2022 Annual Comprehensive Financial Report

of the sound financial condition of the City of Greensboro. Greensboro’s credit worthiness is a major factor in securing the highest possible general obligation bond rating. This credit worthiness, according to recent rating reports, is the result of diversifying businesses, a stable and consistent growth in the taxpayer base, the conservative fiscal policies for reserve and debt management and the operating performance, as well as financial flexibility. Other factors considered and affecting the high-grade credit position is the history of budgeting, the moderate debt position and the oversight provided by the North Carolina Local Government Commission. North Carolina general statutes limit the amount of general obligation debt that a unit of government can issue to 8 percent of the total assessed value of taxable property located within that government’s boundaries. The legal debt margin for the City of Greensboro is $1,621,614,156. The City has $43,785,000 in authorized, but unissued bonds at June 30, 2022 which includes $9.955 million for Transportation Bonds, $12.595 million for Parks and Recreational Facilities, $6.600 million for Housing Bonds and $14.635 million for Community and Economic Development. On July 26, 2022 voters approved the general obligation bond referendum approving an additional $135.0 million in general obligation debt, which includes $30.0 million for Housing, $70.0 million for Parks and Recreation, $14.0 million for Firefighting Facilities, $6.0 million for Law Enforcement and $15.0 million for Transportation Bonds. Each referendum item was voted on separately and passed by approximately 2:1 margins. More detailed information about the City’s long-term liabilities is presented in Note IV.K. 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 6.7% in June 2021 to 4.8% in June 2022, hotel/motel occupancy taxes increased 65.9% to $4.8 million from $2.9 million in FY 2021 due to increased travel after the peak of the pandemic. Sales taxes grew 20% compared to FY 2021. The City’s adopted FY 2023 budget for all funds increased $62.5 million or 10% to approximately $688.3 million, primarily in the infrastructure area for Water Resources improvements, and field operations funding for residential and commercial recycling programs due to changes in the secondary market for recycled materials. The assessed base value is projected to grow approximately 23.8% for all property and nearly 26% for real property in FY 2023 compared to FY 2022 values. The FY 2023 budget was adopted with a property tax rate of $.6325 cents per $100 of assessed value and includes allocations of $.0350, $.0100 and $.5875 to fund transit, housing and general government initiatives, respectively. The total rate is 3 cents lower than FY 2022 but 8.69 cents higher than the estimated revenue neutral tax rate. City Council has reaffirmed its intention to continue to maintain the unassigned fund balance of the General Fund at 9% of the 2023 fiscal year budget, or approximately $33.5 million. New fund balance strengthening initiatives were also undertaken. Budget Highlights for the Fiscal Year Ending June 30, 2023 Governmental Activities: The General Fund budget for FY 2023 was adopted at approximately $372.4 million (up 9.5%) with approximately $32.4 million in increased appropriations over the amended FY 2022 budget. Overall the General Fund budget shows a net increase of 40.05 full-time equivalent positions, several position changes are included in a variety of General Fund departments, including 3 positions being added to the executive department and 1 position being added to the finance department for grant management. The budget projects increases in projected revenue for property and sales taxes and user charges. User charges

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