PAGE 12 - POPULAR ANNUAL FINANCIAL REPORT FISCAL YEAR 2020 Budget vs. Actual/Millage Rate Every year, the City adopts an annual operating budget based on priorities articulated in the strategic plan. There are two main types of funds, governmental and enterprise funds. The general fund, the largest governmental fund, is financed primarily by property taxes and business licenses. The enterprise funds electric, water, sewer, and stormwater; are mainly financed through charges for service. In comparing budget and actual expenses, it is important to note that many of the differences are brought up through A Parks, Recreation & Tourism employee at Cherry Park. different accounting methods— budgetary outcomes are calculated on a cash or modified accrual basis rather than from the pure accrual basis required under GAAP for accounting records. In comparing the FY2020 budget to actual amounts for most general fund accounts, revenue sources were within $400,000 of the budgeted amount – with expenses exceeding the planned budgeted amount by roughly another $400,000. The difference between budget and actual amounts were less than $1,000,000.
The FY2020 budget also included funds for City initiatives such as the expansion of the fare free transit system introduced in FY2019. Knowledge Park continued to be a high priority in FY2020, creating expenses related to Textile TIF financing as well as a new parking system needed for the 139,000 projected visitors to the Rock Hill Sports and Event Center. Other expenses related to COVID-19, such as increased employee health claims and liability for paid time off extended to employees, were unusual but a necessary investment in Rock Hill’s primary asset—its employees.
Millage Rate The City takes pride in keeping property tax rates reasonable—balancing the needs of the community and being good stewards of the public dollar. The City’s millage rate has remained flat at 93.5 mills for ten years. Over the last twenty years, the tax millage rate dropped 12%. The City has kept millage rates low due to the City’s priority of financial responsibility for tax dollars and leveraging of the growth of the community.
