MANAGEMENT’S DISCUSSION AND ANALYSIS

General Fund Budgeting Highlights (Continued)

 The original budget had to be increased by $95,542 due to the change in revenues. Property Taxes were originally budgeted as $2,066,950 with actual revenues of $2,101,877 for a total increase of $34,927, Other Taxes were originally budgeted as $3,187,897 with actual revenues of $3,496,794 for a total increase of $308,897, Licenses and Permits were originally budgeted as $223,200 with actual revenues of $229,816 for an increase of $6,616, and Fines and Forfeitures were originally budgeted as $1,300,000 with actual revenues of $1,090,230 for a decrease of ($209,770). With the downturn in the economic conditions and subsequent slow recovery conditions have rendered the historical data and past trends irrelevant, forecasting has become difficult.

Capital Assets and Debt Administration

At the end of fiscal year 2012, the City had $95,881,509 invested in capital assets, which is a decrease over FY2011 of ($1,882,002). Table 5 shows fiscal years 2012 and 2011 balances of the Capital Assets, net of depreciation as presented on pages 40 through 42 under Note 7 – Capital Assets.

TABLE 5 – Capital Assets, Net of Accumulated Depreciation

Debt

The amount of outstanding debt of $18,840,000 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 $3,177,703 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 paid off all lease purchase agreements. Table 6 – Outstanding Long-Term Liabilities reflects information provided on page 47 under Note 8 – Long-Term Debt.