MANAGEMENT’S DISCUSSION AND ANALYSIS

Debt

The City reported outstanding debt of $19,256,470 as of July 31, 2017. Debt for the Business-type activities relates to the Water and Sewerage Revenue Bonds that were issued in FY2013 to refinance the cost of the 2003 Water and Sewerage Revenue Bonds, the Water and Sewer Fund’s allocated portion of the net pension liability, and Water and Sewerage issuance of GEFA note payable in FY2017 to make improvements to the city’s stormwater infrastructure. The amount of outstanding debt in Governmental Activities includes Certificates of Participation (COPS) with Georgia Municipal Association (GMA), revenue bonds, compensated absences, capital leases, net pension liability, and notes payable totaling $11,073,365. This amount increased over the prior year as a result of an additional lease purchase transaction and additional compensated absences and the implementation of GASB Statement No. 68 and 71 requiring the City to report a net pension liability. Table 6 – Outstanding Long-Term Liabilities reflects information provided in Note 8.