CITY OF FAYETTEVILLE, GEORGIA MANAGEMENT’S DISCUSSION AND ANALYSIS

JULY 31, 2018

Management’s Discussion and Analysis of the City of Fayetteville, Georgia’s financial performance provides an overall review of the City’s financial activities for the fiscal year ended July 31, 2018. It is designed to give the reader an objective and easily readable analysis of the City’s financial performance. The primary intent of this discussion and analysis is to look at the City’s financial performance as a whole; readers should also review the letter of transmittal, notes to the basic financial statements, and the financial statements to enhance their understanding of the City’s financial performance.

Financial Highlights

Ke y financial highlights for FY 2018 are as follows:

In total, combined net position increased by $2,595,539 which represents a 2.79% increase over FY 2017. This increase can primarily be attributed to investments in capital assets.

• Com bined tax revenues accounted for $12,566,128 or 63.9% of all revenues from governmental activities. Service specific revenues in the form of charges for services, operating grants and contributions, and capital grants and contributions accounted for $7,030,105 or 26.3% of total revenues of $19,675,955 from governmental activities.

• The City had $17,417,406 in expenses related to governmental activities; $7,030,105 of these expenses were offset by charges for services, grants, and contributions. General revenues (primarily taxes) of $12,645,850 provided for these services as well as increasing the City’s net position by $2,258,549.

• Total Water and Sewer Fund revenues for fiscal year 2018 were $6,522,202 Total expenses for fiscal year 2018 were $5,695.756 Capital contributions were recorded in the amount of $184.970, including but not limited to donated property and sewer proportionate share. The change in net position after depreciation and non-operating revenues/expenses was $303.734 for the fiscal year-end 2018.

• Revenues from the General Fund were $13,466,734 fiscal year 2018, an increase of approximately 6.7% over the prior fiscal year, due to an increase in taxes, fines and forfeitures, charges for services, and collections. General Fund expenditures totaled $15,152,520 for the fiscal year ended July 31, 2018, an increase of 24.6% over last fiscal year due mostly to increased spending in general government, judicial, public works, housing and development, and public safety areas.

Overview of the Financial Statements

This comprehensive annual financial report consists of a series of financial statements and notes to those statements. These statements are organized so the reader can understand the City of Fayetteville as a financial whole, or as an entire operating entity.