MANAGEMENT’S DISCUSSION AND ANALYSIS

Current Issues

 Economic Factors and Next Year’s Budget and Rates

Today, the population for the City of Fayetteville is estimated to be 15,945. This growth has been reflected in the City’s General Fund revenues, which have increased from $3,840,328 in 1994 to $9,200,765 in 2011. The economic condition and outlook of the City has declined due to lack of residential construction, frugal purchasing by City residents, and loss of jobs and employment in our area.

We are beginning to see a much slower growth in revenues, particularly property taxes and franchise fees and building related fees. Our local option sales taxes are decreasing, which is a direct reflection of our area’s recession. While our revenues have begun to slow, our operating expenses have continued to increase, mainly due to providing competitive salaries and increasing health insurance benefits. Additionally, our debt service expenses have increased as a result of much needed equipment replacement and facility upgrades.

Staff has developed a Five-Year Plan that includes Workload Indicators and Trend Analysis to assist the City in long-range financial planning and forecasting. This plan is developed with input from each department and is updated annually to reflect any changing needs. This plan is a very conservative forecast of the City’s financial resources and departmental needs to maintain our existing service levels to the community. The Mayor and Council and staff will need to continue to closely evaluate the service and staffing levels on an ongoing basis to ensure that adequate personnel resources and financial resources are available to achieve the desired service levels.

Contacting the City’s Financial Management

This financial report is designed to provide our citizens, taxpayers, investors and creditors with a general overview of the City’s finances and to show the City’s accountability for the money it receives. If you have questions about this report or need additional financial information, please contact Lorri Lynn Robinson, Director of Finance and Administrative Services, City of Fayetteville, 240 Glynn Street South, Fayetteville, Georgia 30214, 770-461-6029, or lrobinson@fayetteville-ga.gov