2020 Comprehensive Annual Financial Report

unassigned and retained for working capital purposes as well as unforeseen emergencies. General fund balance increased by $1.2 million due primarily to an increased amount of property tax received in FY 20 due to the tax increase. The Debt Service Fund has a fund balance of $26.0 million, $2.6 million less than last year, with a target level of $10 million. The fund covered debt service expenditures (principal and interest) of approximately $33.1 million, amounting to approximately 11.4 cents of the general property tax rate. The total fund balance at June 30, 2020 is assigned for debt service in next year’s budget with the balance to be used to stabilize property tax rates from year to year, despite future increases in debt service amounts due to new voter-approved bonds, as well as to support the City’s fund balance goals. Revenues for general governmental functions (General, Special Revenue, Capital Project and Debt Service Funds) amounted to $342,401,070 for the fiscal year ended June 30, 2020 and are comprised of various sources as shown in the following graph:

Figure 5 Revenues by Source – Governmental Activities

Property tax collections for the current City levy amounted to $194,247,239. The rate of collection as of the end of the fiscal year was 99.36% for the current year levy, with collections for levies in previous years approximating close to 100%. We expect the collection rate to remain at high levels due to the statewide motor vehicle “Tax and Tag Together” system, implemented by North Carolina effective July 1, 2013. The State of North Carolina now collects property taxes on motor vehicles and remits to the City rather than collected by Guilford County under the old system. The overall property tax rate for the FY 2020 budget is $.6625 per $100 valuation, three cents higher than the FY 2019 budgeted rate of $.6325. The FY 2020 budget was adopted with $0.0069 directly recorded in the Housing Partnership Fund. This amount replaces the General Fund transfer to the housing fund that was budgeted in previous years and allows the Housing Partnership Fund to remain 2q