FINAL ADOPTED BUDGET 2020-2021

CITY MANAGER S BUDGET MESSAGE

Mayor and City Council, City of Greensboro

May 19, 2020

Council Members: Budget development always brings the challenges of balancing needs and priorities with the financial support necessary to provide the quality services expected by our community. This year s budget presents a uniquely challenging process as our community faces a health crisis caused by the pandemic effects of COVID 19 and the resulting negative impact on the economy. The pandemic has changed not only how we are working and living, but has also created a great deal of uncertainty about our City revenues and budget. Those effects and uncertainty have caused us to refocus efforts on the core services the City provides, while acknowledging the limit on revenues, due to business and venue closings that have impacted each corner of our community. While there are many unknowns about what we face over the next several months as we try our best to return to some sense of normalcy, there are several principles that will guide the FY 20 21 budget. We must and we will provide the expected and necessary core services to our community, regardless of the general economic climate, especially in such turbulent times. While economic downturns may reduce demand in some areas of the economy, it drives demand for municipal services upward. We must make every effort to responsibly and prudently preserve and support our employees as they continue to provide these essential services. Preservation of our workforce ultimately leads to preservation and protection for the community at large. Even as we grapple with the present we must keep an eye on the future, and we must do what is necessary to prepare. Efforts to reduce poverty, provide affordable housing, and enhance economic opportunities must continue. Investments in infrastructure will result in a more resilient economy for the future. As a municipal government team, we re committed to work together to create an environment for sustained economic growth and vitality, high quality of life, and exceptional public safety for our citizens, businesses, and visitors. We accomplish this through our commitment to be a purpose driven, people centered, and data informed organization. Through innovation and determination we will maintain high quality services and a focus on excellent customer service and organizational improvement. For FY 20 21, this budget supports these top service priorities, while responding to the many operating needs our organization currently faces. Given the projected reduction in overall revenues, there are several temporary programmatic reductions and delays to help reduce overall expenditures. The recommended budget continues to fund debt service expenditures related to the successful 2016 bond referendum. By the end of FY 20 21, approximately $90 million of the $126 million approved by voters will be spent or allocated. Debt service contributions by the General Fund are significantly reduced for FY 20 21 due to the expected revenue impacts to the City. The recommended budget continues progress toward Council s desire to protect and provide for our employees. Despite the financial challenges, this budget does not include any position eliminations, as the most valuable resource we have is our talented and committed workforce. Also, effective with this budget, the hourly minimum wage for all general roster and seasonal employees will increase to $15, as the last phase of this Council priority is implemented. Our budget must be more than just balanced. It must provide the requisite revenue sources that can sustain City operations regardless of changing and unpredictable economic challenges. It must demonstrate financial prudence to our creditors to ensure the City s AAA bond rating. The recommended budget includes sustainable financial planning by continuing Council s priority of limiting reliance on the fund balance. The Recommended FY 2020 21 Budget is developed in accordance with the North Carolina Local Government Budget and Fiscal Control Act and fulfills my obligation to present a balanced fiscal plan to Council for your consideration. The budget is balanced with the same tax rate as the current year, 66.25 cents.

Adopted 2020-21 Budget

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