2024 Annual Comprehensive Report

Level of the fair value hierarchy Ownership of the STIF is determined on a fair market valuation basis as of the fiscal year end in accordance with STIF operating procedures. STIF investments are valued by the custodian using Level 2 inputs which in this case involves inputs other than quoted prices included within Level 1 that are either directly or indirectly observable for the asset or liability. The STIF is valued at $1 per share. Ownership of the BIF is determined monthly at fair value using the same Level 2 inputs as the STIF and is based upon units of participation. Units of participation are calculated monthly based upon inflows and outflows as well as allocations of net earnings. The Equity Index Fund, authorized under G.S. 147-69.2(b)(8), is a common trust fund considered to be comingled in nature. The Fund’s fair value is the number of shares times the net asset value as determined by a third party. At June 30, 2024 the fair value of the Fund was $38.0656 per share. Fair value for this fund is determined using Level 1 inputs which are directly observable, quoted prices (unadjusted) in active markets for identical assets or liabilities. Valuation technique North Carolina Department of State Treasurer’s OPEB Trust and LEOSSA Trust investments are measured using the market approach: using prices and other relevant information generated by market transaction involving identical or comparable assets or liabilities. B . Lease Receivable At June 30, 2024, the City was the lessor in various lease contracts for certain properties and equipment. . The lease receivable is measured as the present value of the future rent payments expected to be received during the lease term at the determined incremental borrowing rate based on the terms of the agreements. Lease receivable of $9,597,859 and $10,550,883 was recognized in the Governmental and Business-Type activities in the Statement of Net Position, respectively, as of June 30, 2024. C. Notes Receivable The City entered into an agreement with Duke Power Company, effective July 1, 1991, which authorized the discontinuance of transit services provided by Duke Transit in Greensboro, pursuant to a franchise agreement scheduled to expire on July 1, 2028. In exchange, the City is to receive $55,500,000 in 37 equal annual installments of $1,500,000 from Duke Power Company with the first installment on July 1, 1991 and the final installment on July 1, 2027, to assist in financing operations of the Greensboro Transit Advisory Commission. The annual payment is secured by a First and Refunding Mortgage Bond issued by Duke Power Company to the City. The present value of the note receivable as of June 30, 2024 is $4,864,918. Interest income of $699,672 will be recognized by the effective yield method over the remaining 3-year term of the note, based on an imputed interest rate of 8.95%. Terms of certain of the notes receivable of the Redevelopment Commission are such that principal and interest may be forgiven upon meeting certain conditions. In addition, corresponding revenue was not recognized at the government-wide financial statement level because the loans were not considered substantially collectible.

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