MANAGEMENT’S DISCUSSION AND ANALYSIS

Governmental Fund Balance

At the end of the fiscal year 2016, the combined ending fund balances for the City’s Governmental Funds were $10,327,053. Of the total fund balance, $10,073,693 is available as working capital for current spending in accordance with the purposes of the specific funds. The remainder of the fund balance, $253,360, is not available for new spending because it is considered nonspendable (pre-paid items and inventory).

The General Fund’s fund balance for the fiscal year ending 2016 was $5,703,779, which indicates a decrease in fund balance over the previous year by $868,579. The decrease in the General fund balance is due to the transfer of $1,000,000 to the SPLOST fund to finish the last project of the SPLOST Fund. The SPLOST fund has increased by $337,240 due to the fact that payments were received from the County for a joint SPLOST project where the City had made the payments in advance and the transfer of $1,000,000 from the General Fund. Information provided in Table 4 is from the Governmental Funds Balance Sheet on page 16.

4 – Governmental Fund Balance

Proprietary Net Position

At the end of the fiscal year 2016, the combined net position of the City’s Proprietary Funds were $13,526,077. The most significant event that took place in the Water and Sewer Funds was the reduction of interest expense and the increase in revenue collections.

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 $11,830,690 were less than the final budgeted amount of $11,973,151 by $142,461.

 The actual expenditures of $11,061,472 were less than the final budgeted amount of $12,054,039 by $992,567. This difference was primarily due to vacant personnel positions and a reduction in all costs.