CITY OF HATTIESBURG, MISSISSIPPI
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
Year Ended September 30, 2023
CITY OF HATTIESBURG, MISSISSIPPI
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED SEPTEMBER 30, 2023
TABLE OF CONTENTS
SCHEDULE/
EXHIBIT NUMBER
PAGE
INTRODUCTORY SECTION (UNAUDITED)
Letter of Transmittal
1 - 4
List of Public Officials
5
FINANCIAL SECTION
Independent Auditor's Report
6 - 9
Management's Discussion and Analysis
10 - 20
Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Position
Exhibit A
21 - 23
Statement of Activities
Exhibit B
24 - 25
Fund Financial Statements:
Balance Sheet - Governmental Funds
Exhibit C
26 - 29
Reconciliation of the Governmental Funds Balance
Sheet to the Government-wide Statement of Net
Position
Exhibit C.1
30 - 31
Statement of Revenues, Expenditures, and Changes in
Fund Balances - Governmental Funds
Exhibit D
32 - 35
Reconciliation of the Statement of Revenues,
Expenditures, and Changes in Fund Balances of
Governmental Funds to the Statement of Activities
Exhibit D.1
36 - 37
Statement of Net Position - Proprietary Fund
Exhibit E
38 - 39
Statement of Revenues, Expenses, and Changes in Net
Position - Proprietary Fund
Exhibit F
40
Statement of Cash Flows - Proprietary Fund
Exhibit G
41 - 42
Statement of Fiduciary Net Position
Exhibit H
43
Statement of Changes in Fiduciary Net Position
Exhibit I
44
NOTES TO THE FINANCIAL STATEMENTS
45 - 96
REQUIRED SUPPLEMENTARY INFORMATION
Budgetary Comparison Schedule - General Fund
Schedule 1
97 - 104
Budgetary Comparison Schedule - COVID Fiscal Recovery
Fund
Schedule 2
105
Budgetary Comparison Schedule - Municipal Road and
Bridge Fund
Schedule 3
106
Schedule of the City’s Proportionate Share of the Net
Pension Liability - PERS
Schedule 4
107 - 108
CITY OF HATTIESBURG, MISSISSIPPI
AUDITED FINANCIAL STATEMENTS
AND SPECIAL REPORTS
YEAR ENDED SEPTEMBER 30, 2023
TABLE OF CONTENTS - PAGE TWO
SCHEDULE/
EXHIBIT NUMBER
PAGE
REQUIRED SUPPLEMENTARY INFORMATION (Cont.)
Schedule of City Contributions - Public Employees’
Retirement System - PERS
Schedule 5
109 - 110
Schedule of the City's Proportionate Share of the Net
Pension Liability - PFDR
Schedule 6
111 - 112
Schedule of City Contributions Mississippi Municipal
Retirement Systems - PFDR
Schedule 7
113 - 114
Schedule of Changes in the City’s Total OPEB Liability and
Related Ratios
Schedule 8
115
Notes to the Required Supplementary Information
116 - 121
SUPPLEMENTARY INFORMATION
Combining Balance Sheet - Nonmajor Governmental
Funds
Schedule 9
122 - 123
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances - Nonmajor Governmental
Funds
Schedule 10
124 - 125
Combining Balance Sheet - Nonmajor Special Revenue
Funds
Schedule 11
126 - 127
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances - Nonmajor Special
Revenue Funds
Schedule 12
128 - 129
Combining Balance Sheet - Nonmajor Debt Service Funds
Schedule 13
130 - 131
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances - Nonmajor Debt Service
Funds
Schedule 14
1
2
0
132 - 133
Combining Balance Sheet - Nonmajor Capital Project
Funds
Schedule 15
134
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances - Nonmajor Capital Project
Funds
Schedule 16
135
Statement of Departmental Expenditures - Budgetary
Basis - General Fund
Schedule 17
136 - 139
Combining Statement of Fiduciary Net Position - Custodial
Funds
Schedule 18
140
Combining Statement of Changes in Fiduciary Net Position
- Custodial Funds
Schedule 19
141
CITY OF HATTIESBURG, MISSISSIPPI
AUDITED FINANCIAL STATEMENTS
AND SPECIAL REPORTS
YEAR ENDED SEPTEMBER 30, 2023
TABLE OF CONTENTS - PAGE THREE
SCHEDULE/
EXHIBIT NUMBER
PAGE
SUPPLEMENTARY INFORMATION (Cont.)
Schedule of Surety Bonds for Municipal Officials
Schedule 20
142
Full Cost Accounting - Solid Waste Management Services
Schedule 21
143
Report on Revenues and Expenditures Additional 1%
Sales Tax for City Parks and Recreation Projects and
Improvements to USM Athletic Facilities - Modified
Accrual Basis
Schedule 22
144
Water and Sewer Budget Basis Balance Sheets
Schedule 23
145 - 146
Water and Sewer Budget Basis Statement of Revenues,
Expenses, and Changes in Net Position
Schedule 24
147 - 148
Water and Sewer Budget Basis Operation and
Maintenance Cost Centers
Schedule 25
149
Schedule of Expenditures of Federal Awards
Schedule 26
150 - 154
Notes to Schedule of Expenditures of Federal Awards
155
SPECIAL REPORTS
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
156 - 157
Independent Auditor’s Report on Compliance for Each
Major Federal Program and Report on Internal Control
Over Compliance In Accordance with the Uniform
Guidance
158 - 160
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Schedule 27
161 - 168
AUDITEE CORRECTIVE ACTION PLAN
169 - 171
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
172 - 174
INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE
WITH STATE LAWS AND REGULATIONS
175 - 177
CITY OF HATTIESBURG, MISSISSIPPI
AUDITED FINANCIAL STATEMENTS
AND SPECIAL REPORTS
YEAR ENDED SEPTEMBER 30, 2023
TABLE OF CONTENTS - PAGE FOUR
SCHEDULE/
EXHIBIT NUMBER
PAGE
STATISTICAL INFORMATION (UNAUDITED)
Financial Trends:
Net Position by Components
Table 1
178
Changes in Net Position
Table 2
179 - 180
Fund Balances - Governmental Funds
Table 3
181
Changes in Fund Balances - Governmental Funds
Table 4
182
Revenue Capacity:
Governmental Funds - Tax Revenues by Source
Table 5
183 - 184
Direct and Overlapping Property Tax Rates - Forrest and
Lamar Counties
Table 6
185
Top Ten Property Taxpayers - Property Taxes Assessed
in Fiscal Year 2022, Collected Fiscal Year 2023
Table 7
186
Debt Capacity:
Computation of Legal Debt Margin Using Most Current
Tax Rolls
Table 8
187
Ratio of Net General Obligation Bonded Debt to
Assessed Value and Net Bonded Debt Per Capita
Table 9
188
Water and Sewer Revenue Bond Coverage
Table 10
189
Demographic Information:
Demographic Statistics
Table 11
190
Operating Information:
City Employees by Function
Table 12
191 - 192
Construction, Bank Deposits, and Assessed Property
Values
Table 13
193
Capital Asset and Infrastructure Statistics by Function
Table 14
194
INTRODUCTORY SECTION (UNAUDITED)
June 25, 2024
To the Honorable Mayor, Members of the City Council, and
Citizens of the City of Hattiesburg
The Department of Administration is pleased to submit the Audited Financial Statements and Special Reports of
the City of Hattiesburg, Mississippi, prepared in accordance with accounting principles generally accepted in the
United States of America for the fiscal year ended September 30, 2023. These accompanying financial
statements are prepared and presented in conformity with GASB Statement No 34 - Basic Financial Statements
and Management’s Discussion and Analysis for State and Local Governments. The format, which includes
Government-wide and Major Fund presentations, provides citizens, investors and creditors, grantor agencies, and
other interested parties with reliable financial information about the City. Management assumes full responsibility
for the completeness and reliability of the information contained in this report, and we believe the report is
accurate in all material respects.
The Audited Financial Statements and Special Reports includes the following: this transmittal letter, the financial
section consisting of the basic financial statements (government-wide and fund statements), Management’s
Discussion and Analysis, notes to the financial statements, combining and individual fund financial statements and
schedules and the independent auditors’ report on the financial statement schedules, and a statistical section
consisting of several tables of unaudited data describing the financial history of the City, as well as other
miscellaneous statistics, presented on a multi-year basis.
Profile of Government
The City of Hattiesburg has a land area of 55.4 square miles and is located strategically in the southeast section of
Mississippi. It has historically been designated as the “Hub City,” since its location is within a 100-mile radius of
Jackson, Mississippi, New Orleans, Louisiana, Mobile, Alabama, and the Mississippi Gulf Coast. Because of its
location, it is a regional center of trade, medical services, educational and industrial activity. The City operates
under the Mayor/Council form of government. The policy-making and legislative authority, as well as budgetary
responsibilities, are vested with the five-member City Council, each of whom is elected from one of the five wards
into which the City is divided. The Mayor is responsible for the day-to-day operations of City government, and
much of his work is accomplished through the delegation of duties to his department directors and chiefs, who are
appointed by the Mayor and approved by the City Council. All elected officials serve four-year terms.
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Services provided include police and fire protection, water and sewer services, construction and maintenance of
streets and infrastructure, sanitation, parks and recreation, planning and zoning, and general administrative
functions.
Current Economic Conditions
Hattiesburg ended the fiscal year with revenue increases in both sales tax and property taxes. Property tax
revenue increased 2.19% over the prior year. Combined sales tax revenue consisting of general sales taxes,
special sales taxes and internet sales taxes saw an increase of 3.43% from FY 2022. Revenue from the internet
sales tax is used for infrastructure improvements, and the amount is expected to increase as the tax is more
widely enforced with online vendors. For FY 2023, revenue from internet sales taxes was up 35.53% from FY
2022.
The General Fund’s ending fund balance increased 2.37% from FY 2022. The increase was due to increases in
revenues, such as the aforementioned increase in sales taxes, and decreases in expenditures.
2023 was another year of uniqueness, with the continuing yet waning impact of the COVID-19 Pandemic,
inflationary constraints and supply chain issues. Local businesses were challenged to continue to alter their
methods of providing goods and services in order to deal with rising costs and issues with obtaining goods.
Elected officials struggled with these issues as well, with rising prices and delays in obtaining inventory led to
difficulties in being able to provide services to their constituents.
The resourcefulness of local businesses, along with support from the community, enabled Hattiesburg to weather
the impacts of these issues. Hattiesburg has, for many years, pointed out the many benefits of its diverse
economy, and once again, that diversity provided the perfect mix to keep the City functioning well. The real estate
market continued to experience the benefits of a strong local economy, and that, in turn, led to increasing prices
on home sales due to demand amid a declining supply of homes on the market.
Future Economic Outlook
Many projects were begun in Fiscal Year 2023 including the Hall Avenue West Overpass, the Midtown Green
Park, and Jaycee Park. Infrastructure improvements in the Midtown District and the Hall Avenue East Overpass
continued as well as the project for re-routing traffic around the Forrest General Hospital campus moved forward.
Other major transportation improvements, such as the Hardy Street Roundabout and Lamar Blvd, that began in
the prior fiscal year, have been completed. There were several projects completed in 2023 which include Lincoln
Road and the N 28
th
Bridge. The second phase of the $45 Million bond issuance was completed in August 2020,
and this provided the funds necessary for the Hall Avenue East Overpass construction near the Public Safety
Complex in this fiscal year, as well as the Hall Avenue West Overpass near Broadway Drive which began in FY
2023. This Hall Avenue corridor connecting with Broadway Drive and Gulfport street utilizing the New overpasses
will create a new main thoroughfare through the city. These infrastructures projects will greatly improve traffic flow
and connectivity with the eastern and western sections of the City, improving commuting and emergency response
times.
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Financial and Budgetary Information
The City maintains budgetary controls to ensure compliance with legal provisions specified by state statute.
Activities of the City are included in budget appropriations approved by the City Council. The legal level of
budgetary control is established by major expenditure classification and approved by the Council. Adjustments
within a classification may be approved by the Department Director.
The Mayor and Council established the goal and desire to reduce and eventually eliminate the structural spending
deficit in the General Fund. For several years, the City’s expenditure budget has exceeded the revenue budget.
This can be detrimental to building a strong fund balance. Based upon today’s economy, it is recommended that
the City seek to have a $7 Million to $8 Million ending cash balance. Mayor Barker was able to present a budget
for FY 2023 to the council with projected new revenue equaling new expenditures, thereby accomplishing the
objective of eliminating the structural spending deficit.
Water and sewer projects continue to be a priority. Evaluation of the water and sewer infrastructure has been
ongoing and is revealing the areas of the City needing repair or replacement. Many areas in older sections of the
City have already been repaired, but it will take several years to complete the task.
Enterprise Funds
Hattiesburg’s enterprise operation is the Combined Water and Sewer Fund. All revenues and costs associated
with delivering potable water to the City’s residential and commercial customers and treatment of residential and
industrial waste are reported in this group of funds. Financial statements for this operation are contained in this
report.
Debt Administration
The City maintains the Municipal Bond and Interest Fund to retire debt associated with general obligation bonds.
The funding source comes from levy and collection of ad valorem property taxes. Mississippi law limits the
amount of general obligation debt a municipality may issue to 15% of total assessed value. As of September 30,
2023, the City’s remaining margin for further debt issuance stands at $23,003,144. The City was able to correct
many findings in previous audits and, as a result was able to secure the Aa3 bond rating with the issuance of
$29,850,000 in general obligation bonds in December 2018. That rating was maintained with issuance of
$15,150,000 general obligation bonds in August 2020. These two bond issues complete the $45 Million bond
issuance planned for the Public Safety Complex and overpass construction in the eastern section of the City.
Risk Management
The City is self-insured for group health insurance, and is a member of the Municipal Workers Compensation
Group and the Municipal Liability Plan, a self-insured plan for member municipalities across the State of
Mississippi. The City has a Risk Manager who monitors safety procedures with departments and reviews and
reports all accidents and claims to the self-insured group administrators.
* * * * * * * * * * * * * * * * *
PUBLIC OFFICIALS
* * * * * * * * * * * * * * * * *
TOBY BARKER
MAYOR
COUNCIL MEMBERS
JEFFREY GEORGE – WARD 1
DEBORAH DENARD DELGADO – WARD 2
CARTER CARROLL – WARD 3
DAVE WARE – WARD 4
NICHOLAS BROWN – WARD 5
* * * * * * * * * * * * * * * * *
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FINANCIAL SECTION
INDEPENDENT AUDITOR'S REPORT
To the Honorable Mayor and
Members of the City Council
City of Hattiesburg, Mississippi
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the governmental activities, the business-type activities, the discretely
presented component unit, each major fund, and the aggregate remaining fund information of the City of Hattiesburg,
Mississippi, as of and for the year ended September 30, 2023, and the related notes to the financial statements, which
collectively comprise the City of Hattiesburg, Mississippi’s basic financial statements as listed in the table of contents.
In our opinion, the accompanying financial statements present fairly, in all material respects, the respective financial
position of the governmental activities, the business-type activities, the discretely presented component unit, each major
fund, and the aggregate remaining fund information of the City of Hattiesburg, Mississippi, as of September 30, 2023, and the
respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with
accounting principles generally accepted in the United States of America.
Emphasis of Matter - Deficit Fund Balances
As described in Note 15 to the financial statements, deficit fund balances were reported in certain governmental
funds as a result of modified accrual recognition of expenditures for which reimbursements were not available resources.
Our opinion is not modified with respect to this matter.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America
(GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s
Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the
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To the Honorable Mayor and
Members of the City Council
City of Hattiesburg, Mississippi
City of Hattiesburg, Mississippi and to meet our other ethical responsibilities, in accordance with the relevant ethical
requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements
The City of Hattiesburg, Mississippi’s management is responsible for the preparation and fair presentation of the
financial statements in accordance with accounting principles generally accepted in the United States of America, and for 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.
In preparing the financial statements, management is required to evaluate whether there are conditions or events,
considered in the aggregate, that raise substantial doubt about the City of Hattiesburg, Mississippi’s ability to continue as a
going concern for twelve months beyond the financial statement date, including any currently known information that may
raise substantial doubt shortly thereafter.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable
assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit
conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a
material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there
is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user
based on the financial statements.
In performing an audit in accordance with GAAS, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or
error, and design and perform audit procedures responsive to those risks. Such procedures include
examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audit 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 City of Hattiesburg, Mississippi’s internal control. Accordingly, no such opinion is expressed.
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To the Honorable Mayor and
Members of the City Council
City of Hattiesburg, Mississippi
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluate the overall presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise
substantial doubt about the City of Hattiesburg, Mississippi’s ability to continue as a going concern for a
reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during
the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that management’s discussion and
analysis and Schedules 1 through 8, including related notes, be presented to supplement the basic financial statements.
Such information is the responsibility of management and, 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.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise
the City of Hattiesburg, Mississippi’s basic financial statements. Schedules 9 through 25 and Schedule 26, as required by
Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards (supplementary information), are presented for purposes of additional analysis and are not
a required part of the basic financial statements.
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To the Honorable Mayor and
Members of the City Council
City of Hattiesburg, Mississippi
The accompanying supplementary information is the responsibility of management and was derived from and relates
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
supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information. The other information comprises the Letter of Transmittal, List
of Public Officials and Tables 1 through 14 (other information) but does not include the financial statements and our auditor's
report thereon. Our opinions on the financial statements do not cover the other information, and we do not express an
opinion or any form of assurance thereon. In connection with our audit of the financial statements, our responsibility is to read
the other information and consider whether a material inconsistency exists between the other information and the financial
statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we
conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our
report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated June 25, 2024 on our
consideration of the City of Hattiesburg, Mississippi'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 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 Hattiesburg, Mississippi’s internal control over financial reporting and compliance.
Hattiesburg, Mississippi
June 25, 2024
MANAGEMENT’S DISCUSSION AND ANALYSIS
(Unaudited)
Year Ended September 30, 2023
The Discussion and Analysis of the City of Hattiesburg’s financial performance provides an overview of
the City’s financial activities for the fiscal year ended September 30, 2023. The intent of this discussion
and analysis is to look at the City’s financial performance as a whole. Readers should also review the
City’s financial statements in conjunction with the transmittal letter in order to enhance their
understanding of the City’s financial performance.
FINANCIAL HIGHLIGHTS
Key financial highlights for 2023 were as follows:
• Total net position for 2023 increased $26,256,537, or 15.81% from 2022 including a prior period
adjustment of ($430,993).
• Total assets of governmental activities increased $32,904,909 or 11.50% from 2022.
• Total liabilities of governmental activities increased $16,416,315 or 9.30% from 2022.
• In total, equity in cash and cash equivalents of governmental activities decreased $1,830,659, or
3.06% from 2022.
• Total book value of capital assets for governmental activities increased $29,923,126, or 15.96%
from fiscal year 2022.
Using this Annual Financial Report:
This annual report consists of a series of financial statements and notes to those statements that are
organized so that the reader can understand the City of Hattiesburg as a financial whole or as an entire
operating entity. The statements then proceed to provide an increasingly detailed look at specific
financial conditions.
The Statement of Net Position and Statement of Activities provide information about the activities of the
whole City, presenting both an aggregate view of the City’s finances and a longer-term view of those
assets. Major fund financial statements provide the next level of detail. For governmental funds, these
statements tell how services were financed in the short-term as well as what dollars remain for future
spending. The fund financial statements also look at the City’s most significant funds with all other non-
major funds presented in total in one column.
Reporting the City of Hattiesburg as a Whole:
Statement of Net Position and the Statement of Activities
While this document contains information about the funds used by the City to provide services to our
citizens, the view of the City as a whole looks at all financial transactions and asks the question, “How did
we do financially during 2023?” The Statement of Net Position and the Statement of Activities answer
this question.
These statements include all assets and liabilities using the accrual basis of accounting similar to the
accounting used by private sector companies. This basis of accounting considers all of the current year’s
revenues and expenses regardless of when the cash is received or paid. These two statements report
the City’s net position and the change in net position. This change in net position is important because it
tells the reader whether, for the City as a whole, the financial position of the City has improved or
diminished. However, in evaluating the overall position of the City, non-financial information such as
changes in the City’s tax base and the condition of the City’s capital assets will also need to be evaluated.
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In the Statement of Net Position and the Statement of Activities, all of the City’s departmental activities
are reported as Governmental Activities, which include all of the City’s services such as police, fire,
administration, public services, and all other departments. The Business-Type Activities of the City of
Hattiesburg consist of the City’s Combined Water & Sewer System.
The government-wide financial statements include not only the City of Hattiesburg itself (the primary
government), but also a legally separate component unit, the Hattiesburg Convention Commission.
Financial information presented for the component unit is reported separately from the financial
information presented for the primary government itself.
Changes to Net Revenue
Net Revenues exceeded expenses by $26,687,530 in 2023. For 2022, Net Revenues exceeded
expenses by $19,340,504. This amounts to an increase in Net Revenue in 2023 of $7,347,026 from
2022. There are a number of factors affecting this decrease in Net Revenues:
• Overall expenses increased $7,589,165 from FY 2022 for governmental activities attributed to
increase in inflation for supplies and increase of salaries of employees.
• General revenues and transfers increased $4,399,383 primarily due to an upturn of sales and
property tax collections.
• Program revenues for government activities increased by $9,392,829 from 2022 primarily due to
grant funding.
Revenues
The major components of primary government revenues are property tax and sales tax. The City’s
Combined Water & Sewer System comprises revenue for business-type activities.
Property Tax - One of the major sources of revenue for the City, at 19.75% of total revenues, property tax
revenue, increased $564,564 from FY 2022. Adjustments to property values based on home sales and
new construction contributed to the increase in total property valuations.
Sales Tax - An equally significant component of City revenue is sales tax, at 25.86% of total revenue.
Sales tax revenue increased $131,784 from FY 2022. This represents a 3.43% increase, which is
slightly higher than the average due to increase local sales and inflationary factors.
The Mississippi Legislature passed a bill in 2019 that authorized the City to levy an additional tax on
hotels, motels, and restaurants to be used to promote tourism and parks and recreation, and additionally
to distribute a portion to the University of Southern Mississippi to be used for improvements to their
athletic facilities. This tax was effective only if 60.00% of the qualified electors voted in favor of the tax.
The referendum passed and collection of the additional 1.00% tax began on July 1, 2021, effective for a
three-year period, after which it must be renewed by new legislation and referendum. The amount of
$3,474,217 was received in FY 2023, half of which was remitted to the University for their projects, as per
the legislation. The portion retained by the City was used for projects such as tennis court upgrades, the
conversion of a donated property to the new BlackBox Theater, major upgrades to Jaycee park, Tatum
Park Fields and Kamper park. Along with improvements to other ballfield and various parks throughout
the City. The City also began to construct a new park in midtown appropriately named Midtown Green.
(This Space Intentionally Left Blank)
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Water & Sewer - The City’s Combined Water & Sewer System comprises a significant portion of the total
revenues, and its revenues are used almost exclusively for water & sewer system maintenance and
improvements.
Property Tax
20%
Sales Tax
26%
Other taxes
7%
Federal/State
Grants
17%
Charges for
Services & Fines
2%
Franchises &
Permits
3%
Combined Water
& Sewer System
21%
Other
4%
Sources of City Revenue
Property Tax
Sales Tax
Other taxes
Federal/State Grants
Charges for Services & Fines
Franchises & Permits
Combined Water & Sewer System
Expenses
The following chart depicts the breakdown of how Hattiesburg’s revenue is used. Public Safety and the
Combined Water & Sewer System are the most significant portions of expenditures, and Public Services
comprises the third largest portion of total expenditures.
(See Chart on Next Page)
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General Govt
11%
Public Safety
30%
Public Services
13%
Culture &
Recreation
12%
Economic
Development
4%
Transit
3%
Interest & fiscal
charges
5%
Combined
Water & Sewer
System
19%
Other
2%
Human/social
assistance
1%
How The Revenue Is Used
General Govt Public Safety
Public Services Culture & Recreation
Economic Development Transit
Interest & fiscal charges Combined Water & Sewer System
Other Human/social assistance
Reporting on the City of Hattiesburg’s Most Significant Funds:
Governmental Funds:
Information about the City’s major governmental funds begins with items presented on the Governmental
Funds Balance Sheet. These funds are accounted for using the modified accrual basis of accounting. All
governmental funds had total revenues of $101,259,828 and expenditures of $110,691,794, exclusive of
other financing sources and uses.
Governmental funds are used to account for essentially the same functions reported as governmental
activities in the government-wide financial statements. However, unlike the government-wide financial
statements, governmental fund financial statements focus on near-term inflows and outflows of spendable
resources, as well as on balances of spendable resources available at the end of the fiscal year. Such
information may be useful in evaluating a government’s near-term financing requirements.
Detailed information is presented for other funds comprising the Governmental Funds grouping, and a
reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net
Position is provided.
The General Fund is the primary governmental operating fund, containing expenditures for general
government, public safety, public services, other services, mass transit, culture and recreation,
human/social assistance and economic development. The general fund accounts 64.81% of total
revenues and 56.94% of total expenses.
Total expenditures for the General Fund decreased by $1,194,515, or 1.86% from FY 2022. The General
Fund’s ending fund balance increased by $521,750, or 2.4% from FY 2022.
- 14 -
Proprietary Funds:
The City of Hattiesburg maintains one type of proprietary fund, an enterprise fund that is used to report
business-type activities in the government-wide financial statements. The City uses enterprise fund
accounting in order to account for the Combined Water & Sewer System.
Proprietary funds provide the same type of information as the government-wide financial statements, only
in more detail. Operating revenues of the system are utilized to fund operation and maintenance
expenses and debt service, with any residual net revenues being transferred into the Water & Sewer
Construction Fund, a component of the consolidated enterprise fund.
Operating expenses for the system increased by $1,691,765 or 9.12% in FY 2023. This increase is
reflected in the increase in personnel services and the result of differences in materials costs required for
the various water and sewer line repairs.
Operating revenues increased by $2,822,522 or 11.17% in FY 2023. Revenue increases were due to the
final year of rate increases that were implemented over the last 3 years and a severe drought that
occurred during the summer of 2023.
The City of Hattiesburg as a Whole:
Recall that the Statement of Net Position looks at the City as a whole. Table 1 provides a summary of the
City’s net position for FY 2023.
Table 2 shows the changes in net position for the year ended September 30, 2023.
The most significant changes in the information included in Table 1 are reflected in the Assets, Liabilities
and Deferred Inflows of Resources sections. The increase in Capital Assets from FY 2022 of
$27,275,226 is due to the continuing work on the construction of the Hall Avenue East Overpass, Hall
Avenue and the beginning of the construction on the Hall Avenue West Overpass. The increase in net
pension liability from FY 2022 of $16,825,152 is Hattiesburg’s share of liability of the Public Employees
Retirement System, from information provided by the Retirement System in their annual financial report.
The increase in long-term liabilities, outstanding payable after one year is due to the inclusion of the 2021
Refunding bond that has money in escrow to pay off the outstanding bonds from the 2012 and 2013
Water and sewer issuances.
(This Space Intentionally Left Blank)
- 15 -
2023 2022 2023 2022 2023 2022
ASSETS
Current and other assets 101,645,913$ 98,664,130$ 37,129,140$ 17,918,051$ 138,775,053$ 116,582,181$
Capital assets, net 217,443,207 187,520,081 123,136,472 121,855,194 340,579,679 309,375,275
Total assets 319,089,120 286,184,211 160,265,612 139,773,245 479,354,732 425,957,456
DEFERRED OUTFLOWS OF RESOURCES
Related to pensions 19,670,820 9,590,602 1,653,700 768,250 21,324,520 10,358,852
Related to OPEB 1,699,067 2,013,636 147,745 170,423 1,846,812 2,184,059
Prepaid bond insurance 289,806 290,804 363,791 380,047 653,597 670,851
Total deferred outflows of resources 21,659,693 11,895,042 2,165,236 1,318,720 23,824,929 13,213,762
LIABILITIES
Long-term liabilities, outstanding:
Due within one year 5,320,137 3,308,652 25,493,328 5,824,517 30,813,465 9,133,169
Payable after one year 73,675,163 73,054,727 41,136,141 46,092,200 114,811,304 119,146,927
Other liabilities 6,622,511 5,552,986 4,442,756 4,243,764 11,065,267 9,796,750
Net pension liability 99,473,975 83,959,537 7,063,453 5,752,739 106,537,428 89,712,276
Total OPEB liability 7,848,331 10,647,900 614,048 857,489 8,462,379 11,505,389
Total liabilities 192,940,117 176,523,802 78,749,726 62,770,709 271,689,843 239,294,511
DEFERRED INFLOWS OF RESOURCES
Related to pensions 1,732,647 644,696 - - 1,732,647 644,696
Related to OPEB 5,958,731 2,695,951 518,151 228,171 6,476,882 2,924,122
Related to contracts - - 286,949 341,989 286,949 341,989
Related to grants 5,140,331 6,437,898 - - 5,140,331 6,437,898
Related to lease revenue 213,879 225,409 - - 213,879 225,409
Unearned revenues - property taxes 25,300,000 23,220,000 - - 25,300,000 23,220,000
Total deferred inflows of resources 38,345,588 33,223,954 805,100 570,160 39,150,688 33,794,114
NET POSITION
Net investment in capital assets 140,919,248 113,644,022 75,653,861 70,132,697 216,573,109 183,776,719
Restricted 9,107,348 18,415,828 9,827,235 11,495,267 18,934,583 29,911,095
Unrestricted (40,563,488) (43,728,353) (2,605,074) (3,876,868) (43,168,562) (47,605,221)
Total net position 109,463,108$ 88,331,497$ 82,876,022$ 77,751,096$ 192,339,130$ 166,082,593$
Totals
TABLE 1
CITY OF HATTIESBURG'S NET POSITION
Governmental Activities
Business-type Activities
- 16 -
2023 2022 2023 2022 2023 2022
REVENUES
Program revenues:
Charges for services 3,022,377$ 2,912,260$ 28,109,349$ 25,286,827$ 31,131,726$ 28,199,087$
Operating grants and contributions 7,394,730 4,738,050 - - 7,394,730 4,738,050
Capital grants and contributions 15,106,733 8,480,701 70,824 322,567 15,177,557 8,803,268
Total program revenues 25,523,840 16,131,011 28,180,173 25,609,394 53,704,013 41,740,405
General revenues:
Property taxes 26,320,264 25,755,700 - - 26,320,264 25,755,700
Other taxes 48,288,196 46,205,049 - - 48,288,196 46,205,049
Grants and contributions not
restricted to specific programs 30,600 223,005 - - 30,600 223,005
Other general revenues 5,033,377 2,954,621 339,743 464,188 5,373,120 3,418,809
Total general revenues 79,672,437 75,138,375 339,743 464,188 80,012,180 75,602,563
Total revenues 105,196,277 91,269,386 28,519,916 26,073,582 133,716,193 117,342,968
PROGRAM EXPENSES
General government 12,282,057 11,296,096 - - 12,282,057 11,296,096
Public safety 32,315,379 26,353,567 - - 32,315,379 26,353,567
Public services 14,425,099 16,242,403 - - 14,425,099 16,242,403
Other services 1,673,393 1,921,637 - - 1,673,393 1,921,637
Mass transit 2,825,922 1,969,988 - - 2,825,922 1,969,988
Culture and recreation 12,775,390 13,918,797 - - 12,775,390 13,918,797
Human/social assistance 1,018,994 584,345 - - 1,018,994 584,345
Water & Sewer - - 20,224,846 18,532,482 20,224,846 18,532,482
Economic development 4,623,506 2,181,782 - - 4,623,506 2,181,782
Interest and fiscal charges 2,948,926 2,830,886 1,915,151 2,261,973 4,864,077 5,092,859
Total program expenses 84,888,666 77,299,501 22,139,997 20,794,455 107,028,663 98,093,956
TABLE 2
CITY OF HATTIESBURG'S CHANGES IN NET POSITION
Governmental Activities
Business-type Activities
Totals
- 17 -
2023 2022 2023 2022 2023 2022
Increase (decrease) in net position
before inclusion of transfers 20,307,611$ 13,969,885$ 6,379,919$ 5,279,127$ 26,687,530$ 19,249,012$
Transfers In (Out) 824,000 958,679 (824,000) (867,187) - 91,492
Increase (decrease) in net
position after inclusion of
transfers 21,131,611 14,928,564 5,555,919 4,411,940 26,687,530 19,340,504
Net position - Beginning 88,331,497 73,236,117 77,751,096 73,339,156 166,082,593 146,575,273
Prior period adjustment - 166,816 (430,993) - (430,993) 166,816
Net position - Beginning, as restated 88,331,497 73,402,933 77,320,103 73,339,156 165,651,600 146,742,089
Net position - Ending 109,463,108$ 88,331,497$ 82,876,022$ 77,751,096$ 192,339,130$ 166,082,593$
Governmental Activities
Business-type Activities
Totals
TABLE 2
CITY OF HATTIESBURG'S CHANGES IN NET POSITION
PAGE TWO
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- 18 -
General Fund Budgetary Highlights
The City’s budget is prepared according to Mississippi Law and is based on accounting for certain
transactions of cash receipts, disbursements, and encumbrances. The most significant budgeted fund is
the General Fund.
The 2023 budget of the General Fund realized an increase in ending fund balance of $872,257.
In May 2024, the City was given a Aa3 bond rating that will allow the City to continue to refinance old debt
and issue new debt as need arises.
Other significant expenditures for FY 2023 included paving throughout the City, new sidewalks in various
sections of the City (especially near schools), upgrading of major traffic corridors such as the Lincoln
Road paving project, Hardy Street roundabout which was completed in 2023, infrastructure improvements
on Lamar Boulevard (to accommodate increased traffic flow due to construction of a major banking
facility). Other Notable projects were the N. 28
th
Bridge, Country Club Road, Midtown Streetscapes, both
Overpasses and the upgrades to Midtown sewer, as well as continuation of infrastructure improvements
considered more routine in nature.
From a budgetary point of view, the City’s original General Fund revenue budget for FY 2023 totaled
$56,913,162 (exclusive of projected beginning cash at October 1, 2022 of $19 million). The final revenue
budget totaled $58,197,424, with actual revenue collections of $58,782,516 (100.33 collected).
Amendments to the General Fund budget were attributable mostly to state grant awards.
The original FY 2023 budget for General Fund expenditures was $56,912,918, and the final amended
total was $70,992,128. Actual expenditures totaled $57,910,259 (81.57% of budget expended). The
unexpended budget total of $13,081,869 is mostly attributable to unexpended personnel costs for unfilled
positions, unexpended grant funds, and unexpended funds for capital purchases which were not
completed prior to the end of the fiscal year.
Capital Assets and General Long-Term Obligations
Capital Assets
Table 3 provides an overview of the City’s Capital Assets, net of accumulated depreciation:
2023 2022
Land and construction in progress 73,333,044$ 48,571,835$
Buildings and improvements 64,723,185 67,487,637
Machinery and equipment 8,930,069 5,023,634
Infrastructure 187,812,408 182,111,311
Intangible right-to-use assets 5,780,973 6,180,858
Total 340,579,679$ 309,375,275$
Table 3
Capital Assets (Net of Depreciation)
- 19 -
The increase in the Land and construction in progress category is the result of continued work on the Hall
Avenue East Overpass and the beginning of construction on the Hall Avenue West Overpass as well as
other major street improvements throughout the city. The increase to Machinery and equipment is the
result of the purchases of many vehicles and equipment. These include but are not limited to,
Fire/Ladder Truck for Station #1, five new garbage trucks, new buses (Mass transit), multiple vehicles and
large equipment for several departments. The decrease in Buildings and improvements, Infrastructure
and Intangible right-to-use assets can be attributed to the depreciation on existing assets.
General Long-Term Debt Obligations
At September 30, 2023, the City of Hattiesburg had $61,680,568 in outstanding General Obligation Bonds
and Notes subject to the City’s overall general obligation debt limitations. The City’s overall legal debt
margin at September 30, 2023 was calculated to be $51,998,777. This number is based on the City’s
most current property tax rolls in conjunction with existing general obligation debt. In addition to
traditional general obligation debt, certain debt issues are secured by tax interceptor agreements with the
State of Mississippi. Tax Increment Financing Bonds are secured by the incremental increase in property
taxes at various taxing districts. The City has opted to maintain a margin of at least $10 million as a
matter of policy. Table 4 summarizes the total outstanding long-term debt obligations of the City.
2023 2022
Governmental Funds
General obligation bonds 50,500,000$ 45,000,000$
Limited obligation tax increment financing bonds 9,061,077 10,093,039
Certificates of participation 4,125,000 4,345,000
Economic development limited obligation bonds 91,645 113,208
Notes from direct borrowings and direct placements 2,027,846 3,006,231
Leases payable 5,703,973 6,180,858
SBITA payable 77,000 -
Unamortized premium 4,937,418 5,137,723
Claims and judgments 385,072 449,250
Subtotal governmental funds 76,909,031 74,325,309
Proprietary Fund
General obligation bonds 2,010,000 2,860,000
Revenue bonds 63,647,000 48,697,000
Unamortized bond premium 120,117 165,497
State Revolving Loan Funds 455,494 -
Subtotal proprietary fund 66,232,611 51,722,497
Compensated Absences 2,483,127 2,232,290
Total Long-Term Obligations 145,624,769$ 128,280,096$
Table 4
Outstanding Bonds, Notes and Long-Term Obligations at Year End
The compensated absences liability identified above refers to the current balance of what has been
earned as a termination benefit that will be paid over time as people leave or retire.
(This Space Intentionally Left Blank)
- 20 -
Current Financial Related Activities:
Combined sales tax collections, a major source of revenue for the General Fund, have been a strong
indicator of the local economy, showing an approximate 3.43% increase in FY 2023. This is also slightly
above the average rate of increase when looking at the history of collections over the period of several
years. Hattiesburg has a diverse economy, driven by regional medical facilities, two universities, and a
major military training installation south of the city limits. Efforts to bring sporting events and tournaments
to the city have been successful, contributing to this revenue.
Property tax values did, in fact, increase from 2022 valuations, and this resulted in a 2.19% increase in
property tax revenues for FY 2023. There was a strong real estate market in Hattiesburg during 2023,
reflecting the federal and local economies. A decreasing supply of homes available for sale contributed
to the increase in home values.
Contacting the City of Hattiesburg:
This financial report is designed to provide our citizens, taxpayers, creditors, and investors with a general
overview of the City’s finances and to show the City’s accountability for the money it receives. Copies of
this report will be on file at City Hall as well as on the City’s website, www.hattiesburgms.com. If you
should have questions about this report or need additional financial information, contact the City Clerk’s
Office at 601-545-4552.
(This Space Intentionally Left Blank)
BASIC FINANCIAL STATEMENTS
The accompanying notes are an integral part of these financial statements.
Governmental Business-type Component
Activities Activities Total Unit
ASSETS
Cash and cash equivalents - unrestricted 20,495,756$ 10,844,659$ 31,340,415$ 2,185,191$
Cash and cash equivalents - restricted 37,537,079 1,684,134 39,221,213 8,987,559
Cash with fiscal agent - restricted 324,098 22,275,848 22,599,946 -
Sales tax receivable 5,790,070 - 5,790,070 1,136,862
Property taxes receivable 25,750,343 - 25,750,343 -
Accounts receivable - Water and Sewer
(net of allowance for doubtful accounts
of $4,436,199) - 2,317,163 2,317,163 -
Accounts receivable - Solid Waste Services 213,724 - 213,724 -
Intergovernmental receivable 6,813,383 - 6,813,383 47,915
Fines receivable (net of allowance for
doubtful accounts of $25,265,182) 3,133,405 - 3,133,405 -
Lease receivable 213,879 - 213,879 116,643
Other receivables 1,350,523 7,667 1,358,190 -
Internal balances 331 (331) - -
Due from other agencies 262 - 262 -
Inventory - food and beverage - - - 145,055
Inventory - gas and oil 23,060 - 23,060 -
Capital assets not being depreciated:
Land and construction in progress 70,014,901 3,318,143 73,333,044 7,487,599
Capital assets, net of accumulated
depreciation:
Buildings and improvements 64,597,988 125,197 64,723,185 12,895,218
Machinery and equipment 8,089,285 840,784 8,930,069 1,620,514
Infrastructure 68,960,060 118,852,348 187,812,408 -
Leases and SBITA assets 5,780,973 - 5,780,973 5,523,862
Total assets 319,089,120 160,265,612 479,354,732 40,146,418
DEFERRED OUTFLOWS OF RESOURCES
Related to pensions 19,670,820 1,653,700 21,324,520 -
Related to OPEB 1,699,067 147,745 1,846,812 -
Prepaid bond insurance 289,806 363,791 653,597 -
Total deferred outflows of
resources 21,659,693 2,165,236 23,824,929 -
PRIMARY
- 21 -
EXHIBIT A
PAGE 1 OF 3
CITY OF HATTIESBURG, MISSISSIPPI
Statement of Net Position
September 30, 2023
GOVERNMENT
The accompanying notes are an integral part of these financial statements.
GOVERNMENT
Governmental Business-type Component
Activities Activities Total Unit
LIABILITIES
Accounts payable 2,710,513$ 1,769,612$ 4,480,125$ 476,574$
Accrued wages and benefits 2,317,293 232,450 2,549,743 215,292
Other liabilities 152,972 17,211 170,183 -
Due to other agencies 188,029 - 188,029 -
Accrued expenses 562,715 - 562,715 -
Accrued interest 690,989 586,353 1,277,342 -
Other liabilities - 152,996 152,996 -
Non-current liabilities:
Portion due or payable within one year:
General obligation bonds 1,919,000 585,000 2,504,000 -
General obligation note payable - 40,321 40,321 -
Revenue bonds - 24,792,000 24,792,000 139,829
Unamortized bond premium 187,148 16,478 203,626 -
Limited obligation tax increment
financing bonds 1,023,049 - 1,023,049 -
Certificates of participation 230,000 - 230,000 -
Unamortized certificate of participation
premium 13,158 - 13,158 -
Economic development limited
obligation bonds 21,563 - 21,563 -
Notes from direct borrowings and
direct placements 1,012,712 - 1,012,712 -
Leases payable 494,888 - 494,888 535,517
SBITA payable 34,455 - 34,455 -
Compensated absences 319,986 59,529 379,515 219,393
Claims and judgments 64,178 - 64,178 -
Portion due or payable after one year:
General obligation bonds 48,581,000 1,425,000 50,006,000 -
General obligation note payable - 415,173 415,173 -
Revenue bonds - 38,855,000 38,855,000 5,022,739
Unamortized bond premium 4,579,227 103,639 4,682,866 -
Limited obligation tax increment
financing bonds 8,038,028 - 8,038,028 -
Certificates of participation 3,895,000 - 3,895,000 -
Unamortized certificate of participation
premium 157,885 - 157,885 -
Economic development limited
obligation bonds 70,082 - 70,082 -
Notes from direct borrowings and
direct placements 1,015,134 - 1,015,134 -
Leases payable 5,209,085 - 5,209,085 4,988,345
SBITA payable 42,545 - 42,545 -
Compensated absences 1,766,283 337,329 2,103,612 -
Claims and judgments 320,894 - 320,894 -
Net pension liability 99,473,975 7,063,453 106,537,428 -
Total OPEB liability 7,848,331 614,048 8,462,379 -
Customer meter deposits - 1,684,134 1,684,134 -
Total liabilities 192,940,117 78,749,726 271,689,843 11,597,689
PRIMARY
- 22 -
EXHIBIT A
PAGE 2 OF 3
CITY OF HATTIESBURG, MISSISSIPPI
Statement of Net Position
September 30, 2023
The accompanying notes are an integral part of these financial statements.
GOVERNMENT
Governmental Business-type Component
Activities Activities Total Unit
DEFERRED INFLOWS OF RESOURCES
Related to pensions 1,732,647$ -$ 1,732,647$ -$
Related to OPEB 5,958,731 518,151 6,476,882 -
Related to contracts - 286,949 286,949 -
Related to grants 5,140,331 - 5,140,331 90,000
Related to lease proceeds - - - 116,643
Related to lease revenue 213,879 - 213,879 -
Special event revenue - - - 158,882
Unearned revenue - property taxes 25,300,000 - 25,300,000 -
Total deferred inflows of
resources 38,345,588 805,100 39,150,688 365,525
NET POSITION
Net investment in capital assets 140,919,248 75,653,861 216,573,109 16,840,763
Restricted for:
Debt service 7,517,124 9,642,063 17,159,187 -
Flag display - - - 90,000
Capital projects 1,590,224 185,172 1,775,396 509,342
Unrestricted (40,563,488) (2,605,074) (43,168,562) 10,743,099
Total net position 109,463,108$ 82,876,022$ 192,339,130$ 28,183,204$
September 30, 2023
PRIMARY
- 23 -
EXHIBIT A
PAGE 3 OF 3
CITY OF HATTIESBURG, MISSISSIPPI
Statement of Net Position
The accompanying notes are an integral part of these financial statements.
Fees, Fines and Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions
PRIMARY GOVERNMENT:
Governmental Activities:
General government 12,282,057$ -$ 1,874,785$ 9,687$
Public safety 32,315,379 530,178 1,174,611 -
Public services 14,425,099 2,243,270 2,448,520 13,293,057
Other services 1,673,393 - - (28,318)
Mass transit 2,825,922 149,598 1,581,712 1,617,032
Culture and recreation 12,775,390 99,331 - 215,275
Human/social assistance 1,018,994 - 315,102 -
Economic development 4,623,506 - - -
Interest and fiscal charges 2,948,926 - - -
Total governmental activities 84,888,666 3,022,377 7,394,730 15,106,733
Business-Type Activities:
Water and sewer system 20,224,846 28,109,349 - 70,824
Interest and fiscal charges 1,915,151 - - -
Total business-type activities 22,139,997 28,109,349 - 70,824
Total primary government 107,028,663$ 31,131,726$ 7,394,730$ 15,177,557$
COMPONENT UNIT:
Hattiesburg Convention Commission 12,122,653$ 6,308,672$ -$ -$
Total component unit 12,122,653$ 6,308,672$ -$ -$
GENERAL REVENUES:
Taxes:
Property taxes, levied for general purposes
Property taxes, levied for debt service
Sales tax
Franchise taxes and other licenses and permits
Special sales tax
Internet sales tax
Grants and contributions not restricted to specific programs
Unrestricted investment earnings
Other local sources
Miscellaneous
Gain on sale of assets
TRANSFERS:
Transfers, component unit
Transfers, net
Total general revenues and transfers
CHANGE IN NET POSITION
NET POSITION - BEGINNING, AS PREVIOUSLY REPORTED
Prior period adjustment
NET POSITION - BEGINNING, AS ADJUSTED
NET POSITION - ENDING
Program Revenues
- 24 -
EXHIBIT B
CITY OF HATTIESBURG, MISSISSIPPI
Statement of Activities
Year Ended September 30, 2023
Governmental Business-type Component
Activities Activities Total Unit
(10,397,585)$ (10,397,585)$
(30,610,590) (30,610,590)
3,559,748 3,559,748
(1,701,711) (1,701,711)
522,420 522,420
(12,460,784) (12,460,784)
(703,892) (703,892)
(4,623,506) (4,623,506)
(2,948,926) (2,948,926)
(59,364,826) (59,364,826)
- 7,955,327$ 7,955,327
- (1,915,151) (1,915,151)
- 6,040,176 6,040,176
(59,364,826) 6,040,176 (53,324,650)
(5,813,981)$
(5,813,981)
22,878,716 - 22,878,716 -
3,441,548 - 3,441,548 -
34,455,573 - 34,455,573 -
4,902,849 - 4,902,849 -
3,862,604 - 3,862,604 6,940,353
5,067,170 - 5,067,170 -
30,600 - 30,600 -
286,988 339,743 626,731 41,740
2,780,639 - 2,780,639 -
1,491,837 - 1,491,837 14,980
8,512 - 8,512 -
465,401 - 465,401 (465,401)
824,000 (824,000) - -
80,496,437 (484,257) 80,012,180 6,531,672
21,131,611 5,555,919 26,687,530 717,691
88,331,497 77,751,096 166,082,593 27,465,513
- (430,993) (430,993) -
88,331,497 77,320,103 165,651,600 27,465,513
109,463,108$ 82,876,022$ 192,339,130$ 28,183,204$
Net (Expense) Revenue and
Primary Government
Changes in Net Position
- 25 -
The accompanying notes are an integral part of these financial statements.
Municipal COVID Fiscal
General Road and Bridge Recovery
Fund Fund Fund
ASSETS
Cash and cash equivalents - unrestricted 17,780,189$ -$ -$
Cash and cash equivalents - restricted - 8,648,095 11,578,241
Cash with fiscal agent - restricted - - -
Due from other funds 2,753,500 - -
Sales tax receivable 2,940,394 - -
Intergovernmental receivables 38,740 - -
Fines receivable (net of allowance for
doubtful accounts of $25,265,182) 3,133,405 - -
Other receivables 1,267,146 12,166 -
Lease receivable - - -
Property taxes receivable 21,632,711 - -
Due from other agencies 262 - -
Inventory - gas and oil 23,060 - -
Advances to other funds 500,000 - -
Prepaid insurance 289,806 - -
Total assets 50,359,213$ 8,660,261$ 11,578,241$
LIABILITIES
Accounts payable 909,329$ 84,529$ -$
Due to other funds 579 2,170,000 -
Due to other governments 45,185 - -
Accrued wages and benefits 2,169,118 - -
Other liabilities 109,789 - -
Advances from other funds - - -
Total liabilities 3,234,000 2,254,529 -
DEFERRED INFLOWS OF
RESOURCES
Unavailable revenue - property taxes 21,400,000 - -
Unavailable revenue - lease revenue - - -
Unavailable revenue - grants - - 5,140,330
Unavailable revenue - fines 3,133,405 - -
Total deferred inflows of resources 24,533,405 - 5,140,330
FUND BALANCES
Nonspendable:
Inventories 23,060 - -
Prepaid expenses 289,806 - -
Long-term interfund advance 500,000 - -
- 26 -
EXHIBIT C
PAGE 1 OF 2
CITY OF HATTIESBURG, MISSISSIPPI
Balance Sheet - Governmental Funds
September 30, 2023
Series
2019 and 2020 Other Total
Bond Projects Governmental Governmental
Fund
Funds Funds
-$ 2,715,488$ 20,495,677$
2,421,701 14,889,042 37,537,079
169,739 154,438 324,177
- 910 2,754,410
- 296,670 3,237,064
- 424,771 463,511
- - 3,133,405
- - 1,279,312
- 213,879 213,879
- 3,924,777 25,557,488
- - 262
- - 23,060
- - 500,000
- - 289,806
2,591,440$ 22,619,975$ 95,809,130$
1,001,216$ 715,439$ 2,710,513$
- 583,500 2,754,079
- 129,400 174,585
- 148,175 2,317,293
- 605,898 715,687
- 500,000 500,000
1,001,216 2,682,412 9,172,157
- 3,900,000 25,300,000
- 213,879 213,879
- - 5,140,330
- - 3,133,405
- 4,113,879 33,787,614
- - 23,060
- - 289,806
- - 500,000
- 27 -
The accompanying notes are an integral part of these financial statements.
Municipal COVID Fiscal
General Road and Bridge Recovery
Fund Fund Fund
FUND BALANCES (Cont.)
Restricted:
Public safety:
Fire protection -$ -$ -$
Law enforcement - - -
Public services - - -
Mass transit - - -
Debt service - - -
Culture and recreation - - -
Economic development - - 6,437,911
Committed:
Culture and recreation - - -
Assigned:
General government 109,964 - -
Public safety 214,507 - -
Public services 270,044 6,405,732 -
Economic development 310,500 - -
Other services 45 - -
Unassigned 20,873,882 - -
Total fund balances 22,591,808 6,405,732 6,437,911
Total liabilities, deferred inflows
of resources, and fund balances
50,359,213$ 8,660,261$ 11,578,241$
- 28 -
EXHIBIT C
PAGE 2 OF 2
CITY OF HATTIESBURG, MISSISSIPPI
Balance Sheet - Governmental Funds
September 30, 2023
Series
2019 and 2020 Other Total
Bond Projects Governmental Governmental
Fund
Funds Funds
-$ 1,093,004$ 1,093,004$
- 1,140,638 1,140,638
- 2,605,209 2,605,209
- 910,501 910,501
- 7,517,124 7,517,124
300,000 2,056,524 2,356,524
1,290,224 364,794 8,092,929
- 754,170 754,170
- - 109,964
- - 214,507
- - 6,675,776
- - 310,500
- - 45
- (618,280) 20,255,602
1,590,224 15,823,684 52,849,359
2,591,440$ 22,619,975$ 95,809,130$
- 29 -
The accompanying notes are an integral part of these financial statements.
Total fund balances for governmental funds (Exhibit C)
52,849,359$
Total net position reported for governmental activities in the
statement of net position is different because:
Capital assets used in governmental activities are not
financial resources and therefore are not reported in the
funds. Those assets consist of:
Land 30,578,599$
Construction in progress 39,436,302
Buildings and improvements, net of $41,072,688
accumulated depreciation 64,597,988
Machinery and equipment, net of $35,778,204
accumulated depreciation 8,089,285
Infrastructure, net of $115,440,642 accumulated
depreciation 68,960,060
Intangible right-to-use assets, net of $979,057
accumulated depreciation 5,780,973
Total capital assets 217,443,207
Other long-term assets are not available to pay for current
period expenditures and therefore are reported as deferred
revenue in the funds.
3,133,405
Receivables not received within thirty days of year end are
not reported in the funds.
9,380,668
Deferred outflows related to pensions and OPEB are
not reported in the funds:
Related to pensions 19,670,820
Related to OPEB 1,699,067
Total deferred outflows 21,369,887
to the Government-Wide Statement of Net Position
September 30, 2023
- 30 -
EXHIBIT C.1
CITY OF HATTIESBURG, MISSISSIPPI
Reconciliation of the Governmental Funds Balance Sheet
PAGE 1 OF 2
The accompanying notes are an integral part of these financial statements.
Deferred inflows related to pensions and OPEB are
not reported in the funds:
Related to pensions (1,732,647)$
Related to OPEB (5,958,731)
Total deferred inflows (7,691,378)$
Payables not paid within thirty days of year end are
not reported in the funds. (13,445)
Long-term liabilities applicable to the City’s governmental
activities are not due and payable in the current period and
accordingly are not reported as fund liabilities. Interest on
long-term debt is not accrued in the governmental funds, but
rather is recognized as an expenditure when due. All
liabilities - both current and long-term - are reported in the
statement of net position. Balances for these liabilities
at September 30, 2023 are:
Accrued interest on bonds and notes
(690,989)
General obligation bonds
(50,500,000)
Limited obligation tax increment financing bonds
(9,061,077)
Economic development limited obligation bonds
(91,645)
Unamortized premiums on bonds
(4,766,375)
Certificates of participation
(4,125,000)
Unamortized premiums on certificates of participation
(171,043)
Notes from direct borrowings and direct placements
(2,027,846)
Leases payable
(5,703,973)
Subscription based intangible asset payable
(77,000)
Compensated absences
(2,086,269)
Claims and judgments
(385,072)
Net pension liability
(99,473,975)
Total OPEB liability
(7,848,331)
Total long-term liabilities
(187,008,595)
Total net position of governmental activities (Exhibit A)
$ 109,463,108
September 30, 2023
- 31 -
EXHIBIT C.1
CITY OF HATTIESBURG, MISSISSIPPI
Reconciliation of the Governmental Funds Balance Sheet
PAGE 2 OF 2
to the Government-Wide Statement of Net Position
The accompanying notes are an integral part of these financial statements.
Municipal COVID Fiscal
General Road and Bridge Recovery
Fund Fund
Fund
REVENUES
General property taxes 21,323,185$ -$ -$
Sales tax collections 34,820,897 - -
Special sales tax collections - - -
Internet sales tax - - -
Other taxes 10,741 - -
Licenses and permits 4,699,112 - -
Fines, forfeitures and penalties 667,813 - -
Interest, rents and concessions 150,445 45,683 -
Intergovernmental revenues 1,143,330 7,325,872 1,297,566
Charges for services 2,365,392 - -
Other revenues 446,265 - -
Total revenues 65,627,180 7,371,555 1,297,566
EXPENDITURES
Current:
General government 11,177,328 - -
Public safety 25,455,330 - 1,297,566
Public services 12,890,419 1,543,474 -
Other services 1,463,397 - -
Mass transit - - -
Culture and recreation 6,899,042 - -
Human/social assistance - - -
Economic development 4,023,506 - -
Debt service:
Principal payments 781,247 - -
Interest and fiscal charges 340,973 - -
Total expenditures 63,031,242 1,543,474 1,297,566
Excess (deficiency) of revenues over
expenditures 2,595,938 5,828,081 -
- 32 -
EXHIBIT D
PAGE 1 OF 2
CITY OF HATTIESBURG, MISSISSIPPI
Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds
Year Ended September 30, 2023
Series
2019 and 2020 Other Total
Bond Projects Governmental Governmental
Fund Funds Funds
-$ 4,705,793$ 26,028,978$
- - 34,820,897
- 3,889,493 3,889,493
- 5,067,170 5,067,170
- - 10,741
- - 4,699,112
- 163,827 831,640
24,115 168,920 389,163
6,306,443 4,538,031 20,611,242
- 1,124,731 3,490,123
- 975,004 1,421,269
6,330,558 20,632,969 101,259,828
- - 11,177,328
647,671 2,004,008 29,404,575
14,834,155 2,610,044 31,878,092
- 259,321 1,722,718
- 4,202,875 4,202,875
- 14,302,415 21,201,457
- 959,907 959,907
- 600,000 4,623,506
- 1,911,347 2,692,594
- 2,487,769 2,828,742
15,481,826 29,337,686 110,691,794
(9,151,268) (8,704,717) (9,431,966)
- 33 -
The accompanying notes are an integral part of these financial statements.
Municipal COVID Fiscal
General Road and Bridge Recovery
Fund Fund
Fund
OTHER FINANCING SOURCES (USES)
Proceeds from long-term debt -$ -$ -$
Proceeds from subscription based
intangible assets 115,500 - -
Proceeds from sale of capital asset 713,826 - -
Other sources 188,981 - -
Transfers in - - -
Transfers out (3,092,495) - -
Total other financing
sources (uses) (2,074,188) - -
NET CHANGE IN FUND BALANCES 521,750 5,828,081 -
Fund balances – beginning 22,070,058 577,651 6,437,911
Fund balances – ending 22,591,808$ 6,405,732$ 6,437,911$
Year Ended September 30, 2023
- 34 -
EXHIBIT D
PAGE 2 OF 2
CITY OF HATTIESBURG, MISSISSIPPI
Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds
Series
2019 and 2020 Other Total
Bond Projects Governmental Governmental
Fund Funds Funds
-$ 5,500,000$ 5,500,000$
- - 115,500
- - 713,826
- 663 189,644
- 3,916,495 3,916,495
- - (3,092,495)
- 9,417,158 7,342,970
(9,151,268) 712,441 (2,088,996)
10,741,492 15,111,243 54,938,355
1,590,224$ 15,823,684$ 52,849,359$
- 35 -
The accompanying notes are an integral part of these financial statements.
Net change in fund balances - governmental funds
(Exhibit D)
(2,088,996)$
The change in net position reported for governmental
activities in the statement of activities is different because:
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. This is the amount by
which capital outlay ($39,981,364) exceeded depreciation
expense ($10,058,256) in the current period.
29,923,126
Intergovernmental revenues are recognized on the full-
accrual basis in the statement of activities for revenues
received thirty days after year end. This is the amount of
effect of the change in revenue.
3,318,561
Fine revenue deferred in the funds for the modified
accrual basis during the current year decreased because
prior year recognition would have been required in the
statement of activities using the full-accrual basis of
accounting.
(55,984)
Proceeds from issuance of long-term debt are reported in
the governmental funds. However, in the statement of net
position a long-term liability is recorded. Repayments of
long-term debt are reported as expenses in the
governmental funds but are recorded against the liability in
the statement of net position. Thus, the change in net
position differs from the change in fund balances by the net
amount of the debt proceeds and repayments.
(2,784,027)
Reconciliation of the Statement of Revenues, Expenditures, and Changes in
Fund Balances of Governmental Funds to the Statement of Activities
Year Ended September 30, 2023
- 36 -
EXHIBIT D.1
PAGE 1 OF 2
CITY OF HATTIESBURG, MISSISSIPPI
The accompanying notes are an integral part of these financial statements.
Under the modified accrual basis of accounting used in
governmental funds, expenditures are not recognized for
transactions that are not normally paid with expendable
available financial resources. In the statement of activities,
however, which is presented on the accrual basis,
expenses and liabilities are reported regardless of when
financial resources are available. In addition, interest on
long-term debt is not recognized under the modified accrual
basis of accounting until due, rather than as it accrues.
The following adjustments combine the net changes of the
balances:
Compensated absences (48,199)$
Amortization of certificates of participation premium 13,157
Amortization of bond premium 187,148
Special sales tax payable 127,667
Accrued interest on bonds and notes (160,891)
Combined adjustment 118,882$
Change related to pension deferred outflows and inflows
and liabilities
(6,522,171)
Change related to other post employment benefit
deferred outflows and liabilities
(777,780)
Change in net position of governmental activities
(Exhibit B) 21,131,611$
Reconciliation of the Statement of Revenues, Expenditures, and Changes in
Fund Balances of Governmental Funds to the Statement of Activities
Year Ended September 30, 2023
- 37 -
EXHIBIT D.1
PAGE 2 OF 2
CITY OF HATTIESBURG, MISSISSIPPI
The accompanying notes are an integral part of these financial statements.
Combined Water
and Sewer System
CURRENT ASSETS
Cash and cash equivalents - unrestricted 10,844,659$
Cash with fiscal agent - restricted 22,275,848
Accounts receivable - trade (net of allowance
for doubtful accounts of $4,436,199) 2,317,163
Other receivables 7,667
Total current assets 35,445,337
NONCURRENT ASSETS
Cash and cash equivalents - restricted 1,684,134
Capital assets
Land 358,164
Construction in progress 2,959,979
Buildings and improvements, net 125,197
Machinery and equipment, net 840,784
Infrastructure, net 118,852,348
Total noncurrent assets 124,820,606
Total assets 160,265,943
DEFERRED OUTFLOW OF RESOURCES
Related to pensions
1,653,700
Related to OPEB
147,745
Prepaid bond insurance
363,791
Total deferred outflows
2,165,236
CURRENT LIABILITIES
Accounts payable 1,769,612
Accrued wages and benefits payable 232,450
Sales tax payable 17,211
Due to governmental funds 331
Accrued interest payable 586,353
Other liabilities 152,996
General obligation bonds - current 585,000
General obligation note payable - current 40,321
Revenue bonds - current
24,792,000
Unamortized bond premium - current 16,478
Compensated absences - current 59,529
Total current liabilities 28,252,281
September 30, 2023
- 38 -
EXHIBIT E
CITY OF HATTIESBURG, MISSISSIPPI
Statement of Net Position - Proprietary Fund
PAGE 1 OF 2
The accompanying notes are an integral part of these financial statements.
Combined Water
and Sewer System
NON-CURRENT LIABILITIES
General obligation bonds 1,425,000$
General obligation note payable 415,173
Revenue bonds
38,855,000
Unamortized bond premium 103,639
Compensated absences 337,329
Net pension liability 7,063,453
OPEB liability 614,048
Customer meter deposits 1,684,134
Total non-current liabilities 50,497,776
Total liabilities 78,750,057
DEFERRED INFLOWS OF RESOURCES
Related to OPEB 518,151
Related to contracts 286,949
Total deferred inflows
805,100
NET POSITION
Net investment in capital assets 75,653,861
Restricted for debt service 9,642,063
Restricted for capital projects 185,172
Unrestricted (2,605,074)
Total net position
82,876,022$
September 30, 2023
PAGE 2 OF 2
- 39 -
EXHIBIT E
CITY OF HATTIESBURG, MISSISSIPPI
Statement of Net Position - Proprietary Fund
The accompanying notes are an integral part of these financial statements.
Combined Water
and Sewer System
OPERATING REVENUES
Water charges
13,176,551$
Sewer charges
14,484,730
Sewer connections
45,694
Turn-on fees
62,393
Taps
339,981
Total operating revenues
28,109,349
OPERATING EXPENSES
Personnel services
3,919,856
Other services and charges
9,025,443
Supplies and expenses
2,351,320
Depreciation
4,577,662
Other operating expenses
349,966
Total operating expenses
20,224,247
OPERATING INCOME
7,885,102
NON-OPERATING REVENUES (EXPENSES)
Interest revenue
339,743
Interest expense
(1,915,151)
Intergovernmental revenue
70,824
Other expenses
(599)
Total non-operating revenues (expenses)
(1,505,183)
INCOME BEFORE TRANSFERS
6,379,919
Transfers out
(824,000)
Total transfers
(824,000)
CHANGE IN NET POSITION
5,555,919
NET POSITION - beginning
77,751,096
Prior period adjustment
(430,993)
NET POSITION - beginning, as adjusted
77,320,103
NET POSITION - ending
82,876,022$
Proprietary Fund
Year Ended September 30, 2023
- 40 -
EXHIBIT F
CITY OF HATTIESBURG, MISSISSIPPI
Statement of Revenues, Expenses, and Changes In Net Position -
The accompanying notes are an integral part of these financial statements.
Combined Water
and Sewer System
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers
27,759,514$
Payments to suppliers and service providers
(11,643,616)
Payments to employees for salaries and benefits
(3,103,053)
Net cash provided by operating activities 13,012,845
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Transfers to other funds
(824,000)
Net cash used by noncapital financing activities (824,000)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Proceeds from long-term debt issued 455,494
Principal payments - bonds and notes (5,750,000)
Proceeds placed with fiscal agent 19,419,007
Intergovernmental cash receipts 70,824
Acquisition and construction of capital assets (5,858,940)
Other payments (599)
Interest paid on capital debt (1,987,247)
Net cash provided by capital and related financing activities
6,348,539
CASH FLOWS FROM INVESTING ACTIVITIES
Interest income 339,743
Net cash provided by investing activities 339,743
NET INCREASE IN CASH AND CASH EQUIVALENTS
18,877,127
CASH AND CASH EQUIVALENTS - Beginning
15,927,514
CASH AND CASH EQUIVALENTS - Ending
34,804,641$
Displayed on Exhibit E as:
Current Assets:
Cash and cash equivalents - unrestricted 10,844,659$
Cash with fiscal agent - restricted 22,275,848
Non-Current Assets:
Cash and cash equivalents - restricted 1,684,134
34,804,641$
Statement of Cash Flows - Proprietary Fund
Year Ended September 30, 2023
- 41 -
EXHIBIT G
PAGE 1 OF 2
CITY OF HATTIESBURG, MISSISSIPPI
The accompanying notes are an integral part of these financial statements.
Combined Water
and Sewer System
RECONCILIATION OF OPERATING INCOME TO NET
CASH PROVIDED BY OPERATING ACTIVITIES:
Operating income 7,885,102$
Adjustments to reconcile operating income
to net cash provided by operating activities:
Depreciation expense 4,577,662
Decrease (increase) in assets:
Accounts receivable - trade (332,555)
Deferred outflows related to pension (885,450)
Deferred outflows related to OPEB 22,678
Prepaid insurance - bonds 16,256
Increase (decrease) in liabilities:
Due from/to other governmental funds (1,407)
Accounts payable 113,997
Other liabilities (45,733)
Accrued wages and benefits payable 119,684
Sales tax payable (38,394)
Compensated absences 202,638
Net pension liability 1,310,714
Total OPEB liability (243,441)
Customer meter deposits 76,154
Deferred inflows related to OPEB 289,980
Deferred inflows related to contracts (55,040)
Total adjustments 5,127,743
Net cash provided by operating activities 13,012,845$
Year Ended September 30, 2023
- 42 -
PAGE 2 OF 2
CITY OF HATTIESBURG, MISSISSIPPI
Statement of Cash Flows - Proprietary Fund
EXHIBIT G
The accompanying notes are an integral part of these financial statements.
Custodial Funds
ASSETS
Cash and cash equivalents 89,571$
Other receivables 1,026,359
Sales tax receivable 72,243
Total assets 1,188,173$
LIABILITIES
Due to other funds 247,177$
Other liabilities 1,320
Total liabilities 248,497
NET POSITION
Restricted for:
Individuals, organizations and other governments 939,676
Total net position 939,676
Total liabilities and net position 1,188,173$
- 43 -
September 30, 2023
EXHIBIT H
CITY OF HATTIESBURG, MISSISSIPPI
Statement of Fiduciary Net Position
The accompanying notes are an integral part of these financial statements.
Custodial
Funds
ADDITIONS
Property tax revenues 50,781,948$
Sales tax revenues 954,021
Intergovernmental revenues 445,000
Other revenues 26,717
Interest 12,224
Total additions 52,219,910
DEDUCTIONS
Payments of taxes to other funds 50,252,468
Administrative expense 61,554
Other expense 1,519,326
Total deductions 51,833,348
CHANGE IN FIDUCIARY NET POSITION 386,562
NET POSITION - BEGINNING 553,114
NET POSITION - ENDING 939,676$
EXHIBIT I
CITY OF HATTIESBURG, MISSISSIPPI
Statement of Changes in Fiduciary Net Position
Year Ended September 30, 2023
- 44 -
NOTES TO THE FINANCIAL STATEMENTS
- 45 -
CITY OF HATTIESBURG, MISSISSIPPI
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED SEPTEMBER 30, 2023
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. General Information
The City of Hattiesburg, Mississippi (the City) was incorporated in 1884 under the laws of the State
of Mississippi and presently operates under a Mayor/Council form of government. It is the fifth largest
municipality in the state with approximately 47,000 residents. The policy-making and legislative authority, as
well as budgetary responsibilities, are vested with the City Council. The following services are provided by
the City: Public Safety (Police, Fire, and Code Enforcement), Public Services, Engineering, Solid Waste
Collection, Water and Sewer, Culture and Recreation, Mass Transit, Federal Programs, Urban Development,
and General Administrative Services.
The accounting and reporting framework and the more significant accounting policies and practices
are discussed in subsequent sections of this Note. The remainder of the notes are organized to provide
explanations, including required disclosures, of the City’s financial activities.
B. Reporting Entity
The City is a charter city in which citizens elect the mayor at large and five council members by wards.
The accompanying financial statements present the City’s primary government and its component unit, an
entity for which the government is considered to be financially accountable. The discretely presented
component unit is reported in a separate column in the government-wide financial statements (see note below
for description) to emphasize that it is legally separate from the primary government.
Discretely presented component unit - The Hattiesburg Convention Commission (the
Commission) is composed of a seven member board whose members are appointed by the Hattiesburg City
Council. The purpose of the Commission is to promote conventions and tourism. The Commission has
authority over all matters relating to the establishment, development, construction, furnishing, and equipping
of convention and tourism related facilities. The Commission is primarily funded by a 2.00% sales tax on local
food, beverage, and alcoholic beverage package retailer permits. The Commission is presented as a
governmental fund type. Pursuant to component unit criteria guidelines, the Commission is presented as a
discretely presented component unit based upon the budgetary oversight provided by the City in conjunction
with other related criteria including, but not limited to, the City’s ability to make board appointments and the
Commission’s status as a legally separate entity.
A separate financial statement of the Commission can be obtained by contacting the Hattiesburg
Convention Commission, 1 Convention Center Plaza, Hattiesburg, Mississippi 39401.
(This Space Intentionally Left Blank)
- 46 -
CITY OF HATTIESBURG, MISSISSIPPI
NOTES TO THE FINANCIAL STATEMENTS
PAGE TWO
YEAR ENDED SEPTEMBER 30, 2023
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont.)
C. 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 nonfiduciary activities of the primary government and its component
unit. 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. Likewise, the primary government is reported separately from a certain legally separate component
unit for which the primary government is financially accountable.
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.
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. The major
individual governmental funds and the major individual enterprise fund are reported as separate columns in
the fund financial statements. Internal activities, including interfund transfers and due to/due from balances
attributable to governmental activities have been eliminated for government-wide financial statement
presentation purposes.
D. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
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 fiduciary fund financial statements.
Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of
the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are
levied based on historical trends of collections in relation to assessments. Grants and similar items are
recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.
(This Space Intentionally Left Blank)
- 47 -
CITY OF HATTIESBURG, MISSISSIPPI
NOTES TO THE FINANCIAL STATEMENTS
PAGE THREE
YEAR ENDED SEPTEMBER 30, 2023
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont.)
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 30 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, and interest 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. Only the portion of special assessments receivable due within the current fiscal period is
considered to be susceptible to accrual as revenue of the current 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:
General Fund - 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. Activities
accounted for in the general fund include police and fire protection, public services, general government,
sanitation, city courts, urban development, and other services.
Municipal Road and Bridge Fund - The Municipal Road and Bridge Fund is a special revenue fund
that accounts for resources restricted for the purpose of construction, repair and maintenance of roads and
bridges.
COVID Fiscal Recovery Fund - The COVID Fiscal Recovery Fund is a special revenue fund that
accounts for water and sewer infrastructure projects funded by Coronavirus State Fiscal Recovery Fund Grant
monies awarded through the U.S. Department of Treasury.
Series 2019 and 2020 Bond Projects Fund - The Series 2019 and 2020 Bond Projects Fund
represents the City’s major capital project fund. It accounts for all infrastructure projects associated with the
Series 2019 and 2020 Bond Issuances.
The City reports the following major proprietary fund:
Combined Water and Sewer System Fund - The Combined Water and Sewer System Fund
accounts for the activities of the water and sewer system. The City operates the sewage treatment plant,
sewage pumping stations and collection systems, and the water distribution system.
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CITY OF HATTIESBURG, MISSISSIPPI
NOTES TO THE FINANCIAL STATEMENTS
PAGE FOUR
YEAR ENDED SEPTEMBER 30, 2023
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont.)
Additionally, the City reports the following fund types:
GOVERNMENTAL FUND TYPES
Special Revenue Funds - These funds are used to account for and report the proceeds of specific
revenue sources that are restricted or committed to expenditure for specified purposes other than debt service
or capital projects.
Debt Service Funds - These funds are used to account for and report financial resources that are
restricted, committed, or assigned to expenditures for principal and interest on long-term debt.
Capital Project Funds - These funds are used to account for and report financial resources that are
restricted, committed, or assigned to expenditure for capital outlays, including the acquisition or construction
of capital facilities and other capital assets.
FIDUCIARY FUND TYPE
Custodial Funds - Custodial Funds are used to report fiduciary activities that are not held in a trust
or equivalent arrangement that meet specific criteria.
Private sector standards of accounting and financial reporting issued prior to December 1, 1989,
generally are followed in both the government-wide and proprietary fund financial statements to the extent
that those standards do not conflict with or contradict guidance of the Governmental Accounting Standards
Board (GASB). Governments also have the option of following subsequent private-sector guidance for their
business-type activities and enterprise funds, subject to this same limitation. The government has elected not
to follow subsequent private-sector guidance.
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 government’s water and sewer function and various other functions of the government. Elimination of
these charges would distort costs and program revenues reported for the various functions concerned.
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,
including special assessments. Internally dedicated resources are reported as general revenues rather than
program revenues. Likewise, general revenues include all taxes.
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CITY OF HATTIESBURG, MISSISSIPPI
NOTES TO THE FINANCIAL STATEMENTS
PAGE FIVE
YEAR ENDED SEPTEMBER 30, 2023
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont.)
The proprietary fund distinguishes operating revenues and expenses from nonoperating 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 water and sewer system enterprise fund are charges to customers for sales and services. The water
and sewer system also recognize as operating revenue the portion of tap fees intended to recover the cost of
connecting new customers to the system. Operating expenses for 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 nonoperating revenues and expenses.
When both restricted and unrestricted resources are available for use, it is the government’s policy to
use restricted resources first, then unrestricted resources as they are needed.
E. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund Balance
Deposits and Investments
The government’s cash and cash equivalents are considered to be cash on hand, demand deposits,
and short-term investments with original maturities of three months or less from the date of acquisition.
State statutes authorize the City to invest in (1) direct obligations of the United States government to
the payment of which the full faith and credit of the United States government is pledged, (2) certificates of
deposit when insured or secured by acceptable collateral, and (3) obligations of the State of Mississippi, or
any county, municipality or school district of the State of Mississippi which have been approved by a reputable
bond attorney and have been validated by decree of the chancery court. Investments for the City and its
component unit are reported at fair value.
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CITY OF HATTIESBURG, MISSISSIPPI
NOTES TO THE FINANCIAL STATEMENTS
PAGE SIX
YEAR ENDED SEPTEMBER 30, 2023
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont.)
Interfund Transactions and Balances
Transactions between funds that are representative of short-term lending/borrowing arrangements
and transactions that have not resulted in the actual transfer of cash at the end of the fiscal year are referred
to as “due to/from other funds”. Noncurrent portions of interfund receivables and payables are reported as
“advances to/from other funds”. Advances between funds, as reported in the fund financial statements, are
offset by a nonspendable fund balance account in the General Fund to indicate that they are not available for
appropriation and are not expendable available financial resources. Interfund receivables and payables
between funds within governmental activities are eliminated in the statement of net position. Any outstanding
balances between the governmental activities and business-type activities are reported in the government-
wide financial statements as “internal balances”.
Receivables
All receivables for sales taxes and property taxes are considered collectible; therefore no reduction
has been made for an allowance for these receivables. Fees paid in lieu of ad valorem taxes pursuant to
separate agreements are recognized when collected or when probability of receipt is reasonably certain.
Fines receivable is reported net of allowance for uncollectible accounts at September 30, 2023. Credits
against fines are applied for any jail time served, community service, or electronic monitoring. Since any such
credits are not known until actual events occur, the amounts of those credits cannot be reasonably estimated
before they are earned. Therefore, future credits to be applied against existing fines receivable are not
estimated or reflected in the City’s financial statements.
Customer accounts receivable in the enterprise fund are attributable to unpaid balances at year-end
for charges for services and are netted with an allowance for doubtful accounts. The City estimates the
allowance for doubtful water and sewer account balances based upon a review of outstanding balances and
status of customer accounts and upon consideration of historical collection trends and other factors.
Property taxes are levied annually for the upcoming fiscal year beginning October 1
st
on property
values assessed as of the previous January 1
st
. Such levy, which establishes a lien against the underlying
property, is made by the City Council in September before the beginning of the fiscal year. Property taxes are
recognized in the year for which they are levied. Property tax statements on real property are typically mailed
in December each year, with the taxes due annually on February 1
st
. All taxes are collected and remitted to
the City on a monthly basis by Forrest and Lamar County governments. Delinquent tax payments, received
throughout the year, are recognized as revenue in the year received. Property with delinquent taxes as of
August is subject to sale for collection of such taxes. Property taxes on vehicles are assessed annually and
become due throughout the year based upon the month of acquisition.
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CITY OF HATTIESBURG, MISSISSIPPI
NOTES TO THE FINANCIAL STATEMENTS
PAGE SEVEN
YEAR ENDED SEPTEMBER 30, 2023
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont.)
Inventories and Prepaid Items
All inventories are valued at cost, which approximates market, using the first-in/first-out method.
Inventories of governmental funds are recorded as expenditures when consumed rather than when
purchased.
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded
as prepaid items in both government-wide and fund financial statements.
Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads,
bridges, street lights, sewer and water lines, and similar items), are reported in the applicable governmental
or business-type activities columns in the government-wide financial statements. Capital assets are defined
by the government 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 estimated fair market value at the date of donation.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially
extend assets lives are not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are constructed.
Property, plant, equipment, and infrastructure of the primary government, as well as the component
unit, is depreciated using the straight-line method over the following estimated useful lives:
Buildings and improvements
20 – 50 years
Infrastructure
10 – 50 years
Machinery and equipment
3 – 15 years
Intangible right-to-use assets
**
** Intangible assets for the City represent right-to-use leased assets and are capitalized as a group
for reporting purposes. The estimated useful life is the term of the lease agreement. There is no mandated
maximum amortization period. Intangible assets with indefinite useful lives are not amortized.
The term “depreciation” includes the amortization of intangible assets.
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- 52 -
CITY OF HATTIESBURG, MISSISSIPPI
NOTES TO THE FINANCIAL STATEMENTS
PAGE EIGHT
YEAR ENDED SEPTEMBER 30, 2023
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont.)
Pensions
For purposes of measuring the net pension liability, deferred outflows of resources and deferred
inflows of resources related to pensions, pension expense, information about the fiduciary net position of the
City’s pension plans and additions to/deductions from the plan’s net position have been determined on the
same basis as they are reported by Public Employees’ Retirement System of Mississippi. For this purpose,
benefit payments (including refunds of employee contributions) are recognized when due and payable in
accordance with the benefit terms. Investments are reported at fair value.
Deferred Outflows/Inflows of Resources
Deferred outflows of resources are a separate financial statement element that represents a
consumption of net position that applies to a future period and so will not be recognized as an outflow of
resources (expense/expenditure) until then. The City reports prepaid insurance on the Water and Sewer
Revenue Bonds in the government-wide and the proprietary statements of net position as a deferred outflow
of resources. Bond insurance paid from debt proceeds as a credit enhancement feature with the bonds is
deferred and amortized over the life of the bonds. In addition, deferred outflows include amounts related to
pensions and other postemployment benefits, including contributions subsequent to the measurement date
of the actuarial valuations for the plans.
Deferred inflows of resources are a separate financial statement element that represents an
acquisition of net position or fund balance that applies to a future period and so will not be recognized as an
inflow of resources (revenue) until that time. The governmental funds report unavailable revenues from
grants, leases and special assessments which are deferred and recognized as an inflow of resources in the
period that the amounts become available. Both the government-wide statements and governmental funds
report property taxes levied for the subsequent year, which are deferred and recognized as an inflow of
resources in the period for which they are levied. The government-wide statements report unavailable
revenues from other postemployment benefits, contracts, leases and grants, in addition to special event
revenue from its’ component unit, which are deferred and recognized as inflows of resources in the period
that the amounts become available. The government-wide statements also reflect pension related items
resulting from the difference between estimated and actual return on pension plan investments, which are
being amortized over a four-year period using the straight-line method.
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- 53 -
CITY OF HATTIESBURG, MISSISSIPPI
NOTES TO THE FINANCIAL STATEMENTS
PAGE NINE
YEAR ENDED SEPTEMBER 30, 2023
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont.)
Compensated Absences
It is the City’s policy to permit employees to accumulate earned but unused vacation, sick pay,
overtime, and holiday pay benefits. There is no liability for unpaid accumulated sick leave since the City does
not have a policy to pay any amounts when employees separate from service with the government. All
vacation, overtime, and holiday pay is accrued when incurred in the government-wide financial statements
and in the proprietary fund financial statements. A liability for these amounts is reported in governmental
funds only if they are expected to be paid from current resources, for example, as a result of employee
resignations and retirements, based on management’s estimates.
Leases
The City’s incremental borrowing rate is determined using the daily treasury rate that is in effect at
the start of the lease adjusted by 1.00% based on the quality of the City’s credit. This rate is used to calculate
the present value of lease payments when the rate implicit in the lease is not known.
Long-Term Obligations
In the government-wide financial statements and the proprietary 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 statement of net position. Bond discounts and premiums are
amortized over the life of the related bonds. Bond issuance costs, other than prepaid insurance costs, are
recognized as expenses in the period incurred. Prepaid insurance costs are reported as an asset and are
recognized as expenses over the duration of the related debt.
Governmental fund types recognize bond premiums and discounts during the current period. The
face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are
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.
Subscription-Based Information Technology Arrangements
The Governmental Accounting Standards Board (GASB) issued Statement No. 96 Subscription-
Based Information Technology Arrangements (SBITAs) (GASB 96) to establish uniform accounting and
financial reporting requirements for SBITAs, to improve comparability of financial statements among
governments that have entered into SBITAs, and to enhance understandability, relatability, relevance and
consistency of information about SBITAs.
- 54 -
CITY OF HATTIESBURG, MISSISSIPPI
NOTES TO THE FINANCIAL STATEMENTS
PAGE TEN
YEAR ENDED SEPTEMBER 30, 2023
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont.)
Net Position
The government-wide statement of net position presents financial information on all of the City’s
assets, liabilities, and deferred inflows/outflows of resources, with the difference reported as net position. Net
position invested in capital assets, net of related debt, consists of capital assets, net of accumulated
depreciation, reduced by the outstanding balances of any borrowing used for the acquisition, construction or
improvements of those assets, and adding back any unspent proceeds. Net position is reported as restricted
when there are limitations imposed on their use either through enabling creditors, grantors, or laws or
regulations of other governments.
Fund Balance Policies
The City provides fund balance categories to report the nature and extent of the constraints placed
on the government’s fund balances. The following classifications describe the relative strength of the
spending constraints placed on the purposes for which resources can be used:
•
Nonspendable fund balance - amounts that are not in spendable form, such as inventories and
prepaid items, or are legally or contractually required to remain intact.
•
Restricted fund balance - amounts constrained to specific purposes by their providers (such as
grantors, bondholders, and higher levels of government) through constitutional provisions, or by
enabling legislation.
•
Committed fund balance - amounts that can only be used for specific purposes pursuant to constraints
imposed by formal action of the City Council, the government’s highest level of decision-making
authority.
•
Assigned fund balance - amounts a government intends to use for a specific purpose; intent can be
expressed by the governing body or official to which the governing body has delegated the authority
to assign amounts to be used for specific purposes.
•
Unassigned fund balance - residual amounts that are available for any purpose; positive amounts are
reported only in the general fund.
The City Council, the City’s highest level of decision-making authority, establishes, modifies, or
rescinds fund balance commitments by passage of resolutions that also establish the City’s spending policy,
which prescribes that restricted fund balance amounts are to be spent first, followed by committed, assigned,
and lastly, unassigned fund balances.
The City does not have a formal minimum fund balance policy but transfers resources among funds
as necessary to address any deficiencies at the fund level.
- 55 -
CITY OF HATTIESBURG, MISSISSIPPI
NOTES TO THE FINANCIAL STATEMENTS
PAGE ELEVEN
YEAR ENDED SEPTEMBER 30, 2023
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont.)
F. Budgets and Budgetary Accounting
The City’s procedures for establishing its budget and for reporting budgetary data reflected in the
financial statements are as follows:
1. In August, the City’s Chief Financial Officer submits to the City Council a proposed operating
budget for the fiscal year commencing the following October 1. The operating budget
includes proposed expenditures and the means of financing them.
2. Prior to September 15, the budget is legally enacted through the passage of an ordinance by
the City Council. The budget may be subsequently amended by action of the City Council.
3. The City’s Chief Financial Officer is authorized to transfer budgeted amounts within
departments within the published expenditure categories; however, any revisions that alter
the total expenditures of any fund must be approved by the City Council.
4. All funds, with the exception of Fiduciary Funds, are budgeted, including the General Fund,
Special Revenue Funds, Debt Service Funds, Capital Projects Funds, and Proprietary
Funds. These budgets are prepared on a cash basis, modified for encumbrances for goods
and services which have not been received.
Each fund's appropriated budget is prepared on a detailed line item basis. Revenues are budgeted
by source. Pursuant to the Mississippi State Department of Audit's prescribed format, expenditures are
budgeted by department and class as follows: personal services, supplies, other services and charges, capital
outlays, transfers, and debt service. This constitutes the legal level of control. Expenditures may not exceed
appropriations at this level. All budget revisions at this level are subject to final approval of the City Council.
Cumulative increases to departmental expenditures in excess of 10.00% must also be published in the local
newspaper.
Encumbrances arise from the issuance of purchase orders, which must be within the adopted
budgetary limits. Encumbrances are recorded when purchase orders are issued but are not considered
expenditures until liabilities for payments are incurred upon receipt of goods or services. Encumbrances do
not lapse at the close of the fiscal year but are carried forward. If necessary, subsequent year budgets are
amended to cover prior year encumbrances.
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- 56 -
CITY OF HATTIESBURG, MISSISSIPPI
NOTES TO FINANCIAL STATEMENTS
PAGE TWELVE
YEAR ENDED SEPTEMBER 30, 2023
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont.)
G. 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. This affects the
reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the
financial statements, and the reported amounts of revenues and expenditures/expenses during the reporting
period. Actual results could differ from these estimates. Significant estimates which could change in the near-
term include collectible portions of receivables from property taxes levied but not yet due, the allowance for
doubtful Water and Sewer customer accounts receivable, the net collectible amounts of Municipal Court fines
receivable, claims liabilities for the employee health insurance plan, useful lives of capital assets, and liabilities
for pension and other post-employment benefits. In addition, long-term and current portions of compensated
absences are based on estimates and assumptions relating to when earned compensated absences will be
paid. Actual results may differ from these estimates.
H. Change in Accounting Standard
GASB Statement No. 96, Subscription-Based Information Technology Arrangements (SBITAs), was
implemented during fiscal year 2023. Prior to the issuance of this statement there was no accounting or
financial reporting guidance specifically for SBITAs. The purpose of this statement is to establish uniform
accounting and financial reporting requirements for SBITAs, to improve comparability of financial statements
among governments that have entered into SBITAs, and to enhance understandability, relatability, relevance
and consistency of information about SBITAs.
NOTE 2 - PRIOR PERIOD ADJUSTMENT
A summary of the prior period adjustment reflected on the City’s financial statements is presented
below:
Exhibit B (Business-Type Activities) and Exhibit F Amount
Correction of Error:
To correct posting of prior year activity in the current year (430,993)$
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- 57 -
CITY OF HATTIESBURG, MISSISSIPPI
NOTES TO FINANCIAL STATEMENTS
PAGE THIRTEEN
YEAR ENDED SEPTEMBER 30, 2023
NOTE 3 - DEPOSITS
Deposits - The collateral for public entities’ deposits in financial institutions is held in the name of the
State Treasurer under a program established by the Mississippi State Legislature and is governed by Section
27-105-5, Mississippi Code of 1972 Annotated. Under this program, the entity’s funds are protected through
a collateral pool administered by the State Treasurer. Financial institutions holding deposits of public funds
must pledge securities as collateral against those deposits. In the event of failure of a financial institution,
securities pledged by that institution would be liquidated by the State Treasurer to replace the public deposits
not covered by the Federal Depository Insurance Corporation (FDIC).
The carrying amount of the City’s deposits with financial institutions and petty cash reported in the
government-wide statements was $70,561,628 (exclusive of cash with fiscal agents disclosed below). The
bank balance was $80,444,848. The City’s long standing, although not formally adopted, investment policy
is based upon all bank accounts being fully collateralized (using the procedures described above) and interest-
bearing with rates updated on a quarterly basis and benchmarked using verifiable appropriate federal funds
rates. Interest is calculated using average balances and recorded monthly.
Custodial Credit Risk - Deposits - Custodial credit risk is defined as the risk that, in the event of a
financial institutions failure, the government’s deposits may not be returned to it. The City does not have a
deposit policy for custodial credit risk. As of September 30, 2023, the City’s bank balance was not exposed
to custodial credit risk because deposits are covered by the State Treasurer collateral pool.
Cash with Fiscal Agents - The carrying amount of the City’s cash with fiscal agents held by financial
institutions was $22,599,946.
Interest Rate Risk - The City does not have a formal investment policy that limits investment maturities
as a means of managing its exposure to fair value losses arising from increasing interest rates.
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- 58 -
CITY OF HATTIESBURG, MISSISSIPPI
NOTES TO FINANCIAL STATEMENTS
PAGE FOURTEEN
YEAR ENDED SEPTEMBER 30, 2023
NOTE 4 - CAPITAL ASSETS
Capital asset activity for the year ended September 30, 2023, was as follows:
Beginning
Balance
Additions Retirements Ending Balance
Governmental Activities:
Capital assets not being depreciated:
Land 31,006,098$ 267,501$ (695,000)$ 30,578,599$
Construction in progress 16,598,299 34,324,873 (11,486,870) 39,436,302
Total capital assets not being depreciated 47,604,397 34,592,374 (12,181,870) 70,014,901
Capital assets being depreciated:
Buildings and improvements 104,784,736 885,939 - 105,670,675
Machinery and equipment 39,938,174 5,180,748 (546,811) 44,572,111
Infrastructure 173,012,012 11,388,691 - 184,400,703
Total capital assets being depreciated 317,734,922 17,455,378 (546,811) 334,643,489
Less accumulated depreciation for:
Buildings and improvements 37,430,895 3,641,792 - 41,072,687
Machinery and equipment 35,778,204 1,251,433 (546,811) 36,482,826
Infrastructure 110,790,997 4,649,646 - 115,440,643
Total accumulated depreciation 184,000,096 9,542,871 (546,811) 192,996,156
Total capital assets being depreciated, net 133,734,826 7,912,507 - 141,647,333
Governmental activities capital assets, net 181,339,223$ 42,504,881$ (12,181,870)$ 211,662,234
Lease and SBITA assets, net 5,780,973
Total capital assets, net as reported in the statement of net position
217,443,207$
Primary Government
- 59 -
CITY OF HATTIESBURG, MISSISSIPPI
NOTES TO FINANCIAL STATEMENTS
PAGE FIFTEEN
YEAR ENDED SEPTEMBER 30, 2023
NOTE 4 - CAPITAL ASSETS (Cont.)
Beginning
Balance
Additions Retirements Ending Balance
Business-type Activities:
Capital assets not being depreciated:
Land 358,164$ -$ -$ 358,164$
Construction in progress 609,274 5,673,103 (3,322,398) 2,959,979
Total capital assets not being depreciated 967,438 5,673,103 (3,322,398) 3,318,143
Capital assets being depreciated:
Buildings and improvements 478,071 - - 478,071
Machinery and equipment 10,228,774 185,837 - 10,414,611
Infrastructure 169,722,612 3,322,398 - 173,045,010
Total capital assets being depreciated 180,429,457 3,508,235 - 183,937,692
Less accumulated depreciation for:
Buildings and improvements 344,275 8,599 - 352,874
Machinery and equipment 9,365,110 208,717 - 9,573,827
Infrastructure 49,832,316 4,360,346 - 54,192,662
Total accumulated depreciation 59,541,701 4,577,662 - 64,119,363
Total capital assets being depreciated, net 120,887,756 (1,069,427) - 119,818,329
Business-type activities capital assets, net 121,855,194$ 4,603,676$ (3,322,398)$ 123,136,472$
Primary Government
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- 60 -
CITY OF HATTIESBURG, MISSISSIPPI
NOTES TO FINANCIAL STATEMENTS
PAGE SIXTEEN
YEAR ENDED SEPTEMBER 30, 2023
NOTE 4 - CAPITAL ASSETS (Cont.)
Depreciation expense was charged to the functions/programs of the governmental activities of the
City as follows:
Governmental Activities:
211,879$
1,866,344
4,970,403
616,275
734,356
1,143,614
Total depreciation expense - governmental activities 9,542,871$
Culture and recreation
General government
Public safety
Public services – which includes the depreciation of infrastructure assets
Other services
Mass transit
NOTE 5 - INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS
Balances due to/from various City funds at September 30, 2023, consist of the following:
Receivable Fund Payable Fund Amount
General fund Municipal road and bridge fund 2,170,000$
General fund Nonmajor governmental funds
583,500
Nonmajor governmental funds General fund
579
Nonmajor governmental funds Combined Water and Sewer System 331
Total 2,754,410$
The outstanding balances between funds result mainly from the time lag between the dates that
goods and services are provided or reimbursable expenditures occur and satisfaction of those amounts.
These balances are expected to be collected within one year.
Advances to/from other funds at September 30, 2023, consist of the following:
Receivable Fund Payable Fund Amount
General fund Nonmajor governmental fund 500,000$
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- 61 -
CITY OF HATTIESBURG, MISSISSIPPI
NOTES TO FINANCIAL STATEMENTS
PAGE SEVENTEEN
YEAR ENDED SEPTEMBER 30, 2023
NOTE 5 - INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS (Cont.)
The amount payable to the General Fund is attributable to working capital loans made to the
Community Development Block Grant Fund. None of the balance shown is scheduled to be collected in the
subsequent year.
The composition of interfund transfers for the year ended September 30, 2023, is as follows:
Transfers In:
Transfers out: Other Governmental Funds
General fund 3,092,495$
Combined water and sewer system 824,000
Total 3,916,495$
Interfund transfers are authorized components of the budget and are typically used to (1) move
revenues from the fund that statute or budget requires to collect them to the fund that statute or budget
requires to expend them, (2) move receipts restricted to debt service from the fund collecting the receipts to
the debt service fund as debt service payments become due, and (3) use unrestricted revenues collected in
the general fund to finance various programs accounted for in other funds in accordance with budgetary
authorizations.
NOTE 6 - AD VALOREM TAXES LEVIED FOR OTHER GOVERNMENTAL ENTITIES
Section 35-57-1 et seq., Mississippi Code of 1972 Annotated, requires that the City levy and collect
all taxes for and on behalf of the municipal separate school district. Section 39-3-7, Mississippi Code of 1972
Annotated, authorizes the City to levy and collect a tax not in excess of three mills for the support of any public
library system located within the municipality.
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CITY OF HATTIESBURG, MISSISSIPPI
NOTES TO FINANCIAL STATEMENTS
PAGE EIGHTEEN
YEAR ENDED SEPTEMBER 30, 2023
NOTE 6 - AD VALOREM TAXES LEVIED FOR OTHER GOVERNMENTAL ENTITIES (Cont.)
For the fiscal year 2023, the following ad valorem tax levies were made in accordance with the
applicable statutory requirements and authorizations:
Entity/Purpose of Levy
Applicable
State Law
Mills
Levied
School District:
Operational Support 37-57-105 58.33
School Bonded Indebtedness 37-59-23 7.75
Library (support, upkeep and maintenance of
Hattiesburg Public Library System) 39-3-7 1.95
NOTE 7 - CLAIMS AND JUDGMENTS
Self-Funded Health Insurance Program - The City provides employee health and accident
coverage through a self-insurance program that utilizes a plan administrator as its claims-servicing
organization, with the City retaining the risk of loss on all claims to which the City is exposed. Premium
payments into the plan are established as a part of the City’s budgetary process and upon consideration of
actuarial recommendations provided by the plan administrator. The City has opted to set premium rates for
individual and family coverage at somewhat lower levels than those recommended. Therefore, additional
costs not expected to be covered by premiums are separately budgeted in individual funds in which related
payroll costs are incurred. When necessary, based upon the claims paid during the fiscal year, the City makes
supplemental transfers from payroll budgets of various funds into separate self-insurance fund accounts,
which are included in the general fund for financial reporting purposes.
To limit its exposure to risk under this self-insured program, the City maintains reinsurance which
provides two separate stop loss coverages: specific and aggregate. These coverages are provided by an
outside commercial carrier. For fiscal year 2023, the specific coverage begins when an individual participant’s
claim exceeds $125,000, with unlimited maximum benefit per covered person. The aggregate policy covers
all submitted claims in excess of the minimum aggregate deductible, which is the greater of $5,573,666 or
95% of the annualized first monthly aggregate deductible. Maximum covered expenses of $125,000 per
covered person accumulate toward the unlimited maximum aggregate benefit.
(This Space Intentionally Left Blank)
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CITY OF HATTIESBURG, MISSISSIPPI
NOTES TO FINANCIAL STATEMENTS
PAGE NINETEEN
YEAR ENDED SEPTEMBER 30, 2023
NOTE 7 - CLAIMS AND JUDGMENTS (Cont.)
Claims expenses and liabilities are reported when it is probable that a loss has occurred and the
amount of that loss can be reasonably estimated. Liabilities include an amount for claims that have been
incurred but not reported (IBNRs). The following table provides changes in the balances of claims liabilities
for fiscal year 2023:
Unpaid claims, beginning of fiscal year 372,316$
Plus: Incurred claims (including IBNRs) 4,126,518
Less: Claims payments (4,247,074)
Unpaid claims, end of fiscal year 251,760$
Cash on deposit in the Group Insurance Fund at September 30, 2023 was $562,714. Based on the
above project of net unpaid claims in excess of cash on deposit, interfund receivables were established from
the respective operating funds at September 30, 2023.
Kohler Tax Exemption Judgment - Pursuant to the settlement and mutual release, effective
January 31, 2019, the City agreed to pay Kohler Company $599,250 in tax refunds over a period of 10 years.
Installments of $50,000 are due December 31 of each year. These payments may be processed as either
cash settlements or ad valorem tax credits each year at the option of the City. See Note 9 for additional
information related to the payment schedule.
NOTE 8 - INTANGIBLE RIGHT-TO-USE LEASES AND SUBSCRIPTION BASED IT ASSETS
A summary of lease and SBITA assets activity during the year ended September 30, 2023 is as follows:
Balance Balance
October 1, 2022 Additions September 30, 2023
Lease assets:
Equipment 6,243,456$ -$ 6,243,456$
Land 215,725 - 215,725
Property 185,349 - 185,349
Total lease assets 6,644,530 - 6,644,530
(Table Continued on Next Page)
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CITY OF HATTIESBURG, MISSISSIPPI
NOTES TO FINANCIAL STATEMENTS
PAGE TWENTY
YEAR ENDED SEPTEMBER 30, 2023
NOTE 8 - INTANGIBLE RIGHT-TO-USE LEASES AND SUBSCRIPTION BASED IT ASSETS (Cont.)
Balance Balance
October 1, 2022 Additions September 30, 2023
Less accumulated amortization for:
Lease assets:
Equipment 458,699$ 469,382$ 928,081$
Land 3,935 3,174 7,109
Property 1,038 4,329 5,367
Total accumulated amortization 463,672 476,885 940,557
Total lease assets, net 6,180,858 (476,885) 5,703,973
SBITA assets - 115,500 115,500
Less accumulated amortization - 38,500 38,500
SBITA assets, net - 77,000 77,000
Total lease and SBITA assets, net 6,180,858$ (553,885)$ 5,780,973$
A summary of lease and subscription IT liabilities during the year ended September 30, 2023 is as follows:
Balance Balance
October 1, 2022 Additions Deductions September 30, 2023
Lease payable 6,180,858$ -$ 476,885$ 5,703,973$
SBITA payable - 115,500 38,500 77,000
Total 6,180,858$ 115,500$ 515,385$ 5,780,973$
Leases
The City is a lessee for various non-cancellable leases of equipment, land and property. For leases
that have a maximum possible term of 12 months or less at commencement, the City recognizes expense
based on the provisions of the lease contract. For all other leases, other than short-term, the City recognized
a lease liability and an intangible right-to-use lease asset.
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CITY OF HATTIESBURG, MISSISSIPPI
NOTES TO FINANCIAL STATEMENTS
PAGE TWENTY-ONE
YEAR ENDED SEPTEMBER 30, 2023
NOTE 8 - INTANGIBLE RIGHT-TO-USE LEASES AND SUBSCRIPTION BASED IT ASSETS (Cont.)
At lease commencement, the City initially measures the lease liability at the present value of
payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the
principal portion of lease payments made. The lease asset is initially measured as the initial amount of the
lease liability, less lease payments made at or before the lease commencement date, plus any initial direct
costs ancillary to placing the underlying asset into service, less any lease incentives received at or before the
lease commencement date. Subsequently, the lease asset is amortized in amortization expense on an
effective interest rate method over the shorter of the lease term or the useful life of the underlying asset.
The City generally uses its incremental borrowing rate as the discount rate for leases unless the rate
that the lessor charges is known. The City’s incremental borrowing rate is determined using the daily treasury
rate that is in effect at the start of the lease adjusted by 1.00% based on the quality of the City’s credit.
The lease term includes the non-cancellable period of the lease plus any additional periods covered
by either the City or lessor option to extend for which it is reasonably certain to be exercised or terminate for
which it is reasonably certain to not be exercised. Periods in which both the City and the lessor have a
unilateral option to terminate (or if both parties have to agree to extend) are excluded from the lease term.
As lessee:
The City had outstanding lease liabilities at September 30, 2023 with the following terms:
Discount Issue Maturity Monthly Amount
Rate Term Date Date Payment Outstanding
Equipment 1.71% - 2.58% 48-192 months Various Various 295,429$ A 5,315,375$
Land 3.04% 40 years 10/1/2021 8/13/2059 9,613 B 208,616
Property 4.20% 25 years 6/1/2022 6/01/2047 1,000 C 179,982
Total 5,703,973$
The lease agreements can only be cancelled if both parties agree. There are no options to extend the leases.
A. One of these leases includes a payment escalation that occurs every February 4th throughout
the lease term. The other leases contain fixed payment amounts.
B. This lease contains a variable payment adjustment based on the Consumer Price Index.
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CITY OF HATTIESBURG, MISSISSIPPI
NOTES TO FINANCIAL STATEMENTS
PAGE TWENTY-TWO
YEAR ENDED SEPTEMBER 30, 2023
NOTE 8 - INTANGIBLE RIGHT-TO-USE LEASES AND SUBSCRIPTION BASED IT ASSETS (Cont.)
C. This lease contains a variable payment adjustment that will be made upon completion of the
project based on an appraisal of the property and this amount will remain in effect for the
remaining first five-year term. A new appraisal will be completed at the beginning of each new
five-year term to determine the lease payment for that period.
The following is a schedule by year of the total payments due:
Year Ending September 30,
Principal Interest
2024 494,888$ 147,355$
2025 517,168 134,508
2026 543,190 121,004
2027 574,655 106,727
2028 608,499 91,644
2029-2033 2,669,408 207,466
2034-2038 60,849 47,214
2039-2043 73,380 34,683
2044-2048 73,192 19,871
2049-2053 36,740 11,322
2054-2058 42,675 5,388
2059 9,329 284
Total 5,703,973$ 927,466$
As lessor:
On April 3, 2018, the City entered into a lease agreement with an aviation company for the use of the
facility owned by the City for the purpose of having access to the facility as a general fixed base operator.
The lease stipulated that the lessee would pay approximately $1,510 per month in lease payments expiring
April 3, 2033, with an option to extend the lease for an additional five-year term, for a term of 20 years. Variable
payments above the base amount are not included in the measurement of the lease receivable. The City is
to receive $18,120 in rent annually with an implicit interest rate of 2.99%.
(This Space Intentionally Left Blank)
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CITY OF HATTIESBURG, MISSISSIPPI
NOTES TO FINANCIAL STATEMENTS
PAGE TWENTY-THREE
YEAR ENDED SEPTEMBER 30, 2023
NOTE 8 - INTANGIBLE RIGHT-TO-USE LEASES AND SUBSCRIPTION BASED IT ASSETS (Cont.)
Remaining amounts to be received associated with this lease are as follows:
Year Ending September 30,
Principal Interest
2024 11,863$ 6,257$
2025 12,240 5,880
2026 12,612 5,508
2027 12,994 5,126
2028 13,375 4,744
2029-2033 73,281 17,319
2034-2038 77,514 5,536
Total 213,879$ 50,370$
SBITA Payable
On February 8, 2022, the City entered into a software subscription agreement with Environmental
Systems Research Institute (ESRI), a software company for the use of ESRI term license software. The
software terms stipulated that the City would pay approximately $38,500 annually in software subscription
payments expiring February 8, 2025.
Year Ending September 30,
Principal Interest
2024 34,455$ 4,045$
2025 42,545 2,241
Total 77,000$ 6,286$
(This Space Intentionally Left Blank)
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CITY OF HATTIESBURG, MISSISSIPPI
NOTES TO FINANCIAL STATEMENTS
PAGE TWENTY-FOUR
YEAR ENDED SEPTEMBER 30, 2023
NOTE 9 - LONG-TERM LIABILITIES
General Obligation Bonds
The City issues general obligation bonds to provide funds for the acquisition and construction of major
capital facilities. General obligation bonds are direct obligations and pledge the full faith and credit of the City
and have been issued for both governmental and business-type activities. The City has no special
assessment bonds at September 30, 2023. Bonds are generally issued as serial bonds with essentially level
principal and interest payments maturing each year with maturities that range from 5 to 30 years. Upon
default, the Trustee shall notify the owners of all bonds then outstanding of such event of default by registered
or certified mail, may pursue any available remedy at law or in equity or by stature to enforce the payment of
principal of and interest on the bonds outstanding, and may declare the principal of and accrued interest on
all bonds to be due and payable immediately.
General obligation bonds outstanding at September 30, 2023 are as follows:
General Obligation Bonds
Interest
Sale Original Rates to Final Outstanding
Governmental Activities: Date Borrowing Maturity Maturity 9/30/23
Public Improvements 2019 29,850,000$ 3.00 - 5.25% 2049 29,850,000$
Public Improvements 2020 15,150,000 3.00 - 4.00% 2050 15,150,000
Public Improvements 2022 5,500,000 3.75% 2027 5,500,000
Total 50,500,000$
Business-type Activities:
Public Improvements 2011 3,600,000$ 2.60 - 3.70% 2031 1,630,000$
Public Improvements 2016 4,605,000 2.00 - 3.00% 2024 380,000
Total 2,010,000$
(This Space Intentionally Left Blank)
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CITY OF HATTIESBURG, MISSISSIPPI
NOTES TO FINANCIAL STATEMENTS
PAGE TWENTY-FIVE
YEAR ENDED SEPTEMBER 30, 2023
NOTE 9 - LONG-TERM LIABILITIES (Cont.)
Limited Obligation Tax Increment Financing Bonds
Tax increment financing (TIF) bonds are issued by the City to provide funds for the acquisition and
construction of infrastructure and related improvements in conjunction with commercial development projects.
Bonds are generally issued as serial bonds with essentially level principal and interest payments with
maturities that range from 10 to 20 years. These bonds are secured by the payment of the incremental
increase in City property taxes from each project’s TIF taxing district as authorized under the TIF plan
document approved by the governing authorities. These bonds may also be secured by county participation
as authorized by executed interlocal agreements pledging incremental increase in county property taxes in
the TIF taxing district. The City’s obligation is limited to the increase in taxes provided by improvements in
the taxing district.
Limited obligation TIF bonds outstanding at September 30, 2023 are as follows:
Limited Obligation TIF Bonds
Interest
Sale Original Rates to Final Outstanding
Governmental Activities: Date Borrowing Maturity Maturity 9/30/23
Chauvet Square 2007 1,400,000$ 4.50% 2027 690,000$
Turtle Creek Crossing 2011 400,000 5.68% 2025 50,000
Southern Pointe 2014 2,600,000 4.85% 2029 1,260,000
Hattiesburg Clinic - Midtown Project 2015 845,000 3.90 - 4.00% 2031 514,000
Ridge at Turtle Creek 2016 1,225,000 5.50% 2031 770,000
Midtown Market 2016 210,000 5.50% 2031 133,000
Whispering Pines 2016 3,021,000 4.00 - 4.75% 2031 1,834,000
Turtle Creek Phase III 2019 750,000 5.50% 2028 455,000
Elam Arms 2020 3,215,000 4.15% 2035 2,718,000
Planet Fitness 2020 768,000 3.00% 2036 637,077
Total 9,061,077$
(This Space Intentionally Left Blank)
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CITY OF HATTIESBURG, MISSISSIPPI
NOTES TO FINANCIAL STATEMENTS
PAGE TWENTY-SIX
YEAR ENDED SEPTEMBER 30, 2023
NOTE 9 - LONG-TERM LIABILITIES (Cont.)
Certificates of Participation
In accordance with Section 31-8-1, et seq. Mississippi Code of 1972 Annotated, the City issued
Certificates of Participation and transferred the proceeds to the Southern Mississippi Investment Company,
Inc. (Corporation). The funds were used to construct a City Public Safety Complex, including renovations of
an existing building to be used as a multi-purpose building and a Parks and Recreation administration building.
At completion, the Corporation entered into a 20 year agreement with the City, with the City being
obligated to make payments to the Corporation equal to the principal and interest payments on the debt.
When the debt is paid, the City will assume ownership of the facilities. The obligation is not a general
obligation and does not constitute a pledge of full faith and credit of the City. Upon default, the City will be
liable for, any deficiency resulting from said reletting of the Project or sale of the Improvements, or from the
continuation of this Lease by the Lessor, beyond the amount of the specific appropriation, if any, by the City
for the Project for the Fiscal Year in which the default occurred reduced by the amount of said current and
specific appropriation disbursed by the City in accordance with the terms of this Lease and the Trust
Agreement.
There is an unamortized premium of $171,043 which is not included in the principal in the following
schedule:
Certificates of Participation
Interest
Sale Original Rates to Final Outstanding
Governmental Activities: Date Borrowing Maturity Maturity 9/30/23
Certificates of Participation 2016 5,300,000$ 3.00 - 5.00% 2036 4,125,000$
Economic Development Limited Obligation Bonds
The City also has issued limited obligation debt for economic development purposes that is repaid
from revenues pledged under the terms of the respective contractual agreements made pursuant to the
authorization for these projects by the governing authorities. Thus, future revenues are pledged in the amount
of future debt service requirements. These limited obligation bonds and notes are generally issued with
essentially level annual principal and interest payments with a maturity of 10 years.
(This Space Intentionally Left Blank)
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CITY OF HATTIESBURG, MISSISSIPPI
NOTES TO FINANCIAL STATEMENTS
PAGE TWENTY-SEVEN
YEAR ENDED SEPTEMBER 30, 2023
NOTE 9 - LONG-TERM LIABILITIES (Cont.)
Limited obligation bonds and notes outstanding at September 30, 2023 are as follows:
Economic Development Limited Obligation Bonds
Interest
Sale Original Rates to Final Outstanding
Governmental Activities: Date Borrowing Maturity Maturity 9/30/23
MDB Limited Obligation Bonds 2009 2,937,000$ 2.90 - 6.00%* 2030 91,645$
*Variable rate for MDB debt is adjusted weekly using the SIFMA Muni-Index plus 1.20%.
Notes from Direct Borrowings and Direct Placements
The City issues notes to provide funds for the acquisition and construction of major capital facilities.
These notes from direct borrowings and direct placements are direct obligations and pledge the full faith and
credit of the City and have been issued for governmental activities. Notes from direct borrowings and direct
placements are generally issued with a five-year maturity. The City has no anticipation notes at September
30, 2023. Upon default, the notes from direct borrowings and direct placements become immediately due in
full.
Notes from direct borrowings and direct placements outstanding at September 30, 2023 are as
follows:
Notes from Direct Borrowings/Direct Placements
Interest
Sale Original Rates to Final Outstanding
Governmental Activities: Date Borrowing Maturity Maturity 9/30/23
Fire truck 2018 439,502$ 2.83% 2025 108,930$
Public Improvements 2019 494,000 1.52% 2025 205,875
Public Improvements 2019 4,100,000 1.82% 2025 1,713,041
Total 2,027,846$
(This Space Intentionally Left Blank)
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CITY OF HATTIESBURG, MISSISSIPPI
NOTES TO FINANCIAL STATEMENTS
PAGE TWENTY-EIGHT
YEAR ENDED SEPTEMBER 30, 2023
NOTE 9 - LONG-TERM LIABILITIES (Cont.)
Business-type Activities (Water and Sewer) Revenue Bonds
In addition to water and sewer general obligation bonds, the City also issues water and sewer
revenue bonds to provide funds for the acquisition and construction of water and sewer system
infrastructure and related improvements and system rehabilitation. These bonds are secured by water and
sewer operating revenues and are subject to the requirements of the respective revenue bond documents.
These bond documents include important parity debt requirements with the issuance of each new series of
revenue bonds and require annual net revenue tests to be performed in accordance with the prescribed
calculations. Water and sewer rates are required to be adjusted if debt requirements are not met. Upon
default, the Trustee shall notify the owners of all bonds then outstanding of such event of default by
registered or certified mail, may pursue any available remedy at law or in equity or by stature to enforce the
payment of principal of and interest on the bonds outstanding, and may declare the principal of and accrued
interest on all bonds to be due and payable immediately.
Bonds are generally issued as serial bonds with essentially level principal and interest payments
maturing each year with maturities that range from 10 to 25 years. Revenue bonds outstanding at
September 30, 2023 are as follows:
Revenue Bonds
Interest
Sale Original Rates to Final Outstanding
Business-type Activities: Date Borrowing Maturity Maturity 9/30/23
W&S Revenue Project, Series 2012 2012 12,500,000$ 2.50 - 5.00% 2024 640,000$
W&S Refunding Bonds, Series 2013 2014 28,000,000 2.75 - 4.78% 2027 24,650,000
W&S Refunding Bonds, Series 2021 2021 38,402,000 0.95% - 2.50% 2038 37,257,000
Total 62,547,000$
(This Space Intentionally Left Blank)
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CITY OF HATTIESBURG, MISSISSIPPI
NOTES TO FINANCIAL STATEMENTS
PAGE TWENTY-NINE
YEAR ENDED SEPTEMBER 30, 2023
NOTE 9 - LONG-TERM LIABILITIES (Cont.)
State Revolving Loan Fund Notes
In addition to water and sewer revenue bonds, the City has utilized financing available under the
State of Mississippi Revolving Loan Fund (SRF) program to provide funds for qualified sewer projects.
Monthly principal and interest payments for the repayment of this note is deducted from the City’s monthly
sales tax diversion payments from the Mississippi Department of Revenue, with monthly reimbursements
to the City’s general fund being made from monthly operating sewer system revenues as authorized by the
City’s budget document. The SRF note outstanding at September 30, 2023 is as follows:
State Revolving Loan Funds
Interest
Sale Original Rates to Final Outstanding
Business-type Activities: Date Borrowing Maturity Maturity 09/30/23
SRF 2022 455,494$ 1.95% 7/1/2042 455,494$
Compensated Absences
Vested or accumulated vacation leave, holiday leave, and accrued overtime that is expected to be
liquidated with expendable available financial resources is reported as an expenditure and a fund liability of
the governmental fund that will pay it. Amounts of vested or accumulated vacation leave, holiday leave, and
accrued overtime that are not expected to be liquidated with expendable available financial resources are
reported as noncurrent liabilities. In accordance with the provisions of ASC 710-10-20, Compensation, no
liability is recorded for nonvesting accumulating rights to receive sick pay benefits.
Compensated absences at September 30, 2023 are as follows:
Governmental Business-Type Primary
Activities Activities Government
Accrued vacation pay 1,986,826$ 396,198$ 2,383,024$
Accrued overtime pay 11,141 660 11,801
Accrued holiday pay 88,302 - 88,302
Total 2,086,269$ 396,858$ 2,483,127$
(This Space Intentionally Left Blank)
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CITY OF HATTIESBURG, MISSISSIPPI
NOTES TO FINANCIAL STATEMENTS
PAGE THIRTY
YEAR ENDED SEPTEMBER 30, 2023
NOTE 9 - LONG-TERM LIABILITIES (Cont.)
Changes in Long-Term Liabilities
Changes in the City's long-term liabilities for the year ended September 30, 2023 are as follows:
Balance
Governmental Activities: September 30, 2022
Bonds and notes payable
General obligation bonds 45,000,000$
Unamortized premium on bonds 4,953,523
Limited obligation TIF bonds 10,093,039
Certificates of participation 4,345,000
Unamortized premium on certificates of participation 184,200
Economic development limited obligation bonds 113,208
Notes from direct borrowings and direct placements 3,006,231
Total bonds and notes payable 67,695,201
Compensated absences 2,038,070
Claims and judgments 449,250
Governmental activities long-term liabilities 70,182,521$
Business-type Activities:
Bonds and notes payable
General obligation bonds 2,860,000$
Revenue bonds 48,697,000
Unamortized premium on bonds 165,497
State revolving loan funds -
Total bonds and notes payable 51,722,497
Compensated absences 194,220
Business-type activities long-term liabilities 51,916,717$
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Balance Due Within
Additions Reductions Adjustments September 30, 2023 One Year
5,500,000$ -$ -$ 50,500,000$ 1,919,000$
- (187,148) - 4,766,375 187,148
- (1,031,962) - 9,061,077 1,023,049
- (220,000) - 4,125,000 230,000
- (13,157) - 171,043 13,158
- (21,563) - 91,645 21,563
- (978,385) - 2,027,846 1,012,712
5,500,000 (2,452,215) - 70,742,986 4,406,630
48,199 - - 2,086,269 319,986
- (64,178) - 385,072 64,178
5,548,199$ (2,516,393)$ -$ 73,214,327$ 4,790,794$
-$ (850,000)$ -$ 2,010,000$ 585,000$
- (4,900,000) 19,850,000 63,647,000 24,792,000
- (45,380) - 120,117 16,478
455,494 - - 455,494 40,321
455,494 (5,795,380) 19,850,000 66,232,611 25,433,799
202,638 - - 396,858 59,529
658,132$ (5,795,380)$ 19,850,000$ 66,629,469$ 25,493,328$
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CITY OF HATTIESBURG, MISSISSIPPI
NOTES TO FINANCIAL STATEMENTS
PAGE THIRTY-ONE
YEAR ENDED SEPTEMBER 30, 2023
NOTE 9 - LONG-TERM LIABILITIES (Cont.)
The debt service requirements for the City’s bonds and notes are as follows:
Governmental Activities:
Year Ending
September 30, Principal Interest Principal Interest
2024 1,919,000$ 2,248,848$ 1,023,049$ 397,344$
2025 1,990,000 2,065,826 1,062,370 350,753
2026 2,435,000 1,976,137 1,091,731 302,403
2027 2,521,000 1,877,532 1,138,133 252,965
2028 1,135,000 1,802,956 997,577 199,732
2029-2033 6,465,000 8,225,081 3,067,111 439,995
2034-2038 8,075,000 6,617,793 681,106 40,315
2039-2043 9,915,000 4,774,803 - -
2044-2048 12,280,000 2,409,075 - -
2049-2051 3,765,000 124,762 - -
Total 50,500,000$ 32,122,813$ 9,061,077$ 1,983,507$
Year Ending
September 30, Principal Interest Principal Interest
2024 230,000$ 178,700$ 21,563$ 1,742$
2025 240,000 171,650 21,563 1,567
2026 245,000 164,375 21,563 1,411
2027 260,000 154,200 21,563 1,270
2028 270,000 140,950 5,393 635
2029-2033 1,665,000 480,312 - -
2034-2036 1,215,000 83,363 - -
Total 4,125,000$ 1,373,550$ 91,645$ 6,625$
Certificates of Participation
G.O. Bonds
Limited Obligation TIF Bonds
Economic Development
Limited Obligation Bonds
(Table Continued on Next Page)
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CITY OF HATTIESBURG, MISSISSIPPI
NOTES TO FINANCIAL STATEMENTS
PAGE THIRTY-TWO
YEAR ENDED SEPTEMBER 30, 2023
NOTE 9 - LONG-TERM LIABILITIES (Cont.)
Year Ending
September 30, Principal Interest
2024 1,012,712$ 28,809$
2025 1,015,134 9,889
Total 2,027,846$ 38,698$
and Direct Placements
Notes from Direct Borrowings
Year Ending
September 30, Principal Interest Principal Interest
2024 64,178$ -$ 4,270,502$ 2,855,443$
2025 64,178 - 4,393,245 2,599,685
2026 64,178 - 3,857,472 2,444,326
2027 64,178 - 4,004,874 2,285,967
2028 64,178 - 2,472,148 2,144,273
2029-2033 64,182 - 11,261,293 9,145,388
2034-2038 - - 9,971,106 6,741,471
2039-2043 - - 9,915,000 4,774,803
2044-2048 - - 12,280,000 2,409,075
2049-2051 - - 3,765,000 124,762
Total 385,072$ -$ 66,190,640$ 35,525,193$
Activities
Claims and Judgments
Total Governmental
(Table Continued on Next Page)
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CITY OF HATTIESBURG, MISSISSIPPI
NOTES TO FINANCIAL STATEMENTS
PAGE THIRTY-THREE
YEAR ENDED SEPTEMBER 30, 2023
NOTE 9 - LONG-TERM LIABILITIES (Cont.)
Business-type Activities:
Year Ending
September 30, Principal Interest Principal Interest
2024 585,000$ 77,089$ 40,321$ 8,523$
2025 210,000 56,104 41,114 7,730
2026 220,000 44,459 41,923 6,921
2027 230,000 38,159 42,748 6,096
2028 245,000 24,429 43,589 5,255
2029-2033 520,000 25,384 231,151 13,068
2034-2038 - - 14,648 51
Total 2,010,000$ 265,624$ 455,494$ 47,644$
G.O. Bonds
State Revolving Loan Funds
Year Ending
September 30, Principal Interest Principal Interest
2024 24,792,000$ 1,290,106$ 25,418,114$ 1,374,925$
2025 5,080,000 749,235 5,331,923 812,260
2026 5,116,000 660,454 5,378,748 711,009
2027 2,304,000 590,859 2,577,589 634,273
2028 2,315,000 529,253 2,791,151 566,750
2029-2033 12,267,000 1,993,123 12,787,000 2,018,558
2034-2038 10,010,000 857,250 10,010,000 857,250
2039 1,763,000 22,038 1,763,000 22,038
Total 63,647,000$ 6,692,318$ 66,057,525$ 6,997,063$
Revenue Bonds
Total Business-type
Activities
During the year ended September 30, 2023, interest expense paid for governmental activities and
business-type activities totaled $2,948,926 and $1,915,151, respectively.
(This Space Intentionally Left Blank)
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CITY OF HATTIESBURG, MISSISSIPPI
NOTES TO FINANCIAL STATEMENTS
PAGE THIRTY-FOUR
YEAR ENDED SEPTEMBER 30, 2023
NOTE 10 - SCHEDULE OF STATUTORY DEBT LIMITATIONS
The City is subject to the limitations of indebtedness prescribed by Section 21-33-303, Mississippi
Code of 1972 Annotated. No municipality may issue bonds secured by a pledge of its full faith and credit in
an amount which, when added to the then outstanding bond indebtedness of such municipality, would exceed
the 15.00% and 20.00% tests prescribed in Section 21-33-303. These percentages are applied to the
assessed value of the taxable property within such municipality, with certain types of bond issues being
excluded from the authorized debt limit tests.
Presented in the schedule below are the calculations of the applicable statutory debt limitations as of
September 30, 2023:
15.00% Test 20.00% Test
Assessed value as of September 30, 2023
($534,960,585) times applicable percentage [a] 80,244,088$ 106,992,117$
Present debt subject to debt limits as of
September 30, 2023:
Total bonds and notes other than water and sewer 61,680,568 61,680,568
Less: Bonds exempt from debt limitation calculations (9,152,722) (9,152,722)
Add: Water & Sewer debt other than revenue bonds N/A 2,465,494
General obligation debt subject to applicable tests [b] 52,527,846 54,993,340
Margin for additional debt [a] minus [b] 27,716,242$ 51,998,777$
NOTE 11 - TAX ABATEMENTS
GASB Statement No. 77, Tax Abatement Disclosures, defines a tax abatement as a reduction in tax
revenues that results from an agreement between one or more governments and an individual or entity in
which (a) one or more governments promise to forgo tax revenues to which they would otherwise be entitled
and (b) the individual or entity promises to take a specific action after the agreement has been entered into
that contributes to economic development or otherwise benefits the government or citizens of those
governments.
The City negotiates property tax abatements on an individual basis. All abatements are for 5 and/or
10 years and are for economic development purposes. The City has one type of abatement, as follows:
(This Space Intentionally Left Blank)
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CITY OF HATTIESBURG, MISSISSIPPI
NOTES TO FINANCIAL STATEMENTS
PAGE THIRTY-FIVE
YEAR ENDED SEPTEMBER 30, 2023
NOTE 11 - TAX ABATEMENTS (Cont.)
Section 27-31-101 and 27-31-105, Mississippi Code of 1972 Annotated - All allowable tax levies
There are twenty-one companies that have tax abatements under this statute.
Amount of Taxes Direct Indirect
Abated During Employment Employment
Category the Fiscal Year Impact Impact
Industrial expansion exemptions 1,698,232$ 4,766 jobs 4,866 jobs
The projected public investment for jobs impacted by industrial expansions is $561 per direct job and
$274 per indirect job.
The economic impact information presented above was compiled by consultants contracted by the
City and was prepared in conjunction with fiscal year 2023 tax abatement totals obtained from the Forrest
County Tax Assessor’s office. There were no tax abatement agreements for Lamar County properties in fiscal
year 2023.
The companies were required to comply with certain special provisions, and did so in order to receive
the abatements. The City made no commitments as part of the agreements other than to reduce taxes.
NOTE 12 - RELATED ORGANIZATION
The following related organization is excluded from the financial reporting entity because the City's
accountability does not extend beyond making appointments. Audited financial statements are available from
the organization.
Hattiesburg Tourism Commission - The Commission consists of seven members appointed by the
Mayor and ratified by the City Council. Funding is from a special tax levied upon the gross proceeds from
hotel and motel overnight room rentals. The City collects that tax and distributes it to the Tourism Commission.
Amounts disbursed for the fiscal year ended September 30, 2023 totaled $961,846.
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CITY OF HATTIESBURG, MISSISSIPPI
NOTES TO FINANCIAL STATEMENTS
PAGE THIRTY-SIX
YEAR ENDED SEPTEMBER 30, 2023
NOTE 13 - JOINT VENTURES
The City of Hattiesburg is a participant with Forrest County in a joint venture authorized by Section
57-31-1, Mississippi Code of 1972 Annotated, to operate the Forrest County Industrial Park Commission
(FCIPC). The joint venture was created to develop and operate an industrial park complex for citizens of
Forrest County and the City of Hattiesburg. During fiscal year 2023, the City contributed $245,000 to the
Forrest County Industrial Park Commission. The Commission is governed by a ten member board. The
governing authorities of the City of Hattiesburg and the Forrest County Board of Supervisors each appoint
five members. Each entity is obligated to provide equal funding for the ongoing financial support of the
Commission. A separate financial statement of the Forrest County Industrial Park Commission can be
obtained by contacting the Commission at Post Office Box 1898, Hattiesburg, Mississippi 39403.
The City of Hattiesburg is a participant with Forrest County, Jones County, and the State of Mississippi
to operate the Hattiesburg/Laurel Regional Airport Authority authorized by Section 61-3-5, Mississippi Code
of 1972 Annotated. The joint venture, governed by a five member board of commissioners, was created to
maintain and develop the Authority for the City and aforementioned entities. Each governmental entity
appoints one board member. A separate financial statement of the Hattiesburg/Laurel Regional Airport
Authority can be obtained by contacting the Authority at 1002 Terminal Drive, Moselle, Mississippi 39459.
The City of Hattiesburg is a participant with Forrest County and the City of Petal in a joint venture
authorized by Section 39-3-38, Mississippi Code of 1972 Annotated to operate the Library of Hattiesburg,
Petal, and Forrest County. The joint venture was created to provide free public library service to the citizens
of Forrest County and the Cities of Hattiesburg and Petal. The library is governed by a fifteen member board
appointed by the governments involved as follows: City of Hattiesburg - six members; Forrest County - six
members; and City of Petal - three members. Each entity is obligated by contract to levy not less than 1.25
mills as authorized by Sections 39-3-35 and 39-3-37, Mississippi Code of 1972 Annotated, for the ongoing
financial support of the library. A separate financial statement of the library can be obtained by contacting the
Library at 329 Hardy Street, Hattiesburg, Mississippi 39401.
NOTE 14 - JOINTLY GOVERNED ORGANIZATIONS
The Emergency Management District provides emergency services to the City of Hattiesburg and
Forrest County. The entity is controlled by an eight member council. The Council is chosen as follows by the
following authorities: Mayor of Hattiesburg - one; Forrest County Board of Supervisors - one; Sheriff of Forrest
County - one; AAA Ambulance - one; Hattiesburg Police Chief - one; Hattiesburg Fire Chief - one; the
University of Southern Mississippi - one; and Forrest General Hospital - one. Operating funds are provided
by state grants, E-911 charges and direct contributions.
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CITY OF HATTIESBURG, MISSISSIPPI
NOTES TO FINANCIAL STATEMENTS
PAGE THIRTY-SEVEN
YEAR ENDED SEPTEMBER 30, 2023
NOTE 15 - DEFICIT FUND BALANCES OF INDIVIDUAL FUNDS
At September 30, 2023, the City’s 2012 TIF Bond and Interest Kohl’s Fund, Airport Improvement
Fund and Community Development Block Grant Fund reported deficit fund balances of $1,495, $337,686 and
$280,594, respectively, which are primarily attributable to the cumulative effect of program expenditures in
excess of grant reimbursements.
NOTE 16 - COMMITMENTS
Commitments for construction projects in progress are as follows:
September 30, 2023 Amount
Infrastructure projects 999,076$
Economic development 10,098,467
Culture and recreation 2,300,052
Water and sewer projects 1,134,777
Commitments for construction projects in progress,
end of fiscal year 14,532,372$
NOTE 17 - CONTINGENCIES
Litigation - The City is party to various legal proceedings which normally occur in governmental
operations. While the City cannot predict the results of any litigation, legal counsel for the City of Hattiesburg
believes that it has meritorious defenses for those actions, proceedings and claims, or they are without merit
or are of such kind, or involve such amounts, that unfavorable dispositions not covered by insurance resulting
from such litigation would not materially affect the financial statements of the City of Hattiesburg, Mississippi.
The City includes anticipated attorney fees for ongoing matters in its annual budget for the year in which such
fees are incurred.
In 2015, the City began the process to annex properties located West and North of the current city
limits. The discovery process was completed in the fall of 2019. The trial was delayed due to the Covid-19
Pandemic. It began in October 2022 and is still in process to this date.
Federal Grants - In the normal course of operations, the City receives grant funds from various
Federal and State agencies. The grant programs are subject to audit by agents of the granting authority, the
purpose of which is to ensure compliance with conditions precedent to the granting of funds. Any liability for
reimbursement which may arise as the result of these audits is not believed to be material.
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CITY OF HATTIESBURG, MISSISSIPPI
NOTES TO FINANCIAL STATEMENTS
PAGE THIRTY-EIGHT
YEAR ENDED SEPTEMBER 30, 2023
NOTE 17 - CONTINGENCIES (Cont.)
Group Insurance Programs - The City obtains its workers’ compensation, general and automobile
liability insurance through certain group insurance programs of the Mississippi Municipal Service Company.
Under these programs and pursuant to State of Mississippi regulations, participants are jointly and severally
liable for claims incurred; however, the City has experienced no loss under such provisions and cannot
reasonably estimate the amount or possibility of losses under these programs.
Self-Funded Health Insurance Program - The City provides health insurance to its employees
under a self-insured program, as previously described. The City obtains reinsurance to protect against
significant loss; however, under the terms of such reinsurance policies, the City is ultimately responsible for
covered claims. While the City estimates and recognizes expected claims liabilities related to this program,
the amount or possibility of any additional loss cannot be reasonably estimated.
NOTE 18 - OTHER POSTEMPLOYMENT BENEFITS
Plan Description - The City provides health insurance coverage to participating retirees and their
spouses through its single employer defined benefit healthcare plan, which is a self-funded plan administered
by United Healthcare, who meet the plan’s eligibility requirements. Retirees who elect coverage are
automatically provided a $20,000 life insurance benefit at no cost to retiree. Employees are eligible for these
benefits upon attaining age 60 with 8 years of service or any age with 25 years of service. Since retirees may
obtain health insurance by participating in a group with active employees and consequently receive a health
insurance premium rate differential, such postemployment healthcare benefits are reportable by the City under
GASB Statement 75 as a single employer defined benefit health care plan. The portion of the plan attributable
to retirees represents other postemployment benefits for financial reporting purposes. Although the City
expects to continue the plan indefinitely, it has the right to discontinue, alter, or modify the plan in whole or in
part at any time and for any reason, at its sole determination. The plan does not issue a stand-alone financial
report. Instead, accounts of the plan are included in the financial statements of the City. No assets are
accumulated in a trust that meet the criteria in paragraph 4 of GASB Statement 75. The City Council must
approve any changes to the plan provisions.
Funding Policy - Benefits of the plan are self-insured by the City. The City maintains an account for
the purpose of paying claims and administrative costs of its self-funded health insurance plan. The account
requires that a minimum balance be maintained, and the City deposits additional funds for claims incurred
and anticipated payments on a pay-as-you-go basis. Balances in the account belong to the City. Amounts
contributed to this account are earmarked for plan expenses but may be revoked at the City's discretion.
Therefore, balances are reported in assets of the general fund, and employer contributions are not recognized
until payment of claims by the administrator to retirees or their beneficiaries. No assets have been segregated
and restricted to provide for postretirement benefits.
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CITY OF HATTIESBURG, MISSISSIPPI
NOTES TO FINANCIAL STATEMENTS
PAGE THIRTY-NINE
YEAR ENDED SEPTEMBER 30, 2023
NOTE 18 - OTHER POSTEMPLOYMENT BENEFITS (Cont.)
Participating retirees make monthly contributions through premium payments based on coverage
type. Monthly retiree contributions for single and family coverage for the fiscal year ended September 30,
2023 totaled $488 and $388, respectively. For the years ended September 30, 2023, 2022, and 2021, the
City contributed $200,391, $276,053, and $259,815, respectively, to the plan for expected payouts for retiree
benefits, which represented 10.43%, 15.54%, and 14,45%, respectively, of the actuarially determined annual
required contribution of $1,920,748, $1,776,553, and $1,797,653, respectively. No amounts have been
contributed to finance future medical benefits under the plan for either current or future retirees.
Employees Covered by Benefit Terms - At September 30, 2023, the following employees were
covered by the benefit terms:
Retirees and beneficiaries currently receiving 59
Active members 564
Total participants 623
Total OPEB Liability - The City’s Total OPEB liability of $8,462,379 was measured as of September
30, 2023, and was determined by an actuarial valuation as of October 1, 2023.
Actuarial assumptions and other inputs - The Total OPEB liability was determined using the
following actuarial assumptions and other inputs, applied to all periods included in the measurement, unless
otherwise specified:
Inflation 3.00%
Salary increase 2.50% per annum
Discount rate 4.87%
Healthcare costs trends rate 6.25% graded uniformly to 5.60% over
3 years and following the 2021 Getzen
model thereafter until reaching an ultimate
rate of 4.04% in the year 2075
Administrative costs $128 per member
Retirees' share of health benefit related cost 100% of health premiums
The discount rate was based on the S&P 500 High Grade 20 Year Rate Index as of
September 30, 2023.
Mortality rates were based on the PUB.G Headcount-Weighted Mortality tables adjusted with
Improvement Scale MP-2021.
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CITY OF HATTIESBURG, MISSISSIPPI
NOTES TO FINANCIAL STATEMENTS
PAGE FORTY
YEAR ENDED SEPTEMBER 30, 2023
NOTE 18 - OTHER POSTEMPLOYMENT BENEFITS (Cont.)
100% of future eligible retirees are assumed to elect the medical coverage upon retirement.
Claims cost have been calculated for a male at attained age of 65 and decrease according to the
Dale Yamamoto aging table.
Schedule of Changes in Total OPEB Liability - The change in Total OPEB liability for the year
ended September 30, 2023 is as follows:
Total
OPEB
Liability
Service cost 995,289$
Interest 298,897
Difference between expected and actual experience (1,242,595)
Changes of assumptions (2,894,210)
Benefit payments (200,391)
Net change (3,043,010)
Beginning Total OPEB Liability 11,505,389
Ending Total OPEB Liability 8,462,379$
Sensitivity of the Total OPEB Liability to Changes in the Discount Rate - The following presents
the Total OPEB liability, calculated using the discount rate, as well as what the City’s Total OPEB liability
would have been if it were calculated using a discount rate that is 1-percentage-point lower and 1-percentage-
point higher than the current rate:
1.00% Decrease Current Discount Rate 1.00% Increase
3.87% 4.87% 5.87%
9,527,644$ 8,462,379$ 7,545,128$
Sensitivity of the Total OPEB Liability to Changes in the Healthcare Cost Trend Rates - The
following presents the Total OPEB liability of the City, as well as what the City’s Total OPEB liability would be
if it were calculated using healthcare cost trend rates that are 1-percentage-point lower and 1-percentage-
point higher than the assumed trend rate:
(See Table on Next Page)
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CITY OF HATTIESBURG, MISSISSIPPI
NOTES TO FINANCIAL STATEMENTS
PAGE FORTY-ONE
YEAR ENDED SEPTEMBER 30, 2023
NOTE 18 - OTHER POSTEMPLOYMENT BENEFITS (Cont.)
1.00% Decrease Current Rate 1.00% Increase
5.25% to 6.00% 6.25% to 7.00% 7.25% to 8.00%
grading to 4.60% grading to 5.60% grading to 6.60%
over 3 years and over 3 years and over 3 years and
following the Getzen following the Getzen following the Getzen
model thereafter model thereafter model thereafter
7,565,597$ 8,462,379$ 9,548,092$
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources - For
the year ended September 30, 2023, the City recognized OPEB expense of $846,997. The City reported
deferred outflows of resources and deferred inflows of resources from the following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Changes of assumptions 1,448,161$ 3,805,304$
Experience losses (gains) 398,651 2,671,578
Total 1,846,812$ 6,476,882$
Amounts reported as deferred outflows of resources and deferred inflows of resources related to the
total OPEB liability at September 30, 2023, will be recognized as an addition to or reduction of, respectively,
OPEB expense as follows:
Deferred Deferred
Outflows of Inflows of
Year Ending September 30, Resources Resources
2024 337,247$ 265,829$
2025 337,247 265,829
2026 337,247 265,829
2027 337,247 265,829
2028 337,247 265,829
Thereafter 160,577 5,147,737
Total 1,846,812$ 6,476,882$
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CITY OF HATTIESBURG, MISSISSIPPI
NOTES TO FINANCIAL STATEMENTS
PAGE FORTY-TWO
YEAR ENDED SEPTEMBER 30, 2023
NOTE 19 - DEFINED BENEFIT PENSION PLANS
Public Employees Retirement Plans
Plan Descriptions - The City contributes to the Public Employees’ Retirement System of Mississippi
(PERS), a cost-sharing, multiple-employer defined benefit pension plan (the Cost-Sharing Plan), which covers
all eligible employees, except certain sworn and uniformed policemen and firemen who participate in the City
of Hattiesburg Police and Fire Disability and Relief Fund (PFDR), also administered by PERS. Both plans
provide retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan
members and beneficiaries. PFDR Plan members consist of all full-time sworn and uniformed policemen and
firemen who were employed by July 1, 1987. All full-time sworn and uniformed policemen and firemen
employed after July 1, 1987, participate in the Cost-Sharing Plan. The PFDR Plan is affiliated with the
Mississippi Municipal Retirement System (MRS), an agent multiple-employer defined benefit pension plan,
and as of June 30, 2021, included no active members and 135 retirees and beneficiaries currently receiving
benefits. Benefit provisions for both plans are established by State law and may be amended only by the
State of Mississippi Legislature. The Plans' provisions and the Board of Trustees' authority to determine
contribution rates are established by Mississippi Code of 1972 Annotated 25-11-1 et seq, and may be
amended only by the Mississippi Legislature. PERS issues a publicly available financial report that includes
financial statements and required supplementary information. That information may be obtained by writing to
Public Employees’ Retirement System, PERS Building, 429 Mississippi Street, Jackson, MS 39201-1005 or
by calling 1-800-444-PERS.
Cost-Sharing Plan Benefits Provided - Membership in PERS is a condition of employment granted
upon hiring for qualifying employees and officials of the State of Mississippi, state universities, community and
junior colleges, and teachers and employees of the public school districts. For those persons employed by
political subdivisions and instrumentalities of the State of Mississippi, membership is contingent upon approval
of the entity’s participation in PERS by the PERS’ Board of Trustees. If approved, membership for the entity’s
employees is a condition of employment and eligibility is granted to those who qualify upon hiring.
Participating members who are vested and retire at or after age 60 or those who retire regardless of age with
at least 30 years of creditable service (25 years of creditable service for employees who became members of
PERS before July 1, 2011) are entitled, upon application, to an annual retirement allowance payable monthly
for life in an amount equal to 2.0 percent of their average compensation for each year of creditable service up
to and including 30 years (25 years for those who became members of PERS before July 1, 2011), plus 2.50
percent for each additional year of creditable service with an actuarial reduction in the benefit for each year of
creditable service below 30 years or the number of years in age that the member is below 65, whichever is
less. Average compensation is the average of the employee’s earnings during the four highest compensated
years of creditable service. Benefits vest upon completion of eight years of membership service (four years
of membership service for those who became members of PERS before July 1, 2007). PERS also provides
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CITY OF HATTIESBURG, MISSISSIPPI
NOTES TO FINANCIAL STATEMENTS
PAGE FORTY-THREE
YEAR ENDED SEPTEMBER 30, 2023
NOTE 19 - DEFINED BENEFIT PENSION PLANS (Cont.)
certain death and disability benefits. A Cost-of-Living Adjustment (COLA) payment is made to eligible retirees
and beneficiaries. The COLA is equal to 3.00 percent of the annual retirement allowance for each full fiscal
year of retirement up to the year in which the retired member reaches age 60 (55 for those who became
members of PERS before July 1, 2011), with 3.00 percent compounded for each fiscal year thereafter. Plan
provisions are established and may be amended only by the State of Mississippi Legislature.
PFDR Plan Benefits Provided - MRS provides retirement and disability benefits, annual cost-of-
living adjustments and death benefits to plan members and beneficiaries. Membership eligibility and benefit
provisions are governed by the general laws of the State of Mississippi, as well as local and private legislation
enacted by the Mississippi State Legislature. Statutes may only be amended by the Mississippi Legislature.
The PFDR retirement allowance is payable under this plan to any member who retires and has completed at
least 20 years of creditable service, regardless of age. The retirement benefits are calculated in an amount
equal to 50.00% of the employee's average compensation, plus 1.70% of average compensation for each
year of credited service over 20 with an aggregate amount not to exceed 66-2/3%. Annual cost-of-living
(COLA) adjustments are made to allowances of all retirees and beneficiaries, as further described below.
Disability and death benefits are also provided under the plan. Upon a member's termination for any reason
before retirement, that member's accumulated contributions are refunded.
Cost-Sharing Plan Contributions - At September 30, 2023, PERS members were required to
contribute 9.00% of their annual covered salary, and the City is required to contribute at an actuarially
determined rate. The employer’s rate at September 30, 2023 was 17.40% of annual covered payroll. The
contribution requirements of PERS members and employers are established and may be amended only by
the State of Mississippi Legislature. The City’s contributions (employer share only) to PERS for the years
ended September 30, 2023, 2022 and 2021 were $4,593,213, $4,405,518, and $4,317,268, respectively,
equal to the required contributions each year.
PFDR Funding Policy - The PERS System Board of Trustees establishes the funding policy for MRS
plans. The funding policy for PFDR provides for periodic employer contributions at actuarially determined
rates, expressed as millage rate tax applied to assessed property tax values, and active employee
contributions at stated rates. The employee contribution rate as of September 30, 2022, was 10.00% of
covered payroll. Contributions under this funding policy, established beginning in the 2011-2012 fiscal year,
will generate an ultimate asset reserve level equal to a reasonable percentage (initially 100.00% - 150.00%)
of the next year's projected benefit payment. At that point, actuarially determined employer contributions will
be set equal to the fiscal year's projected benefit payments and adjusted as necessary to maintain the assets
at the established reserve level; however, ultimately the City has the option of determining the contribution
rate to set as its certified millage rate. The millage rate set by the City must be at a level that will ensure
actuarial soundness of the System.
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CITY OF HATTIESBURG, MISSISSIPPI
NOTES TO FINANCIAL STATEMENTS
PAGE FORTY-FOUR
YEAR ENDED SEPTEMBER 30, 2023
NOTE 19 - DEFINED BENEFIT PENSION PLANS (Cont.)
In developing the annual required contribution shown in the following paragraphs, the normal cost
and actuarial accrued liability are determined using the entry age actuarial cost method. Unfunded actuarial
accrued liability is being amortized on a closed basis as a level dollar amount over a remaining amortization
period of twenty years. The asset valuation method used is a 5-year smoothed market method. The City has
the option to set property tax rates to allow for extended contributions beyond 2023 under the funding policy
adopted by the PERS Board of Trustees in February 2011. The millage rates certified as of June 30, 2023
for the fiscal years ending September 30, 2024 and September 30, 2025 are 2.53 mills and 2.63 mills,
respectively. The actual tax levy set in 2022 for the pension fund for policemen and firemen for the year
ended September 30, 2023 was 2.03 mills.
For the plan year ended June 30, 2023, contributions totaling $2,256,406 (employer only, no active
members) were made in accordance with contribution requirements determined by an actuarial valuation of
the System as of June 30, 2023. The employer's annual required contribution (ARC) as of June 30, 2023,
was actuarially determined to be $1,079,102.
Pension Liabilities and Pension Expense - At September 30, 2023, the City reported a liability of
approximately $106,537,428 for its proportionate share of the collective net pension liability (NPL). The NPL
for both plans was measured as of June 30, 2023, and the total pension liability (TPL) used to calculate the
net pension liability was determined by an actuarial valuation as of that date for both the Cost-Sharing Plan
and PFDR Plan.
The NPL recorded and the pension expense recognized by the City for the year ended September
30, 2023, were as follows:
Cost - Sharing
Plan PFDR Total
Net pension liability 91,575,957$ 14,961,471$ 106,537,428$
Net pension expense 9,919,955$ 3,934,094$ 13,854,049$
The NPL is the difference between the TPL and the pension plans' fiduciary net position (FNP). The
TPL is the present value of the pension benefits that are allocated to current members due to past service by
entry age normal actuarial cost method. The TPL includes benefits related to projected salary and service,
and automatic cost of living adjustments. The FNP is determined on the same basis as that used by the
pension plans. The City's proportion of the collective Cost-Sharing Plan NPL was based on the employers'
shares of contributions to the pension plan relative to the total employer contributions of all participating PERS
employers. At June 30, 2023, the City's proportionate share was 0.3641% as compared to its proportion
measured at June 30, 2022 of 0.3653%, or a decrease of 0.0012%.
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CITY OF HATTIESBURG, MISSISSIPPI
NOTES TO FINANCIAL STATEMENTS
PAGE FORTY-FIVE
YEAR ENDED SEPTEMBER 30, 2023
NOTE 19 - DEFINED BENEFIT PENSION PLANS (Cont.)
Sensitivity to the City’s Proportionate Share of the Net Pension Liabilities to Changes in the
Discount Rate - The discount rate used to measure the TPL was 7.00% for both pension plans. The
projection of cash flows used to determine the discount rate for the Cost-Sharing Plan assumed that plan
member contributions will be made at the current contribution rate (9.00%) and that employer contributions
will be phased in to 22.40% over three years (17.40% for FYE 2024, 19.40% for FYE 2025, 21.40% for FYE
2026, and 22.40% for FYE 2027). 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 periods of projected
benefit payments to determine the TPL.
The following presents the City's net pension liabilities calculated using the discount rate of 7.00%,
as well as what the City's proportionate share of the net pension liabilities would be calculated using a discount
rate that is 1-percentage point lower (6.00%) or 1-percentage point higher (8.00%) than the current rate:
1.00% Decrease Discount Rate 1.00% Increase
( 6.00% ) ( 7.00% ) ( 8.00% )
Cost-sharing plan net pension liability 118,089,518$ 91,575,957$ 69,818,633$
PFDR plan net pension liability 17,683,883$ 14,961,471$ 12,599,947$
Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions -
At September 30, 2023, the City reported deferred outflows of resources and deferred inflows of resources
related to pensions from the following sources:
Cost - Sharing Plan
Deferred Deferred Deferred
Outflows of Outflows of Inflows of
September 30, 2023 Resources Resources Resources
Differences between expected
and actual experience 1,654,229$ -$ -$
Net difference between
projected and actual earnings
on investments 2,866,294 568,086 -
PFDR
(Table Continued on Next Page)
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CITY OF HATTIESBURG, MISSISSIPPI
NOTES TO FINANCIAL STATEMENTS
PAGE FORTY-SIX
YEAR ENDED SEPTEMBER 30, 2023
NOTE 19 - DEFINED BENEFIT PENSION PLANS (Cont.)
Cost - Sharing Plan
Deferred Deferred Deferred
Outflows of Outflows of Inflows of
September 30, 2023 Resources Resources Resources
Changes of assumptions 7,757,545$ -$ -$
Changes in proportion and
differences between employer
contributions and proportionate
share of contribution 7,292,112 - 1,732,647
Employer contributions
subsequent to the measurement
date 1,101,077 85,177 -
Total 20,671,257$ 653,263$ 1,732,647$
PFDR
Deferred outflows of resources related to the Cost-Sharing Plan and PFDR resulting from City
contributions subsequent to June 30, 2023 (the measurement date) were $1,101,077 and $85,177,
respectively, and will be recognized as a reduction of the net pension liability in the year ending
September 30, 2024.
Other amounts reported as deferred outflows of resources and deferred inflows of resources related
to pensions will be recognized as an addition to (reduction of) pension expense as follows:
Cost - Sharing Plan
Deferred Deferred Deferred
Outflows of Outflows of Inflows of
Year Ending September 30, Resources Resources Resources
2024 6,381,692$ 142,022$ 433,162$
2025 6,381,692 142,022 433,162
2026 4,891,799 142,022 433,162
2027 1,914,997 142,020 433,161
Total 19,570,180$ 568,086$ 1,732,647$
PFDR
- 92 -
CITY OF HATTIESBURG, MISSISSIPPI
NOTES TO FINANCIAL STATEMENTS
PAGE FORTY-SEVEN
YEAR ENDED SEPTEMBER 30, 2023
NOTE 19 - DEFINED BENEFIT PENSION PLANS (Cont.)
No deferred inflows related to the Cost-Sharing Plan were reported in the year ended September 30,
2023. Recognition of pension-related deferred inflows and deferred outflows is reflected in changes in
unrestricted net position.
Actuarial Assumptions - In determining employer contribution rates for the PFDR Plan, the actuary
evaluates the assets of the plans based on a five-year smoothed expected return with 20.00% of a year's
excess or shortfall of expected return recognized each year for five years. The TPL as of June 30, 2023 was
determined by an actuarial valuation prepared as of June 30, 2022, and by the investment experience for the
fiscal year ending June 30, 2023. The following actuarial assumptions are applied to all periods in the
measurement:
Cost - Sharing Plan PFDR Plan
Inflation 2.40% 2.40%
Investment rate of return (net of plan
investment expense, including inflation) 7.00% 6.05%
Projected salary increases, including
inflation 2.65% - 17.90% N/A
For both plans, the mortality rates were based on the PubS.H-2010(B) Retiree Table with the following
adjustments: For males, 95.00% of male rates up to age 60, 110.00% for ages 61 to 75 and 101.00% for
ages above 77. For females, 84.00% of female rates up to age 72 and 100.00% for ages above 76. Mortality
rates for disability retirees were based on the PubG.H-2010 Disabled Table adjusted 134.00% for males and
121.00% for females. Mortality rates for Contingent Annuitants were based on the PubS.H-2010(B)
Contingent Annuitant Table, adjusted 97.00% for males and 110.00% for females. Mortality rates will be
projected generationally using the MP-2020 projection scale to account for future improvements in life
expectancy.
The actuarial assumptions used for the purposes of determining the total pension liability were based
on the results of an actuarial experience study for the four-year period from July 1, 2018 to June 30, 2022.
The experience report is dated April 21, 2023.
The long-term expected rate of return on pension plan investments was determined using a log-
normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected
nominal returns, net of pension plan investment expense and the assumed rate of 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.
- 93 -
CITY OF HATTIESBURG, MISSISSIPPI
NOTES TO FINANCIAL STATEMENTS
PAGE FORTY-EIGHT
YEAR ENDED SEPTEMBER 30, 2023
NOTE 19 - DEFINED BENEFIT PENSION PLANS (Cont.)
The most recent target asset allocation and best estimates of arithmetic real rates of return for each
major asset class are summarized in the following table:
Long-Term
Target Expected Real
Investment Asset Class Allocation Rate of Return
Domestic equity 27.00% 4.75%
International equity 22.00 4.75
Global equity 12.00 4.95
Fixed income 20.00 1.75
Real estate 10.00 3.25
Private equity 8.00 6.00
Cash equivalents 1.00 0.25
Total 100.00%
The actuarial value of assets for the PFDR Plan recognizes a portion of the difference between the
market value of assets and the expected market value of assets, based on the assumed valuation rate of
return. The amount recognized each year is 20.00% of the difference between market value and expected
market value. Actuarial assets were allocated to individual cities in the same proportion that their market
value of assets was to the total market value of assets for all cities.
NOTE 20 - ASSET RETIREMENT OBLIGATION
The City has determined that based on the highly unlikely scenario of water and sewer services no
longer being required across its service area and the numerous variables that would be involved with
completely abandoning its plant facilities and waste water lagoon it is unable to feasibly determine the
calculation of this liability as of September 30, 2023.
(This Space Intentionally Left Blank)
- 94 -
CITY OF HATTIESBURG, MISSISSIPPI
NOTES TO FINANCIAL STATEMENTS
PAGE FORTY-NINE
YEAR ENDED SEPTEMBER 30, 2023
NOTE 21 - DISCRETELY PRESENTED COMPONENT UNIT
Capital asset activity for the Hattiesburg Convention Commission (Commission) for the year ended September 30, 2023 was as follows:
Beginning Ending
Balances Additions Retirements Balances
Governmental activities:
Capital assets not being depreciated:
Land
1,445,386$ -$ -$ 1,445,386$
Construction in progress - Convention Center improvements
97,578 38,726 (97,578) 38,726
Construction in progress - The Lawn at Lake Terrace
35,800 - (35,800) -
Construction in progress - Moeller
- 79,938 - 79,938
Construction in progress - Eureka
69,526 190,080 (259,606) -
Construction in progress - Zoo projects
39,923 86,982 - 126,905
Construction in progress - Osceola McCarty House Museum
17,845 232,141 - 249,986
Construction in progress - Water Park
3,753,696 7,492,962 (5,700,000) 5,546,658
Total capital assets not being depreciated
5,459,754 8,120,829 (6,092,984) 7,487,599
(Table Continued on Next Page)
- 95 -
CITY OF HATTIESBURG, MISSISSIPPI
NOTES TO FINANCIAL STATEMENTS
PAGE FIFTY
YEAR ENDED SEPTEMBER 30, 2023
NOTE 21 - DISCRETELY PRESENTED COMPONENT UNIT (Cont.)
Beginning Ending
Balances Additions Retirements Balances
Governmental activities (cont.):
Capital assets being depreciated:
Buildings and improvements
23,189,630$ 276,448$ -$ 23,466,078$
Furniture and fixtures
487,942 5,907 - 493,849
Equipment and vehicles
2,694,896 875,681 - 3,570,577
Intangible right-of-use assets
94,439 5,700,000 - 5,794,439
Total capital assets being depreciated
26,466,907 6,858,036 - 33,324,943
Less accumulated depreciation for:
Buildings and improvements
10,086,089 484,771 - 10,570,860
Furniture and fixtures
443,763 2,068 - 445,831
Equipment and vehicles
1,808,415 189,666 - 1,998,081
Intangible right-of-use assets
27,415 243,162 - 270,577
Total accumulated depreciation
12,365,682 919,667 - 13,285,349
Total capital assets being depreciated, net
14,101,225 5,938,369 - 20,039,594
Governmental activities capital assets, net 19,560,979$ 14,059,198$ (6,092,984)$ 27,527,193$
(This Space Intentionally Left Blank)
- 96 -
CITY OF HATTIESBURG, MISSISSIPPI
NOTES TO FINANCIAL STATEMENTS
PAGE FIFTY-ONE
YEAR ENDED SEPTEMBER 30, 2023
NOTE 21 - DISCRETELY PRESENTED COMPONENT UNIT (Cont.)
The Commission executed a contract in 2010 with the City for the management of the Hattiesburg
Zoo at Kamper Park. In May of 2012, a new agreement was entered into by the City and the Commission
where the Commission agreed to accept full financial responsibility for any subsidy requirement necessary for
the operation of the Hattiesburg Zoo. This agreement was renewed in August 2015. In September 2020, the
subsequent renewal agreement was styled to continue without a designated termination date. Pursuant to
the agreement, all parties reserve the right to cancel this agreement at any time upon six months written notice
to the other party. Furthermore, the City agrees to reimburse on a pro rata basis, the Commission for capital
equipment, expansion expenditures or major renovation expenditures executed for benefit of the City in the 2
years prior to the date of notice of cancellation.
During the year ended September 30, 2023, the Commission contracted for certain capital projects.
The Commission transferred completed construction projects totaling $465,401 to the City, which are reflected
in capital assets of the City as of September 30, 2023.
NOTE 22 - SUBSEQUENT EVENTS
In preparing the financial statements, management has evaluated and disclosed all material
subsequent events through June 25, 2024, which is the date the financial statements were available to be
issued as follows:
On May 22, 2024, the City issued a 13 year Water and Sewer Bond in the amount of $7,500,000 at
a 5% interest rate for the replacement of city’s water meters.
(This Space Intentionally Left Blank)
REQUIRED SUPPLEMENTARY INFORMATION
The accompanying notes to the required supplementary information are an integral part of this schedule.
Original Final
Budget Budget
REVENUES
Intergovernmental:
Federal grants 1,956,751$ 3,241,013$
State grants 428,528 428,528
State - shared revenue 26,066,063 26,066,063
General property taxes 19,600,000 19,600,000
Other taxes 23,500 23,500
Licenses and permits 4,387,020 4,387,020
Charges for services:
Public safety 275,000 275,000
Sanitation 2,325,800 2,325,800
Fines and forfeitures 934,000 934,000
Miscellaneous 442,800 442,800
Non-revenue receipts 473,700 473,700
Total revenues 56,913,162 58,197,424
EXPENDITURES
General government:
Personnel 4,877,015 4,977,420
Supplies and expenses 202,525 273,169
Other services and charges 6,039,984 7,505,790
Capital outlays 50,600 170,600
Total general government 11,170,124 12,926,979
Police department:
Personnel 12,065,080 12,249,240
Supplies and expenses 779,060 811,460
Other services and charges 1,005,259 1,334,741
Capital outlays 26,282 1,059,997
Total police department 13,875,681 15,455,438
Police and fire training:
Personnel 53,630 53,730
Supplies and expenses 101,072 101,072
Other services and charges 85,495 85,495
Capital outlays - 46,000
Total police and fire training 240,197 286,297
PAGE 1 OF 4
CITY OF HATTIESBURG, MISSISSIPPI
Budgetary Comparison Schedule - General Fund
Year Ended September 30, 2023
- 97 -
SCHEDULE 1
Variance with
Final Budget
Favorable
Actual (Unfavorable)
885,573$ (2,355,440)$
335,475 (93,053)
27,740,350 1,674,287
20,476,979 876,979
10,741 (12,759)
4,636,937 249,917
120,821 (154,179)
2,244,237 (81,563)
683,880 (250,120)
594,270 151,470
1,053,253 579,553
58,782,516 585,092
4,369,162 608,258
146,149 127,020
5,287,707 2,218,083
91,521 79,079
9,894,539 3,032,440
10,893,396 1,355,844
723,213 88,247
957,496 377,245
627,281 432,716
13,201,386 2,254,052
37,934 15,796
62,489 38,583
54,791 30,704
46,000 -
201,214 85,083
- 98 -
The accompanying notes to the required supplementary information are an integral part of this schedule.
Original Final
Budget Budget
EXPENDITURES (Cont.)
Fire department:
Personnel 9,727,850$ 9,727,850$
Supplies and expenses 314,200 318,200
Other services and charges 338,720 355,020
Capital outlays - 125,000
Total fire department 10,380,770 10,526,070
Land development administration:
Personnel 720,830 722,790
Supplies and expenses 31,755 34,155
Other services and charges 210,450 285,450
Capital outlays - 127,500
Total land development administration 963,035 1,169,895
Public safety contractual services:
Personnel 220,340 233,840
Other services and charges 949,459 1,045,000
Total public safety contractual services 1,169,799 1,278,840
Public services:
Personnel 6,556,710 6,589,590
Supplies and expenses 1,190,120 1,359,920
Other services and charges 4,868,712 5,472,067
Capital outlays 670,000 2,393,357
Total public services 13,285,542 15,814,934
Animal control:
Personnel 143,520 143,520
Supplies and expenses 10,900 12,900
Other services and charges 185,550 220,550
Total animal control 339,970 376,970
- 99 -
Year Ended September 30, 2023
SCHEDULE 1
PAGE 2 OF 4
CITY OF HATTIESBURG, MISSISSIPPI
Budgetary Comparison Schedule - General Fund
Variance with
Final Budget
Favorable
Actual (Unfavorable)
8,879,843$ 848,007$
285,927 32,273
303,000 52,020
6,671 118,329
9,475,441 1,050,629
602,154 120,636
31,335 2,820
228,565 56,885
71,776 55,724
933,830 236,065
212,484 21,356
907,519 137,481
1,120,003 158,837
5,105,394 1,484,196
1,161,529 198,391
4,639,189 832,878
2,019,760 373,597
12,925,872 2,889,062
126,308 17,212
10,716 2,184
200,329 20,221
337,353 39,617
- 100 -
The accompanying notes to the required supplementary information are an integral part of this schedule.
Original Final
Budget Budget
EXPENDITURES (Cont.)
Human/social assistance:
Other services and charges 365,900$ 465,900$
Total human/social assistance 365,900 465,900
Economic development:
Other services and charges - 3,850,400
Capital outlays 65,748 3,529,508
Total economic development 65,748 7,379,908
Airport:
Supplies and expenses 17,650 17,650
Other services and charges 40,550 40,550
Total airport 58,200 58,200
Cemetery:
Personnel 889,100 889,100
Supplies and expenses 82,350 82,350
Other services and charges 60,301 60,301
Capital outlays 60,500 316,500
Total cemetery 1,092,251 1,348,251
Parking garages:
Personnel 91,160 91,160
Supplies and expenses 2,050 2,050
Other services and charges 54,350 54,350
Total parking garages 147,560 147,560
- 101 -
Year Ended September 30, 2023
SCHEDULE 1
PAGE 3 OF 4
CITY OF HATTIESBURG, MISSISSIPPI
Budgetary Comparison Schedule - General Fund
Variance with
Final Budget
Favorable
Actual (Unfavorable)
452,128$ 13,772$
452,128 13,772
3,539,900 310,500
483,606 3,045,902
4,023,506 3,356,402
6,659 10,991
21,863 18,687
28,522 29,678
631,225 257,875
74,635 7,715
50,917 9,384
286,042 30,458
1,042,819 305,432
33,151 58,009
222 1,828
22,551 31,799
55,924 91,636
- 102 -
The accompanying notes to the required supplementary information are an integral part of this schedule.
Original Final
Budget Budget
EXPENDITURES (Cont.)
Debt service:
Principal payments 781,685$ 781,685$
Interest payments 337,708 337,708
Pay agent fees 3,000 3,000
Total debt service 1,122,393 1,122,393
Total expenditures 54,277,170 68,357,635
Excess (deficiency) of revenues over expenditures 2,635,992 (10,160,211)
OTHER FINANCING SOURCES (USES)
Transfers in 1,284,000 1,285,255
Transfers out (3,919,748) (3,919,748)
Total other financing sources (uses) (2,635,748) (2,634,493)
NET CHANGE IN FUND BALANCES 244 (12,794,704)
Fund balances - beginning (Non-GAAP Budgetary Basis) 19,000,000 19,130,736
Fund balances - ending (Non-GAAP Budgetary Basis) 19,000,244$ 6,336,032$
ADJUSTMENTS:
To adjust for other receivables/accruals
Fund balances - ending (GAAP Basis)
Year Ended September 30, 2023
- 103 -
SCHEDULE 1
PAGE 4 OF 4
CITY OF HATTIESBURG, MISSISSIPPI
Budgetary Comparison Schedule - General Fund
Variance with
Final Budget
Favorable
Actual (Unfavorable)
781,247$ 438$
337,973 (265)
3,000 -
1,122,220 173
54,814,757 13,542,878
3,967,759 14,127,970
824,246 (461,009)
(3,919,748) -
(3,095,502) (461,009)
872,257 13,666,961$
19,130,736
20,002,993
2,588,815
22,591,808$
- 104 -
The accompanying notes to the required supplementary information are an integral part of this schedule.
Variance with
Final Budget
Original Final Favorable
Budget Budget Actual (Unfavorable)
EXPENDITURES
Capital outlays 12,875,822$ 12,875,808$ 1,297,567$ 11,578,241$
Total expenditures 12,875,822 12,875,808 1,297,567 11,578,241
Excess (deficiency) of revenues over expenditures (12,875,822) (12,875,808) (1,297,567) 11,578,241
NET CHANGE IN FUND BALANCES (12,875,822) (12,875,808) (1,297,567) 11,578,241$
Fund balances - beginning (Non-GAAP Budgetary Basis) 12,875,822 12,875,808 12,875,808
Fund balances - ending (Non-GAAP Budgetary Basis) -$ -$ 11,578,241
ADJUSTMENTS:
To adjust for other receivables/accruals (5,140,330)
Fund balances - ending (GAAP Basis) 6,437,911$
- 105 -
SCHEDULE 2
CITY OF HATTIESBURG, MISSISSIPPI
Budgetary Comparison Schedule - COVID Fiscal Recovery Fund
Year Ended September 30, 2023
The accompanying notes to the required supplementary information are an integral part of this schedule.
Variance with
Final Budget
Original Final Favorable
Budget Budget Actual (Unfavorable)
REVENUES
Intergovernmental:
Federal grants 1,700,000$ 1,700,000$ 1,271,110$ (428,890)$
State grants 1,203,976 5,203,976 4,461,289 (742,687)
State - shared revenue 1,820,000 1,820,000 1,915,320 95,320
Miscellaneous 1,000 1,000 45,689 44,689
Total revenues 4,724,976 8,724,976 7,693,408 (1,031,568)
EXPENDITURES
Public services 1,540,000 1,540,000 838,404 701,596
Capital outlay 2,384,976 6,221,769 1,339,971 4,881,798
Total expenditures 3,924,976 7,761,769 2,178,375 5,583,394
Excess (deficiency) of revenues over expenditures 800,000 963,207 5,515,033 4,551,826
NET CHANGE IN FUND BALANCES 800,000 963,207 5,515,033 4,551,826$
Fund balances - beginning (Non-GAAP Budgetary Basis) 800,000 963,207 963,207
Fund balances - ending (Non-GAAP Budgetary Basis) 1,600,000$ 1,926,414$ 6,478,240
ADJUSTMENTS:
To adjust for other receivables/accruals (72,508)
Fund balances - ending (GAAP Basis) 6,405,732$
- 106 -
SCHEDULE 3
CITY OF HATTIESBURG, MISSISSIPPI
Budgetary Comparison Schedule - Municipal Road and Bridge Fund
Year Ended September 30, 2023
The accompanying notes to the required supplementary information are an integral part of this schedule.
2023 2022 2021 2020
City's proportion of the net pension liability (asset) 0.364059% 0.365326% 0.370199% 0.381271%
City's proportionate share of the net pension liability
(asset) 91,575,956$ 75,192,033$ 54,717,178$ 73,815,249$
Covered payroll 26,986,787$ 25,150,190$ 24,614,500$ 25,387,885$
City's proportionate share of the net pension liability
(asset) as a percentage of its covered payroll 339.34% 298.97% 222.30% 290.75%
Plan fiduciary net position as a percentage of the
total pension liability 55.70% 59.93% 70.44% 58.97%
for the fiscal year ended September 30, 2015, and, until a full 10 year trend is compiled, the City has only
Year Ended September 30, 2023
presented information for the years in which information is available.
* The amounts presented for each fiscal year were determined as of the twelve months ended at the
- 107 -
SCHEDULE 4
CITY OF HATTIESBURG, MISSISSIPPI
Schedule of the City's Proportionate Share of the Net Pension Liability - PERS
Last Ten Fiscal Years*
measurement date of June 30 of the fiscal year presented. This schedule is presented to illustrate
the requirement to show information for 10 years. However, GASB Statement No. 68 was implemented
2019 2018 2017 2016 2015
0.378836% 0.366040% 0.365585% 0.356159% 0.354714%
66,638,394$ 60,876,674$ 60,775,128$ 63,626,214$ 54,831,789$
24,672,648$ 23,616,660$ 23,537,422$ 23,739,349$ 22,228,762$
270.09% 257.77% 258.21% 268.02% 246.67%
61.59% 62.54% 61.49% 57.47% 61.70%
- 108 -
The accompanying notes to the required supplementary information are an integral part of this schedule.
2023 2022 2021 2020
Contractually required contribution 4,593,213$ 4,405,518$ 4,317,268$ 4,334,297$
Contributions in relation to the
contractually required contribution (4,593,213) (4,405,518) (4,317,268) (4,334,297)
Contribution deficiency (excess) -$ -$ -$ -$
Covered payroll 26,397,779$ 25,319,074$ 24,811,882$ 24,909,750$
Contributions as a percentage of
covered payroll 17.40% 17.40% 17.40% 17.40%
* This schedule is presented to illustrate the requirement to show information for 10 years.
However, GASB Statement No. 68 was implemented for the fiscal year ended September 30, 2015,
and, until a full 10 year trend is compiled, the City has only presented information for the years
in which information is available.
Note A - The 2019 contributions as a percentage of covered payroll will be an average
of the former contribution rate of 15.75% and the current contribution rate of 17.40%.
Public Employees' Retirement System - PERS
Last Ten Fiscal Years*
Year Ended September 30, 2023
- 109 -
SCHEDULE 5
CITY OF HATTIESBURG, MISSISSIPPI
Schedule of City Contributions
2019 2018 2017 2016 2015
4,024,837$ 3,719,626$ 3,707,145$ 3,738,948$ 3,501,030$
(4,024,837) (3,719,626) (3,707,145) (3,738,948) (3,501,030)
-$ -$ -$ -$ -$
24,698,252$ 23,616,673$ 23,537,429$ 23,739,352$ 22,228,762$
16.30% 15.75% 15.75% 15.75% 15.75%
- 110 -
The accompanying notes to the required supplementary information are an integral part of this schedule.
2023 2022 2021 2020
City's proportion of the net pension liability
(asset) 12.47% 12.16% 12.06% 11.77%
City's proportionate share of the net pension
liability (asset) $14,961,471 $14,520,242 $10,443,751 $14,617,877
Covered payroll** N/A N/A N/A N/A
City's proportionate share of the net pension
liability (asset) as a percentage of its
covered payroll** N/A N/A N/A N/A
Plan fiduciary net position as a percentage
of the total pension liability 54.61% 55.01% 68.43% 56.64%
* The amounts presented for each fiscal year were determined as of the twelve months ended at the
for the fiscal year ended September 30, 2015, and until a full 10 year trend is compiled, the City has
only presented information for the years in which information is available.
no active members.
Year Ended September 30, 2023
** Payroll-related information not provided because plan is closed to new entrants and there are
- 111 -
SCHEDULE 6
CITY OF HATTIESBURG, MISSISSIPPI
Schedule of the City's Proportionate Share of the Net Pension Liability - PFDR
Last Ten Fiscal Years*
measurement date of June 30 of the fiscal year presented. This schedule is presented to illustrate the
requirement to show information for 10 years. However, GASB Statement No. 68 was implemented
2019 2018 2017 2016 2015
11.75% 11.49% 11.26% 11.04% 10.86%
$14,266,753 $14,249,426 $14,848,105 $15,838,774 $14,490,323
N/A N/A N/A N/A N/A
N/A N/A N/A N/A N/A
58.99% 59.68% 59.01% 56.63% 60.94%
- 112 -
The accompanying notes to the required supplementary information are an integral part of this schedule.
2023 2022 2021
Contractually required contribution 1,053,717$ 1,344,603$ 1,377,105$
Contributions in relation to the contractually
required contribution (1,053,717) (1,344,603) (1,377,105)
Contribution deficiency (excess) -$ -$ -$
Covered payroll** N/A N/A N/A
Contributions as a percentage of covered
payroll** N/A N/A N/A
*
information is available.
**
are no active members.
SCHEDULE 7
CITY OF HATTIESBURG, MISSISSIPPI
Schedule of City Contributions
Mississippi Municipal Retirement Systems - PFDR
Last Ten Fiscal Years*
- 113 -
Year Ended September 30, 2023
This schedule is presented to illustrate the requirement to show information for 10 years. However,
Payroll-related information not provided because plan is closed to new entrants and there
GASB Statement No. 68 was implemented for the fiscal year ended September 30, 2015, and until
a full 10 year trend is compiled, the City has only presented information for the years in which
2020 2019 2018 2017 2016 2015
1,378,508$ 1,392,033$ 1,512,066$ 1,334,243$ 1,346,542$ 1,626,692$
(1,378,508) (1,392,033) (1,512,066) (1,334,243) (1,346,542) (1,626,692)
-$ -$ -$ -$ -$ -$
N/A N/A N/A N/A N/A N/A
N/A N/A N/A N/A N/A N/A
- 114 -
The accompanying notes to the required supplementary information are an integral part of this schedule.
2023 2022 2021 2020 2019 2018
Total OPEB Liability
Service cost 995,289$ 971,677$ 854,541$ 825,006$ 785,720$ 601,832$
Interest 298,897 272,948 446,341 410,359 304,750 236,232
Differences between expected and
actual experience (1,242,595) - (3,455,780) - 896,966 -
Change in assumptions (2,894,210) - 1,078,625 - 1,391,514 -
Benefit payments (200,391) (276,053) (259,815) (468,268) (436,614) (211,305)
Net change in total OPEB liability (3,043,010) 968,572 (1,336,088) 767,097 2,942,336 626,759
Total OPEB liability - beginning 11,505,389 10,536,817 11,872,905 11,105,808 8,163,472 7,536,713
Total OPEB liability - ending 8,462,379$ 11,505,389$ 10,536,817$ 11,872,905$ 11,105,808$ 8,163,472$
City's covered-employee payroll 26,397,779$ 25,319,074$ 24,811,882$ 24,909,750$ 24,698,252$ 23,616,673$
Total OPEB liability as a percentage of
its covered-employee payroll 32.06% 45.44% 42.47% 47.66% 44.97% 34.57%
* The amounts presented for each fiscal year were determined as of the twelve months ended at the measurement date of September 30
of the fiscal year presented. This schedule is presented to illustrate the requirement to show information for 10 years. However,
GASB Statement No. 75 was implemented for the fiscal year ended September 30, 2018, and until a full 10 year trend is compiled, the
City has only presented information for the years in which information is available.
Year Ended September 30, 2023
- 115 -
SCHEDULE 8
CITY OF HATTIESBURG, MISSISSIPPI
Schedule of Changes in the City's Total OPEB Liability and Related Ratios
Last Ten Fiscal Years*
- 116 -
CITY OF HATTIESBURG, MISSISSIPPI
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
YEAR ENDED SEPTEMBER 30, 2023
NOTE 1 - BUDGETARY COMPARISON SCHEDULES
A. Basis of Presentation:
The Budgetary Comparison Schedules (the Schedules) present the original legally adopted
budget, the final legally adopted budget, the actual amounts on the budgetary cash basis, and variances
between the final budget and the actual amounts. The Schedules are a part of required supplementary
information. As disclosed in Note 1, Section F to the financial statements, the Schedules are presented in
the Mississippi State Department of Audit’s prescribed format.
B. Budget/GAAP Reconciliation:
The major differences between the budgetary basis and the GAAP basis are:
1. Revenues are recorded when received in cash (budgetary) as opposed to when
susceptible to accrual (GAAP).
2. Expenditures are recorded when paid in cash (budgetary) as opposed to when
susceptible to accrual (GAAP).
The budget to GAAP reconciliation is shown at the bottom of Schedules 1 through 3.
NOTE 2 - PENSION SCHEDULES
A. Changes of Assumptions:
2015
The expectation of retired life mortality was changed to the RP-2014 Healthy Annuitant Blue Collar
Table projected to 2016 using Scale BB rather than the RP-2000 Mortality Table, which was used
prior to 2015.
The expectation of disabled mortality was changed to the RP-2014 Disabled Retiree Table, rather
than the RP-2000 Disabled Mortality Table, which was used prior to 2015.
Withdrawal rates, pre-retirement mortality rates, disability rates and service retirement rates were also
adjusted to more closely reflect actual experience.
Assumed rates of salary increase were adjusted to more closely reflect actual and anticipated
experience.
The price inflation and investment rate of return assumptions were changed from 3.50% to 3.00% and
8.00% to 7.75%, respectively.
- 117 -
CITY OF HATTIESBURG, MISSISSIPPI
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
PAGE TWO
YEAR ENDED SEPTEMBER 30, 2023
NOTE 2 - PENSION SCHEDULES (Cont.)
A. Changes of Assumptions (Cont.):
2016
The assumed rate of interest credited to employee contributions was changed from 3.50% to 2.00%.
2017
The expectation of retired life mortality was changed to the RP-2014 Healthy Annuitant Blue Collar
Mortality Table projected with Scale BB to 2022. Small adjustments were also made to the Mortality
Table for disabled lives.
The wage inflation assumptions was reduced from 3.75% to 3.25%.
Withdrawal rates, pre-retirement mortality rates, disability rates and service retirement rates were also
adjusted to reflect actual experience more closely.
The percentage of active member disabilities assumed to be in the line of duty was increased from
6.00% to 7.00%.
2019
The expectation of retired life mortality was changed to the PubS.H-2010(B) Retiree Table with the
following adjustments:
• For males, 112.00% of male rates from ages 18 to 75 scaled down to 105.00% for ages 80 to
119.
• For females, 85.00% of the female rates from ages 18 to 65 scaled up to 102.00% for ages 75
to 119.
• Projection scale MP-2018 will be used to project future improvements in life expectancy
generationally.
The expectation of disabled mortality was changed to PubT.H-2010 Disabled Retiree Table for disabled
retirees with the following adjustments:
• For males, 137.00% of male rates at all ages.
• For females, 115.00% of female rates at all ages.
• Projection scale MP-2018 will be used to project future improvements in life expectancy
generationally.
The price inflation assumption was reduced from 3.00% to 2.75%.
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CITY OF HATTIESBURG, MISSISSIPPI
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
PAGE THREE
YEAR ENDED SEPTEMBER 30, 2023
NOTE 2 - PENSION SCHEDULES (Cont.)
A. Changes of Assumptions (Cont.):
The wage inflation assumption was reduced from 3.25% to 3.00%.
Withdrawal rates, pre-retirement mortality rates, and service retirement rates were also adjusted to more
closely reflect actual experience.
The percentage of active member disabilities assumed to be in the line of duty was increased from
7.00% to 9.00%.
2021
The expectation of retired life mortality was changed to the PubS.H-2010(B) Retiree Table with the
following adjustments:
• For males, 95.00% of male rates up to age 60, 110.00% for ages 61 to 75, and 101.00% for
ages above 77.
• For females, 84.00% of female rates up to age 72, 100.00% for ages above 76.
• Projection scale MP-2020 will be used to project future improvements in life expectancy
generationally.
The expectation of disabled mortality was changed to PubG.H-2010 Disabled Table for disabled retirees
with the following adjustments:
• For males, 134.00% of male rates at all ages.
• For females, 121.00% of female rates at all ages.
• Projection scale MP-2020 will be used to project future improvements in life expectancy
generationally.
The expectation of contingent annuitant mortality was based on the PubS.H-2010(B) Contingent
Annuitant Table with the following adjustments:
• For males, 97.00% of male rates at all ages.
• For females, 110.00% of female rates at all ages.
• Projection scale MP-2020 will be used to project future improvements in life expectancy
generationally.
The price inflation assumption was reduced from 2.75% to 2.40%.
The wage inflation assumption was reduced from 3.00% to 2.65%.
The investment rate of return assumption was changed from 7.75% to 7.55%.
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CITY OF HATTIESBURG, MISSISSIPPI
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
PAGE FOUR
YEAR ENDED SEPTEMBER 30, 2023
NOTE 2 - PENSION SCHEDULES (Cont.)
A. Changes of Assumptions (Cont.):
The assumed load for administrative expenses was increased from 0.25% to 0.28% of payroll.
Withdrawal rates, pre-retirement mortality rates, disability rates and service retirement rates were also
adjusted to reflect actual experience more closely.
The percentage of active member disabilities assumed to be in the line of duty was increased from
9.00% to 12.00%.
The percentage of active member deaths assumed to be in in the line of duty was decreased from 6.00%
to 4.00%.
2023
The investment rate of return assumption was changed from 7.55% to 7.00%.
The assumed load for administrative expenses was decreased from 0.28% to 0.26% of payroll.
Withdrawal rates, disability rates and service retirement rates were also adjusted to reflect actual
experience more closely.
The percentage of participants assumed to receive a deferred benefit upon attaining the eligibility
requirements for retirement was increased from 60.00% to 65.00%.
For married members, the number of years that a male is assumed to be older than his spouse was
changed from 3 years to 2 years.
The assumed amount of unused sick leave at retirement was increased from 0.50 years to 0.55 years.
The assumed average number of years of military service that participants will have at retirement was
decreased from 0.25 years to 0.20 years.
B. Changes in Benefit Provisions:
2016
Effective July 1, 2016, the interest rate on employee contributions shall be calculated based on the
money market rate as published by the Wall Street Journal on December 31 of each preceding year with
a minimum rate of one percent and a maximum rate of five percent.
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CITY OF HATTIESBURG, MISSISSIPPI
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
PAGE FIVE
YEAR ENDED SEPTEMBER 30, 2023
NOTE 2 - PENSION SCHEDULES (Cont.)
C. Method and assumptions used in calculations of actuarially determined contributions:
The actuarially determined contribution rates in the schedule of employer contributions are calculated as
of June 30, two years prior to the end of the fiscal year in which contributions are reported (June 30, 2021
valuation for the June 30, 2023 fiscal year end). The following actuarial methods and assumptions were
used to determine the most recent contribution rate reported in that schedule:
Actuarial cost method Entry age
Amortization method Level percentage of payroll, open
Remaining amortization period 26.7 years
Asset valuation method 5-year smoothed market
Price inflation 2.40%
Salary increase 2.65% to 17.90%, including inflation
Investment rate of return 7.55%, net of pension plan investment expense,
including inflation
NOTE 3 - OPEB SCHEDULES
A. Changes of Assumptions:
2017
The discount rate is 2.98% based on the S&P Municipal Bond 20 Year High Grade Rate Index as of
September 29, 2017, compared to the prior year Statement No. 45 discount rate of 4.00%.
The mortality improvement was changed from scale MP-2014 to scale MP-2017.
The medical trend was changed from 8.00% grading to 5.00% over 6 years beginning in 2014 to 8.00%
grading to 5.00% over 10 years beginning in 2017.
2019
The discount rate is 3.58% based on the S&P Municipal Bond 20 Year High Grade Rate Index as of
September 30, 2019 under Statement No. 75, compared to the prior discount rate of 2.98%.
The medical claims aging table was updated to be based on the aging factors in the Dale Yamamoto
study released by the Society of Actuaries in June 2013.
The assumed trend rate for the medical claims was changed to 7.25% grading uniformly to 6.50% over 3
years, and following the 2020 Getzen model thereafter until reaching an ultimate rate of 4.04% in the
year 2075.
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CITY OF HATTIESBURG, MISSISSIPPI
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
PAGE SIX
YEAR ENDED SEPTEMBER 30, 2023
NOTE 3 - OPEB SCHEDULES (Cont.)
A. Changes of Assumptions (Cont.):
2019 (Cont.)
Mortality was updated to mortality table MP-2014 Adjusted to 2006 with Scale MP-2019.
2021
The discount rate is 2.43% based on the S&P Municipal Bond 20 Year High Grade Rate Index as of
September 20, 2021 under Statement No. 75, compared to the prior discount rate of 3.58%.
The assumed trend rate for the medical claims was changed to 6.25% grading uniformly to 5.50% over 3
years and following the 2021 Getzen model thereafter until reaching an ultimate rate of 4.04% in the year
2075.
Mortality was updated to PUB.G Headcount-weighted mortality tables with scale MP-2021.
2023
The discount rate is 4.87% based on the S&P Municipal Bond 20 Year High Grade Rate Index as of
September 20, 2023 under Statement No. 75, compared to the prior discount rate of 2.43%.
The medical trend was updated to 6.25% in 2023 grading uniformly over 3 years and following the
Getzen model thereafter to an ultimate rate of 4.04% in 2075.
B. Funding Policy:
Benefits of the plan are self-insured by the City. The City maintains an account for the purpose of paying
claims and administrative costs of its self-funded health insurance plan. The account requires that a
minimum balance be maintained, and the City deposits additional funds for claims incurred and
anticipated payments on a pay-as-you-go basis. No assets have been segregated and restricted to
provide for postretirement benefits.
(This Space Intentionally Left Blank)
SUPPLEMENTARY INFORMATION
See independent auditor’s report.
Special Debt
Revenue Service
Funds Funds
(Schedule 11) (Schedule 13)
ASSETS
Cash and cash equivalents - unrestricted 2,715,488$ -$
Cash and cash equivalents - restricted 6,558,444 7,379,670
Cash with fiscal agent - restricted - 154,438
Due from other funds 910 -
Sales tax receivable 296,670 -
Intergovernmental receivables 424,771 -
Lease receivable 213,879 -
Property taxes receivable 1,308,261 2,616,516
Total assets 11,518,423$ 10,150,624$
LIABILITIES
Accounts payable 715,439$ -$
Due to other funds 550,000 33,500
Due to other governments 129,400 -
Accrued wages and benefits 148,175 -
Other liabilities 605,898 -
Advances from other funds 500,000 -
Total liabilities 2,648,912 33,500
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - property taxes 1,300,000 2,600,000
Unavailable revenue - lease revenue 213,879 -
Total deferred inflows of resources 1,513,879 2,600,000
FUND BALANCES
Restricted:
Public safety:
Fire protection 1,093,004 -
Law enforcement 192,929 -
Public services 2,605,209 -
Mass transit 910,501 -
Debt service - 7,517,124
Culture and recreation 2,054,130 -
Economic development 363,969 -
Committed:
Culture and recreation 754,170 -
Unassigned (618,280) -
Total fund balances 7,355,632 7,517,124
Total liabilities, deferred inflows of resources,
and fund balances
11,518,423$ 10,150,624$
September 30, 2023
- 122 -
SCHEDULE 9
CITY OF HATTIESBURG, MISSISSIPPI
Combining Balance Sheet - Nonmajor Governmental Funds
Capital Total Nonmajor
Project Governmental
Funds Funds
(Schedule 15) (Exhibit C)
-$ 2,715,488$
950,928 14,889,042
- 154,438
- 910
- 296,670
- 424,771
- 213,879
- 3,924,777
950,928$ 22,619,975$
-$ 715,439$
- 583,500
- 129,400
- 148,175
- 605,898
- 500,000
- 2,682,412
- 3,900,000
- 213,879
- 4,113,879
- 1,093,004
947,709 1,140,638
- 2,605,209
- 910,501
- 7,517,124
2,394 2,056,524
825 364,794
- 754,170
- (618,280)
950,928 15,823,684
950,928$ 22,619,975$
- 123 -
See independent auditor’s report.
Special Revenue Debt Service
Funds Funds
(Schedule 12) (Schedule 14)
REVENUES
General property taxes 1,264,245$ 3,441,548$
Special sales tax collections 3,889,493 -
Internet sales tax 5,067,170 -
Fines, forfeitures and penalties 163,827 -
Interest, rents and concessions 142,509 25,106
Intergovernmental revenues 3,867,379 670,652
Charges for services 1,124,731 -
Other revenues 975,004 -
Total revenues 16,494,358 4,137,306
EXPENDITURES
Current:
Public safety 2,004,008 -
Public services 2,610,044 -
Other services 233,557 25,764
Mass transit 4,202,875 -
Culture and recreation 14,302,415 -
Human/social assistance 959,907 -
Economic development 600,000 -
Debt service:
Principal payments 60,100 1,851,247
Interest and fiscal charges 4,102 2,483,667
Total expenditures 24,977,008 4,360,678
Excess (deficiency) of revenues over expenditures (8,482,650) (223,372)
OTHER FINANCING SOURCES
Proceeds from long-term debt 5,500,000 -
Other sources 663 -
Transfers in 3,850,335 66,160
Total other financing sources 9,350,998 66,160
NET CHANGE IN FUND BALANCES 868,348 (157,212)
Fund balances - beginning 6,487,284 7,674,336
Fund balances - ending 7,355,632$ 7,517,124$
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances -
Nonmajor Governmental Funds
Year Ended September 30, 2023
- 124 -
SCHEDULE 10
CITY OF HATTIESBURG, MISSISSIPPI
Capital Project Total Nonmajor
Funds Governmental Funds
(Schedule 16) (Exhibit D)
-$ 4,705,793$
- 3,889,493
- 5,067,170
- 163,827
1,305 168,920
- 4,538,031
- 1,124,731
- 975,004
1,305 20,632,969
- 2,004,008
- 2,610,044
- 259,321
- 4,202,875
- 14,302,415
- 959,907
- 600,000
- 1,911,347
- 2,487,769
- 29,337,686
1,305 (8,704,717)
- 5,500,000
- 663
- 3,916,495
- 9,417,158
1,305 712,441
949,623 15,111,243
950,928$ 15,823,684$
- 125 -
See independent auditor’s report.
PARKS & MUNICIPAL FIRE SPECIAL POLICE AIRPORT
RECREATION PROTECTION STREET FORFEITURES IMPROVEMENT
ASSETS
Cash and cash equivalents - unrestricted 654,893$ -$ -$ 27,300$ 226,661$
Cash and cash equivalents - restricted - 1,093,731 363,969 192,929 -
Due from other funds - 46 - 864 -
Sales tax receivable - - - - -
Intergovernmental receivables - - - - -
Lease receivable - - - - 213,879
Property taxes receivable 1,046,595 - - - -
Total assets 1,701,488$ 1,093,777$ 363,969$ 221,093$ 440,540$
LIABILITIES
Accounts payable 77,172$ 773$ -$ -$ 14,347$
Due to other funds - - - - 550,000
Due to other governments - - - - -
Accrued wages and benefits 69,059 - - - -
Other liabilities 1,350 - - 28,164 -
Advances from other funds - - - - -
Total liabilities 147,581 773 - 28,164 564,347
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - property taxes 1,040,000 - - - -
Unavailable revenue - lease revenue - - - - 213,879
Total deferred inflows of resources 1,040,000 - - - 213,879
FUND BALANCES
Restricted:
Public safety:
Fire protection - 1,093,004 - - -
Law enforcement - - - 192,929 -
Public services - - - - -
Mass transit - - - - -
Culture and recreation - - - - -
Economic development - - 363,969 - -
Committed:
Culture and recreation 513,907 - - - -
Unassigned - - - - (337,686)
Total fund balances 513,907 1,093,004 363,969 192,929 (337,686)
Total liabilities, deferred inflows of resources,
and fund balances 1,701,488$ 1,093,777$ 363,969$ 221,093$ 440,540$
September 30, 2023
- 126 -
SCHEDULE 11
CITY OF HATTIESBURG, MISSISSIPPI
Combining Balance Sheet - Nonmajor Special Revenue Funds
MASS TRANSIT COMMUNITY CDBG SPECIAL 1% INTERNET GROUP
OPERATING CENTERS FUND SALES TAX SALES TAX INSURANCE TOTAL
-$ 284,727$ 229,454$ 729,739$ -$ 562,714$ 2,715,488$
545,146 - - 1,757,460 2,605,209 - 6,558,444
- - - - - - 910
- - - 296,670 - - 296,670
424,771 - - - - - 424,771
- - - - - - 213,879
261,666 - - - - - 1,308,261
1,231,583$ 284,727$ 229,454$ 2,783,869$ 2,605,209$ 562,714$ 11,518,423$
15,497$ 9,049$ 186$ 598,415$ -$ -$ 715,439$
- - - - - - 550,000
- - - 129,400 - - 129,400
45,585 21,745 9,862 1,924 - - 148,175
- 13,670 - - - 562,714 605,898
- - 500,000 - - - 500,000
61,082 44,464 510,048 729,739 - 562,714 2,648,912
260,000 - - - - - 1,300,000
- - - - - - 213,879
260,000 - - - - - 1,513,879
- - - - - - 1,093,004
- - - - - - 192,929
- - - 2,605,209 - 2,605,209
910,501 - - - - - 910,501
- - - 2,054,130 - - 2,054,130
- - - - - - 363,969
- 240,263 - - - - 754,170
- - (280,594) - - - (618,280)
910,501 240,263 (280,594) 2,054,130 2,605,209 - 7,355,632
1,231,583$ 284,727$ 229,454$ 2,783,869$ 2,605,209$ 562,714$ 11,518,423$
- 127 -
See independent auditor’s report.
PARKS & MUNICIPAL FIRE SPECIAL POLICE AIRPORT
RECREATION PROTECTION STREET FORFEITURES IMPROVEMENT
REVENUES
General property taxes 1,009,295$ -$ -$ -$ -$
Special sales tax collections - - - - -
Internet sales tax - - - - -
Fines, forfeitures and penalties - 45 - 163,782 -
Interest, rents and concessions 20,587 6,048 2,231 38 8,748
Intergovernmental revenues - 314,831 95,041 - -
Charges for services 79,427 95,652 - - -
Other revenues - - - - 18,817
Total revenues 1,109,309 416,576 97,272 163,820 27,565
EXPENDITURES
Current:
Public safety - 152,055 - 19,720 -
Public services - - 19 - -
Other services - - - - 233,557
Mass transit - - - - -
Culture and recreation 3,762,634 - - - -
Human/social assistance - - - - -
Economic development - - - - -
Debt service:
Principal payments - 60,100 - - -
Interest and fiscal charges - 4,102 - - -
Total expenditures 3,762,634 216,257 19 19,720 233,557
Excess (deficiency) of revenues over expenditures (2,653,325) 200,319 97,253 144,100 (205,992)
OTHER FINANCING SOURCES
Proceeds from long-term debt - - - - -
Other sources 663 - - - -
Transfers in 2,314,335 - - - 250,000
Total other financing sources 2,314,998 - - - 250,000
NET CHANGE IN FUND BALANCES (338,327) 200,319 97,253 144,100 44,008
Fund balances - beginning 852,234 892,685 266,716 48,829 (381,694)
Fund balances - ending 513,907$ 1,093,004$ 363,969$ 192,929$ (337,686)$
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Nonmajor Special Revenue Funds
Year Ended September 30, 2023
- 128 -
SCHEDULE 12
CITY OF HATTIESBURG, MISSISSIPPI
MASS TRANSIT COMMUNITY CDBG SPECIAL 1% INTERNET GROUP
OPERATING CENTERS FUND SALES TAX SALES TAX INSURANCE TOTAL
254,950$ -$ -$ -$ -$ -$ 1,264,245$
- - - 3,889,493 - - 3,889,493
- - - - 5,067,170 - 5,067,170
- - - - - - 163,827
1,949 7,331 4,234 45,220 46,123 - 142,509
2,308,706 164,430 659,371 325,000 - - 3,867,379
929,748 19,904 - - - - 1,124,731
6,187 - - 950,000 - - 975,004
3,501,540 191,665 663,605 5,209,713 5,113,293 - 16,494,358
- - - - 1,832,233 - 2,004,008
- - - - 2,610,025 - 2,610,044
- - - - - - 233,557
4,202,875 - - - - - 4,202,875
- 919,291 - 9,620,490 - - 14,302,415
- - 959,907 - - - 959,907
- - - 600,000 - - 600,000
- - - - - - 60,100
- - - - - - 4,102
4,202,875 919,291 959,907 10,220,490 4,442,258 - 24,977,008
(701,335) (727,626) (296,302) (5,010,777) 671,035 - (8,482,650)
- - - 5,500,000 - 5,500,000
- - - - - - 663
400,000 850,000 36,000 - - - 3,850,335
400,000 850,000 36,000 5,500,000 - - 9,350,998
(301,335) 122,374 (260,302) 489,223 671,035 - 868,348
1,211,836 117,889 (20,292) 1,564,907 1,934,174 - 6,487,284
910,501$ 240,263$ (280,594)$ 2,054,130$ 2,605,209$ -$ 7,355,632$
- 129 -
See independent auditor’s report.
2019 TIF BOND 2014 TIF BOND 2003 TIF BOND 2007 TIF BOND
AND INTEREST CITY BOND AND INTEREST AND INTEREST AND INTEREST
PLANET AND SOUTHERN CHAUVET TURTLE
FITNESS INTEREST POINTE SQUARE CROSSING
ASSETS
Cash and cash equivalents - restricted 137,777$ 4,611,148$ 376,520$ 221,503$ 281,136$
Cash with fiscal agent - restricted - - - - -
Property taxes receivable - 2,616,516 - - -
Total assets 137,777$ 7,227,664$ 376,520$ 221,503$ 281,136$
LIABILITIES
Due to other funds -$ -$ -$ -$ -$
Total liabilities - - - - -
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - property taxes - 2,600,000 - - -
Total deferred inflows of resources - 2,600,000 - - -
FUND BALANCES
Restricted:
Debt service 137,777 4,627,664 376,520 221,503 281,136
Total fund balances 137,777 4,627,664 376,520 221,503 281,136
Total liabilities, deferred inflows
of resources, and fund balances
137,777$ 7,227,664$ 376,520$ 221,503$ 281,136$
September 30, 2023
- 130 -
SCHEDULE 13
CITY OF HATTIESBURG, MISSISSIPPI
Combining Balance Sheet - Nonmajor Debt Service Funds
2008 TIF BOND 2012 TIF 2016 TIF BOND 2016 TIF BOND 2015-A TIF BOND 2015-B TIF BOND 2019 TIF
AND INTEREST BOND AND AND INTEREST AND INTEREST AND INTEREST AND INTEREST BOND AND
LINCOLN INTEREST WHISPERING HATTIESBURG RIDGE AT MIDTOWN INTEREST
CENTER KOHL'S PINES CLINIC TURTLE CREEK MARKET ELAM ARMS TOTAL
65,929$ 5$ 700,904$ 109,018$ 120,366$ 19,867$ 735,497$ 7,379,670$
- - - - - - 154,438 154,438
- - - - - - - 2,616,516
65,929$ 5$ 700,904$ 109,018$ 120,366$ 19,867$ 889,935$ 10,150,624$
-$ 1,500$ -$ 25,000$ -$ 7,000$ -$ 33,500$
- 1,500 - 25,000 - 7,000 - 33,500
- - - - - - - 2,600,000
- - - - - - - 2,600,000
65,929 (1,495) 700,904 84,018 120,366 12,867 889,935 7,517,124
65,929 (1,495) 700,904 84,018 120,366 12,867 889,935 7,517,124
65,929$ 5$ 700,904$ 109,018$ 120,366$ 19,867$ 889,935$ 10,150,624$
- 131 -
See independent auditor’s report.
2019 TIF BOND 2014 TIF BOND 2003 TIF BOND 2007 TIF BOND
AND INTEREST CITY BOND AND INTEREST AND INTEREST AND INTEREST
PLANET AND SOUTHERN CHAUVET TURTLE
FITNESS INTEREST POINTE SQUARE CROSSING
REVENUES
General property taxes 26,485$ 2,525,932$ 138,876$ 200,000$ 115,000$
Interest, rents and concessions 390 12,300 818 633 527
Intergovernmental revenues 32,128 - 119,033 - 62,028
Total revenues 59,003 2,538,232 258,727 200,633 177,555
EXPENDITURES
Current:
Other services - 25,764 - - -
Debt service:
Principal payments 38,962 819,285 180,000 155,000 105,000
Interest and fiscal charges 18,335 2,026,793 66,725 40,790 35,935
Total expenditures 57,297 2,871,842 246,725 195,790 140,935
Excess (deficiency) of revenues over expenditures 1,706 (333,610) 12,002 4,843 36,620
OTHER FINANCING SOURCES
Transfers in - - - - -
Transfer out - - - - -
Total other financing sources - - - - -
NET CHANGE IN FUND BALANCES 1,706 (333,610) 12,002 4,843 36,620
Fund balances - beginning 136,071 4,961,274 364,518 216,660 244,516
Fund balances - ending 137,777$ 4,627,664$ 376,520$ 221,503$ 281,136$
Year Ended September 30, 2023
- 132 -
SCHEDULE 14
CITY OF HATTIESBURG, MISSISSIPPI
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances -
Nonmajor Debt Service Funds
2008 TIF BOND 2012 TIF 2016 TIF BOND 2016 TIF BOND 2015-A TIF BOND 2015-B TIF BOND 2019 TIF
AND INTEREST BOND AND AND INTEREST AND INTEREST AND INTEREST AND INTEREST BOND AND
LINCOLN INTEREST WHISPERING HATTIESBURG RIDGE AT MIDTOWN INTEREST
CENTER KOHL'S PINES CLINIC TURTLE CREEK MARKET ELAM ARMS TOTAL
-$ -$ 167,295$ 34,040$ 89,571$ 10,707$ 133,642$ 3,441,548$
92 1 1,590 270 219 28 8,238 25,106
- - 210,285 41,583 29,853 10,762 164,980 670,652
92 1 379,170 75,893 119,643 21,497 306,860 4,137,306
- - - - - - - 25,764
50,000 - 190,000 53,000 75,000 13,000 172,000 1,851,247
2,500 - 92,043 22,645 46,353 9,613 121,935 2,483,667
52,500 - 282,043 75,645 121,353 22,613 293,935 4,360,678
(52,408) 1 97,127 248 (1,710) (1,116) 12,925 (223,372)
- - - - - - 66,407 66,407
- (247) - - - - - (247)
- (247) - - - - 66,407 66,160
(52,408) (246) 97,127 248 (1,710) (1,116) 79,332 (157,212)
118,337 (1,249) 603,777 83,770 122,076 13,983 810,603 7,674,336
65,929$ (1,495)$ 700,904$ 84,018$ 120,366$ 12,867$ 889,935$ 7,517,124$
- 133 -
See independent auditor’s report.
KAMPER
TIF BOND PARK/ZOO
CONSTRUCTION CONSTRUCTION IMPROVEMENTS TOTAL
ASSETS
Cash and cash equivalents - restricted 825$ 947,709$ 2,394$ 950,928$
Total assets 825$ 947,709$ 2,394$ 950,928$
FUND BALANCES
Restricted:
Public safety - law enforcement -$ 947,709$ -$ 947,709$
Culture and recreation - - 2,394 2,394
Economic development 825 - - 825
Total fund balances 825 947,709 2,394 950,928
Total fund balances 825$ 947,709$ 2,394$ 950,928$
September 30, 2023
- 134 -
SCHEDULE 15
CITY OF HATTIESBURG, MISSISSIPPI
Combining Balance Sheet - Nonmajor Capital Project Funds
See independent auditor’s report.
KAMPER
TIF BOND PARK/ZOO
CONSTRUCTION CONSTRUCTION IMPROVEMENTS TOTAL
REVENUES
Interest, rents and concessions 2$ 1,268$ 35$ 1,305$
Total revenues 2 1,268 35 1,305
NET CHANGE IN FUND BALANCES 2 1,268 35 1,305
Fund balances - beginning 823 946,441 2,359 949,623
Fund balances - ending 825$ 947,709$ 2,394$ 950,928$
Year Ended September 30, 2023
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances -
- 135 -
SCHEDULE 16
CITY OF HATTIESBURG, MISSISSIPPI
Nonmajor Capital Project Funds
See independent auditor’s report.
PERSONNEL SUPPLIES
SERVICES & EXPENSES
GENERAL GOVERNMENT
City Council 375,056$ 2,324$
Mayor/Administration 820,093 15,647
Municipal Clerk 184,451 505
Accounting Division 267,073 3,147
Purchasing Division 133,375 2,445
City Attorney 87,745 -
Human Resources Division 252,157 1,677
Loss Control Division 75,763 1,295
Urban Development 498,745 14,561
Information Systems 280,705 33,863
Metro Planning 169,523 569
General Government Building - 14,560
General Government - Other - 164
Intermodal Facility - 6,027
Federal Grant Administration 75,899 293
City Court 1,148,577 49,072
Total General Government 4,369,162 146,149
PUBLIC SAFETY
Police Department 10,893,396 723,213
Police and Fire Training 37,934 62,489
Fire Department 8,879,843 285,927
Land Development Administration 602,154 31,334
Contractual Services 212,484 -
Total Public Safety 20,625,811 1,102,963
PUBLIC SERVICE
Traffic Maintenance 295,536 109,413
Street Division 854,653 260,295
Street Lights - -
Engineering 534,703 11,860
Shop Division 392,101 22,362
Garage and Office - 970
Drainage Division - 7,371
Construction Division 513,219 82,997
Sanitation Division 1,478,108 522,973
Health Division 1,037,074 143,287
Total Public Service 5,105,394 1,161,528
- 136 -
Year Ended September 30, 2023
SCHEDULE 17
PAGE 1 OF 2
CITY OF HATTIESBURG, MISSISSIPPI
Statement of Departmental Expenditures - Budgetary Basis - General Fund
OTHER
SERVICES/ CAPITAL DEBT
CHARGES OUTLAYS SERVICE TOTAL
221,410$ 4,161$ -$ 602,951$
178,358 - - 1,014,098
31,439 - - 216,395
1,930 - - 272,150
3,237 - - 139,057
- - - 87,745
4,984 - - 258,818
938 - - 77,996
82,816 - - 596,122
823,277 35,437 - 1,173,282
8,848 - - 178,940
159,602 - - 174,162
3,301,529 - - 3,301,693
67,020 51,923 - 124,970
7,757 - - 83,949
394,562 - - 1,592,211
5,287,707 91,521 - 9,894,539
957,496 627,281 - 13,201,386
54,791 46,000 - 201,214
303,000 6,671 - 9,475,441
228,566 71,776 - 933,830
907,519 - - 1,120,003
2,451,372 751,728 - 24,931,874
34,764 28,935 - 468,648
1,308,803 68,101 - 2,491,852
1,299,421 - - 1,299,421
343,327 - - 889,890
46,635 - - 461,098
18,119 - - 19,089
45,153 520,060 - 572,584
92,057 - - 688,273
1,449,263 1,345,000 - 4,795,344
1,648 57,664 - 1,239,673
4,639,190 2,019,760 - 12,925,872
- 137 -
See independent auditor’s report.
PERSONNEL SUPPLIES
SERVICES & EXPENSES
HUMAN/SOCIAL ASSISTANCE
Human/Social Assistance -$ -$
Total Human/Social Assistance - -
ECONOMIC DEVELOPMENT
Economic Development - -
Total Economic Development - -
OTHER SERVICES
Animal Control 126,307 10,716
Airport - 6,659
Cemetery 631,225 74,635
Parking Operations 33,150 222
Total Other Services 790,682 92,232
DEBT SERVICE - -
TOTAL DEPARTMENTAL EXPENDITURES 30,891,049$ 2,502,872$
Statement of Departmental Expenditures - Budgetary Basis - General Fund
Year Ended September 30, 2023
- 138 -
SCHEDULE 17
PAGE 2 OF 2
CITY OF HATTIESBURG, MISSISSIPPI
OTHER
SERVICES/ CAPITAL DEBT
CHARGES OUTLAYS SERVICE TOTAL
452,128$ -$ -$ 452,128$
452,128 - - 452,128
3,539,900 483,606 - 4,023,506
3,539,900 483,606 - 4,023,506
200,330 - - 337,353
21,863 - - 28,522
50,917 286,042 - 1,042,819
22,552 - - 55,924
295,662 286,042 - 1,464,618
- - 1,122,220 1,122,220
16,665,959$ 3,632,657$ 1,122,220$ 54,814,757$
- 139 -
See independent auditor’s report.
Tax Industrial Hattiesburg
Collectors Park Special
Fund Fund Sales Tax Total
ASSETS
Cash and cash equivalents 73,195$ 16,416$ -$ 89,611$
Other receivables 1,026,359 - - 1,026,359
Sales tax receivable - - 72,243 72,243
Total assets 1,099,554$ 16,416$ 72,243$ 1,188,213$
LIABILITIES
Employee contributions payable -$ -$ -$ -$
Due to other funds 247,177$ -$ -$ 247,177$
Other liabilities - 1,320 40 1,360
Total liabilities 247,177 1,320 40 248,537
NET POSITION
Restricted for:
Individuals, organizations and other governments 852,377 15,096 72,203 939,676
Total net position 852,377 15,096 72,203 939,676
Total liabilities and net position 1,099,554$ 16,416$ 72,243$ 1,188,213$
- 140 -
SCHEDULE 18
CITY OF HATTIESBURG, MISSISSIPPI
Combining Statement of Fiduciary Net Position - Custodial Funds
September 30, 2023
See independent auditor’s report.
Tax Industrial Hattiesburg
Collectors Park Special
Fund Fund Sales Tax Total
ADDITIONS
Property tax revenues 50,781,948$ -$ -$ 50,781,948$
Sales tax revenues - - 954,021 954,021
Intergovernmental revenues - 445,000 - 445,000
Other revenues - 26,717 - 26,717
Interest 11,071 1,153 - 12,224
Total additions 50,793,019 472,870 954,021 52,219,910
DEDUCTIONS
Payments of taxes to other funds 50,252,468 - - 50,252,468
Administrative expense - 61,554 - 61,554
Other expense - 557,480 961,846 1,519,326
Total deductions 50,252,468 619,034 961,846 51,833,348
CHANGE IN FIDUCIARY NET POSITION 540,551 (146,164) (7,825) 386,562
NET POSITION - BEGINNING 311,826 161,260 80,028 553,114
NET POSITION - ENDING 852,377$ 15,096$ 72,203$ 939,676$
- 141 -
SCHEDULE 19
CITY OF HATTIESBURG, MISSISSIPPI
Combining Statement of Changes in Fiduciary Net Position - Custodial Funds
Year Ended September 30, 2023
See independent auditor’s report.
Name Position Insurance Company Amount
Thomas "Toby" Barker Mayor Travelers 100,000$
Deborah Denard Delgado Council Member FCCI Insurance Co. 100,000
Edmond Carter Carroll Council Member Western Surety Co. 100,000
Dave Ware Council Member FCCI Insurance Co. 100,000
Nicholas R. Brown Council Member FCCI Insurance Co. 100,000
Jeffrey Randolph George Council Member Travelers 100,000
Kermas Eaton City Clerk Travelers 50,000
Peggy Sealy Police Chief FCCI Insurance Co. 50,000
September 30, 2023
- 142 -
SCHEDULE 20
CITY OF HATTIESBURG, MISSISSIPPI
Schedule of Surety Bonds for Municipal Officials
See independent auditor’s report.
EXPENSES - Sanitation Cost Center (General Fund):
Personnel costs 1,478,108$
Supplies 522,973
Other services and charges 1,449,263
Total expenses (other than capital outlay) sanitation cost center 3,450,344
Depreciation expense 159,645
Allocation of certain expenses in Other Cost Centers:
50% of shop cost center - repair and maintenance 230,549
Indirect cost allocation - 10% of administration cost centers 222,544
Total calculated expenses - full cost basis 4,063,082$
Number of tons of solid waste collected and disposed of by City:
Sanitation trucks:
Garbage (tons) 15,381
Trash (tons) 53,434
Total tons solid waste 68,815
Distribution of residential and non-residential costs:
Residential (84%) 3,412,989$
Non-residential (16%) 650,093
Total distribution 4,063,082$
NOTES:
accounting of sanitation services. “Residential” solid waste service includes routine household garbage and
yard waste collections and disposal. Additionally, duplexes and smaller apartments with individual water
meters are also considered to be “residential” customers. “Non-residential” would include garbage and trash
service to City-owned facilities, overgrown lot and demolition debris, waste generated by tree crews or other city
departments. The distribution of “Residential” and “Non-residential” at 84/16 is based upon regularly scheduled
direct labor hours. Unusual occurrences, such as severe storm damage or demolition of large structures will
cause significant fluctuations both in labor hours and debris removal costs.
Pursuant to Section 17-17-347 of the Mississippi Code, this schedule is presented to provide a full cost
- 143 -
SCHEDULE 21
CITY OF HATTIESBURG, MISSISSIPPI
Full Cost Accounting - Solid Waste Management Services
Year Ended September 30, 2023
See independent auditor’s report.
Revenues (Special Sales Tax Fund):
Additional 1% Sales Taxes
Restaurants 3,383,075$
Hotels and motels 506,418
Total additional 1% sales taxes 3,889,493
Other revenues
Contributions - forrest 325,000
Contributions - other 950,000
Interest 45,220
Total other revenues 1,320,220
Total revenues 5,209,713
Expenditures
Culture and recreation 7,548,329
Economic development 600,000
Payments to USM of 1/2 of special taxes collected 2,071,750
Miscellaneous 411
Total expenditures 10,220,490
Other Financing Sources
Proceeds from bonds 5,500,000
Total other financing sources 5,500,000
NET CHANGE IN FUND BALANCE 489,223
Fund balance - beginning 1,564,907
Fund balance - ending 2,054,130$
NOTES:
Pursuant to Senate Bill 3069 enacted during the 2018 regular session of the Mississippi Legislature, the above
schedule is presented as a recapitulation of the additional 1% sales taxes levied by the City of Hattiesburg as
authorized by that legislation. This additional 1% sales tax is collected from the specified restaurants,
alcoholic beverage retail stores, hotels, and motels in the City of Hattiesburg. The proceeds of this tax are
settled to the City each month and deposited into a separate fund. One-half of these taxes are then remitted
to the University of Southern Mississippi for improvements to athletic facilities and one-half is used for
improvements to City parks and recreation facilities. If the City's share exceeds the projected $1.2 million per
year to be used for city parks and recreation, the City will use those additional taxes for sidewalks and multi-
use paths located in seven designated areas within the City.
- 144 -
SCHEDULE 22
CITY OF HATTIESBURG, MISSISSIPPI
Report on Revenues and Expenditures
Additional 1% Sales Tax for City Parks & Recreation Projects
Year Ended September 30, 2023
and Improvements to USM Athletic Facilities - Modified Accrual Basis
See independent auditor’s report.
OPERATIONS AND
MAINTENANCE
FUND
BOND AND
INTEREST
FUND
REVENUE
FUND
ASSETS
CURRENT ASSETS
Cash and cash equivalents 791,895$ -$ 4,078,075$
Cash and cash equivalents - restricted - 6,294,049 -
Cash with fiscal agent - restricted - 23,021,229 -
Prepaid insurance - bonds - 430,807 -
Due from other funds 1,176,824 297,500 -
Total current assets 1,968,719 30,043,585 4,078,075
Total assets
1,968,719$ 30,043,585$ 4,078,075$
LIABILITIES AND NET POSITION
CURRENT LIABILITIES
Accounts payable -$ -$ 44,593$
Sales tax payable - - 179,904
Customer deposits - - 1,789,068
Due to other funds - - 2,360,406
Total current liabilities - - 4,373,971
Total liabilities
- - 4,373,971
NET POSITION
1,968,719 30,043,585 (295,896)
Total liabilities and net position
1,968,719$ 30,043,585$ 4,078,075$
Water and Sewer Budget Basis Balance Sheets
September 30, 2023
- 145 -
SCHEDULE 23
CITY OF HATTIESBURG, MISSISSIPPI
ENVIRONMENTAL
ESCROW FUND
CONSTRUCTION
FUND
2016
CONSTRUCTION
FUND
2012
CONSTRUCTION
FUND
2010
CONSTRUCTION
FUND
-$ -$ -$ -$ -$
- 1,779,371 - - -
175,023 - - 66 594
- - - - -
- 479,575 - - -
175,023 2,258,946 - 66 594
175,023$ 2,258,946$ -$ 66$ 594$
-$ -$ -$ -$ -$
- - - - -
15,424 - - -
- - - - -
- 15,424 - - -
- 15,424 - - -
175,023 2,243,522 - 66 594
175,023$ 2,258,946$ -$ 66$ 594$
- 146 -
See independent auditor’s report.
OPERATIONS AND
MAINTENANCE FUND
BOND AND
INTEREST
FUND
REVENUE FUND
OPERATING REVENUES
75,020$ -$ 28,012,115$
OPERATING EXPENSES
Personnel services 3,104,792 - -
Supplies and expenses 1,518,308 - -
Other services and charges 9,540,440 - -
Other operating expenses 129,542 - 3,671
Total operating expenses 14,293,082 - 3,671
OPERATING INCOME (LOSS)
(14,218,062) - 28,008,444
NON-OPERATING REVENUES
(EXPENSES)
Proceeds from long-term debt - - -
Principal payments on notes - (12,190,444) -
Interest expense - (2,194,103) (11,450)
Interest revenue 5,676 173,851 53,607
Intergovernmental revenues - - -
Other revenue 1,586 - 126,600
Other expense - (359,998) -
Total non-operating revenues
(expenses) 7,262 (14,570,694) 168,757
INCOME (LOSS) BEFORE OPERATING
TRANSFERS
(14,210,800) (14,570,694) 28,177,201
OPERATING TRANSFERS
Operating transfers in 13,990,309 8,560,981 -
Operating transfers out - - (28,095,986)
Total operating transfers 13,990,309 8,560,981 (28,095,986)
CHANGES IN NET POSITION
(220,491)$ (6,009,713)$ 81,215$
Year Ended September 30, 2023
- 147 -
SCHEDULE 24
CITY OF HATTIESBURG, MISSISSIPPI
Water and Sewer Budget Basis Statements of Revenues, Expenses,
and Changes in Net Position
ENVIRONMENTAL
ESCROW FUND
CONSTRUCTION
FUND
2016
CONSTRUCTION
FUND
2012
CONSTRUCTION
FUND
2010
CONSTRUCTION
FUND
-$ -$ -$ -$ -$
- - - - -
- - - - -
- 985,627 - - -
- 5,510,151 143,635 - -
- 6,495,778 143,635 - -
- (6,495,778) (143,635) - -
- 455,494 - - -
- - - - -
- - - - -
4,006 4,370 64,340 2 22
- 70,824 - - -
- 56,656 - - -
- - - - -
4,006 587,344 64,340 2 22
4,006 (5,908,434) (79,295) 2 22
70,800 6,246,739 - - -
- - (1,596,843) - -
70,800 6,246,739 (1,596,843) - -
74,806$ 338,305$ (1,676,138)$ 2$ 22$
- 148 -
See independent auditor’s report.
Personnel
Services
Supplies and
Expenses
Other Services
and Charges
Capital Outlays Total
Office 731,961$ 62,685$ 436,910$ 34,255$ 1,265,811$
Transmission 1,043,817 552,188 2,692,810 - 4,288,815
Plant 615,193 465,994 1,373,580 87,156 2,541,923
Sewer 373,177 205,258 3,045,458 8,131 3,632,024
Sewer lagoon 340,644 232,183 1,991,682 - 2,564,509
.
Total expenses
3,104,792$ 1,518,308$ 9,540,440$ 129,542$ 14,293,082$
Year Ended September 30, 2023
- 149 -
SCHEDULE 25
CITY OF HATTIESBURG, MISSISSIPPI
Water and Sewer Budget Basis Operation and Maintenance Cost Centers
The accompanying notes to the schedule of expenditures of federal awards are an integral part of this schedule.
Federal Grantor/Pass-Through Grantor/Program or
Cluster Title
Federal Assistance
Listing Number
Pass-Through Entity Identifying
Number
Federal
Expenditures
Amounts
Provided to
Subrecipients
U.S. Department of Housing and Urban Development
Pass-Through Programs From:
Governor’s Department of Housing and Urban
Development
CDBG Entitlement Grants - Cluster:
Community Development Block Grants /
Entitlement Grants 14.218 MC-28-0006 665,376$
HOME Investment Partnerships Program 14.239
MC-28-0201/M21-MP280201 38,340
Pass-Through Programs From:
Office of Lead Hazard Control and Healthy Homes
Lead-Based Paint Hazard Control in
Privately-Owned Housing 14.900
MSLHB0771-21 83,948
Total U.S. Department of Housing and Urban
Development Pass-Through Programs 787,664
U.S. Department of Justice
Office of Justice Programs:
Coronavirus Emergency Supplemental Funding
Program 16.034 N/A 2,750
Office of Justice Programs:
Violence Against Women Formula Grants 16.588 N/A 125,385
Bulletproof Vest Partnership Program 16.607 N/A 14,979
COPS Hiring Program 16.607 2020UMWX0429 77,732
92,711
YEAR ENDED SEPTEMBER 30, 2023
- 150 -
SCHEDULE 26
PAGE 1 OF 5
CITY OF HATTIESBURG, MISSISSIPPI
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
The accompanying notes to the schedule of expenditures of federal awards are an integral part of this schedule.
Federal Grantor/Pass-Through Grantor/Program or
Cluster Title
Federal Assistance
Listing Number
Pass-Through Entity Identifying
Number
Federal
Expenditures
Amounts
Provided to
Subrecipients
U.S. Department of Justice (Cont.)
Edward Byrne Memorial Justice Assistance
Grant Program 16.738 N/A 12,187$
Edward Byrne Memorial Justice Assistance
Grant Program 16.738 N/A 23,412 9,397$
35,599
Total U.S. Department of Justice
Direct Programs 256,445
Pass-Through Programs From:
Mississippi Department of Health
OVW Technical Assistance Initiative 16.526 2023-ST-019 41,648
Total U.S. Department of Justice Pass-
Through Programs 41,648
U.S. Department of Transportation
Federal Aviation Administration
Airport Improvement Program 20.106 N/A 14,026
Airport Improvement Program 20.106 N/A 75,222
Drainage Improvement Program 20.106 N/A 3,198
92,446
Consolidated Rail Infrastructure and Safety
Improvements 20.325 N/A 2,349,350
- 151 -
SCHEDULE 26
PAGE 2 OF 5
CITY OF HATTIESBURG, MISSISSIPPI
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED SEPTEMBER 30, 2023
The accompanying notes to the schedule of expenditures of federal awards are an integral part of this schedule.
Federal Grantor/Pass-Through Grantor/Program or
Cluster Title
Federal Assistance
Listing Number
Pass-Through Entity Identifying
Number
Federal
Expenditures
Amounts
Provided to
Subrecipients
U.S. Department of Transportation (Cont.)
Federal Transit Administration
Federal Transit Cluster:
Federal Transit Formula Grants:
Mass Transit Capital 20.507 N/A 24,992$
Mass Transit Capital 20.507 N/A 170,840
Mass Transit Capital 20.507 N/A 89,360
Mass Transit Capital 20.507 N/A 169,720
Mass Transit Operating 20.507 N/A 438,729
Mass Transit Preventive 20.507 N/A 17,789
Mass Transit Capital 20.507 N/A 200,000
Mass Transit Operating 20.507 N/A 148,271
Mass Transit Preventive/Capital 20.507 N/A 332,518
Mass Transit Rolling Stock 20.507 N/A 13,230
Mass Transit Rolling Stock 20.507 N/A 210,937
Mass Transit Capital 20.507 N/A 35,196
Mass Transit Capital 20.507 N/A 11,636
Mass Transit Capital 20.507 N/A 838,380
Mass Transit Operating 20.507 N/A 387,258
Total - Federal Transit Cluster 3,088,856
Total U.S. Department of Transportation
Direct Programs 5,530,652
-
PAGE 3 OF 5
CITY OF HATTIESBURG, MISSISSIPPI
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED SEPTEMBER 30, 2023
- 152 -
SCHEDULE 26
The accompanying notes to the schedule of expenditures of federal awards are an integral part of this schedule.
Federal Grantor/Pass-Through Grantor/Program or
Cluster Title
Federal Assistance
Listing Number
Pass-Through Entity Identifying
Number
Federal
Expenditures
Amounts
Provided to
Subrecipients
U.S. Department of Transportation (Cont.)
Federal Highway Administration
Pass-Through Programs From:
Mississippi Department of Transportation
Highway Planning and Construction Cluster:
Metropolitan Planning Organization 20.205 N/A 120,183$
Hall Avenue West Overpass Build Grant 20.205 FBLD-8769-00(001)108639-801000 8,541,701
Country Club Road Improvements 20.205 STP-8760-00(005)LPA/108134-701000 382,651
Hardy Street Roundabout Improvements 20.205 STP-0210-00(037)LPA/108081-701000 331,681
Total - Highway Planning and
Construction Cluster 9,376,216
National Highway Traffic Safety Administration
Pass-Through Programs From:
Mississippi Department of Public Safety -
Office of Highway Safety
Alcohol Open Container Requirements 20.607 154-AL-2022-ST-21-51 60,158
Total U.S. Department of Transportation
Pass-Through Programs 9,436,374
U.S. Department of Treasury
Coronavirus State and Local Fiscal Recovery
Funds 21.027 N/A 1,297,567
Total U.S. Department of Treasury
Direct Program 1,297,567
YEAR ENDED SEPTEMBER 30, 2023
- 153 -
SCHEDULE 26
PAGE 4 OF 5
CITY OF HATTIESBURG, MISSISSIPPI
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
The accompanying notes to the schedule of expenditures of federal awards are an integral part of this schedule.
Federal Grantor/Pass-Through Grantor/Program or
Cluster Title
Federal Assistance
Listing Number
Pass-Through Entity Identifying
Number
Federal
Expenditures
Amounts
Provided to
Subrecipients
U.S. Department of Commerce
Pass-Through Programs From:
Mississippi Arts Commission
Promotion of the Arts Partnership Agreements 45.025 23-25667986-AI/BFA 219,240$
Total U.S. Department of Commerce 219,240
Pass-Through-Programs
U.S. Department of Health and Human Services
Substance Abuse and Mental Health Services
Projects of Regional and National Significance 93.243 N/A 183,290
Total U.S. Department of Health and Human
Services Direct Programs 183,290
Executive Office of the President
Pass-Through Program From:
Mississippi Bureau of Narcotics
High Intensity Drug Trafficking Areas Program 95.001 G21GC0003A 20,060
Total Executive Office of the President
Pass-Through Programs 20,060
U.S. Department of Homeland Security
Pass-Through Programs From:
Mississippi Emergency Management Agency
Disaster Grants - Public Assistance
(Presidentially Declared Disasters) 97.036 FEMA-4626-DR-MS 346,850
Total U.S. Department of Homeland
Security Pass-Through Programs 346,850
Total Expenditures of Federal Awards 18,119,790$ 9,397$
YEAR ENDED SEPTEMBER 30, 2023
- 154 -
SCHEDULE 26
PAGE 5 OF 5
CITY OF HATTIESBURG, MISSISSIPPI
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
- 155 -
CITY OF HATTIESBURG
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED SEPTEMBER 30, 2023
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accompanying schedule of expenditures of federal awards (the Schedule) includes the
federal grant activity of the City of Hattiesburg under programs of the federal government for the year
ended September 30, 2023. The information in this Schedule is presented in accordance with the
requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).
Because the Schedule presents only a selected portion of the operations of the City of Hattiesburg, it is
not intended to and does not present the financial position, changes in net position, or cash flows of the
City of Hattiesburg.
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such
expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein
certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity
identifying numbers are presented where available.
NOTE 2 - DE MINIMIS COST RATE
The City elected not to recover indirect costs for federal programs using the 10.00% de minimis
cost rate allowed under the Uniform Guidance.
NOTE 3 - PAYMENTS MADE TO SUBRECIPIENTS
Federal funds provided to subrecipients from the Edward Byrne Memorial Justice Assistance
Program during the year ended September 30, 2023 totaled $9,397.
(This Space Intentionally Left Blank)
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
To the Honorable Mayor and Members of the City Council
City of Hattiesburg, Mississippi
We have audited, 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, the financial statements of the governmental activities, the business-type activities, the discretely
presented component unit, each major fund, and the aggregate remaining fund information of the City of Hattiesburg,
Mississippi as of and for the year ended September 30, 2023, and the related notes to the financial statements, which
collectively comprise the City of Hattiesburg, Mississippi's basic financial statements, and have issued our report thereon
dated June 25, 2024.
Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City of Hattiesburg, Mississippi'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 of Hattiesburg, Mississippi's internal control. Accordingly, we do not express an
opinion on the effectiveness of the City of Hattiesburg, Mississippi'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.
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To the Honorable Mayor and Members of the City Council
City of Hattiesburg, Mississippi
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
and therefore, material weaknesses or significant deficiencies may exist that were not identified. We identified certain
deficiencies in internal control, described in the accompanying schedule of findings and questioned costs as items 2023-001
through 2023-005 that we consider to be material weaknesses.
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City of Hattiesburg, Mississippi'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
matters that are required to be reported under Government Auditing Standards.
City of Hattiesburg’s Response to Findings
Government Auditing Standards requires the auditor to perform limited procedures on the City of Hattiesburg,
Mississippi's response to the findings identified in our audit and described in the accompanying schedule of findings and
questioned costs. The City of Hattiesburg, Mississippi's response was not subjected to the other auditing procedures applied
in the audit of the financial statements and, accordingly, we express no opinion on it.
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.
Hattiesburg, Mississippi
June 25, 2024
INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR
EACH MAJOR FEDERAL PROGRAM AND REPORT ON
INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE
WITH THE UNIFORM GUIDANCE
To the Honorable Mayor and Members of the City Council
City of Hattiesburg, Mississippi
Report on Compliance for Each Major Federal Program
Opinion on Compliance for Each Major Federal Program
We have audited the City of Hattiesburg, Mississippi's compliance with the types of compliance requirements
identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on each of the
City of Hattiesburg, Mississippi's major federal programs for the year ended September 30, 2023. The City of Hattiesburg,
Mississippi's major federal programs are identified in the summary of auditor’s results section of the accompanying schedule
of findings and questioned costs.
In our opinion, the City of Hattiesburg, Mississippi complied, in all material respects, with the compliance
requirements referred to above that could have a direct and material effect on each of its major federal programs for the year
ended September 30, 2023.
Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United
States of America (GAAS); the standards applicable to financial audits contained in Government Auditing Standards issued
by the Comptroller General of the United States (Government Auditing Standards); and the audit requirements of Title 2 U.S.
Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for
Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further
described in the Auditor’s Responsibilities for the Audit of Compliance section of our report.
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To the Honorable Mayor and Members of the City Council
City of Hattiesburg, Mississippi
We are required to be independent of the City of Hattiesburg, Mississippi and to meet our other ethical
responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we
have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program.
Our audit does not provide a legal determination of the City of Hattiesburg, Mississippi’s compliance with the compliance
requirements referred to above.
Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design,
implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes,
regulations, rules and provisions of contracts or grant agreements applicable to the City of Hattiesburg, Mississippi’s federal
programs.
Auditor’s Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance
requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City of Hattiesburg,
Mississippi’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute
assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing
Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting
material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance
requirements referred to above is considered material, if there is a substantial likelihood that, individually or in the aggregate,
it would influence the judgment made by a reasonable user of the report on compliance about the City of Hattiesburg,
Mississippi’s compliance with the requirements of each major federal program as a whole.
In performing an audit in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform
audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence
regarding the City of Hattiesburg, Mississippi’s compliance with the compliance requirements referred to above
and performing such other procedures as we considered necessary in the circumstances.
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To the Honorable Mayor and Members of the City Council
City of Hattiesburg, Mississippi
• Obtain an understanding of the City of Hattiesburg, Mississippi’s internal control over compliance relevant to the
audit in order to design audit procedures that are appropriate in the circumstances and to test and report on
internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of
expressing an opinion on the effectiveness of the City of Hattiesburg, Mississippi’s internal control over
compliance. Accordingly, no such opinion is expressed.
We are required to communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance
that we identified during the audit.
Report on Internal Control over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over compliance
does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect
and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material
weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over
compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of
a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal
control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of
compliance requirement of a federal program that is less severe than a material weakness in internal control over
compliance, yet important enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s
Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control
over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given
these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to
be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over
compliance may exist that were not identified.
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over
compliance. Accordingly, no such opinion is expressed.
The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal
control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this
report is not suitable for any other purpose.
Hattiesburg, Mississippi
June 25, 2024
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SCHEDULE 27
PAGE 1 OF 8
CITY OF HATTIESBURG, MISSISSIPPI
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED SEPTEMBER 30, 2023
Section I - Summary of Auditor's Results
Financial Statements
Type of auditor's report issued on the financial statements:
Opinion Unit
Opinion
Governmental Activities
Unmodified
Business-type Activities
Unmodified
Discretely Presented Component Unit
Unmodified
General Fund
Unmodified
Municipal Road and Bridge Fund
Unmodified
COVID Fiscal Recovery Fund
Unmodified
Series 2019 and 2020 Bond Projects Fund
Unmodified
Aggregate Remaining Governmental Funds
Unmodified
Combined Water and Sewer System
Unmodified
Internal control over financial reporting:
Material weaknesses identified?
Yes
Significant deficiency identified not considered to be a material
weakness?
None reported
Noncompliance material to financial statements noted?
No
Federal Awards
Internal control over major federal programs:
Material weaknesses identified?
No
Significant deficiencies identified?
None reported
Type of auditor's report issued on compliance for each major federal
program:
Highway Planning and Construction Cluster
Unmodified
Consolidated Rail Infrastructure and Safety Improvements
Unmodified
Coronavirus State and Local Fiscal Recovery Funds
Unmodified
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SCHEDULE 27
PAGE 2 OF 8
CITY OF HATTIESBURG, MISSISSIPPI
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED SEPTEMBER 30, 2023
Section I - Summary of Auditor's Results (Cont.)
Identification of major federal programs:
CFDA Number
Name of Federal Program or Cluster
20.205
Highway Planning and Construction Cluster
20.325
Consolidated Rail Infrastructure and Safety Improvements
21.027
Coronavirus State and Local Fiscal Recovery
Dollar threshold used to distinguish between Type A and Type B programs:
$750,000
Auditee qualified as low-risk auditee?
No
Section II - Financial Statement Findings
Finding:
Finding 2023-001 Entity-Level Control Environment and Risk Assessment Processes
Finding Type: Material Weakness
Criteria - The Committee of Sponsoring Organizations of the Treadway Commission (COSO)
model has been adopted as the generally accepted framework for evaluating internal controls framework,
organizational structure, assignment of authority and responsibility, estimating the potential significance of
risks relevant to achievement of financial reporting objectives, and responding to such risks represent
elements of entity-level internal controls.
Condition - The City did not timely initiate or make substantial progress in implementation of
corrective actions in response to material weaknesses and significant deficiencies in internal control
identified in its financial statement audit for the year ended September 30, 2023.
Context - The City has previously developed a comprehensive plan in response to certain material
entity-level control weaknesses related to financial reporting, but the City had not yet implemented corrective
actions during fiscal year 2023.
Cause - The City's organizational structure, depth of resources of personnel with suitable
knowledge and skill in financial reporting, and process for evaluating and addressing risks related to
financial reporting result in entity-level control weaknesses.
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SCHEDULE 27
PAGE 3 OF 8
CITY OF HATTIESBURG, MISSISSIPPI
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED SEPTEMBER 30, 2023
Section II - Financial Statement Findings (Cont.)
Finding 2023-001 Entity-Level Control Environment and Risk Assessment Processes
(Cont.)
Effect - Previously identified material weaknesses in internal control continued unmitigated in fiscal
year 2023.
Identification of Repeat Finding 2022-001
Recommendation - The Administration should take steps to implement corrective actions for
identified material weaknesses in internal controls and assess its overall control environment and risk
assessment processes.
Views of Responsible Officials - See the Auditee's Corrective Action Plan.
Finding:
Finding 2023-002 Entity-Level Information, Communication and Monitoring
Finding Type: Material weakness
Criteria - The City must maintain effective internal accounting procedures over information,
communication, and monitoring functions, including bank reconciliations, that relate to financial reporting
and legal compliance.
Condition - The City's financial reporting system and monitoring processes lack sufficient depth
and structure to ensure that all relevant information is timely identified, communicated to appropriate
financial and accounting personnel, assessed for financial reporting impact, and assimilated into the
financial reporting process.
Context - The City’s centralized accounting system does not have a structured and cohesive
process to obtain, maintain, and analyze data from varied sources as part of its information management
and financial reporting system or to communicate and educate departmental personnel regarding criteria
and responsibilities for conveyance of information.
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SCHEDULE 27
PAGE 4 OF 8
CITY OF HATTIESBURG, MISSISSIPPI
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED SEPTEMBER 30, 2023
Section II - Financial Statement Findings (Cont.)
Finding 2023-002 Entity-Level Information, Communication and Monitoring (Cont.)
Cause - The City's entity-wide controls and procedures do not effectively ensure that all relevant
information is timely incorporated into the financial reporting process. In addition, lines of authority and
responsibility under the City's organizational structure are incompatible with the structure of its financial
reporting process. Further, the City has experienced significant turnover of management personnel in
recent years. Staff turnover has caused loss of knowledge base, including familiarity with informal and
undocumented procedures performed in prior years.
Effect - Deficiencies in information, communication and monitoring processes cause
unnecessary hardship in the preparation of the annual financial reporting process.
Identification of Repeat Finding 2022-002
Recommendation - The City should immediately develop and implement procedures to enhance
its process for timely identifying, maintaining, conveying, and reporting information relevant to financial
reporting. Procedures should be formally documented and incorporated into the financial reporting
process on an ongoing basis, and personnel responsible for financial reporting monitoring and oversight
should have appropriate levels of authority in order to enforce accountability of personnel responsible for
accumulating, maintaining, and communicating data.
Views of Responsible Officials - See the Auditee's Corrective Action Plan.
Finding:
Finding 2023-003 Financial Statement Adjustment, Close, and Disclosure
Finding Type: Material weakness
Criteria - The City’s internal accounting controls, including year-end procedures, should be
sufficient to ensure that amounts are properly classified, that accounts are properly valued, and that
pertinent rights and obligations are properly reflected in the financial statements in accordance with U.S.
generally accepted accounting principles.
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SCHEDULE 27
PAGE 5 OF 8
CITY OF HATTIESBURG, MISSISSIPPI
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED SEPTEMBER 30, 2023
Section II - Financial Statement Findings (Cont.)
Finding 2023-003 Financial Statement Adjustment, Close, and Disclosure (Cont.)
Condition - The City does not routinely maintain data necessary to prepare required conversions
from its cash basis accounting records to the modified accrual and/or accrual basis of accounting
required for financial reporting purposes. Additionally, the City's accounting system does not consistently
ensure proper cut-off and valuation or completeness of transactions and balances at year-end for
reporting purposes.
Context - The City's financial reporting system centers on its budgetary cash basis accounting
processes and this typically requires extensive manual processes after the end of the fiscal year for
financial reporting purposes. These year-end processes have become increasingly difficult due to the
complexity of governmental financial reporting requirements. In particular, the City does not routinely
capture and maintain data necessary for conversion of cash basis to appropriate fund and accrual basis
financial presentation or for preparation of necessary disclosures and supplementary information reported
in its financial statements. Further, the City does not routinely perform valuation assessments, such as
estimates of impairment of carrying value of its long-term assets or estimates of net realizable values of
receivables, in order to determine whether financial statement adjustments are appropriate.
Cause - The City’s reliance on its budgetary cash basis general ledger system and year-end
conversion processes to provide financial reporting information causes difficulty in the preparation of its
basic financial statements along with the necessary disclosures and supplemental schedules.
Effect - The City cannot readily prepare conversion adjustments required for financial reporting
purposes and cannot readily produce necessary disclosures and supplemental schedules which
increases the risk of omission of information that should be reported under U.S. generally accepted
accounting principles.
Identification of Repeat Finding 2022-003
Recommendation - The City should develop a plan to address deficiencies in its financial
statement adjustment, close, and disclosure processes.
Views of Responsible Officials - See the Auditee's Corrective Action Plan.
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SCHEDULE 27
PAGE 6 OF 8
CITY OF HATTIESBURG, MISSISSIPPI
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED SEPTEMBER 30, 2023
Section II - Financial Statement Findings (Cont.)
Finding:
Finding 2023-004 Water and Sewer Customer Accounts Receivable
Finding Type: Material weakness
Criteria - Internal accounting controls should be sufficient to ensure that recorded Water and
Sewer System customer accounts receivable are complete, accurate, properly valued, and reported in
the proper period.
Condition - The City's internal controls for recording and reconciling Water and Sewer customer
account balances outstanding are not sufficient to ensure that account balances are accurate and does
not allow for the proper evaluation of collectability. The City does not routinely perform reconciliations or
analyses of customer receivable detail records. Additionally, aged receivable reports do not segregate
finance charges from service fees, thereby distorting brackets and limiting effectiveness for monitoring
propriety of service cut-off and assessing overall collectability. The City is also unable to produce reliable
reports of subsequent collections on year-end outstanding balances for proper assessment of
collectability and has no formal documentation of methodology or calculations supporting its estimated
allowance for doubtful accounts.
Context - The City utilizes a separate module of its general ledger accounting software for its
Water and Sewer billing functions that does not include an interface with the City’s general ledger
accounting system, and the City does not routinely review, reconcile, or analyze aggregate Water and
Sewer customer account receivables.
Cause - While the City routinely processes and reviews billing route reports and reports of unpaid
accounts subject to service cut-off, the City’s procedures do not require periodic generation,
reconciliation, and retention of detail accounts receivable and activity reports.
Effect - Without timely reconciliations and proper aging of its customer account balances and
related activity, the City cannot readily determine net realizable value of outstanding Water and Sewer
customer accounts receivable at fiscal year-end. This lack of timely review and reconciliation of
subsidiary account balances could allow significant errors to go undetected.
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SCHEDULE 27
PAGE 7 OF 8
CITY OF HATTIESBURG, MISSISSIPPI
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED SEPTEMBER 30, 2023
Section II - Financial Statement Findings (Cont.)
Finding 2023-004 Water and Sewer Customer Accounts Receivable (Cont.)
Identification of Repeat Finding 2022-004
Recommendation - The City should implement procedures to routinely prepare and reconcile
Water and Sewer customer accounts receivable activity and balances at each interim period, and a
formal analysis of collectability of outstanding balances should be performed on at least an annual basis
in order to estimate the related allowance for doubtful accounts.
Views of Responsible Officials - See the Auditee's Corrective Action Plan.
Finding:
Finding 2023-005 Capital Assets
Finding Type: Material weakness
Criteria - Internal controls over capital assets should be sufficient to ensure that assets are
properly recorded, depreciated, assessed for impairment, and reported. Detail subsidiary ledgers should
be reconciled on a timely basis, and disposals should be timely recognized and reported. Rights and
obligations related to ownership and pledges of capital assets should also be properly reported.
Condition - The City's procedures and controls are not sufficient to ensure that all City-owned
assets are properly recorded. Additionally, the City’s procedures related to construction projects are not
sufficient to ensure that all project costs are identified and captured in the proper period.
Context - Existing accounting procedures do not ensure inclusion of contributed assets received
or transfers of infrastructure from developers or other governmental entities, and the City does not
routinely reconcile capital outlay expenditures to additions to fixed assets and additional inventoried
items. The City does not routinely monitor assets acquired with grants or other restricted funds to ensure
that any disposition of those assets is in accordance with terms of agreements and/or regulations and to
ensure proper disclosure of commitments relating to those assets. Also, the City does not periodically
assess its long-term assets for impairment nor does the City have an adequate system of accounting for
its construction project activity.
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SCHEDULE 27
PAGE 8 OF 8
CITY OF HATTIESBURG, MISSISSIPPI
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED SEPTEMBER 30, 2023
Section II - Financial Statement Findings (Cont.)
Finding 2023-005 Capital Assets (Cont.)
Cause - The City did not routinely and formally reconcile capital asset subsidiary detail to its
financial statements, and the City does not maintain a comprehensive schedule of construction projects
sufficient to support financial reporting.
Effect - The City's procedures are not adequate to ensure that capital outlay expenditures are
reported in the proper period, or properly classified as capital expenditure or expense. Detail records are
not timely reconciled to detect errors or irregularities, or to ensure that required disclosures are accurate
and complete.
The City’s deficiencies in procedures related to construction projects and capital assets indicate
material weaknesses in internal controls over financial reporting.
Identification of Repeat Finding 2022-005
Recommendation - The City should take immediate steps to develop and implement a
comprehensive system of accounting for capital assets, including construction projects. Subsidiary
records should include adequate descriptions and should be periodically reviewed to identify any assets
no longer in service or those with indicated impairment.
Views of Responsible Officials - See the Auditee's Corrective Action Plan.
Section III - Federal Awards Findings and Questioned Costs
No matters were reported.
(This Space Intentionally Left Blank)
CITY OF HATTIESBURG, MISSISSIPPI
AUDITEE CORRECTIVE ACTION PLAN
Year Ended September 30, 2023
Auditee Corrective Action Plan
The City of Hattiesburg respectfully submits the following corrective action plan.
Audit Period
: September 30, 2023
The findings discussed below are numbered consistently with the numbers assigned in the schedule of findings
and questioned costs.
Corrective Action Plan for Financial Statement Findings
2023-001 Entity-Level Control Environment and Risk Assessment Processes
The City's Administration acknowledges the importance of the control environment and, in particular, the
organizational structure, with the assignment of authority and responsibility in addressing risks relevant to the
achievement of financial reporting objectives. The Administration initiated an entity-wide assessment of the
existing organizational structure and found that many issues were relevant to deficiencies in financial software in
use. The City has purchased new software, and training and implementation began during the summer of 2020.
The financial software became fully operational in January 2021. The Payroll module became operational on July
1, 2021. The Municipal Court module became operational November 1, 2021, and the Water Billing module
became operational on October 7, 2023.
Name of Responsible Person: Ann Jones, Chief Administrative Officer;
Malcolm Berch, Chief
Financial Officer
Name of Department Contact: Ann Jones, Chief Administrative Officer
Expected Date of Completion: Fall 2024
2023-002 Entity-Level Information, Communication and Monitoring
The City has recognized that the current financial software has deficiencies which impede the ability to obtain,
maintain, and analyze data from varied sources. The City has purchased financial software, and training and
implementation began during the summer of 2020. The financial software module became operational on
January 1, 2021. The Payroll module became operational on July 1, 2021. The Municipal Court module became
operational November 1, 2021, and the Water Billing module became operational on October 7, 2023. The new
software will aid in improving internal control procedures and provide greater detail for project accounting and
documentation of federal awards.
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Auditee Corrective Action Plan (Cont.)
Name of Responsible Person: Malcolm Berch, Chief Financial Officer
Name of Department Contact: Lisa Hanson, Comptroller
Expected Date of Completion: Fall 2024
2023-003 Financial Statement Adjustment, Close, and Disclosure
Finding 2023-003 emphasizes the “increasing complexity of financial reporting requirements", and it includes
other notations that generally describe the difficulties encountered by the City in its financial accounting
functions. Other points, including the need for a formal process for ensuring the accuracy and completeness
of various peripheral systems and reconciliation procedures, are, in the opinion of the Administration, valid
concerns.
As noted in our response to findings 2023-001 and 2023-002, the City has purchased financial software,
which became operational on January 1, 2021. The Accounting staff has endeavored to produce
timely and reliable budgetary basis accounting reports in the interim and has facilitated improved
conversion procedures as far as practicable until new software is fully functional. The final module,
Water Billings, became operational October 7, 2023.
Name of Responsible Person: Lisa Hanson, Comptroller
Expected Date of Completion: Fall 2024
2023-004
Water and Sewer Customer Accounts Receivable
The Administration implemented procedures to prepare and reconcile water and sewer customer accounts
receivable activity. Due to deficiencies with current billing and financial software, some data is not accessible or has
not been captured, making manual capture of the data on subsidiary spreadsheets necessary. Along with financial
software upgrades, new billing software became operational on October 7, 2023. This will enable seamless
communication with the Accounting Department to properly capture financial data and provide more detailed
information on outstanding balance, aging of accounts receivable, and allowance for doubtful accounts.
Name of Responsible Person: Allen Howe, Director of Water and Sewer
Name of Department Contact: Wanda Turner, Office Manager
Estimated Date of Completion: Fall 2024
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Auditee Corrective Action Plan (Cont.)
2023-005
Capital Assets
The City has implemented a system of policies and procedures for accounting for capital assets pending
implementation of financial software which will be able to capture this information seamlessly as part of the
financial transactions. The current system can accommodate both approved construction projects and
acquisitions of assets achieved outside the routine cash disbursement process, as well as any contributions
or transfers of fixed assets to the City. Periodic review by the City's management team for the identification
of impaired assets or assets no longer in service is performed to ensure that capitalization policies and
procedures are followed. Greater accountability for accuracy of capital assets will be available when new
software is fully implemented. The financial software module became fully operational on January 1, 2021.
It has many additional reporting capabilities, which are being utilized to track capital assets and provide more
detailed reporting.
Name of Responsible Person: Malcolm Berch, Chief Financial Officer;
Ann Jones, Chief Administrative Officer
Name of Department Contact: Lamar Rutland, Director of Engineering;
Lisa Hanson, Comptroller
Estimated Date of Completion: Fall 2024
(This Space Intentionally Left Blank)
CITY OF HATTIESBURG, MISSISSIPPI
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
Year Ended September 30, 2023
Summary Schedule of Prior Audit Findings
Year Ended September 30, 2023
The following is an update of the prior audit findings and is prepared in accordance with Title 2 U.S. Code of
Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards.
2022-001 Entity-Level Control Environment and Risk Assessment Process
Condition -
This finding was a material weakness stating that entity-wide controls and
procedures were not effectively initiated or implemented for corrective actions in response to material
weaknesses and significant deficiencies in internal control identified in its financial statement audit for the
year ended September 30, 2022.
Recommendation -
The auditor recommended that the City take steps to implement
corrective actions for identified material weaknesses and significant deficiencies in internal controls.
Current Status -
In early 2018, the Administration implemented changes to the
organizational structure, adding a Department of Finance and Procurement, and assigning responsibility for
this function to the Chief Financial Officer. The Accounting and Purchasing departments continue to operate
under the supervision of the City Clerk and coordination with the Chief Financial Officer. An additional
accountant was hired and serves as liaison with the various city departments to ensure greater accountability
and documentation of ongoing projects.
2022-002 Entity-Level Information, Communication and Monitoring
Condition -
This finding was a material weakness stating that entity-wide controls and
procedures did not effectively ensure that all information relevant to the financial reporting process was
timely identified and communicated for assessment of financial reporting impact and for assimilation into the
financial reporting process.
Recommendation -
The auditor recommended that the City formalize its information,
communications, and monitoring processes to ensure that data from external and internal sources is
timely captured, retained, and available for financial reporting purposes. Management concurred with
the recommendation and indicated that the procedures would be implemented.
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Summary Schedule of Prior Audit Findings Year Ended September 30, 2023 (Cont.)
Current Status -
As mentioned in the current status to Finding 2022-001, the additional
accountant hired has been assigned the responsibility of communicating with various city departments to
ensure proper capture and documentation of financial information on various projects. This position is
responsible for compiling and documenting information for federal awards, and preparation and maintenance
of supplementary spreadsheets has been developed and is being utilized at this time. City Administration
acknowledges that updating the financial software is necessary in order to properly report financial
information in accordance with generally accepted accounting principles, and the Administration has
purchased new software and is currently engaged in training and subsequent implementation. The financial
software became fully operational on January 1, 2021.
2022-003 Financial Statement Adjustment, Close, and Disclosure
Condition -
This finding was a material weakness stating that the City's internal accounting
controls were not sufficient to ensure that transactions and account balances were properly reported in
conformity with bases of accounting required by generally accepted accounting
principles .
Recommendation -
The auditor recommended that the City assess the quality of
existing peripheral processes and implement effective control procedures to ensure that data
maintained therein is accurate and that errors or irregularities are prevented or timely
detected and
corrected. Management concurred with the recommendation and indicated that the procedures would be
implemented.
Current Status - As stated in the current status to Finding 2022-002, a needs assessment and
subsequent selection and implementation of updated financial software has been completed and new software
purchased. The financial software module became fully operational on January 1, 2021. The payroll module
became operational on July 1, 2021. The Municipal Court module became operational November 1, 2021, and
the Water Billings module became operational on October 7, 2023. The Administration acknowledges that during
the period 2014 – 2018, staffing changes due to retirements resulted in loss of institutional knowledge which had,
in the past, afforded timely and accurate production of financial information at year-end. The Administration has
taken steps to provide the needed support and institutional knowledge to ensure improvement in this area
through the hiring process and subsequent training of current staff.
2022-004 Water and Sewer Customer Accounts Receivable
Condition - This finding was a material weakness stating that the City's internal controls for
recording and reconciling customer account balances outstanding are not sufficient to ensure that account
balances are accurate and reflect valid amounts receivable and that collectability is properly evaluated.
Recommendation - The auditor recommended that the City develop and implement procedures
to routinely prepare and reconcile Water and Sewer customer accounts receivable activity and balances at each
interim period and that formal analysis of collectability of outstanding balances should be prepared to estimate the
related allowance for doubtful accounts. Management concurred with the recommendation and indicated that the
procedures would be implemented.
- 174 -
Summary Schedule of Prior Audit Findings Year Ended September 30, 2023 (Cont.)
Current Status - The Administration adjusted the organization structure of the Water and Sewer
Department by placing responsibility for the Billing Office with the Water and Sewer Director. (It was previously
the responsibility of the Director of Administration.) Review of current procedures has been completed, and
adjustments have been made for better accountability and communication with the service departments. An
outside company has been contracted with to aid in evaluation of water meter performance in order to assess lost
revenue. Non-functioning meters are being replaced. New procedures are assessed after implementation to
determine their viability, and adjustments are made as needed.
2022-005 Capital assets
Condition - This finding was a material weakness stating that the City did not appropriately
identify and accurately capture, maintain, and report activity and balances relating to capital assets.
Recommendation - The auditor recommended that the City implement policies and procedures
to initially identify capital asset transactions, enhance detail data maintained, perform periodic reconciliations of
detail, review propriety of account coding, and review for indicated impairment. Management concurred with the
recommendation and indicated that the procedures would be implemented.
Current Status - New financial software was implemented on January 1, 2021, which will
capture the capital asset information during the procurement process. Other staff, such as the Engineer and
Chief Financial Officer, as well as engineer consultants, may be included when assessing potential impairment as
well as reporting construction in progress.
(This Space Intentionally Left Blank)
INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE
WITH STATE LAWS AND REGULATIONS
To the Honorable Mayor and Members of the City Council
City of Hattiesburg, Mississippi
We have audited the basic financial statements of the City of Hattiesburg, Mississippi as of and for the year
ended September 30, 2023, and have issued our report dated June 25, 2024. We have 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 Governmental Auditing Standards.
As required by the state legal compliance audit program prescribed by the Office of the State Auditor, we have
also performed procedures to test compliance with certain state laws and regulations. However, providing an opinion on
compliance with state laws and regulations was not the objective of our audit and, accordingly, we do not express such an
opinion.
The results of those procedures and our audit of the general purpose financial statements disclosed the following
material instances of noncompliance with state laws and regulations. Our findings and recommendations and your
responses are as follows:
Finding 1 - Fixed Asset Accounting
The City's procedures for determining the total acquisition cost of fixed assets and maintaining fixed asset
detail did not comply with accounting system procedures prescribed by the Municipal Auditing and
Accounting Guide. Noncompliance with prescribed fixed asset accounting procedures is a recurring
finding.
Criteria, Context, and Condition
The property accounting system must follow prescribed procedures for recording acquisition cost of fixed
assets, and certain professional fees, such as appraisal, architectural, engineering, and legal fees, should
also be capitalized into fixed asset records. Additionally, the City’s property accounting system must
maintain the required fixed asset data elements as listed in the Municipal Auditing and Accounting Guide.
- 175 -
- 176 -
To the Honorable Mayor and Members of the City Council
City of Hattiesburg, Mississippi
Recommendation
The Administration should implement procedures to properly capture and maintain fixed asset detail,
including the required data elements, in accordance with prescribed procedures.
Response
The City Administration agrees with this finding, and management had implemented a temporary
corrective action plan to address all fixed asset recordkeeping requirements. New financial software was
implemented on January 1, 2021, which will satisfy recording requirements.
Finding 2 - Annual Inventory of Assets
The City did not maintain a complete annual inventory of its assets in accordance with the guidelines
established by the Office of the State Auditor. Noncompliance with the annual inventory completion
guidelines is a recurring finding.
Criteria, Context, and Condition
The Municipal Audit and Accounting Guide published by the State of Mississippi Office of the State
Auditor requires municipalities to conduct a “thorough inventory of all fixed assets” at the end of each
fiscal year in order to verify the existence of all fixed assets. The Municipal Audit and Accounting Guide
also prescribes inventory procedures to be followed, including the assignment of the general oversight of
the inventory process to an appropriate municipal officer, the use of inventory forms and a tagging
system, and the investigation of discrepancies and missing inventory tags.
Recommendation
The City should follow the specific instructions of the Municipal Audit and Accounting Guide in order to
update the City inventory records. This process, as prescribed by the Office of the State Auditor, must be
considered to be an important legal compliance procedure that must be performed at the end of each
fiscal year.
Response
The City Administration agrees with this finding and has implemented procedures to update the City’s
detailed fixed asset inventory records. Additionally, the prescribed update of inventory records will be
completed at the end of each fiscal year on a timely basis.
[See Schedule 27 - Schedule of Findings and Questioned Costs.]
- 177 -
To the Honorable Mayor and Members of the City Council
City of Hattiesburg, Mississippi
The instances of noncompliance of the prior year have been corrected by management unless it is specifically
stated otherwise in the findings and recommendations noted above.
The Office of the State Auditor or a public accounting firm will review, on a subsequent year's audit engagement,
the findings in this report to ensure that corrective action has been taken.
This report is intended for the information of the City of Hattiesburg, Mississippi's management, Honorable Mayor
and Members of the City Council, and the Mississippi Office of the State Auditor and is not intended to be and should not
be used by anyone other than these specified parties. However, this report is a matter of public record and its distribution
is not limited.
Hattiesburg, Mississippi
June 25, 2024
STATISTICAL INFORMATION
(UNAUDITED)
2023 2022 2021 2020 2019 2018 2017 2016 2015 2014
GOVERNMENTAL ACTIVITIES:
Net investment in capital assets 140,919,248$ 113,644,022$ 93,576,562$ 68,207,984$ 76,522,662$ 106,200,635$ 114,719,895$ 100,533,244$ 110,313,874$ 108,266,535$
Restricted for:
Debt service 7,517,124 7,674,336 8,610,167 9,766,038 8,817,108 7,169,815 6,162,469 4,100,910 4,067,078 3,764,608
Capital projects 1,590,224 10,741,492 21,339,899 30,834,556 - - - - - 50,515
Other purposes - - - - - - - - - 1,794,732
Federal program - - - - - - - - 1,913,562 10,593
Unrestricted (40,563,488) (43,728,353) (50,290,511) (58,126,369) (31,910,542) (56,327,118) (57,378,373) (37,764,759) (46,057,590) 12,182,338
Governmental activities net position 109,463,108$ 88,331,497$ 73,236,117$ 50,682,209$ 53,429,228$ 57,043,332$ 63,503,991$ 66,869,395$ 70,236,924$ 126,069,321$
BUSINESS-TYPE ACTIVITIES:
Net investment in capital assets 75,653,861$ 70,132,697$ 66,705,055$ 62,836,484$ 50,999,854$ 39,832,512$ 29,709,397$ 23,460,573$ 44,493,366$ 60,747,195$
Restricted for:
Debt service 9,642,063 8,039,394 4,987,900 6,373,573 8,094,960 8,094,960 7,685,090 -
4,833,982 4,838,130
Capital projects 185,172 3,455,873 6,148,826 6,328,731 - - - - - -
Unrestricted (2,605,074) (3,876,868) (4,502,625) (5,091,662) 5,234,042 13,933,041 21,938,437 33,737,335 (921,448) 4,758,857
Business-type activities net position 82,876,022$ 77,751,096$ 73,339,156$ 70,447,126$ 64,328,856$ 61,860,513$ 59,332,924$ 57,197,908$ 48,405,900$ 70,344,182$
PRIMARY GOVERNMENT:
Net investment in capital assets 216,573,109$ 183,776,719$ 160,281,617$ 131,044,468$ 127,522,516$ 146,033,147$ 144,429,292$ 123,993,817$ 154,807,240$ 169,013,730$
Restricted for:
Debt service 17,159,187 15,713,730 13,598,067 16,139,611 16,912,068 15,264,775 13,847,559 4,100,910 8,901,060 8,602,738
Capital projects 1,775,396 14,197,365 27,488,725 37,163,287 - - - - - 50,515
Other purposes - - - - - - - - - 1,794,732
Federal program - - - - - - - - 1,913,562 10,593
Unrestricted (43,168,562) (47,605,221) (54,793,136) (63,218,031) (26,676,500) (42,394,077) (35,439,936)
(4,027,424) (46,979,038) 16,941,195
Primary government net position 192,339,130$ 166,082,593$ 146,575,273$ 121,129,335$ 117,758,084$ 118,903,845$ 122,836,915$ 124,067,303$ 118,642,824$ 196,413,503$
FISCAL YEAR
- 178 -
TABLE 1
CITY OF HATTIESBURG, MISSISSIPPI
NET POSITION BY COMPONENTS
LAST TEN FISCAL YEARS
See independent auditor's report.
2023 2022 2021 2020 2019 2018 2017 2016 2015 2014
GOVERNMENTAL ACTIVITIES:
General government 12,282,057$ 11,296,096$ 8,893,046$ 9,706,192$ 9,856,181$ 10,331,281$ 9,454,614$ 8,601,383$ 11,569,276$ 7,641,758$
Public safety 32,315,379 26,353,567 24,956,253 27,025,859 27,096,070 24,554,459 24,876,846 24,355,235 20,821,509 21,476,883
Public services 14,425,099 16,242,403 16,226,202 17,317,329 19,589,388 18,216,227 22,301,631 20,621,611 16,434,765 15,253,508
Other services 1,673,393 1,921,637 1,792,825 1,388,068 1,579,771 1,395,047 1,429,409 980,641 2,093,259 1,847,824
Mass transit 2,825,922 1,969,988 2,343,864 2,154,841 2,380,293 1,802,171 1,901,374 1,861,405 1,217,110 1,203,191
Cultural and recreation 12,775,390 13,918,797 12,163,054 6,393,310 5,565,089 4,893,041 4,336,206 4,298,347 4,323,579 4,039,345
Human/social assistance 1,018,994 584,345 626,487 475,730 576,634 947,143 772,346 746,355 712,985 1,130,925
Economic development 4,623,506 2,181,782 1,037,317 4,353,707 1,070,757 305,000 255,000 5,319,409 208,115 286,500
Interest and fiscal charges 2,948,926 2,830,886 2,840,774 2,161,961 1,644,427 960,978 1,119,296 976,120 990,023 893,887
Total governmental activities
expenses 84,888,666 77,299,501 70,879,822 70,976,997 69,358,610 63,405,347 66,446,722 67,760,506 58,370,621 53,773,821
BUSINESS-TYPE ACTIVITIES:
Water and sewer system 20,224,846 18,532,482 18,480,336 16,039,290 17,715,761 17,568,985 16,373,370 18,507,187 31,166,774 14,349,426
Interest and fiscal charges 1,915,151 2,261,973 2,243,984 2,177,472 2,296,933 2,446,012 2,389,665 2,197,054 2,235,365 2,034,814
Total business-type activities
expenses 22,139,997 20,794,455 20,724,320 18,216,762 20,012,694 20,014,997 18,763,035 20,704,241 33,402,139 16,384,240
Total primary government
expense
s
107,028,663$ 98,093,956$ 91,604,142$ 89,193,759$ 89,371,304$ 83,420,344$ 85,209,757$ 88,464,747$ 91,772,760$ 70,158,061$
PROGRAM REVENUES:
Governmental Activities:
Charges for services 3,022,377$ 2,912,260$ 3,283,403$ 3,063,373$ 2,640,705$ 3,986,607$ 3,827,142$ 4,843,653$ 3,854,495$ 5,718,952$
Operating grants and contributions 7,394,730 4,738,050 11,008,590 4,212,115 3,814,222 4,433,288 6,598,716 4,886,946 4,614,942 4,783,239
Capital grants and contributions 15,106,733 8,480,701 744,993 2,901,877 2,262,474 1,227,481 1,519,484 437,183 25,901,537 3,669,922
Total governmental activities
program revenues 25,523,840 16,131,011 15,036,986 10,177,365 8,717,401 9,647,376 11,945,342 10,167,782 34,370,974 14,172,113
Business-Type Activities:
Charges for services 28,109,349 25,286,827 23,687,770 23,121,868 21,947,492 22,821,070 20,748,288 20,627,608 17,086,586 16,361,169
Operating grants and contributions - - 356,025 - - 228,348 - 38,718 - -
Capital grants and contributions 70,824 322,567 - - - - - - 474,084 1,407,145
Total business-type activities
program revenues 28,180,173 25,609,394 24,043,795 23,121,868 21,947,492 23,049,418 20,748,288 20,666,326
17,560,670 17,768,314
Total primary government
p
rogram revenue
s
53,704,013$ 41,740,405$ 39,080,781$ 33,299,233$ 30,664,893$ 32,696,794$ 32,693,630$ 30,834,108$ 51,931,644$ 31,940,427$
- 179 -
TABLE 2
CITY OF HATTIESBURG, MISSISSIPPI
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
FISCAL YEAR
See independent auditor's report.
2023 2022 2021 2020 2019 2018 2017 2016 2015 2014
PROGRAM REVENUES (Cont.):
Net Revenues (Expenses):
Governmental activities (59,364,826)$ (61,168,490)$ (55,842,836)$ (60,799,632)$ (60,641,209)$ (53,757,971)$ (54,501,380)$ (57,592,724)$ (23,999,647)$ (39,601,708)$
Business-type activities 6,040,176 4,814,939 3,319,475 4,905,106 1,934,798 3,034,421 1,985,253 (37,915) (15,841,469) 1,384,074
Total primary government net
revenues (expenses
)
(53,324,650
)
$ (56,353,551
)
$ (52,523,361
)
$ (55,894,526
)
$ (58,706,411
)
$ (50,723,550
)
$ (52,516,127
)
$ (57,630,639
)
$ (39,841,116
)
$ (38,217,634
)
$
GENERAL REVENUES AND OTHER
CHANGES:
Governmental Activities:
Property taxes 26,320,264$ 25,755,700$ 24,974,297$ 23,958,334$ 23,540,801$ 22,260,336$ 20,782,953$ 19,777,229$ 17,947,847$ 17,685,196$
Sales taxes 43,385,347 41,536,982 38,178,658 26,071,784 22,767,871 22,688,619 22,440,431 21,824,103 22,375,186 21,777,709
Franchise and other taxes 4,902,849 4,668,067 4,328,609 4,128,012 5,324,082 4,319,076 4,228,559 4,221,931 4,613,330 4,728,782
Grants and contributions (not restricted) 30,600 223,005 35,384 63,319 39,254 41,100 98,932 34,000 - -
Unrestricted investment earnings 286,988 151,528 277,839 459,852 239,531 275,691 227,856 171,400 180,344 181,505
Other local sources 2,780,639 2,295,430 2,443,770 2,265,825 2,034,815 2,139,629 2,441,347 2,371,106 634,572 454,117
Miscellaneous revenues 1,491,838 480,409 3,005,101 492,016 909,020 548,540 1,889,376 3,465,856 664,028 1,002,980
Gain (loss) on sale of assets 8,512 27,254 - 2,045 49,277 4,529 1,484 24,104 373,707 77,984
Transfers, net 824,000 91,492 824,000 500,000 - 500,000 306,908 (56,908) -
-
Transfers, component unit 465,401 867,187 5,080,315 111,426 498,201 127,849 24,733 885,597 - -
Total governmental activities 80,496,438 76,097,054 79,147,973 58,052,613 55,402,852 52,905,369 52,442,579 52,718,418 46,789,014 45,908,273
Business-type Activities:
Unrestricted investment earnings 339,743 99,014 154,954 384,563 413,039 300,545 99,295 44,846 13,769 10,144
Miscellaneous revenues - 371,237 121,057 - - 98,280 200,116 80,270 32,972 207,496
Gain (loss) on sale of assets - (6,063) - 103,917 120,506 - - 11,822 - -
Transfers, net (824,000) (867,187) (824,000) (500,000) - (500,000) (306,908) 56,908 - -
Total business-type activities (484,257) (402,999) (547,989) (11,520) 533,545 (101,175) (7,497) 193,846 46,741 217,640
Total primary government general
revenues and other changes 80,012,181 75,694,055 78,599,984 58,041,093 55,936,397 52,804,194 52,435,082 52,912,264 46,835,755 46,125,913
CHANGE IN NET POSITION
Governmental activities 21,131,611 14,928,564 23,305,137 (2,747,019) (5,238,357) (852,602) (2,058,801) (4,874,306)
22,789,367 6,306,565
Business-type activities 5,555,919 4,411,940 2,771,486 4,893,586 2,468,343 2,933,246 1,977,756 155,931 (15,794,728) 1,601,714
Total primary governmen
t
26,687,530$ 19,340,504$ 26,076,623$ 2,146,567$ (2,770,014
)
$ 2,080,644$ (81,045)$ (4,718,375
)
$ 6,994,639$ 7,908,279$
FISCAL YEAR
TABLE 2
CITY OF HATTIESBURG, MISSISSIPPI
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
PAGE TWO
- 180 -
See independent auditor's report.
2023 2022 2021 2020 2019 2018 2017 201
6
201
5
201
4
General Fund:
Nonspendable 812,866$ 602,799$ 558,107$ 491,865$ 488,309$ 440,194$ 454,574$ 569,541$ 435,392$ 386,595$
Restricted - - - - - - - - - 10,593
Committed - - - - - - - - 1,913,562 -
Assigned 905,060 721,792 881,366 1,009,152 433,854 1,180,819 647,722 636,600 1,051,324 2,587,414
Unassigned 20,873,882 20,745,467 16,039,658 10,459,184 11,325,345 8,842,361 9,723,508 9,246,396 4,312,475 4,797,067
Total general fund 22,591,808 22,070,058 17,479,131 11,960,201 12,247,508 10,463,374 10,825,804 10,452,537 7,712,753 7,781,669
% Change from Prior Year 2.4% 26.3% 46.1% -2.3% 17.1% -3.3% 3.6% 35.5% -0.9% 1.4%
Other Governmental Funds:
Debt service funds
Restricted 7,517,124 7,674,336 8,610,167 9,766,038 8,817,108 7,169,815 6,162,469 4,100,910 4,067,078 3,764,608
Special revenue funds
Restricted 14,608,581 13,306,681 10,347,062 3,492,840 2,997,574 3,627,303 3,719,558 8,272,804 2,298,861 1,842,847
Committed 754,170 970,123 809,909 1,424,596 1,439,137 1,573,334 1,309,663 1,003,527 1,402,252 1,566,729
Unassigned (618,280) (401,986) (618,953) (409,860) 94,721 (153,611) (269,240) (53,901) (1,913,562) (10,593)
Capital projects funds
Restricted 7,995,956 11,319,143 21,339,899 33,543,725 26,544,491 - 104,862 426,237 2,414 2,400
Total other governmental funds 30,257,551 32,868,297 40,488,084 47,817,339 39,893,031 12,216,841 11,027,312 13,749,577 5,857,043 7,165,991
Total governmental fund
s
52,849,35
9
$ 54,938,35
5
$ 57,967,21
5
$ 59,777,54
0
$ 52,140,53
9
$ 22,680,21
5
$ 21,853,11
6
$ 24,202,11
4
$ 13,569,79
6
$ 14,947,66
0
$
% Change from Prior Year -3.8% -5.2% -3.0% 14.6% 129.9% 3.8% -9.7% 78.4% -9.2% 5.4%
(1) This schedule reports using the modified accrual basis of accounting. See Table 4 for changes in fund balances from year to year.
(2) Under GASB Statement No. 54 the balance sheet reporting categories are based upon a hierarchy of classifications based upon the constraints on resources reported in the funds.
The City's debt service and capital project fund balances are presented as restricted due to the underlying statutory spending requirements in Mississippi applicable to debt repayment
resources and debt proceeds.
LAST TEN FISCAL YEARS
FISCAL YEAR
- 181 -
TABLE 3
CITY OF HATTIESBURG, MISSISSIPPI
FUND BALANCES - GOVERNMENTAL FUNDS
(1) (2)
See independent auditor's report.
2023 2022 2021 2020 2019 2018 2017 2016 2015 201
4
REVENUE:
Property taxes 26,028,978$ 25,496,691$ 24,620,679$ 23,894,700$ 22,681,906$ 21,960,274$ 20,359,735$ 19,431,748$ 17,786,031$ 17,761,953$
Sales taxes 43,777,560 41,273,931 37,114,919 25,616,472 23,466,400 22,685,867 22,443,414 21,893,993 22,326,946 21,654,593
Licenses and permits 4,699,112 4,471,382 4,147,534 3,977,940 4,199,022 4,128,281 4,035,805 4,098,361 4,436,024 4,458,451
Fines and forfeitures 831,640 797,930 1,144,880 887,901 842,406 1,228,565 1,301,651 1,682,040 2,233,379 1,895,137
Interest, rents, concessions 389,163 239,678 340,214 580,153 301,539 236,519 267,967 102,171 107,701 119,886
Intergovernmental 20,611,242 13,839,941 13,984,573 7,527,343 7,031,206 7,348,343 10,190,234 10,390,045 4,751,144 8,484,671
Charges for services 3,490,123 2,765,542 2,752,731 2,827,886 3,480,832 2,984,753 2,585,219 2,661,173 2,494,796 2,570,846
Other revenues 1,432,010 643,017 2,953,001 2,150,765 1,054,970 694,686 1,060,847 1,069,997 2,845,545 1,160,908
Total revenues 101,259,828 89,528,112 87,058,531 67,463,160 63,058,281 61,267,288 62,244,872 61,329,528 56,981,566 58,106,445
% Change from prior year 13.1% 2.8% 29.0% 7.0% 2.9% -1.6% 1.5% 7.6% -1.9% 0.9%
EXPENDITURES:
General government 11,177,328 17,530,040 8,275,236 8,632,566 8,962,684 9,153,798 10,993,323 14,721,956 8,318,077 7,045,870
Public safety 29,404,575 29,393,324 34,928,718 36,428,826 28,464,357 22,658,017 23,163,301 23,608,888 20,149,021 20,861,852
Public services 31,878,092 25,758,098 21,601,233 17,313,230 14,960,568 15,364,390 17,980,097 14,762,421 14,389,762 14,639,074
Other services 1,722,718 2,550,036 1,690,064 4,027,278 2,506,484 2,450,199 2,286,430 2,398,528 3,905,401 2,545,714
Mass transit 4,202,875 1,882,615 1,844,163 1,812,822 2,879,909 1,705,775 1,487,305 1,209,658 977,307 1,375,538
Cultural and recreation 21,201,457 14,013,036 13,105,995 5,738,746 4,499,734 3,987,521 4,113,007 4,292,584 4,015,886 4,105,118
Human/Social assistance 959,907 522,631 869,234 592,384 719,143 537,870 924,065 961,856 954,584 1,116,530
Economic development 4,623,506 2,181,782 1,027,108 4,303,846 1,463,626 305,000 255,000 5,319,409 208,115 2,464,222
Debt service:
Principal 2,692,594 3,448,171 3,946,648 4,487,087 3,173,778 4,142,355 3,858,694 10,325,679 5,198,449 5,356,375
Interest and fiscal charges 2,828,742
2,925,236 3,003,771 2,407,749 1,582,433 3,214,294 1,446,252 818,052 1,018,199 987,934
Total expenditures 110,691,794 100,204,969 90,292,170 85,744,534 69,212,716 63,519,219 66,507,474 78,419,031 59,134,801 60,498,227
% Change from prior year 10.5% 11.0% 5.3% 23.9% 9.0% -4.5% -15.2% 32.6% -2.3% 2.5%
EXCESS OF REVENUE (UNDER)
EXPENDITURES (9,431,966) (10,676,857) (3,233,639) (18,281,374) (6,154,435) (2,251,931) (4,262,602) (17,089,503) (2,153,235) (2,391,782)
OTHER FINANCING SOURCES (USES):
Proceeds from long-term debt 5,500,000 - - 25,863,151 34,191,292 444,291 - 24,817,411 - -
Proceeds from leases - 6,644,530 - - - - - - - -
Proceeds from subscription
based intangible assets 115,500 - - - - - - - - -
Bond issuance professional fees - - - (622,825) (597,054) - - - - -
Proceeds from sale of capital assets 713,826 42,289 19,161 2,045 49,277 - - - - -
Compensation for loss of capital assets - - - - 275,365 - - - - -
Transfers from other funds 3,916,495 4,623,024 3,721,321 5,375,526 5,192,145 5,093,226 4,072,890 3,699,759 3,540,140 4,112,759
Transfers to other funds (3,092,495) (3,755,837) (2,897,321) (4,875,526) (5,192,145) (4,593,226) (3,765,982) (3,631,543) (3,215,016) (3,713,424)
Other sources 189,644 93,994 106,128 176,004 71,626 2,364,217 1,606,696 2,836,194 450,247 2,755,077
Net other financing sources 7,342,970 7,648,000 949,289 25,918,375 33,990,506 3,308,508 1,913,604 27,721,821 775,371 3,154,412
NET CHANGE IN FUND BALANCE
S
(2,088,996
)
$ (3,028,857
)
$ (2,284,350
)
$ 7,637,001$ 27,836,071$ 1,056,57
7
$ (2,348,998
)
$ 10,632,31
8
$ (1,377,864
)
$ 762,630$
Debt service as % of non-capital expenditures 5.2% 6.8% 8.3% 8.7% 7.4% 13.1% 8.7% 16.6% 11.7% 11.7%
FISCAL YEAR
- 182 -
TABLE 4
CITY OF HATTIESBURG, MISSISSIPPI
CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
See independent auditor's report.
Gross Sales
Total - Subject to Sales
Fiscal Property Sales Taxes Property and Taxes (Per State
Y
ea
r
Taxes (City's Share) Sales Taxes Sales Tax Bureau)
2023 26,028,978$ 43,777,560$ 69,806,538$ 4,281,904,430$
2022 25,496,691 41,273,931 66,770,622 4,039,532,481
2021 24,620,679 37,114,919 61,735,598 3,718,480,886
2020 23,894,700 25,616,472 49,511,172 3,324,887,711
2019 22,681,906 23,466,400 46,148,306 4,489,602,379
2018 21,960,274 22,685,867 44,646,141 4,355,905,873
2017 20,359,735 22,408,645 42,768,380 4,150,726,114
2016 19,431,748 21,862,011 41,293,759 4,071,245,759
2015 17,786,031 22,301,782 40,087,813 3,675,561,903
2014 17,761,953 21,630,769 39,392,722 3,650,169,764
% Change in dollars over
the 10 year period 2.09% 6.07% 4.55% 6.00%
(1) This schedule reports using the modified accrual basis of accounting.
See independent auditor's report.
LAST TEN FISCAL YEARS
- 183 -
TABLE 5
CITY OF HATTIESBURG, MISSISSIPPI
GOVERNMENTAL FUNDS - TAX REVENUES BY SOURCE
(1)
Gross Sales Gross Sales Component
Subject to Sales Subject to Sales Unit -
Taxes By County - Taxes By County - 2% Food &
Forrest (%) Lama
r
(%) Beverage Tax
2,539,350,606$ 59% 1,742,553,824$ 41% 7,096,423$
2,404,104,345 60% 1,635,428,136 40% 6,709,664
2,198,190,661 59% 1,520,290,225 41% 6,381,526
2,013,594,249 61% 1,311,293,462 39% 5,919,339
2,676,657,067 60% 1,812,945,312 40% 6,381,526
2,591,355,312 59% 1,764,550,561 41% 5,387,604
2,418,705,512 58% 1,732,020,602 42% 5,224,823
2,321,862,820 57% 1,749,382,939 43% 4,849,927
2,103,530,476 57% 1,572,031,427 43% 4,825,364
2,128,804,157 58% 1,521,365,607 42% 4,636,322
5.63% 6.55% 5.76%
- 184 -
FORREST COUNTY:
Other Hattiesburg School
Y
ea
r
Tax City (Library & School Bond & Forrest
Ended Roll Bond & Pension City- District Interest Schools- County
Sept. 30,
Y
ea
r
Operations Interest Fund) Total Operations Taxes Total Taxes Total
2014 2013 34.60 7.00 5.82 47.42 56.54 8.35 64.89 61.18 173.49
2015 2014 34.60 7.00 5.82 47.42 56.54 8.35 64.89 61.18 173.49
2016 2015 37.60 7.00 4.92 49.52 57.45 7.44 64.89 63.17 177.58
2017 2016 36.20 7.50 5.82 49.52 57.45 8.35 65.80 65.19 180.51
2018 2017 42.30 5.80 5.28 53.38 55.00 7.10 62.10 66.19 181.67
2019 2018 44.10 4.00 5.03 53.13 56.60 7.50 64.10 65.70 182.93
2020 2019 44.33 4.00 4.80 53.13 56.60 7.50 64.10 65.06 182.29
2021 2020 43.85 4.50 4.78 53.13 58.33 7.75 66.08 65.50 184.71
2022 2021 43.32 5.00 4.81 53.13 58.33 7.75 66.08 65.50 184.71
2023 2022 44.15 5.00 3.98 53.13 58.33 7.75 66.08 65.50 184.71
LAMAR COUNTY:
Other Hattiesburg School
Y
ea
r
Tax City (Library & School Bond & Lama
r
Ended Roll Bond & Pension City - District Interest Schools- County
Sept. 30,
Y
ea
r
Operations Interest Fund) Total Operations Taxes Total Taxes Total
2014 2013 34.60 7.00 5.82 47.42 56.54 8.35 64.89 50.83 163.14
2015 2014 34.60 7.00 5.82 47.42 56.54 8.35 64.89 50.65 162.96
2016 2015 37.60 7.00 4.92 49.52 57.45 7.44 64.89 50.65 165.06
2017 2016 36.20 7.50 5.82 49.52 57.45 8.35 65.80 54.17 169.49
2018 2017 42.30 5.80 5.28 53.38 55.00 7.10 62.10 53.38 168.86
2019 2018 44.10 4.00 5.03 53.13 56.60 7.50 64.10 53.00 170.23
2020 2019 44.33 4.00 4.80 53.13 56.60 7.50 64.10 51.00 168.23
2021 2020 43.85 4.50 4.78 53.13 58.33 7.75 66.08 52.40 171.61
2022 2021 43.32 5.00 4.81 53.13 58.33 7.75 66.08 53.00 172.21
2023 2022 44.15 5.00 3.98 53.13 58.33 7.75 66.08 63.18 182.39
- 185 -
TABLE 6
CITY OF HATTIESBURG, MISSISSIPPI
DIRECT AND OVERLAPPING PROPERTY TAX RATES - FORREST AND LAMAR COUNTIES
Hattiesburg School District
Hattiesburg School District
LAST TEN FISCAL YEARS
City of Hattiesburg
City of Hattiesburg
See independent auditor's report.
Percentage
of Total
Type of Assessed
Taxpaye
r
Business Assessmen
t
V
aluation Taxes
Wesley Health System Health Care 5,929,525$ 1.1% 959,525$
Hattiesburg Clinic Health Care 4,999,385 0.9% 905,139
Turtle Creek Limited Partnership Commercial 4,872,642 0.9% 788,540
TCSC LLC Commercial 4,724,873 0.9% 774,076
The Met Apartments Commercial 4,604,729 0.9% 754,393
Reserve at Park Place Commercial 3,431,564 0.6% 562,193
Cross Creek MultiFamily Commercial 3,459,305 0.6% 559,819
NPRC Twin Oaks LLC Commercial 3,369,752 0.6% 552,066
The Lakes at Turtle Creek Commercial 2,966,461 0.6% 481,221
Parkwest III Apartments LLC Commercial 2,819,228 0.5% 461,874
Total of top ten taxpayers 41,177,464 7.7%
Tax roll total - all other taxpayers 493,783,121 92.3%
Total taxable assessed values for FY 202
3
534,960,585$ 100.0%
- 186 -
TABLE 7
CITY OF HATTIESBURG, MISSISSIPPI
PROPERTY TAXES ASSESSED IN FISCAL YEAR 2022, COLLECTED FISCAL YEAR 2023
TOP TEN PROPERTY TAXPAYERS
See independent auditor's report.
15% Test 20% Test
Propert
y
tax base valuation as prepared b
y
Tax
A
ssessors
during the summer months of 2022 for Property Taxes to be
Collected in FY 2023
534,960,585$ 534,960,585$
Times Applicable % X 15% X 20%
Product of Tax Base Times Applicable Percentage
(a) 80,244,088 106,992,117
Present General Obligation Debt Subject to Statutory Debt Limits:
General obligation bonds outstanding at September 30, 2023 61,680,568 61,680,568
Less: exempt bonds (9,152,722) (9,152,722)
Add: water and sewer general obligation bonds n/a 2,465,494
Total general obligation debt outstanding (b) 52,527,846 54,993,340
Margin for Additional General Obligation Debt - (a) minus (b) 27,716,242$ 51,998,777$
The municipality is limited to the smaller of the two calculated percentages, and as of September 30, 2023 the
15% test would apply with a calculated margin for additional general obligation debt in the amount of
$27,716,242.
The City is subject to the limitations of indebtedness prescribed by MS Code Section 21-33-303. No municipality
may issue bonds secured by a pledge of its full faith and credit in an amount which, when added to the then
outstanding bonded indebtedness of such municipality, would exceed the 15% and 20% tests prescribed in that
Code Section. These percentages are applied to the assessed value of the taxable property within such
municipality, with certain types of municipal debt excluded from the authorized debt limit tests. Excluded from
this test would be tax increment financing bonds, water and sewer revenue bonds, debt secured by tax intercept
agreements (sales tax collections, as opposed to the property tax base) and leases subject to annual
appropriations.
- 187 -
TABLE 8
CITY OF HATTIESBURG, MISSISSIPPI
SEPTEMBER 30, 2023
COMPUTATION OF LEGAL DEBT MARGIN USING MOST CURRENT TAX ROLLS
See independent auditor's report.
Ratio of
Bonded Less: Net Bonded G.O. Bonded Net General
Y
ea
r
General Bonded Debt General Debt to Obligation
Ended Assessed Obligation Service Obligation Assessed Debt
Sept. 30, Population
V
alue Debt Funds Available Debt
V
alues Per Capita
2014 46,379 425,665,993$ 25,100,170$ 3,764,608$ 21,335,562$ 5.01% 460$
2015 46,396 417,449,613 21,463,521 4,067,078 17,396,443 4.17% 375
2016 46,481 426,507,409 23,295,987 4,100,910 19,195,077 4.50% 413
2017 46,377 457,006,290 25,777,493 6,162,469 19,615,024 4.29% 423
2018 46,377 453,836,138 20,896,272 5,973,993 14,922,279 3.29% 322
2019 45,951 461,766,340 52,652,897 8,817,108 43,835,789 9.49% 954
2020 45,863 470,634,425 74,400,767 9,766,038 64,634,729 13.73% 1,409
2021 48,731 483,133,099 70,675,144 8,610,167 62,064,977 12.85% 1,274
2022 48,455 490,053,946 67,695,201 7,674,336 60,020,865 12.25% 1,239
2023 48,414 534,960,585 52,527,846 7,517,124 45,010,722 8.41% 930
LAST TEN FISCAL YEARS
- 188 -
TABLE 9
CITY OF HATTIESBURG, MISSISSIPPI
RATIO OF NET GENERAL OBLIGATION BONDED DEBT TO ASSESSED VALUE AND NET BONDED DEBT PER CAPITA
See independent auditor's report.
Debit Service
Y
ea
r
Net Revenues Required Ratio Based Requirement
Ended Gross Available fo
r
Upon Applicable % Times Calculated with Coverage
Sept. 30, Revenues Expenses Debt Service Prescribed Annual P & I Applicable % Ratio
2014 16,578,810$ 11,838,903$ 4,739,907$ 105% of P & I
(1)
3,116,786$ 1.52
2015 17,133,327 10,623,572 6,509,755 105% of P & I
(1)
3,864,394 1.68
2016 20,803,264 15,625,973 5,177,291 105% of P & I
(1)
3,854,944 1.34
2017 21,505,356 14,641,407 6,863,949 105% of P & I
(2)
5,042,769 1.36
2018 21,921,474 15,596,114 6,325,360 105% of P & I
(2)
5,041,892 1.25
2019 22,481,037 16,146,149 6,334,888 105% of P & I
(2)
5,134,594 1.23
2020 23,610,348 14,287,617 9,322,731 105% of P & I
(2)
5,187,550 1.80
2021 24,319,807 17,060,353 7,259,454 105% of P & I
(2)
6,221,986 1.17
2022 26,079,645 17,261,617 8,818,028 105% of P & I
(3)
6,790,010 1.30
2023 28,455,517 20,224,247 8,231,270 105% of P & I
(3)
6,855,000 1.20
(1)
Calculations based upon debt service for the 2006, 2012, and 2013 Revenue Bonds.
(2)
Calculations based upon debt service for the 2006, 2012 and 2013 Revenue Bonds.
(3)
Calculations based upon debt service for 2021 Refunding Bonds and remaining uncallable bonds for 2013 & 2016 Revenue Bonds.
LAST TEN FISCAL YEARS
- 189 -
TABLE 10
CITY OF HATTIESBURG, MISSISSIPPI
WATER AND SEWER REVENUE BOND COVERAGE
See independent auditor's report.
Y
ea
r
Hattiesburg Forrest County Hattiesburg MS
A
2000 44,779 72,727 111,674
2001 45,088 73,184 113,179
2002 45,538 73,916 114,438
2003 45,779 73,465 115,849
2004 45,988 74,565 117,599
2005 47,598 76,056 119,135
2006 48,012 76,372 123,102
2007 48,012 78,241 126,259
2008 48,012 79,425 128,546
2009 48,012 81,078 143,093
2010 53,582 75,007 143,093
2011 45,989 75,798 144,666
2012 46,616 76,444 142,842
2013 46,832 76,614 148,675
2014 46,379 75,808 147,835
2015 46,396 75,643 148,655
2016 46,481 75,637 149,016
2017 46,377 75,471 148,719
2018 46,377 75,036 149,414
2019 45,951 75,263 150,191
2020 45,863 74,897 168,849
2021 48,731 78,163 171,783
2022 48,455 78,110 170,927
2023
48
,
414
78
,
158
170
,
942
Demographic Age Groupings Projected Based On Census 2020 Totals:
Hattiesburg Forrest County
Age 2020 2020
0 - 17 Years 9,586 17,503
18 - 34 Years 18,881 23,785
35 - 64 Years 13,750 25,761
Over 65 Years 6,197 11,109
% Population 18 - 64 Years 80.20% 77.60%
% Population over 65 Years 12.80% 14.30%
Source: U.S. Bureau of Census - July 1, 2020 information is provided as the most recent year for which data
is available.
- 190 -
TABLE 11
CITY OF HATTIESBURG, MISSISSIPPI
DEMOGRAPHIC STATISTICS
See independent auditor's report.
2023 2022 2021 2020 2019 2018 2017 2016 2015 2014
Employees Employees Employees Employees Employees Employees Employees Employees Employees Employees
Governmental Activities:
General Fund:
City Council
7777778777
Department of Administration 34 33 34 30 34 30 35 34 37 36
Urban Planning:
Planning
999912131110109
Metropolitan Planning 3342555664
Federal Programs Administration 2- - - - 12432
Code Enforcement 11 11 13 11 13 13 10 13 11 13
Public Safety:
City Courts
22 21 22 20 20 20 16 12 16 19
Police - Officers 107 101 97 111 105 107 96 100 99 113
Police Department - Non-Sworn 56 56 50 52 62 67 63 64 63 62
Fire Department - Firefighters 120 116 122 124 125 112 107 99 99 104
Fire Department - Other than Firefighters 6664555556
Other Public Safety 1111111111
Public Services:
Traffic Maintenance
66658897910
Streets 15 15 16 17 21 28 42 41 38 41
Engineering 8788765667
Shop 66678811111212
Construction 10 91110171616161615
Sanitation 27 28 32 31 27 36 30 34 33 32
Other Public Services 23 23 24 24 28 18 26 23 26 23
Animal Control 2233444444
Cemetery and Forestry 14 13 13 13 16 15 14 18 18 18
Parking Operations 224549101088
Total General Fund 491 475 488 494 529 529 526 525 527 546
Other Governmental Funds:
Parks and Recreation
36 32 36 37 42 36 32 39 37 37
Community Centers 13 13 13 13 13 13 13 14 13 14
Mass Transit 22 23 22 22 22 18 16 15 17 16
CDBG 4454344454
Total Governmental Activities 566 547 564 570 609 600 591 597 599 617
CITY EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
- 191 -
TABLE 12
CITY OF HATTIESBURG, MISSISSIPPI
See independent auditor's report.
2023 2022 2021 2020 2019 2018 2017 2016 2015 2014
Employees Employees Employees Employees Employees Employees Employees Employees Employees Employees
Business-type Activities:
Water and Sewer System:
Customer Accounts
15 14 14 15 14 13 13 13 13 12
Water - Plant and Transmission 28 28 24 27 30 29 30 34 33 34
Sewers and Lagoons
12 12 14 11 15 17 17 22 22 20
Total Business-type Activities 55 54 52 53 59 59 60 69 68 66
Total Primary Government 621 601 616 623 668 659 651 666 667 683
- 192 -
TABLE 12
CITY OF HATTIESBURG, MISSISSIPPI
CITY EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
PAGE TWO
See independent auditor's report.
Hattiesburg
Y
ea
r
MS
A
Ended Permits Permits Bank Deposits Total assessed
Sept. 30, Issued
V
alue Issued
V
alue (000's omitted)
V
aluation
2014 493 50,008,704$ 1062 45,109,175$ 2,597,524$ 425,665,993$
2015 612 52,733,055 964 16,202,669 2,727,971 417,449,613
2016 622 92,385,429 847 17,623,035 2,727,360 426,507,409
2017 576 219,926,473 899 21,656,544 2,897,772 457,006,290
2018 760 325,811,798 1392 21,176,351 2,955,425 453,836,138
2019 1216 89,338,477 315 11,632,463 3,040,214 461,766,340
2020 335 70,736,655 495 16,522,887 3,788,921 470,364,425
2021 294 31,023,216 570 16,749,543 4,337,747 483,113,099
2022 297 95,526,235 726 24,411,524 4,452,109 490,053,846
2023 368 127,651,859 964 28,122,122 4,557,863 534,960,585
LAST TEN FISCAL YEARS
Commercial Construction Residential Construction
- 193 -
TABLE 13
CITY OF HATTIESBURG, MISSISSIPPI
CONSTRUCTION, BANK DEPOSITS, AND ASSESSED PROPERTY VALUES
See independent auditor's report.
2023 2022 2021 2020 2019 2018 2017 2016 2015 201
4
Police:
Stations
1 111111111
Sub-stations 4 444444444
Fire:
Stations
9 888888888
Hydrants 2159 2159 2159 2159 2159 2159 2159 2159 2159 2159
Solid Waste Management:
Trucks
29 24 24 24 24 24 24 24 24 24
(The City is a member of a regional landfill authority)
Parks and Recreation:
Zoo
1 111111111
Soccer/tennis/softball complex 1 111111111
Baseball/softball facilities 4 444444444
Water:
Pumping capacity (gallons per minute)
17,500 GPM 17,500 GPM 17,500 GPM 17,500 GPM 17,500 GPM 17,500 GPM 17,500 GPM 17,500 GPM 17,500 GPM 17,500 GPM
Average daily water pumping capacity (gallons)
22,000,000 GPD 22,000,000 GPD 22,000,000 GPD 22,000,000 GPD 22,000,000 GPD 22,000,000 GPD 22,000,000 GPD 22,000,000 GPD 22,000,000 GPD 22,000,000 GPD
Average daily water pumped (gallons)
11,700,000 GPD 11,700,000 GPD 11,700,000 GPD 11,700,000 GPD 11,700,000 GPD 11,700,000 GPD 11,700,000 GPD 11,700,000 GPD 11,700,000 GPD 10,800,000 GPD
Miles of water mains - 6" through 20"
295 miles 295 miles 295 miles 295 miles 295 miles 295 miles 295 miles 295 miles 295 miles 295 miles
Miles of water mains - 4" or less 82 miles 82 miles 82 miles 82 miles 82 miles 82 miles 82 miles 82 miles 82 miles 82 miles
Number of wells 13 13 13 13 13 13 13 13 13 13
Water storage tanks 9 999999999
Sewer:
Miles of sewer collection mains
352 miles 352 miles 352 miles 352 miles 352 miles 352 miles 352 miles 352 miles 352 miles 352 miles
Average daily treatment (million gallons per day):
South lagoon
9.47 MGD 9.47 MGD 9.47 MGD 9.47 MGD 9.47 MGD 9.47 MGD 9.47 MGD 9.47 MGD 9.47 MGD 9.47 MGD
North lagoon 1.98 MGD 1.98 MGD 1.98 MGD 1.98 MGD 1.98 MGD 1.98 MGD 1.98 MGD 1.98 MGD 1.98 MGD 1.98 MGD
Total average daily treatment 11.45 MGD 11.45 MGD 11.45 MGD 11.45 MGD 11.45 MGD 11.45 MGD 11.45 MGD 11.45 MGD 11.45 MGD 11.45 MGD
Permitted treatment capacity 24 MGD 24 MGD 24 MGD 24 MGD 24 MGD 24 MGD 24 MGD 24 MGD 24 MGD 24 MGD
Streets:
Miles of paved streets
354 miles 354 miles 352 miles 352 miles 352 miles 352 miles 352 miles 352 miles 352 miles 352 miles
Miles of unpaved streets 0 miles 0 miles 0 miles 0 miles 0 miles 0 miles 0 miles 0 miles 0 miles 0 miles
Area of City - square miles 55.4 55.4 55.4 55.4 55.4 55.4 55.4 55.4 55.4 55.4
- 194 -
TABLE 14
CITY OF HATTIESBURG, MISSISSIPPI
LAST TEN FISCAL YEARS
CAPITAL ASSET AND INFRASTRUCTURE STATISTICS BY FUNCTION
See independent auditor's report.
