COG Comprehensive Annual Financial Report

Cash Management The City's investment policy is to minimize credit and market risks while maintaining a competitive yield on its portfolio. Accordingly, deposits were either insured by federal depository insurance or collateralized. All collateral on deposits was held either by the City or its agent. All investments held by the City during the year and at June 30, 2018 are classified in various levels of fair value hierarchy as defined by the Governmental Accounting Standards Board. The City's cash management program provided the City with interest earnings totaling $5,439,939 for the fiscal year ended June 30, 2018 as compared to $3,567,988 in the prior year. Cash balances are analyzed daily to forecast the amount of funds required and amounts available for investment. The average amount of funds invested per month totaled $337,780,088 during the year. The City's average yield on investments for the year was 1.61%, up from 1.05% in the prior year. Interest earnings were the equivalent of nearly 1.99 cents on the tax rate for FY 2018 compared to 1.40 cents last year. B. Proprietary Funds Proprietary Funds provide the same type of information found in the government-wide financial statements but in more detail. Other factors concerning the finances of the proprietary funds have already been addressed in the discussion of the City of Greensboro’s business-type activities. General Fund Budgetary Highlights The General Fund budget for FY 2018 was adopted at $286,203,862 (excluding carry-forward encumbrances) and represents an increase of approximately 3.9% compared to the adopted FY 2017 budget. Encumbrances of $4,281,990 were carried forward from FY 2017 commitments. There were no significant variances from the original and final amended budgets for FY 2018. As of June 30, 2018, the City had collected $280.7 million or 100.4% of its budgeted General Fund revenues and had incurred $281.6 million or 96.7% of its budgeted expenditures. Significant differences between actual results and the final amended budget are highlighted below:  Overall General Fund revenues were higher compared to the final amended budget by approximately $1 million primarily due to increased interdepartmental charges and sale of assets along with other miscellaneous revenues. Revenue generated from electric utility sales taxes were lower than the final amended budget by approximately $1 million.  Actual expenditures compared to final budget were less by $9.6 million or approximately 3.3%, noting approximately $1.3 million in savings in general government costs, $1.4 million less for Engineering and Building Maintenance, approximately $3 million savings in police operations, $1.4 million in savings for Field Operations, and $1.4 million in savings within the Culture and Recreation department.  FY 2018 included a 3% average merit increase for employees, along with further implementation of compensation study recommendations.

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