Simpsonville audit finds no material misstatements; council hears fund‑balance, pension and debt updates

Auditors delivered a clean opinion on Simpsonvilles 2024 financial statements and reported a stronger fund balance, Mayor Shoemaker said the report reflected well on city staff.

David Phillips of audit firm Green Finney Cawley told the City Council on Jan. 14 that the firm issued an "unmodified opinion," which he described as "a clean opinion," and that auditors were not aware of any material misstatements in the citys financial statements.

The presentation emphasized the citys general fund strength: total fund balance increased by about $4,000,000 year over year, and the city reported roughly $21,800,000 in unassigned general fund balance. Phillips said total revenues were about $26,300,000 and expenditures about $21,900,000 for the year.

Phillips and council members discussed revenue composition. Phillips said approximately $14,100,000 of the roughly $19.7 million in reported tax revenues came from property taxes, a figure that includes residential, commercial and industrial property and multifamily units. Council member Pinkerton asked for further detail on how much of that total is borne by homeowners; Phillips said staff could obtain county reports to disaggregate those categories.

The audit review covered major special funds. The accommodations and hospitality tax fund held about $22,000,000 at year end, including roughly $7,000,000 restricted for tourism and about $13,800,000 of unspent bond proceeds tied to ongoing projects. Phillips said the city added roughly $2,200,000 to that fund during the year, with revenues near $5,900,000 and expenditures about $3,700,000. The Simpsonville Municipal Facility Corporation fund had a small remaining balance and showed significant prior project spending; the capital projects fund held about $5,000,000.

On enterprise funds, Phillips reported the sewer fund had a net position of about $23,300,000, an increase of roughly $2,600,000 from the prior year; the public works fund had about $2,200,000 in net position with a slight decrease year over year.

The auditors also reviewed pension disclosures required by GASB and noted the citys proportionate share of the state cost‑sharing pension liability was roughly $18,100,000. Phillips described recent contribution rate increases at the state level and noted employees also contribute to the plan. Council member Burrier asked about the liability in the context of other states experience; Phillips said funding levels vary by state and that improving funded status could affect future contribution rates.

On debt, Phillips explained the city's legal debt limit is calculated as 8% of assessed property value; he said Simpsonvilles legal debt limit is about $11,700,000 and the city had roughly $200,000 outstanding against that limit. Debt service for fiscal year 2025 was approximately $2,900,000.

Council members also asked about impact fees as a potential revenue source. Phillips and a staff member clarified that state law restricts impact fees to the proportionate share of impact attributable to new development; the fees cannot be used to pay the entire cost of a capital asset that serves a broader population unless the portion attributable to new development is calculated and charged accordingly.

Mayor Shoemaker publicly thanked Director Farino and city staff for the work that produced the clean audit. The meeting included no auditor findings in the single audit of federal programs (ARPA and other federal awards) and no management letter issues were reported.

Votes at a glance: The council approved the minutes from the Dec. 10, 2024 meeting "as written." No corrections were offered and the chair declared the minutes approved.

The audit presentation and the councils questions primarily clarified the composition of revenues, the citys available fund balances, the limits on borrowing and the restrictions on impact fee spending; council members requested county reporting detail on property‑tax composition for follow up.