MANAGEMENT’S DISCUSSION

And Analysis

Governmental Fund Balance

At the end of the FY 2020, the combined ending fund balances for the City’s Governmental Funds were $34,220,035. Of the total fund balance, $33,778,828 is available as working capital for current spending in accordance with the purposes of the specific funds. The remainder of the fund balance, $441,207, 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 ended 2020 was $7,967,010, which indicates an increase in fund balance over the previous year by $2,217,669. The increase in the General Fund’s fund balance is due to an increase in tax collections during the current year. This generated approximately $2,076,416. Total revenues increased by $2,412,674. Total expenses increased by $1,524,831 The m ajority of the increase was in interest expense which increased by $480,162 with general government, public safety, and culture and recreation increasing by $406,774, 467,316, and $301,511, respectively, resulting in a total increase in expenses for the General Fund. The SPLOST 2017 fund collected $295,824 more in revenues than we spent in expenditures in 2019. The Capital Projects 2 Fund’s fund balance increased by $16,358,664 for the FY 2020, which was mainly due to the issuance of revenue bond for the purpose of new construction projects in the City. The Building Fund’s fund balance decreased by $130,801 for the FY 2020, which was mainly due to increased capital outlay on construction projects. Information provided in Table 4 is from the Governmental Funds Balance Sheet on pages 16 and 17.

TABLE 4 – Governmental Fund Balance

Proprietary Net Position

At the end of the FY 2020, the combined net position of the City’s Proprietary Funds were $15,197,496. The most significant events that took place were an increase in expenses of nearly $823,829 and an increase of revenues of $759,334 resulting in an increase in net position of $495,579