2019 Comprehensive Annual Financial Report (CAFR)

Cash Management The City's investment policy is to minimize credit and market risks while maintaining a competitive yield on its portfolio. Accordingly, deposits were either insured by federal depository insurance or collateralized. All collateral on deposits was held either by the City or its agent. All investments held by the City during the year and at June 30, 2019 are classified in various levels of fair value hierarchy as defined by the Governmental Accounting Standards Board. The City's cash management program provided the City with interest earnings excluding fair market value adjustments totaling $7,906,665 for the fiscal year ended June 30, 2019 as compared to $5,439,939 in the prior year. Cash balances are analyzed daily to forecast the amount of funds required and amounts available for investment. The average amount of funds invested per month totaled $341,383,110 during the year. The City's average yield on investments for the year was 2.31%, up from 1.61% in the prior year. Interest earnings were the equivalent of nearly 2.85 cents on the tax rate for FY 2019 compared to 1.99 cents last year. B. Proprietary Funds Proprietary Funds provide the same type of information found in the government-wide financial statements but in more detail. Other factors concerning the finances of the proprietary funds have already been addressed in the discussion of the City of Greensboro’s business-type activities. General Fund Budgetary Highlights The General Fund budget for FY 2019 was adopted at $291,761,451 (excluding carry-forward encumbrances) and represents an increase of approximately 1.9% compared to the adopted FY 2018 budget. Encumbrances of $3,747,122 were carried forward from FY 2018 commitments. There were no significant variances from the original and final amended budgets for FY 2019. As of June 30, 2019, the City had collected $287.4 million or 100.5% of its budgeted General Fund revenues and had incurred $285.2 million or 96.4% of its budgeted expenditures. Significant differences between actual results and the final amended budget are highlighted below:  Overall General Fund revenues were higher compared to the final amended budget by approximately $1.5 million primarily due to increased interdepartmental charges, taxes revenues, fines and forfeitures collections, charges for current services along with other miscellaneous revenues. Revenue generated from licenses and permits were lower than the final amended budget by approximately $724 thousand.  Actual expenditures compared to final budget were less by $7.4 million or approximately 2.9%, noting approximately $1.4 million in savings in general government costs, $1.8 million less for Engineering and Building Maintenance, and approximately $1.2 million savings in police operations.  FY 2019 included a 3% average merit increase for employees, along with further implementation of compensation study recommendations.

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