2025 Annual Comprehensive Report

1) Enterprise Funds There are six separate and distinct operations accounted for in the Enterprise Funds: the Water Resources Utility Operations, Stormwater Management Services, Coliseum Complex, Solid Waste Management, Greensboro Transit Advisory Commission and Parking Facilities (Other Non-Major Fund). Depreciation is computed on all depreciable plant and equipment and is reflected as an operating expense. Depreciation expense also includes amortization of software and licenses and other intangible assets, such as water rights. The following schedule reflects the change in net position before and after depreciation/amortization for each of the enterprises compared to the preceding year. Table B-1 Change in Net Position– Business-Type Activities (In thousands of dollars )

*Excludes the effect of Internal Service Fund chargebacks. Major activities and/or changes in the Enterprise Fund operations are presented in the following comments. 2) Water Resources Fund Charges for current services totaled $163,379,795 compared to $150,920,389 for the preceding year, an increase of 8.3%. Operating expenses (excluding depreciation) decreased by 4.4% and totaled $96,141,301 as compared to $100,572,531 for the preceding year. On July 1, 2024, water and sewer rates for average residential customers increased 8.5% for customers both inside and outside the City limits, largely causing the improved revenue results. The increase is necessary to maintain debt service coverage covenant targets of 2.0x coverage. Actual debt service coverage has exceeded 2.0x coverage in each of the past ten years, with a current coverage of 2.20x as of June 30, 2025. In the prior year, a legal settlement relating to use of capacity use fees of approximately $8 million was reflected as an operating expense. Absent that, current year operating expenses increased by approximately 3.9%.

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