MANAGEMENT’S DISCUSSION AND ANALYSIS

Proprietary Net Position

At the end of the FY 2021, the combined net position of the City’s Proprietary Funds was $19,798,080. The most significant events that took place were an increase in expenses of nearly $5,226,352 and an increase of revenues of $5,247,517 resulting in an increase in net position of $4,600,584.

General Fund Budgeting Highlights

• The City’s budget is prepared according to Georgia law. The most significant budget fund is the General Fund.

• For the General Fund, the actual revenues of $17,737,333 were less than the final budgeted amount of $18,399,920 by $662,587.

• The actual expenditures of $16,580,404 were less than the final budgeted amount of $17,514,319 by $993,915. This difference was primarily due to original budgets not being reduced to match actual expenditures in general government, public safety, culture and recreation, and housing and development.

• The original budget had to be increased by $856,421 due mainly to collection of more revenues over budgeted projections. Sales taxes were originally budgeted as $3,793,566 with actual revenues of $4,585,851 for a total increase of $792,285; property tax revenues were originally budgeted as $4,938,935 with actual revenues of $5,595,148 for an increase of $656,213; and licenses and permits were originally budgeted as $1,866,975 with actual revenues of $1,045,341 for an increase of $179,266.

Capital Assets and Debt Administration

At the end of FY 2021, the City had $145,010,486 invested in capital assets, which is an increase over fiscal year 2020 of $20,992,103. Table 5 shows fiscal years 2021 and 2020 balances of the Capital Assets, Net of Accumulated Depreciation as presented in Note 7.