2025 Annual Comprehensive Report

respectively, as of June 30, 2025. Deferred Inflows of Revenues related to these leases was $10,764,495 and $9,719,373 for Governmental and Business-Type activities in the Statement of Net Position, respectively, as of June 30, 2025. C. Notes Receivable The City entered into an agreement with Duke Power Company, effective July 1, 1991, which authorized the discontinuance of transit services provided by Duke Transit in Greensboro, pursuant to a franchise agreement scheduled to expire on July 1, 2028. In exchange, the City is to receive $55,500,000 in 37 equal annual installments of $1,500,000 from Duke Power Company with the first installment on July 1, 1991 and the final installment on July 1, 2027, to assist in financing operations of the Greensboro Transit Advisory Commission. The annual payment is secured by a First and Refunding Mortgage Bond issued by Duke Power Company to the City. The present value of the note receivable as of June 30, 2025 is $3,800,328. Interest income of $359,543 will be recognized by the effective yield method over the remaining 2-year term of the note, based on an imputed interest rate of 8.95%. Terms of certain of the notes receivable of the Redevelopment Commission are such that principal and interest may be forgiven upon meeting certain conditions. In addition, corresponding revenue was not recognized at the government wide financial statement level because the loans were not considered substantially collectible.

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