2019 Comprehensive Annual Financial Report (CAFR)

totaled $69,602,670 as compared to $66,207,811 for the preceding year. On July 1, 2018, water and sewer rates for average residential customers increased by 3.50% for customers both inside and outside the City limits, largely causing the improved revenue results. On July 1, 2019, water and sewer rates were increased again, up 4.00% for customers inside and outside the City limits, expected to generate approximately $5.3 million in additional revenues in FY 2020, in keeping with debt service coverage covenant targets of 2.0x coverage. Actual debt service coverage has exceeded 2.0x coverage in each of the past ten years, with a current coverage of 2.08x as of June 30, 2019. The City continues to make a significant investment in water resource needs to replace and expand existing infrastructure and to meet new environmental regulations. The Water and Sewer utility comprises approximately one-third of the City’s overall capital improvement plan, with estimated $620 million in planned capital expenditures over the next ten year period. Ongoing system improvements are expected and are included in our long-range planning. Major projects include continued work at the Osborne Water Reclamation Facility to increase capacity, major electrical improvements to the Mitchell Pumping Station, ongoing water and sewer line rehabilitation, and expansion and renovations. The City utilizes the issuance of revenue bonds and pay-go funding to fund these projects. Pay-go funding is expected to be a little less than 50% and should cover a large part of anticipated future costs. The City has also established a capital reserve account to provide for future needs of the water and sewer system, with an account balance of approximately $12.7 million available in the restricted assets total of the Water Resources Fund as of June 30, 2019. The Randleman Dam, Lake and Water Plant Project (managed by the Piedmont Triad Regional Water Authority, “PTRWA”) is designed to meet long-term future water needs. PTRWA constructed a 14.7 MGD Water Treatment Plant (expandable to 48 MGD) which began pumping treated water to Greensboro in early October 2010. Approximately $2.7 million was paid to PTRWA in FY 2019 for current water purchases from this supply. Greensboro has acquired certain water rights in this project, along with five other governmental units. Due to ongoing interlocal water purchase agreements with neighboring communities, conservation measures, the purchase of a small dam on the Haw River, along with approximately 7.83 million gallons of water per day available to be piped from Randleman, the City has been able to adequately manage its water supply with an annual average production capacity of 48 MGD. 3) Stormwater Management Fund Charges for current services totaled $9,896,486 as compared to $10,011,215 for the preceding year, a decrease of 1.2% due to a decrease in the amount of stormwater permits. Operating expenses (excluding depreciation) decreased by 1.4% and totaled $7,725,906 as compared to $7,830,552 for the preceding year. The stormwater program monitors and manages the quality and quantity of stormwater runoff and helps protect limited water resources throughout the City. Residential stormwater fees range from $1.50 to $3.90 based on the square footage of impervious property area owned and fund program operations as well as related capital improvement projects. 4) Coliseum Fund Charges for current services totaled $29,687,289 as compared to $23,938,373 for the preceding year, an increase of 24.0%. The total number of events in FY 2018-19 decreased from 951 to 941. The overall facility attendance stayed the same around 1.1 million; revenues increased due to large concert events yielding more admission revenue. The Greensboro arena has hosted eleven Men’s ACC Basketball Tournaments from 1995 to 2015, and Greensboro is scheduled to again host in 2020. Along with hosting the Women’s ACC Basketball Tournament from 2000 to 2016, 2m