FINAL ADOPTED BUDGET FY2021-22

million. Utility sales tax revenue is budgeted at approximately $16 million, about $1.8 million less than the current year budget. Piped natural gas sales tax revenue is also budgeted to decrease slightly, from $1.2 to just over $1 million. Both revenues have shown negative impacts from facility closures and milder weather in the current year. Other state shared revenues are expected to remain largely flat overall. Telecommunications, video, and satellite sales tax revenue will fall from $4.6 million to $4.4 million. This is a continuation of recent trends in decreased revenues as consumers limit satellite, phone, and other at-home services. Powell Bill funds, the City’s portion of the state gasoline tax, are budgeted at approximately $7 million for FY 21-22, a decrease of $300,000 as a result of a state decrease in distribution in the current year. The budget includes an increase in federal funding for transit services of $1.5 million from dedicated CARES relief funds in FY 21-22. Shared revenues from beer, wine, and the City’s share of the local ABC distribution of sales taxes are projected to increase by over $1.2 million. Much like overall sales tax projections, this category of shared revenues has seen continued growth during the current year despite the impacts of the pandemic, and growth is projected to continue in FY 21-22. 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, solid waste transfer station tipping fees, parking deck and on-street parking fees, transit fares, 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 21-22 are over $232.7 million, compared to $223.7 million for FY 20-21. User fee revenue generated in the Water Resources Fund is a significant portion of this revenue category. Budgeted Water Resources user fee revenue will increase from $120 million to $127.8 million, an increase of 6.5%. Due to impacts from COVID-19 on the community, a rate increase was delayed in FY 20-21. As a result, a slightly higher rate increase of 4.5% will be necessary to ensure debt coverage projections for the water and sewer system. 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 21-22 at $124.3 million, compared to $127.9 in the current year. A one-time revenue of proceeds from the sale of the Maple Street building of $1.7 million in the current year is the primary reason for the projected reduction. 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 21-22 are $52.6 million, compared to $47.4 million in FY 20-21. The General Fund contribution to the Debt Service Fund increases from $24.8 million in FY 20-21 to $27.7 million in FY 21-22. The transfer to the debt service fund is budgeted to increase in FY 22-23 to $32.6 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 final $36 million remaining in 2016 bond authorizations will be borrowed in early 2022. A new transfer is budgeted from the American Rescue Plan Fund for $4.8 million to support the General Fund for eligible expenses, and to replace lost revenues due to the impacts of the pandemic over the last year. Additional funds totaling $11.2 million are also projected to be necessary in FY 22-23 to help balance the General Fund budget. 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 decrease $7.4 million, from $45.8 million in the amended FY 20-21 budget to $38.4 million for FY 21-22. The Debt Service Fund and the Water Resources Fund include decreased fund balance appropriations, totaling $6 million compared to the current year.

Adopted 2021-22 Budget

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