2020 Comprehensive Annual Financial Report

Bonds and $14.635 million for Community and Economic Development. Each referendum item was voted on separately. More detailed information about the City’s long-term liabilities is presented in Note IV.G. 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. Retail sales grew more than 2.5% compared to FY 2019. Unemployment increased from 4.6% in June 2019 to 9.4% in June 2020, hotel/motel occupancy taxes decreased 23% to $3.6 million from $4.7 million in FY 2019 due to the nationwide impact of the coronavirus pandemic. The City’s adopted FY 2021 budget for all funds increased $35.8 million or 6.3% to approximately $602.4 million, primarily in the infrastructure area for Water Resources improvements, construction of parking decks and field operations funding for residential and commercial recycling programs due to changes in the secondary market for recycled materials. The assessed base value of all real and personal property is projected to grow approximately 1.9% in FY 2021. The FY 2021 budget was adopted with a property tax rate of $.6625 cents per $100 of assessed value (same as prior year) and includes allocations of $.0350, $.0069 and $.6206 to fund transit, housing and general government initiatives, respectively. City Council has reaffirmed its intention to continue to maintain the unassigned fund balance of the General Fund at 9% of the 2021 fiscal year budget, or approximately $27.7 million. Budget Highlights for the Fiscal Year Ending June 30, 2021 Governmental Activities: The General Fund budget for FY 2021 was adopted at approximately $307.4 million (up 0.8%) with approximately $8.7 million in increased appropriations over the amended FY 2020 budget. Overall the General Fund budget shows a net increase of less than one full-time equivalent positions, several position changes are included in a variety of General Fund departments. The budget projects decreases in projected revenue primarily from sales tax due to uncertainties related the coronavirus pandemic. Sales tax revenue is projected to decrease by $3.4 million compared to previous year’s budget. Major budgeted initiatives continue to include economic development and job creation. Appropriated General Fund fund balance is $4.3 million, or 0.9% of the total budget, but has historically been mostly unused. The budget includes many programmatic reductions and delays for the next year based on the uncertainties for revenues due to the coronavirus pandemic. The budget included a 2.0% cost of living adjustment for employees. When city staff was preparing the city budget in early April and May we had budgeted conservatively for FY 2021, based on how final actual revenue came in. The second year budget for FY 2022 is balanced with a 66.25 cent tax rate, unchanged from the adopted FY 2021 rate. In FY 2021, the Debt Service Fund budget increased from the prior adopted budget to approximately $37.2 million. The amount of general obligation debt service as a percentage of General Fund expenditures is projected to be 12.0% in FY 2021. 2w