MANAGEMENT’S DISCUSSION AND ANALYSIS

Current Issues

Economic Factors and Next Year’s Budget and Rates

Today, the population for the City of Fayetteville decreased by 285 and is estimated to be 16,705. Despite the decrease in population, the City continued to see growth in the City’s General Fund revenues, which have increased from $3,840,328 in 1994 to $16,623,937 in 2017. The economic condition and outlook of the City is beginning to show some improvement in residential construction, purchasing by City residents, and the loss of jobs and employment in our area has stabilized.

The City has started to see growth in revenues, particularly property taxes and building related fees. The local option sales taxes are continuing to increase which is a direct reflection of our area’s slow recovery from the recession. Our operating expenses have increased due to the collection of additional revenues through taxes and other revenues. Additionally, our debt service expenses have increased as a result of infrastructure projects and newly required pension liabilities being added to the financial statements.

Staff has developed a Five-Year Plan that includes Workload Indicators and Trend Analysis to assist the City in long-range financial planning and forecasting. This plan is developed with input from each department and is updated annually to reflect any changing needs. This plan is a very conservative forecast of the City’s financial resources and departmental needs to maintain our existing service levels to the community. The Mayor and Council and staff will need to continue to closely evaluate the service and staffing levels on an ongoing basis to ensure that adequate personnel resources and financial resources are available to achieve the desired service levels.

Contacting the City’s Financial Management

This financial report is designed to provide our citizens, taxpayers, investors, and creditors with a general overview of the City’s finances and to show the City’s accountability for the money it receives. If you have questions about this report or need additional financial information, please contact Mike Bush, Director of Finance and Administrative Services, City of Fayetteville, 240 Glynn Street South, Fayetteville, Georgia 30214, 770-461-6029, or mbush@fayetteville-ga.gov