2025 Annual Comprehensive Report

 At the end of the current fiscal year, the total fund balance for the General Fund specifically was $110.6 million. Approximately 45.6% or $50.4 million of this balance is restricted for accounts receivable and encumbrances and $13.4 million is assigned for appropriation next year. It is also the City’s policy to hold aside 9% of the subsequent year’s General Fund budget as “unassigned” to remain available for working capital, but it may also be appropriated for emergencies. This amounted to $39.6 million as of June 30, 2025. Amounts remaining that are either non-spendable, committed or assigned for other purposes totaled approximately $20.5 million.  Charges for services at the fund level, for the City’s largest enterprise activity, the Water Resources Fund, comprising water and sewer operations increased $12.5 million or 8.3% in FY 2025. Rates for water and wastewater increased 8.5% on average for customers both inside and outside the city limits effective July 1, 2024. The cost of the City’s water supply purchased from three neighboring municipalities was approximately $3.2 million in FY 2024, $3.1 million in FY 2025, and is budgeted at $4.1 million in FY 2026 for purchases from Reidsville, Winston-Salem, Burlington and Randolph County. These interlocal arrangements will continue to be in place to keep the water lines “fresh” and to ensure additional supply in emergency or drought conditions. Water purchases totaling $3.1 million were paid to the PTRWA in Fiscal Year 2025 and are budgeted at $3.1 million in FY 2026. The City began receiving water from the PTRWA in October 2010, culminating a 20-year project that will ensure the City’s long-term water supply. This project is being funded by a group of local government units and will supplement Greensboro’s water supply needs for the long term. Current year contributions of $1,005,688 were made to the Piedmont Triad Regional Water Authority (“PTRWA”) for certain ongoing administration and operations associated with the Randleman Dam, which is fully operational. The City’s total water rights in the Randleman Dam project, recorded as an Intangible Asset, are approximately $69.7 million, net of $27.0 million in amortization, as of June 30, 2025. Amortization of the water rights is calculated over a 50 year period. At June 30, 2025, Revenue Bond debt service coverage was 2.0 times, meeting the targeted goal.  Certain deficit fund balances were reported in the Workforce Investment Act ($644,870), State, Federal and Other Grants Fund ($3,897,754), State and Federal (ARRA) ($125,764), Employee Risk Retention Fund ($3,812,026), and Solid Waste Management Fund ($38,044,329) respectively, as of the end of the fiscal year. The project fund deficits are from current expenses that were incurred at the end of the fiscal year but reimbursement had not yet been received from the federal and state agencies and other City funding. These project fund deficits will be eliminated with the future reimbursements of federal and state grants and the risk retention fund with increased employer/employee health premium contributions and changes in health plan design. The Solid Waste Management Fund deficit is due to required accruals to record liabilities related to landfill closure and post-closure and pollution remediation. The deficit will be eliminated as these activities are completed over a 30-year period from date of closure of landfill cells.  The General Fund budget for the fiscal year ended June 30, 2025 was adopted with a $.6275 per $100 assessed valuation property tax rate. The total FY 2025 tax rate remained consistent compared to the prior year and includes $.0100 for housing initiatives and $.0350 for public transit. Two special historic district taxes and a downtown business district tax for certain additional improvements are also taxed as “special district” rates.  As of June 30, 2025, the City had collected approximately $415.9 million or 100.5% of its amended budgeted General Fund revenues (excluding appropriated fund balance) and had incurred $429.7 million or 98.5% of its amended budgeted expenditures. The net effect on General Fund fund balance was a decrease of approximately $13.0 million this year.

2b