Comprehensive Annual Financial Report FY 2016

Table B-1 Change in Net Position– Business-Type Activities (in thousands of dollars )

Change inNet Position Before Depreciation/Amortization

Change inNet Position

After Depreciation/ Amortization*

EnterpriseActivities Water Resources Stormwater Management War Memorial Coliseum SolidWasteManagement

2016

2015

2016

2015

$47,716

$49,312

$24,258

$26,486

2,404 3,614 1,630

4,610 3,920 1,311

625 671

2,790 1,092

1,078 (615)

882

(28)

633

54

Parking Facilities

Total

$55,336

$59,786

$26,017

$31,304

*Excludes the effect of Internal Service Fund chargebacks. Major activities and/or changes in the Enterprise Fund operations are presented in the following comments. 2) Water Resources Fund Charges for current services totaled $104,611,382 compared to $97,833,908 for the preceding year, an increase of 6.9%. Operating expenses (excluding depreciation) increased by 15% and totaled $59,835,012 as compared to $51,924,444 for the preceding year. On July 1, 2015, water and sewer rates for average residential customers increased by 5.5% for customers inside the City and 8% for those residing outside the City limits, largely causing the improved revenue results. On July 1, 2016, water and sewer rates were increased again, up 4.5% for customers inside the City and those residing outside the City limits, expected to generate approximately $4.6 million in additional revenues in FY 2017, in keeping with debt service coverage covenant targets of 2.0x coverage. Actual debt service coverage has exceeded 2.0x coverage in each of the past ten years, with a current coverage of 2.4x as of June 30, 2016. The City continues to make a significant investment in water resource needs to replace and expand existing infrastructure and to meet new environmental regulations. The Water and Sewer utility comprises approximately one-third of the City’s overall capital improvement plan, with estimated $580 million in planned capital expenditures over the next ten year period. Ongoing system improvements are expected and are included in our long-range planning, however, management projects that within the next five years, certain of the major improvements will be completed ($95 million nitrogen removal project, $63 million for the Osborne Wastewater Treatment Plant capacity upgrade and $97.6 million for a system wide Sanitary Sewer and Water Line Rehabilitation) and pay-go funding, which is expected to be more than 50%, should cover a large part of anticipated future costs. The City has also established a capital reserve account to provide for future needs of the water and sewer system, with an account balance of approximately $7.9 million available in the restricted assets total of the Water Resources Fund as of June 30, 2016. The Randleman Dam, Lake and Water Plant Project (managed by the Piedmont Triad Regional Water Authority, “PTRWA”) is designed to meet long-term future water needs. PTRWA constructed a 12 MGD Water Treatment Plant (expandable to 48 MGD) which began pumping treated water to Greensboro in early October 2010. Approximately $2.4 million was paid to PTRWA in FY2016 for current water purchases from this supply. Greensboro has acquired certain water rights in this project, along with five other governmental units. Due to

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