COG Comprehensive Annual Financial Report

 Of the City’s various business-type service areas, water and sewer operations, the stormwater management program, and the parking enterprise fund generated sufficient revenues in their programs to cover expenses. No significant new revenue sources were noted in FY 2018.  As of the close of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $160.4 million, a net increase of approximately $16.2 million in comparison with the prior year fund balance. Approximately 56.7% of this total amount or $91 million is restricted or non-spendable and 43.3% or $69.4 million is Committed, Assigned or Unassigned, including $7.1 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 $68.7 million. Approximately 41.9% or $28.8 million of this balance is restricted for accounts receivable and encumbrances and $6.2 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 $26.3 million as of June 30, 2018. Amounts remaining that are either non-spendable, committed or assigned for other purposes totaled approximately $7.4 million.  Charges for services for the City’s largest enterprise activity, the Water Resources Fund, comprising water and sewer operations increased $4.5 million or 4% in FY 2018. Rate increases of 3.25% for customers inside and 5.5% for customers outside the city limits were in effect as of July 1, 2017. The cost of the City’s water supply purchased from three neighboring municipalities in the current year was approximately $2.8 million compared to $2.9 million last year, and is budgeted at $2.7 million in FY 2019 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 $901,683 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 $76.1 million, net of $13.9 million in amortization, as of June 30, 2018. 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 $2.5 million were paid to the PTRWA in Fiscal Year 2018 and are budgeted at $2.7 million in FY 2019. At June 30, 2018 Revenue Bond debt service coverage was 2.25 times, exceeding the targeted goal of 2.0 times coverage.  Certain deficit fund balances were reported in the Workforce Investment Act Fund ($35,018), Parks and Recreation Bond Fund – Series 2010 ($222,986), Street Improvement Bond Fund – Series 2010 ($1,519,376), and the Water Resource Bond Fund – Series 2018 ($82,027), respectively, as of the end of the fiscal year. These deficits will be funded with federal and state grant reimbursements in FY 2019 and future issuance of General Obligation Bonds and Revenue Bonds.  The General Fund budget for the fiscal year ended June 30, 2018 was adopted with a $.5856 per $100 assessed valuation property tax rate. The total FY 2018 general levy tax rate remained the same as the prior year at $.6325 and includes $.0069 for housing initiatives, $.0050 for economic development purposes and $.0350 for public transit. Two special historic district taxes and a

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