2024 Annual Comprehensive Report

F. Pollution Remediation Obligations Greensboro staff have identified specific City-owned properties where either it is known or reasonably believed that the sites contain certain pollutants. Most of the properties have not completed an environmental assessment of the impact or have active remediation systems in place, however each site has been reported to a North Carolina regulatory agency as having a current or reportable incident, thus voluntarily obligating the City for certain remediation activities. In addition, the City entered an administrative agreement with a state agency to voluntarily assess a site. None of the reported pollution creates an imminent endangerment to public health or welfare other than the Bingham Park site which is closed to the public. Many of the sources of impact have already been eliminated, as reasonably appropriate. An estimated pollution remediation obligation of $3,133,777 is recorded in the Statement of Net Position in the Solid Waste Management Enterprise Fund. This amount reflects current estimates for groundwater pollution remediation noted at the City’s White Street landfill, in an active part of the disposal site, not associated with closure and postclosure activities. City staff has voluntarily worked with appropriate State regulators to assess the environmental impact and to develop a corrective action plan. The estimated cost of remediation is based on an external consultant’s estimate for the corrective action plan, which involves phyto-remediation and monitored natural attenuation activities. Should further activities become necessary, such as constructing a pump and treat system, cost estimates would then be re-evaluated. Remediation activities began in Fiscal Year 2010 and are ongoing. Additional pollution remediation activities have been identified by the City relating to a former industrially-impacted property purchased in 1999 to house certain public safety and Water Resources operations. A Phase I Remedial Assessment was prepared by an external consultant in 2019 that focused on groundwater contamination. As of June 30, 2024, the City recorded an estimated pollution remediation obligation of $2,972,271 in the Water Resources Enterprise Fund and an additional $1,416,139 in the government-wide financial statements for public safety operations. City officials deem use of biobarrier methods to be the probable course of remediation action. The amount estimated for remediation at the Bingham Park site is $12,400,000 based on estimates prepared by an engineer in September 2024. City Council selected a remediation option that would consolidate affected waste and use a cover system along with stabilization of the stream banks at the park and allow for full removal of waste at an adjacent former school property for additional park amenities. The Project is estimated to take approximately one year to complete. The City expects certain federal and state funding to help offset the remediation costs. Certain other sites associated with pollution activity within the City have been identified, primarily pertaining to former waste disposal or prior property use; however, costs for remediation activities are not estimable as of June 30, 2024. In addition, we estimate no future recoveries to potentially reduce the recorded pollution liabilities in Fiscal Year 2024. G. Opioid Settlement Funds In April 2022, drug manufacturer Johnson & Johnson, and three drug distributors, McKesson, AmerisourceBergen, and Cardinal Health finalized a $26 billion-dollar nationwide settlement related to multiple opioid lawsuits. These funds will be disbursed to each participating state over an 18-year period according to an allocation agreement reached with all participating states. The majority of these funds are intended for opioid abatement and the distribution of the funds will be front loaded. North Carolina’ Memorandum of Agreement (MOA) between the state and local governments for the settlement funds allocates the funds as follows: • 15% directly to the State (“State Abatement Funds”) • 80% to abate funds established by Local Governments (‘Local Abatement Funds”) • 5% to a County Incentive Funds Since inception, additional parties have been added to the settlement terms from which the City is scheduled to receive further payments for opioid abatement. The City received $932,360 as part of the settlements in Fiscal Year 2024. Per the terms of the MOA, the City created a special revenue fund, the Opioid Settlement Funds, to account for these funds. All funds are to be used for opioid abatement and remediation activities. Funds are unearned until expended. No funds have been expended as of June 30, 2024. The MOA offered the City two options of expending the funds. The City opted for Option A, which allows the City to fund one or more high-impact strategies from a list of evidence-based strategies to combat the opioid epidemic.

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