CAFR 2016

 Of the City’s various business-type service areas, water and sewer operations and the stormwater management program generated sufficient revenues in their programs to cover expenses. No significant new revenue sources were noted in FY 2016.  As of the close of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $135.1 million, a net increase of approximately $11.1 million in comparison with the prior year, noting $6.4 million was added due to a restatement of prior year fund balance for changes in accounting treatment for the Police Separation Allowance due to implementation of GASB Statement No. 73. Approximately 54.4% of this total amount or $73.5 million is restricted or non-spendable and 45.6% or $61.6 million is Committed, Assigned or Unassigned, including $8.1 million appropriated for next year’s budget.  At the end of the current fiscal year, the total fund balance for the General Fund specifically was $77.2 million. Approximately 36.3% or $28 million of this balance is restricted for accounts receivable and encumbrances and $6.7 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 $24.8 million as of June 30, 2016. Amounts remaining that are either non-spendable, committed or assigned for other purposes totaled approximately $17.7 million.  Charges for services for the City’s largest enterprise activity, the Water Resources Fund, comprising water and sewer operations increased $6.8 million or 6.9% in FY 2016. Rate increases of 5.5% for customers inside the city limits and 8.0% for those outside were in effect as of July 1, 2015. The cost of the City’s water supply purchased from three neighboring municipalities in the current year was approximately $2.7 million compared to $2.3 million last year, and is budgeted at $3 million in FY 2017 for purchases from Reidsville, Winston-Salem, and Burlington. 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. Current year contributions of $882,023 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 initially contributed $33,544,093 in FY 2008 to support PTRWA’s Water Treatment Plant project. This project is being funded by a group of local government units and will supplement Greensboro’s water supply needs for the long term. The City’s total water rights in the Randleman Dam project, recorded as an Intangible Asset, are approximately $77.9 million, net of $10.3 million in amortization, as of June 30, 2016. Amortization of the water rights is calculated over a 50 year period. 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. Water purchases totaling $2.4 million were paid to the PTRWA in Fiscal Year 2016 and are budgeted at $2.3 million in FY 2017. Revenue Bond debt service coverage was 2.41 times, exceeding the targeted goal of 2.0 times coverage.  Certain deficit fund balances were reported in the State Highway Allocation Fund ($51,933), Workforce Investment Act ($5,581), State and Federal Grants (ARRA) Fund ($30,303), Street and Sidewalk Capital Project Fund ($525,517), Parks and Recreation Bond Fund – 2008 (56,082), Street Improvements Bond Fund ($4,163,815), and the Parks and Recreation Bond Fund - 2010 ($36,792), respectively, as of the end of the fiscal year. These deficits will be funded with federal and state grant reimbursements in FY 2017 and future issuance of General Obligation Bonds.  The General Fund budget for the fiscal year ended June 30, 2016 was adopted with a $.5872 per $100 assessed valuation property tax rate, unchanged from June 30, 2015. Overall, the total FY 2016 general levy tax rate remained the same as the prior year at $.6325 and includes $.0069 for

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