MANAGEMENT’S DISCUSSION AND ANALYSIS

Governmental Fund Balance

At the end of the fiscal year 2014, the combined ending fund balances for the City’s Governmental Funds were $8,486,516. Of the total fund balance, $8,313,819 is available as working capital for current spending in accordance with the purposes of the specific funds. The remainder of the fund balance, $172,697, is not available for new spending because it is considered non-spendable (pre-paid items and inventory).

The General Fund’s fund balance for the fiscal year ending 2014 was $6,533,474, which indicates an increase in fund balance over the previous year by $1,682,643. The increase in General Fund’s fund balance is due to reduction in personnel through attrition, 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 increased by $377,066 during the fiscal year to an ending fund balance of $1,424,360. The SPLOST fund has decreased by ($788,696) due to the fact that no additional revenues are coming into the fund and we are completing projects as the program nears its end. Information provided in Table 4 is from the Governmental Funds Balance Sheet on page 16.

TABLE 4 – Governmental Fund Balance

Proprietary Net Position

At the end of the fiscal year 2014, the combined net position of the City’s Proprietary Funds were $13,662,892. The most significant event that took place in the Water and Sewer Funds was the increased revenues in sewer proportionate share and connection fees for new construction.

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 $10,333,483 were more than the final budgeted amount of $9,778,769 by $554,714. This difference was primarily due to increases in property taxes and fines and forfeitures.

 The actual expenditures of $8,568,615 were less than the final budgeted amount of $9,426,317 by $857,702. This difference was primarily due to vacant personnel positions and the Volunteer Early Retirement Incentive Program (VERIP).