2022 Annual Comprehensive Financial Report

million or 19.1% citywide with increases of approximately $73.2 million affecting business-type activity. Increased expenditures in the proprietary funds were primarily due to the Coliseum’s increased maintenance and operations expenses. Maintenance and Operations expenses increased $45.6 million from the prior year due increased events following the peak of Covid-19 and the official opening of the Steven Tanger Center of the Performing Arts. Of the City’s various business-type service areas, water and sewer operations, and stormwater management.  As of the close of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $193.4 million, a net decrease of approximately $27.7 million in comparison with the prior year fund balance. Approximately 70.6% of this total amount or $136.5 million is restricted or non-spendable and 29.4% or $56.9 million is Committed, Assigned or Unassigned, including $5.5 million appropriated for next year’s budget.  At the end of the current fiscal year, the total fund balance for the General Fund specifically was $102.7 million. Approximately 42.3% or $43.5 million of this balance is restricted for accounts receivable and encumbrances and $5.4 million is assigned for appropriation next year. It is also the City’s policy to hold aside 9% of the subsequent year’s General Fund budget as “unassigned” to remain available for working capital, but it may also be appropriated for emergencies. This amounted to $33.5 million as of June 30, 2022. Amounts remaining that are either non-spendable, committed or assigned for other purposes totaled approximately $20.4 million.  Charges for services for the City’s largest enterprise activity, the Water Resources Fund, comprising water and sewer operations increased $6.8 million or 5.6% in FY 2022. Rate increases of 4.5% for customers both inside and outside the city limits were in effect as of July 1, 2021. The cost of the City’s water supply purchased from three neighboring municipalities in the current year was approximately $3.1 million compared to $2.9 million last year, and is budgeted at $3.4 million in FY 2023 for purchases from Reidsville, Winston-Salem, Burlington and Randolph County. These interlocal arrangements will continue to be in place to keep the water lines “fresh” and to ensure additional supply in emergency or drought conditions. Current year contributions of $942,887 were made to the Piedmont Triad Regional Water Authority (“PTRWA”) for certain ongoing administration and operations associated with the Randleman Dam, which is fully operational. This project is being funded by a group of local government units and will supplement Greensboro’s water supply needs for the long term. The City’s total water rights in the Randleman Dam project, recorded as an Intangible Asset, are approximately $72.5 million, net of $21.3 million in amortization, as of June 30, 2022. Amortization of the water rights is calculated over a 50 year period. The City began receiving water from the PTRWA in October 2010, culminating a 20-year project that will ensure the City’s long-term water supply. Water purchases totaling $2.8 million were paid to the PTRWA in Fiscal Year 2022 and are budgeted at $2.8 million in FY 2023. At June 30, 2022, Revenue Bond debt service coverage was 2.3 times, meeting the targeted goal.  Certain deficit fund balances were reported in the Workforce Investment Act ($1,210,913), State, Federal and Other Grants Fund ($3,251,901), State and Federal (ARRA) ($23,173), Emergency Rental Assistance-Guilford County ($571,174) and Parks and Recreation Series 2016 Bond Fund ($5,599,189), respectively, as of the end of the fiscal year. The grant-related project fund deficits are from current expenses that were incurred at the end of the fiscal year but reimbursement had not yet been received from the federal and state granting agencies. These project fund deficits will be eliminated with the future reimbursements of federal and state grants. The bond fund deficit will be addressed with the issuance of General Obligation Bonds in October 2022, scheduled to settle in November.

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