FINAL ADOPTED BUDGET 2020-2021

Authority. Intergovernmental revenues are budgeted at approximately $52 million, about $1.3 million more than the current year budgeted figure of $50.6 million. Utility sales tax revenue is budgeted at $17.8 million, about $400,000 greater than the current year budget. Piped natural gas sales tax revenue will increase slightly , from $1.19 million to $1.22 million. Other shared revenues are showing slight budgeted reductions for FY 20-21. Telecommunications sales tax revenue will fall from $2.67 million to $2.23 million. Direct-to-home satellite sales tax will drop from $961,000 to $920,000. Powell Bill funds, the City’s portion of the state gasoline tax, are budgeted at approximately $7.37 million for FY 20- 21, the same as actually received in the current year. User Fees, Charges and Licenses These revenues represent charges for City services that are provided by departments typically operating as enterprises in separate funds. Examples include water and sewer charges, transfer station tipping fees, parking deck and on-street parking fees, Transit farebox and monthly ridership pass fees, Coliseum parking and concessions, and the stormwater management fee. Charges for services provided by General Fund Departments, such as Parks and Recreation and Engineering and Inspections, are also included in this category. Budgeted revenues for FY 20-21 are over $223.7 million, compared to $214.5 million for FY 19-20. User fee revenue generated in the Water Resources Fund is a significant portion of this revenue category. Budgeted Water Resources user fee revenue will decrease from $123.1 million to $120 million, due to anticipated impacts of COVID-19 on user accounts. The budget does not include a water rate increase in FY 20-21, however a higher rate increase of 4.5% will be necessary due to this delay in FY 21-22 to ensure debt coverage projections. Other Revenues Revenues not otherwise defined are included in this category. These include interest income, internal service charges, proceeds of capitalized leases, donations , and sale of assets. Internal charges, or charges assessed by one department for services rendered for another, are captured in this category. This includes internal printing charges, garage and fleet maintenance charges and computer service and maintenance charges. Revenues for this category are budgeted for FY 20-21 at $125.9 million, compared to $124.8 in the current year. Proceeds from the sale of the Maple Street building of $1.7 million are budgeted in the General Fund. Interfund Transfers Interfund transfers are contributions made by one fund to support operations in another fund, such as contributions from the General Fund to the Solid Waste Management Fund to support refuse disposal, and contributions to the Debt Service Fund to support voter-approved bond project financing. Budgeted interfund transfers for FY 20-21 are $47.4 million, compared to $47.6 million in FY 19-20. The General Fund transfer to the Debt Service Fund will decrease from $26.6 million to $24.8 million. This decrease in support assists with the revenue impacts of COVID-19 as a one year delay. The transfer to the debt service fund is budgeted to increase in FY 21-22 to $27.4 million. This transfer continues to provide the necessary support to fund debt service principal and interest expenses associated with successful bond referenda in 2008, 2009, and 2016. The General Fund contribution to the Solid Waste Management Fund remains at $1.83 million. Transfers to the War Memorial Coliseum Complex Fund increases from $4.1 million to $5.9 million, including a $500,000 increase from the General Fund based on projected event impacts due to COVID-19 event cancellations. Additional increases are from the Hotel/Motel Occupancy Tax Fund. Fund Balance The City of Greensboro fund balance policy states that each year , the estimated savings realized from unexpended appropriations in the General Fund shall be evaluated , with respect to appropriation to the following year’s revenue budget , as Appropriated Fund Balance to assist in financing that year’s budget. Appropriated fund balance budgets across all funds increase from $34.5 million in FY 19-20 to $44.9 million for FY 20-21. Increases are primarily driven by a $5.6 million increase in the Debt Service Fund and $4.9 million increase in the Water Resources Fund of appropriated fund balances compared to the current year. For the General Fund, both in absolute terms and as a percentage of the General Fund budget, appropriated fund balance is significantly lower for FY 20-21 compared to recent years. Limiting the use of fund balance for the General Fund is a current City Council priority and necessary for fiscal sustainability. Appropriated fund balance for the General Fund is $4.26 million, or 1.38%, of the total General Fund budget. This lower level of fund balance reliance will continue to reestablish a sustainable annual funding plan for the General Fund.

Adopted 2020-21 Budget

20