2023 Annual Comprehensive Report

GOVERNMENT-WIDE FINANCIAL ANALYSIS Net position may serve over time as a useful indicator of a government’s financial position. In the case of the City of Greensboro, assets and deferred outflows exceeded liabilities and deferred inflows by $1,309,146,197 at the close of June 30, 2023 compared to $1,206,264,495 in the previous year. The net position for the City as a whole increased 8.5% at June 30, 2023, or $102.9 million. The increase in governmental activities was primarily driven by the $4.8 million increase in local sales tax revenue, due to the continued increase in robust consumer spending, and a $37 million increase from prior year in property tax receipts following a rate increase above the “revenue neutral” after property revaluation conducted by the County. The largest portion of the City of Greensboro’s net position $1,086,736,147 (83.0%) represents its investment in capital assets (e.g. land, building, machinery, and equipment) less any related debt used to acquire those assets that is still outstanding. The resources needed to repay the debt must be provided from sources other than capital assets, since they cannot be used to liquidate the liabilities. An additional portion of the City of Greensboro’s net position $242,057,713 (18.5%), represents resources that are subject to enabling legislation or external restrictions on how they may be used. Unrestricted net position, the residual amount of assets that can be used without constraints established by debt covenants, enabling legislation, or other legal requirements changed from ($106,622,762) at June 30, 2022 to ($19,647,663), up approximately $87 million at the end of this year, with the increase largely attributable to an increase in investment income recorded for the city’s fair market value adjustment at June 30, 2023 and increased property tax receipts. Investment income increased $27.4 million from the prior year. The City’s overall unrestricted cash levels increased by approximately $98.5 million to approximately $354.7 million. However, it should be noted that of the total reported “unrestricted” amount, only approximately $36.3 million is available and unobligated in the General Fund to provide working capital to finance day-to-day governmental activities and fund unforeseen circumstances in the future.

2g