FY 25-26 Final Adopted Budget

Intergovernmental revenues are budgeted at approximately $60.7 million, about $4.6 million, or 8.2%, more than the previous year budget of $33.6 million. Electric Utility and Piped Natural Gas sales tax revenues are budgeted at $26 million, $5.3 million higher than FY 24-25. The increase is based on current year usage and rate increases for Electric Utility. Powell Bill funds, the City’s portion of the state gasoline tax, are budgeted at approximately $9.1 million for FY 25 26, a $700,000 increase based on projected disbursements from the State. The budget includes federal and state funding of $7.9 million, largely for Transit support, remains the same as FY 24-25. Shared revenues from beer, wine, and the City’s share of the local ABC distribution of sales taxes is projected to decrease by $1.2 million, or 40% less than the current year budget. Information provided by the local ABC Board indicates the reduced distribution is necessary due to ABC Board capital plans and State required fund balance. Other state shared revenues are expected to remain largely flat overall. User Fees, Charges and Licenses These revenues primarily 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 user fee revenues for FY 25-26 are $320.4 million, compared to $302.8 million for FY 24-25. 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 $164.9 million to $181.9 million, an increase of $17 million, or 11%, based on service growth and increased rates. An average consumer rate increase of 9.6% is necessary to ensure debt coverage, maintenance, contaminant mitigation, and capacity improvement projections for the water and sewer system. Solid waste landfill and tipping fees are also recommended to increase as contracted service and disposal costs continue to rise. The budget also includes some adjustments to surface and deck parking rates based on recommendations from the recent downtown parking study. 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 largest item captured in this category. This includes internal printing charges, garage and fleet maintenance charges, and computer service and maintenance charges. Revenues in this category are budgeted at $154.5 million, compared to $150 million in the current year. Increases are primarily related to changes in internal charges. There is also a more than $5 million decrease from properties budgeted to be sold in the current year. 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 25-26 are $75.7million, compared to $70 million in FY 24-25. The General Fund contribution to the Debt Service Fund is budgeted at $42 million, a slight increase compared to FY 24-25. The transfer supports debt service principal and interest expenses associated with successful bond referenda in 2016 and 2022, limited obligation bonds, and other financing agreements. The transfer to the Solid Waste Management Fund increases $2.5 million to support increased contract cost. The transfer to the Parking Fund increases by $1.4 million. The General Fund contribution to the Coliseum is $3.4 million, the same as current year. Capital outlay, expenses for equipment and vehicles and other assets over $5,000 which have a useful life of more than a year is budgeted at 885,001. This is for the purchase of two (2) additional solid waste vehicles. Fund Balance The City of Greensboro fund balance policy states that each year, the estimated savings realized from unexpended appropriations 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 from $49.2 million to $46.3 million. This decrease is primarily driven by a significant decrease in appropriated fund balance in the Water Resource fund of approximately $13 million compared to the previous year.

Adopted FY 25-26 Budget

2