COG Comprehensive Annual Financial Report

Method of Evaluating Hedge Effectiveness The City evaluated its derivative instrument by using the synthetic instrument quantitative method and deemed the instrument to be an effective hedge as of June 30, 2018. B. Long-Term Notes Receivable The City entered into an agreement with Duke Power Company, effective July 1, 1991, which authorized the discontinuance of transit services provided by Duke Transit in Greensboro, pursuant to a franchise agreement scheduled to expire on July 1, 2028. In exchange, the City is to receive $55,500,000 in 37 equal annual installments of $1,500,000 from Duke Power Company with the first installment on July 1, 1991 and the final installment on July 1, 2027, to assist in financing operations of the GTA. The annual payment is secured by a First and Refunding Mortgage Bond issued by Duke Power Company to the City. The present value of the note receivable as of June 30, 2018 is $9,647,709. Interest income of $4,488,821 will be recognized by the effective yield method over the remaining 9-year term of the note, based on an imputed interest rate of 8.95%. Terms of certain of the notes receivable of the Redevelopment Commission are such that principal and interest may be forgiven upon meeting certain conditions. In addition, corresponding revenue was not recognized at the government-wide financial statement level because the loans were not considered substantially collectible. C. Capital Assets Capital asset activity of the year ended June 30, 2018 was as follows:

Beginning Balance

Ending Balance

Increases

Decreases

Governmental Activities: Capital Assets, Non-depreciable: Land Construction in Progress

$ 93,667,366 $ 18,712,261 112,379,627

5,955,893 9,438,791 15,394,684

$ (201,216) $ (14,731,213) (14,932,429)

99,422,043 13,419,839 112,841,882

Total Capital Assets Non-Depreciable

Capital Assets, Depreciable: Buildings Improvements Other Than Buildings Furniture, Fixtures, Machinery and Equipment Infrastructure Intangible Assets - Software & Licenses Total Capital Assets, Depreciable

180,051,740 41,115,986 178,866,352 317,049,534 4,240,843 721,324,455 (80,987,439) (20,028,739) (120,091,312) (148,511,575) (4,168,249) (373,787,314)

8,207,642 4,655,240 13,435,507 17,214,625

(119,530) (2,250) (20,362,795)

188,139,852 45,768,976 171,939,064 334,264,159 4,240,843 744,352,894 (86,918,914) (21,869,809) (114,688,616) (155,243,783) (4,200,308) (382,921,430)

43,513,014

(20,484,575)

Less Accumulated Depreciation For: Buildings Improvements Other Than Buildings

(6,011,230) (1,843,320) (14,114,387) (6,732,208)

79,755 2,250

Furniture, Fixtures, Machinery and Equipment

19,517,083

Infrastructure

Intangible Assets - Software & Licenses

(32,059)

Total Accumulated Depreciation

(28,733,204)

19,599,088

Total Capital Assets, Depreciable, Net

347,537,141

14,779,810

(885,487)

361,431,464

Capital Assets, Net Governmental Activities

$ 459,916,768 $

30,174,494 $ (15,817,916) $ 474,273,346

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