2022 Annual Comprehensive Financial Report

(property tax) method to distribute its allocated sales tax receipts to municipalities within the County and as a result, sales tax receipts for Greensboro may fluctuate from year to year, depending on the proportion of property tax levies of each of the municipalities within the County, compared to the total collected. Local option sales taxes represent approximately 23.4% of overall general fund revenues in FY 2022. The total sales tax rate in Guilford County is 6.75% with 4.75% charged for the general state rate and 2.00% charged for the local option. The local option sales tax currently in effect is distributed by the State to the County as follows, with subsequent distribution to Greensboro and the other municipalities in the County, based on the “ad valorem” method: Article 39 (1%) Point of Origin Article 40 (1/2%) Per Capita Article 42 (1/2%) Point of Origin Greensboro’s occupancy tax collection of $4,824,301 has increased 45.6% over the ten-year period ending June 30, 2022 and 64.9% increase from the prior year. The increases in both periods resulted from increased travel after the peak of the pandemic last year. Intergovernmental Revenues amounted to $92,759,183 as compared to previous year revenues of $84,632,734. State-shared and grant revenues are a major source of funding for municipal operations and services, with intergovernmental revenues comprising 23.1% of total governmental revenues, as compared to 22.5% in the previous year. Licenses and permits amounted to $5,091,713 compared to previous year revenues of $4,388,852 an increase of 16.0%. The increase is primarily due to an increase in the number of construction permits during FY 2022. FY 2021 and FY 2022 were particularly strong years for building activity in the City. Fines and forfeitures amounted to $1,035,774 as compared to the previous year's collection of $963,982, an increase of 7.4% over last year. The increase was primarily due to an increase in false burglar alarm fines and parking violations in FY 2022. Charges for current services amounted to $29,473,019 as compared to the previous year's revenue of $27,235,425 an increase of 8.2%. 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, 2022 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 $2,991,574 for the fiscal year ended June 30, 2022 as compared to $3,529,239 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 $441,219,963 during the year. The City's average yield on investments for the year was 0.68%, down from 0.86% in the prior year. Interest earnings were the equivalent of nearly 1.01 cents on the tax rate for FY 2022 compared to 1.19 cents last year.

2r