HomeMy Public PortalAboutFY 2020 AFS
CITY OF TYBEE ISLAND, GEORGIA
FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED
JUNE 30, 2020
CITY OF TYBEE ISLAND, GEORGIA
FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2020
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
Statement of Fiduciary Assets and Liabilities – Fiduciary Fund ................................................................ 28
Notes to Financial Statements ............................................................................................................... 29 – 53
Required Supplementary Information
Schedule of Changes in the City’s Net Pension Liability and Related Ratios ........................................... 54
Schedule of City Contributions ...................................................................................................................... 55
CITY OF TYBEE ISLAND, GEORGIA
FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2020
TABLE OF CONTENTS (CONTINUED)
Page
FINANCIAL SECTION (CONTINUED)
Combining Statements and Schedules
Combining Balance Sheet – Nonmajor Governmental Funds .................................................................... 56
Combining Statement of Revenues, Expenditures and Changes in Fund
Balances – Nonmajor Governmental Funds ............................................................................................ 57
Combining Balance Sheet – Nonmajor Special Revenue Funds ................................................................ 58
Combining Statement of Revenues, Expenditures and Changes in Fund
Balances – Nonmajor Special Revenue Funds ........................................................................................ 59
Schedule of Expenditures of Special Purpose Local Option Sales
Tax Proceeds (2014 Resolution) ............................................................................................................... 60
Schedule of Expenditures of Special Purpose Local Option Sales
Tax Proceeds (2003 Resolution) ............................................................................................................... 61
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 .................................................. 62 and 63
Schedule of Findings and Responses ................................................................................................................ 64
Summary Schedule of Prior Year Findings ......................................................................................................... 65
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, 2020, 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, 2020, 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.
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 – 14, the Schedule of Changes in the City’s Net Pension Liability and Related Ratios, and
the Schedule of City Contributions on pages 54 and 55 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 and individual nonmajor fund financial 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.
3
The combining and individual nonmajor fund financial statements and schedules 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 and individual nonmajor fund financial statements and schedules
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 15, 2020 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 15, 2020
CITY OF TYBEE ISLAND, GEORGIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2020
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, 2020.
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 2020 are as follows:
The City’s total net position is $43,046,324, an increase of $1,560,810. Net position from governmental activities
increased $1,946,420 and business-type activities decreased $385,610.
The General Fund reported fund balance of $10,780,071. This is an increase of $744,105 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 three broad categories,
namely: 1) governmental funds, 2) proprietary funds, and 3) fiduciary fund.
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 – 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 – 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):
2020 2019 2020 2019 2020 2019
Assets
Current and other assets 13,299,745$ 15,940,711$ 3,003,669$ 4,704,750$ 16,303,414$ 20,645,461$
Capital Assets 18,335,032 14,310,485 23,078,653 22,423,774 41,413,685 36,734,259
Total Assets 31,634,777 30,251,196 26,082,322 27,128,524 57,717,099 57,379,720
Deferred Outflows of Resources
Pension 571,648 362,161 96,229 53,540 667,877 415,701
Total Deferred outflows of resources 571,648 362,161 96,229 53,540 667,877 415,701
Liabilities
Current Liabilities 1,258,931 1,666,981 1,849,821 1,541,918 3,108,752 3,208,899
Long-term liabilities 4,505,543 4,123,714 7,483,779 8,342,923 11,989,322 12,466,637
Total Liabilities 5,764,474 5,790,695 9,333,600 9,884,841 15,098,074 15,675,536
Deferred Inflows of Resources
Pension 217,929 545,060 22,649 89,311 240,578 634,371
Total Pension Inflow of Resources 217,929 545,060 22,649 89,311 240,578 634,371
Net Assets
Invested in capital assets 14,844,410 10,676,961 14,831,141 13,232,763 29,675,551 23,909,724
Restricted for capital outlay 1,446,719 4,101,831 - - 1,446,719 4,101,831
Restricted for debt service 158,679 245,149 405,421 609,533 564,100 854,682
Unrestricted 9,774,214 9,253,661 1,585,740 3,365,616 11,359,954 12,619,277
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 $1,560,810, or 3.8%, as noted in the table above. The governmental
activities net position increased by $1,946,420 while the business-type activities net position decreased by $385,610.
2020 2019 2020 2019 2020 2019
Revenues
Program revenues:
Charges for services 5,797,345$ 5,917,227$ 5,662,646$ 5,840,304$ 11,459,991$ 11,757,531$
Capital grants and contributions 3,983,714 1,934,014 56,010 84,044 4,039,724 2,018,058
General revenues:
Property taxes 2,093,974 1,975,753 - - 2,093,974 1,975,753
Other taxes 5,755,775 6,180,788 - - 5,755,775 6,180,788
Investment earnings 96,281 148,611 - - 96,281 148,611
Gain on sale of capital assets - - - - - -
Total revenues 17,727,089 16,156,393 5,718,656 5,924,348 23,445,745 22,080,741
Expenses
Governmental activities:- -
General government 2,939,414 2,394,400 - - 2,939,414 2,394,400
Judicial 262,829 266,926 - - 262,829 266,926
Public safety 5,141,687 3,976,314 - - 5,141,687 3,976,314
Public works 2,595,871 1,865,956 - - 2,595,871 1,865,956
Cultural and recreation 4,152,666 3,158,889 - - 4,152,666 3,158,889
Housing and Community Dev.1,052,131 1,284,791 - - 1,052,131 1,284,791
Other expenses 104,294 162,483 - - 104,294 162,483
Business-type activities:- -
Water and sewer service - - 3,410,368 2,330,970 3,410,368 2,330,970
Solid waste collection - - 1,085,702 1,113,887 1,085,702 1,113,887
Campground - - 1,139,973 1,122,608 1,139,973 1,122,608
Total expenses 16,248,892 13,109,759 5,636,043 4,567,465 21,884,935 17,677,224
Transfers 468,223 (171,633) (468,223) 171,633 - -
Change in net assets 1,946,420 2,875,001 (385,610) 1,528,516 1,560,810 4,403,517
Beginning net assets 24,277,602 21,402,601 17,207,912 15,679,396 41,485,514 37,081,997
Ending net assets 26,224,022$ 24,277,602$ 16,822,302$ 17,207,912$ 43,046,324$ 41,485,514$
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 $1,570,696, or 9.7%. Capital grants and contributions
increased $2,049,700, or 106%, as a result of increases in SPLOST revenues. All other categories of revenue
remained consistent with the prior year.
Total governmental expenses have increased $3,139,133, or 24%. Public safety expenses increased $1,165,373, or
29%. Public works expenses increased $729,915, or 39%. Recreation expenses increased $993,777, or 31%, as a
result of increased capital outlay, specifically for the Marine Science Center.
Business-Type Activities
Net position for business-type activities decreased $385,610. The Water and Sewer Fund had a decrease of $298,518;
the River’s End RV Park Fund decreased by $87,092; and the Solid Waste Fund had no change. Below is the analysis
of each enterprise fund.
Water and Sewer Fund
Water and Sewer revenues increased $26,942, or .89%, which is fairly consistent with the prior year. Operating
expenses were also consistent with the prior year.
2020 2019 $ Change % Change
Operating revenues 3,055,840$ 3,028,898$ 26,942$ 0.89%
Operating expenses 3,322,169 2,233,625 1,088,544 48.73%
Net operating income (loss)(266,329) 795,273 (1,061,602) -133.49%
Nonoperating income (expenses)(88,199) (97,345) 9,146 -9.40%
Loss on Disposal of assets - - - -
Income(loss) before contributions and transfers (354,528) 697,928 (1,052,456) -150.80%
Capital contributions 56,010 84,044 (28,034) -33.36%
Transfers in - - - 0.00%
Change in net position (298,518) 781,972 (1,080,490) -138.18%
Beginning net position 12,271,335 11,489,363 781,972 6.81%
Ending net position 11,972,817$ 12,271,335$ (298,518)$ -2.43%
City of Tybee Island Water and Sewer Fund
MANAGEMENT’S DISCUSSION AND ANALYSIS
9
Solid Waste Collection Fund
Solid Waste revenues increased $14,340, or 1.53%. Operating expenses decreased $28,185, or 2.53%. The General
Fund transferred $131,777 to the solid waste collection fund to cover operating deficits.
2020 2019 $ Change % Change
Operating revenues 953,925$ 939,585$ 14,340$ 1.53%
Operating expenses 1,085,702 1,113,887 (28,185) -2.53%
Net operating income (loss)(131,777) (174,302) 42,525 -24.40%
Transfers in 131,777 171,633 (39,856) 100.00%
Beginning net position 634 3,303 (2,669) 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 decreased $218,940, or 11.7%. Operating expenses decreased
$26,522, or 2.53%.
2020 2019 $ Change % Change
Operating revenues 1,652,881$ 1,871,821$ (218,940)$ -11.70%
Operating expenses 1,074,092 1,047,570 26,522 2.53%
Net operating income (loss)578,789 824,251 (245,462) -29.78%
Nonoperating income (expenses)(65,881) (75,038) 9,157 -12.20%
Income(loss) before contributions & transfers 512,908 749,213 (236,305) -31.54%
Transfers out (600,000) - (600,000) 100.00%
Change in net position (87,092) 749,213 (836,305) -111.62%
Beginning net position, restated 4,935,943 4,186,730 749,213 17.89%
Ending net position 4,848,851$ 4,935,943$ (87,092)$ -1.76%
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 18
and 19 were $12,228,610. This balance represents a decrease of $2,154,835, or 17.62%, from last year's ending
balance. The tables below reflect changes in governmental fund balances.
The City Council committed $3,843,236, or 36%, of the General Fund’s fund balance for economic stabilization.
The following schedule reflects changes in the fund balance for the City’s governmental funds.
2020 2019 $ Change % Change
General fund 10,780,071$ 10,035,966$ 744,105$ 7.41%
Hotel/Motel fund - - - 0.00%
FEMA/GEMA Grant Fund (157,341) - (157,341) 0.00%
Grant Fund -
Confiscated Asset Fund 4,454 1,460 2,994 205.07%
Emergency Telephone 911 Fund 482 499 (17) -3.41%
SPLOST 2003 Fund 452,098 3,103,503 (2,651,405) -85.43%
SPLOST 2014 Fund 990,167 996,868 (6,701) -0.67%
Debt Service Fund 158,679 245,149 (86,470) 100.00%
Total 12,228,610$ 14,383,445$ (2,154,835)$ -17.62%
City of Tybee Island Governmental Fund Balance
MANAGEMENT’S DISCUSSION AND ANALYSIS
11
The components of changes to governmental fund balances are analyzed on the table below:
2020 2019 $ Change % Change
Revenues
Taxes 7,899,694$ 8,153,583$ (253,889)$ -3.11%
Licenses and permits 381,954 380,205 1,749 0.46%
Intergovernmental 3,953,737 1,931,053 2,022,684 104.75%
Charges for services 4,432,317 3,988,572 443,745 11.13%
Fines and forfeitures 797,090 1,428,367 (631,277) -44.20%
Interest 100,692 151,572 (50,880) -33.57%
Other revenues 211,550 120,083 91,467 76.17%
Total revenues 17,777,034 16,153,435 1,623,599 10.05%
Expenditures
Current:
General government 2,768,438 2,613,837 154,601 5.91%
Judicial 263,351 271,406 (8,055) -2.97%
Public safety 4,603,311 3,837,384 765,927 19.96%
Public works 2,210,286 1,709,415 500,871 29.30%
Culture and recreation 2,745,203 3,145,931 (400,728) -12.74%
Housing and community development 1,053,591 1,216,814 (163,223) -13.41%
Capital outlay 6,529,868 2,525,997 4,003,871 158.51%
Debt service
Principal 125,000 - 125,000 100.00%
Interest 120,399 125,748 (5,349) 100.00%
Total expenditures 20,419,447 15,446,532 4,972,915 32.19%
Excess of revenues over (under) expenditures (2,642,413) 706,903 (3,349,316) -473.80%
Other financing sources (uses)
Transfers in 2,585,712 2,632,822 (47,110) -1.79%
Transfers out (2,117,489) (2,804,455) 686,966 -24.50%
Issuance of debt - 3,633,524 (3,633,524) 100.00%
Sale of capital assets 19,355 58,103 (38,748) 100.00%
Total other financing sources (uses)487,578 3,519,994 (3,032,416) -86.15%
-
Net change in fund balance (2,154,835)$ 4,226,897$ (6,381,732)$ -150.98%
Fund balances, beginning of year 14,383,445$ 10,156,548$ 4,226,897$ 41.62%
Fund balances, end of year 12,228,610$ 14,383,445$ (2,154,835)$ -14.98%
City of Tybee Island, Changes in Fund Balances - Governmental Funds
Overall governmental revenues increased $1,623,599, or 10.05%. Licenses and permits were consistent with prior
MANAGEMENT’S DISCUSSION AND ANALYSIS
12
year. Intergovernmental revenues increased $2,022,684, or 104.75%, as more SPLOST money was received
compared to prior year. Charges for services revenues increased $443,745, or 11.13%, as parking revenue has
increased due to the new parking mobile pay app that was started during the current year. Fines and forfeitures
decreased $631,277, or 44.2%, because the City was writing less tickets due to the COVID-19 pandemic.
Overall governmental expenditures increased $4,972,915 or 32.19%. General government expenditures increased
$154,601, or 5.91%, due to general inflation. Public Safety expenditures increased $765,927, or 19.96%, due to
increased equipment purchases and overtime. Public works expenditures increased $500,871, or 29.3%, because of
significant repairs. Culture and recreation expenditures decreased $400,728, or 12.74%, because of significant beach
repair done in prior years. Capital outlay increased $4,003,871, or 158.51%, because of the completion of the Marine
Science Center.
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 $1,579,616 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 – 23.
For the General Fund, the actual operating revenues were $245,762 less than budgeted. Operating revenues
were budgeted for $10,768,980, and actual operating revenues were $10,523,218. The most significant variance
was municipal fines which were $481,937 less than budgeted as less ticketing was done during the COVID-19
pandemic.
The actual operating expenditures of $11,529,712 were $2,334,532 less than the budgeted amount of
$13,864,244 as many purchases were put on hold during the COVID-19 pandemic.
MANAGEMENT’S DISCUSSION AND ANALYSIS
13
Capital Asset and Debt Administration
Capital Assets
The City has invested $41,413,685 in capital assets (net of depreciation). Capital assets held by the City at the end
of the current and previous year are summarized below:
2020 2019 2020 2019 2020 2019
Non-depreciable assets:
Land 1,102,857$ 1,102,857$ 6,973,632$ 6,973,632$ 8,076,489$ 8,076,489$
Construction in progress 316,938 2,942,105 405,016 265,882 721,954 3,207,987
Total non-depreciable assets 1,419,795 4,044,962 7,378,648 7,239,514 8,798,443 11,284,476
Depreciable assets:
Land improvements - - 350,314 350,314 350,314 350,314
Building 12,176,877 8,567,818 764,562 477,948 12,941,439 9,045,766
Machinery and equipment 7,297,963 6,593,745 2,247,505 2,148,530 9,545,468 8,742,275
Infrastructure 6,383,077 3,268,977 20,277,889 19,755,938 26,660,966 23,024,915
Total depreciable assets 25,857,917 18,430,540 23,640,270 22,732,730 49,498,187 41,163,270
Less accumulated depreciation 8,942,680 8,165,017 7,940,265 7,548,470 16,882,945 15,713,487
Book value - depreciable assets 16,915,237 10,265,523 15,700,005 15,184,260 32,615,242 25,449,783
Percentage depreciated 34.58%44.30% 33.59% 33.21% 34.11% 38.17%
Book value - all assets 18,335,032$ 14,310,485$ 23,078,653$ 22,423,774$ 41,413,685$ 36,734,259$
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 $2,197,921
of new governmental capital assets; and added $2,995,135 of additional construction in progress.
The City added $1,006,497 of new business-type capital assets; and added $405,016 of additional construction in
progress 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 $4,839,758 and
$8,484,907 for business-type activities. The debt position of the City is summarized below and is more fully analyzed
in Note 6 of the financial statements.
2020 2019 Change %
Governmental Activities
Capital leases -$ -$ -$ 0.00%
Chatham County Recreation Bond 3,490,622 3,633,524 (142,902) 0.00%
Compensated absences 348,691 303,733 44,958 14.80%
Net pension liability 1,000,445 494,333 506,112 50.59%
Total debt service governmental-type activities 4,839,758 4,431,590 408,168 9.21%
Business-type activities
Chatham County Recreation Bond 2,866,364 3,296,439 (430,075) -13.05%
Water and Sewer - Series 2005 Bond 2,339,437 2,690,450 (351,013) -13.05%
Georgia Environmental Facility Authority Note Payables 3,041,711 3,204,122 (162,411) -5.07%
Compensated absences 38,838 34,419 4,419 12.84%
Net pension liability 198,557 95,422 103,135 108.08%
Total debt service business-type activities 8,484,907 9,320,852 (835,945) -8.97%
Total all debt service 13,324,665$ 13,752,442$ (427,777)$ -3.11%
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 2021, 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. The City plans to implement a water/sewer rate increase and restructuring of water/sewer tiers.
The City has not seen a significant rate increase in over ten years and the utility is in major need of infrastructure
improvements.
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.
15
ASSETS AND DEFERRED OUTFLOWS OF RESOURCES
ASSETS
Cash and cash equivalents $10,507,911 $1,973,252 $12,481,163
Investments 459,432 - 459,432
Taxes receivable 1,157,395 - 1,157,395
Accounts receivable, net of allowances 86,019 340,469 426,488
Due from other governments 774,976 - 774,976
Inventory - 146,988 146,988
Prepaid expenses 314,012 137,539 451,551
Restricted assets:
Cash and cash equivalents - 405,421 405,421
Capital assets:
Nondepreciable 1,419,795 7,378,648 8,798,443
Depreciable, net of accumulated depreciation 16,915,237 15,700,005 32,615,242
Total assets 31,634,777 26,082,322 57,717,099
DEFERRED OUTFLOWS OF RESOURCES
Pension 571,648 96,229 667,877
Total deferred outflows of resources 571,648 96,229 667,877
LIABILITIES AND DEFERRED INFLOWS OF RESOURCES
LIABILITIES
Accounts payable 873,572 311,206 1,184,778
Accrued liabilities 40,794 12,127 52,921
Unearned revenue - 217,810 217,810
Customer deposits payable 10,350 307,550 317,900
Notes payable due within one year - 164,241 164,241
Notes payable due in more than one year - 2,877,470 2,877,470
Compensated absences due within one year 209,215 38,838 248,053
Compensated absences due in more than one year 139,476 - 139,476
Bonds payable due within one year 125,000 798,049 923,049
Bonds payable due in more than one year 3,365,622 4,407,752 7,773,374
Net pension liability due in more than one year 1,000,445 198,557 1,199,002
Total liabilities 5,764,474 9,333,600 15,098,074
DEFERRED INFLOWS OF RESOURCES
Pension 217,929 22,649 240,578
Total deferred inflows of resources 217,929 22,649 240,578
NET POSITION
Net investment in capital assets 14,844,410 14,831,141 29,675,551
Restricted for capital outlay 1,446,719 - 1,446,719
Restricted for debt service 158,679 405,421 564,100
Unrestricted 9,774,214 1,585,740 11,359,954
Total net position $26,224,022 $16,822,302 $43,046,324
The accompanying notes are an integral part of these financial statements.
CITY OF TYBEE ISLAND, GEORGIA
STATEMENT OF NET POSITION
JUNE 30, 2020
Governmental
Activities
Business-type
Activities Total
CITY OF TYBEE ISLAND, GEORGIA
STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED JUNE 30, 2020
Functions/Programs
Governmental activities:
General government $ 2,939,414 $ 553,143 $ - $ - $ (2,386,271) $ - $ (2,386,271)
Judicial 262,829 122,921 - - (139,908) - (139,908)
Public safety 5,141,687 440,091 - 530,347 (4,171,249) - (4,171,249)
Public works 2,595,871 - - 141,929 (2,453,942) - (2,453,942)
Culture and recreation 4,152,666 54,352 - 3,311,438 (786,876) - (786,876)
Housing and community development 1,052,131 4,626,838 - - 3,574,707 - 3,574,707
Interest on long-term debt 104,294 - - - (104,294) - (104,294)
Total governmental activities 16,248,892 5,797,345 - 3,983,714 (6,467,833) - (6,467,833)
Business-type activities:
Water and sewer 3,410,368 3,055,840 - 56,010 - (298,518) (298,518)
River's End RV Park 1,139,973 1,652,881 - - - 512,908 512,908
Solid waste collection 1,085,702 953,925 - - - (131,777) (131,777)
Total business-type activities 5,636,043 5,662,646 - 56,010 - 82,613 82,613
Total primary government $ 21,884,935 $ 11,459,991 $ - $ 4,039,724 (6,467,833) 82,613 (6,385,220)
General revenues:
Property taxes 2,093,974 - 2,093,974
Sales taxes 1,334,906 - 1,334,906
Hotel/Motel taxes 3,278,669 - 3,278,669
Franchise taxes 467,617 - 467,617
Insurance premium taxes 227,262 - 227,262
Other taxes 447,321 - 447,321
Unrestricted investment earnings 96,281 - 96,281
Transfers 468,223 (468,223) -
Total general revenues and transfers 8,414,253 (468,223) 7,946,030
Change in net position 1,946,420 (385,610) 1,560,810
Net position, beginning of year 24,277,602 17,207,912 41,485,514
Net position, end of year $ 26,224,022 $ 16,822,302 $ 43,046,324
The accompanying notes are an integral part of these financial statements.
Expenses
Charges for
Services
Operating
Grants and
Contributions
Business-type
Activities
Program Revenues Net (Expense) Revenue and
Changes in Net PositionCapital
Total
Grants and
Contributions
Governmental
Activities
16
17
ASSETS
Cash and cash equivalents $9,002,969 $- $- $487,430 $1,017,512 $10,507,911
Investments 459,432 - - - - 459,432
Taxes receivable 441,786 715,609 - - - 1,157,395
Accounts receivable 79,253 - - - 6,766 86,019
Due from other governments 118,436 - 116,989 2,813 536,738 774,976
Due from other funds 925,492 - - - 79,931 1,005,423
Prepaid items 312,526 - - - 1,486 314,012
Total assets $11,339,894 $715,609 $116,989 $490,243 $1,642,433 $14,305,168
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
LIABILITIES
Accounts payable $362,260 $329,111 $26,187 $38,145 $117,869 $873,572
Accrued liabilities 2,262 - - - - 2,262
Due to other funds - 386,498 90,802 - 528,123 1,005,423
Deposits payable 10,350 - - - - 10,350
Total liabilities 374,872 715,609 116,989 38,145 645,992 1,891,607
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - intergovernmental 4,318 - - - - 4,318
Unavailable revenue - property taxes 180,633 - - - - 180,633
Total deferred inflows of resources 184,951 - - - - 184,951
FUND BALANCES
Nonspendable:
Prepaid items 312,526 - - - 1,486 314,012
Restricted for:
Capital projects - - - 452,098 990,167 1,442,265
Public safety vehicles and equipment - - - - 4,454 4,454
Debt service - - - - 158,679 158,679
Committed for:
Future capital projects 634,206 - - - - 634,206
Assigned to:
Economic stabilization 3,843,236 - - - 3,843,236
Unassigned 5,990,103 - - - (158,345) 5,831,758
Total fund balances 10,780,071 - - 452,098 996,441 12,228,610
Total liabilities, deferred inflows of
resources and fund balances $11,339,894 $715,609 $116,989 $490,243 $1,642,433
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.18,335,032
Other long-term assets are not available to pay for current period expenditures and, therefore, are deferred in the funds.184,951
Certain long-term liabilities are not due and payable in the current period and are, therefore, not reported in the funds.
Net pension liability (1,000,445)
Deferred outflows of resources - pension 571,648
Deferred inflows of resources - pension (217,929)
Revenue bonds payable, including unamortized premiums of $205,622 (3,490,622)
Accrued interest payable (38,532)
Compensated absences (348,691)
Net position of governmental activities $26,224,022
The accompanying notes are an integral part of these financial statements.
Total
Governmental
Funds
CITY OF TYBEE ISLAND, GEORGIA
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2020
General
Fund
Nonmajor
Governmental
Funds
Motel
Hotel/
Tax Fund FundFund
SPLOST 03Grant
18
Revenues
Taxes $4,621,025 $3,278,669 $- $- $- $7,899,694
Licenses and permits 381,954 - - - - 381,954
Intergovernmental 111,952 - 3,311,438 - 530,347 3,953,737
Charges for services 4,343,749 - - - 88,568 4,432,317
Fines and forfeitures 797,090 - - - - 797,090
Interest 96,281 - - 34 4,377 100,692
Other revenues 171,167 14,817 - 25,566 - 211,550
Total revenues 10,523,218 3,293,486 3,311,438 25,600 623,292 17,777,034
Expenditures
Current:
General government 2,768,438 - - - - 2,768,438
Judicial 263,351 - - - - 263,351
Public safety 4,078,628 - - - 524,683 4,603,311
Public works 2,210,286 - - - - 2,210,286
Culture and recreation 1,155,418 1,589,785 - - - 2,745,203
Housing and community development 1,053,591 - - - - 1,053,591
Capital outlay - - 3,311,438 2,677,005 541,425 6,529,868
Debt service:
Principal - - - - 125,000 125,000
Interest - - - - 120,399 120,399
Total expenditures 11,529,712 1,589,785 3,311,438 2,677,005 1,311,507 20,419,447
Excess (deficiency) of revenues
over (under) expenditures (1,006,494) 1,703,701 - (2,651,405) (688,215) (2,642,413)
Other financing sources (uses)
Sale of capital assets 19,355 - - - - 19,355
Transfers in 2,145,032 - - - 440,680 2,585,712
Transfers out (413,788) (1,703,701) - - - (2,117,489)
Total other financing sources (uses)1,750,599 (1,703,701) - - 440,680 487,578
Net change in fund balances 744,105 - - (2,651,405) (247,535) (2,154,835)
Fund balances, beginning of year 10,035,966 - - 3,103,503 1,243,976 14,383,445
Fund balances, end of year $10,780,071 $- $- $452,098 $996,441 $12,228,610
The accompanying notes are an integral part of these financial statements.
General
Fund
Hotel/
Motel
Tax Fund
CITY OF TYBEE ISLAND, GEORGIA
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2020
SPLOST 03
Fund
Grant
Fund Funds
Governmental
Nonmajor Total
Governmental
Funds
19
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, 2020
Amounts reported for governmental activities in the statement of activities are different because:
Net change in fund balances - total governmental funds. $(2,154,835)
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 5,193,056
Total depreciation (1,157,527)
The net effect of the sale of capital assets is to decrease net position.(10,982)
Revenues in the statement of activities that do not provide current financial resources are not reported as
revenues in the funds.(49,945)
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 30,506
Amortization expense 17,902
Accrued interest (1,797)
Compensated absences (44,958)
$1,946,420
The accompanying notes are an integral part of these financial statements.
20
Revenues
Taxes
Property taxes $1,966,950 $1,966,950 $2,143,919 $176,969
Local option sales tax 1,300,000 1,300,000 1,334,906 34,906
Franchise taxes 457,000 457,000 467,617 10,617
Insurance premium tax 190,000 190,000 227,262 37,262
Alcoholic beverage excise tax 310,000 310,000 335,037 25,037
Real estate transfer tax 10,000 10,000 17,682 7,682
Occupational taxes 65,000 65,000 68,992 3,992
Energy excise tax 20,040 20,040 25,610 5,570
Total taxes 4,318,990 4,318,990 4,621,025 302,035
Licenses and permits:
Regulatory fees 20,000 20,000 102,765 82,765
Building permits 80,000 80,000 99,596 19,596
Building inspections 25,000 25,000 33,127 8,127
Zoning variance request fees 2,900 2,900 1,450 (1,450)
Recording fees 1,600 1,600 575 (1,025)
Penalties 13,000 13,000 600 (12,400)
Other 215,640 215,640 143,841 (71,799)
Total licenses and permits 358,140 358,140 381,954 23,814
Intergovernmental 250,000 250,000 111,952 (138,048)
Charges for services:
Parking fees 4,100,000 4,232,100 4,164,735 (67,365)
Other charges for services 147,750 147,750 179,014 31,264
Total charges for services 4,247,750 4,379,850 4,343,749 (36,101)
Fines and forfeitures:
Municipal fines 958,000 958,000 476,063 (481,937)
Parking fines 300,000 300,000 321,027 21,027
Total fines and forfeitures 1,258,000 1,258,000 797,090 (460,910)
Interest income 130,000 130,000 96,281 (33,719)
Miscellaneous:
Rents and royalties 66,000 66,000 52,145 (13,855)
Other 8,000 8,000 119,022 111,022
Total miscellaneous 74,000 74,000 171,167 97,167
Total revenues 10,636,880 10,768,980 10,523,218 (245,762)
Expenditures
Current:
General government
Governing body 203,148 208,748 219,444 (10,696)
Clerk of council 121,671 116,371 105,792 10,579
City manager 378,272 336,672 302,937 33,735
Financial administration 734,216 614,316 393,041 221,275
Legal 278,000 339,500 336,653 2,847
Information technology 673,424 878,424 856,268 22,156
Human resources 137,335 179,635 138,616 41,019
Building and plant maintenance 489,072 437,072 415,687 21,385
Total general government $3,015,138 $3,110,738 $2,768,438 $342,300
(Continued)
Budgeted Amounts
Original Final Actual
Variance
with Final
Budget
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, 2020
21
Expenditures (Continued)
Current (Continued):
Judicial
Municipal Court $290,000 $295,500 $263,351 $32,149
Total judicial 290,000 295,500 263,351 32,149
Public safety
Police administration 3,154,812 3,110,812 2,846,737 264,075
Beach patrol 53,779 97,779 78,670 19,109
Fire administration 1,621,211 1,621,911 1,090,381 531,530
Emergency management 98,946 98,946 62,840 36,106
Total public safety 4,928,748 4,929,448 4,078,628 850,820
Public works
General operations 1,486,743 1,641,643 1,521,213 120,430
Solid waste collection 449,358 429,958 246,804 183,154
Recyclables collection 125,592 150,592 91,642 58,950
Fleet maintenance 371,943 377,943 350,627 27,316
Total public works 2,433,636 2,600,136 2,210,286 389,850
Culture and recreation
General operations 245,054 245,054 180,187 64,867
Recreation centers 168,450 168,450 168,450 -
Beach, lifeguards, dunes 450,750 582,850 514,454 68,396
Museums 45,212 45,212 45,212 -
Parks administration 523,982 533,382 247,115 286,267
Total culture and recreation 1,433,448 1,574,948 1,155,418 419,530
Housing and development
Zoning and inspection 595,924 541,924 377,871 164,053
Urban redevelopment 139,428 133,428 87,077 46,351
Parking 678,122 678,122 588,643 89,479
Total housing and development 1,413,474 1,353,474 1,053,591 299,883
Total current expenditures 13,514,444 13,864,244 11,529,712 2,334,532
Total expenditures 13,514,444 13,864,244 11,529,712 2,334,532
Deficiency of revenues
under expenditures (2,877,564) (3,095,264) (1,006,494) 2,088,770
Other financing sources (uses)
Appropriation of fund balance 1,418,616 1,579,616 - (1,579,616)
Sale of assets - 12,000 19,355 7,355
Transfers in 2,306,000 2,346,000 2,145,032 (200,968)
Transfers out (842,352) (842,352) (413,788) 428,564
Total other financing sources, net $2,882,264 $3,095,264 $1,750,599 $(1,344,665)
(Continued)
Budgeted Amounts
Original Final Actual
Variance
with Final
Budget
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, 2020
22
Net change in fund balance $4,700 $- $744,105 $744,105
Fund balances, beginning of year 10,035,966 10,035,966 10,035,966 -
Appropriation of fund balance (1,418,616) (1,579,616) - 1,579,616
Fund balances, end of year $8,622,050 $8,456,350 $10,780,071 $2,323,721
The accompanying notes are an integral part of these financial statements.
Budgeted Amounts
Original Final Actual
Variance
with Final
Budget
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, 2020
23
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, 2020
Revenues
Taxes $3,361,000 $3,361,000 $3,278,669 $(82,331)
Other revenues 15,000 15,000 14,817 (183)
Total revenues 3,376,000 3,376,000 3,293,486 (82,514)
Expenditures
Current:
Culture and recreation 1,670,000 1,670,000 1,589,785 80,215
Total expenditures 1,670,000 1,670,000 1,589,785 80,215
Excess of revenues over expenditures 1,706,000 1,706,000 1,703,701 (2,299)
Other financing uses
Transfers out (1,706,000) (1,706,000) (1,703,701) 2,299
Total other financing uses (1,706,000) (1,706,000) (1,703,701) 2,299
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
24
ASSETS AND DEFERRED OUTFLOWS
OF RESOURCES
ASSETS
Current assets:
Cash and cash equivalents $1,678,588 $282,354 $12,310 $1,973,252
Accounts receivable, net of allowances 257,530 - 82,939 340,469
Inventory 121,012 25,976 - 146,988
Prepaid expenses 97,063 40,476 - 137,539
Total current assets 2,154,193 348,806 95,249 2,598,248
Non–current assets:
Restricted cash 405,421 - - 405,421
Capital assets:
Nondepreciable 508,648 6,870,000 - 7,378,648
Depreciable, net of accumulated depreciation 14,913,670 786,335 - 15,700,005
Total non–current assets 15,827,739 7,656,335 - 23,484,074
Total assets 17,981,932 8,005,141 95,249 26,082,322
DEFERRED OUTFLOWS OF RESOURCES
Pension 62,016 33,422 791 96,229
Total deferred outflows of resources 62,016 33,422 791 96,229
LIABILITIES, DEFERRED INFLOWS
OF RESOURCES AND NET POSITION
LIABILITIES
Current liabilities:
Accounts payable 196,487 22,522 92,197 311,206
Accrued liabilities 6,991 5,136 - 12,127
Compensated absences, current 23,871 14,967 - 38,838
Notes payable, current 164,241 - - 164,241
Bonds payable, current 358,635 439,414 - 798,049
Unearned revenue - 217,810 - 217,810
Total current liabilities 750,225 699,849 92,197 1,542,271
Non–current liabilities:
Customer deposits 307,550 - - 307,550
Notes payable, net of current portion 2,877,470 - - 2,877,470
Bonds payable, net of current portion 1,980,802 2,426,950 - 4,407,752
Net pension liability 142,376 56,181 - 198,557
Total non–current liabilities 5,308,198 2,483,131 - 7,791,329
Total liabilities 6,058,423 3,182,980 92,197 9,333,600
DEFERRED INFLOWS OF RESOURCES
Pension 12,708 6,732 3,209 22,649
Total deferred inflows of resources 12,708 6,732 3,209 22,649
NET POSITION
Net investment in capital assets 10,041,170 4,789,971 - 14,831,141
Restricted for debt service 405,421 - - 405,421
Unrestricted 1,526,226 58,880 634 1,585,740
Total net position $11,972,817 $4,848,851 $634 $16,822,302
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, 2020
Water and
Sewer Fund RV Park Fund
River's End Solid Waste
Collection Fund
25
CITY OF TYBEE ISLAND, GEORGIA
STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2020
Water and River's End Solid Waste
Sewer Fund RV Park Fund Collection Fund Totals
OPERATING REVENUES
Charges for services:
Water charges $1,177,566 $- $- $1,177,566
Sewer charges 1,609,914 - - 1,609,914
Camping fees - 1,645,814 - 1,645,814
Stubbing fees 7,623 - - 7,623
Tapping fees 11,926 - - 11,926
Rental fees 209,711 - - 209,711
Sanitation collection fees - - 953,925 953,925
Other 39,100 7,067 - 46,167
Total operating revenues 3,055,840 1,652,881 953,925 5,662,646
OPERATING EXPENSES
Personnel services 921,203 487,679 - 1,408,882
Administrative 85,055 306,082 - 391,137
Utilities 269,591 128,069 - 397,660
Supplies 109,032 73,691 - 182,723
Repairs and maintenance 260,779 13,819 - 274,598
Sanitation services - - 1,085,702 1,085,702
Miscellaneous 984,627 - - 984,627
Depreciation 691,882 64,752 - 756,634
Total operating expenses 3,322,169 1,074,092 1,085,702 5,481,963
Operating income (loss)(266,329) 578,789 (131,777) 180,683
NON–OPERATING EXPENSES
Interest expense (88,199) (65,881) - (154,080)
Total non–operating expenses (88,199) (65,881) - (154,080)
Income (loss) before contributions and transfers (354,528) 512,908 (131,777) 26,603
CAPITAL CONTRIBUTIONS 56,010 - - 56,010
TRANSFERS
Transfers in - - 131,777 131,777
Transfers out - (600,000) - (600,000)
Total transfers - (600,000) 131,777 (468,223)
Change in net position (298,518) (87,092) - (385,610)
NET POSITION, beginning of year 12,271,335 4,935,943 634 17,207,912
NET POSITION, end of year $11,972,817 $4,848,851 $634 $16,822,302
The accompanying notes are an integral part of these financial statements.
26
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers and users $3,052,887 $1,693,960 $878,530 $5,625,377
Payments to suppliers (1,628,353) (529,438) (997,997) (3,155,788)
Payments to employees (923,008) (487,671) - (1,410,679)
Net cash provided by (used in)
operating activities 501,526 676,851 (119,467) 1,058,910
CASH FLOWS FROM NON-CAPITAL
FINANCING ACTIVITIES
Transfers out - (600,000) - (600,000)
Transfers in - - 131,777 131,777
Net cash provided by (used in) non-capital
financing activities - (600,000) 131,777 (468,223)
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition and construction of capital assets (1,050,516) (304,987) - (1,355,503)
Principal paid on bonds (351,013) (430,075) - (781,088)
Principal paid on notes payable (162,411) - - (162,411)
Interest paid (88,979) (66,651) - (155,630)
Net cash used in capital
and related financing activities (1,652,919) (801,713) - (2,454,632)
Net change in cash and cash equivalents (1,151,393) (724,862) 12,310 (1,863,945)
Cash and cash equivalents, beginning of year 3,235,402 1,007,216 - 4,242,618
Cash and cash equivalents, end of year $2,084,009 $282,354 $12,310 $2,378,673
Classified as:
Cash and cash equivalents $1,678,588 $282,354 $12,310 $1,973,252
Restricted assets: cash 405,421 - - 405,421
$2,084,009 $282,354 $12,310 $2,378,673
(Continued)
Totals
CITY OF TYBEE ISLAND, GEORGIA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2020
Water and
Sewer Fund
River's End
RV Park Fund
Solid Waste
Collection Fund
27
CITY OF TYBEE ISLAND, GEORGIA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2020
Reconciliation of operating income (loss) to net
cash provided by (used in) operating activities
Operating income (loss)$(266,329) $578,789 $(131,777) $180,683
Adjustments to reconcile operating income (loss)
to net cash provided by (used in) operating activities
Depreciation 691,882 64,752 - 756,634
Change in assets and liabilities:
(Increase) decrease:
Accounts receivable (19,553) - (4,345) (23,898)
Inventory - (1,808) - (1,808)
Prepaid expenses (56,264) (9,844) - (66,108)
Increase (decrease):
Accounts payable 136,995 3,875 87,705 228,575
Accrued expenses 1,900 2,519 - 4,419
Customer deposits 16,600 41,079 - 57,679
Net pension liability (3,705) (2,511) - (6,216)
Due to other funds - - (71,050) (71,050)
Net cash provided by (used in) operating activities $501,526 $676,851 $(119,467) $1,058,910
Noncash capital and related financing activities
Contributions from developers $56,010 $- $- $56,010
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
28
ASSETS
Cash $140,196
Total assets $140,196
LIABILITIES
Due to others $140,196
Total liabilities $140,196
The accompanying notes are an integral part of these financial statements.
Agency
Fund
Municipal
Court
CITY OF TYBEE ISLAND, GEORGIA
STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES
FIDUCIARY FUND
JUNE 30, 2020
CITY OF TYBEE ISLAND, GEORGIA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2020
29
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 of the City's accounting policies 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, 2020.
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
30
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
31
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 Special purpose Local Option Sales Tax (“SPLOST”) 03 Fund accounts for
construction of major capital projects financed by SPLOST Proceeds and by the Series
2019 Revenue Bond as described in Note 6.
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 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.
The agency fund is used to account for the collection and disbursement of monies by the
City’s Municipal Court on behalf of other governments and individuals.
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
32
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, and the
FEMA/GEMA Grant 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
33
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
34
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
35
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 and intergovernmental revenues 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
36
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
37
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.
NOTE 2. LEGAL COMPLIANCE – BUDGETS
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.
NOTES TO FINANCIAL STATEMENTS
38
NOTE 2. LEGAL COMPLIANCE – BUDGETS (CONTINUED)
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.
NOTE 3. CASH AND INVESTMENTS
Total cash and investments as of June 30, 2020, are summarized as follows:
Amounts as presented on the government-wide statement of net position:
Cash and cash equivalents $12,481,163
Investments 459,432
Restricted cash and cash equivalents 405,421
Amounts as presented on the statement of fiduciary assets and liabilities:
Cash 140,196
Total $13,486,212
Cash deposited with financial institutions $13,026,780
Cash deposited with Georgia Fund 1 459,432
Total $13,486,212
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”).
The pool's primary objectives are safety of capital, investment income, liquidity and diversification
while maintaining principal ($1 per share value). Net asset value is calculated weekly to ensure
stability. The pool distributes earnings (net of management fees) on a monthly basis and
determines participants’ shares sold and redeemed based on $1 per share. The fair value of the
City's position in the pool is the same as the value of pool shares ($1 per share value). The pool is
regulated by the Georgia Office of the State Treasurer and is currently rated AAAf by Standard and
Poor’s.
NOTES TO FINANCIAL STATEMENTS
39
NOTE 3. CASH AND INVESTMENTS (CONTINUED)
At June 30, 2020, the City had the following investments:
Investments Maturity
Georgia Fund 1 38 days weighted average $459,432
Fair Value
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.
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, 2020, 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. At June 30, 2020, the City was not exposed to custodial credit risk for its
investments.
NOTES TO FINANCIAL STATEMENTS
40
NOTE 4. RECEIVABLES
Property taxes were levied in two installments on September 15, 2019 with a due date of
November 15, 2019, and again on April 1, 2020 with a due date of June 1, 2020. 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, 2020, and expected
to be collected by August 31, 2020, are recognized as revenues in the year ended June 30, 2020.
Net receivables estimated to be collectible subsequent to August 31, 2020, are recorded as revenue
when received. Receivables as of year-end, including the applicable allowances for uncollectible
accounts, are as follows:
Receivables:
Taxes $453,922 $715,609 $- $- $- $- $- $1,169,531
Due from other
governments 118,436 - 116,989 2,813 536,738 - - 774,976
Accounts 79,253 - - - 6,766 287,087 91,300 464,406
Gross receivables 651,611 715,609 116,989 2,813 543,504 287,087 91,300 2,408,913
Less: allowance for
uncollectibles (12,136) - - - - (29,557) (8,361) (50,054)
Net total receivables $639,475 $715,609 $116,989 $2,813 $543,504 $257,530 $82,939 $2,358,859
General
Fund FundFunds
Governmental
Fund Fund
Hotel/Motel
Solid Waste
and Sewer Collection
Nonmajor
TotalFund
Grant SPLOST 03
Fund
Water
NOTES TO FINANCIAL STATEMENTS
41
NOTE 5. CAPITAL ASSETS
Capital asset activity for the fiscal year ended June 30, 2020, is as follows:
Governmental activities:
Capital assets, not being
depreciated:
Land $1,102,857 $- $- $- $1,102,857
Construction in progress 2,942,105 2,995,135 - (5,620,302) 316,938
Total capital assets, not
being depreciated 4,044,962 2,995,135 - (5,620,302) 1,419,795
Capital assets, being depreciated:
Buildings and improvements 8,567,818 110,052 - 3,499,007 12,176,877
Machinery and equipment 6,593,745 675,437 (390,846) 419,627 7,297,963
Infrastructure 3,268,977 1,412,432 - 1,701,668 6,383,077
Total capital assets,
being depreciated 18,430,540 2,197,921 (390,846) 5,620,302 25,857,917
Less accumulated depreciation for:
Buildings and improvements (2,213,028) (291,135) - 379,864 (2,124,299)
Machinery and equipment (3,874,219) (720,276) 379,864 (379,864) (4,594,495)
Infrastructure (2,077,770) (146,116) - - (2,223,886)
Total accumulated depreciation (8,165,017) (1,157,527) 379,864 - (8,942,680)
Total capital assets, being
depreciated, net 10,265,523 1,040,394 (10,982) 5,620,302 16,915,237
Governmental activities capital
assets, net $14,310,485 $4,035,529 $(10,982) $- $18,335,032
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 $265,882 $405,016 $- $(265,882) $405,016
Land 6,973,632 - - - 6,973,632
Total capital assets, not
being depreciated 7,239,514 405,016 - (265,882) 7,378,648
Capital assets, being depreciated:
Land improvements 350,314 - - - 350,314
Buildings 477,948 286,614 - - 764,562
Utility systems and improvements 19,755,938 620,908 (364,839) 265,882 20,277,889
Machinery and equipment 2,148,530 98,975 - - 2,247,505
Total capital assets,
being depreciated 22,732,730 1,006,497 (364,839) 265,882 23,640,270
Less accumulated depreciation for:
Land improvements (146,731) (24,659) - - (171,390)
Buildings (162,772) (24,431) - - (187,203)
Utility systems and improvements (6,232,347) (570,635) 364,839 - (6,438,143)
Machinery and equipment (1,006,620) (136,909) - - (1,143,529)
Total accumulated depreciation (7,548,470) (756,634) 364,839 - (7,940,265)
Total capital assets, being
depreciated, net 15,184,260 249,863 - 265,882 15,700,005
Business-type activities capital
assets, net $22,423,774 $654,879 $- $- $23,078,653
Balance
EndingBeginning
Balance Increases Decreases Transfers
Depreciation expense was charged to functions/programs of the primary government as follows:
$158,524
492,292
239,060
Culture and recreation 267,651
Total depreciation expense - governmental activities $1,157,527
$691,882
River's End RV park 64,752
Total depreciation expense - business-type activities $756,634
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, 2020, is as follows:
Governmental activities
Revenue bonds payable $3,410,000 $- $(125,000) $3,285,000 $125,000
Plus bond premium 223,524 - (17,902) 205,622 -
Total bonds payable 3,633,524 - (142,902) 3,490,622 125,000
Compensated absences 303,733 436,494 (391,536) 348,691 209,215
Net pension liability 494,333 1,200,757 (694,645) 1,000,445 -
Governmental activity
long-term liabilities $4,431,590 $1,637,251 $(1,229,083) $4,839,758 $334,215
Business-type activities
Notes payable $3,204,122 $- $(162,411) $3,041,711 $164,241
Revenue bonds payable 5,986,889 - (781,088) 5,205,801 798,049
Compensated absences 34,419 72,074 (67,655) 38,838 38,838
Net pension liability 95,422 244,707 (141,572) 198,557 -
Business-type activity
long-term liabilities $9,320,852 $316,781 $(1,152,726) $8,484,907 $1,001,128
Due Within
One Year
Beginning
Balance Additions Reductions
Ending
Balance
For the governmental activities, compensated absences and the net pension liability are generally
liquidated by the General Fund. For the business-type activities, compensated absences and the
net pension liability are liquidated by the Water and Sewer Fund and the River’s End RV Park Fund.
NOTES TO FINANCIAL STATEMENTS
44
NOTE 6. LONG-TERM DEBT (CONTINUED)
Revenue Bonds
The City issues bonds where the City pledges income derived from the acquired or constructed
assets to pay debt service. The City’s outstanding bonds at June 30, 2020, are as follows:
Original
Description Amount Interest Rate Due Date
Chatham County Recreation Authority
Refunding Revenue Bond, Series 2016 4,466,000$ 2.15%2026 $2,866,371
Water and Sewer Refunding Revenue
Bonds, Series 2016 3,750,000 2.15%2026 2,339,430
Chatham County Recreation Authority
Revenue Bond, Series 2019 3,410,000 3% - 4%2039 3,285,000
8,490,801
Add unamortized bond premium 205,622
Less current portion (923,049)
$7,773,374
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
2021 $ 1,148,041 $ 923,049 $224,992
2022 1,149,288 945,375 203,913
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 – 2030 2,283,846 1,833,488 450,358
2031 – 2035 1,222,450 935,000 287,450
2036 – 2039 980,590 889,990 90,600
$10,228,231 $8,490,801 $1,737,430
Total Principal Interest
Notes Payable
The Water and Sewer Fund has incurred debt to the Georgia Environmental Facilities Authority for
water and sewer system improvements. These notes are as follows at June 30, 2020:
Original
Description Amount Interest Rate Due Date
Water line extensions and lift stations 1,601,090$ 1.40%2035 $1,278,864
Water and sewer improvements 1,361,000 0.89%2038 1,252,947
Water and sewer improvements 568,973 0.89%2038 509,900
3,041,711
Less current portion (164,241)
$2,877,470
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
2021 $ 186,099 $164,241 $21,858
2022 186,664 166,092 20,572
2023 187,232 167,965 19,267
2024 187,808 169,861 17,947
2025 188,389 171,779 16,610
2026 – 2030 950,823 888,465 62,358
2031 – 2035 966,123 939,952 26,171
2036 – 2039 374,657 373,356 1,301
$3,227,795 $3,041,711 $186,084
Total Principal Interest
NOTE 7. INTERFUND BALANCES AND TRANSFERS
Interfund balances for the fiscal year ended June 30, 2020, consisted of the following:
Due To
General Fund $90,802 $306,567 $528,123 $925,492
Nonmajor Governmental Funds - 79,931 - 79,931
Total $90,802 $386,498 $528,123 $1,005,423
Due From
Hotel/Motel
Grant Tax
Fund Fund Funds Total
Nonmajor
Governmental
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, 2020, consisted of the following:
Transfer To
General Fund $- $1,545,032 $600,000 $2,145,032
Solid Waste Fund 131,777 - - 131,777
Nonmajor governmental funds 282,011 158,669 - 440,680
Total $413,788 $1,703,701 $600,000 $2,717,489
Fund Fund Total
Transfer From
General Hotel/Motel River's End
RV Park Fund
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, 2020, pension plan membership consisted of the following:
Retirees and beneficiaries currently receiving benefits 50
Terminated employees entitled to benefits but not yet receiving them 58
Active Plan members 106
Total membership in the Plan 214
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, 2020, the City's
contribution rate was 7.88% of annual payroll. City contributions to the Plan were $372,670 for the
year ended June 30, 2020.
Net Pension Liability of the City
The City’s net pension liability was measured as of September 30, 2019. The total pension liability
used to calculate the net pension liability was determined by an actuarial valuation as of January 1,
2019 with updated procedures performed by the actuary to roll forward to the total pension liability
measured as of September 30, 2019.
Actuarial assumptions. The total pension liability in the January 1, 2020 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 RP-2000 Combined Healthy Mortality Table with gender-distinct
rates, set forward two years for males and one year for females.
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, 2019, are summarized in the following
table:
Long-term
Target expected real
Asset Class allocation rate of return*
Domestic equity 45%6.41%
International equity 20%6.96%
Domestic fixed income 20%1.96%
Real estate 10%4.76%
Global fixed income 5%3.06%
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, 2020, were as follows:
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
(a)(b)(a) - (b)
Beginning balances 10,005,194$ 9,415,439$ 589,755$
Changes for the year:
Service cost 222,306 - 222,306
Interest 750,299 - 750,299
Differences between expected
and actual experience 445,331 - 445,331
Contributions - employer - 421,734 (421,734)
Net investment income - 283,751 (283,751)
Benefit payments, including refunds
of employee contributions (447,024) (447,024) -
Administrative expense - (27,528) 27,528
Other (130,732) - (130,732)
Net changes 840,180 230,933 609,247
Ending balances 10,845,374$ 9,646,372$ 1,199,002$
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 2,647,157$ 1,199,002$ 3,747$
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, 2019, 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, 2020, the City recognized pension expense of $335,947. At June 30,
2020, the City reported deferred outflows of resources and deferred inflows of resources related to
pensions from the following sources:
Deferred
Inflows of
Resources
Differences between expected and actual experience (90,438)$
Changes in assumptions 230 (98,049)
Net difference between projected and actual
- (52,091)
City contributions subsequent
279,502 -
Total 667,877$ (240,578)$
Deferred
Outflows of
Resources
earnings on pension plan investments
to the measurement date
388,145$
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 $279,502 are reported as deferred
outflows of resources and will be recognized as a reduction of the net pension liability in the year
ending June 30, 2021. Other amounts reported as deferred inflows of resources related to pensions
will be recognized as a component of pension expense as follows:
(45,992)$
(11,539)
121,243
84,085
147,797$
Year ending June 30,
Total
2024
2023
2022
2021
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, 2020, 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, 2020, $3,293,486 of
Hotel/Motel tax was collected. Of the total collected, 100% was used for the promotion of tourism
within the City ($1,029,918 to the Savannah Chamber of Commerce, $515,114 to the Georgia
International Convention Center, $44,753 to the Tybee Post Theater, $1,545,032 to the general
fund, and $158,669 to the debt service fund).
REQUIRED SUPPLEMENTARY INFORMATION
54
Total pension liability
Service cost $222,306 $259,255 $270,293 $243,211 $271,181 $254,414
Interest on total pension liability 750,299 724,949 678,645 632,774 591,196 559,195
Differences between expected and actual
experience 445,331 (180,875) 107,516 55,701 (6,456)(90,395)
Changes of assumptions - - - - - (2,320)
Benefit payments, including refunds of
employee contributions (447,024) (409,734) (404,293) (331,010) (307,853) (308,101)
Other (130,732) - 577 27,856 - -
Net change in total pension liability 840,180 393,595 652,738 628,532 548,068 412,793
Total pension liability - beginning 10,005,194 9,611,599 8,958,861 8,330,329 7,782,261 7,369,468
Total pension liability - ending (a)10,845,374 10,005,194 9,611,599 8,958,861 8,330,329 7,782,261
Plan fiduciary net position
Contributions - employer 421,734 433,667 423,061 430,220 450,057 428,260
Net investment income 283,751 850,056 1,123,477 745,075 67,622 651,704
Benefit payments, including refunds of
employee contributions (447,024) (409,734) (404,293) (331,010) (307,853) (308,101)
Administrative expenses (27,528) (28,995) (29,890) (17,953) (20,168) (15,776)
Net change in plan fiduciary net position 230,933 844,994 1,112,355 826,332 189,658 756,087
Plan fiduciary net position - beginning 9,415,439 8,570,445 7,458,090 6,631,758 6,442,100 5,686,013
Plan fiduciary net position - ending (b)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)$1,199,002 $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 88.94%94.11%89.17%83.25%79.61%82.78%
Covered payroll $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 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
20192020
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 $372,670 $438,089 $432,193 $420,017 $433,621 $455,536
Contributions in relation to the actuarially
determined contribution 372,670 438,089 432,193 420,017 433,621 455,536
Contribution deficiency (excess)$- $- $- $- $- $-
Covered payroll $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 7.88%10.53%9.61%9.71%11.30%11.87%
Notes to the Schedule:
Valuation Date January 1, 2020
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.
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.
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%
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.
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.
DEBT SERVICE FUND
Debt Service Fund – To account for the debt payments and debt proceeds of the City.
56
ASSETS
Cash and cash equivalents $4,588 $934,176 $78,748 $1,017,512
Accounts receivable 6,766 - - 6,766
Due from other governments 363,012 173,726 - 536,738
Due from other funds - - 79,931 79,931
Prepaid expenditures 1,486 - - 1,486
Total assets $375,852 $1,107,902 $158,679 $1,642,433
LIABILITIES AND FUND BALANCE
LIABILITIES
Accounts payable $134 $117,735 $- $117,869
Due to other funds 528,123 - - 528,123
Total liabilities 528,257 117,735 - 645,992
FUND BALANCE
Nonspendable - prepaid items 1,486 - - 1,486
Restricted for:
Public safety vehicles and equipment 4,454 - - 4,454
Capital projects - 990,167 - 990,167
Debt service - - 158,679 158,679
Unassigned (158,345) (158,345)
Total fund balance (152,405) 990,167 158,679 996,441
Total liabilities and fund balance $375,852 $1,107,902 $158,679 $1,642,433
CITY OF TYBEE ISLAND, GEORGIA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2020
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, 2020
Revenues
Intergovernmental $- $530,347 $- $530,347
Charges for services 88,568 - - 88,568
Interest income - 4,377 - 4,377
Total revenues 88,568 534,724 - 623,292
Expenditures
Current:
Public safety 524,683 - - 524,683
Capital outlay - 541,425 - 541,425
Debt service:
Principal - - 125,000 125,000
Interest - - 120,399 120,399
Total expenditures 524,683 541,425 245,399 1,311,507
Deficiency of revenues
under expenditures (436,115) (6,701) (245,399) (688,215)
Other financing source
Transfers in 281,751 - 158,929 440,680
Total other financing source 281,751 - 158,929 440,680
Net change in fund balance (154,364) (6,701) (86,470) (247,535)
Fund balance, beginning of year 1,959 996,868 245,149 1,243,976
Fund balance, end of year $(152,405) $990,167 $158,679 $996,441
Total
Nonmajor
Governmental
Funds
Nonmajor
Special
Nonmajor
2014 Debt
Service
Fund
SPLOST
Fund
Nonmajor
Revenue
Funds
58
ASSETS
Cash and cash equivalents $- $4,588 $- $4,588
Accounts receivable 6,766 - - 6,766
Due from other governments - - 363,012 363,012
Prepaid expenditures 1,486 - - 1,486
Total assets $8,252 $4,588 363,012 $375,852
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts payable $- $134 $- $134
Due to other funds 7,770 - 520,353 528,123
Total liabilities 7,770 134 520,353 528,257
FUND BALANCE
Nonspendable - prepaid items 1,486 - - 1,486
Restricted for:
Public safety - 4,454 - 4,454
Unassigned (1,004) - (157,341) (158,345)
Total fund balance 482 4,454 (157,341) (152,405)
Total liabilities and fund balance $8,252 $4,588 $363,012 $375,852
CITY OF TYBEE ISLAND, GEORGIA
COMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS
JUNE 30, 2020
Total
Nonmajor
Special
Fund
E911
Fund
RevenueAssets
Funds
Confiscated FEMA/GEMA
Grant
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, 2020
Revenues
Charges for services $75,874 $12,694 $- $88,568
Total revenues 75,874 12,694 - 88,568
Expenditures
Current:
Public safety 357,642 9,700 157,341 524,683
Total expenditures 357,642 9,700 157,341 524,683
Excess (deficiency) of revenues over
(under) expenditures (281,768) 2,994 (157,341) (436,115)
Other financing source
Transfers in 281,751 - - 281,751
Total other financing source 281,751 - - 281,751
Net change in fund balance (17) 2,994 (157,341) (154,364)
Fund balance, beginning of year 499 1,460 - 1,959
Fund balance, end of year $482 $4,454 $(157,341) $(152,405)
Fund 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 $- $228,437
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 34,072 6,543 40,615
Drainage project - various - 196,030 21,736 - 21,736
Street sweeper equipment - 180,000 180,000 - 180,000
Cultural and Recreation
Memorial Park pavilion building 32,000 45,997 45,997 - 45,997
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 - 460,000 139,409 534,882 674,291
Various projects 332,000 - - - -
Beach Related
Mobile Mats 20,000 - - - -
Beach crossovers - 224,770 224,769 - 224,769
Future projects - 248,039 - - -
$4,200,000 $3,725,694 $2,842,100 $541,425 $3,383,525
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, 2020
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 600,000 601,908 561,574 2,677,005 3,238,579
South Beach Business District - 764,381 764,381 - 764,381
Other
Other capital equipment 190,354 - - - -
$6,515,354 $7,354,160 $7,313,826 $2,677,005 $9,990,831
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, 2020
Estimated Cost Expenditures
Original Current
Prior
Years
Current
Year
Cumulative
Total
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, 2020, 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 15, 2020
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.
63
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 15, 2020
64
CITY OF TYBEE ISLAND, GEORGIA
SCHEDULE OF FINDINGS AND RESPONSES
FOR THE FISCAL YEAR ENDED JUNE 30, 2020
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
There was not an audit of major federal award programs as of June 30, 2020, due to the total amount expended
being less than $750,000.
SECTION II
FINANCIAL STATEMENT FINDINGS AND RESPONSES
None reported.
SECTION III
FEDERAL AWARDS FINDINGS AND QUESTIONED COSTS
Not applicable.
65
CITY OF TYBEE ISLAND, GEORGIA
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS
FOR THE FISCAL YEAR ENDED JUNE 30, 2020
None reported.