a community development corporation, and revenue recognition is applied under the cost recovery method.

CEZ, Inc. has loans receivable amounting to $2,025,552, wh ich is the net of allowance for uncollectible loans of $370,674. Mortgage notes receivable consist of l oans to businesses within the Columbia Empowerment Zone and have various interest rates and maturity dates. CEZ, Inc. is a non-profit corporation, and revenue recognition is applied under the accrual method.

D. INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS The interfund receivables and payables (includi ng advances) at June 30, 2015, are as follows:

Interfund Interfund Receivables Payables Funds:

W ater/Sewer Fac ilities Fund 3,062,089 $ - $ County Services Fund - 162,314 General Fund - 2,739,972 Other Governmental 2,986,200 1,943,652 Nonmajor Proprietary Fund - - Int ernal S ervic e - 1,202,351 Total 6,048,289 $ 6,048,289 $ CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS June 30, 2015 65 III. DETAIL NOTES ON ALL ACTIV ITIES AND FUNDS (Continued) D. INTERFUND RECEIVABLES, PAY ABLES, AND TRANSFERS (Continued) The outstanding balance between funds results primarily from one of the following time lags: (1) the dates that interfund goods and services are provided or reimbursable expenditures or repayments occur; (2) transactions are recorded in the accounting system; and (3) payments between funds are made.

The interfund transfers for the year ended June 30, 2015, are as follows:

Trans fers In Transfers Out General 14, 341, 918 $ 17,367,879$ County Services - 689,832 Nonmajor governmental funds 16,184,915 11,869,240 W ater/Sewer 1,295 8,831,372 Parking - 322,586 Nonmajor proprietary funds 1,098,236 835,430 Int ernal s ervic e funds 9, 114, 754 824, 779 40,741,118 $ 40,741,118 $ Transfers are used to 1) move revenues from the fund with collection authorization to the Debt Service Fund as debt service principal and interest payments become due, 2) move restricted amounts from borrowing to the Debt Service Fund to establish mandatory reserv e accounts, and 3) move unrestricted general fund revenues to finance various programs that the government must account for in other funds in accordance with budgetary authorizations, including amounts provided as subsidies or matching funds for various grants programs. E. OPERATING LEASES The City is committed under various operating leases for real estate, office, and copier equipment. Operating lease expenditures for the year ended June 30, 2015, were approximately $799,100. Future minimum lease payments for thes e leases are as follows:

Year Ending J une 30, Amount 2016 1,053,040 $ 2017 1,054,051 2018 652,025 2019 560,644 2020 560,644 2021 - 2025 252,000 2026 - 2030 252,000 2031 - 2035 252,000 2036 - 2039 201,600 Total 4,838,004 $ CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS June 30, 2015 66 III. DETAIL NOTES ON ALL ACTIV ITIES AND FUNDS (Continued) F. CAPITAL ASSETS Capital asset activity for the year ended June 30, 2015, is as follows:

Balanc e Balanc e June 30, 201 4 Inc reas es Trans fers Dec reas es June 30, 201 5 Gove r nm e ntal Activitie s Capital as s ets , not being deprec iated: Land 32,647, 161 $ 696 ,100 $ - $ (85,282) $ 33,257, 979 $ Cons truc tion in progres s 6,425,233 11,962 ,266 (7,318 ,791) (16 ,314) 11,052,394 Total c apital as s ets not being deprec iated 39,072,394 12,658,366 (7,318 ,791) (101 ,596) 44, 310 ,373 Capital as s ets , being deprec iated:

Buildings and improv ements 203 ,248,910 28,961 5 21,585 - 203 ,799,45 6 Mac hinery and equipment 5 0,084,854 8,54 6,827 7 31,265 (1,775,4 09) 57,5 87,5 37 In frastructure 24,829 ,533 1,437,934 6,065,941 - 32,333 ,408 Total c apital as s ets , being deprec iated 278,163 ,297 10,013 ,722 7, 318 ,791 (1,775,4 09) 293 ,720,401 Less ac c umulated deprec iation: Buildings an d imp r o v e me n t s (58,633 ,811) (6,797,389) - - (65,431 ,200) Mac hinery and equipment (34,974,7 32) (5,095,658) - 1,738,051 (38 ,332 ,339) In frastructure (11 ,436,590) (1,175, 145) - - (12 ,611 ,735) Total ac c umulated deprec iation (10 5,045, 133) (13 ,068 ,192) - 1,738,051 (116 ,375, 274) Total c apital as s ets , being deprec iated, net 173,118 ,164 (3,054,47 0) 7, 318 ,791 (37,358) 177, 345, 127 Governmental ac tiv ities c apital as s ets , net 212,190,558 $ 9,603,896$ -$ (138,954) $ 221,655,500$ CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS June 30, 2015 67 III. DETAIL NOTES ON ALL ACTIV ITIES AND FUNDS (Continued) F. CAPITAL ASSETS (Continued) Balanc e Balance June 30, 2014 Inc reas es Trans f ers Dec reas es June 30, 2015 Business-Type Activities Capital as s ets , not being deprec iated:Land 30,111,133 $ 53,889 $ - $ (456) $ 30,164,566 $ Cons truc tion in progres s 153,937,441 65,530,041 (130,323,064) (843,336) 88,301,082 Total capital ass ets not being deprec iated 184,048,574 65,583,930 (130,323,064) (843,792) 118,465,648 Capital as s ets , being depreciated: Buildings and improv ements 920,226,042 3,818,775 108,580,000 (2,999,921) 1,029,624,896 Mac hinery and equipment 49,545,818 3,743,898 21,743,064 (1,494,747) 73,538,033 Total capital ass ets , being deprec iated 969,771,860 7,562,673 130,323,064 (4,494,668) 1,103,162,929 Les s ac c umulated deprec iation: Buildings and improv ements (346,350,880) (26,604,205) - 1,298,152 (371,656,933) Mac hinery and equipment (27,982,893) (6,943,326) - 1,479,849 (33,446,370) Total ac c umulated deprec iation (374,333,773) (33,547,531) - 2,778,001 (405,103,303) Total capital ass ets , being deprec iated, net 595,438,087 (25,984,858) 130,323,064 (1,716,667) 698,059,626 Bus ines s -ty pe ac tivities c apital as s ets , net 779,486,661 $ 39,599,072 $- $ (2,560,459) $ 816,525,274 $ Depreciation expense was charged to function/pr ograms of the primary government as follows:

Go ve rn m e n ta l Acti vi ti e s :

General governm en t 7,207,150 $ Public s afet y 3,241,808 Parks and recreation 1,622,116 Public services 650,705 Judicial 50,017 Com munity developmen t 11,851 General s ervices 27,756 Finance departm en t 2,188 Intern al s ervice fun ds 2 54 ,6 01 Total depreciation expens e - governm ental activities 13,068,192 $ Business-type Activities: Water/Sewer facilities 30,928,260 $ Storm water facilities 790,049 Parking facilities 1,505,756 Hydro electric plan t 323,466 Total depreciation expens e - bus ines s -type activities 33,547,531 $ CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS June 30, 2015 68 III. DETAIL NOTES ON ALL ACTIV ITIES AND FUNDS (Continued) F. CAPITAL ASSETS (Continued) During the year ended June 30, 2015, $8,637,663 of interest expense in the Business-type activities was capitalized. The City has several ongoing constructi on projects as of June 30, 2015, for renovations and other construction projects. Total remaining commitments on these construction contracts as of June 30, 2015, totaled approximately $91,555,300.

During the year ended June 30, 2015, the City record ed in the governmental activities $2,134,035 in infrastructure contributed by private parties and in t he business-type activities $3,872,664 in infrastructure contributions by developers. Columbia Parking Facilities Corporation – Capital Lease Receivable In 2008, construction was completed on the Innovista parking garages. The parking garages and corresponding long-term debt were recorded by the Columbia Parking Facilities Corporation (the Corporation), a blended component unit as noted in Note I. A. The Corporation entered into an agreement with the University of South Carolina (the University) that provided the Univ ersity use of the garages and, in return, the University would pay the debt service on the associated long term debt. A review of the terms of the agreement during 2010 determined t hat the agreement represented a capital lease with the University, and therefore, the parking garages were removed from the Corporation and recorded by the University. Additionally, a lease receivable from the University was also recorded in the amount of the outstanding associated debt. See Note III. H. fo r details of the related debt (Note payable $4,209,142 and revenue bond payable of $10,620,000). Total future minimum rentals to be received from the University under the capital lease agreement will be $14,829,142. Future capital lease payments to be rece ived from the University are as follows:

Year Ending June 30, Amount 2016 695, 869 $ 2017 4, 660, 451 2018 598, 990 2019 633, 860 2020 628, 730 2021-2025 3, 556, 630 2026-2030 4, 375, 180 2031 725, 860 Total 15,875,570 Les s amount repres ent ing int eres t 1, 046, 428 Total minimum future rentals 14,829,142 Les s amount due wit hin one y ear 580, 000 Nonc urrent c apit al leas e rec eivable 14, 249, 142 $ CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS June 30, 2015 69 III. DETAIL NOTES ON ALL ACTIV ITIES AND FUNDS (Continued) G. OTHER POSTEMPLOYMENT BENEFITS Plan Description and Funding Policy The City provides postemployment health care benefits, in accordance with City policy, to all employees who retire from the City under early or regular retirem ent and have been employed by the City for 20 years or more. Currently, 778 retirees meet those requirements. The City pays all Medicare supplemental insurance premiums for all qualifying retirees. For the year ended June 30, 2015, premiums totaled approximately $1,219,867. Retirees paid dependent coverage of approx imately $779,100. Currently, the City is financing the postemployment retirement ben efits on a pay-as-you-go basis, and expenditures for these insurance premiums are recorded in all of the City’s funds. Prior to January 1, 2015, retirees under the age of 65 paid between $37 and $383 a month depending on the various coverage elections. The City’s contributions during the same time period were $800 a month for the retiree and $600 per month for the retiree’s domestic partner. After January 1, 2015, the retiree paid between $37 and $383 a month depending on the various coverage elections, and the City paid $ 800 a month for the retiree and $600 a month for the retiree’s domestic partner. Prior to January 1, 2015, for retirees over the age of 65, the retiree paid $120 per month for health care benefits. The City paid $300 a month for retirees over 65. If the retiree elected to cover their domestic partner, the cost to the retiree was $195 a month, and the cost to the City was $225 a month. After January 1, 2015, the retiree paid $143 a month for single coverage, and the cost to the City wa s $300 a month. If the retiree elected to cover their domestic partner, the retiree paid an additional $218 a month, and the City paid an additional $225 a month. Surviving spouses of retirees may elect to continue health care benefits.

The contribution requirements of the retirees are esta blished and may be amended by the members of City Council. The following schedule reflects the costs and number of participants in the City's health care program. 201 5 2014 2013 2012 2011 Participants :Active 2,019 2,083 2,032 2,030 2,039 Retired 812 77 8 757 698 7 02 Tota l Emp loy ee Claims Active 17,169 ,674 $ 15,7 27,7 32 $ 15,880 ,782 $ 13,999 ,800 $ 11,903 ,954 $ Retired 5,801 ,345 $ 5,5 48,464 $ 5,75 4,566 $ 5, 868 ,443 $ 3,557, 000 $ % of Active Pay ro ll Active 18.37% 17.11% 17.63% 15.7 9% 13.47% Retired 6.21% 6.04% 6.39% 6.62% 4.03% Total 24.58%23.15%24.02% 22.41%17.50% For the fiscal year ended June 30, 2008, the City implemented Governmental Accounting Standards Board Statement No. 45, “ Accounting and Financial Reporting by Employers for Postemployment Benefits Other than Pensions, ” for certain postemployment health care benef its provided by the City, which are offered under a single employer defined benefit plan. From an accrual perspective, the cost of other postemployment healthca re benefits (OPEB), like the cost of pension benefits, generally should be associated with the periods in which that cost occurs. In adopting GASB Statement 45 during the year ended June 30, 2008, prospectively, the City recognized the Annual Required Contribution (ARC) associat ed with OPEB as an expense and the liability associated with the net OPEB obligations. The ARC consists of the cost of benefits accruing in a year plus an amount calculated to amortize any unfunded actuaria l accrued liability over a period of 30 years. CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS June 30, 2015 70 III. DETAIL NOTES ON ALL ACTIV ITIES AND FUNDS (Continued) G. OTHER POSTEMPLOYMENT BENEFITS (Continued) Annual OPEB cost and Net OPEB Obligation The City had an actuarial valuation performed for the plan as of July 1, 2013, to determine the funded status of the plan as of that date as well as the employer’s ARC for the fiscal year ended June 30, 2014. The City’s annual OPEB cost and the net OPEB obligation for the ye ar ended June 30, 2015, on the Statement of Net Position was as follows: Employer Normal Cos t 3,817,795 $ Amortization of UAAL* 6,527,674 Annual Required Contribution (ARC) 10,345,469 Interest on Net Obligation 2,585,047 Adjus tment to the ARC (2,196,210) Annual OPEB Cost 10,734,306 Contributions made (7,248,904) Increase in Net OPEB Obligation 3,485,402 Net OPEB Obligation, July 1, 2013 48,612,703 Net OPEB Obligation June 30, 2014 52,098,105 $ * Unfunded Actuarial Accrued Liabilities (UAAL) are being amortized over 30 years.

A summary of the annual OPEB cost, percentage of the annual OPEB cost contributed, and the year end net OPEB obligation for the year ended June 30, 2015, and the two preceding years is as follows:

Perc entage of Annual Annual OPEB Net OPEB Year ended June 30, OPEB Cos t Cost Contributed Obligation 2013 8, 146, 966 $ 61. 29% 45, 803, 720 $ 2014 9, 546, 348 70.58% 48,612,704 2015 10, 734, 306 67.53% 52,098,105 Trend Informat ion CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS June 30, 2015 71 III. DETAIL NOTES ON ALL ACTIV ITIES AND FUNDS (Continued) G. OTHER POSTEMPLOYMENT BENEFITS (Continued) Funded Status and Funding Progress Funded status and funding progress of the pl an as of July 1, 2014, was as follows:

Pres ent Value of Fut ure Benefit s :

Retirees & Benefic iaries 71,889,828 $ Participants Fully Eligible for Benefits 15,449,801 Participants Not Fully Eligible for Benefits 51,409,078 Total Pres ent Value of Future Benefits 138,748,708 $ Pres ent Value of Future Normal Costs 10,047,531 $ Ac tuarial Ac crued Liabilit ies (AAL) 138,748,708 $ Ac tuarial Value of Plan As s ets - Unfunded Ac tuarial Ac crued Liabilit y (UAAL) 138,748,708 $ Funded Ratio (act uarial value of plan as s et s/AAL) 0% Covered pay roll (annual pay roll of employ ees c overed by t he plan) 93,451,271 $ UAAL as a perc entage of c overed pay roll 148.47% Actuarial valuations for OPEB plans involve estimates of the value of the reported amounts and assumptions about the probability of events far into the future. T hese actuarially determined amounts are subject to continual revisions as actual results are compared to past expectations and new estimates are made about the future. The schedule of funding progress present ed immediately following the financial statements, as required supplementary information, presents multi-year trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits.

Actuarial Methods and Assumptions Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events well into the future, thus reflecting a long-term perspective. Examples would include assumptions about future employment, rates of retirement, mortality, and health care cost trends. Actuarially determined amounts are subject to continual revision as actual results are compared to past expectations, and new estimates are made about the future. Projections of benefits for financial reporting purposes are based on the subst antive plan (the plan understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The schedule of funding progress, presented as required supplementary information following the Notes to Financial Statements, presents multi-year tr end information about whether the ac tuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits.

In the July 1, 2013, actuarial valuation, the proj ected unit credit cost method was used. The UAAL amortization payment is the level percent of payroll (ass umed to increase 3%) required to fully amortize the UAAL over a 30-year period. As of June 30, 2015, 23 years of amortization remain on the UAAL. The actuarial assumptions included 5.25% rate of investment return. The valuation assumes a 7.5% health care trend inflation rate for 2015 and decreases 0.5% each year until 2017. General inflation is assumed to be 3% per year. CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS June 30, 2015 72 III. DETAIL NOTES ON ALL ACTIV ITIES AND FUNDS (Continued) H. LONG-TERM OBLIGATIONS Balanc e Balanc e Amount June 30, 2014 Addi tions Reduc t ions June 30, 201 5 Due in 2016 Gove r nm e ntal Activitie sNotes pay a ble5 , 229 ,142 $ - $ (19 5,000) $ 5, 034 ,142 $ 215,000 $ GO bonds 35,680 ,000 - (5,015,000) 30,665,000 5, 155, 000 Rev enue bonds 43,580,000 26,175, 000 (3,720,000) 66,035,000 3,815,000 Unamort ized bond prem iums 1,814 ,898 3,747,839 (323 ,75 8) 5, 238 ,979 - Capital leas e pay a ble- 7, 000 ,000 (396 ,791) 6,603 ,209 972,567 Compens ate d abs enc es 6,721,371 6,945,280 (7,017,021) 6,649 ,630 1,378,419 OPEB costs 48,612 ,704 10,734,306 (7,248 ,905) 5 2,098 ,105 - Derivat ive ins trument liability 1,829 ,366 - (654,747) 1,174,619 - Total gov ernmental ac tiv ities 143,467,481 54,602,425 (24,571,222 ) 173,498,684 11,535,986 Busines s-Type Activities Rev enue bonds 475, 400 ,000 12,210 ,000 (21 ,815,000) 465,7 95,000 9,450,000 Unamort ized bond prem iums 29,705,688 - (1,764,790) 27,940 ,898 - Compens ate d abs enc es 1,849 ,688 2,145,836 (2,217,134) 1,77 8,390 355, 678 Derivat ive ins trument liability 20,070,469 6,814 ,347 - 26,884 ,816 - Tota l busines s -ty pe ac t ivities 5 27,025,845 21,170,183 (25,7 96,924) 5 22,399 ,104 9,805,678 Total all long-term obligations 670,493,326 $ 75,772,608$ (50,368,146)$ 695,897,788 $ 21,341,664$ Internal Service Funds predominantly serve the Govern mental Funds. Accordingly, long-term liabilities for them are included as part of the above totals for governmental activities. At year end, $242,459 of Internal Service Funds compensated absences is included in the above amounts. Also, for the governmental activities, claims and judgments and compensated absences are generally liquidated by the General Fund.

The Series 2012 Certificates of Pa rticipation are liquidated by the Tour ism Development Convention Center Fund. The notes payable and capital lease obligations are liquidated by the General Fund. The remaining governmental debt is liquidated by the Debt Service Fund. The entire other post-employment benefit liability is reported in the Risk Management Internal Service Fund and will be liquidated by that fund. CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS June 30, 2015 73 III. DETAIL NOTES ON ALL ACTIV ITIES AND FUNDS (Continued) H. LONG-TERM OBLIGATIONS (Continued) The annual requirements to amortize all out standing debt of the City as of June 30, 2015, including interest payments, but excluding accrued vacation payable and amortization of bond premiums, are as follows: Governmental Activities: Gener al Capital Y ear Ending Obligation Rev enue Note Leas e Total Total June 30, Bonds Interest Bonds Interes t Payable Interest Payable Interest Principal Interes t 2016 5,155,000 $ 1,034,076 $ 3,815,000$ 2,049,695$ 215,000 $ 7,569$ 972,567$ 96,693 $ 10,157,567$ 3,188,033 $ 2017 5,300,000 889,374 3,945,000 1,965,632 4,144,142 7,569 987,946 81,314 14,377,088 2,943,889 2018 5,350,000 715,200 4,040,000 1,879,242 75,000 - 1,003,570 65,690 10,468,570 2,660,132 2019 3,810,000 517,275 4,165,000 1,790,714 75,000 - 1,019,440 49,820 9,069,440 2,357,809 2020 2,650,000 391,049 4,255,000 1,700,175 75,000 - 1,035,561 33,699 8,015,561 2,124,923 2021-2025 6,890,000 890,082 14,720,000 7,249,697 375,000 - 1,584,125 19,765 23,569,125 8,159,544 2026-2030 1,510,000 92,340 9,115,000 5,996,030 75,000 - - - 10,700,000 6,088,370 2031-2035 - - 6,725,000 4,737,660 - - - - 6,725,000 4,737,660 2036-2040 - - 7,645,000 3,086,000 - - - - 7,645,000 3,086,000 2041-2044 - - 7,610,000 974,500 - - - - 7,610,000 974,500 30,665,000 $ 4,529,396 $ 66,035,000 $ 31,429,345 $ 5,034,142 $ 15,138 $ 6,603,209 $ 346,981 $ 108,337,351 $ 36,320,860 $ CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS June 30, 2015 74 III. DETAIL NOTES ON ALL ACTIV ITIES AND FUNDS (Continued) H. LONG-TERM OBLIGATIONS (Continued) Business-Type Activities:

Year Ending Revenue June 30, BondsInt eres t 2016 9, 450, 000 $ 21,795,848 $ 2017 9, 865, 000 21,383,283 2018 10, 305, 000 20,940,643 2019 10, 730, 000 20,512,989 2020 11, 180, 000 20,066,553 2021-2025 64,540,000 92,935,556 2026-2030 81,635,000 76,608,393 2031-2035 105, 785, 000 54,956,440 2036-2040 125, 635, 000 27,759,131 2041-2043 36,670,000 2, 512, 500 465, 795, 000 $ 359,471,336 $ General Obligation Bonds The City has issued General Obligation Bonds to fund bu ilding programs of the City, acquire capital assets, and also to refinance debt issued to fund infrastr ucture improvements and acquire land. The City has complete liability for the retirement of these obligations. Principal payments on all bonds are due annually and interest is due semi-annually.

The South Carolina Constitution limits local unit borrowing power to 8% of its assessed property value. The limitation excludes bonded indebtedness existing prior to December 1, 1977, (date of the Constitutional Amendment), certain special levies assessed on properties located in an area receiving special benefits, and other prescribed indebtedness approved by the voters.

CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS June 30, 2015 75 III. DETAIL NOTES ON ALL ACTIV ITIES AND FUNDS (Continued) H. LONG-TERM OBLIGATIONS (Continued) General Obligation Bonds outstanding as of June 30, 2015, are as follows:

Governmental Ac tivities :

$9,085,000 City of Columbia General Obligat ion Bonds , Series 2007A Proc eeds for: Defeas ance of the 2006 Bond Antic ipation Notes ,c ons truc tion and infras truc ture improvements Annual princ ipal ins tallments of $410,000 to $770, 000 through June 1, 2027 Interes t rate: 3. 75 to 4.05% 7,345,000 $ $9,375,000 City of Columbia General Obligat ion Bonds , Series 2011A Proc eeds for: Acquis ition of capital as sets Annual princ ipal ins tallments of $225,000 to $1,505,000 through Feb. 1, 2021 Interes t rate: 2. 00 to 3.00% 3,575,000 $9,945,000 City of Columbia General Obligat ion Bonds , Series 2011B Proc eeds for: Refund Series 2002 General Obligation Bonds Annual princ ipal ins tallments of $10,000 to $1,160,000 through Feb. 1, 2022 Interes t rate: 2. 00 to 3.00% 7,310,000 $5,575,000 City of Columbia General Obligat ion Bonds , Series 2011C Proc eeds for: Acquis ition of capital as sets Annual princ ipal ins tallments of $115,000 to $975, 000 through June 1, 2021 Interes t rate: 2. 00 to 4.00% 2,155,000 $6,375,000 City of Columbia General Obligat ion Bonds , Series 2012 Proc eeds for: Acquis ition of capital as sets Annual princ ipal ins tallments of $195,000 to $1,235,000 through June 1, 2022 Interes t rate: 2. 00 to 3.00% 4,215,000 $7,315,000 City of Columbia General Obligat ion Bonds , Series 2013 Proc eeds for: Acquis ition of capital as sets Annual princ ipal ins tallments of $215,000 to $1,505,000 through February 1, 2021 Interes t rate: 2. 00 to 3.50% 6,065,000 Total Governmental Ac tivities General Ob ligation Bonds 30,665,000 $ Revenue Bonds, Notes and Cert ificates of Participation Revenue bonds, notes, and certificates of participati on are special obligations of the City payable from revenues derived from certain operations. The City 's revenue bond ordinances stipulate that the City maintain certain debt service, operations, and renewal and replacement funds. The City has complied in all material respects with the bond covenants as outlined in each issue's indenture.

CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS June 30, 2015 76 III. DETAIL NOTES ON ALL ACTIV ITIES AND FUNDS (Continued) H. LONG-TERM OBLIGATIONS (Continued) The construction of the second of two Innovista gara ges was funded by the issuance of a $13,070,000 tax- exempt South Carolina Jobs-Economic Development Aut hority Revenue Bonds, Series 2007. The Columbia Parking Facilities Parking Corporation, a component uni t of the City, is responsible for the payment of the bonds. BB&T, the bond holder, also holds a first mo rtgage on both garages. Richland County was responsible for 50% of the construction costs. T he garages are operated by the University, and the revenues from them are remitted by US C to the Corporation to retire this debt. This arrangement constitutes a capital lease agreement with the University, and as such, a receivable has been recorded for the amount of future debt service. The garages have been recorded by the University (see Note III. F. for more details). Interest payments began on April 1, 2007. The prin cipal balance is payable in monthly installments beginning September 1, 2008, together with interest on the unpaid balance, with a final payment of all principal and interest, due and payable in full on March 1, 2031. Interest is at a rate per annum equal to 95% of the LIBOR Rate, which was 0.186% at June 30, 2015. The Corporation entered into an interest rate swap agreement in relation to the bond issue as detailed in Note V.

In the event of default of these Series 2007 revenue bonds, no judgment for any deficiency upon the indebtedness will be sought or obtained by the bank against the City. The University of South Carolina is the guarantor for payment of the debt.

An additional $5,185,000 taxable (based on percent of garage used for private purposes) construction and term loan was made to the Corporation by a bank for the second garage that enables the Corporation to draw down proceeds from the loan as needed during the construction of the second garage. The principal balance and any accrued interest are due in full on Marc h 1, 2017. Interest is payable at an adjusted LIBOR rate which is a rate of interest per annum equal to t he One Month Libor plus 1.5% per year. This rate is adjusted monthly on the first day of each month for each LIBOR interest period (0.186%, at June 30, 2015). At June 30, 2015, $4,215,000 was outstanding on the term loan.

In the event of foreclosure of this note, no judgment fo r any deficiency upon the indebtedness will be sought or obtained by the bank against the City.

Notes Payable Governmental Ac tivities :

$1,500,000 Note sec ured for development c osts for Drew W ellness Center.

Annual princ ipal installments of $75,000 through August 14, 2026.

Interest rate 0.0%. 825,000 $ $5,185,000 Construc tion note sec ured for the c onstr uc tion of a 1,450 parking spac e parking dec k for Innovista. (Note III.F.) Annual princ ipal installments of $120,000 to $140,000 through Marc h 1, 2017, with balloon pay ment at matur ity .

Interest rate: Adjusted LIBOR rate (0.20%). (See Note V. for details r egarding the interest rate swap related to this note issue.) Maximum draw amount: $5,185,000. 4,209,142 Total Governmental Activities Note Payable 5,034,142 $ CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS June 30, 2015 77 III. DETAIL NOTES ON ALL ACTIV ITIES AND FUNDS (Continued) H. LONG-TERM OBLIGATIONS (Continued) Revenue bonds outstanding as of June 30, 2015, are as follows:

Governmental Activities:

$14, 825, 000 Revenue Bond - Hos pit alit y Fee Pledge, Series 2012 Pay able from revenues derived by t he Cit y from hos pit alit y t ax es Annual princ ipal ins t allment s of $1, 000, 000 t o $1, 315, 000 t hrough Feb. 1, 2025 Interest rate: 2.50% 11,795,000 $ $24, 260, 000 Cert ific at es of Part ic ipat ion Series 2012 Payable from revenues derived by the City from touris m development fees Annual princ ipal ins t allment s of $2, 225, 000 t o $2, 660, 000 t hrough June 1, 2022 Interest rate: 2.29% 17,445,000 $26, 175, 000 Spec ial Obligat ion Revenue Bond - Hos pit alit y Fee Pledge, Series 2014 Pay able from revenues derived by t he Cit y from hos pit alit y t ax es Annual principal ins tallments of $900,000 to $2,045,000 through Feb. 1, 2044 Interest rate: 2.42 to 3.15% 26,175,000 $13, 070, 000 Sout h Carolina Jobs -Ec onomic Development Aut horit y Bond 2007 Pay able from revenues derived by t he Cit y from operat ion of a garage (Not e III. F. ) Annual princ ipal ins t allment s of $250, 000 t o $920, 000 t hrough Marc h 1, 2031 Interest rate: Rate per annum equal to 95% of LIBOR (0.20%). See Note V.

for details regarding the interest rate swap related to this bond issue. 10,620,000 Total Governmental Activities Revenue Bonds 66,035,000 $ Business-Type Activities:

Parking Facilities Fund:

$39, 895, 000 Park ing Fac ilit ies Revenue Bonds , Series 2005A Pay able from revenues derived by t he Cit y from operat ion of off-s t reet and on-s t reet park ing fac ilit ies Annual princ ipal ins t allment s of $1, 240, 000 t o $3, 015, 000 t hrough Feb. 1, 2037 Interest rate: 4.375 to 5.0% 28,170,000 $ $5, 380, 000 Park ing Fac ilit ies Revenue Bonds , Series 2005B Pay able from revenues derived by t he Cit y from operat ion of off-s t reet and on-s t reet park ing fac ilit ies Proceeds for: Expand City parking facilities Annual principal ins tallments of $225,000 to $1,120,000 through Feb. 1, 2017 Interest rate: 4.88 to 5.2% 1,580,000 $12, 210, 000 Park ing Fac ilit ies Refunding Revenue Bonds , Series 2014 Pay able from revenues derived by t he Cit y from operat ion of off-s t reet and on-s t reet park ing fac ilit ies Proceeds for: Refunding a portion of the Series 2000A and 2000B bonds Annual principal ins tallments of $300,000 to $1,750,000 through Feb. 1, 2025 Interest rate: 2.38% 11,930,000 Tot al Park ing Fac ilit ies Revenue Bonds 41,680,000 CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS June 30, 2015 78 III. DETAIL NOTES ON ALL ACT IVITIES AND FUNDS (Continued) H. LONG-TERM OBLIGATIONS (Continued) Bus ines s -Type Ac tivities : (Continued) W ater and Sewer Fund:

$81,860,000 W aterwork s and Sewer Sy s tem Revenue Bonds , Series 2009 Pay able from revenues derived from the City 's water and s ewer s y s tem Proc eeds for: Cos t of improvements to the Sy s tem Annual princ ipal ins tallments of $525,000 to $10,840,000 through Feb. 1, 2038 Interest rate: 3.6 to 5.0% See Note V for details regarding the interes t rate s wap related to thisbond is s ue 81,860,000 $ $105,000,000 W aterwork s and Sewer Sy s tem Revenue Bonds , Series 2010 Pay able from revenues derived from the City 's water and s ewer s y s tem Proc eeds for: Cos t of improvements to the Sy s tem Annual princ ipal ins tallments of $1,090,000 to $17,855,000 through Feb. 1, 2040 Interes t rate: 3.0 to 5.0% 101,650,000 $100,000,000 W aterwork s and Sewer Sy s tem Revenue Bonds , Series 2011A Pay able from revenues from the City 's water and s ewer s y s tem Proc eeds for: Cos t of improvements to the Sy s tem Annual princ ipal ins tallments of $1,815,000 to $23,520,000 through Feb. 1, 2041 Interes t rate: 2.0 to 5.0% 94,005,000 $27,265,000 W aterwork s and Sewer Sy s tem Revenue Bonds , Series 2011B Pay able from revenues from the City 's water and s ewer s y s tem Proc eeds for: Refunding portion of Series 2001 ($30,345,000) Annual princ ipal ins tallments of $3,420,000 to $4,455,000 through Feb. 1, 2019 Interes t rate: 4.0 to 5.0% 16,585,000 $58,055,000 W aterwork s and Sewer Sy s tem Revenue Bonds , Series 2012 Pay able from revenues from the City 's water and s ewer s y s tem Proc eeds for: Refunding portion of Series 2005 ($60,000,000) Annual princ ipal ins tallments of $4,560,000 to $6,115,000 through Feb. 1, 2030 Interes t rate: 3.5 to 5.0% 58,055,000 $75,305,000 W aterwork s and Sewer Sy s tem Revenue Bonds , Series 2013 Pay able from revenues from the City 's water and s ewer s y s tem Proc eeds for: Cos t of improvements to the Sy s tem Annual princ ipal ins tallments of $1,205,000 to $4,600,000 through Feb. 1, 2043 Interes t rate: 1.0 to 5.0% 71,960,000 Total W ater and Sewer Revenue Bonds 424,115,000 Total Bus ines s -Type Ac tivities Revenue Bonds 465,795,000 $ Obligations Under Capital Leases During the current year the City enter ed into a lease agreement as lessee for financing the acquisition of various vehicles valued at approxim ately $7,000,000. The estimated useful lives of the vehicles range from five to twelve years. During the current year ap proximately $275,000 was included in depreciation expense. CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS June 30, 2015 79 III. DETAIL NOTES ON ALL ACT IVITIES AND FUNDS (Continued) H. LONG-TERM OBLIGATIONS (Continued) Obligations Under Capital Leases (Continued) This lease agreement qualifies for as a capital leas e for accounting purposes and, therefore has been recorded at the present value of future mini mum lease payments as of the inception date.

$7,315,000 City of Columbia General Obligat ion Bonds , Series 2013 Proc eeds for: Acquis ition of capital as sets Monthly princ ipal and interes t ins tallments of $89,105 through Dec ember 1, 2021 Interes t rate: 1. 57% 6,603,209 $ Refundings In February 2015, the City issued $12,210,000 in a fi xed rate Parking Facilities Refunding Revenue Bond Series 2014 at an interest rate of 2.58%. The net proceeds of $12,210,000 (after payment of approximately $401,700 in issue costs) along with funds on hand were used to refund $11,725,000 of outstanding fixed rate Parking Facilities Revenue Bonds Series 2005A. There was no difference between the reacquisition price and the net carrying amount of the old debt as a result of the refunding. The City completed the refunding to reduce its total debt service paym ents over a period of 11 years by $2,746,601 and to obtain an economic gain (difference between the present values of t he old and new debt service payments) of $1,300,021.

Conduit Debt Resolution 2006-027, passed June 28, 2006, was iss ued in support of the issuance of not exceeding $4,500,000 in revenue bonds by JEDA for the Palmetto Health Foundation Project. While the City is not obligated for the repayment of conduit type debt, discl osure is required in the notes to the financial statements. As of June 30, 2015, the balance of this conduit debt was approximately $2,675,350.

Arbitrage In accordance with Section 148 of the Internal Revenue Code of 1986, as amended, and Sections 1.103-13 to 1.103-15 of the related Treasury Regulations, the City must rebat e to the federal government “arbitrage profits” earned on governmental bonds issued after August 31, 1986. Arbitr age profits are the excess of the amount earned on investments over the interest paid on t he borrowings, if any. For the year ended June 30, 2015, the City did not have any arbitrage profits due to the federal government.

IV. PENSION PLANS The South Carolina Public Employee Benefit Author ity (“PEBA”), which was created July 1, 2012, administers the various retirement systems and retire ment programs managed by its Retirement Division.

PEBA has an 11-member Board of Dire ctors, appointed by the Governor and General Assembly leadership, which serves as co-trustee and co-fiduciary of the sys tems and the trust funds. By law, the Budget and Control Board (restructured into the Department of Administration on July 1, 2015), which consists of five elected officials, also reviews certain PEBA Board decisions regarding the funding of the South Carolina Retirement Systems (“Systems”) and serves as a co-trustee of the Systems in conducting that review.

PEBA issues a Comprehensive Annual Financial Report (“CAFR”) containing financial statements and required supplementary information for the Systems' Pens ion Trust Funds. The CAFR is publicly available through the Retirement Benefits' link on PEBA's websit e at www.peba.sc.gov, or a copy may be obtained by submitting a request to PEBA, PO Box 11960, Columbia, SC 29211-1960. PEBA is considered a division of the primary government of the stat e of South Carolina, and therefore, retirement trust fund financial information is also included in the comprehen sive annual financial report of the state.

CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS June 30, 2015 80 IV. PENSION PLANS (Continued) Plan description The South Carolina Retirement Syst em (“SCRS”), a cost-sharing multiple-employer defined benefit pension plan, was established effective July 1, 1945, pursuant to the provisions of Section 9-1-20 of the South Carolina Code of Laws for the purpose of providing retirement allowances and other benefits for employees of the state, its public school districts, and political subdivisions.

The South Carolina Police Officers Retirement System (“PORS”), a cost-sharing multiple-employer defined benefit pension plan, was established e ffective July 1, 1962, pursuant to the provisions of Section 9-11-20 of the South Carolina Code of Laws for th e purpose of providing retirement allowances and other benefits for police officers and firemen of the st ate and its political subdivisions.

Membership Membership requirements are prescribed in Title 9 of the South Carolina Code of Laws. A brief summary of the requirements under each system is presented below.

• SCRS - Generally, all employees of covered employers are required to participate in and contribute to the system as a condition of employment. This plan covers general employees and teachers and individuals newly elected to the South Carolina General Assemb ly beginning with the November 2012 general election.

An employee member of the system with an effective date of membership prior to July 1, 2012, is a Class Two member. An employee member of the system with an effective date of membership on or after July 1, 2012, is a Class Three member.

• PORS - To be eligible for PORS membership, an employee must be required by the terms of his employment, by election or appointment, to preserve public order, protect life and property, and detect crimes in the state; to prevent a nd control property destruction by fi re; or to serve as a peace officer employed by the Department of Corrections, the Depart ment of Juvenile Justice, or the Department of Mental Health. Probate judges and coroners may elect membership in PORS. Magistrates are required to participate in PORS for service as a magistrate. PORS members, other than magistrates and probate judges, must also earn at least $2,000 per year and devote at least 1,600 hours per year to this work, unless exempted by statute. An employee member of the system with an effective date of membership prior to July 1, 2012, is a Class Two member. An employee member of the system with an effective date of membership on or after July 1, 2012, is a Class Three member. Benefits Benefit terms are prescribed in Title 9 of the South Carolina Code of Laws. PEBA does not have the authority to establish or amend benefit terms without a l egislative change in the code of laws. Key elements of the benefit calculation include the benefit multiplier, years of service, and aver age final compensation. A brief summary of the benefit terms for each system is presented below.

• SCRS - A Class Two member who has separated from se rvice with at least five or more years of earned service is eligible for a monthly pension at age 65 or with 28 years credited service regardless of age. A member may elect early retirement with reduced pensi on benefits payable at age 55 with 25 years of service credit. A Class Three member who has separated from service with at least eight or more years of earned service is eligible for a monthly pension upon satisfying the Rule of 90 requirement that the total of the member's age and the member's creditable service equal s at least 90 years. Both Class Two and Class Three members are eligible to receive a reduced deferred annuity at age 60 if they satisfy the five or eight year earned service requirement, respectively. An incide ntal death benefit is also available to beneficiaries of active and retired members of employers who participate in the death benefit program CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS June 30, 2015 81 IV. PENSION PLANS (Continued) The annual retirement allowance of eligible retirees or their surviving annuitants is increased by the lesser of 1% or $500 every July 1. Only t hose annuitants in receipt of a benefit on July 1 of the preceding year are eligible to receive the increase. Members who retire under the early retirement provisions at age 55 with 25 years of service are not eligible for the benefit adjustm ent until the second July 1 after reaching age 60 or the second July 1 after the date they would have had 28 years of service credit had they not retired.

• PORS - A Class Two member who has separated from service with at least five or more years of earned service is eligible for a monthly pension at age 55 or with 25 years of service regardless of age. A Class Three member who has separated from serv ice with at least eight or more years of earned service is eligible for a monthly pension at age 55 or with 27 years of service regardless of age. Both Class Two and Class Three members are eligible to receive a deferred annuity at age 55 with five or eight years of earned service, respectively. An incidental death benefit is also avai lable to beneficiaries of active and retired members of employers who participate in the d eath benefit program. Accidental death benefits are also provided upon the death of an active member working for a covere d employer whose death was a natural and proximate result of an injury incurred while in the performance of duty.

The retirement allowance of eligible retirees or their surviving annuitants is increased by the lesser of 1% or $500 every July 1. Only those annuitants in receipt of a benefit on July 1 of the preceding year are eligible to receive the increase.

Contributions Contributions are prescribed in Title 9 of the South Carolina Code of Laws. The PEBA Board may increase the SCRS and PORS employer and em ployee contribution rates on the basis of the actuarial valuations, but any such increase may not result in a differential bet ween the employee and employer contribution rate that exceeds 2.9% of earnable compensation for SCRS and 5% for PORS. An increase in the contribution rates adopted by the Board may not provide for an increase of more than one-half of one percent in any one year.

If the scheduled employee and employer contributions prov ided in statute or the rates last adopted by the board are insufficient to maintain a 30-year amortization schedule of the unfunded liabilities of the plans, the board shall increase the contribution rates in equal percentage amounts for the employer and employee as necessary to maintain the 30-year amortization period; this increase is not limited to one-half of one percent per year.

CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS June 30, 2015 82 IV. PENSION PLANS (Continued) Required employ ee c ont ribut ion rat es for fis c al y ear 2014-2015 are as follows :

SCRS Employ ee Clas s Two 8. 00% of earnable c ompens at ion Employ ee Clas s Three 8. 00% of earnable c ompens at ion PORS Employ ee Clas s Two 8. 41% of earnable c ompens at ion Employ ee Clas s Three 8. 41% of earnable c ompens at ion Required employ er c ontribution rates for fis cal y ear 2014-2015 are as follows:

SCRS Employ er Clas s Two 10. 75% of earnable c ompens at ion Employ er Clas s Three 10. 75% of earnable c ompens at ion Employ er Inc ident al Deat h Benefit 0. 15% of earnable c ompens at ion PORS Employ er Clas s Two 13. 01% of earnable c ompens at ion Employ er Clas s Three 13. 01% of earnable c ompens at ion Employ er Inc ident al Deat h Benefit 0. 20% of earnable c ompens at ion Employ er Ac c ident al Deat h Program 0. 20% of earnable c ompens at ion The City’s required and actual employer contributions are as follows:

Year Ended June 30, 2015 SCRS PORS Required contributions $5,815,863 $5,031,606 Actual contributions $5,815,863 $5,031,606 Actuarial Assumptions and Methods Actuarial valuations involve estimates of the r eported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and future salary increases. Amounts determined during the valuation process are subject to continual revision as actual results are compared with past expectations, and new estimates are made about the future. South Carolina state statute r equires that an actuarial experience st udy be completed at least once in each five-year period. The last experience study was performed on data through June 30, 2010, and the next experience study is scheduled to be conducted a fter the June 30, 2015, annual valuation is complete.

The most recent annual actuarial va luation reports adopted by the PEBA Board are as of July 1, 2013. The net pension liability of each defined benefit pension pl an was therefore determined by the consulting actuary, Gabriel, Roeder, Smith and Company (“GRS”), based on the July 1, 2013, actuarial valuations using membership data as of July 1, 2013, projected forward to the end of the fiscal year, and financial information of the pension trust funds as of June 30, 2014, using generally accepted actuarial procedures. Information included in the following schedules is bas ed on the certification provided by GRS.

CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS June 30, 2015 83 IV. PENSION PLANS (Continued) The following provides a summary of the actuaria l assumptions and methods used in the July 1, 2013, valuations for SCRS and PORS.

SCRS PORS Actuarial cost method Entry age Entry age Actuarial assumptions: Investment rate of return 7.5% 7.5% Projected salary increases Levels off at 3.5% Levels off at 4.0% Includes inflation at 2.75% 2.75% Benefit adjustments Lesser of 1% or $500 Lesser of 1% or $500 The post-retiree mortality assumption is dependent upon the member's job category and gender. This assumption includes base rates which are automatically adjusted for future improvement in mortality using published Scale AA projected from the year 2000. Former Job Class Males Females Educators and Judges RP-2000 Males (with White Collar adjustment) multiplied by 110% RP-2000 Females (with White Collar adjustment) multiplied by 95% General Employees and Members of the General Assembly RP-2000 Males multiplied by 100% RP-2000 Females multiplied by 90% Public Safety, Firefighters and members of the South Carolina National Guard RP-2000 Males (With Blue Collar adjustment) multiplied by 115% RP-2000 Females (with Blue Collar adjustment) multiplied by 115% Net Pension Liability The net pension liability (NPL) is calculated separatel y for each system and represents that particular system's total pension liability deter mined in accordance with GASB Stat ement No. 67 less that System's fiduciary net position. The City’s proportional share of the NPL amounts for SCRS and PORS are presented below: Measurement Period Fiscal Year Ended June 30, Ended June 30, SCRS PORS 2013 2014 $105,670,520 $63,572,138 2014 2015 $101,430,205 $58,710,015 The total pension liability is calculated by the System s' actuary, and each plan's fiduciary net position is reported in the Systems' financial statements. The Ci ty’s proportionate share of the net pension liability was calculated on the basis of historical employer c ontributions. Although GASB 68 encourages the use of the employer's projected long-term contribution effort to the retirement plan, allocating on the basis of historical employer contributions is considered acceptable. For the measurement period ended June 30, 2014, the City’s percentage of the SCRS and PORS net pension liability was 0.589139% and 3.06671%, respectively.

CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS June 30, 2015 84 IV. PENSION PLANS (Continued) Discount Rate The discount rate used to measure the total pension liability was 7.50%. The projection of cash flows used to determine the discount rate assume d that contributions from participating employers in SCRS and PORS will be made based on the actuarially determined rates based on provisions in the South Carolina State Code of Laws. Based on those assumptions, each System's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

Long-term Expected Rate of Return The long-term expected rate of return on pension plan investments for actuarial purposes is based upon the 30 year capital market outlook at the end of the third quarter 2012. The actuarial long-term expected rates of return represent best estimates of arithmetic real rates of return for each major asset class and were developed in coordination with the investment consult ant for the Retirement System Investment Commission (“RSIC”) using a building block approach, reflecting observable inflation and interest rate information available in the fixed income markets as well as C onsensus Economic forecasts. The actuarial long-term assumptions for other asset classes are based on historical results, current market characteristics, and professional judgment.

The RSIC has exclusive authority to invest and manage the retirement trust funds' assets. As co-fiduciary of the Systems, statutory provisions and governance policie s allow the RSIC to operate in a manner consistent with a long-term investment time horizon. The expec ted real rates of investment return, along with the expected inflation rate, form the basis for the target asset allocation adopted annually by the RSIC. For actuarial purposes, the long-term expected rate of return is calculated by weighting the expected future real rates of return by the target allocation percentage and then adding the actuarial expected inflation which is summarized in the table below. For actuarial purposes , the 7.50% assumed annual investment rate of return used in the calculation of the total pension liability incl udes a 4.75% real rate of return and a 2.75% inflation component.

CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS June 30, 2015 85 IV. PENSION PLANS (Continued) Long Term Expected Expected Portfolio Target Asset Arithmetic Real Real Rate of Asset Class Allocation Rate of Return Return Short Term 5.0% Cash 2.0% 0.3 0.01 Short Duration 3.0% 0.6 0.02 Domestic Fixed Income 13.0% Core Fixed Income 7.0% 1.1 0.08 High Yield 2.0% 3.5 0.07 Bank Loans 4.0% 2.8 0.11 Global Fixed Income 9.0% Global Fixed Income 3.0% 0.8 0.02 Emerging Markets Debt 6.0% 4.1 0.25 Global Public Equity 31.0%7.8 2.42 Global Tactical Asset Allocation 10.0% 5.1 0.51 Alternatives 32.0% Hedge Funds (Low Beta) 8.0% 4.0 0.32 Private Debt 7.0% 10.2 0.71 Private Equity 9.0% 10.2 0.92 Real Estate (Broad Market) 5.0% 5.9 0.29 Commodities 3.0% 5.1 0.15 Total Expected Real Return 100.0% 5.88 Inflation for Actuarial Purposes 2.75 Total Expected Nominal Return 8.63 Sensitivity Analysis The following table presents the collective net pension li ability of the City’s calculated using the discount rate of 7.50%, as well as what the City’s net pension liability would be if it were calculated using a discount rate that is 1.00% lower (6.50%) or 1.00% higher (8.50%) than the current rate.

Sensitivity of the City’s Proportional Share of Net Pension Liability To Chan ges in the Discount Rate System 1.00% Decrease Current Discount Rate 1.00% Increase SCRS $131,256,960 $101,430,204 $76,546,134 PORS $82,045,613 $58,710,014 $39,401,605 Plan Fiduciary Net Position Detailed information about the Plan’s fi duciary net position is available in PEBA’s separately issued financial report. CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS June 30, 2015 86 IV. PENSION PLANS (Continued) Pension Expense and Deferred Outflows (Inflows) of Resources For the year ended June 30, 2015, the City recognized pension expense of $12,245,505.

At June 30, 2015, the City reported deferred outflows (i nflows) of resources related to pensions from the following sources: Deferred Out flows Deferred Inflows of Res ources of Res ources Pens ion c ont ribut ions s ubs equent t o t he meas urement dat e 10, 847, 469 $ -$ Differenc es in ac t ual and ex pec t ed ex perienc e 4, 440, 813 - Net differenc es bet ween projet ed and ac t ual earnings on plan investments - 15,344,486 15,288,282 $ 15,344,486 $ The City reported $10,847,469 as deferr ed outflows of resources related to contributions subsequent to the measurement date which will be recognized as a reduction of the net pension liability in the year ending June 30, 2016. Other amounts r eported as deferred outflows (inflows) of resources will be reco gnized in pension expense in future years. The following schedule reflects the amortization of the City’s proportional share of the net balance of remaining deferre d outflows (inflows) of resources at June 30, 2015. Average remaining service lives of all employees provided with pensions through the pension plans at June 30, 2014, measurement date was 4. 233 years for SCRS and 4.856 years for PORS.

Measurement Period Fis cal Year Ending SCRS & Ending June 30, June 30,PORS 2015 2016(2, 540, 825) $ 2016 2017(2, 540, 825) $ 2017 2018(2, 540, 825) $ 2018 2019(3, 281, 198) $ Net Balance of Deferred Outflows / (Inflows) of Res ources (10,903,673) $ Payables to the Pension Plans At June 30, 2015, the City reported a payable of $788,630 and $621,665 for the outstanding amount of contributions due to SCRS and PORS, respectively. This liability will be paid in the normal course of paying year-end obligations.

CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS June 30, 2015 87 IV. PENSION PLANS (Continued) Component Units Significantly all of the employees of the City’s component units, with the exception of MACST, are members of the SCRS due to the City being a member. Due to t he City being the employer of record it reports the amount of the proportional net pension liability and the related deferred inflows and outflows related to the service of these employees in its financial statements.

V. INTEREST RATE SWAP AGREEMENTS Swap One – The City maintains this variable-to-fixed intere st rate swap to hedge exposure to rising interest rates. The City entered into an interest rate swap agreement related to the 2009 Waterworks and Sewer Bonds on September 20, 2007, with an effective date of September 15, 2009. T he counterparty is J.P.

Morgan. The City agreed to pay a fixed rate to J. P. Morgan and receive a variable rate while paying a variable rate to bond holders. Semi-annually the City pays a fixed rate of 4.354% to J.P. Morgan, and monthly receives a variable rate based on the average Se curities Industry and Financial Markets Association (“SIFMA”) index rate. Interest payments to the bond hol ders are offset by the amount received by the City from J. P. Morgan under the swap. The purpose of the swap was to effectively change the variable rate bonds to fixed rate bonds. The bonds and related swap agreement mature February 2038. The notional amount of the swap equals the principal amount of the associated bonds and decreases simultaneously with the reduction in the principal amount of the associated bonds. As of June 30, 2015, the notional amount was $81,860,000.

The obligation of the City to make regularly scheduled payments under the interest rate swap agreement is junior and subordinate to the City’s obligation to make debt service payments on its outstanding revenue bonds. The obligation of the City to make any te rmination payments under the swaps is junior and subordinate to the obligation to make debt service payments on bonds. Under the swap agreement, if the City modifies the bond ordinance, the counterparty has ce rtain limited rights to consent to modifications to the swap agreement which would affect the rights of t he counterparty. Under the swap, J.P. Morgan does not require collateral to be posted to reduce credit risk exposure.

During the year ended June 30, 2015, the City made va riable bond interest payments in the amount of $34,309 and fixed rate payments on the swap in the amount of $3,564,184. The City also received variable payments on the swap in the amount of $41,715. The net of variable payments on the bonds and receipts on the swap was $7,406.

Swap Two and Three – One of the City’s blended component units, the Columbia Parking Facilities Corporation (the “Corporation”), maintains two interest rate swaps to hedge exposure to rising interest rates. The Corporation entered into two variable-to-fixed in terest rate swap agreements related to a $13,070,000 tax exempt revenue bond payable and $5,185,000 tax able bond payable. The agreements were entered into February 23, 2007, and were effective on February 23, 2007, and March 1, 2008, respectively. The counterparty is Branch Bank and Trust Corporation. The purpose of the swaps was to effectively change the variable rate debt to fixed rate debt. The swap agr eements mature on March, 1, 2017, and the related debt matures in 2031 and 2017, respectively. The notional amounts of the swaps equal the principal amounts of the associated debt and decrease simultaneously with the reduction in the principal amounts of the associated bonds. As of June 30, 2015, t he notional amounts were $10,620,000 and $4,209,142.

The swaps provide for monthly payment by the Corporation of a 5.085% and 6.815% fixed rate on a notional amount having an amortization schedule equal to that of t he bonds. In return, the counterparty will pay the Corporation a variable rate equal to 95% of the on e-month London Interbank Offered Rate (LIBOR) and LIBOR plus 1.50% on each swaps’ respective not ional amount. At June 30, 2015, 95% of LIBOR was 0.177%, and LIBOR plus 1.50% was 1.677%. The Corporation also makes interest payments to the bondholders at 95% of LIBOR and LIBOR, respecti vely, (0.177% and 0.186% at June 30, 2015), on the outstanding principal amount. CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS June 30, 2015 88 V. INTEREST RATE SWAP AGREEMENTS (Continued) The obligation of the Corporation to make regularly scheduled payments under the swaps ranks on a parity basis with the Corporation's obligation to make de bt service payments on its outstanding bonds. Under certain circumstances, the swaps ar e subject to termination prior to their respective scheduled expiration dates and prior to the maturity of the bonds to wh ich each such swaps relates, in which event the Corporation may be obligated to make a substantial pay ment to the respective counterparty ("Termination Payments"). The obligation of the Corporation to make any termination payments under the swaps is junior and subordinate to the obligation to make debt service payments on notes. Under the swaps, the counterparties have certain limited rights to consen t to modifications to the master resolution, which modifications would affect the rights of the counterparti es under the swaps. To minimize credit or repayment risk, the swap agreements contain varying collateral agreements with the counterparties. The swaps require collateralization of the fair value of the swaps should the counterparty's credit rating fall below the applicable thresholds. During the fiscal year, the Corpor ation made variable interest payments of $88,648 and recovered offsetting variable payments on this swap in a like amount. The Corporation made fixed payments of $773,070 under the swaps. The market value of t he swaps was ($818,267) and ($356,352) at June 30, 2015, respectively.

In the event that either party to the swap, BB&T or Co lumbia Parking Facilities Corporation, cannot perform on the agreement, no judgment for any deficiency will be sought or obtained against the City of Columbia. The University of South Carolina is solely responsible for payment if t he Corporation cannot perform on the agreements. As such, the City has decided not to implement the provisions of GASB Statement No. 53 for this interest rate swap.

The fair value balances and notional amounts of deriv ative instruments outstanding at June 30, 2015, classified by type, and the changes in fair value of such derivatives for the year then ended are as follows:

Clas s if ic ation A mount Clas s if ic ation A mount Notional Gov ernmental ac tiv ities Cas h f low hedges :Pay -f ix ed interest rate s w ap Sw ap Tw o Def erred outf low (458,532) $ Debt 818,267 $ 10,620,000$ Pay -f ix ed interest rate s w ap Sw ap Three Def erred outf low (196,215) $ Debt 356,352 4,209,142$ 1,174,619 $ Business-type activity Cas h f low hedges :Pay -f ix ed interest rate sw ap Sw ap One Def erred outf low 6,814,347 $ Debt 26,884,816 $ 81,860,000$ Changes in Fair V alue Fair V alue at June 30 CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS June 30, 2015 89 V. INTEREST RATE SWAP AGREEMENTS (Continued) The following table displays the objectives and terms of the City’s hedging derivative instruments outstanding at June 30, 2015, along with the credit rating of the associated counterparty:

Notional Ef f ec tiv e Maturity Counterparty Ty pe Objec tiv e A mount Date Date Terms Credit Rating* Pay-fixed interest rate sw ap Hedge of c hanges in cash flow s on the Series 2009 Water and Sew er Rev enue Bonds 81,860,000 $ 9/15/2009 2/1/2038 Rec eiv e monthly av erage SIFMA rate and pay f ix ed rate of 4.354% A a3 / A + / A + Pay-fixed interest rate sw ap Hedge of c hanges in cash flow s on the Series 2007 JEDA Re v e n u e Bonds 10,620,000 $ 2/23/2007 3/1/2017 Rec eiv e 95% of one month LIBOR and pay f ix ed rate of 5.085% A 2 / A - / A + Pay-fixed interest rate sw ap Hedge of c hanges in cash flow s on the Inov is ta c ons truc tion note pay able 4,209,142 $ 3/1/2007 3/1/2017 Rec eiv e 95% of one month LIBOR plus 1.5% and pay f ix ed rate of 6.815% A 2 / A - / A + * Moody 's , S&P, and Fitc h, res pec tiv ely . Future Debt Service Requirements The following schedules detail the debt service requirements to maturity for the underlying debt instruments related to the interest rate swaps. The interest rates in effect at June 30, 2015, have been used for all future periods. These amounts assume the current interest ra tes on variable-rate bonds will remain the same for their terms. As these rates vary, interest payment s on variable-rate bonds and net receipts/payments on the hedging derivative instruments will vary.

Year Ended Hedging June 30, Principal Interes t Derivatives , Net Total 2016 - $ -$ 3 ,56 5,9 95 $ 3,5 65 ,9 9 5 $ 2017 - - 3 ,56 5,9 95 3,5 65 ,9 9 5 2018 - - 3 ,56 5,9 95 3,5 65 ,9 9 5 2019 - - 3 ,56 5,9 95 3,5 65 ,9 9 5 2020 - - 3 ,56 5,9 95 3,5 65 ,9 9 5 2021-2025 2,245,000 - 17 ,7 6 0,2 78 2 0,0 05 ,2 7 8 2026-2030 4,755,000 - 17 ,1 8 4,6 04 2 1,9 39 ,6 0 4 2031-2035 43,705,000 - 14 ,2 0 5,6 08 5 7,9 10 ,6 0 8 2036-2038 31,155,000 - 4 ,52 5,4 51 3 5,6 80 ,4 5 1 81,860,000 $ - $ 71 ,5 0 5,9 16 $ 1 5 3,3 65 ,9 1 6 $ Variable Rate Bonds W ate r w ork s a nd Sew er Bonds Series 2009 (Swap One) CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS June 30, 2015 90 V. INTEREST RATE SWAP AGREEMENTS (Continued) Year Ended Hedging June 30, Principal Interes t Derivatives , Net Total 2016 440,000 $ 15,417 $ 8 9,3 65 $ 5 44 ,7 8 2 $ 2017 480,000 1 4,8 31 8 5,6 98 5 80 ,5 2 9 2018 500,000 1 4,2 16 8 1,8 78 5 96 ,0 9 4 2019 540,000 1 3,5 46 7 7,7 52 6 31 ,2 9 8 2020 540,000 1 2,8 48 7 3,6 27 6 26 ,4 7 5 2021-2025 3,200,000 5 2,5 64 2 9 8,1 51 3,5 50 ,7 1 5 2026-2030 4,200,000 2 8,7 12 1 5 2,2 28 4,3 80 ,9 4 0 2031 720,000 3,2 96 4,5 21 7 27 ,8 1 7 10,620,000 $ 155,430 $ 863,220 $ 1 1,6 38 ,6 5 0 $ Year Ended Hedging June 30, Principal Interes t Derivatives , Net Total 2016 140,000 $ 6,364 $ 6,7 86 $ 1 53 ,1 5 0 $ 2017 4,069,142 5,9 82 6,7 90 4,0 81 ,9 1 4 4,209,142 $ 12,346 $ 1 3,5 76 $ 4,2 35 ,0 6 4 $ Variable Rate Bonds Variable Rate Bonds Parking Facilities Corporation Parking Facilities Corporation Innovis ta Note Payable (Swap Three) South Carolina JEDA Bond 2007 (Swap Two) Risks Credit Risk – Credit risk is the risk that th e counterparty will not fulfill its obligations. As of June 30, 2015, the three swaps were in liability positions; therefore, the Ci ty is not exposed to credit risks. However, should interest rates change and the fair market value of the swaps becomes an asset position, the City would be exposed to credit risks. Credit ra tings of the counterparties are summarized in the table above.

Interest Rate Risk – Interest rate risk is the risk that changes in interest rates will adversely affect the fair values of the City’s financial instrum ents or its cash flows. The City is exposed to interest rate risk on its pay-fixed, receive-variable interest ra te swaps. As LIBOR or the SIMFA swap index decreases, the City’s liability upon early termination of the swaps increases.

Basis Risk – Basis risk is the risk that arises when variabl e rates or prices of a hedging derivative instrument and a hedge item are based on different reference rates. The City is exposed to basis risk on the interest rate swap hedging instrument related to the Wate rworks and Sewer bonds because the variable-rate payments received by the City on these hedging derivative instruments are based on a rate or index other than interest rates the City pays on its hedge variable-rate debt. As of June 30, 2015, the interest rate on the City’s hedged variable rate debt was 0.04%, while the SIFMA swap index rate was 0.05%.

Termination Risk – Termination risk is the risk that a hedging derivative instrument’s unscheduled end will affect the City’s asset and liability strategy or will pr esent the City with potentially significant unscheduled termination payments to the counterparty. Termination events exist for the interest rate swaps. Under the City’s interest rate swap (Swap One) , a decline in either party’s credit rating below BBB or Baa2 in the case of S&P and Moody’s, respectively, can trigger termination in addition to events that are customary for these types of transactions. The Corporation’s interest ra te swaps (Swaps Two and Three) may be terminated if the counterparty ceases to be a party to the credit support documents and the Corporation fails to replace the counterparty with a credit support provider acceptable to the counterparty.

CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS June 30, 2015 91 V. INTEREST RATE SWAP AGREEMENTS (Continued) Rollover Risk – Rollover risk is the risk that a hedging instrument associated with hedgeable item does not extend to the maturity of that hedgeable item. The Co rporation is exposed to rollover risk because the hedging derivative instrument (Swap Two) associated wi th the hedgeable debt items do not extend to the maturity of the hedgeable debt items.

The City is not required to post collateral under any of the interest rate swap agreements.

VI. COMMITMENTS AND CONTINGENCIES A. FEDERAL GRANTS In the normal course of operations, the City receives grant funds from various federal agencies. The grant programs are subject to audit by agents of the grant ing authority, the purpose of which is to insure compliance with conditions precedent to the granting of funds. Any liability for reimbursement that may arise as the result of audits of grant funds is no t believed by City officials to be material.

B . CONSENT DECREE During the year ended June 30, 2014, the Environment al Protection Agency filed with the federal court system a consent decree against the City. The terms of this Consent Decree require the City to (i) evaluate the Sanitary Sewer System and, base d on that evaluation, implement capital improvements to the Sanitary Sewer System’s infrastructure; and (ii) implement a $1,000,000 Supplemental Environmental Project (“SEP”) aimed at restoring and reducing flooding along segments of Rocky Branch and Gills Creek. The City anticipates total expenditures of approximately $750,000, 000 will be required over a period of approximately 11 years in order to meet the requirements of t he Consent Decree. The City’s five-year Capital Improvements Program, which the City believes is presently responsive to a portion of the capital improvements that are or will be requi red by the Consent Decree, is being further revised to enable the City to meet all of its obligations under the Consent Decree wi thin the prescribed timeframes. In addition, the City paid a civil penalty in the amount of $476,400 to resolv e the alleged Clean Water Act violations. The City expects to pay for the cost of these improvements through revenues generated by the system and future and current bond proceeds. City management feels the City is meeting the requirements and deadlines imposed by the Consent Decree.

C. LITIGATION The City is a party to legal proceedings that normally occur in government operations. The City is involved in unresolved legal actions concerning construction contracts and other matters. The City believes its positions are meritorious and is vigorously defending its positions. The City’s estimate of ultimate loss has been recorded as a liability in the Risk M anagement Fund and other funds in t he financial statements (Note II. C).

D. DEVELOPMENT AGREEMENT On July 9, 2013, the City executed a developmen t agreement with a private developer to develop approximately 165 acres of land within the City of Columbia. Any City commitment is expected to occur during the first five years of the 20-year agreement. The agreement requires a minimum level of investment by the developer. Prior to the City being required to incur any of the preceding costs, the developer is required to have obtained funding and commitments to co nstruct taxable improvements of various amounts ranging from $25,000,000 to $81,250,000. If these minimum amounts of taxable improvements are not obtained, the City is under no obligation to incur any costs.

CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS June 30, 2015 92 VI. COMMITMENTS AND CONTINGENCIES (Continued) D. DEVELOPMENT AGREEMENT (Continued) If the developer attains the minimum amount of investment, the City is obligated to provide infrastructure and other items at no cost to the developer. The costs are to be incurred in four phases. The City estimates the public infrastructure costs during phase one will appr oximate $5,250,000. The City’s parking facility commitment is estimated to cost approximately $16,000,000. Public infrastructure costs during phase two are estimated to cost approximately $7,965,800. During phase three, public infrastructure costs are estimated to cost approximately $2,179, 400. During phase four, public infrastructure costs are estimated to be approximately $15,840,800. The City has not identif ied a definite funding source for these potential commitments. While the costs indicated in the agreement represent the City’s best estimate at the time of signing the agreement, actual costs will probably be different.

VII. OTHER INFORMATION A. SUBSEQUENT EVENTS In early October 2015, almost twenty-four inches of rain fell in the Columbia area in less than forty-eight hours. This rainfall caused historic flooding and unprecedented damages to the City. The flooding caused multiple dam failures, a massive breach in the Columbia Canal (a main water source for the City), multiple sewer and water line ruptures or breaks, and over 100 City streets had to be closed. City management estimates the initial cost to repair the damages to City property will exc eed $75,528,900 and long-term mitigation costs will exceed $50,000,000. The City estimates between 75% and 90% of the estimated repair costs will be reimbursed, either by the federal govern ment or the State of South Carolina. While City management believes these estimates to be accurate, actual results could differ from these estimates and the difference could be significant. B. PENDING IMPLEMENTATION OF GASB STATEMENTS GASB Statement No. 72, “ Fair Value Measurement and Application ,” provides guidance for determining a fair value measurement for financial reporting purposes . This Statement also provides guidance for applying fair value to certain investments and disclosures related to all fair value measurements. The requirements of this Statement are effective for financial statements fo r reporting periods beginning after June 15, 2015. The City will implement the new guidance with the 2016 financial statements. GASB Statement No. 73, “ Accounting and Financial Reporting for Pensions and Related Assets That are Not within the Scope of GASB Statement 68 and Amendments to Certain Provis ion of GASB Statement 67 and 68.” The requirements of this Statement will improve financial reporting by establishing a single framework for the presentation of informatio n about pensions which will enhance the comparability of pension-related information reported by employers a nd nonemployer contributing entities. The provisions in Statement 73 are effective for fiscal years beginning after June 15, 2015—except those provisions that address employers and governmental nonemployer contributi ng entities for pensions that are not within the scope of Statement 68, which are effective for fiscal years beginning after June 15, 2016. The City will implement the new guidance with the 2016 financial statements.

GASB Statement No. 74, “ Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans .” The objective of this Statement is to improve the usefulness of information about postemployment benefits other than pensi ons (other postemployment benefits or OPEB) included in the general purpose external financial reports of stat e and local governmental OPEB plans for making decisions and assessing accountability. The provisions in Statement 74 are effe ctive for fiscal years beginning after June 15, 2016.

The City will implement the new guidance with the 2017 financial st atements.

CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS June 30, 2015 93 VII. OTHER INFORMATION (Continued) B. PENDING IMPLEMENTATION OF GASB STATEMENTS (Continued) GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions ,” establishes new accounting and financial reporting requirements for governments whose employees are provided with OPEB as well as for certain nonemployer govern ments that have a legal obligation to provide financial support for OPEB provided to the employees of other entities. The provisions in Statement 75 are effective for fisc al years beginning after June 15, 2017. The City will implement the new guidance with the 2018 financial statements.

GASB Statement No. 76, “ The Hierarchy of Generally Accepted A ccounting Principles for State and Local Governments .” The requirements in this Statement improve fi nancial reporting by 1) raising the category of GASB Implementation Guides in the G AAP hierarchy, thus providing the opportunity for broader public input on implementation guidance; 2) emphasizing the importanc e of analogies to authoritative literature when the accounting treatment for an event is not specified in authoritative GAAP; and 3) requiring the consideration of consistency with the GASB Concepts Statements when evaluating accounting treatments specified in nonauthoritative literature. The prov isions in Statement 76 are effective for reporting periods beginning after June 15, 2015. The City will implement the new guidance with the 2016 financial statements.

GASB Statement No. 77, “ Tax Abatement Disclosures ,” requires disclosure of tax abatement information about 1) a reporting government’s own tax abatement agree ments and 2) those that are entered into by other governments and that reduce t he reporting government’s tax revenues. The requirements of this Statement are effective for reporting periods beginning after December 15, 2015. The City will implement the new guidance with the 2017 financial statements.

Management has not yet determined the impact implement ation of these standards will have on the City’s financial statements, if any.

C. CHANGE IN ACCOUNTING PRINCIPLE The City implemented Governmental Accoun ting Standards Board (GASB) Statement 68, Accounting and Financial Reporting for Pensions, and GASB Statement 71, Pension Transition for Contributions Made Subsequent to the Measurement Date , in the fiscal year ended June 30, 2015. These statements establish standards for measuring and recognizing liabilities, de ferred outflows of resources, and deferred inflows of resources and expenses/expenditures. For defined benefit pensions, this Statement identifies the methods and assumptions that should be used to project benefit payments, discount projected benefit payments to their actuarial present value, and attribute that pr esent value to periods of employee service. The implementation of this new accounting principal wa s retroactive and required a net pension liability of $169,242,658, deferred outflows of $4,440,814 and deferred inflows of $15,344,485 to be recorded on the Statement of Net Position as of June 30, 2014, and a net adjustment of Net Position of $162,982,771. The net position of the governm ent-wide activities, the Water and Sewe r Facilities, the Parking Facilities, Stormwater Facilities, the Redevelopment Programs, and the Parks and Recreation Camp enterprise funds, and the Fleet Management, Support Services, and Risk Management internal service funds have been restated in the following amounts:

CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO FINANCIAL STATEMENTS June 30, 2015 94 VII. OTHER INFORMATION (Continued) C. CHANGE IN ACCOUNTING PRINCIPLE GASB Statement 68 Restatement Governmental activities - 118,595,260 $ Ent erpris e funds - Water and Sewer Facilities 34,626,493 $ Park ing Fac ilit ies 2, 604, 928 St ormwat er Fac ilit ies 2, 652, 579 Redevelopment Programs 199, 025 Park s and Rec reat ion Camp 158, 837 Tot al Ent erpris e funds 40, 241, 862 $ Internal S ervic e funds - Fleet Management 2,652,580 $ Support Servic es 1, 270, 697 Ris k Management 222, 372 Total Internal Service funds 4,145,649 $ REQUIRED SUPPLEMENTARY INFORMATION REQUIRED SUPPLEMENTARY INFORMATION The Schedules of Funding Progress and Employer Contributions – Other Postemployment Benefits provide information relating to the City’s adoption of GASB Statement No. 45.

Budgetary Comparison Schedule – General Fund provides information regarding the original budget, final budget, and actual results as compared to the final budg et for the General Fund. The General Fund is the principal operating fund of the City that accounts for all financial resource s not accounted for in other funds.

Notes to Budgetary Comparison Schedule provides information related to the budgetary basis of accounting used by the City as well as budget amendments made to the appropriated budget.

The Schedules of the City’s Contributions provide information relating to the City’s adoption of GASB Statement No. 68.

The Schedules of the City’s Proportionate Share of the Net Pension Liability provide information relating to the City’s adoption of GASB Statement No. 68.

  ActuarialUnfunded UAAL as a Actuarial Actuarial Accrued AAL Funded Covered Percentage Valuation Value of Liability (UAAL) Ratio Payroll of Covered Date Assets (a) (AAL) (b) (b-a) (a/b) (c) Payroll [(b-a)/c] Primary Government 7/1/2014 -$ 138,748,707 $ 138,748,707 $ 0%93,451,271 $ 148.47% 7/1/2013 - 131,827,750 131,827,750 0%91,937,081 143.39% 7/1/2012 - 108,363,404 108,363,404 0%90,099,630 120.27% Annual AnnualNetPercent of OPEB OPEB Cost OPEBOPEB Cost Cost Contributed LiabilityContributed 10,734,306 $ 7,248,904 $ 52,098,105 $ 67.53% 9,546,348 6,737,364 48,612,704 70.58% 8,146,966 4,993,487 45,803,720 61.29% SCHEDULE OF FUNDING PROGRESS Primary Government 2015 2014 2013 SCHEDULE OF EMPLOYER CONTRIBUTIONS Fiscal Yea r Ended June 30 CITY OF COLUMBIA, SOUTH CAROLIN A SCHEDULES OF FUNDING PROGRESS AND EMPLOYER CONTRIBUTIONS - OTHER POSTEMPLOYMENT BENEFIT S FOR THE FISCAL YEAR ENDED JUNE 30, 201 5 (UNAUDITED) 95 OriginalFinal Budget Budget ActualVariance REVENUES:

General property taxe s 51,406,365 $ 51,406,365 $ 50,563,321$ (843,044)$ Admission taxes - - 90,899 90,899 License and permits 30,732,426 30,732,426 37,837,446 7,105,020 Intergovernmental revenue 12,690,828 12,690,828 15,682,389 2,991,561 Charges for services 14,498,924 14,498,924 12,680,046 (1,818,878) Fines and forfeitures 1,310,000 1,310,000 1,033,384 (276,616) Revenues from use of money and property 50,000 50,000 147,133 97,133 Other revenues 121,404 121,404 152,823 31,419 Total revenues 110,809,947 110,809,947 118,187,441 7,377,494 EXPENDITURES: General governmen t 7,486,258 7,549,128 6,889,085 660,043 Judicial 2,648,014 2,722,131 2,590,810 131,321 Finance department 1,912,136 1,912,136 1,779,283 132,853 Development services and planning 3,428,316 3,788,788 3,485,413 303,375 Public safety 57,859,235 62,776,396 57,706,979 5,069,417 Parks and recreation 10,978,400 11,253,361 10,934,710 318,651 Public works 18,131,836 20,494,569 17,880,627 2,613,942 General services 6,236,732 6,423,825 5,230,670 1,193,155 Community promotion 270,670 270,670 175,670 95,000 Community development 346,938 370,489 369,601 888 Nondepartmental 2,869,290 2,585,290 8,105,855 (5,520,565) Total expenditures 112,167,825 120,146,783 115,148,703 4,998,080 Excess (deficiency) of revenues ove r (under) expenditures (1,357,878) (9,336,836) 3,038,738 12,375,574 OTHER FINANCING SOURCES (USES ) Transfers in 16,434,143 17,895,987 14,341,918 (3,554,069) Transfers (out) (15,296,265) (8,779,151) (17,367,879) (8,588,728) Sale of capital assets 220,000 220,000 386,636 166,636 Issuance of capital lease - - 7,000,000 7,000,000 Total other financing sources (uses) 1,357,878 9,336,836 4,360,675 (4,976,161) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other uses - - 7,399,413 7,399,413 Fund balance - beginning 28,994,327 28,994,327 28,994,327 - Fund balance - ending 28,994,327 $ 28,994,327 $ 36,393,740$ 7,399,413$ CITY OF COLUMBIA, SOUTH CAROLINA BUDGETARY COMPARISON SCHEDULE GENERAL FUND (UNAUDITED) For the Year Ended June 30, 2015 See accompanying Notes to Budgetary Comparison Schedule. 96 CITY OF COLUMBIA, SOUTH CAROLINA NOTES TO BUDGETARY COMPARISON SCHEDULE (UNAUDITED) YEAR ENDED JUNE 30, 2015 97 Budget and Budgetary Accounting A legal operating budget is prepared annually for the General Fund on the GAAP basis (modified accrual basis of accounting). Informal budgetary controls are main tained for other fund types, and therefore, budgetary comparisons to actual amounts are not presented.

The approved budget and amendments are legally enact ed through passage of an ordinance authorizing the City Manager to administer the budget and to transfer necessary appropriations among funds. Additional budget appropriations must be approved by Council, and at the fund level, expenditures may not legally exceed budgeted appropriations.

All budget amounts presented in the accompanying financial statements and supplementary information have been adjusted for legally authorized revisions of the annual budget during and after the year. Appropriations, except remaining project appropriations, encumbrances , and unexpended grant appropriations lapse at year end.

The final budget amendments presented are necessary ba sed on the operating activities of the City. The budget was amended to reflect the increase of budgeted amount of transfers in, the decrease in the amount of transfers out and the in the increase in the amou nt of capital expenditures. These amendments have been approved by City Council authorizations. Original Final Budget Revis ed Adopted Budget Amendments Budget General Fund 127,464,090 $ 1,461,844 $ 128,925,934 $ Sche dule of Cha n ge s in Appropria te d Bud get For Ye a r Ende d June 30, 2015 June 30, 2015 June 30, 2014 Contractually required contribution 5,815,863 $ 5,669,535$ Contributions made to pension plan 5,815,863 5,669,535 Contribution deficiency (excess) - $ - $ City's covered payroll during the measurement period 53,480,622 $ 52,411,010$ Contributions as a percentage of covered employee payroll 10.87% 10.82% June 30, 2015 June 30, 2014 Contractually required contribution 5,031,606 $ 4,736,002$ Contributions made to pension plan 5,031,606 4,736,002 Contribution deficiency (excess) - $ - $ City's covered payroll during the measurement period 37,437,424 $ 36,688,676$ Contributions as a percentage of covered employee payroll 13.44% 12.91% The City implemented GASB 68 during fiscal year 2015, as such only the l\ ast two years of data are available. SCRS PORS CITY OF COLUMBIA, SOUTH CAROLIN A SCHEDULES OF THE CITY'S CONTRIBUTION S FOR THE FISCAL YEAR ENDED JUNE 30, 201 5 (UNAUDITED) 98 June 30, 2015 June 30, 2014 The City's percentage of the net pension liability 0.589139% 0.589139% The City's proportionate share of the net pension liability 101,430,204 $ 105,670,520$ The City's covered employee payroll 53,356,551 $ 53,480,622$ The City's proportionate share of the net pension liability as a percent\ age of its covered payroll 190.10% 197.59% The Plan's fiduciary net position as a percentage of the total pension l\ iability 59.90% 59.90% June 30, 2015 June 30, 2014 The City's percentage of the net pension liability 3.06671% 3.06671% The City's proportionate share of the net pension liability 58,710,014 $ 63,572,138$ The City's covered employee payroll 38,089,381 $ 37,437,424$ The City's proportionate share of the net pension liability as a percent\ age of its covered payroll 154.14% 169.81% The Plan's fiduciary net position as a percentage of the total pension l\ iability 67.50% 67.50% The City implemented GASB 68 during fiscal year 2015, as such only the l\ ast two years of data are available. CITY OF COLUMBIA, SOUTH CAROLIN A SCHEDULES OF THE CITY'S PROPORTIONATE SHARE OF THE NET PENSION LIABILIT Y FOR THE FISCAL YEAR ENDED JUNE 30, 201 5 (UNAUDITED) SCRS PORS 99 SUPPLEMENTARY INFORMATION COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES OriginalFinal Budget Budget ActualVariance REVENUES General property taxe s General property taxes - curren t 49,601,215 $ 49,601,215 $ 45,828,640$ (3,772,575)$ Real estate tax - Lexington County - curren t - - 2,071,184 2,071,184 Real estate tax - Lexington County - prio r - - 10,226 10,226 Personal tax - Lexington County - curren t - - 185,568 185,568 Homestead exemption 1,050,000 1,050,000 1,070,667 20,667 Payment in lieu of taxes - - 635,365 635,365 Merchants inventory ta x 755,150 755,150 761,671 6,521 Total general property taxe s 51,406,365 51,406,365 50,563,321 (843,044) Admission taxes - - 90,899 90,899 License and permits Business license 9,700,000 9,700,000 10,738,215 1,038,215 Business license - Telecommunications 850,000 850,000 794,364 (55,636) Business license - Insurance 10,700,000 10,700,000 11,153,218 453,218 Delinquent business license 189,416 189,416 93,063 (96,353) Business license franchise fees 8,065,000 8,065,000 13,225,397 5,160,397 Franchise fees - vendors 1,200 1,200 - (1,200) Arts and craft permits 2,300 2,300 2,090 (210) New business list sales - - 309 309 Business license ordinance sales - - 1,050 1,050 Business license contractor's decals 22,500 22,500 25,953 3,453 Group event license/permit 5,700 5,700 7,038 1,338 Building permits 610,350 610,350 1,555,614 945,264 Electrical permits 139,040 139,040 49,757 (89,283) Plumbing permits 51,700 51,700 11,432 (40,268) Gas permits 9,900 9,900 5,704 (4,196) Sign permits 20,900 20,900 17,814 (3,086) Heat permits 143,220 143,220 45,406 (97,814) Zoning permits 52,800 52,800 54,116 1,316 Dog license 36,000 36,000 43,239 7,239 Chauffeur license - - 3,645 3,645 Other miscellaneous - business 130,000 130,000 8,593 (121,407) Other miscellaneous - non-business 2,400 2,400 1,429 (971) Total license and permits 30,732,426 30,732,426 37,837,446 7,105,020 Intergovernmental revenues State shared 2,809,494 2,809,494 3,120,862 311,368 School resource officer services 190,000 190,000 190,565 565 SC Motor fuel tax reimbursement - - 3,348 3,348 USC parking garage revenue s - - 1,874,592 1,874,592 Highway signal maintenance 291,334 291,334 294,858 3,524 Fire rebate - Richland Count y 9,400,000 9,400,000 10,198,164 798,164 Total intergovernmental revenues 12,690,828 12,690,828 15,682,389 2,991,561 CITY OF COLUMBIA, SOUTH CAROLINA SCHEDULE OF REVENUES & OTHER FINANCING SOURCES BUDGET AND ACTUAL For the Year Ended June 30, 2015 GENERAL FUND (Continued) 100 OriginalFinal Budget Budget ActualVariance Charges for services Trade publication renewal s 7,700 $ 7,700 $ 8,560$ 860$ Support services 2,270,000 2,270,000 - (2,270,000) Return check service charges - - 1,211 1,211 Regulation code books - - 125 125 Duplicated business licenses - - 220 220 Compost sales 5,000 5,000 7,292 2,292 Recycling sales 105,000 105,000 114,422 9,422 Solid waste disposal fees 15,000 15,000 13,305 (1,695) Storm water inspection fees - - 2,964 2,964 Commercial bulk container disposal - - 1,679 1,679 Commercial roll cart disposal 44,000 44,000 44,001 1 Eleemosynary roll cart collection 29,000 29,000 65,476 36,476 Eleemosynary roll cart disposal 7,000 7,000 7,446 446 Eleemosynary homeowner collection 7,000 7,000 6,485 (515) Eleemosynary homeowner disposal 1,700 1,700 1,607 (93) Six night service disposal 19,000 19,000 21,239 2,239 Tree and forestry lot clearance fees 50,000 50,000 14,380 (35,620) Animal shelter fees - Richland County 280,000 280,000 284,697 4,697 Animal shelter fees 132,000 132,000 142,897 10,897 Employee animal clinic fees 1,000 1,000 38 (962) Hydrant fees 10,700,000 10,700,000 10,999,479 299,479 Police accident report copies 33,000 33,000 32,417 (583) Reimbursement police services 100,000 100,000 107,081 7,081 False fire alarm charges 20,000 20,000 28,413 8,413 Maxcy Gregg admission fees 25,000 25,000 39,290 14,290 Drew Park admission fees 310,000 310,000 346,474 36,474 Recreation athletics 50,000 50,000 65,788 15,788 Tennis court fees 57,500 57,500 66,816 9,316 Other parks/recreation fees 77,724 77,724 161,285 83,561 Finlay Park ground reservation 15,000 15,000 16,637 1,637 Columbia Action Council event fees 137,300 137,300 78,322 (58,978) Total charges for services 14,498,924 14,498,924 12,680,046 (1,818,878) Fines and forfeitures Criminal court fines 1,300,000 1,300,000 1,020,052 (279,948) Bond forfeiture from county courts - - 12,033 12,033 Late fees 10,000 10,000 1,299 (8,701) Total fines and forfeitures 1,310,000 1,310,000 1,033,384 (276,616) CITY OF COLUMBIA, SOUTH CAROLINA SCHEDULE OF REVENUES & OTHER FINANCING SOURCES BUDGET AND ACTUALGENERAL FUND For the Year Ended June 30, 2015 (Continued) (Continued) 101 OriginalFinal Budget Budget ActualVariance Revenues from use of money and propert y Interest on investments general 50,000 $ 50,000 $ 110,012$ 60,012$ Interest gain (loss) cost/market - - 37,121 37,121 Total revenues from use of mone y and property 50,000 50,000 147,133 97,133 Other revenues Miscellaneous revenue 57,000 57,000 58,757 1,757 Rents and royalties 64,404 64,404 94,066 29,662 Total other revenues 121,404 121,404 152,823 31,419 TOTAL REVENUE S 110,809,947 110,809,947 118,187,441 7,377,494 OTHER FINANCING SOURCES Sale of capital assets 220,000 220,000 386,636 166,636 Issuance of capital lease - - 7,000,000 7,000,000 Transfers from Water and sewer operating fund 4,000,000 4,000,000 6,270,000 2,270,000 Hospitality fund 2,569,143 2,569,143 2,569,143 - Accommodations fund 25,000 25,000 25,000 - Other funds 7,500,000 7,500,000 5,477,775 (2,022,225) Unappropriated surplus transfe r 2,340,000 3,801,844 - (3,801,844) Total transfers 16,434,143 17,895,987 14,341,918 (3,554,069) Total other financing sources 16,654,143 18,115,987 21,728,554 3,612,567 Total revenues and other financing sources 127,464,090 $ 128,925,934 $ 139,915,995$ 10,990,061$ CITY OF COLUMBIA, SOUTH CAROLINA SCHEDULE OF REVENUES & OTHER FINANCING SOURCES BUDGET AND ACTUALGENERAL FUND(Continued) For the Year Ended June 30, 2015 102 OriginalFinal Budget Budget ActualVariance EXPENDITURES General Government Legislative Personnel services 472,127 $ 472,127 $ 486,146 $ (14,019) $ Supplies 29,500 29,500 25,774 3,726 Other services and charges 216,800 242,972 184,582 58,390 Total legislative 718,427 744,599 696,502 48,097 Executive/Administration Personnel services 412,291 412,291 389,754 22,537 Supplies 27,230 32,225 28,098 4,127 Other services and charges 62,562 77,567 17,443 60,124 Total executive/administration 502,083 522,083 435,295 86,788 Governmental Affairs Personnel services 272,437 272,437 274,714 (2,277) Supplies 16,215 16,215 11,629 4,586 Other services and charges 164,114 164,114 159,727 4,387 Total governmental affairs 452,766 452,766 446,070 6,696 Chief Financial Officer Personnel services 156,233 156,233 157,290 (1,057) Supplies 3,135 10,135 7,237 2,898 Other services and charges 22,776 15,776 15,300 476 Capital outla y - 23,256 23,256 - Total administrative operations 182,144 205,400 203,083 2,317 Senior Assistant City Manager Personnel services 255,053 255,053 257,010 (1,957) Supplies 6,655 6,655 1,393 5,262 Other services and charges 55,409 50,799 35,616 15,183 Total senior assistant city manager 317,117 312,507 294,019 18,488 Assistant City Manager for Operations Personnel services 272,050 272,050 295,920 (23,870) Supplies 18,700 14,900 12,296 2,604 Other services and charges 77,694 87,495 78,594 8,901 Total assistant city manager for operations 368,444 374,445 386,810 (12,365) Citizen's Support Services Personnel services 380,672 380,672 380,461 211 Supplies 17,500 17,500 17,884 (384) Other services and charges 23,075 23,075 21,721 1,354 Total citizen's support services 421,247 421,247 420,066 1,181 CITY OF COLUMBIA, SOUTH CAROLINA SCHEDULE OF EXPENDITURES AND OTHER FINANCING USES BUDGET AND ACTUALGENERAL FUND For the Year Ended June 30, 2015 (Continued) 103 OriginalFinal Budget Budget ActualVariance Office of Business Opportunities Personnel services 367,013 $ 367,013 $ 350,749 $ 16,264 $ Supplies 27,025 31,211 30,163 1,048 Other services and charges 164,515 160,329 167,703 (7,374) Total office of business opportunities 558,553 558,553 548,615 9,938 Human Resources and Training Personnel services 876,454 876,454 812,202 64,252 Supplies 55,787 51,787 46,825 4,962 Other services and charges 48,205 52,205 43,466 8,739 Total human resources and training 980,446 980,446 902,493 77,953 Budget and Program Personnel services 268,536 268,536 254,671 13,865 Supplies 3,750 6,450 4,115 2,335 Other services and charges 79,650 68,950 49,089 19,861 Total budget and program 351,936 343,936 307,875 36,061 Legal Personnel services 1,040,146 1,216,146 889,308 326,838 Supplies 60,507 83,707 55,942 27,765 Other services and charges 959,307 760,122 742,011 18,111 Total legal 2,059,960 2,059,975 1,687,261 372,714 Public Information Personnel services 410,043 410,043 404,689 5,354 Supplies 54,203 54,530 45,461 9,069 Other services and charges 108,889 108,598 110,846 (2,248) Total public information 573,135 573,171 560,996 12,175 Total General Government 7,486,258 7,549,128 6,889,085 660,043 Judicial Municipal Court Personnel services 2,309,819 2,310,769 2,231,330 79,439 Supplies 88,695 95,395 97,240 (1,845) Other services and charges 249,500 241,865 211,388 30,477 Capital outla y - 74,102 50,852 23,250 Total municipal court 2,648,014 2,722,131 2,590,810 131,321 Total Judicial 2,648,014 2,722,131 2,590,810 131,321 CITY OF COLUMBIA, SOUTH CAROLINA SCHEDULE OF EXPENDITURES AND OTHER FINANCING USES BUDGET AND ACTUALGENERAL FUND For the Year Ended June 30, 2015 (Continued) (Continued) 104 OriginalFinal Budget Budget ActualVariance Finance Department Administration Personnel services 135,090 $ 135,090 $ 136,154 $ (1,064) $ Supplies 5,000 5,000 1,141 3,859 Other services and charges 59,980 59,980 58,116 1,864 Total administration 200,070 200,070 195,411 4,659 Accounting Personnel services 793,697 793,697 713,893 79,804 Supplies 22,350 22,350 16,511 5,839 Other services and charges 105,280 105,280 89,242 16,038 Total accounting 921,327 921,327 819,646 101,681 Business License Personnel services 666,494 666,494 646,201 20,293 Supplies 26,638 26,638 27,704 (1,066) Other services and charges 97,607 97,607 90,321 7,286 Total business license 790,739 790,739 764,226 26,513 Total Finance Departmen t 1,912,136 1,912,136 1,779,283 132,853 Development Services and Planning Development Services Personnel services 2,719,311 2,719,311 2,766,588 (47,277) Supplies 114,245 114,245 85,477 28,768 Other services and charges 544,020 880,842 376,852 503,990 Capital outla y 50,740 74,390 256,496 (182,106) Total development services 3,428,316 3,788,788 3,485,413 303,375 Total Development Services and Planning 3,428,316 3,788,788 3,485,413 303,375 Public Safety Police Department Administrative Services Personnel services 3,312,346 3,312,346 2,467,566 844,780 Supplies 987,581 987,581 730,857 256,724 Other services and charges 1,604,286 1,604,320 1,834,482 (230,162) Capital outla y - - 7,557 (7,557) Total administrative services 5,904,213 5,904,247 5,040,462 863,785 CITY OF COLUMBIA, SOUTH CAROLINA SCHEDULE OF EXPENDITURES AND OTHER FINANCING USES BUDGET AND ACTUALGENERAL FUND(Continued) For the Year Ended June 30, 2015 (Continued) 105 OriginalFinal Budget Budget ActualVariance Operations Personnel services 18,935,647 $ 18,935,647 $ 16,361,612 $ 2,574,035 $ Supplies 1,187,287 2,003,114 1,166,261 836,853 Other services and charges 789,721 790,935 809,455 (18,520) Capital outla y - 1,753,912 528,750 1,225,162 Total operations 20,912,655 23,483,608 18,866,078 4,617,530 Special Services Personnel services 7,398,987 7,398,987 9,670,208 (2,271,221) Supplies 360,929 360,929 212,027 148,902 Other services and charges 254,173 254,173 290,564 (36,391) Capital outla y - 179,886 8,500 171,386 Total special services 8,014,089 8,193,975 10,181,299 (1,987,324) Total Police Department 34,830,957 37,581,830 34,087,839 3,493,991 Fire Department - City Administration Personnel services 933,513 933,513 891,789 41,724 Supplies 31,425 43,425 35,208 8,217 Other services and charges 30,260 20,960 24,587 (3,627) Capital outla y 70,000 70,000 - 70,000 Total administration 1,065,198 1,067,898 951,584 116,314 Fire Prevention Personnel services 1,093,885 1,093,885 1,032,705 61,180 Supplies 82,304 44,304 38,844 5,460 Other services and charges 81,950 66,150 60,698 5,452 Capital outla y 20,000 20,000 - 20,000 Total fire prevention 1,278,139 1,224,339 1,132,247 92,092 Fire Suppression Personnel services 14,569,577 14,569,577 15,024,907 (455,330) Supplies 1,334,500 1,237,980 1,045,102 192,878 Other services and charges 1,439,400 1,604,490 1,425,558 178,932 Capital outla y 20,000 2,190,351 1,131,496 1,058,855 Total fire suppression 17,363,477 19,602,398 18,627,063 975,335 Fire Logistics Personnel services 132,323 132,323 127,904 4,419 Supplies 98,605 77,605 49,000 28,605 Other services and charges 73,000 58,100 50,606 7,494 Capital outla y 72,500 72,500 12,231 60,269 Total fire logistics 376,428 340,528 239,741 100,787 Total Fire Department - City 20,083,242 22,235,163 20,950,635 1,284,528 CITY OF COLUMBIA, SOUTH CAROLINA SCHEDULE OF EXPENDITURES AND OTHER FINANCING USES BUDGET AND ACTUALGENERAL FUND(Continued) For the Year Ended June 30, 2015 (Continued) 106 OriginalFinal Budget Budget ActualVariance 911 Emergency and 311 Center Personnel services 2,642,086 $ 2,642,086 $ 2,428,035 $ 214,051 $ Supplies 54,400 68,767 44,489 24,278 Other services and charges 248,550 248,550 195,981 52,569 Total 911 Emergency and 311 Cente r 2,945,036 2,959,403 2,668,505 290,898 Total Public Safet y 57,859,235 62,776,396 57,706,979 5,069,417 Parks and Recreation Recreation Personnel services 3,940,579 3,856,079 3,656,044 200,035 Supplies 161,320 159,903 170,034 (10,131) Other services and charges 1,081,374 1,077,241 1,251,255 (174,014) Capital outla y - 92,752 92,742 10 Total recreation 5,183,273 5,185,975 5,170,075 15,900 Parks Personnel services 4,416,100 4,355,950 4,310,735 45,215 Supplies 477,458 581,733 537,395 44,338 Other services and charges 676,569 711,622 677,901 33,721 Capital outla y 225,000 418,081 238,604 179,477 Total parks 5,795,127 6,067,386 5,764,635 302,751 Total Parks and Recreation 10,978,400 11,253,361 10,934,710 318,651 Public Works Administration Personnel services 350,125 350,125 310,851 39,274 Supplies 27,650 32,550 19,288 13,262 Other services and charges 108,650 114,650 120,355 (5,705) Total administration 486,425 497,325 450,494 46,831 Solid Waste Personnel services 4,400,379 4,400,379 4,249,160 151,219 Supplies 1,327,896 1,373,060 910,498 462,562 Other services and charges 2,344,535 2,219,970 1,902,763 317,207 Capital outla y 15,000 1,517,668 810,244 707,424 Total solid waste 8,087,810 9,511,077 7,872,665 1,638,412 CITY OF COLUMBIA, SOUTH CAROLINA SCHEDULE OF EXPENDITURES AND OTHER FINANCING USES BUDGET AND ACTUALGENERAL FUND(Continued) For the Year Ended June 30, 2015 (Continued) 107 OriginalFinal Budget Budget ActualVariance Streets and Storm Drains Personnel services 1,815,856 $ 1,815,856 $ 1,466,476 $ 349,380 $ Supplies 229,935 234,710 186,471 48,239 Other services and charges 108,075 110,092 91,934 18,158 Capital outla y 29,700 314,853 278,888 35,965 Total streets and storm drains 2,183,566 2,475,511 2,023,769 451,742 Animal Control Personnel services 1,150,523 1,150,523 1,132,152 18,371 Supplies 174,266 189,801 177,196 12,605 Other services and charges 138,673 123,155 126,369 (3,214) Capital outla y - 19,342 - 19,342 Total animal control 1,463,462 1,482,821 1,435,717 47,104 Forestry and Beautification Personnel services 1,729,981 1,729,981 1,528,184 201,797 Supplies 216,777 216,527 165,842 50,685 Other services and charges 266,802 266,904 252,693 14,211 Capital outla y 8,500 487,447 410,306 77,141 Total forestry and beautification 2,222,060 2,700,859 2,357,025 343,834 Traffic Engineering Personnel services 1,350,224 1,350,224 1,299,345 50,879 Supplies 196,045 227,545 164,740 62,805 Other services and charges 2,103,394 2,112,394 2,153,110 (40,716) Capital outla y 38,850 136,813 123,762 13,051 Total traffic engineering 3,688,513 3,826,976 3,740,957 86,019 Total Public Works 18,131,836 20,494,569 17,880,627 2,613,942 General Services Information Technology Personnel services 2,094,766 2,094,766 1,735,331 359,435 Supplies 162,780 162,780 122,406 40,374 Other services and charges 1,397,428 1,423,176 1,091,123 332,053 Capital outla y - 21,331 274,042 (252,711) Total information technology 3,654,974 3,702,053 3,222,902 479,151 Support Services Personnel services 558,303 558,303 534,016 24,287 Supplies 59,550 59,550 62,968 (3,418) Other services and charges 1,298,905 1,328,007 1,134,609 193,398 Capital outla y 665,000 775,912 276,175 499,737 Total public buildings 2,581,758 2,721,772 2,007,768 714,004 Total General Services 6,236,732 6,423,825 5,230,670 1,193,155 CITY OF COLUMBIA, SOUTH CAROLINA SCHEDULE OF EXPENDITURES AND OTHER FINANCING USES BUDGET AND ACTUALGENERAL FUND(Continued) For the Year Ended June 30, 2015 (Continued) 108 OriginalFinal Budget Budget ActualVariance Community Promotion Community promotion 270,670 $ 270,670 $ 175,670 $ 95,000 $ Total Community Promotion 270,670 270,670 175,670 95,000 Community Development Personnel services 290,688 290,688 281,596 9,092 Supplies 24,100 24,100 36,512 (12,412) Other services and charges 32,150 32,167 51,493 (19,326) Capital outla y - 23,534 - 23,534 Total community development 346,938 370,489 369,601 888 Nondepartmental Contingencies Supplies 475,000 - - - Other services and charges 889,290 1,080,290 910,345 169,945 Capital Outla y - - 3,988,916 (3,988,916) Total contingencies 1,364,290 1,080,290 4,899,261 (3,818,971) Administration Other services and charges 505,000 505,000 515,801 (10,801) Total administration 505,000 505,000 515,801 (10,801) Homeless Services Other services and charges 1,000,000 1,000,000 843,550 156,450 Total homeless services 1,000,000 1,000,000 843,550 156,450 Debt Service Principal payments on debt - - 936,791 (936,791) Interest payments on debt - - 910,452 (910,452) Total debt service - - 1,847,243 (1,847,243) Total Nondepartmental 2,869,290 2,585,290 8,105,855 (5,520,565) TOTAL EXPENDITURE S 112,167,825 120,146,783 115,148,703 4,998,080 OTHER FINANCING USE S Transfers to Other Funds Debt service 5,927,980 5,927,980 5,927,980 - Transfers interfund 9,368,285 2,851,171 11,439,899 (8,588,728) Total Transfers to Other Funds 15,296,265 8,779,151 17,367,879 (8,588,728) Total Other Financing Uses 15,296,265 8,779,151 17,367,879 (8,588,728) TOTAL EXPENDITURES AND OTHER FINANCING USES 127,464,090 $ 128,925,934 $ 132,516,582$ (3,590,648)$ CITY OF COLUMBIA, SOUTH CAROLINA SCHEDULE OF EXPENDITURES AND OTHER FINANCING USES BUDGET AND ACTUALGENERAL FUND(Continued) For the Year Ended June 30, 2015 109 NONMAJOR GOVERNMENTAL FUNDS Special Revenue Funds Liquor Permit Fee – accounts for receipts from the sale of tem porary permits to allow the possession, sale, and consumption of alcoholic liquors for a period not to exceed 24 hours.

Business Improvement District accounts for the Business Improvement District taxes assessed on the business in the downtown area of the City to promote downtown beatification.

Accommodations Tax accounts for the 2% State Hotel Accommodations Tax receipts to promote tourism-related activities of City organizations.

Confiscated Drug Program accounts for the disposition of forfeited property and money seized in Columbia by law enforcement agencies.

Hospitality Tax accounts for a 2% gross sales tax on prepare d food and beverages sold in establishments to promote tourism-related activities of City organizations.

Community Development grants and awards accounts for the Community Development Block Grants and other community development type grants.

Federal Grants accounts for the receipt of Federal grants e xcept for Community Development Block Grants.

Other Programs – accounts for miscellaneous programs for park improvements and special events.

Tourism Development Convention Center accounts for a 3% Tourism Development Fee imposed upon the rental of hotels, motels, and other lodging establishments in the City. This fee is dedicated to the attraction of and improvement of the services provided to tourists and to the retirement of the Series 2012 Certificates of Participation revenue bonds.

Debt Service Funds Debt Service accounts for the accumulation of financial resource s for the payment of interest and principal on the general long-term debt of the City, other than debt service payments financed by the Tourism Development Convention Center fund and the propriet ary fund types. Ad valorem taxes, interest earnings on the investments of the Debt Service Fund, and interest earned on investments of certain Capital Projects Funds are used for the payment of principal, interest, and fi scal agent expenditures on the City’s general obligation and revenue bonds.

Capital Project Funds Congaree Vista District accounts for the construction and development of parks and infrastructure within the Congaree Vista District funded by tax increment district property tax revenues.

Streetscaping accounts for capital improvements to street landscaping.

General Capital Projects accounts for various capital improvements in the City.

Miscellaneous Projects accounts for various capital projects funded by the General Fund.

Permanent Trust Anna Dickson Park Fund accounts for an endowment for which the investment income must be used to purchase flowers for the parks. Special Revenue Liquor Permit Fee Business Improvement District Accommodations Tax Confiscated Drug Program Hospitality Tax Community Development Federal Grants Other Programs Tourism Development Convention Center Total ASSETS Cash and cash equivalents 533,603 $ -$ 136,213 $ 261,323 $ 840,122$ - $ - $ 214,158$ 5,023,475 $ 7,008,894 $ Investments - - - 47,679 - - - - - 47,679 Due from the Federal government - - - - - 671,334 261,168 - - 932,502 Due from State government 26,580 - 741,860 - - - - - - 768,440 Due from County government - - - - - - - - 500,130 500,130 Accrued interest receivable - - - - - - - - 9 9 Due from other funds - - - - - - - - - - TOTAL ASSET S 560,183 $ - $ 878,073 $ 309,002 $ 840,122$ 671,334 $ 261,168 $ 214,158$ 5,523,614 $ 9,257,654 $ LIABILITIES AND FUND BALANCES Liabilities Accounts payable - $ -$ 1,583 $ 21,841 $ 960$ 256,828 $ 79,656 $ 3,094$ 7,800 $ 371,762 $ Accrued salaries and benefits - - - - - 21,587 2,519 4,770 - 28,876 Retainage payable - - - - - - - - - - Due to component unit - - 825,000 - - - - - - 825,000 Refundable advances - - - 55,539 - 727 23,803 - - 80,069 Due to other funds - - - - - 392,192 155,190 - - 547,382 Total liabilities - - 826,583 77,380 960 671,334 261,168 7,864 7,800 1,853,089 Fund balances Nonspendable - - - - - - - - - - Restricted 560,183 - 51,490 231,622 839,162 - - 206,294 5,515,814 7,404,565 Assigned - - - - - - - - - - Total fund balances 560,183 - 51,490 231,622 839,162 - - 206,294 5,515,814 7,404,565 TOTAL LIABILITIES AND FUND BALANCES 560,183 $ - $ 878,073 $ 309,002 $ 840,122 $ 671,334 $ 261,168 $ 214,158 $ 5,523,614 $ 9,257,654 $ CITY OF COLUMBIA, SOUTH CAROLINA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS June 30, 2015 (Continued)110 Permanent Trust Debt Service Fund Congaree Vista District Streetscaping General Capital Projects Miscellaneous Projects Total Dickson Trust Total Nonmajor Governmental Funds ASSETS Cash and cash equivalents 3,232,499 $ 5,548,755$ 7,595,360$ 9,063,393 $ 901,425$ 23,108,933 $ 5,586$ 33,355,912 $ Investments 746,433 - - - 31,638,499 31,638,499 - 32,432,611 Due from the Federal government - - - - - - - 932,502 Due from State government - - - - 2,246,813 2,246,813 - 3,015,253 Due from County government - - - - - - - 500,130 Accrued interest receivable - - - - 6 6 - 15 Due from other funds - 100,000 - 600,956 2,285,244 2,986,200 - 2,986,200 TOTAL ASSETS 3,978,932 $ 5,648,755 $ 7,595,360$ 9,664,349 $ 37,071,987$ 59,980,451 $ 5,586$ 73,222,623 $ LIABILITIES AND FUND BALANCES Liabilities Accounts payable - $ -$ 38,546$ 465,111 $ 3,587,764$ 4,091,421 $ -$ 4,463,183 $ Accrued salaries and benefits - - - - - - - 28,876 Retainage payable - - 105,159 80,287 353,222 538,668 - 538,668 Due to component unit - - - - - - - 825,000 Refundable advances - - - - - - - 80,069 Due to other funds - - - - 1,396,270 1,396,270 - 1,943,652 Total liabilities - - 143,705 545,398 5,337,256 6,026,359 - 7,879,448 Fund balances Nonspendable - - - - - - 5,000 5,000 Restricted 3,978,932 5,648,755 - - 31,734,731 37,383,486 586 48,767,569 Assigned - - 7,451,655 9,118,951 - 16,570,606 - 16,570,606 Total fund balances 3,978,932 5,648,755 7,451,655 9,118,951 31,734,731 53,954,092 5,586 65,343,175 TOTAL LIABILITIES AND FUND BALANCE S 3,978,932 $ 5,648,755 $ 7,595,360$ 9,664,349 $ 37,071,987$ 59,980,451 $ 5,586$ 73,222,623 $ Capital Projects CITY OF COLUMBIA, SOUTH CAROLINA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS (CONTINUED) June 30, 2015 111 Liquor Permit Fee Business Improvement District Accommodations Tax Confiscated Drug Program Hospitality Tax Community Development Federal Grants Other Programs Tourism Development Convention Center Total REVENUES Federal government - $ - $ - $ - $ -$ 2,890,899$ 543,493 $ -$ - $ 3,434,392 $ State government 411,210 - - - - - - - - 411,210 County government - 778,396 - - - - - - 5,828,040 6,606,436 Promotions - - - - - - - 43,606 - 43,606 Charges for services - - - - - - - 68,974 - 68,974 Fines and forfeitures - - - - - - - 203,769 - 203,769 Confiscated funds - - - 279,147 - - - - - 279,147 Sales and hospitality taxes - - 2,084,883 - 10,450,637 - - - - 12,535,520 Interest income - - - 91 4,907 - - - 110 5,108 Other revenue - - - - - 168 285,714 - - 285,882 Total revenues 411,210 778,396 2,084,883 279,238 10,455,544 2,891,067 829,207 316,349 5,828,150 23,874,044 EXPENDITURES Current General government - - 8,848 - - - 93,719 - - 102,567 Public safety - - - 181,671 - - 531,229 179,487 - 892,387 Public services - - - - - - - - - - Community promotion - 778,396 2,566,972 - 6,308,175 2,263,578 - 82,361 13,407 12,012,889 Debt Service Principal - - - - - - - - 2,275,000 2,275,000 Interest and other charges - - - - - - - - 451,588 451,588 Fiscal agent charges - - - - - - - - - - Debt issuance costs - - - - - - - - - - Capital Outla y Capital outlay - - - 65,967 - - 205,561 - 11,000 282,528 Total expenditures - 778,396 2,575,820 247,638 6,308,175 2,263,578 830,509 261,848 2,750,995 16,016,959 Excess (deficiency) of revenues over expenditures 411,210 - (490,937) 31,600 4,147,369 627,489 (1,302) 54,501 3,077,155 7,857,085 OTHER FINANCING SOURCES (USES) Issuance of debt - - - - - - - - - - Premium on bond issuance - - - - - - - - - - Transfers in - - - - - 238,257 1,302 1,182 - 240,741 Transfers out - - (25,000) - (5,211,710) (865,746) - - - (6,102,456) Total other financing sources and uses - - (25,000) - (5,211,710) (627,489) 1,302 1,182 - (5,861,715) Net change in fund balances 411,210 - (515,937) 31,600 (1,064,341) - - 55,683 3,077,155 1,995,370 Fund balances - beginning 148,973 - 567,427 200,022 1,903,503 - - 150,611 2,438,659 5,409,195 Fund balances - ending 560,183 $ - $ 51,490 $ 231,622 $ 839,162 $ - $ - $ 206,294 $ 5,515,814 $ 7,404,565 $ CITY OF COLUMBIA, SOUTH CAROLINA COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALAN\ CES NONMAJOR GOVERNMENTAL FUNDS Year Ended June 30, 2015 Special Revenue (Continued)112 Permanent Trust Debt Service Fund Congaree Vista District Streetscaping General Capital Projects Miscellaneous Projects Total Dickson Trust Total Nonmajor Governmental Funds REVENUES Federal government - $ - $ -$ -$ -$ -$ -$ 3,434,392$ State government - - - 25,990 2,944,480 2,970,470 - 3,381,680 County government - - - - - - - 6,606,436 Promotions - - - - - - - 43,606 Charges for services - - - - - - - 68,974 Fines and forfeitures - - - - - - - 203,769 Confiscated funds - - - - - - - 279,147 Sales and hospitality taxes - - - - - - - 12,535,520 Interest income 104 - - - 10,916 10,916 5 16,133 Other revenue - 267,000 935,401 22,524 26,834 1,251,759 - 1,537,641 Total revenues 104 267,000 935,401 48,514 2,982,230 4,233,145 5 28,107,298 EXPENDITURES Current General government - 216,205 - - - 216,205 - 318,772 Public safet y - - - - - - - 892,387 Public services - - - - 700,962 700,962 - 700,962 Community promotion - - - 783,942 - 783,942 - 12,796,831 Debt Service Principal 6,115,000 - - - - - - 8,390,000 Interest and other charges 1,810,806 - - - - - - 2,262,394 Fiscal agent charges 5,461 - - - - - - 5,461 Debt issuance costs - - - - 904,310 904,310 - 904,310 Capital Outla y Capital outla y - 20,390 979,795 2,565,808 8,121,498 11,687,491 - 11,970,019 Total expenditures 7,931,267 236,595 979,795 3,349,750 9,726,770 14,292,910 - 38,241,136 Excess (deficiency) of revenues over expenditures (7,931,163) 30,405 (44,394) (3,301,236) (6,744,540) (10,059,765) 5 (10,133,838) OTHER FINANCING SOURCES (USES) Issuance of debt - - - - 26,175,000 26,175,000 - 26,175,000 Premium on debt issuance - - - - 3,747,839 3,747,839 - 3,747,839 Transfers in 8,570,547 - - 7,247,754 125,873 7,373,627 - 16,184,915 Transfers out - - - (5,766,784) (5,766,784) - (11,869,240) Total other financing sources and uses 8,570,547 - - 7,247,754 24,281,928 31,529,682 - 34,238,514 Net change in fund balances 639,384 30,405 (44,394) 3,946,518 17,537,388 21,469,917 5 24,104,676 Fund balances - beginning 3,339,548 5,618,350 7,496,049 5,172,433 14,197,343 32,484,175 5,581 41,238,499 Fund balances - ending 3,978,932 $ 5,648,755 $ 7,451,655$ 9,118,951 $ 31,734,731 $ 53,954,092 $ 5,586 $ 65,343,175 $ Capital Projects CITY OF COLUMBIA, SOUTH CAROLINA COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALAN\ CES NONMAJOR GOVERNMENTAL FUNDS (CONTINUED) Year Ended June 30, 2015 113 NONMAJOR PROPRIETARY FUNDS Nonmajor Proprietary Funds are used to account for operations of the City (a) that are financed and operated in a manner similar to private business where the intent is for the cost of providing goods or services to be recovered, in whole or in part, through user charges; or (b) where the City Council has decided that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. These funds include:

Hydro-Electric Facilities Fund accounts for hydro-electric plant activities.

Stormwater Facilities Fund accounts for stormwater utility activities.

Redevelopment Programs Fund accounts for various home rehabilitation and mortgage lending programs funded from various sources.

Parks and Recreation Camp Fund accounts for the parks and recreations camp activities.

Economic Development Fund accounts for economic development activities.

Total Hydro Electric Stormwater Redevelopment Parks and Economic Nonmajor Facilities Facilities Programs Recreation Development ProprietaryFund Fund Fund Camp Fund Fund Funds ASSETS Current Assets Cash and cash equivalents 305,409 $ 14,071,548$ 6,358,765$ 148,611$ -$ 20,884,333$ Investments - 5,679,240 - - - 5,679,240 Accounts receivable, net 119,530 4,213 - - - 123,743 Mortgage notes receivable, net - - 420,471 - - 420,471 Accrued interest receivable - 11,626 - - - 11,626 Due from component units - - 370,168 - - 370,168 Prepaid expenses - 9,286 - - - 9,286 Real estate held for resale - - 84,810 - - 84,810 Total current assets 424,939 19,775,913 7,234,214 148,611 - 27,583,677 Noncurrent Assets Mortgage notes receivable, net - - 20,603,101 - - 20,603,101 Capital assets Land 327,169 19,009 - - - 346,178 Buildings, improvements, and utility plant 16,173,300 13,467,245 - - - 29,640,545 Machinery and equipment - 3,570,322 - - - 3,570,322 Less accumulated depreciation (4,124,192) (4,330,635) - - - (8,454,827) Construction in progress - 2,910,068 - - - 2,910,068 Net capital assets 12,376,277 15,636,009 - - - 28,012,286 Total noncurrent assets 12,376,277 15,636,009 20,603,101 - - 48,615,387 TOTAL ASSETS 12,801,216 35,411,922 27,837,315 148,611 - 76,199,064 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows related to net pension liability - 255,314 19,156 15,288 - 289,758 TOTAL ASSETS AND DEFERRED OUTFLOWS OF RESOURCES 12,801,216 $ 35,667,236 $ 27,856,471 $ 163,899 $ - $ 76,488,822 $ LIABILITIES, DEFERRED INFLOWS AND FUND NET POSITION Current Liabilities Accounts payable 58 $ 456,752 $ 56,089 $ 8,123 $ - $ 521,022 $ Accrued salaries and benefits - 85,7616,738 19,791- 112,290 Compensated absences - 14,250 4,079 - - 18,329 Retainage payable - 164,102- - - 164,102 Total current liabilities 58 720,865 66,906 27,914 - 815,743 Noncurrent Liabilities Net pension liability - 2,674,342 202,356 160,140 - 3,036,838 Compensated absences - 57,00116,314 - - 73,315 Total noncurrent liabilities - 2,731,343 218,670 160,140 - 3,110,153 Total liabilities 58 3,452,208 285,576 188,054 - 3,925,896 DEFERRED INFLOWS OF RESOURCES Deferred inflows related to net pension liability - 256,253 19,227 15,344 - 290,824 Fund Net Position Net investment in capital assets 12,376,277 15,636,009 - - - 28,012,286 Unrestricted 424,881 16,322,766 27,551,668 (39,499) - 44,259,816 Total fund net position 12,801,158 31,958,775 27,551,668 (39,499) - 72,272,102 TOTAL LIABILITIES, DEFERRED INFLOWS AND FUND NET POSITION 12,801,216 $ 35,667,236 $ 27,856,471 $ 163,899 $ - $ 76,488,822 $ CITY OF COLUMBIA, SOUTH CAROLIN A COMBINING STATEMENT OF NET POSITION NONMAJOR PROPRIETARY FUNDS June 30, 2015 114 Total Hydro Electric Stormwater Redevelopment Parks and Economic Nonmajor Facilities Facilities Programs Recreation Development ProprietaryFund Fund Fund Camp Fund Fund Funds Operating revenues Charges for service 2,537,971 $ 7,222,413$ 542,030$ 300,931$ -$ 10,603,345 $ Other operating revenue - 300,000 450,020 - - 750,020 Total operating revenues 2,537,971 7,522,413 992,050 300,931 - 11,353,365 Operating expenses Personnel services - 2,573,024 183,186 224,767 - 2,980,977 Materials and supplies - 223,099 1,636 48,916 - 273,651 Other services and charges 2,099,077 1,044,520 494,270 32,536 - 3,670,403 Depreciation 323,466 790,049 - - - 1,113,515 Bad debt expense - - 468,660 - - 468,660 Total operating expenses 2,422,543 4,630,692 1,147,752 306,219 - 8,507,206 Operating income (loss) 115,428 2,891,721 (155,702) (5,288) - 2,846,159 Nonoperating revenues (expenses) Investment income (loss) - 90,231 - - - 90,231 Other nonoperating revenue 500,000 - - - - 500,000 Gain from sale of assets - 11,205 88,871 - - 100,076 Total nonoperating revenues (expenses) 500,000 101,436 88,871 - - 690,307 Income (loss) before transfers 615,428 2,993,157 (66,831) (5,288) - 3,536,466 Transfers Transfers in - 500,000598,236 - - 1,098,236 Transfers out (500,000) (84,076) (240,604) (10,750) - (835,430) Total transfers (500,000) 415,924 357,632 (10,750) - 262,806 Change in net position 115,428 3,409,081 290,801 (16,038) - 3,799,272 Net pos ition - beginning as previously reported 12,685,730 31,202,273 27,459,892 135,376 - 71,483,271 Restatement (Note VII. C.) - (2,652,579) (199,025) (158,837) - (3,010,441) Net position - beginning as restated 12,685,730 28,549,694 27,260,867 (23,461) - 68,472,830 Net position - ending 12,801,158 $ 31,958,775 $ 27,551,668$ (39,499)$ -$ 72,272,102 $ CITY OF COLUMBIA, SOUTH CAROLIN A COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITIO N NONMAJOR PROPRIETARY FUND S Year Ended June 30, 2015 115 Total Hydro Electric Stormwater Redevelopment Parks and Economic Nonmajor Facilities Facilities Programs Recreation Development ProprietaryFund Fund Fund Camp Fund Fund Funds Cash Flows From Operating Activities Receipts from customers and users 2,795,015 $ 7,520,620$ 992,050$ 300,931$ -$ 11,608,616 $ Internal activity - payments to other funds - (790,826) - (13,663) - (804,489) Payments to suppliers (2,099,433) (1,013,654) (602,427) (77,542) - (3,793,056) Payments to employees - (2,084,675) (177,373) (210,050) - (2,472,098) Net cash provided by (used in) operating activities 695,582 3,631,465 212,250 (324) - 4,538,973 Cash Flows From Noncapital Financing Activities Advances from other funds - - 1,665 - - 1,665 Advances to other funds - - - - (7,000,000) (7,000,000) Transfers in - 500,000 598,236 - - 1,098,236 Transfers out (500,000) (84,076) (240,604) (10,750) - (835,430) Net cash provided by (used in) noncapital financing activities (500,000) 415,924 359,297 (10,750) (7,000,000) (6,735,529) Cash Flows From Capital And Related Financing Activities Purchase of capital assets - (4,204,077) - - - (4,204,077) Proceeds from sale of capital assets - 11,205 88,871 - - 100,076 Net cash provided by (used in) capital and related financing activities - (4,192,872) 88,871 - - (4,104,001) Cash Flows From Investing Activities Sale of investments - 333,795 - - - 333,795 Advances of mortgage notes receivable - - (3,056,979) - (96,915) (3,153,894) Collections of mortgage notes receivable - - 2,567,568 - 5,909,222 8,476,790 Interest received - 89,812 - - - 89,812 Net cash provided by (used in) investing activitie s - 423,607 (489,411) - 5,812,307 5,746,503 Net increase (decrease) in cash and cash equivalents 195,582 278,124 171,007 (11,074) (1,187,693) (554,054) Cash and cash equivalents, July 1, 2014 109,827 13,793,424 6,187,758 159,685 1,187,693 21,438,387 Cash and cash equivalents, June 30, 2015 305,409 $ 14,071,548 $ 6,358,765$ 148,611$ -$ 20,884,333 $ CITY OF COLUMBIA, SOUTH CAROLIN A COMBINING STATEMENT OF CASH FLOW S NONMAJOR PROPRIETARY FUND S Year Ended June 30, 2015 (Continued) 116 Total Hydro Electric Stormwater Redevelopment Parks and Economic Nonmajor Facilities Facilities Programs Recreation Development ProprietaryFund Fund Fund Camp Fund Fund Funds Reconciliation Of Operating Income (Loss) To Net Cash Provided By (Used In) Operating Activities Operating income (loss) 115,428 $ 2,891,721 $ (155,702)$ (5,288)$ -$ 2,846,159 $ Adjustments to reconcile operating income to net cash provided by (used in) operating activities: Depreciation 323,466 790,049 - - - 1,113,515 Accrued benefits related to net pension liability - 34,745 3,452 1,359 - 39,556 Bad debt expense - - 468,660 - - 468,660 Change in operating assets and liabilities Accounts receivable 257,044 (1,793) - - - 255,251 Prepaid expenses - 510 - - - 510 Accounts payable (356) (76,433) (106,521) 3,910 - (179,400) Accrued salaries - (3,914) 554 (305) - (3,665) Accrued compensated absences - (3,420) 1,807 - - (1,613) Total adjustments 580,154 739,744 367,952 4,964 - 1,692,814 Net cash provided by (used in) operating activities 695,582 $ 3,631,465 $ 212,250$ (324)$ -$ 4,538,973 $ CITY OF COLUMBIA, SOUTH CAROLIN A COMBINING STATEMENT OF CASH FLOWS NONMAJOR PROPRIETARY FUNDS (CONTINUED ) Year Ended June 30, 2015 117 INTERNAL SERVICE FUNDS Internal Service Funds are used to account for the financing of goo ds and services provided by one department or agency to other departments or agencies in the City, or to other governments, on a user charge basis. These funds include:

Fleet Management accounts for the maintenance and repair of vehicles.

Support Services accounts for a decentralized governmental and enterprise inventory system, a central supply facility, procurement functions, an d the City’s general maintenance functions.

Risk Management accounts for the costs associated with self-funded liability plans for employee health, worker’s compensation, and tort liability for all City departments.

Totals Internal Fleet Support Risk Service Management Services Management Funds ASSETS Current Assets Cash and cash equivalents 1,866,344 $ 69,555 $ 63,236,789$ 65,172,688$ Accounts receivable 60,700 - 279,602 340,302 Prepaid expenses 5,944 180,487 - 186,431 Inventory - 686,763 - 686,763 Total current assets 1,932,988 936,805 63,516,391 66,386,184 Noncurrent Assets Deposits - - 78,745 78,745 Capital assets Buildings 903,586 - - 903,586 Machinery and equipment 507,658 1,315,361 - 1,823,019 Less accumulated depreciation (984,842) (529,259) - (1,514,101) Total capital assets (net of accumulated depreciation) 426,402 786,102 - 1,212,504 Total noncurrent assets 426,402 786,102 78,745 1,291,249 TOTAL ASSETS 2,359,390 1,722,907 63,595,136 67,677,433 DEFERRED OUTFLOWS OF RESOURCE S Deferred outflows related to net pension liability 255,314 122,306 21,404 399,024 TOTAL DEFERRED OUTFLOWS OF RESOURCES 255,314 122,306 21,404 399,024 TOTAL ASSETS AND DEFERRE D OUTFLOWS OF RESOURCES 2,614,704 $ 1,845,213 $ 63,616,540$ 68,076,457$ LIABILITIES, DEFERRED INFLOWS AND FUND NET POSITION Current Liabilities Accounts payable 2,129,932 $ 433,790 $ 320,292$ 2,884,014$ Accrued salaries and benefits 84,750 30,214 14,724 129,688 Accrued compensation absences 28,942 11,311 8,240 48,493 Due to other funds - 1,202,351 - 1,202,351 Accrued liability for claims - - 16,225,389 16,225,389 Total current liabilities 2,243,624 1,677,666 16,568,645 20,489,935 Noncurrent Liabilities OPEB liability - - 52,098,105 52,098,105 Net pension liability 2,674,342 1,281,122 224,196 4,179,660 Accrued compensated absences 115,765 45,243 32,958 193,966 Total noncurrent liabilities 2,790,107 1,326,365 52,355,259 56,471,731 Total liabilities 5,033,731 3,004,031 68,923,904 76,961,666 DEFERRED INFLOWS OF RESOURCES Deferred inflows related to net pension liability 256,253 122,756 21,482 400,491 FUND NET POSITION Net investment in capital assets 426,402 786,102 - 1,212,504 Unrestricted (3,101,682) (2,067,676) (5,328,846) (10,498,204) Total net position (deficit) (2,675,280) (1,281,574) (5,328,846) (9,285,700) TOTAL LIABILITIES, DEFERRED INFLOWS AND FUND NET POSITION 2,614,704 $ 1,845,213 $ 63,616,540$ 68,076,457$ CITY OF COLUMBIA, SOUTH CAROLINA COMBINING STATEMENT OF NET POSITION INTERNAL SERVICE FUNDS June 30, 2015 118 Total Internal Fleet Support Risk Service Management Services Management Funds Operating revenues Charges for service 10,100,293 $ 1,783,996 $ 34,000,850$ 45,885,139$ Total operating revenue 10,100,293 1,783,996 34,000,850 45,885,139 Operating expense s Personnel services 2,477,740 936,180 395,275 3,809,195 Materials and supplies 7,812,655 774,378 122,784 8,709,817 Heat, light and powe r 51,462 - - 51,462 Other services and charges 173,657 1,520,369 3,622,072 5,316,098 Claims and premiums - - 36,076,912 36,076,912 Depreciation 94,500 160,101 - 254,601 Total operating expenses 10,610,014 3,391,028 40,217,043 54,218,085 Operating income (loss) (509,721) (1,607,032) (6,216,193) (8,332,946) Nonoperating revenues Gain from sale of assets 7,490 - - 7,490 Total nonoperating revenues 7,490 - - 7,490 Loss before transfers (502,231) (1,607,032) (6,216,193) (8,325,456) Transfers Transfers in 479,531 1,645,695 6,989,528 9,114,754 Transfers out - (49,540) (775,239) (824,779) Total transfers 479,531 1,596,155 6,214,289 8,289,975 Change in net position (22,700) (10,877) (1,904) (35,481) Net position - beginning as previously reported - - (5,104,570) (5,104,570) Restatement (Note VII. C.) (2,652,580) (1,270,697) (222,372) (4,145,649) Net position - beginning as restated (2,652,580) (1,270,697) (5,326,942) (9,250,219) Net position (deficit ) - ending (2,675,280) $ (1,281,574) $ (5,328,846)$ (9,285,700)$ CITY OF COLUMBIA, SOUTH CAROLIN A COMBINING STATEMENT OF REVENUES, EXPENSES INTERNAL SERVICE FUND S Year Ended June 30, 2015 AND CHANGES IN NET POSITION 119 Total Internal Fleet Support Risk Service Management Services Management Funds Cash Flows From Operating Activities Internal activity - receipts from other funds 8,235,208 $ 1,783,996$ 33,979,917$ 43,999,121$ Receipts from customers and users 1,855,629 - - 1,855,629 Internal activity - payments to other funds (517,109) (69,403) (24,905) (611,417) Payments to suppliers (6,963,817) (2,924,523) (580,467) (10,468,807) Claims paid - - (35,258,588) (35,258,588) Payments to employees (1,890,541) (148,751) (359,881) (2,399,173) Net cash provided by (used in) operating activities 719,370 (1,358,681) (2,243,924) (2,883,235) Cash Flows From Noncapital Financing Activities Advances from other funds - - 7,000,000 7,000,000 Advances to other funds - (177,087) - (177,087) Transfers in 479,531 1,645,695 6,989,528 9,114,754 Transfers out - (49,540) (775,239) (824,779) Net cash provided by (used in) noncapital financing activities 479,531 1,419,068 13,214,289 15,112,888 Cash Flows From Capital and Related Financing Activities Proceeds from sale of capital assets 7,490 - - 7,490 Purchase of capital assets - (14,614) - (14,614) Net cash provided by (used in) capital and related financing activities 7,490 (14,614) - (7,124) Net increase (decrease) in cash and cash equivalents 1,206,391 45,773 10,970,365 12,222,529 Cash and cash equivalents, July 1, 2014 659,953 23,782 52,266,424 52,950,159 Cash and cash equivalents, June 30, 2015 1,866,344 $ 69,555 $ 63,236,789 $ 65,172,688 $ Reconciliation Of Operating Loss To Net Cash Provided By (Used In) Operating Activities Operating income (loss) (509,721) $ (1,607,032) $ (6,216,193) $ (8,332,946) $ Adjustments to reconcile operating loss to net cash provided by (used in) operating activities: Depreciation 94,500 160,101 - 254,601 Accrued benefits related to net pension liability 22,701 10,875 1,902 35,478 Change in operating assets and liabilities Accounts receivable (9,456) - (20,933) (30,389) Inventory - (13,736) - (13,736) Prepaid expenses (4,347) (74,783) - (79,130) Accounts payable 1,078,304 170,156 (321,012) 927,448 Accrued salaries 3,543 (2,285) 1,252 2,510 Accrued compensated absences 43,846 (1,977) 7,335 49,204 OPEB liability - - 3,485,401 3,485,401 Accrued liability for claims - - 818,324 818,324 Total adjustments 1,229,091 248,351 3,972,269 5,449,711 Net cash provided by (used in) operating activities 719,370 $ (1,358,681) $ (2,243,924) $ (2,883,235) $ CITY OF COLUMBIA, SOUTH CAROLINA COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS Year Ended June 30, 2015 120 FIDUCIARY FUNDS Private-Purpose Trust Funds are used to report trust arrangements under which principal and income benefit individuals, private organizations, or other governments.

Breast Cancer Awareness fund – accounts for contri butions made and revenue raised on behalf of breast cancer awareness in the Midlands region.

Police Canteen fund – to account for revenue raised to support police activities.

Inspections Education Program fund – accounts for co ntributions made and revenue raised to promote the United Way of the Midlands. Employee Special Activity fund –accounts for contribut ions made and revenue raised to support educational activities and benevolent events.

Mayor’s Commission Employ People with Disabilities fund – accounts for contributions made to help individuals with disabilities find jobs.

Agency Funds are used to account for short-term custodial collections on resources on behalf of another individual, entity, or government.

Agency fund - to account for contributions colle cted by the City on behalf of other entities.

Mayor's Commission Total Breast Inspections Employee Employ Private- Cance r Police Education Special People with Purpose Awareness Canteen Program Activit y Disabilities Trust Funds ASSETS Cash and cash equivalents 1,580$ 1,005 $ - $ 10,800 $ 2,714 $ 16,099 $ Total assets 1,580 1,005 - 10,800 2,714 16,099 NET POSITION Held in trust - other purposes 1,580$ 1,005$ - $ 10,800 $ 2,714 $ 16,099 $ Private-Purpose Trust Funds CITY OF COLUMBIA, SOUTH CAROLIN A COMBINING STATEMENT OF FIDUCIARY NET POSITION PRIVATE PURPOSE TRUST FUNDS June 30, 2015 121 Mayor's Commission Total Breast Inspections Employee Employ Private- Cance r Police Education Special People with Purpose Awareness Canteen Program Activit y Disabilities Trust Funds ADDITIONS Contributions: Private donations 17,114 $ -$ -$ 13,785$ - $ 30,899$ Total contributions 17,114 - - 13,785 - 30,899 DEDUCTIONS Administrative expenses 17,056 40 100 9,777 260 27,233 Total deductions 17,056 40 100 9,777 260 27,233 Change in net position 58 (40) (100) 4,008 (260) 3,666 Net position - beginning 1,522 1,045 100 6,792 2,974 12,433 Net position - ending 1,580 $ 1,005 $ -$ 10,800$ 2,714 $ 16,099$ CITY OF COLUMBIA, SOUTH CAROLIN A COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION PRIVATE PURPOSE TRUST FUNDS Year Ended June 30, 2015 Private-Purpose Trust Funds 122 BalanceBalance July 1, 201 4 Additions Deductions June 30, 2015 ASSETS Cash and cash equivalents 33,484 $ 136,733$ 136,489$ 33,728$ Total assets 33,484 136,733 136,489 33,728 LIABILITIES Accounts payable 33,484 136,733 136,489 33,728 Total liabilities 33,484 $ 136,733 $ 136,489$ 33,728$ CITY OF COLUMBIA, SOUTH CAROLIN A STATEMENT OF CHANGES IN ASSETS AND LIABILITIES AGENCY FUND Year Ended June 30, 2015 123 OTHER SCHEDULE Court Fines and AssessmentsFines Collected 1,020,052 $ Assessments 1,125,034 Surcharges 459,494 Total Court Fines and Assessments Collected 2,604,580 $ Surcharges and Assessments Remitted to State Treasure r Fines, Fees and Filing Fee / Assessment Municipal Conditional Discharge Fee 18,300 $ DUI/DUS/BUI Municipal DUS DPS Pullout 30,976 Municipal DUI Assessment 1,207 Municipal DUI Surcharge 10,156 DUS DPS Pullout - DUIHP 10,056 DUI/DUAC Breathalyzer Test Conviction Fee - SLED 2,539 Surcharges Municipal Drug Surcharge 22,756 Municipal Law Enforcement Surcharge 322,495 Criminal Justice Academy Surcharge 64,494 Other Assessments - State Shared 953,415 Total Revenue Remitted to State Treasurer 1,436,394 $ Fines, Surcharges, and Assessments Retained by Cit y Fines 1,020,052 $ Assessments 119,804 Surcharges 28,330 Total Revenue Retained by City 1,168,186 $ Funds Allocated to Victims Assistanc e Carryover Funds from Prior Year 30,187 $ Assessments Retained 119,804 Surcharges Retained 28,330 Expenditures (178,660) Transfers from General Fund 82 Total Due From General Fund (257) $ CITY OF COLUMBIA, SOUTH CAROLINA SCHEDULE OF FINES, ASSESSMENTS, AND SURCHARGES YEAR ENDED JUNE 30, 2015 124 STATISTICAL SECTION (UNAUDITED) City of Columbia, South Carolina Statistical Section This part of the City of Columbia’s comprehensive financial report presents detailed information as a context for understanding what the information in th e financial statements, note disclosures, and required supplementary information says about the City’s overall financial health.

Contents Financial Trends (Schedule 1 through 4) These schedules contain trend information to hel p the reader understand how the City’s financial performance and well-being have changed over time.

Revenue Capacity (Schedule 5 through 8) These schedules contain information to help the r eader assess the City’s most significant local revenue source, the property tax.

Debt Capacity (Schedule 9 through 15) These schedules present information to help the reader assess the affordability of the City’s current levels of outstanding debt and the City’s abilit y to issue additional debt in the future.

Demographic and Economic Information (Schedule 16 through 18) These schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place.

Operating Information (Schedule 19 through 20) These schedules contain service and infrastructure data to help the reader understand how the information in the City’s financial report relates to the services the Ci ty provides and the activities it performs.

Sources Unless otherwise noted the information in these schedules is derived from the comprehensive annual reports for the relevant year.

Schedule 1 CITY OF COLUMBIA, SOUTH CAROLIN A Net Position by Component (unaudited ) Last Ten Fiscal Years (accrual basis of accounting)2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Governmental activities Net investment in capital assets 1 97,571,357 $ 170,666,468 $ 133,392,515$ 150,922,216$ 141,865,590$ 142,944,260$ 155,989,971$ 155,118,428$ 156,454,488$ 162,102,481$ Restricted for: Public safet y 6,982 7,270 5,435 5,528 5,575 701,466 386,158 2,294,259 4,233,960 231,622 Communit y development - - - - - - - 209,030 107,259 1,051,042 Tourism - - - - - 5,323,341 5,187,200 5,149,465 3,155,058 6,127,487 Debt service - - - - - 4,940,501 3,480,333 3,512,035 3,339,548 3,978,932 Capital pro jects - - - - - 16,940,012 17,701,662 15,264,573 19,833,612 42,264,148 Unrestricted 2 74,054,519 23,619,914 45,278,383 36,636,210 44,723,202 20,963,118 18,967,653 25,840,430 26,906,641 (109,340,207) Total governmental activities net position 171,632,858 $ 194,293,652 $ 178,676,333 $ 187,563,954 $ 186,594,367 $ 191,812,698 $ 201,712,977 $ 207,388,220 $ 214,030,566 $ 106,415,505 $ Business-t ype activitie s Net investment in capital assets 1 412,723,624 $ 441,526,920 $ 402,973,904$ 445,685,893$ 438,133,821$ 414,942,578$ 389,423,595$ 373,649,773$ 375,763,776$ 368,742,602$ Restricted for debt service - - - - 9,231,571 9,231,571 9,292,810 9,315,421 9,330,640 9,352,281 Unrestricted 92,520,653 84,719,370 156,426,859 144,213,396 145,389,137 168,441,129 195,789,983 237,703,681 252,831,152 224,972,741 Total business-t ype activities net positio n 505,244,277$ 526,246,290 $ 559,400,763 $ 589,899,289 $ 592,754,529 $ 592,615,278 $ 594,506,388 $ 620,668,875 $ 637,925,568 $ 603,067,624 $ Primar y government Net investment in capital assets 1 510,294,981 $ 612,193,388 $ 536,366,419$ 596,608,109$ 579,999,411$ 557,886,838$ 545,413,566$ 528,768,201$ 532,218,264$ 530,845,083$ Restricted for: Public safet y 6,982 7,270 5,435 5,528 5,575 701,466 386,158 2,294,259 4,233,960 231,622 Communit y development - - - - - - - 209,030 107,259 1,051,042 Tourism related expenditures - - - - - 5,323,341 5,187,200 5,149,465 3,155,058 6,127,487 Debt service - - - - 9,231,571 14,172,072 12,773,143 12,827,456 12,670,188 13,331,213 Capital pro jects - - - - - 16,940,012 17,701,662 15,264,573 19,833,612 42,264,148 Unrestricted 2 166,575,172 108,339,284 201,705,242 180,849,606 190,112,339 189,404,247 214,757,636 263,544,111 279,737,793 115,632,534 Total primar y government net position 676,877,135 $ 720,539,942 $ 738,077,096 $ 777,463,243 $ 779,348,896 $ 784,427,976 $ 796,219,365 $ 828,057,095 $ 851,956,134 $ 709,483,129 $ 1 Net of related debt 2 Years 2006 through 2013 have been restated  to reflect the adoption  of GASB Statement 6 5 Fiscal Year 125 Schedule 2 CITY OF COLUMBIA, SOUTH CAROLINA Changes in Net Position (unaudited) Last Ten Fiscal Years (accrual basis of accounting)2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Expenses Governmental Activities: General government 51,296,220 $ 35,358,581$ 37,178,955$ 41,427,388$ 53,883,052$ 35,131,885$ 10,877,738$ 17,577,215$ 8,049,816$ 8,050,355$ Judicial 2,044,037 2,167,922 2,131,608 2,364,353 2,360,125 2,697,932 2,447,105 2,601,919 2,615,194 2,749,136 Finance 1,360,869 1,982,964 2,474,302 2,647,689 1,986,467 2,235,981 2,348,922 2,051,555 1,726,481 1,886,778 Community development 3,396,497 3,904,174 4,012,966 4,192,966 4,017,482 4,365,542 4,760,642 5,855,023 5,787,850 5,791,062 Public safety 41,619,178 50,306,710 55,514,924 57,138,835 50,615,722 58,762,428 75,783,788 73,682,870 84,053,096 87,251,472 Parks and recreation 7,853,425 11,053,830 11,544,030 11,142,423 8,681,126 11,445,882 9,912,910 11,329,817 12,290,401 13,081,872 Public services 22,868,279 24,014,241 20,835,435 20,798,283 17,884,065 21,229,705 24,168,009 23,483,659 21,960,858 24,282,518 General services 5,791,988 3,382,092 4,018,322 3,919,228 3,598,839 3,924,144 4,193,394 4,540,814 4,933,285 5,269,511 Community promotions 7,946,764 9,926,673 9,744,750 8,321,723 8,990,842 7,843,093 11,899,487 11,915,733 12,872,657 10,660,364 Interest and other charges 2,275,464 4,081,910 4,459,396 3,824,725 3,413,317 3,763,963 2,366,916 3,027,411 2,955,994 4,491,254 Non departmental 1,147,254 3,433,419 11,904,001 1,694,525 1,936,148 2,644,113 2,401,408 2,455,260 2,515,184 2,141,310 Total governmental activities expense 147,599,975 149,612,516 163,818,689 157,472,138 157,367,185 154,044,668 151,160,319 158,521,276 159,760,816 165,655,632 Business-type Activities: Water and sewer facilities 80,189,801 83,849,936 85,963,177 85,747,245 103,530,941 107,934,251 106,594,059 107,410,948 100,389,819 113,273,814 Hydro-electric plant 1,010,483 1,020,132 3,037,803 5,989,066 3,310,407 1,615,222 1,547,093 1,544,804 3,012,376 2,422,544 Stormwater 1,683,476 3,382,264 3,383,853 3,148,296 4,117,396 5,169,916 4,595,847 4,692,223 5,668,819 4,814,419 Parking facilities 6,149,446 5,139,583 5,213,105 5,740,304 6,959,024 7,234,418 6,336,721 6,330,524 6,162,449 7,678,876 Transportation 31,363 30,320 433,773 - - - - - - - Redevelopment programs 901,209 774,935 3,611,769 960,872 4,704,419 606,265 1,966,452 734,283 848,141 835,812 Parks and recreation camps - - - - 248,705 268,639 305,939 271,271 324,209 306,219 Total business-type expenses 89,965,778 94,197,170 101,643,480 101,585,783 122,870,892 122,828,711 121,346,111 120,984,053 116,405,813 129,331,684 Total primary government expenses 237,565,753 $ 243,809,686 $ 265,462,169 $ 259,057,921 $ 280,238,077 $ 276,873,379 $ 272,506,430 $ 279,505,329 $ 276,166,629 $ 294,987,316 $ Program revenues Governmental Activities Charges for servicesGeneral government 10,872,952 $ 8,853,475$ 10,150,599$ 7,900,830$ 6,461,975$ 9,042,002$ 771,459$ 940,028$ 758,177$ 726,487$ Finance 24,697,055 29,319,287 28,351,828 28,850,804 26,306,361 27,706,315 28,328,937 30,505,679 31,467,056 37,837,666 Community development 2,079,932 2,138,058 1,623,669 1,478,580 1,112,332 1,052,569 721,425 793,431 832,159 799,663 Public safety 10,345,365 12,874,328 12,384,856 12,926,072 13,953,062 14,123,994 16,154,103 21,387,115 22,040,936 22,811,461 Parks and recreation 457,103 608,728 718,288 656,535 629,982 644,895 583,471 728,247 818,304 822,319 Public services 1,123,926 297,809 1,038,433 1,060,884 860,914 762,632 350,100 247,570 344,718 258,211 Non departmental 2,367,405 2,492,238 3,091,810 440,682 154,783 170,256 - - - - Operating grants and contributions 30,208,259 30,413,604 27,663,920 29,022,624 34,616,143 35,000,087 33,702,068 33,701,772 34,448,202 34,980,295 Capital grants and contributions 2,165,766 8,291,673 5,649,457 11,318,774 5,851,833 3,618,198 4,112,450 1,295,665 766,837 3,069,436 Total Governmental Activities Program Revenue 84,317,763 95,289,200 90,672,860 93,655,785 89,947,385 92,120,948 84,724,013 89,599,507 91,476,389 101,305,538 Business-type Activities Charges for servicesWater and sewer facilities 88,919,453 98,386,267 112,790,238 106,434,644 109,044,457 107,976,683 112,750,717 121,723,711 116,644,423 119,716,789 Hydro-electric plant 662,924 493,290 784,235 4,094,441 1,346,041 851,431 2,622,234 2,731,475 4,843,922 3,037,971 Stormwater 3,921,119 3,983,590 3,980,323 4,725,468 4,800,452 4,778,442 4,861,153 6,685,838 6,958,281 7,521,149 Parking facilities 6,165,672 6,135,182 6,916,956 6,265,683 5,765,996 6,441,140 6,520,866 6,864,323 6,495,064 7,145,520 Transportation - - - - - - - - - - Redevelopment programs 3,603,824 495,150 934,614 918,809 881,876 646,954 599,950 921,759 564,456 680,111 Parks and recreation camps - - - - 207,707 226,238 262,582 253,150 275,182 300,931 Capital grants and contributions 13,738,679 12,161,089 12,847,905 8,358,175 5,154,530 4,038,585 4,066,060 5,831,240 5,431,910 3,872,664 Total Business-type Activities Revenues 117,011,671 121,654,568 138,254,271 130,797,220 127,201,059 124,959,473 131,683,562 145,011,496 141,213,238 142,275,135 Total Primary Government Revenues 201,329,434 $ 216,943,768 $ 228,927,131 $ 224,453,005 $ 217,148,444 $ 217,080,421 $ 216,407,575 $ 234,611,003 $ 232,689,627 $ 243,580,673 $ Net (expense) revenue Governmental activities (63,282,212) $ (54,323,316)$ (73,145,829)$ (63,816,353)$ (67,419,800)$ (61,923,720)$ (66,436,306)$ (68,921,769)$ (68,284,427)$ (64,350,094)$ Business-type activities 27,045,893 27,457,398 36,610,791 29,211,437 4,330,167 2,130,762 10,337,451 24,027,443 24,807,425 12,943,451 Total Primary Government Net Expense (36,236,319) $ (26,865,918) $ (36,535,038) $ (34,604,916) $ (63,089,633) $ (59,792,958) $ (56,098,855) $ (44,894,326) $ (43,477,002) $ (51,406,643) $ Fiscal Year (Continued) 126 Schedule 2 (Continued ) CITY OF COLUMBIA, SOUTH CAROLIN A Changes in Net Position (unaudited ) Last Ten Fiscal Years (accrual basis of accounting ) 2006200720082009201020112012201320142015 General Revenues and Other Changes in Net Position Governmental Activities TaxesProperty taxes levied for general purposes 27,134,829 $ 32,028,856 $ 30,888,940 $ 35,042,668 $ 34,096,781 $ 35,775,181 $ 35,831,679 $ 34,462,835 $ 34,353,070 $ 34,178,067 $ Local Option Sales Tax 14,241,132 14,988,418 14,988,418 13,616,717 15,722,327 13,947,099 14,874,049 15,781,749 16,465,463 16,385,254 Sales tax - - 8,061,364 8,070,790 7,941,705 8,359,028 14,216,318 11,498,370 12,072,024 12,626,419 Alcoholic beverages 3,204,139 3,435,403 254,562 323,644 261,200 - - - - - Motor fuel 9,241 7,715 1,275 1,059 11,024 4,976 3,436 3,566 1,381 3,348 Miscellaneous 10,383 - - - - - - - - - State shared revenue - - 3,796,780 3,622,407 3,037,888 2,604,423 2,363,791 2,788,097 2,805,133 2,829,726 Investment income 2,478,194 4,670,483 3,481,543 1,282,669 417,459 1,068,106 537,702 26,022 89,001 163,175 Other (2,950,480) (7,426,558) (1,159,745) 1,891,037 - - 156,323 188,511 109,361 254,447 Transfers 5,832,436 8,736,903 2,788,348 8,580,988 4,838,083 6,126,263 7,826,063 9,739,875 9,031,340 8,889,857 Total Governmental Activities 49,959,874 56,441,220 63,101,485 72,431,979 66,326,467 67,885,076 75,809,361 74,489,025 74,926,773 75,330,293 Business-type Activities Investment income 5,536,084 6,715,293 8,194,017 5,589,423 5,146,089 3,389,883 2,899,062 231,513 1,158,475 1,226,558 Gain (loss) on sale of capital assets 22,080 (116,006) (228,140) 3,843,432 17,476 143,088 (2,609,759) 10,922,099 322,133 103,766 Transfers (5,832,436) (8,736,903) (2,788,348) (8,580,988) (4,838,083) (6,126,263) (7,826,063) (9,739,875) (9,031,340) (8,889,857) Total Business-type Activities (274,272) (2,137,616) 5,177,529 851,867 325,482 (2,593,292) (7,536,760) 1,413,737 (7,550,732) (7,559,533) Total Primary Government 49,685,602 $ 54,303,604 $ 68,279,014 $ 73,283,846 $ 66,651,949 $ 65,291,784 $ 68,272,601 $ 75,902,762 $ 67,376,041 $ 67,770,760 $ Change in Net Position Governmental activities (13,322,338) $ 2,117,904$ (10,044,344)$ 8,615,626$ (1,093,333)$ 5,961,356$ 9,373,055$ 5,567,256$ 6,642,346$ 10,980,199$ Business-type activities 26,771,621 25,319,782 41,788,320 30,063,304 4,655,649 (462,530) 2,800,691 25,441,180 17,256,693 5,383,918 Total Primary Government 13,449,283 $ 27,437,686 $ 31,743,976 $ 38,678,930 $ 3,562,316 $ 5,498,826 $ 12,173,746 $ 31,008,436 $ 23,899,039 $ 16,364,117 $ Fiscal Year 127 Schedule 3 CITY OF COLUMBIA, SOUTH CAROLIN A Fund Balances - Governmental Funds (unaudited) Last Ten Fiscal Years (modified accrual basis of accounting)2006 2007 2008 2009 2010 *** 2011 2012 2013 2014 2015 General Fund Reserved 1,126,443 $ 2,037,950$ 2,083,436$ 1,523,270$ -$ -$ -$ -$ -$ -$ Unreserved 22,394,019 21,687,149 10,463,453 5,300,625 - - - - - - Nonspendable - - - - 246,160 493,807 280,272 298,252 233,945 696,389 Restricted - - - - - - - - - 4,880,662 Committed - - - - - 2,126,479 - - 72,975 4,810,356 Assigned - - - - 1,538,430 - 190,599 2,159,860 3,627,442 3,654,109 Unassigned - - - - 13,668,226 11,424,065 14,972,196 22,380,727 25,059,965 22,352,224 Total general fund 23,520,462 $ 23,725,099 $ 12,546,889 $ 6,823,895 $ 15,452,816 $ 14,044,351 $ 15,443,067 $ 24,838,839 $ 28,994,327 $ 36,393,740 $ County Services Fund * Reserved - $ 445,261 $ - $ 445,261 $ - $ - $ - $ - $ - $ - $ Unreserved 1,046,348 (1,039,064) (862,306) (445,261) - - - - - - Nonspendable - - - - 35,374 4,378 14,536 71,775 56,905 64,376 Assigned - - - - 303,617 481,073 735,023 1,704,488 2,089,901 - Unassigned - - - - - - - - - (1,016,105) Total county services fund 1,046,348 $ (593,803) $ (862,306) $ - $ 338,991 $ 485,451 $ 749,559 $ 1,776,263 $ 2,146,806 $ (951,729) $ Columbia Parking Facilities Corporation Fund ** Unreserved - $ 4,784,113 $ 176,310 $ 1,068,371 $ - $ - $ - $ - $ - $ - $ All Other Governmental Funds Reserved 22,490,311 $ 17,534,858$ 7,670,827$ 16,065,853$ -$ -$ -$ -$ -$ -$ Unreserved 26,824,717 24,688,537 40,903,607 27,174,124 - - - - - - Nonspendable - - - - 6,943 19,080 16,433 5,000 5,000 5,000 Restricted - - - - 5,575 27,900,320 26,750,353 24,724,874 28,565,017 48,767,569 Committed - - - - - 3,864,378 - - - - Assigned - - - - 39,198,661 16,417,601 17,744,836 12,603,593 12,668,482 16,570,606 Unassigned - - - - (31,068) (14,080) (225,792) (152,559) - - Total all other governmental funds 49,315,028 $ 42,223,395 $ 48,574,434 $ 43,239,977 $ 39,180,111 $ 48,187,299 $ 44,285,830 $ 37,180,908 $ 41,238,499 $ 65,343,175 $ * The County Services Fund is considered a major fund, however, prior to f\ iscal year 2006 it had no fund balance.

** The Columbia Parking Facilities Fund became a major fund in fiscal year \ 2007 and was considered not to be a major fund in fiscal year 2010 and thereafter and was therefore included with the General\ Fund.

*** Beginning in fiscal year 2010, GASB 54 was implemented and the Governme\ ntal Fund balances are presented accordingly. Fiscal Year 128 Schedule 4 CITY OF COLUMBIA, SOUTH CAROLIN A Changes in Fund Balances - Governmental Funds (unaudited ) Last Ten Fiscal Years (modified accrual basis of accounting)2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Revenues:

General property taxes 41,546,505 $ 46,684,713$ 45,540,299$ 48,292,387$ 48,930,564$ 49,728,075 $ 50,496,237$ 50,644,107$ 50,884,644 $ 50,563,321$ Sales, hospitalit y and admission taxe s - - 8,061,364 8,070,790 7,941,705 8,359,028 14,216,318 11,498,370 12,072,024 12,626,419 License and permits 27,911,017 31,162,106 29,961,967 29,591,085 27,418,693 28,758,883 28,329,064 30,505,429 31,466,856 37,837,446 Inter governmental revenue 8,884,739 9,879,961 11,401,560 11,689,903 11,961,868 11,734,994 12,974,392 13,540,185 14,380,520 15,682,389 Charges for services 7,708,719 8,412,727 7,200,753 7,166,064 7,004,163 6,945,737 6,915,049 11,983,172 12,692,387 12,622,954 Fines and forfeitures 788,374 786,187 910,061 922,675 864,112 889,048 1,139,209 1,230,219 1,334,420 1,237,153 Federal revenues 7,364,346 6,296,982 8,143,042 15,391,313 16,205,021 12,019,998 7,905,552 5,452,069 3,942,851 3,434,392 State revenues 2,501,419 1,630,152 2,988,092 2,002,864 1,634,625 1,971,391 417,851 380,553 1,010,674 3,381,680 Count y revenues 20,548,995 27,546,699 18,674,699 20,093,357 21,084,511 21,626,422 25,013,335 26,530,590 27,742,117 25,652,150 Promotions 60,177 188,563 148,073 192,721 144,639 220,148 392,947 89,314 78,047 121,928 Confiscated funds 143,818 44,057 192,623 291,003 74,057 671,961 403,311 533,541 267,863 279,147 Cost recover y fees 3,200,000 3,200,000 2,735,000 2,270,000 2,270,000 - - - - - Interes t 1,869,260 3,512,130 3,451,240 1,282,669 417,458 1,068,106 539,145 26,386 89,104 163,266 Other revenues 6,999,423 4,991,201 5,158,653 4,789,277 3,355,276 8,279,105 2,970,687 1,688,232 1,415,305 1,738,208 Total revenues 129,526,792 144,335,478 144,567,426 152,046,108 149,306,692 152,272,896 151,713,097 154,102,167 157,376,812 165,340,453 Expenditures: Current:General government 46,732,884 30,136,559 30,673,629 32,129,878 32,931,032 33,091,576 6,222,202 6,644,937 7,109,837 7,184,601 Judicial 1,833,635 1,874,399 2,276,204 2,279,449 2,264,446 2,267,244 2,387,018 2,494,267 2,481,917 2,539,958 Finance 1,252,432 1,747,050 2,583,820 2,601,962 1,953,988 1,974,835 1,978,427 1,978,474 1,668,970 1,779,283 Plannin g and development 3,093,611 3,249,126 4,311,401 4,027,245 3,898,247 3,635,412 3,939,862 4,041,701 4,013,337 3,228,917 Public safety 37,555,878 42,204,031 56,694,907 54,665,050 48,782,688 52,391,812 73,865,581 73,409,740 76,120,091 78,340,960 Parks and recreation 6,857,319 8,959,135 11,172,199 9,889,048 9,133,653 9,135,419 9,349,169 9,486,586 10,075,127 10,525,782 Public services 21,433,541 20,907,423 21,341,887 19,926,127 17,257,530 19,094,868 20,637,713 20,561,911 17,476,210 16,958,389 General services 5,181,242 3,221,626 3,873,214 3,847,700 3,537,722 3,644,002 4,109,575 4,476,134 4,757,553 4,680,453 Communit y promotion 7,946,764 8,028,392 9,744,750 8,321,723 8,990,842 7,843,093 12,745,631 14,114,668 15,149,073 13,409,862 Nondepartmental 656,597 1,994,232 5,348,207 1,395,676 1,066,644 1,666,009 2,388,824 2,475,304 2,835,449 2,279,518 Other char ges 483,367 1,567,941 6,464,433 8,357 729,482 825,212 - 11,079 - - Debt service: Principal pa yment on bonds 8,168,439 7,559,169 16,741,585 9,144,966 5,205,034 5,655,000 7,205,000 8,260,000 8,989,992 9,326,791 Interest payments on bonds 1,626,467 3,804,084 4,838,956 3,899,408 3,444,234 3,776,747 4,069,181 2,778,884 2,909,808 3,172,846 Fiscal a gent char ges 5,208 87,360 4,072 27,424 8,040 9,040 8,913 4,975 4,587 5,461 Debt issuance costs - - - - - 276,774 2,122,842 550,421 243,479 904,310 Capital outla y:

Capital outlay: 6,027,774 25,409,592 11,293,382 16,773,619 9,410,916 6,081,858 13,338,436 11,293,853 8,425,531 20,507,125 Total expenditures 148,855,158 160,750,119 187,362,646 168,937,632 148,614,498 151,368,901 164,368,374 162,582,934 162,260,961 174,844,256 Excess of revenues over (under ) expenditures (19,328,366 ) (16,414,641 ) (42,795,220 ) (16,891,524 ) 692,194 903,995 (12,655,277 ) (8,480,767 ) (4,884,149 ) (9,503,803 ) Other financin g sources (uses ):

Transfers in 25,167,313 23,252,127 57,336,108 25,317,909 22,801,863 28,197,309 31,021,933 28,738,040 26,160,749 30,526,833 Transfers ou t (19,334,877 ) (31,432,694 ) (46,409,322 ) (22,775,520 ) (19,811,164 ) (31,220,308 ) (27,084,972 ) (24,286,578 ) (21,206,734 ) (29,926,951 ) Issuance of debt 1,500,000 22,014,258 13,143,195 2,429,249 - 9,375,000 5,575,000 6,375,000 7,315,000 26,175,000 Issuance of capital lease - - - - - - - - - 7,000,000 Premium on debt issued - - - - - 662,383 343,785 401,659 816,175 3,747,839 Refundin g bonds issued - - - 3,625,000 - 9,945,000 14,825,000 24,260,000 - - Pa yment to refunded bond escrow a gent - - - (3,540,000 ) - (10,262,899 ) (14,436,356 ) (23,915,684 ) - - Sales of assets 6,485,100 2,526,053 9,021,764 2,531,802 156,782 144,703 170,409 225,883 382,589 386,636 Total other financin g sources (uses ) 13,817,536 16,359,744 33,091,745 7,588,440 3,147,481 6,841,188 10,414,799 11,798,320 13,467,779 37,909,357 Net chan ge in fund balance (5,510,830 ) $ (54,897 ) $ (9,703,475 ) $ (9,303,084 ) $ 3,839,675 $ 7,745,183 $ (2,240,478 ) $ 3,317,553 $ 8,583,630 $ 28,405,554 $ Debt service as a percenta ge of noncapital expenditures 7% 8% 12% 9% 6% 6% 7% 7% 8% 8% Fiscal Year 129 Schedule 5 CITY OF COLUMBIA, SOUTH CAROLIN A Assessed Value and Estimated Actual Value of Taxable Property (unaudite\ d ) Last Ten Fiscal YearsAssessed Fiscal Value as a Yea r Percentage Total Ended Tax Assessed Estimated Assessed Estimated Assessed Estimated of Actual Direct June 30, Year Value Actual Value Value 1 Actual Value ValueActual Value Value Rate 2006 2005 286,201,640 $ 5,920,364,697 $ 102,642,841 $ 1,128,091,643 $ 388,844,481 $ 7,048,456,340 $ 5.52% 83.6 2007 2006 292,337,560 6,045,640,063 108,588,202 1,178,467,212 400,925,762 7,224,107,275 5.55% 99.0 2008 2007 308,221,850 6,240,046,571 112,847,593 1,353,108,906 421,069,443 7,593,155,477 5.55% 102.5 2009 2008 344,361,680 7,060,929,803 113,237,212 1,354,280,788 457,598,892 8,415,210,591 5.44% 106.3 2010 2009 386,566,370 7,933,397,705 111,006,869 1,308,826,126 497,573,239 9,242,223,831 5.38% 98.1 2011 2010 395,897,190 8,042,557,033 101,465,789 1,231,433,192 497,362,979 9,273,990,225 5.36% 98.1 2012 2011 399,357,360 8,240,197,133 105,214,744 1,241,437,184 504,572,104 9,481,634,317 5.32% 98.1 2013 2012 400,610,960 8,131,722,177 110,571,977 1,297,785,551 511,182,937 9,429,507,728 5.42% 98.1 2014 2013 404,719,630 8,212,659,856 110,356,777 1,315,979,478 515,076,407 9,528,639,334 5.41% 98.1 2015 2014 394,221,790 7,949,097,129 117,043,195 1,709,777,055 511,264,985 9,658,874,184 5.29% 98.1 Source: Richland County and Lexington County Auditor's offic e Note: Neither Richland County nor Lexington County assess tax exempt property . Total assessed value based upon assessment ratios set by state statutes . Reassessment took place in 2009 for Richland County and 2010 for Lexingt\ on County . 1The total taxable assessed value does not include Merchant's Inventory V\ alue of $6,667,290; however, it is included in the value used to calculate the legal debt limit. Real Property Personal Property Total 130 Schedule 6 CITY OF COLUMBIA, SOUTH CAROLIN A Direct and Overlapping Property Tax Rates (unaudited) Last Ten Fiscal Years (Rate per $1,000 of assessed value)Yea r Cit y Richland Count y Richland Count y Richland/Lexington Ended Direct Richland Lexington School Distric t School Distric t School Distric t June 30, Millage Count y Count y Number 1 Number 2 Number 5 2006 83.6 98.0 100.7 246.0 259.0 214.6 2007 99.0 98.3 104.1 260.8 273.5 231.1 2008 102.5 100.1 109.7 276.9 288.9 252.5 2009 106.3 104.0 114.2 283.2 301.3 261.5 2010 98.1 101.8 115.2 284.4 342.3 265.0 2011 98.1 102.8 109.7 288.4 343.3 266.3 2012 98.1 105.3 112.7 289.7 349.4 274.4 2013 98.1 84.2 118.5 296.1 367.5 274.4 2014 98.1 111.5 122.1 301.7 385.5 281.8 2015 98.1 121.2 125.0 300.9 406.0 288.3 Source: Richland County Auditor's office and Lexington County Auditor's \ office . 1Overlapping rates are those of county governments that apply to property\ owners with the City of Columbia.

Not all overlapping rates apply to all City property owners (e.g. the r\ ates for the counties and school district s apply only to the property owners whose property is located within the g\ eographical boundaries of that count y or school district). The majority of the property owners in the City of\ Columbia are within the geographical boundaries of Richland County and Richland County School District Number\ 1 . Counties School Districts Overlapping Rates 1 131 Schedule 7 CITY OF COLUMBIA, SOUTH CAROLIN A Principal Property Taxpayers (unaudited) Current Year and Nine Years AgoPercentage Percentageof Total of Total Taxable Taxable Taxable Taxable Assessed Assessed Assessed Assessed Taxpayer Value 1 Rank Value Value 2 Rank Value South Carolina Electric and Gas 15,191,700 $ 1 2.97% 12,211,150 $ 1 3.14% Bellsouth Telecommunications LLC 5,395,810 2 1.06% 9,022,470 2 2.32% GGP Columbiana Trust 3,001,520 3 0.59% 3,025,400 3 0.78% CW Meridian Inc. 2,700,000 4 0.53% - Bottling Group LLC 2,473,640 5 0.48% - Assembly Station Columbia LLC 2,234,910 6 0.44% - UNUM Group 2,211,040 7 0.43% - US REIF/MJW Capital Center Fee 2,181,610 8 0.43% - Main & Gervais LLC 1,810,360 9 0.35% - AG First Farm Credit Bank 1,769,580 10 0.35% - Cingular Wireless - 2,752,400 4 0.71% Main Street Associates - 2,334,900 5 0.60% Colonial Life and Accident - 2,067,976 6 0.53% Baker and Baker - 2,001,830 7 0.51% Time Warner Entertainment-Advanced - 1,741,620 8 0.45% Parkway Properties LP - 1,726,610 9 0.44% DDR MDT Harbison Court LLC - 1,070,880 10 0.28% 38,970,170 $ 7.62% 37,955,236 $ 9.76% Source: The assessed valuations for the taxpayers listed above were pro\ vided by either Richland or Lexington County Assessor's Office. 1 Total assessed valuation was $511,264,9852 Total assessed valuation was $388,844,481 2015 2006 132 Schedule 8 CITY OF COLUMBIA, SOUTH CAROLIN A Property Tax Levies and Collections (unaudited) Last Ten Fiscal YearsTaxes Levied Collections in Fiscal for the Percentage Subsequent Percentage Year Fiscal Year Amount of Levy Years Amount of Levy 2006 36,175,090 $ 34,021,898 $ 94.05% 1,216,010 $ 35,237,908$ 97.41% 2007 39,338,096 38,398,690 97.61% 1,011,744 39,410,434 100.18% 2008 43,166,262 42,270,086 97.92% 1,348,627 43,618,713 101.05% 2009 48,642,762 46,502,075 95.60% 1,322,443 47,824,518 98.32% 2010 49,514,889 46,637,386 94.19% 2,293,178 48,930,564 98.82% 2011 49,454,262 47,105,225 95.25% 2,622,850 49,728,075 100.55% 2012 50,201,476 48,564,952 96.74% 1,931,285 50,496,237 100.59% 2013 50,179,312 48,712,822 97.08% 1,058,584 49,771,406 99.19% 2014 50,554,312 49,826,060 98.56% 1,070,102 50,896,162 100.68% 2015 50,167,100 49,493,219 98.66% - 49,493,219 98.66% Sources: Richland County Finance Department and Lexington County Financ\ e Department Neither Richland County nor Lexington County report delinquent collectio\ ns by tax year. Collected within the Fiscal Year of the Levy Total Collections to Date 133 Schedule 9 CITY OF COLUMBIA, SOUTH CAROLIN A Ratios of Outstanding Debt by Type (unaudited) Last Ten Fiscal YearsTotal General Ta x Governmental Fiscal Obligation Increment Notes Capital Revenue Activities Year Bonds 1 Bonds 1 Payable Lease Bonds 1 Debt 2006 19,663,197 $ 14,245,754 $ 1,500,000$ 2,956,233$ 53,337,508$ 91,702,692 $ 2007 18,225,370 10,241,585 3,738,526 2,246,993 64,230,236 98,682,710 2008 28,885,543 3,760,000 4,658,191 1,518,235 61,888,539 100,710,508 2009 26,302,152 - 6,747,474 - 59,071,248 92,120,874 2010 23,688,812 - 6,009,142 - 56,324,804 86,022,758 2011 30,756,608 - 5,814,142 - 53,949,135 90,519,885 2012 32,020,777 - 5,619,142 - 50,811,284 88,451,203 2013 33,848,474 - 5,424,142 - 48,082,505 87,355,121 2014 37,494,897 - 5,229,142 - 43,580,000 86,304,039 2015 32,242,297 - 5,034,142 6,603,209 69,696,682 113,576,330 12005 through 2013 have been restated for the implementation of GASB 65 (Continued) 134 Schedule 9 (Continued) CITY OF COLUMBIA, SOUTH CAROLIN A Ratios of Outstanding Debt by Type (unaudited) Last Ten Fiscal YearsTotal Total Percentage Debt Fiscal Revenue Notes Notes Business-type Primary of Personal Per Year Bonds 1 Payable Payable Activities Government Income 2 Capita 3 2006 209,271,100 $ 1,140,000 $ 3,566,640$ 213,977,740 $ 305,680,432 $ 8.06% 2,604$ 2007 197,038,605 520,000 2,736,055 200,294,660 298,977,370 7.98% 2,571 2008 186,593,978 - 1,866,018 188,459,996 289,170,504 6.71% 2,276 2009 175,862,492 - 933,009 176,795,501 268,916,375 6.12% 2,117 2010 357,487,401 - - 357,487,401 443,510,159 9.84% 3,429 2011 345,878,897 - - 345,878,897 436,398,782 9.62% 3,376 2012 444,643,320 - - 444,643,320 533,094,523 11.51% 4,082 2013 435,639,889 - - 435,639,889 522,995,010 11.23% 3,972 2014 505,105,688 - - 505,105,688 591,409,727 12.50% 4,435 2015 493,735,898 - - 493,735,898 607,312,228 12.19% 4,599 12005 through 2013 have been restated for the implementation of GASB 65 2Personal income is disclosed on Schedule 16 3Population is disclosed on Schedule 16 Source for Personal Income: U.S Department of Commerce, Bureau of Econom\ ic Analysis Population Data: U.S. Census Other Business-Type Activities Debt 135 Schedule 10 CITY OF COLUMBIA, SOUTH CAROLIN A Ratios of General Bonded Debt Outstanding (unaudited) Last Ten Fiscal YearsGovernmental Percentage Activities Less: Amount of Estimated General Available in Actual Taxable Fiscal Obligation Debt Service Value of Per Year Bonds 1 Funds TotalProperty 2 Capita 3 2006 19,663,197 $ 4,073,137 $ 15,590,060 $ 0.22% 132.80$ 2007 18,225,370 1,196,198 17,029,172 0.24%146.45 2008 28,885,543 4,687,280 24,198,263 0.32%190.49 2009 26,302,152 1,288,755 25,013,397 0.30%196.91 2010 23,688,812 3,013,132 20,675,680 0.22%159.86 2011 30,756,608 4,940,502 25,816,106 0.28%199.70 2012 32,020,777 3,481,333 28,539,444 0.30%218.54 2013 33,848,474 3,512,035 30,336,439 0.32%230.37 2014 37,494,897 3,339,548 34,155,349 0.36%256.12 2015 32,242,297 3,978,932 28,263,365 0.29%214.01 12006 through 2013 have been restated for the implementation of GASB 65 2Estimated value of property is disclosed on Schedule 5 3Population is disclosed on Schedule 16 General Bonded Debt 136 Schedule 11 CITY OF COLUMBIA, SOUTH CAROLINA Direct and Overlapping Governmental Activities Debt (unaudited) June 30, 2015Assessed Net Governmental Estimated Total Value Activities Percentage Amount Assessed Within the Debt Applicable to Applicable to Jurisdiction Value Cit y Outstandin g 1 the Cit y the Cit y Direct: City of Columbia 511,264,985 $ 511,264,985 $ 113,576,330 $ 100.00% 113,576,330 $ Overlapping Counties:Richland County 1,498,404,260 489,445,315 93,695,000 32.66% 30,604,943 Lexington Count y 1,183,327,270 21,819,670 45,590,386 1.84% 840,653 School Districts: Lexington Richland SD 5 182,010,350 18,606,860 226,774,000 10.22% 23,183,034 Richland School District One 798,482,136 431,033,327 482,955,000 53.98% 260,706,772 Richland School District Two 517,911,774 39,805,128 462,350,000 7.69% 35,534,819 Special Districts: Airport District 1,498,404,260 489,445,315 8,070,000 32.66% 2,636,020 Riverbanks Park District 2,681,731,530 511,264,985 34,760,000 19.06% 6,626,902 Total Overlapping Debt 360,133,143 Total Direct and Overlapping Debt 473,709,473 $ Source: Richland County Treasurer, Lexington County Treasurer, Richland \ County Auditor and Lexington County Audito r 1 The estimated amount of overlapping debt applicable to the City is dete\ rmined by computing the percentage of property fo r each government that lies within the City. The resulting percentage is \ then multiplied by the amount of governmental activities debt of each government. 137 Schedule 12 CITY OF COLUMBIA, SOUTH CAROLINA Legal Debt Margin (unaudited) Last Ten Fiscal YearsRatio of Net Debt Fiscal Debt Net Debt Legal Debt Outstanding to Year Limit Outstanding 1 Margin the Debt Limit 2006 31,640,942 $ 18,830,000 $ 12,810,942 $ 59.51% 2007 32,607,444 17,430,000 15,177,444 53.45% 2008 34,218,939 28,155,000 6,063,939 82.28% 2009 37,162,628 25,695,000 11,467,628 69.14% 2010 40,339,242 23,125,000 17,214,242 57.33% 2011 40,322,422 30,055,000 10,267,422 74.54% 2012 40,899,152 31,505,000 9,394,152 77.03% 2013 41,428,018 33,515,000 7,913,018 80.90% 2014 41,564,012 35,680,000 5,884,012 85.84% 2015 41,434,582 30,665,000 10,769,582 74.01% Source: Richland County Auditor's Office and Lexington County Auditor's \ Office 1 Excludes debt not applicable to the limit.

Legal Debt Margin Calculation for the Year Ended June 30, 2015:

Assessed value in Richland County 489,445,315 $ Assessed value in Lexington County 21,819,670 Subtotal 511,264,985 Business inventory 1987 assessed value 6,667,290 Total assessed value 517,932,275 8.00% Debt Limit 41,434,582 Net debt outstanding subject to the debt limi t 30,665,000 Legal debt margin as of June 30, 2015 10,769,582 $ 138 Schedule 13 CITY OF COLUMBIA, SOUTH CAROLINA Certificates of Participation Debt Coverage (unaudited) Last Ten Fiscal YearsCOPS Fiscal Allowable Debt Year Revenues 1 Principal Interest Total Coverage 2006 11,478,171 $ 2,411,813 $ 2,585,435$ 4,997,248 $ 2.3 2007 11,945,776 2,080,000 2,455,630 4,535,630 2.6 2008 13,375,022 2,175,000 2,365,080 4,540,080 2.9 2009 13,026,184 2,250,000 2,274,105 4,524,105 2.9 2010 12,519,790 2,335,000 2,191,986 4,526,986 2.8 2011 12,875,743 2,480,000 2,012,205 4,492,205 2.9 2012 13,760,410 2,635,000 1,976,483 4,611,483 3.0 2013 14,655,101 3,700,000 1,720,250 5,420,250 2.7 2014 15,260,239 3,225,000 848,193 4,073,193 3.7 2015 16,283,694 3,300,000 772,230 4,072,230 4.0 1 As defined in the bond documents. Debt Service Requirement 139 Schedule 14 CITY OF COLUMBIA, SOUTH CAROLIN A Water and Sewer Department Schedule of Revenue Bond Coverage (unaudited) Last Ten Fiscal YearsCurrent Net Revenue Revenue Fiscal Allowable Operating Available for Net Swap Bond Year Revenues 1 Expenses 2 Debt Service Principal Interest 3 Payments 4 Total Coverage 2006 92,726,369 $ 51,852,947 $ 40,873,422 $ 14,915,000 $ 7,052,737 $ - $ 21,967,737 $ 1.9 2007 101,657,409 53,436,775 48,220,634 9,275,000 7,889,584 - 17,164,584 2.8 2008 118,014,221 61,347,698 56,666,523 9,865,000 7,419,673 - 17,284,673 3.3 2009 110,181,495 58,541,111 51,640,384 10,410,000 6,880,982 - 17,290,982 3.0 2010 113,389,385 76,393,887 36,995,498 11,295,000 7,673,174 (49,865) 18,918,309 2.0 2011 110,749,377 79,584,775 31,164,602 11,905,000 12,724,467 (56,216) 24,573,251 1.3 2012 115,271,396           80,373,777 34,897,619 12,150,000 13,873,881 (29,306) 25,994,575 1.3 2013 121,878,086           74,400,785 47,477,301 6,465,000 17,047,580 (828) 23,511,752 2.0 2014 117,924,265           66,189,697 51,734,568 8,810,000 18,790,180 (1,811) 27,598,369 1.9 2015 118,178,523           67,105,722 51,072,801 8,095,000 20,219,738 (7,406) 28,307,332 1.8 1 Represents total operating revenues as well as all nonoperating revenues\ and investment income.2 Represents total operating expenses less depreciation expense.3 Includes capitalized interest.4 The City has a pay fixed interest rate swap associated with the Series \ 2009 revenue bond. Debt Service Requirement 140 Schedule 15 CITY OF COLUMBIA, SOUTH CAROLINA Parking Department Schedule of Revenue Bond Coverage (unaudited) Last Ten Fiscal YearsCurrent Net Revenue Revenue Fiscal Allowable Operating Available for Bond Year Revenues 1 Expenses 2 Debt Service Principal Interest 3 Total Coverage 2006 5,091,104 $ 404,645 $ 4,686,459 $ 440,000 $ 2,455,384 $ 2,895,384 $ 1.6 2007 4,859,393 524,835 4,334,558 460,000 2,455,384 2,915,384 1.5 2008 5,765,193 1,046,949 4,718,244 740,000 2,429,153 3,169,153 1.5 2009 6,190,809 1,571,323 4,619,486 780,000 2,388,322 3,168,322 1.5 2010 4,549,663 1,616,796 2,932,867 825,000 2,344,732 3,169,732 0.9 2011 4,365,608 760,577 3,605,031 870,000 2,298,059 3,168,059 1.1 2012 4,487,992              863,010 3,624,982 310,000 2,152,618 2,462,618 1.5 2013 6,911,985              3,299,708 3,612,277 970,000 2,184,910 3,154,910 1.1 2014 6,592,455              3,073,503 3,518,952 1,030,000 2,128,167 3,158,167 1.1 2015 7,040,165              3,576,578 3,463,587 1,065,000 2,000,288 3,065,288 1.1 1 Represents total operating revenues as well as all nonoperating revenues\ and investment income less revenues from parking fines and late fees.

Definition of allowable revenues was revised during fiscal years 2006 an\ d 2013. 2 For the years 2006 and 2007 represents total operating expenses less d\ epreciation expense less operating expenses paid with revenues from parking fines and late fees. Definition of current operating expenses wa\ s revised during fiscal years 2006 and 2013. 3 Includes capitalized interest Debt Service Requirement 141 Schedule 16 CITY OF COLUMBIA, SOUTH CAROLINA Demographic and Economic Statistics (unaudited) Last Ten Fiscal YearsPer Capita Public Personal Personal School Unemployment Year Population 1 Income 2 Income Enrollment 3 Rate 4 2006 117,394 3,792,765,352 $ 32,308 $ 24,060 6.20% 2007 116,278 3,748,570,164 32,238 23,658 5.10% 2008 127,029 4,311,745,347 33,943 24,179 5.80% 2009 127,029 4,395,203,400 34,600 24,590 9.80% 2010 129,333 4,506,867,051 34,847 23,119 9.20% 2011 129,272 4,536,930,112 35,096 22,898 10.50% 2012 130,591 4,632,454,543 35,473 22,475 8.50% 2013 131,686 4,655,100,100 35,350 24,166 8.00% 2014 133,358 4,730,608,334 35,473 24,171 5.50% 2015 132,067 4,980,378,637 37,711 24,320 6.30% Source of data: 1U.S. Census Bureau 2 U.S. Census Bureau 3 S.C. State Department of Education 4 S.C.  Department of Employment  and Workforce 142 Schedule 17 CITY OF COLUMBIA, SOUTH CAROLINA Principal Employers Current Year and Nine Years AgoPercentage Percentage to Total Cit y to Total Cit y Employer Employees Rank Employment 3 Employees Rank Employment Palmetto Health 9,400 17.67% 9,300 2N/ A University of South Carolina 8,400 26.86% N/ A 3 Blue Cross Blue Shield of South Carolina 6,459 35.27% 7,200 4N/ A Wal-Mart 5,800 44.73% 4,500 5N/ A SC Department of Transportation 4,318 53.52% N/ A 6N/ A Richland County School District One 4,229 63.45% N/ A 7N/ A SC Department of Mental Health 3,917 73.20% N/ A 8 SC Department of Health and Environmental Control 3,500 82.86% N/ A 9N/ A City of Columbia, South Carolina 2,438 91.99% N/ A N/ A AT&T 2,400 101.96% 2,300 10 State of South Carolina N/ A 1N/ A Source of data: 1 South Carolina Department of Employment and Workforce 2 2005 Central Midlands Council of Government Survey 3 122,507 total workers were reported working in Columbia, South Carolina,\ per the 2010 PHC-T-40 Estimated Daytime Population and Employment - Residence Ratios: 2000, published by the \ US Census Bureau N/A Data not available 2015 1 2006 2 143 Schedule 18 CITY OF COLUMBIA, SOUTH CAROLIN A Full-Time Equivalent Employees By Function/Program Last Ten Fiscal Years2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Function/Program General government 81.25 84.30 93.25 100.00 99.00 93.97 99.00 101.00 105.00 104.25 Judicial 40.00 42.00 41.00 36.00 35.00 36.00 37.00 36.00 37.00 37.00 Finance 50.00 54.00 58.00 57.00 56.00 51.50 53.50 51.50 71.50 79.50 Development services and planning 59.00 62.00 64.30 56.00 63.00 63.00 63.00 63.00 63.00 43.00 Public safet y 689.00 735.00 743.50 757.50 757.50 747.50 757.50 770.00 770.50 792.50 Parks and recreation 131.75 155.80 155.75 156.00 149.00 149.00 149.00 149.00 149.00 149.00 Public works 296.00 295.00 301.00 303.00 275.00 269.00 270.00 269.00 268.00 269.00 General services 10.00 10.00 11.00 11.00 11.00 11.00 15.00 14.00 14.00 17.00 Fleet services 47.00 47.00 47.00 47.00 41.00 44.00 46.00 46.00 48.00 48.00 Risk Managemen t 3.00 3.00 3.00 3.00 3.00 2.00 2.00 2.00 2.00 2.00 County fire 154.00 184.00 198.00 233.00 236.00 236.00 235.00 235.50 235.50 235.50 County emergency communication s 36.00 36.00 35.50 35.50 38.50 38.50 38.50 45.50 45.00 45.00 Economic & Community developmen t 48.00 46.00 53.04 51.20 43.50 44.63 39.60 36.50 41.50 44.50 Parking 37.00 41.90 41.66 46.00 42.00 41.00 41.00 42.00 43.00 44.25 Utilities & Engineering 507.00 489.00 489.00 499.80 482.50 501.90 498.90 519.00 504.00 504.50 Summer Programs 21.50 25.00 21.00 21.00 18.50 20.00 24.50 24.50 23.50 23.50 Total 2,210.50 2,310.00 2,356.00 2,413.00 2,350.50 2,349.00 2,369.50 2,404.50 2,420.50 2,438.50 Source: City's Human Resource departmen t Years 2006-2014 have been re-stated to reflect budgeted position s Full-time Equivalent Employees as of June 30, 144 Schedule 19 CITY OF COLUMBIA, SOUTH CAROLIN A Operating Indicators By Function/Program Last Ten Fiscal Years2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Function/Program Public Safety Police physical arrests N/ A N/A N/A 6,418 6,734 7,259 8,024 10,652 5,301 5,658 Citations written 25,741 N/ A N/A 34,357 29,522 25,985 30,996 33,111 37,307 32,497 911 call volume 997,111 998,628 1,021,541 1,032,664 1,171,433 1,197,141 1,102,640 1,317,008 1,222,436 1,096,117 Fire calls answered 22,860 27,025 28,982 28,746 30,208 30,629 31,265 31,240 35,785 34,500 Number of inspections 1,740 2,049 3,630 4,410 6,943 7,911 7,726 6,261 5,292 6,482 Sanitation Refuse collected (in tons) 99,875 97,616 96,140 90,222 63,507 57,903 N/ A 43,157 51,106 43,924 Recyclables collected (in tons) 3,262 3,739 3,779 3,538 3,932 4,223 N/ A 3,867 4,591 4,021 Fleet Management Fleet maintained 2,664 2,934 3,164 3,329 3,668 3,925 4,055 2,802 2,893 3,005 Fleet workdays 13,074 13,909 13,385 13,747 13,336 13,309 12,901 12,608 12,052 12,048 Streets and highways Potholes repaired 1,168 1,505 1,120 2,757 1,524 1,416 920 1,231 1,453 1,598 Water Number of service connections 116,857 127,196 124,414 125,846 134,910 140,721 136,220 137,701 140,009 139,990 Average daily consumption (in millions of gallons) 0.454 0.360 0.349 0.436 0.352 0.315 0.320 0.440 0.458 0.449 Sewe r Number of service connections 61,248 65,848 67,786 68,550 74,865 69,199 69,508 67,698 1 60,239 59,677 Average daily treatment (in millions of gallons) 0.142 0.139 0.127 0.136 0.139 0.134 0.152 0.169 0.189 0.182 Economic developmen t Permits issued 6,023 5,697 4,667 4,404 4,204 4,129 4,181 4,950 4,262 5,438 Building inspections 12,355 11,932 11,612 9,472 10,544 40,018 10,277 15,735 14,514 10,025 1During the year ended June 30, 2013, the City of Columbia sold a portion\ of its sewer system to a private contractor.

Source: Various City departments Year Ended June 30, 145 Schedule 20 CITY OF COLUMBIA, SOUTH CAROLIN A Capital Asset Statistics By Functio n Last Ten Fiscal Years2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Function/Program Police Police stations 24 24 22 14 14 14 16 10 12 13 Patrol units N/ A N/A N/A N/A N/A N/A N/A 205 238 296 Vehicles 138 155 206 233 244 305 371 358 395 483 Fire Fire stations 11 11 11 12 12 12 12 12 12 12 Vehicles 144 180 194 210 215 219 236 251 270 270 Public works Vehicles 376 422 457 486 518 553 603 600 600 626 Streets (miles) 219.00 219.00 219.00 219.00 219.00 220.00 220.00 275.00 275.00 275.00 Sidewalks (miles) 120.25 120.45 120.45 120.45 120.45 120.45 139.56 139.46 139.46 139.50 Traffic signals 261 261 262 262 262 262 265 364 364 331 Street lights 9,030 9,067 9,250 9,437 9,859 10,190 10,325 11,724 11,363 11,483 Parks and recreation Parks - acreage 597.85 597.85 597.85 600.00 600.00 600.00 600.00 600.00 600.00 600.00 Park facilities 58.00 58.00 58.00 59.00 59.00 59.00 60.00 60.00 60.00 60.00 Tennis courts 54.00 54.00 54.00 54.00 54.00 54.00 54.00 57.00 55.00 55.00 Swimming pools/splash pads 3.00 3.00 3.00 4.00 4.00 4.00 4.00 15.00 16.00 16.00 Playground 30.00 30.00 30.00 30.00 30.00 30.00 31.00 31.00 31.00 31.00 Parking Garages 6 7 7 8 8 8 9 9 8 8 Lots 5 5 5 5 5 5 5 5 4 5 Metered spaces 4,333 4,604 4,602 4,703 4,736 4,728 4,704 4,502 4,487 4,198 Stormwate r Storm drains (miles) 137.00 137.00 137.00 137.00 137.00 137.00 137.00 254.00 254.00 366.00 Vehicles N/ A 54 55 55 70 67 69 63 64 68 Wastewater Sanitary sewer (miles) 992.70 1,002.50 1,036.90 1,047.97 1,053.75 1,100.00 1,108.50 1,059.00 1,077.00 1,109.00 Vehicles 143 161 183 200 212 278 331 300 277 278 Treatment plants 1 1 1 1 1 1 1 1 1 1 Solid Waste Vehicles 62 73 85 94 95 117 128 130 125 127 Water Water lines (miles) 1,837.70 1,887.10 1,935.69 1,954.68 1,966.58 1,966.58 1,978.45 2,250.00 2,301.00 2,356.00 Vehicles 138 178 209 228 237 256 281 291 285 298 Fire hydrants 6,189 3,063 3,307 5,200 5,300 5,300 5,350 5,450 4,300 4,390 Treatment plants 2 2 2 2 2 2 2 2 2 2 Source: Various City departments Vehicle data includes both licensed and unlicensed vehicles Year Ended June 30, 146