2022 Annual Comprehensive Financial Report

outside the City limits, largely causing the improved revenue results. On July 1, 2022, water and sewer rates for average residential customers increased 4.5% for customers both inside and outside the City 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 2.26x as of June 30, 2022. 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 $960 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 installation of an elevated water tank in Liberty to aid the Greensboro-Randolph Megasite; water line extensions and sewer upgrades around Camp Burton, Highway 62, Alamance Church Road, N. Elm near Cornwallis and Hammel Street and major electrical improvements at the Mitchell Pumping Station. 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 $17.5 million available in the restricted assets total of the Water Resources Fund as of June 30, 2022. 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 $2.8 million was paid to PTRWA in FY 2022 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 48.34 MGD. 3) Stormwater Management Fund Charges for current services totaled $10,223,520 as compared to $10,189,635 for the preceding year, an increase of 0.3%. Operating expenses (excluding depreciation) decreased by 2.8% and totaled $8,959,812 as compared to $9,215,736 for the preceding year. 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 $64,787,803 as compared to $4,613,731 for the preceding year, an increase of 1,304.2%. Event attendance numbers increased from 392,730 for FY 2020 21 to 1,548,191 for FY 2021-22 due to return of events after the peak of the pandemic and the opening of the Performing Arts Center. Operating expenses (excluding depreciation) totaled $63,878,637 as compared to $14,739,498 for the preceding year, an increase of 333.4%. The General Fund contributed $2,900,000 toward Coliseum activities this year, the same subsidy amount as last year, mainly for operations. The special revenue fund State and Federal Grant Fund transferred $10 million from the Shuttered Venue Operators Grant awarded in FY 2022 to offset revenue shortfalls from the pandemic .The Steven Tanger Center for the Performing Arts,

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