NOTES TO FINANCIAL STATEMENTS

NOTE 17. EXCISE TAXES ON RENTAL MOTOR VEHICLES

Under the provisions of the Official Code of Georgia Annotated Section 48-13-93, the City has imposed and collected an excise tax on rental motor vehicles. The Code section requires the City to expend taxes collected for the purpose of promoting tourism, conventions, trade shows, etc., and promoting the City and business therein. During the year ended July 31, 2016, the City transferred all motor vehicle excise taxes to the Downtown Development Authority Fund, where it was used for the promotion of tourism. The following schedule represents the revenues and expenditures pertaining to the tax for the year ended July 31, 2016:

Required Supplementary Information

CITY OF FAYETTEVILLE, GEORGIA

SCHEDULE OF CHANGES IN THE CITY'S NET PENSION LIABILITY AND RELATED RATIOS FOR THE FISCAL YEAR ENDED JULY 31

The schedule will present 10 years of information once it is accumulated.

Schedule Of City Contributions For The Fiscal Year Ended July 31

Sum ofactuarialvalueatbeginningofyearand the cash flow during the yearplus the assumedinvestmentreturn,adjustedby10%of the amountsthat the valueexceedsor is lessthan the marketvalueat the endof the year. The actuarialvalue is adjusted, if necessary, to be within 20% of market value.

Remainingamortizationperiodvaries forthe bases, with a net effective amortization period of 10 years.

The schedule will present 10 years of information once it is accumulated.