CAFR 2017

Cash Management The City's investment policy is to minimize credit and market risks while maintaining a competitive yield on its portfolio. Accordingly, deposits were either insured by federal depository insurance or collateralized. All collateral on deposits was held either by the City or its agent. All investments held by the City during the year and at June 30, 2017 are classified in various levels of fair value hierarchy as defined by the Governmental Accounting Standards Board. The City's cash management program provided the City with interest earnings totaling $3,567,988 for the fiscal year ended June 30, 2017 as compared to $3,481,487 in the prior year. Cash balances are analyzed daily to forecast the amount of funds required and amounts available for investment. The average amount of funds invested per month totaled $340,794,986 during the year. The City's average yield on investments for the year was 1.05%, down from 1.06% in the prior year. Interest earnings were the equivalent of nearly 1.40 cents on the tax rate for FY 2016-17 compared to 1.38 cents last year. B. Proprietary Funds Proprietary Funds provide the same type of information found in the government-wide financial statements but in more detail. Other factors concerning the finances of the proprietary funds have already been addressed in the discussion of the City of Greensboro’s business-type activities. General Fund Budgetary Highlights The General Fund budget for FY 2016-17 was adopted at $279,235,247 (excluding carry-forward encumbrances) and represents an increase of approximately 4.2% compared to the adopted FY 2015- 16 budget. Encumbrances of $3,674,807 were carried forward from FY 2016 commitments. Significant variances from the original and final amended budget follow:  The General Fund budget increased by $6,784,202 from original to final amended in FY 2017 primarily for transferring funds accumulated for Law Enforcement pension benefits to a newly established Pension Trust Fund. As of June 30, 2017, the City had collected $267.9 million or 99.5% of its budgeted General Fund revenues and had incurred $269.1 million or 94.1% of its budgeted expenditures. Significant differences between actual results and the final amended budget are highlighted below:  Overall General Fund revenues were lower compared to the final amended budget by approximately $1.3 million primarily in the areas of Utility taxes ($2.4 million) and property taxes ($956 thousand). Revenue generated from sales taxes was higher than the final amended budget by approximately $1.8 million.  Actual expenditures compared to final budget were less by $16.9 million or approximately 5.9%, noting approximately $1.3 million in savings in building maintenance costs in Engineering and Building Maintenance, $1.2 million less for Field Operations, approximately $1.7 million net overall savings in public safety operations following the transfer of Public Safety IT operations to the Guilford Metro Communications Fund, and $2 million in savings within the Culture and Recreation department. A budgeted contribution of $6.4 million from the General Fund establishing the LEOSSA Pension Benefit Trust was not necessary as the beginning net position was restated.

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