CITY OF FAYETTEVILLE, GEORGIA

GOVERNMENTAL ACTIVITIES TAX REVENUES BY SOURCE LAST TEN FISCAL YEARS (ACCRUAL BASIS OF ACCOUNTING)

(1) The City began collecting Special Purpose Local Option Sales Taxes from the County at the end of fiscal year 2005.

(2) Beginning in 2009, Special Purpose Local Option Sales Taxes received from the County were reclassified as Capital Contributions.

CITY OF FAYETTEVILLE, GEORGIA

FUND BALANCES OF GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (MODIFIED ACCRUAL BASIS OF ACCOUNTING)

(1) The increase of fund balance is due to the collection of special purpose local option sales taxes that began at the end of fiscal year 2005.

(2) Prepaid expenditures.

(3) The City adopted and implemented GASB 54 during fiscal year 2011.

CITY OF FAYETTEVILLE, GEORGIA

CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS

LAST TEN FISCAL YEARS

(MODIFIED ACCRUAL BASIS OF ACCOUNTING)

(1) The increase in debt service interest expenditure is due to the COPS issue.

(2) The Main Street function has been moved from the General Fund to the Main Street Tourism Association.

(3) Capital outlay has decreased due to the completion of the Law Enforcement Center

(4) The decrease in impact fees is due to the decline in new construction during fiscal year 2007

(5) The decrease in impact fees and permits is due to the continual decline in new construction during fiscal year 2008,

2009 and 2010.

(6) The City received a federal grant for Downtown Pedestrian Improvements

(7) During fiscal year 2008, the City experienced an increase in jail population, therefore reducing the collection of fines

(8) Drastic decrease in interest rates due to the current economic recession.

(9) Costs associated with the Downtown Pedestrian Improvements project and other transportation and sidewalk projects

(10) Beginning in 2009, Special Purpose Local Option Sales Taxes received from the County were reclassified as Intergovernmental revenues.

(11) Increase in fine fees and confiscated assets.

(12) Collection adjustment of tower rental.

(13) No major cost associated with transportation or sidewalk projects

(14) The City has received several grants for transportation and sidewalk projects

(15) Cost associated with transportation and sidewalk projects

(16) Veterans Memorial Park Fund opened.