MANAGEMENT’S DISCUSSION AND ANALYSIS

Governmental Fund Balance

At the end of the fiscal year 2012, the combined ending fund balances for the City’s Governmental Funds were $5,802,185. Of the total fund balance, $5,549,970 is available as working capital for current spending in accordance with the purposes of the specific funds. The remainder of fund balance is designated to indicate that it is not available for new spending because it is committed for the following purposes: reserved as non-spendable $252,215 (pre-paid items and inventory).

The General Fund’s fund balance for the fiscal year ending 2012 was $3,678,148, which indicates an increase in fund balance over previous year by $628,217. The increase in General Fund’s fund balance is due to reduction in personnel through attrition, the first few participants in the voluntary early retirement incentive program (VERIP), and improvement in local option sales tax and other taxes. The fund balance of the City’s Impact Fee Fund decreased by ($410,127) during the fiscal year to an ending fund balance of $921,836. The SPLOST fund has decreased by ($273,153) due to a few projects underway, which are currently listed as construction in progress. Information provided in Table 4 is from the Governmental Funds Balance Sheet on page 15.

TABLE 4 – Governmental Fund Balance

Proprietary Net Assets

At the end of the fiscal year 2012, the combined net assets of the City’s Proprietary Funds were $14,438,661. The most significant event that took place in the Stormwater Fund was the completion of the Pye Lake Tributary drainage project.

General Fund Budgeting Highlights

 The City’s budget is prepared according to Georgia law. The most significant budget fund is the General Fund.

 For the General Fund, the actual revenues of $9,642,409 were over the final budgeted amount of $9,451,784 by $190,625. This difference was primarily due to increase in revenues for sales taxes and other taxes.

 The actual expenditures of $9,015,964 were less than the final budgeted amount of $9,364,755 by $348,791. This difference was primarily due to vacant personnel positions.