CAFR 2017

MANAGEMENT’S DISCUSSION AND ANALYSIS As management of the City of Greensboro, we offer readers of our financial statements this narrative overview and analysis of the financial activities of the City of Greensboro for the fiscal year ended June 30, 2017. The Management Discussion and Analysis (MD&A) section is designed to assist the reader in focusing on significant financial issues, provide an overview of the City’s financial activity, identify changes in the City’s financial condition, identify material deviations from the financial budget, and identify individual fund issues or concerns. Since the MD&A is structured to focus on the current year’s activities, resulting changes and currently known facts, we encourage readers to consider the information presented here in conjunction with the transmittal letter, which can be found beginning on page I of this report, and the City’s financial statements, which follow this section. FINANCIAL HIGHLIGHTS  The assets and deferred outflows of the City of Greensboro exceeded its liabilities and deferred inflows at the close of the fiscal year by $1.064 billion (net position) . The City’s net position increased by $42.5 million (4.2%) compared to FY 2016, restated. The prior year net position includes a prior period restatement reduction of $31.4 million due to implementation of Governmental Accounting Standards Board (GASB) Statement No. 68, Accounting and Financial Reporting for Pensions , adding the Law Enforcement Officer Special Separation Allowance (LEOSSA) Pension Benefit Trust Fund. The governmental net position increased by $6.9 million (2.1%) and the business-type net position increased $35.6 million (5.1%) primarily due to increases in certain general revenues above plan, water rate increases effective July 1, 2016 and increased revenue from Coliseum events along with cost containments.  The governmental activities program revenue was higher than last year’s results by approximately $20 million at $78.6 million. Approximately $15 million of the difference can be attributed to the donation of LeBauer and Center City Parks, as well as an increase in the motor vehicle license fee from $10 to $30. General governmental revenues increased by $3.7 million (1.6%) and include increased property tax receipts, and higher local option sales tax receipts. The property tax rate remained the same as last year at $.6235 per $100 of assessed valuation. Base property values are projected to grow at 5.25% in FY 2018 due to a county-wide property revaluation conducted in January 2017. Sales tax receipts increased 5.9% or approximately $2.8 million due to improved economic conditions in the region. Investment earnings were the equivalent of 1.40 cents on the property tax rate compared to 1.36 cents last year. For budgeting purposes, management projects interest earnings to modestly increase for the near-term planning cycle for conservatism. In the City’s business-type activities, total revenues increased by about $7.7 million primarily due to higher event revenue in the War Memorial Coliseum Complex operation.  During the year, the City’s governmental expenses at the entity-wide level were $299 million, an increase of $8.4 million or 2.9% more than last year, primarily due to increased public safety, transportation and culture and recreation expenditures. In all, expenses increased $17.5 million or 4% citywide with approximately $9.1 million of the increase affecting business-type fund activity, or 6.4%. Increased expenditures in the proprietary funds were primarily due to increased activity in the War Memorial Coliseum Fund.

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