2021 Annual Comprehensive Financial Report

limits as necessary to maintain debt service coverage covenant targets of 2.0x coverage. Actual debt service coverage has exceeded 2.0x coverage in each of the past ten years, with a current coverage of 2.00x as of June 30, 2021. The City continues to make a significant investment in water resource needs to replace and expand existing infrastructure and to meet new environmental regulations. The Water and Sewer utility comprises approximately one-third of the City’s overall capital improvement plan, with estimated $660 million in planned capital expenditures over the next ten year period. Ongoing system improvements are expected and are included in our long-range planning. Major projects include major stream restoration projects to improve water quality and minimize erosive impact to streams’ adjoining property, and the final installment of major electrical improvements at the Mitchell Pumping Station, including the gear and associated transformers. The City utilizes the issuance of revenue bonds and pay-go funding to fund these projects. Pay-go funding is expected to be a little less than 50% and should cover a large part of anticipated future costs. The City has also established a capital reserve account to provide for future needs of the water and sewer system, with an account balance of approximately $15.0 million available in the restricted assets total of the Water Resources Fund as of June 30, 2021. The Randleman Dam, Lake and Water Plant Project (managed by the Piedmont Triad Regional Water Authority, “PTRWA”) is designed to meet long-term future water needs. PTRWA constructed a 14.7 MGD Water Treatment Plant (expandable to 48 MGD) which began pumping treated water to Greensboro in early October 2010. Approximately $2.7 million was paid to PTRWA in FY 2021 for current water purchases from this supply. Greensboro has acquired certain water rights in this project, along with five other governmental units. Due to ongoing interlocal water purchase agreements with neighboring communities, conservation measures, the purchase of a small dam on the Haw River, along with approximately 9.08 million gallons of water per day available to be piped from Randleman, the City has been able to adequately manage its water supply with an annual average production capacity of 52.9 MGD. 3) Stormwater Management Fund Charges for current services totaled $10,189,635 as compared to $10,163,995 for the preceding year, an increase of 0.3%. Operating expenses (excluding depreciation) increased by 7.4% and totaled $9,215,736 as compared to $8,582,788 for the preceding year. The increase is largely attributed to increased maintenance and operations expense. The stormwater program monitors and manages the quality and quantity of stormwater runoff and helps protect limited water resources throughout the City. Residential stormwater fees range from $1.50 to $3.90 based on the square footage of impervious property area owned and fund program operations as well as related capital improvement projects. 4) Coliseum Fund Charges for current services totaled $4,613,731 as compared to $30,867,027 for the preceding year, a decrease of 85.1%. Event attendance numbers decreased from 1,224,764 for FY 2019-20 to 392,730 for FY 2020-21 due to state-imposed coronavirus restrictions. In July 2021, the Greensboro Coliseum facility was awarded and received $10 million from a Shuttered Venue Operator Grant, administered by the Small Business Administration, which will help offset certain revenue shortfalls. Operating expenses (excluding depreciation) totaled $14,739,498 as compared to $38,221,661 for the preceding year, a decrease of 61.4%. The General Fund contributed $2,900,000 toward Coliseum activities this year, the same subsidy amount as last year, mainly for operations. The Steven Tanger Center for the Performing Arts, which is included in the Coliseum fund for reporting purposes, had an anticipated grand opening in March 2020, but due to state-imposed coronavirus restrictions, it held its first performance on September 2, 2021.

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