2023 Annual Comprehensive Report

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 $2,592,430,771. The City has $108,095,000 in authorized, but unissued bonds at June 30, 2023 which includes $17.590 million for Transportation Bonds, $48.540 million for Parks and Recreational Facilities, $22.000 million for Housing Bonds, $8.480 million for Firefighting Facilities, $480,000 for Law Enforcement Facilities, $3.235 million for Community and Economic Development, and $7.770 of Refunding Debt. Each referendum item was voted on separately. More detailed information about the City’s long-term liabilities is presented in Note IV.J. 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 4.8% in June 2022 to 4.1% in June 2023, hotel/motel occupancy taxes increased 21.6% to $5.9 million from $4.8 million in FY 2022 due to continued rebound of travel after the pandemic. Sales taxes grew 6.0% compared to FY 2022. The City’s adopted FY 2024 budget for all funds increased $63 million or 9.1% to approximately $751.3 million, primarily in the infrastructure area for Water Resources improvements, and field operations funding associated with solid waste due to inflationary and tonnage increases. The assessed base value of all real and personal property is projected to grow approximately 1.75% in FY 2024 compared to FY 2023 values. The FY 2024 budget was adopted with a property tax rate of $.6725 cents per $100 of assessed value and includes allocations of $.0350, $.0100 and $.6275 to fund transit, housing and general government initiatives, respectively. The total rate is 4 cents higher than FY 2023. City Council has reaffirmed its intention to continue to maintain the unassigned fund balance of the General Fund at 9% of the 2024 fiscal year budget, or approximately $36.3 million. Budget Highlights for the Fiscal Year Ending June 30, 2024 Governmental Activities: The General Fund budget for FY 2024 was adopted at approximately $403.9 million (up 8.5%) with approximately $31.3 million in increased appropriations over the amended FY 2023 budget. Overall the General Fund budget shows a net increase of 14.5 full-time equivalent positions, several position changes are included in a variety of General Fund departments, including 7 positions being added to the fire department to increase capacity in meeting state mandated inspection requirements. The budget projects increases in projected revenue for property and sales taxes and user charges. User charges in solid waste are increasing to improve cost recovery and service cost increases. Appropriated General Fund fund balance is $6.5 million, or 1.61% of the total budget, but has historically been mostly unused.

2v