CAFR 2017

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, 2017. 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, 2017 is $10,231,950. Interest income of $5,352,291 will be recognized by the effective yield method over the remaining 10-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, 2017 was as follows:

Beginning

Ending Balance

Balance

Increases

Decreases

Governmental Activities: Capital Assets, Non-depreciable: Land

$

87,105,546 17,032,139 104,137,685

$

6,564,170 10,087,578 16,651,748

$

(2,350)

$

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

Construction in Progress

(8,407,456) (8,409,806)

Total Capital Assets Non-Depreciable

Capital Assets, Depreciable: Buildings

177,827,103 32,035,241 161,263,263 294,477,175

2,259,806 9,099,245 27,515,109 22,572,359

(35,169) (18,500)

180,051,740 41,115,986 178,866,352 317,049,534

Improvements Other Than buildings

Furniture, Fixtures, Machinery and Equipment

(9,912,020)

Infrastructure

Intangible Assets - Software & Licenses

4,318,993

(78,150)

4,240,843

Total Capital Assets, Depreciable

669,921,775

61,446,519

(10,043,839)

721,324,455

Less Accumulated Depreciation For: Buildings Improvements Other Than Buildings

(76,605,784) (18,445,301) (115,907,142) (142,142,008)

(4,406,564) (1,601,938) (13,750,036) (6,369,567)

24,909 18,500

(80,987,439) (20,028,739) (120,091,312) (148,511,575)

Furniture, Fixtures, Machinery and Equipment

9,565,866

Infrastructure

Intangible Assets - Software & Licenses

(4,170,472)

(75,927)

78,150

(4,168,249)

Total Accumulated Depreciation

(357,270,707)

(26,204,032)

9,687,425

(373,787,314)

Total Capital Assets, Depreciable, Net

312,651,068

35,242,487

(356,414)

347,537,141

Capital Assets, Net Governmental Activities

$

416,788,753

$

51,894,235

$

(8,766,220)

$

459,916,768

38s