MANAGEMENT’S DISCUSSION AND ANALYSIS

TABLE 5 – Capital Assets, Net of Accumulated Depreciation

Debt

The amount of outstanding debt of $19,405,000 in Water and Sewerage Revenue Bonds is to refinance the cost of a surface water supply, a water treatment and transmission facility, a new gravity sewer line to connect the new Fayette Community Hospital to the sewer collection system and to finance a new Wastewater Plant Expansion. The Water and Sewer Fund refinanced a loan to the Georgia Environmental Facilities Authority of the State of Georgia by issuing 2010 Series Revenue Bonds in the amount of $9,870,000. The amount of outstanding debt in Governmental Activities is $3,384,854 in Certificates of Participation (COPS) with Georgia Municipal Association (GMA) to finance the cost of construction and furnishing of the new Law Enforcement Center. The General Fund has lease purchase agreements in the amount of $219,955 as of July 31, 2011. Table 6 – Outstanding Long-Term Liabilities reflects information provided on page 46 under Note 8 – Long-Term Debt.