CITY OF FAYETTEVILLE, GEORGIA MANAGEMENT’S DISCUSSION AND ANALYSIS

JULY 31, 2016

Management’s Discussion and Analysis of the City of Fayetteville, Georgia’s financial performance provides an overall review of the City’s financial activities for the fiscal year ended July 31, 2016. It is designed to give the reader an objective and easily readable analysis of the City’s financial performance. The primary intent of this discussion and analysis is to look at the City’s financial performance as a whole; readers should also review the letter of transmittal, notes to the basic financial statements, and the financial statements to enhance their understanding of the City’s financial performance.

Financial Highlights

Key financial highlights for FY 2016 are as follows:

In total, combined net position increased by $2,891,569 which represents a 3.3% increase over FY 2015. This increase can primarily be attributed to investments in capital assets.

 Combined tax revenues accounted for $10,740,755 or 66.5% of all revenues from governmental activities. Service specific revenues in the form of charges for services, operating grants and contributions, and capital grants and contributions accounted for $5,368,180 or 33.3% of total revenues of $16,142,920 from governmental activities.

 The City had $13,840,083 in expenses related to governmental activities; $5,368,180 of these expenses were offset by charges for services, grants, and contributions. General revenues (primarily taxes) of $10,740,755 provided for these services as well as increasing the City’s net position by $2,302,837.

 Total Water and Sewer Fund revenues for fiscal year 2016 were $6,287,328. Total expenses for fiscal year 2016 were $5,364,798. Capital contributions were recorded in the amount of $309,040, including but not limited to donated property and sewer proportionate share. The change in net position after depreciation and non-operating revenues/expenses was $527,105 for the fiscal year-end 2016.

 Revenues from the General Fund were $11,830,690 for fiscal year 2016, an increase of approximately 9.8% over the prior fiscal year, due to an increase in taxes and licenses and permits. General Fund expenditures totaled $11,061,472 for the fiscal year ending July 31, 2016, an increase of 13.9% over last fiscal year due mostly to increased spending in general government and public safety areas.

Overview of the Financial Statements

This comprehensive annual financial report consists of a series of financial statements and notes to those statements. These statements are organized so the reader can understand the City of Fayetteville as a financial whole, or as an entire operating entity.