FINAL ADOPTED BUDGET FY2021-22

TOTAL BUDGET - EXPENDITURES The FY 21-22 net budget (all funds) of $619,744,308 is $15.7 million, or 2.6%, higher than the revised FY 20-21 budget. The Infrastructure service area is the largest portion of the budget, at $329.4 million, or 53%, of the total budget. The service area budget is $5 million, or 1.5%, greater than the revised current year budget. The Water Resources Fund increases from $139.2 million to $140.8 million, a difference of $1.6 million. Balancing current financing, or “pay-as-you-go” capital project financing with debt financing, Water Resources will transfer $28.6 million to various capital reserve and capital improvement funds for significant system maintenance projects. The Field Operations Department budget includes funding necessary to continue increased costs associated with the City's residential and commercial recycling programs. Net costs for these programs increased by over $1 million in FY 19-20 due to significant changes in the secondary markets for recycled materials. These costs continue to increase in FY 21-22 by approximately $750,000, as part of the agreement entered into during FY 18-19. FY 21-22 will be the first full year of operation for the Tanger Center for the Performing Arts, after more than a year of delays and cancellations due to COVID-19. The Parking Fund will continue accumulating funds for debt service associated with new downtown parking decks under construction during FY 20-21 and FY 21-22. The General Fund will transfer approximately $700,000 to help cover debt service in FY 21-22. Downtown parking deck rates will be assessed for necessary increases to be implemented January 1, 2022 to partially support these capital improvement projects as part of the Parking Fund rate model. The Public Safety service area increases from $150.9 million to $160.3 million, or $9.5 million. This is the second largest service area, accounting for 26% of the total budget. Several compensation changes to support retention and recruitment of qualified public safety employees are included, totaling approximately $1.7 million. The service area includes the addition of 15 police positions, seven (7) added during FY 20-21 and eight (8) included as service enhancements in the adopted budget and funding for dedicated Shift Safety Officers in the Fire department. The budget also includes continued funding for community outreach efforts through the Cure Violence program. Funds previously budgeted for mental health response have been transferred to the General Government service area to support the Behavioral Health Response Team, established in FY 20-21. Public Safety maintenance efforts continue through the rebuilding of Fire Stations 7, Gatewood Ave., and 56, Franklin Blvd, expected to be completed in the fall of 2021. The budget includes additional related facility operations costs of approximately $75,000. The Community Services service area increases from $41.7 million to $42.6 million, or $1.8 million. Five (5) positions are added to Parks and Recreation to reestablish Assistant Community Center Supervisors and additional greenway and trails maintenance Crew Members. Capital projects including the zoo expansion at the Greensboro Science Center, Barber Park, and the Downtown Greenway all continue development, with completion expected in FY 21-22. The Debt Service area decreases from $38.7 million to $37.3 million. The Debt Service Fund expenditures include principal and interest payments for all outstanding general obligation bonds, including $126 million in bonds approved by voters in 2016. The remaining $36 million in authorized 2016 bonds are planned to be borrowed in the spring of 2022. The FY 22-23 projected budget is $13.9 million, or 2.2%, higher than the FY 21-22 adopted budget. Budgeted personnel costs are 4.8% higher than the current year budget, including a net increase of 45.63 full-time equivalent (FTE) positions within the total operating budget. New positions for the Police Department account for 15 of these FTEs. The remaining positions result from service enhancements for the other service areas. Other position additions are detailed in the appropriate service area sections of the document. The budget includes a 3% merit increase for all eligible employees. Compensation changes for Police, Fire, and Guilford Metro 911 including increased starting pay, retention and recruitment, and adjustments to address compression, total approximately $1.7 million. The City is required to increase its contribution to the North Carolina Local Government Retirement System on behalf of its employees, resulting in an approximate $2.7 million increase in retirement contribution costs for the total budget. Another increase for retirement contributions is projected for FY 22- 23, totaling over $3 million. Maintenance and Operations (M&O) costs, which include transfers from operating funds to capital projects, or capital reserve funds and debt service expenditures, increase from $324.2 million to $327.5 million, or 1%. Reinstatement of reductions necessary due to the impacts of the pandemic, service enhancements, and principal and interest payments for various outstanding debt are a primary driver of this budget increase. For the Debt Service Fund, budgeted principal and interest expenses will decrease from $38.8 million to $37.3 million.

Adopted 2021-22 Budget

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