CAFR 2016

Derivative Instrument Summary At June 30, 2016 the City had the following hedging derivative instrument outstanding:

Changes in Fair Value

Fair Value at 6/30/16

Notional Amount

Effective Maturity

Classification Amount

Date

Date

Classification Amount

Governmental Activities:

Cash Flow Hedges

Objective: Hedge of changes in cash flows on the 1998 Series GO Bonds specifically related to changes in municipal tax-exempt interest rates.

Pay-fixed interest rate swaps, receive

Deferred Outflow

$

38,736

$

5,700,000

10/8/2002 4/1/2020

Debt

$

(566,943)

variable rate

H. Annual Leave and Sick Leave The City’s policy permits employees to accumulate up to 30 days of earned but unused annual leave, which would be paid to employees upon separation from the City. Accumulated annual leave at June 30, 2016 amounted to $14,227,584 of which $12,078,438 relates to Governmental Activities and $2,149,146 relates to Business-Type Activities. Changes in accumulated annual leave are as follows:

Current Year

Balance 7/1/2015

Balance

Due Within

Fund Type

Increase

Decrease

6/30/2016

One Year

Governmental Activities Business-Type Activities

11,924,776 $

7,947,777 $

$

(7,794,115) (1,596,392) (9,390,507)

$

12,078,438 2,149,146 14,227,584

$

7,159,777 1,331,237 8,491,014

2,016,160

1,729,378

13,940,936 $

9,677,155 $

$

$

$

Greensboro ABC Board employees may accumulate up to 20 days earned leave. The balance of the accumulated leave liability is not considered to be material. Operations of the GHDP are performed by employees of the City. Accordingly, there is no recorded liability for employee leave amounts for GHDP at June 30, 2016. GTA leave liability is $47,364. City employees had accumulated sick leave benefits of $58,631,463 at June 30, 2016, based on compensation rates in effect on that date. Sick leave does not vest, but any unused sick leave accumulated at the time of retirement may be used in the determination of length of service for retirement benefit. Since the City has no obligation for the accumulated sick leave until it is actually taken, no accrual has been made for sick leave. The same policy is followed by the Greensboro ABC Board. V. Other Information A. Risk Management The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The City protects itself from potential loss through a combination of purchased commercial insurance for primary and/or excess liability coverage and self-funded risk retention. Self-funded risks are primarily for health, employee workers’ compensation, general, professional, law enforcement, vehicle and underground storage tank liabilities. The City purchases Flood Insurance coverage through the Blanket Property insurance policy with an annual aggregate flood limit of $100,000,000 with deductibles ranging from $100,000 to $500,000 per location depending on the size and location of the facility. One location is covered solely by the City’s self-funded insurance plan. The City has not had a flood loss in the past 30 plus years that amounted to more than $100,000.

38hh