2021 Annual Comprehensive Financial Report

GOVERNMENT-WIDE FINANCIAL ANALYSIS Net position may serve over time as a useful indicator of a government’s financial position. In the case of the City of Greensboro, assets and deferred outflows exceeded liabilities and deferred inflows by $1,165,858,910 at the close of June 30, 2021 compared to $1,138,122,626 in the previous year. The net position for the City as a whole increased 2.4% at June 30, 2021, or $27.7 million. The increase in governmental activities was primarily driven by the $10.4 million increase in local sales tax revenue, due to the increase consumer spending, a $5.1 million increase in property tax revenue and around $2.9 million in federal funding received from the Coronavirus Aid Relief and Economic Security Act (CARES) due to the COVID-19 pandemic. The largest portion of the City of Greensboro’s net position $1,009,039,666 (86.5%) represents its investment in capital assets (e.g. land, building, machinery, and equipment) less any related debt used to acquire those assets that are still outstanding. The resources needed to repay the debt must be provided from sources other than capital assets, since they cannot be used to liquidate the liabilities. An additional portion of the City of Greensboro’s net position $246,350,103 (21.1%), represents resources that are subject to enabling legislation or external restrictions on how they may be used. Unrestricted net position, the residual amount of assets that can be used without constraints established by debt covenants, enabling legislation, or other legal requirements changed from ($80,201,468) at June 30, 2020 to ($89,530,859) (-11.6%), down approximately $9.3 million at the end of this year, with the decrease largely attributable to lack of revenues in Coliseum and Greensboro Transit due to COVID-19 restrictions in FY 2021. The City’s overall unrestricted cash levels increased by approximately $40.3 million to approximately $278.1 million. However, it should be noted that of the total reported “unrestricted” amount, only approximately $29.6 million is available and unobligated in the General Fund to provide working capital to finance day-to-day governmental activities and fund unforeseen circumstances in the future.

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