MANAGEMENT’S DISCUSSION AND ANALYSIS

Debt

The City reported outstanding debt of $24,583,575 as of July 31, 2020. Debt for the business-type activities relates to the Water and Sewerage Revenue Bonds that were issued in FY 2019 to refinance the cost of the 2013 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 FY 2017 and FY 2019 to make improvements to the City’s storm water 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 $36,955,479. This amount increased from the prior year due to the issuance of Revenue Bonds and capital leases for FY 2019 Table 6 – Outstanding Long-Term Liabilities reflects information provided in Note 8.

TABLE 6 – Outstanding Long-Term Liabilities

Current Issues

Economic Factors and Next Year’s Budget and Rates

The population of the City continues to increase despite the turmoil created by the Pandemic. Our revenues continued to be steady in most areas. We did see a decline in revenues from the Court System, but they were closed for several month during FY 2020, but we have seen a steady increase in the case loads and revenues related to the cases since July. Another area that was affected by the COVID-19 Virus was hotel motel revenues, again this was due to very little travel during March, April, and May, and the slower recovery in June and July. A new hotel opened in Fayetteville during the early fall and we are now receiving funds that are equal to or greater than the budget for FY 2021.

The City has generated an increase in revenues by raising the City’s m illage rate from 3.874 to 5.646 to help see the City through the next ten years. During this increase in the millage, the City has brought on additional fire fighters and additional police officers to bring their respective numbers more in line with other jurisdictions. Our operating expenses have also continued to increase but not at the rate of the revenues coming in during the year. We will continue to see our debt service expenses increase over the coming years due to the construction of a new City Center Project which includes an approximately ten acre park and a new City Hall, and continued required pension liabilities being added to our financial statements.

Staff has developed a ten-year plan that includes workload indicators and trend analysis to assist the City in longrange 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