HomeMy Public PortalAboutFY 2021 AFS
CITY OF TYBEE ISLAND, GEORGIA
FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED
JUNE 30, 2021
CITY OF TYBEE ISLAND, GEORGIA
FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
TABLE OF CONTENTS
Page
FINANCIAL SECTION
Independent Auditor's Report .......................................................................................................................... 1 – 3
Management’s Discussion and Analysis ...................................................................................................... 4 – 14
Basic Financial Statements
Government-wide Financial Statements
Statement of Net Position .......................................................................................................................... 15
Statement of Activities ............................................................................................................................... 16
Fund Financial Statements
Balance Sheet – Governmental Funds ..................................................................................................... 17
Statement of Revenues, Expenditures and Changes in Fund
Balances – Governmental Funds ....................................................................................................... 18
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances of Governmental Funds to the Statement of Activities ............................................... 19
Statement of Revenues, Expenditures and Changes in
Fund Balances – Budget (GAAP Basis) and Actual – General Fund ............................................ 20 – 22
Statement of Revenues, Expenditures and Changes in
Fund Balances – Budget (GAAP Basis) and Actual – Hotel/Motel Tax Fund ....................................... 23
Statement of Net Position – Proprietary Funds ........................................................................................... 24
Statement of Revenues, Expenses and Changes in Fund Net
Position – Proprietary Funds .................................................................................................................... 25
Statement of Cash Flows – Proprietary Funds ................................................................................ 26 and 27
Notes to Financial Statements ............................................................................................................ 28 – 54
Required Supplementary Information
Schedule of Changes in the City’s Net Pension Liability and Related Ratios .......................................... 55
Schedule of City Contributions ...................................................................................................................... 56
CITY OF TYBEE ISLAND, GEORGIA
FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
TABLE OF CONTENTS (CONTINUED)
Page
FINANCIAL SECTION (CONTINUED)
Combining Statements and Schedules
Combining Balance Sheet – Nonmajor Governmental Funds .................................................................... 57
Combining Statement of Revenues, Expenditures and Changes in Fund
Balances – Nonmajor Governmental Funds ............................................................................................ 58
Combining Balance Sheet – Nonmajor Special Revenue Funds ............................................................... 59
Combining Statement of Revenues, Expenditures and Changes in Fund
Balances – Nonmajor Special Revenue Funds ....................................................................................... 60
Schedule of Expenditures of Special Purpose Local Option Sales
Tax Proceeds (2014 Resolution) ............................................................................................................... 61
Schedule of Expenditures of Special Purpose Local Option Sales
Tax Proceeds (2003 Resolution) ............................................................................................................... 62
Schedule of Expenditures of Special Purpose Local Option Sales
Tax Proceeds (2020 Resolution) ............................................................................................................... 63
COMPLIANCE SECTION
Independent Auditor's Report on Internal Control Over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial Statements
Performed in Accordance with Government Auditing Standards ................................................. 64 and 65
Independent Auditor’s Report on Compliance for Each Major
Federal Program and on Internal Control over Compliance
Required by the Uniform Guidance ..................................................................................................... 66 and 67
Schedule of Expenditures of Federal Awards .................................................................................................... 68
Notes to the Schedule of Expenditures of Federal Awards .............................................................................. 69
Schedule of Findings and Questioned Costs ......................................................................................... 70 and 71
Summary Schedule of Prior Year Findings ......................................................................................................... 72
FINANCIAL SECTION
6001 CHATHAM CENTER DRIVE, SUITE 250 • SAVANNAH, GEORGIA 31405 • 912-232-1622 • www.mjcpa.com
MEMBERS OF THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
INDEPENDENT AUDITOR'S REPORT
Honorable Mayor and Members
of City Council
City of Tybee Island
Tybee Island, Georgia
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business-type activities,
each major fund, and the aggregate remaining fund information of the City of Tybee Island, Georgia (the “City”) as
of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively
comprise the City’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance
with accounting principles generally accepted in the United States of America; this includes the design,
implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial
statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit
in accordance with auditing standards generally accepted in the United States of America and the standards
applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the
United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments,
the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial
statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion.
An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinions.
2
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective
financial position of the governmental activities, the business-type activities, each major fund, and the aggregate
remaining fund information of the City as of June 30, 2021, and the respective changes in financial position, and,
where applicable, cash flows thereof, and the budgetary comparison information for the General Fund and the
Hotel/Motel Tax Fund for the year then ended in accordance with accounting principles generally accepted in the
United States of America.
Emphasis of Matters
As discussed in Note 13, the City implemented Governmental Accounting Standards Board (“GASB”) Statement No.
84, Fiduciary Activities in fiscal year 2021. This standard significantly changed the accounting for the City’s
Municipal Court Fund. Our opinions are not modified with respect to this matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion
and analysis on pages 4 through 14, the schedule of changes in the city’s net pension liability and related ratios,
and the schedule of city contributions on pages 55 and 56 be presented to supplement the basic financial
statements. Such information, although not a part of the basic financial statements, is required by the Governmental
Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic
financial statements in an appropriate operational, economic, or historical context. We have applied certain limited
procedures to the required supplementary information in accordance with auditing standards generally accepted in
the United States of America, which consisted of inquiries of management about the methods of preparing the
information and comparing the information for consistency with management’s responses to our inquiries, the basic
financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do
not express an opinion or provide any assurance on the information because the limited procedures do not provide
us with sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise
the City’s basic financial statements. The combining statements and schedules as listed in the table of contents are
presented for purposes of additional analysis and are not a required part of the basic financial statements. The
schedules of expenditures of special purpose local option sales tax proceeds, as required by the Official Code of
Georgia Annotated (“O.C.G.A.”) §48-8-121, are also presented for purposes of additional analysis and are not a
required part of the basic financial statements. The schedule of expenditures of federal awards is presented for
purposes of additional analysis as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform
Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and
is also not a required part of the basic financial statements of the City.
3
The combining statements and schedules, the schedule of expenditures of federal awards, and the schedules of
expenditures of special purpose local option sales tax proceeds are the responsibility of management and were
derived from and relate directly to the underlying accounting and other records used to prepare the basic financial
statements. Such information has been subjected to the auditing procedures applied in the audit of the basic
financial statements and certain additional procedures, including comparing and reconciling such information
directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic
financial statements themselves, and other additional procedures in accordance with auditing standards generally
accepted in the United States of America. In our opinion, the combining statements and schedules, the schedule of
expenditures of federal awards, and the schedules of expenditures of special purpose local option sales tax
proceeds are fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December 10, 2021 on
our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain
provisions of laws, regulations, contracts and grant agreements, and other matters. The purpose of that report is
solely to describe the scope of our testing of internal control over financial reporting and compliance and the results
of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting
or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing
Standards in considering the City of Tybee Island, Georgia’s internal control over financial reporting and
compliance.
Savannah, Georgia
December 10, 2021
CITY OF TYBEE ISLAND, GEORGIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2021
4
As management of the City of Tybee Island (the “City”), we offer readers of the City’s financial statements this narrative
overview and analysis of the financial activities of the City of Tybee Island for the fiscal year ended June 30, 2021.
We encourage readers to consider the information presented here in conjunction with additional information that we
have furnished in the financial statements and the notes to the financial statements.
FINANCIAL HIGHLIGHTS
Key financial highlights for fiscal year 2021 are as follows:
The City’s total net position is $46,090,061, an increase of $2,959,347. Net position from governmental activities
increased $2,087,600 and business-type activities increased $871,747.
The General Fund reported fund balance of $12,940,022. This is an increase of $2,075,561 over the prior year.
OVERVIEW OF THE FINANCIAL STATEMENTS
This Discussion and Analysis is intended to serve as an introduction to the City's basic financial statements. The City’s
basic financial statements are comprised of three components: (1) government-wide financial statements, (2) fund
financial statements, and (3) notes to those financial statements. This report also contains other supplementary
information in addition to the basic financial statements themselves.
Government-wide Financial Statements
The government-wide financial statements are designed to provide readers with a broad overview of the City's
finances, in a manner similar to a private-sector business. All governmental and business-type activities are
consolidated to arrive at a total for the Primary Government. There are two government-wide statements, the
statement of net position and the statement of activities, which are described below.
The statement of net position presents information on all of the City’s assets, deferred outflows of resources, liabilities,
and deferred inflows of resources, with the difference between the two reported as net position. Over time, increases
or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving
or deteriorating. It is important to note that this statement consolidates the governmental fund’s current financial
resources (short-term) with capital assets, deferred outflows of resources, long-term liabilities, and deferred inflows of
resources.
The statement of activities presents information showing how the government's net position changed during the most
recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change
occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement
for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused
vacation leave).
The governmental activities of the City include general government, judicial, public safety, public works, culture and
recreation, and housing and community development.
The business-type activities of the City include water and sewer, sanitation, and campground management.
MANAGEMENT’S DISCUSSION AND ANALYSIS
5
The City's government-wide financial statements are presented on pages 15 and 16.
Reporting the City’s Most Significant Funds
Unlike government-wide financial statements, the focus of fund financial statements is directed at specific activities of
the City rather than the City as a whole. Except for the General Fund, a specific fund is established to satisfy
managerial control over resources or to satisfy finance-related legal requirements established by external parties or
governmental statutes or regulations. The City's fund financial statements are divided into two broad categories,
namely: (1) governmental funds, and (2) proprietary funds.
Governmental Funds
The governmental fund financial statements consist of a balance sheet and statement of revenues, expenditures and
change in fund balances and are prepared on an accounting basis that is significantly different from that used to
prepare the government-wide financial statements.
In general, these financial statements have a short-term emphasis and, for the most part, measure and account for
cash and other assets that can easily be converted to cash. For example, amounts reported on the balance sheet
include items such as cash and receivables collectible within a very short period of time, but do not include capital
assets such as land and buildings. Fund liabilities include amounts that are to be paid within a very short period after
the end of the fiscal year. The difference between a fund's assets, liabilities and deferred inflows of resources is
labeled as the fund balance, and generally indicates the amount that can be used to finance the next fiscal year's
activities. Likewise, the operating statement for governmental funds reports only those revenues and expenditures
that were collected in cash or paid with cash, respectively, during the current period or very shortly after the end of
the year.
For the most part, the balances and activities accounted for in governmental funds are also reported in the
governmental activities columns of the government-wide financial statements; however, because different accounting
bases are used to prepare fund financial statements, there are often significant differences between the totals
presented in these financial statements. For this reason, there is an analysis at the bottom of the balance sheet that
reconciles the total fund balance to the amount of net position presented in the governmental activities column on the
statement of net position. Also, there is an analysis at the bottom of the statement of revenues, expenditures and
changes in fund balances that reconciles the total change in fund balances for all governmental funds to the change
in net position as reported in the governmental activities column in the statement of activities.
The City presents, in separate columns, funds that are most significant to the City (major funds) and all other
governmental funds are aggregated and reported in a single column (nonmajor funds). The City's governmental fund
financial statements are presented on pages 17 through 23.
Proprietary Funds
The proprietary fund financial statements consist of a statement of net position, statement of revenues, expenses, and
changes in fund net position and statement of cash flows, and are prepared on an accounting basis that is similar to
the basis used to prepare the government-wide financial statements.
MANAGEMENT’S DISCUSSION AND ANALYSIS
6
The City uses proprietary funds to account for business-type activities that charge fees to customers for the use of
specific goods or services. For the most part, the balances and activities accounted for in the City's proprietary funds
are also reported in the business-type activities columns of the government-wide financial statements.
The City presents, in separate columns, proprietary funds that are most significant to the City and all other proprietary
funds are aggregated and reported in a single column. A statement of cash flows is presented at the fund financial
statement level for proprietary funds, but no equivalent statement is presented in the government-wide financial
statements for either governmental activities or business-type activities.
The City's proprietary fund financial statements are presented on pages 24 through 27.
Overview of the City’s Financial Position and Operations
The City's overall financial position and operations for the past two years are summarized as follows based on the
information included in the government-wide financial statements (see pages 15 and 16):
2021 2020 2021 2020 2021 2020
Assets
Current and other assets 17,086,282$ 13,384,135$ 2,432,126$ 3,003,669$ 19,518,408$ 16,387,804$
Capital assets 18,761,318 18,335,032 23,543,708 23,078,653 42,305,026 41,413,685
Total assets 35,847,600 31,719,167 25,975,834 26,082,322 61,823,434 57,801,489
Deferred Outflows of Resources
Pension 647,744 571,648 110,027 96,229 757,771 667,877
Total deferred outflows of resources 647,744 571,648 110,027 96,229 757,771 667,877
Liabilities
Current liabilities 3,497,336 1,258,931 1,864,076 1,849,821 5,361,412 3,108,752
Long-term liabilities 4,395,809 4,505,543 6,507,217 7,483,779 10,903,026 11,989,322
Total liabilities 7,893,145 5,764,474 8,371,293 9,333,600 16,264,438 15,098,074
Deferred Inflows of Resources
Pension 206,187 217,929 20,519 22,649 226,706 240,578
Total pension inflow of resources 206,187 217,929 20,519 22,649 226,706 240,578
Net Assets
Invested in capital assets 15,413,710 14,844,410 16,258,486 14,831,141 31,672,196 29,675,551
Restricted for capital outlay 1,745,688 1,446,719 - - 1,745,688 1,446,719
Restricted for debt service 162,028 158,679 405,419 405,421 567,447 564,100
Unrestricted 11,074,586 9,858,604 1,030,144 1,585,740 12,104,730 11,444,344
Total net position 28,396,012$ 26,308,412$ 17,694,049$ 16,822,302$ 46,090,061$ 43,130,714$
Governmental Activities Business-type Activities Totals
City of Tybee Island Summary of Net Position
MANAGEMENT’S DISCUSSION AND ANALYSIS
7
Financial Position
The total net position of the City increased by $2,959,347, or 6.9%, as noted in the table above. The governmental
activities net position increased by $2,087,600 while the business-type activities net position increased by $871,747.
2021 2020 2021 2020 2021 2020
Revenues
Program revenues:
Charges for services 9,114,345$ 5,881,735$ 6,456,345$ 5,662,646$ 15,570,690$ 11,544,381$
Capital grants and contributions 1,611,176 3,983,714 77,426 56,010 1,688,602 4,039,724
General revenues:
Property taxes 2,278,037 2,093,974 - - 2,278,037 2,093,974
Other taxes 8,158,789 5,755,775 - - 8,158,789 5,755,775
Investment earnings 7,316 96,281 - - 7,316 96,281
Gain on sale of capital assets - - - - - -
Total revenues 21,169,663 17,811,479 6,533,771 5,718,656 27,703,434 23,530,135
Expenses
Governmental activities:
General government 2,743,555 2,939,414 - - 2,743,555 2,939,414
Judicial 1,437,142 262,829 - - 1,437,142 262,829
Public safety 6,360,400 5,141,687 - - 6,360,400 5,141,687
Public works 3,745,771 2,595,871 - - 3,745,771 2,595,871
Cultural and recreation 3,463,888 4,152,666 - - 3,463,888 4,152,666
Housing and community developement 1,069,934 1,052,131 - - 1,069,934 1,052,131
Other expenses 102,442 104,294 - - 102,442 104,294
Business-type activities:
Water and sewer service - - 3,428,542 3,410,368 3,428,542 3,410,368
Solid waste collection - - 1,118,994 1,085,702 1,118,994 1,085,702
Campground - - 1,273,419 1,139,973 1,273,419 1,139,973
Total expenses 18,923,132 16,248,892 5,820,955 5,636,043 24,744,087 21,884,935
Transfers (158,931) 468,223 158,931 (468,223) - -
Change in net position 2,087,600 2,030,810 871,747 (385,610) 2,959,347 1,645,200
Beginning net position, as restated 26,308,412 24,277,602 16,822,302 17,207,912 43,130,714 41,485,514
Ending net assets 28,396,012$ 26,308,412$ 17,694,049$ 16,822,302$ 46,090,061$ 43,130,714$
City of Tybee Island Summary of Changes in Net Position
Business-type Activities TotalsGovernmental Activities
MANAGEMENT’S DISCUSSION AND ANALYSIS
8
Governmental Activities
The total revenues for governmental activities increased $3,358,184, or 18.9%. Charges for services increased
$3,232,610, or 55.0% as a result of increased parking revenue. Capital grants and contributions decreased
$2,372,538, or 59.6%, as a result of decreases in federal grant revenues. All other categories of revenue remained
consistent with the prior year.
Total governmental expenses have increased $2,674,240, or 16.5%. Judicial expense increased $1,174,313 as a
result of a new GASB requirement. Public safety expenses increased $1,218,713, as a result of new positions and a
new division created. Public works expenses increased $1,149,900 as a result of increased maintenance and repair.
Business-type Activities
Net position for business-type activities increased $871,747. The Water and Sewer Fund had a decrease of $76,605;
the River’s End RV Park Fund increased by $948,352; and the Solid Waste Fund had no change. Below is the analysis
of each enterprise fund.
Water and Sewer Fund
Water and Sewer operating revenues increased $218,671, or 7.1%, which is fairly consistent with the prior year.
Operating expenses were also consistent with the prior year.
2021 2020 $ Change % Change
Operating revenues 3,274,511$ 3,055,840$ 218,671$ 7.16%
Operating expenses 3,349,809 3,322,169 27,640 0.83%
Net operating income (loss)(75,298) (266,329) 191,031 -71.73%
Nonoperating income (expenses)(78,733) (88,199) 9,466 -10.73%
Loss on disposal of assets - - - 0.00%
Income (loss) before contributions and transfers (154,031) (354,528) 200,497 -56.55%
Capital contributions 77,426 56,010 21,416 38.24%
Transfers in - - - 0.00%
Change in net position (76,605) (298,518) 221,913 -74.34%
Beginning net position 11,972,817 12,271,335 (298,518) -2.43%
Ending net position 11,896,212$ 11,972,817$ (76,605)$ -0.64%
City of Tybee Island Water and Sewer Fund
MANAGEMENT’S DISCUSSION AND ANALYSIS
9
Solid Waste Collection Fund
Solid Waste operating revenues increased $6,138, or 1.0%. Operating expenses were consistent with the prior year.
The General Fund transferred $158,931 to the Solid Waste Collection Fund to cover operating deficits.
2021 2020 $ Change % Change
Operating revenues 960,063$ 953,925$ 6,138$ 0.64%
Operating expenses 1,118,994 1,085,702 33,292 3.07%
Net operating income (loss)(158,931) (131,777) (27,154) 20.61%
Transfers in 158,931 131,777 27,154 100.00%
Beginning net position 634 634 - 0.00%
Ending net position 634$ 634$ -$ 0.00%
City of Tybee Island Solid Waste Collection Fund
River’s End RV Park Fund
Operating revenues for the River’s End RV Park Fund increased $568,890, or 34.4%. Operating expenses increased
$142,801, or 13.3%.
2021 2020 $ Change % Change
Operating revenues 2,221,771$ 1,652,881$ 568,890$ 34.42%
Operating expenses 1,216,893 1,074,092 142,801 13.30%
Net operating income (loss)1,004,878 578,789 426,089 73.62%
Nonoperating income (expenses)(56,526) (65,881) 9,355 -14.20%
Income (loss) before contributions and transfers 948,352 512,908 435,444 84.90%
Transfers out - (600,000) 600,000 100.00%
Change in net position 948,352 (87,092) 1,035,444 -1188.91%
Beginning net position, restated 4,848,851 4,935,943 (87,092) -1.76%
Ending net position 5,797,203$ 4,848,851$ 948,352$ 19.56%
City of Tybee Island River's End RV Park Fund
MANAGEMENT’S DISCUSSION AND ANALYSIS
10
Financial Analysis of the City’s Funds
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance related legal
requirements.
Governmental Fund Balance
The City's combined fund balances as of the end of the current year for governmental funds, presented on pages 17
and 18 were $13,763,622. This balance represents an increase of $1,450,622, or 10.5%, from last year's ending
balance. The tables below reflect changes in governmental fund balances.
The City Council assigned $4,301,380, or 31%, of the General Fund’s fund balance for economic stabilization and
$1,264,104, or 9% for beach renourishment.
The following schedule reflects changes in the fund balance for the City’s governmental funds.
2021 2020 $ Change % Change
General Fund 12,940,022$ 10,864,461$ 2,075,561$ 19.10%
Hotel/Motel Fund - - - 0.00%
FEMA/GEMA Grant Fund 3,000 (157,341) 160,341 -101.91%
American Rescue Act Fund - - - 0.00%
Grant Fund (1,081,313) - (1,081,313) 0.00%
Confiscated Asset Fund 4,454 4,454 - 0.00%
Emergency Telephone 911 Fund (2,803) 482 (3,285) -681.54%
SPLOST 2003 Fund 184,554 452,098 (267,544) -59.18%
SPLOST 2014 Fund 976,765 990,167 (13,402) -1.35%
SPLOST 2020 Fund 576,915 - 576,915 0.00%
Debt Service Fund 162,028 158,679 3,349 2.11%
Total 13,763,622$ 12,313,000$ 1,450,622$ 10.54%
City of Tybee Island Governmental Fund Balance (Deficit)
MANAGEMENT’S DISCUSSION AND ANALYSIS
11
The components of changes to governmental fund balances are analyzed in the table below:
2021 2020 $ Change % Change
Revenues
Taxes 10,403,061$ 7,899,694$ 2,503,367$ 31.69%
Licenses and permits 443,295 381,954 61,341 16.06%
Intergovernmental 1,610,079 3,953,737 (2,343,658) -59.28%
Charges for services 6,109,562 4,432,317 1,677,245 37.84%
Fines and forfeitures 2,304,440 881,480 1,422,960 161.43%
Interest 8,413 100,692 (92,279) -91.64%
Other revenues 257,048 211,550 45,498 21.51%
Total revenues 21,135,898 17,861,424 3,274,474 18.33%
Expenditures
Current:
General government 2,595,993 2,768,438 (172,445) -6.23%
Judicial 1,440,226 263,351 1,176,875 446.88%
Public safety 5,923,788 4,603,311 1,320,477 28.69%
Public works 3,464,679 2,210,286 1,254,393 56.75%
Culture and recreation 2,593,296 2,745,203 (151,907) -5.53%
Housing and community development 1,072,818 1,053,591 19,227 1.82%
Capital outlay 2,188,894 6,529,868 (4,340,974) -66.48%
Debt service
Principal 125,000 125,000 - 100.00%
Interest 121,651 120,399 1,252 100.00%
Total expenditures 19,526,345 20,419,447 (893,102) -4.37%
Excess of revenues over (under) expenditures 1,609,553 (2,558,023) 4,167,576 -162.92%
Other financing sources (uses)
Transfers in 3,316,237 2,585,712 730,525 28.25%
Transfers out (3,475,168) (2,117,489) (1,357,679) 64.12%
Sale of capital assets - 19,355 (19,355) 100.00%
Total other financing sources (uses)(158,931) 487,578 (646,509) -132.60%
Net change in fund balance 1,450,622 (2,070,445) 3,521,067 -170.06%
Fund balances, beginning of year 12,313,000 14,383,445 (2,070,445) -14.39%
Fund balances, end of year 13,763,622$ 12,313,000$ 1,450,622$ 11.78%
City of Tybee Island, Changes in Fund Balances - Governmental Funds
MANAGEMENT’S DISCUSSION AND ANALYSIS
12
Overall governmental revenues increased $3,274,474, or 18%. Licenses and permits were consistent with prior year.
Intergovernmental revenues decreased $2,343,658, or 59%, as less grant money was received compared to prior
year. Charges for services revenues increased $1,677,245, or 38%, as parking revenue has increased. Fines and
forfeitures increased $1,422,960, or 161%, because the City has implemented a new code enforcement department
and the City recognized court revenue with the implementation of a new GASB standard.
Overall governmental expenditures decreased $893,102 or 4%. General government expenditures decreased
$172,445, or 6%, due to vacant positions. Judicial expenses increased $1,176,875 or 447% as a result of a new
GASB standard, which is offset by revenue recognized. Public Safety expenditures increased $1,320,477, or 29%,
due to the creation of a new code enforcement department. Public works expenditures increased $1,254,393 or 57%,
because of significant maintenance and repairs. Capital outlays decreased $4,340,974, or 66%, because less projects
were completed in the current year.
The City’s proprietary funds provide the same type of information found in the government-wide statements but in
more detail. Other factors concerning the finances of these funds have already been addressed in the discussion of
the City’s business-type activities.
General Fund Budgetary Highlights
The final budgets passed by the City Council anticipated using $586,750 of General Fund reserves to meet expenses.
A comparison of the final budgetary figures and the actual budgetary figures for revenues are located on pages 20
through 23.
For the General Fund, the actual operating revenues were $2,431,735 more than budgeted. Operating revenues
were budgeted for $11,739,444, and actual operating revenues were $14,171,179. The most significant variance
was municipal fines which were $1,040,566 more than budgeted due to compliance with new GASB standard.
The actual operating expenditures of $14,315,364 were $1,021,936 more than the budgeted amount of
$13,293,428. $1,172,670 was attributed to municipal costs, primarily for compliance with new GASB standard.
This expense is offset by revenue. Other department deficits are offset by the anticipated surplus at year-end.
MANAGEMENT’S DISCUSSION AND ANALYSIS
13
Capital Asset and Debt Administration
Capital Assets
The City has invested $42,305,026 in capital assets (net of depreciation). Capital assets held by the City at the end
of the current and previous year are summarized below:
2021 2020 2021 2020 2021 2020
Non-depreciable assets:
Land 1,102,857$ 1,102,857$ 6,973,632$ 6,973,632$ 8,076,489$ 8,076,489$
Construction in progress - 316,938 - 405,016 - 721,954
Total non-depreciable assets 1,102,857 1,419,795 6,973,632 7,378,648 8,076,489 8,798,443
Depreciable assets:
Land improvements - - 350,314 350,314 350,314 350,314
Building 13,414,460 12,176,877 770,776 764,562 14,185,236 12,941,439
Machinery and equipment 7,866,468 7,297,963 2,195,841 2,247,505 10,062,309 9,545,468
Infrastructure 6,383,077 6,383,077 21,872,054 20,277,889 28,255,131 26,660,966
Total depreciable assets 27,664,005 25,857,917 25,188,985 23,640,270 52,852,990 49,498,187
Less accumulated depreciation 10,005,544 8,942,680 8,618,909 7,940,265 18,624,453 16,882,945
Book value - depreciable assets 17,658,461 16,915,237 16,570,076 15,700,005 34,228,537 32,615,242
Percentage depreciated 36.17%34.58%34.22%33.59%35.24%34.11%
Book value - all assets 18,761,318$ 18,335,032$ 23,543,708$ 23,078,653$ 42,305,026$ 41,413,685$
City of Tybee Island Capital Asset Year-End Comparison
Governmental Activities Business-type Activities Totals
The schedules of capital asset activity are reported in Note 5 of the financial statements. The City added $1,806,088
of new governmental capital assets.
The City added $1,720,920 of new business-type capital assets; and added $649,143 of additional construction in
progress that was completed for the business-type capital assets.
MANAGEMENT’S DISCUSSION AND ANALYSIS
14
Long-Term Debt
At the end of the current year, the City had long-term debt related to governmental activities of $4,751,864 and
$7,531,539 for business-type activities. The debt position of the City is summarized below and is more fully analyzed
in Note 6 of the financial statements.
2021 2020 Change %
Governmental Activities
Capital leases -$ -$ -$ 0.00%
Chatham County Recreation Bond 3,347,608 3,490,622 (143,014) 0.00%
Compensated absences 376,759 348,691 28,068 8.05%
Net pension liability 1,027,497 1,000,445 27,052 2.63%
Total debt service governmental-type activities 4,751,864 4,839,758 (87,894) -1.82%
Business-type activities
Chatham County Recreation Bond 2,426,950 2,866,364 (439,414) -15.33%
Water and Sewer - Series 2005 Bond 1,980,803 2,339,437 (358,634) -15.33%
Georgia Environmental Facility Authority Note Payables 2,877,469 3,041,711 (164,242) -5.40%
Compensated absences 42,855 38,838 4,017 10.34%
Net pension liability 203,462 198,557 4,905 2.47%
Total debt service business-type activities 7,531,539 8,484,907 (953,368) -11.24%
Total all debt service 12,283,403$ 13,324,665$ (1,041,262)$ -7.81%
City of Tybee Island Outstanding Long-Term Debt
Economic Factors and Next Year’s Budgets and Rates
Currently known facts, decisions or conditions that could have a significant effect on the financial position or results of
operations include:
In fiscal year 2022, the City plans to make no changes to parking fees. The city parking funds are significant as are
the cost of services for the impacts of tourists, most of whom arrive by vehicles. Thus, parking and traffic regulation
are substantial factors. No other plans for rate changes expected in 2022.
The City expects the tax digest to remain steady and approved a millage rate of 3.931 which is the same as the prior
year.
Contacting the City’s Financial Management
This financial report is designed to provide a general overview of the City's finances for all those with an interest in the
government's finances. Questions concerning any of the information provided in this report or requests for additional
financial information should be addressed to the City’s Finance Department, City Hall, 403 Butler Street, Tybee Island,
Georgia 31328 or by calling the Finance Director at (912) 472-5021.
ASSETS AND DEFERRED OUTFLOWS OF RESOURCES
ASSETS
Cash and cash equivalents $ 12,825,098 $ 1,408,831 $ 14,233,929
Taxes receivable 1,515,089 - 1,515,089
Accounts receivable, net of allowances 198,428 381,174 579,602
Due from other governments 2,190,949 - 2,190,949
Internal balances 68,699 (68,699) -
Inventory - 84,597 84,597
Prepaid expenses 288,019 220,804 508,823
Restricted assets:
Cash and cash equivalents - 405,419 405,419
Capital assets:
Nondepreciable 1,102,857 6,973,632 8,076,489
Depreciable, net of accumulated depreciation 17,658,461 16,570,076 34,228,537
Total assets 35,847,600 25,975,834 61,823,434
DEFERRED OUTFLOWS OF RESOURCES
Pension 647,744 110,027 757,771
Total deferred outflows of resources 647,744 110,027 757,771
LIABILITIES AND DEFERRED INFLOWS OF RESOURCES
LIABILITIES
Accounts payable 1,352,065 156,022 1,508,087
Accrued liabilities 121,135 22,484 143,619
Unearned revenue 1,653,231 325,098 1,978,329
Customer deposits payable 14,850 336,150 351,000
Notes payable due within one year - 166,091 166,091
Notes payable due in more than one year - 2,711,378 2,711,378
Compensated absences due within one year 226,055 42,855 268,910
Compensated absences due in more than one year 150,704 - 150,704
Bonds payable due within one year 130,000 815,376 945,376
Bonds payable due in more than one year 3,217,608 3,592,377 6,809,985
Net pension liability due in more than one year 1,027,497 203,462 1,230,959
Total liabilities 7,893,145 8,371,293 16,264,438
DEFERRED INFLOWS OF RESOURCES
Pension 206,187 20,519 226,706
Total deferred inflows of resources 206,187 20,519 226,706
NET POSITION
Net investment in capital assets 15,413,710 16,258,486 31,672,196
Restricted for capital outlay 1,745,688 - 1,745,688
Restricted for debt service 162,028 405,419 567,447
Unrestricted 11,074,586 1,030,144 12,104,730
Total net position $ 28,396,012 $ 17,694,049 $ 46,090,061
The accompanying notes are an integral part of these financial statements.
CITY OF TYBEE ISLAND, GEORGIA
STATEMENT OF NET POSITION
JUNE 30, 2021
Governmental
Activities
Business-type
Activities Total
15
CITY OF TYBEE ISLAND, GEORGIA
STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
Functions/Programs
Governmental activities:
General government $ 2,743,555 $ 806,316 $ - $ - $ (1,937,239) $ - $ (1,937,239)
Judicial 1,437,142 1,298,614 - - (138,528) - (138,528)
Public safety 6,360,400 465,619 - 988,791 (4,905,990) - (4,905,990)
Public works 3,745,771 - - 48,382 (3,697,389) - (3,697,389)
Culture and recreation 3,463,888 63,350 - 574,003 (2,826,535) - (2,826,535)
Housing and community development 1,069,934 6,480,446 - - 5,410,512 - 5,410,512
Interest on long-term debt 102,442 - - - (102,442) - (102,442)
Total governmental activities 18,923,132 9,114,345 - 1,611,176 (8,197,611) - (8,197,611)
Business-type activities:
Water and sewer 3,428,542 3,274,511 - 77,426 - (76,605) (76,605)
River's End RV Park 1,273,419 2,221,771 - - - 948,352 948,352
Solid waste collection 1,118,994 960,063 - - - (158,931) (158,931)
Total business-type activities 5,820,955 6,456,345 - 77,426 - 712,816 712,816
Total primary government $ 24,744,087 $ 15,570,690 $ - $ 1,688,602 (8,197,611) 712,816 (7,484,795)
General revenues:
Property taxes 2,278,037 - 2,278,037
Sales taxes 1,552,719 - 1,552,719
Hotel/Motel taxes 5,315,336 - 5,315,336
Franchise taxes 466,170 - 466,170
Insurance premium taxes 239,810 - 239,810
Other taxes 584,754 - 584,754
Unrestricted investment earnings 7,316 - 7,316
Transfers (158,931) 158,931 -
Total general revenues and transfers 10,285,211 158,931 10,444,142
Change in net position 2,087,600 871,747 2,959,347
Net position, beginning of year, as restated 26,308,412 16,822,302 43,130,714
Net position, end of year $ 28,396,012 $ 17,694,049 $ 46,090,061
The accompanying notes are an integral part of these financial statements.
Business-type
Activities
Program Revenues Net (Expense) Revenue and
Changes in Net PositionCapital
Total
Grants and
Contributions
Governmental
ActivitiesExpenses
Charges for
Services
Operating
Grants and
Contributions
16
ASSETS
Cash and cash equivalents $ 10,997,732 $ - $ - $ 1,827,366 $ 12,825,098
Taxes receivable, net of allowance 533,271 981,818 - - 1,515,089
Accounts receivable 103,077 - 6,809 88,542 198,428
Due from other governments 238,371 - 1,081,313 871,265 2,190,949
Due from other funds 1,541,205 - - - 1,541,205
Prepaid items 285,734 - - 2,285 288,019
Total assets $ 13,699,390 $ 981,818 $ 1,088,122 $ 2,789,458 $ 18,558,788
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
LIABILITIES
Accounts payable $ 445,289 $ 749,918 $ 149,584 $ 7,274 $ 1,352,065
Accrued liabilities 80,513 - - 3,285 83,798
Due to other funds - 231,900 938,538 302,068 1,472,506
Deposits payable 14,850 - - - 14,850
Unearned revenue - - - 571,918 571,918
Total liabilities 540,652 981,818 1,088,122 884,545 3,495,137
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - intergovernmental 4,318 - - - 4,318
Unavailable revenue - grants - - 1,081,313 - 1,081,313
Unavailable revenue - property taxes 214,398 - - - 214,398
Total deferred inflows of resources 218,716 - 1,081,313 - 1,300,029
FUND BALANCES
Nonspendable:
Prepaid items 285,734 - - 2,285 288,019
Restricted for:
Capital projects - - - 1,738,234 1,738,234
Refuse truck - - - 7,454 7,454
Tower maintenance - - - 162,028 162,028
Committed for:
Future capital projects 891,332 - - - 891,332
Refuse truck 144,900 - - - 144,900
Tower maintenance 136,500 - - - 136,500
Pavement maintenance 500,000 - - - 500,000
Assigned to:
Economic stabilization 4,301,380 - - - 4,301,380
Beach renourishment 1,264,104 - - - 1,264,104
Unassigned 5,416,072 - (1,081,313) (5,088) 4,329,671
Total fund balances 12,940,022 - (1,081,313) 1,904,913 13,763,622
Total liabilities, deferred inflows of
resources and fund balances $ 13,699,390 $ 981,818 $ 1,088,122 $ 2,789,458
Amounts reported for governmental activities in the statement of net position are different because:
Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds. 18,761,318
Other long-term assets are not available to pay for current period expenditures and, therefore, are deferred in the funds. 218,716
Certain long-term liabilities are not due and payable in the current period and are, therefore, not reported in the funds.
Net pension liability (1,027,497)
Deferred outflows of resources - pension 647,744
Deferred inflows of resources - pension (206,187)
Revenue bonds payable, including unamortized premiums of $187,608 (3,347,608)
Accrued interest payable (37,337)
Compensated absences (376,759)
Net position of governmental activities $ 28,396,012
The accompanying notes are an integral part of these financial statements.
Tax Fund Fund Funds
CITY OF TYBEE ISLAND, GEORGIA
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2021
General Grant
Total
Governmental
Fund
Nonmajor
Governmental
Funds
Motel
Hotel/
17
Revenues
Taxes $ 5,087,725 $ 5,315,336 $ - $ - $ 10,403,061
Licenses and permits 443,295 - - - 443,295
Intergovernmental 47,285 - 574,003 988,791 1,610,079
Charges for services 6,031,437 - - 78,125 6,109,562
Fines and forfeitures 2,304,440 - - - 2,304,440
Interest 7,316 - - 1,097 8,413
Other revenues 249,681 7,367 - - 257,048
Total revenues 14,171,179 5,322,703 574,003 1,068,013 21,135,898
Expenditures
Current:
General government 2,595,993 - - - 2,595,993
Judicial 1,440,226 - - - 1,440,226
Public safety 5,498,598 - - 425,190 5,923,788
Public works 3,464,679 - - - 3,464,679
Culture and recreation 243,050 2,350,246 - - 2,593,296
Housing and community development 1,072,818 - - - 1,072,818
Capital outlay - - 1,655,316 533,578 2,188,894
Debt service:
Principal - - - 125,000 125,000
Interest - - - 121,651 121,651
Total expenditures 14,315,364 2,350,246 1,655,316 1,205,419 19,526,345
Excess (deficiency) of revenues
over (under) expenditures (144,185) 2,972,457 (1,081,313) (137,406) 1,609,553
Other financing sources (uses)
Transfers in 2,722,457 - - 593,780 3,316,237
Transfers out (502,711) (2,972,457) - - (3,475,168)
Total other financing sources (uses) 2,219,746 (2,972,457) - 593,780 (158,931)
Net change in fund balances 2,075,561 - (1,081,313) 456,374 1,450,622
Fund balances, beginning of year, as restated 10,864,461 - - 1,448,539 12,313,000
Fund balances, end of year $ 12,940,022 $- $ (1,081,313) $ 1,904,913 $ 13,763,622
The accompanying notes are an integral part of these financial statements.
Grant
Fund Funds
Governmental
Nonmajor Total
Governmental
Funds
CITY OF TYBEE ISLAND, GEORGIA
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
General
Fund
Hotel/
Motel
Tax Fund
18
CITY OF TYBEE ISLAND, GEORGIA
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
Amounts reported for governmental activities in the statement of activities are different because:
Net change in fund balances - total governmental funds. $ 1,450,622
Governmental funds report capital outlays as expenditures. However, in the statement of activities, the
cost of those assets is allocated over their estimated useful lives and reported as depreciation expense.
Total capital outlay 1,489,150
Total depreciation (1,062,864)
Revenues in the statement of activities that do not provide current financial resources are not reported as
revenues in the funds.33,765
The issuance of long-term debt provides current financial resources to governmental funds, while the
repayment of the principal of long-term debt consumes the current financial resources of governmental
funds. Neither transaction, however, has any effect on net position.
Principal payments of long-term debt 125,000
Some expenses reported in the statement of activities do not require the use of current financial resources
and, therefore, are not reported as expenditures in governmental funds.
Pension expense 60,786
Amortization expense 18,014
Accrued interest 1,195
Compensated absences (28,068)
$ 2,087,600
The accompanying notes are an integral part of these financial statements.
19
Revenues
Taxes
Property taxes $ 2,034,950 $ 2,125,550 $ 2,244,272 $ 118,722
Local option sales tax 1,200,000 1,200,000 1,552,719 352,719
Franchise taxes 466,000 466,000 466,170 170
Insurance premium tax 230,000 230,000 239,810 9,810
Alcoholic beverage excise tax 290,000 290,000 431,741 141,741
Real estate transfer tax 15,000 15,000 39,997 24,997
Occupational taxes 75,000 75,000 81,936 6,936
Energy excise tax 20,030 20,030 31,080 11,050
Total taxes 4,330,980 4,421,580 5,087,725 666,145
Licenses and permits:
Regulatory fees 85,000 85,000 97,370 12,370
Building permits 95,000 95,000 121,189 26,189
Building inspections 29,000 29,000 41,702 12,702
Zoning variance request fees 2,000 2,000 1,000 (1,000)
Recording fees 1,000 1,000 2,375 1,375
Penalties 2,000 2,000 - (2,000)
Other 142,500 142,500 179,659 37,159
Total licenses and permits 356,500 356,500 443,295 86,795
Intergovernmental 55,000 55,000 47,285 (7,715)
Charges for services:
Parking fees 4,977,100 5,351,214 5,823,650 472,436
Other charges for services 179,100 182,100 207,787 25,687
Total charges for services 5,156,200 5,533,314 6,031,437 498,123
Fines and forfeitures:
Municipal fines 779,000 779,000 1,819,566 1,040,566
Parking fines 352,000 352,000 484,874 132,874
Total fines and forfeitures 1,131,000 1,131,000 2,304,440 1,173,440
Interest income 100,000 100,000 7,316 (92,684)
Miscellaneous:
Rents and royalties 66,000 66,000 60,500 (5,500)
Other 37,000 76,050 189,181 113,131
Total miscellaneous 103,000 142,050 249,681 107,631
Total revenues 11,232,680 11,739,444 14,171,179 2,431,735
Expenditures
Current:
General government
Governing body 74,088 99,688 95,678 4,010
Clerk of council 112,236 125,607 125,682 (75)
City manager 373,755 369,855 355,251 14,604
Financial administration 576,686 668,919 668,801 118
Legal 318,000 318,000 368,871 (50,871)
Information technology 813,657 869,224 791,456 77,768
Human resources 151,590 176,469 190,254 (13,785)
Total general government $ 2,420,012 $ 2,627,762 $ 2,595,993 $ 31,769
(Continued)
GENERAL FUND
CITY OF TYBEE ISLAND, GEORGIA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES − BUDGET (GAAP BASIS) AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
Budgeted Amounts
Original Final Actual
Variance
with Final
Budget
20
Expenditures (Continued)
Current (Continued):
Judicial
Municipal Court $ 277,256 $ 267,556 $ 1,440,226 $ (1,172,670)
Total judicial 277,256 267,556 1,440,226 (1,172,670)
Public safety
Police administration 2,995,413 3,385,157 3,383,294 1,863
Fire administration 1,773,814 2,074,334 2,115,304 (40,970)
Total public safety 4,769,227 5,459,491 5,498,598 (39,107)
Public works
General operations 3,195,072 3,485,664 3,464,679 20,985
Total public works 3,195,072 3,485,664 3,464,679 20,985
Culture and recreation
General operations 120,567 27,175 26,600 575
Recreation centers 168,450 168,450 168,450 -
Beach, lifeguards, dunes 65,000 48,000 48,000 -
Total culture and recreation 354,017 243,625 243,050 575
Housing and development
Zoning and inspection 544,046 569,046 450,592 118,454
Urban redevelopment 130,941 130,941 100,600 30,341
Parking 509,343 509,343 521,626 (12,283)
Total housing and development 1,184,330 1,209,330 1,072,818 136,512
Total current expenditures 12,199,914 13,293,428 14,315,364 (1,021,936)
Total expenditures 12,199,914 13,293,428 14,315,364 (1,021,936)
Deficiency of revenues
under expenditures (967,234) (1,553,984) (144,185) 1,409,799
Other financing sources (uses)
Appropriation of fund balance - 586,750 - (586,750)
Sale of assets - - - -
Transfers in 1,611,464 1,611,464 2,722,457 1,110,993
Transfers out (644,230) (644,230) (502,711) 141,519
Total other financing sources, net $ 967,234 $ 1,553,984 $ 2,219,746 $ 665,762
(Continued)
CITY OF TYBEE ISLAND, GEORGIA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES − BUDGET (GAAP BASIS) AND ACTUAL
GENERAL FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
Budgeted Amounts
Original Final Actual
Variance
with Final
Budget
21
Net change in fund balance $ - $ - $ 2,075,561 $ 2,075,561
Fund balances, beginning of year, as restated 10,864,461 10,864,461 10,864,461 -
Appropriation of fund balance - (586,750) - 586,750
Fund balances, end of year $ 10,864,461 $ 10,277,711 $ 12,940,022 $ 2,662,311
The accompanying notes are an integral part of these financial statements.
CITY OF TYBEE ISLAND, GEORGIA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES − BUDGET (GAAP BASIS) AND ACTUAL
GENERAL FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
Budgeted Amounts
Original Final Actual
Variance
with Final
Budget
22
CITY OF TYBEE ISLAND, GEORGIA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES − BUDGET (GAAP BASIS) AND ACTUAL
HOTEL/MOTEL TAX FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
Revenues
Taxes $ 3,361,000 $ 3,361,000 $ 5,315,336 $ 1,954,336
Other revenues 10,000 10,000 7,367 (2,633)
Total revenues 3,371,000 3,371,000 5,322,703 1,951,703
Expenditures
Current:
Culture and recreation 1,514,316 1,514,136 2,350,246 (836,110)
Total expenditures 1,514,316 1,514,136 2,350,246 (836,110)
Excess of revenues over expenditures 1,856,684 1,856,864 2,972,457 1,115,593
Other financing uses
Transfers out (1,856,864) (1,856,864) (2,972,457) (1,115,593)
Total other financing uses (1,856,864) (1,856,864) (2,972,457) (1,115,593)
Net change in fund balance - - - -
Fund balances, beginning of year - - - -
Fund balances, end of year $- $ - $ - $ -
The accompanying notes are an integral part of these financial statements.
Original
Budgeted Amounts
Final Actual
Variance
with Final
Budget
23
ASSETS AND DEFERRED OUTFLOWS
OF RESOURCES
ASSETS
Current assets:
Cash and cash equivalents $ 479,209 $ 929,622 $ - $ 1,408,831
Accounts receivable, net of allowances 302,261 - 78,913 381,174
Inventory 65,245 19,352 - 84,597
Prepaid expenses 138,595 82,209 - 220,804
Total current assets 985,310 1,031,183 78,913 2,095,406
Non-current assets:
Restricted cash 405,419 - - 405,419
Capital assets:
Nondepreciable 103,632 6,870,000 - 6,973,632
Depreciable, net of accumulated depreciation 15,832,777 737,299 - 16,570,076
Total non-current assets 16,341,828 7,607,299 - 23,949,127
Total assets 17,327,138 8,638,482 78,913 26,044,533
DEFERRED OUTFLOWS OF RESOURCES
Pension 70,894 38,342 791 110,027
Total deferred outflows of resources 70,894 38,342 791 110,027
LIABILITIES, DEFERRED INFLOWS
OF RESOURCES AND NET POSITION
LIABILITIES
Current liabilities:
Accounts payable 112,152 36,708 7,162 156,022
Accrued liabilities 14,047 8,437 - 22,484
Due to other funds - - 68,699 68,699
Compensated absences, current 24,329 18,526 - 42,855
Notes payable, current 166,091 - - 166,091
Bonds payable, current 366,422 448,954 - 815,376
Unearned revenue - 325,098 - 325,098
Total current liabilities 683,041 837,723 75,861 1,596,625
Non-current liabilities:
Customer deposits 336,150 - - 336,150
Notes payable, net of current portion 2,711,378 - - 2,711,378
Bonds payable, net of current portion 1,614,381 1,977,996 - 3,592,377
Net pension liability 145,532 57,930 - 203,462
Total non-current liabilities 4,807,441 2,035,926 - 6,843,367
Total liabilities 5,490,482 2,873,649 75,861 8,439,992
DEFERRED INFLOWS OF RESOURCES
Pension 11,338 5,972 3,209 20,519
Total deferred inflows of resources 11,338 5,972 3,209 20,519
NET POSITION
Net investment in capital assets 11,078,137 5,180,349 - 16,258,486
Restricted for debt service 405,419 - - 405,419
Unrestricted 412,656 616,854 634 1,030,144
Total net position $ 11,896,212 $ 5,797,203 $ 634 $ 17,694,049
The accompanying notes are an integral part of these financial statements.
Totals
CITY OF TYBEE ISLAND, GEORGIA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 30, 2021
Water and
Sewer Fund RV Park Fund
River's End Solid Waste
Collection Fund
24
CITY OF TYBEE ISLAND, GEORGIA
STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
OPERATING REVENUES
Charges for services:
Water charges $ 1,292,242 $ - $ - $ 1,292,242
Sewer charges 1,687,581 - - 1,687,581
Camping fees - 2,219,978 - 2,219,978
Stubbing fees 9,618 - - 9,618
Tapping fees 13,269 - - 13,269
Rental fees 215,234 - - 215,234
Sanitation collection fees - - 960,063 960,063
Other 56,567 1,793 - 58,360
Total operating revenues 3,274,511 2,221,771 960,063 6,456,345
OPERATING EXPENSES
Personnel services 1,229,888 528,041 - 1,757,929
Administrative 51,068 339,916 - 390,984
Utilities 223,559 142,574 - 366,133
Supplies 181,663 113,374 - 295,037
Repairs and maintenance 241,926 26,382 - 268,308
Sanitation services - - 1,118,994 1,118,994
Miscellaneous 637,462 - - 637,462
Depreciation 784,243 66,606 - 850,849
Total operating expenses 3,349,809 1,216,893 1,118,994 5,685,696
Operating income (loss) (75,298) 1,004,878 (158,931) 770,649
NON-OPERATING EXPENSES
Interest expense (78,733) (56,526) - (135,259)
Total non-operating expenses (78,733) (56,526) - (135,259)
Income (loss) before contributions and transfers (154,031) 948,352 (158,931) 635,390
CAPITAL CONTRIBUTIONS 77,426 - - 77,426
TRANSFERS
Transfers in - - 158,931 158,931
Total transfers - - 158,931 158,931
Change in net position (76,605) 948,352 - 871,747
NET POSITION, beginning of year 11,972,817 4,848,851 634 16,822,302
NET POSITION, end of year $ 11,896,212 $ 5,797,203 $ 634 $ 17,694,049
The accompanying notes are an integral part of these financial statements.
Totals
Water and
Sewer Fund
River's End
RV Park Fund
Solid Waste
Collection Fund
25
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers and users $ 3,258,380 $ 2,329,059 $ 1,032,788 $ 6,620,227
Payments to suppliers (1,405,778) (643,169) (1,204,029) (3,252,976)
Payments to employees (1,236,522) (528,413) - (1,764,935)
Net cash provided by (used in)
operating activities 616,080 1,157,477 (171,241) 1,602,316
CASH FLOWS FROM NON-CAPITAL
FINANCING ACTIVITIES
Transfers in - - 158,931 158,931
Net cash provided by non-capital
financing activities - - 158,931 158,931
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition and construction of capital assets (1,220,908) (17,570) - (1,238,478)
Principal paid on bonds (358,634) (439,414) - (798,048)
Principal paid on notes payable (164,242) - - (164,242)
Interest paid (71,677) (53,225) - (124,902)
Net cash used in capital
and related financing activities (1,815,461) (510,209) - (2,325,670)
Net change in cash and cash equivalents (1,199,381) 647,268 (12,310) (564,423)
Cash and cash equivalents, beginning of year 2,084,009 282,354 12,310 2,378,673
Cash and cash equivalents, end of year $ 884,628 $ 929,622 $ - $ 1,814,250
Classified as
Cash and cash equivalents $ 479,209 $ 929,622 $ - $ 1,408,831
Restricted assets: cash 405,419 - - 405,419
$ 884,628 $ 929,622 $ - $ 1,814,250
(Continued)
Totals
CITY OF TYBEE ISLAND, GEORGIA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
Water and
Sewer Fund
River's End
RV Park Fund
Solid Waste
Collection Fund
26
CITY OF TYBEE ISLAND, GEORGIA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
Reconciliation of operating income (loss) to net
cash provided by (used in) operating activities
Operating income (loss) $ (75,298) $ 1,004,878 $ (158,931) $ 770,649
Adjustments to reconcile operating income (loss)
to net cash provided by (used in) operating activities
Depreciation 784,243 66,606 - 850,849
Change in assets and liabilities:
(Increase) decrease:
Accounts receivable (44,731) - 4,026 (40,705)
Inventory 55,767 6,624 - 62,391
Prepaid expenses (41,532) (41,733) - (83,265)
Increase (decrease):
Accounts payable (84,335) 14,186 (85,035) (155,184)
Accrued expenses 458 3,559 - 4,017
Customer deposits 28,600 107,288 - 135,888
Net pension liability (7,092) (3,931) - (11,023)
Due to other funds - - 68,699 68,699
Net cash provided by (used in) operating activities $ 616,080 $ 1,157,477 $ (171,241) $ 1,602,316
Noncash capital and related financing activities
Contributions from developers $ 77,426 $ - $ - $ 77,426
The accompanying notes are an integral part of these financial statements.
Totals
Water and
Sewer Fund
River's End
RV Park Fund Collection Fund
Solid Waste
27
CITY OF TYBEE ISLAND, GEORGIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
28
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements of the City of Tybee Island, Georgia (the “City”) have been prepared in
conformity with accounting principles generally accepted in the United States of America (“GAAP”)
as applied to governmental units. The Governmental Accounting Standards Board (“GASB”) is the
accepted standard-setting body for establishing governmental accounting and financial reporting
principles. The more significant accounting policies of the City are described below.
A. Reporting Entity
The City was incorporated October 15, 1887. The City operates under the Council–City Manager
form of government and provides the following services to its citizens as authorized by its charter:
public safety (police and fire), highways and streets, water and sewer, sanitation, culture and
recreation, planning and zoning, and general and administrative services. As required by generally
accepted accounting principles, the financial statements of the reporting entity include the accounts
of all City operations and all activities of the City.
As required by accounting principles generally accepted in the United States of America, the
financial statements of the reporting entity should include those of the City and its component unit.
The Downtown Development Authority (the “Authority”) was activated by the Mayor and City
Council in August 2014. The Authority is part of the City’s Main Street Program and Directors serve
as the Tybee Island Main Street Board of Directors for the Authority. Program Directors are
appointed by City Council to provide assistance and opportunities as available that encourage
economic growth and development while preserving the unique architectural and community
heritage. The Authority had no financial activity during the fiscal year ended June 30, 2021.
B. Government-wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net position and the statement of
activities) report information on all of the non-fiduciary activities of the primary government.
Governmental activities, which normally are supported by taxes and intergovernmental revenues,
are reported separately from business-type activities, which rely to a significant extent on fees and
charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given
function or segment are offset by program revenues. Direct expenses are those that are clearly
identifiable with a specific function or segment. Program revenues include: (1) charges to
customers or applicants who purchase, use, or directly benefit from goods, services, or privileges
provided by a given function or segment, and (2) grants and contributions that are restricted to
meeting the operational or capital requirements of a particular function or segment. Taxes and other
items not properly included among program revenues are reported instead as general revenues.
NOTES TO FINANCIAL STATEMENTS
29
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
B. Government-wide and Fund Financial Statements (Continued)
Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary
funds, even though the latter are excluded from the government-wide financial statements. Major
individual governmental funds and major individual enterprise funds are reported as separate
columns in the fund financial statements.
The government-wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting, as are the proprietary fund and the
fiduciary fund financial statements, although the agency fund has no measurement focus.
Revenues are recorded when earned and expenses are recorded when a liability is incurred,
regardless of the timing of the related cash flows. Property taxes are recognized as revenues in the
year for which they are levied. Grants and similar items are recognized as revenue as soon as all
eligibility requirements imposed by the provider have been met.
C. Measurement Focus, Basis of Accounting and Basis of Presentation
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are recognized as
soon as they are both measurable and available. Revenues are considered to be available when
they are collectible within the current period or soon enough thereafter to pay liabilities of the
current period. For this purpose, the City considers revenues to be available if they are collected
within 60 days of the end of the current fiscal period. Expenditures, generally, are recorded when a
liability is incurred, as under accrual accounting. However, debt service expenditures, as well as
expenditures related to compensated absences and claims and judgments, are recorded only when
payment is due.
Property taxes, sales taxes, franchise taxes, licenses, charges for services, and investment income
associated with the current fiscal period are all considered to be susceptible to accrual and so have
been recognized as revenues of the current fiscal period. All other revenue items are considered to
be measurable and available only when cash is received by the City.
The City reports the following major governmental funds:
The General Fund is the City’s primary operating fund. It accounts for all financial
resources of the general government, except those required to be accounted for in another
fund.
The Hotel/Motel Tax Fund accounts for the Hotel/Motel accommodation excise tax
receipts and distributions to tourism promoting organizations as required by agreements
with these organizations.
NOTES TO FINANCIAL STATEMENTS
30
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. Measurement Focus, Basis of Accounting and Basis of Presentation
(Continued)
The Grant Fund accounts for the receipts and disbursements of various capital grants
received by the City.
The City reports the following major proprietary funds:
The Water and Sewer Fund accounts for the provision of water and sewer services to the
residents of the City. All activities necessary to provide such services are accounted for in
this fund.
The River’s End RV Park Fund accounts for the revenues and operating costs of the City's
River’s End RV Park. All activities necessary to provide such services are accounted for in
this fund.
The Solid Waste Collection Fund accounts for the provision of sanitation collection services
to the residents of the City. All activities necessary to provide such services are accounted
for in this fund.
Additionally, the City reports the following fund types:
The Special Revenue Funds account for revenue sources that are legally restricted to
expenditures for specific purposes.
The Capital Projects Funds account for expenditures for capital improvements made by the
City. Financing is provided by SPLOST and grants.
As a general rule, the effect of interfund activity has been eliminated from the government-wide
financial statements. Exceptions to this general rule are payments-in-lieu of taxes and other
charges between the City’s water, sewer, gas and solid waste functions and various other functions
of the City. Elimination of these charges would distort the direct costs and program revenues
reported for the various functions concerned.
NOTES TO FINANCIAL STATEMENTS
31
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. Measurement Focus, Basis of Accounting and Basis of Presentation
(Continued)
Amounts reported as program revenues include: (1) charges to customers or applicants for goods,
services, or privileges provided, (2) operating grants and contributions, and (3) capital grants and
contributions. Internally dedicated resources are reported as general revenues rather than as
program revenues. Likewise, general revenues include all taxes.
Proprietary funds distinguish operating revenues and expenses from non-operating items.
Operating revenues and expenses generally result from providing services and producing and
delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal
operating revenues of the proprietary funds are charges to customers for sales and services
provided. The City also recognizes as operating revenue, the portion of tap fees intended to recover
the cost of connecting new customers to the system. Operating expenses for the proprietary funds
include the cost of sales and services, administrative expenses, and depreciation on capital assets.
All revenues and expenses not meeting this definition are reported as non-operating revenues and
expenses.
D. Budgets and Budgetary Accounting
Budgets are adopted on a basis consistent with accounting principles generally accepted in the
United States of America. Annual appropriated budgets are adopted for the General Fund, the
Hotel/Motel Tax Fund, the Emergency 911 Fund, the Confiscated Assets Fund, the FEMA/GEMA
Grant Fund, and the American Rescue Act Fund. All appropriations lapse at the end of the June
30th fiscal year. Revenues and expenditures of the Capital Projects Fund are budgeted on a project
length basis and are, therefore, excluded from presentation in the financial statements.
Encumbrance accounting, under which purchase orders, contracts, and other commitments for the
expenditure of monies are recorded in order to reserve that portion of the applicable appropriation,
is not employed by the City because it is at present not considered necessary to assure effective
budgetary control or to facilitate effective cash planning and control.
E. Cash and Cash Equivalents
Cash equivalents are defined as short-term, highly liquid investments that are both readily
convertible to known amounts of cash and so near their maturity that they present insignificant risk
of changes in value because of changes in interest rates. Generally, only investments with original
maturities of three months or less meet this definition.
For purposes of the statements of cash flows, the City considers all highly liquid investments
(including restricted assets) with a maturity of three months or less when purchased to be cash
equivalents.
NOTES TO FINANCIAL STATEMENTS
32
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
F. Inventory and Prepaid Items
Inventories are valued at average cost, which approximates market, using the first-in/first-out
(“FIFO”) method. The City accounts for inventory on the purchase basis. Prepaid
expenditures/expenses are accounted for using the consumption method. A prepaid item is
recognized when a cash expenditure is made for goods or services that were purchased for
consumption, but not consumed as of June 30.
G. Short-Term Interfund Receivables/Payables
During the course of operations, numerous transactions occur between individual funds for goods
provided or services rendered. These receivables and payables are classified as “due from other
funds” or “due to other funds” in the fund financial statements. Short-term interfund loans are
classified as “interfund receivables/payables”. Long-term interfund loans are classified as advances.
Any residual balances outstanding between the governmental activities and business-type activities
are reported in the government-wide financial statements as "internal balances."
H. Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads,
bridges, sidewalks, and similar items), are reported in the applicable governmental or business-type
activities column in the government-wide financial statements. Capital assets are defined by the
City as assets with an initial, individual cost of more than $5,000 and an estimated useful life in
excess of two years. Such assets are recorded at historical cost or estimated historical cost if
purchased or constructed. Donated capital assets are recorded at their acquisition value at the
date of donation.
In the case of the initial capitalization of general infrastructure assets (i.e., those reported by
governmental activities), the City chose not to include all such items regardless of their acquisition
date, but rather only those infrastructure assets acquired subsequent to the adoption of GASB No.
34 as allowed by the GASB. As the City constructs or acquires additional capital assets each
period, including infrastructure assets, they are capitalized and reported at historical cost. The
costs of normal maintenance and repairs that do not add to the value of the asset or materially
extend useful lives are expensed as incurred.
Major outlays for capital assets and major improvements are capitalized as projects are
constructed. Interest incurred during the construction period of capital assets of the business-type
activities is included as part of the capitalized value of the assets constructed. The amount of
interest capitalized is calculated by offsetting interest expense incurred (from the date of borrowing
until the date of completion of the project) with interest earned on investment proceeds over the
same period.
NOTES TO FINANCIAL STATEMENTS
33
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
H. Capital Assets (Continued)
Capital assets of the primary government are depreciated using the straight-line method over the
following estimated useful lives:
Assets Years
Land improvements 20
Buildings and improvements 10 – 40
Machinery and equipment 5 – 20
Infrastructure 20 – 50
Utility systems and improvements 20 – 50
I. Long-Term Liabilities
In the government-wide financial statements and proprietary fund types in the fund financial
statements, long-term debt and other long-term obligations are reported as liabilities in the
applicable governmental activities, business-type activities, or proprietary fund type statement of net
position. Bond premiums and discounts are deferred and amortized over the life of the bonds using
the effective interest method. Bonds payable are reported net of the applicable bond premium or
discount. Bond issuance costs are reported as expenses in the year the debt is issued.
In the fund financial statements, governmental fund types recognize bond premiums and discounts,
as well as bond issuance costs, during the current period. The face amount of debt issued is
reported as other financing sources while discounts on debt issuances are reported as other
financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received,
are reported as debt service expenditures.
J. Compensated Absences
It is the City’s policy to permit employees to accumulate earned but unused vacation and sick pay
benefits. There is no liability for non-vesting accumulated rights to receive sick pay benefits since
the City does not have a policy to pay any amounts when employees separate from service with the
City. All vacation pay is accrued when incurred in the government-wide and proprietary fund
financial statements. A liability for these amounts is reported in the governmental funds only if they
have matured, for example, as a result of employee resignations and retirements. An employee
may be compensated for up to 65 days of sick leave at a rate of $25.00 per day upon retirement or
death. In the event the payment is owed as a result of the death of the employee, the payment will
be made to the beneficiary designated by the employee for this purpose and/or the
representative(s) of the employee’s estate if no beneficiary is designated.
NOTES TO FINANCIAL STATEMENTS
34
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
K. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position will sometimes report a separate section for
deferred outflows of resources. This separate financial statement element, deferred outflows of
resources, represents a consumption of net position that applies to a future period(s) and so will not
be recognized as an outflow of resources (expense/expenditure) until then. Other than the items
related to the changes in the net pension liability as discussed below, the City did not have any
items that qualified for reporting in this category.
In addition to liabilities, the statement of net position will sometimes report a separate section for
deferred inflows of resources. This separate financial statement element, deferred inflows of
resources, represents an acquisition of fund balance that applies to a future period(s) and so will
not be recognized as an inflow of resources (revenue) until that time. In addition to the items related
to the changes in the net pension liability as discussed below, the City has one item, which arises
only under the modified accrual basis of accounting that qualifies for reporting in this category.
Unavailable revenue is reported only in the governmental funds balance sheet. The governmental
funds report unavailable revenues from property taxes, intergovernmental revenues, and grants not
received within 60 days after year-end. These amounts are deferred and will be recognized as an
inflow of resources in the period in which the amounts become available.
The City also has deferred inflows and outflows related to the recording of changes in its net
pension liability. Certain changes in the net pension liability are recognized as pension expense
over time, instead of all being recognized in the year of occurrence. Experience gains or losses
result from periodic studies by the City’s actuary which adjust the net pension liability for actual
experience for certain trend information that was previously assumed, for example, the assumed
dates of retirement of plan members. These experience gains or losses are recorded as deferred
outflows of resources or deferred inflows of resources and are amortized in pension expense over
the expected remaining service lives of plan members. The difference between projected
investment return on pension investments and actual return on those investments is also deferred
and amortized against pension expense over a five-year period. Changes in actuarial assumptions,
which adjust the net pension liability, are also recorded as deferred outflows of resources and are
amortized into pension expense over the expected remaining service lives of plan members.
Additionally, any contributions made by the City to the pension plan before year-end but subsequent
to the measurement date of the City’s net pension liability are reported as deferred outflows of
resources.
NOTES TO FINANCIAL STATEMENTS
35
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
L. Pensions
For purposes of measuring the net pension liability, deferred outflows of resources and deferred
inflows of resources related to pensions, and pension expense, information about the fiduciary net
position of the City of Tybee Island Retirement Plan (the “Plan”) and additions to/deductions from
the Plan’s fiduciary net position have been determined on the same basis as they are reported by
the Plan. For this purpose, benefit payments are recognized when due and payable in accordance
with the benefit terms. Investments are reported at fair value.
M. Fund Equity
Fund equity at the governmental fund financial reporting level is classified as “fund balance.” Fund
equity for all other reporting is classified as “net position.”
Fund Balance – Generally, fund balance represents the difference between the assets and
liabilities under the current financial resources measurement focus of accounting.
In the fund financial statements, governmental funds report fund balance classifications that
comprise a hierarchy based primarily on the extent to which the City is bound to honor constraints
on the specific purposes for which amounts in those funds can be spent. Fund balances are
classified as follows:
Nonspendable – Fund balances are reported as nonspendable when amounts cannot be
spent because they are either: (a) not in spendable form (i.e., items that are not expected to be
converted to cash), or (b) legally or contractually required to be maintained intact.
Restricted – Fund balances are reported as restricted when there are limitations imposed on
their use either through the enabling legislation adopted by the City or through external
restrictions imposed by creditors, grantors, or laws or regulations of other governments.
Committed – Fund balances are reported as committed when they can be used only for
specific purposes pursuant to constraints imposed by formal action of the City Council through
the adoption of a resolution. Only the City Council may modify or rescind the commitment.
Assigned – Fund balances are reported as assigned when amounts are constrained by the
City’s intent to be used for specific purposes, but are neither restricted nor committed. Through
resolution, City Council has authorized the Director of Finance to assign fund balance.
Unassigned – Fund balances are reported as unassigned as the residual amount when the
balances do not meet any of the above criterion. The City reports positive unassigned fund
balance only in the General Fund. Negative unassigned fund balances may be reported in all
funds.
NOTES TO FINANCIAL STATEMENTS
36
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
M. Fund Equity (Continued)
Fund Balance (Continued)
Flow Assumptions – When both restricted and unrestricted amounts of fund balance are available
for use for expenditures incurred, it is the City’s policy to use restricted amounts first and then
unrestricted amounts as they are needed. For unrestricted amounts of fund balance, it is the City’s
policy to use fund balance in the following order: (1) committed, (2) assigned, and (3) unassigned.
Net Position – Net position represents the difference between assets and liabilities in reporting
which utilizes the economic resources measurement focus. Net investment in capital assets, net of
related debt, consists of capital assets, net of accumulated depreciation, reduced by the
outstanding balances of any borrowing used (i.e., the amount that the City has spent) for the
acquisition, construction or improvement of those assets. Net position is reported as restricted,
using the same definition as used for restricted fund balance as described in the section above. All
other net position are reported as unrestricted.
The City applies restricted resources first when an expense is incurred for purposes for which both
restricted and unrestricted net position is available.
N. Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted
in the United States of America requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities, the disclosure of contingent assets and
liabilities at the date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from those estimates.
NOTES TO FINANCIAL STATEMENTS
37
NOTE 2. LEGAL COMPLIANCE – BUDGETS
A. Budgets and Budgetary Accounting
The City follows these procedures in establishing the budgetary data reflected in the financial
statements:
1. Prior to the beginning of the fiscal year, the various departments submit to the governing
Council, a proposed operating budget for the fiscal year commencing the following July 1st.
2. Public hearings are conducted at the City Hall to obtain taxpayer comments.
3. Prior to the beginning of the year, the budget is formally enacted through passage of a
resolution by the City Council.
4. Formal budgetary integration is employed as a management control device during the year for
the General Fund and the special revenue funds. Project length budgets are adopted for the
Capital Projects Fund.
5. The budget for the General Fund and special revenue funds are adopted on a basis consistent
with GAAP.
6. The governing Council must approve all revisions. Expenditures should not exceed the legally
adopted budget at the department level without Council action amending the budget. All
appropriations lapse at the end of each fiscal year.
Budgeted amounts are as originally adopted, or as amended by the City Council. Individual
amendments were not material in relation to the original appropriations.
NOTES TO FINANCIAL STATEMENTS
38
NOTE 2. LEGAL COMPLIANCE – BUDGETS (CONTINUED)
B. Excess of Expenditures Over Appropriations
For the year ended June 30, 2021, the following departments of the General Fund and Hotel/Motel
Tax Fund had excess of actual expenditures over appropriations. The over-expenditures were
funded by excess revenues over appropriations.
Excess
General Fund:
General government
Clerk of court 75$
Legal 50,871
Human resources 13,785
Judicial
Municipal court 1,172,670
Public safety
Fire administration 40,970
Housing and development
Parking 12,283
Hotel/Motel Tax Fund:
Culture and recreation 836,110
C. Deficit Fund Balance
The following funds reported a deficit fund balance for the fiscal year ended June 30, 2021: E-911
Fund’s deficit fund balance of $2,803 and the Grant Fund’s deficit fund balance of $1,801,313. The
E-911 deficit is intended to be eliminated through increased charges for services or interfund
transfers. The Grant deficit is intended to be eliminated through the receipt of revenues in the next
fiscal year that were unavailable as of June 30, 2021.
NOTES TO FINANCIAL STATEMENTS
39
NOTE 3. CASH AND INVESTMENTS
Total cash and investments as of June 30, 2021 are summarized as follows:
Amounts as presented on the government-wide statement of net position:
Cash and cash equivalents $ 14,233,929
Restricted cash and cash equivalents 405,419
Total $ 14,639,348
Cash deposited with financial institutions $ 14,639,348
Total $ 14,639,348
State statutes authorize the City to invest in obligations of the U.S. Government and agencies or
corporations of the U.S. Government; obligations of any state; obligations of any political
subdivision of any state; certificates of deposit or time deposits of any national state bank or savings
and loan which have deposits insured by the FDIC or FSLIC; prime bankers’ acceptances;
repurchase agreements; and the Local Government Investment Pool of the State of Georgia
(“Georgia Fund 1”). As of June 30, 2021, the City does not have any investments.
Interest rate risk. As a means of limiting its exposure to fair value losses arising from fluctuating
interest rates, the City's investment policy has been established to structure the investment portfolio
so that securities mature to meet the City's cash requirements for ongoing operations, thereby
avoiding the need to sell securities prior to maturity as well as investing operating funds primarily in
short-term securities, money market funds, certificates of deposit or similar investment pools. As of
June 30, 2021, the City does not have any investments.
Custodial credit risk – deposits. Custodial credit risk for deposits is the risk that, in the event of
the failure of a depository financial institution, a government will not be able to recover deposits or
will not be able to recover collateral securities that are in the possession of an outside party. State
statutes require all deposits and investments (other than federal or state government instruments)
to be collateralized by depository insurance, obligations of the U.S. Government, or bonds of public
authorities, counties, or municipalities. At June 30, 2021, the City was not exposed to custodial
credit risk for its deposits.
Custodial credit risk – investments. Custodial credit risk for investments is the risk that, in the
event of the failure of the counterparty, the City will not be able to recover the value of its
investments or collateral securities that are in the possession of an outside party. State statutes
require all investments (other than federal or state government instruments) to be collateralized by
depository insurance, obligations of the U.S. Government, or bonds of public authorities, counties,
or municipalities. As of June 30, 2021, the City does not have any investments.
NOTES TO FINANCIAL STATEMENTS
40
NOTE 4. RECEIVABLES
Property taxes were levied in two installments on September 15, 2020 with a due date of
November 15, 2020, and again on April 1, 2021 with a due date of June 1, 2021. Taxes are
considered delinquent after November 15 and June 1 for the respective levy dates, which would
also be the lien date. The net receivables collected during the year ended June 30, 2021 and
expected to be collected by August 31, 2021, are recognized as revenues in the year ended June
30, 2021. Net receivables estimated to be collectible subsequent to August 31, 2021 are recorded
as revenue when received. Receivables as of year-end, including the applicable allowances for
uncollectible accounts, are as follows:
Receivables:
Taxes $ 546,471 $ 981,818 $ - $ - $ - $ - $ 1,528,289
Due from other
governments 238,371 - 1,081,313 871,265 - - 2,190,949
Accounts 103,077 - 6,809 88,542 332,683 87,274 618,385
Gross receivables 887,919 981,818 1,088,122 959,807 332,683 87,274 4,337,623
Less: allowance for
uncollectibles (13,200) - - - (30,422) (8,361) (51,983)
Net total receivables $ 874,719 $ 981,818 $ 1,088,122 $ 959,807 $ 302,261 $ 78,913 $ 4,285,640
Grant
Water Solid Waste
and Sewer Collection
Nonmajor
TotalFund
General
Fund FundFunds
Governmental
Fund Fund
Hotel/Motel
NOTES TO FINANCIAL STATEMENTS
41
NOTE 5. CAPITAL ASSETS
Capital asset activity for the fiscal year ended June 30, 2021 is as follows:
Governmental activities:
Capital assets, not being
depreciated:
Land $ 1,102,857 $ - $ - $ - $ 1,102,857
Construction in progress 316,938 - - (316,938) -
Total capital assets, not
being depreciated 1,419,795 - - (316,938) 1,102,857
Capital assets, being depreciated:
Buildings and improvements 12,176,877 920,645 - 316,938 13,414,460
Machinery and equipment 7,297,963 568,505 - - 7,866,468
Infrastructure 6,383,077 - - - 6,383,077
Total capital assets,
being depreciated 25,857,917 1,489,150 - 316,938 27,664,005
Less accumulated depreciation for:
Buildings and improvements (2,124,299) (295,412) - - (2,419,711)
Machinery and equipment (4,594,495) (626,218) - - (5,220,713)
Infrastructure (2,223,886) (141,234) - - (2,365,120)
Total accumulated depreciation (8,942,680) (1,062,864) - - (10,005,544)
Total capital assets, being
depreciated, net 16,915,237 426,286 - 316,938 17,658,461
Governmental activities capital
assets, net $ 18,335,032 $ 426,286 $ - $ - $ 18,761,318
Balance
Beginning
Increases Decreases Transfers Balance
Ending
NOTES TO FINANCIAL STATEMENTS
42
NOTE 5. CAPITAL ASSETS (CONTINUED)
Business-type activities
Capital assets, not being
depreciated:
Construction in progress $ 405,016 $ 244,127 $ - $ (649,143) $ -
Land 6,973,632 - - - 6,973,632
Total capital assets, not
being depreciated 7,378,648 244,127 - (649,143) 6,973,632
Capital assets, being depreciated:
Land improvements 350,314 - - - 350,314
Buildings 764,562 6,214 - - 770,776
Utility systems and improvements 20,277,889 1,047,207 (102,185) 649,143 21,872,054
Machinery and equipment 2,247,505 18,356 (70,020) - 2,195,841
Total capital assets,
being depreciated 23,640,270 1,071,777 (172,205) 649,143 25,188,985
Less accumulated depreciation for:
Land improvements (171,390) (22,930) - - (194,320)
Buildings (187,203) (29,365) - - (216,568)
Utility systems and improvements (6,438,143) (631,547) 102,185 - (6,967,505)
Machinery and equipment (1,143,529) (167,007) 70,020 - (1,240,516)
Total accumulated depreciation (7,940,265) (850,849) 172,205 - (8,618,909)
Total capital assets, being
depreciated, net 15,700,005 220,928 - 649,143 16,570,076
Business-type activities capital
assets, net $ 23,078,653 $ 465,055 $ - $ - $ 23,543,708
Balance
EndingBeginning
Balance Increases Decreases Transfers
Depreciation expense was charged to functions/programs of the primary government as follows:
$ 148,654
419,633
220,996
Culture and recreation 273,581
Total depreciation expense - governmental activities $ 1,062,864
$ 784,243
River's End RV Park 66,606
Total depreciation expense - business-type activities $ 850,849
Water and sewer
Governmental activities:
General government
Public safety
Public works
Business-type activities:
NOTES TO FINANCIAL STATEMENTS
43
NOTE 6. LONG-TERM DEBT
Changes in Long-Term Liabilities
Long-term liability activity for the year ended June 30, 2021 is as follows:
Governmental activities
Revenue bonds payable $ 3,285,000 $ - $ (125,000) $ 3,160,000 $ 130,000
Plus bond premium 205,622 - (18,014) 187,608 -
Total bonds payable 3,490,622 - (143,014) 3,347,608 130,000
Compensated absences 348,691 592,553 (564,485) 376,759 226,055
Net pension liability 1,000,445 1,140,261 (1,113,209) 1,027,497 -
Governmental activity
long-term liabilities $ 4,839,758 $ 1,732,814 $ (1,820,708) $ 4,751,864 $ 356,055
Business-type activities
Notes payable $ 3,041,711 $ - $ (164,242) $ 2,877,469 $ 166,091
Revenue bonds payable 5,205,801 - (798,048) 4,407,753 815,376
Compensated absences 38,838 72,916 (68,899) 42,855 42,855
Net pension liability 198,557 206,104 (201,199) 203,462 -
Business-type activity
long-term liabilities $ 8,484,907 $ 279,020 $ (1,232,388) $ 7,531,539 $ 1,024,322
Due Within
One Year
Beginning
Balance Additions Reductions
Ending
Balance
For the governmental activities, compensated absences and the net pension liability are generally
liquidated by the General Fund. For the business-type activities, compensated absences and the
net pension liability are liquidated by the Water and Sewer Fund and the River’s End RV Park Fund.
NOTES TO FINANCIAL STATEMENTS
44
NOTE 6. LONG-TERM DEBT (CONTINUED)
Revenue Bonds
The City issues bonds where the City pledges income derived from the acquired or constructed
assets to pay debt service. The City’s outstanding bonds at June 30, 2021 are as follows:
Original
Description Amount Interest Rate Due Date
Chatham County Recreation Authority
Refunding Revenue Bond, Series 2016 4,466,000$ 2.15% 2026 $ 2,426,949
Water and Sewer Refunding Revenue
Bonds, Series 2016 3,750,000 2.15% 2026 1,980,804
Chatham County Recreation Authority
Revenue Bond, Series 2019 3,410,000 3% - 4% 2039 3,160,000
7,567,753
Add unamortized bond premium 187,608
Less current portion (945,376)
$ 6,809,985
Amount
Chatham County Recreation Authority Refunding Revenue Bonds (City of Tybee Island –
Campground Project), Series 2016
The City of Tybee Island entered into an intergovernmental agreement with the Chatham County
Recreation Authority to issue the Chatham County Recreation Authority Refunding Revenue Bonds
(City of Tybee Island – Campground Project), Series 2016. The Series 2016 bonds were issued on
August 1, 2016 to: (1) refund and redeem all of the outstanding Series 2006 Bonds, and (2) pay the
necessary costs of issuing the bonds. These bonds are secured by and payable from revenues to
be received by the Authority from the City pursuant to the intergovernmental agreement.
City of Tybee Island Water and Sewer Refunding Revenue Bond, Series 2016
The City of Tybee Island Water and Sewer Refunding Revenue Bond, Series 2016 was issued in
August 1, 2016. The Series 2016 bond was used to: (1) fully pay off three loans with Georgia
Environmental Facilities Authority, and (2) pay the necessary costs of issuing the bonds. These
bonds are secured by and payable from net revenues of the City’s water and sewer system.
NOTES TO FINANCIAL STATEMENTS
45
NOTE 6. LONG-TERM DEBT (CONTINUED)
Revenue Bonds (Continued)
Chatham County Recreation Authority Revenue Bond, Series 2019
The City of Tybee Island entered into an intergovernmental agreement with the Chatham County
Recreation Authority to issue the Chatham County Recreation Authority Revenue Bonds (Tybee
Island Marine Science Center Project), Series 2019. The Series 2019 bonds were issued on
February 14, 2019 to finance a new Tybee Island Marine Science Center in the City, which includes
recreational picnic and playground areas, a dune walk, and climbable marine life replicas. These
bonds are secured under the provisions of an intergovernmental contract with the City.
Revenue bond debt service requirements to maturities, including interest, are as follows:
Fiscal Year Payable
2022 $
1,149,289 $ 945,376 $ 203,913
2023 1,150,388 968,080 182,308
2024 1,146,339 986,169 160,170
2025 1,147,289 1,009,650 137,639
2026 1,151,689 1,038,534 113,155
2027 – 2031 1,376,592 969,939 406,653
2032 – 2036 1,223,600 970,000 253,600
2037 – 2039 735,005 680,005 55,000
$ 9,080,191 $ 7,567,753 $ 1,512,438
Total Principal Interest
Notes Payable
The Water and Sewer Fund has incurred debt to the Georgia Environmental Facilities Authority for
water and sewer system improvements. These notes are as follows at June 30, 2021:
Original
Description Amount Interest Rate Due Date
Water line extensions and lift stations 1,601,090$ 1.40% 2035 $ 1,204,459
Water and sewer improvements 1,361,000 0.89% 2038 1,189,746
Water and sewer improvements 568,973 0.89% 2038 483,264
2,877,469
Less current portion (166,091)
$ 2,711,378
Amount
NOTES TO FINANCIAL STATEMENTS
46
NOTE 6. LONG-TERM DEBT (CONTINUED)
Notes Payable (Continued)
Total notes payable service requirements to maturity are as follows:
Fiscal Year Payable
2022 $
186,663 $ 166,091 $ 20,572
2023 187,232 167,965 19,267
2024 187,808 169,861 17,947
2025 188,389 171,779 16,610
2026 188,973 173,719 15,254
2027 – 2031 953,829 898,520 55,309
2032 – 2036 906,349 904,569 1,780
2037 – 2039 225,452 224,965 487
$ 3,024,695 $ 2,877,469 $ 147,226
Total Principal Interest
NOTE 7. INTERFUND BALANCES AND TRANSFERS
Interfund balances for the fiscal year ended June 30, 2021 consisted of the following:
Due To
General Fund $ 938,538 $ 231,900 $ 302,068 $ 68,699 $ 1,541,205
Total $ 938,538 $ 231,900 $ 302,068 $ 68,699 $ 1,541,205
Fund
Due From
Hotel/Motel
Grant Tax
Fund Fund Funds Total
Nonmajor Solid Waste
CollectionGovernmental
These amounts represent short-term receivables and payables. The balances resulted from the
time lag between dates that: (1) interfund goods and services are provided or reimbursable
expenditures occur, (2) transactions are recorded in the accounting system, and (3) payments
between funds are made.
NOTES TO FINANCIAL STATEMENTS
47
NOTE 7. INTERFUND BALANCES AND TRANSFERS (CONTINUED)
Interfund transfers for the fiscal year ended June 30, 2021 consisted of the following:
Transfer To
General Fund $ - $ 2,722,457 $ 2,722,457
Solid Waste Fund 158,931 - 158,931
Nonmajor Governmental Funds 343,780 250,000 593,780
Total $ 502,711 $ 2,972,457 $ 3,475,168
Fund Fund Total
Transfer From
General Hotel/Motel
Transfers are used to: (1) move revenues from the fund that statute or budget requires to collect
them to the fund that the statute or budget requires to expend them, and (2) use unrestricted
revenues collected in the Hotel/Motel Tax Fund to finance various programs accounted for in other
funds in accordance with budgetary authorizations.
NOTE 8. DEFINED BENEFIT PENSION PLAN
Plan Description
The City has established a non-contributory defined benefit pension plan City of Tybee Island
Retirement Plan (the “Plan”), covering substantially all of the City’s employees. The City’s pension
plan is administered through the Georgia Municipal Employee Benefit System (“GMEBS”), an agent
multiple-employer pension plan administered by the Georgia Municipal Association. The Plan
provides retirement and disability benefits, annual cost of living adjustments, and death benefits to
Plan members and beneficiaries. Benefits are provided by the Plan whereby retirees receive 1.5% –
2%, based on the dynamic breakpoint formula, multiplied by the average of the five highest years of
regular earnings multiplied by the total credited years of service. The City Council, in its role as the
Plan sponsor, has the governing authority to establish and amend, from time to time, the benefits
provided and the contribution rates of the City and its employees. The Georgia Municipal
Association issues a publicly available financial report that includes financial statements and
required supplementary information for GMEBS. That report may be obtained at www.gmanet.com,
by writing to Georgia Municipal Association, Risk Management and Employee Benefit Services, 201
Pryor Street, NW, Atlanta, Georgia 30303 or by calling (404) 688-0472.
NOTES TO FINANCIAL STATEMENTS
48
NOTE 8. DEFINED BENEFIT PENSION PLAN (CONTINUED)
Plan Description (Continued)
Plan membership. As of January 1, 2021, pension plan membership consisted of the following:
Retirees and beneficiaries currently receiving benefits 56
Terminated employees entitled to benefits but not yet receiving them 62
Active Plan members 127
Total membership in the Plan 245
Contributions. The Plan is subject to minimum funding standards of the Georgia Public Retirement
Systems Standards law. The Board of Trustees of GMEBS has adopted a recommended actuarial
funding policy for the Plan which meets state minimum requirements and will accumulate sufficient
funds to provide the benefits under the Plan. The funding policy for the Plan, as adopted by the City
Council, is to contribute an amount equal to or greater than the actuarially recommended
contribution rate. This rate is based on the estimated amount necessary to finance the costs of
benefits earned by Plan members during the year, with an additional amount to finance any
unfunded accrued liability. Employees make no contributions to the Plan. The City is required to
contribute at an actuarially determined rate. For the year ended June 30, 2021, the City's
contribution rate was 7.17% of annual payroll. City contributions to the Plan were $408,372 for the
year ended June 30, 2021.
Net Pension Liability of the City
The City’s net pension liability was measured as of September 30, 2020. The total pension liability
used to calculate the net pension liability was determined by an actuarial valuation as of January 1,
2020 with updated procedures performed by the actuary to roll forward to the total pension liability
measured as of September 30, 2020.
Actuarial assumptions. The total pension liability in the January 1, 2021 actuarial valuation was
determined using the following actuarial assumptions, applied to all periods included in the
measurement:
Inflation 2.25%
Projected salary increases 2.25% plus service based merit increases
Net investment rate of return 7.375%
Cost of living adjustment 2.10%
Mortality rates were based on the Pri-2012 head-count weighted Healthy Retiree Mortality Table
with rate multiplied by 1.25.
NOTES TO FINANCIAL STATEMENTS
49
NOTE 8. DEFINED BENEFIT PENSION PLAN (CONTINUED)
Net Pension Liability of the City (Continued)
The investment return and inflation assumptions used to value the Plan were approved in
December 2019 by the Board. The remaining assumptions and methods used to value the Plan
were approved in December 2019 by the Board of Trustees based on an experience study for the
period January 1, 2015 through June 30, 2019.
The long-term expected rate of return on pension plan investments was determined using a
building-block method in which best-estimate ranges of expected future real rates of return
(expected returns, net of pension plan investment expense and inflation) are developed for each
major asset class. These ranges are combined to produce the long-term expected rate of return by
weighting the expected future real rates of return by the target asset allocation percentage and by
adding expected inflation. Best estimates of arithmetic real rates of return for each major asset
class included in the pension plan's target asset allocation as of September 30, 2020, are
summarized in the following table:
Long-Term
Target Expected Real
Asset Class Allocation Rate of Return*
Domestic equity 45% 6.40%
International equity 20% 7.05%
Domestic fixed income 20% 1.15%
Real estate 10% 4.50%
Global fixed income 5% 1.25%
100%
*Rates shown are net of the 2.25% assumed rate of inflation.
Discount rate. The discount rate used to measure the total pension liability was 7.375%. The
projection of cash flows used to determine the discount rate assumed that City contributions will be
made at rates equal to the actuarially determined contribution rates and the member rate. Based on
those assumptions, the pension plan's fiduciary net position was projected to be available to make
all projected future benefit payments of current Plan members. Therefore, the long-term expected
rate of return on pension plan investments was applied to all of the projected benefit payments to
determine the total pension liability.
NOTES TO FINANCIAL STATEMENTS
50
NOTE 8. DEFINED BENEFIT PENSION PLAN (CONTINUED)
Net Pension Liability of the City (Continued)
Changes in the Net Pension Liability of the City. The changes in the components of the net pension
liability of the City for the year ended June 30, 2021, were as follows:
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
(a) (b) (a) - (b)
Beginning balances 10,845,374$ 9,646,372$ 1,199,002$
Changes for the year :
Service cost 236,096 - 236,096
Interest 799,348 - 799,348
Differences between expected
and actual experience 276,274 - 276,274
Contributions - employer - 383,945 (383,945)
Net investment income - 926,792 (926,792)
Benefit payments, including refunds
of employee contributions (485,696) (485,696) -
Administrative expense - (30,976) 30,976
Other - - -
Net changes 826,022 794,065 31,957
Ending balances 11,671,396$ 10,440,437$ 1,230,959$
The required schedule of changes in the City’s net pension liability and related ratios immediately
following the notes to the financial statements presents multi-year trend information about whether
the value of plan assets is increasing or decreasing over time relative to the total pension liability.
Sensitivity of the net pension liability to changes in the discount rate. The following presents the net
pension liability of the City, calculated using the discount rate of 7.375%, as well as what the City’s
net pension liability would be if it were calculated using a discount rate that is 1-percentage-point
lower (6.375%) or 1-percentage-point higher (8.375%) than the current rate:
Current
1% Decrease Discount Rate 1% Increase
(6.375%) (7.375%) (8.375%)
City of Tybee Island's
net pension liability (asset) 2,785,622$ 1,230,959$ (52,316)$
NOTES TO FINANCIAL STATEMENTS
51
NOTE 8. DEFINED BENEFIT PENSION PLAN (CONTINUED)
Net Pension Liability of the City (Continued)
Actuarial valuations involve estimates of the value of reported amounts and assumptions about the
probability of events far into the future, and actuarially determined amounts are subject to continual
revision as results are compared to past expectations and new estimates are made about the
future. Actuarial calculations reflect a long-term perspective. Calculations are based on the
substantive plan in effect as of September 30, 2020, and the current sharing pattern of costs
between employer and employee.
Pension Expense and Deferred Outflows of Resources and Deferred Inflows
of Resources Related to Pensions
For the year ended June 30, 2021, the City recognized pension expense of $338,915. At June 30,
2021, the City reported deferred outflows of resources and deferred inflows of resources related to
pensions from the following sources:
Deferred
Inflows of
Resources
Differences between expected and actual experience (45,219)$
Changes in assumptions 115 (65,365)
Net difference between projected and actual
- (116,122)
City contributions subsequent
306,280 -
Total 757,771$ (226,706)$
Deferred
Outflows of
Resources
earnings on pension plan investments
to the measurement date
451,376$
NOTES TO FINANCIAL STATEMENTS
52
NOTE 8. DEFINED BENEFIT PENSION PLAN (CONTINUED)
Pension Expense and Deferred Outflows of Resources and Deferred Inflows
of Resources Related to Pensions (Continued)
City contributions subsequent to the measurement date of $306,280 are reported as deferred
outflows of resources and will be recognized as a reduction of the net pension liability in the year
ending June 30, 2022. Other amounts reported as deferred inflows of resources related to
pensions will be recognized as a component of pension expense as follows:
13,477$
146,259
109,101
(44,052)
224,785$
Year ending June 30,
Total
2025
2024
2023
2022
NOTE 9. RISK MANAGEMENT
The City is exposed to various risks of losses related to: torts; thefts of, damage to, and destruction
of assets; errors and omissions; injuries to employees; and natural disasters. The City has joined
together with other municipalities in the state as part of the Georgia Interlocal Risk Management
Agency Property and Liability Insurance Fund and the Georgia Municipal Association Group Self-
Insurance Workers’ Compensation Fund, public entity risk pools currently operating as common risk
management and insurance programs for member local governments.
As part of these risk pools, the City is obligated to pay all contributions and assessments as
prescribed by the pools, to cooperate with the pool’s agents and attorneys, to follow loss reduction
procedures established by the funds, and to report as promptly as possible, and in accordance with
any coverage descriptions issued, all incidents which could result in the funds being required to pay
any claim of loss. The City is also to allow the pool’s agents and attorneys to represent the City in
investigation, settlement discussions and all levels of litigation arising out of any claim made against
the City within the scope of loss protection furnished by the funds.
The funds are to defend and protect the members of the funds against liability or loss as prescribed
in the member government contract and in accordance with the workers' compensation law of
Georgia. The funds are to pay all cost taxed against members in any legal proceeding defended by
the members, all interest accruing after entry of judgment, and all expenses incurred for
investigation, negotiation or defense.
Settled claims in the past three years have not exceeded insurance coverage.
NOTES TO FINANCIAL STATEMENTS
53
NOTE 10. JOINT VENTURE
Under Georgia law, the City, in conjunction with other cities and counties in the nine county coastal
Georgia region, is a member of the Coastal Georgia Regional Commission (“RC”) and is required to
pay annual dues thereto. During the fiscal year ended June 30, 2021, the City paid $3,887 in such
dues. Membership in an RC is required by the O.C.G.A. §50-8-34 which provides for the
organizational structure of the RC in Georgia. The RC Board membership includes the chief
elected official of each county and municipality of the area. O.C.G.A. §50-8-39.1 provides that the
member governments are liable for any debts or obligations of an RC. Separate financial
statements may be obtained from the Coastal Georgia Regional Commission, 127 “F” Street,
Brunswick, Georgia 31520.
NOTE 11. COMMITMENTS AND CONTINGENCIES
Litigation
The City is involved in several pending lawsuits. Liability, if any, which might result from these
proceedings, would not, in the opinion of management and legal counsel, have a material adverse
effect on the financial position of the City.
Grant Contingencies
The City has received federal and state grants for specific purposes that are subject to review and
audit by the grantor agencies. Such audits could lead to the disallowance of certain expenditures
previously reimbursed by those agencies. Based upon prior experience, management of the City
believes such disallowances, if any, will not be significant.
NOTE 12. HOTEL/MOTEL LODGING TAX
The City has levied a 6% lodging tax. For the fiscal year ended June 30, 2021, $5,322,703 of
Hotel/Motel tax was collected. Of the total collected, 100% was used for the promotion of tourism
within the City ($1,520,012 to the Savannah Chamber of Commerce, $760,234 to the Georgia
International Convention Center, $70,000 to the Tybee Post Theater, $442,211 to the Beach
Renourishment, $2,280,246 to the General Fund, and $250,000 to the Debt Service Fund).
NOTES TO FINANCIAL STATEMENTS
54
NOTE 13. RESTATEMENT OF PRIOR YEAR NET POSITION AND FUND BALANCE
In fiscal year 2021, the City adopted GASB Statement No. 84, Fiduciary Activities. This statement
establishes criteria for identifying fiduciary activities of all state and local governments. The focus of
the criteria generally is on: (1) whether a government is controlling the assets of the fiduciary
activity, and (2) the beneficiaries with whom a fiduciary relationship exists. An activity meeting the
criteria should be reported in a fiduciary fund in the basic financial statements. Governments with
activities meeting the criteria should present a statement of fiduciary net position and a statement of
changes in fiduciary net position. The City restated beginning governmental activities net position
and beginning fund balance for the General Fund for the cumulative effect of this accounting
change. These changes are in accordance with generally accepted accounting principles.
Fund balance, General Fund, as previously reported $ 10,780,071
Prior period adjustment - implementation of GASB No. 84 84,390
Fund balance, Special Programs Fund, as restated $ 10,864,461
Net position, governmental activities, as previously reported $ 26,224,022
Prior period adjustment - implementation of GASB No. 84 84,390
Net position, governmental activities, as restated $ 26,308,412
REQUIRED SUPPLEMENTARY INFORMATION
Total pension liability
Service cost $ 236,096 $ 222,306 $ 259,255 $ 270,293 $ 243,211 $ 271,181 $ 254,414
Interest on total pension liability 799,348 750,299 724,949 678,645 632,774 591,196 559,195
Differences between expected and actual
experience 276,274 445,331 (180,875) 107,516 55,701 (6,456) (90,395)
Changes of assumptions - - - - - - (2,320)
Benefit payments, including refunds of
employee contributions (485,696) (447,024) (409,734) (404,293) (331,010) (307,853) (308,101)
Other - (130,732) - 577 27,856 - -
Net change in total pension liability 826,022 840,180 393,595 652,738 628,532 548,068 412,793
Total pension liability - beginning 10,845,374 10,005,194 9,611,599 8,958,861 8,330,329 7,782,261 7,369,468
Total pension liability - ending (a) 11,671,396 10,845,374 10,005,194 9,611,599 8,958,861 8,330,329 7,782,261
Plan fiduciary net position
Contributions - employer 383,945 421,734 433,667 423,061 430,220 450,057 428,260
Net investment income 926,792 283,751 850,056 1,123,477 745,075 67,622 651,704
Benefit payments, including refunds of
employee contributions (485,696) (447,024) (409,734) (404,293) (331,010) (307,853) (308,101)
Administrative expenses (30,976) (27,528) (28,995) (29,890) (17,953) (20,168) (15,776)
Net change in plan fiduciary net position 794,065 230,933 844,994 1,112,355 826,332 189,658 756,087
Plan fiduciary net position - beginning 9,646,372 9,415,439 8,570,445 7,458,090 6,631,758 6,442,100 5,686,013
Plan fiduciary net position - ending (b) 10,440,437 9,646,372 9,415,439 8,570,445 7,458,090 6,631,758 6,442,100
City's net pension liability - ending (a) - (b) $ 1,230,959 $ 1,199,002 $ 589,755 $ 1,041,154 $ 1,500,771 $ 1,698,571 $ 1,340,161
Plan fiduciary net position as a percentage
of the total pension liability 89.45%88.94% 94.11% 89.17% 83.25% 79.61% 82.78%
Covered payroll $ 5,695,722 $ 4,727,282 $ 4,158,606 $ 4,497,809 $ 4,327,782 $ 3,832,932 $ 3,837,698
City's net pension liability as a percentage
of covered payroll 21.61%25.36% 14.18% 23.15% 34.68% 44.32% 34.92%
Notes to the Schedule: The Schedule will present 10 years of information once it is accumulated.
PENSION LIABILITY AND RELATED RATIOS
201920202021
CITY OF TYBEE ISLAND, GEORGIA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN THE CITY'S NET
FOR THE FISCAL YEAR ENDED JUNE 30,
2018 2017 2016 2015
55
2018 2017 2016 2015
Actuarially determined contribution $ 408,372 $ 372,670 $ 438,089 $ 432,193 $ 420,017 $ 433,621 $ 455,536
Contributions in relation to the actuarially
determined contribution 408,372 372,670 438,089 432,193 420,017 433,621 455,536
Contribution deficiency (excess)$- $ - $ - $ - $ - $ - $ -
Covered payroll $ 5,695,722 $ 4,727,282 $ 4,158,606 $ 4,497,809 $ 4,327,782 $ 3,832,932 $ 3,837,698
Contributions as a percentage of
covered payroll 7.17% 7.88% 10.53% 9.61% 9.71% 11.30% 11.87%
Notes to the Schedule:
Valuation date January 1, 2021
Cost method Projected unit credit
Actuarial asset valuation method
Assumed rate of return on investments
Projected salary increases 2.25% plus service based merit increases.
Cost-of-living adjustment
Amortization method Closed level dollar for remaining unfunded liability.
Remaining amortization period
The Schedule will present 10 years of information once it is accumulated.
Varies for the bases, with a net effective amortization period of 10 years.
2019
CITY OF TYBEE ISLAND, GEORGIA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CITY CONTRIBUTIONS
FOR THE FISCAL YEAR ENDED JUNE 30,
2020
7.375%
2.10%
2021
Sum of actuarial value at beginning of year and the cash flow during the year plus the assumed investment return, adjusted by 10%
of the amounts that the value exceeds or is less than the market value at the end of the year. The actuarial value is adjusted, if
necessary, to be within 20% of market value.
56
COMBINING STATEMENTS AND SCHEDULES
NONMAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
E911 Fund – To account for the operations of the E911 system.
Confiscated Assets Fund – To account for the cash received either from a cash confiscation or cash received from
a sale of capital assets acquired from drug enforcement.
FEMA/GEMA Grant Fund – To account for grants used to recover and repair damages caused by Hurricane
Matthew.
American Rescue Act Fund – To account for and report financial resources and expenditures associated with the
U.S. Department of Treasury’s Coronavirus State and Local Fiscal Recovery Funds established by the American
Rescue Plan Act of 2021.
CAPITAL PROJECT FUNDS
2014 SPLOST Fund – To account for capital projects financed from special purpose local option sales taxes. The
projects include public safety buildings and equipment, beach related projects, road projects, and water and sewer
equipment. These projects are financed with a special 1% sales tax.
2003 SPLOST Fund – To account for capital projects financed from special purpose local option sales taxes. The
projects include public safety buildings and equipment, beach related projects, road projects, and water and sewer
equipment. These projects are financed with a special 1% sales tax.
2020 SPLOST Fund – To account for capital projects financed from special purpose local option sales taxes. The
projects include public safety buildings and equipment, beach related projects, road projects, and water and sewer
equipment. These projects are financed with a special 1% sales tax.
DEBT SERVICE FUND
Debt Service Fund – To account for the debt payments and debt proceeds of the City.
ASSETS
Cash and cash equivalents $ 4,588 $ 184,554 $ 981,028 $ 495,168 $ 162,028 $ 1,827,366
Accounts receivable 6,795 - - 81,747 - 88,542
Due from other governments 871,265 - - - - 871,265
Prepaid expenditures 2,285 - - - - 2,285
Total assets $ 884,933 $ 184,554 $ 981,028 $ 576,915 $ 162,028 $ 2,789,458
LIABILITIES AND FUND BALANCE
LIABILITIES
Accounts payable $ 3,011 $ - $ 4,263 $ - $ - $ 7,274
Accrued liabilities 3,285 - - - - 3,285
Due to other funds 302,068 - - - - 302,068
Unearned revenue 571,918 - - - - 571,918
Total liabilities 880,282 - 4,263 - - 884,545
FUND BALANCE
Nonspendable - prepaid items 2,285 - - - - 2,285
Restricted for:
Public safety vehicles and equipment 7,454 - - - - 7,454
Capital projects - 184,554 976,765 576,915 - 1,738,234
Debt service - - - - 162,028 162,028
Unassigned (5,088) - - - - (5,088)
Total fund balance 4,651 184,554 976,765 576,915 162,028 1,904,913
Total liabilities and fund balance $ 884,933 $ 184,554 $ 981,028 $ 576,915 $ 162,028 $ 2,789,458
Nonmajor
2020
SPLOST
Fund
Nonmajor
2003
SPLOST
Fund
CITY OF TYBEE ISLAND, GEORGIA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2021
Revenue
Total
Nonmajor
Governmental
Nonmajor
Special
Nonmajor
2014
SPLOST
Nonmajor
Debt
Service
FundsFundFundsFund
57
CITY OF TYBEE ISLAND, GEORGIA
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
Revenues
Intergovernmental $ 160,341 $ - $ 251,592 $ 576,858 $ - $ 988,791
Charges for services 78,125 - - - - 78,125
Interest income - - 1,040 57 - 1,097
Total revenues 238,466 - 252,632 576,915 - 1,068,013
Expenditures
Current:
Public safety 425,190 - - - - 425,190
Capital outlay - 267,544 266,034 - - 533,578
Debt service:
Principal - - - - 125,000 125,000
Interest - - - - 121,651 121,651
Total expenditures 425,190 267,544 266,034 - 246,651 1,205,419
Excess (deficiency) of revenues
over (under) expenditures (186,724) (267,544) (13,402) 576,915 (246,651) (137,406)
Other financing source
Transfers in 343,780 - - - 250,000 593,780
Total other financing source 343,780 - - - 250,000 593,780
Net change in fund balance 157,056 (267,544) (13,402) 576,915 3,349 456,374
Fund balance, beginning of year (152,405) 452,098 990,167 - 158,679 1,448,539
Fund balance, end of year $ 4,651 $ 184,554 $ 976,765 $ 576,915 $ 162,028 $ 1,904,913
Total
Nonmajor
Governmental
Nonmajor
2020
SPLOST
Funds
Nonmajor
Special
Nonmajor
2014 Debt
Service
Fund
SPLOST
Nonmajor
2003
SPLOST
Fund FundFund
Nonmajor
Revenue
Funds
58
ASSETS
Cash and cash equivalents $ - $ 4,588 $ - $ - $ 4,588
Accounts receivable 6,795 - - - 6,795
Due from other governments - - 299,347 571,918 871,265
Prepaid expenditures 2,285 - - - 2,285
Total assets $ 9,080 $ 4,588 $ 299,347 $ 571,918 $ 884,933
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts payable $ 2,877 $ 134 $ - $ - $ 3,011
Accrued liabilities 3,285 - - - 3,285
Due to other funds 5,721 - 296,347 - 302,068
Unearned revenue - - - 571,918 571,918
Total liabilities 11,883 134 296,347 571,918 880,282
FUND BALANCE
Nonspendable - prepaid items 2,285 - - - 2,285
Restricted for:
Public safety - 4,454 3,000 - 7,454
Unassigned (5,088) - - - (5,088)
Total fund balance (2,803) 4,454 3,000 - 4,651
Total liabilities and fund balance $ 9,080 $ 4,588 $ 299,347 $ 571,918 $ 884,933
CITY OF TYBEE ISLAND, GEORGIA
COMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS
JUNE 30, 2021
Total
Nonmajor
Special
Fund
E911
Fund
RevenueAssets
Funds
Confiscated FEMA/GEMA
Grant
Fund
American
Rescue Act
Fund
59
CITY OF TYBEE ISLAND, GEORGIA
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
NONMAJOR SPECIAL REVENUE FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
Revenues
Intergovernmental $ - $ - $ 160,341 $ - $ 160,341
Charges for services 78,125 - - - 78,125
Total revenues 78,125 - 160,341 - 238,466
Expenditures
Current:
Public safety 425,190 - - - 425,190
Total expenditures 425,190 - - - 425,190
Excess (deficiency) of revenues over
(under) expenditures (347,065) - 160,341 - (186,724)
Other financing source
Transfers in 343,780 - - - 343,780
Total other financing source 343,780 - - - 343,780
Net change in fund balance (3,285) - 160,341 - 157,056
Fund balance, beginning of year 482 4,454 (157,341) - (152,405)
Fund balance, end of year $ (2,803) $ 4,454 $ 3,000 $ - $ 4,651
American
Rescue Act
FundFund Fund
Total
Special
Revenue
Funds
Confiscated
Nonmajor
AssetsE911
FEMA/GEMA
Grant
Fund
60
Project
Public Safety
Police department vehicles $ 120,000 $ 228,434 $ 228,437 $ 29,996 $ 258,433
Public safety software upgrade 165,000 196,665 196,665 - 196,665
Fire department truck 630,000 867,347 882,347 - 882,347
Fire department equipment 630,000 246,431 230,792 - 230,792
Police department equipment - 41,000 27,843 - 27,843
Water and Sewer
Various projects 1,554,000 - - - -
Street and Infrastructure
Street paving and repair 550,000 159,561 71,856 - 71,856
Marsh Hen Trail/Highway 80 bike trail 47,000 46,242 40,615 5,443 46,058
Drainage project - various - 196,030 21,736 50,489 72,225
Street sweeper equipment - 180,000 180,000 - 180,000
Cultural and Recreation
Memorial Park pavilion building 32,000 45,997 45,997 105,623 151,620
Memorial Park restroom building - 212,872 212,872 - 212,872
Playground equipment 120,000 195,390 195,390 - 195,390
Tybee Arts Association - audio/video - 54,018 27,017 - 27,017
YMCA - batting cage - 5,842 5,842 - 5,842
Friends/Post Tybee Theater
audio/video equipment - 117,056 117,056 - 117,056
JayCee Park - 460,000 674,291 41,977 716,268
Various projects 332,000 - - - -
South end restrooms - 400,000 - 32,506 32,506
Beach Related
Mobile mats 20,000 - - - -
Beach crossovers - 224,770 224,769 - 224,769
Future projects - 248,039 - - -
$ 4,200,000 $ 4,125,694 $ 3,383,525 $ 266,034 $ 3,649,559
CITY OF TYBEE ISLAND, GEORGIA
SCHEDULE OF EXPENDITURES OF
SPECIAL PURPOSE LOCAL OPTION SALES TAX PROCEEDS (2014 RESOLUTION)
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
Estimated Cost Expenditures
Original Current Years
Prior Current
Year
Cumulative
Total
61
Project
Drainage
Drainage reconstruction/maintenance $ 200,000 $ 559 $ 559 $ - $ 559
North Beach area 200,000 - - - -
14th Street drainage project - 966,226 966,226 - 966,226
Water and Sewer Improvements
Beach side of Butler water line improvement 575,000 2,130,273 2,130,273 - 2,130,273
Butler Avenue water line 817,000 - - - -
Water line looping 224,040 15,460 15,460 - 15,460
Replacement of 6" ACX water line improvement 168,960 - - - -
Fort Screven water line replacement,
Lift station upgrades, I&I continuation 440,000 82,522 82,522 - 82,522
Roads
Various improvements 250,000 - - - -
ADA sidewalk improvement - 22,000 22,000 - 22,000
Bike paths 100,000 3,200 3,200 - 3,200
Jones Avenue 350,000 175,653 175,653 - 175,653
Street paving and sidewalks - 70,000 70,000 - 70,000
Marsh Hen Trail TE match - 21,717 21,717 - 21,717
Public Safety
Public safety facility 500,000 294,402 294,402 - 294,402
Fire department equipment - 163,310 163,310 - 163,310
Beach Related
Beach renourishment 1,000,000 1,000,000 1,000,000 - 1,000,000
Community Development
Old Fort Theater, guardhouse 600,000 774,825 774,825 - 774,825
Playground equipment 200,000 196,559 196,559 - 196,559
Marine Rescue Squadron facility 100,000 71,165 71,165 - 71,165
Tybee Marine Science Center project 600,000 601,908 3,238,579 267,544 3,506,123
South Beach Business District - 764,381 764,381 - 764,381
Other
Other capital equipment 190,354 - - - -
$ 6,515,354 $ 7,354,160 $ 9,990,831 $ 267,544 $ 10,258,375
CITY OF TYBEE ISLAND, GEORGIA
SCHEDULE OF EXPENDITURES OF
SPECIAL PURPOSE LOCAL OPTION SALES TAX PROCEEDS (2003 RESOLUTION)
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
Estimated Cost Expenditures
Original Current
Prior
Years
Current
Year
Cumulative
Total
62
Project
Public Safety
Fire station $ 460,000 $ 46,000 $ - $ - $ -
Fire vehicles 545,000 545,000 - - -
Public Works
Street paving and maintenance 200,000 200,000 - - -
Water/Sewer improvements 500,000 500,000 - - -
Drainage projects 230,000 230,000 - - -
Cultural and Recreational
Recreational facilities 469,653 469,653 - - -
Recreational area improvements 550,000 550,000 - - -
Beach area improvements 450,000 450,000 - - -
General Government
City facilities 550,000 550,000 - - -
$ 3,954,653 $ 3,540,653 $- $ - $ -
Prior Current Cumulative
Original Current Years Year Total
CITY OF TYBEE ISLAND, GEORGIA
SCHEDULE OF EXPENDITURES OF
SPECIAL PURPOSE LOCAL OPTION SALES TAX PROCEEDS (2020 RESOLUTION)
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
Estimated Cost Expenditures
63
COMPLIANCE SECTION
6001 CHATHAM CENTER DRIVE, SUITE 250 • SAVANNAH, GEORGIA 31405 • 912-232-1622 • www.mjcpa.com
MEMBERS OF THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER
FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Honorable Mayor and Members
of City Council
City of Tybee Island
Tybee Island, Georgia
We have audited, in accordance with the auditing standards generally accepted in the United States of America and
the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller
General of the United States, the financial statements of the governmental activities, the business-type activities,
each major fund, and the aggregate remaining fund information of the City of Tybee Island, Georgia (the “City”), as
of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively
comprise the City’s basic financial statements and have issued our report thereon dated December 10, 2021.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the City’s internal control over financial reporting (internal
control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of
expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the
effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the
City’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or
employees, in the normal course of performing their assigned functions, to prevent, or detect and correct
misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal
control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements
will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a
combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to
merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and
was not designed to identify all deficiencies in internal control that might be material weaknesses or significant
deficiencies. Given these limitations, during our audit, we did not identify any deficiencies in internal control that we
consider to be material weaknesses. However, material weaknesses may exist that have not been identified.
65
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free from material
misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant
agreements, noncompliance with which could have a direct and material effect on the financial statements.
However, providing an opinion on compliance with those provisions was not an objective of our audit and,
accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance
or other matter that is required to be reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the
results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on
compliance. This report is an integral part of an audit performed in accordance with Government Auditing
Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not
suitable for any other purpose.
Savannah, Georgia
December 10, 2021
6001 CHATHAM CENTER DRIVE, SUITE 250 • SAVANNAH, GEORGIA 31405 • 912-232-1622 • www.mjcpa.com
MEMBERS OF THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR
EACH MAJOR FEDERAL PROGRAM AND ON INTERNAL CONTROL
OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE
Honorable Mayor and Members
of City Council
City of Tybee Island
Tybee Island, Georgia
Report on Compliance for Each Major Federal Program
We have audited City of Tybee Island’s (the “City”) compliance with the types of compliance requirements described
in the OMB Compliance Supplement that could have a direct and material effect on each of the City’s major federal
programs for the year ended June 30, 2021. The City’s major federal program is identified in the summary of audit
results section of the accompanying schedule of findings and questioned costs.
Management’s Responsibility
Management is responsible for compliance with the requirements of federal statutes, regulations, and the terms and
conditions of its federal awards applicable to its federal programs.
Auditor’s Responsibility
Our responsibility is to express an opinion on compliance for the City’s major federal program based on our audit of
the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with
auditing standards generally accepted in the United States of America; the standards applicable to financial audits
contained in Government Auditing Standards, issued by the Comptroller General of the United States and the audit
requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform
Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance
with the types of compliance requirements referred to above that could have a direct and material effect on a major
federal program occurred. An audit includes examining, on a test basis, evidence about the City’s compliance with
those requirements and performing such other procedures as we considered necessary in the circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for the major federal program.
However, our audit does not provide a legal determination of the City’s compliance.
Opinion on Each Major Federal Program
In our opinion, the City complied, in all material respects, with the compliance requirements referred to above that
could have a direct and material effect on its major federal program for the year ended June 30, 2021.
67
Report on Internal Control Over Compliance
Management of the City is responsible for establishing and maintaining effective internal control over compliance
with the types of compliance requirements referred to above. In planning and performing our audit of compliance,
we considered the City’s internal control over compliance with the types of requirements that could have a direct
and material effect on the major federal program to determine the auditing procedures that are appropriate in the
circumstances for the purpose of expressing an opinion on compliance for the major federal program and to test and
report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of
expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an
opinion on the effectiveness of the City’s internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over compliance
does not allow management or employees, in the normal course of performing their assigned functions, to prevent,
or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis.
A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal
control over compliance, such that there is a reasonable possibility that material noncompliance with a type of
compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A
significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal
control over compliance with a type of compliance requirement of a federal program that is less severe than a
material weakness in internal control over compliance, yet important enough to merit attention by those charged
with governance.
Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of
this section and was not designed to identify all deficiencies in internal control over compliance that might be
material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over
compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not
been identified.
The purpose of this report on internal control over compliance is solely to describe the scope of our testing of
internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance.
Accordingly, this report is not suitable for any other purpose.
Savannah, Georgia
December 10, 2021
CITY OF TYBEE ISLAND, GEORGIA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
Federal
Federal Grantor/ CFDA Federal Passed-Through
Pass-Through Program Title Number Grant ID Number Expenditures to Subrecipients
U.S. Department of Homeland Security
Passed through Georgia Emergency Management Division
Hazard Mitigation Grant 97.039 HMGP 4284-0055 $ 309,650 $ -
Hazard Mitigation Grant 97.039 HMGP 4284-0058 319,329
Hazard Mitigation Grant 97.039 HMGP 4294-0004-R 395,396 -
Total U.S. Department of Homeland Security 1,024,375 -
U.S. Department of the Treasury
Passed through Georgia Governors Office of Planning and Budget
COVID-19 - Coronavirus Relief Fund 21.019 14518-CRF 160,341 -
160,341 -
Total Expenditures of Federal Awards $ 1,184,716 $ -
See Notes to Schedule of Expenditures of Federal Awards.
68
69
CITY OF TYBEE ISLAND, GEORGIA
NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
NOTE 1. BASIS OF PRESENTATION
The accompanying Schedule of Expenditures of Federal Awards (“SEFA”) includes the federal
award activity of the City of Tybee Island (the “City”) under programs of the federal government for
the year ended June 30, 2021. The information in this schedule is presented in accordance with the
requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).
Because the SEFA presents only a selected portion of the operations of the City, it is not intended
to and does not present the net position, changes in net position, or cash flows of the City.
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES
Expenditures reported on the SEFA are reported on the accrual basis of accounting. Such
expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal
Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are
limited as to reimbursement.
NOTE 3. INDIRECT COST RATE
The City has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform
Guidance.
NOTE 4. NON-CASH ASSISTANCE
No federal awards were expended in the form of non-cash assistance during the fiscal year ended
June 30, 2021.
NOTE 5. SUBRECIPIENTS
The City did not pass funding through to subrecipients during the fiscal year ended June 30, 2021.
70
CITY OF TYBEE ISLAND, GEORGIA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
SECTION I
SUMMARY OF AUDIT RESULTS
Financial Statements
Type of auditor’s report issued Unmodified
Internal control over financial reporting:
Material weaknesses identified? Yes X No
Significant deficiencies identified not considered
to be material weaknesses? Yes X None Reported
Noncompliance material to financial statements noted? Yes X No
Federal Awards
Internal control over financial reporting:
Material weaknesses identified? Yes X No
Significant deficiencies identified not considered
to be material weaknesses? Yes X None Reported
Type of auditor’s report issued Unmodified
Any audit findings disclosed that are required to
be reported in accordance with the Uniform Guidance? Yes X No
Identification of major programs:
CFDA Number Name of Federal Program or Cluster
97.039 U.S. Department of Homeland
Security
Hazard Mitigation Grant
Dollar threshold used to distinguish between
Type A and Type B programs? $750,000
Auditee qualified as a low-risk auditee? Yes X No
71
CITY OF TYBEE ISLAND, GEORGIA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
SECTION II
FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
None reported.
SECTION III
FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
None reported.
72
CITY OF TYBEE ISLAND, GEORGIA
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
STATUS OF PRIOR YEAR AUDIT FINDINGS
None reported.