COG Comprehensive Annual Financial Report

Recreation Facilities, Housing, Community and Economic Development, and Street Improvements. More detailed information about the City’s long-term liabilities is presented in Note IV.G. Economic Factors and Next Year’s Budgets and Rates The Greensboro area economy continued to gain strength in several areas including building permit and housing activity. Unemployment decreased from 5% in June 2017 to a seasonally adjusted rate of 4.6%, slightly above the national average. Hotel/Motel occupancy taxes continued to increase for the eighth year in a row. Sales taxes grew more than 4.7% compared to FY 2017, partially due to a change in the distribution percentage received from Guilford County which is based on the ad valorem tax rates of municipalities within the County in a given year. The City’s adopted FY 2019 budget for all funds increased $8.8 million or 1.7% to approximately $543.5 million, primarily in the infrastructure area for utility improvements, increased debt service payments, and Coliseum improvements. The assessed base value of all real and personal property is projected to grow approximately 1.5% in FY 2019. The FY 2019 budget was adopted with a property tax rate of $.6325 cents per $100 of assessed value (the same rate for the past nine years) and includes allocations of $.035, $.0069 and $.5856 to fund transit, housing and general government initiatives, respectively, along with another $.0050 to fund economic development projects, amounting to about $1.4 million each year. Funds for FY 2019 are fully allocated for a variety of items, which should spur additional economic growth. City Council has reaffirmed its intention to continue to maintain the unassigned fund balance of the General Fund at 9% of the 2019 fiscal year budget, or approximately $26.3 million. Budget Highlights for the Fiscal Year Ending June 30, 2019 Governmental Activities: The General Fund budget for FY 2019 was adopted at approximately $291.8 million (up 1.9%) with approximately $575.6 thousand in increased appropriations over the amended FY 2018 budget. Overall the General Fund budget shows a net increase of about 2 positions, a new analyst position in the Finance Department and the Economic Development and Business Support Manager was moved into the general fund from the Economic Development Fund. The budget also estimates increased projected revenues of more than 5% from local option sales tax. Major budgeted initiatives continue to include economic development and job creation. One half cent on the tax rate in the Economic Development Fund will generate approximately $1.4 million, set aside to serve as a funding source to support economic development programs such as the Guilford County Economic Development Alliance and programs identified through the Community Partners Board process. Appropriated General Fund fund balance is $6.2 million, or 2.1% of the total budget, but has historically been mostly unused. No significant services or programs were eliminated and few new service enhancements were funded. The budget included a 3% average merit increase for employees. The second year budget for FY 2020 is balanced with a 63.25 cent tax rate, unchanged from the adopted FY 2019 rate.

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