2025 Annual Comprehensive Report

The City’s contributions toward employee costs are accounted for as expenditures when the funds are contributed to the Employee Risk Retention Fund. 2. General Risk Retention The City’s General Risk Retention (Fund) includes funds in the ELF to self-fund certain types of liability claims. Up until December 31, 1999, the ELF was structured to provide varying tiers of funding, with pre-determined contribution rates, limits of coverage, repayment schedules and certain levels of transfer of risk from the five local governments and school members originally represented by the ELF. Effective January 1, 2000, the ELF was reorganized and the resulting structure provides for no transfer of risk from any of the member units to the ELF. Fund balances are segregated by member and in the event of loss, those amounts are available for claims payment by the respective member. The new structure of the ELF is considered to be similar to a claims-servicing arrangement. The aggregate amount available in the ELF for the City to pay claims is $5,198,377 as of June 30, 2025. The City purchases property insurance with a $100,000 deductible for most losses. Property losses up to $100,000 per occurrence are paid by the Fund after application of a $10,000 deductible requirement. Property insurance coverage above the annual retention provides for up to 100% replacement cost, limited to $600,000,000 per occurrence. At June 30, 2025, the City held $1,350,582 in the Fund to pay property-related claims.

3. Reconciliation of Claims Liability

Employee

General

Risk

Risk

Total

Total

Retention

2024-25

2023-24

Retention

Balance - July 1

$ 13,775,984 $ 7,137,008 $ 20,912,992 $ 16,950,469

Add: Incurred Claims (including)

IBNR's and Changes in Estimates

62,205,272 (58,210,539)

1,802,448 (3,151,661)

64,007,720 (61,362,200)

58,795,244 (54,832,721)

Deduct: Claims Payments

Balance - June 30

$ 17,770,717 $ 5,787,795 $ 23,558,512 $ 20,912,992

Balance of Claims Liability is included with Accounts Payable.

B. Subsequent Events The City has evaluated subsequent events through December 1 5 , 2025 in connection with the preparation of these financial statements, which is the date the financial statements were available to be issued. On October 8, 2025, the City Council approved a merger between the Greensboro ABC system and the newly approved ABC system for the Town of Pleasant Garden. Pleasant Garden officials approved the merger in November 2025, with further action pending approval by the NC Alcoholic Beverage Control Commission. The Greensboro ABC Board will retain 50% of the profits and the remaining amount will be distributed to the Town.

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