Revenue Status Report General Fund As of March 31, 2013

(Unaudited - Internal Use Only)

Markus Schwab, CPA/CITP/CGMA Administrative Services | Chief Financial Officer Chuck Olmsted Administrative Services | Accounting Manager
100 South Hill Street-P.O. Box T | Griffin, GA 30223 P 770.229.6401 F 678.692.0402 W cityofgriffin.com

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Revenue Status Report - General Fund As of March 31, 2013 (Unaudited - Internal Use Only)

Table of Contents

I. II. III. IV. V.

Current Economics Unemployment Numbers

General Fund Revenue Sources Revenues by Category

3 9 10 11 12 13, 14 15 16 17 18 19, 20

Revenues Taxes Property Taxes Licenses and Permits Intergovernmental Charges for Services Fines and Forfeitures Other Revenues

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Revenue Status Report - General Fund As of March 31, 2013 (Unaudited - Internal Use Only)

I. Current Economics

Property Tax Digest Collections History

Beige Book - April 17, 2013 Current Economic Conditions

Sixth District--Atlanta Summary. Sixth District business contacts reported that economic activity continued to advance at a modest pace from mid-February through March. Reports across sectors were generally positive and expectations for the coming months remained optimistic. Retail reports were mixed with some retailers citing improved sales and others feeling the pinch from a constrained consumer. Hospitality contacts reported healthy activity in both leisure and business travel. Homebuilders and brokers experienced further improvements in sales and prices of new and existing homes, and inventories continued to decline on a year-over-year basis. Commercial contractors noted a strong year to date as construction levels improved from late last year. Overall, manufacturing activity remained positive as new orders and production increased. Loan demand remained steady according to bankers. Payrolls continued to grow at a tepid pace as firms remained reluctant in hiring due to uncertainty over fiscal policy and healthcare reform. Prices remained stable and most firms continued to report having relatively little pricing power. Consumer Spending and Tourism District merchants reported mixed results from mid- February through March. Several contacts indicated improvements in profit margins and sales over the last three months, while others noted that they experienced the result of consumers taking a hit with the expiration of the payroll tax cut, increased fuel prices, a delay in income tax refunds, and increased health insurance premiums. Yet, even with these challenges, most retailers remained reasonably upbeat. District automotive contacts cited favorable sales for the same time period. Travel and tourism activity remained robust and continued to exceed expectations, especially in the leisure segment. Although government and business bookings decreased due to location restrictions and/or budgetary constraints, overall demand remained healthy. Concerns that gas prices could dampen summer travel continued; however, hospitality contacts anticipate activity to still exceed 2012 levels. International visitation for leisure and convention travel continued to be a strong contributor to growth despite the strength of the dollar. Real Estate and Construction According to District brokers, housing markets across the region continued to improve. Recent sales growth was described as strong on a year-over-year basis. Existing home inventories continued to contract and brokers noted that this was restraining sales. Furthermore, many reported receiving multiple offers on properties, particularly at the lowend of the market. Most indicated that home prices rose modestly compared with a year earlier. Appreciation was strongest among Florida contacts. Overall, the outlook for existing home sales growth over the next several months remained positive. Similar to our last report, homebuilders reported that recent new home sales were ahead of year earlier levels, and they noted improving levels of buyer traffic across the region. Just over half said that new home inventories were below the year-ago level. The portion of builders characterizing home prices as up relative to a year ago also rose compared to our previous report. Reports also cited that new home construction was ahead of last years level. Contacts remarked that access to construction financing had improved somewhat from late last year, but the majority continued to report that the number of actual loans made was still short of demand. The outlook for construction activity and new home sales over the next several months remained positive with most anticipating levels to be slightly ahead on a year-over-year basis. District commercial real estate contacts indicated that the first quarter of this year had started off solid compared with the end of last year. Commercial brokers reported that net absorption was positive. Contacts also noted growing optimism as businesses in the office and industrial sector began to position themselves for growth over the next 12 to 18 months. However, the demand for retail space remained soft across most of the region. Contacts remarked that investor interest had spread to secondary and tertiary markets, particularly in the apartment sector where demand had been especially strong. Commercial contractors cited that construction improved from late last year and backlogs were up as well. Activity was dominated by build-to-suit projects. Most contacts expect District commercial real estate markets to improve further this year. Manufacturing and Transportation Regional manufacturers reported that activity expanded for the third consecutive month in March. Increases in new orders, production, employment, and finished inventory contributed to the highest level of manufacturing activity since May 2012. Contacts noted profit margins slightly improved from mid-February through March. However, they do not expect production to be as high in the coming months as they had in our previous report. District trucking contacts reported a slowdown in volume, citing reduced imports of retail goods from west coast ports, along with poor weather conditions. Still, volumes were ahead of year earlier levels. Strong movement of housing-related materials was cited as the Page 3 of housing recovery continued. Railroad companies described activity as flat to 21 slightly down. Chemicals and oil and gas showed the strongest growth, while coal reflected some softening, particularly in export of thermal coal. Intermodal growth remained solid and the movement of forest products also improved. Domestic air freight traffic was up slightly, and international tonnage grew compared to the same period last year, marked by increases in Asian volumes and exports to Europe and Latin America, specifically Brazil.

Manufacturing and Transportation Regional manufacturers reported that activity expanded for the third consecutive month in March. Increases in new orders, production, Revenue Status Report - General Fund employment, and finished inventory contributed to the highest level of manufacturing activity since May 2012. Contacts noted profit As of March 31, 2013 margins slightly improved from mid-February through March. However, they do not expect production to be as high in the coming months (Unaudited - Internal Use Only) as they had in our previous report. District trucking contacts reported a slowdown in volume, citing reduced imports of retail goods from west coast ports, along with poor weather conditions. Still, volumes were ahead of year earlier levels. Strong movement of housing-related materials was cited as the housing recovery continued. Railroad companies described activity as flat to slightly down. Chemicals and oil and gas showed the strongest growth, while coal reflected some softening, particularly in export of thermal coal. Intermodal growth remained solid and the movement of forest products also improved. Domestic air freight traffic was up slightly, and international tonnage grew compared to the same period last year, marked by increases in Asian volumes and exports to Europe and Latin America, specifically Brazil. Banking and Finance Driven by historically low rates, consumers continued refinancing mortgage loans and businesses continued restructuring debt. Competition remained intense for high quality loan applicants and community bankers noted that large regional and national banking organizations were more willing to offer lower fixed-rate, longer-termed loans to attract these customers. Many community banking contacts indicated that their institution had exited the mortgage lending business altogether because of increased regulations. Some stated that commercial real estate loan demand had increased, particularly for branded hotel construction, healthcare, and multi-family projects. Banks also cited more willingness to lend to small businesses; however, the overall demand for loans and credit line usage continued to remain low. Credit spreads remained tight and some bankers reported downward pressure on loan pricing. Employment and Prices Since our last report, payroll growth continued to increase at a lackluster pace across the District, though contacts continued to report that uncertainty over fiscal policy and healthcare reform were contributing to reluctance in hiring. In Florida and Georgia, the two states in the District with the largest concentrations of employment, unemployment rates declined slightly since the previous report, while unemployment rates have fluctuated in the four other states due to changes in the size of those states labor force. Input costs remained mostly stable. Increases in prices for fuel and construction materials were viewed by most firms as transitory. Yearahead unit cost expectations were 1.9 percent in February and March, roughly unchanged since the beginning of the year, according to the Atlanta Feds Business Inflation Expectations Survey. Most businesses noted very little pricing power. Exceptions were transportation contacts who were able to successfully cover cost increases using fuel surcharges, and retailers, whose profit margins improved as sales levels ticked up somewhat over the reporting period. Natural Resources and Agriculture The energy industry remained an especially bright spot in the region. In particular, projects to increase the Gulf Coasts liquefied natural gas (LNG) export capacitythrough investment in new LNG export facilities at ports and new transportation infrastructure, like pipeline and LNG tankswere strong drivers of capital and labor demand. Drought conditions improved significantly in Georgia, southeastern Alabama, and the Florida panhandle. Since the last report, monthly soybean and corn prices rose moderately, while broiler prices reached record highs. Cotton prices continued to be below year-ago levels, but rose modestly since the last report. Driven by increasing global demand and low interest rates, contacts reported continued investment in new, more efficient equipment reducing both labor and fuel costs.

Last update: April 17, 2013

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Revenue Status Report - General Fund As of March 31, 2013 (Unaudited - Internal Use Only)

Interest Rate Outlook

Panel of Economists
The stock market is roaring along, the jobs numbers look good, and consumer confidence is up. At the same time, Italy is once again a matter of concern, a number of workers are in fact under-employed, and consumer confidence - and the stock market, for that matter - is not necessarily the best overall indicator. What should we be thinking about regarding the U.S. economy, now and for the next few months? John Lonski, chief economist, Moody's Investor's Service, and Ben Garber, an economist at Moody's, said: "Key indicators will include monthly job and income figures. If they slide below trend in light of government spending cuts, markets and economic performance will soften in the months ahead."

James Glassman, managing director and senior economist at J.P. Morgan Chase and Co., said: "The near-term outlook is faces uncertainty associated with the drag from the hike in the Social Security payroll tax and federal government sequestration cuts. But the economy entered the year with more momentum than many expected, and the rising stock market is creating substantial capital gains that are supporting consumption. At the same time, the falling number of weekly applications for unemployment benefits is confirmation that the job market continues to strengthen. I anticipate that the economy will grow faster in 2013 than last year, at about a 3% pace, and accelerate further in 2014, in line with the Fed's 3-4% growth range." "The European-27 area is expected to pick up speed in 2013, growing about 2 percent, up from no growth in 2012. The Italian election symbolizes a pushback on fiscal austerity by the electorate that has been such a drag on the region." Lacy H. Hunt, executive vice president of Hoisington Investment Management, said: "Economic growth in the first quarter, although not very good, is likely to be the best of year. Total tax increases on January 1 amounted to $275 billion, or 1.8% of $15.85 billion GDP in the fourth quarter. From Q4 2011 to Q4 2012, nominal GDP grew just 3.5%. This tax hike should drive yearly growth in nominal GDP to 2% or less from the fourth quarter of this year. Such poor top-line growth leaves little room for either real growth or inflation. Major tax increases have their most negative impacts in the second and third quarters after the tax increase. By the end of the third quarter, half of the contractionary effects of the tax will be felt, with a continuing drag from quarter four through the 12 after the enactment of the tax increase. The first quarter benefited from reconstruction expenditures related to super storm Sandy. The economic benefit will be considerably less in the second quarter, or just as the more tax effects begin to hit the economy much more sharply. The household sector is not well positioned to absorb these higher taxes. Real average weekly earnings in February were 0.2% below the year-earlier level. Adjusted for the FICA tax increase, real earnings would be more than 2% less than a year ago. University of Michigan Consumer Sentiment in the first ten days of March dropped sharply, falling to a 25-month low, quite possibly serving as an early warning sign of deteriorating economic fundamentals. Earnings are far more significant to more households than gains in the stock market. Econometric studies show that the so-called wealth effect is negligible and not observable for households with less than $130,000 in annual income. While consumer spending rose in January and February, most of this gain was due to higher costs of necessities. Without growth in income, households were forced to sharply reduce their saving rate in February, which will need to be replenished. When taxes rise, the initial reaction of households is to try to maintain their standard of living by reducing their saving. But, as time passes, saving rises, thus accounting for the lagged impact of higher taxes on economic activity. The need to rebuild saving this year will be even greater because of this year's jump in the cost of necessities." "The weakness in real average weekly earnings indicates that the gains in employment this year have not generated income. Instead they mainly reflect that firms are substituting part time jobs for full time jobs. A mix or more part-time and fewer full-time jobs reduced total compensation since the former do not receive benefits. This trend will certainly continue through June 30, 2013, when firms must establish their base for the Affordable Care Act that goes into effect on January 1, 2014. The employment to population ratio, which is not biased by a shift from full to part-time work, has stagnated this year, indicating that the labor markets are not, contrary to conventional wisdom, getting better. In short, the U.S. economy faces considerable impediments to growth, and the rise in GDP is likely to be even slower than last year's paltry rise, with growth after the first quarter getting progressively softer."

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Revenue Status Report - General Fund As of March 31, 2013 (Unaudited - Internal Use Only)

Snapshot of Economy and Interest Rates

Economic Summary Moving Averages 6-Month Treasury Bill

10-Year Treasury Note

Investment Performance Benchmarks

Annualized Returns Since Date Average Return 0.02% 0.02% 0.02% 0.02% 0.02% 7-day yield 0.05% Jan.1, 2011 0.02% 0.03% 0.03% 0.03% 0.03% 30-day yield 0.05% 3/29/2013 0.12 0.10 0.15 0.23 0.08 0.14 0.08 3.99 Jan. 1, 2010 0.06% 0.03% 0.03% 0.03% 0.03% Maturity (Days) 49 Year Ago 0.12 * * 0.23 0.09 0.18 * 4.08

The money market fund index

Jan. 1, 2012 Jan. 1, 2013 Feb. 1, 2013 Mar. 1, 2013 Apr. 1, 2013 Date 22-Mar-13

S&P Rated LGIP Index

Key Rates: Cash Markets

Rate Fed funds CDs: Three months CDs: Six months BAs: One month T-bills: 91-day yield T-bills: 52-week yield Commercial paper, dealerplaced, 3 months Bond Buyer 20-bond municipal index

* No quote because the market is unstable

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Revenue Status Report - General Fund As of March 31, 2013 (Unaudited - Internal Use Only)

Notes

Moving Averages - The four-week moving averages are calculated as a simple average of Friday closing yield quotations for the most recently offered six-month Treasury bill (discount basis), two-year Treasury note, and 10-year Treasury note. Moving averages are used by analysts to monitor trends and trend changes. Generally, interest rates are increasing (prices falling) when the moving average yield is rising and the current rate exceeds the moving average. Conversely, current yields below a declining moving average are associated with lower interest rates (high prices on fixed-income securities). Some market timers buy (or sell) longer maturities when current market yields fall below (or penetrate above) their moving averages. The money market fund index - This index is the simple average of iMoneyNet Money Fund Averages /Taxable (All) seven-day money market fund indexes, as reported for the two weeks closest to the end of each month. The annualized return is calculated using these rates for a four-week period centering on the first of each month. The results should simulate returns from passive investment in an average money market fund. S&P Rated LGIP Index - This index is comprised of local government investment pools that are rated AAAm or AAm by Standard & Poor's and represents pools that strive to maintain a stable net asset value.

Executive Director/CEO: Jeffrey Esser

Editor: Marcy Boggs

April 2013 Volume 31, Number 4

Government Finance Officers Association of the United States and Canada

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Revenue Status Report - General Fund As of March 31, 2013 (Unaudited - Internal Use Only)

April 30, 2013

Understanding Georgia's Motor Vehicles Ad Valorem Title Tax (TAVT) Distribution House Bill 386 Tax Reform Legislation

Updated Wednesday, May 1, 2013

As the first distributions of Georgias Motor Vehicles Ad Valorem Title Tax (TAVT) begin to be received by local governments around the state, there may be some initial confusion as to just what these funds are and how to account for them. This confusion may come from the three notations accompanying the distribution; LOST Amount, SPLOST Amount and True-up Amount. These notations refer to how the revenue should be distributed as outlined in HB 386, passed in 2012, and HB 266, passed in 2013. The following are simplified definitions of each notation: TAVT True-up Amount The difference between a jurisdictions combined motor vehicles ad valorem tax revenue in the corresponding month from 2012 and the ad valorem tax revenue from the same month in 2013. TAVT LOST Amount The amount of revenue split by the county and all other taxing jurisdictions (after the state portion of 57% for 2013 has been removed) according to that countys LOST distribution formula, and after the True-up for ad valorem tax. TAVT SPLOST Amount The amount of revenue split by the county and all other taxing jurisdictions (after the state portion of 57% for 2013 has been removed) according to that countys SPLOST agreement. Although the proportion of TAVT a local government will receive is based on the way LOST and SPLOST funds are distributed, TAVT funds do not have the restrictions on allowable uses like LOST and SPLOST funds. This is the good news: TAVT funds can be used to help where needed, including help paying for SPLOST projects. The bad news is that SPLOST revenues may not meet their projections due to the elimination of both the Motor Vehicle Sales Tax and the Sales Tax on Energy Used in Manufacturing. Several other sales tax exemptions may add to the loss of sales tax collections, more so in certain areas of the state. These exemptions include the Agriculture Sales Tax Exemptions (GATE Program), the Construction Materials Sales Tax Exemption for Projects of Regional Significance, and the reinstitution of Sales Tax Holidays in 2012 and 2013. These exemptions will not only impact SPLOST, they will impact all sales tax revenues. In crafting the tax reform package, the Georgia General Assembly attempted to make the TAVT revenue neutral by adding language into law that requires internet retailers to remit sales tax as well as eliminating the sales tax exemption on film production. The problem with these sources of revenue is that e-fairness is very difficult to enforce at the state level, and the other will only bring in sales tax in areas of the state where movies are filmed TAVT will be distributed monthly by the county tax commissioner to both the state and the local taxing authorities. The tax commissioner is responsible for comparing 2012 monthly motor vehicle ad valorem tax figures with those figures of the corresponding month in 2013, then distributing the amount due to local taxing authorities to true-up the 2013 revenue to the same level as 2012 ad valorem tax revenue. If the amount of TAVT in a given month in 2013 is less than the same calendar month of 2012, the difference should be noted as a Shortfall by the tax commissioner and be spread across each taxing authority proportionally. The amount of the Shortfall is to be covered by the following months TAVT funds. Remaining TAVT revenue will be distributed based on the formulas of various sales tax sharing agreements (LOST, ELOST, HOST, MARTA, and SPLOST). If the amount of TAVT in a given month in 2013 is less than the same calendar month of 2012, the difference should be noted as a Shortfall by the tax commissioner and be spread across each taxing authority proportionally. The amount of the Shortfall is to be covered by the following months TAVT funds. As the smoke of tax reform begins to settle with the full implementation of the TAVT, cities may want to determine which area of sales tax has been hit hardest within their jurisdiction. The DOR will provide sales tax data by industry in a given county upon request. If a city can determine how much of a particular industry is within its boundaries, then it may be possible to determine which aspect of tax reform has hit your city the hardest. Good accounting and good analysis will be the key in understanding the numbers. Moving forward, city financial managers should also keep concise records of TAVT distribution figures in order to be in a position to make reasoned and reliable projections of revenue expectations for the year(s) ahead. The process for TAVT distributions is highly technical and, quite frankly, very hard to understand. In the coming months, the DOR will have their hands full making sure county tax agents across the state are properly trained to manage the distributions. Although it should go without saying, vigilance will be necessary in order to make sure your city is getting (and continues to get) the correct amount due.

Should you have any questions, please feel free to contact Michael McPherson of GMA at (678) 686-6390.

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Revenue Status Report - General Fund As of March 31, 2013 (Unaudited - Internal Use Only)

II. Unemployment Numbers

15.00 12.50
Georgia, 10.20

Spalding, 13.70 12.50 11.50 9.90 9.10

10.90
8.40

10.00 7.50 Mar-2010 Mar-2011

Mar-2012

Mar-2013

Latest Unemployment Figures

Georgia Mar-2010 Mar-2011 Mar-2012 Mar-2013 Labor Force 4,720,325 4,752,863 4,797,535 4,821,591 Employment 4,238,988 4,282,666 4,358,880 4,414,949 Unemployment 481,337 470,197 438,655 406,642 Unemployment Rate 10.20 9.90 9.10 8.40 Unemployment Rate 13.70 12.50 11.50 10.90 # Change in Unemployment (11,140) (31,542) (32,013) # Change in Unemployment (397) (270) (148) % Change in Unemployment -2.31% -6.71% -7.30% % Change in Unemployment -9.97% -7.54% -4.47%

Spalding County Mar-2010 Mar-2011 Mar-2012 Mar-2013

Labor Force 28,975 28,551 28,711 29,050

Employment 24,995 24,968 25,398 25,885

Unemployment 3,980 3,583 3,313 3,165

Georgia

Spalding County

Georgia

Spalding County

Data comes from the U.S. Department of Labor, Bureau of Labor Statistics

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Revenue Status Report - General Fund As of March 31, 2013 (Unaudited - Internal Use Only)

III. General Fund Revenue Sources

How do employment economics relate to the City of Griffin and its revenue sources? The City's general fund revenue sources include (by category) Taxes, Intergovernmental, Fines and Forfeitures, Licenses and Permits, Charges for Services, Rents and Royalties, etc These types of revenue sources, such as taxes, are subject to economic ebbs and flows, are directly and indirectly connected through changes in the unemployment figures.

Taxes

Taxes account for approximately 38 percent of the City's general operating revenue coming from property taxes, local option sales taxes, insurance premium taxes, alcohol taxes, business occupation taxes, and motor vehicle taxes, etc Property taxes alone represent approximately 16 percent of general fund revenue followed by local option sales tax of approximately 13 percent of general fund revenue.

Intergovernmental

This category accounts for revenue sources (predominantly grants) from other governmental agencies.

Fines and Forfeitures

Near 4 percent of total general fund revenue, traffic fines make up 65 percent of this category or $650000 with the balance (35 percent or $350000,) from traffic cameras (running red lights), seatbelt fines, and ordinance fines. Licenses and permits make up less than 1 percent of total general fund revenue. Licenses make up approximately 70 percent or $190000 of this category. The balance of 30 percent or $82200 comes from permits.

Licenses and Permits

Charges for Services

Service fees include business occupation tax administration fees, police service charges for copies, documents, etc., plan review and zoning document fees, and pavilion rentals. This category also includes a large portion ($5.4M) in administrative cost allocations coming from enterprise and internal services funds. Cost allocations, depending on their nature, can be non-cash book entries in order to comply with Generally Accepted Accounting Principles (GAAP). Allocations are designed to shift and allocate costs to business units in order to show true operating costs.) These are revenues from leased office and parking lot spaces. This category represents interest and dividend earnings from investments. This category includes insurance settlements, claims, recoveries, and miscellaneous reimbursements.

Rents and Royalties Investment Income Miscellaneous Revenues

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Revenue Status Report - General Fund As of March 31, 2013 (Unaudited - Internal Use Only)

IV. Revenues by Category General Fund Total General Fund Revenues

Rolling Twelve Month Actual Projected Over (Under) Budget 503,047

Budget Total Revenues By Category Operating Revenue Taxes Licenses and Permits Charges for Services Fines and Forfeitures Rents and Royalties Total Operating Revenue Non-operating Income Intergovernmental Interest/Investment Income Contributions and Donations Gain (Loss) on Sale of Capital Assets Total Non-operating Income Transfers in from Other Funds Total Revenues

Projection

% Variance % Weighted 1.87% 100.00%

$ 26,841,130 $ 28,620,510 $ 27,344,177 $ 2 211 214

10,310,000 272,200 5,122,753 1,000,000 215,041 16,919,994

10,574,700 348,270 5,041,530 900,340 235,260 17,100,100

10,660,580 336,610 5,191,730 881,840 234,110 17,304,870

350,580 64,410 68,977 (118,160) 19,069 384,876

3.40% 23.66% 1.35% -11.82% 8.87% 2.27%

69.69% 12.80% 13.71% 23.49% 3.79% 76.51%

198,500 8,000 0 0 206,500 9,714,636

278,370 12,940 1,400 660,490 953,200 10,567,210

295,820 10,500 370 17,250 323,940 9,715,367

97,320 2,500 370 17,250 117,440 731 503,047

49.03% 31.25% 100.00% 100.00% 56.87% 0.01% 1.87%

19.35% 0.50% 0.07% 3.43% 23.35% 0.15% 100.00%

$ 26,841,130 $ 28,620,510 $ 27,344,177 $ 0 0 0

Adjustments: Gain (Loss) on Sale of Capital Assets: 0 $ 660,490 $ 17,250 $ 17,250 0 17,250 0 17,250 0 503,047 1.87%

***No adjustments as of the report date.*** Gain (Loss) on Sale of Capital Assets after Adjustments: 0 660,490 Total Adjustments: 0 0 Total Revenues after Adjustments

$ 26,841,130 $ 28,620,510 $ 27,344,177 $

ANALYSIS: Total General Fund Revenues as of the date of this report are forecast at $27.3 million after adjustments (up $503 thousand or 1.87 percent of Budget). As of March 31, 2013 the revenue forecast model projects Local Option Sales Tax (LOST) revenues at $3.52 million (up $118 thousand dollars or 3.5 percent of Budget).

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Revenue Status Report - General Fund As of March 31, 2013 (Unaudited - Internal Use Only)

V. Revenues General Fund Tax Revenues

Rolling Twelve Month Actual Projected Over (Under) Budget 350,580

Budget Total Tax Revenues By Category Property Taxes Real Property Tax Public Utility Tax Motor Vehicle Tax Intangible Tax Railroad Equipment Tax Real Estate Transfer Tax Timber Tax Real Property Tax - Prior Year Heavy Equipment Tax Property not on Tax Digest Sub-total Property Taxes Franchise Taxes Franchise Fees - Electric Franchise Fees - Natural Gas Franchise Fees - Cable Television Franchise Fees - Telephone Sub-total Franchise Fee Taxes Food and Beverage Taxes Wine Tax Beer Excise Tax Liquor Excise Tax Sub-total Beer, Wine, Liquor & Mixed Drink Tax Payment in Lieu of Taxes Local Option Sales Tax (LOST) Hotel Motel Tax Business Occupation Tax Insurance Premium Tax Financial Institution Tax Penalty and Interest on Delinquent Taxes Penalty and Interest on Delinquent Business Licenses and Permits Homeowner's Tax Relief Grant Total Tax Revenues

Projection

% Variance 3.40%

% Weighted on Category 100.00%

$ 10,310,000 $ 10,574,697 $ 10,660,580 $

3,850,000 30,000 270,000 14,000 5,000 4,000 0 0 0 0 4,173,000

3,862,440 52,340 272,587 26,403 4,487 8,036 0 15,593 0 372 4,242,258

3,948,420 30,000 267,290 23,250 1,500 7,850 10 0 0 0 4,278,320

98,420 0 (2,710) 9,250 (3,500) 3,850 10 0 0 0 105,320

2.56% 0.00% -1.00% 66.07% -70.00% 96.25% 100.00%

28.07% 0.77% 2.64% 1.00% 1.10% 0.00%

2.52%

30.04%

70,000 159,000 220,000 140,000 589,000

49,684 116,773 233,771 137,430 537,658

49,680 155,310 229,400 116,160 550,550

(20,320) (3,690) 9,400 (23,840) (38,450)

-29.03% -2.32% 4.27% -17.03% -6.53%

5.80% 1.05% 2.68% 6.80% 10.97%

0 500,000 40,000 540,000 0 3,400,000 0 400,000 1,100,000 75,000 33,000 0 0

0 576,251 56,125 632,376 9,213 3,489,006 0 347,870 1,191,620 91,965 31,081 1,650 0

0 586,540 50,480 637,020 9,210 3,517,770 0 351,450 1,191,690 92,240 31,250 1,080 0

0 86,540 10,480 97,020 9,210 117,770 0 (48,550) 91,690 17,240 (1,750) 1,080 0 350,580

17.31% 26.20% 17.97% 100.00% 3.46% -12.14% 8.34% 22.99% -5.30% 100.00%

24.68% 2.99% 27.67% 2.63% 33.59% 13.85% 26.15% 4.92% 0.50% 0.31%

$ 10,310,000 $ 10,574,697 $ 10,660,580 $

3.40%

100.00%

Notes: - Franchise Fees are paid in quarterly installments

Cable fees average $50k to $51k per quarter. Phone fees average $36k to $38k per quarter.

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Revenue Status Report - General Fund As of March 31, 2013 (Unaudited - Internal Use Only)

Taxes: Property Taxes

1. The 2012 property tax gross digest decreased to just under $548.2M (down $-31.8M from $580.1M in the prior year). 2. Maintenance and operations (M&O) exemptions decreased to $36.5M (down $-0.5M from $37M in the prior year). 3. Changes in the gross digest and M&O exemptions reduced the net M&O digest to $511.8M (down $-31.3M from $543.1M in the prior year). In Summary The net levy decreased to $4600290 (down $89700 from $4689990 in the prior year).

Homeowners Tax Relief Grant (HTRG)

Fiscal year 2009 was the last year for the Homeowners Tax Relief Grant program.

Sales Tax Distribution

As of March 31, 2013 the revenue forecast model projects Local Option Sales Tax (LOST) revenues at $3.52 million (up $118 thousand dollars or 3.5 percent of Budget). Below is a chart of sales tax distributions for the City of Griffin, Spalding County and Griffin Board of Education. The chart shows distributions for the month, total distributions for the last twelve consecutive months, and year to date for the current fiscal year. Data comes from the Georgia Department of Revenue.

Sales Tax Distribution

Sales Tax Distribution As of March 31, 2013

Jurisdiction
CITY OF GRIFFIN (LOST) SPALDING COUNTY-GRIFFIN BD OF EDUCATION (ELOST) SPALDING COUNTY BOARD OF COMMISSIONERS (LOST) SPALDING COUNTY BOARD OF COMMISSIONERS (SPLOST)

Tax Type
LOST ELOST LOST SPLOST $ $ $ $

Amount of Distribution Last For the Twelve Current Month Months Fiscal Year
320,956 $ 793,606 $ 471,733 $ 792,625 $ 3,486,678 $ 8,672,327 $ 5,185,622 $ 8,669,895 $ 2,597,219 6,448,707 3,851,433 6,445,595

Not everything that is faced can be changed. But nothing can be changed until it is faced

--James Baldwin, American novelist, essayist, playwright and poet

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Revenue Status Report - General Fund As of March 31, 2013 (Unaudited - Internal Use Only)

General Fund Property Taxes(1) 166

Property Tax Revenue (percentage change over prior years) Penalty and Interest on Delinquent Taxes (percentage change over prior years) $ 2009 4,682,938 $

178
2010 4,798,935 $ 2.48% 43,489 $ 50.21%

190
2011 4,662,904 $ -2.83% 29,000 $ -33.32%

202
2012 4,699,665 $ 0.79% 56,200 $ 93.79%

214
FY 2013 (Projected) 4,278,320 -8.97% 31,250 -44.40%

28,953 $

(1) Property taxes as presented in the Comprehensive Annual Financial Report Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds. Includes Real Property Tax, Public Utility Tax, Timber Tax, Real Property Tax - Prior Year, Motor Vehicle Tax, Railroad Equipment Tax, Intangible Tax, Heavy Equipment Tax, Property-Not-on-Digest, Real estate Transfer Tax, Homeowner's Tax Relief Grant (HTRG).

Tax Digest and 5 Year History

Real & Personal Motor Vehicle Mobile Homes Public Utility Timber Heavy Duty Equipment Gross Digest (dollar change over prior years) (percentage change over prior years) Less: Maintenance and Operations (M&O) Exemptions: (dollar change over prior years) (percentage change over prior years) NET: M&O Digest (dollar change over prior years) (percentage change over prior years) Millage (rate per thousand dollars) Net Levy (dollar change over prior years) (percentage change over prior years) 2008 2009 2010 2011 2012 $595,986,256 $570,215,369 $564,247,211 $545,778,551 $515,739,790 35,403,020 36,624,500 31,458,590 34,277,550 32,485,150

14,575 28,760 631,432,611

45,000 6,017 606,890,886 (24,541,725) -3.89%

5,220 595,711,021 (11,179,865) -1.84% 580,056,101 (15,654,920) -2.63% 548,224,940 (31,831,161) -5.49%

50,826,550

40,876,237 (9,950,313) -19.58% 566,014,649 (14,591,412) -2.51% 8.636 $4,888,100 (127,175) -2.54%

34,913,558 (5,962,679) -14.59% 560,797,463 (5,217,186) -0.92% 8.636 $4,843,050 (45,050) -0.92%

36,982,207 2,068,649 5.93% 543,073,894 (17,723,569) -3.16% 8.636 $4,689,990 (153,060) -3.16%

36,456,368 (525,839) -1.42% 511,768,572 (31,305,322) -5.76% 8.989 $4,600,288 (89,702) -1.91%

580,606,061

8.638 $5,015,275

Page 14 of 21

Revenue Status Report - General Fund As of March 31, 2013 (Unaudited - Internal Use Only)

General Fund Licenses and Permits

Rolling Twelve Month Actual

Budget Total Licenses and Permits Revenues By Category Licenses Beer License Wine License Liquor License Sub-total Licenses Permits House Moving Permits Burn Permits Zoning & Land Use Permits Sign Permits Catering Permits Building Permits Plumbing Permits Electrical Permits Gas Permits Mechanical Permits Sub-total Licenses and Permits Insurance Regulatory Fees Interest on Business Licenses Sub-total Licenses and Permits Total Licenses and Permits Revenues $ $ 272,200 $

Projection 336,610 $

Projected Over (Under) Budget 64,410

% Weighted % Variance on Category 23.66% 100.00%

348,270 $

40,000 40,000 110,000 190,000 0 0 5,000 15,000 400 44,000 5,000 8,500 300 4,000 82,200 0 0 0 272,200 $

43,160 41,600 110,300 195,060 0 0 4,210 16,700 400 70,610 9,020 17,070 2,380 10,210 130,600 22,110 500 22,610 348,270 $

43,100 41,640 110,310 195,050 0 0 3,860 14,690 420 62,570 8,800 16,440 2,570 10,130 119,480 21,560 520 22,080 336,610 $

3,100 1,640 310 5,050 0 0 (1,140) (310) 20 18,570 3,800 7,940 2,270 6,130 37,280 21,560 520 22,080 64,410

7.75% 4.10% 0.28% 2.66%

4.81% 2.55% 0.48% 7.84%

-22.80% -2.07% 5.00% 42.20% 76.00% 93.41% 756.67% 153.25% 45.35% 100.00% 100.00% 100.00% 23.66%

1.77% 0.48% 0.03% 28.83% 5.90% 12.33% 3.52% 9.52% 57.88% 33.47% 0.81% 34.28% 100.00%

General Fund Licenses and Permits

2009 Licenses and Permits Revenue (percentage change over prior years) Licenses (percentage change over prior years) Permits (percentage change over prior years) $ 300,540 $ 2010 284,588 $ -5.31% 185,438 $ -10.96% 99,150 $ 7.46% 2011 285,302 $ 0.25% 192,000 $ 3.54% 93,302 $ -5.90% 2012 319,097 $ 11.85% 196,800 $ 2.50% 122,297 $ 31.08% FY 2013 (Projected) 314,530 -1.43% 195,050 -0.89% 119,480 -2.30%

208,271 $

92,269 $

$319,097
$300,540 $284,588 $285,302 $314,530

2009

2010

2011
Licenses and Permits Revenue

2012

FY 2013 (Projected)

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Revenue Status Report - General Fund As of March 31, 2013 (Unaudited - Internal Use Only)

General Fund Intergovernmental Revenues

Rolling Twelve Month Actual

Budget Total Intergovernmental Revenues By Category DNR Funding Federal DEA Overtime Reimbursement City of Atlanta HIDTA GMA Mutual Aid Reimbursements School Resource Officers Prism Training Revenue Spalding County Board of Education Reimbursement Spalding County Grants LCI Grant ARC LLEBG - Vest Grant Byrne Grant GMA Safety Grant FEMA Grants Sub-total Grants Total Intergovernmental Revenues $ $ 198,500 $

Projection 295,820 $

Projected Over (Under) Budget 97,320

% Weighted % Variance on Category 49.03% 100.00%

278,370 $

0 29,000 7,000 0 76,300 10,000 0 53,200

85,110 49,440 0 0 87,230 11,870 0 0

85,110 38,530 7,000 0 76,300 12,680 0 53,200

85,110 9,530 0 0 0 2,680 0 0 0 0 0 0 0 0 0 0 97,320

100.00% 32.86% 0.00% 0.00% 26.80% 0.00%

87.45% 9.79%

2.75%

0 0 23,000 0 0 23,000 198,500 $

0 0 19,440 0 25,280 44,720 278,370 $

0 0 23,000 0 0 23,000 295,820 $

0.00%

0.00% 49.03% 100.00%

General Fund Intergovernmental

2009 Total Intergovernmental Revenue (percentage change over prior years) Intergovernmental Reimbursements (percentage change over prior years) Grants (percentage change over prior years) $ 406,382 $ 2010 678,255 $ 66.90% 394,755 $ 2.95% 283,500 $ 1135.13% 2011 275,160 $ -59.43% 207,160 $ -47.52% 68,000 $ -76.01% 2012 219,917 $ -20.08% 175,217 $ -15.42% 44,700 $ -34.26% FY 2013 (Projected) 295,820 34.51% 272,820 55.70% 23,000 -48.55%

383,429 $

22,953 $

Total Intergovernmental Revenue

$678,255 $406,382 $275,160 2009 2010 2011 $219,917 2012 $295,820

FY 2013 (Projected)

Page 16 of 21

Revenue Status Report - General Fund As of March 31, 2013 (Unaudited - Internal Use Only)

General Fund Charges for Services

Rolling Twelve Month Actual

Budget Total Charges for Services Revenues By Category Indirect Cost Allocations Returned Check Fees Election Qualifying Fees Business Occupation Tax Administration Fee Business List Reports Data Processing Fees Credit Card Fees Fire Inspections Cemetery Fees Pool Service Fees Sale of Recycled Materials Pavilion Rental Plan Review Fees Demolition Recovery Fees Customer Service Fee Zoning Application Fees Total Charges for Services Revenues $ $ 5,122,753 $

Projection 5,191,730 $

Projected Over (Under) Budget 68,977

% Weighted % Variance on Category 1.35% 100.00%

5,041,530 $

4,960,303 0 0 0 0 0 0 0 140,000 5,050 0 12,000 5,000 0 0 400 5,122,753 $

4,801,170 120 0 23,550 100 13,540 3,910 210 157,810 5,770 0 8,130 25,240 1,500 0 480 5,041,530 $

4,960,310 560 0 23,480 40 15,470 3,640 240 152,250 5,380 0 8,620 17,730 3,550 0 460 5,191,730 $

7 560 0 23,480 40 15,470 3,640 240 12,250 330 0 (3,380) 12,730 3,550 0 60 68,977

0.00% 100.00%

0.01% 0.81%

100.00% 100.00% 100.00% 100.00% 100.00% 8.75% 6.53% -28.17% 254.60% 100.00% 15.00% 1.35%

34.04% 0.06% 22.43% 5.28% 0.35% 17.76% 0.48% 4.90% 18.46% 5.15% 0.09% 100.00%

General Fund Charges for Services

2009 Charges for Services Revenue (percentage change over prior years) Indirect Cost Allocations (percentage change over prior years) Charges for Services (percentage change over prior years) $ 5,043,464 $ 2010 4,454,639 $ -11.68% 4,178,087 $ -11.92% 276,552 $ -7.86% 2011 4,913,673 $ 10.30% 4,673,000 $ 11.85% 240,673 $ -12.97% 2012 4,750,913 $ -3.31% 4,437,900 $ -5.03% 313,013 30.06% FY 2013 (Projected) 5,191,730 9.28% 5,374,970 21.12% (183,240) -158.54%

4,743,332 $

300,132 $

$5,191,730 $5,043,464

$4,913,673
$4,750,913 $4,454,639

2009

2010

2011

2012

FY 2013 (Projected)

Page 17 of 21

Revenue Status Report - General Fund As of March 31, 2013 (Unaudited - Internal Use Only)

General Fund Fines and Forfeitures

Rolling Twelve Month Actual

Budget Total Fines and Forfeitures Revenue By Category Police Revenue Traffic Fines Camera Traffic Light Fines Code Violations Seat Belt Fines Ordinance Fines Total Fines and Forfeitures Revenue* $ $ 1,000,000 $

Projection 881,840 $

Projected Over (Under) Budget (118,160)

% Weighted % Variance on Category -11.82% 100.00%

900,340 $

15,000 650,000 325,000 0 0 10,000 1,000,000 $

15,380 596,130 288,390 0 0 440 900,340 $

15,950 568,900 293,660 0 0 3,330 881,840 $

950 (81,100) (31,340) 0 0 (6,670) (118,160)

6.33% -12.48% -9.64%

0.80% 68.64% 26.52%

-66.70% -11.82%

5.64% 100.00%

*** Seat Belt Fines --- beginning July 1, 2011 seat belt fines are combined with traffic fines.

$758,948 $728,000

$644,537

$636,100 $568,900

$403,596

$434,595

$318,276

$310,300 $293,660

30-Jun-09

30-Jun-10
Traffic Fines

30-Jun-11

30-Jun-12

30-Jun-13

Camera Traffic Light Fines

Page 18 of 21

Revenue Status Report - General Fund As of March 31, 2013 (Unaudited - Internal Use Only)

General Fund Other Revenues

Rolling Twelve Month Actual

Budget Other Revenues Investment Income Rents, Royalties and Other Rents Insurance Claims Miscellaneous Revenue Contributions and Donations Sub-total Rents, Royalties and Other Proceeds and Other Financing Sources Proceeds of GMA Leases Proceeds of Sales of Fixed Assets Sub-total Proceeds and Other Financing Sources Transfers: Transfer from Confiscated Assets Fund Transfer from Hotel Motel Tax Fund Transfer from Police Tech Fund Transfer from Court Tech Fund Transfer from Cemetery Fund Transfer from Water/Wastewater Fund Transfer from Electric Fund Transfer from Welcome Center Fund Transfer from Solid Waste Fund Transfer from Airport Fund Transfer from Storm Water Fund Transfer from Golf Course Transfer from Motor Pool Transfer from GBTA

Projection

Projected Over (Under) Budget

% Weighted % Variance on Category

8,000 $

12,940 $

10,500 $

2,500

31.25%

6.26%

198,541 16,500 0 0 215,041

213,120 16,240 5,930 1,370 236,660

211,520 16,680 5,910 370 234,480

12,979 180 5,910 370 19,439

6.54% 1.09% 100.00% 100.00% 9.04%

32.51% 0.45% 14.80% 0.93% 48.69%

0 0 0

642,740 17,750 660,490

0 17,250 17,250

0 17,250 17,250

100.00% 100.00%

43.21% 43.21%

13,500 24,419 50,000 25,000

0 20,790 0 0 94,170 4,065,250 6,412,860 (4,380)

0 23,440 50,000 25,000

(13,500) (979) 0 0

-100.00% -4.01% 0.00% 0.00%

33.82% 2.45%

1,800,000 7,756,617

1,800,000 7,756,617 8,250 45,100

0 0 8,250 0

0.00% 0.00% 100.00% 0.00%

0.00% 0.00% 20.67% 0.00%

45,100

(21,480)

6,960

6,960

100.00%

17.43%

Sub-total Transfers from Other Funds Total Other Revenues $

9,714,636

10,567,210

9,715,367 9,977,597 $

731 39,920

0.01% 0.40%

1.83% 100.00%

9,937,677 $ 11,477,300 $

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Revenue Status Report - General Fund As of March 31, 2013 (Unaudited - Internal Use Only)

General Fund Other Revenues

2009 Interest Income (percentage change over prior years) Rental Income (percentage change over prior years) Donations and Contributions (percentage change over prior years) Other Revenues (percentage change over prior years) $ 15,966 $ 2010 6,847 $ -57.12% 195,969 $ 2.32% 0 $ -100.00% 28,680 $ 92.69% 2011 8,829 $ 28.95% 196,689 $ 0.37% 454 0.00% 4,957 $ -82.72% 2012 8,829 $ 0.00% 193,874 $ -1.43% 0 $ -100.00% 16,871 $ 240.35% FY 2013 (Projected) 10,500 18.93% 211,520 9.10% 370 0.00% 39,840 136.14%

191,521 $

883

14,884 $

$20,000 $15,966 $15,000

Interest Income

$10,500 $10,000 $6,847 $5,000 2009 2010 2011

Interest Income

$8,829

$8,829

2012

FY 2013 (Projected)

All truly wise thoughts have been thought already thousands of times; but to make them truly ours, we must think them over again honestly, till they take root in our personal experience. "

--Johann Wolfgang von Goethe, German writer, artist and politician

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Revenue Status Report - General Fund As of March 31, 2013 (Unaudited - Internal Use Only)

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City of Griffin Department of Administrative Services Finance and Accounting Division 100 South Hill Street Griffin, Georgia 30223 www.cityofgriffin.com

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