2021 Annual Comprehensive Financial Report

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. Unemployment decreased from 9.4% in June 2020 to 6.1% in June 2020, hotel/motel occupancy taxes decreased 19% to $2.9 million from $3.6 million in FY 2020 due to the nationwide impact of the coronavirus pandemic. Sales taxes grew 17.8% compared to FY 2020. The City’s adopted FY 2022 budget for all funds increased $17.3 million or 2.9% to approximately $619.7 million, primarily in the infrastructure area for Water Resources improvements, construction of a downtown parking deck 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 1.52% in FY 2022. The FY 2022 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 2022 fiscal year budget, or approximately $29.6 million. Budget Highlights for the Fiscal Year Ending June 30, 2022 Governmental Activities: The General Fund budget for FY 2022 was adopted at approximately $329.3 million (up 0.7%) with approximately $11.5 million in increased appropriations over the amended FY 2021 budget. Overall the General Fund budget shows a net increase of 36.63 full-time equivalent positions, several position changes are included in a variety of General Fund departments, including 15 police positions and 7 positions for the creation of a Behavioral Health Response Team to assist public safety. The budget projects increases in projected revenue for property and sales taxes. Utility sales tax, piped natural gas tax budgets have been decreased due to facility closures and milder weather in the current year. Users fees are also budgeted around $1.5 million less than last year’s budget but are expected to return to pre-pandemic levels in FY 2023. Appropriated General Fund fund balance is $6.1 million, or 1.85% of the total budget, but has historically been mostly unused. The budget reinstates approximately $5 million in reductions to programming and maintenance to the current year because of the anticipated impacts on revenue and operations due to the COVID-19 pandemic. The budget included a 3.0% merit increase for all eligible employees. The second year budget for FY 2023 is balanced with a 66.25 cent tax rate, unchanged from the adopted FY 2022 rate. In FY 2022, the Debt Service Fund budget increased from the prior adopted budget to approximately $36.3 million. The amount of general obligation debt service as a percentage of General Fund expenditures is projected to be 11.0% in FY 2022.

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