2019 Comprehensive Annual Financial Report (CAFR)

Economic Factors and Next Year’s Budgets and Rates The Greensboro area economy continued to gain strength in several areas including median household income and housing activity. Seasonally adjusted unemployment increased from 4.1% in June 2018 to 4.3% in June 2019, with the national average at 3.7%. Hotel/Motel occupancy taxes continued to increase for the ninth year in a row. Sales taxes grew more than 7.7% compared to FY 2018. The City’s adopted FY 2020 budget for all funds increased $23.1 million or 4.3% to approximately $566.6 million, primarily in the infrastructure area for Coliseum improvements and Water Resources improvements. The assessed base value of all real and personal property is projected to grow approximately 1.9% in FY 2020. The FY 2020 budget was adopted with a property tax rate of $.6625 cents per $100 of assessed value, an increase of $.03 cents, representing the first increase in the past ten years. The tax rate includes allocations of $.035, $.0069 and $.6156 to fund transit, housing and general government initiatives, respectively, along with another $.0050 to fund economic development projects, amounting to about $1.4 million each year. Funds for FY 2020 are fully allocated for a variety of items, which should spur additional economic growth. City Council has reaffirmed its intention to continue to maintain the unassigned fund balance of the General Fund at 9% of the 2020 fiscal year budget, or approximately $27.5 million. Budget Highlights for the Fiscal Year Ending June 30, 2020 Governmental Activities: The General Fund budget for FY 2020 was adopted at approximately $305.0 million (up 4.5%) with approximately $9.1 million in increased appropriations over the amended FY 2019 budget. Overall the General Fund budget shows a net increase of 14.5 full-time equivalent positions, including several positions for a variety of General Fund Departments as well as 2 MWBE Specialists, 2 Code Enforcement Officers, 2 Branch Librarians, and an additional Zoning Enforcement Officer. The budget also estimates increased projected revenues of more than 5% primarily from property taxes. Major budgeted initiatives continue to include economic development and job creation. One half cent on the tax rate in the Economic Development Fund will generate approximately $1.4 million, set aside to serve as a funding source to support economic development programs such as the Guilford County Economic Development Alliance and programs identified through the Community Partners Board process. Appropriated General Fund fund balance is $4.9 million, or 0.9% of the total budget, but has historically been mostly unused. No significant services or programs were eliminated and few new service enhancements were funded. The budget included a 3% average merit increase for employees. The second year budget for FY 2021 is balanced with a 66.25 cent tax rate, unchanged from the adopted FY 2020 rate. In FY 2020, the Debt Service Fund budget increased from the prior adopted budget to approximately $34.9 million. The amount of general obligation debt service as a percentage of General Fund expenditures is projected to be 11.5% in FY 2020.

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