FY 2017-18 FINAL ADOPTED BUDGET

City Manager’s Budget Message

courts and $4.5 million for further development at Gateway Gardens and Barber Park were also included in the successful referendum. The 2016 bond referendum included $10 million for new transportation enhancements, including $4.5 million for new transit buses, $5.0 million for new sidewalk and intersection improvements and $500,000 for renovations to the Galyon Depot. The 2016 bond referendum also addressed the community’s need for additional affordable housing and other unique housing challenges. Voters approved $25 million for various housing efforts, including $8 million for a Workforce Housing Initiative, designed to make housing more affordable for working families earning income slightly above poverty designations. Funds to support affordable multi-family housing, emergency repair programs, and housing for homeless and disabled veterans were also included in the Housing Bond package. Over the past decade as the City has borrowed funds for various investments approved by voters, staff has managed the borrowing schedule to ensure minimal tax rate adjustments necessary for debt service. On April 18 2017, City Council adopted a resolution directing the City Manager to increase the portion of the property tax rate dedicated to general obligation debt service to fund debt service adequately for bonds approved by the voters in 2008, 2009 and 2016. The Recommended FY 17-18 budget acknowledges this direction, allocating an additional 1.75 cents (from 8.00 to 9.75 cents) to debt service. The proposed FY 2018-2027 Capital Improvements Plan (CIP) totals $1.69 billion in identified projects and outlines a future financing plan to maintain our current infrastructure and develop new facilities as needed. Over one-third of the entire proposed Capital Improvements Plan is devoted to our water and sewer infrastructure. The City continues to plan and implement a variety of water system improvements and maintenance efforts using both debt financing and pay-as-you-go (cash) capital financing. The proposed CIP includes $650 million in planned water and sewer utility improvements, including such major projects as Osborne Wastewater Treatment Plant capacity upgrades and system wide sanitary sewer and water line rehabilitation. The CIP also includes $126 million approved in the 2016 Bond Referenda, including funding for Housing, Economic Development, Parks and Recreation and Transportation (transit, sidewalks, resurfacing) projects. The recommended budget includes a proposed water rate increase of 3.75% for customers inside the city and a rate increase of 1.0% for customers outside the city. This modest rate increase

translates to about $1.59 per month for the typical household inside the city and about $1.00 per month for households outside the city. This rate increase will ensure the continued financial security of this vital utility resource, while keeping our customer rates very competitive when compared to peer cities throughout the state.

“Achieve exceptional customer service, a diverse workforce and ensure fiscal stewardship, transparency and accountability.”

The recommended budget includes an average 3.0% merit increase for all employees, based on performance evaluation. The recommended budget also continues the Public Safety Step Program and includes a 5% increase to all steps within the program. These recommendations are included within the total compensation plan developed for the FY 17-18 budget. Bloomberg Philanthropies selected the City of Greensboro to participate in the “What Works City” program, which is supporting the City’s efforts to implement an Open Data policy that will make a variety of city information, statistics and data easier for the public to access. In addition, we also continue to make customer service improvements to our Development Services area to make the City’s technical review process easier to navigate and more business friendly. The FY 17-18 Recommended Budget is balanced with a proposed tax rate of 63.25 cents per $100 property valuation, the same as the current tax rate for FY 16-17. In compliance with appropriate state statues and based on the 2017 county-wide property revaluation, the City has calculated and published a “revenue neutral” rate of 61.14 cents. The tax rate included in the Recommended Budget is 2.11 cents above the revenue neutral rate. I very much appreciate the continued dedication our employees show to the cause of public service. We are prepared to assist City Council in adopting this service plan for our city. Property Tax Rate

Respectfully submitted,

Jim Westmoreland, City Manager

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