2025 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, 2025. 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 $12.6 million (0.9%) including restatements compared to FY 2024. The governmental net position increased $10.2 million (2.6%) primarily due to continued increases in property tax, local option sales tax, and state-shared utility sales tax revenues. Business type net position increased $2.4 million (0.3%) primarily due to a $12.5 million increase in water and sewer charges for service due to utility rate increases offset by additional operating expenses and interest expense related to bonds.  The governmental activities program revenue was higher than last year’s results by approximately $8.2 million at $96.9 million primarily due to an increase in charges for services and operating grants. General governmental activities revenues increased by $8.7 million (2.2%), primarily due to increased, property, local option, and other sales taxes collected. Property tax receipts increased by 2.1% or approximately $5.1 million for FY 2025. Local option sales tax increased by 5.8% or approximately $4.9 million for FY 2025. In the City’s business-type activities, total general revenues and transfers increased by about $2.6 million from the prior year.  During the year, the City’s governmental expenses at the entity-wide level were $490.4 million, an increase of $34.7 million or 7.6% 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. Environmental services expenditures decreased by $5.6 million largely due to the accrual of pollution remediation charges of $12.4 million for Bingham Park in FY 2024 offset by a $7.8 million increase to record soil remediation for construction of the new Fleet Garage in FY 2025. The City’s business-type expenses at the entity-wide level were $289.5 million, a decrease of $23.2 million or 7.4% less than last year, primarily due to a decrease in recorded Coliseum operational expenses due to a transition to private management. In all, expenses increased $12.3 million or 1.6% citywide.  As of the close of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $411.2 million, a net increase of approximately $96.5 million in comparison with the prior year fund balance, largely attributable to issuance of debt proceeds. Approximately 66.7% of this total amount or $274.1 million is restricted or non-spendable and 33.3% or $137.1 million is Committed, Assigned or Unassigned, including $16.7 million appropriated for next year’s budget.

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