MANAGEMENT’S DISCUSSION AND ANALYSIS

Governmental Fund Balance

At the end of the fiscal year 2017, the combined ending fund balances for the City’s Governmental Funds were $10,921,982. Of the total fund balance, $10,625,509 is available as working capital for current spending in accordance with the purposes of the specific funds. The remainder of the fund balance, $296,473, 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 2017 was $6,706,678, which indicates an increase in fund balance over the previous year by $1,002,899. The increase in the General Fund’s fund balance is due to $301,000 being transferred back from the Capital Projects 2 Fund. During the prior year, the General Fund transferred $1,000,000 to the Capital Projects 2 Fund to finish a capital project. During the fiscal year ending 2017, the Capital Projects 2 Fund transferred back unspent monies of $301,000 to the General Fund after the project was completed. The Capital Projects 2 Fund’s fund balance has decreased by $777,155 due to the transfers between the General Fund during the prior year and current year for the completion of one of the final construction projects left in that program. There is only one account left open in this Capital Projects 2 Fund’s program. Information provided in Table 4 is from the Governmental Funds Balance Sheet on pages 17 and 18.

*Formerly referred to as the SPLOST Fund.

Proprietary Net Position

At the end of the fiscal year 2017, the combined net position of the City’s Proprietary Funds were $13,654,863. The most significant event that took place in the Water and Sewer Funds was the increase of supplies and contracted services and the increase in revenue collections.