Exhibit A 2024 White Springs Management Discussion.PDF

TOWN OF WHITE SPRINGS, FLORIDA

Management’s Discussion and Analysis

This discussion and analysis is intended to be an easily readable analysis of the Town of White Springs, Florida’s (the Town) financial activities based on currently known facts, decisions or conditions. This analysis focuses on current year activities and should be read in conjunction with the financial statements that follow.

Report Layout

The Town implemented Government Accounting Standards Board (GASB) Statement 34, Basic Financial Statements - and Management’s Discussion and Analysis - for State and Local Governments. This statement requires governmental entities to report finances in accordance with specific guidelines. Among these guidelines are the components of this section dealing with management’s discussion and analysis. Besides this Management’s Discussion and Analysis (MD&A), the report consists of government-wide statements, fund financial statements, notes to the financial statements, and supplementary information. The first several statements are highly condensed and present a government-wide view of the Town’s finances. Within this view, all Town operations are categorized and reported as either governmental or business-type activities.

Governmental activities include basic services such as public works, parks and recreation, human services, community development, public safety, and general governmental administration. The Town’s water, sewer, and solid waste management services are reported as business-type activities. These government-wide statements are designed to be more corporate-like in that all activities are consolidated into a total for the Town.

Basic Financial Statements

The Statement of Net Position focuses on resources available for future operations. In simple terms, this statement presents a snap-shot view of the assets the Town owns, the liabilities it owes and the net difference. The net difference is further separated into amounts restricted for specific purposes and unrestricted amounts. Governmental activities reflect capital assets including infrastructure and long-term liabilities. Business-type activities have report capital assets and long-term liabilities. Also, governmental activities are reported on the accrual basis of accounting.

The Statement of Activities focuses on gross and net costs of the Town’s programs and the extent to which such programs rely upon general tax and other revenues. This statement summarizes and simplifies the user’s analysis to determine the extent to which programs are self-supporting and/or subsidized by general revenues.

Fund financial statements focus separately on governmental and proprietary funds.

Governmental fund statements follow the more traditional presentation of financial statements. The Town has one major governmental fund which is the general fund.

Statements for the Town’s proprietary fund follow the governmental fund statements and include net position, revenue, expenses and changes in net position, and cash flows.

The notes to the financial statements provide additional disclosures required by governmental accounting standards and provide information to assist the reader in understanding the Town’s financial condition.

The MD&A is intended to serve as an introduction to the Town’s basic financial statements and to explain the significant changes in the financial position and differences in operations between the current and prior years.

Town as a Whole

Government-wide Financial Statements

A condensed version of the Statement of Net Position follows:

Net Position at September 30, 2024 and 2023

Governmental Business-type Activities Activities 2024 2023

Cash and investments 925,273$ 478,222$ 1,403,495$ 1,239,854$ Other assets 1,000 55,714 56,714 81,378 Internal balances 167,400 (167,400) - - Capital assets 3,146,293 8,308,573 11,454,866 11,814,818 Total assets 4,239,966 8,675,109 12,915,075 13,136,050

Current liabilities 50,722 171,519 222,241 219,406 Long-term liabilities 48,329 1,356,113 1,404,441 1,442,466 Total liabilities 99,051 1,527,632 1,626,683 1,661,873

Net position Invested in capital assets, net of related debt 3,090,775 6,889,974 9,980,749 10,297,695 Restricted 280,750 189,619 470,369 258,326 Unrestricted 769,390 67,884 837,274 918,156 Total net position 4,140,915$ 7,147,477$ 11,288,392$ 11,474,177$

Total Government

88% of the Town’s net position reflect its investment in capital assets (land, buildings, infrastructure, and equipment), less any related outstanding debt used to acquire those assets.

The Town uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the Town’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.

Restricted assets of $470,369 consist of $189,619 for debt service, $275,750 transportation expenses and, $5,000 in donations restricted for fire department operations. The remaining balance of unrestricted net position $837,274 may be used to meet the Town’s ongoing obligations to citizens and creditors.

A condensed version of the Statement of Activities follows:

Change in Net Position For the Fiscal Years ended September 30, 2024 and 2023

Governmental Business-type Total Government Activities Activities 2024 2023

Revenues Program revenues Charges for services 121,333$ 494,265$ 615,598$ 443,666$ Grants and contributions - 90,000 90,000 428,654 General revenues Taxes 556,452 - 556,452 492,736 State shared revenues 83,827 - 83,827 85,686 Other general revenues 152,410 27,880 180,290 145,085 Total revenues 914,022 612,145 1,526,167 1,595,827

Expenses General government 427,499 - 427,499 261,234 Public safety 216,139 - 216,139 333,230 Transportation 212,786 - 212,786 177,190 Culture and recreation 39,759 - 39,759 32,168 Economic environment 40,461 - 40,461 43,002 Interest on long-term debt 2,746 - 2,746 - Utility funds - 772,562 772,562 761,356 Total expenses 939,390 772,562 1,711,952 1,608,180

Change in net position (25,368) (160,417) (185,785) (12,353) Beginning net position 4,166,283 7,307,894 11,474,177 11,486,530 Ending net position 4,140,915$ 7,147,477$ 11,288,392$ 11,474,177$

Governmental activities:

Governmental activities reported a decrease in net position of $25,368 for the fiscal year. This loss resulted primarily from non-cash depreciation expenses totaling $113,299. Compared to the prior fiscal year, when excluding the impact of the ARPA grant, governmental activities experienced a loss of $112,719, this year’s results reflect an improvement in operational performance. The stronger outcome was driven by increases in general revenues and charges for services, which outpaced the growth in expenses. Taxes provided 61% of the revenues for Governmental Activities, grant and contributions provided 17%, while state shared revenues provided 9%. Most of the Governmental Activities resources are spent for, General Government (46%), Public Safety (23%), and Transportation (23%).

Business-type activities:

Business-type activities reported a decrease in net position of $160,417. Like governmental activities, this loss was largely attributable to non-cash depreciation expenses, which totaled $273,530. Despite the reported decrease, this represents a substantial improvement over the prior year’s loss of $283,288. The improved performance is primarily the result of increased utility billings, which contributed to higher revenues during the fiscal year.

Budgetary Highlights

In the General Fund budgeted revenue amounts were less than actual revenue amounts by $19,309, and actual expenditures were less than budgeted expenditures by $68,798.

Capital Assets and Debt Administration

Capital Assets

At September 30, 2024, the Town had $11.45 million invested in capital assets, including park and recreation facilities, buildings, roads, bridges and water and sewer facilities.

Capital Assets at September 30, 2024 and 2023

2024 2023 2024 2023 2024 2023 Land 189,839$ 189,839$ 3,570$ 3,570$ 193,409$ 193,409$ Buildings and improvements 3,827,038 3,827,038 11,786,477 11,786,477 15,613,515 15,613,515 Equipment 952,314 943,076 302,283 284,643 1,254,597 1,227,719 Subtotal 4,969,191 4,959,953 12,092,330 12,074,690 17,061,521 17,034,643 Accumulated depreciation (1,822,898) (1,709,599) (3,783,756) (3,510,226) (5,606,654) (5,219,825) Capital assets, net 3,146,293$ 3,250,354$ 8,308,574$ 8,564,464$ 11,454,867$ 11,814,818$

Governmental Activities

Business-type Activities Totals

Debt Outstanding

At year-end, the Town had $1,502,036 in debt outstanding versus $1,539,393 last year, a decrease of $37,357.

Debt Outstanding at September 30, 2024 and 2023

2024 2023 2024 2023 2024 2023 Compensated absences 16,380$ 13,647$ 11,539$ 8,623$ 27,919$ 22,270$ SRF loan - - 230,509 259,192 230,509 259,192 Notes Payable 55,518 76,329 - - 55,518 76,329 Water & Sewer bonds - - 477,000 496,000 477,000 496,000 FDEP note payable #1 - - 17,876 18,196 17,876 18,196 FDEP note payable #2 - - 693,214 667,406 693,214 667,406 Total 71,898$ 89,976$ 1,430,138$ 1,449,417$ 1,502,036$ 1,539,393$

Governmental Business-type Activities Activities Totals

More detailed information on the Town’s long-term liabilities is presented in the notes to the financial statements.

OTHER FINANCIAL INFORMATION

Economic Factors and Rates

The current unemployment rate for the Town was 6.10%, which is higher than the approximate Hamilton County rate of 4.70%.

The population of the Town in 2024 is estimated to be 760 by demographic services.

The Town’s ad valorem tax rate for fiscal year 2024 was 6.000 mills, which was the same compared to fiscal year 2023 rate of 6.000 mills.

Financial Contact

The Town’s financial statements are designed to present users (citizens, taxpayers, customers, investors, and creditors) with a general overview of the Town’s finances and to demonstrate the Town’s accountability. If you have questions about the report or need additional financial information, please contact the Town at P.O. Drawer D, White Springs, Florida 32096.