2023 Annual Comprehensive Report

outside the City limits, largely causing the improved revenue results. On July 1, 2023, water and sewer rates for average residential customers increased 8.5% 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, 2023. 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 $1.2 billion 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; Sandy Creek Sewer improvements, water line extensions and sewer upgrades around Liberty Road, Camp Burton, N. Buffalo Trunkline replacement and an upgrade to the lagoon at the Townsend Waste Treatment Plant. The City utilizes the issuance of revenue bonds and pay go funding to fund these projects. 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 $25.1 million available in the restricted assets total of the Water Resources Fund as of June 30, 2023. 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 $2.9 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 water that is available to be piped from Randleman, the City has been able to adequately manage its water supply. 3) Stormwater Management Fund Charges for current services totaled $10,302,998 as compared to $10,223,520 for the preceding year, an increase of 0.8%. Operating expenses (excluding depreciation) increased by 17.2% and totaled $10,503,212 as compared to $8,959,812 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 $66,452,742 as compared to $64,787,803 for the preceding year, an increase of 2.6%. Event attendance numbers increased due to the Coliseum hosting both the ACC and NCAA basketball tournaments. Operating expenses (excluding depreciation) totaled $68,068,385 as compared to $63,878,637 for the preceding year, an increase of 6.6%. The General Fund contributed $3,400,000 toward Coliseum activities this year, mainly for operations. The Performing Arts Center brought in $30.3 million of the $66.4 million charges for current services during the fiscal year. Revenues and expenses for a given year may fluctuate based on the number of events and nature of the associated event agreements.

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