FINAL ADOPTED BUDGET FY2022-23

ADOPTED BUDGET 2022 2023 PROJECTED BUDGET 2023 2024

Adopted Budget 2022-23 Projected Budget 2023-24 Mayor Nancy Vaughan Mayor Pro Tem

Yvonne Johnson City Council Marikay Abuzuaiter Sharon Hightower Nancy Hoffmann

Hugh Holston Justin Outling Tammi Thurm Goldie Wells City Manager Taiwo Jaiyeoba Budget and Evaluation Jon Decker, Director Karen Lloyd Tracy Nash Leah Price Cover Art Fire Station #7 Cover Photo Credit: Jim Graziano Sara Hancock Tiffany Jones Karen Kixmiller

Fire Station #7, located at 1064 Gatewood Ave, replaced its 50-year-old station in Fall 2021 and represents a partnership between Greensboro and Guilford County. The newly constructed five-bay facility provides unified and cost-effective public safety, with new technology to improve response times. The station is named in honor of retired Fire Chief Ray K. Flowers, the first African-American Greensboro Fire Chief.

GOVERNMENT FINANCE OFFICERS ASSOCIATION Distinguished Budget Presentation Award

PRESENTED TO

North Carolina

For the Fiscal Year Beginning July 01, 2021

Executive Director

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

GREENSBORO NORTH CAROLINA

Honorable Mayor and Members of City Council:

I am pleased to provide you with a copy of the 2022-23 Annual Budget and 2023-24 Projected Budget. This document was prepared by the City's Budget and Evaluation Department and represents a comprehensive publication of the City's budget plans and policies for the upcoming fiscal year. The document also includes a second year planning budget that gives us the opportunity to continue planning for and implementing the strategies necessary to meet the future needs of our community. I presented the recommended FY 2022-23 budget to Council on May 23, 2022 and both hard copy and electronic versions were available for public review. The Council held several budget work sessions and a public hearing on the proposed budget before adoption. City Council adopted the 2022-23 annual net budget, totaling $688,260,220, on June 21 , 2022. The adopted FY 22-23 Budget is 10% higher than the revised FY 21-22 budget. The overall property tax rate of 63.25 cents is three cents less than the previous year. The adopted budget addresses multiple Council priorities and organizational financial needs. This budget continues to put the staff and support resources in place to continue building on our growth momentum. The budget includes compensation adjustments for all benefited employees and adds critical staffing in priority program areas. The budget includes additional programming and resources in our key priority areas of housing support, public safety, and economic development. Full funding for debt service related to the remaining 2016 bond referendum will support the issuance of the remaining $36 million for resident approved Parks and Recreation, Housing, Transportation and Community Development projects. Additionally, the budget supports the debt service for the proposed $135 million in bonds to further support affordable housing, public safety facilities, major parks and recreation projects, and transportation. The 2022-23 and 2023-24 budget columns in this document, as well as the narrative, reflect the budget as adopted by Council with changes made during the Council deliberations. The Manager's Message, however, is included as it was presented with the Recommended Budget. Council deliberations at budget work sessions and meetings led to the inclusion of several important changes from the budget recommendation. Public Safety compensation was identified as a priority and approximately $4.1 million is included in the budget to support retention and recruitment through increased salaries based on market data. All employees will receive salary increases with market adjustments to pay ranges. Proposed additional police patrol position have been removed to support these compensation enhancements. Proposed funding for maintenance at critical city facilities will now be recommended for funding through the funds made available by the American Rescue Plan. Proposed funding to support a new initiative for corridor improvements is recommended to be funded through proposed transportation bonds and other sources. Housing program and transit funding is provided additional support through dedicated property tax revenues. Housing efforts are provided additional support by moving positions from the Nussbaum Fund to the General Fund. Additional support is also included for community partners supporting economic

PO BOX 3136 • GREENSBORO NC 27402-3136·WWW.GREENSBORO-NC.GOV·336-373-CITY (2489) 640

development goals. The adopted budget also includes full funding for arts and culture grants included in the Cultural Arts Master Plan. On behalf of the employees of the City, I thank you for your continued leadership and support of our efforts to meet your priorities in the delivery of high quality services to the Greensboro community. Respectfully,

Taiwo Jaiyeoba City Manager

TABLE OF CONTENTS

Introduction Introduction...........................................................................................................................................................1 Budget Process ....................................................................................................................................................4 City Manager’s Budget Message..........................................................................................................................6 Budget Financial Policies ................................................................................................................................... 13 Budget Summary Total Budget - Expenditures ............................................................................................................................... 17 Total Budget - Revenues.................................................................................................................................... 23 Total Budget – Property Tax Rate ...................................................................................................................... 25 Total Budget – Position Changes ....................................................................................................................... 26 Fund Summary Budget Fund Structure ....................................................................................................................................... 29 Total Budget ....................................................................................................................................................... 30 General Fund ..................................................................................................................................................... 34 General Fund Expenditure Highlights................................................................................................................. 36 General Fund Revenue Highlights ..................................................................................................................... 37 Community Services Community Services Summary .......................................................................................................................... 40 Cemeteries Operating Fund ............................................................................................................................... 42 Hotel/Motel Occupancy Tax Fund ...................................................................................................................... 44 Human Rights……………………………………………………………………………………………………………...45 Libraries.............................................................................................................................................................. 47 Housing & Neighborhood Development ............................................................................................................. 50 Nussbaum Housing Partnership Revolving Fund ............................................................................................... 52 Parks and Recreation ......................................................................................................................................... 54 Non-Departmental Community Services ............................................................................................................ 57 General Government General Government Summary.......................................................................................................................... 59 Budget and Evaluation ....................................................................................................................................... 61 Communications and Marketing ......................................................................................................................... 63 Equipment Services Fund .................................................................................................................................. 65 Executive............................................................................................................................................................ 67 Financial and Administrative Services ................................................................................................................ 71 General Services…………………………………………………………………………………………………………..74 Graphic Services Fund ....................................................................................................................................... 76 Human Resources.............................................................................................................................................. 78 Information Technology ...................................................................................................................................... 80 Legal................................................................................................................................................................... 83 Legislative .......................................................................................................................................................... 85 Network Services/Telecommunications.............................................................................................................. 87 Risk Retention Funds ......................................................................................................................................... 89 Non-Departmental General Government............................................................................................................ 90

Infrastructure Infrastructure Summary ...................................................................................................................................... 92 Engineering & Inspections.................................................................................................................................. 94 Field Operations ................................................................................................................................................. 97 Greensboro Transit Agency.............................................................................................................................. 101 Parking Fund .................................................................................................................................................... 104 Planning ........................................................................................................................................................... 106 Solid Waste Management Fund ....................................................................................................................... 108 Special Tax Districts Fund................................................................................................................................ 110 State Highway (Powell Bill) Fund ..................................................................................................................... 112 Stormwater Management Fund ........................................................................................................................ 113 Transportation .................................................................................................................................................. 116 War Memorial Coliseum Complex .................................................................................................................... 119 Water Resources Fund..................................................................................................................................... 121 Non-Departmental Infrastructure ...................................................................................................................... 126 Public Safety Public Safety Summary .................................................................................................................................... 128 Emergency Telephone System Fund ............................................................................................................... 130 Fire Department................................................................................................................................................ 131 Guilford Metro Communications Fund .............................................................................................................. 134 Police................................................................................................................................................................ 136 Technical Services Fund .................................................................................................................................. 139 Non-Departmental Public Safety ...................................................................................................................... 141 Capital Improvements Program & Debt Service Capital Improvements Program........................................................................................................................ 143 Debt Service Area Summary ............................................................................................................................ 150 Capital Leasing Fund........................................................................................................................................ 151 Debt Service Fund............................................................................................................................................ 152 Debt Service Contribution................................................................................................................................. 153 Summary of Outstanding Debt Issues .............................................................................................................. 154 Supplemental Information City Profile ........................................................................................................................................................ 160 Glossary ........................................................................................................................................................... 162 Budget Ordinance............................................................................................................................................. 165 City Directory .................................................................................................................................................... 171

INTRODUCTION

Adopted 2022-23 Budget

1

Office of Arts

& Cultural Affairs*

Neighborhood Parks & Services Recreation

Rights Office of

Housing &

Human

Development Libraries & Museums

Assistant City Manager

Sustainability Office*

Workforce

Contract

Economic

City

Management

Attorney

Development &

Business Support*

Communication Ɛ & Marketing

City Greensboro City Council Manager

Equipment Services

Financial Human

Audit* General

Public Safety Services Support*

Services Resources

Technology

Information

City of Greensboro Organizational Chart

Assistant City Manager

Minority/Women Procurement Business Services Enterprise*

Deputy City Manager

Internal

Budget &

Evaluation

City Clerk Office of Equity & Inclusion* Coliseum Intergovernmental

*Division of the City Manager s Office

Assistant City

Fire

Police

Guilford

Metro 911

Manager

Engineering &

Resources Field

Inspections

Transportation

Operations

Assistant City Manager

Relations Manager

Transit

Water

Planning

Adopted 2022-23 Budget

2

INTRODUCTION

The City of Greensboro Budget contains the City Manager's budget message, a description of the budget process, a total budget summary section and fund summary section, a capital improvements and debt service fund section, supplemental information and funding information for the four Service Areas: Community Services, General Government, Infrastructure, and Public Safety. The City of Greensboro Budget is designed to highlight and emphasize service areas and programs, providing descriptions, objectives, and summary costs for major activities. The City Manager's budget message summarizes the major issues facing the City of Greensboro and the budget impact on the tax rate and existing service levels. (Note: The Manager’s Message refers to the budget as originally submitted by the City Manager for City Council’s consideration). The budget summary section contains budget appropriations and revenues in table and graphic form. Significant changes in funding levels and revenue sources, as well as changes in the property tax rate and full-time positions, are detailed in the summary section. The fund summary section explains various fund categories and lists expenditures for each fund from actual expenditures in FY 2020-21 through projections for FY 2023-24. Each Service Area contains associated organizational units (funds, departments, or divisions) and a description of major programs and activities under those units. Included in this description are a listing of key performance objectives and associated performance measures; a summary of appropriations by the three major expenditure categories (Personnel Costs, Maintenance & Operations and Capital Outlay) and a summary of major revenues from actuals in FY 2020-21 to projections for FY 2023-24. Also included is a summary of total positions since FY 2021-22 and budget highlights, including explanations of increases or decreases in appropriations. The Capital Improvements/Debt Service section explains the relationship between the annually adopted Capital Improvements Program and the Annual Budget, including the impacts of capital projects on the operating budget. This section also contains information on the Debt Service Fund and annual debt service requirements. The information in the document was prepared by the City of Greensboro Budget and Evaluation Department. For additional information, you may contact: Jon Decker Budget and Evaluation Director P. O. Box 3136, Greensboro, NC 27402-3136 (336) 373-2291 www.greensboro-nc.gov/budget/

Adopted 2022-23 Budget

3

BUDGET PROCESS

Budget Adoption The City of Greensboro adopts the annual budget by ordinance in accordance with North Carolina General Statutes, which require that estimated revenues and appropriated fund balances be equal to appropriations. The budget is developed on a cash basis, including only expenditures and revenues expected to be realized during the fiscal year. The budget is adopted, however, on a modified accrual basis with sufficient appropriations for encumbrances (outstanding purchase orders and contracts as of June 30) carried over into the new year. All operating funds reasonably expected to be received are included in the Budget Ordinance and are expended in accordance with the adopted ordinance. State statute also sets the fiscal year as beginning July 1 and ending June 30. Therefore, City Council must adopt a budget before July 1 of each year. Developed on a program basis, the budget depicts all services provided by the City and resources allocated for the provision of these services. Organizational strategic priorities are developed by City Council and City staff and are used as major guidelines in the development of funding recommendations. City Council reviews and updates strategic priorities, and establishes specific outcomes as part of their annual retreat. Staff provides regular updates throughout the year on progress toward strategic priorities. Budget Amendments City Council is permitted by state statute to amend the Budget Ordinance anytime during the fiscal year. These amendments must continue to adhere to the balanced budget statutory requirements and cannot change the property tax levy or in any manner alter a taxpayer's liability. The City of Greensboro Budget is a program-based budget, but is adopted by funds. Ordinances approved by City Council are required to increase or decrease appropriations in any fund. The Budget Director may approve budget adjustments reallocating less than $50,000 within a single fund. These adjustments are reported to City Council at a subsequent council meeting. City Council must formally approve adjustments reallocating $50,000 or more. Budget Maintenance In accordance with the General Statutes of the State of North Carolina, the City prepares and adopts its budget on the modified accrual accounting basis. The City of Greensboro Budget is developed by accounts which relate to the City's financial accounting system in accordance with generally accepted accounting principles (GAAP). Government resources are allocated to, and accounted for, in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The accounts of the City are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures or expenses, as appropriate. Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability is incurred. Budget expenditures are controlled through the City's accounting system and the purchase order system. Departments have flexibility in divisional expenditures within major categories, such as maintenance and operations expenditures. All encumbrances on the accounting system on June 30 automatically carry over into the next year's budget cycle. Budget Calendar The City of Greensboro budget process begins in January with the revised updates on current year revenues and expenditures and preliminary projections for the following year. City Council holds an annual strategic planning retreat in late January or early February, reviewing the financial condition and budget forecasts for the City, reviewing and updating strategic priorities and outcome goals, and developing budget priorities and management objectives for the upcoming budget process. Departments formally submit annual budget requests in February. In May, the Recommended Budget and Capital Improvements Program (CIP) are presented to City Council. Important steps in the development of the two-year budget are given on the following page.

Adopted 2022-23 Budget

4

%XGJHW 3URFHVV

8SGDWH 7ZR

-DQXDU\

&RXQFLO 3ODQQLQJ 5HWUHDW

5HYLVH 5HYHQXH ([SHQGLWXUH )RUHFDVWV

6WUDWHJLF 3ULRULW\ 'LVFXVVLRQ

%XGJHW .LFN 2II

)HEUXDU\

3URSRVHG 'HSDUWPHQWDO 2SHUDWLQJ %XGJHW

5HYLHZ &,3

0DUFK $SULO

5HYLHZ 2SHUDWLQJ %XGJHWV

5HYLHZ 2EMHFWLYHV 6HUYLFH /HYHO &KDQJHV

0D\

0DQDJHU 3UHVHQWV %XGJHW WR &RXQFLO

0D\ -XQH

&RXQFLO %XGJHW :RUNVKRSV

3XEOLF +HDULQJ

-XQH

&RXQFLO $GRSWV %XGJHW

)LVFDO

-XO\

Adopted 2022-23 Budget

5

CITY MANAGER'S BUDGET MESSAGE

Mayor and City Council, City of Greensboro

May 23, 2022

In accordance with the General Statutes of North Carolina, and on behalf of our team, I am pleased to submit for your consideration the Manager s Recommended Fiscal Year 2022 23 Budget. The budget is balanced and was prepared in accordance with the provisions of the North Carolina Local Government Budget and Fiscal Control Act and the policies of the North Carolina Local Government Commission. The Recommended FY 22 23 Budget fulfills my obligation to present a balanced fiscal plan for your consideration. It incorporates the priorities and policy direction communicated by the Mayor and City Council and reflects the City Council s commitment to responsible fiscal management, while continuing to provide services that improve the quality of life for the citizens of Greensboro and our 3,000+ employees. The budget is balanced with a tax rate of 66.25 cents. This is the same total property tax rate as the current year but is 11.69 cents higher than the revenue neutral rate of 54.56 cents. The revenue neutral rate incorporates the impact of the 2022 county wide property revaluation. While uncertainties resulting from the pandemic persist and our recovery is gradual, the recommended budget puts our city in a position to emerge stronger from the effects of the COVID 19 pandemic. This budget is driven by the City s philosophy of providing people centered, data informed, and purpose driven service delivery. The recommended FY 22 23 budget is submitted subsequent to exciting, recent and significant jobs announcements in our city and region, creating more than 4,500 jobs by Toyota EV Battery Plant, Boom Supersonic, Publix Distribution Center, and other investments in our community. These breakthrough economic announcements have direct impacts on our city s growth and well being. The FY 22 23 budget is aptly themed: Building on our Growth Momentum . With this in mind, this budget makes plans and projections for the near future in a prudent, visionary, and pragmatic manner to accommodate growth in an equitable manner while investing in our most important resource: our 3,000+ employees. The recommended FY 22 23 budget reflects increases that put us in a position to meet the expectations that come with recent and anticipated growth. Much of the growth in the proposed budget represents an effort to invest in critical areas such as appropriate staffing, increasing our fund balance, providing adequate facility maintenance, and delivery of services at the high levels expected from residents, visitors, and customers. The recommended FY 22 23 budget addresses Council s strategic priorities, adopted in 2021 and listed below:. Council 2021 Strategic Priorities Raise per capita median household income by 15% by 2025 Form partnerships to increase committed affordable housing 0 to 30 AMI and 30 to 60 AMI by 1,000 units by 2022 Reduce violent crime overall by 20% by 2022 Bring the fund balance to 25% of our annual budget by 2027 Increase by 20% the number of people that can reach their place of employment without the use of their personal vehicle by 2023 Implement a long term plan for recycling by 2023 Implement a plan to receive the GOLD LEED for cities by 2023 The budget recognizes the need for a reorganization of our structure to more effectively respond to the needs of growth. This budget continues progress toward Council's desire to support and provide for our employees. Thus, the budget includes over 68 positions added to the organization in order to meet operational needs and community expectations. In an effort to recover from the effects of the pandemic, the city was fortunate to receive $59 million from the federal government in the form of American Rescue Plan funds to support local governments in a variety of ways. To date, staff has recommended

Adopted 2022-23 Budget

6

the use of approximately 26% of these funds to Council for approval to advance affordable housing initiatives, support local businesses and non profit organizations, and provide bonuses to eligible city employees. Staff will make recommendations regarding the remainder of these funds in late July 2022 to continue to support council priorities for the community. With this recommended budget, we have a great opportunity to be a City that is economically competitive, driven by the desire to deliver services to our community in an equitable manner, strengthen our resolve to be an employer of choice, and enhances our capability to meet our present and future challenges. Highlights of the proposed budget Below are major highlights of the proposed budget: Position Additions (New and Mid Year)

Position Value (in millions)

Positions

FTEs

M/WBE Support

M/WBE Specialist, Executive Secretary, Office Assistant

2.75

$0.17

8 Patrol Officers, 15 Fire Company, End Gun Violence Coordinator Planner, Engineering Tech, Engineering Spec, Engineer, Fire Plans Reviewer Assistant City Manager, Assistant to the City Manager, General Services Director, Transit Director, Intergovernmental Relations Manager

Public Safety

24

$1.58

Development Services Organizational Changes GTA Access GSO Water Resources Enhancements

5

$0.38

5

$0.63

Customer Service and Reservation Teams

11.5

$0.69

3 Sewer Crew, Electrician, Dispatcher, Project Coord

6

$0.37

Parking Deck

Parking Attendant, Supervisor, Technician

3

$0.15

Parks & Recreation

3 Greenway Maintenance, 2 Asst Center Suprv

5

$0.21

Support Other Enhancements

Grants Analyst, 2 Contract Analysts, International Support Coordinator, Chief Sustainability Officer, 2 Equipment Services Technicians

7

$0.53

69.25

$4.70

Adopted 2022-23 Budget

7

Primary Enhancements and Cost Drivers

(in millions) $12.4

Debt Service

Compensation Adjustments

$5.6 $5.1 $4.7 $4.3 $4.1 $3.5 $3.0 $2.1

Facility Maintenance Additional Positions

Economic Development Support

Supply and Contract Costs Parking Debt Support Vehicles and Equipment Solid Waste Services

Gateway Corridors

$1.0 $45.8

Proposed User Fee Changes Several core service priorities face significant costs increases that must be addressed to provide expected services levels. The recommended budget includes new and updated user fees in Solid Waste Services, Fire Inspections, Development Services, and a few other areas. All fees are based on cost recovery, and proposed to maintain services levels. Solid waste services have seen significant cost increases, especially for recycling and household hazardous waste (HHW) services. An increase to the monthly solid waste availability fee from $2.50 to $3.50 per month and HHW monthly fees from $0.60 cents to $0.97 cents are included to help offset contracted service cost increases. A new model for state mandated fire inspections is proposed to align fees with the time and staff resources needed to provide state inspection services. These fees are necessary to support the phased addition of fire inspector personnel necessary to meet these demands. Planning and implementation will continue through FY 22 23. As the City continues to grow through annexations and in fill, development services continue to be a primary service focus. The recommended budget includes the continuation of development fee updates with the goal of 80% cost recovery. A few new fees are also proposed to align with our peers and enhancement service efficiency. benefits package for City employees. We want to be an employer of choice not only in our region but statewide by: Investing in the health and well being of our employees through funding free annual preventative health screenings Free participation in the City's diabetes management plan Low cost, on the job medical appointments An expanded leave program for caregivers and parents with six weeks of paid leave, and a variety of other paid leave benefits Mental health of our employee population and the implementation of the Optum Live and Work Well program x 10 free visits for Mental Well being for the employee x Every household member regardless of whether they are covered under our healthcare plans or not are covered for the 10 free visits MentorMe (employee to employee mentoring program) program, Leadership development programs, such as Leadership Edge, designed to prepare employees at all levels for leadership roles in the organization Homeownership assistance expansion for city employees through the City s Down Payment Assistance program Employer of Choice The recommended budget demonstrates the organization s commitment to provide a competitive overall compensation and

Adopted 2022-23 Budget

8

Signing, retention, bi lingual, military, and certification incentives to encourage employee recruitment and retention Strengthen existing shift differential incentives for eligible employees Tuition Reimbursement and Tuition Assistance Programs In addition, this FY 22 23 budget will enhance the education incentive for employees so there are no up front tuition costs to receive an associate degree from GTCC through the Guilford Promise program. The recommended budget includes a market adjustment of 2% for all employee base wages while providing a 3% average merit increase for all eligible employees. Additionally, public safety officers (sworn police, sworn fire, and eligible 911 staff) will receive a 3% market adjustment, increasing starting salaries while preventing additional compression, and an average 4% merit pay increase for eligible employees. Further, the FY 22 23 budget includes $1.8 million to immediately address wage compression Greensboro s population, at approximately 300,000, grew by nearly 30,000 residents since 2010. Our land area is now approximately 137 square miles (and growing) and our population is increasingly diverse. We continue to see new investment in our city in terms of building permits and value of construction. In 2021, 4,695 building permits were issued, and with the value of construction at $817 million it is the highest it has been in the past decade. Further, the 2020 Census shows that Greensboro, like the rest of the nation, is more diverse and more multiracial than ever before. Greensboro is showing a higher percentage of several racial categories, including African Americans and Asians. The number of people identifying as two or more races in Greensboro increased by 180% between 2010 and 2020. This increased diversity calls for more equitable investments especially in Black, Indigenous, and People of Color (BIPOC) communities, specifically in East Greensboro. The FY 22 23 budget includes continued support for our economic development partners totaling and funding for adopted and planned economic development incentives City Council adopted updated economic development guidelines in March 2021 that provides tiered investments to strategic industries, to jobs paying livable wages, and in areas of the City that need investment the most. To this end, the FY 22 23 budget recommends a focus on infill development, a total of $6.6 million in support of our newly established Office of Economic Development, and $1 million towards a new initiative, Gateway Corridors Improvements, which will identify opportunities for economic development in challenging communities to raise the quality of life of the residents and create jobs in these areas. This Office of Economic Development will be located in the CMO s office and report directly to the Deputy City Manager as part of overall organizational changes. Also included is additional support for continued implementation of the Cultural Arts Master Plan. Funding for the continuation of artists in the residency and special events support total $100,000. An additional $400,000 is included for arts and culture grants to support community organizations. Public Safety The City Council identified public safety as a priority for FY 21 22. The recommended FY 22 23 budget builds on this priority. The budget includes a total of 24 new positions to support public safety including 8 additional patrol officers, 15 fire positons for a new company to service annexed areas, and the addition of an End Gun Violence Coordinator in the City Manager s Office. Council recently approved $1.2 million to support police headquarter and other police facility security improvements through funds made available by the American Rescue Plan. Starting salaries for fire and police sworn personnel will increase appropriately to remain competitive. The City also offers several one time and on going pay incentives to improve the quality of staff and improve recruitment and retention. With signing bonuses, military incentives, night time shift differential, educational incentives, and bi lingual pay, starting firefighters and police officers could make almost $10,000 in additional incentives in their first year. and other in range issues. Economic Development

Adopted 2022-23 Budget

9

The FY 22 23 recommended budget includes contracted fire services related to annexations at approximately $600,000 for additional volunteer fire department support in recent and planned annexation areas in east and southeast Greensboro. The new company for the Fire Department also includes approximately $325,000 in equipment, turnout gear, and other related maintenance & operations costs. State mandated fire inspections are necessary to ensure buildings within the city are safe. The recommended budget includes an updated fee schedule for fire inspections to ensure more adequate cost recovery and help fund additional staffing to perform the number of inspections required. Staffing necessary to meet inspection demands will be reviewed and planned during FY22 23, and a phased plan for adding inspectors will be developed. During FY 21 22, the police take home vehicle program was implemented with the addition of 20 patrol vehicles. Capital purchases, vehicle upfits, and on going lease costs totaling $1.7 million are included for the continuation of the Police take home car program. This will provide an additional 20 police vehicles to the police fleet for continuation of the program. City funding to support the efforts of the Cure Violence program continued in the current fiscal year and will continue again in FY 22 23 to the tune of $500,000. In addition the Manager s FY 22 23 budget also recommends a new position, an End Gun Violence Coordinator, to partner with the community and Cure Violence program in reducing crime and gun violence in our community. This position will report to the Assistant City Manager for Public Safety and will be dedicated to neighborhood safety and crime reduction. Continued support for the Crime Stoppers program for $75,000 is included for a total of $150,000 in FY 21 22 and FY 22 23. Our 911 service is one of the best in the nation. The Department has won numerous awards and continues to perform exceptional service to our residents, especially those in need. In order to strengthen recruitment and retention nighttime shift differential pay of $3,600 is included in the compensation changes for Guilford Metro 911. Affordable Housing In the 2016 bond referendum, voters approved $25 million in Housing Bonds to support the development and repair of an estimated 1,007 housing units and to leverage approximately $54 million from other funds. The upcoming 2022 bond referendum would include an additional $30 million. Of this bond amount, $20 million will be directed towards the preservation and construction of affordable rental housing, $5 million towards access to homeownership and neighborhood reinvestment, respectively. While $30 million is not enough to meet the housing needs of our residents, it will leverage federal, state, and other housing funding opportunities to implement the goals of Housing GSO Plan adopted by Council in 2020. Additionally, remaining and future bonds will be used to continue the implementation of the plan. The Neighborhood Development Department is being re branded, as Housing and Neighborhood Development Department, and restructured to strengthen our approach to plan implementation. Implementation of the plan will also help reach the Council adopted goal of 1,000 additional housing units affordable for residents earning between 0% and 60% of average median income. The recommended budget includes an increase in the dedicated portion of the tax rate for the Nussbaum Housing Fund from 0.69 cents to a 1 cent. This will help to provide an additional $1.1 million in support of housing programming outlined in the Housing GSO plan. Further, the Down Payment Assistance program available to city residents will be revamped to provide designated funding and programming to assist city employees. Council recently provided support of $2.8 million towards the delivery of affordable housing units through revenues made available from the American Rescue Plan funds. Additional affordable housing projects will be recommended and considered by Council in subsequent ARP allocations. Transportation and Infrastructure New economic development opportunities will have direct impacts on our infrastructural capacity as more people and businesses move into our city. The proposed FY 2022 2031 Capital Improvements Plan (CIP) totals over $1.8 billion in projects, and outlines a future financing

Adopted 2022-23 Budget

10

plan to maintain our current infrastructure and develop new facilities as needed. While most infrastructure projects funded through successful bond referenda in 2006, 2008 and 2009 are now complete, a few significant Transportation projects are still in progress. The capital budget continues the commitments previously adopted by Council to invest in Greensboro s future to address diverse transportation priorities across the City for walkers, bikers, transit riders, drivers and those who use our greenway network. The successful 2016 bond referendum included $34.5 million for capital improvements to, and expansion of, Parks and Recreation facilities $28 million for transportation enhancements, including $18 million for enhanced roadway resurfacing $4.5 million for new transit buses and $5 million for new sidewalk and intersection improvements. To date, $82.7 million of the 2016 bonds have been spent while the remaining $45 million is planned for projects currently in progress. A $135 million bond referendum in July 2022, if successful, will build on the progress already made. The 2022 referendum includes $15 million for transportation, $14 million for firefighting facilities, $6 million for Police facilities, $30 million to continue implementation of the Housing GSO plan, and $70 million for parks and recreation projects. Increased annexations, continuous growth, and service costs put pressure on our water and sewer capacity, as well as our solid waste services. The recommended budget includes a proposed water rate increase of 4.5% for customers both inside and outside the city limits and increases to solid waste fees for household hazardous waste and recycling. These modest rate increases are essential for us to continue to provide services to our customers at expected levels. Even with the projected increases, the City maintains the second lowest water rates and the lowest solid waste service fees compared with our peers. The FY 22 23 budget includes the creation of a Public Transit Department. The Greensboro Transit Agency (GTA) provides a vital transportation service that is a key component of our efforts to support economic development and opportunity. The service continues to evolve and improve to meet the financial challenges of providing this service, including introducing a new fleet of electric buses, the first for any North Carolina municipality, and continued efforts to implement the Mobility Greensboro 2040 plan. These efforts, combined with continued expansions to trails, greenways, and other alternates to transportation are essential to meeting the Council adopted goal of increasing the number of people that can reach their place of employment without the use of their personal vehicle by 20% by 2023. Providing safe and available parking is a primary city strategy and contribution for downtown development. The Eugene Street Deck opened in March 2021 providing 948 additional spaces for the north Eugene Street area. A second new deck is under construction as part of the Westin hotel development. Financial support for the long term debt service costs associated with these new assets will require approximately $3.6 million in General Fund contributions to the Parking Fund beginning in FY 22 23. Minority and Women s Business Enterprise (MWBE) Program The Minority and Women's Business Enterprise (MWBE) program is a critical element of the City's economic development initiatives. In February 2019 City Council adopted enhancements to the Greensboro Code of Ordinances and M/WBE Program Plan intended to increase utilization of minority and women owned businesses in City contracting. MWBE participation continues to show improvement in contract areas, and focus continues on improving participation for all areas of city business. The numbers show that the City achieved M/WBE utilization of 15.5% in construction services and 20.5% in professional services in 2020. However, there is opportunity for increased utilization of MWBE in construction and professional services. To facilitate economic growth in our city, especially among minority and women businesses, the FY 22 23 budget recommends the addition of 3 staff positions to support the MWBE program. The recommended budget includes over $878,000 and 8.75 FTEs in support of our MWBE program an increase of 2.75 position and almost $270,000. . In an effort to make the program more effective, the recommended budget includes the creation of a General Services Department to realign the MWBE program with the organization s procurement management and contracting services.

Adopted 2022-23 Budget

11

Closing Thoughts Our City s population continues to grow resulting in increased pressure has built on every direct and support service supported by general tax dollars. Unmet needs exist in every department, requiring difficult policy choices. Public safety is vital to our quality of life and no city can be great if it does not have high quality public safety services. However, no city can be great if it only provides high quality public safety services. The FY 22 23 budget addresses several areas that the Council has identified as priorities: increasing our fund balance, providing effective public transit, increasing public safety s ability to serve, improve employee morale, support jobs creation and workforce development, advance affordable housing provision and improve the MWBE program, among others. As demands for services and infrastructure maintenance increases, the City is also faced with the need for new facilities and infrastructure to address growth. Balancing these competing priorities and positioning the City for long term financial viability will be critical for the City s continued success. A balanced budget is more than merely ensuring that expenditures are within revenues. A balanced budget also weighs the multiple policies and choices that together must harmonize to achieve Greensboro s vision as a diverse and forward thinking city, with endless economic opportunity and exceptional quality of life. We have dedicated employees to achieve this vision that will help make Greensboro the most desirable mid sized city in the United States livable, equitable, and sustainable for all residents . I am excited to lead our team in making this vision a reality, beginning with this budget. Respectfully submitted,

Taiwo Jaiyeoba City Manager

Adopted 2022-23 Budget

12

BUDGET AND FINANCIAL POLICIES

The City of Greensboro's budget and financial policies serve as the basis for the overall fiscal management of the City's resources. These policies guide City Council and Administration in making sound financial decisions and in maintaining Greensboro’s financial stability. The policies outlined here are in accordance with the Local Government Budget and Fiscal Control Act. Policies are also developed with guidance from the Government Finance Officers Association (GFOA). These policies are reviewed annually and are updated as needed. Financial policies that relate to the preparation, adoption, and execution of the annual operating budget are listed below: Principles for Budgeting The City of Greensboro prepares a two-year planning budget, with the first year submitted to City Council for legal adoption and the second year submitted as a planning document to assist with long-range financial planning efforts. The City of Greensboro develops and manages the annual operating budget through the fund accounting process. A fund is a fiscal and accounting entity with a self-balancing set of accounts recording cash and other resources, together with all related liabilities and equities, for the purpose of carrying on specific activities and attaining certain objectives. The City of Greensboro presents the Two Year Budget plan in a program budget format with program summaries, performance objectives, and performance measures provided for each major program or service. Program summaries are updated on a yearly basis, and performance objectives and measures are provided by departments. The City of Greensboro develops the annual budget in accordance with the policies and service priorities set forth in City Council’s adopted goals and strategic priorities. The City Council identifies budget goals and strategic priorities at the Council retreat each year. Operating Budget Policies In accordance with the North Carolina Local Government Budget and Fiscal Control Act, the City adopts an annual balanced budget ordinance. An annual operating budget is balanced when the sum of net revenues and appropriated fund balances is equal to appropriations. The City adopts the annual operating budget by July 1, and the budget covers a fiscal year period beginning July 1 and ending June 30. In accordance with the North Carolina Local Government Budget and Fiscal Control Act, budgeting and expenditure transactions use the modified accrual basis of accounting. City Council adopts separate grant project ordinances for all grants received by the City from Federal or State Government Agencies for operating or capital purposes. The grant project ordinance includes all estimated revenues to be available from the grant, including any local match equal to appropriations for the grant project. The City Council authorizes the City Manager or designee to transfer appropriations from one account to another within the same fund. Transfers are reported to City Council during regularly scheduled City Council meetings. Transfers greater than $50,000 require formal City Council approval. The City Council may amend the budget ordinance at any time after the budget is adopted, so long as the amended budget maintains the legal definition of a balanced budget. General Reserves Policies The City shall maintain unassigned fund balance in the General Fund equal to 25% of the following fiscal year's General Fund adopted budget. For all other operating funds, the City seeks to maintain a minimum fund balance of 8% of working capital. At the conclusion of the fiscal year, any General Fund unassigned fund balance amount in excess of 9% is assigned to a capital reserve account. A minimum balance of $10 million is required for appropriation of funds. Once the minimum goal is reached funds can be appropriated by City Council to support "pay-as-you-go" capital expenditures and improvements. Seven members of City Council must approve any Council action that appropriates unassigned fund balance. Appropriations to a contingency account in any of the City's operating funds shall be limited to no more than 5% of the fund’s total budget.

Adopted 2022-23 Budget

13