2024 Annual Comprehensive Report

The City’s total overall outstanding bonded long-term liabilities increased approximately $54.2 million during the current fiscal year due to the issuance of the $25.2 Taxable Series 2024A Combined Enterprise System Revenue Bonds and the $101.4 million Series 2024B Combined Enterprise System Revenue Bonds. These bonds were issued to refund the variable rate 2022A and 2022B Bond Anticipation Notes. In June 2024, the City entered into direct placement Combined Enterprise System Revenue Bond Anticipation Notes (BANs) for $20 million (Taxable Series 2024A) and $255 million (Series 2024B) having variable interest rates. These BANs are expected to be refinanced in fiscal year 2026. $23.6 million of the note capacity was drawn as of June 30, 2024. The City of Greensboro has a general obligation bond rating of Aaa from Moody’s Investors Service and a AAA rating from S&P Global Ratings. These bond ratings are a clear indication of the sound financial condition of the City of Greensboro. Greensboro’s credit worthiness is a major factor in securing the highest possible general obligation bond rating. This credit worthiness, according 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 $2,684,868,433. The City has $98,880,000 in authorized, but unissued bonds at June 30, 2024 which includes $15.000 million for Transportation Bonds, $45.150 million for Parks and Recreational Facilities, $22.000 million for Housing Bonds, $8.480 million for Firefighting Facilities, and $480,000 for Law Enforcement Facilities, with the $7.77 million balance remaining from refunding bonds of which the City does not intend to issue. Each referendum item was voted on separately. More detailed information about the City’s long-term liabilities is presented in Note IV.I. 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 increased from 4.1% in June 2023 to 5.0% in June 2024. Hotel/motel occupancy taxes increased 0.4% to $5.89 million from $5.87 million in FY 2023. Sales taxes grew 2.5% compared to FY 2023. The City’s adopted FY 2025 budget for all funds increased $50.6 million or 6.7% to approximately $802.0 million, primarily in the infrastructure area for Water Resources improvements, and public safety funding associated with the police vehicle take home program. The assessed base value of all real and personal property is projected to grow approximately 2.0% in FY 2025 compared to FY 2024 values. The FY 2025 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 unchanged from FY 2024. City Council has reaffirmed its intention to continue to maintain the unassigned fund balance of the General Fund at 9% of the 2025 fiscal year budget, or approximately $38 million.

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