2023 Annual Comprehensive Report

B. Long-Term Financial Planning In July 2022, the City passed a General Obligation Bond referendum in the amount of $135,000,000. On November 16, 2022, the City issued $34,570,000 of general obligation bonds (2016 authorization) and $43,890,000 of general obligation bonds (2022 authorization). As of June 30, 2023, the City has a remaining balance of $9,215,000 in unissued general obligation bonds from the 2016 authorization. As of June 30, 2023, the City has $91,110,000 in unissued general obligation bonds (2022 authorization) in the following functional areas to fund various governmental projects. We anticipate phasing the issuance of these bonds over the next several years in accordance with Greensboro’s capital improvement program, Council’s strategic priorities and the economic outlook, and as current bonds mature: Housing $22,000,000 Parks and Recreation 45,150,000 Transportation 15,000,000 Fire Facilities 8,480,000 Police Facilities 480,000 On September 29, 2022, the City issued up to $175,000,000 in taxable ($25,000,000) and nontaxable ($150,000,000) Combined Enterprise System Revenue Bond Anticipation Notes according to an Advance and Note Purchase Agreement with Truist Bank. The 2022 A&B Bond Anticipation Notes bear interest at a variable rate being the lesser of 18% per annum and the maximum rate permitted by law. The notes are expected to be converted to permanent financing by June 30, 2024. The City of Greensboro’s proposed ten-year Capital Improvements Program (CIP) includes approximately $2.1 billion for projects that will be undertaken during FY 2024-2033 and outlines a future financing plan to maintain the City’s current infrastructure and develop new facilities where needed to help achieve the City Council’s strategic service priorities. A substantial portion of the CIP relates to Water Resources projects. Additional amounts are planned for Parks and Recreation, Neighborhood Development and Fire Department projects. While the substantial portion of the CIP is funded by bonds and Enterprise Fund operations, the CIP is also funded by grant revenue, including community contributions, community development efforts, transit and other sources. During the 10-year planning period, grants are projected to be available to support a variety of Transportation projects, including sidewalk construction, greenway projects, road projects, and transit improvements. Total Grants funding in the CIP equates to $133 million, approximately 6.4% of the total CIP. Unauthorized bond funding represents $461 million or 22.3% of the current plan. The CIP also includes $67 million categorized as other revenue. On March 11, 2021, upon congressional approval, President Biden signed into law the $1.9 trillion recovery package known as the American Rescue Plan Act (“ARPA”). The federal recovery package included direct assistance to local governments in funding response efforts towards the public health emergency or its negative economic impacts, premium pay for frontline workers, replacement of revenue loss from government services, and necessary infrastructure improvements. The City received direct funding of $59.4 million from the U.S. Treasury in two tranches of $29.7 million each. The first tranche was received in May 2021, and the second tranche was received in June 2022. Funding has been allocated for specific purposes as of June 30, 2023. For the fiscal year ended June 30, 2023, General Fund Revenues were $433.8 million, an increase of $95.3 million over the prior year and approximately 103% of budget. Strong current year ad valorem property tax receipts contributed more than $32.4 million of the revenue increase. During FY 2022-23, the remaining ARPA funds of $56.4 million, out of the total $59.4 million, were transferred from the ARPA Fund into the General Fund. General Fund expenditures were $409.9 million, an increase of $81.7 million over the prior year, and approximately 94.0% of budget.

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