2021 Annual Comprehensive Financial Report

Cash Management The City's investment policy is to minimize credit and market risks while maintaining a competitive yield on its portfolio. Accordingly, deposits were either insured by federal depository insurance or collateralized. All collateral on deposits was held either by the City or its agent. All investments held by the City during the year and at June 30, 2021 are classified in various levels of fair value hierarchy as defined by the Governmental Accounting Standards Board. The City's cash management program provided the City with interest earnings excluding fair market value adjustments totaling $3,529,239 for the fiscal year ended June 30, 2021 as compared to $9,487,999 in the prior year. Cash balances are analyzed daily to forecast the amount of funds required and amounts available for investment. The average amount of funds invested per month totaled $403,886,327 during the year. The City's average yield on investments for the year was 0.86%, down from 2.54% in the prior year. Interest earnings were the equivalent of nearly 1.19 cents on the tax rate for FY 2021 compared to 3.28 cents last year. B. Proprietary Funds Proprietary Funds provide the same type of information found in the government-wide financial statements but in more detail. Other factors concerning the finances of the proprietary funds have already been addressed in the discussion of the City of Greensboro’s business-type activities. General Fund Budgetary Highlights The General Fund budget for FY 2021 was adopted at $306,475,453 (excluding carry-forward encumbrances) and represents an increase of approximately 0.5% compared to the adopted FY 2020 budget. Encumbrances of $4,485,873 were carried forward from FY 2020 commitments. There were no significant variances from the original and final amended budgets for FY 2021. As of June 30, 2021, the City had collected $320.0 million or 102.3% of its budgeted General Fund revenues and had incurred $299.6 million or 95.8% of its budgeted expenditures. Significant differences between actual results and the final amended budget are highlighted below: • Overall General Fund revenues were more than the final amended budget by approximately $7.1 million primarily due to increase in local option sales taxes and unbudgeted federal grants received during the year. Revenue generated from local option sales tax was higher than the final amended budget by approximately $14.0 million. • Actual expenditures compared to final budget were less by $13.3 million or approximately 3.9%, noting approximately $2.4 million savings in police operations, $2.2 million savings in engineering and building maintenance and approximately $4.8 million savings in culture and recreation. • FY 2021 included a 2% cost of living adjustment (COLA) increase for employees, along with further implementation of compensation study recommendations.

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