2024 Annual Comprehensive Report

MANAGEMENT’S DISCUSSION AND ANALYSIS As management of the City of Greensboro, we offer readers of our financial statements this narrative overview and analysis of the financial activities of the City of Greensboro for the fiscal year ended June 30, 2024. The Management Discussion and Analysis (MD&A) section is designed to assist the reader in focusing on significant financial issues, provide an overview of the City’s financial activity, identify changes in the City’s financial condition, identify material deviations from the financial budget, and identify individual fund issues or concerns. Since the MD&A is structured to focus on the current year’s activities, resulting changes and currently known facts, we encourage readers to consider the information presented here in conjunction with the transmittal letter, which can be found beginning on page I of this report, and the City’s financial statements, which follow this section. FINANCIAL HIGHLIGHTS  The assets and deferred outflows of the City of Greensboro exceeded its liabilities and deferred inflows at the close of the fiscal year by $1.3 billion (net position) . The City’s net position increased by $17.8 million (1.4%) compared to FY 2023. The governmental net position increased $9.2 million (2.4%) primarily due to continued increases in property tax and utility franchise revenue, as well as a 170% increase in investment income, up $12 million due to the increased interest rate environment. Business-type net position increased $8.6 million (0.94%) primarily due to a $13.1 million increase in water and sewer charges and a $7.4 million (123%) increase in investment income.  The governmental activities program revenue was lower than last year’s results by approximately $47.1 million at $88.7 million. The difference is primarily related to the additional $55.6 million in General Government Grants related to the American Rescue Plan Act Fund revenue recognized and transferred to the General Fund in FY 2023 to support governmental and community projects. General governmental revenues increased by $33.8 million (9.9%), primarily due to increased property and electric sales taxes collected and a significant ($11.8 million) increase in investment income. Property tax receipts increased by 11.2% or approximately $24.9 million for FY 2024 due to a $0.04 increase in property tax rates to $0.6725 per $100 assessed valuation. Investment income increased by $12.0 million over FY 2023, mainly due to an increase in fair market value and higher overall earnings. Investment earnings (excluding changes in fair market value) were the equivalent of 5.68 cents on the property tax rate compared to 3.23 cents last year. For budgeting purposes, management projects interest earnings to have conservative growth for the near-term planning cycle. In the City’s business-type activities, total general revenues and transfers increased by about $11.6 million from the prior year. The increase comes primarily from a $7.4 million increase in investment income from FY 2023 and additional transfers from the occupancy taxes to support the Coliseum Fund transition to private management.  During the year, the City’s governmental expenses at the entity-wide level were $455.7 million, an increase of $58.8 million or 14.8% more than last year, primarily due to increases of expenses related to general government and public safety for added staffing and support, along with pay increases primarily for Police and Fire to help with recruitment and retention of certain staff. ARPA-Enabled Project Expenses increased by $3.8 million, largely due to improvements related to the Windsor Chavis Nocho Community Complex. Environmental services expenditures increased by $7.5 million due to the accrual of pollution remediation charges of $12.4 million for Bingham Park offset by $5 million less in environmental grant expenditures compared to the prior

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