2022 Annual Comprehensive Financial Report

City ad valorem taxes are billed by the Guilford County Tax Collector after July 1, the beginning of the Fiscal Year, and are due on September 1. No penalties or interest are assessed until the following January 6. The taxes levied (other than motor vehicles) are based on assessed property values as of January 1, which is the statutory lien date on real property. Liens against personal property are coincident with action taken to levy or garnish. Collections of City taxes are made by the County and remitted to the City as collected. In accordance with State law, property taxes on certain registered motor vehicles are assessed and collected throughout the year based on a staggered registration system. Effective September 1, 2013, motor vehicle taxes become due at the time the vehicles are registered. Until that date, motor vehicle taxes became due the first day of the fourth month after vehicles were registered and were collected by the County and remitted to the City. Under the current system, vehicle taxes are collected by the State of North Carolina and remitted to the City. The taxes receivable amount for the General Fund is reduced by an allowance for uncollectible of $284,944. The net General Fund receivable of $3,147,725 is shown as a deferred inflow of resources on the Governmental Funds Balance Sheet. 3. Lease Receivable The City’s lease receivable is measured at the present value of lease payments expected to be received during the lease term. Under the lease agreement, the City may receive variable lease payments that are dependent upon the lessee’s revenue. The variable payments are recorded as an inflow of resources in the period the payment is received. A deferred inflow of resources is recorded for the lease. The deferred inflow of resources is recorded at the initiation of the lease in an amount equal to the initial recording of the lease receivable. The deferred inflow of resources is amortized on a straight-line basis over the term of the lease. 4. Inventories/Assets Held for Resale and Prepaid Items Inventories consist primarily of materials and supplies held for consumption. They are stated at cost, determined principally by a moving average method. The costs of governmental fund-type inventories are recorded as expenditures when consumed rather than when purchased. Inventories of the Greensboro ABC Board are valued at the lower of cost (FIFO) or market. Assets Held for Resale in the amount of $3,075,617 and $1,806,711 as of June 30, 2022, can be found in the statement of net position for component units, Exhibit A-15 on page 34, for the Greensboro Redevelopment Commission and the Greensboro Housing Development Partnership, respectively. Assets Held for Resale amounting to $95,180, and $600,000 are recorded in the Street and Sidewalk Capital Project Fund, and the Capital Leasing Fund, respectively, for certain other properties held by the City. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements and expensed as the items are used. 5. Restricted Assets Certain proceeds of the City’s bonds, certain grant receipts, as well as other funds are classified as restricted assets on the statement of net position because their use is limited by applicable bonds covenants, grantor or other third party and enabling legislative restrictions and state statutes. Powell Bill funds are classified as restricted cash because they can be expended only for the purposes of maintaining, repairing, constructing, reconstructing or widening of local streets per G.S. 136-41.1 through 136-41.4. 6. Intangible Assets Intangible Assets of $93,783,457 as of June 30, 2022 are recorded in the Water Resources Enterprise Fund and represent rights to future raw water allocations from the Randleman Dam and reservoir project, in accordance with a joint venture agreement established in September 1987 with five other governmental entities to form a regional water supply.

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