Comprehensive Annual Financial Report city of greensboro • north carolina

for the fiscal year ended june 30, 2019

Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 2019

Prepared by the City of Greensboro, North Carolina Finance Department

Richard L. Lusk, NCCLGFO Finance Director Marlene F. Druga, NCCLGFO Deputy Finance Director- Financial Services Nagesh V. Annambhotla, NCCLGFO Principal Analyst Kathryn K. Hayes Principal Analyst Linda R. Jones Administrative Assistant

Sarah M. Rupp, NCCLGFO Financial Reporting Manager Christina N. Smith, NCCLGFO Financial Analyst Donna H. Craig Financial Analyst Arthur D. Lands, NCCLGFO Accountant Susan C. Smith, NCCLGFO Accountant

Anita B. Wilson, NCCLGFO Accounting Manager Jeanne E. Tyndall, NCCLGFO Business Analyst Elizabeth Y. Lewis, NCCLGFO Accountant Evin B. Sims Accountant

Amanda J. Cartrette, NCCLGFO Treasury Manager James R. Holfield, NCCLGFO Assistant Treasury Manager Jeffery L. Roberts, NCCLGFO Accountant

CITY OF GREENSBORO Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 2019

Table of Contents

Exhibit Page Number Number Introductory Section

Letter of Transmittal...... I

Certificate of Achievement for Excellence in Financial Reporting ...... XXI

Organizational Chart ...... XXII

City Officials ...... XXIII

Financial Section

Report of Independent Auditor...... 1

Management’s Discussion and Analysis ...... 2

Basic Financial Statements:

I. Government-Wide Financial Statements:

Statement of Net Position...... A-1...... 3

Statement of Activities...... A-2...... 5

II. Fund Financial Statements:

Balance Sheet-Governmental Funds...... A-3...... 7

Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position...... A-4...... 8

Statement of Revenues, Expenditures, and Changes in Fund Balances-Governmental Funds...... A-5...... 9

Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities...... A-6...... 10

Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual - General Fund...... A-7...... 12

Statement of Net Position - Proprietary Funds...... A-8...... 20

Reconciliation of the Statement of Net Position of Proprietary Funds to the Statement of Net Position ……………………………..………………...A-9 ...... 24 Exhibit/ Schedule Page Number Number

Statement of Revenues, Expenses, and Changes in Net Position - Proprietary Funds...... A-10...... 25

Reconciliation of the Statement of Revenues, Expenses, and Changes in Net Position of Proprietary Funds to the Statement of Activities...... A-11...... 27

Statement of Cash Flows - Proprietary Funds...... A-12...... 28

Statement of Fiduciary Net Position - Fiduciary Funds...... A-13...... 32

Statement of Changes in Fiduciary Net Position - Fiduciary Funds...... A-14...... 33

Statement of Net Position - Component Units...... A-15...... 34

Statement of Activities - Component Units...... A-16...... 35

III. Notes to the Financial Statements...... 37

Required Supplementary Information:

Law Enforcement Officers’ Special Separation Allowance (LEOSSA) Pension Benefit Trust:

Schedule of Changes in Net Pension Liability and Related Ratios...... 1...... 38

Schedule of Employer Contributions...... 2...... 39

Schedule of Investment Returns...... 3...... 40

Other Postemployment Benefit Plan (OPEB) Trust:

Schedule of Changes in Net OPEB Liability and Related Ratios...... 4...... 41

Schedule of Employer Contributions...... 5...... 42

Schedule of Investment Returns...... 6...... 43

Local Government Employees’ Retirement System:

Employer’s Proportionate Share of Net Pension Liability (Asset) and Employer Contributions...... 7...... 44

Combining and Individual Fund Statements and Schedules:

Combining Balance Sheet - Nonmajor Funds:

Governmental Funds...... 8...... 45

Special Revenue Funds...... 9...... 46

Capital Projects Funds...... 10...... 49

Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Nonmajor Funds:

Governmental Funds...... 11...... 54

Special Revenue Funds...... 12...... 55

Capital Projects Funds...... 13...... 58

Schedule of Changes in Long-Term Debt-Enterprise Funds and Water Resources Capital Assets...... 14...... 63

Schedule Page Number Number

Schedules of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual:

Special Revenue Funds:

State Highway Allocation...... 15...... 66

Cemetery...... 16...... 67

Hotel/Motel Occupancy Tax...... 17...... 68

Economic Development...... 18...... 69

Neighborhood Development Revolving...... 19...... 70

Special Tax Districts...... 20...... 71

Housing Partnership Revolving...... 21...... 72

Community Development...... 22...... 73

HOME Program...... 23...... 75

Workforce Investment Act...... 24...... 76

State and Federal Grants...... 25...... 77

State and Federal Grants (ARRA)...... 26...... 80

Emergency Telephone System...... 27...... 81

Debt Service Fund...... 28...... 83

Capital Projects Funds:

Street and Sidewalk...... 29...... 85

State Highway Allocation...... 30...... 86

General Capital Improvements...... 31...... 87

General Capital Improvements II...... 32...... 88

Neighborhood Redevelopment Bond — Series 2005 and 2006A...... 33...... 89

Library Facilities Bond — Series 2008...... 34...... 90

Historical Museum Bond — Series 2008...... 35...... 91

Parks and Recreation Bond — Series 2008...... 36...... 92

Economic Development Bond — Series 2008...... 37...... 93

Fire Station Bond — Series 2008...... 38...... 94

War Memorial Stadium Bond — Series 2008...... 39...... 95

Street Improvements Bond — Series 2010...... 40...... 96

Parks and Recreation Bond — Series 2010...... 41...... 97

Housing Bond — Series 2010...... 42...... 98

Greensboro Science Center Bond — Series 2010...... 43...... 99

Transportation Bond — Series 2016...... 44...... 100

Schedule Page Number Number

Parks and Recreation Bond — Series 2016...... 45...... 101

Housing Bond — Series 2016...... 46...... 102

Community & Economic Development Bond — Series 2016...... 47...... 103

Fire Station Bond — Series 2019...... 48...... 104

Perpetual Care Fund...... 105

Enterprise Funds:

Schedules of Revenues and Expenses-Budget and Actual (Non-GAAP):

Water Resources...... 49...... 108

Water Resources Bond — Series 2014...... 50...... 110

Water Resources Bond Fund — Series 2018...... 51...... 111

Guilford County Construction Project...... 52...... 112

Water Resources Capital Improvement...... 53...... 113

Water Resources Extension Project...... 54...... 114

Stormwater Management...... 55...... 115

Stormwater Capital Improvement...... 56...... 117

Coliseum...... 57...... 118

Performing Arts Center Capital Project...... 58...... 120

Coliseum Capital Improvement Bond...... 59...... 121

Coliseum Capital Improvement...... 60...... 122

Solid Waste Management...... 61...... 123

Solid Waste Capital Improvement...... 62...... 125

Greensboro Transit Advisory Commission...... 63...... 126

Greensboro Transit Advisory Commission Grand Fund...... 64...... 128

Parking Facilities...... 65...... 129

Parking Facilities Capital Project...... 66...... 131

Parking Facilities Bond...... 67...... 132

Internal Service Funds:

Combining Statement of Net Position...... 68...... 134

Combining Statement of Revenues, Expenses and Changes in Net Position...... 69...... 136

Combining Statement of Cash Flows...... 70...... 138

Schedule of Changes in Long-Term Debt...... 71...... 140 Schedule/ Table Page Number Number

Schedules of Revenues, Expenses, and Changes in Fund Balance-Budget and Actual (Non-GAAP):

Equipment Services...... 72...... 142

Technical Services...... 73...... 144

Technical Services Capital Project...... 74...... 146

Information Systems...... 75...... 147

Graphic Services...... 76...... 149

Guilford Metro Communications...... 77...... 151

Employee Risk Retention...... 78...... 153

General Risk Retention...... 79...... 155

Capital Leasing...... 80...... 157

Fiduciary Funds:

Statement of Fiduciary Net Position – Fiduciary Funds...... 81...... 160

Statement of Changes in Fiduciary Net Position – Fiduciary Funds...... 82...... 161

General Capital and Debt Schedules:

Schedule of General Capital Assets by Source...... 83...... 162

Schedule of General Capital Assets by Function and Activity...... 84...... 163

Schedule of Changes in General Capital Assets by Function and Activity...... 85...... 165

Schedule of Long-Term Debt...... 86...... 167

Schedule of Changes in General Long-Term Debt...... 87...... 169

Statistical Section (unaudited)

I. Financial Trends:

Net Position by Component...... I...... 172

Changes in Net Position, Expenses, Program Revenues, and Net (Expenses)/Revenue...... II...... 174

Changes in Net Position, General Revenues and Total Changes in Net Position...... III...... 176

Fund Balances, Governmental Funds...... IV...... 178

Changes in Fund Balances, Governmental Funds...... V...... 180

II. Revenue Capacity:

Tax Revenues by Source, Governmental Funds...... VI...... 182

Analysis of Current Tax Levy...... VII...... 183

Assessed Value and Estimated Actual Value of All Taxable Property...... VIII...... 184

Direct and Overlapping Property Tax Rates...... IX...... 186

Schedule/ Table Page Number Number

Principal Property Taxpayers...... X...... 187

Property Tax Levies and Collections...... XI...... 189

III. Debt Capacity:

Ratios of Outstanding Debt by Type...... XII...... 191

Ratio of Net General Obligation Bonded Debt...... XIII...... 193

Computation of Direct and Overlapping Bonded Debt...... XIV...... 195

Legal Debt Margin Information...... XV...... 196

Pledged Revenue Coverage...... XVI...... 198

IV. Demographic and Economic Information:

Demographic and Economic Statistics...... XVII...... 200

Principal Employers...... XVIII...... 201

Full-Time Equivalent City Government Employees by Function/Program...... XIX...... 203

V. Operating Information:

Operating Indicators by Function...... XX...... 204

Capital Asset Statistics by Function...... XXI...... 206

Single Audit Section

Report of Independent Auditors on Internal Control Over Financial Reporting and On Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards...... 209

Report of Independent Auditors on Compliance For Each Major Federal Program and Internal Control Over Compliance In Accordance with OMB Uniform Guidance and the State Single Audit Implementation Act...... 211

Report of Independent Auditors on Compliance For Each Major State Program and Internal Control Over Compliance In Accordance with Uniform Guidance and the State Single Audit Implementation Act...... 213

Schedule of Findings and Questioned Costs...... 215

Corrective Action Plan...... 217

Summary Schedule of Prior Year Findings...... 218

Schedule of Expenditures of Federal Awards...... 219

Schedule of Expenditures of State Awards...... 222

Notes to the Schedule of Expenditures of Federal and State Awards...... 223

October 31, 2019

The Honorable Mayor And Members of the City Council Greensboro, North Carolina

The Comprehensive Annual Financial Report of the City of Greensboro, North Carolina for the fiscal year ended June 30, 2019, is submitted for your review. This report was prepared by the City's Finance Department and it is the comprehensive publication of the City's financial position and results of operations for the fiscal year ended June 30, 2019, for all funds and component units of the City. Responsibility for both the accuracy of the presented data and the completeness and fairness of the presentation, including all disclosures, rests with City management. To provide a reasonable basis for making these representations, we have established a comprehensive internal control framework that is designed both to protect the government’s assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City of Greensboro’s financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP). Because the cost of internal controls should not outweigh their benefits, the City’s comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we believe the data, as presented, is accurate in all material respects and is reported in a manner designed to present fairly the financial position and results of operations of the various funds and component units of the City. All disclosures necessary to enable the reader to gain an understanding of the City's financial activities have been included.

The City is required by state law to have an annual independent financial audit. A compliance audit on federal and state financial assistance programs is also required under the Federal Single Audit Act of 1984, as amended, and the State Single Audit Implementation Act. Uniform Guidance has also been considered in these financial statements. The independent auditors’ report on the Basic Financial Statements is included in the Financial Section of this report. The independent auditor concluded, based upon the audit that the financial statements of the City of Greensboro present fairly in conformity with GAAP, in all material respects, the financial position of the City of Greensboro, North Carolina, as of June 30, 2019. In addition, the auditors’ reports, required as part of a single audit, are found in the Single Audit Section of this report. This report focuses not only on the fair presentation of the financial statements, but also on the City’s internal controls and compliance with legal requirements involving the administration of state and federal awards.

GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the Basic Financial Statements in the form of the Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it.

In conformity with the standards of the Governmental Accounting Standards Board, this report includes all funds of the City, as well as all of its component units. Component units (blended or discrete) are legally separate entities, for which the City is financially accountable. Blended component units are, in substance, part of the City’s operations. The City has one blended component unit, the Greensboro Center City Corporation, reported in the Hotel/Motel Occupancy Tax Fund. Discretely presented component units are not considered to be part of the City’s primary operations and, therefore, are reported in total as a separate column to differentiate their financial position, results of operations and cash flows from those of the City. The Greensboro Housing Development Partnership, Inc., the Greensboro Redevelopment Commission, and the Greensboro ABC Board are presented as discrete component units.

Additional information on the blended and discretely presented component units can be found in Note I. A.

PROFILE OF THE GOVERNMENT

The City of Greensboro is located in central piedmont North Carolina, midway between Washington, D.C. and Atlanta. The Town was incorporated in 1808 and is the county seat of Guilford County. Greensboro has a population of 294,722 and presently covers a land area of approximately 135 square miles. In the past 10 years population growth has averaged 1 to 2 percent per year with the most notable increase of 5.7 percent occurring between 2007 and 2008, due primarily to significant City-initiated annexations in the northwest region. Since 2000, 16,374 acres were added or 26 square miles, an increase of 23 percent.

The City is empowered to levy a property tax on the appraised value of all real and certain categories of tangible personal property located in the City. The County is the only other unit levying such taxes within the City's corporate limits. The City is also empowered by state statute to extend its corporate limits by annexation, which occurs periodically when deemed appropriate by the governing council. Approximately 335 acres were annexed during the fiscal year 2018-19.

The City operates as a Council-Manager form of government. The Council is the policy-making and legislative body of City government and includes a Mayor and eight Council members who serve four-year concurrent terms. The Mayor and three Council members are elected at-large and the remaining five Council members are elected from districts within the City. The Mayor is a voting member and the presiding officer of the Council. A Mayor Pro Tempore is selected by the Council from its members.

The City Manager is appointed by the Council as Chief Executive Officer and is responsible for carrying out the policies and ordinances of the Council and administering the daily operations and programs of the City through appointed department directors and staff members.

The City provides services to its citizens in the following areas: police, fire, transportation, waste collection and disposal, water resources, parks and recreation, libraries, neighborhood development, public improvements and general administration. The City also operates an arena, exhibition building complex, aquatic center, golf course facilities, downtown parking facilities and government access cable television. The City will also operate the Steven Tanger Center for the Performing Arts with its anticipated opening in spring 2020.

The budget serves as the foundation for the City’s financial planning and control. Annually, the City Manager presents a proposed budget to Council for review as well as to the citizens of Greensboro for questions and/or concerns. North Carolina General Statutes require all governmental units to adopt a balanced budget by July 1 of each year for all funds for which a budget is required. Activities of the General Fund, Special Revenue Funds (except for Grant Project Funds), Debt Service Fund, and Proprietary Funds are included in the annual appropriated budget. Project-length financial plans are adopted for Grant and Capital Projects Funds. The City Manager may make transfers of II

appropriations within funds and department heads may make transfers of appropriations within a department. Transfers of appropriations between funds, however, require approval by the City Council. Budget-to-actual comparisons are provided in this report for each individual governmental fund for which an appropriated annual budget has been adopted. Budgetary control is facilitated by the use of a personnel/payroll data system that requires every position, including applicable fringe benefits, be budgeted. Also, the North Carolina General Statutes require an encumbrance system and a finance officer’s “preaudit” certification that budgeted funds are available prior to the placement of all purchase orders, contracts and electronic payments. Outstanding purchase orders and contracts are reported as a restriction of fund balance at June 30, 2019 in the category “Stabilization by State Statute.” The appropriated budget is prepared by fund, function (e.g., public safety), and department (e.g., police). A budgetary comparison for the General Fund is presented beginning on page 11 as part of the Basic Financial Statements. Detailed budget to actual comparisons for other funds with annual and project-length budgets are presented in the supplementary information subsection of this report, which starts on page 66.

COUNCIL BUDGET PRIORITIES

Four strategic goals are the primary focus of funding within the City’s budget:  Economic Development and Job Creation – The City’s approach to economic development focuses on promoting job creation, facilitating private business and expansion, utilizing community development grants, bonds and other resources to advance economic and infrastructure development, and providing enhanced access to City contracting opportunities. The Economic Development Fund is supported by a one- half cent property tax levy and is budgeted to generate approximately $1.41 million for FY 19-20. PLANIT GSO, is the City’s Comprehensive Plan and guiding document that articulates the vision, goals, growth policy and action plans for Greensboro through 2025. During the past year, dozens of public engagement events were held to receive citizen input for the City’s long term vision and goals. Adoption of the plan is anticipated by early 2020. The Minority-owned and Women-owned Business Enterprise (MWBE) program is a critical element of the City’s economic development initiative. In February 2019 City Council adopted enhancements to the MWBE Program Plan to intentionally incorporate the utilization of minority and women owned businesses as an integral part of the City contracting process. In November 2016, Greensboro citizens authorized $38.5 million general obligation bonds dedicated to economic development efforts for downtown streetscape improvements, continuing development for Union Square Campus, Citywide infill development and investments in east Greensboro. The FY 19-20 budget includes economic development incentive payments to HAECO, Ecolab, Charles Aris, Coca-Cola Bottling Company, and Qorvo for existing industry expansion projects that will create at least 741 new jobs and capital investment of $149.9 million. The Economic Development Fund Budget also includes support for the Self-Help Ventures Fund to support the redevelopment of Revolution Mill that had generated a capital investment of more than $82 million and Centric Brands, a New York Based leading lifestyle brands collection to relocate to a downtown Greensboro renovated building. In addition, construction is underway for the 3,000 seat Steven Tanger Center for the Performing Arts with an anticipated opening in spring 2020 and a fourth pool at the Greensboro Aquatic Center opened September 24, 2019 to support ever expanding competitions and other programming.

 Public Safety – During the past two years, the Greensboro Police Department (GPD) has led robust community engagements by hosting a number of community collaborations geared at increasing awareness and education on critical topics affecting our community. Topics included Opioid Abuse, Active Shooters Responses and Gang Awareness, with 730 people educated during fiscal year 2017-18, its first year of programs. During its second year, over 450 children participated in the “Students Overcoming Situations” program, a partnership with Guilford County Schools to teach the value of safety and decision making through social and emotional learning competencies. The Police Foundation managed 200 speaker requests, educating over 400 people on general topics including personal safety, elder abuse and online bullying. The III

department remains focused on violent and property crime reductions through creative policing strategies that combine evolving technology with innovative police initiatives, allowing the department to remain at the forefront of its profession. GPD and its community partners successfully launched the next efforts of the Safer City Summit initiative, focusing on employment, housing, and gang concerns in an effort to further reduce violent crime through nontraditional policing approaches.

 Infrastructure/Growth –The successful 2016 bond referendum totaling $126 million includes $34.5 million for new parks capital improvements. Five million is programmed for the initial development of the Battleground Parks District, an innovative concept that will integrate the current recreation options at the City’s Country Park with nearby Guilford Courthouse Military Park and the Greensboro Science Center. $3.0 million are allocated to citywide improvements to Greensboro’s many public tennis courts, and $4.5 million are included for further development at Gateway Gardens and Barber Park. For transportation enhancements, $4.5 million are allocated to new transit buses, $5 million for new sidewalk and intersection improvements, and $500,000 for renovations to the Galyon Depot and $18 million for street resurfacing. In 2016, 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. To date, $5.3 million in Housing Bond funds have been committed to 592 units with over $85 million in anticipated leverage funds. The City’s proposed FY 2020-2029 Capital Improvements Plan (CIP) totals $1.26 billion in identified projects and outlines a future financing plan to maintain our current infrastructure and develop new facilities as needed. The proposed CIP includes $620 million in water and sewer infrastructure projects, nearly 49% of the total capital improvement plan.

 Customer Service/Diverse Workforce and Fiscal Management – The City’s focus on customer service, a diverse workforce and fiscal stewardship, transparency and accountability ensures the City has the right people doing the right job. The budget continues a variety of employee development initiatives, including MentorMe (employee to employee mentoring program), Toastmasters, and development programs, such as Leadership Edge and Leadership Prime, designed for employees wishing to pursue supervisory roles in the organization. The FY19-20 budget includes an average 3.0% merit increase for all employees, based on performance evaluation. The recommended budget includes funding to advance sworn police and fire personnel to the appropriate next steps in the Public Safety Step Program. Finally, this budget maintains external competitiveness by adjusting general and executive pay structures by 2%.

FACTORS AFFECTING FINANCIAL CONDITION

A. Local Economy

Greensboro's diverse economy is attributed to its unique blend of trade, manufacturing and service businesses as well as its universities and colleges. Local industry is characterized by the production of a wide range of products, including aircraft, machinery, electronics equipment, textiles, apparel and tobacco, and expansion in the aircraft maintenance, transportation and financial services industries. Five of the top 60 companies on the Fortune 500 list have operations in the Greensboro area, these include: Proctor & Gamble, UPS, Federal Express, AT&T and UnitedHealth Group.

This area experiences an excellent market location which has access to all major domestic and international markets from Interstate Highways 40, and 85 and the Piedmont Triad International Airport (PTIA). Construction is underway for a new interstate system (I-73) that will span North Carolina, joining Detroit and Charleston, including Greensboro en route. In northern Greensboro, U.S. 29, between Danville and Greensboro, has also been designated as Interstate 785.

IV

Located at the center of North Carolina and the midpoint of the East Coast, Greensboro is strategically positioned at the hub of a dynamic region for major transportation, logistics, manufacturing and service industries. In addition, half of the U.S. population is within 650 miles (1,046 km.), another major advantage. With the significant presence of Federal Express and Honda Aircraft, the region continues to build on the strengths of its geographic location positioning the Triad as a global “aerotropolis” and logistics center on the U.S. East Coast.

The Urban Loop, a 44-mile state-constructed beltway around Greensboro, is in progress at a cost of approximately $1 billion, funded by the N.C. Legislature. There are two projects in various stages of construction that will complete the loop around the city, starting at the western end at Battleground Avenue and working eastward to U.S. 29. The Southern, Eastern and Western portions of the loop have been completed and are currently open. Construction of the Northern loop is to be completed by 2022, concluding the entire project.

Major industrial and business parks, with fully developed infrastructure, continue to develop in and around PTIA. Existing office and industrial facilities located within 2½ miles of the I-40 airport exit include more than three million square feet of office, office/showroom, warehouse/distribution, light industrial and hotel space. The Federal Express air and ground facilities continue to generate more demand for office and other tenants associated with operations that need to be close to a logistics hub. Eight tracks of developable land, either with current or future runway access are being offered, with all utilities to the sites already installed. The developed area adjoining PTIA is anticipated to produce nearly 18,500 jobs, $3.2 billion in economic impact and more than $113 million annually in state and local tax revenue.

City leaders continue to work with economic development officials in the region related to development of potential “Megasites”, those locations typically greater than 1,000 acres that could house a large manufacturing facility, such as an auto assembly operation. In particular, two sites within twenty-five miles of Greensboro in nearby Randolph and Chatham counties could offer 1,900 and 1,800 acres, respectively. In June, 2016, the Greensboro-Randolph megasite received industrial site certification designating the site as construction ready for a large-scale industrial user. The City of Greensboro has been working to provide needed water and sewer infrastructure to the Randolph site for service delivery within 24 months of a prospective company using the site. The Chatham site received official state certification as a megasite in June, 2014 and was selected to participate in Duke Energy’s Site Readiness Program that helps officials recruit major industries. In support of these initiatives, a nonprofit foundation, Golden Leaf, awarded $11 million in grant funding - $7 million allocated to water and sewer line construction for the Greensboro-Randolph Megasite, and $4 million for water and wastewater infrastructure at the Chatham-Siler Megasite.

Piedmont Triad International Airport (PTIA), located just eight miles from the City’s downtown area, is a major commercial and private aviation center that is owned and operated by the Piedmont Triad Airport Authority (the “Authority”). Situated along an aerospace-heavy corridor of Interstate 40, PTIA is at the center of a job-rich region for aircraft, manufacturing, aircraft parts supply and aviation repair and maintenance. The Piedmont Triad is home to nearly 200 aerospace companies including; Honda Aircraft, HAECO Americas, Cessna, North State Aviation, B/E Aerospace, Honda Aero and Federal Express. The Authority provides a complete line of aviation services, including air taxi service, aviation training and aircraft sales. Major passenger carriers include Delta, United, American, Allegiant and Spirit. The number of people flying from PTIA has continued to grow resulting in an increase of 7% from 2018 to 2019. For the calendar year ending on December 31, 2018, approximately 65 scheduled daily departures carried 939,416 passengers.

V

The aviation industry is one of the critical business sectors of the Triad’s economic development strategy. With the ongoing collaboration of the public and private sector organizations and the educational community, the Triad is poised for strong future growth in aeronautics. Local aviation-related businesses draw heavily from the aviation workforce training program at Guilford Technical Community College (GTCC) whose program has grown steadily in recent years. In 2014, GTCC completed a $10 million facility on a 23-acre campus at PTIA called Aviation III, to house its aviation management and pilot programs as well as customized industry training. The addition of the new facility allows GTCC to expand training to approximately 900 students each semester. GTCC’s aviation program is one of the largest in North Carolina and serves as a model for other community colleges. The college recently added a fifth degree program to GTCC’s aviation training, aerostructures manufacturing and repair, that will prepare students for specialization in an industrial and advanced manufacturing setting.

Honda Aircraft Company, a division of Honda Motor Company, has invested $155 million to establish its world headquarters at the 130-acre campus at PTIA in Greensboro and a total capital investment in its North Carolina operations of more than $245 million. With manufacturing, testing, training, maintenance and customer service facilities, the company currently employs 1,500 people at its PTIA campus. Following 12 years of design and testing, the HondaJet HA-420, a lightweight 7-passenger jet, received all required FAA certifications and sold its first HondaJet in 2015. Subsequently, HondaJet has received certifications world- wide and has established a dealer and sales network to provide service and support globally. In 2018, HondaJet unveiled and began delivery of their latest aircraft, the HondaJet Elite. The new aircraft provides improved flight range with an auxiliary fuel tank, increased payload, reduced vibration and cabin noise, enhanced avionics, and greater cabin space. With increasing demand for the HondaJet Elite, the company has recently begun construction of a new $15.5 million, 83,000 square-foot facility that will house the new wing-assembly process for the HondaJet Elite, said to be the fastest, farthest and highest-flying plane in its class. The new facility will provide capacity for more wings to be assembled concurrently and allow for additional storage of service parts for the growing fleet of HondaJets world-wide. The facility is expected to be completed in July 2020. For 2018, HondaJet was named the most-delivered jet in its category for the second consecutive year by the General Aviation Manufacturers Association, delivering 37 aircraft to its customers around the globe. During summer 2019, a Hawaiian air group, Wing Spirit, placed an order for 15 HondaJets, bringing the total number of manufactured aircraft, since it started production, to 130.

HAECO Americas’, formerly known as TIMCO Aviation Services, corporate headquarters is located at PTIA. HAECO provides aircraft maintenance, repair and overhaul services, and acquired TIMCO Aviation services for $388 million in 2014. The company has 2,200 employees at its five-hangar footprint at PTIA as well as additional employees at its interiors manufacturing facility in neighboring Davidson County. It services both wide-body and small body aircraft and is able to provide both high-end interiors for luxury airliners as well as more modest coach configurations. In addition to the four existing hangars in operation, HAECO completed a new $60 million, 250,000 square-foot hanger at PTIA in 2018. The City has offered an economic incentive grant of $400,000 to be paid out over five years if certain jobs are created. The new hanger could create up to 500 jobs when fully occupied.

Federal Express began operating its Mid-Atlantic Hub, a major U.S. air hub and cargo handling facility, in 2009. The one million square-foot cargo handling facility is located at PTIA on an approximately 160 acre site that has been leased by the Authority to Federal Express for an initial term of 25 years. The cost of the $500 million cargo handling facility was funded by Federal Express, and the Authority constructed a new 9,000-foot public runway parallel to an existing runway, as well as related taxiway, airfield and road improvements. Beginning in fall 2019, the Federal Express Mid-Atlantic air hub, will nearly double existing operations, adding eight net new flights and up to 400 new jobs bringing total employment at the PTIA hub to more than 800 employees. This facility features the latest in automated handling technology. In nearby Kernersville, the $110 million, 415,000 square-foot FedEx Ground “super hub” sorting and distribution center opened in 2011 and has a workforce of 550 full and part-time employees and about 200 independent contractor opportunities. At full capacity, the ground hub is capable of sorting 45,000 packages per hour serving the Southeast Region. The extensive FedEx air and ground distribution centers in the Greensboro area are part of an ongoing nationwide VI

network expansion and transit time acceleration plan to boost daily package volume capacity and further enhance the speed and service capabilities of its network.

To further augment this growing logistics network, United Parcel Service (UPS) Ground has a more than 280,000 square-foot small package operations hub capable of sorting more than 59,000 packages per hour. UPS Freight has a facility which moves approximately 1 million pounds of freight daily. Together with its High Point operations, UPS employs over 2,000 people in the area (Greensboro Economic Development Alliance).

In the City’s downtown area, a Business Improvement District (BID) was established in FY 2005 with an additional separate tax rate assessed for properties within the district boundaries. Currently the district tax is $.08 per $100 valuation. The BID contributed approximately $920,000 in the fiscal year ended June 30, 2019 for downtown improvement projects. A variety of activities have been completed, including new housing developments, business location loans, business facade improvements, landscaping and public safety programs. In FY 2013, City Council adopted aspects of a “Good Repair” Ordinance to further enhance the attractiveness of downtown sites.

In 2005, a $20 million minor league baseball stadium with a 7,499 seat capacity, opened with annual attendance averaging 348,000 for the past five years. The Greensboro “Grasshoppers”, a South Atlantic League member, are a Class A affiliate team with the Pittsburgh Pirates. The owners of the “Grasshoppers”, Greensboro Baseball LLC, purchased the First National Bank Field for $12.8 million, becoming one of just a handful of groups that own the park where their team plays.

Adjacent to First National Bank Field, a $24 million, nine-story office building, named “Project Slugger”, is currently under construction with completion planned for summer 2020. The building will be integrated into the ballpark’s entrance and overlook the stadium, maintaining many of the thematic elements of the ballpark. First National Bank will have its new market headquarters in the tower, along with retail space and a restaurant on the first floor and approximately 65,000 square feet of office space.

Since the opening of the baseball stadium, multi-use development projects have been underway in the area surrounding the stadium, including a $140 million mixed-use impact project that will include a 200,000 square- foot, 20-story office tower, a 150-room hotel, 280 apartment units, restaurants, a conference center and street level retail shops. Phase I is anticipated to start in spring 2020 and will include a hotel and 80 apartment units. Carroll at Bellemeade, a luxury mid-rise hotel and apartment project also located next to the First National Bank Field, opened in March 2019 with a 110-room Hyatt Hotel and 300 apartment units. Both projects include upscale apartments and amenities with millennials in mind and are within walking distance of the baseball stadium and the Steven Tanger Center for the Performing Arts, which is currently under construction.

In addition to the Hyatt Place Hotel that is part of the Carroll at Bellemeade mixed-use project, another three hotels are planned for the downtown Greensboro area. CN Hotels has begun construction of a 120-room Hampton Inn & Suites near the governmental plaza at the intersection of South Greene and West McGee Streets. The 180 room Westin Hotel at S. Elm Street is also under construction with an estimated completion date in 2020. Finally, future plans are underway for a new, 150-room Aloft Greensboro Hotel at N. Eugene Street near the baseball stadium.

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To accommodate increasing demand for additional downtown parking, two new City owned and operated parking decks are under construction. The City purchased property from Guilford County to construct the Eugene Street parking deck adjacent to First National Bank baseball park. The second parking deck, February One, will have an overhead walkway connecting to the proposed Westin Hotel. The two parking decks will provide approximately 1,570 additional parking spaces, cost an estimated $61 million, and are expected to open mid-FY2020/21. The debt on these projects will be paid with revenue generated from parking fees and property/sales taxes generated from new downtown development of approximately $170 million.

Many of the downtown developments are along Greensboro’s Downtown Greenway, a “linear park” that will allow residents to walk or bike safely across the city. This greenway, a collaborative project of the City and Action Greensboro, is part of Greensboro’s Parks and Recreation master plan, Plan2Play. This four mile downtown pedestrian and cycling loop, to be funded through public-private partnership. The greenway will connect to over 100 miles of existing and 460 miles of planned greenways throughout the area, serving as the hub of the greenway system. Construction costs are estimated at $36 million, with approximately $10 million in private donations and $26 million in public funds from both local bond referendums and state and federal funding. Portions of Phase I and Phase III of the loop are open with other Phases either under construction or in design. The full project is expected to be completed by 2020. Economic development studies related to greenway projects in Charlotte and Apex, North Carolina and in other states have shown that property values in close proximity to a greenway or park were valued higher and homes in these areas were reported to sell quicker. The greenways have also contributed to increases in adjacent commercial investment and real estate absorption, which the Greensboro Greenway is already experiencing.

Big Belly Trash Can

The Big Belly Trash, one of the many features along the Downtown Greenway, are the future of trash collection and it’s greener, cleaner, smarter, and cheaper to pick up. The Big Belly cans hold five times more trash than an average can with the use of a solar- powered compactor, which sends a wireless signal to the City with updates on the can’s fullness level. This way, the City uses fewer resources for trash pick-up.

North of the City’s downtown area, a $100 million redevelopment project on the historic 45-acre Revolution Mill campus continues its expansion with the first phase of construction completed. Notable as the first flannel textile mill in the South and registered on the National Register of Historic Places, the mixed-use site includes 140 apartment units, 100 businesses with 240,000 square-feet of office space, three restaurants, 40 artist studios and open outdoor spaces for live music and movies. Two event centers were also completed with accommodations for up to 475 guests. The planning concept is to create a live-work-play community that supports the culture of arts in Greensboro. The extensive historic restoration project will also connect the VIII

campus to Downtown Greensboro via the City’s Greenway trails. The project takes advantage of State historic preservation tax credits to aid in financing the investment.

Tenants in the Revolution Mill development include LT Apparel Group, a New York based apparel designer and marketer, was the first major business tenant, occupying a 12,000 square-foot space with 30 employees. The company plans to make Greensboro its headquarters for the design and artwork for Adidas and Carhartt children’s lines. Eateries can also be found at Revolution Mill including the Kau Restaurant, Butcher and Bar, Cugino Forno Pizzeria and Café at Revolution.

Another nearby historic mill was purchased in 2017 with similar plans for conversion to a mixed-use development on 18 acres of land just east of Revolution Mill. The former Proximity Printworks Mill, now on the National Register of Historic Places, served as the first textile printer in the South. A Wisconsin company specializing in urban redevelopment has plans to take advantage of federal historic tax credits and invest an estimated $54 million to convert the 470,000 square-foot mill into an “adaptive reuse project” with 217 mixed- income apartments, 90,000 square-feet of retail and restaurant spaces, and climate-controlled self-storage. Groundbreaking began in 2018 and construction is expected to be completed in 2020. Together with Revolution Mill, this development will connect to the City’s greenway to form an integrated mill community.

On the eastern edge of downtown near NC A&T University and Bennett College, plans for a new large scale multi-unit residential and commercial retail development were announced in fall 2018. Aptly named “Greensboro East”, the proposed development would include up to 200 apartments, townhomes, row houses and an anchor grocery store. United House of Prayer, a national Washington D.C. based Church, has had the development in consideration since 2007 when it bought the 14-acre site on East Market Street. The local business community sees this as a much needed boost to the neighborhood, providing services and additional housing options to university students, staff, and local residents. Situated a block away from the future Downtown Greenway, the development would also help to more seamlessly integrate the neighborhood to the rest of downtown Greensboro. Project costs and timelines have not yet been announced.

Also on the east side of Greensboro, a $14 million, 300,000 square-foot speculative industrial building was completed at the McConnell Center industrial park. The City of Greensboro extended a $600,000 loan as part of the City’s shovel-ready site program designed to encourage industrial and commercial development. Since it’s opening in 2016, the building has been occupied by two tenants – Wayfair and R.J. Schreiner Co – for a total of 77 employees on the site. In 2018, Coca-Cola Bottling Company became a third tenant, occupying a 135,000 square-foot space with an investment of $4 million into its operation. Increased demand has caused more speculative building in the City.

In keeping with Council’s strategic focus on spurring economic improvement, the City solicited proposals to develop strategies for economic development in Greensboro that will result in new jobs, investment and business opportunities. This challenge is part of the $1 million grant received by the City from the U.S. Department of Commerce and Economic Development Administration’s Strong Cities, Strong Communities (SC2) program. Greensboro was one of three cities nationwide to receive the grant. The transformative economic development plans for Greensboro were received and checks awarded to six recipients in September 2015. The first place award of $500,000 was presented to a local team of educators and business professionals for proposing the Global Opportunities Center in Greensboro that would connect and educate students and businesses in innovative ways to create global business and career opportunities. With the support of SC2 grant funds, the Global Opportunities Center opened its office in downtown Greensboro in 2016. Greensboro and North Carolina in general are transforming from the traditional manufacturing base noted in the late 80’s and early 90’s to a strong service sector and high-tech presence with significant business diversification in recent years.

The Greensboro-High Point metropolitan area ranked in the top ten for the past nine years for regions of its size by Site Selection magazine for metro areas enriched by corporate capital investment. The ranking is based on

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the number of projects with capital investments of at least $1 million, related floor-space expansion, and the number of new jobs created.

In 2018, Publix Super Markets announced that it will open a new distribution center in the Greensboro area that could bring as many as 1,000 new jobs to the city. With construction scheduled to begin in the second quarter of 2020, the company plans to build the largest distribution facility in the region, a 1.8 million-square-foot center. To secure the estimated $400 million investment, the NC State Economic Investment committee approved a $15.9 million incentives package requiring a $300 million investment and 300 new jobs by the end of 2022, with the remaining 400 jobs to be created by 2025. In addition, Guilford County has committed to an estimated $17 million in property tax incentives and Greensboro’s City Council has approved up to $20 million in similar incentives. Publix is a privately held, employee-owned company with operations throughout the southeastern United States, including nine distribution centers. Fortune magazine ranked Publix number one on their 2018 list and number two on their 2019 list of World's Most Admired Companies in the food & drug stores sector.

In May 2019, online retailer Amazon Inc. announced plans to open a one million square foot fulfillment center at Triad Business Park in 2020 employing 1,000 full-time employees. The new facility is within a couple miles of the Federal Express Ground operation and within 10 miles of the Federal Express air and sorting hub at PTIA in Greensboro. Additionally, Amazon signed a second lease in April 2019 for 38 acres in the Piedmont Corporate Park. The ten-year lease begins in August 2019 and includes five additional options to extend the lease by five years.

In 2016, Kay Chemical, a division of Ecolab, completed construction of a new 36,000 square-foot office building and existing building renovations in Greensboro. The $11 million investment allowed the company to retain 225 administrative positions at risk of being moved to corporate headquarters in St. Paul, MN. Additionally, 45 new administrative jobs were added over a three year period. The company expansion included a 12,000 square-foot cleanroom manufacturing facility and the purchase of the former Coca-Cola building adjacent to its campus for additional storage space. Kay Chemical specializes in customized programs to meet the unique food safety and sanitation requirements of the Quick Service Retail and grocery markets to global customers such as McDonald’s and Walmart.

Communications industry leader, Qorvo, has expanded by buying Amalfi Semiconductor, another cell phone component manufacturer located in California. In December 2015, the company added an additional 100 new jobs over a period of 3 years as part of a $25 million expansion of its Guilford county operations, primarily in research and development. The company’s area headquarters currently employs approximately 1,400 workers in Guilford County. Qorvo is the outcome of a $2 billion merger between RF Micro Devices and TriQuint Semiconductor, an Oregon-based microchip products company. In August 2016, the Greensboro site was named the sole headquarters location.

Deere-Hitachi Construction Machinery Corporation recently celebrated 30 years in the neighboring city of Kernersville. Four years ago, the company completed a $150 million dollar expansion and now manufactures 13 to 45 metric ton excavators for the mining and construction industry. The campus is 145 acres with a fabrication facility and a new assembly facility. Coupled with nearby Caterpillar, Inc. in Forsyth County, expansion in heavy equipment manufacturing is noted in the region.

Cone Health received State approval in 2016 for plans to pursue a $100 million project to relocate the standalone Women’s Hospital to a 196,000 square-foot, 6-story new construction addition on the south side of the existing Moses H. Cone Memorial Hospital. The new facility is expected to open in February 2020. Cone Health has invested $38 million in renovations of operating suites at Wesley Long Hospital and $23.5 million for an emergency MedCenter in Northwest Greensboro to meet the expanding need for emergency medical services in the area. These projects continue to ensure long–term sustainability and transform health care services for the community and add to the substantial investment Cone Health made in its North Tower project, which opened in June 2013. Cone’s Triad Healthcare Network ranks among the top-performing Medicare accountable care organizations in the U.S., according to federal data. Established in 2012, the network includes X

about 2,000 providers. Business North Carolina Magazine recently released their list of best hospitals in North Carolina with Cone Health tied for the number 1 best hospital in the State for 2019. The ranking identifies organizations that excel in patient satisfaction, safety, and low readmission and mortality rates for common conditions and procedures.

In 2017, the Construction Professionals Network of North Carolina announced Union Square Campus as the winner of the annual Star Award, given for an outstanding construction project between $10 million and $25 million. Phase I of the downtown university campus project was completed in August, 2016 with the opening of an 85,000 square-foot building to house the Bachelor and Doctor of Nursing programs and a simulated surgical lab. The $37 million healthcare-related project was jointly planned by NC A&T State University, UNC Greensboro, Guilford Technical Community College and Cone Health. A 7.5 acre site was selected in Greensboro’s South Elm Redevelopment area, of which 2 acres was donated by the City for this first phase of the project. City leaders also authorized funding up to $500,000 in other infrastructure improvements as well as building parking spaces associated with the building. Phase II of this project will focus on cybersecurity and product design while promoting global business and other areas of economic development and will include construction of adjoining office and retail space, a conference hotel and apartments. Funds for Phase II of Union Square Campus will come from the companies that take part in this phase and is projected to be at least three years away before ground breaking begins. The fully developed project is envisioned to involve seven educational institutions and to be funded with public, private, state and federal grant contributions. The estimated long-term economic impact of this project is more than $500 million, according to a recent economic analysis study.

Across from Union Square Campus, developers announced plans to build more than 90 apartments, town homes, and row houses in the South Elm Street Development District. The proposed $27 million project will be instrumental in helping to revitalize the neighborhood which has been a major focus for City planners for over a decade. The City of Greensboro has required the developer to offer 51 percent of its units as affordable housing for people who earn up to 80 percent of the area’s median income. Other town homes and condominiums are expected to sell for between $150,000 and $250,000, providing an opportunity for more people to own real estate in downtown Greensboro. The majority of construction should be completed by 2020. In April 2019, the Gateway University Research Park unveiled its new name of Gateway Research Park, creating a shorter name with a broader community reach. In December 2011, the Gateway University Research Park opened the Joint School of Nanoscience and Nanoengineering (JSNN) located in east Greensboro. The 105,000 square-foot, $65 million building houses the most significant academic collaboration to date between UNC Greensboro and NC A&T State University. The program and the building itself were designed to foster interaction among the students and across specialties such as biology, engineering, and technology. The JSNN offers graduate degrees in nanoscience and nanoengineering which is expected to generate as much as $500 million in economic activity. The school has also formed the Nanomanufacturing Innovation Consortium, a partnership between JSNN and area businesses, which has grown to twenty-five members. In fall 2018, the research park opened its third facility; a new 70,000 square-foot, $12 million building anchored by Core Technology Molding Corporation, an innovative company that provides injection molding for major manufacturers around the world. The City of Greensboro has agreed to fund $1.2 million for the project. The projections for Gateway’s 75-acre South Campus include an additional 10-12 buildings, driving greater economic growth. XI

Several of the area colleges and universities are also experiencing significant capital construction. In 2016, NC A&T State University (A&T) and UNC Greensboro (UNCG) were together approved by North Carolina voters for $195 Million in Connect NC Bond funding. Following the opening of its $90 million newly constructed 150,000 square-foot student center, A&T is investing $90 million for construction of a new 130,000 square-foot, four-story Engineering Research and Innovation Complex (ERIC). A&T began the bidding process for the construction of ERIC in April 2019. UNCG is in the construction phase of a new $105 million, five-story Nursing and Instructional building with occupancy expected by spring 2021. UNCG has completed a new $51 million student residence hall as the final piece of its Spartan Village student housing development. The mixed-use project includes retail space and pedestrian walkways connecting residence halls and the Kaplan Center for Wellness. At GTCC, $34 million in renovations for the new Center for Advanced Manufacturing has now been completed. The school’s transportation and welding programs will be located in the 250,000 square- foot building and will include a flex lab for use by companies for employee training. Overall, the Piedmont Triad region received $355 million in funding from the $2 billion state bond package, approved in March 2016.

Since September 2014, A&T has ranked number one as the largest historically black college and university in the country. Fall 2019 enrollment numbers place A&T at more than 12,500 students, an increase of 3.4% over the 2018-19 academic year and 1,831 students or 17% since 2014. Much of the increase in enrollment numbers can be attributed to the institution’s newly revised strategic plan, A&T Preeminence: Taking the Momentum to 2023. The plan sets an enrollment goal of 14,000 students by its conclusion.

The Greensboro area economy remained stable. The Gross Metropolitan Product (GMP), measuring the total output of goods and services ranked the Greensboro/High Point metro in the top 20% nationally with total GMP of $41.5 billion, up 17.5% in the past five years (U.S. Bureau of Economic Analysis).

Since 2010, the Greensboro unemployment rate has decreased by 57%, from 10.1% in 2010 to 4.3% in June 2019. The national average unemployment rate for June was 3.7%. (U.S. Bureau of Labor Statistics)

The most recent Census Bureau data indicates that Median Household Income in Greensboro was $45,787, an 11.3% increase over the past five years from $41,150. (U.S. Census Bureau)

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In December 2018, there were 685 single-family home closings in Greensboro with a median home price of $182,000, an increase of 5.4% from $172,750, in December 2017. (Greensboro Regional REALTORS® Association)

There are currently 10,379 hotel/motel rooms throughout the City comprising 86 hotels. Receipts from the City’s 3% occupancy tax totaled $4,684,823 in FY 2018-19. The Tourism Authority receives 20% of the City’s 3% occupancy tax, with the balance dedicated to debt service related to Coliseum complex improvements. A portion of the County’s 3% occupancy tax is remitted to the City for tourism development activities.

Guilford County has a robust and growing tourism industry, maximizing economic impact and vitality in the region. In 2018, Guildford County was the third in visitor spending at $1.49 billion among all North Carolina counties.

The Greensboro Coliseum Complex continues an estimated $85 million in capital improvements scheduled from 2010 through 2019, financed by Limited Obligation Bonds and funded by Hotel/Motel occupancy tax collections and $8 million in grant funds. The venues renovated at the Coliseum Complex include the Arena, Special Events Center, Greensboro Aquatic Center (GAC) and an auxiliary building that houses the Greensboro Convention and Visitor’s Bureau. The projects consisted of replacing and realignment of arena seating, widening concourse areas and concessions, scoreboard and lighting updates, new viewing platform and lounge, new entrances for accessibility, and enclosing entrances for energy savings and security control.

More recent improvements, include roof replacements, renovations to the Convention & Visitors Bureau, a new $8.2 million pool at the GAC, $2 million in technology improvements, and $1.2 million for improvements to the North Lobby and parking facilities. Funding was also used for the new NBA Charlotte Hornets G-League team, the Greensboro Swarm. The Coliseum Complex Pavilion has been home court for the team with $6 million in renovations completed in October 2016. The project encompassed a complete transformation of the existing 30,000 square foot pavilion structure into a classic 2,300 seat basketball Fieldhouse, including construction of a new standing seam metal roof, new exterior glass storefront, new exterior architectural facade finishes, and approximately 10,000 square feet of additional team support space for locker rooms and showers. The venue is also designed to accommodate other Coliseum events.

The Coliseum Arena hosted the Atlantic Coast Conference (ACC) Men’s Basketball Tournament for three seasons from 2013 to 2015 and will again host in 2020. It has also hosted the ACC Women’s Basketball Tournament since 2000, with the exception of 2017, and will continue to do so through 2022. The Greensboro Area Convention and Visitor’s Bureau estimates an economic impact of more than $27 million for the ACC tournaments. The Coliseum will host the first and second rounds of the 2020 NCAA Men’s Basketball Tournament. The Coliseum also hosted the 2016 USA Masters Games, as well as the 2015 U.S. Figure Skating Championships, an event that made a highly successful North Carolina debut in 2011 and is planned again for 2020.

The White Oak Amphitheatre is located on the southern end of the Greensboro Coliseum Complex campus. The Amphitheatre features a seating capacity of 7,061, including more than 2,000 reserved seats and general admission lawn seating for more than 5,600 patrons. This facility hosts a diverse selection of community events, music, arts and crafts and festival type events. The venue also supports entertainment at the annual Central Carolina Fair. The name White Oak was selected in honor of the City of Greensboro’s “official” tree and a grove of white oaks surround the venue’s seating area. The traditional amphitheater season is a six-month schedule of events running from May through October.

The ACC Hall of Champions opened in 2011 and honors the league’s schools, athletes and coaches with displays of artifacts and interactive games to celebrate the storied history of the ACC conference. The facility is open three days per week to the general public and also hosts special group tours. Funding of the $2.3 million project was provided by the State of North Carolina for tourism and economic development activities. The

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ACC Hall of Champions strengthens the bond between Greensboro and the ACC enhancing Greensboro’s efforts to secure future tournament dates.

Greensboro Aquatic Center, a state-of-the-art, 78,323 square-foot indoor swimming facility, with seating capacity of 1,850 and total capacity of 2,500 has been in operation since September 2011. Featuring leading edge concepts in aquatic design, the GAC brings together all major aquatic sports - competitive swimming and diving, water polo, synchronized swimming and other unique sports all in one venue. The GAC has provided Greensboro the opportunity to host high school and collegiate events, USA swimming meets, Master’s swimming and U.S. Water Polo events as well as many local, regional, national and international competitions. The GAC has previously hosted NCAA Swimming & Diving Championships in 2015 (Division I Women’s) and 2016 (Division III Women’s & Men’s). The GAC was also previously awarded the 2018 NCAA Division II Women’s & Men’s Championships and thus will now host NCAA Championships for five consecutive years (2018-2022). With this increase in demand, the GAC has completed a fourth pool that provides 19 additional short course lanes and 8 long course lanes. The facility has had an estimated economic impact of over $150 million since it opened in 2011.

Greensboro was selected from among thirty-two applications to host the annual National Folk Festival from 2015 to 2017. The free, three-day outdoor event attracted roughly 400,000 visitors over its three year run, generating an economic impact between $12 to $15 million per year, based on audience surveys and other data. The 2017 event drew more than 162,000 attendees, an increase of 58% from 2015. The legacy festival included over 30 acts of music, dance, and other events at seven locations across downtown Greensboro. The event also utilized the LeBauer Park as one of eight venues across downtown Greensboro, located across from the Steven Tanger Center for the Performing Arts currently under construction. With the success of the national festival, the City has continued the event as a state-wide, admission free festival, funded by sponsorships, donations and fees paid by participating vendors. The City celebrated with the three-day North Carolina Folk Festival in 2018, 2019 and will hold the festival again in 2020.

Among the vendors sponsoring the festival are local craft brewers, an industry that continues to expand locally. Over the past several years a number of new Greensboro breweries have opened, including Gibb’s Hundred, Preyer, Pig Pounder, Joymongers, Leveneleven and Little Brother Brewing. They join long-established Greensboro brewers, Red Oak, the second oldest N.C. brewer, founded in 1991, and Natty Greene’s, located in the heart of downtown, named after Greensboro’s namesake Nathanael Greene, founded in 2004. In June 2019, Natty Greene’s opened a second location with a production brewery. World of Beer, a network of taverns known for offering more than 500 bottles of brew from around the world, opened a Greensboro location in late 2015. The restaurant occupies a 4,800 square-foot space within the 9,000 square-foot expansion of Westover Gallery of Shops.

The eastern entrance to the City showcases the newest addition to Greensboro’s collection of beautiful parks and gardens, Gateway Gardens, another public/private venture. Phase I of the $8 million project has been completed and includes the main entrance and a 5,100 square-foot Visitor’s Center along with rain garden, pond, children’s garden and heritage garden with unique public artwork displayed throughout the park. Phase II will include a Japanese garden, wedding and special event garden and white oak forest. This project is funded with $2.5 million in City bond funds, $2 million in private contributions and a $500,000 grant.

In 2017 and 2018, the City of Greensboro ranked in the top 10 by the annual Digital Cities Survey for cities with a population of 250,000 to 500,000. The survey recognizes cities that use technology to improve services XIV

and boost efficiencies. Greensboro stood out for its mobile progress, including the TransLoc Rider app that allows real-time tracking of city buses and its Parkmobile app that allows drivers to pay to park at all meters and parking lots using the online mobile payment system. Greensboro was one of 10 cities invited to participate in Envision America 2017, a workshop focused on developing smart city initiatives.

In July 2019, the Piedmont Discovery App was launched. This mobile application, designed and managed by the City of Greensboro, City of High Point and Guilford County, is an interactive park and trail app created to search hundreds of local parks, trails and recreational opportunities. The app allows users to find outdoor amenities like trails, playgrounds or dog parks, as well as indoor recreational facilities. App users can search for parks and trails near them, find directions, connect with websites and explore trails based on difficulty and terrain. The City’s Parks and Recreation Department has been accredited by the Commission for Accreditation of Parks and Recreation Agencies (“CAPRA”) since 2006. The Department is currently one of only 166 agencies in the United States to receive the national accreditation, which shows the City’s high level of commitment to developing a standard of excellence throughout the organization that meets or exceeds National Recreation and Park Association and CAPRA national standards. The City has over 3,000 acres of developed park sites and over 8,000 acres of undeveloped land from open space dedications. There are five regional parks and two public golf courses that represent over one-half of the City’s park system at over 3,500 acres.

Greensboro has also been recognized for its effort in forming the Tri-Gig High Speed Broadband Initiative. The regional partnership plans to take advantage of existing fiber optic cable infrastructure previously installed for Greensboro’s traffic-light system. The partnership hopes to provide the next-generation of high-speed broadband infrastructure needed to meet the technological needs of current and future businesses, public institutions, educational institutions, and local residents at a substantial discount from current market prices. The Piedmont Triad Regional Council selected North State Communications as its preferred vendor for delivering high-speed internet services to the region.

The Greensboro region is well-suited for sizeable computing centers and high tech companies due to the significant electric power grid developed in previous years to accommodate large textile manufacturing operations, along with existing fiber optic and advanced telecommunications infrastructure. Also, legislation was passed that extends tax incentives to smaller data center customers in North Carolina and makes it a state with one of the lowest investment thresholds. AT&T, Facebook, Apple, Google and IBM among other large scale data centers and tech companies have operations in North Carolina.

FY 2019 General Fund revenues are reported at 100.5% of budgeted amounts with 96.4% of budgeted expenditures spent. General fund revenues and transfers in totaling $287.4 million exceeding budgeted amounts by $1.5 million while expenditures and transfers out were $285.2 million. The fiscal year 2018-19 budget provided for a $4.9 million General Fund balance appropriation; however, the use of the appropriation was not needed. The fund balance policy target of 9% of the subsequent General Fund budget was maintained ($27.5 million) and the General Fund reserve for capital projects decrease from $6.2 million to $5.0 million. This reserve amount is recorded directly within the General Fund accounts. Property tax collections were 99.3% of the current year’s levy, slightly higher than at the same time last year, with overall collections approximating close to 100% over a two to three year period from levy date. The continued high collection rate is further bolstered by the motor vehicle property tax system implemented by the State of North Carolina in 2013 called “Tax and Tag Together”. North Carolina’s vehicle registration program only allows a vehicle to be registered by the State with corresponding payment of local property tax due.

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The City of Greensboro’s total budget for the 2019-2020 fiscal year has been approved for $566.5 million. This budget includes a property tax rate increase of three cents to 66.25 cents per $100 property value. The City’s last property tax increase was 11 years ago for the fiscal year 2007-08 budget.

Water and sewer rates increased by 4.0% for both customers inside and outside the City limits in FY 2020, allowing for the City’s commitment to improving its water quality and infrastructure. Despite the increase, residents still maintain one of the lowest water and sewer rates in North Carolina. The budget also includes a $2.50 per household fee allowing the City to continue its recycling program.

B. Long-Term Financial Planning

As of June 30, 2019, the City has $102,574,302 in authorized (2009 and 2016) and unissued general obligation bonds in the following functional areas to fund various governmental projects. We anticipate phasing the issuance of these bonds over the next five years in accordance with Greensboro’s capital improvement program, Council’s strategic priorities and the economic outlook, and as current bonds mature:

Economic Development $31,830,000 Parks and Recreational Facilities 24,200,000 Transportation 17,260,000 Housing 14,600,000 Refunding 13,500,000 Greensboro Science Center 1,184,302

The City continues to use a construction-draw note program to fund significant capital improvements with conversion to permanent financing typically within two to three years. This includes an $85 million note, issued in June 2018, for the water and sewer improvements for 2018-2020 capital projects.

The $90.4 million project for the Steven Tanger Center for the Performing Arts (Tanger Center) in downtown Greensboro is currently under construction with an estimated opening date in spring 2020. The project is being funded by a public/private partnership with $43.4 million in public funds provided by the City and $41.8 million in private funds raised by the Community Foundation of Greater Greensboro and approximately $5.2 million in other contributions. The facility will be designed as a multi-use venue with diverse programming for all ages and is estimated to attract 300,000 patrons annually, extending educational opportunities for families through exposure to high quality performances in a local setting. Donor pledges towards funding of the project have exceeded $40 million, including a single private pledge of $7.5 million from Steven Tanger, granting naming rights for the facility. Inside the Tanger Center will include large lobbies, grand stairs, multiple elevators, pre-functionary spaces, a patio overlooking Lebauer Park and a large backstage working space to support the largest Broadway and traveling performing arts shows. The Tanger Center will permanently include a first class performance line array sound system, an electronic acoustical enhancement sound system for symphonic events, and an LED lighting stage plot to bring the latest in technological enhancements to the state-of-the-art facility. The City plans to pay the debt service associated with such financing from a portion of the County’s hotel/motel occupancy tax revenues, facility fees and parking-related revenues.

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The footprint design of the Tanger Center has been coordinated with the new LeBauer Park, a $10 million privately built facility that was gifted to the City and opened in August 2016. The park site is in proximity to the Tanger Center and features the largest outdoor art sculpture in the Southeast, funded by a $1 million dollar grant and designed by internationally recognized artist, Janet Echelman. The park includes a 17,000 square- foot event lawn space with its aerial sculpture, a children’s garden with reading materials from a book cart, an interactive water feature that will serve as an ice skating rink in the winter, and a dog park equipped with specially engineered turf and anti-microbial backing. The garden pavilion can accommodate concerts and other events with a nearby putting green where visitors can practice their golf skills. This entire project is considered by many to be a key component to vibrancy of the arts community as a whole in the City.

The Greensboro Science Center (GSC) is a three-in-one science destination that includes an aquarium, zoo, and science museum. The zoo was added in 2008 and the aquarium in 2013, with an extension completed in 2017. The 119,500 gallon aquarium showcases diverse species of marine life while highlighting ocean conservation. The science museum features an OmniSphere Theater, human health and biology wing, interactive dinosaur experience, and the Science Advancement through Innovative Learning (SAIL) Center. Along with the zoo’s captivating animal exhibits, it also features a hands-on farmyard and SKYWILD, an aerial attraction of ropes, platforms, and zip lines. The aerial obstacle course is designed for education, entertainment, physical fitness, team-building, leadership training, and pure thrill-seeking.

The GSC is on course to realize its original core vision, in part through their “Think BIG Together!” campaign which raised $13 million in private donations to supplement funds from the previously approved $20 million bond referendum. This will help GSC complete a major expansion named Revolution Ridge: Life on the Edge, a zoological experience which will be “revolutionary” in terms of zoo design, educational technology and dedication to species preservation. In addition to various improvements made over the past few years, the expansion will double the size of the zoo and add an animal health center, butterfly house and Monarch conservation project, endangered cat complex, Okapi giraffe forest, aquatic water garden, and greenhouse. The Revolution Ridge expansion is expected to be completed during 2021.

In September 2019, GSC announced the addition of a Tree House Adventure, a treetop science exploration playground connected by interactive adventure bridges. The new addition will connect the existing Animal Discovery Zoo with the future Revolution Ridge Zoo. Construction for the tree house playground will take

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place in winter 2019-20 and is expected to open in spring 2020. In addition, a hand-crafted carousel with Greensboro themed figures is also anticipated to open in winter 2019-20.

In summer 2019, the GSC announced it 10-year master plan for 2020-2030, “The Gateway Project: The Art and Science of Imagination”. The plan sets forth a fully immersive experience including the construction of Wunderworld, a captivating underground experience of nature and science. The journey will descend into a reptilian encounter, continuing onto aquatic exhibits and a crystal cave demonstrating, through state-of-the-art technology and architecture, the science behind these natural geological wonders. The 10-year plan will also incorporate an artful and technology-infused linkage to connect attractions throughout the 400 acres of the Battleground Parks District that include the GSC, Guilford Courthouse National Military Park, Country Park, Jaycee Park and Lewis Recreation Center. The plans incorporate a hillside amphitheater, boardwalk and park pathways, public art and outdoor educational venues, and a lakeside promenade.

Since 2014, GSC has been accredited by the Association of Zoos and Aquariums, an award that only 223 of the more than 2,000 qualified national facilities receive. GSC is the only facility in the state to offer an accredited science museum, zoological park, and aquarium in a single destination. It is ranked number three in North Carolina as the top field trip attraction, receiving students, visitors and educators from throughout the state. The GSC attendance numbers have more than doubled during the past six years to over 400,000 annually and supports $77 million in annual economic impact from operational and associated visitor spending.

The City of Greensboro’s proposed ten-year Capital Improvements Program (CIP) includes approximately $1.3 billion for projects that will be undertaken during FY 2020-2029 and outlines a future financing plan to maintain the City’s current infrastructure and develop new facilities where needed to help achieve the City Council’s strategic service priorities. A substantial portion of the CIP relates to Street Improvements and Water Resources projects. Additional amounts are planned for Parks and Recreation projects, Libraries and Fire Stations. While the substantial portion of the CIP is funded by bonds and Enterprise Fund operations, the CIP is also funded by grant revenue, including community contributions, community development efforts, transit and other sources. During the 10-year planning period, grants are projected to be available to support a variety of Transportation projects, including sidewalk construction, greenway projects, road projects, and transit improvements. Total Grants funding in the CIP equates to $47 million, approximately 3.7% of the total CIP. Unauthorized bond funding represents $364.6 million or 29.0% of the current plan. The CIP also includes $84 million categorized as other revenue.

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C. Special Achievements

The Greensboro-High Point metropolitan area ranked in the top ten for the past nine years for regions of its size by Site Selection magazine for metro areas enriched by corporate capital investment. The ranking is based on the number of projects with capital investments of at least $1 million, related floor-space expansion, and the number of new jobs created.

The Greensboro Parks and Recreation Department received the 2019 North Carolina Marvin Collins Planning Award in the “Outstanding Planning Award – Innovation in Planning Services, Education and Public Involvement” category for its Master Plan, Plan2Play. This system-wide comprehensive master plan, adopted in February 2019, provides not only the vision, goals, strategies and recommendations for enhancing and expanding park and recreational opportunities for residents, but also includes a maintenance management plan for the next 20 years. During the community engagement period from March to June 2018, the City received over 3,000 online surveys, 870 ideas from eleven community events and over 2,000 ideas from public participation boards at local libraries and recreation centers.

Greensboro’s Parks and Recreation Department was one of four finalists for the 2019 National Gold Medal Awards for Excellence in Park and Recreation Management, awarded by The American Academy for Park and Recreation Administration. The City is also a three-time winner of the National Gold Medal for Excellence in Leisure Services.

The City of Greensboro won a 2018 Silver Circle award from the City-County Communications and Marketing Association, a recognized network of local government communications. Greensboro ranked second among cities with a population of more than 180,000. This award recognizes the City’s website (Greensboro-nc.gov) for its digital interactivity of the overall website in the Communication and Marketing Tools category.

Among cities with a population larger than 250,000 people, the City of Greensboro was ranked as one of the top 10 digital city governments in 2017 and 2018 by the Center for Digital Government (CDG), a national research and advisory institute focused on information technology polices and best practices in state and local government. The CDG praised the City for its emphasis on resident services as its central mission.

Greensboro's Procurement Services Division, a section of the Financial and Administrative Services Department, has received the Sustained Professional Purchasing Award (SPPA) for eleven of the past twelve years, from 2007-18. The award is presented by the Carolinas Association of Governmental Purchasing to agencies having demonstrated overall excellence in a variety of purchasing standards including staff education, technology integration, product innovation, vendor relations, and exceptional stewardship of taxpayer funds. The award exemplifies the Purchasing Division's commitment to its profession and the residents it serves.

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AWARDS AND ACKNOWLEDGMENT

The City has participated in the Government Finance Officers Association of the United States and Canada (GFOA) Certificate of Achievement for Excellence in Financial Reporting program since 1975. Through the annual recertification process, the GFOA recognizes governmental units that issue their comprehensive annual financial reports (CAFR) substantially in conformity with the standards of the Governmental Accounting Standards Board. The City has received the Certificate of Achievement for forty-four consecutive years, (1975 through 2018). We believe our CAFR continues to conform to the Certificate of Achievement Program requirements, as an easily readable and efficiently organized financial report, and are submitting it to GFOA to determine its eligibility for this year’s Certificate of Achievement.

To conclude, a review of the financial statements of the City will indicate a sound financial position. The financial outlook for FY 2019-20 is stable, with moderate revenue growth forecasted and continued cost-saving measures. Present management efforts in long-range strategic and comprehensive planning should enable the City to generate adequate resources to meet future service demand levels, afford a stable financial position, protect the City's credit ratings, and maintain realistic tax burdens on the public. City staff is preparing to meet the challenges of the twenty-first century to exceed the expectations of citizens for service delivery.

The preparation of this report on a timely basis could not be accomplished without the efficient and dedicated services of the Administration, Financial Reporting, Treasury and Accounting Divisions of the Financial and Administrative Services Department. We would like to express our appreciation to all personnel who assisted and contributed to the preparation of this report. We would also like to thank the members of the City Council for their interest and support in planning and conducting the financial operations of the City in a responsible and progressive manner.

Respectfully submitted,

David Parrish City Manager

Richard L. Lusk Finance Director

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Government Finance Officers Association

Certificate of Achievement for Excellence in Financial Reporting

Presented to City of Greensboro North Carolina

For its Comprehensive Annual Financial Report for the Fiscal Year Ended

June 30, 2018

Executive Director/CEO

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City of Greensboro Organizational Chart

Greensboro City Council

City Manager City Attorney

Coliseum City Clerk

Assistant City Manager Assistant City Manager Assistant City Manager Assistant City Manager

Fire Communication & Engineering & Budget & Evaluation Inspections Marketing XX II

Financial & Guilford Metro Administrative Field Operations Human Relations 911 Services

Human Resources Planning Libraries & Museum Police

Information Transportation Technology Neighborhood Development GCJAC/PCRB*

Internal Audit* Water Resources Office of Workforce Development

Office of Equity & Inclusion* Parks & Recreation

Minority, Women Business Office of Arts & Enterprise* Cultural Affairs*

Revised: 07.01.2019

Greensboro City Council

Nancy Vaughan Yvonne Johnson Marikay Abuzuaiter Michelle Kennedy Mayor Mayor Pro Tem At Large At Large

Sharon Hightower Goldie Wells Justin Outling Nancy Hoffmann Tammi Thurm District 1 District 2 District 3 District 4 District 5

David Parrish Richard L. Lusk City Manager Finance Director

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Report of Independent Auditor

To the Honorable Mayor and Members of the City Council City of Greensboro, North Carolina

Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, the discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Greensboro, North Carolina (the “City”) as of and for the year ended June 30, 2019, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We did not audit the financial statements of the City of Greensboro ABC Board (the “Board”), a discretely presented component unit, Greensboro Housing Development (the “Partnership”), a discretely presented component unit, and the Greensboro Center City Corporation (the “Corporation”), a blended component unit. Those financial statements were audited by other auditors whose reports thereon have been furnished to us, and our opinion, insofar as it relates to the amounts included, is based solely on the report of another auditor. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. The financial statements of the Board, the Partnership, and the Corporation were not audited in accordance with Government Auditing Standards.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the City’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

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Opinions In our opinion, based on our audit and the report of other auditors, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the discretely presented component units, each major fund, and the aggregate remaining fund information of the City as of June 30, 2019, and the respective changes in financial position and cash flows, where appropriate, thereof and the respective budgetary comparison for the General Fund for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Emphasis of Matter As discussed in Note I.D.12 to the financial statements, the City dissolved the Greensboro Transit Authority (GTA), previously a component unit, and replaced it with the Greensboro Transit Advisory Commission (“GTAC”), which is now included in the financial statements as a major enterprise fund. Due to this change, and the related effects of implementing pension and OPEB-related accounting standards for GTAC employees, net position for business-type activities as of June 30, 2018 has been restated. There was also a restatement related to the Board implementing Governmental Accounting Standards Board Statement No. 75, Accounting and Financial Reporting for Post-Employment Benefits Other Than Pensions, in the current fiscal year. Our opinion is not modified with respect to these matters.

Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis and the required supplementary information, as listed in the table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary and Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The introductory section, combining and individual fund financial statements and schedules, statistical section, and Schedule of Expenditures of Federal and State Awards, as required by Title 2 U.S. Code of Federal Regulations, Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), and the State Single Audit Implementation Act, are presented for purposes of additional analysis and are not a required part of the basic financial statements.

The combining and individual fund financial statements and schedules, and the schedule of expenditures of federal and state awards are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, based on our audit and the procedures performed as described above, the combining and individual fund financial statements and schedules, and the schedule of expenditures of federal and state awards are fairly stated, in all material respects, in relation to the basic financial statements as a whole. 1b

The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated October 31, 2019, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

Raleigh, North Carolina October 31, 2019

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MANAGEMENT’S DISCUSSION AND ANALYSIS

As management of the City of Greensboro, we offer readers of our financial statements this narrative overview and analysis of the financial activities of the City of Greensboro for the fiscal year ended June 30, 2019. The Management Discussion and Analysis (MD&A) section is designed to assist the reader in focusing on significant financial issues, provide an overview of the City’s financial activity, identify changes in the City’s financial condition, identify material deviations from the financial budget, and identify individual fund issues or concerns.

Since the MD&A is structured to focus on the current year’s activities, resulting changes and currently known facts, we encourage readers to consider the information presented here in conjunction with the transmittal letter, which can be found beginning on page I of this report, and the City’s financial statements, which follow this section.

FINANCIAL HIGHLIGHTS

 The assets and deferred outflows of the City of Greensboro exceeded its liabilities and deferred inflows at the close of the fiscal year by $1.07 billion (net position).

The City’s net position increased by $89.0 million (9.1%) compared to FY 2018, restated. The prior year net position includes a prior period restatement increase of $57.8 million primarily due to the inclusion of the newly formed Greensboro Transit Advisory Commission (GTAC) in the FY 2019 financial statements whereby its predecessor, Greensboro Transit Authority, was reported as a separately presented discrete component unit for FY 2018 and prior. The governmental net position decreased ($13.2) million (5.6%) primarily due to increased bond fund expenditures related to the 2016 referendum and the business-type net position increased $102.2 million (12.3%) primarily due to the inclusion of GTAC, the increase in investment income due to the increase in interest rates and increase in cash and investments due to the issuance of Limited Obligation Bonds and General Obligation Bonds in fiscal year 2019. Growth in assessed property value and the increase in local sales tax also attributed to the increase in the city’s net position.

 The governmental activities program revenue was lower than last year’s results by approximately $8.9 million at $63.1 million. The difference is primarily related to FY 2018 donations from Greensboro Beautiful, and the transfer of a GTA facility to our Parks and Recreation department. General governmental revenues increased by $16.3 million (6.4%), due to increased investment income from an increase in cash from the 2018 General Obligation bond, and increased property and local option sales tax. The property tax rate remained the same as last year at $.6325 per $100 of assessed valuation. Base property values are projected to grow at 1.88% in FY 2020. Sales tax receipts increased 7.8% or approximately $4.1 million due to improved economic conditions in the region and an expanded sales tax base. Investment earnings were the equivalent of 2.85 cents on the property tax rate compared to 1.99 cents last year. For budgeting purposes, management projects interest earnings to modestly increase for the near-term planning cycle for conservatism. In the City’s business-type activities, total revenues increased by about $50.8 million primarily due to the inclusion of GTAC and an increase in Coliseum revenue which was offset by additional expenses.

During the year, the City’s governmental expenses at the entity-wide level were $326.3 million, an increase of $14.8 million or 4.8% more than last year, primarily due to increased transportation and neighborhood development and interest and fees on long term debt expenditures due to the issuance of the 2018 General Obligation Bonds. In all, expenses increased $52.4 million or 11.1% citywide with approximately $37.6 million of the increase affecting business-type activity. Increased expenditures in the 2a proprietary funds were primarily due to inclusion of the newly formed GTAC in the FY 2019 financial statements whereby its predecessor, Greensboro Transit Authority, was reported as a separately presented discrete component unit for FY 2018 and prior.

 Of the City’s various business-type service areas, water and sewer operations, the stormwater management program, and the parking enterprise fund generated sufficient revenues in their programs to cover expenses.

 As of the close of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $238.0 million, a net increase of approximately $77.6 million in comparison with the prior year fund balance. Approximately 67.5% of this total amount or $160.7 million is restricted or non-spendable and 32.5% or $77.3 million is Committed, Assigned or Unassigned, including $9.1 million appropriated for next year’s budget.

 At the end of the current fiscal year, the total fund balance for the General Fund specifically was $70.9 million. Approximately 45.1% or $32.0 million of this balance is restricted for accounts receivable and encumbrances and $4.9 million is assigned for appropriation next year. It is also the City’s policy to hold aside 9% of the subsequent year’s General Fund budget as “unassigned” to remain available for working capital, but it may also be appropriated for emergencies. This amounted to $27.5 million as of June 30, 2019. Amounts remaining that are either non-spendable, committed or assigned for other purposes totaled approximately $6.6 million.

 Charges for services for the City’s largest enterprise activity, the Water Resources Fund, comprising water and sewer operations increased $1.9 million or 1.7% in FY 2019. Rate increases of 3.50% for customers both inside and outside the city limits were in effect as of July 1, 2018. The cost of the City’s water supply purchased from three neighboring municipalities in the current year was approximately $3.0 million compared to $2.8 million last year, and is budgeted at $2.8 million in FY 2020 for purchases from Reidsville, Winston-Salem, and Burlington. These interlocal arrangements will continue to be in place to keep the water lines “fresh” and to ensure additional supply in emergency or drought conditions. Current year contributions of $919,643 were made to the Piedmont Triad Regional Water Authority (“PTRWA”) for certain ongoing administration and operations associated with the Randleman Dam, which is fully operational. The City initially contributed $33,544,093 in FY 2008 to support PTRWA’s Water Treatment Plant project. This project is being funded by a group of local government units and will supplement Greensboro’s water supply needs for the long term. The City’s total water rights in the Randleman Dam project, recorded as an Intangible Asset, are approximately $75.2 million, net of $15.7 million in amortization, as of June 30, 2019. Amortization of the water rights is calculated over a 50 year period. The City began receiving water from the PTRWA in October 2010, culminating a 20-year project that will ensure the City’s long-term water supply. Water purchases totaling $2.7 million were paid to the PTRWA in Fiscal Year 2019 and are budgeted at $2.6 million in FY 2020. At June 30, 2019 Revenue Bond debt service coverage was 2.08 times, exceeding the targeted goal of 2.0 times coverage.

 Certain deficit fund balances were reported in the Workforce Investment Act Fund ($5,473), State/Federal/Other Grants Fund ($1,382,085), Transportation Bond Fund – Series 2016 ($171,248), and the Water Resource Bond Fund – Series 2018 ($82,107), respectively, as of the end of the fiscal year. These deficits will be funded with federal and state grant reimbursements in FY 2020 and future issuance of General Obligation Bonds and Revenue Bonds.

 The General Fund budget for the fiscal year ended June 30, 2019 was adopted with a $.5856 per $100 assessed valuation property tax rate. The total FY 2019 general levy tax rate remained the 2b

same as the prior year at $.6325 and includes $.0069 for housing initiatives, $.0050 for economic development purposes and $.0350 for public transit. Two special historic district taxes and a downtown business district tax for certain additional improvements are also taxed as “special district” rates.

 As of June 30, 2019, the City had collected approximately $287.4 million or 100.5% of its amended budgeted General Fund revenues and had incurred $285.2 million or 96.4% of its amended budgeted expenditures. The net effect on General Fund fund balance was an increase of approximately $2.2 million this year.

 The City’s net OPEB liability was $114,454,833 at June 30, 2019, as reflected in the Statement of Net Position. The plan’s fiduciary net position increased by $2.6 million due to additional contributions beyond benefit payments ($1.2 million) and investment income.

 The State of North Carolina’s pension system, a multi-employer defined benefit plan in which the City participates, had an overall net pension liability as of June 30, 2019. The City’s total prorata share was $59,030,749 as reflected in the Statement of Net Position.

 The City’s Law Enforcement Special Separation Allowance (LEOSSA) net pension liability was $22,248,656 at June 30, 2019, as reflected in the Statement of Net Position

 In FY 2019 the City spent $27.2 million and $10.4 million for federal and state-funded grant programs, respectively, compared to $21.2 million in federal and $11.0 million in state funding last year.

Key Ratios

2019 2018 2017 2016 2015 $ Bonded Debt Per Capita $940 $655 $631 $563 $563

Legal Debt Margin as a % of Debt Limit 81.55% 79.21% 76.90% 83.47% 81.64%

% of Property Tax Levy Collected 99.32% 99.51% 99.41% 99.31% 99.28%

% Increase (Decrease) in Assessed Property Valuation 1.6% 5.5% 1.6% 1.6% (0.6%)

 Guilford County property tax revaluation occurs every five years. The most recent revaluation occurred in 2017, effective in FY 2018, noting a gain in the property base of approximately 5.5% above FY 2017 values. The next scheduled revaluation is planned for 2022, effective in FY 2023 and is expected to be within normal range of growth estimated around 5%.

 The City’s net governmental general obligation bonded debt increased by $86.9 million following the scheduled annual debt service payments and the issuance of tax exempt and taxable public improvement general obligation bonds for $135,360,000 and $10,400,000, respectively; increasing the debt per capita to $940. It is the City’s policy to maintain 25% or less in variable rate general

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debt outstanding to help partially offset lower interest earnings in recent years and actual results were within that target.

 The City of Greensboro maintained its AAA general obligation credit rating from Standard and Poor’s and Fitch Ratings along with its Aaa rating from Moody’s Investors Service.

Standard and Poor’s (S&P) General Obligation Bonds Currently AAA Target AAA Certificates of Participation Currently AA+ Target AA+ Enterprise System Revenue Bonds Currently AAA Target AAA Limited Obligation Bonds Currently AA+ Target AA+

Moody’s Investors Service (Moody’s) General Obligation Bonds Currently Aaa Target Aaa Certificates of Participation Currently Aa2 Target Aa1 Enterprise System Revenue Bonds Currently Aa1 Target Aaa Limited Obligation Bonds Currently Aa2 Target Aa1

Fitch Ratings (Fitch) General Obligation Bonds Currently AAA Target AAA Certificates of Participation Currently AA+ Target AA+ Enterprise System Revenue Bonds Currently AAA Target AAA Limited Obligation Bonds Currently AA+ Target AA+

OVERVIEW OF THE FINANCIAL STATEMENTS

This discussion and analysis are intended to serve as an introduction to the City of Greensboro’s basic financial statements. The financial statements include two kinds of statements that present different views of the City: 1) Government-Wide Financial Statements and 2) Fund Financial Statements. Both perspectives, however, are essential and complementary components that allow the user to address relevant questions, broaden a basis for comparison, and enhance the City’s accountability. Another element of the basic financial statements is the notes to the financial statements. In addition to the basic financial statements, this report contains other supplemental information that will enhance the reader’s understanding of the financial condition of the City of Greensboro. (See Figure 1)

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Figure 1 Required Components of Annual Financial Report

Management’s Basic Discussion and Financial Analysis Statements

Government- Notes to Wide Fund the Financial Financial Financial

Statements Statements Statements

Summary Detail

A. Government-Wide Financial Statements

The government-wide statements report both short-term and long-term information about the financial condition of the City as a whole, focusing on the government’s operational accountability. The accounting methods of these statements reflect that of private sector companies in that all governmental and business-type activities are consolidated into columns that add to a total for the primary government. The statement of net position reports the City’s net position and includes all, both current and non-current, assets and liabilities of the government. The difference between the two is reported as net position. Over time, increases or decreases in the City’s net position are one indicator of whether its financial health is improving or deteriorating. You will also need to consider other non-financial factors, such as changes in the City’s property tax base, local economy and service levels, to assess the overall health of the City. On the other hand, the statement of activities reports how net position has changed and includes all of the current year’s revenues and expenses regardless of when cash is received or paid.

The government-wide financial statements of the City are divided into three categories:

Governmental Activities - Most of the City’s basic services are included here, such as police, fire, transportation, environmental services, libraries, planning, neighborhood development, public improvements, parks and recreation and general administration. Property taxes along with sales and certain state-shared taxes and state and federal grants finance most of these activities.

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Business-Type Activities - The City charges fees to customers to help cover the costs of certain services it provides. The City’s water and sewer system and other stormwater resources, parking facilities, solid waste facilities and coliseum activities are included here.

Component Units - The City includes three discretely presented component entities in its report— Greensboro Housing Development Partnership, Inc., the Alcoholic Beverage Control Board (ABC),, and the Redevelopment Commission of Greensboro. During Fiscal Year 2019, the Greensboro Transit Authority, previously reported as a discrete component unit in Fiscal Year 2018 and prior, was dissolved and replaced with the newly formed GTAC which is reported as part of the business- type activities beginning in fiscal year 2019. The activities of Greensboro Center City Corporation are blended with those of the City. Although legally separate, these “component units” are important because of certain financial transactions that exist between the entities and the City and from extensive board member appointments by City officials.

The government-wide financial statements can be found on pages 3-6 of this report.

B. Fund Financial Statements

The fund financial statements provide more detailed information about the City’s major funds while focusing on fiscal accountability. Funds are accounting devices that the City uses to keep track of specific sources of funding and spending for particular purposes, as required by state law and bond covenants. City Council establishes many funds to assure control as well as good management and to exhibit proper usage of certain taxes and grants. The City of Greensboro, like all other governmental entities in North Carolina, also uses fund accounting to ensure and reflect compliance (or non- compliance) with finance-related legal requirements, such as the General Statutes or City ordinances.

The City has three types of funds:

Governmental Funds - Most of the City’s basic services are included in governmental funds, which focus on 1) how cash and other financial assets can readily be converted to cash flow in and out (that is, their liquidity) and 2) the balances left at year-end that are available for spending. This is the manner in which the financial budget is typically developed. Because this information provides a short-term view that helps determine whether there are more or fewer financial resources that can be spent in the near future to finance the City’s programs, as opposed to the government-wide statements which provides both a short and a long-term focus, a reconciliation is provided on the page following the fund statements that explains the relationship or differences between the two views.

The governmental fund financial statements can be found on pages 7-19 of this report.

Proprietary Funds - Services for which the City charges customers a fee are generally reported in proprietary funds. Accounted for like the government-wide statements, proprietary funds provide both long and short-term financial information and in addition include the statement of cash flows. A reconciliation statement is once more provided following these funds to explain the differences between them. The Internal Service Funds are an accounting device used to accumulate and allocate costs internally among the City’s various functions. Because these services predominantly benefit governmental rather than business-type functions, they have been included within governmental activities in the government-wide statements. Individual fund data for the Internal Service Funds is provided in the form of combining statements located on pages 134-158.

The proprietary fund financial statements can be found on pages 20-31 of this report.

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Fiduciary Funds - The City is the trustee, or fiduciary, for its LEOSSA Pension Trust, with all assets held and administered in a trust account invested with the State Treasurer. In addition, the Other Post- Employment (OPEB) Trust Fund was established as an irrevocable trust in FY 2009. The City is responsible for ensuring that the assets reported in these funds are used only for their intended purposes. All of the City’s fiduciary activities are reported in a separate statement of fiduciary net position and a statement of changes in fiduciary net position. We exclude these activities from the government-wide financial statements because the City cannot use these assets to finance its operations. The basic fiduciary fund financial statements can be found on pages 32-33 of this report.

C. Notes to the Financial Statements

The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found starting on page 37a of this report.

D. Required Supplementary Information

In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City of Greensboro’s progress in funding its obligation to provide pension benefits and other post-employment benefits other than pensions to certain of its retirees. Required supplementary information can be found on pages 38-44 of this report.

E. Other Supplementary Information

The combining statements referred to earlier in connection with nonmajor governmental funds and Internal Service Funds are presented immediately following the required supplementary information on pensions and other post-employment benefits. Combining and individual fund statements and schedules can be found starting on page 45 of this report.

GOVERNMENT-WIDE FINANCIAL ANALYSIS

Net position may serve over time as a useful indicator of a government’s financial position. In the case of the City of Greensboro, assets and deferred outflows exceeded liabilities and deferred inflows by $1,066,070,292 at the close of June 30, 2019 compared to $977,071,088 before restatement in the previous year. The net position for the City as a whole increased 9.1% at June 30, 2019 or net $89 million of which approximately $57.8 million of the increase represents a prior period restatement for the inclusion of the newly formed GTAC in the FY 2019 financial statements whereby its predecessor, Greensboro Transit Authority, was reported as a separately presented discrete component unit for FY 2018 and prior. The remaining increase was due to the inclusion of GTAC in current fiscal year and investment income due to the increase of cash to fund project provided by bond issuances during the year.

The largest portion of the City of Greensboro’s net position $939,371,090 (88.1%) represents its investment in capital assets (e.g. land, building, machinery, and equipment) less any related debt used to acquire those assets that are still outstanding. The resources needed to repay the debt must be provided from sources other than capital assets, since they cannot be used to liquidate the liabilities.

An additional portion of the City of Greensboro’s net position $180,651,668 (16.9%), represents resources that are subject to enabling legislation or external restrictions on how they may be used. Unrestricted net position, the residual amount of assets that can be used without constraints established by debt covenants, enabling legislation, or other legal requirements changed from ($36,255,827) at June 30, 2018 to ($53,952,466) (-5.1%), down approximately $17.7 million at the end of this year, with the 2g decrease largely attributable to the increase in General Obligation and Limited Obligation bond issuances in FY 2019. The City’s overall unrestricted cash levels increased by approximately $15.3 million as well to approximately $230.2 million. However, it should be noted that of the total reported “unrestricted” amount, only approximately $27.5 million is available and unobligated in the General Fund to provide working capital to finance day-to-day governmental activities and fund unforeseen circumstances in the future.

Table A-1 City of Greensboro’s Net Position (In thousands of dollars)

Governmental Business-Type Activities Activities Total % change 2019 2018 2019 2018 2019 2018 2018-2019 Current and Other Assets$ 329,962 $ 246,608 $ 230,698 $ 229,000 $ 560,660 $ 475,608 17.9% Capital Assets, Net 488,386 474,273 1,050,355 906,384 1,538,741 1,380,657 11.4% Total Assets 818,348 720,881 1,281,053 1,135,384 2,099,401 1,856,265 13.1%

Deferred Outflows of Resources 47,130 28,046 11,846 9,088 58,976 37,134 58.8%

Long-Term Debt Outstanding 378,283 278,214 336,728 329,420 715,011 607,634 17.7% Other Liabilities 223,585 214,815 120,819 85,957 344,404 300,772 14.5% Total Liabilities 601,868 493,029 457,547 415,377 1,059,415 908,406 16.6%

Deferred Inflows of Resources 27,627 6,756 5,265 1,166 32,892 7,922 315.2%

Net Position$ 235,983 $ 249,142 $ 830,087 $ 727,929 $ 1,066,070 $ 977,071 9.1%

Net Investment in Capital Assets$ 217,997 $ 225,022 $ 721,374 $ 611,259 $ 939,371 $ 836,281 12.3% Restricted 104,823 94,809 75,828 82,237 180,651 177,046 2.0% Unrestricted (86,837) (70,689) 32,885 34,433 (53,952) (36,256) 48.8% Total Net Position$ 235,983 $ 249,142 $ 830,087 $ 727,929 $ 1,066,070 $ 977,071 9.1%

For more detailed information, see the Statement of Net Position on pages 3-4.

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Table A-2 City of Greensboro’s Changes in Net Position (In thousands of dollars) Governmental Business-Type Activities Activities Total 2019 2018 2019 2018 2019 2018 Revenues: Program Revenues: Charges for Services$ 35,447 $ 38,609 $ 179,259 $ 165,538 $ 214,706 $ 204,147 Operating Grants and Contributions 21,096 20,391 4,420 25,516 20,391 Capital Grants and Contributions 6,564 13,029 9,930 4,087 16,494 17,116 General Revenues: Property Taxes 167,270 164,209 9,702 176,972 164,209 Other Taxes 88,084 81,920 1,351 89,435 81,920 Investment Income 7,891 1,768 6,411 1,909 14,302 3,677 Other 6,129 5,192 11,932 665 18,061 5,857 Total Revenues 332,481 325,118 223,005 172,199 555,486 497,317

Expenses: General Government 23,526 25,625 23,526 25,625 Public Safety 149,605 148,796 149,605 148,796 Transportation 33,174 25,865 33,174 25,865 Engineering and Building Maintenance 16,392 17,256 16,392 17,256 Field Operations 37,713 36,155 37,713 36,155 Environmental Services 204 99 204 99 Culture and Recreation 35,833 37,418 35,833 37,418 Neighborhood Development 10,632 7,050 10,632 7,050 Economic Opportunity 8,290 6,928 8,290 6,928 Interest, Fees on Long Term Debt 10,975 6,331 10,975 6,331 Water Resources 105,958 102,843 105,958 102,843 Stormwater Management 9,713 9,740 9,713 9,740 Coliseum 37,862 32,550 37,862 32,550 Solid Waste Management 13,979 12,626 13,979 12,626 Greensboro Transit Advisory Commission 27,598 27,598 Parking Facilities 2,802 2,600 2,802 2,600 Total Expenses 326,344 311,523 197,912 160,359 524,256 471,882

Net, Before Transfers$ 6,137 $ 13,595 $ 25,093 $ 11,840 $ 31,230 $ 25,435

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Governmental Business-Type Activities Activities Total (Continued) 2019 2018 2019 2018 2019 2018

Transfers$ (19,296) $ (7,165) $ 19,296 $ 7,165 $ $

Change in Net Position (13,159) 6,430 44,389 19,005 31,230 25,435

Beg. Net Position 249,142 335,314 727,929 728,795 977,071 1,064,109 Prior Period Restatement (92,602) 57,769 (19,871) 57,769 (112,473) Beg. Net Position, restated 249,142 242,712 785,698 708,924 1,034,840 951,636

Ending Net Position$ 235,983 $ 249,142 $ 830,087 $ 727,929 $ 1,066,070 $ 977,071

Table A-3 Summary of Financing/Interest Earnings - Governmental Activities (In thousands of dollars)

FY 2019 FY 2018 $ Change % Change Interest Revenue $7,891 $1,768 $6,123 346.3% Interest Expense 10,975 6,331 4,644 73.4% Net ($3,084) ($4,563) $1,479 32.4%

Summary of Financing/Interest Earnings - Business Activities (In thousands of dollars)

FY 2019 FY 2018 $ Change % Change Interest Revenue $6,411 $1,909 $4,502 235.8% Interest Expense 7,603 7,602 1 0.0% Net ($1,192) ($5,693) $4,501 79.1%

A. Governmental Activities

Governmental activities decreased the City’s net position by approximately $13.2 million, down from an approximate $6.4 million increase last year. Contributing to the decrease was increased expenses in Transportation, Neighborhood Development and interest, fees on long-term debt for project relating to the 2018 General Obligation Bond issued in FY 19. The Internal Service Funds are combined with governmental activities at the entity-wide level.

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Figure 2 Expenses and Program Revenues – Governmental (In thousands of dollars)

Table A-4 Net Cost – Governmental Activities (In thousands of dollars)

Total Cost Net Cost of Services of Services 2019 2018 % Change 2019 2018 % Change General Government$ 23,526 $ 25,625 -8.2%$ (14,208) $ (14,224) 0.1% Public Safety 149,605 148,796 0.5% (139,379) (137,046) -1.7% Transportation 33,174 25,865 28.3% (21,568) (11,973) -80.1% Engineering and Building Maintenance 16,392 17,256 -5.0% (14,689) (15,493) 5.2% Field Operations 37,713 36,155 4.3% (24,557) (21,825) -12.5% Environmental Services 204 99 106.1% 935 671 -39.3% Culture and Recreation 35,833 37,418 -4.2% (28,821) (26,506) -8.7% Neighborhood Development 10,632 7,050 50.8% (5,893) (3,665) -60.8% Economic Opportunity 8,290 6,928 19.7% (4,082) (3,101) -31.6% Total$ 315,369 $ 305,192 3.3%$ (252,262) $ (233,162) -8.2%

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B. Business-Type Activities

Business-type activities increased the City of Greensboro’s net position by $44 million, largely attributable to the inclusion of the newly formed GTAC in the FY 2019 financial statements. The General Fund continued to support the Coliseum and solid waste operations; however, water, sewer, stormwater, GTAC and parking fees were sufficient to cover operations.

1) Enterprise Funds

There are six separate and distinct operations accounted for in the Enterprise Funds: the Water Resources Utility Operations, Stormwater Management Services, Coliseum Complex, Solid Waste Management, Greensboro Transit Advisory Commission (GTAC) and Parking Facilities (Other Non-Major Fund).

Depreciation is computed on all depreciable plant and equipment and is reflected as an operating expense. Depreciation expense also includes amortization of software and licenses and other intangible assets, such as water rights. The following schedule reflects the change in net position before and after depreciation/amortization for each of the enterprises compared to the preceding year.

Table B-1 Change in Net Position– Business-Type Activities (In thousands of dollars)

Change in Net Position Change in Net Position Before After Depreciation/Amortization* Depreciation/Amortization* Enterprise Activities 2019 2018 2019 2018 Water Resources$ 48,269 $ 46,156 $ 19,189 $ 19,772 Stormwater Management 2,867 2,315 880 406 Coliseum 23,908 1,600 20,673 (1,632) Solid Waste Management 1,605 687 1,171 252 Greensboro Transit Advisory Commission 5,287 1,855 Parking Facilities 1,145 906 576 336 Total$ 83,081 $ 51,664 $ 44,344 $ 19,134

*Excludes the effect of Internal Service Fund chargebacks.

Major activities and/or changes in the Enterprise Fund operations are presented in the following comments.

2) Water Resources Fund Charges for current services totaled $116,906,359 compared to $114,964,118 for the preceding year, an increase of 1.7%. Operating expenses (excluding depreciation) increased by 5.1% and 2l

totaled $69,602,670 as compared to $66,207,811 for the preceding year. On July 1, 2018, water and sewer rates for average residential customers increased by 3.50% for customers both inside and outside the City limits, largely causing the improved revenue results. On July 1, 2019, water and sewer rates were increased again, up 4.00% for customers inside and outside the City limits, expected to generate approximately $5.3 million in additional revenues in FY 2020, in keeping with debt service coverage covenant targets of 2.0x coverage. Actual debt service coverage has exceeded 2.0x coverage in each of the past ten years, with a current coverage of 2.08x as of June 30, 2019.

The City continues to make a significant investment in water resource needs to replace and expand existing infrastructure and to meet new environmental regulations. The Water and Sewer utility comprises approximately one-third of the City’s overall capital improvement plan, with estimated $620 million in planned capital expenditures over the next ten year period. Ongoing system improvements are expected and are included in our long-range planning. Major projects include continued work at the Osborne Water Reclamation Facility to increase capacity, major electrical improvements to the Mitchell Pumping Station, ongoing water and sewer line rehabilitation, and expansion and renovations. The City utilizes the issuance of revenue bonds and pay-go funding to fund these projects. Pay-go funding is expected to be a little less than 50% and should cover a large part of anticipated future costs. The City has also established a capital reserve account to provide for future needs of the water and sewer system, with an account balance of approximately $12.7 million available in the restricted assets total of the Water Resources Fund as of June 30, 2019.

The Randleman Dam, Lake and Water Plant Project (managed by the Piedmont Triad Regional Water Authority, “PTRWA”) is designed to meet long-term future water needs. PTRWA constructed a 14.7 MGD Water Treatment Plant (expandable to 48 MGD) which began pumping treated water to Greensboro in early October 2010. Approximately $2.7 million was paid to PTRWA in FY 2019 for current water purchases from this supply. Greensboro has acquired certain water rights in this project, along with five other governmental units. Due to ongoing interlocal water purchase agreements with neighboring communities, conservation measures, the purchase of a small dam on the Haw River, along with approximately 7.83 million gallons of water per day available to be piped from Randleman, the City has been able to adequately manage its water supply with an annual average production capacity of 48 MGD.

3) Stormwater Management Fund Charges for current services totaled $9,896,486 as compared to $10,011,215 for the preceding year, a decrease of 1.2% due to a decrease in the amount of stormwater permits. Operating expenses (excluding depreciation) decreased by 1.4% and totaled $7,725,906 as compared to $7,830,552 for the preceding year. The stormwater program monitors and manages the quality and quantity of stormwater runoff and helps protect limited water resources throughout the City. Residential stormwater fees range from $1.50 to $3.90 based on the square footage of impervious property area owned and fund program operations as well as related capital improvement projects.

4) Coliseum Fund Charges for current services totaled $29,687,289 as compared to $23,938,373 for the preceding year, an increase of 24.0%. The total number of events in FY 2018-19 decreased from 951 to 941. The overall facility attendance stayed the same around 1.1 million; revenues increased due to large concert events yielding more admission revenue. The Greensboro arena has hosted eleven Men’s ACC Basketball Tournaments from 1995 to 2015, and Greensboro is scheduled to again host in 2020. Along with hosting the Women’s ACC Basketball Tournament from 2000 to 2016, 2m

the arena has hosted other NCAA Regional events. Greensboro is widely recognized as the “Tournament Town”. Operating expenses (excluding depreciation) totaled $32,980,178 as compared to $28,593,974 for the preceding year, an increase of 15.3%. The General Fund contributed $2,900,000 toward Coliseum activities this year, the same subsidy amount as last year, mainly for operations. The General Fund also contributed $192,531 for start-up expenses related to the Steven Tanger Center for the Performing Arts which is included in the Coliseum fund for reporting purposes. Revenues and expenses for a given year may fluctuate based on the nature of the associated event agreements.

5) Solid Waste Management Fund Charges for current services totaled $12,618,701 as compared to $10,669,680 for the preceding year, an increase of 18.3%. Operating expenses (excluding depreciation) totaled $13,499,214 as compared to $12,086,176 for the preceding year, an increase of 11.7% primarily due to an increase in contracted services due to increased revenue. The increase in charges for current services is due to increase in refuse, compost and construction disposal fees. The City entered into a contract with an Apex, North Carolina firm to convert methane gas at the White Street landfill into electricity and to sell it to Duke Energy. This gas is in surplus of the amount that the City currently gives to International Textile Group (ITG) in support of their manufacturing operation and local jobs. Over the 15-year term of the contract, it is estimated that the City will receive approximately $155,000 on average each year for a total estimate of $2.33 million, while continuing to provide ITG with its current supply of the landfill gas.

In October 2006, the City completed construction of a solid waste transfer station as an alternative to the White Street Landfill, at an estimated cost of $9 million. The City issued $8.4 million in special obligation bonds in November 2005 associated with this new facility, supported with a pledge of local sales tax revenue. In December 2009, $5.7 million of the remaining 1997 bonds (originally issued at $16 million for landfill expansion and improvements) were refunded. All bonds relating to the original 1997 landfill bond issue were retired as of FY 2012. Debt outstanding associated with the transfer station is $785,000 as of June 30, 2019. Debt service coverage by the local sales tax revenue well exceeds the 2.00 times covenant requirement, currently at more than 27 times covered.

6) Greensboro Transit Advisory Commission Beginning in FY 2019, the financial statements of the newly formed GTAC where included in the Proprietary Fund Statements. The GTAC’s predecessor, Greensboro Transit Authority, was reported as a separately presented discrete component unit for FY 2018 and prior. Charges for current services totaled $2,045,903 as compared to $2,178,622 in the preceding year, a decrease of 6.1%. Operating expense (excluding depreciation) totaled $24,166,476 as compared to $25,147,509, a decrease of 3.9%. This operation is primarily funded with grants and property tax.

7) Parking Facilities Fund Charges for current services totaled $3,237,112 as compared to $2,838,356 in the preceding year, an increase of 14.0%. Beginning on January 1, 2019 monthly parking rates in downtown parking decks increased $20 per month, from $65 per month to $85 per month, which has effected the improved revenue. Operating expenses (excluding depreciation) totaled $2,128,306 as compared to $1,923,864 for the preceding year, an increase of 10.6% due to increased maintenance and repair to the Greene Street and Davie Street parking decks. At the end of October 2019, the City issued $29,685,000 in Limited Obligation Bonds for a downtown parking deck. A second downtown parking deck is planned for fiscal year 2020 and will also be financed with additional Limited Obligation Bonds. The debt service for both Limited Obligation Bonds will be repaid 2n through parking fee revenue as well as property and sales tax from related downtown development.

Figure 3 Expenses and Program Revenues – Business-Type (In thousands of dollars)

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Figure 4 Revenues by Source – Business-Type Activities

2% 3% 5% 4% 5%

80%

FINANCIAL ANALYSIS OF THE CITY’S FUNDS

A. Governmental Funds

As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance- related legal requirements. As of June 30, 2019, governmental funds reported a combined fund balance of $238.0 million, an increase of approximately $77.6 million or 48.4% of the FY 2018 amount. The General Fund net results increased fund balance by $2.2 million, due primarily to an increase in property and local option sales tax. Internal Service Funds are reported with the governmental activities in the Statement of Net Position. Overall operating expenditures (excluding debt service) have increased approximately $20.6 million or 7.0% primarily due to increased spending for transportation, neighborhood development and public safety projects. Debt service expenditures at $26.2 million are up by approximately $3.4 million year to year. The current year transfers out exceeded transfers in by $26.4 million to support other operations including governmental debt proceeds transferred to support Coliseum capital improvements recorded in the Coliseum enterprise fund and matching support for state and federal grants. Fund balance of $160.7 million or 67.5% of the total amount is non-spendable or restricted to indicate that it is not available for spending due to GASB No. 54 classifications of (1) Non-Spendable which includes inventories, prepaid expenses, perpetual maintenance or assets held for resale (2) Restricted which includes amounts to liquidate contracts and purchase orders of the previous year, adherence to Stabilization for State Statute, amounts bound by debt covenants and third party grantor requirements. The adherence to State Statute limits the amount that may be appropriated by the governing board or for other restricted purposes. The remainder of fund balance represents amounts committed 5.0%, assigned 17.7% and unassigned 9.8% funds.

The General Fund is the chief operating fund of the City. At the end of the current fiscal year, total fund balance of the General Fund was $70.9 million. Of this amount, $1.6 million is non-spendable, $32.0 million is restricted, $4.8 million is assigned for appropriation in next year’s budget, $5.0 million is assigned for capital projects and $27.5 million or 9% of the subsequent years’ budget is 2p unassigned and retained for working capital purposes as well as unforeseen emergencies. General fund balance increased by $2.2 million due to an increased amount of property tax and local option sales tax received in FY 19.

The Debt Service Fund has a fund balance of $28.6 million, $5.4 million higher than last year, with a target level of $10 million. The fund covered debt service expenditures of approximately $23.0 million, amounting to approximately 7.1 cents of the general property tax rate. The total fund balance at June 30, 2019 is assigned for debt service in next year’s budget with the balance to be used to stabilize property tax rates from year to year, despite future increases in debt service amounts due to new voter-approved bonds, as well as to support the City’s fund balance goals.

Revenues for general governmental functions (General, Special Revenue, Capital Project and Debt Service Funds) amounted to $326,973,308 for the fiscal year ended June 30, 2019 and are comprised of various sources as shown in the following graph:

Figure 5 Revenues by Source – Governmental Activities

Property tax collections for the current City levy amounted to $182,041,066. The rate of collection as of the end of the fiscal year was 99.32% for the current year levy, with collections for levies in previous years approximating close to 100%. We expect the collection rate to remain at high levels due to the new statewide motor vehicle “Tax and Tag Together” system, implemented by North Carolina effective July 1, 2013. The State of North Carolina now collects property taxes on motor vehicles and remits to the City rather than collected by Guilford County under the old system.

The overall property tax rate remained the same in FY 2019. The FY 2019 budget was adopted with $0.0069 directly recorded in the Housing Partnership Fund. This amount replaces the General Fund transfer to the housing fund that was budgeted in previous years and allows the Housing Partnership Fund to remain a Special Revenue Fund in accordance with GASB Statement No. 54. The FY 2019 budget also provides for $0.005 for economic development purposes and $.035 for public transit support. The resulting General Fund tax rate was 58.56 cents per $100 valuation in FY 2019.

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Tax rates for the current and three preceding fiscal years were adopted, as follows, at the same overall rate, however, different allocations among purposes are noted:

2019 2018 2017 2016 General Fund $.5856 $.5856 $.5856 $.5872 Economic Development .0050 .0050 .0050 .0050 Housing Partnership .0069 .0069 .0069 .0069 Transit Authority .0350 .0350 .0350 .0334 Total Tax Rate $.6325 $.6325 $.6325 $.6325

The local option sales tax collection amounted to $56,704,224 as compared to the previous year's collection of $52,624,601, an increase of approximately $4.1 million or 7.8% from last year, however, we note a 59.0% gain in the ten year trend for this revenue source. Guilford County uses the “ad valorem” (property tax) method to distribute its allocated sales tax receipts to municipalities within the County and as a result, sales tax receipts for Greensboro may fluctuate from year to year, depending on the proportion of property tax levies of each of the municipalities within the County, compared to the total collected. Greensboro’s FY 2019 share of the sales tax distribution stayed the same due to Guilford County’s property tax rate remaining the same from FY 2018 to FY 2019. Healthy gains were also noted in retail sales activity this year. Local option sales taxes represent approximately 19.7% of overall general fund revenues in FY 2019.

The total sales tax rate in Guilford County is 6.75% with 4.75% charged for the general state rate and 2.00% charged for the local option. The local option sales tax currently in effect is distributed to the County as follows, with subsequent distribution to Greensboro and the other municipalities in the County, based on the “ad valorem” method:

Article 39 (1%) Point of Origin Article 40 (1/2%) Per Capita Article 42 (1/2%) Point of Origin

Greensboro’s occupancy tax collection of $4,684,823 has increased 76.2% over the ten-year period ending June 30, 2019 and generated a 10.5% gain this year. Construction of four new hotels are planned or underway in downtown Greensboro.

Intergovernmental Revenues amounted to $56,923,120 as compared to previous year revenues of $54,571,310. State-shared and grant revenues are a major source of funding for municipal operations and services, with intergovernmental revenues comprising 17.4% of total governmental revenues, as compared to 17.3% in the previous year.

Licenses and permits amounted to $3,683,537 compared to previous year revenues of $4,192,073 a decrease of 12.1%. The decrease is primarily due to a reduced number of construction permits during FY 2019.

Fines and forfeitures amounted to $1,896,318 as compared to the previous year's collection of $1,756,927, an increase of 7.9% over last year. The increase was primarily due to an increase in city code violation collections, partially offset by a decrease in parking violation collections.

Charges for current services amounted to $25,177,520 as compared to the previous year's revenue of $25,997,545 a decrease of 3.2%.

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Cash Management

The City's investment policy is to minimize credit and market risks while maintaining a competitive yield on its portfolio. Accordingly, deposits were either insured by federal depository insurance or collateralized. All collateral on deposits was held either by the City or its agent. All investments held by the City during the year and at June 30, 2019 are classified in various levels of fair value hierarchy as defined by the Governmental Accounting Standards Board.

The City's cash management program provided the City with interest earnings excluding fair market value adjustments totaling $7,906,665 for the fiscal year ended June 30, 2019 as compared to $5,439,939 in the prior year. Cash balances are analyzed daily to forecast the amount of funds required and amounts available for investment. The average amount of funds invested per month totaled $341,383,110 during the year. The City's average yield on investments for the year was 2.31%, up from 1.61% in the prior year. Interest earnings were the equivalent of nearly 2.85 cents on the tax rate for FY 2019 compared to 1.99 cents last year.

B. Proprietary Funds

Proprietary Funds provide the same type of information found in the government-wide financial statements but in more detail. Other factors concerning the finances of the proprietary funds have already been addressed in the discussion of the City of Greensboro’s business-type activities.

General Fund Budgetary Highlights

The General Fund budget for FY 2019 was adopted at $291,761,451 (excluding carry-forward encumbrances) and represents an increase of approximately 1.9% compared to the adopted FY 2018 budget. Encumbrances of $3,747,122 were carried forward from FY 2018 commitments. There were no significant variances from the original and final amended budgets for FY 2019.

As of June 30, 2019, the City had collected $287.4 million or 100.5% of its budgeted General Fund revenues and had incurred $285.2 million or 96.4% of its budgeted expenditures. Significant differences between actual results and the final amended budget are highlighted below:

 Overall General Fund revenues were higher compared to the final amended budget by approximately $1.5 million primarily due to increased interdepartmental charges, taxes revenues, fines and forfeitures collections, charges for current services along with other miscellaneous revenues. Revenue generated from licenses and permits were lower than the final amended budget by approximately $724 thousand.

 Actual expenditures compared to final budget were less by $7.4 million or approximately 2.9%, noting approximately $1.4 million in savings in general government costs, $1.8 million less for Engineering and Building Maintenance, and approximately $1.2 million savings in police operations.

 FY 2019 included a 3% average merit increase for employees, along with further implementation of compensation study recommendations.

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Capital Asset and Debt Administration

A. Capital Assets

The City’s investment in capital assets including intangible assets for both its governmental and business-type activities as of June 30, 2019, amounts to $1,538,741,450 (net of accumulated depreciation/amortization). These assets include buildings, roads and bridges, land, machinery and equipment, park facilities, vehicles and intangible assets such as easements, software and licenses and water rights among other types of assets. This investment represents an increase of $158,084,292 or 11.5% over the prior year.

Table C-1 Capital Assets (Net of Depreciation/Amortization - in thousands of dollars)

Governmental Business-Type Activities Activities Total 2019 2018 2019 2018 2019 2018 Land$ 101,581 $ 99,422 $ 62,151 $ 53,330 $ 163,732 $ 152,752 Construction in Progress 15,621 13,420 178,863 117,478 194,484 130,898 Intangible Assets - Easements 25,049 23,931 25,049 23,931 Buildings 101,729 101,221 229,552 166,144 331,281 267,365 Land Improvements 22,459 23,815 24,676 25,370 47,135 49,185 Improvements other than Buildings 82 85 4,052 4,280 4,134 4,365 Furniture, Fixtures, Machinery and Equipment 59,938 57,250 52,807 37,432 112,745 94,682 Infrastructure 186,963 179,020 397,470 401,942 584,433 580,962 Intangible Assets 13 40 75,735 76,477 75,748 76,517 Total Capital Assets $ 488,386 $ 474,273 $ 1,050,355 $ 906,384 $ 1,538,741 $ 1,380,657

This year’s major capital asset additions included:

 Business Activities asset net additions totaled over $107 million, with nearly all of the increase due to new construction in progress for utility system improvements and the Steven Tanger Center for the Performing Arts. Developers also donated approximately $762 thousand of the additional water and sewer infrastructure line improvements.

 General government additions were mainly furniture, fixtures, machinery and equipment at $18.7 million and right-of-ways, sidewalks, and streets at $13.1 million, some of which are bond funded.

Construction in progress for governmental-type and business-type capital assets totaled $15,620,930 and $178,863,571 respectively as of June 30, 2019 compared to $13,419,839 and $117,478,293 last year.

The City adopted the FY 2020-2029 Capital Improvements Program (CIP) totaling $1,255,949,078 for projects as outlined below:

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Table C-2 CIP Expenditures – 10 Year Plan

CIP Expenditure Category by Service Area % of Total CIP Infrastructure 81.7% Community Services 15.6% Public Safety 2.7% 100.0%

Table C-3 CIP Funding Sources – 10 Year Plan

CIP Funding Source % of Total CIP Authorized Bonds 10.8% Revenue Bonds 25.5% Enterprise Funds 24.3% Grants/Other 10.4% Unauthorized Bonds 29.0% 100.0%

Additional information on the City’s capital assets can be found in Note I.D.5 and IV.C of this report.

B. Long-Term Debt

As of June 30, 2019, the City had total bonded debt outstanding (at par) of $661,121,789 with $284,005,000 backed by the full faith, credit and taxing power of the City, $54,060,000 backed by Hotel/Motel occupancy tax of the City, $43,450,000 backed by Tanger Center parking fees, ticket fees, and hotel motel tax from the county, $278,821,789 backed by a revenue pledge of the Combined Enterprise System (currently Water Resources utility system) and $785,000 backed by a pledge of certain local sales tax revenues.

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Table D-1 General Obligation, Limited Obligation, Special Obligation and Revenue Bonds – Outstanding Debt (In thousands of dollars) Governmental Business-Type Activities Activities Total 2019 2018 2019 2018 2019 2018 General Obligation Bonds$ 284,005 $ 152,730 $ $ $ 284,005 $ 152,730 General Obligation BANS 50,622 50,622 Limited Obligation Notes 13,684 13,684 Limited Obligation Bonds 54,060 22,620 43,450 43,450 97,510 66,070 Certificate of Participation 5,335 5,335 Special Obligation Bonds 785 1,535 785 1,535 Revenue Bonds 241,650 257,785 241,650 257,785 Revenue BANS 37,172 8,553 37,172 8,553 Total$ 338,065 $ 244,991 $ 323,057 $ 311,323 $ 661,122 $ 556,314

The City’s total overall outstanding bonded long-term liabilities increased approximately $106.8 million during the current fiscal year due to the issuance of $145.8 million General Obligation Bonds for public improvements and $32.1 million of Limited Obligations Bonds related to coliseum improvements. As of June 30, 2019 the City had one outstanding construction period type note agreement that provide a privately placed commitment to fund capital projects as the expenditures are being incurred, effectively delaying actual long-term debt issuances for several years. An $85 million Combined Enterprise System Revenue BAN has a variable interest rate and will be refinanced in fiscal year 2020. In fiscal year 2014, the City’s Series 1994B variable rate general obligation swap matured, leaving $3.0 million in one “effective” hedging derivative instrument, which carried a negative mark-to-market valuation of ($52,895) as of June 30, 2019.

The City of Greensboro has a general obligation bond rating of Aaa from Moody’s Investors Service and a AAA rating from both S&P Global Ratings and Fitch Ratings. These bond ratings are a clear indication of the sound financial condition of the City of Greensboro. Greensboro’s credit worthiness is a major factor in securing the highest possible general obligation bond rating. This credit worthiness, according to recent rating reports, is the result of diversifying businesses, a stable and consistent growth in the taxpayer base, the conservative fiscal policies for reserve and debt management and the operating performance, as well as financial flexibility. Other factors considered and affecting the high-grade credit position is the history of budgeting, the moderate debt position and the oversight provided by the North Carolina Local Government Commission.

North Carolina general statutes limit the amount of general obligation debt that a unit of government can issue to 8 percent of the total assessed value of taxable property located within that government’s boundaries. The legal debt margin for the City of Greensboro is $1,822,980,487. The City has $89,074,302 in authorized, but unissued bonds at June 30, 2019 which includes $17.260 million for Transportation Bonds, $24.200 million for Parks and Recreational Facilities, $14.600 million for Housing Bonds, $31.830 million for Community and Economic Development, and $1.184 million for Greensboro Science Center Bonds. Each referendum item was voted on separately.

More detailed information about the City’s long-term liabilities is presented in Note IV.G.

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Economic Factors and Next Year’s Budgets and Rates

The Greensboro area economy continued to gain strength in several areas including median household income and housing activity. Seasonally adjusted unemployment increased from 4.1% in June 2018 to 4.3% in June 2019, with the national average at 3.7%. Hotel/Motel occupancy taxes continued to increase for the ninth year in a row. Sales taxes grew more than 7.7% compared to FY 2018.

The City’s adopted FY 2020 budget for all funds increased $23.1 million or 4.3% to approximately $566.6 million, primarily in the infrastructure area for Coliseum improvements and Water Resources improvements. The assessed base value of all real and personal property is projected to grow approximately 1.9% in FY 2020. The FY 2020 budget was adopted with a property tax rate of $.6625 cents per $100 of assessed value, an increase of $.03 cents, representing the first increase in the past ten years. The tax rate includes allocations of $.035, $.0069 and $.6156 to fund transit, housing and general government initiatives, respectively, along with another $.0050 to fund economic development projects, amounting to about $1.4 million each year. Funds for FY 2020 are fully allocated for a variety of items, which should spur additional economic growth.

City Council has reaffirmed its intention to continue to maintain the unassigned fund balance of the General Fund at 9% of the 2020 fiscal year budget, or approximately $27.5 million.

Budget Highlights for the Fiscal Year Ending June 30, 2020

Governmental Activities:

The General Fund budget for FY 2020 was adopted at approximately $305.0 million (up 4.5%) with approximately $9.1 million in increased appropriations over the amended FY 2019 budget. Overall the General Fund budget shows a net increase of 14.5 full-time equivalent positions, including several positions for a variety of General Fund Departments as well as 2 MWBE Specialists, 2 Code Enforcement Officers, 2 Branch Librarians, and an additional Zoning Enforcement Officer. The budget also estimates increased projected revenues of more than 5% primarily from property taxes. Major budgeted initiatives continue to include economic development and job creation. One half cent on the tax rate in the Economic Development Fund will generate approximately $1.4 million, set aside to serve as a funding source to support economic development programs such as the Guilford County Economic Development Alliance and programs identified through the Community Partners Board process.

Appropriated General Fund fund balance is $4.9 million, or 0.9% of the total budget, but has historically been mostly unused.

No significant services or programs were eliminated and few new service enhancements were funded. The budget included a 3% average merit increase for employees.

The second year budget for FY 2021 is balanced with a 66.25 cent tax rate, unchanged from the adopted FY 2020 rate.

In FY 2020, the Debt Service Fund budget increased from the prior adopted budget to approximately $34.9 million. The amount of general obligation debt service as a percentage of General Fund expenditures is projected to be 11.5% in FY 2020.

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Business-Type Activities:

The Water Resources budget increased approximately $2.5 million or 1.9% for the FY 2020 budget as compared to the previous budget. Transfers of $26.6 million to the Water Resources Capital Improvements Fund are budgeted to allow for capital expenditure needs in accordance with the long-term Capital Improvement Plan as well as improve the City’s water and sewer system, including rehabilitation of older water and sewer lines. Water Resources overall staffing levels are projected to increase by 6 FTEs; one Construction Projects Coordinator and five Sewer Construction Crew employees. Debt service payments will increase slightly $28.7 million to $28.9 million, supporting the enterprise’s planned debt program. Water Resources instituted a rate increase of 4.0% for customers inside and outside the City limits on July 1, 2019, which is expected to generate $5.3 million in additional revenues. The rate increase equates to approximately $1.81 more per month for customers inside the City and approximately $4.52 more per month for those outside and still positions Greensboro as having the second lowest water rates among North Carolina cities, (January 2019) with a water bill of 0.56% of the Median Household Income (MHI). Rates of less than 2% of MHI are considered to be favorable. Approximately 95% of all of the utility’s customers reside within the City limits.

Requests for Information

This financial report is designed to provide a general overview of the City of Greensboro’s finances and to demonstrate the City’s accountability for the money it receives. Questions concerning any information provided in this report or requests for additional information should be addressed to City of Greensboro Financial and Administrative Services Department, P.O. Box 3136, Greensboro, North Carolina 27402- 3136 or by calling (336) 373-2077, or by visiting our website at www.greensboro-nc.gov.

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City of Greensboro -3- Statement of Net Position Exhibit A-1 June 30, 2019 Page 1 of 2

Primary Government

Governmental Business-Type Component ASSETS Activities Activities Total Units

Cash and Cash Equivalents/Investments $ 149,607,861 $ 80,553,554 $ 230,161,415 $ 4,803,965 Receivables, Net Taxes 3,976,188 407,749 4,383,937 Accounts, Notes and Mortgages 30,662,841 22,828,409 53,491,250 14,040 Assessments 6,013 6,013 Intergovernmental 30,326,653 5,668,568 35,995,221 67,999 Interest 707,784 1,164,104 1,871,888 Real Estate Foreclosed 736,384 736,384 Internal Balances (7,242,651) 7,242,651 Due from Component Unit 1,147,643 1,147,643 Inventories 2,052,398 4,648,419 6,700,817 3,451,751 Miscellaneous 479,097 349,196 828,293 105,919 Assets Held for Resale 695,180 695,180 5,347,601 Self-Funded Retention Deposits 16,755,003 16,755,003 Long-Term Note Receivable 9,277,720 9,277,720 2,275,961 Restricted Assets: Temporarily Restricted: Cash and Cash Equivalents/Investments 97,075,004 93,488,883 190,563,887 Receivables, (Net): Accounts, Notes and Mortgages 448,964 6,000 454,964 Assessments 520,239 520,239 Intergovernmental 4,213,000 4,213,000 Interest 329,103 329,103 Permanently Restricted: Cash and Cash Equivalents/Investments 2,527,236 2,527,236 Capital Assets, Net Non-Depreciable: Land 101,581,077 62,150,583 163,731,660 4,179,181 Construction in Progress 15,620,930 178,863,571 194,484,501 Intangible Assets - Easements 25,049,277 25,049,277 Depreciable: Land Improvements 46,245,735 51,033,494 97,279,229 Accumulated Depreciation (23,786,985) (26,357,784) (50,144,769) Buildings 193,308,927 400,993,301 594,302,228 6,586,277 Accumulated Depreciation (91,579,684) (171,440,885) (263,020,569) (1,351,066) Improvements Other than Buildings 94,000 9,993,438 10,087,438 521,205 Accumulated Depreciation (11,750) (5,941,491) (5,953,241) (478,806) Furniture, Fixtures, Machinery and Equipment 182,339,235 109,432,241 291,771,476 2,814,199 Accumulated Depreciation (122,401,230) (56,625,312) (179,026,542) (2,224,494) Infrastructure 349,286,439 747,673,752 1,096,960,191 Accumulated Depreciation (162,323,051) (350,203,550) (512,526,601) Intangible Assets 4,168,935 97,100,876 101,269,811 Accumulated Amortization (4,156,356) (21,366,283) (25,522,639) Total Assets 818,347,820 1,281,052,823 2,099,400,643 26,113,732 DEFERRED OUTFLOWS OF RESOURCES Unamortized Bond Refunding Charges 791,278 3,253,360 4,044,638 Pension Deferrals 28,956,912 5,379,943 34,336,855 471,697 Current Year Pension Contributions 12,410,929 2,147,347 14,558,276 196,895 OPEB Deferrals 4,917,712 1,065,478 5,983,190 Accumulated Decrease in Fair Value of Hedging Derivatives 52,895 52,895 Total Deferred Outflows of Resources 47,129,726 11,846,128 58,975,854 668,592

The notes to the financial statements are an integral part of this statement. Primary Government -4- Exhibit A-1 Governmental Business-Type Component Page 2 of 2 LIABILITIES Activities Activities Total Units Accounts Payable$ 22,165,078 $ 15,204,978 $ 37,370,056 $ 3,085,530 Contracts/Retainage Payable 2,698,755 3,369,878 6,068,633 Intergovernmental Payable 4,334,837 67,051 4,401,888 Customer Deposits Payable 819,573 4,416,289 5,235,862 Pollution Remediation Payable 1,303,708 453,115 1,756,823 Accrued Interest Payable 3,635,512 795,384 4,430,896 Accrued Landfill Liability 500,000 500,000 Due to Primary Government 1,147,643 Miscellaneous 98,413 98,413 107,011 Prepaid Privilege License Fees 15,846 15,846 Prepaid Business License Fees 850 850 Unearned Grant Revenues 2,606,298 2,606,298 Unearned Contributions/Donations 296,741 296,741 Unearned Revenues 1,503,282 1,503,282 Liabilities Payable from Restricted Assets: Accounts Payable 202,603 11,908,215 12,110,818 Contracts/Retainage Payable 4,740,057 19,475,199 24,215,256 Accrued Interest Payable 151,805 151,805 Miscellaneous 1,455,326 1,455,326 Noncurrent Liabilities: Due Within One Year: General Obligation Bonds Payable 25,169,157 25,169,157 Lease Purchase and Other Financing Agreements Payable 4,656,272 182,904 4,839,176 Revenue Bonds Payable 19,266,931 19,266,931 Revenue BANS Payable 37,171,789 37,171,789 Limited Obligation Bonds Payable 1,979,656 1,979,656 Special Obligation Bonds Payable 785,000 785,000 Note Payable 237,652 Compensated Absences 7,601,101 1,493,936 9,095,037 Due in More Than One Year: Derivative Instrument Liability 52,895 52,895 General Obligation Bonds Payable 277,487,260 277,487,260 Limited Obligation Bonds Payable 54,637,046 43,450,000 98,087,046 Lease Purchase and Other Financing Agreements Payable 14,353,870 14,353,870 Revenue Bonds Payable 235,871,542 235,871,542 Notes Payable 6,673,590 Compensated Absences 5,865,151 939,861 6,805,012 Pollution Remediation Payable 3,836,712 3,836,712 Accrued Landfill Liability 26,660,557 26,660,557 Net OPEB Liability 94,072,867 20,381,966 114,454,833 Net Pension Liability 71,619,023 9,660,382 81,279,405 840,521 Unearned Revenues 2,275,961 Miscellaneous 1,120,170 Total Liabilities 601,867,895 457,546,776 1,059,414,671 15,488,078 DEFERRED INFLOWS OF RESOURCES Prepaid Taxes 27,403 27,403 Prepaid Assessments 17,282 17,282 Pension Deferrals 4,741,975 316,505 5,058,480 39,144 OPEB Deferrals 22,839,852 4,948,517 27,788,369 29,878 Total Deferred Inflows of Resources 27,626,512 5,265,022 32,891,534 69,022

NET POSITION Net Investment in Capital Assets 217,997,394 721,373,696 939,371,090 5,479,050 Restricted for: Assets Held for Resale 695,180 695,180 3,070,890 Stabilization by State Statute 65,463,019 65,463,019 Highway Improvements 2,270,228 2,270,228 Culture and Recreation 622,859 622,859 Capital Projects 75,828,759 75,828,759 Neighborhood Development 6,518,636 6,518,636 67,999 Economic Opportunity 9,209,279 9,209,279 Public Safety 761,469 761,469 Self-Funded Retention Deposits 16,755,003 16,755,003 Perpetual Care: Perpetual Maintenance - nonexpendable 2,527,236 2,527,236 Greensboro ABC Board Working Capital 1,594,521 Unrestricted (86,837,164) 32,884,698 (53,952,466) 1,012,764 Total Net Position $ 235,983,139 $ 830,087,153 $ 1,066,070,292 $ 11,225,224

The notes to the financial statements are an integral part of this statement. -5- Exhibit A-2 City of Greensboro Page 1 of 2 Statement of Activities For the Fiscal Year Ended June 30, 2019

Program Revenues Operating Capital Charges for Grants and Grants and Expenses Services Contributions Contributions

Functions/Programs Primary Government: Governmental Activities: General Government $ 23,526,208 $ 9,297,879 $ $ 20,185 Public Safety 149,604,819 8,648,821 1,570,803 5,610 Transportation 33,173,465 6,150,839 1,275,323 4,178,703 Engineering and Building Maintenance 16,392,115 1,703,433 Field Operations 37,712,886 5,857,572 7,298,172 Environmental Services 203,990 691,451 220,939 226,752 Culture and Recreation 35,832,943 3,063,465 1,816,463 2,132,374 Neighborhood Development 10,632,403 4,739,336 Economic Opportunity 8,290,379 33,321 4,175,387 Interest, Fees on Long-Term Debt 10,974,782

Total Governmental Activities 326,343,990 35,446,781 21,096,423 6,563,624

Business-Type Activities: Water Operations 51,968,201 58,090,821 381,109 Sewer Operations 53,989,561 62,688,768 381,109 Stormwater Management 9,713,405 9,897,486 Coliseum Operations 37,861,672 29,687,289 Solid Waste Management 13,979,283 12,618,701 Greensboro Transit Advisory Commission 27,598,123 3,039,357 4,419,941 9,168,243 Parking Facilities 2,801,565 3,237,112

Total Business-Type Activities 197,911,810 179,259,534 4,419,941 9,930,461

Total Primary Government $ 524,255,800 $ 214,706,315 $ 25,516,364 $ 16,494,085

Component Units: Greensboro Housing Dev. Partnership $ 9,736 $ 325 $ $ Greensboro Redevelopment Commission 153,705 59,739 Greensboro ABC Board 39,775,710 40,562,797

Total Component Units$ 39,939,151 $ 40,563,122 $ 59,739 $

General Revenues: Property Tax Local Option Sales Tax Vehicle Gross Receipts Tax Motor Vehicle Tax Hotel/Motel Occupancy Tax Electric Utility Sales Tax Piped Natural Gas Sales Tax Telecommunications Sales Tax Beer and Wine Tax Payment in Lieu of Taxes ABC Profit Distribution-unrestricted Intergovernmental - unrestricted Investment Income Gain on Sale of Capital Assets Miscellaneous Total General Revenues

Transfers In (Out) Total General Revenues Including Transfers

Change in Net Position

Net Position - July 1 Prior Period Restatement Net Position - July 1, (restated)

Net Position - June 30

The notes to the financial statements are an integral part of this statement. -6- Exhibit A-2 Page 2 of 2

Net (Expenses) Revenue and Changes in Net Position Primary Government Governmental Business-Type Component Activities Activities Total Units

$ (14,208,144) $ $ (14,208,144) $ (139,379,585) (139,379,585) (21,568,600) (21,568,600) (14,688,682) (14,688,682) (24,557,142) (24,557,142) 935,152 935,152 (28,820,641) (28,820,641) (5,893,067) (5,893,067) (4,081,671) (4,081,671) (10,974,782) (10,974,782)

(263,237,162) (263,237,162)

6,503,729 6,503,729 9,080,316 9,080,316 184,081 184,081 (8,174,383) (8,174,383) (1,360,582) (1,360,582) (10,970,582) (10,970,582) 435,547 435,547

(4,301,874) (4,301,874)

(263,237,162) (4,301,874) (267,539,036)

(9,411) (93,966) 787,087

683,710

167,269,868 9,701,626 176,971,494 56,704,224 56,704,224 382,624 382,624 1,034,859 1,351,187 2,386,046 4,684,823 4,684,823 17,360,679 17,360,679 1,252,904 1,252,904 5,419,150 5,419,150 1,245,218 1,245,218 526,660 526,660 4,530,893 4,530,893 48,817 48,817 7,891,005 6,410,826 14,301,831 3 12,500 1,022,419 11,931,648 12,954,067 413 269,374,143 29,395,287 298,769,430 12,916

(19,296,216) 19,296,216

250,077,927 48,691,503 298,769,430 12,916

(13,159,235) 44,389,629 31,230,394 696,626

249,142,374 727,928,714 977,071,088 69,458,552 57,768,810 57,768,810 (58,929,954) 249,142,374 785,697,524 1,034,839,898 10,528,598

$ 235,983,139 $ 830,087,153 $ 1,066,070,292 $ 11,225,224

The notes to the financial statements are an integral part of this statement. -7- Exhibit A-3 BALANCE SHEET Governmental Funds June 30, 2019 OTHER TOTAL (1) DEBT GOVERNMENTAL GOVERNMENTAL ASSETS GENERAL SERVICE FUNDS FUNDS Cash and Cash Equivalents/Investments$ 48,810,690 $ 28,348,475 $ 19,983,667 $ 97,142,832 Receivables: Taxes 3,859,534 116,654 3,976,188 Accounts, Notes and Mortgages 2,967,515 27,020,144 29,987,659 Assessments 6,013 6,013 Intergovernmental 24,282,341 287,895 4,624,784 29,195,020 Real Estate Foreclosed 736,384 736,384 Internal Receivables 673,850 673,850 Due from Component Unit 1,147,643 1,147,643 Inventories 1,194,881 1,194,881 Miscellaneous 394,095 85,000 479,095 Assets Held for Resale 95,180 95,180 Restricted Assets: Cash and Cash Equivalents/Investments 1,455,326 98,146,914 99,602,240 Receivables: Accounts, Notes and Mortgages 448,964 448,964 Total Assets$ 84,848,409 $ 28,636,370 $ 151,201,170 $ 264,685,949 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts Payable$ 2,713,133 $ $ 421,887 $ 3,135,020 Contracts/Retainage Payable 214,280 2,439,892 2,654,172 Intergovernmental Payable 3,804,549 1,753 3,806,302 Customer Deposits Payable 773,523 773,523 Internal Payables 673,850 673,850 Miscellaneous 98,413 98,413 Prepaid Privilege License Fees 15,846 15,846 Prepaid Business Permit Fees 850 850 Unearned Grant Revenues 3,975,171 3,975,171 Unearned Contributions/Donations 296,741 296,741 Liabilities Payable From Restricted Assets: Accounts Payable 202,603 202,603 Contracts/Retainage Payable 4,740,057 4,740,057 Miscellaneous 1,455,326 1,455,326 Total Liabilities 9,274,248 12,553,626 21,827,874 Deferred Inflows of Resources: Property Taxes Receivable 3,859,534 116,654 3,976,188 Notes and Mortgages Receivable 14,480 14,480 Other Accounts Receivable 822,153 6,013 828,166 Prepaid Taxes 27,403 27,403 Prepaid Assessments 17,282 17,282 Total Deferred Inflows of Resources 4,709,090 154,429 4,863,519 Fund Balances: Non-Spendable: Inventories 1,194,881 1,194,881 Miscellaneous Prepaid Expenditures 394,095 394,095 Perpetual Maintenance 2,527,236 2,527,236 Total Non-Spendable Fund Balance 1,588,976 2,527,236 4,116,212 Restricted: Stabilization by State Statute 32,000,861 294,495 33,167,663 65,463,019 Debt Covenants 88,628,038 88,628,038 Assets Held for Resale 95,180 95,180 Grantor Requirements - Highway Improvements 2,362,152 2,362,152 Total Restricted Fund Balance 32,000,861 294,495 124,253,033 156,548,389 Committed: For 911 Program 226,820 226,820 For Cemetery Maintenance 198,473 198,473 For Special Tax Districts 918,681 918,681 For Neighborhood Development 1,639,015 1,639,015 For Economic Opportunity 422,290 422,290 For Debt Service/Capital Projects 8,604,834 8,604,834 Total Committed Fund Balance 12,010,113 12,010,113 Assigned: Appropriated for Subsequent Year's Expenditures 4,853,059 3,243,948 964,594 9,061,601 For Debt Service 25,097,927 25,097,927 For Capital Projects 4,970,310 2,994,705 7,965,015 For Neighborhood Development 38,184 38,184 Total Assigned Fund Balance 9,823,369 28,341,875 3,997,483 42,162,727 Unassigned 27,451,865 (4,294,750) 23,157,115 Total Fund Balances 70,865,071 28,636,370 138,493,115 237,994,556 Total Liabilities, Deferred Inflows of Resources and Fund Balances$ 84,848,409 $ 28,636,370 $ 151,201,170 $ 264,685,949 (1) After internal receivables and payables have been eliminated.

The notes to the financial statements are an integral part of this statement. -8- Exhibit A-4

City of Greensboro Reconciliation of the Balance Sheet of Governmental Funds To the Statement of Net Position June 30, 2019

Total fund balances - governmental funds $ 237,994,556

Amounts reported for governmental activities in the Statement of Net Position are different because:

Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds. 431,163,486

Net pension liability - LGERS Plan. (45,688,619) Net pension liability - LEOSSA Plan. (22,248,656) Net OPEB liability (86,673,046)

Contributions and pension administrative costs are deferred outflows of resources on the Statement of Net Position: LGERS Plan 10,155,840 LEOSSA Plan 1,436,697

Internal service funds are used by management to charge the costs of equipment services, technical services, information services, metro communications, graphic services, employee risk retention, general risk retention and capital leasing to individual funds. The assets and liabilities of the internal service funds are included in governmental activities in the statement of net position. 75,765,736

Earned revenues considered deferred inflows of resources and unearned revenues in fund statements due to "availability" criteria. 6,187,710

Long-term liabilities included in net position (includes the addition of long-term debt and principal payments during the year.) (377,088,685)

Pollution Remediation Payable (1,303,708)

Pension related deferrals: LGERS Plan 23,947,447 LEOSSA Plan (1,662,279) OPEB Plan (16,512,375)

Miscellaneous adjustments to net position includes investment income receivable not reported in the governmental funds. 509,035

Net position of governmental activities $ 235,983,139

The notes to the financial statements are an integral part of this statement. -9- Exhibit A-5

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES Governmental Funds For the Fiscal Year Ended June 30, 2019

OTHER TOTAL DEBT GOVERNMENTAL GOVERNMENTAL GENERAL SERVICE FUNDS FUNDS

Revenues: Taxes$ 220,241,252 $ $ 8,950,119 $ 229,191,371 Intergovernmental 33,357,828 23,565,292 56,923,120 Licenses and Permits 3,683,537 3,683,537 Fines and Forfeitures 1,896,318 1,896,318 Charges for Current Services 18,145,358 7,032,162 25,177,520

Investment Income 4,071,541 761,002 4,832,543 Net Increase (Decrease) in the Fair Value of Investments 966,059 966,059 Total Investment Income 5,037,600 761,002 5,798,602

Miscellaneous 3,332,657 191,317 778,866 4,302,840

Total Revenues 280,656,950 5,228,917 41,087,441 326,973,308

Expenditures: Current: General Government 21,441,647 229,169 88,755 21,759,571 Public Safety 132,362,925 6,024,809 138,387,734 Transportation 9,702,495 35,610,789 45,313,284 Environmental Services 207,579 207,579 Engineering and Building Maintenance 15,432,244 752,230 16,184,474 Field Operations 37,426,292 37,426,292 Culture and Recreation 29,601,810 6,179,337 35,781,147 Neighborhood Development 154,037 11,002,427 11,156,464 Economic Opportunity 565,829 7,759,275 8,325,104 Intergovernmental 2,055,904 2,055,904 Debt Service: Principal Retirement 14,078,932 970,000 15,048,932 Interest, Fees on Long-Term Debt 8,904,326 2,288,446 11,192,772

Total Expenditures 248,743,183 23,212,427 70,883,647 342,839,257

Excess of Revenues Over (Under) Expenditures 31,913,767 (17,983,510) (29,796,206) (15,865,949)

Other Financing Sources (Uses): Debt Issuances: Limited Obligation Bonds Issued 26,760,000 26,760,000 Limited Obligation BANs Issued 566,690 566,690 Proceeds of Refunding Bonds 5,335,000 5,335,000 General Obligation Bonds Issued 48,668,047 98,450,995 147,119,042 Premium on Debt 3,346,364 8,109,599 11,455,963 Payment to Escrow Agent for Refunding of Debt (51,980,963) (19,405,247) (71,386,210) Transfers In 6,746,800 23,405,610 3,293,384 33,445,794 Transfers Out (36,495,366) (23,346,062) (59,841,428)

Total Other Financing Sources (Uses) (29,748,566) 23,439,058 99,764,359 93,454,851

Net Change in Fund Balances 2,165,201 5,455,548 69,968,153 77,588,902

Fund Balances - July 1 68,699,870 23,180,822 68,524,962 160,405,654

Fund Balances - June 30$ 70,865,071 $ 28,636,370 $ 138,493,115 $ 237,994,556

The notes to the financial statements are an integral part of this statement. -10- Exhibit A-6

City of Greensboro Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds To the Statement of Activities For the Fiscal Year Ended June 30, 2019

Amounts reported for governmental activities in the statement of activities are different because:

Net change in fund balances----total governmental funds.$ 77,588,902

Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlays and capital contributions exceeded depreciation in the current period, including amounts for disposals. 14,947,075

Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds. 2,940,294

The issuance of long-term debt (e.g., bonds, leases) provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of premiums, discounts, and similar items when debt is first issued, whereas these amounts are unearned and amortized in the statement of activities. Includes compensated absence activities. (103,558,917)

Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. This amount represents interest expense.(SA3)

Change in OPEB Obligation

Internal service funds are used by management to charge the costs of equipment services, technical services, information services, metro communications, graphic services, employee risk retention, general risk retention, and capital leasing to individual funds. The net revenue of certain activities of internal service funds is reported with governmental activities. 2,566,287

Some expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. Contributions to the pension plan in the current fiscal year are not included in the Statement of Activities, as well as certain deferred inflows and outflows and pollution remediation: LGERS Plan (2,065,965) LEOSSA Plan 1,285,752 OPEB Plan (852,546) Pollution Remediation (1,303,708)

Revenues earned in prior year that first became available in the current year in the government funds have been reclassed to beginning net position in the statement of activities. (4,706,409)

Change in net position of governmental activities$ (13,159,235)

The notes to the financial statements are an integral part of this statement.

General Fund

The General Fund is the principal fund of the City from which the major portion of the City's operations are financed. This fund finances the regular operation of all departments except Enterprise Fund and Internal Service Fund departments.

A summary of revenues and other financing sources and expenditures and other financing uses for the fiscal year ended June 30, 2019 is presented below:

Percent of Amount Total Revenues and Other Financing Sources

Taxes$ 220,241,252 76.6% Intergovernmental 33,357,828 11.6% Licenses and Permits 3,683,537 1.3% Fines and Forfeitures 1,896,318 0.7% Charges for Current Services 18,145,358 6.3% Miscellaneous 3,332,657 1.2% Other Financing Sources 6,746,800 2.3% Total Revenues and Other Financing Sources$ 287,403,750 100.0%

Expenditures and Other Financing Uses

General Government$ 21,441,647 7.5% Public Safety 132,362,925 46.4% Transportation 9,702,495 3.4% Engineering and Building Maintenance 15,432,244 5.4% Field Operations 37,426,292 13.1% Culture and Recreation 29,601,810 10.4% Neighborhood Development 154,037 0.1% Economic Opportunity 565,829 0.2% Intergovernmental 2,055,904 0.7% Other Financing Uses 36,495,366 12.8% Total Expenditures and Other Financing Uses$ 285,238,549 100.0%

-11- -12- Exhibit A-7 Page 1 of 8 General Fund Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Fiscal Year Ended June 30, 2019

Variance with Final Budget- Original Final Positive Budget Budget Actual (Negative) Revenues: Taxes: Ad Valorem Taxes-Current Year$ 149,163,000 $ 149,163,000 $ 148,891,161 $ (271,839) Ad Valorem Taxes-Prior Year 907,000 907,000 801,608 (105,392) State of NC RMV Taxes-Current Year 13,111,000 13,111,000 13,237,578 126,578 Interest on Past Due Taxes 451,000 451,000 425,616 (25,384) Local Option Sales Tax 55,843,000 55,843,000 56,502,665 659,665 Vehicle Gross Receipts Tax 344,000 344,000 382,624 38,624 Total Taxes 219,819,000 219,819,000 220,241,252 422,252

Intergovernmental: State Grants: Libraries 390,052 390,052 334,667 (55,385) State-Shared: Utility Taxes: Electric Utility Sales Tax 16,231,000 16,231,000 17,360,679 1,129,679 Piped Natural Gas Sales Tax 1,219,000 1,219,000 1,252,904 33,904 PEG Channel Support 95,446 95,446 107,974 12,528 Telecommunications Sales Tax 2,725,000 2,725,000 2,659,502 (65,498) Video Programming/Telecommunications Service Sales Tax 2,847,875 2,847,875 2,651,674 (196,201) Beer and Wine Tax 1,322,000 1,322,000 1,245,218 (76,782) State Reimbursements/Other: Court Fees 58,000 58,000 48,817 (9,183) Payment In Lieu of Taxes 521,746 521,746 526,660 4,914 Local Grants: Libraries 1,356,847 1,356,847 1,356,847 School Resource Officer Programs 1,064,051 1,064,051 1,061,054 (2,997) Environmental Programs 219,366 219,366 220,939 1,573 ABC Board Profit Distribution 4,235,000 4,235,000 4,530,893 295,893 Total Intergovernmental 32,285,383 32,285,383 33,357,828 1,072,445

Licenses and Permits: Privilege Licenses: Privilege Licenses-Current Year 18,800 18,800 18,848 48 Privilege Licenses-Prior Years 1,200 1,200 1,493 293 Business Permits: Business Permits-Current Year 4,000 4,000 3,800 (200) Business Permits-Prior Years 50 50 Motor Vehicle Tax 1,050,000 1,050,000 1,034,859 (15,141) Other Licenses and Permits 91,100 91,100 117,969 26,869 Construction Permits: Building Permits 1,458,965 1,458,965 914,706 (544,259) Electrical Permits 693,000 693,000 646,033 (46,967) Plumbing Permits 382,000 382,000 300,562 (81,438) Mechanical Permits 708,750 708,750 645,217 (63,533) Total Licenses and Permits 4,407,815 4,407,815 3,683,537 (724,278)

The notes to the financial statements are an integral part of this statement. -13- Exhibit A-7 Page 2 of 8 General Fund Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Fiscal Year Ended June 30, 2019

Variance with Final Budget- Original Final Positive Budget Budget Actual (Negative) Fines and Forfeitures: Parking Violations$ 780,000 $ 780,000 $ 571,712 $ (208,288) Library Fines 136,700 136,700 127,359 (9,341) City Code Violations 60,000 60,000 332,442 272,442 False Burglar Alarm Fines 800,000 800,000 864,805 64,805 Total Fines and Forfeitures 1,776,700 1,776,700 1,896,318 119,618

Charges for Current Services: Planning: Preliminary Plan Reviews 203,350 203,350 218,373 15,023 Final Plats/Declarations 31,320 31,320 24,753 (6,567) Rezoning Applications 80,955 80,955 59,830 (21,125) Other Planning Fees 51,075 51,075 49,535 (1,540) Police Department: Police Department Services 51,000 51,000 55,335 4,335 Tow-In Services 34,482 34,482 18,760 (15,722) Off-Duty Employment 350,000 350,000 367,449 17,449 Contracted Services 309,700 309,700 309,700 Fire Department: Hazardous Material Fees 20,000 20,000 18,440 (1,560) Fire Department Plan Reviews 75,000 75,000 86,071 11,071 Fire Code Reinspections 30,000 30,000 44,860 14,860 Miscellaneous Permits 151,420 151,420 143,524 (7,896) Inspections: Vacant Lot Cleaning Fees 192,000 192,000 200,022 8,022 Junked Auto Fees 14,000 14,000 26,924 12,924 Boarding Vacant Houses 30,000 30,000 20,585 (9,415) Housing Civil Penalties 50,000 50,000 47,114 (2,886) Re-inspection Fees 6,100 6,100 49,145 43,045 Transportation: State Highway System: Signals, Signs and Lights 707,000 707,000 823,154 116,154 Monthly Parking Fees 64,964 64,964 58,258 (6,706) Field Operations: State Highway System: Highway Maintenance 420,000 420,000 430,613 10,613 Mowing Services 88,560 88,560 88,560 Waste/Trash Collection 4,724,300 4,724,300 4,812,874 88,574 ABC Recycling Fees 70,000 70,000 85,450 15,450 Engineering and Building Maintenance: Plan Review/Water and Sewer/Roadways 90,000 90,000 139,782 49,782 Environmental Services: Hazardous Waste Disposal Fees 660,000 660,000 672,677 12,677 Parks and Recreation: Admissions and Charges 1,433,760 1,433,760 1,415,314 (18,446) Rental and Lease 609,390 609,390 585,237 (24,153)

The notes to the financial statements are an integral part of this statement. -14- Exhibit A-7 Page 3 of 8 General Fund Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Fiscal Year Ended June 30, 2019

Variance with Final Budget- Original Final Positive Budget Budget Actual (Negative) Charges for Current Services (Continued): Concessions$ 102,925 $ 102,925 $ 142,562 $ 39,637 Fishing, Hunting and Boating Fees 39,800 39,800 38,347 (1,453) Other Parks and Recreation Revenue 226,170 226,170 292,112 65,942 Library Fees 29,250 29,250 41,499 12,249 Interdepartmental Charges: Administrative Charges 4,572,532 4,572,532 4,593,572 21,040 Engineering Services 1,536,000 1,536,000 1,536,000 Rents 692,164 692,164 648,927 (43,237) Total Charges for Current Services 17,747,217 17,747,217 18,145,358 398,141

Miscellaneous: Sale of Assets 490,200 490,200 412,879 (77,321) Miscellaneous Receivables Revenue 32,000 32,000 61,779 29,779 Donations and Private Contributions 125,600 125,600 117,391 (8,209) Contracted Construction Projects 1,534,000 1,534,000 1,513,375 (20,625) Other Revenue 559,455 944,319 1,227,233 282,914 Total Miscellaneous 2,741,255 3,126,119 3,332,657 206,538

Appropriated Fund Balance 9,984,403 9,984,403 (9,984,403)

Total Revenues 288,761,773 289,146,637 280,656,950 (8,489,687)

The notes to the financial statements are an integral part of this statement. -15- Exhibit A-7 Page 4 of 8 General Fund Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Fiscal Year Ended June 30, 2019

Variance with Final Budget- Original Final Positive Budget Budget Actual (Negative) Expenditures: General Government: Legislative: Governing Body$ 409,610 $ 409,610 $ 414,505 $ (4,895) Clerk of Governing Body 612,087 616,160 637,266 (21,106) Community Relations 291,767 285,694 282,911 2,783 Total Legislative 1,313,464 1,311,464 1,334,682 (23,218)

Executive: City Manager 1,390,198 1,400,198 1,186,122 214,076 Internal Audit 430,644 430,644 420,586 10,058 Minority and Women's Business Enterprises 456,626 507,626 468,629 38,997 Office of Equity & Inclusion 370 (370) Total Executive 2,277,468 2,338,468 2,075,707 262,761

Human Relations 544,113 546,113 478,452 67,661

Human Resources: Administration 877,809 877,809 714,726 163,083 Employment 413,888 413,888 428,622 (14,734) Benefits 585,673 585,673 467,416 118,257 HRIS/Compensation/Compliance 452,601 452,601 534,362 (81,761) Learning and Development 679,245 679,245 624,806 54,439 Total Human Resources 3,009,216 3,009,216 2,769,932 239,284

Budget and Evaluation 805,191 805,191 682,026 123,165

Planning 2,438,081 2,359,182 2,129,730 229,452

Finance: Administration 801,781 801,781 737,905 63,876 Accounting 698,499 698,499 683,735 14,764 Financial Reporting 298,433 298,433 270,781 27,652 Procurement Services 576,789 576,789 684,373 (107,584) Collections 1,264,435 1,264,435 1,160,250 104,185 Treasury Management 532,049 532,049 564,265 (32,216) Total Finance 4,171,986 4,171,986 4,101,309 70,677

Legal 1,225,987 1,424,886 1,358,520 66,366

Communications 2,158,876 2,158,876 2,165,658 (6,782)

Information Technology: Administration 545,870 545,870 511,118 34,752 Geographic Information Services 628,970 628,970 578,808 50,162 IT - Operations 181,904 181,904 189,381 (7,477) Application Development 643,305 643,305 614,721 28,584 Enterprise Business Solutions 1,854,004 1,854,004 1,897,115 (43,111) Total Management Information Systems 3,854,053 3,854,053 3,791,143 62,910

Other General Government: NC Metropolitan Coalition 16,400 16,400 16,339 61 Faith Action ID 20,000 20,000 20,000 Nondepartmental 1,255,471 808,471 518,149 290,322 Total Other General Government 1,291,871 844,871 554,488 290,383

Total General Government 23,090,306 22,824,306 21,441,647 1,382,659

The notes to the financial statements are an integral part of this statement. -16- Exhibit A-7 Page 5 of 8 General Fund Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Fiscal Year Ended June 30, 2019

Variance with Final Budget- Original Final Positive Budget Budget Actual (Negative) Public Safety: Police: Administration$ 3,594,464 $ 3,737,471 $ 3,456,216 $ 281,255 Resource Management 10,285,425 10,288,875 9,574,219 714,656 Information Services 3,381,670 3,377,195 3,023,926 353,269 Field Operations 37,614,631 37,500,186 32,445,268 5,054,918 Criminal Investigations 9,925,184 9,925,184 10,210,474 (285,290) Special Operations 2,698,491 2,697,853 3,568,537 (870,684) Investigative Support 2,925,796 2,925,796 2,882,292 43,504 Vice/Narcotics 3,349,475 3,349,475 3,370,374 (20,899) Professional Standards 1,048,182 1,048,182 1,049,722 (1,540) Organizational Development 1,220,185 1,220,185 5,308,873 (4,088,688) Total Police 76,043,503 76,070,402 74,889,901 1,180,501 Fire: Administration 2,106,529 2,106,529 1,703,889 402,640 Training 1,053,043 1,079,143 1,513,142 (433,999) Fire Prevention 1,988,187 1,995,187 1,935,262 59,925 Emergency Services 41,809,616 42,226,648 42,008,607 218,041 Regulatory/Fleet Repair Service 5,107,870 5,068,702 5,123,016 (54,314) Stations and Buildings 397,025 786,785 781,784 5,001 Total Fire 52,462,270 53,262,994 53,065,700 197,294

Inspections: Building Inspections 3,014,068 3,014,068 2,922,117 91,951 Code Compliance 1,497,722 1,497,722 1,352,077 145,645 Local Ordinance Enforcement 168,060 168,060 133,130 34,930 Total Inspections 4,679,850 4,679,850 4,407,324 272,526

Total Public Safety 133,185,623 134,013,246 132,362,925 1,650,321

Transportation: Administration 1,552,535 1,552,535 1,440,880 111,655 Traffic Operations 3,553,253 3,553,253 3,494,860 58,393 Traffic Engineering 4,766,082 4,766,082 4,173,725 592,357 Transportation Planning 302,249 302,249 252,218 50,031 Galyon Depot 377,897 377,897 340,812 37,085 Total Transportation 10,552,016 10,552,016 9,702,495 849,521

Engineering and Building Maintenance: Administration 340,343 340,343 274,671 65,672 Engineering 4,686,309 4,672,309 4,515,106 157,203 Business and Technology 776,919 824,943 705,836 119,107 Central City Maintenance 3,012,075 3,854,349 3,316,048 538,301 Building Maintenance 5,199,007 6,163,669 5,787,417 376,252 Energy 4,353,481 1,364,435 833,166 531,269 Total Engineering and Building Maintenance 18,368,134 17,220,048 15,432,244 1,787,804

The notes to the financial statements are an integral part of this statement. -17- Exhibit A-7 Page 6 of 8 General Fund Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Fiscal Year Ended June 30, 2019

Variance with Final Budget- Original Final Positive Budget Budget Actual (Negative) Field Operations: Administration$ 4,006,864 $ 3,994,864 $ 3,598,746 $ 396,118 Materials Recovery Facility 59,835 59,835 59,805 30 Stormwater Utility Fee 1,960,104 1,960,104 1,961,637 (1,533) Solid Waste Collections 18,474,910 18,425,910 19,190,549 (764,639) Streets - Stormwater Maintenance 6,272,500 6,286,481 6,123,905 162,576 Right of Way Maintenance 5,677,001 5,801,001 5,423,834 377,167 Environmental Services 1,338,939 1,229,958 1,067,816 162,142 Total Field Operations 37,790,153 37,758,153 37,426,292 331,861

Culture and Recreation: Parks and Recreation: Administration 1,950,252 2,049,350 1,829,517 219,833 Planning 202,994 216,194 221,437 (5,243) Gillespie Golf Course 613,384 732,557 723,679 8,878 Greensboro Sportsplex 544,474 600,940 588,795 12,145 City Arts 617,251 623,497 631,668 (8,171) Program and Community Services 855,000 875,984 849,486 26,498 Neighborhood Playgrounds and Centers 2,033,530 2,486,206 2,553,642 (67,436) Swimming Pools 274,146 289,146 326,274 (37,128) Memorial Stadium 3,440 2,440 2,128 312 Hester Park 322,792 324,494 350,667 (26,173) Country Park 414,577 439,279 446,711 (7,432) Jaycee Park 272,631 278,131 263,287 14,844 Athletics 692,040 678,040 607,792 70,248 Turf/Athletic Field Maintenance 1,068,661 1,068,661 898,240 170,421 Regional Parks 102,675 112,475 179,052 (66,577) Lake Wardens 628,941 666,287 730,117 (63,830) Barber Park 483,966 477,994 506,244 (28,250) Equipment Maintenance 152,408 159,551 169,274 (9,723) Development and Maintenance 1,475,482 1,539,415 1,576,652 (37,237) Landscape and Beautification 1,184,327 1,185,736 1,253,328 (67,592) Carolyn Allen Park 531,244 563,244 598,236 (34,992) Price Park 4,959 3,039 3,786 (747) Keeley Park Operations 466,753 510,255 498,325 11,930 Trails and Greenways 309,489 305,489 331,564 (26,075) LeBauer Park 43,286 40,706 32,920 7,786 Tennis 133,410 103,410 112,735 (9,325) Arts Center 204,502 198,156 179,247 18,909 Simkins Indoor Sports Pavilion 125,656 146,656 128,193 18,463 Senior Programs 357,418 401,973 433,562 (31,589) Bryan Park Operations 989,955 861,459 897,527 (36,068) Youth First 449,947 444,657 454,519 (9,862) Volunteer Services 83,607 76,607 70,134 6,473 Total Parks and Recreation 17,593,197 18,462,028 18,448,738 13,290

The notes to the financial statements are an integral part of this statement. -18- Exhibit A-7 Page 7 of 8 General Fund Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Fiscal Year Ended June 30, 2019

Variance with Final Budget- Original Final Positive Budget Budget Actual (Negative) Library: Administration$ 2,806,845 $ 2,806,845 $ 2,462,452 $ 344,393 Main Library 1,945,957 1,945,957 1,853,254 92,703 Extension Services 6,063 6,063 5,920 143 Collection Inventory 924,867 924,867 927,969 (3,102) Benjamin Branch Library 307,515 324,703 305,548 19,155 Northeast Branch Library 412,152 453,403 414,807 38,596 Vance H. Chavis Branch Library 453,040 465,049 452,439 12,610 Hemphill Branch Library 447,689 472,088 466,426 5,662 Glenwood Branch Library 300,848 320,843 289,177 31,666 Kathleen Clay Edwards Branch Library 602,716 646,844 619,332 27,512 McGirt-Horton Branch Library 463,373 494,234 425,970 68,264 Historical Museum 956,992 956,992 885,236 71,756 Total Library 9,628,057 9,817,888 9,108,530 709,358

Other Culture and Recreation: Eastern Music Festival 40,000 40,000 40,000 Green Hill Center - NC ART 12,500 (12,500) Greensboro Science Center 1,085,000 1,085,000 1,085,000 Greensboro Sports Commission 85,000 85,000 85,000 Fun Fourth - Grassroots 37,000 37,000 27,954 9,046 Children's Museum 100,000 100,000 100,000 Blandwood Mansion 25,000 25,000 25,000 Greensboro Jaycees 11,000 11,000 9,527 1,473 Festival of Lights 34,501 34,501 40,556 (6,055) Downtown Greensboro Parks, Inc. 430,122 430,122 389,584 40,538 Out of Garden 40,000 40,000 40,000 Public Access - GCTV 193,985 193,985 189,421 4,564 Total Other Culture and Recreation 2,081,608 2,081,608 2,044,542 37,066

Total Culture and Recreation 29,302,862 30,361,524 29,601,810 759,714

Neighborhood Development Sanctuary House 50,000 50,000 37,500 12,500 Greensboro Housing Authority 120,000 120,000 116,537 3,463 Total Neighborhood Development 170,000 170,000 154,037 15,963

Economic Opportunity: Economic Development 1,080,005 1,021,106 425,217 595,889 Chamber of Commerce 149,471 149,471 140,612 8,859 Total Economic Opportunity 1,229,476 1,170,577 565,829 604,748

The notes to the financial statements are an integral part of this statement. -19- Exhibit A-7 Page 8 of 8 General Fund Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Fiscal Year Ended June 30, 2019

Variance with Final Budget- Original Final Positive Budget Budget Actual (Negative)

Intergovernmental: Guilford County: Tax Collections$ 793,500 $ 793,500 $ 833,435 $ (39,935) Animal Shelter and Animal Control 612,001 612,001 581,077 30,924 Environmental Health Control 5,500 5,500 5,500 State of NC RMV Collections 521,000 521,000 520,677 323 Educational Access Guilford County Schools 65,200 65,200 59,506 5,694 Piedmont Triad Regional Council 60,000 60,000 59,709 291 National Guard Armory 21,000 21,000 1,500 19,500 Total Intergovernmental 2,078,201 2,078,201 2,055,904 22,297

Total Expenditures 255,766,771 256,148,071 248,743,183 7,404,888

Excess of Revenues Over Expenditures 32,995,002 32,998,566 31,913,767 (1,084,799)

Other Financing Sources (Uses): Transfers In: State Highway Allocation Fund 5,646,000 5,646,000 5,646,000 Street Improvements Bond Fund 720,000 720,000 720,000 Economic Development Fund 327,800 327,800 327,800 Information Systems Fund 53,000 53,000 53,000 Total Transfers In 6,746,800 6,746,800 6,746,800

Transfers Out: Cemetery Operating Fund 435,706 435,706 435,706 State and Federal Grants Fund 3,564 3,564 Debt Service Fund 26,005,610 26,005,610 23,405,610 2,600,000 General Capital Improvements II Fund 575,000 575,000 575,000 Coliseum Fund 3,092,531 3,092,531 3,092,531 Solid Waste Management Fund 1,830,537 1,830,537 1,830,537 Guilford Metro Communications Fund 7,802,418 7,802,418 7,152,418 650,000 Total Transfers Out 39,741,802 39,745,366 36,495,366 3,250,000

Total Other Financing Sources (Uses) (32,995,002) (32,998,566) (29,748,566) 3,250,000

Excess of Revenues and Other Financing Sources Over Expenditures and Other Financing Uses$ $ 2,165,201 2,165,201

Fund Balance - July 1 68,699,870 68,699,870

Fund Balance - June 30 $ 70,865,071 $ 70,865,071

The notes to the financial statements are an integral part of this statement. -20- Exhibit A-8 Page 1 of 4 Statement of Net Position Proprietary Funds June 30, 2019

Business-Type Activities - Enterprise Funds Solid Water Stormwater Waste Resources Management Coliseum Management ASSETS Current Assets: Cash and Cash Equivalents/Investments$ 42,785,009 $ 5,169,098 $ 15,290,429 $ 10,266,921 Receivables (Net): Taxes Accounts, Notes and Mortgages 17,498,399 797,250 3,850,335 581,021 Intergovernmental 751,745 40,600 177,761 129,536 Interest 212,613 24,790 43,325 35,261 Inventories 4,507,219 38,078 14,727 Miscellaneous 1,017 348,179 Total Current Assets 65,756,002 6,031,738 19,748,107 11,027,466 Noncurrent Assets: Restricted: Cash and Cash Equivalents/ Investments 72,819,193 14,006,548 2,928,010 3,735,132 Receivables (Net): Accounts, Notes and Mortgages Assessments 520,239 Intergovernmental 1,236,256 628,955 Interest 263,164 42,602 9,439 13,894 Assets Held for Resale Self-Funded Retention Deposits Long-Term Note Receivable Capital Assets: Non-Depreciable: Land 21,368,617 1,040,757 19,196,956 5,953,501 Construction in Progress 115,878,014 174,894 59,845,583 13,749 Intangible Assets: Easements 23,405,235 1,644,042 Depreciable/Amortizable: Land Improvements 25,647,463 4,694,659 2,708,391 17,656,208 Buildings 240,099,665 4,127 98,061,849 7,809,422 Improvements Other than Buildings 9,466,486 330,599 21,327 Furniture, Fixtures, Machinery and Equipment 63,246,490 211,848 11,563,111 1,281,513 Infrastructure 628,850,394 118,823,358 Less Accumulated Depreciation (425,089,309) (70,653,787) (56,362,970) (18,111,036) Intangible Assets: Software and Licenses 5,505,340 441,548 Water Rights 90,968,465 Less Accumulated Amortization (20,877,935) (381,897) Total Noncurrent Assets 853,307,777 70,048,699 138,909,923 18,373,710 Total Assets 919,063,779 76,080,437 158,658,030 29,401,176

DEFERRED OUTFLOWS OF RESOURCES Unamortized Bond Refunding Charges 3,253,360 Pension Deferrals 3,078,386 583,197 1,184,146 327,761 Current Year Pension Contributions 1,228,705 232,777 472,639 130,822 OPEB Deferrals 639,736 150,166 163,033 65,692 Total Deferred Outflows of Resources 8,200,187 966,140 1,819,818 524,275

(1) After internal receivables and payables have been eliminated.

The notes to the financial statements are an integral part of this statement. -21- Exhibit A-8 Page 2 of 4

Greensboro Other Transit Advisory Enterprise (1) Internal Commission Fund Totals Service Funds

$ 3,070,971 $ 3,971,126 $ 80,553,554 $ 52,465,029

407,749 407,749 31,094 70,310 22,828,409 675,182 4,558,822 10,104 5,668,568 1,131,633 835,649 12,466 1,164,104 198,748 88,395 4,648,419 857,517 349,196 8,992,680 4,064,006 115,619,999 55,328,109

93,488,883

6,000 6,000 520,239 2,347,789 4,213,000 4 329,103 600,000 16,755,003 9,011,179 266,541 9,277,720

1,670,606 12,920,146 62,150,583 1,840,011 93,430 2,857,901 178,863,571 540,562

25,049,277

269,833 56,940 51,033,494 974,506 35,001,382 20,016,856 400,993,301 3,289,783 9,805 165,221 9,993,438 94,000 32,059,398 1,069,881 109,432,241 158,931,857 747,673,752 (24,324,778) (16,027,142) (610,569,022) (108,447,983)

136,305 49,218 6,132,411 830,969 90,968,465 (57,233) (49,218) (21,366,283) (830,969) 56,223,716 21,326,348 1,158,190,173 74,577,739 65,216,396 25,390,354 1,273,810,172 129,905,848

3,253,360 97,309 109,144 5,379,943 2,050,394 38,840 43,564 2,147,347 818,392 22,858 23,993 1,065,478 386,830 159,007 176,701 11,846,128 3,255,616

(Continued) -22- Exhibit A-8 Page 3 of 4 Statement of Net Position (continued) Proprietary Funds June 30, 2019

Enterprise Funds Solid Water Stormwater Waste Resources Management Coliseum Management LIABILITIES Current Liabilities: Accounts Payable$ 1,324,675 $ 3,462 $ 13,852,972 $ 23,869 Contracts/Retainage Payable 399,233 545,333 Intergovernmental Payable 3,174 55,806 Unearned Revenues 1,503,282 General Obligation Bonds Payable Revenue Bonds Payable 19,266,931 Revenue BANs Payable 37,171,789 Special Obligation Bonds Payable 785,000 Lease-Purchase and Other Financing Agreements Payable 182,904 Accrued Landfill Liability 500,000 Accrued Pollution Remediation Liability 453,115 Interest Payable 791,539 574 3,271 Customer Deposits Payable 4,141,509 213,474 Compensated Absences Payable 924,567 205,061 188,176 103,494 Payable from Restricted Assets: Accounts Payable Total Current Liabilities 64,023,417 421,997 15,783,714 2,414,082 Noncurrent Liabilities: Payable from Restricted Assets: Accounts Payable Contracts/Retainage Payable 14,116,567 28,489 5,047,179 Interest Payable 151,805 General Obligation Bonds Payable Revenue Bonds Payable 235,871,542 Limited Obligaton Bonds Payable 43,450,000 Lease-Purchase and Other Financing Agreements Payable Accrued Landfill Liability 26,660,557 Accrued Pollution Remediation Liability 2,736,292 1,100,420 Compensated Absences Payable 406,425 85,181 343,034 63,813 Net OPEB Liability 12,237,763 2,872,592 3,118,731 1,256,643 Net Pension Liability 5,527,639 1,047,205 2,126,288 588,537 Total Noncurrent Liabilities 270,896,228 4,033,467 54,237,037 29,669,970 Total Liabilities 334,919,645 4,455,464 70,020,751 32,084,052

DEFERRED INFLOWS OF RESOURCES Pension Deferrals 181,103 34,310 69,664 19,282 OPEB Deferrals 2,971,194 697,434 757,193 305,099 Total Deferred Inflows of Resources 3,152,297 731,744 826,857 324,381

NET POSITION Net Investment in Capital Assets 492,075,236 55,999,549 93,540,676 13,839,684 Restricted for: Capital Projects 58,059,072 14,020,661 3,749,026 Assets Held for Resale Self-Funded Retention Deposits Unrestricted 39,057,716 1,839,159 (3,910,436) (20,071,692) Total Net Position $ 589,192,024 $ 71,859,369 $ 89,630,240 $ (2,482,982)

(1) After internal receivables and payables have been eliminated. -23- Exhibit A-8 Page 4 of 4

Greensboro Other Transit Advisory Enterprise (1) Internal Commission Fund Totals Service Funds

$ $ $ 15,204,978 $ 19,030,058 2,425,312 3,369,878 44,583 8,071 67,051 528,535 1,503,282 459,711 19,266,931 37,171,789 785,000

182,904 4,011,272 500,000 453,115 795,384 718 61,306 4,416,289 46,050 44,192 28,446 1,493,936 577,236

9,387,671 9,387,671 2,477,575 9,477,423 94,598,208 24,698,163

2,520,544 2,520,544 2,464 280,500 19,475,199 151,805 17,007 235,871,542 43,450,000

12,016,870 26,660,557 3,836,712 26,921 14,487 939,861 422,248 437,259 458,978 20,381,966 7,399,821 174,731 195,982 9,660,382 3,681,748 3,161,919 949,947 362,948,568 23,537,694 5,639,494 10,427,370 457,546,776 48,235,857

5,725 6,421 316,505 120,625 106,162 111,435 4,948,517 1,796,595 111,887 117,856 5,265,022 1,917,220

44,858,748 21,059,803 721,373,696 40,717,876

75,828,759 600,000 16,755,003 14,765,274 (6,037,974) 25,642,047 24,935,508 $ 59,624,022 $ 15,021,829 $ 822,844,502 $ 83,008,387

-24- Exhibit A-9

City of Greensboro Reconciliation of the Statement of Net Position-Proprietary Funds To the Statement of Net Position June 30, 2019

Net position - proprietary funds $ 822,844,502

Amounts reported for business-type activities in the statement of net position are different because:

Internal service funds 7,242,651

Net position of business-type activities$ 830,087,153

The notes to the financial statements are an integral part of this statement. -25- Exhibit A-10 Page 1 of 2 Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds For the Fiscal Year Ended June 30, 2019

Business-Type Activities - Enterprise Funds Solid Water Stormwater Waste Resources Management Coliseum Management Operating Revenues: Charges for Current Services$ 116,906,359 $ 9,896,486 $ 29,687,289 $ 12,618,701 Other Operating Revenues 3,754,332 202,931 1,223,418 301,969 Total Operating Revenues 120,660,691 10,099,417 30,910,707 12,920,670

Operating Expenses: Personal Services 16,925,606 3,124,405 6,431,215 1,733,704 Fringe Benefits 7,482,385 1,598,919 2,005,207 780,486 Maintenance and Operations 45,194,679 3,002,582 24,543,756 10,954,552 Claims and Expenses 30,472 Depreciation/Amortization 29,080,866 1,987,499 3,234,560 433,564 Total Operating Expenses 98,683,536 9,713,405 36,214,738 13,932,778

Operating Income (Loss) 21,977,155 386,012 (5,304,031) (1,012,108)

Nonoperating Revenues (Expenses): Investment Income 2,489,044 332,098 828,166 242,695 Net Increase (Decrease) in the Fair Value of Investments 1,192,275 160,861 (64,419) 114,497 Total Investment Income 3,681,319 492,959 763,747 357,192

Miscellaneous Nonoperating Revenue 9,248 9,850,844 73,148 Property Tax Motor Vehicle Tax Grants/In Kind Services Interest Expense (5,847,105) (1,682,565) (73,625) Refunds and Recoveries 109,650 Inventory Gain (Loss) 10,935 (3,621) (1,645) Gain (Loss) on Disposal of Capital Assets (59,370) 1,000 Amortization of Underwriters' Expense (1,085,579) Miscellaneous Nonoperating Expense (370,182) 98,096 (2,475) Total Nonoperating Revenues (Expenses) (3,551,084) 493,959 9,026,501 352,595

Income (Loss) Before Contributions and Transfers 18,426,071 879,971 3,722,470 (659,513)

Capital Contributions 762,218

Transfers In 16,950,656 1,830,537 Transfers Out Change in Net Position 19,188,289 879,971 20,673,126 1,171,024

Net Position - July 1 570,003,735 70,979,398 68,957,114 (3,654,006)

Prior Period Adjustment

Net Position - July 1, restated 570,003,735 70,979,398 68,957,114 (3,654,006)

Net Position - June 30$ 589,192,024 $ 71,859,369 $ 89,630,240 $ (2,482,982)

The notes to the financial statements are an integral part of this statement. -26- Exhibit A-10 Page 2 of 2

Greensboro Other Transit Advisory Enterprise Internal Commission Fund Totals Service Funds

$ 2,045,903 $ 3,237,112 $ 174,391,850 $ 90,184,370 993,454 30,225 6,506,329 4,887,488 3,039,357 3,267,337 180,898,179 95,071,858

627,385 625,530 29,467,845 10,722,648 249,302 263,785 12,380,084 4,457,174 23,289,789 1,176,920 108,162,278 19,003,038 62,071 92,543 52,055,065 3,431,647 569,538 38,737,674 14,751,157 27,598,123 2,697,844 188,840,424 100,989,082

(24,558,766) 569,493 (7,942,245) (5,917,224)

1,008,845 86,362 4,987,210 1,406,654

20,402 1,423,616 489,211 1,008,845 106,764 6,410,826 1,895,865

459,003 10,392,243 250,444 9,701,626 9,701,626 1,351,187 1,351,187 13,588,184 13,588,184 (7,603,295) (645,941) 109,650 (203,850) (198,181) 54,067 (6,040) 840 (63,570) 649,826 (1,085,579) (101,164) (375,725) (774,094) 25,898,955 6,440 32,227,366 1,430,167

1,340,189 575,933 24,285,121 (4,487,057)

762,218

564,250 19,345,443 7,207,921 (49,227) (49,227) (108,503) 1,855,212 575,933 44,343,555 2,612,361

14,445,896 720,732,137 80,396,026

57,768,810 57,768,810

57,768,810 14,445,896 778,500,947 80,396,026

$ 59,624,022 $ 15,021,829 $ 822,844,502 $ 83,008,387

-27- Exhibit A-11

City of Greensboro Reconciliation of the Statement of Revenues, Expenses, and Changes in Net Position-Proprietary Funds To the Statement of Activities For the Fiscal Year Ended June 30, 2019

Amounts reported for business-type activities in the statement of activities are different because:

Net change in fund balances----total proprietary funds.$ 44,343,555

Internal service funds are used by management to charge the costs of fleet management and management information systems to individual funds. The net revenue (loss) of certain activities of internal service funds is reported with business-type activities. 46,074

Change in net position of business-type activities$ 44,389,629

The notes to the financial statements are an integral part of this statement. -28- Exhibit A-12 Page 1 of 4 Statement of Cash Flows Proprietary Funds For the Fiscal Year Ended June 30, 2019

Business-Type Activities - Enterprise Funds Solid Water Stormwater Waste Resources Management Coliseum Management Cash Flows from Operating Activities: Receipts from Customers$ 116,681,686 $ 9,815,762 $ 33,635,793 $ 12,518,757 Payments to Suppliers (43,068,832) (3,013,707) (25,562,510) (10,418,942) Payments to Employees (23,872,478) (4,617,428) (8,353,561) (2,477,456) Other Operating Revenues 3,754,332 29,437 11,698,979 301,969 Other Receipts 118,898 73,148 Net Cash Provided by (Used for) Operating Activities 53,613,606 2,214,064 11,418,701 (2,524)

Cash Flows from Noncapital Financing Activities: Subsidies and Transfers In 16,950,656 1,830,537 Subsidies and Transfers Out Net Cash Provided by Noncapital Financing Activities 16,950,656 1,830,537

Cash Flows from Capital and Related Financing Activities: Capital Debt Issued 28,619,118 Acquisition and Construction of Capital Assets (75,258,798) (1,307,452) (40,187,905) (129,551) Acquisition of Intangible Assets (919,643) Proceeds from Sale of Capital Assets 1,718 1,000 Principal Paid on Capital Debt (16,135,000) (347,308) (750,000) Interest and Fiscal Charges Paid on Capital Debt (10,286,270) (1,447,722) (79,225) Net Cash Used for Capital and Related Financing Activities (73,978,875) (1,306,452) (41,982,935) (958,776)

Cash Flows from Investing Activities: Investment Income 3,534,135 469,289 736,525 338,929 Net Cash Provided by Investing Activities 3,534,135 469,289 736,525 338,929

Net Increase (Decrease) in Cash and Cash Equivalents (16,831,134) 1,376,901 (12,877,053) 1,208,166

Balances - July 1 132,435,336 17,798,745 31,095,492 12,793,887 Balances - June 30$ 115,604,202 $ 19,175,646 $ 18,218,439 $ 14,002,053

Reconciliation of Cash and Cash Equivalents/Investments: Cash and Cash Equivalents/Investments - Current$ 42,785,009 $ 5,169,098 $ 15,290,429 $ 10,266,921 Cash and Cash Equivalents/Investments - Restricted 72,819,193 14,006,548 2,928,010 3,735,132 Total Cash and Cash Equivalents/Investments - June 30$ 115,604,202 $ 19,175,646 $ 18,218,439 $ 14,002,053

The notes to the financial statements are an integral part of this statement. -29- Exhibit A-12 Page 2 of 4

Greensboro Other Transit Advisory Enterprise Internal Commission Fund Totals Service Funds

$ 2,712,144 $ 3,200,777 $ 178,564,919 $ 86,170,530 (22,432,573) (1,247,863) (105,744,427) (69,762,318) (856,322) (889,453) (41,066,698) (14,867,125) 30,225 15,814,942 26,093,454 26,285,500 5,137,931 5,516,703 1,093,686 73,854,236 6,679,018

613,895 19,395,088 7,207,921 (98,872) (98,872) (108,503)

515,023 19,296,216 7,099,418

28,619,118 (10,942,280) (6,960,475) (134,786,461) (12,259,639) (919,643) 21,180 840 24,738 966,606 (17,232,308) (968,268) (101,164) (11,914,381) (138,047)

(10,921,100) (7,060,799) (136,208,937) (12,399,348)

1,060,115 99,089 6,238,082 1,831,270 1,060,115 99,089 6,238,082 1,831,270

(3,829,259) (5,868,024) (36,820,403) 3,210,358

6,611,057 451,479 201,185,996 49,254,671 $ 2,781,798 $ (5,416,545) $ 164,365,593 $ 52,465,029

$ 3,070,971 $ 3,971,126 $ 80,553,554 $ 52,465,029 (289,173) (9,387,671) 83,812,039 $ 2,781,798 $ (5,416,545) $ 164,365,593 $ 52,465,029

The notes to the financial statements are an integral part of this statement. -30- Exhibit A-12 Page 3 of 4 Statement of Cash Flows Proprietary Funds For the Fiscal Year Ended June 30, 2019

Business-Type Activities - Enterprise Funds Solid Water Stormwater Waste (continued) Resources Management Coliseum Management

Reconciliation of Operating Income (Loss) to Net Cash Provided by (Used for) Operating Activities: Operating Income (Loss)$ 21,977,155 $ 386,012 $ (5,304,031) $ (1,012,108) Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided by (Used for) Operating Activities: Depreciation/Amortization 29,080,866 1,987,499 3,234,560 433,564 Change in Assets, Deferred Outflows, Deferred Inflows and Liabilities: (Increase) Decrease in Receivables (224,673) 33,258 (2,958,194) (99,944) (Increase) Decrease in Inventories (450,775) 2,351 (5,776) (Increase) Decrease in Intergovernmental Receivables (9,419) (576,446) (8,117) (Increase) Decrease in Miscellaneous Assets 83,995 (335,210) Increase (Decrease) in Accounts Payable 33,878 (289,182) (109,449) (67,559) Increase in Contracts/Retainage Payable Increase in Landfill Liability 612,626 Increase in Deferred Outflows of Resources -Pensions (1,539,594) (291,650) (592,158) (163,873) Decrease in Deferred Inflows of Resources -Pensions (62,286) (11,802) (23,965) (6,636) Increase in Net Pension Liability 1,857,948 351,953 714,597 197,752 Increase in Deferred Outflows of Resources - OPEB (639,736) (150,166) (163,033) (65,692) Increase in Deferred Inflows of Resources - OPEB 2,511,737 589,585 640,103 257,919 Decrease in Net OPEB Liability (1,679,098) (394,138) (427,910) (172,420) Increase (Decrease) in Compensated Absences Payable 12,083 12,114 28,979 (10,316) Increase in Pollution Remediation Liability 2,458,749 34,908 Increase (Decrease) in Intergovernmental Payable 1,599 (93,752) Increase in Customer Deposits Payable 72,860 Increase in Miscellaneous Payable 7,531,415 Increase (Decrease) in Other Receipts (Disbursements) 118,898 9,850,844 73,148 Total Adjustments 31,636,451 1,828,052 16,722,732 1,009,584

Net Cash Provided by (Used for) Operating Activities$ 53,613,606 $ 2,214,064 $ 11,418,701 $ (2,524)

Noncash Investing, Capital and Financing Activities: Lease-Purchase and Other Capital Assets $ $ $ $ Principal Paid by Other Funds on Debt Obligations Donated Assets 762,218 Total Noncash Investing, Capital and Financing Activities $ 762,218 $ $ $

The notes to the financial statements are an integral part of this statement. -31- Exhibit A-12 Page 4 of 4

Greensboro Other Transit Advisory Enterprise Internal Commission Fund Totals Service Funds

$ (24,558,766) $ 569,493 $ (7,942,245) $ (5,917,224)

3,431,647 569,538 38,737,674 14,751,157

666,240 (36,335) (2,619,648) (107,143) 140,312 (313,888) (62,598) (1,402,114) 1,437 (1,994,659) 91,982 (251,215) (630,239) 2,119,018 (10,308) 1,676,398 2,491,120 40,571 612,626 (48,564) (54,471) (2,690,310) (1,025,662) (1,978) (2,218) (108,885) (41,470) 58,594 65,720 3,246,564 1,237,773 (22,858) (23,993) (1,065,478) (386,830) 89,745 94,203 4,183,292 1,518,774 (59,995) (62,974) (2,796,535) (1,015,301) 5,422 (16,767) 31,515 26,041 2,493,657 ( 92,153) ( 528,535) 72,860 361 7,531,776 25,100,000 35,142,890 (3,763,398) 30,075,469 524,193 81,796,481 12,596,242

$ 5,516,703 $ 1,093,686 $ 73,854,236 $ 6,679,018

$ $ $ $ 4,172,630 1,984,848 762,218 $ $ $ 762,218 $ 6,157,478

The notes to the financial statements are an integral part of this statement. -32- Exhibit A-13

Statement of Fiduciary Net Position Fiduciary Funds June 30, 2019

Pension and Benefit Trust Funds ASSETS Cash and Cash Equivalents/Investments Demand Deposits $ 5,000 Mutual Funds: NC Short Term Investment Fund 1,214,966 NC Equity Index Fund 18,633,087 NC Bond Index Fund 10,519,460

Total Assets $ 30,372,513

NET POSITION Net Position Restricted for: Pension Benefit - Law Enforcement Officers Special Separation Allowance 7,239,089 Net Position Restricted for: Other Postemployment Benefits Other Than Pensions 23,133,424 Total Net Position $ 30,372,513

The notes to the financial statements are an integral part of this statement. -33- Exhibit A-14

Statement of Changes in Fiduciary Net Position Fiduciary Funds For the Fiscal Year Ended June 30, 2019

Pension and Benefit Trust Funds ADDITIONS Employer Contributions $ 8,372,561 Employee Contributions 2,459,614

Interest Earnings: Investment Income 243,568 Net Increase (Decrease) in the Fair Value of Investments 1,598,293 Total Investment Income 1,841,861

Total Additions 12,674,036

DEDUCTIONS Benefits Paid 9,628,995 Administrative Expenses 8,008 Total Deductions 9,637,003

Change in Net Position 3,037,033

Net Position Restricted for Pension and Benefits - July 1 27,335,480 Net Position Restricted for Pension and Benefits - June 30$ 30,372,513

The notes to the financial statements are an integral part of this statement.

-34- Exhibit A-15

Statement of Net Position Component Units June 30, 2019 Greensboro Greensboro Greensboro Total Housing Dev. Redevelopment ABC Component ASSETS Partnership Commission Board Units Cash and Cash Equivalents/Investments$ 49,429 $ 31,155 $ 4,723,381 $ 4,803,965 Receivables, Net Accounts, Notes and Mortgages 14,040 14,040 Intergovernmental 67,999 67,999 Inventories 3,451,751 3,451,751 Miscellaneous 105,919 105,919 Assets Held for Resale 2,276,711 3,070,890 5,347,601 Long-Term Note Receivable 2,275,961 2,275,961 Capital Assets: Non-Depreciable: Land 4,179,181 4,179,181 Buildings 6,586,277 6,586,277 Accumulated Depreciation (1,351,066) (1,351,066) Improvements Other than Buildings 521,205 521,205 Accumulated Depreciation (478,806) (478,806) Furniture, Fixtures, Machinery and Equipment 2,814,199 2,814,199 Accumulated Depreciation (2,224,494) (2,224,494) Total Assets 2,326,140 5,446,005 18,341,587 26,113,732 DEFERRED OUTFLOW OF RESOURCES Current Year Pension Contributions 196,895 196,895 Pension Deferrals 471,697 471,697 Total Deferred Outflow of Resources 668,592 668,592

LIABILITIES Accounts Payable 28,000 3,057,530 3,085,530 Due to Primary Government 1,147,643 1,147,643 Miscellaneous 107,011 107,011 Due Within One Year: Note Payable 237,652 237,652 Due in More Than One Year: Note Payable 2,343,796 4,329,794 6,673,590 Unearned Revenue 2,275,961 2,275,961 Miscellaneous 1,120,170 1,120,170 Net Pension Obligation 840,521 840,521 Total Liabilities 2,343,796 2,303,961 10,840,321 15,488,078

DEFERRED INFLOW OF RESOURCES Pension Deferrals 39,144 39,144 OPEB Deferrals 29,878 29,878 Total Deferred Inflow of Resources 69,022 69,022

NET POSITION Net Investment in Capital Assets 5,479,050 5,479,050 Restricted for: Assets Held for Resale 3,070,890 3,070,890 Neighborhood Development 67,999 67,999 Greensboro ABC Board Working Capital 1,594,521 1,594,521 Unrestricted (17,656) 3,155 1,027,265 1,012,764 Total Net Position$ (17,656) $ 3,142,044 $ 8,100,836 $ 11,225,224

The notes to the financial statements are an integral part of this statement. -35- Exhibit A-16 Page 1 of 2 Statement of Activities Component Units For the Fiscal Year Ended June 30, 2019

Program Revenues Operating Capital Charges for Grants and Grants and Expenses Services Contributions Contributions

Greensboro Housing Dev. Partnership Governmental Activities: Neighborhood Development$ 9,736 $ 325 $ $

Total Greensboro Housing Dev. Partnership 9,736 325

Greensboro Redevelopment Commission Governmental Activities: Redevelopment Commission Operations 153,705 59,739

Total Greensboro Redevelopment Commission 153,705 59,739

Greensboro ABC Board Business -Type Activities: ABC Board Operations 39,775,710 40,562,797

Total Greensboro ABC Board 39,775,710 40,562,797

Total $ 39,939,151 $ 40,563,122 $ 59,739 $

General Revenues: Investment Income Gain on Sale of Capital Assets Miscellaneous

Total General Revenues

Change in Net Position

Net Position - July 1 Prior Period Adjustment Net Position - July 1, (restated)

Net Position - June 30

The notes to the financial statements are an integral part of this statement. -36- Exhibit A-16 Page 2 of 2

Net (Expenses) Revenue and Changes in Net Position Greensboro Greensboro Greensboro Greensboro Housing Dev. Redevelopment Transit ABC Partnership Commission Authority Board Totals

$ (9,411) $ $ $ $ (9,411)

(9,411) (9,411)

(93,966) (93,966)

(93,966) (93,966)

787,087 787,087

787,087 787,087

(9,411) (93,966) 787,087 683,710

3 3 12,500 12,500 413 413

3 12,913 12,916

(9,411) (93,963) 800,000 696,626

(8,245) 3,236,007 58,318,736 7,912,054 69,458,552 (58,318,736) (611,218) (58,929,954) (8,245) 3,236,007 7,300,836 10,528,598

$ (17,656) $ 3,142,044 $ $ 8,100,836 $ 11,225,224

NOTES TO THE FINANCIAL STATEMENTS CITY OF GREENSBORO, NORTH CAROLINA

JUNE 30, 2019

I. Summary of Significant Accounting Policies

The accounting policies of the City of Greensboro (City) and its component units conform to US Generally Accepted Accounting Principles (“GAAP”) as applicable to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The following is a summary of the more significant accounting policies of the City:

A. The Financial Reporting Entity

The City is a municipal corporation governed by an elected Mayor and eight–member Council. As required by GAAP, these financial statements present the City (the primary government) and its component units (entities for which the City is considered to be financially accountable). Criteria used to establish financial accountability include appointment of a voting majority of the component unit’s governing board and imposition of will or a financial benefit/burden relationship, fiscal dependency or other significant operational and financial relationships.

1. Blended Component Unit

Blended component units, although legally separate entities, are, in substance, part of the City’s operation. Financial amounts from these units are combined with amounts of the primary government.

The Greensboro Center City Corporation (GCCC) assists the City in financing, acquiring and constructing public facilities and in purchasing equipment. The sole purpose of the GCCC is to provide a funding source for City assets, lease the assets to the City and to use the lease payments to repay the debt. The corporation has no other operations. The GCCC’s twelve member governing board is appointed by the Mayor. A financial burden exists, as the City is required to transfer funds to the GCCC in an amount sufficient to pay the scheduled debt service on GCCC certificates of participation. The GCCC’s cash and debt are considered with assets of the Coliseum Enterprise Fund and general government liabilities for financial statement purposes.

2. Discretely Presented Component Units

The component unit column in the basic financial statements includes the financial data of the City’s other component units. The units are reported in a separate column to emphasize that they are legally separate from the City. Separate statements of net position and activities for the component units are presented in Exhibits A-15 and A-16.

Greensboro Housing Development Partnership, Inc (GHDP) provides first-time buyers, with low to moderate income, affordable financing. GHDP also serves as a conduit to sell surplus land to builders to develop affordable housing for City citizens. The City appoints the voting majority of the Board and guarantees support for any deficits for certain programs and loan obligations. The City also influences the operations of the GHDP by providing loan initiatives and rehabilitation of properties. Related transactions of this partnership are reflected in the City records in a Special Revenue Fund.

The Greensboro Redevelopment Commission (Commission) conducts studies, formulates plans, purchases and sells properties and oversees redevelopment projects in the City. The Commission performs legislative duties such as defining a redevelopment area and carries out delegated activities, subject to the consent, approval and policies of the City. The governing board is composed of five residents of the City who are appointed by City Council. No property transactions may be taken without City approval. City Council must agree before any expenditures or contracts are made by the board or any debt entered into for which the City could be liable. Budgets for the Commission are set by City Council and any changes require City approval through normal budget procedures. The City provides all staff and other resources necessary for operations and administration of the Commission. All funding is derived from City sources and federal grants and loans. The Commission’s inventory of properties and associated notes receivable are recorded as “Assets Held for Resale” and “Accounts, Notes and Mortgages” and “Unearned Revenues”. The Commission’s financial activity is recorded in the Housing Partnership Revolving Fund. The Commission is considered to almost exclusively benefit the City even though it does not provide services directly to it.

37a

Greensboro ABC Board operates alcoholic beverage stores, regulates the sale of such beverages and enforces alcoholic beverage laws in the City. Members of the governing body are appointed by City Council. Financial benefit is provided to the City as a portion of the Greensboro ABC Board’s profits are distributed to the City, quarterly.

Each of the discretely presented component units has a June 30 year-end. Complete financial statements for the GHDP and Greensboro ABC Board component units may be obtained at their respective administrative offices. Financial transactions of the Commission are reported and audited during the City’s annual audit. No separate financial statements are prepared for this entity.

ADMINISTRATIVE OFFICES

Greensboro Center City Corporation Greensboro Housing Development Attention: Richard Lusk Partnership, Inc. P.O. Box 3136 Attention: Sue Schwartz Greensboro, North Carolina 27402-3136 P.O. Box 3136 Greensboro, North Carolina 27402-3136

Greensboro ABC Board Greensboro Redevelopment Commission Attention: Vickee’ Armstrong Attention: Sue Schwartz P.O. Box 16905 P.O. Box 3136 Greensboro, North Carolina 27416-0905 Greensboro, North Carolina 27402-3136

B. Governmental-Wide and Fund Financial Statements

The basic financial statements include both government-wide (based on the City as a whole) and fund financial statements.

The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the non-fiduciary activities of the primary government and its component units. For the most part, the effect of interfund activity has been removed from these financial statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. Likewise, the primary government is reported separately from certain legally separate component units for which the primary government is financially accountable.

The statement of activities demonstrates the degree to which the direct expenses of a given function or segments are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues.

Separate financial statements are provided for governmental funds, proprietary funds, and a fiduciary fund, even though the latter is excluded from the government-wide statements. The focus of the governmental and proprietary fund financial statements is on major funds. The City’s determination of reporting major funds considered the criteria prescribed by GASB and consistency of presentation from year to year. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. Non-major funds are summarized into a single column. Internal service funds, funds that provide goods and services to other City departments and certain outside agencies on a cost- reimbursement basis, have also been eliminated to prevent “double reporting” of their transactions. Internal service funds primarily perform services for the City’s governmental funds.

The government-wide financial statements and the fund financial statements report the City’s operational and fiscal accountability. Operational accountability refers to the reporting of efficiency and effectiveness of achieved operating objectives using all resources available for that purpose, and whether additional objectives can be met in the foreseeable future. Fiscal accountability is demonstrated through additional fund information detailing compliance with finance-related legal and contractual provisions.

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C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation

The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. All assets and liabilities (whether current or non-current) associated with these activities are included in the government-wide financial statements, resulting in net position.

Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized when they are measurable and available, or when susceptible to accrual. “Measurable” means the amount of the transaction can be determined and “available” means collectible within the current period or soon enough thereafter to pay liabilities of the current period. The City considers sales taxes and state-shared revenues and reimbursements to be available if they are collected within 90 days after year-end and ad valorem taxes and profit distributions from the ABC Board to be available if collected within 60 days after year-end. Certain intergovernmental revenues, licenses and permits, fines and forfeitures, and charges for current services are recognized when cash is received, unless they are subject to deferral to a future period.

Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability is incurred. Exceptions to this general rule include accumulated unpaid sick pay which is not accrued and debt service on general long-term debt and claims and judgments which are recognized when the liability is normally expected to be liquidated with available financial resources.

Only current assets and current liabilities are generally included on the balance sheets of the governmental funds. Operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current position. Accordingly, the reported fund balance presents a summary of sources and uses of “available spendable resources” during a period. Since the governmental fund statements are presented on a different measurement focus and basis of accounting than the governmental activities column in the government-wide statements, a reconciliation is presented on the page following each statement, which briefly explains the adjustments necessary to transform the fund-based financial statements into the governmental activities column of the government-wide presentation.

Proprietary funds distinguish operating revenues and expenses from non-operating items. It is the City’s policy that operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the Enterprise Funds and of the government’s Internal Service Funds are charges to customers for sales and services. Operating expenses for Enterprise Funds and Internal Service Funds include the cost of sales and services, administrative expenses, claims payments, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses.

The government reports the following major governmental funds:

General Fund - The General Fund is the primary operating fund of the City. It is used to account for all financial resources of the general government, except those required to be accounted for in another fund.

Debt Service Fund - The Debt Service Fund is used to account for and report financial resources that are restricted, committed or assigned to the accumulation of resources for, and the payment of, general long-term debt principal, interest and related costs.

The government reports the following major proprietary funds:

Enterprise Funds - Enterprise Funds account for operations that are financed and operated in a manner similar to private business enterprises where the intent of the governing body is that the costs of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or where the governing body has decided that periodic determination of revenues earned, expenses incurred, and net income is appropriate for capital maintenance, public policy, management control, accountability or other purposes.

The Water Resources Fund provides water and sewer services to more than 105,000 customers and is designed to be self- supporting. This fund also provides for principal and interest on all water and sewer debt. Outstanding Combined Enterprise System revenue bonds are recorded in this fund.

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The Stormwater Management Fund was established to account for the federally mandated program of stormwater system management, which is supported by a City-wide stormwater fee.

The Coliseum Fund administers operations of a complex that brings top artists in entertainment, education, and sports to the City. The Coliseum Fund operation supports debt service on the financing agreements for energy improvements at the facility as well as the bonds issued for the Steven Tanger Center for the Performing Arts.

The Solid Waste Management Fund accounts for waste disposal and recycling operations of the City, as well as solid waste landfill improvements. Outstanding special obligation bonds are recorded and supported in this fund.

Greensboro Transit Advisory Commission is responsible for the operation of the mass transit system in the municipal area. These functions include Fixed Route operations, as well as specialized ADA paratransit services and HEAT, which provides transportation for students attending local colleges and universities. This fund is supported by transit taxes, which are levied under the taxing authority of the City.

The City’s parking operations are included in “Other Enterprise Fund”, a non-major fund.

Additionally, the government reports the following fund types:

Internal Service Funds - Internal Service Funds account for the financing of goods or services provided by one department or agency to other departments or agencies of the City, or to other governments, on a cost-reimbursement basis. The City also accounts for its risk-retention transactions and equipment purchases financed with lease-purchase agreements in the Internal Service Funds. Internal Service Funds of the City government (which traditionally provide services primarily to other funds of the government) are presented in summary form as part of the proprietary fund financial statements. Since the principal users of the Internal Service Funds are associated with the City’s governmental activities, financial statements of Internal Service Funds are consolidated into the governmental activities column when presented at the government-wide level. To the extent possible, the costs of these services are reflected in the appropriate functional activity.

Fiduciary Funds - The Law Enforcement Officers Special Separation Allowance Pension Benefit Trust (LEOSSA) and the Other Postemployment Benefit (OPEB) Trust Funds account for assets held by the City in a fiduciary capacity and accumulate funds to provide pension and certain health and life benefit payments to qualified law enforcement officers and retirees. Since by definition these assets are being held for the benefit of a third party (pension and retiree participants) and cannot be used to address activities or obligations of the government, these funds are not incorporated into the government-wide statements. These funds use the accrual basis of accounting and have a capital maintenance measurement focus. They are accounted for in essentially the same manner as Proprietary Funds.

As a general rule the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to the rule are payments between the water resources and solid waste disposal funds and the General Fund. Eliminations of these charges would distort the direct costs and program revenues reported for the various functions concerned.

When both restricted and unrestricted resources are available for use, it is the City’s policy to use restricted resources first, then unrestricted resources as they are needed.

D. Assets, Liabilities, Deferred Outflows/Deferred Inflows of Resources, and Net Position or Equity

1. Cash and Cash Equivalents/Investments

The City maintains a cash and investment pool that is used by all funds except the following, which maintain separate deposits and investments: Capital Project Bond Funds and Water Resources Bond Funds. Each fund type’s equity and cash and cash equivalents/investments are displayed separately on a combined balance sheet. Interest is distributed to the various funds on the basis of equity in the cash and cash equivalent/investments pool and individual fund investments. For purposes of the statement of cash flows, investments (including restricted assets) are considered to be cash equivalents, since they represent highly liquid deposits of the cash and investment pool.

2. Receivables and Payables

Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the Fiscal Year are referred to as “internal receivables/internal payables” (i.e., the current portion of interfund loans) and are reported “net”. 37d

Residual balances outstanding between the governmental activities and business-type activities are reported in the government- wide financial statements as “internal balances”.

City ad valorem taxes are billed by the Guilford County Tax Collector after July 1, the beginning of the Fiscal Year, and are due on September 1. No penalties or interest are assessed until the following January 6. The taxes levied (other than motor vehicles) are based on assessed property values as of January 1, which is the statutory lien date on real property. Liens against personal property are coincident with action taken to levy or garnish. Collections of City taxes are made by the County and remitted to the City as collected. In accordance with State law, property taxes on certain registered motor vehicles are assessed and collected throughout the year based on a staggered registration system. Effective September 1, 2013, motor vehicle taxes become due at the time the vehicles are registered. Until that date, motor vehicle taxes became due the first day of the fourth month after vehicles were registered and were collected by the County and remitted to the City. Under the current system, vehicle taxes are collected by the State of North Carolina and remitted to the City. The taxes receivable amount for the General Fund is reduced by an allowance for uncollectible of $321,948. The net General Fund receivable of $3,859,534 is shown as a deferred inflow of resources on the Governmental Funds Balance Sheet.

3. Inventories/Assets Held for Resale and Prepaid Items

Inventories consist primarily of materials and supplies held for consumption. They are stated at cost, determined principally by a moving average method. The costs of governmental fund-type inventories are recorded as expenditures when consumed rather than when purchased. Inventories of the Greensboro ABC Board are valued at the lower of cost (FIFO) or market.

Assets Held for Resale in the amount of $3,070,890 and $2,276,711 as of June 30, 2019, can be found in the statement of net position for component units, Exhibit A-15 on page 35, for the Greensboro Redevelopment Commission and the Greensboro Housing Development Partnership, respectively. Assets Held for Resale amounting to $95,180, and $600,000 are recorded in the Street and Sidewalk Capital Project Fund, and the Capital Leasing Fund, respectively, for certain other properties held by the City.

Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements and expensed as the items are used.

4. Restricted Assets

Certain proceeds of the City’s bonds, certain grant receipts, as well as other funds are classified as restricted assets on the balance sheet because their use is limited by applicable bonds covenants, grantor or other third party and enabling legislative restrictions and state statutes.

Powell Bill funds are classified as restricted cash because they can be expended only for the purposes of maintaining, repairing, constructing, reconstructing or widening of local streets per G.S. 136-41.1 through 136-41.4.

5. Intangible Assets

Intangible Assets of $90,968,465 as of June 30, 2019 are recorded in the Water Resources Enterprise Fund and represent rights to future raw water allocations from the Randleman Dam and reservoir project, in accordance with a joint venture agreement established in September 1987 with five other governmental entities to form a regional water supply.

The intangible asset is based on City contributions to the Piedmont Triad Regional Water Authority for construction of the dam, reservoir, water treatment plant and surrounding infrastructure improvements as well as $919,643 of contributions recorded in Fiscal Year 2019, toward the City’s administrative and operating allocation. In Fiscal Year 2011, the City began amortizing the water rights over a period of 50 years with current year related amortization expense totaling $1,819,369. Accumulated amortization totals $15,734,261.

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Other Intangible Assets are recorded as follows: Software & Accumulated Eas ements Licenses Amortization Governmental Activities: General Government Assets $$ 3,337,966 $ 3,325,387 Capital Leasing Fund 830,969 830,969 Total $ $ 4,168,935 $ 4,156,356

Business-Type Activities: Water Resources Fund$ 23,405,235 $ 5,505,340 $ 5,143,674 Stormwater Fund 1,644,042 441,548 381,897 GTAC 136,305 57,233 Other Non-Major Enterprise Fund 49,218 49,218 Total$ 25,049,277 $ 6,132,411 $ 5,632,022

Software and Licenses are amortized over an estimated useful life of 3 to 7 years. Easements represent non-depreciable assets.

6. Capital Assets

Capital assets, which include property, plant, equipment, infrastructure assets (e.g., roads, bridges, sidewalks and similar items) and intangible assets, are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the government as assets with an initial, individual cost of more than $5,000. One exception is intangible assets, for internally generated software, which is capitalized if greater than $100,000. All purchased capital assets of the City are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated capital assets received prior to June 15, 2015 are recorded at their estimated fair value at the date of donation. Donated capital assets received after June 15, 2015 are recorded at acquisition value. All other purchased or constructed capital assets are reported at cost or estimated historical cost. General infrastructure assets, including annexed streets that were acquired, or received substantial improvements subsequent to July 1, 1980 are reported at estimated historical cost using deflated replacement values. The cost of normal maintenance and repairs that do not add value to the asset or materially extend assets lives are not capitalized.

General capital assets and the related accumulated depreciation are reported for the City using the straight-line method over the following estimated useful lives: Buildings, 40 years; Improvements, 20 years; Equipment, 5-20 years and Infrastructure as follows: Streets, 50 years; Sidewalks, 40 years; Bridges, 50 years; Water/Sewer, 40 years and Stormwater Improvements, 30- 75 years. Depreciation of all exhaustible capital assets used by Proprietary Funds is charged as an expense against their operations.

Property and equipment of the Greensboro ABC Board are stated at cost and are depreciated over their useful lives on a straight- line basis as follows: Buildings, 50 years; Equipment, 3-5 years. Leasehold improvements of the Greensboro ABC Board are depreciated over the term of the lease agreement.

Property, furniture and equipment of the GHDP are stated at cost and are depreciated over their useful lives on a straight-line basis as follows: Buildings, 27 years; Furniture and Equipment, 3-5 years.

Capital assets also include intangible assets which are described in D. 5.

7. Deferred Outflows/Inflows of Resources and Unearned Revenues

In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, Deferred Outflows of Resources, represents a consumption of net position that applies to a future period and so will not be recognized as an expense or expenditure until then. The City has several items that meet this criterion, an unamortized loss on bond defeasance for General Obligation and Water and Sewer Refunding bonds, the accumulated decrease in fair value of hedging derivatives for Series 1998 General Obligation bonds and pension and OPEB deferrals. In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, Deferred Inflows of Resources, represents an acquisition of net position that applies to a future period and so will not be recognized as revenue until then. The City has certain items that meet 37f

the criterion for this category – prepaid taxes, prepaid assessments, deferrals of pension expense, and deferrals of Other Post Employment Benefit expense. In addition, property tax, notes, and other accounts receivable are included at the fund level in the financial statements.

The City reports unearned revenue on its government-wide and fund financial statements. Unearned revenues arise when potential revenue does not meet both the “measureable” and “available” criteria for recognition in the current period (fund financial statements). Unearned revenues also arise when resources are unearned by the City and received before it has a legal claim to them, as when grant monies are received prior to the incurrence of qualifying expenditures (fund financial statements and government-wide financial statements). In subsequent periods, when both revenue recognition criteria are met, or when the City has a legal claim to the resources, the liability for unearned revenue is removed from the applicable financial statement and revenue is recognized.

Deferred Outflows/Inflows of Resources and Unearned Revenues in the fund and basic financial statements at June 30, 2019 are composed of the following:

Fund Financial Statements Deferred Outflows of Resources

Proprietary Funds Unamortized Bond Refunding Charges Water Resources Fund$ 3,253,360

Pension Deferrals: Water Resources Fund$ 3,078,386 Stormwater Management Fund 583,197 Coliseum Fund 1,184,146 Solid Waste Management Fund 327,761 Greensboro Transit Advisory Commission Fund 97,309 Other Non-Major Enterprise Fund 109,144 Internal Service Funds 2,050,394 7,430,337

Current Year Pension Contributions: Water Resources Fund 1,228,705 Stormwater Management Fund 232,777 Coliseum Fund 472,639 Solid Waste Management Fund 130,822 Greensboro Transit Advisory Commission Fund 38,840 Other Non-Major Enterprise Fund 43,564 Internal Service Funds 818,392 2,965,739

OPEB Deferrals: Water Resources Fund 639,736 Stormwater Management Fund 150,166 Coliseum Fund 163,033 Solid Waste Management Fund 65,692 Greensboro Transit Advisory Commission Fund 22,858 Other Non-Major Enterprise Fund 23,993 Internal Service Funds 386,830 1,452,308 Total Deferred Outflows of Resources$ 15,101,744

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Fund Financial Statements Deferred Inflows of Resources

Governmental Funds Taxes Receivable: General Fund$ 3,859,534 Other Non-Major Governmental Funds 116,654$ 3,976,188 Notes and Mortgages Receivable: Other Non-Major Governmental Funds 14,480 Other Accounts Receivable: General Fund 822,153 Other Non-Major Governmental Funds 6,013 828,166 Prepaid Taxes: General Fund 27,403 Prepaid Assessments: Other Non-Major Governmental Funds 17,282 Total Deferred Inflows of Resources$ 4,863,519

Proprietary Funds Pension Deferrals: Water Resources Fund$ 181,103 Stormwater Management Fund 34,310 Coliseum Fund 69,664 Solid Waste Management Fund 19,282 Greensboro Transit Advisory Commission Fund 5,725 Other Non-Major Enterprise Fund 6,421 Internal Service Funds 120,625$ 437,130

OPEB Deferrals: Water Resources Fund 2,971,194 Stormwater Management Fund 697,434 Coliseum Fund 757,193 Solid Waste Management Fund 305,099 Greensboro Transit Advisory Commission Fund 106,162 Other Non-Major Enterprise Fund 111,435 Internal Service Funds 1,796,595 6,745,112 Total Deferred Inflows of Resources$ 7,182,242

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Fund Financial Statements Unearned Revenues

Governmental Funds Prepaid Privilege License Fees: General Fund$ 15,846 Prepaid Business Permit Fees: General Fund 850 Contributions/Donations: General Fund 296,741 Grant Revenues: Other Non-Major Governmental Funds 3,975,171 Total Unearned Revenues$ 4,288,608

Proprietary Funds Prepaid Rents: Coliseum Fund$ 891,900 Promotional Fees in Advance: Coliseum Fund 611,382 Total Unearned Revenues$ 1,503,282

Government-Wide Financial Statements Governmental Business-Type Activities Activities Deferred Outflows of Resources Unamortized Bond Refunding Charges$ 791,278 $ 3,253,360 Pension Deferrals 28,956,912 5,379,943 Current Year Pension Contributions 12,410,929 2,147,347 OPEB Deferrals 4,917,712 1,065,478 Accumulated Decrease in Fair Value of Hedging Derivatives 52,895 Total Deferred Outflows of Resources$ 47,129,726 $ 11,846,128

Deferred Inflows of Resources Prepaid Taxes$ 27,403 $ Prepaid Assessments 17,282 Pension Deferrals 4,741,975 316,505 OPEB Deferrals 22,839,852 4,948,517 Total Deferred Inflows of Resources$ 27,626,512 $ 5,265,022

Unearned Revenues Prepaid Privilege License Fees$ 15,846 $ Prepaid Business Permit Fees 850 Prepaid Rents 891,900 Promotional Fees in Advance 611,382 Grant Revenues 2,606,298 Unearned contributions/donations 296,741 Total Unearned Revenues$ 2,919,735 $ 1,503,282

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8. Long-Term Liabilities

Long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business- type activities, or proprietary fund-type statement of net position in the government-wide financial statements, and proprietary fund-types in the fund financial statements. Bond premiums and discounts and losses on extinguishment of debt are unearned and amortized over the life of the bonds using the effective interest method. These latter amounts are now classified as Deferred Outflows of Resources. Bond issuance costs are expensed in the reporting period in which they are incurred.

In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance cost during the current period. The face amount of debt issued is reported as an “Other Financing Source”. Premiums received on debt issuances are reported as “Other Financing Sources” while discounts on debt issuances are reporting as “Other Financing Uses”. Issuance cost, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures as “Fees and Other”.

9. Fund Equity

In the governmental fund financial statements, the fund balances are composed of five classifications designed to disclose the spending hierarchy of constraints placed on how fund balance can be spent. The City reports nonspendable funds, restricted, committed, assigned and unassigned fund balances. Fund balances are further segregated into the following classifications:

Nonspendable Fund Balance - This classification includes amounts that cannot be spent because they are either not in spendable form or legally or contractually required to be maintained intact. Amounts that cannot be spent due to form, include inventories, prepaid amounts, long-term amounts of loans and notes receivable funds permanently held for cemetery care and property held for resale, unless future property sale proceeds are restricted, committed or assigned.

Inventories and Miscellaneous Prepaids - This represents that portion of fund balance segregated for year-end inventories of supplies and prepaid items such as rent and postage; these are current assets and do not represent available spendable resources.

Assets Held for Resale - This represents that portion of fund balance segregated for assets that are intended to be resold and not used in operation.

Perpetual Maintenance – This represents Cemetery resources that are required to be retained in perpetuity for maintenance of the City’s three cemeteries.

Restricted Fund Balance – This classification can be spent only for specific purposes, as stipulated by external resource providers and creditors, by constitution or through enabling legislation that is legally enforceable by an external party. Enabling legislation that creates a revenue stream must also stipulate the purposes for which that revenue can be used. Restrictions may only be changed by parties external to the entity or imposed by law.

Restricted for Stabilization by State Statute – North Carolina G.S. 159-8 prohibits units of government from budgeting or spending a portion of their fund balance. This is one of several statutes enacted by the North Carolina State Legislature in the 1930’s that were designed to improve and maintain the fiscal health of local government units. Restricted by State statute (RSS), is calculated at the end of each fiscal year for all annually budgeted funds. The calculation in G.S. 159-8(a) provides a formula for determining what portion of fund balance is available for appropriation. The amount of fund balance not available for appropriation is what is known as “restricted by State statute”. Appropriated fund balance in any fund shall not exceed the sum of cash and investments minus the sum of liabilities, encumbrances, and deferred revenues arising from cash receipts, as those figures stand at the close of the fiscal year next preceding the budget. Per GASB guidance, RSS is considered a resource upon which a restriction is “imposed by law through constitutional provisions or enabling legislation.” RSS is reduced by inventories and prepaids as they are classified as nonspendable. Outstanding encumbrances are included within RSS. RSS is included as a component of Restricted Net position and Restricted fund balance on the face of the balance sheet.

Restricted for Debt Covenants – This fund balance is derived from debt proceeds and is governed by certain covenants contained in financing agreements and is mainly restricted to finance major capital improvements.

Restricted for Grantor Requirements - Highway Improvements – This represents the amount of fund balance which can only be spent on streets, such as Powell Bill. The Powell Bill Fund is reported as a Special Revenue Fund for reporting 37j

purposes and related capital expenditures are also reported in the State Highway Allocation Capital Project Fund. These funds were established to account for Powell Bill Funds which are derived from a one and three-fourths cents per gallon motor fuel tax. The State of North Carolina collects these monies and returns a proportionate share to local governments based on local street mileage and population. Expenditures from this fund are restricted to specific highway construction and maintenance costs.

Committed Fund Balance – The portion of fund balance that can only be used for specific purposes imposed by a formal action in a majority vote by a quorum of the City of Greensboro’s governing body (highest level of decision–making authority). The governing body can, by adoption of a resolution prior to the end of the year, commit fund balance. Once adopted, the limitation imposed by the resolution remains in place until a similar action is taken (the adoption of another resolution) to remove or revise the limitation. These amounts are not subject to legal enforceability by external parties, as in restricted; however, amounts cannot be used for any other purpose unless the governing body removes or changes the limitation by taking the same form of action employed to previously impose the limitation. Formal action to commit an amount to a specific purpose must be made prior to the end of the Fiscal Year. The actual amount, however, may be computed after the year end as part of the preparation of the financial statements.

Committed for 911 Program – This portion of fund balance represents amounts committed to the continued operations of the Guilford Metro 911 Emergency Telephone System.

Committed for Special Tax Districts – This represents the portion of fund balance committed by the board for special tax districts, primarily derived from specific property taxes.

Committed for Neighborhood Development - This portion of fund balance represents amounts committed to housing partnership and community development to fund low and moderate income housing initiatives, primarily derived from a specific property tax.

Committed for Economic Opportunity – This portion of fund balance represents amounts committed to enhancing economic development within the City of Greensboro.

Committed for Cemetery Maintenance – This amount represents the portion of fund balance to be used for the maintenance and operation of the three cemeteries that are owned and operated by the City, primarily derived from cemetery lot sales.

Committed for Debt Service/Capital Projects – This represents amounts held for the future payment of general long-term debt principal and interest.

Assigned Fund Balance can be assigned either by any action of the governing body, or by designees with authority to assign. Amounts can be unassigned by the same process. Assignments calculations may be made after the end of the fiscal year during the process of preparation of the financial statements. The City may delegate to the City Manager (or his designee) the authority to assign amounts of a fund balance to promote sound financial operations of the City or to meet a future obligation.

Assigned for Subsequent Year’s Expenditures – This represents the amount of fund balance appropriated by the City Council to balance the budget for the year ending June 30, 2020.

Assigned for Debt Service – This represents amounts held for the future payment of general long-term debt principal and interest.

Assigned for Capital Projects – This represents funds used to finance all major capital improvements. The governing body approves the appropriation.

Unassigned Fund Balance represents the residual classification for the General Fund, which has not been restricted committed, or assigned to specific purposes within the General Fund. Council action is needed to affect the Unassigned Fund Balance (Unappropriated Fund Balance) in the General Fund. The ordinance must be approved by seven Council members unless an emergency exists (Section 3.23 of Greensboro City Charter). The minimum fund balance policy for the General Fund is 9% of budgeted expenditures of the subsequent year, with the remaining amounts, if any, recorded as “Assigned for Capital Projects”. Unassigned residual deficits may apply to other governmental funds to the extent fund balances are insufficient to satisfy restricted and committed balances.

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The City of Greensboro’s revenue spending policy provides guidance for programs with multiple revenue sources. The Finance Officer will use resources in the following hierarchy; bond proceeds, federal funds, state funds, local non-City funds, and then City funds when directing expenditures of the City.

Fund balance determination of order of expenditures – In determining the classification of total fund balance remaining at the end of the Fiscal Year when an expenditure is incurred for purposes for which both restricted and unrestricted amounts are available, expenditures will be applied first to restricted fund balance and then to unrestricted fund balance. The Finance Director has the authority to deviate from this policy if it is in the best interest of the City and promotes sound financial practices. Within unrestricted fund balance, the order in which the expenditures will be applied is as follows: Committed, Assigned, Unassigned, if multiple fund balances are reported for the same program.

10. Net Position

The government-wide and business-type fund financial statements utilize a net position presentation. Net position is categorized as net investment in capital assets, restricted and unrestricted.

Net Investment in Capital Assets is intended to reflect the portion of net position which is associated with non-liquid capital assets less outstanding capital asset-related debt.

Restricted Net Position represents liquid assets (typically generated from certain revenues and bond proceeds) which have third- party (statutory, bond covenant or granting agency) limitations on their use. Restrictions may also be imposed by law through constitutional provisions or enabling legislation.

At June 30, 2019, net position restricted by enabling legislation includes:

Water Resources Capital Reserve $ 12,700,106 Solid Waste Capital Reserve 2,806,359 Parking Facilities Capital Reserve 2,240

Unrestricted Net Position represents net position that does not meet the definitions of “Restricted” or “Net Investment in Capital Assets”. Unrestricted net position may be assigned or committed for management’s or the Board’s specific internal purposes. Unrestricted net position does not equate to net position available for appropriation which is calculated using statutory guidelines.

11. Pensions

For purposes of measuring the net pension asset (liability), deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Local Governmental Employees’ Retirement System (LGERS) and additions to/deductions from LGERS’ fiduciary net position have been determined on the same basis as they are reported by LGERS. For this purpose, plan member contributions are recognized in the period in which the contributions are due. The City of Greensboro’s employer contributions are recognized when due and the City of Greensboro has a legal requirement to provide the contributions. Benefits and refunds are recognized when due and payable in accordance with the terms of LGERS. Investments are reported at fair value. Pension related accounting is also reported for the LEOSSA Plan.

37l Government-Wide Financial Statements Governmental Business-Type Activities Activities Deferred Outflows of Resources Pension Deferrals - LGERS $ 27,494,747 $ 5,379,943 Pension Deferrals - LEOSSA 1,462,165 Subtotal Pension Deferrals $ 28,956,912 $ 5,379,943

Current Year Pension Contributions - LGERS $ 10,974,232 $ 2,147,347 Current Year Pension Contributions - LEOSSA 1,436,697 Subtotal Current Year Pension Contributions $ 12,410,929 $ 2,147,347

Liabilities Net Pension Liability - LGERS $ 49,370,367 $ 9,660,382 Net Pension Liability - LEOSSA 22,248,656 Subtotal Net Pension Liability $ 71,619,023 $ 9,660,382

Deferred Inflows of Resources Pension Deferrals - LGERS $ 1,617,531 $ 316,505 Pension Deferrals - LEOSSA 3,124,444 Subtotal Unearned Revenues $ 4,741,975 $ 316,505

12. Accounting Changes and Reclassifications

The City implemented Governmental Accounting Standards Board (GASB) Statement No. 88 Certain Disclosures Related to Debt, Including Direct Borrowing and Direct Placements, in the fiscal year ending June 30, 2019. The implementation of the statement required the City to add additional essential information related to debt in the notes of the financial statements.

On April 16, 2019, the City Council of the City of Greensboro passed a resolution to dissolve the Greensboro Transit Authority “GTA” and replace it with the Greensboro Transit Advisory Commission “GTAC”. The City determined that the Greensboro Transit Advisory Commission met the requirement for inclusion in the City’s financial statements as a Major Enterprise Fund. Accordingly, Business-Type Activities Beginning Net Assets, were increased by $58,318,736. In addition, the GTAC Beginning Net Assets were restated by ($549,926) for implementation of pension and OPEB-related accounting standards. The notes and schedules were changed to conform to this adjustment beginning balances were adjusted $174,731 for pension liability LGERs and compensated absences of $65,692.

The ABC Board implemented Governmental Accounting Standards Board (GASB) Statement No. 75, Accounting and Financial Reporting for Post-Employment Benefits Other Than Pensions, in the fiscal year ended June 30, 2019. The implementation of the statement required the Board to record beginning total OPEB liability and the effects on net position of benefit payments and administrative expenses paid by the Board related to OPEB during the measurement period. As a result, the Board’s net positon for the year ended June 30, 2018 decreased by $611,218.

II. Reconciliation of Government-Wide and Fund Financial Statements

A. Explanation of certain differences between the governmental fund balance sheet and the government-wide statement of net position.

The governmental fund balance sheet includes reconciliation between fund balance – total governmental funds and net position – governmental activities as reported in the government – wide statement of net position. One element of that reconciliation explains that “long-term liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported in the funds.”

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The details of this $377,088,685 difference (including Premium of $21,208,120 and unamortized bond refunding charges of $791,278) are as follows:

Bonds and Notes Payable $ 301,388,421 Limited Obligation Bonds and Notes Payable 56,616,702 Lease Purchase and Other Financing Agreements Payable 2,982,000 Compensated Absences Payable 12,466,768 Accrued Interest Payable 3,634,794 Combined Adjustment$ 377,088,685

B. Explanation of certain differences between the governmental fund statement of revenues, expenditures, and change in fund balances and the government-wide statement of activities.

The governmental fund statement of revenues, expenditures, and changes in fund balances include reconciliation between net changes in fund balances – total governmental funds and changes in net position of governmental activities as reported in the government-wide statement of activities. One element of that reconciliation explains that “Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense”.

The details of this $14,947,075 difference are as follows:

Capital Outlay$ 27,528,689 Contributed Capital 2,044,931 Disposal (29,508) Depreciation/Amortization Expense (14,597,037) Combined Adjustment$ 14,947,075

Another element of that reconciliation states that “the issuance of long-term debt (e.g., bonds, leases) provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of premiums, discounts, and similar items when debt is first issued, whereas these amounts are unearned and amortized in the statement of activities. Also included are compensated absences activities.”

The details of this $(103,558,917) difference are as follows:

Issuance of Debt$ (191,236,695) Principal Expenditure 86,972,963 Bond-Related Amortization (121,009) Interest Expenditures/Premium Amortization 1,119,480 Compensated Absences Expense (293,656) Combined Adjustment$ (103,558,917)

III. Stewardship, Compliance and Accountability

A. Budgetary Information

In accordance with the General Statutes of the State of North Carolina, the City prepares and adopts its budgets on the modified accrual basis. The General Statutes also require balanced budgets for all funds for which a budget is required. The City adopts annual budgets for all funds except Capital Projects Funds, Grant Project Funds and Trust Funds. Annual budgets must be adopted no later than July 1, the beginning of the Fiscal Year. The following Special Revenue Funds have legally adopted annual budgets: State Highway Allocation, Cemetery, Hotel/Motel Occupancy Tax, Special Tax Districts, Housing Partnership Revolving, Economic Development Fund, and Emergency Telephone System Fund. Capital and Grant Project budgets are adopted for the duration of the project which may encompass several years. Appropriations for funds that adopt annual budgets lapse at the end of the budget year. Capital and Grant Project budget appropriations do not lapse until the completion of the project.

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The following schedule provides management and citizens with information on the portion of General Fund balance that is available for appropriation:

Total Fund Balance - General Fund $70,865,071 Less: Inventories 1,194,881 Prepaid Expenditures 394,095 Stabilization by State Statute 32,000,861 Appropriated Fund Balance in 2020 Budget 4,853,059 Capital Projects 4,970,310 Working Capital/Fund Balance Policy 27,451,865

Budgets are adopted at a fund level and are amended as necessary during the Fiscal Year in one of two ways. First, the City Manager, as delegated by City Council, may make line-item transfers within individual fund budgets with subsequent monthly notice to City Council. Such transfers can neither increase nor decrease the overall budget at the fund level. Secondly, the budget may be increased or decreased at the fund level as changing circumstances dictate, subject to City Council approval. The legal level of budgetary control (the level at which expenditures may not legally exceed appropriations) is the fund level.

As required by North Carolina General Statutes, appropriations in Governmental Funds are encumbered upon issuance of purchase orders, contracts or other forms of legal commitments. Even though goods and services have not been received, the transactions are accounted for as a reservation of fund balance in the year that the commitment is made. While appropriations lapse at the end of the Fiscal Year, the succeeding year’s budget ordinance specifically provides for the re-appropriation of year-end encumbrances.

The outstanding encumbrances are amounts needed to pay any commitments related to purchase orders and contracts that remain unperformed at year-end are as follows:

Encumbrances General Fund Debt Service Fund Non-Major Funds $ 81,891,146 $ 3,689,130 $ 6,600 $ 78,195,416

Supplemental budgetary amendments increased the General Fund appropriation by $384,864 for programs being funded by additional revenues from FEMA reimbursements. No expenditures exceeded appropriations at the legal level of control during Fiscal Year 2019.

B. Deficit Fund Equity

The following funds report deficit fund balances as of June 30, 2019:

Workforce Investment Act$ (5,473) State, Federal and Other Grants Fund (1,382,085) Transportation Bond Fund-Series 2016 (171,248) Water Resources Bond Fund - Series 2018 (82,107)

These deficits will be eliminated with future reimbursements of federal and state grants and with proceeds from future bond issuances.

IV. Detailed Notes on all Funds

A. Deposits and Investments

1. Deposits

All deposits of the City of Greensboro are either insured or collateralized by using one of the two methods. Under the Dedicated Method, all deposits that exceed the federal depository insurance coverage level are collateralized with securities held by the 37o

City’s agents in the City’s name. Under the Pooling Method, which is a collateral pool, all uninsured deposits are collateralized with securities held by the State Treasurer’s agent in the name of the State Treasurer. Since the State Treasurer is acting in a fiduciary capacity for the City, the deposits are considered to be held by the City’s agent in the City’s name.

The amount of the pledged collateral is based on an approved averaging method for non-interest bearing deposits and the actual current balance for interest-bearing deposits. Depositories using the Pooling Method report to the State Treasurer the adequacy of their pooled collateral covering uninsured deposits. The State Treasurer does not confirm this information with the City or the escrow agent. Because of the inability to measure the exact amount of collateral pledged for the City under the Pooling Method, the potential exists for under collateralization, and the risk may increase in periods of high cash flows. However, the State Treasurer of North Carolina enforces strict standards of financial stability for each depository that collateralizes public deposits under the Pooling Method. The City does not have a formal investment policy regarding custodial credit risk for deposits.

At June 30, 2019, the City’s deposits had a carrying amount of $12,958,856 and a bank balance of $18,941,918. Of the bank balance, $250,000 was covered by federal depository insurance and the remainder was covered by the collateral held under the Pooling Method. At June 30, 2019, the City had $124,303 cash on hand.

The Greensboro ABC Board, a discretely presented component unit, held deposits in Pooling Method banks only. At June 30, 2019, the ABC Board’s carrying amount of deposits was $4,682,681 and the bank balance was $4,888,310. All of the bank balances were covered by federal depository insurance, as well.

The Greensboro Housing Development Partnership, a discretely presented component unit, had a bank balance at June 30, 2019 of $49,429. All of the bank balance was covered by federal depository insurance.

The Greensboro Redevelopment Commission, a discretely presented component unit, had a bank balance at June 30, 2019 of $31,155. All of the bank balance was covered by federal depository insurance.

2. Investments

North Carolina General Statute 159-30 (c) authorizes the City to invest in obligations of the U. S. Treasury and obligations of certain federal agencies; prime quality commercial paper and bankers’ acceptances bearing the highest rating of the nationally recognized statistical rating services (NRSRS); repurchase agreements with respect to either direct obligations of the United States or obligations of which the principal and interest are guaranteed by the United States; and SEC-registered mutual funds certified by the N.C. Local Government Commission. The City typically holds investments to maturity in order to realize full book value and interest earnings. As required for periods beginning after June 15, 1997 by GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, the City’s investments with a maturity of more than one year at acquisition and non-money market investments are carried at fair value determined annually by quoted market prices, using the specific identification method. Money market instruments that have a remaining maturity at time of purchase of one year or less are reported at amortized cost. The securities of the NCCMT Government Portfolio, a SEC- registered (2a-7) money market mutual fund, are valued at amortized cost, which is the NCCMT’s share price. The NCCMT Term Portfolio has a duration of 0.11 years, and is also an eligible investment for City funds, investing in high-grade money market securities including obligations of the U.S. Treasury and the State of North Carolina. The NCCMT – Term Portfolio’s securities are valued at fair value. Ownership interest of the State Treasurer’s Short Term Investment Fund (STIF) is determined on a fair market valuation basis as of fiscal year end in accordance with the STIF operating procedures. Valuation of the underlying assets is performed by the custodian.

General Statute 159-30.1 allows the City to establish an Other Postemployment Benefit (OPEB) Trust managed by the staff of the Department of the State Treasurer and operated in accordance with state laws and regulations. It is not registered with the SEC and G.S. 159-30(g) allows the City to make contributions to the Trust. The State Treasurer in his discretion may invest the proceeds in equities of certain publicly held companies and long or short-term fixed income investments as detailed in G.S. 147-69.2 (1-6), (6c) and (8). Funds submitted are managed in three different sub-funds, the STIF consisting of short to intermediate treasuries, agencies and corporate issues authorized by G.S. 147-69.1, the Bond Index Fund (BIF) consisting of high quality debt securities eligible under G.S. 147-69.2(b)(1)-(6), and BlackRock’s MSCI ACWI EQ Index Non-Lendable Class B Fund (EIF) authorized under G.S. 147-69.2(b)(8).

Under the authority of G.S. 147-69.3, no unrealized gains or losses of the STIF are distributed to participants of the fund. The BIF is also valued at $1 per share. The MSCI ACWI EQ Index Non-Lendable Class B Fund is priced at $22.5264 per share at June 30, 2019. 37p

General Statute 159-30.2 allows the City to establish a Law Enforcement Special Separation Allowance Trust and G.S. 147- 69.2 (65) allows the State Treasurer to invest deposits by the City into this Trust in the same manner as the OPEB Trust in the same three sub-funds outlined above.

Interest income earned in the Capital Projects funds, amounting to $1,884,308 was assigned to the Debt Service Fund.

Valuation Measurement Weighted Average Investment Type Method Reported/Fair Value Maturity (Year) U.S. Government Agencies Fair Value - Level 2$ 233,412,991 0.95195 Commercial Paper Fair Value - Level 2 43,814,070 0.12342 OPEB - STIF Amortized Cost 1,206,391 0.00276 OPEB - BIF Fair Value - Level 2 7,787,128 0.01783 OPEB - EIF Fair Value - Level 1 14,139,905 0.03237 LEOSSA - STIF Amortized Cost 8,575 0.00002 LEOSSA - BIF Fair Value - Level 2 2,732,332 0.00625 LEOSSA - EIF Fair Value - Level 1 4,493,182 0.01029 NCCMT Government Portfolio Amortized Cost 102,642,981 0.00065 NCCMT Term Fund Fair Value - Level 1 5,933,890 0.00004 M&F Bank Amortized Cost 2,013,608 0.00461 US Bank Trust Account: US Government Agencies Fair Value - Level 2 12,460,077 0.02852 Total Fair Value$ 430,645,130 Portfolio Weighted Average Maturity 1.17871

All investments are measured using the market approach: using prices and other relevant information generated by market transactions involving identical or comparable assets or a group of assets.

Level of fair value hierarchy:

Level 1: Financial instruments are valued using directly observable, quoted prices (unadjusted) in active markets for identical assets. Level 2: Financial instruments are valued using a matrix pricing technique. Matrix pricing is used to value securities based on the securities’ benchmark quoted prices.

Interest Rate Risk

In accordance with the formal approved City of Greensboro’s Charter, Article III, Section 4.71, the Investment Manager (Assistant Treasurer) prepares a memo describing investment transactions in detail as they are purchased. This memo is sent to the Mayor, the City Manager and the Finance Director (Treasurer) for signature approval and then returned to the Investment Manager. Although the investment policy has not been formally approved by the City Council, the City has an investment policy guideline, an internally approved Finance Department document that follows North Carolina General Statute 159-30. As a means of limiting the City’s exposure to declines in fair market values from rising interest rates, the City limits the weighted average maturity of its investments to less than 3.5 years. Also, the City purchases securities in a structured ladder with stated maturity dates to limit interest rate risk. The State Treasurer’s STIF is unrated and had a weighted average maturity of 1.3 years at June 30, 2019. The State Treasurer’s BIF is unrated and had a weighted average maturity of 7.81 years at June 30, 2019.

Credit Risk

North Carolina General Statute 159-30 limits investments in U.S. Governmental Agencies and commercial paper to those with top ratings issued by NRSRS. The City has no formal investment policy regarding credit risk, however in practice, it follows NCGS 159-30, and in effect the City limits its investment types to those with top ratings issued by NRSRS. As of June 30, 2019, the City had investments in the NCCMT Government Portfolio, which is rated AAAm by Standard and Poor’s, and in U. S. Government Agencies, all of which were rated AAA by Standard and Poor’s. The City also had investments in the NCCMT Term Portfolio, which is not rated. Investments in commercial paper by the City are rated either A1/P1 by Standard and Poor’s 37q

or Moody’s Investors Service. The State Treasurer’s STIF is unrated and authorized under NC General Statute 147-69.1. The State Treasurer’s STIF is invested in highly liquid fixed income securities consisting primarily of short to intermediate term treasuries, agencies, and money market instruments. The BIF is unrated and authorized under NC General Statute 147-69.1 and 147-69.2. The State Treasurer’s BIF is invested in high quality debt securities eligible under G.S. 147-69.2(b)(1)-(6).

Custodial Credit Risk

For an investment, the custodial risk is the risk that in the event of the failure of the counterparty, the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The City has no formal policy on custodial credit risk, but the City utilizes a separate third party custodial trust agent for all book-entry transactions, all of which are held in the City’s name.

Concentration of Credit Risk

The City’s investment policy does not restrict the level of investment in money markets or federal agencies, but it restricts investment in commercial paper or bankers’ acceptances of a single issuer to no more than 10% of the total investment portfolio. As of June 30, 2019, the City owned the following investments, which exceed 5% of the City’s total investments, along with the percentage noted for each compared to the total portfolio:

Commercial Paper 10.48% Federal Home Loan Bank 17.83% Federal Home Loan Mortgage Corporation 19.97% Federal Farm Credit Bank 14.14% NCCMT Government Portfolio 24.54%

At June 30, 2019, the City’s OPEB Trust had $23,133,424 invested in the State Treasurer’s Local Government Other Post- Employment Benefits (OPEB) Trust pursuant to G.S. 159-30.1. The State Treasurer’s OPEB Trust may invest in public equities and both long-term and short-term fixed income obligations as determined by the State Treasurer pursuant to the General Statutes. At year-end, the State Treasurer’s OPEB Trust was invested as follows: State Treasurer’s STIF 5.21%; State Treasurer’s BIF 33.66% and BlackRock’s MSCI ACWI EQ Index Non-Lendable Class B Fund 61.13% (the equities were split with 53.72% in domestic securities and 46.28% in international securities). The City’s LEOSSA Trust had $7,234,089 invested in the State Treasurer’s STIF at June 30, 2019. At year-end, the State Treasurer’s LEOSSA Trust was invested as follows: State Treasurer’s STIF 0.12%; State Treasurer’s BIF 37.77% and BlackRock’s MSCI ACWI EQ Index Non-Lendable Class B Fund 62.11%. a. Hedging Derivative Instruments

Objective of the Interest Rate Swaps

As a means to convert variable rate obligations to synthetic fixed rate obligations to reduce the overall variable rate exposure of the City, the City entered into an interest rate swap agreement with Bank of America Merrill Lynch in October 2002, in connection with its $5,700,000 Series 1998 Variable Rate General Obligation Bonds. The intention of the swap was to effectively change the City’s interest rate on the bonds to a synthetic fixed rate of 3.46%.

Swap Terms

The bonds and the related swap agreement will mature on April 1, 2020. At inception, the swap notional amount of $5,700,000 matched the $5,700,000 variable-rate bonds outstanding. Starting in Fiscal Year 2019, the notional value and the principal amount of the associated debt declined. Under the swap, the City pays the counterparty a fixed payment of 3.46% and receives a variable payment computed as 67% of 1 Month London Interbank Offered Rate (LIBOR). The bonds’ variable rate coupons are closely associated with the Securities Industry and Financial Markets Municipal Swap Index (SIFMA).

Fair Value

Because interest rates were lower on June 30, 2019 than at the date of the execution of the swap, the swap had an estimated fair value as of June 30, 2019 of ($52,895). The mark-to-market valuation was established by market quotations from the counterparty representing estimates of the amounts that would be paid for replacement transactions.

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Credit Risk

As of June 30, 2019, the City is not exposed to credit risk of the counterparty given the derivatives’ negative fair values. The counterparty was rated Aa2 by Moody’s Investors Services (Moody’s), A+ by Standard and Poor’s (S&P) and AA- by Fitch Ratings (Fitch) at June 30, 2019. No collateral or other security is required to support the hedging derivative instruments’ credit risk. No master netting arrangements are maintained as there is only one counterparty to the transactions.

Interest Rate/Basis Risk

As noted above, the swap exposes the City to basis risk should the relationship between 67% of 1 Month LIBOR and SIFMA diverge, changing the synthetic rate on the bonds. The effect of this difference in basis is indicated by the difference between the intended synthetic rate of 3.46% and the actual synthetic rate during 2019 of 3.43%. As of June 30, 2019, the rate on the City’s bonds was 1.98% whereas 67% of 1 Month LIBOR was 1.61%.

Termination Risk

The derivative contract uses the International Swap Dealers Association Master Agreement, which includes standard termination events, such as failure to pay and bankruptcy. The City will have the right to terminate the swap at any time over the life of the swap at the current market value on short-term notice. The respective Schedule to the respective Master Agreement includes an “additional termination event.” That is, the swap may be terminated by the counterparty if the outstanding debt of the City, secured by its faith, credit and taxing power, ceases to be rated at least A3 by Moody’s or any successor thereto, A- by S&P or any successor thereto, or A- by Fitch, or any successor thereto or shall fail to be rated by at least one of Moody’s, S&P, and Fitch. The City or the counterparty may terminate the swap if the other party fails to perform under the terms of the contract. If the swap is terminated, the variable-rate bonds would no longer carry a synthetic interest rate. Termination will result in the City either making or receiving a termination payment based upon the market value on the date of termination.

Market Access Risk/Roll Over Risk The City’s swap is for the term (maturity) of the bonds and therefore there is no market-access risk or rollover risk.

Method of Evaluating Hedge Effectiveness

The City evaluated its derivative instrument by using the synthetic instrument quantitative method and deemed the instrument to be an effective hedge as of June 30, 2019.

B. Long-Term Notes Receivable

The City entered into an agreement with Duke Power Company, effective July 1, 1991, which authorized the discontinuance of transit services provided by Duke Transit in Greensboro, pursuant to a franchise agreement scheduled to expire on July 1, 2028. In exchange, the City is to receive $55,500,000 in 37 equal annual installments of $1,500,000 from Duke Power Company with the first installment on July 1, 1991 and the final installment on July 1, 2027, to assist in financing operations of the GTAC. The annual payment is secured by a First and Refunding Mortgage Bond issued by Duke Power Company to the City. The present value of the note receivable as of June 30, 2019 is $9,011,179. Interest income of $3,682,320 will be recognized by the effective yield method over the remaining 8-year term of the note, based on an imputed interest rate of 8.95%.

Terms of certain of the notes receivable of the Redevelopment Commission are such that principal and interest may be forgiven upon meeting certain conditions. In addition, corresponding revenue was not recognized at the government-wide financial statement level because the loans were not considered substantially collectible.

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C. Capital Assets

Capital asset activity of the year ended June 30, 2019 was as follows:

Beginning Ending Balance Increases Adjustments Decreases Balance Governmental Activities: Capital Assets, Non-depreciable: Land$ 99,422,043 $ 4,056,070 $ (1,897,032) $ (4) $ 101,581,077 Construction in Progress 13,419,839 8,524,480 (6,323,389) 15,620,930 Total Capital Assets Non-Depreciable 112,841,882 12,580,550 (1,897,032) (6,323,393) 117,202,007

Capital Assets, Depreciable: Buildings 188,139,852 5,187,471 (18,396) 193,308,927 Improvements Other Than Buildings 45,768,976 570,759 46,339,735 Furniture, Fixtures, Machinery and Equipment 171,939,064 18,666,721 (8,266,550) 182,339,235 Infrastructure 334,264,159 13,125,248 1,897,032 349,286,439 Intangible Assets - Software & Licenses 4,240,843 (71,908) 4,168,935 Total Capital Assets, Depreciable 744,352,894 37,550,199 1,897,032 (8,356,854) 775,443,271

Less Accumulated Depreciation For: Buildings (86,918,914) (4,677,145) 16,375 (91,579,684) Improvements Other Than Buildings (21,869,809) (1,928,926) (23,798,735) Furniture, Fixtures, Machinery and Equipment (114,688,616) (15,612,138) 7,899,524 (122,401,230) Infrastructure (155,243,783) (7,079,268) (162,323,051) Intangible Assets - Software & Licenses (4,200,308) (27,956) 71,908 (4,156,356) Total Accumulated Depreciation (382,921,430) (29,325,433) 7,987,807 (404,259,056)

Total Capital Assets, Depreciable, Net 361,431,464 8,224,766 1,897,032 (369,047) 371,184,215

Capital Assets, Net Governmental Activities$ 474,273,346 $ 20,805,316 $ $ (6,692,440) $ 488,386,222

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Beginning Ending Balance Increases Adjustments Decreases Balance Business-Type Activities: Capital Assets, Non-Depreciable: Land$ 55,001,004 $ 8,829,488 $ (1,679,909) $ $ 62,150,583 Construction in Progress 117,735,389 113,378,739 (52,250,557) 178,863,571 Intangible Assets - Easements 23,931,325 1,117,952 25,049,277 Total Capital Assets Non-Depreciable 196,667,718 123,326,179 (1,679,909) (52,250,557) 266,063,431

Capital Assets, Depreciable: Buildings 350,917,138 48,396,254 1,679,909 400,993,301 Improvements Other Than Buildings 60,043,252 983,680 61,026,932 Furniture, Fixtures, Machinery and Equipment 101,569,489 11,873,797 (4,011,045) 109,432,241 Infrastructure 735,742,903 11,969,409 (38,560) 747,673,752 Intangible Assets: Water Rights, Software & License 95,901,565 1,199,311 97,100,876 Total Capital Assets, Depreciable 1,344,174,347 74,422,451 1,679,909 (4,049,605) 1,416,227,102

Less Accumulated Depreciation/Amortization for: Buildings (159,543,142) (11,813,749) (83,994) (171,440,885) Improvements Other Than Buildings (30,312,068) (1,987,207) (32,299,275) Furniture, Fixtures, Machinery and Equipment (54,092,191) (6,492,488) 3,959,367 (56,625,312) Infrastructure (333,801,400) (16,404,078) 1,928 (350,203,550) Intangible Assets: Water Rights, Software & License (19,326,131) (2,040,152) (21,366,283) Total Accumulated Depreciation/Amortization (597,074,932) (38,737,674) (83,994) 3,961,295 (631,935,305)

Total Capital Assets, Depreciable, Net 747,099,415 35,684,777 1,595,915 (88,310) 784,291,797

Capital Assets, Net Business-Type Activities$ 943,767,133 $ 159,010,956 $$ (52,338,867) $ 1,050,355,228

Depreciation/Amortization expense was charged to functions/programs of the primary government as follows:

Governmental Activities: Gen eral Go v ern men t$ 162,206 Public Safety 1,831,120 Transportation, including depreciation of general infrastructure assets 7,360,620 Field Operations 31,769 Engineering and Building Maintenance 707,681 Culture and Recreation 4,480,880 Capital assets held by the government's Internal Service Funds are charged to the various functions based on their usage of the assets 14,751,157 Total depreciation, amortization expense - Governmental Activities$ 29,325,433

Business-Type Activities: Water Resources Fund, including depreciation of infrastructure assets$ 29,080,866 Stormwater Management Fund 1,987,499 Coliseum Fund 3,234,560 Parking Facilities Fund 569,538 Solid Waste Management Fund 433,564 GTA C 3,431,647 Total depreciation, amortization expense - Business-Type Activities$ 38,737,674

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Construction Commitments

The City has construction commitments on capital projects at June 30, 2019 as follows:

Governmental Funds: Special Revenue $ 2,246,050 Capital Projects 53,614,190 Total Governmental Funds 55,860,240

Enterprise Funds: Water Resources 71,598,223 Stormwater Management 306,967 Coliseum 21,506,871 Other Enterprise 1,134,679 GTAC 51,570 Total Enterprise Funds 94,598,310

$ 150,458,550

Activity for ABC Board for the year ended June 30, 2019, was as follows:

Beginning Balance Increases Decreases Ending Balance Capital Assets, Non-depreciable: Land$ 1,784,586 $ 2,394,595 $ $ 4,179,181

Capital Assets, Depreciable: Buildings 4,784,477 1,810,855 (9,055) 6,586,277 Improvements Other Than Buildings 521,205 521,205 Furniture, Fixtures, Machinery and Equipment 2,611,536 219,704 (17,041) 2,814,199 Total Capital Assets, Depreciable 7,917,218 2,030,559 (26,096) 9,921,681

Less Accumulated Depreciation/Amortization for: Buildings (1,243,726) (124,381) 17,041 (1,351,066) Improvements Other Than Buildings (447,610) (31,196) (478,806) Furniture, Fixtures, Machinery and Equipment (1,971,748) (252,746) (2,224,494) Total Accumulated Depreciation (3,663,084) (408,323) 17,041 (4,054,366)

Total Capital Assets, Depreciable-Net 4,254,134 1,622,236 (9,055) 5,867,315

ABC Board Capital Assets, Net$ 6,038,720 $ 4,016,831 $ (9,055) $ 10,046,496

D. Closure and Postclosure Care Cost – White Street Landfill

The City owns and operates a regional landfill site located in the northeast portion of the City. State and federal laws require the City to place a final cover on its White Street landfill site and to perform certain maintenance and monitoring functions at the site for thirty years after closure. The City reports a portion of these closure and postclosure care costs as an operating expense in each period based on landfill capacity used as of each June 30. The $27,160,557 reported as landfill closure and postclosure care liability at June 30, 2019 is based on 100% use of the estimated capacity of Phase II and Phase III, Cells 1 and 2. Phase III, Cell 3 is estimated at 57.5% of capacity.

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In November 2005, the City issued $8.4 million in Special Obligation bonds for the purpose of constructing a solid waste transfer facility. This facility, which opened in 2006, is located in an industrial section of western Greensboro and accepts waste from the City’s solid waste collection services and from private haulers, with waste transported off-site daily to a private site outside of the City. It is expected that White Street Landfill will only be utilized for disposal of construction, demolition debris, yard waste and certain incinerated waste and in the event that the transfer station is not operational.

The estimated liability amounts are based on what it would cost to perform all closure and postclosure care in the current year. Actual costs may be higher due to inflation, changes in technology, or changes in regulations. At June 30, 2019, the City had expended $3,876,035 to complete closure of the White Street facility, Phase II and $2,535,980 to begin closure activities at the construction and demolition site located on top of the municipal waste filled space. The balance of closure costs, estimated at $13,934,794 and an estimated $13,225,763 for postclosure care will be funded over the remaining life of the landfill, estimated to be 20 to 25 years.

E. Pollution Remediation Obligations

Greensboro staff have identified specific City-owned properties where either it is known or reasonably believed that the sites contain certain pollutants. Most of the properties have not completed an environmental assessment of the impact or have active remediation systems in place, however each site has been reported to a North Carolina regulatory agency as having a current or reportable incident, thus voluntarily obligating the City for certain remediation activities. In addition, the City entered an administrative agreement with a state agency to voluntarily assess a site. None of the reported pollution creates an imminent endangerment to public health or welfare and many of the sources of impact have already been eliminated, as reasonably appropriate.

An estimated pollution remediation obligation of $1,553,535 is recorded in the Statement of Net Position in the Solid Waste Management Enterprise Fund. This amount reflects current estimates for groundwater pollution remediation noted at the City’s White Street landfill, in an active part of the disposal site, not associated with closure and postclosure activities. City staff has voluntarily worked with appropriate State regulators to assess the environmental impact and to develop a corrective action plan. The estimated cost of remediation is based on an external consultant’s estimate for the corrective action plan, which involves phyto-remediation and monitored natural attenuation activities. Should further activities become necessary, such as constructing a pump and treat system, cost estimates would then be re-evaluated. Remediation activities began in Fiscal Year 2010 and are ongoing.

Additional pollution remediation activities have been identified by the City relating to a former industrially-impacted property purchased in 1999 to house certain public safety and Water Resources operations. A Phase I Remedial Assessment was prepared by an external consultant in 2019 that focused on groundwater contamination. As of June 30, 2019, the City recorded an estimated pollution remediation obligation of $2,736,292 in the Water Resources Enterprise Fund and an additional $1,303,708 in the government-wide financial statements for public safety operations. City officials deem use of biobarrier methods to be the probable course of remediation action.

Certain other sites associated with pollution activity within the City have been identified, primarily pertaining to former waste disposal or prior property use; however, costs for remediation activities are not estimable as of June 30, 2019.

In addition, we estimate no future recoveries to potentially reduce the recorded pollution liabilities in Fiscal Year 2019.

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F. Interfund Receivables, Payables and Transfers

The following is a schedule of interfund receivables and payables due to/from primary government and component units at June 30, 2019:

1. Internal Receivables/Payables: Housing Partnership Revolving Fund Receivable by: Non-Major Governmental Funds$ 673,850

Current Payable From: Non-Major Governmental Funds Community Development Block Grant$ 673,850

2. Due To/From Primary Government and Component Unit:

Receivable By: Gen eral Fu n d Payable From: Component Unit - ABC Board$ 1,147,643

Internal receivables and payables were recorded due to timing lags in receipt of funds from outside parties. Current internal balances represent amounts advanced to the Community Development Block Grant Fund ($673,850).

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3. Interfund Transfers: Non-Major Internal General Governmental Service Fund Funds Funds

Transfers From: $ (36,495,366) $ (23,346,062) $ (108,503)

Transfers To: General Fund $ $ 6,693,800 $ 53,000 Debt Service Fund 23,405,610 Non-major Governmental Funds 1,014,270 2,229,887 Enterprise Funds: Coliseum 3,092,531 13,858,125 Solid Waste Management 1,830,537 Greensboro Transit Advisory Commission 564,250 Internal Service Funds 7,152,418 55,503 Total$ 36,495,366 $ 23,346,062 $ 108,503

Greensboro Transit Advisory Commission Fund Total

Transfers From: $ (49,227) $ (59,999,158)

Transfers To: General Fund $ $ 6,746,800 Debt Service Fund 23,405,610 Non-Major Governmental Funds 49,227 3,293,384 Enterprise Funds: Coliseum 16,950,656 Solid Waste Management 1,830,537 Greensboro Transit Advisory Commission 564,250 Internal Service Funds 7,207,921 Total$ 49,227 $ 59,999,158

Transfers are used to move unrestricted revenues to finance various programs that the government must account for in other funds in accordance with budgetary authorizations, including amounts provided as matching funds for various grant programs.

The Greensboro ABC Board transferred $4,530,893 to the General Fund in Fiscal Year 2019, which was recorded as Intergovernmental Revenue.

G. Long-Term Debt

Long-term Bonded Debt of the City consists of General Obligation Bonds, which are collateralized by the full faith, credit and taxing power of the City and are issued for both general governmental improvements and for Proprietary Fund purposes. The City’s legal debt margin as of June 30, 2019 is $1,822,980,487. Long-term Bonded Debt consists of the following:

1. General Governmental Improvement General Obligation Bonds

These outstanding tax-exempt and taxable bonds bear interest, payable monthly, at variable rates along with interest payable semi-annually at fixed rates from 2.00% to 5.00%. The outstanding tax-exempt and taxable variable rate bonds are reported at 1.70%, and 2.37%, respectively as of June 30, 2019. Principal is payable annually in varying amounts through 2039. 37y

On April 12, 2017, the City entered into an agreement with PNC Bank, National Association for a direct placement General Obligation Bond Anticipation Note drawdown program in the amount of $50,000,000. The funds were used for improvements at the Greensboro Science Center, Street Improvements and Parks and Recreation Facilities. The note was refunded as part of the 2018 General Obligation Bonds issued on October 17, 2018 at which time $37,410,964 of the notes had been drawn down.

On June 27, 2018, the City entered into agreements with Oppenheimer & Co., Inc. and Wells Fargo Bank, N.A. for taxable and non-taxable direct placement General Obligation Bond Anticipation Note drawdown programs for $14,570,000 with $5,325,000 being taxable and $9,245,000 being non-taxable. The non-taxable funds were spent for Parks and Recreation, Transportation, and Community & Economic Development projects. The taxable funds were spent for housing projects. These notes were refunded as part of the 2018 General Obligation Bonds issues on October 17, 2018.

On October 17, 2018, the City issued $135,360,000 tax-exempt General Obligation Bonds Series 2018B bearing interest payable semiannually at fixed rates of 3.25% to 5.00% on April 1 and October1, with final maturity in 2038. On October 17, 2018, the City issues $10,400,000 taxable General Obligation Bonds Series 2018A bearing interest payable semiannually at fixed rates of 2.70% to 2.90% on April 1 and October 1, with final maturity in 2020. The proceeds of the Series 2018 bonds were used to refund Series 2017 Bond Anticipation Notes and Series 2018A&B Bond Anticipation Notes and to provide funds for public improvement projects.

General Obligation Bonds $283,566,068

2. Internal Services Improvement General Obligation Bonds

This obligation, issued in 1998, relates to a public safety communications system and is recorded in the Technical Services Fund. Debt service will be covered by fees charged to other internal departments.

General Obligation Bonds 438,932 Total $284,005,000

3. Limited Obligation Notes

On May 17, 2016, the City entered into an agreement with Wells Fargo Bank, N.A. for direct placement Limited Obligation Notes in the amount of $20,000,000, for coliseum improvements with a principal amount of $14,000,000 being non-taxable and $6,000,000 being taxable. The notes were refunded as part of the 2018 Limited Obligation Bonds issued on November 1, 2018, at which time $14,250,706 of the notes had been drawn down.

4. Defeased Bonds

In prior years, the City defeased General Obligation Bonds by placing the proceeds of new bonds in an irrevocable trust to provide for all future debt service payments on the old debt. Accordingly, the trust account assets and the liability for the defeased bonds are not included in the City’s financial statements. At June 30, 2019, $19,795,000 of General Obligation Bonds outstanding are considered defeased. For details of all General Obligation outstanding bond issues refer to the Schedule of General Long Term Debt on pages 167-170.

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5. General Obligation Bonds Debt Service Requirements to Maturity are:

Governmental Activities Annual Requirements Fiscal Year Principal Interest Total 2019-20$ 22,345,000 $ 10,781,149 $ 33,126,149 2020-21 21,815,000 9,963,754 31,778,754 2021-22 22,465,000 9,130,656 31,595,656 2022-23 19,690,000 8,239,080 27,929,080 2023-24 17,565,000 7,492,523 25,057,523 2024-29 80,960,000 27,147,486 108,107,486 2029-34 56,205,000 12,931,039 69,136,039 2034-39 42,960,000 3,781,763 46,741,763 $ 284,005,000 $ 89,467,450 $ 373,472,450

6. Limited Obligation Bonds

On October 7, 2014, the City issued $24,450,000 in Limited Obligation Bonds Series 2014 bearing interest payable semiannually at fixed rates from 2.0% to 5.0% on April 1 and October 1, with final maturity in 2040. The original issue premium amounted to $1,587,051. The proceeds of these bonds were used to retire the $24,000,000 limited obligation notes issued on June 1, 2012. The proceeds of the note were used for coliseum improvements.

On February 14, 2018, the City issued $43,450,000 in Limited Obligation Bonds Series 2018 bearing interest payable semiannually at fixed rates from 2.0% to 4.0% on February 1 and August 1, with final maturity in 2043. The proceeds of these bonds were used to retire the 2014 Installment Financing Agreements with PNC Bank issued in November 2014, and additional proceeds needed for acquiring, constructing and equipping the Steven Tanger Center for the Performing Arts.

On November 1, 2018 the City issued $20,645,000 tax-exempt Limited Obligation Bonds Series 2018A bearing interest payable semiannually at fixed rates of 3.25% to 5.00% on April 1 and October 1, with final maturity in 2044. On November 1, 2018, the City issued $11,450,000 taxable Limited Obligation Bonds Series 2018B bearing interest payable semiannually at fixed rates of 3.32% to 4.31% on April 1 and October 1, with a final maturity in 2031. The proceeds of the Series 2018 bonds were used together with any other available funds to repay the 2016 limited obligation notes, prepay the outstanding 2010 Certificates of Participation and pay for additional improvements to the City’s Coliseum Complex.

The property is pledged as collateral for the debt while the debt is outstanding. In the event of default, the City agrees to pay to the purchaser, on demand, interest on any and all amounts due and owing by the City under the related Limited Obligation Bond agreement.

Governmental Activities Business-Type Activities Annual Requirements Annual Requirements Fiscal Year Principal Interest Principal Interest Total 2019-20$ 1,680,000 $ 2,535,880 $$ 1,583,022 $ 5,798,902 2020-21 1,745,000 2,182,698 1,280,000 1,583,022 6,790,720 2021-22 1,805,000 2,118,976 1,315,000 1,549,792 6,788,768 2022-23 1,855,000 2,066,711 1,350,000 1,513,156 6,784,867 2023-24 1,935,000 1,989,565 1,390,000 1,473,520 6,788,085 2024-29 10,955,000 8,672,827 7,650,000 6,671,632 33,949,459 2029-34 11,625,000 6,333,855 9,095,000 5,229,112 32,282,967 2034-39 13,015,000 3,823,215 10,960,000 3,363,897 31,162,112 2039-44 9,445,000 1,130,782 10,410,000 1,047,206 22,032,988 $ 54,060,000 $ 30,854,509 $ 43,450,000 $ 24,014,359 $ 152,378,868

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7. Special Obligation Bonds

On November 17, 2005, the City issued $8,400,000 in Special Obligation Bonds Series 2005 bearing interest payable semiannually at fixed rates from 3.75% to 5.0% on June 1 and December 1, with final maturity in 2020. The original issue premium amounted to $224,026. The proceeds of these bonds were used for the construction of a solid waste transfer station along with related equipment and improvements.

A portion of the Local Option Sales Tax is pledged for payment of debt service on the Bonds. Certain financial covenants are contained in the bond order, among the most restrictive of which provide the City maintain a long-term debt service ratio, as defined, of not less than 2.0. The coverage ratio at June 30, 2019 is 27.66. The City demonstrated compliance with bond covenants during Fiscal Year 2018-19. In the event of default, the City agrees to pay to the purchaser, on demand, interest on any and all amounts due and owing by the City under the related Special Obligation Bond agreement.

Special Obligation Bonds Debt Service Requirements to Maturity are:

Annual Requirements Fiscal Year Principal Interest Total 2019-20$ 785,000 $ 39,250 $ 824,250

8. Combined Enterprise System Revenue Bonds and Anticipation Notes

The City has participated in the capital markets by issuing over $200 million Combined Enterprise System Revenue Bonds since 1995, to fund the on-going capital improvement program of the City’s water and sanitary sewer utility. Certain maturities of the debt through 2009 have been defeased, by placing the proceeds of the new bonds in an irrevocable trust to provide for all future debt service payments on the old debt. Accordingly, the trust account assets and the liability for the defeased bonds are not reflected in the City’s financial Statements. At June 30, 2019, $167,725,000 of Combined Enterprise System Revenue Bonds is considered defeased. The Combined Enterprise System is currently comprised of only the City’s water and sanitary sewer system. Principal and interest requirements will be provided by an appropriation in the year in which they become due. In the event of default, the City agrees to pay to the purchaser, on demand, interest on any and all amounts due and owing by the City under the related Revenue Bonds or Note agreements.

On June 14, 2018 the City entered into an agreement with PNC Bank, N.A. for a direct placement Combined Enterprise System Revenue Bond Anticipation Note drawdown program in the amount of $85,000,000. As of June 30, 2019, $37,171,789 has been drawn down for improvements to the City’s water and sewer systems. The unused note amount as of June 30, 2019 is $47,828,211. This agreement committed funds for the water and sewer improvements for 2018-2020 capital projects.

On August 17, 2017, the City issued $90,690,000 Series 2017 A&B Refunding Combined Enterprise System Revenue Bonds payable semiannually at a fixed rate ranging from 3.25% to 5.0% on June 1 and December 1. The $64,700,000 Series 2017A matures on June 1, 2047; the bond was issued to redeem in whole $43,316,551 of the City’s Combined Enterprise System Revenue Bond Anticipation Note, Series 2016, and the remaining cost of improvements of the 2017 Water & Sewer projects. The $25,990,000 Series 2017B matures on December 1, 2030; the bond was issued to defease $29,600,000 of the City’s Combined Enterprise System Revenue Green Bonds, Series 2009A. The aggregate difference in debt service between the refunded debt net cash flow of $42,013,400 and the refunding debt net cash flow of $36,703,482 was $5,309,918. The net proceeds of $31,673,412 (after payment of $701,122 in underwriting fees and other issuance cost) were placed in escrow in an irrevocable trust to provide for all future debt service payments on the old certificates. As a result, a portion of the liability for the 2016 Bond Anticipation Note and 2009A Series has been removed from the Water Resources Fund. The net present value savings as a result of the refunding was $4,033,863.

On February 1, 2016, the City issued $29,310,000 Series 2016 Refunding Combined Enterprise System Revenue Bonds payable semiannually at a fixed rate ranging from 2.0% - 5.0% on June 1 and December 1, with a final maturity in 2045. This bond was issued to redeem in whole the City’s Combined Enterprise System Revenue Bond Anticipation Note Series 2014 which had an outstanding principal amount of $30,000,000 and has been removed from the Water Resources Fund.

On June 23, 2015, the City issued $33,985,000 Series 2015 Refunding Combined Enterprise System Revenue Bonds payable semiannually at a fixed rate ranging from 3.0% - 5.0% on June 1 and December 1, with a final maturity in 2029. This bond was issued to defease $35,810,000 of certain Series 2007A and 2014A Combined Enterprise System Revenue

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Bonds. The aggregate difference in debt service between the refunded debt net cash flow of $36,783,650 and the refunding debt net cash flow of $34,459,828 was $2,323,822. The net proceeds of $37,983,527 (after payment of $439,177 in underwriting fees and other issuance cost) were placed in escrow in an irrevocable trust to provide for all future debt service payments on the old certificates. As a result, a portion of the liability for the 2007A and 2014A Series Revenue Bonds have been removed from the Water Resources Fund. The net present value savings as a result of the refunding was $1,986,402.

On July 23, 2014 the City issued $70,665,000 Series 2014A Refunding Combined Enterprise System Revenue Bonds payable monthly at a variable rate reported of 1.70% at June 30, 2019, with a final maturity in 2034. The bond was issued to defease $70,190,000 of certain Series 1998B, 2001B, 2003B, 2005B, 2007B, and 2009B variable rate bonds. The net proceeds of $70,190,000, after payment of $475,000 in underwriting and other issuance cost, were placed in escrow in an irrevocable trust to provide for all future debt payments on defeased certificates. As a result, the 1998B, 2001B, 2003B, 2005B, 2007B and 2009B Series Revenue Bonds have been removed from the Water Resources Fund.

On May 23, 2012, the City issued $35,185,000 Series 2012A Refunding Combined Enterprise System Revenue Bonds payable semiannually at a fixed rate ranging from 3.0% - 5.0% on June 1 and December 1, with a final maturity in 2027. This bond was issued to defease $40,885,000 of certain Series 2005A and 2005B Combined Enterprise System Revenue Bonds. The aggregate difference in debt service between the refunded debt net cash flow of $52,897,408 and the refunding debt net cash flow of $50,868,670 is $2,028,738. The net proceeds of $41,599,354 (after payment of $482,377 in underwriting fees and other issuance cost) were placed in escrow in an irrevocable trust to provide for all future debt service payments on the old certificates. As a result, a portion of the liability for the 2005 Series Revenue Bonds has been removed from the Water Resources Fund. The proceeds of these bonds, along with the $3,200,000 received from the origination of Series 2012B federally taxable Combined Enterprise System Revenue Refunding Bonds, were used to terminate the associated 2005B interest rate swap agreement. The net present value savings as a result of the refunding was $1,790,610.

On June 1, 2009, the City issued $43,180,000 Series 2009A Enterprise System Revenue Bonds payable semiannually at a fixed rate ranging from 3.5% to 5.0% on June 1 and December 1, with a final maturity in 2031. In addition, the City issued $10,000,000 in 2009B variable rate Combined Enterprise System Revenue Bonds with interest payable monthly through 2034. The original issue premium amounted to $1,547,280. The proceeds of these bonds have been used for improvements to the City of Greensboro’s water system. Also, refer to the 2017 Refunding Bonds.

On December 7, 2006, the City issued $49,480,000 Series 2006 Refunding Combined Enterprise System Revenue Bonds at a fixed rate of 4.0% to 5.25% with a final maturity in 2025. These bonds were issued to defease a portion of Combined Enterprise System Bond Series 1998A, 2001A and 2003A. The amounts were refunded at $13,820,000, $19,290,000 and $19,150,000, respectively for a total defeasance of $52,260,000. The aggregate difference in debt service between the refunded debt net cash flow of $84,860,919 and the refunding debt net cash flow of $81,028,550 is $3,832,369. The net proceeds of $54,971,117 (after payment of $506,736 in underwriting fees, accrued interest, call premium and other issuance cost) were placed in escrow in an irrevocable trust to provide for all future debt service payments on the old certificates. The net present value interest savings as a result of the refunding was $2,557,141. As a result, the liabilities for a portion of the 1998A, 2001A and 2003A Series Revenue Bonds have been removed from the Water Resources Fund. The proceeds of these bonds were used for improvements to the City’s water and sanitary sewer system and other issue costs.

The City has pledged 100% of future water and sewer customer revenues, net of specified operating expenses to the payment of and as security for the Revenue Bonds in the amounts shown below specifically to cover annual debt service through 2047. This pledge relates to all Combined Enterprise Revenue bonds outstanding, issued for the purpose of making water and sewer system improvements. Certain financial covenants are contained in the revenue bond order, among the most restrictive of which provide that the City maintain a long-term debt service coverage ratio, as defined, of not less than 1.50. Pledged revenues exceeded operating expenses by $54,305,551 to provide a coverage ratio of 2.08 at June 30, 2019. The City was in compliance with all such covenants during Fiscal Year 2018-19.

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Revenue Bonds/Anticipation Notes Debt Service Requirements to Maturity are:

Business-Type Activities Annual Requirements Fiscal Year Principal Interest Total 2019-20 (1) $ 52,716,789 $ 9,627,773 $ 62,344,562 2020-21 16,330,000 8,043,884 24,373,884 2021-22 17,810,000 7,237,552 25,047,552 2022-23 14,910,000 6,544,422 21,454,422 2023-24 15,645,000 5,902,898 21,547,898 2024-29 65,455,000 21,651,993 87,106,993 2029-34 43,400,000 12,462,659 55,862,659 2034-39 18,580,000 8,202,638 26,782,638 2039-44 21,995,000 4,788,851 26,783,851 2044-47 11,980,000 895,813 12,875,813 $ 278,821,789 $ 85,358,483 $ 364,180,272

(1) Includes Direct Placement Bond Anticipation Notes of $37,171,789, in prinicpal

and $838,715 in interest, scheduled to mature in Fiscal Year 2020.

9. Certificates of Participation

In September 2010, the Greensboro Center City Corporation (GCCC) issued $7,000,000 Certificates of Participation for purposes of the Coliseum Complex Aquatic Center. Certificates of Participation of the GCCC have been issued in prior years for parking facilities, expansion and improvements to the Coliseum Complex, and equipment purchases. All certificates are matured, except those relating to the Coliseum Complex – Aquatic Center, which were defeased with the Limited Obligation Bonds issued on November 1, 2018.

10. Lease-Purchase and Other Financing Agreements

The City has entered into lease-purchase and other financing agreements for certain energy improvements, and land payable monthly and quarterly through 2026. Principal and interest requirements will be provided by an appropriation in the year in which they become due.

The City has an outstanding direct placement Master Lease Agreement totaling $2,450,400 as of June 30, 2019, with PNC Bank for certain energy improvements, at a fixed tax-exempt rate of 4.38%, maturing in 2022. In addition, the City has a direct placement Master Lease agreement with Bank of America at a fixed interest rate of 3.765%, maturing in 2020. This agreement, of which $182,904 is outstanding as of June 30, 2019, was issued for Coliseum energy improvements. In the event of default of either the Master Lease Agreement with PNC Bank or Bank of America, the City agrees to pay to the purchaser, on demand, interest on any and all amounts due and owing by the City under the related agreements.

The City has a grand total of $2,633,304 in master lease agreements and installment financings to finance energy improvements. The City also has a total of $13,577,742 in capital leases primarily for information technology systems.

In 2015, the City issued $3,578,000 HUD Section 108 Series 2015A notes and refinanced Series 2002A, 2003A and 2006 S. Elm Street interim notes. These notes bear interest at fixed rates ranging from 2.78 to 8.12% maturing in 2026. Total notes outstanding as of June 30, 2019 for HUD funding are $2,982,000 with an original commitment of $10,461,000. In the event of default, the City agrees to pay to the purchaser, on demand, interest on any and all amounts due and owing by the City under the related agreements.

In July 2005, the City merged fire operation with Rural Fire District #14 located in eastern Guilford County and assumed an outstanding direct placement obligation of $422,898 at a fixed rate of 5.75% maturing in 2019 which is collateralized by the District’s real property. The outstanding obligation was paid in full as of June 30, 2019.

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Lease Purchase and Other Financing Agreements Debt Service Requirements to Maturity are:

Governmental Activities Business-Type Activities (1) (1) Annual Requirements Annual Requirements Fiscal Year Principal Interest Principal Interest Total 2019-20$ 4,656,272 $ 647,614 $ 182,904 $ 3,443 $ 5,490,233 2020-21 4,216,015 474,543 4,690,558 2021-22 3,795,125 284,209 4,079,334 2022-23 1,590,844 202,074 1,792,918 2023-24 1,529,187 146,527 1,675,714 2024-26 3,222,699 122,590 3,345,289 $ 19,010,142 $ 1,877,557 $ 182,904 $ 3,443 $ 21,074,046

(1) Direct Placement Master Lease Agreements included are scheduled to mature as follows:

Governmental Activities Business-Type Activities Annual Requirements Annual Requirements Fiscal Year Principal Interest Principal Interest Total 2019-20$ 620,910 $ 99,916 $ 182,904 $ 3,443 $ 907,173 2020-21 684,060 70,051 754,111 2021-22 1,145,430 4,596 1,150,026 $ 2,450,400 $ 174,563 $ 182,904 $ 3,443 $ 2,811,310

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11. Changes in Long-Term debt are as follows:

Long-term liability activity for the year ended June 30, 2019, was as follows: Beginning Ending Due Within Balance, Restated Additions Reductions Balance(1) One Year Governmental Activities: Bonds and Notes Payable: General Obligation Bonds$ 152,730,000 $ 145,760,000 $ (14,485,000) $ 284,005,000 $ 22,345,000 Premium on General Obligation Bonds 10,674,246 10,076,300 (2,099,129) 18,651,417 2,824,157 Direct Placement GO BANS 50,621,922 1,359,042 (51,980,964) Premium on Direct Placement BANS 41,668 (41,668) Limited Obligation Bonds 22,620,000 32,095,000 (655,000) 54,060,000 1,680,000 Premium on Limited Obligation Bonds 1,279,542 1,379,663 (102,503) 2,556,702 299,656 Direct Placement Limited Obligation Notes 13,684,016 566,690 (14,250,706) Certificates of Participation 5,335,000 (5,335,000) Premium on Certificates of Participation 246,691 (246,691) Section 108 HUD Loan 3,612,000 (630,000) 2,982,000 645,000 Direct Placement Fire Station Loan 42,361 (42,361) Direct Placement Master Lease Agreement 3,012,600 (562,200) 2,450,400 620,910 Total Debt Payable 263,900,046 191,236,695 (90,431,222) 364,705,519 28,414,723

Other Liabilities Net Pension Liability (LGERS)(3) 32,937,759 16,432,608 49,370,367 Net Pension Liability (LEOSSA)(3) 25,045,923 (2,797,267) 22,248,656 Net OPEB Liability(3) 107,477,514 (13,404,647) 94,072,867 Capital Leases 14,314,393 2,748,121 (3,484,772) 13,577,742 3,390,362 Compensated Absences(2) 13,146,554 8,771,946 (8,452,248) 13,466,252 7,601,101 Governmental Activity (1) Long-Term Liability $ 456,822,189 $ 219,189,370 $ (118,570,156) $ 557,441,403 $ 39,406,186

Business-Type Activities: Bonds and Notes Payable: Special Obligation Bonds$ 1,535,000 $ $ (750,000) $ 785,000 $ 785,000 Revenue Bonds 257,785,000 (16,135,000) 241,650,000 15,545,000 Premium on Revenue Bonds 17,567,318 (4,078,845) 13,488,473 3,721,931 Direct Placement Revenue BANS 8,552,671 28,619,118 37,171,789 37,171,789 Direct Placement Master Lease Agreement 530,212 (347,308) 182,904 182,904 Limited Obligation Bonds - Performing Arts 43,450,000 43,450,000 Total Debt Payable 329,420,201 28,619,118 (21,311,153) 336,728,166 57,406,624

Other Liabilities Net Pension Liability (LGERS)(3) 6,297,681 3,362,701 9,660,382 Net OPEB Liability(3) 22,681,247 (2,299,281) 20,381,966 Accrued Landfill Liability 26,547,931 612,626 27,160,557 500,000 Compensated Absences 2,402,281 1,878,959 (1,847,443) 2,433,797 1,493,936 Business-Type Activity Long-Term Liability$ 387,349,341 $ 34,473,404 $ (25,457,877) $ 396,364,868 $ 59,400,560

The gross amount of assets acquired under capital leases at June 30, 2019, represents computer and communication equipment and amortization is included in depreciation expense over the lease period.

1 Internal Service Funds predominately serve the governmental funds. Accordingly, the related long term liabilities are included as part of the above totals for governmental activities. The Internal Service Funds debt totals are noted below.

2The General Fund primarily is used to liquidate the liabilities for compensated absences associated with governmental activities.

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3The General Fund primarily is used to liquidate the liabilities for the net pension liability and other post-employment benefits associated with governmental activities.

Debt obligations recorded in the Coliseum Enterprise Fund, not contemplated to be repaid with the Fund’s own resources, are reported as general government debt for financial reporting purposes, according to guidance in NCGAS Statement No. 1.

Ending Balance Internal Service Funds: Bonds and Notes Payable: General Obligation Bonds Payable$ 438,932 Premium - General Obligation Bonds Payable 37,787 Total Debt Payable 476,719 Other Liabilities: Capital Leases 13,577,742 Direct Placement Financing Agreements 2,450,400 Compensated Absences 999,484 Pension & OPEB 11,081,569 Internal Service Fund Long-Term Liability$ 28,585,914

Hedging Derivatives and Associated Hedged Debt

Using rates as of June 30, 2019, debt service requirements of the variable-rate debt and net swap payments assuming current interest rates remain the same for the term, were as follows. As rates vary, variable-rate bond interest payments and net swap payments will vary. The hedging derivative instruments column reflects only net receipts/payments on derivative instruments that qualify for hedge accounting.

FY Ending Variable Rate Bonds Interest Rate Swaps June 30 Principal Interest (1) Net (2) Total 2020$ 2,960,000 $ 58,608 $ 54,772 $ 3,073,380

(1) Computed at 1.98% at June 30, 2019 (2) Computed at 3.46% less 67% of 1 Month LIBOR (1.61%) at June 30, 2019

Derivative Instrument Summary

At June 30, 2019 the City had the following hedging derivative instrument outstanding:

Changes in Fair ValueNotional Effective Maturity Fair Value at 6/30/19 Classification Amount Amount Date Date Classification Amount Governmental Activities:

Cash Flow Hedges Objective: Hedge of changes in cash flows on the 1998 Series GO Bonds specifically related to changes in municipal tax-exempt interest rates.

Pay-fixed interest Deferred $ 83,697 $ 5,700,000 10/8/2002 4/1/2020 Debt$ (52,895) rate swaps, receive Outflow variable rate

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H. Annual Leave and Sick Leave

The City’s policy permits employees to accumulate up to 30 days of earned but unused annual leave, which would be paid to employees upon separation from the City. Accumulated annual leave at June 30, 2019 amounted to $15,900,049 of which $13,466,252 relates to Governmental Activities and $2,433,797 relates to Business-Type Activities. Changes in accumulated annual leave are as follows:

BalanceCurrent Year Balance Due Within Fund Type 7/1/2018 Increase Decrease 6/30/2019 One Year

Governmental Activities$ 13,146,554 $ 8,771,946 $ (8,452,248) $ 13,466,252 $ 7,601,101 Business-Type Activities 2,402,281 1,878,959 (1,847,443) 2,433,797 1,493,936 $ 15,548,835 $ 10,650,905 $ (10,299,691) $ 15,900,049 $ 9,095,037

Greensboro ABC Board employees may accumulate up to 30 days earned leave. The balance of the accumulated leave liability is not considered to be material. Operations of the GHDP are performed by employees of the City. Accordingly, there is no recorded liability for employee leave amounts for GHDP at June 30, 2019.

City employees had accumulated sick leave benefits of $69,086,809 at June 30, 2019, based on compensation rates in effect on that date. Sick leave does not vest, but any unused sick leave accumulated at the time of retirement may be used in the determination of length of service for retirement benefit. Since the City has no obligation for the accumulated sick leave until it is actually taken, no accrual has been made for sick leave. The same policy is followed by the Greensboro ABC Board.

V. Other Information

A. Risk Management

The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The City protects itself from potential loss through a combination of purchased commercial insurance for primary and/or excess liability coverage and self-funded risk retention. Self-funded risks are primarily for health, employee workers’ compensation, general, professional, law enforcement, vehicle and underground storage tank liabilities.

The City purchases Flood Insurance coverage through the Blanket Property insurance policy with an annual aggregate flood limit of $100,000,000 with deductibles ranging from $100,000 to $500,000 per location depending on the size and location of the facility. One location is covered solely by the City’s self-funded insurance plan. The City has not had a flood loss in the past 30 plus years that amounted to more than $100,000.

Bonding in the following amounts is held for City employees involved in financial transactions: Finance Officer, $100,000, Tax Collector, $100,000, and Employee Blanket Bond, $100,000. All operating funds of the City participate in the risk management program and make payments to the Employee Risk Retention Fund and the General Risk Retention Fund based on the funds’ historical claims experience. Payments are for prior and current year claims and to establish a reserve for catastrophic losses.

Claims liabilities are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. Liabilities include an amount for claims that have been incurred but are not reported (IBNR’s), based on actuarial computations. Settled claims have not exceeded self–retained or purchased insurance coverage in any of the past three fiscal years.

1. Employee Risk Retention

The City provides for health, dental, life and workers’ compensation benefits in its Employee Risk Retention Fund.

The City’s health plan currently offers two plan options through a self-funded program, and a dental plan and vision plan is administered for employees and their covered dependents, supplemented by employee contributions.

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Term life insurance for employees is provided by the City for the term of employment, at no cost to the employee. The amount of coverage is based on salary. For those dependents covered by the health plan, the City also provides a reduced coverage term life insurance policy at no cost to the employee. For the life plan, the City pays its contribution directly to the insurer.

The City is self-funded for workers’ compensation for claims up to $1,250,000 per occurrence. Claims in excess of the retention are covered through a combination of purchased insurance and self-funding participation.

The City’s contributions toward employee costs are accounted for as expenditures when the funds are contributed to the Employee Risk Retention Fund.

2. General Risk Retention

The City’s General Risk Retention Fund includes five separate funds in the Local Government Excess Liability Fund, Inc. (ELF) to self-fund certain types of liability claims. Up until December 31, 1999, the ELF was structured to provide varying tiers of funding, with pre-determined contribution rates, limits of coverage, repayment schedules and certain levels of transfer of risk from the five local governments and school members represented by the ELF. Annual contributions by members are periodically reviewed by the Board of Directors and the Executive Director of the ELF.

Effective January 1, 2000, the ELF was reorganized and the resulting structure provides for no transfer of risk from any of the member units to the ELF. Fund balances are segregated by member and in the event of loss, those amounts are available for claims payment by the respective member, on either a loan or withdrawal basis. The new structure of the ELF is considered to be similar to a claims-servicing arrangement. The ELF Revolving Fund – Primary Liability Coverage pays amounts in excess of $100,000 up to $5,000,000 per occurrence, with an aggregated available for the City of $9,198,165 as of June 30, 2019. Additional amounts of $153,182 are recorded in the ELF for payment of City claims.

In addition, a new tier of coverage was established in the ELF in April 2007, to replace purchased Excess Liability coverage and to support General Liability claims. The balance on deposit as of June 30, 2019 is $4,741,316. Accordingly, including these balances, a total of $14,092,663 is included in the City’s General Risk Retention Fund as insurance deposits.

The City is also a member of the Local Government Property Insurance Deductible Fund, Inc. The City purchases Replacement Cost property insurance with a $100,000 deductible for most losses. Property losses up to $100,000 per occurrence are paid by the Fund after application of a $10,000 deductible requirement.

Property insurance coverage above the annual retention provides for up to 100% replacement cost, limited to $500,000,000 per occurrence. At June 30, 2019 following distribution of net earnings to individual accounts for respective members, the fund held deposits of $835,388 payable to the City of Greensboro for payment of future claims.

The City has the right to withdraw its contributions in the Revolving Fund – Primary Liability Coverage, the Self-Retention Fund, the Excess Liability Fund and the Revolving Fund – Employers, Liability/Workers’ Compensation of the Local Government Excess Liability Fund, Inc. and the Local Government Property Insurance Deductible Fund, Inc. when all claims against the Funds have been settled and all legal obligations have been paid for each claims year.

3. Reconciliation of Claims Liability

Changes in the City’s claims liability balance during Fiscal Years 2019 and 2018 are as follows:

Employee General Risk Ris k Total Total Retention Retention 2018-19 2017-18

Balance-July 1$ 10,897,095 $ 5,244,754 $ 16,141,849 $ 15,077,983 Add: Incurred Claims (including) IBNR's and Changes in Estimates 43,175,074 2,463,353 45,638,427 43,513,734 Deduct: Claims Payments (42,715,890) (1,584,846) (44,300,736) (42,449,868)

Balance - June 30$ 11,356,279 $ 6,123,261 $ 17,479,540 $ 16,141,849

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B. Subsequent Events

The City has evaluated subsequent events through October 31, 2019 in connection with the preparation of these financial statements, which is the date the financial statements were available to be issued.

On October 29, 2019 the City sold $29.7 million Series 2019 taxable Limited Obligation bonds to support the construction of the Eugene Street Parking Deck in Downtown Greensboro. The bonds have average fixed interest rate of 3.37% with a final maturity of November 1, 2044.

C. Commitments and Contingencies

1. Legalities

The City is party to a number of civil lawsuits and other legal actions. Most of these lawsuits involve construction contracts, public right of way management, and personnel issues. In the opinion of the City’s Attorney and management, the ultimate outcome of these suits is not expected to have significant impact upon the City’s financial position.

2. Authorized capital projects at June 30, 2019 are comprised of the following:

Project Expended Through Unexpended Authorization June 30, 2019 Authorization Governmental Funds: Special Revenue (1) $ 59,213,402 $ 42,759,634 $ 16,453,768 Capital Projects 459,356,851 232,359,036 226,997,815 $ 518,570,253 $ 275,118,670 $ 243,451,583

Enterprise Funds: Water Resources$ 415,320,491 $ 319,188,624 $ 96,131,867 Stormwater Management 21,555,439 9,295,728 12,259,711 Coliseum 124,501,626 90,664,978 33,836,648 Solid Waste Management 1,051,141 314,795 736,346 Parking 60,509,855 12,312,416 48,197,439 Greensboro Transit Advisory Commission 18,547,154 15,044,861 3,502,293 $ 641,485,706 $ 446,821,402 $ 194,664,304

3. Financial Assistance Programs

The City participates in a number of Federal and State financial assistance programs. For the Fiscal Year ended June 30, 2019 these programs were subject to audit in accordance with the Single Audit Act Amendments of 1996, the new Uniform Grant Guidance and the State Single Audit Implementation Act. The amount, if any, of expenditures which may be disallowed by the granting agencies resulting from this and other audits cannot be determined at this time, although the City expects such amounts if any, to be immaterial.

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4. Operating Lease Agreement – ABC Board

The Greensboro ABC Board has operating leases agreements for various store and office properties. Rental expense for the year ended June 30, 2019 totaled $629,067. Future lease payments, less payments under sublease agreement, are as follows:

Leas e Fiscal Year Payments 2019-20$ 365,504 2020-21 327,284 2021-22 222,717 2022-23 151,988 2023-24 119,307 $ 1,186,800

Operating Lease Payments

The City has operating lease payments for computers, printers, software/licenses, maintenance and workstations. Lease payments for the year ended June 30, 2019 totaled $1,563,052. Future lease payments are as follows:

Leas e Fiscal Year Payments 2019-20$ 875,350 2020-21 310,327 2021-22 14,342 $ 1,200,019

5. Contingencies

The City is involved in certain lawsuits with former members of the Greensboro Police Department. The City will defend these suits and claims vigorously, and although no assurances can be given as to the ultimate outcome of these matters, the City’s legal counsel is of the opinion that any possible liability of the City resulting from an adverse adjudication in such matters would not have a material adverse effect on the financial position of the City.

D. Joint Venture

Piedmont Triad Regional Water Authority (Authority)

The City in conjunction with five other governmental entities formed the Authority in September 1987 to develop a regional water supply. The Authority’s board is composed of ten members, three of which are appointed by the City Council. The joint venture agreement provided that each participant annually contribute funds to acquire land, a reservoir and to construct the Randleman Dam. The reservoir, dam and water treatment plant projects are complete and water began flowing through the system to Greensboro in October, 2010. The City’s funding share was originally 59.4%, or $33,858,000, based on a percentage of future raw water allocations. Initial City contributions, funded from the Water and Sewer Capital Reserve Fund, total $34,063,761, including $205,761 for staff administration and equipment fees paid from City operations. Additional cash payments were subsequently made on a pay-as-you-go basis to further fund reservoir, infrastructure, water treatment plant construction and other improvements for a total net Greensboro investment of $75,234,204 net of amortization of $15,734,261 as of June 30, 2019. The City contributed annual member dues in the amount of $919,643 in FY 2019 to cover the Authority’s administrative and operating costs.

In December 2004, the City received a reimbursement of $5,244,257 from Randolph County to acquire a portion of Greensboro’s future raw water allocation which effectively reduced the City’s share of the project to 53.1%.

The City, on average, receives 6.96 million gallons per day from this source. In 2016 the water plant expanded capacity from 12.675 Million Gallons per Day (MGD) to 14.7 MGD, effectively increasing the City’s allocation to 7.83 MGD, as authorized by City Council on July 19, 2016. Total planned plant capacity is 48 MGD. The City’s investment is reported in the Water Resources Enterprise Fund as an Intangible Asset, representing future water rights, amortized over a 50-year term. According 37kk

to the joint venture agreement, the participating governments do not have an equity interest in the joint venture, but rather rights to purchase future water from the project. Complete financial statements for the Authority may be obtained from the Authority’s administrative office at P.O. Box 1326 Randleman, NC 27317.

E. Jointly Governed Organization

Greensboro/Guilford County Tourism Development Authority (Authority)

The City, in conjunction with Guilford County (County), established the Authority to promote regional tourism. The City appoints five members of the Authority’s thirteen-member board. The Authority receives a percentage of room occupancy taxes which are levied on gross receipts from rental accommodations within the County.

The tax is levied at 6% for establishments within the City limits of Greensboro, of which 3% is levied by the City and 3% is levied by the County. The City contributes 20% of its portion to the Authority. During Fiscal Year 2018-19, the City levied $5,797,467 in room occupancy taxes, of which $1,159,493 was remitted to the Authority for travel and tourism promotion, net of a 1% collection fee paid to the County.

Piedmont Triad Regional Council (Council)

The City, in conjunction with 6 counties and 25 other municipalities, established the Piedmont Triad Regional Council. The participating governments established the Council to coordinate various funding received from Federal and State agencies. Each participating government appoints one member to the Council’s governing board. The City paid membership fees of $75,209 to the Council during the fiscal year ended June 30, 2019.

Piedmont Triad Airport Authority (Authority)

The City has an agreement with the Authority in which it appoints one member to the board. The City has no financial obligation or investment in the operation of the Airport Authority. Complete financial statements for the Authority may be obtained through the Authority, 100A Ted Johnson Parkway, Greensboro, NC 27409.

Guilford County Economic Development Alliance (Alliance)

The City, in conjunction with Guilford County and the City of High Point founded the Alliance in 2016. The Alliance was founded to coordinate and align all economic development recruitment and retention activities, to enhance economic conditions within the county and the region, and present a united message to all corporate development prospects. All participants have an equal representation on the Alliance’s Leadership Council and contribute an equal amount of funding.

F. Related Organization

Greensboro Housing Authority (Authority)

The Authority was created to provide affordable housing for citizens with limited income. Although all of the members of the governing body of the Authority are appointed by the Mayor, the City has no decision in selecting the management of the Authority. Financial transactions between the City and the Authority reflect contractual agreements between the parties for the provision of services by the City. The City is not responsible for any deficits nor is it entitled to any surpluses of the Authority. The City does not significantly influence the operations of the Authority, and the Authority is not accountable to the City for its fiscal matters.

G. Other Postemployment Benefits (OPEB)

Plan Description and Benefits Provided

In addition to the pension benefits described in Note I, the City also provides postemployment benefits to retirees under a single- employer plan (“The Plan”), provided they participate in the North Carolina Local Governmental Employees Retirement System (NCLGERS), and are actively employed with the City at the time of retirement. In order to receive any benefits, retirees must have achieved 20 years of active service with the City or have reached age 60 with 5 years of active service. Healthcare, prescription drug coverage, as well as retiree and dependent life insurance are provided in the City’s Plan. Health and prescription drug coverage ends once the retiree reaches age 65 or becomes Medicare eligible, whichever comes first. The City 37ll

and retirees share the cost of healthcare, based on years of service at retirement. Approximately 75% is paid by the City for 30 years of service, with less subsidy provided for fewer years of service. Dental coverage is available at full cost to the retiree. Retirees may keep their dental insurance for life. Life insurance benefits of up to $20,000 are provided to retirees until age 65, except for those retirees who were hired before March 1, 1975 (receive $2,000 at age 65 for life). Dependent coverage for each of the benefits in the Plan is available, if enrolled at the time of the employee’s retirement, at full cost to the retiree, with the exception of certain life insurance coverage. In addition, if the retiree ceases to have coverage or dies, dependent coverage will terminate. The City Council may amend the benefit provisions with a resolution. The City has elected to partially pre-pay the future overall cost of coverage for these benefits by establishing a Trust arrangement according to General Statutes 159-30.1(b). Management of the plan is vested in three Trustees, the City Manager, the Director of Finance and the Director of Human Resources, appointed by the City Council. The plan which has a June 30, 2019 year end does not issue a standalone financial report and is included in the City’s Comprehensive Annual Financial Report as Other Postemployment Benefit Trust Fund.

Plan Membership

Membership of the Plan consisted of the following at June 30, 2018, the date of the latest actuarial valuation:

Membership Group Number

Inactive Employees or Beneficiaries Currently 1,686 Receiving Benefits

Inactive Members Entitled To But Not Yet - Receiving Benefits

Active Employees 2,928

Total Membership 4,614

Summary of Significant Accounting Policies

Postemployment claims and premiums expenditures are made from the Employee Risk Retention Fund (Internal Service Fund), which is maintained on the accrual basis of accounting. Internal charges are made to various other City funds for the respective active employees, based upon the pre-determined City contribution rate. Short-term money market instruments and deposits are reported at cost or amortized cost, which approximates fair value as of June 30, 2019. Certain longer term securities are valued at estimated market value, as determined by the State Treasurer. Administration costs of the OPEB Investment Fund are determined by inter-agency agreement with the North Carolina Department of State Treasurer.

Contributions

The City will contribute toward the cost of the eligible retiree health and life insurance coverage based on the years of service at retirement. Dental coverage is provided at full cost to the retiree. The City has chosen to fund the healthcare benefits on a pay-as-you-go basis, with additional amounts contributed to prefund benefits, determined annually by management, not as a measure of pay.

The current Actuarially Determined Contribution (“ADC”) or $11,780,773 is 8.0% of annual covered payroll. For the current year, the City contributed $5,974,220 (or 4.1% of annual covered payroll) toward actual benefit payments. The City obtains health care and dental coverage through a self-funded program and through a private insurer for life insurance benefits. The City’s obligation to contribute to the Plan is established and may be amended by the City Council during the budget process per the City annual budget ordinance. Determination of the amounts contributed by the City and retirees is made by the Employee Benefit Executive Committee, annually, upon review of current costs and trends. The Plan is accounted for as an OPEB Benefit Trust Fund.

Investment Policy and Long-Term Expected Rate of Return

Investment of the OPEB Trust funds are made pursuant to a Deposit Agreement with the North Carolina Department of State Treasurer. The State Treasurer in his discretion may invest the proceeds in equities of certain publicly held companies and long 37mm

or short term fixed income investments as detailed in G.S. 147-69.2(b) (1-6) and (8). Funds deposited are held in the State Treasurer’s Equity Index Fund, 61.13%, Bond Index Fund, 33.66%, and the Short Term Investment Fund, 5.21%. At June 30, 2019, the Plan assets totaled $23,133,424. A separate report was not issued for the Plan.

The Plan’s investment policy, adopted by the City Council in April 2017, allows for investment in instruments authorized by G. S. 159-30 as well as investments available to the North Carolina State Treasurer when managing funds with the same purpose. The investment policy may be amended by a majority vote of Council members. The following was the City Council’s adopted asset allocation policy as of June 30, 2019: Target Long-Term Expected Asset Class Allocation Real Rate of Return

Equity Index Fund 60.0% 4.46% Bond Index Fund 40.0% 0.64% Total 100.0%

Investments in the Bond Index Fund with concentrations of more than 5% of the total portfolio represented the “Mortgages” sector.

For the year-ended June 30, 2019, the annual money-weighted rate of return on Plan investments, net of investment expense, was 6.73%. The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested. Investments are valued at fair market value.

The projected long-term investment returns and inflation assumptions are developed through review of current and historical capital markets data, sell-side investment research, consultant whitepapers, and historical performance of investment strategies. Best estimate ranges of expected future real rates of return are developed for each major asset class. These projections are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class as of June 30, 2019 are summarized in the table above.

The long-term nominal rates of return underlying the real rates of return are 10-year geometric compounded annualized figures. The real rates of return are calculated from nominal rates by multiplicatively adjusting for a long-term inflation assumption of 2.19%. All rates of return and inflation are annualized.

Net OPEB Liability of the City

The components of the net OPEB liability of the City at June 30, 2019 were as follows:

Total OPEB liability$ 137,588,257 Plan fiduciary net position 23,133,424 City's net OPEB liability$ 114,454,833

Plan fiduciary net position as a percentage of the total OPEB liability 16.81%

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Actuarial Assumptions

The total OPEB liability was determined by an actuarial valuation as of June 30, 2018 using the following actuarial assumptions applied to periods included in the measurement, unless otherwise specified:

Inflation 2.50% Real wage growth 1.00% Wage inflation 3.50%

Salary increases, including wage inflation General employees 3.50% - 7.75% Firefighters 3.50% - 7.75% Law enforcement officers 3.50% - 7.35%

Long-term investment rate of return (LIRR), net of OPEB 5.50% plan investment expense, including price inflation

Municipal bond index rate Prior measurement date 3.89% Measurement date 3.50%

Year Fiduciary net position is projected to be depleted Prior measurement date 2026 Measurement date 2030

Single equivalent interest rate (SEIR), net of OPEB plan investment expense, including price inflation Prior measurement date 4.02% Measurement date 3.78%

Health care cost trends Pre-medicare 7.75% for 2018 decreasing to an ultimate rate of 4.75% by 2028

Mortality rates were based on the RP-2014 mortality tables, with adjustments for LGERS experience and generational mortality improvements using Scale MP-2015.

The demographic actuarial assumptions for retirement, disability incidence, withdrawal, and salary increases used in the June 30, 2018 valuation were based on the results of an actuarial experience study for the period January 1, 2010 - December 31, 2014, adopted by the LGERS.

Discount rate

The discount rate used to measure the total OPEB liability was based on the LIRR and the SEIR. The projection of cash flows used to determine the discount rate assumed that contributions from employers will be made to pay benefits directly to Plan members as they come due and to contribute $500,000 to the OPEB Benefit Trust each year. Based on these assumptions, the Plan’s fiduciary net positon was projected to be available to make all projected future benefit payments of the current Plan members until 2030. Therefore, the long-term expected rate of return on OPEB investments was applied to those periods of projected benefit payments and then the SEIR was used to determine the total OPEB liability.

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Sensitivity of the City’s net OPEB liability to changes in the discount rate

The following presents the City’s net OPEB liability calculated using the discount rate of 3.78 percent, as well as what the City’s net OPEB liability would be if it were calculated using a discount rate that is one percentage point lower (2.78 percent) or one percentage point higher (4.78 percent) than the current rate:

1% Discount 1% Decrease Rate Increase (2.78%) (3.78%) (4.78%)

Net OPEB Liability$ 128,166,602 $ 114,454,833 $ 102,167,658

Sensitivity of the net OPEB liability to changes in healthcare cost trends

The following presents the net OPEB liability of the City, as well as what the City’s net OPEB liability would be if it were to calculate healthcare cost trend rates that are 1% point lower or 1% point higher than the current healthcare cost trend rates:

1% Healthcare Cost 1% Decrease Trend Rate Increase (6.25%) (7.25%) (8.25%)

$ 98,207,137 $ 114,454,833 $ 133,798,505

Changes in Net OPEB Liability, OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB.

At June 30, 2019, the City reported a net OPEB liability of $114,454,833. The total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of June 30, 2018. The total OPEB liability was then rolled forward to the measurement date of June 30, 2019 utilizing update procedures incorporating the actuarial assumptions.

At June 30, 2019, the components of the net OPEB liability of the City, measured as of June 30, 2019, were as follows:

Increase (Decrease) Total OPEB Plan Fiduciary Net OPEB Liability Net Position Liability (a) (b) (a) - (b)

Balances at June 30, 2018$ 150,712,342 $ 20,553,581 $ 130,158,761 Changes for the Year: Service Cost 6,837,447 6,837,447 Interest 5,963,620 5,963,620 Differences between expected and actual experience (28,155,144) (28,155,144) Changes of assumptions 7,004,212 7,004,212 Contributions 5,974,220 (5,974,220) Net Investment income 1,379,843 (1,379,843) Benefit payments (4,774,220) (4,774,220) Administrative expense Net changes (13,124,085) 2,579,843 (15,703,928) Balance as of June 30, 2019 $ 137,588,757 $ 23,133,424 $ 114,454,833

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Changes of assumptions. Changes of assumptions and other inputs reflect a change in the discount rate from 4.02% in 2018 to 3.78% in 2019. Medical claims cost and rates were changed based on most recent experience and changed to the current schedule. The impact of the Affordable Care Act was addressed in the valuation report and continues to be monitored.

For the year ended June 30, 2019, the City recognized OPEB expense of $7,778,359. At June 30, 2019, the City reported deferred inflows of resources related to OPEB from the following sources:

Deferred Deferred Outflows of Inflows of Resources Resources

Differences between expected and actual experience $ $ 24,731,126 Changes of assumptions 5,983,190 2,783,942 Net difference between projected and actual earnings on plan investments 273,301 Total$ 5,983,190 $27,788,369

Amounts reported as deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:

Year ended June 30: 2020$ (3,859,703) 2021 (3,859,703) 2022 (3,859,703) 2023 (3,826,424) 2024 (3,748,070) Thereafter (2,651,576) $ (21,805,179)

H. Deferred Compensation

The City offers all of its employees a Deferred Compensation Plan (Plan) in accordance with Internal Revenue Code Section 457 and 401. The Plan, available to permanent City employees, permits them to defer a portion of their salary until future years. The deferred compensation is not available to employees until termination, retirement, death or unforeseeable emergency.

The City has complied with changes in laws which govern the City’s Plan, requiring all assets of the Plan to be held in trust, custodial accounts or into annuity contracts for the exclusive benefit of participants and their beneficiaries. Effective January 1, 1999, the City entered in a trust arrangement in compliance with GASB Statement No. 32, Accounting and Financial Reporting for Internal Code Section 457 Deferred Compensation Plans. All transactions are administered by third party administrators and accordingly, Plan assets are not included in the City’s financial statements.

The City contributes 3.25% of salary for participating full time employees to the 401(a) Plan. The City also contributes an additional 1.75% to a 401(a) plan prior to FICA deduction of salary if applicable, for those engaged in firefighting, if firefighters choose to defer at least 1.75% of their salary, as well. Those employees engaged in law enforcement may participate in the 457 Plan, however, no City contributions are made on their behalf, but instead, the City contributes 5% of salary to the 401(k) Defined Contribution Pension Plan. All employees may defer amounts in the 457 Plan, administered by ICMA- Retirement Corporation, and the 401(k) Plan, administered by Prudential Retirement for the State of North Carolina and its subdivisions, up to the maximum allowed by the Internal Revenue Service each year. The employee receives credit for his contribution as well as the City’s, and benefits are based on the total assets owned in the employee’s individual accounts. The fair market value of the deferred compensation accounts of employees through the year ended June 30, 2019 was $164,380,192 consisting of $110,918,310 (457), $33,030,503 (401(a)), and $20,431,379 (401(k)).

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I. Pension Plan Obligations

1. Local Governmental Employees’ Retirement System

Plan Description

The City of Greensboro is a participating employer in the statewide Local Governmental Employees’ Retirement System (LGERS), a cost-sharing multiple-employer defined benefit pension plan administered by the State of North Carolina. LGERS membership is comprised of general employees and local law enforcement officers (LEOs) of participating local governmental entities. Article 3 of GS Chapter 128 assigns the authority to establish and amend benefit provisions to the North Carolina General Assembly. Management of the plan is vested in the LGERS Board of Trustees, which consists of 13 members – nine appointed by the Governor, one appointed by the State Senate, one appointed by the State House of Representatives, and the State Treasurer and State Superintendent, who serve as ex-officio members. The Local Governmental Employees’ Retirement System is included in the Comprehensive Annual Financial Report (CAFR) for the State of North Carolina. The State’s CAFR includes financial statements and required supplementary information for LGERS. That report may be obtained by writing to the Office of the State Controller, 1410 Mail Service Center, Raleigh, North Carolina 27699-1410, by calling (919) 981-5454, or at www.osc.nc.gov.

Benefits Provided

LGERS provides retirement and survivor benefits. Retirement benefits are determined as 1.85% of the member’s average final compensation times the member’s years of creditable service. A member’s average final compensation is calculated as the average of a member’s four highest consecutive years of compensation. Plan members are eligible to retire with full retirement benefits at age 65 with five years of creditable service, at age 60 with 25 years of creditable service, or at any age with 30 years of creditable service. Plan members are eligible to retire with partial retirement benefits at age 50 with 20 years of creditable service or at age 60 with five years of creditable service (age 55 for firefighters). Survivor benefits are available to eligible beneficiaries of members who die while in active service or within 180 days of their last day of service and who have either completed 20 years of creditable service regardless of age (15 years of creditable service for firefighters and rescue squad members who are killed in the line of duty) or have completed five years of service and have reached age 60. Eligible beneficiaries may elect to receive a monthly Survivor’s Alternate Benefit for life or return of the member’s contributions. The plan does not provide for automatic post-retirement benefit increases. Increases are contingent upon actuarial gains of the plan.

LGERS plan members who are LEOs are eligible to retire with full retirement benefits at age 55 with five years of creditable service as an officer, or at any age with 30 years of creditable service. LEO plan members are eligible to retire with partial retirement benefits at age 50 with 15 years of creditable service as an officer. Survivor benefits are available to eligible beneficiaries of LEO members who die while in active service or within 180 days of their last day of service and who also have either completed 20 years of creditable service regardless of age, or have completed 15 years of service as a LEO and have reached age 50, or have completed five years of creditable service as a LEO and have reached age 55, or have completed 15 years of creditable service as a LEO if killed in the line of duty. Eligible beneficiaries may elect to receive a monthly Survivor’s Alternate Benefit for life or a return of the member’s contributions. Effective July 1, 2018, LEO plan members are eligible to retire with reduced benefits with 25 years of creditable service at any age.

Contributions

Contribution provisions are established by General Statute 128-30 and may be amended only by the North Carolina General Assembly. City of Greensboro employees are required to contribute 6% of their compensation. Employer contributions are actuarially determined and set annually by the LGERS Board of Trustees. The City of Greensboro’s contractually required contribution rate for the year ended June 30, 2019, was 8.50% of compensation for law enforcement officers and 7.75% for general employees and firefighters, actuarially determined as an amount that, when combined with employee contributions, is expected to finance the costs of benefits earned by employees during the year. Contributions to the pension plan from the City of Greensboro were $13,121,579 for the year ended June 30, 2019.

Refunds of Contributions

City employees who have terminated service as a contributing member of LGERS, may file an application for a refund of their contributions. By state law, refunds to members with at least five years of service include 4% interest. State law requires a 60 day waiting period after service termination before the refund may be paid. The acceptance of a refund payment cancels the individual’s right to employer contributions or any other benefit provided by LGERS. 37rr

Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions

At June 30, 2019, the City reported a liability of $59,030,749 for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2018. The total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of December 31, 2017. The total pension liability was then rolled forward to the measurement date of June 30, 2018 utilizing update procedures incorporating the actuarial assumptions. The City’s proportion of the net pension liability was based on a projection of the City’s long-term share of future payroll covered by the pension plan, relative to the projected future payroll covered by the pension plan of all participating LGERS employers, actuarially determined. At June 30, 2018, the City’s proportion was 2.49% which was a decrease of .08% from its proportion measured as of June 30, 2017.

For the year ended June 30, 2019, the City recognized pension expense of $15,841,810. At June 30, 2019, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred Outflows Deferred Inflows of Resources of Resources

Differences between expected and actual experience$ 9,107,042 $ 305,587 Changes of assumptions 15,664,482 Net difference between projected and actual earnings on pension plan investments 8,103,166 Changes in proportion and differences between employer contributions and proportionate share of contributions 1,628,449 City contributions subsequent to the measurement date 13,121,579 Total$ 45,996,269 $ 1,934,036

$13,121,579 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a decrease of the net pension liability in the year ended June 30, 2020. Other amounts reported as deferred inflows and deferred outflows of resources related to pensions will be recognized in pension expense as follows:

Year ended June 30: 2020$ 15,056,742 2021 9,736,086 2022 1,610,347 2023 4,537,479 $ 30,940,654 Actuarial Assumptions

The total pension liability in the December 31, 2017 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement:

Inflation 3.0 percent Salary Increases 3.50 to 8.10 percent, including inflation and productivity factor Investment rate of return 7.00 percent, net of pension plan investment expense, including inflation

The plan currently uses mortality tables that vary by age, gender, employee group (i.e. general, law enforcement officer) and health status (i.e. disabled and healthy). The current mortality rates are based on published tables and based on studies that cover significant portions of the U.S. population. The healthy mortality rates also contain a provision to reflect future mortality improvements.

37ss The actuarial assumptions used in the December 31, 2017 valuation were based on the results of an actuarial experience study as of December 31, 2014. Future ad hoc COLA amounts are not considered to be substantively automatic and are therefore not included in the measurement.

The projected long-term investment returns and inflation assumptions are developed through review of current and historical capital markets data, sell-side investment research, consultant whitepapers, and historical performance of investment strategies. Fixed income return projections reflect current yields across the U.S. Treasury yield curve and market expectations of forward yields projected and interpolated for multiple tenors and over multiple year horizons. Global public equity return projections are established through analysis of the equity risk premium and the fixed income return projections. Other asset categories and strategies’ return projections reflect the foregoing and historical data analysis. These projections are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class as of June 30, 2018 are summarized in the following table:

Target Long-Term Expected Asset Class Allocation Real Rate of Return Fixed Income 29.0% 1.4% Global Equity 42.0% 5.3% Real Estate 8.0% 4.3% Alternatives 8.0% 8.9% Credit 7.0% 6.0% Inflation Protection 6.0% 4.0% Total 100.0%

The information above is based on 30-year expectations developed with the consulting actuary for the 2017 asset, liability, and investment policy study for the North Carolina Retirement Systems, including LGERS. The long-term nominal rates of return underlying the real rates of return are arithmetic annualized figures. The real rates of return are calculated from nominal rates by multiplicatively subtracting a long-term inflation assumption of 3.05%. All rates of return and inflation are annualized.

Discount rate

The discount rate used to measure the total pension liability was 7.0%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current contribution rate and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on these assumptions, the pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments of the current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

Sensitivity of the City’s proportionate share of the net pension liability to changes in the discount rate

The following presents the City’s proportionate share of the net pension liability calculated using the discount rate of 7.0 percent, as well as what the City’s proportionate share of the net pension asset or net pension liability would be if it were calculated using a discount rate that is one percentage point lower (6.0 percent) or one percentage point higher (8.0 percent) than the current rate: 1% Discount 1% Decrease Rate Increase (6.0%) (7.0%) (8.0%)

City's proportionate share of the net pension liability (asset) $ 141,796,972 $ 59,030,749 $ (10,130,003)

Pension plan fiduciary net position

Detailed information about the pension plan’s fiduciary net position is available in the separately issued Comprehensive Annual Financial Report (CAFR) for the State of North Carolina. 37tt

Law Enforcement Officers Special Separation Allowance (LEOSSA)

Plan Description

The City is the administrator of a single-employer, defined benefit, retirement system (Separation Allowance) established by the City to provide special separation benefits to its law enforcement officers, as required by state law. Qualified sworn City law enforcement officers are covered by the Separation Allowance. At December 31, 2017, the date of the latest actuarial valuation, the Separation Allowance’s membership consisted of:

Retirees currently receiving benefits 143 Inactive plan members entitled to but not yet receiving benefits - A ctive plan members 648 Total 791

The Separation Allowance provides separation benefits to all full-time City law enforcement officers who meet the following requirements: (1) Have (i) completed 30 or more years of creditable service or, (ii) attained 55 years of age and completed 5 or more years of creditable service; and

(2) Have not attained 62 years of age; and

(3) Have completed at least 5 years of continuous service as a law enforcement officer immediately preceding a service retirement

The qualified law enforcement officers are entitled to an annual retirement benefit of 0.85% of the annual equivalent of the base rate of compensation most recently applicable to the covered employee for each year of creditable service. The retirement benefits are paid semi-monthly in equal installments. Payments to retired officers cease at their death or on the last day of the month in which the officer attains 62 years of age or upon the first day of reemployment by any State department, agency, or institution.

Article 12D of G. S. Chapter 143 assigns the authority to establish and amend benefit provisions to the North Carolina General Assembly. The retirement benefits are not subject to any increases in salary or retirement allowances that may be authorized by the General Assembly.

Management of the Separation Allowance is vested in three Trustees, the City Manager, the Director of Finance and the Director of Human Resources, appointed by the City Council.

The Separation Allowance has a June 30, 2019 year end and does not issue a separate stand-alone financial report and is included in the City’s Comprehensive Annual Financial Report as a Pension Benefit Trust Fund.

Summary of Significant Accounting Policies

For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions and pension expense, information about the fiduciary net position of the Separation Allowance and additions to/deductions from the Separation Allowance’s fiduciary net position have been determined on the same basis as they are reported by the Pension Trust Fund, that is using the full accrual basis of accounting. Employer contributions to the Separation Allowance are recognized when due and when the City has made a formal commitment to provide the contributions. Benefits are recognized when due and payable in accordance with the terms of the Separation Allowance. Investments are reported at fair value.

Contributions

The City is required by Article 12D of G.S. Chapter 143 to provide these retirement benefits and has chosen to fund the amounts necessary to cover the benefits earned on a pay as you go basis through appropriations made in the General Fund operating budget and to also advance fund amounts as available. Contributions are not required to be made by employees, and as such, there were none. The City’s obligation to contribute to this plan is established and may be amended by the North Carolina 37uu

General Assembly. The actuarially determined contribution rate of $3,482,926 for FY 2019 is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City contributed $2,711,246 in FY 2019. These amounts represent 8.8% and 6.8% of covered employee payroll, respectively. Administrative costs of the Separation Allowance are financed through investment earnings.

The annual required contribution for the current year was determined as part of the December 31, 2016 actuarial valuation using the entry age normal actuarial cost method, amortized over a level dollar closed period. The actuarial assumptions include (a) 4.0% investment rate of return and (b) projected salary increase of 3.50% to 7.35%. Both (a) and (b) included an inflation component of 2.5%. The assumptions did not include post-retirement benefit increases. The actuarial value of assets was determined using the market value of investments. The remaining amortization period at December 31, 2016 was 14 years.

Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions

At June 30, 2019, the City reported a total pension liability of $28,897,352. The total pension liability was measured as of December 31, 2018 based on a December 31, 2017 actuarial valuation. The total pension liability was rolled forward to December 31, 2018 utilizing standard actuarial update rollfoward procedures incorporating the actuarial assumptions. For the year ended June 30, 2019, the City recognized pension expense of $1,425,495.

At June 30, 2019, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources, based on amounts computed as of the December 31, 2018 measurement date.

Deferred Outflows Deferred Inflows of Resources of Resources

Differences between expected and actual experience$ 1,214,070 $ Changes of assumptions and other inputs (1) 3,124,444 Net difference between projected and actual earnings (2) on pension plan investments 248,095 City contributions subsequent to the measurement date 1,436,697 Total$ 2,898,862 $ 3,124,444

(1) Amortized over the average remaining service life of active and inactive plan members at the beginning of the fiscal year, or 5.48 years. (2) Amortized over a fixed five-year period.

$1,436,697 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a decrease of the net pension liability in the year-ended June 30, 2020. Other amounts reported as deferred inflows and deferred outflows of resources related to pensions will be recognized in pension expense as follows: Year ended June 30: 2020$ (419,519) 2021 (419,519) 2022 (353,579) 2023 (255,768) 2024 (213,894) $ (1,662,279)

Actuarial Assumptions

The entry age normal actuarial cost method, amortized on a level dollar closed period was used in the December 31, 2017 actuarial valuation. The total pension liability rolled forward to December 31, 2018 was determined using the following actuarial assumptions, applied to all periods included in the measurement: 37vv

Inflation 2.5 percent Salary Increases 3.50 to 7.35 percent, including inflation Investment rate of return 5.50 percent, net of pension plan investment expense, including inflation

Since the prior measurement date, the discount rate was changed from 4.00% to 5.50%.

The plan currently uses mortality tables that vary by age, and health status (i.e. disabled and healthy). The current mortality rates are based on published tables and based on studies that cover significant portions of the U.S. population. The healthy mortality rates also contain a provision to reflect future mortality improvements. The actuarial assumptions used in the December 31, 2017 valuation were based on the results of an actuarial experience study for the period January 1, 2011 through December 31, 2015.

The rates of mortality for the period after service retirement are according to the RP-2014 Healthy Annuitant base rates projected to the valuation date using MP-2015, projected forward generationally from the valuation date using MP-2015. Rates are adjusted by 104% for males and 100% for females.

Investment Policy and Long-Term Expected Rate of Return

The Separation Allowance’s investment policy, adopted by the City Council in April 2017, allows for investment in instruments authorized by G.S. 159-30 as well as investments available to the North Carolina State Treasurer when managing funds with the same purpose. The investment policy may be amended by a majority vote of Council members. The following was the City Council’s adopted asset allocation policy as of June 30, 2019: Target Long-Term Expected Asset Class Allocation Real Rate of Return

Equity Index Fund 60.0% 4.46% Bond Index Fund 40.0% 0.64% Total 100.0%

For the year-ended June 30, 2019, the annual money-weighted rate of return on Separation Allowance investments, net of investment expense, was 6.76%. The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested. Investments are valued at fair market value.

The projected long-term investment returns and inflation assumptions are developed through review of current and historical capital markets data, sell-side investment research, consultant whitepapers, and historical performance of investment strategies. Best estimate ranges of expected future real rates of return are developed for each major asset class. These projections are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class as of June 30, 2019 are summarized in the table above.

The long-term nominal rates of return underlying the real rates of return are 10-year geometric compounded annualized figures. The real rates of return are calculated from nominal rates by multiplicatively adjusting for a long-term inflation assumption of 2.19%. All rates of return and inflation are annualized.

Discount rate

The discount rate used to measure the total pension liability was 5.50%. The projection of cash flows used to determine the discount rate assumed that contributions from employers will be made at actuarially determined rates each year. Based on these assumptions, the pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments of the current plan members. Therefore, the long-term expected rate of return on pension plan investments of 5.50% was applied to all periods of projected benefit payments to determine the total pension liability.

37ww

Sensitivity of the City’s net pension liability to changes in the discount rate

The following presents the City’s net pension liability calculated using the discount rate of 5.50 percent, as well as what the City’s share of net pension liability would be if it were calculated using a discount rate that is one percentage point lower (4.50 percent) or one percentage point higher (6.50 percent) than the current rate:

1% Discount 1% Decrease Rate Increase (4.50%) (5.50%) (6.50%)

Net Pension Liability$ 24,362,574 $ 22,248,656 $ 20,322,637

Changes in the Net Pension Liability Total Pension Plan Net Net Pension Liability Position Liability (a) (b) (a) - (b)

Balance as of December 31, 2017 $ 31,784,546 $ 6,738,623 $ 25,045,923

Changes for the year: Service Cost 994,926 994,926 Interest 1,218,215 1,218,215 Difference between expected and actual experience 803,495 803,495 Change of assumptions or other inputs (3,245,486) (3,245,486) Contributions - employer 2,717,911 (2,717,911) Net investment income (145,470) 145,470 Benefits paid (2,658,344) (2,658,344) Plan administrative expenses (4,024) 4,024 Net changes (2,887,194) (89,927) (2,797,267) Balance as of December 31, 2018 $ 28,897,352 $ 6,648,696 $ 22,248,656

3. Supplemental Retirement Income Plan For Law Enforcement Officers

All law enforcement officers employed by the City participate in the State of North Carolina Supplemental Retirement Income Plan, a 401(k) defined contribution pension plan, administered by the Department of State Treasurer and a Board of Trustees. Participation begins on the first day of the quarter upon reaching sworn status. In a defined contribution plan, benefits depend solely on amounts contributed to the plan plus investment earnings. Article 5 of G. S. Chapter 135 assigns the authority to establish and amend benefit provisions to the North Carolina General Assembly. Article 12E of G. S. Chapter 143 requires that the City contribute each month an amount equal to 5% of each officer’s salary, and all amounts contributed are vested immediately. Also, the law enforcement officers may make voluntary contributions to the plan.

The City’s contributions for the year ended June 30, 2019 were calculated using a covered payroll (base salary) in the amount of $36,950,720. The City’s total payroll was $174,764,579. Total contributions were $3,810,152, which consisted of $1,847,536 from the City and $1,962,616 from the law enforcement officers. The City’s required contributions and the officer’s voluntary contributions represented 5.0% and 5.3% of the covered payroll amount, respectively. The Supplemental Retirement Income Plan for Law Enforcement Officers is included in the Comprehensive Annual Financial Report (CAFR) for the State of North Carolina. The State’s CAFR includes the pension trust fund financial statements for the Internal Revenue Code Section 401(k) plan that includes the Supplemental Retirement Income Plan for Law Enforcement Officers. That report may be obtained by writing to the Office of the State Controller, 1410 Mail Service Center, Raleigh, North Carolina 27699-1410, or by calling (919) 981-5454.

37xx Schedule 1

Schedule of Changes in Net Pension Liability and Related Ratios Law Enforcement Officers' Special Separation Allowance (LEOSSA) Pension Benefit Trust Required Supplementary Information Fiscal Years Ending June 30, 2017-2019

2019 2018 2017

Total Pension Liability: Service cost $ 994,926 $ 957,868 $ 1,073,888 Interest 1,218,215 1,239,173 1,120,959 Difference between expected and actual experience 803,495 871,112 Changes of assumptions and other inputs (3,245,486) - (994,754) Benefit payments (2,658,344) (2,610,122) (2,546,004) Net Change in Total Pension Liability (2,887,194) 458,031 (1,345,911) Total Pension Liability - Beginning 31,784,546 31,326,515 32,672,426 Total Pension Liability -Ending (a) $ 28,897,352 $ 31,784,546 $ 31,326,515 Plan Fiduciary Net Position: Contributions - employer $ 2,717,911 $ 2,551,831 $ 8,796,931 Net investment income (145,470) 482,845 67,929 Benefit payments (2,658,344) (2,610,122) (2,546,004) Administrative expense (4,024) (3,191) (1,596) Net Change in Plan Fiduciary Net Position (89,927) 421,363 6,317,260 Plan Fiduciary Net Position - Beginning 6,738,623 6,317,260 Plan Fiduciary Net Position - Ending (b) 6,648,696 6,738,623 6,317,260 Net Pension Liability - Ending (a) - (b) $ 22,248,656 $ 25,045,923 $ 25,009,255

Ratio of plan fiduciary net position to total pension liability 23.01% 21.20% 20.17% Covered payroll $ 38,262,529 $ 38,475,970 $ 38,648,789 Net pension liability as a percentage of covered payroll 58.15% 65.09% 64.71%

All years for which information is available are presented.

-38- Schedule 2

Schedule of Employer Contributions Law Enforcement Officers' Special Separation Allowance (LEOSSA) Pension Benefit Trust Required Supplementary Information Fiscal Years Ending June 30, 2017-2019

2019 2018 2017

Actuarially determined employer contribution$ 3,482,926 $ 3,406,217 $ 3,924,814

Actual employer contributions 2,711,246 2,671,394 2,528,862

Annual contribution deficiency (excess)$ 771,680 $ 734,823 $ 1,395,952

Covered payroll$ 39,758,634 $ 38,197,009 $ 37,437,239

Actual contributions as a percentage of covered payroll 6.82% 6.99% 6.75%

Notes to the Required Schedule:

The information presented in the required supplementary schedules was determined as part of the actuarial valuations at the dates indicated. The following actuarial methods and assumptions were used to determine the contribution rate for fiscal year 2019:

Actuarial valuation 12/31/2016 Actuarial cost method Entry age normal Amortization method Level dollar, closed Remaining amortization period 14 years Asset valuation method Market value Inflation 2.50% Salary Increase 3.50% - 7.35%, including inflation Investment rate of return 4.00%, net of pension plan investment expense, including inflation

All years for which information is available are presented.

-39- Schedule 3

Schedule of Investment Returns Law Enforcement Officers' Special Separation Allowance (LEOSSA) Pension Benefit Trust Required Supplementary Information Fiscal Years Ending June 30, 2017-2019

2019 2018 2017

Annual money-weighted rate of return, net of investment expense 6.76% 6.43% 0.91%

All years for which information is available are presented.

-40- Schedule 4

Schedule of Changes in Net OPEB Liability and Related Ratios Other Postemployment Benefit (OPEB) Trust Required Supplementary Information Fiscal Years Ending June 30, 2016-2019

2019 2018 2017 2016

Total OPEB Liability: Service cost $ 6,837,447 $ 7,061,048 $ 7,578,219 $ Interest 5,963,620 5,336,797 4,569,030 Difference between expected and actual experience (28,155,144) (955,070) - - Changes of assumptions and other inputs 7,004,212 (3,908,766) (7,859,644) Benefit payments (1) (4,774,220) (5,224,634) (4,655,834) Net Change in Total OPEB Liability (13,124,085) 2,309,375 (368,229) Total OPEB Liability - Beginning 150,712,342 148,402,967 148,771,196 Total OPEB Liability -Ending (a) $ 137,588,257 $ 150,712,342 $ 148,402,967 $ 148,771,196 Plan Fiduciary Net Position: Contributions - employer $ 5,974,220 $ 7,224,634 $ 5,155,834 $ Net investment income 1,379,843 1,176,469 1,700,361 Benefit payments (1) (4,774,220) (5,224,634) (4,655,834) Administrative expense (2,810) Net Change in Plan Fiduciary Net Position 2,579,843 3,173,659 2,200,361 Plan Fiduciary Net Position - Beginning 20,553,581 17,379,922 15,179,561 Plan Fiduciary Net Position - Ending (b) 23,133,424 20,553,581 17,379,922 15,179,561 Net OPEB Liability - Ending (a) - (b) $ 114,454,833 $ 130,158,761 $ $131,023,045 $ $133,591,635

Ratio of plan fiduciary net position to total OPEB liability 16.81% 13.64% 11.71% 10.20% Covered employee payroll $ 146,594,270 $ 137,120,463 $ 137,120,463 $ 137,120,463 Net OPEB liability as a percentage of covered-employee payroll 78.08% 94.92% 95.55% 97.43%

(1) Benefit payments are net of participant contributions.

Notes to the Required Schedule: All years for which information is available are presented. For years following the valuation date (when no new valuation is performed), covered employee payroll has been set equal to the covered employee payroll from the most recent valuation. Changes of Assumptions: The Plan's Fiduciary Net Position in 2019 was projected to be depleted in 2030 and, as a result, the Municipal Bond Index Rate was used in determination of the discount rate. The long term expected rate of return of 5.5% on Plan investments was applied to periods through 2030 and the Municipal Bond Index Rate at the measurement date of 6/30/2019 (3.50%) was applied to periods on and after 2030, resulting in a discount rate of 3.78% at the measurement date. The discount rate at the prior measurement date of 6/30/18 was 4.02%.

The Total OPEB liability is based upon an actuarial valuation as of 6/30/2018 and the Total OPEB Liability as of 6/30/19 was determined using standard actuarial roll forward techniques.

- 41- Schedule 5

Schedule of Employer Contributions Other Postemployment Benefit (OPEB) Trust Required Supplementary Information Fiscal Years Ending June 30, 2016-2019

2019 2018 2017 2016 Actuarially determined employer contribution $ 11,780,773 $ 11,780,773 $ 9,701,120 $ 8,711,948

Actual employer contributions 5,974,220 7,224,634 5,155,834 4,734,307

Annual contribution deficiency (excess) $ 5,806,553 $ 4,556,139 $ 4,545,286 $ 3,977,641

Covered employee payroll $ 152,675,910 $ 146,948,521 $ 141,462,474 $ 138,667,895

Actual contributions as a percentage of covered employee payroll 3.91% 4.92% 3.64% 3.41%

Notes to the Required Schedule:

The information presented in the required supplementary schedules was determined as part of the actuarial valuations at the dates indicated. The following actuarial methods and assumptions were used to determine contribution rates:

Valuation Date 6/30/2018 Actuarial cost method Entry age normal Amortization method Level percentage of pay Remaining amortization period 24 years Asset valuation method Market value Actuarial Assumptions: Inflation 2.50% Real wage growth 1.00% Wage inflation 3.50% Salary increases, including inflation General employees 3.50%-7.75% Firefighters 3.50%-7.75% Law enforcement officers 3.50%-7.35% Investment rate of return 5.50% Medical cost trend rate 7.25% - 4.75% Year of ultimate trend rate 2028

All years for which information is available are presented.

-42- Schedule 6

Schedule of Investment Returns Other Postemployment Benefit (OPEB) Trust Required Supplementary Information Fiscal Years Ending June 30, 2017-2019

2019 2018 2017

Annual money-weighted rate of return, net of investment expense 6.73% 6.75% 9.20%

All years for which information is available are presented.

-43- Schedule 7

Local Governmental Employees' Retirement System Required Supplementary Information Last Five Fiscal Years *

Employer's Proportionate Share of Net Pension Liability (Asset)

2019 2018 2017 2016 2015

Greensboro's proportion of net pension liability (asset) (%) 2.49% 2.57% 2.56% 2.71% 2.71%

Greensboro's proportion of net pension liability (asset) ($) $59,030,749 $39,235,440 $54,381,226 $12,141,673 ($15,959,838)

Greensboro's covered payroll $157,780,855 $152,528,465 $148,676,887 $145,700,616 $141,782,687

Greensboro's proportion of net pension liability (asset) as a 37.41% 25.72% 36.58% 8.33% (11.26%) percentage of its covered payroll

Plan fiduciary net position as a percentage of the total 92.00% 94.18% 91.47% 98.09% 102.64% pension liability

Employer Contributions

2019 2018 2017 2016 2015

Contractually required contribution $13,121,579 $12,191,783 $11,430,637 $10,185,674 $10,414,334

Contributions in relation to the contractually required contribution $13,121,579 $12,191,783 $11,430,637 $10,185,674 $10,414,334

Contribution deficiency (excess) $ - $ - $ - $ - $ -

Greensboro's covered payroll $164,497,287 $157,780,855 $152,528,465 $148,676,887 $145,700,616

Contributions as a percentage of covered payroll 7.98% 7.73% 7.49% 6.85% 7.15%

* The amounts presented for each fiscal year were determined as of the prior fiscal year ending June 30.

-44-

Schedule 8

COMBINING BALANCE SHEET Nonmajor Governmental Funds June 30, 2019

PERMANENT TOTAL SPECIAL CAPITAL FUND NONMAJOR REVENUE PROJECTS PERPETUAL GOVERNMENTAL ASSETS FUNDS FUNDS CARE FUNDS

Cash and Cash Equivalents/Investments$ 14,504,988 $ 5,478,679 $ $ 19,983,667 Receivables: Taxes 82,917 33,737 116,654 Accounts, Notes and Mortgages 27,020,144 27,020,144 Assessments 6,013 6,013 Intergovernmental 2,678,515 1,946,269 4,624,784 Internal Receivables 673,850 673,850 Miscellaneous 85,000 85,000 Assets Held for Resale 95,180 95,180 Restricted Assets: Cash and Cash Equivalents/Investments 95,619,678 2,527,236 98,146,914 Receivables: Accounts, Notes and Mortgages 448,964 448,964

Total Assets$ 44,960,414 $ 103,713,520 $ 2,527,236 $ 151,201,170

LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES

Liabilities: Accounts Payable$ 421,887 $ $ $ 421,887 Contracts/Retainage Payable 371,099 2,068,793 2,439,892 Intergovernmental Payable 1,753 1,753 Internal Payables 673,850 673,850 Miscellaneous 78,631 19,782 98,413 Unearned Grant Revenues 3,389,829 585,342 3,975,171 Liabilities Payable from Restricted Assets: Accounts Payable 202,603 202,603 Contracts/Retainage Payable 4,740,057 4,740,057

Total Liabilities 4,937,049 7,616,577 12,553,626 Deferred Inflows of Resources: Property Taxes Receivable 82,917 33,737 116,654 Accounts, Notes and Mortgages 14,480 14,480 Other Accounts Receivable 6,013 6,013 Prepaid Assessments 17,282 17,282

Total Deferred Inflows of Resources 97,397 57,032 154,429 Fund Balances: Non-Spendable: Perpetual Maintenance 2,527,236 2,527,236 Total Non-Spendable Fund Balance 2,527,236 2,527,236 Restricted: Stabilization by State Statute 30,687,431 2,480,232 33,167,663 Debt Covenants 88,628,038 88,628,038 Assets Held for Resale 95,180 95,180 Grantor Requirements: Highway Improvements 141,924 2,220,228 2,362,152 Total Restricted Fund Balance 30,829,355 93,423,678 124,253,033 Committed: For 911 Program 226,820 226,820 For Cemetery Maintenance 198,473 198,473 For Special Tax Districts 918,681 918,681 For Neighborhood Development 1,639,015 1,639,015 For Economic Opportunity 422,290 422,290 For Debt Service/Capital Projects 8,604,834 8,604,834 Total Committed Fund Balance 12,010,113 12,010,113 Assigned: Appropriated for Subsequent Year's Expenditures 964,594 964,594 For Capital Projects 2,994,705 2,994,705 For Neighborhood Development 38,184 38,184 Total Assigned Fund Balance 1,002,778 2,994,705 3,997,483 Unassigned (3,916,278) (378,472) (4,294,750) Total Fund Balances 39,925,968 96,039,911 2,527,236 138,493,115 Total Liabilities, Deferred Inflows of Resources and Fund Balances$ 44,960,414 $ 103,713,520 $ 2,527,236 $ 151,201,170

-45- Schedule 9 Page 1 of 3

COMBINING BALANCE SHEET Nonmajor Special Revenue Funds June 30, 2019

STATE HOTEL/MOTEL NEIGHBORHOOD HIGHWAY OCCUPANCY ECONOMIC DEVELOPMENT ASSETS ALLOCATION CEMETERY TAX DEVELOPMENT REVOLVING

Cash and Cash Equivalents/Investments$ 141,924 $ 252,203 $ 8,611,077 $ 615,879 $ Receivables: Taxes 25,181 Accounts, Notes and Mortgages 14,480 778,757 Intergovernmental 33,719 4,585 355,628 18,808 Internal Receivables

Total Assets$ 175,643 $ 271,268 $ 8,966,705 $ 1,438,625 $

LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES

Liabilities: Accounts Payable $ $ $ $ $ Contracts/Retainage Payable Intergovernmental 1,082 Internal Payables Miscellaneous Unearned Grant Revenues

Total Liabilities 1,082

Deferred Inflows of Resources: Property Taxes Receivable 25,181 Notes and Mortgages Receivable 14,480 Total Deferred Inflows of Resources 14,480 25,181

Fund Balances: Restricted: Stabilization by State Statute 33,719 8,122 361,871 809,994 Grantor Requirements: Highway Improvements 141,924 Total Restricted Fund Balance 175,643 8,122 361,871 809,994

Committed: For 911 Program For Cemetery Maintenance 198,473 For Special Tax Districts For Neighborhood Development For Economic Opportunity 422,290 For Debt Service/Capital Projects 8,604,834 Total Committed Fund Balance 198,473 8,604,834 422,290

Assigned: Appropriated for Subsequent Year's Expenditures 50,193 180,078 For Neighborhood Development Total Assigned Fund Balance 50,193 180,078

Unassigned

Total Fund Balances 175,643 256,788 8,966,705 1,412,362

Total Liabilities, Deferred Inflows of Resources and Fund Balance $ 175,643 $ 271,268 $ 8,966,705 $ 1,438,625 $

-46- Schedule 9 Page 2 of 3

SPECIAL HOUSING WORKFORCE TAX PARTNERSHIP COMMUNITY HOME INVESTMENT DISTRICTS REVOLVING DEVELOPMENT PROGRAM ACT

$ 1,165,477 $ 1,215,521 $ 7,504 $ 769,991 $

16,375 41,361 10,865,595 4,059,491 11,100,520 56,225 39,938 210,336 126,503 686,037 673,850

$ 1,238,077 $ 12,836,265 $ 4,277,331 $ 11,997,014 $ 686,037

$ $ $ 2,483 $ 10,564 $ 346,363 21,443 20,166 319,022 381 290 673,850 7,820 63,724 7,087 26,125

21,824 8,110 760,223 17,651 691,510

16,375 41,361

16,375 41,361

106,987 11,757,491 4,269,827 11,227,023 686,037

106,987 11,757,491 4,269,827 11,227,023 686,037

918,681 831,006 752,340

918,681 831,006 752,340

174,210 160,113 38,184 174,210 198,297

(752,719) (691,510)

1,199,878 12,786,794 3,517,108 11,979,363 (5,473)

$ 1,238,077 $ 12,836,265 $ 4,277,331 $ 11,997,014 $ 686,037

-47-

Schedule 9 Page 3 of 3

COMBINING BALANCE SHEET (continued) Nonmajor Special Revenue Funds June 30, 2019

TOTAL STATE STATE EMERGENCY NONMAJOR AND FEDERAL AND FEDERAL TELEPHONE SPECIAL REVENUE ASSETS GRANTS GRANTS (ARRA) SYSTEM FUNDS

Cash and Cash Equivalents/Investments$ 779,789 $ 240,480 $ 705,143 $ 14,504,988 Receivables: Taxes 82,917 Accounts, Notes and Mortgages 201,301 27,020,144 Intergovernmental 888,663 258,073 2,678,515 Internal Receivables 673,850

Total Assets$ 1,869,753 $ 240,480 $ 963,216 $ 44,960,414

LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES

Liabilities: Accounts Payable$ 62,477 $ $ $ 421,887 Contracts/Retainage Payable 10,468 371,099 Intergovernmental Payables 1,753 Internal Payables 673,850 Miscellaneous 78,631 Unearned Grant Revenues 3,178,893 184,811 3,389,829

Total Liabilities 3,251,838 184,811 4,937,049

Deferred Inflows of Resources: Property Taxes Receivable 82,917 Notes and Mortgages Receivable 14,480 Total Deferred Inflows of Resources 97,397

Fund Balances: Restricted: Stabilization by State Statute 1,089,964 336,396 30,687,431 Grantor Requirements: Highway Improvements 141,924 Total Restricted Fund Balance 1,089,964 336,396 30,829,355

Committed: For 911 Program 226,820 226,820 For Cemetery Maintenance 198,473 For Special Tax Districts 918,681 For Neighborhood Development 55,669 1,639,015 For Economic Opportunity 422,290 For Debt Service/Capital Projects 8,604,834 Total Committed Fund Balance 55,669 226,820 12,010,113

Assigned: Appropriated for Subsequent Year's Expenditures 400,000 964,594 For Neighborhood Development 38,184 Total Assigned Fund Balance 400,000 1,002,778

Unassigned (2,472,049) (3,916,278)

Total Fund Balances (1,382,085) 55,669 963,216 39,925,968

Total Liabilities, Deferred Inflows of Resources and Fund Balances$ 1,869,753 $ 240,480 $ 963,216 $ 44,960,414

-48- Schedule 10 Page 1 of 5

COMBINING BALANCE SHEET Nonmajor Capital Projects Funds June 30, 2019

STATE GENERAL GENERAL STREET HIGHWAY CAPITAL CAPITAL ASSETS AND SIDEWALK ALLOCATION IMPROVEMENTS IMPROVEMENTS II

Cash and Cash Equivalents/Investments$ 2,429,950 $ $ 237,372 $ 2,569,013 Receivables: Taxes 33,737 Assessments 6,013 Intergovernmental 1,911,635 27,884 Miscellaneous Assets Held for Resale 95,180 Restricted Assets: Cash and Cash Equivalents/Investments 2,574,100 Receivables: Accounts, Notes and Mortgages

Total Assets$ 4,476,515 $ 2,574,100 $ 237,372 $ 2,596,897

LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES

Liabilities: Contracts/Retainage Payable$ 2,034,550 $ $ 33,476 $ 767 Liabilities Payable from Restricted Assets: Accounts Payable Contracts/Retainage Payable 353,872 Unearned Grant Revenues 585,342 Miscellaneous 19,782

Total Liabilities 2,619,892 353,872 33,476 20,549

Deferred Inflows of Resources: Property Taxes Receivable 33,737 Other Accounts Receivable 6,013 Prepaid Assessments 17,282 Total Deferred Inflows of Resources 57,032

Fund Balances: Restricted: Stabilization by State Statute 1,911,635 27,883 Debt Covenants Assets Held for Resale 95,180 Grantor Requirements: Highway Improvements 2,220,228 Total Restricted Fund Balance 2,006,815 2,220,228 27,883

Assigned: For Capital Projects 203,896 2,548,465

Unassigned (207,224)

Total Fund Balances 1,799,591 2,220,228 203,896 2,576,348

Total Liabilities, Deferred Inflows of Resources and Fund Balances$ 4,476,515 $ 2,574,100 $ 237,372 $ 2,596,897

-49- Schedule 10 Page 2 of 5

NEIGHBORHOOD REDEVELOPMENT LIBRARY HISTORICAL PARKS & SERIES 2005 FACILITIES MUSEUM RECREATION and 2006A SERIES 2008 SERIES 2008 SERIES 2008

$ 242,344 $ $ $

355,604 79,680 1,033,709

$ 242,344 $ 355,604 $ 79,680 $ 1,033,709

$ $ $ $

355,604 79,680 1,033,709

355,604 1,033,709

242,344

242,344 355,604 79,680 1,033,709

$ 242,344 $ 355,604 $ 79,680 $ 1,033,709

(continued) -50- Schedule 10 Page 3 of 5

COMBINING BALANCE SHEET (continued) Nonmajor Capital Projects Funds June 30, 2019

WAR ECONOMIC FIRE MEMORIAL STREET DEVELOPMENT STATION STADIUM IMPROVEMENTS ASSETS SERIES 2008 SERIES 2008 SERIES 2008 SERIES 2010

Cash and Cash Equivalents/Investments $ $ $ $ Receivables: Taxes Assessments Intergovernmental 6,750 Miscellaneous Assets Held for Resale Restricted Assets: Cash and Cash Equivalents/Investments 4,021,129 1,238,226 1,304,441 58,452,408 Receivables: Accounts, Notes and Mortgages 448,964

Total Assets$ 4,470,093 $ 1,244,976 $ 1,304,441 $ 58,452,408

LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES

Liabilities: Contracts/Retainage Payable $ $ $ $ Liabilities Payable from Restricted Assets: Accounts Payable 18,949 Contracts/Retainage Payable 423,028 2,321,212 Unearned Grant Revenues Miscellaneous

Total Liabilities 423,028 2,340,161

Deferred Inflows of Resources: Property Taxes Receivable Other Accounts Receivable Prepaid Assessments Total Deferred Inflows of Resources

Fund Balances: Restricted: Stabilization by State Statute 448,964 6,750 Debt Covenants 4,021,129 815,198 1,304,441 56,112,247 Assets Held for Resale Grantor Requirements: Highway Improvements Total Restricted Fund Balance 4,470,093 821,948 1,304,441 56,112,247

Assigned: For Capital Projects

Unassigned

Total Fund Balances 4,470,093 821,948 1,304,441 56,112,247

Total Liabilities, Deferred Inflows of Resources and Fund Balances$ 4,470,093 $ 1,244,976 $ 1,304,441 $ 58,452,408

-51- Schedule 10 Page 4 of 5

PARKS AND GREENSBORO PARKS & RECREATION HOUSING SCIENCE CENTER TRANSPORTATION RECREATION SERIES 2010 SERIES 2010 SERIES 2010 SERIES 2016 SERIES 2016

$ $ $ $ $

85,000

1,319,817 361,597 6,620,141 253,770 6,174,059

$ 1,319,817 $ 361,597 $ 6,620,141 $ 253,770 $ 6,259,059

$ $ $ $ $

122,625 61,029 229,669 361,597 90,087 302,393 524,967

229,669 361,597 90,087 425,018 585,996

85,000 1,090,148 6,530,054 5,588,063

1,090,148 6,530,054 5,673,063

(171,248)

1,090,148 6,530,054 (171,248) 5,673,063

$ 1,319,817 $ 361,597 $ 6,620,141 $ 253,770 $ 6,259,059

(continued) -52-

Schedule 10 Page 5 of 5

COMBINING BALANCE SHEET (continued) Nonmajor Capital Projects Funds June 30, 2019

TOTAL COMMUNITY & NONMAJOR ECONOMIC FIRE CAPITAL HOUSING DEVELOPMENT STATION PROJECTS ASSETS SERIES 2016 SERIES 2016 SERIES 2019 FUNDS

Cash and Cash Equivalents/Investments $ $ $ $ 5,478,679 Receivables: Taxes 33,737 Assessments 6,013 Intergovernmental 1,946,269 Miscellaneous 85,000 Assets Held for Resale 95,180 Restricted Assets: Cash and Cash Equivalents/Investments 6,157,039 5,188,150 485,808 95,619,678 Receivables: Accounts, Notes and Mortgages 448,964

Total Assets$ 6,157,039 $ 5,188,150 $ 485,808 $ 103,713,520

LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES

Liabilities: Contracts/Retainage Payable $ $ $ $ 2,068,793 Liabilities Payable from Restricted Assets: Accounts Payable 202,603 Contracts/Retainage Payable 17,202 116,030 4,740,057 Unearned Grant Revenues 585,342 Miscellaneous 19,782

Total Liabilities 17,202 116,030 7,616,577

Deferred Inflows of Resources: Property Taxes Receivable 33,737 Other Accounts Receivable 6,013 Prepaid Assessments 17,282 Total Deferred Inflows of Resources 57,032

Fund Balances: Restricted: Stabilization by State Statute 2,480,232 Debt Covenants 6,139,837 5,072,120 485,808 88,628,038 Assets Held for Resale 95,180 Grantor Requirements: Highway Improvements 2,220,228 Total Restricted Fund Balance 6,139,837 5,072,120 485,808 93,423,678

Assigned: For Capital Projects 2,994,705

Unassigned (378,472)

Total Fund Balances 6,139,837 5,072,120 485,808 96,039,911

Total Liabilities, Deferred Inflows of Resources and Fund Balances$ 6,157,039 $ 5,188,150 $ 485,808 $ 103,713,520

-53-

Schedule 11

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES Nonmajor Governmental Funds For the Fiscal Year Ended June 30, 2019

PERMANENT TOTAL SPECIAL CAPITAL FUND NONMAJOR REVENUE PROJECTS PERPETUAL GOVERNMENTAL FUNDS FUNDS CARE FUNDS

Revenues: Taxes$ 8,950,119 $ $ $ 8,950,119 Intergovernmental 19,627,685 3,937,607 23,565,292 Charges for Current Services 2,962,428 4,069,734 7,032,162 Investment Income 655,832 105,170 761,002 Miscellaneous 159,557 619,309 778,866

Total Revenues 32,355,621 8,731,820 41,087,441

Expenditures: Current: General Government 88,755 88,755 Public Safety 3,389,542 2,635,267 6,024,809 Transportation 3,882,452 31,728,337 35,610,789 Environmental Services 207,579 207,579 Engineering and Building Maintenance 752,230 752,230 Culture and Recreation 1,336,431 4,842,906 6,179,337 Neighborhood Development 6,333,446 4,668,981 11,002,427 Economic Opportunity 5,816,935 1,942,340 7,759,275 Debt Service: Principal Retirement 970,000 970,000 Interest 1,750,370 1,750,370 Fees and Other 538,076 538,076

Total Expenditures 24,224,831 46,658,816 70,883,647

Excess of Revenues Over (Under) Expenditures 8,130,790 (37,926,996) (29,796,206)

Other Financing Sources (Uses): Debt Issuances: Limited Obligation Bonds Issued 26,760,000 26,760,000 Limited Obligation BANs Issued 566,690 566,690 Proceeds of Refunding Bonds 5,335,000 5,335,000 General Obligation Bonds Issued 98,450,995 98,450,995 Premium on Bonds 1,379,663 6,729,936 8,109,599 Payment to Escrow Agent for Refunding of Debt (19,405,247) (19,405,247) Transfers In 536,493 2,711,666 45,225 3,293,384 Transfers Out (21,639,139) (1,706,923) (23,346,062)

Total Other Financing Sources (Uses) (6,466,540) 106,185,674 45,225 99,764,359

Net Change in Fund Balances 1,664,250 68,258,678 45,225 69,968,153

Fund Balances - July 1 38,261,718 27,781,233 2,482,011 68,524,962

Fund Balances - June 30$ 39,925,968 $ 96,039,911 $ 2,527,236 $ 138,493,115

-54- Schedule 12 Page 1 of 3

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES Nonmajor Special Revenue Funds For the Fiscal Year Ended June 30, 2019

STATE HOTEL/MOTEL NEIGHBORHOOD HIGHWAY OCCUPANCY ECONOMIC DEVELOPMENT ALLOCATION CEMETERY TAX DEVELOPMENT REVOLVING

Revenues: Taxes $ $ $ 4,684,823 $ 1,392,790 $ Intergovernmental 7,293,172 Charges for Current Services 395,425 11,787 Investment Income (Loss) 142,441 70,995 188,712 90,740 Miscellaneous 26,159 5,473 125,000

Total Revenues 7,461,772 471,893 4,998,535 1,495,317

Expenditures: Current: Public Safety Transportation Environmental Services Culture and Recreation 839,885 259,923 Neighborhood Development Economic Opportunity 1,678,358 Debt Service: Principal Retirement 970,000 Interest 1,750,370 Fees and Other 538,076

Total Expenditures 839,885 3,518,369 1,678,358

Excess of Revenues Over (Under) Expenditures 7,461,772 (367,992) 1,480,166 (183,041)

Other Financing Sources (Uses): Debt Issuances: Limited Obligation Bonds Issued 26,760,000 Limited Obligation BANs Issued 566,690 Proceeds of Refunding Bonds 5,335,000 Premium on Bonds 1,379,663 Payment to Escrow Agent for Refunding of Debt (19,405,247) Transfers In 435,706 Transfers Out (7,370,000) (45,225) (13,858,125) (327,800) (37,989)

Total Other Financing Sources (Uses) (7,370,000) 390,481 777,981 (327,800) (37,989)

Net Change in Fund Balances 91,772 22,489 2,258,147 (510,841) (37,989)

Fund Balances - July 1 83,871 234,299 6,708,558 1,923,203 37,989

Fund Balances - June 30$ 175,643 $ 256,788 $ 8,966,705 $ 1,412,362 $

-55- Schedule 12 Page 2 of 3

SPECIAL HOUSING WORKFORCE TAX PARTNERSHIP COMMUNITY HOME INVESTMENT DISTRICTS REVOLVING DEVELOPMENT PROGRAM ACT

$ 948,329 $ 1,924,177 $ $ $ 2,042,537 1,481,702 4,149,262 9,771 16,979 (8,586) 21,534 29,802 88,423 18,887 11,056 (2,674) 42

978,173 2,022,371 2,078,403 1,484,172 4,168,122

932,060 1,056,216 2,117,616 884,953 4,138,577

932,060 1,056,216 2,117,616 884,953 4,138,577

46,113 966,155 (39,213) 599,219 29,545

37,989

37,989

46,113 1,004,144 (39,213) 599,219 29,545

1,153,765 11,782,650 3,556,321 11,380,144 (35,018)

$ 1,199,878 $ 12,786,794 $ 3,517,108 $ 11,979,363 $ (5,473)

(continued) -56-

Schedule 12 Page 3 of 3

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES Nonmajor Special Revenue Funds For the Fiscal Year Ended June 30, 2019

TOTAL STATE AND STATE AND EMERGENCY NONMAJOR FEDERAL FEDERAL TELEPHONE SPECIAL REVENUE (continued) GRANTS GRANTS (ARRA) SYSTEM FUNDS

Revenues: Taxes $ $ $ $ 8,950,119 Intergovernmental 4,661,012 19,627,685 Charges for Current Services (2,563) 2,518,081 2,962,428 Investment Income (Loss) 313 1,996 15,141 655,832 Miscellaneous 2,883 159,557

Total Revenues 4,661,645 1,996 2,533,222 32,355,621

Expenditures: Current: Public Safety 856,812 2,532,730 3,389,542 Transportation 3,882,452 3,882,452 Environmental Services 207,579 207,579 Culture and Recreation 236,623 1,336,431 Neighborhood Development 1,342,601 6,333,446 Economic Opportunity 5,816,935 Debt Service: Principal Retirement 970,000 Interest 1,750,370 Fees and Other 538,076

Total Expenditures 6,526,067 2,532,730 24,224,831

Excess of Revenues Over (Under) Expenditures (1,864,422) 1,996 492 8,130,790

Other Financing Sources (Uses): Debt Issuances: Limited Obligation Bonds Issued 26,760,000 Limited Obligation BANs Issued 566,690 Proceeds of Refunding Bonds 5,335,000 Premium on Bonds 1,379,663 Payment to Escrow Agent for Refunding of Debt (19,405,247) Transfers In 62,798 536,493 Transfers Out (21,639,139)

Total Other Financing Sources (Uses) 62,798 (6,466,540)

Net Change in Fund Balances (1,801,624) 1,996 492 1,664,250

Fund Balances - July 1 419,539 53,673 962,724 38,261,718

Fund Balances - June 30$ (1,382,085) $ 55,669 $ 963,216 $ 39,925,968

-57- Schedule 13 Page 1 of 5

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES Nonmajor Capital Projects Funds For the Fiscal Year Ended June 30, 2019

STATE GENERAL GENERAL STREET AND HIGHWAY CAPITAL CAPITAL SIDEWALK ALLOCATION IMPROVEMENTS IMPROVEMENTS II

Revenues: Intergovernmental$ 3,937,607 $ $ $ Investment Income (Loss) 23,748 12,860 68,562 Charges for Current Services 4,069,734 Miscellaneous 123,326 (1,375)

Total Revenues 8,154,415 12,860 67,187

Expenditures: Current: General Government 361 88,394 Public Safety 9,278 Transportation 7,095,251 1,735,827 Engineering and Building Maintenance 752,230 Culture and Recreation 432,133 38,817 Neighborhood Development 16,488 Economic Opportunity Total Expenditures 7,095,251 1,735,827 432,494 905,207

Excess of Revenues Over (Under) Expenditures 1,059,164 (1,735,827) (419,634) (838,020)

Other Financing Sources (Uses): Debt Issuances: General Obligation Bonds Issued Premium on Bonds Transfers In 412,666 1,724,000 575,000 Transfers Out

Total Other Financing Sources (Uses) 412,666 1,724,000 575,000

Net Change in Fund Balances 1,471,830 (11,827) (419,634) (263,020)

Fund Balances - July 1 327,761 2,232,055 623,530 2,839,368

Fund Balances - June 30$ 1,799,591 $ 2,220,228 $ 203,896 $ 2,576,348

-58- Schedule 13 Page 2 of 5

NEIGHBORHOOD LIBRARY HISTORICAL PARKS & REDEVELOPMENT FACILITIES MUSEUM RECREATION SERIES 2005 and 2006A SERIES 2008 SERIES 2008 SERIES 2008

$ $ $ $

130,399 2,500 (21,550)

130,399 2,500 (21,550)

(130,399) (2,500) 21,550

(113,644)

(113,644)

(130,399) (2,500) (92,094)

242,344 486,003 82,180 1,125,803

$ 242,344 $ 355,604 $ 79,680 $ 1,033,709

(continued) -59- Schedule 13 Page 3 of 5

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES Nonmajor Capital Projects Funds For the Fiscal Year Ended June 30, 2019

WAR ECONOMIC FIRE MEMORIAL STREET DEVELOPMENT STATION STADIUM IMPROVEMENTS (continued) SERIES 2008 SERIES 2008 SERIES 2008 SERIES 2010

Revenues: Intergovernmental $ $ $ $ Investment Income (Loss) Charges for Current Services Miscellaneous 6,750 4,800

Total Revenues 6,750 4,800

Expenditures: Current: General Government Public Safety 2,625,989 Transportation 11,788,189 Engineering and Building Maintenance Culture and Recreation 1,020 Neighborhood Development Economic Opportunity 571,867

Total Expenditures 571,867 2,625,989 1,020 11,788,189

Excess of Revenues Over (Under) Expenditures (571,867) (2,619,239) (1,020) (11,783,389)

Other Financing Sources (Uses): Debt Issuances: General Obligation Bonds Issued 65,674,226 Premium on Bonds 4,759,808 Transfers In Transfers Out (1,019,022)

Total Other Financing Sources (Uses) 69,415,012

Net Change in Fund Balances (571,867) (2,619,239) (1,020) 57,631,623

Fund Balances - July 1 5,041,960 3,441,187 1,305,461 (1,519,376)

Fund Balances - June 30$ 4,470,093 $ 821,948 $ 1,304,441 $ 56,112,247

-60- Schedule 13 Page 4 of 5

PARKS AND GREENSBORO PARKS & RECREATION HOUSING SCIENCE CENTER TRANSPORTATION RECREATION SERIES 2010 SERIES 2010 SERIES 2010 SERIES 2016 SERIES 2016

$ $ $ $ $

11,109,070

819,495 486,694 2,953,398 489,549

819,495 489,549 486,694 11,109,070 2,953,398

(819,495) (489,549) (486,694) (11,109,070) (2,953,398)

2,006,761 6,535,859 7,864,299 5,254,750 125,868 480,889 582,800 383,130

(564,250) (10,007)

2,132,629 7,016,748 7,882,849 5,627,873

1,313,134 (489,549) 6,530,054 (3,226,221) 2,674,475

(222,986) 489,549 3,054,973 2,998,588

$ 1,090,148 $ $ 6,530,054 $ (171,248) $ 5,673,063

(continued) -61-

Schedule 13 Page 5 of 5

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES Nonmajor Capital Projects Funds For the Fiscal Year Ended June 30, 2019 TOTAL COMMUNITY & NONMAJOR ECONOMIC FIRE CAPITAL HOUSING DEVELOPMENT STATION PROJECTS (continued) SERIES 2016 SERIES 2016 SERIES 2019 FUNDS

Revenues: Intergovernmental $ $ $ $ 3,937,607 Investment Income (Loss) 105,170 Charges for Current Services 4,069,734 Miscellaneous 485,808 619,309

Total Revenues 485,808 8,731,820

Expenditures: Current: General Government 88,755 Public Safety 2,635,267 Transportation 31,728,337 Engineering and Building Maintenance 752,230 Culture and Recreation 4,842,906 Neighborhood Development 4,162,944 4,668,981 Economic Opportunity 1,370,473 1,942,340

Total Expenditures 4,162,944 1,370,473 46,658,816

Excess of Revenues Over (Under) Expenditures (4,162,944) (1,370,473) 485,808 (37,926,996)

Other Financing Sources (Uses): Debt Issuances: General Obligation Bonds Issued 5,775,000 5,340,100 98,450,995 Premium on Bonds 2,232 395,209 6,729,936 Transfers In 2,711,666 Transfers Out (1,706,923)

Total Other Financing Sources (Uses) 5,777,232 5,735,309 106,185,674

Net Change in Fund Balances 1,614,288 4,364,836 485,808 68,258,678

Fund Balances - July 1 4,525,549 707,284 27,781,233

Fund Balances - June 30$ 6,139,837 $ 5,072,120 $ 485,808 $ 96,039,911

-62-

Schedule 14

Enterprise Funds Schedule of Changes in Long-Term Debt and Water Resources Capital Assets For the Fiscal Year Ended June 30, 2019

Debt Debt Outstanding Outstanding June 30, 2018 Additions Adjustments Retirements June 30, 2019 Water Resources: Revenue Bonds $ 275,352,318 $ $ $ 20,213,845 $ 255,138,473 Revenue BANS 8,552,671 28,619,118 37,171,789 Compensated Absences 1,318,909 1,134,979 1,122,896 1,330,992

Total Water Resources 285,223,898 29,754,097 21,336,741 293,641,254

Coliseum: Installment Financing Agreements 530,212 347,308 182,904 Limited Obligation Bonds 43,450,000 43,450,000 Compensated Absences 502,231 274,615 245,636 531,210

Total Coliseum 44,482,443 274,615 592,944 44,164,114

Greensboro Transit Advisory Commission: Compensated Absences Payable 65,692 53,738 48,317 71,113

Parking Facilities: Compensated Absences 59,699 38,675 55,441 42,933

Solid Waste Management: Special Obligation Bonds 1,535,000 750,000 785,000 Accrued Landfill Liability 26,547,931 612,626 27,160,557 Compensated Absences 177,622 138,897 149,212 167,307

Total Solid Waste Management 28,260,553 751,523 899,212 28,112,864

Stormwater Management: Compensated Absences 278,128 238,055 225,941 290,242

Total Enterprise Funds $ 358,370,413 $ 31,110,703 $ $ 23,158,596 $ 366,322,520

(a) Total Debt Outstanding is net of premiums, discounts and adjustments.

Capital Assets Capital Assets June 30, 2018 Additions Adjustments Disposals June 30, 2019 Water Resources Capital Assets: Land$ 20,161,746 $ 2,886,780 $ (1,679,909) $ $ 21,368,617 Construction in Progress 98,545,376 67,964,523 50,631,885 115,878,014 Intangible Assets - Easements 22,485,034 920,201 23,405,235 Land Improvements 25,647,463 25,647,463 Buildings 190,371,503 48,048,253 1,679,909 240,099,665 Improvements Other Than Buildings 9,456,337 10,149 9,466,486 Furniture, Fixtures, Machinery and Equipment 62,624,268 766,648 144,426 63,246,490 Infrastructure 617,915,117 10,973,837 38,560 628,850,394 Intangible Assets - Water Rights, Software 95,306,494 1,167,311 96,473,805 Accumulated Depreciation/Amortization (416,924,281) (29,080,866) (83,994) (121,897) (445,967,244)

Water Resources Capital Assets, Net $ 725,589,057 $ 103,656,836 $ (83,994) $ 50,692,974 $ 778,468,925

-63-

Special Revenue Funds

State Highway Allocation Fund

This fund was established to account for Powell Bill Funds which are derived from a one and three-fourths cents per gallon fuel tax. The State of North Carolina collects these monies and returns a proportionate share to local governments based on local street mileage and population. Expenditures and transfers from this fund are restricted to specific highway construction and maintenance costs.

Cemetery Fund

The Cemetery Fund is responsible for the operation and maintenance of three cemeteries. The cemeteries are perpetually endowed by the Perpetual Care Fund which receives one-fourth of all cemetery lot sales. All interest earned by the Perpetual Care Fund is restricted for operations of the Cemetery Fund.

Hotel/Motel Occupancy Tax Fund

This fund was established to account for a 3% room occupancy tax levied on hotels and motels located within the City limits. This tax revenue is dedicated for debt service improvements at the Greensboro Coliseum Complex.

Economic Development Fund

The Economic Development Fund was established to support three programs within the City. The Workforce Development Adult and Youth Programs subsidized work experience will assist with paid internships and technical education with hopes of citizens being hired for permanent positions. The Assistance Marketing and Support, as well as the Small Business Loan Pool, aids businesses with advertising and expansion in order to enhance Economic Development within the City of Greensboro. These efforts are funded with a dedicated tax rate of 0.50 cents.

Neighborhood Development Revolving Loan Fund

The purpose of the Neighborhood Development Revolving Loan Fund was to accumulate proceeds from loan repayments. This fund is being merged with the Housing Partnership Fund.

Special Tax Districts Fund

This fund was established to account for a special tax on property in the College Hill and Dunleath Historic Districts, as authorized by voter referendum, and a Business Improvement District in downtown Greensboro.

Housing Partnership Revolving Fund

The Housing Partnership Revolving Fund is supported by 0.69 cents of the property tax rate. This revenue provides resources to fund low and moderate income housing initiatives approved by City Council, including grant/loan programs, construction/renovation projects, and cooperative efforts with private and not-for-profit organizations.

Community Development Fund

The purpose of the Community Development Fund is to account for projects financed primarily with Community Development Block Grant funds which are used for revitalization of low and moderate income areas.

-64-

Special Revenue Funds (continued)

HOME Program Fund

The purpose of the HOME Program Fund is to account for projects financed with Housing and Urban Development funds which are used for revitalization of low and moderate income areas.

Workforce Investment Act

The purpose of the Workforce Investment Act is to account for Department of Labor grant funds used to establish programs for employment and classroom training activities.

State and Federal Grants Fund

The purpose of the State and Federal Grants Fund is to account for various projects financed primarily with State or Federal aid.

State and Federal Grants (ARRA) Fund

The purpose of the State and Federal American Recovery and Reinvestment Act (ARRA) Grants Fund is to account for various projects financed primarily with State or Federal aid from ARRA funds.

Emergency Telephone System Fund

This fund accounts for the Guilford Metro 911 Emergency Telephone System that is supported by 911 surcharge fees. Emergency communications administration is recorded in the Guilford Metro Communications Internal Service Fund that is funded by contributions from the City and Guilford County.

-65-

Schedule 15

State Highway Allocation Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Fiscal Year Ended June 30, 2019

Variance Final Positive Budget Actual (Negative) Revenues: Intergovernmental: State Powell Bill$ 7,320,000 $ 7,293,172 $ (26,828)

Investment Income (Loss) 142,441 142,441

Miscellaneous: Sales and Use Tax Refund 26,159 26,159

Appropriated Fund Balance 50,000 (50,000)

Total Revenues 7,370,000 7,461,772 91,772

Other Financing Uses: Transfers Out (7,370,000) (7,370,000)

Excess of Revenues Over Other Financing Uses$ 91,772 91,772

Fund Balance - July 1 83,871 83,871

Fund Balance - June 30$ 175,643 $ 175,643

-66- Schedule 16

Cemetery Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Fiscal Year Ended June 30, 2019

Variance Final Positive Budget Actual (Negative) Revenues: Charges for Current Services: Forest Lawn Cemetery$ 282,000 $ 314,890 $ 32,890 Maplewood Cemetery 62,500 52,130 (10,370) Greenhill Cemetery 34,000 28,405 (5,595) Total Charges for Current Services 378,500 395,425 16,925

Investment Income (Loss) 45,290 70,995 25,705

Miscellaneous: Other Revenue 5,473 5,473 Total Miscellaneous 5,473 5,473

Appropriated Fund Balance 29,817 (29,817)

Total Revenues 453,607 471,893 18,286

Expenditures: Culture and Recreation: Cemeteries: Administration 258,400 254,952 3,448 Forest Lawn Cemetery 321,392 339,729 (18,337) Maplewood Cemetery 12,748 1,883 10,865 Greenhill Cemetery 253,023 243,321 9,702

Total Expenditures 845,563 839,885 5,678

Excess of Revenues Under Expenditures (391,956) (367,992) 23,964

Other Financing Sources (Uses): Transfers In 435,706 435,706 Transfers Out (43,750) (45,225) (1,475) Total Other Financing Sources (Uses) 391,956 390,481 (1,475)

Excess of Revenues and Other Financing Sources Over Expenditures and Other Financing (Uses)$ 22,489 22,489

Fund Balance - July 1 234,299 234,299

Fund Balance - June 30$ 256,788 $ 256,788

-67- Schedule 17

Hotel/Motel Occupancy Tax Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Fiscal Year Ended June 30, 2019

Variance Final Positive Budget Actual (Negative) Revenues: Taxes: Room Occupancy Tax$ 4,239,840 $ 4,684,823 $ 444,983

Investment Income (Loss) 95,965 188,712 92,747

Miscellaneous: Donations and Contributions 125,000 125,000 Total Miscellaneous 125,000 125,000

Appropriated Fund Balance 1,150 (1,150)

Total Revenues 4,336,955 4,998,535 661,580

Expenditures: Culture and Recreation: Rental of Land and Buildings 200,010 200,017 (7) Administration 6,177 6,393 (216) Miscellaneous Fees 552,559 53,513 499,046 Debt Service: Principal Retirement 1,328,065 970,000 358,065 Interest 1,855,144 1,750,370 104,774 Fees and Other 470,000 538,076 (68,076)

Total Expenditures 4,411,955 3,518,369 893,586

Excess of Revenues Over (Under) Expenditures (75,000) 1,480,166 1,555,166

Other Financing Sources (Uses): Debt Issuances: Limited Obligation BANs Issued 53,275,000 566,690 (52,708,310) Limited Obligation Bonds Issued 26,760,000 26,760,000 Premium on Bonds Issued 1,379,663 1,379,663 Proceeds from Refunding Bonds 5,600,000 5,335,000 (265,000) Payments to Escrow Agent for Refunding of Debt (45,525,000) (19,405,247) 26,119,753 Transfer Out-Coliseum Improvement Bond Fund 2015 (13,275,000) (13,858,125) (583,125) Total Other Financing Sources (Uses) 75,000 777,981 702,981

Excess of Revenues and Other Financing Sources Over Expenditures and Other Financing (Uses)$ 2,258,147 2,258,147

Fund Balance - July 1 6,708,558 6,708,558

Fund Balance - June 30$ 8,966,705 $ 8,966,705

-68- Schedule 18

Economic Development Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Fiscal Year Ended June 30, 2019

Variance Final Positive Budget Actual (Negative) Revenues: Taxes: Ad Valorem Taxes$ 1,386,000 $ 1,392,790 $ 6,790

Investment Income (Loss) 207,279 90,740 (116,539)

Charges for Current Services: Principal - Notes and Mortgages 27,889 27,889 Other Revenue 10,000 11,787 1,787 Total Charges for Current Services 10,000 39,676 29,676

Appropriated Fund Balance 550,624 (550,624)

Total Revenues 2,153,903 1,523,206 (630,697)

Expenditures: Economic Opportunity: Economic Development Administration 224,083 76,338 147,745 Capital Assistance Loan Pool 429,000 429,000 Regional Economic Development 100,000 100,000 Community Partners Funding 699,843 699,843 Downtown Development 373,177 373,177

Total Expenditures 1,826,103 1,678,358 147,745

Excess of Revenues Over (Under) Expenditures 327,800 (155,152) (482,952)

Other Financing Uses: Transfers Out (327,800) (327,800) Total Other Financing Uses (327,800) (327,800)

Excess of Revenues Under Expenditures and Other Financing Uses $ (482,952) (482,952)

Fund Balance - July 1 1,142,574 1,142,574

Fund Balance - June 30$ 659,622 $ 659,622

Reconciliation of Budgetary Basis to GAAP Basis: Excess of Revenues and Other Financing Sources Over Expenditures and Other Financing (Uses) $ 659,622 Difference in Loan Treatment Required by Governmental Accounting Standards Beginning Balance - July 1 780,629 Current Year Activity (27,889) Fund Balance - June 30 $ 1,412,362

-69- Schedule 19

Neighborhood Development Revolving Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Fiscal Year Ended June 30, 2019

Variance Final Positive Budget Actual (Negative) Revenues: Investment Income (Loss) $ $$

Appropriated Fund Balance 37,989 (37,989)

Total Revenues 37,989 (37,989)

Excess of Revenues Over Expenditures 37,989 (37,989)

Other Financing Uses: Transfers Out (37,989) (37,989)

Total Other Financing Uses (37,989) (37,989)

Excess of Revenues Under Other Financing Uses$ (37,989) (37,989)

Fund Balance - July 1 37,989 37,989

Fund Balance - June 30$ $

-70- Schedule 20

Special Tax Districts Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Fiscal Year Ended June 30, 2019

Variance Final Positive Budget Actual (Negative) Revenues: Taxes: Ad Valorem Taxes$ 734,600 $ 746,770 $ 12,170 Local Option Sales Tax 160,000 201,559 41,559 Total Taxes 894,600 948,329 53,729

Charges for Current Services: Other Revenue 42 42

Investment Income (Loss) 29,802 29,802

Appropriated Fund Balance 218,262 (218,262)

Total Revenues 1,112,862 978,173 (134,689)

Expenditures: Neighborhood Development: Dunleath Historic District 175,292 11,831 163,461 College Hill Historic District 10,000 189 9,811 Business Improvement District 927,570 920,040 7,530

Total Expenditures 1,112,862 932,060 180,802

Excess of Revenues Over Expenditures $ 46,113 46,113

Fund Balance - July 1 1,153,765 1,153,765

Fund Balance - June 30$ 1,199,878 $ 1,199,878

-71- Schedule 21

Housing Partnership Revolving Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Fiscal Year Ended June 30, 2019

Variance Final Positive Budget Actual (Negative) Revenues: Taxes: Ad Valorem Taxes $ 1,912,000 $ 1,924,177 $ 12,177

Charges for Current Services: Mortgage Collections 75,000 96,868 21,868 Sale of Real Estate 28,000 (28,000) Other Revenue 3,760 2,317 (1,443) Total Charges for Current Services 106,760 99,185 (7,575)

Investment Income (Loss) 25,000 88,423 63,423

Appropriated Fund Balance 711,128 (711,128)

Total Revenues 2,754,888 2,111,785 (643,103)

Expenditures: Neighborhood Development: Administration 2,100,189 1,917,458 182,731 Homeless Prevention 581,651 544,167 37,484 Housing Programs 111,037 62,860 48,177

Total Expenditures 2,792,877 2,524,485 268,392

Excess of Revenues Under Expenditures (37,989) (412,700) (374,711)

Other Financing Sources: Transfers In 37,989 37,989

Excess of Revenues and Other Financing Sources Under Expenditures $ (374,711) (374,711)

Fund Balance - July 1 2,515,911 2,515,911

Fund Balance - June 30$ 2,141,200 $ 2,141,200

Reconciliation of Budgetary Basis to GAAP Basis: Excess of Revenues and Other Financing Sources Over Expenditures and Other Financing (Uses)$ 2,141,200 Difference in Loan Treatment Required by Governmental Accounting Standards Beginning Balance - July 1 9,266,739 Current Year Activity 1,378,855 Fund Balance - June 30 $ 12,786,794

-72- Schedule 22 Page 1 of 2 Community Development Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual From Project Inception and For the Fiscal Year Ended June 30, 2019

Actual Project Prior Current Total Authorization Years Year To Date Revenues: Intergovernmental: Federal Grants$ 11,736,832 $ 6,515,757 $ 2,042,537 $ 8,558,294

Investment Income (Loss) 899,635 744,902 18,887 763,789

Charges for Current Services: Program Income Rent 346,203 441,690 251 441,941 Principal - Notes and Mortgages 3,551,694 3,392,442 129,829 3,522,271 Targeted Loan Pool Proceeds 652,485 643,950 15,288 659,238 NCHFA Willow Oaks Program Support 500 4,000 4,000 Sale of Real Estate 916,614 870,389 870,389 Other Revenue 72,034 90,508 7,406 97,914 Total Charges for Current Services 5,539,530 5,442,979 152,774 5,595,753

Total Revenues 18,175,997 12,703,638 2,214,198 14,917,836

Expenditures: Neighborhood Development: Block Grant: Administration 2,771,611 2,281,102 394,507 2,675,609 Fair Housing 129,500 55,500 55,500 Rental Rehabilitation 202,856 233,381 (30,525) 202,856 Target Area Personnel 95,000 95,000 95,000 Targeted Loan Pool Program 5,152 Asheboro 651,079 386,079 386,079 Section 108 Loan Principal Retirement 4,965,969 4,228,260 737,709 4,965,969 South Elm Street 1,341,768 859,657 162,481 1,022,138 Willow Oaks 444,031 204,961 12,235 217,196 Homelessness Prevention 1,034,520 858,390 128,365 986,755 Homeowner Rehab 3,451,083 1,536,880 616,208 2,153,088 Prince of Peace Shelter 176,130 176,130 176,130 Renaissance Center 50,000 50,000 50,000 CD Lead Remediation 393,338 228,762 90,985 319,747 Section 108 Project 1,640,000 1,639,999 1,639,999 Homebuyer Education Program 126,000 26,000 34,698 60,698 Code Compliance Boarding Section 3 50,000 50,000 50,000 Homeowner Code Compliance 151,656 21,265 25,862 47,127 Housing Reclamation Program 150,641 Other Community Development: Kids, Inc. Day Care 212,780 199,554 14,560 214,114 Federal Emergency Shelter Grant 150,651 149,651 1,000 150,651 Bessemer Shopping Center 73,000 74,991 74,991

Total Expenditures 18,266,765 13,355,562 2,188,085 15,543,647

Excess of Revenues Over (Under) Expenditures (90,768) (651,924) 26,113 (625,811)

-73- Schedule 22 Page 2 of 2 Community Development Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual From Project Inception and For the Fiscal Year Ended June 30, 2019

Actual Project Prior Current Total Authorization Years Year To Date Other Financing Sources (Uses): Transfers In$ 90,768 $ 90,768 $ $ 90,768 Federal Loan Program-HUD 1,392,000 1,392,000 1,392,000 Payment to Escrow Agent for Refunding of Debt (1,392,000) (1,392,000) (1,392,000) Total Other Financing Sources (Uses) 90,768 90,768 90,768

Excess of Revenues and Other Financing Sources Over (Under) Expenditures and Other Financing (Uses) $ (561,156) 26,113 (535,043)

Fund Balance - July 1 (561,156)

Fund Balance - June 30$ (561,156) $ (535,043) $ (535,043)

Reconciliation of Budgetary Basis to GAAP Basis: Excess of Revenues and Other Financing Sources Over Expenditures and Other Financing (Uses) $ (535,043) Difference in Loan Treatment Required by Governmental Accounting Standards Beginning Balance - July 1 4,117,477 Current Year Activity (65,326) Fund Balance - June 30 $ 3,517,108

-74- Schedule 23

HOME Program Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual From Project Inception and For the Fiscal Year Ended June 30, 2019

Actual Project Prior Current Total Authorization Years Year To Date Revenues: Intergovernmental: Federal Grants$ 20,773,881 $ 15,076,839 $ 1,481,702 $ 16,558,541

Investment Income (Loss) 386,438 303,828 11,056 314,884

Miscellaneous: Principal - Notes and Mortgages 1,455,106 1,440,203 129,905 1,570,108 Sale of Real Estate 84,109 84,110 84,110 Other Revenue 181,944 208,625 22,414 231,039 Total Miscellaneous 1,721,159 1,732,938 152,319 1,885,257

Total Revenues 22,881,478 17,113,605 1,645,077 18,758,682

Expenditures: Planning and Community Development: Greensboro Home Program 16,844,928 11,752,120 1,366,437 13,118,557 Guilford County Home Program 969,740 547,746 60,840 608,586 High Point Home Program 574,005 574,005 574,005 Burlington Home Program 3,014,062 2,375,882 43,064 2,418,946 Alamance County Home Program 1,478,743 1,110,914 48,831 1,159,745

Total Expenditures 22,881,478 16,360,667 1,519,172 17,879,839

Excess of Revenues Over Expenditures $ 752,938 125,905 878,843

Fund Balance - July 1 752,938

Fund Balance - June 30$ 752,938 $ 878,843 $ 878,843

Reconciliation of Budgetary Basis to GAAP Basis: Excess of Revenues and Other Financing Sources Over Expenditures and Other Financing (Uses) $ 878,843 Difference in Loan Treatment Required by Governmental Accounting Standards Beginning Balance - July 1 10,627,206 Current Year Activity 473,314 Fund Balance - June 30 $ 11,979,363

-75- Schedule 24

Workforce Investment Act Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual From Project Inception and For the Fiscal Year Ended June 30, 2019

Actual Project Prior Current Total Authorization Years Year To Date Revenues: Intergovernmental: Federal Grants: WIA Adult$ 5,733,112 $ 3,953,259 $ 1,297,611 $ 5,250,870 WIA Dislocated Worker 2,809,593 1,532,033 830,047 2,362,080 WIA Youth 4,971,950 3,333,972 1,019,846 4,353,818 Administrative Cost Pools 1,501,626 1,014,596 466,755 1,481,351 Wired Grants 93,439 83,501 83,501 DW Rapid Response 400,000 356,383 43,617 400,000 Career Pathways 30,000 15,271 14,729 30,000 Guilford Apprenticeship 126,426 126,425 126,425 Guilford WDB Marketing Fund 5,851 1,007 4,844 5,851 Guilford WDB Program Enhancement 30,000 WDB Bus Service 100,000 25,000 75,000 100,000 Finish Line 229,000 185,417 185,417 Infrastructure 178,186 178,186 178,186 Total Federal Grants 16,209,183 10,441,447 4,116,052 14,557,499

State Grants: Guilford ETWI 292,000 33,210 33,210

Local Grants: GCS Aviation WE 2014-15 145,878 116,250 116,250

Total Intergovernmental 16,647,061 10,557,697 4,149,262 14,706,959

Investment Income (Loss) (13,261) (2,674) (15,935)

Charges for Current Services: Sale of Materials 166 166 Other Revenue 511,354 457,068 21,534 478,602

Total Revenues 17,158,415 11,001,670 4,168,122 15,169,792

Expenditures: Economic Opportunity: WIA Adult 5,733,271 3,953,585 1,297,444 5,251,029 WIA Dislocated Worker 2,809,646 1,532,085 830,048 2,362,133 WIA Youth 4,972,071 3,334,092 1,019,848 4,353,940 Administrative Cost Pools 1,501,627 1,014,596 466,755 1,481,351 Wired Grants 93,439 80,911 80,911 Rental Expenditures 511,020 422,737 21,701 444,438 GCS Aviation WE 2014-15 145,878 116,250 116,250 DW Rapid Response 400,000 400,000 400,000 Career Pathways 30,000 30,000 30,000 Guilford Apprenticeship 126,426 126,425 126,425 Guilford ETWI 292,000 59,334 59,334 Guilford WDB Marketing Fund 5,851 1,007 4,844 5,851 Guilford WDB Program Enhancement 30,000 WDB Bus Service 100,000 25,000 75,000 100,000 Finish Line 229,000 185,417 185,417 Infrastructure 178,186 178,186 178,186 Total Expenditures 17,158,415 11,036,688 4,138,577 15,175,265

Excess of Revenues Over (Under) Expenditures $ (35,018) 29,545 (5,473)

Fund Balance - July 1 (35,018)

Fund Balance - June 30 $ (35,018) $ (5,473) $ (5,473)

-76- Schedule 25 Page 1 of 3 State and Federal Grants Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual From Project Inception and For the Fiscal Year Ended June 30, 2019

Actual Project Prior Current Total Authorization Years Year To Date Revenues: Intergovernmental: Federal Grants$ 30,512,354 $ 13,159,961 $ 2,994,274 $ 16,154,235 State Grants 6,827,157 2,942,883 1,121,222 4,064,105 Other State Revenue - Drug Excise Tax 1,046,745 551,712 175,058 726,770 Local Grants 160,371 120,904 39,467 160,371 In-Kind and Matching Revenues 3,355,962 2,943,410 330,991 3,274,401 Total Intergovernmental 41,902,589 19,718,870 4,661,012 24,379,882

Investment Income (Loss) 16,629 16,655 313 16,968

Miscellaneous: Principal - Notes and Mortgages 2,563 2,563 Other Revenue 31,081 320 31,401 Total Miscellaneous 31,081 2,883 33,964

Total Revenues 41,919,218 19,766,606 4,664,208 24,430,814

Expenditures: General Government: Public Access Channel 637,450 637,450 637,450 Total General Government 637,450 637,450 637,450

Public Safety: Forfeiture Funds - FY 16 100,000 81,817 81,817 FF Service Side Arm Grant 408,058 408,057 (60,863) 347,194 FF Soabar Office Space 885,000 2,401 2,401 State Drug Excise Fund - FY 14 65,000 59,140 5,860 65,000 State Drug Excise Fund - FY 19 200,000 191,016 191,016 Governor's Crime Commission - Child Response - FY 16 94,987 94,987 94,987 Governor's Crime Commission - Child Response - FY 17 182,833 165,694 165,694 Governor's Crime Commission - Child Response - FY 18 155,287 20,175 103,089 123,264 Governor's Crime Commission - Child Response - FY 19 155,287 40,692 40,692 Project Safe Neighborhoods - FY 16-18 300,000 50,625 11,958 62,583 Byrne Justice Assistance Grant - FY 14 217,853 217,852 217,852 Byrne Justice Assistance Grant - FY 16 191,755 191,755 191,755 Byrne Justice Assistance Grant - FY 17 204,515 177,043 177,043 Byrne Justice Assistance Grant - FY 18 209,245 60,215 60,215 Byrne Justice Assistance Grant - FY 19 225,141 PNRC Walmart Grant - FY 13 1,000 951 951 PNRC Walmart Grant - FY 14 500 500 500 PNRC Walmart Grant - FY 18 2,500 261 1,674 1,935 Walmart D2 Community Outreach - FY 17 1,500 1,492 1,492 Walmart D2 Community Outreach - FY 18 1,000 Walmart Community Engagement - FY 15 3,500 3,000 3,000 Walmart Pomona Grant - FY 15 1,500 1,256 1,256 Walmart Explorers Program - FY 18 3,000 379 156 535 Walmart Project Yuletide - FY 19 250 Violent Crime Initiative - FY 17 100,000 67,052 5,039 72,091 FF Balistic Vests & Equipment - FY 18 200,000 147,542 147,542 DNA Testing Program 125,000 68,095 18,371 86,466 Police Equipment & Training - FY 18 185,000 48,382 136,617 184,999 Supplemental Body Cameras 254,360 254,056 254,056 BJA Body Worn Cameras - FY 16-18 600,000 598,316 1,684 600,000

-77- Schedule 25 Page 2 of 3 State and Federal Grants Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual From Project Inception and For the Fiscal Year Ended June 30, 2019

Actual Project Prior Current Total Authorization Years Year To Date Expenditures: (Continued) Public Safety (continued): Safe Guilford Traffic Grant - FY 14$ 1,500 $ 1,036 $$ 1,036 CFAT Grant FY 19 42,920 Colonial Pipeline-Bldg 225,000 217,654 217,654 DNA Cold Case Grant - FY 14 56,670 34,079 10,755 44,834 Metro Medical Response System - FY 03 880,557 630,599 81,867 712,466 RRT Homeland Security Grant - FY 17 69,000 68,997 68,997 RRT Homeland Security Grant - FY 18 69,000 68,739 68,739 Safer Grant - FY 14 1,119,648 1,119,648 1,119,648 AFG Grant - FY 17 34,020 16,593 16,593 Crime Stoppers Gun Project - Yr 2 8,000 8,000 8,000 Homeland Security Grant - FY17 30,000 30,000 30,000 Total Public Safety 7,610,386 4,607,491 856,812 5,464,303

Transportation: State Planning & Research/PL 104(f) - FY 18 486,789 485,651 485,651 State Planning & Research/PL 104(f) - FY 19 565,135 565,135 565,135 Eckerson US 29 Environmental Study 1,050,000 989,097 989,097 Section 5303 Metro Planning - FY 18 176,000 176,000 176,000 Section 5303 Metro Planning - FY 19 176,000 171,534 171,534 NCDOT Advanced Technology Grant FY 20 320,705 GDOT(Signal) Master Arm Project 186,817 159,708 159,708 NCDOT Project - Market Street-Fanta SC Driveway 32,621 Greenway Phase 3A-Corner Park 34,690 78,199 78,199 Randleman Road FYA Installation 12,000 Streets Improvement - U-5306-A 4,400,000 2,545,851 1,826,616 4,372,467 Streets Improvement - U-5306-B 10,565,313 1,302,652 1,034,960 2,337,612 Streets Improvement - U-5306-C 1,580,000 1,190,506 284,207 1,474,713 Streets Improvement - U-5306-D 325,000 319,672 319,672 Total Transportation 19,911,070 7,247,336 3,882,452 11,129,788

Environmental Services: Piedmont Triad Water Quality - Yr 14 83,990 62,581 21,409 83,990 Piedmont Triad Water Quality - Yr 15 53,000 36,506 16,344 52,850 NC Clean Water Management Phase II - South Buffalo 786,127 424,431 424,431 NC Clean Water Management Phase III 665,200 538,912 538,912 NC Clean Water Management Phase IV 695,000 136,324 169,826 306,150 Total Environmental Services 2,283,317 1,198,754 207,579 1,406,333

(continued) -78-

Schedule 25 Page 3 of 3

State and Federal Grants Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual From Project Inception and For the Fiscal Year Ended June 30, 2019

Actual Project Prior Current Total Authorization Years Year To Date Expenditures: (Continued) Culture and Recreation: Seniors General Purpose - FY 17$ 14,504 $ 14,503 $ 1 $ 14,504 Seniors General Purpose - FY 18 14,585 14,585 14,585 Seniors General Purpose - FY 19 14,257 14,257 14,257 Ruth Wicker - Memorial to Women Grant 900,000 759,169 125,621 884,790 National Recreation & Parks Association-Disney Meet Me at the Park 60,000 20,015 20,015 Special Events,Tourism,Culturally-Related Activities - FY 15 130,058 127,620 127,620 Special Events,Tourism,Culturally-Related Activities Volleyball 20,000 20,000 20,000 Special Events,Tourism,Culturally-Related Activities Swim 5,589 5,589 5,589 Special Events,Tourism,Culturally-Related Activities - FY 18 10,000 10,000 10,000 Special Events,Tourism,Culturally-Related Activities Volleyball FY19 8,000 8,000 8,000 Special Events,Tourism,Culturally-Related Activities - FY 19 23,750 23,750 23,750 Duke Energy Grant 37,965 37,965 37,965 USTA Grant - FY 17 15,000 15,000 15,000 USTA Build it Forward - FY 17 13,000 13,000 13,000 USTA Rasie the Net - FY 17 7,000 7,000 7,000 Carolina Panthers Grant - FY 18 4,000 3,757 243 4,000 Carolina Panthers Grant - FY 19 2,500 2,236 2,236 LWCF Keeley Park Phase 2 Grant 500,000 Community Food Task Force FY18 10,000 7,500 7,500 Total Culture and Recreation 1,790,208 993,188 236,623 1,229,811

Neighborhood Development: Fair Housing Assistance - 2003-09 98,330 98,330 98,330 Fair Housing Assistance - 2008-09 52,892 52,892 52,892 Fair Housing Assistance - 2009-10 65,400 65,400 65,400 Fair Housing Assistance - 2010-11 154,725 154,725 154,725 Fair Housing Assistance - 2011-12 72,562 61,839 10,723 72,562 Fair Housing Assistance - 2012-13 20,854 7,282 13,572 20,854 Fair Housing Assistance - 2013-14 67,788 5,360 45,555 50,915 Fair Housing Assistance - 2014-15 39,275 1,433 1,256 2,689 Fair Housing Assistance - 2015-16 38,250 14,788 1,925 16,713 Fair Housing Assistance - 2016-17 76,950 3,189 3,189 Fair Housing Assistance - 2017-18 59,700 Emergency Solutions - FY15 164,178 164,178 164,178 Emergency Solutions - FY16 177,108 177,108 177,108 Emergency Solutions - FY17 177,096 177,096 177,096 Emergency Solutions - FY18 182,064 120,749 61,315 182,064 Emergency Solutions - FY19 177,564 177,564 177,564 Lead Paint Grant - FY 11 3,100,000 2,903,110 2,903,110 LFPP Implementation Grant 820,300 329,648 245,720 575,368 EPA RLF Brownsfield Cleanup Grant 1,000,000 685,642 685,642 HOPWA - FY14-15 316,966 316,966 316,966 HOPWA - FY15-16 321,182 321,182 321,182 HOPWA - FY16-17 325,096 229,263 95,833 325,096 HOPWA - FY17-18 370,437 236,782 236,782 HOPWA - FY18-19 419,625 Historic Preservation - FY 17 10,000 10,000 10,000 Lead Paint & Healthy Homes Grant - FY17 2,900,000 102,555 442,356 544,911 Total Neighborhood Development 11,208,342 5,992,735 1,342,601 7,335,336

Total Expenditures 43,440,773 20,676,954 6,526,067 27,203,021

Excess of Revenues Under Expenditures (1,521,555) (910,348) (1,861,859) (2,772,207) Other Financing Sources: Transfers In 1,521,555 1,186,887 62,798 1,249,685

Excess of Revenues and Other Financing Sources Over (Under) Expenditures$ 276,539 (1,799,061) (1,522,522)

Fund Balance - July 1 276,539

Fund Balance - June 30 $ 276,539 $ (1,522,522) $ (1,522,522)

Reconciliation of Budgetary Basis to GAAP Basis: Excess of Revenues and Other Financing Sources Over Expenditures and Other Financing (Uses) $ (1,522,522) Difference in Loan Treatment Required by Governmental Accounting Standards Beginning Balance - July 1 143,000 Current Year Activity (2,563) Fund Balance - June 30 $ (1,382,085)

-79- Schedule 26

State and Federal Grants (ARRA) Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual From Project Inception and For the Fiscal Year Ended June 30, 2019

Actual Project Prior Current Total Authorization Years Year To Date Revenues: Intergovernmental: Federal Grants$ 8,243,026 $ 8,102,911 $ $ 8,102,911

Investment Income (Loss) (22,227) 1,996 (20,231)

Miscellaneous: Sale of Real Estate 159,603 159,602 159,602 Total Miscellaneous 159,603 159,602 159,602

Total Revenues 8,402,629 8,240,286 1,996 8,242,282

Expenditures: Neighborhood Development: NSP (HERA) 3,402,629 3,320,546 3,320,546 Better Homes (ARRA) 5,000,000 4,866,067 4,866,067 Total Planning and Community Development 8,402,629 8,186,613 8,186,613

Total Expenditures 8,402,629 8,186,613 8,186,613

Excess of Revenues Over Expenditures$ 53,673 1,996 55,669

Fund Balance - July 1 53,673

Fund Balance - June 30$ 53,673 $ 55,669 $ 55,669

-80- Schedule 27

Emergency Telephone System Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Fiscal Year Ended June 30, 2019

Variance Final Positive Budget Actual (Negative) Revenues: Charges for Current Services: 911 Surcharge $ 2,612,607 $ 2,518,081 $ (94,526)

Investment Income (Loss) 15,141 15,141

Appropriated Fund Balance 418,357 (418,357)

Total Revenues 3,030,964 2,533,222 (497,742)

Expenditures: Public Safety: 911 Wireless 3,030,964 2,532,730 498,234

Excess of Revenues Over Expenditures $ 492 492

Fund Balance - July 1 962,724 962,724

Fund Balance - June 30$ 963,216 $ 963,216

-81-

Debt Service Fund

This fund is used to account for the retirement of ad valorem tax-supported General Obligation Bonds. The retirement of all other General Obligation Bonds is accounted for in the Technical Services Fund.

-82-

Schedule 28

Debt Service Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Fiscal Year Ended June 30, 2019

Variance Final Positive Budget Actual (Negative) Revenues: Interest Earnings: Investment Income$ 3,225,750 $ 4,071,541 $ 845,791 Net Increase (Decrease) in the Fair Value of Investments 966,059 966,059 Total Investment Income 3,225,750 5,037,600 1,811,850

Miscellaneous: Sales and Use Tax Refund 150,000 191,317 41,317

Appropriated Fund Balance 49,045 (49,045)

Total Revenues 3,424,795 5,228,917 1,804,122

Expenditures: Operating Expenditures: Personal Services 144,702 106,845 37,857 Fringe Benefits 49,042 28,938 20,104 Maintenance and Operations 115,328 93,386 21,942 Total Operating Expenditures 309,072 229,169 79,903

Debt Service: Principal Retirement 17,694,512 14,078,932 3,615,580 Interest 10,382,821 8,614,130 1,768,691 Fees and Other 1,044,000 290,196 753,804 Total Debt Service Expenditures 29,121,333 22,983,258 6,138,075

Total Expenditures 29,430,405 23,212,427 6,217,978

Excess of Revenues Under Expenditures (26,005,610) (17,983,510) 8,022,100

Other Financing Sources (Uses): Debt Issuances: General Obligation Refunding Bonds Issued 64,570,000 48,668,047 (15,901,953) Premium on Debt 3,346,364 3,346,364 Payment to Escrow Agent for Refunding of Debt (64,570,000) (51,980,963) 12,589,037 Transfers In 26,005,610 23,405,610 (2,600,000) Total Other Financing Sources (Uses) 26,005,610 23,439,058 (2,566,552)

Excess of Revenues and Other Financing Sources Over Expenditures and Other Financing Uses $ 5,455,548 5,455,548

Fund Balance - July 1 23,180,822 23,180,822

Fund Balance - June 30 $ 28,636,370 $ 28,636,370

-83-

Capital Projects Funds

Capital Projects Funds are used to account for all major capital improvements primarily financed with the proceeds of bond sales. The funds presented in this section represent those which account for general improvements. Improvements associated with the proprietary operations are reported in the Enterprise Funds and Internal Service Funds sections.

-84-

Schedule 29

Street and Sidewalk Capital Project Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual From Project Inception and For the Fiscal Year Ended June 30, 2019

Actual Project Prior Current Total Authorization Years Year To Date Revenues: Intergovernmental: Federal Grant$ 25,290,968 $ 606,500 $ 2,330,371 $ 2,936,871 State Grant 29,433,342 10,542,385 1,607,236 12,149,621 State Reimbursements - Transportation Projects 130,312 184,201 184,201 Total Intergovernmental 54,854,622 11,333,086 3,937,607 15,270,693

Investment Income (Loss) (27,825) 23,748 (4,077)

Miscellaneous: Donations and Private Contributions 252,000 157,679 94,321 252,000 Other Revenue 1,484,294 1,033,053 29,005 1,062,058 Total Miscellaneous 1,736,294 1,190,732 123,326 1,314,058

Charges for Current Services: Motor Vehicle Licenses 9,200,000 6,962,223 3,814,332 10,776,555 Assessments 18,743 8,018 26,761 Sale of Real Estate 187,000 187,000 187,000 Contracted Construction Projects 666,803 167,365 247,384 414,749 Total Charges for Current Services 10,053,803 7,335,331 4,069,734 11,405,065

Total Revenues 66,644,719 19,831,324 8,154,415 27,985,739

Expenditures: Capital Improvements: Transportation: Transportation Improvements 79,096,278 24,177,324 7,095,251 31,272,575

Excess of Revenues Over (Under) Expenditures (12,451,559) (4,346,000) 1,059,164 (3,286,836)

Other Financing Sources (Uses): Transfers In 12,912,559 5,134,761 412,666 5,547,427 Transfers Out (461,000) (461,000) (461,000)

Total Other Financing Sources (Uses) 12,451,559 4,673,761 412,666 5,086,427

Excess of Revenues and Other Financing Sources Over Expenditures and Other Financing (Uses)$ 327,761 1,471,830 1,799,591

Fund Balance - July 1 327,761

Fund Balance - June 30$ 327,761 $ 1,799,591 $ 1,799,591

-85- Schedule 30

State Highway Allocation Capital Project Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual From Project Inception and For the Fiscal Year Ended June 30, 2019

Actual Project Prior Current Total Authorization Years Year To Date Expenditures: Capital Improvements: Transportation: Transportation Improvements$ 19,655,421 $ 15,526,697 $ 1,735,827 $ 17,262,524 Sidewalk and Crosswalk Construction 37,677 37,677 37,677

Total Expenditures 19,693,098 15,564,374 1,735,827 17,300,201

Other Financing Sources (Uses): Transfers In 21,137,542 19,193,542 1,724,000 20,917,542 Transfers Out (1,444,444) (1,397,113) (1,397,113)

Total Other Financing Sources (Uses) 19,693,098 17,796,429 1,724,000 19,520,429

Excess of Other Financing Sources Over (Under) Expenditures and Other Financing (Uses) $ 2,232,055 (11,827) 2,220,228

Fund Balance - July 1 2,232,055

Fund Balance - June 30$ 2,232,055 $ 2,220,228 $ 2,220,228

-86- Schedule 31

General Capital Improvements Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual From Project Inception and For the Fiscal Year Ended June 30, 2019

Actual Project Prior Current Total Authorization Years Year To Date Revenues: Investment Income (Loss)$ 100,000 $ 160,734 $ 12,860 $ 173,594 Miscellaneous: Sale of Real Estate 892,000 888,530 888,530 Donations and Private Contributions 100,000 92,200 92,200

Total Revenues 1,092,000 1,141,464 12,860 1,154,324

Expenditures: Capital Improvements: General Government 1,700,000 1,677,911 361 1,678,272 Neighborhood Development 3,500 Transportation 35,166 6,391 6,391 Culture and Recreation 784,060 223,473 432,133 655,606

Total Expenditures 2,522,726 1,907,775 432,494 2,340,269

Excess of Revenues Under Expenditures (1,430,726) (766,311) (419,634) (1,185,945)

Other Financing Sources: Transfers In 1,430,726 1,389,841 1,389,841

Excess of Revenues and Other Financing Sources Over (Under) Expenditures$ 623,530 (419,634) 203,896

Fund Balance - July 1 623,530

Fund Balance - June 30$ 623,530 $ 203,896 $ 203,896

-87- Schedule 32

General Capital Improvements Fund II Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual From Project Inception and For the Fiscal Year Ended June 30, 2019

Actual Project Prior Current Total Authorization Years Year To Date Revenues: Intergovernmental: Federal Forfeiture$ 500,000 $ 500,000 $ $ 500,000

Investment Income (Loss) 10,140 68,562 78,702

Miscellaneous: Rent- Real Estate 100,000 64,866 (1,375) 63,491 Sale of Real Estate 485,800 924,350 924,350 Total Miscellaneous Revenue 585,800 989,216 (1,375) 987,841

Total Revenues 1,085,800 1,499,356 67,187 1,566,543

Expenditures: Capital Improvements: General Government 1,135,000 232,764 88,394 321,158 Public Safety 2,300,000 2,279,166 9,278 2,288,444 Culture and Recreation 485,800 38,817 38,817 Engineering 2,415,500 1,288,769 752,230 2,040,999 Neighborhood Development 1,310,347 845,136 16,488 861,624

Total Expenditures 7,646,647 4,645,835 905,207 5,551,042

Excess of Revenues Under Expenditures (6,560,847) (3,146,479) (838,020) (3,984,499)

Other Financing Sources: Transfers In 6,560,847 5,985,847 575,000 6,560,847

Excess of Revenues and Other Financing Sources Over (Under) Expenditures $ 2,839,368 (263,020) 2,576,348

Fund Balance - July 1 2,839,368

Fund Balance - June 30$ 2,839,368 $ 2,576,348 $ 2,576,348

-88- Schedule 33

Neighborhood Redevelopment Bond Fund - Series 2005 and 2006A Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual From Project Inception and For the Fiscal Year Ended June 30, 2019

Actual Project Prior Current Total Authorization Years Year To Date Revenues: Miscellaneous: Other Revenue $ $ $ $

Expenditures: Capital Improvements: Neighborhood Development

Excess of Revenues Over Expenditures$

Fund Balance - July 1

Fund Balance - June 30$ $ $

Reconciliation of Budgetary Basis to GAAP Basis: Excess of Revenues and Other Financing Sources Over Expenditures and Other Financing (Uses) $ Difference in Loan Treatment Required by Governmental Accounting Standards: Beginning Balance - July 1 242,344 Current Year Activity Fund Balance - June 30 $ 242,344

-89- Schedule 34

Library Facilities Bond Fund - Series 2008 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual From Project Inception and For the Fiscal Year Ended June 30, 2019

Actual Project Prior Current Total Authorization Years Year To Date Expenditures: Capital Improvements: Culture and Recreation$ 8,612,000 $ 8,125,997 $ 130,399 $ 8,256,396

Other Financing Sources (Uses): Debt Issuances: General Obligation Bonds/BANs Issued 8,600,000 10,871,667 10,871,667 Premium on Debt 396,288 624,621 624,621 Payment to Escrow Agent for Refunding of Debt (2,500,000) (2,500,000) Transfers In 12,000 12,000 12,000 Transfers Out (396,288) (396,288) (396,288)

Total Other Financing Sources (Uses) 8,612,000 8,612,000 8,612,000

Excess of Other Financing Sources Over (Under) Expenditures and Other Financing (Uses)$ 486,003 (130,399) 355,604

Fund Balance - July 1 486,003

Fund Balance - June 30$ 486,003 $ 355,604 $ 355,604

-90- Schedule 35

Historical Museum Bond Fund - Series 2008 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual From Project Inception and For the Fiscal Year Ended June 30, 2019

Actual Project Prior Current Total Authorization Years Year To Date Revenues: Miscellaneous: Other Revenue $ $ 15,808 $ $ 15,808

Expenditures: Capital Improvements: Culture and Recreation 5,300,000 5,233,628 2,500 5,236,128

Excess of Revenues Under Expenditures (5,300,000) (5,217,820) (2,500) (5,220,320)

Other Financing Sources (Uses): Debt Issuances: General Obligation Bonds Issued 5,300,000 5,300,000 5,300,000 Premium on Debt 437,568 437,568 437,568 Transfers Out (437,568) (437,568) (437,568)

Total Other Financing Sources (Uses) 5,300,000 5,300,000 5,300,000

Excess of Revenues and Other Financing Sources Over (Under) Expenditures and Other Financing (Uses)$ 82,180 (2,500) 79,680

Fund Balance - July 1 82,180

Fund Balance - June 30$ 82,180 $ 79,680 $ 79,680

-91- Schedule 36

Parks and Recreation Bond Fund - Series 2008 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual From Project Inception and For the Fiscal Year Ended June 30, 2019

Actual Project Prior Current Total Authorization Years Year To Date Revenues: Miscellaneous: Donations and Private Contributions$ 275,000 $ 275,000 $ $ 275,000

Expenditures: Capital Improvements: Culture and Recreation 4,738,428 4,149,197 (21,550) 4,127,647

Other Financing Sources (Uses): Debt Issuances: General Obligation Bonds/BANs Issued 5,000,000 5,000,000 5,000,000 Transfers Out (536,572) (113,644) (113,644)

Total Other Financing Sources (Uses) 4,463,428 5,000,000 (113,644) 4,886,356

Excess of Revenues and Other Financing Sources Over (Under) Expenditures and Other Financing Uses$ 1,125,803 (92,094) 1,033,709

Fund Balance - July 1 1,125,803

Fund Balance - June 30$ 1,125,803 $ 1,033,709 $ 1,033,709

-92- Schedule 37

Economic Development Bond Fund - Series 2008 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual From Project Inception and For the Fiscal Year Ended June 30, 2019

Actual Project Prior Current Total Authorization Years Year To Date Expenditures: Capital Improvements: Economic Opportunity $ 9,000,000 $ 5,039,544 $ 571,867 $ 5,611,411

Other Financing Sources (Uses): Debt Issuances: General Obligation Bonds/BANs Issued 10,000,000 10,000,000 10,000,000 Premium on Debt 165,120 165,120 165,120 Transfers Out (1,165,120) (683,616) (683,616)

Total Other Financing Sources (Uses) 9,000,000 9,481,504 9,481,504

Excess of Other Financing Sources Over (Under) Expenditures and Other Financing (Uses)$ 4,441,960 (571,867) 3,870,093

Fund Balance - July 1 4,441,960

Fund Balance - June 30$ 4,441,960 $ 3,870,093 $ 3,870,093

Reconciliation of Budgetary Basis to GAAP Basis: Excess of Revenues and Other Financing Sources Over Expenditures and Other Financing (Uses) $ 3,870,093 Difference in Loan Treatment Required by Governmental Accounting Standards: Beginning Balance - July 1 600,000 Current Year Activity Fund Balance - June 30 $ 4,470,093

-93- Schedule 38

Fire Station Bond Fund - Series 2008 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual From Project Inception and For the Fiscal Year Ended June 30, 2019

Actual Project Prior Current Total Authorization Years Year To Date Revenues: Miscellaneous: Other Revenue$ 353,984 $ 353,984 $ 6,750 $ 360,734

Expenditures: Capital Improvements: Public Safety 24,451,451 21,010,264 2,625,989 23,636,253

Excess of Revenues Under Expenditures (24,097,467) (20,656,280) (2,619,239) (23,275,519)

Other Financing Sources (Uses): Debt Issuances: General Obligation Bonds/BANs Issued 24,500,000 25,545,107 25,545,107 Premium on Debt 676,992 825,408 825,408 Payment to Escrow Agent for Refunding of Debt (1,193,524) (1,193,524) Transfers Out (1,079,525) (1,079,524) (1,079,524)

Total Other Financing Sources (Uses) 24,097,467 24,097,467 24,097,467

Excess of Revenues and Other Financing Sources Over (Under) Expenditures and Other Financing (Uses)$ 3,441,187 (2,619,239) 821,948

Fund Balance - July 1 3,441,187

Fund Balance - June 30$ 3,441,187 $ 821,948 $ 821,948

-94- Schedule 39

War Memorial Stadium Bond Fund - Series 2008 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual From Project Inception and For the Fiscal Year Ended June 30, 2019

Actual Project Prior Current Total Authorization Years Year To Date Expenditures: Capital Improvements: Culture and Recreation$ 1,500,000 $ 194,539 $ 1,020 $ 195,559

Other Financing Sources (Uses): Debt Issuances: General Obligation Bonds Issued 1,500,000 1,500,000 1,500,000 Premium on Debt 124,770 124,770 124,770 Transfers Out (124,770) (124,770) (124,770)

Total Other Financing Sources (Uses) 1,500,000 1,500,000 1,500,000

Excess of Other Financing Sources Over (Under) Expenditures and Other Financing (Uses)$ 1,305,461 (1,020) 1,304,441

Fund Balance - July 1 1,305,461

Fund Balance - June 30$ 1,305,461 $ 1,304,441 $ 1,304,441

-95- Schedule 40

Street Improvements Bond Fund - Series 2010 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual From Project Inception and For the Fiscal Year Ended June 30, 2019

Actual Project Prior Current Total Authorization Years Year To Date Revenues: Miscellaneous: Construction Project Development $ $ 116,313 $ 4,800 $ 121,113 Rent - Real Estate 2,555 2,555 Sale of Real Estate 61,550 61,925 61,925

Total Revenues 61,550 180,793 4,800 185,593

Expenditures: Capital Improvements: Transportation 121,662,031 60,609,929 11,788,189 72,398,118

Excess of Revenues Under Expenditures (121,600,481) (60,429,136) (11,783,389) (72,212,525)

Other Financing Sources (Uses): Debt Issuances: General Obligation Bonds/BANs Issued 134,000,000 69,312,593 65,674,226 134,986,819 Premium on Debt 520,599 4,759,808 5,280,407 Payment to Escrow Agent for Refunding of Debt (5,700,000) (5,700,000) Transfers Out (12,399,519) (5,223,432) (1,019,022) (6,242,454)

Total Other Financing Sources (Uses) 121,600,481 58,909,760 69,415,012 128,324,772

Excess of Revenues and Other Financing Sources Over (Under) Expenditures and Other Financing (Uses)$ (1,519,376) 57,631,623 56,112,247

Fund Balance - July 1 (1,519,376)

Fund Balance - June 30$ (1,519,376) $ 56,112,247 $ 56,112,247

-96- Schedule 41

Parks and Recreation Bond Fund - Series 2010 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual From Project Inception and For the Fiscal Year Ended June 30, 2019

Actual Project Prior Current Total Authorization Years Year To Date Revenues: Miscellaneous: Donations and Private Contributions$ 190,000 $ 110,000 $ $ 110,000

Expenditures: Capital Improvements: Culture and Recreation 7,893,618 6,226,534 819,495 7,046,029

Excess of Revenues Under Expenditures (7,703,618) (6,116,534) (819,495) (6,936,029)

Other Financing Sources (Uses): Debt Issuances: General Obligation Bonds/BANs Issued 8,000,000 6,438,748 2,006,761 8,445,509 Premium on Debt 54,800 125,868 180,668 Payment to Escrow Agent for Refunding of Debt (600,000) (600,000) Transfers Out (296,382)

Total Other Financing Sources (Uses) 7,703,618 5,893,548 2,132,629 8,026,177

Excess of Revenues and Other Financing Sources Over (Under) Expenditures and Other Financing (Uses)$ (222,986) 1,313,134 1,090,148

Fund Balance - July 1 (222,986)

Fund Balance - June 30$ (222,986) $ 1,090,148 $ 1,090,148

-97- Schedule 42

Housing Bond Fund - Series 2010 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual From Project Inception and For the Fiscal Year Ended June 30, 2019

Actual Project Prior Current Total Authorization Years Year To Date Expenditures: Capital Improvements: Neighborhood Development$ 1,000,000 $ 510,451 $ 489,549 $ 1,000,000

Other Financing Sources: Debt Issuances: General Obligation Bonds/BANs Issued 1,000,000 1,000,000 1,000,000

Excess of Other Financing Sources Over (Under) Expenditures$ 489,549 (489,549)

Fund Balance - July 1 489,549

Fund Balance - June 30$ 489,549 $ $

-98- Schedule 43

Greensboro Science Center Bond Fund - Series 2010 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual From Project Inception and For the Fiscal Year Ended June 30, 2019

Actual Project Prior Current Total Authorization Years Year To Date Expenditures: Capital Improvements: Culture and Recreation$ 20,000,000 $ 13,025,181 $ 486,694 $ 13,511,875

Other Financing Sources (Uses): Debt Issuances: General Obligation Bonds/BANs Issued 20,000,000 17,182,331 6,535,859 23,718,190 Premium on Debt 417,850 480,889 898,739 Payment to Escrow Agent for Refunding of Debt (4,575,000) (4,575,000)

Total Other Financing Sources (Uses) 20,000,000 13,025,181 7,016,748 20,041,929

Excess of Other Financing Sources Over Expenditures and Other Financing (Uses)$ 6,530,054 6,530,054

Fund Balance - July 1

Fund Balance - June 30 $ $ 6,530,054 $ 6,530,054

-99- Schedule 44

Transportation Bond Fund - Series 2016 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual From Project Inception and For the Fiscal Year Ended June 30, 2019

Actual Project Prior Current Total Authorization Years Year To Date Expenditures: Capital Improvements: Transportation$ 26,754,402 $ 35,027 $ 11,109,070 $ 11,144,097

Other Financing Sources (Uses): Debt Issuances: General Obligation Bonds/BANs Issued 28,000,000 3,090,000 7,864,299 10,954,299 Premium on Debt 582,800 582,800 Transfers Out (1,245,598) (564,250) (564,250) Total Other Financing Sources (Uses) 26,754,402 3,090,000 7,882,849 10,972,849

Excess of Other Financing Sources Over (Under) Expenditures and Other Financing Uses$ 3,054,973 (3,226,221) (171,248)

Fund Balance - July 1 3,054,973

Fund Balance - June 30$ 3,054,973 $ (171,248) $ (171,248)

-100- Schedule 45

Parks & Recreation Bond Fund - Series 2016 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual From Project Inception and For the Fiscal Year Ended June 30, 2019

Actual Project Prior Current Total Authorization Years Year To Date Expenditures: Capital Improvements: Culture and Recreation$ 34,220,000 $ 2,426,412 $ 2,953,398 $ 5,379,810

Other Financing Sources (Uses): Debt Issuances: General Obligation Bonds/BANs Issued 34,500,000 5,425,000 5,254,750 10,679,750 Premium on Debt 383,130 383,130 Transfers Out (280,000) (10,007) (10,007) Total Other Financing Sources (Uses) 34,220,000 5,425,000 5,627,873 11,052,873

Excess of Other Financing Sources Over Expenditures and Other Financing Uses$ 2,998,588 2,674,475 5,673,063

Fund Balance - July 1 2,998,588

Fund Balance - June 30$ 2,998,588 $ 5,673,063 $ 5,673,063

-101- Schedule 46

Housing Bond Fund - Series 2016 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual From Project Inception and For the Fiscal Year Ended June 30, 2019

Actual Project Prior Current Total Authorization Years Year To Date Expenditures: Capital Improvements: Neighborhood Development$ 25,000,000 $ 99,451 $ 4,162,944 $ 4,262,395

Other Financing Sources: Debt Issuances: General Obligation Bonds/BANs Issued 25,000,000 4,625,000 5,775,000 10,400,000 Premium on Debt 2,232 2,232 Total Other Financing Sources 25,000,000 4,625,000 5,777,232 10,402,232

Excess of Other Financing Sources Over Expenditures$ 4,525,549 1,614,288 6,139,837

Fund Balance - July 1 4,525,549

Fund Balance - June 30$ 4,525,549 $ 6,139,837 $ 6,139,837

-102- Schedule 47

Community & Economic Development Bond Fund - Series 2016 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual From Project Inception and For the Fiscal Year Ended June 30, 2019

Actual Project Prior Current Total Authorization Years Year To Date Expenditures: Capital Improvements: Economic Opportunity$ 38,500,000 $ 722,716 $ 1,370,473 $ 2,093,189

Other Financing Sources: Debt Issuances: General Obligation Bonds/BANs Issued 38,500,000 1,430,000 5,340,100 6,770,100 Premium on Debt 395,209 395,209 Total Other Financing Sources 38,500,000 1,430,000 5,735,309 7,165,309

Excess of Other Financing Sources Over Expenditures$ 707,284 4,364,836 5,072,120

Fund Balance - July 1 707,284

Fund Balance - June 30$ 707,284 $ 5,072,120 $ 5,072,120

-103-

Schedule 48

Fire Station Bond Fund - Series 2019 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual From Project Inception and For the Fiscal Year Ended June 30, 2019

Actual Project Prior Current Total Authorization Years Year To Date Revenues: Miscellaneous: Other Revenue $ $ $ 485,808 $ 485,808

Expenditures: Capital Improvements: Public Safety 1,899,386

Excess of Revenues Over (Under) Expenditures (1,899,386) 485,808 485,808

Other Financing Sources: Debt Issuances: Limited Obligation Bonds Issued 1,899,386

Excess of Revenues and Other Financing Sources Over Expenditures $ 485,808 485,808

Fund Balance - July 1

Fund Balance - June 30 $ $ 485,808 $ 485,808

-104-

Perpetual Care Fund

Perpetual Care Fund

The purpose of this fund is to account for monies to be used in the maintenance of the City’s cemeteries. A contribution of one-fourth of all lot sales from the Cemetery Fund is the only funding source of this fund. Income earned from the investment of the assets of this fund is credited directly to the Cemetery Fund to partially defray the costs of cemetery operations under provisions of the City Code of Ordinances. No part of the principal may be expended from this fund, which classifies this fund as a Permanent Fund. No expenses were recorded in this fund during the current year.

This fund can be found on the Combining Balance Sheet, page 45 and the Combining Statement of Revenues, Expenditures and Changes in Fund Balances, page 54.

-105-

Enterprise Funds

Water Resources Fund

The Water Resources Fund provides services to over 104,500 customers and is designed to be self-supporting. Revenues are sufficient to meet the operating expenses and to provide funds for water and sewer line construction. These revenues are also used to provide for principal and interest on all water and sewer debt. Continued expansion of the water and sewer system has been necessary to provide for the increase in residential, commercial and industrial requirements. Combined Enterprise System Revenue bonds outstanding are recorded in this fund.

Stormwater Management Fund

This fund was established to account for the federally mandated program of stormwater system management, which is supported by a citywide stormwater fee.

Coliseum Fund

This fund administers monies necessary for the operation of the complex responsible for bringing top artists in the entertainment, educational and sports fields to Greensboro. The Coliseum Complex consists of an arena with a seating capacity of 22,000, the 300-seat Odeon Theatre, the 167,000-square foot Special Events Center that includes three exhibition halls, a 4,500-seat mini-arena and eight meeting rooms, the 38,000 square-foot Swarm Fieldhouse with a seating capacity of 2,200, the ACC Hall of Champions, the Terrace Banquet Facility, the White Oak Amphitheatre with a seating capacity of over 7,600, and the state-of-the-art Greensboro Aquatic Center with a seating capacity of 2,500. A 3,000-seat Performing Arts Center is under construction in downtown Greensboro with a projected opening of March, 2020. This venue replaces the Auditorium at the Coliseum Complex which was demolished in 2015.

Solid Waste Management Fund

This fund accounts for waste disposal and recycling operations of the City, as well as solid waste landfill improvements. Special Obligation Bonds outstanding are recorded in this fund.

Parking Facilities Fund

This fund accounts for revenues and expenses related to City-owned parking garages, lots and curbside parking spaces. The City currently operates four parking garages providing over 2,800 parking spaces in the Center City area.

Greensboro Transit Advisory Commission Fund

The GreensboroTransit Advisory Commission Fund is responsible for operating the mass transit system in the municipal area. These functions include fixed route operations as well as specialized ADA paratransit services and HEAT, which provides transportation for students attending local colleges and universities. Transit taxes are levied under the taxing authority of the City, as part of the City’s total tax levy.

-106-

Enterprise Funds

Schedule of Revenues, Expenditures and Changes in Fund Balance

Budget and Actual (Non-GAAP)

The following Schedules present the results of operation for all Enterprise Funds on the modified accrual basis for comparison to the legally adopted budget for each fund. A reconciliation of the modified accrual basis to the full accrual basis (per generally accepted accounting principles) follows each Schedule.

-107- Schedule 49 Page 1 of 2 Water Resources Fund Schedule of Revenues and Expenses Budget and Actual (Non-GAAP) For the Fiscal Year Ended June 30, 2019

Variance Final Positive Budget Actual (Negative) Operating Revenues: Charges for Current Services$ 117,542,628 $ 116,906,359 $ (636,269) Other Operating Revenues 1,698,990 2,215,276 516,286 Other Operating Revenues - Capital Reserve Fund 1,236,070 1,236,070 Total Operating Revenues 119,241,618 120,357,705 1,116,087

Operating Expenses: Personal Services 17,088,549 16,913,522 175,027 Fringe Benefits 7,327,222 7,033,414 293,808 Maintenance and Repairs 8,659,792 7,015,833 1,643,959 Operations 43,000,695 34,953,285 8,047,410 Capital Outlay 2,614,992 1,108,680 1,506,312 Total Operating Expenses 78,691,250 67,024,734 11,666,516

Operating Income 40,550,368 53,332,971 12,782,603

Nonoperating Revenues: Investment Income 1,248,010 1,035,263 (212,747) Investment Income - Capital Reserve Fund 1,131,972 1,131,972 Net Increase (Decrease) in the Fair Value of Investments 1,068,861 1,068,861 Total Investment Income 1,248,010 3,236,096 1,988,086

Refunds and Recoveries 200,000 412,635 212,635 Miscellaneous Nonoperating Revenue 40,000 9,248 (30,752) Total Nonoperating Revenues 1,488,010 3,657,979 2,169,969

Nonoperating Expenses: Principal Maturities 16,135,000 16,135,000 Interest Expense 12,528,039 9,925,948 2,602,091 Miscellaneous Nonoperating Expense 898,000 370,103 527,897 Total Nonoperating Expenses 29,561,039 26,431,051 3,129,988

Excess of Revenues Over Expenses Before Contributions and Other Financing Uses 12,477,339 30,559,899 18,082,560

Capital Contributions 762,218 762,218

Other Financing Uses: Transfers Out - Water Resources Extension Fund Project (823,239) (823,239) Transfers Out - Capital Improvement Fund (32,234,605) (32,234,605) Total Other Financing Uses (33,057,844) (33,057,844)

Excess of Revenues and Contributions Under Expenses and Other Financing Uses (20,580,505) (1,735,727) 18,844,778

Appropriated Fund Balance 20,580,505 (20,580,505)

Excess of Revenues and Contributions Under Expenses and Other Financing Uses $ $ (1,735,727) $ (1,735,727)

-108- Schedule 49 Page 2 of 2 Water Resources Fund Schedule of Revenues and Expenses Budget and Actual (Non-GAAP) For the Fiscal Year Ended June 30, 2019

Reconciliation of Modified Accrual Basis to Full Accrual Basis: Total Revenues $ 124,015,684 Total Expenses 93,455,785

Excess of Revenues Over Expenses Before Contributions and Other Financing Sources (Uses) 30,559,899

Adjustment to Full Accrual Basis: Depreciation (29,080,866) Capital Outlay 1,108,681 Principal Maturities 16,135,000 Gain (Loss) on Disposal of Capital Assets (59,370) Inventory Gain (Loss) 10,935 Deferred Outflows of Resources for Contributions Made to Pension Plan in Current Fiscal Year 1,228,705 Pension Expense (1,484,773) OPEB Expense (831,680) Contributions Made to OPEB Plan in Current Fiscal Year 638,777 Amortization of Underwriters' and Other Expense (1,085,579) Amortization of Bond Premiums 4,078,843 Compensated Absences (12,084) Change in Pollution Remediation Liability (2,619,922) Contribution to Governmental Agency 919,643 Capital Project Fund Revenues and Expenses (1,080,138)

Income Before Contributions and Transfers$ 18,426,071

-109- Schedule 50

Water Resources Bond Fund - Series 2014 Schedule of Revenues and Expenses - Budget and Actual (Non-GAAP) From Project Inception and For the Year Ended June 30, 2019

Actual Project Prior Current Total Authorization Years Year To Date Expenses: Capital Improvements: Lake Brandt Pump Station Upgrade$ 335,744 $ 335,744 $ $ 335,744 Mitchell - Flocculator Basin Rehab 3,569,132 3,568,558 3,568,558 Water Booster Station 3,503,700 3,495,647 3,495,647 Townsend - Filter Basin System Upgrade 21,581,330 15,112,036 5,574,828 20,686,864 TZO - Incinerator 1/56 MGD Upgrade 71,048,106 68,465,767 1,664,009 70,129,776 Total Capital Improvements 100,038,012 90,977,752 7,238,837 98,216,589

Nonoperating Expenses: Bond Issue Expense 391,993 457,076 457,076 Total Expenses 100,430,005 91,434,828 7,238,837 98,673,665

Nonoperating Revenues: Investment Income 184,246 160,794 345,040

Excess of Revenues Under Expenses Before Other Financing Sources (100,430,005) (91,250,582) (7,078,043) (98,328,625)

Other Financing Sources: Debt Issuances: Revenue Bonds/BANs Issued 99,930,005 97,975,440 97,975,440 Premium - Revenue Bonds 500,000 2,237,682 2,237,682 Total Other Financing Sources 100,430,005 100,213,122 100,213,122

Excess of Revenues and Other Financing Sources Over (Under) Expenses $ $ 8,962,540 $ (7,078,043) $ 1,884,497

-110- Schedule 51

Water Resources Bond Fund - Series 2018 Schedule of Revenues and Expenses - Budget and Actual (Non-GAAP) From Project Inception and For the Year Ended June 30, 2019

Actual Project Prior Current Total Authorization Years Year To Date Expenses: Capital Improvements: Mitchell Structural Durability Improvements$ 6,303,077 $ 3,316,882 $ 2,457,255 $ 5,774,137 TZO Biological Nutrient Removal 66,774,352 7,984,813 29,057,706 37,042,519 Young's Mill Road Outfall 15,122,110 5,633,615 5,633,615 Total Capital Improvements 88,199,539 11,301,695 37,148,576 48,450,271

Nonoperating Expenses: Bond Issue Expense 100,000 82,027 80 82,107 Total Expenses 88,299,539 11,383,722 37,148,656 48,532,378

Excess of Revenues Under Expenses Before Other Financing Sources (88,299,539) (11,383,722) (37,148,656) (48,532,378)

Other Financing Sources: Debt Issuances: Revenue Bonds/BANs Issued 88,299,539 8,552,671 28,619,118 37,171,789 Total Other Financing Sources 88,299,539 8,552,671 28,619,118 37,171,789

Excess of Revenues and Other Financing Sources Under Expenses $ $ (2,831,051) $ (8,529,538) $ (11,360,589)

-111- Schedule 52

Guilford County Construction Project Fund Schedule of Revenues and Expenses - Budget and Actual (Non-GAAP) From Project Inception and For the Year Ended June 30, 2019

Actual Project Prior Current Total Authorization Years Year To Date Revenues: Guilford County Construction: Reimbursements$ 10,435,434 $ 10,353,461 $ $ 10,353,461

Expenses: Capital Improvements: Lynwood Lakes 11,048,089 10,934,748 10,934,748 GTCC Water and Sewer Project 480,831 Koury Projects 349,648 Total Expenses 11,878,568 10,934,748 10,934,748

Other Operating Revenues: Sales and Use Tax Refund 83,062 83,062

Excess of Revenues Under Expenses Before Other Financing Sources (Uses) (1,443,134) (498,225) (498,225)

Other Financing Sources (Uses): Transfers In 3,674,247 3,192,747 3,192,747 Transfers Out (2,231,113) (2,231,113) (2,231,113) Total Other Financing Sources (Uses) 1,443,134 961,634 961,634

Excess of Revenues and Other Financing Sources Over Expenses and Other Financing Uses$ $ 463,409 $ $ 463,409

-112- Schedule 53

Water Resources Capital Improvement Fund Schedule of Revenues and Expenses - Budget and Actual (Non-GAAP) From Project Inception and For the Year Ended June 30, 2019

Actual Project Prior Current Total Authorization Years Year To Date Expenses: Capital Improvements: Water Line and Tank Construction$ 81,232,764 $ 46,863,541 $ 13,080,226 $ 59,943,768 Sewer Line Construction 99,845,192 61,221,981 15,320,632 76,542,613 Soabar Renovation 5,471,598 644,556 644,556 Total Capital Improvements 186,549,553 108,085,522 29,045,415 137,130,937

Other Operating Revenues: Cost Sharing Reimbursements 150,000 150,000 Sales and Use Tax Refund 2,045,190 2,045,190 Total Other Operating Revenues 2,195,190 2,195,190

Excess of Revenues Under Expenses Before Other Financing Sources (186,549,553) (105,890,332) (29,045,415) (134,935,747)

Other Financing Sources: Transfers from Water Resources: Water Resources Operating Fund 185,300,998 153,120,052 32,234,606 185,354,658 Water Resources Capital Improvement Fund 1,248,555 1,248,555 1,248,555 Total Other Financing Sources 186,549,553 154,368,607 32,234,606 186,603,213

Excess of Revenues and Other Financing Sources Over Expenses $ $ 48,478,274 $ 3,189,192 $ 51,667,466

- 113-

Schedule 54

Water Resources Extension Project Fund Schedule of Revenues and Expenses - Budget and Actual (Non-GAAP) From Project Inception and For the Year Ended June 30, 2019

Actual Project Prior Current Total Authorization Years Year To Date Revenues: Guilford County Construction: Reimbursements$ 17,835,444 $ 19,020,033 $ $ 19,020,033

Expenses: Capital Improvements: Stewart Mill Lift Station and Outfall 12,650,339 5,633,740 6,551,355 12,185,095 Rock Creek Lift Station and Main 2,783,075 1,677,794 (115,519) 1,562,275 Youngs Mill Lift Station and Outfall 1,970,198 1,472,895 93,274 1,566,169 Greensboro-Randolph Megasite 4,482,000 2,327,436 852,061 3,179,497 Water and Sewer Improvements 853,354 Total Expenses 22,738,966 11,111,865 7,381,171 18,493,036

Nonoperating Revenues: Investment Income 640,945 284,430 925,375

Excess of Revenues Over (Under) Expenses Before Other Financing Sources (4,903,522) 8,549,113 (7,096,741) 1,452,372

Other Financing Sources: Transfers In 8,096,269 7,273,030 823,239 8,096,269 Transfers Out (3,192,747) (3,192,747) (3,192,747) Total Other Financing Sources (Uses) 4,903,522 4,080,283 823,239 4,903,522

Excess of Revenues and Other Financing Sources Over (Under) Expenses$ $ 12,629,396 $ (6,273,502) $ 6,355,894

-114- Schedule 55 Page 1 of 2 Stormwater Management Fund Schedule of Revenues and Expenses - Budget and Actual (Non-GAAP) For the Fiscal Year Ended June 30, 2019

Variance Final Positive Budget Actual (Negative) Operating Revenues: Charges for Current Services$ 9,679,141 $ 9,896,486 $ 217,345 Other Operating Revenues 226,900 202,930 (23,970) Total Operating Revenues 9,906,041 10,099,416 193,375

Operating Expenses: Personal Services 3,330,807 3,112,291 218,516 Fringe Benefits 1,641,160 1,505,137 136,023 Maintenance and Operations 4,181,653 2,968,694 1,212,959 Capital Outlay 45,576 8,906 36,670 Total Operating Expenses 9,199,196 7,595,028 1,604,168

Operating Income 706,845 2,504,388 1,797,543

Nonoperating Revenues: Investment Income 145,383 117,555 (27,828) Net Increase (Decrease) in the Fair Value of Investments 76,833 76,833 Total Investment Income 145,383 194,388 49,005

Excess of Revenues Over Expenses Before Other Financing Uses 852,228 2,698,776 1,846,548

Other Financing Uses: Transfers Out - State and Federal Grants Fund (7,500) 7,500 Transfers Out - Capital Projects Fund (4,844,920) (4,844,920) Total Other Financing Uses (4,852,420) (4,844,920) 7,500

Excess of Revenues Under Expenses and Other Financing Uses (4,000,192) (2,146,144) 1,854,048

Appropriated Fund Balance 4,000,192 (4,000,192)

Excess of Revenues Under Expenses and Other Financing Uses $ $ (2,146,144) $ (2,146,144)

-115- Schedule 55 Page 2 of 2 Stormwater Management Fund Schedule of Revenues and Expenses Budget and Actual (Non-GAAP) For the Fiscal Year Ended June 30, 2019

Reconciliation of Modified Accrual Basis to Full Accrual Basis: Total Revenues $ 10,293,804 Total Expenses 7,595,028

Excess of Revenues Over Expenses Before Other Financing Uses 2,698,776

Adjustment to Full Accrual Basis: Depreciation (1,987,499) Capital Outlay 8,906 Deferred Outflows of Resources for Contributions Made to Pension Plan in Current Year 232,777 Pension Expense (281,278) OPEB Expense (195,222) Contributions Made to OPEB Plan in Current Fiscal Year 149,941 Compensated Absences (12,113) Gain (Loss) on Disposal of Capital Asset 1,000 Capital Project Fund Revenues and Expenses 264,683

Income Before Transfers $ 879,971

-116-

Schedule 56

Stormwater Capital Improvement Fund Schedule of Revenues and Expenses - Budget and Actual (Non-GAAP) From Project Inception and For the Year Ended June 30, 2019

Actual Project Prior Current Total Authorization Years Year To Date Revenues: Miscellaneous: Other Revenue$ 104,971 $ 104,971 $ $ 104,971

Expenses: Capital Improvements: Water Resources: Stormwater Improvements 20,464,212 7,365,710 838,791 8,204,501

Nonoperating Revenues: Investment Income 1,457,306 298,571 1,755,877

Excess of Revenues Under Expenses Before Other Financing Sources (Uses) (20,359,241) (5,803,433) (540,220) (6,343,653)

Other Financing Sources (Uses): Transfers In 21,450,468 16,605,578 4,844,920 21,450,498 Transfers Out (1,091,227) (1,091,227) (1,091,227) Total Other Financing Sources (Uses) 20,359,241 15,514,351 4,844,920 20,359,271

Excess of Revenues and Other Financing Sources Over Expenses and Other Financing (Uses) $ $ 9,710,918 $ 4,304,700 $ 14,015,618

-117- Schedule 57 Page 1 of 2 Coliseum Fund Schedule of Revenues and Expenses - Budget and Actual (Non-GAAP) For the Fiscal Year Ended June 30, 2019

Variance Final Positive Budget Actual (Negative) Operating Revenues: Charges for Current Services$ 32,349,738 $ 29,062,572 $ (3,287,166) Other Operating Revenues 936,350 911,017 (25,333) Total Operating Revenues 33,286,088 29,973,589 (3,312,499)

Operating Expenses: Personal Services 6,337,587 6,402,235 (64,648) Fringe Benefits 1,984,627 1,857,573 127,054 Maintenance and Operations 26,872,890 24,480,238 2,392,652 Capital Outlay 907,200 393,317 513,883 Total Operating Expenses 36,102,304 33,133,363 2,968,941

Operating Loss (2,816,216) (3,159,774) (343,558)

Nonoperating Revenues: Investment Income 50,000 221,408 171,408 Net Increase (Decrease) in the Fair Value of Investments 76,094 76,094 Total Investment Income 50,000 297,502 247,502

Donations and Private Contributions 11,510 11,510 Total Nonoperating Revenues 50,000 309,012 259,012

Nonoperating Expenses: Principal Maturities 262,257 347,308 (85,051) Interest Expense 62,358 17,209 45,149 Miscellaneous Nonoperating Expense 1,700 1,700 Total Nonoperating Expenses 326,315 364,517 (38,202)

Excess of Revenues Under Expenses Before Other Financing Sources (3,092,531) (3,215,279) (122,748)

Other Financing Sources: Transfers In 3,092,531 3,092,531

Excess of Revenues and Other Financing Sources Under Expenses (122,748) (122,748)

Appropriated Fund Balance

Excess of Revenues and Other Financing Sources Under Expenses $ $ (122,748) $ (122,748)

-118- Schedule 57 Page 2 of 2 Coliseum Fund Schedule of Revenues and Expenses - Budget and Actual (Non-GAAP) For the Fiscal Year Ended June 30, 2019

Reconciliation of Modified Accrual Basis to Full Accrual Basis: Total Revenues $ 30,282,601 Total Expenses 33,497,880

Excess of Revenues Under Expenses Before Other Financing Sources (3,215,279)

Adjustment to Full Accrual Basis: Depreciation (3,234,560) Capital Outlay 393,317 Principal Maturities 347,308 Inventory Gain (Loss) (3,621) Gain (Loss) on Disposal of Capital Assets Deferred Outflows of Resources for Contributions Made to Pension Plan in Current Year 472,639 Pension Expense (571,113) Contributions Made to OPEB Plan in Current Fiscal Year 162,789 OPEB Expense (211,949) Compensated Absences (28,980) Capital Project Funds Net Revenue and Expenses 9,611,919

Income Before Transfers $ 3,722,470

-119- Schedule 58

Performing Arts Center Capital Project Fund Schedule of Revenues and Expenses - Budget and Actual (Non-GAAP) From Project Inception and For the Year Ended June 30, 2019

Actual Project Prior Current Total Authorization Years Year To Date Operating Revenues: Other Operating Revenue: Parking Revenue$ 93,180 $ 93,180 $ $ 93,180 Rent - Real Estate 619,275 531,537 531,537 Reimbursements - Contract Agreements 85,000 85,000 85,000 Sales and Use Tax Refund 1,000,000 55,230 499,956 555,186 Sale of Materials 2,510 2,510 2,510 Miscellaneous Receivable Revenue 1,165,000 317,937 351,176 669,113 Total Operating Revenues 2,964,965 1,085,394 851,132 1,936,526

Operating Expenses: Project Expenses: Maintenance and Operations 415,767 516,065 41,590 557,655 Performing Arts Center Project 85,048,414 28,752,595 32,962,202 61,714,796 Total Expenses 85,464,181 29,268,660 33,003,792 62,272,451

Operating Loss (82,499,216) (28,183,266) (32,152,660) (60,335,925)

Nonoperating Revenues: Investment Income 159,831 256,020 415,851 Donations and Private Contributions 44,026,000 5,333,112 8,636,651 13,969,763 Total Nonoperating Revenues 44,026,000 5,492,943 8,892,671 14,385,614

Nonoperating Expenses: Interest Expense 4,298,567 408,433 1,665,356 2,073,789 Bond Issue Expense 678,217 677,767 2,500 680,267 Total Nonoperating Expenses 4,976,784 1,086,200 1,667,856 2,754,056

Excess of Revenues Under Expenses Before Other Financing Sources (Uses) (43,450,000) (23,776,523) (24,927,845) (48,704,367)

Other Financing Sources (Uses): Master Installment Financing Agreement Issued 11,500,000 11,500,000 11,500,000 Installment Financing Agreement Issued 13,402,640 13,402,640 13,402,640 Limited Obligation Bonds Issues 43,450,000 43,450,000 43,450,000 Payment to Escrow Agent for Refunding of Debt (24,902,640) (24,902,640) (24,902,640) Total Other Financing Sources (Uses) 43,450,000 43,450,000 43,450,000

Excess of Revenues and Other Financing Sources Over (Under) Expenses and Other Financing (Uses)$ $ 19,673,477 $ (24,927,845) $ (5,254,367)

-120- Schedule 59

Coliseum Capital Improvement Bond Fund Schedule of Revenues and Expenses - Budget and Actual (Non-GAAP) From Project Inception and For the Year Ended June 30, 2019

Actual Project Prior Current Total Authorization Years Year To Date Revenues: Sales and Use Tax Refund$ 410,000 $ 212,859 $ 43,535 $ 256,394

Expenses: Capital Improvements: Development League Offices 908,197 908,197 908,197 Parking Improvements 3,997,771 2,497,440 2,497,440 Roof Replacement 4,767,120 3,783,577 3,783,577 Aquatic Center Pool Addition 8,732,564 324,082 7,723,431 8,047,513 Other Facility Improvements 4,503,650 588,398 741,667 1,330,065 Fieldhouse 5,941,111 5,938,235 5,938,235 Bond Issue Expense 1,034,587 100,596 (100,596) Total Expenses 29,885,000 14,140,525 8,364,502 22,505,027

Nonoperating Revenues: Investment Income 200,000 137,986 137,986 Donations and Private Contributions 1,000,000 1,000,000 1,000,000 Total Nonoperating Revenues 1,200,000 1,137,986 1,137,986

Excess of Revenues Under Expenses Before Other Financing Sources (28,275,000) (13,927,666) (7,182,981) (21,110,647)

Other Financing Sources: Transfer from Hotel/Motel Occupancy Tax Fund 28,275,000 13,684,016 13,858,125 27,542,141 Total Other Financing Sources 28,275,000 13,684,016 13,858,125 27,542,141

Excess of Revenues and Other Financing Sources Over (Under) Expenses$ $ (243,650) $ 6,675,144 $ 6,431,494

-121-

Schedule 60

Coliseum Capital Improvement Fund Schedule of Revenues and Expenses - Budget and Actual (Non-GAAP) From Project Inception and For the Year Ended June 30, 2019

Actual Project Prior Current Total Authorization Years Year To Date Revenues: Sales and Use Tax Refund $ $ 2,743 $ 42,452 $ 45,195

Expenses: Capital Improvements: Canada Dry Building 1,950,661 2,242,590 2,242,590 Coliseum Concession Improvements 2,225,000 362,719 528,135 890,854 Total Expenses 4,175,661 362,719 2,770,725 3,133,444

Operating Loss (4,175,661) (359,976) (2,728,273) (3,088,249)

Nonoperating Revenues: Donations and Private Contributions 4,175,661 3,222,978 202,683 3,425,661 Investment Income 19,431 72,238 91,669 Total Nonoperating Revenue 4,175,661 3,242,409 274,921 3,517,330

Excess of Revenues Over (Under) Expenses $ $ 2,882,433 $ (2,453,352) $ 429,081

-122- Schedule 61 Page 1 of 2 Solid Waste Management Fund Schedule of Revenues and Expenses - Budget and Actual (Non-GAAP) For the Fiscal Year Ended June 30, 2019

Variance Final Positive Budget Actual (Negative) Operating Revenues: Charges for Current Services$ 11,865,000 $ 12,618,701 $ 753,701 Other Operating Revenues 300,000 301,968 1,968 Total Operating Revenues 12,165,000 12,920,669 755,669

Operating Expenses: Personal Services 1,671,427 1,744,020 (72,593) Fringe Benefits 760,923 733,436 27,487 Maintenance and Operations 16,558,007 10,234,192 6,323,815 Claims and Expenses 31,627 30,471 1,156 Capital Outlay 118,332 114,302 4,030 Total Operating Expenses 19,140,316 12,856,421 6,283,895

Operating Income (Loss) (6,975,316) 64,248 7,039,564

Nonoperating Revenues: Investment Income 90,473 171,445 80,972 Investment Income - Capital Reserve Fund 52,465 52,465 Net Increase (Decrease) in the Fair Value of Investments 108,707 108,707 Total Investment Income 90,473 332,617 242,144

Miscellaneous Nonoperating Revenue 73,148 73,148 Total Nonoperating Revenues 90,473 405,765 315,292

Nonoperating Expenses: Principal Maturities 750,000 750,000 Interest Expense 76,750 73,625 3,125 Miscellaneous Nonoperating Expense 3,000 2,475 525 Total Nonoperating Expenses 829,750 826,100 3,650

Excess of Revenues Under Expenses Before Other Financing Sources (7,714,593) (356,087) 7,358,506

Other Financing Sources: Transfers In 1,830,537 1,830,537

Excess of Revenues and Other Financing Sources Over (Under) Expenses (5,884,056) 1,474,450 7,358,506

Appropriated Fund Balance 5,884,056 (5,884,056)

Excess of Revenues and Other Financing Sources Over Expenses $ $ 1,474,450 $ 1,474,450

-123- Schedule 61 Page 2 of 2 Solid Waste Management Fund Schedule of Revenues and Expenses - Budget and Actual (Non-GAAP) For the Fiscal Year Ended June 30, 2019

Reconciliation of Modified Accrual Basis to Full Accrual Basis: Total Revenues $ 13,326,434 Total Expenses 13,682,521

Excess of Revenues Under Expenses Before (356,087) Other Financing Sources

Adjustment to Full Accrual Basis: Depreciation (433,564) Capital Outlay 114,302 Principal Maturities 750,000 Inventory Gain (Loss) (1,645) Deferred Outflows of Resources for Contributions Made to Pension Plan in Current Fiscal Year 130,822 Pension Expense (158,065) OPEB Expense (85,400) Contributions Made to OPEB Plan in Current Fiscal Year 65,593 Compensated Absences 10,316 Increase in Pollution Remediation Liability (35,199) Estimated Landfill Closure / Postclosure expense (612,625) Capital Project Fund Net Revenues and Expenses (47,961)

Loss Before Transfers $ (659,513)

-124-

Schedule 62

Solid Waste Capital Improvement Fund Schedule of Revenues and Expenses - Budget and Actual (Non-GAAP) From Project Inception and For the Year Ended June 30, 2019

Actual Project Prior Current Total Authorization Years Year To Date Expenses: Capital Improvements: Groundwater Remediation$ 516,865 $ 241,970 $ 10,159 $ 252,129 Landfill Closure - Phase III 534,276 62,666 62,666 Total Expenses 1,051,141 241,970 72,825 314,795

Nonoperating Revenues: Investment Income 181,740 24,575 206,315

Excess of Revenues Under Expenses Before Other Financing Sources (1,051,141) (60,230) (48,250) (108,480)

Other Financing Sources: Transfers In 1,051,141 1,051,145 1,051,145

Excess of Revenues and Other Financing Sources Over (Under) Expenses $ $ 990,915 $ (48,250) $ 942,665

-125- Schedule 63 Page 1 of 2 Greensboro Transit Advisory Commission Schedule of Revenues and Expenses - Budget and Actual (Non-GAAP) For the Fiscal Year Ended June 30, 2019

Variance Positive Budget Actual (Negative) Operating Revenues: Charges for Current Services$ 2,269,000 $ 2,045,903 $ (223,097) Other Operating Revenues 917,633 993,454 75,821 Total Operating Revenues 3,186,633 3,039,357 (147,276)

Operating Expenses: Personal Services 712,047 597,629 114,418 Fringe Benefits 261,757 234,358 27,399 Maintenance and Operations 23,510,611 22,571,765 938,846 Capital Outlay 5,000 5,000 Total Operating Expenses 24,489,415 23,408,752 1,080,663

Operating Loss (21,302,782) (20,369,395) 933,387

Nonoperating Revenues (Expenses): Investment Income 856,501 1,017,338 160,837 Property Tax Collections 9,725,000 9,701,626 (23,374) Motor Vehicle Tax 1,200,000 1,351,187 151,187 State and Federal Grants 6,161,441 4,419,941 (1,741,500) Principal - Notes and Mortgages 693,499 636,530 (56,969) Miscellaneous Nonoperating Revenue 8,889 8,889 Total Nonoperating Revenues (Expenses) 18,636,441 17,135,511 (1,500,930)

Excess of Revenues Under Expenses Before Other Financing Uses (2,666,341) (3,233,884) (567,543)

Other Financing Uses: Transfers Out (101,346) (98,872) 2,474

Excess of Revenues Under Expenses and Other Financing Uses (2,767,687) (3,332,756) (565,069)

Appropriated Fund Balance 2,767,687 (2,767,687)

Excess of Revenues Under Expenses and Other Financing Uses $ $ (3,332,756) $ (3,332,756)

-126- Schedule 63 Page 2 of 2 Greensboro Transit Advisory Commission Schedule of Revenues and Expenses - Budget and Actual (Non-GAAP) For the Fiscal Year Ended June 30, 2019

Reconciliation of Modified Accrual Basis to Full Accrual Basis: Total Revenues $ 20,174,868 Total Expenses 23,408,752

Excess of Revenues Under Expenses Before Other Financing Uses (3,233,884)

Adjustment to Full Accrual Basis: Depreciation (2,311,091) Capital Outlay 5,000 Compensated Absences (5,421) Inventory Gain (Loss) (203,850) Principal - Notes and Mortgages (636,530) Gain (Loss) on Disposal of Capital Assets (6,039) Deferred Outflows of Resources for Contributions Made to Pension Plan in Current Fiscal Year 38,840 Pension Expense (46,892) OPEB Expense (29,716) Contributions Made to OPEB Plan in Current Fiscal Year 22,824 Grant Project Fund Net Revenues and Expenses 7,746,948

Income Before Transfers $ 1,340,189

-127-

Schedule 64

Greensboro Transit Advisory Commission Grant Fund Schedule of Revenues and Expenses - Budget and Actual (Non-GAAP) From Project Inception and For the Year Ended June 30, 2019

Actual Project Prior Current Total Authorization Years Year To Date Revenues: Federal Grants$ 13,493,381 $ 2,371,839 $ 8,250,653 $ 10,622,492 State Grants 1,237,097 303,494 825,333 1,128,827 Local Grants/ In Kind Services 330,280 179,955 92,257 272,212 Investment Income 7,437 (8,492) (1,055) Sale of Real Estate 1,424,984 1,494,012 1,494,012 Donations and Contributions 450,000 450,000 450,000 Other Revenue 57 114 171 Total Revenues 16,935,742 4,356,794 9,609,865 13,966,659

Expenses: Capital Improvements: CMAQ Replacement Buses 9,337,150 1,027,469 7,217,854 8,245,323 NCDOT Advanced Technology Grant 204,984 185,679 185,679 Depot Solar Panel Project 222,969 176,500 176,500 Section 5307 / 5309 /5339 Capital Program 6,351,776 1,300,398 3,163,979 4,464,377 NCDOT Rail Division Grant 500,000 257,096 142,019 399,115 Enhanced Mobility 1,334,723 651,877 335,623 987,500 Duke Energy Charging Stations 450,000 450,000 450,000 Routine Security 108,054 108,054 108,054 Apprenticeship Program 37,498 28,313 28,313 Total Expenses 18,547,154 3,373,207 11,671,654 15,044,861

Excess of Revenues Over (Under) Expenses Before Other Financing Sources (1,611,412) 983,587 (2,061,789) (1,078,202)

Other Financing Sources: Transfers In - Transit System Operating Fund 247,908 243,940 794 244,734 Transfers In - Public Transportation Bond Fund - Series 2003 100,000 100,000 100,000 Transfers In - Transportation Bond Fund - Series 2016 1,263,504 564,250 564,250 Total Other Financing Sources 1,611,412 343,940 565,044 908,984

Excess of Revenues and Other Financing Sources Over (Under) Expenses $ $ 1,327,527 $ (1,496,745) $ (169,218)

-128- Schedule 65 Page 1 of 2 Parking Facilities Fund Schedule of Revenues and Expenses - Budget and Actual (Non-GAAP) For the Fiscal Year Ended June 30, 2019

Variance Final Positive Budget Actual (Negative) Operating Revenues: Charges for Current Services$ 2,889,768 $ 3,237,112 $ 347,344 Other Operating Revenues 20,000 30,225 10,225 Total Operating Revenues 2,909,768 3,267,337 357,569

Operating Expenses: Personal Services 600,558 642,297 (41,739) Fringe Benefits 258,227 247,518 10,709 Maintenance and Operations 2,042,192 1,176,660 865,532 Claims ad Expenses 64,243 62,071 2,172 Capital Outlay 22,601 22,601 Total Operating Expenses 2,987,821 2,128,546 859,275

Operating Income (Loss) (78,053) 1,138,791 1,216,844

Nonoperating Revenues: Investment Income 15,000 86,342 71,342 Investment Income - Capital Reserve 40 40 Net Increase (Decrease) in the Fair Value of Investments 20,412 20,412 Total Investment Income 15,000 106,794 91,794

Nonoperating Expenses: Principal Maturities 231,768 231,768 Total Nonoperating Expenses 231,768 231,768

Excess of Revenues Over (Under) Expenses (294,821) 1,245,585 1,540,406

Other Financing Uses: Transfers Out (101,346) 101,346

Excess of Revenues Over (Under) Expenses and Other Financing Uses (396,167) 1,245,585 1,641,752

Appropriated Fund Balance 396,167 (396,167)

Excess of Revenues Over Expenses $ $ 1,245,585 $ 1,245,585

-129- Schedule 65 Page 2 of 2 Parking Facilities Fund Schedule of Revenues and Expenses - Budget and Actual (Non-GAAP) For the Fiscal Year Ended June 30, 2019

Reconciliation of Modified Accrual Basis to Full Accrual Basis: Total Revenues $ 3,374,131 Total Expenses 2,128,546

Excess of Revenues Over Expenses 1,245,585

Adjustment to Full Accrual Basis: Depreciation (569,538) Deferred Outflows of Resources for Contributions Made to Pension Plan in Current Fiscal Year 43,564 Pension Expense (52,595) OPEB Expense (31,193) Contributions Made to OPEB Plan in Current Fiscal Year 23,957 Compensated Absences 16,767 Capital Project Fund Net Revenues and Expenses (100,614)

Income Before Transfers $ 575,933

-130- Schedule 66

Parking Facilities Capital Project Fund Schedule of Revenues and Expenses - Budget and Actual (Non-GAAP) From Project Inception and For the Year Ended June 30, 2019

Actual Project Prior Current Total Authorization Years Year To Date Expenses: Capital Improvements: Parking Facilities$ 227,051 $ 227,050 $ $ 227,050

Nonoperating Revenues: Investment Income 7,867 (20) 7,847 Net Increase (Decrease) in the Fair Value of Investments (106) (10) (116) Total Investment Income 7,761 (30) 7,731

Excess of Revenues Under Expenses Before Other Financing Sources (Uses) (227,051) (219,289) (30) (219,319)

Other Financing Sources (Uses): Transfers In - Parking Facilities Operating Fund 220,998 220,998 220,998 Transfers In - Parking Facilities Capital Reserve Fund 280,000 280,000 280,000 Transfers Out -Parking Facilities Bond Fund (282,804) (282,804) (282,804) Total Other Financing Sources (Uses) 218,194 218,194 218,194

Appropriated Fund Balance 8,857

Excess of Revenues and Other Financing Sources Under Expenses and Other Financing Uses $ $ (1,095) $ (30) $ (1,125)

-131- Schedule 67

Parking Facilities Bond Fund Schedule of Revenues and Expenses - Budget and Actual (Non-GAAP) From Project Inception and For the Year Ended June 30, 2019

Actual Project Prior Current Total Authorization Years Year To Date Expenses: Capital Improvements: Parking Facilities - February One Deck$ 31,100,000 $ 4,376,935 $ 505,288 $ 4,882,223 Parking Facilities - Eugene Street Deck 28,900,000 339,762 6,431,587 6,771,349

Nonoperating Expenses: Bond Issue Expense 47,826 101,164 148,990 Total Expenses 60,000,000 4,764,523 7,038,039 11,802,562

Nonoperating Revenues: Investment Income (1,318) (1,318)

Sale of Real Estate 2,300,000 840 840 Total Nonoperating Revenues 2,300,000 (1,318) 840 (478)

Excess of Revenues Under Expenses Before Other Financing Sources (57,700,000) (4,765,841) (7,037,199) (11,803,040)

Other Financing Sources: Debt Issuances: Limited Obligation Bonds 55,566,241 Transfers In - Parking Facilities Operating Fund 1,209,346 1,209,346 1,209,346 Transfers In - Parking Facilities Capital Reserve Fund 641,609 641,609 641,609 Transfers In - Parking Facilities Capital Project Fund 282,804 282,804 282,804 Total Other Financing Sources 57,700,000 2,133,759 2,133,759

Excess of Revenues and Other Financing Sources Under Expenses$ $ (2,632,082) $ (7,037,199) $ (9,669,281)

-132-

Internal Service Funds

Equipment Services Fund

This fund accounts for the costs of operating a maintenance facility for automotive equipment used by City departments. The costs of providing this service are billed to user departments. Automotive equipment is owned by the Equipment Services Fund.

Technical Services Fund

This fund accounts for the City’s two-way radio system and the Police mobile data system, including any peripheral equipment, except the computer hardware or software. The user departments are billed for the costs of operation.

Information Systems Fund

This fund accounts for the costs of operating, maintaining and supporting the City’s network, server and telecommunications infrastructure. The user departments are billed for the costs of operation.

Graphic Services Fund

This fund accounts for all in-house printing services provided to the City, Guilford County and other agencies. The cost of providing this service is billed to user departments and agencies.

Guilford Metro Communications Fund

This fund was established to account for emergency communications administration that is funded by the City and Guilford County.

Employee Risk Retention Fund

This fund is maintained for self-funding of employee health, dental and workers’ compensation coverage. The employees’ premium and the City’s contribution are deposited in this fund. Payments for workers’ compensation coverage are made to a third-party administrator for the statement of claims plus administrative expenses. The City administers the employee dental coverage plan. Health coverage is provided by a health insurance provider and claims are paid from this fund.

General Risk Retention Fund

This fund was established to accumulate claim reserves and to pay claims and administrative fees for general liability, vehicle liability, public official liability, law enforcement liability and underground storage tank liability, in the City’s self-funding program.

Capital Leasing Fund

This fund was established to account for major equipment purchases financed with lease-purchase agreements or certificates of participation.

-133- Schedule 68 Page 1 of 2

Internal Service Funds Combining Statement of Net Position June 30, 2019

Equipment Technical Information ASSETS Services Services Systems Current Assets: Cash and Cash Equivalents/Investments$ 7,506,166 $ 3,373,208 $ 2,942,049 Receivables (Net): Accounts, Notes and Mortgages 57,395 1,073 Intergovernmental 508,015 223,761 308,937 Interest 21,498 12,562 7,329 Inventories 742,625 85,813 Total Current Assets 8,835,699 3,610,604 3,344,128 Noncurrent Assets: Assets Held for Resale Self-Funded Retention Deposits 112,632 Capital Assets: Non-Depreciable: Land Construction in Progress 540,562 Depreciable/Amortized: Land Improvements 80,255 Buildings 1,604,880 167,458 Improvements Other than Buildings 94,000 Furniture, Fixtures, Machinery and Equipment 111,628,191 20,229,860 11,757,775 Less Accumulated Depreciation (78,196,735) (6,723,087) (7,530,601) Intangible Assets: Software and Licenses Less Accumulated Amortization Total Noncurrent Assets 35,657,153 13,768,231 4,339,806 Total Assets 44,492,852 17,378,835 7,683,934 DEFERRED OUTFLOWS OF RESOURCES Pension Deferrals 495,422 112,431 285,352 Current Year Pension Contributions 197,742 44,876 113,895 OPEB Deferrals 91,432 17,863 37,511 Total Deferred Outflows of Resources 784,596 175,170 436,758 Total Assets and Deferred Outflows of Resources 45,277,448 17,554,005 8,120,692 LIABILITIES Current Liabilities: Accounts Payable/Other Accrued Expenses 1,527,802 16,800 Contracts/Retainage Payable 4,012 40,571 Intergovernmental Payable Interest Payable 569 General Obligation Bonds Payable 459,711 Lease-Purchase and Other Financing Agreements Payable 1,115,112 1,994,814 Customer Deposits Payable Compensated Absences 189,478 28,459 74,712 Total Current Liabilities 1,721,292 1,603,851 2,126,897 Noncurrent Liabilities: General Obligation Bonds Payable 17,007 Lease-Purchase and Other Financing Agreements Payable 7,643,115 2,253,130 Compensated Absences 17,418 29,703 61,229 Net OPEB Liability 1,749,038 341,699 717,569 Net Pension Liability 889,593 201,885 512,387 Total Noncurrent Liabilities 2,656,049 8,233,409 3,544,315 Total Liabilities 4,377,341 9,837,260 5,671,212 DEFERRED INFLOWS OF RESOURCES Pension Deferrals 29,146 6,614 16,787 OPEB Deferrals 424,647 82,961 174,218 Total Deferred Inflows of Resources 453,793 89,575 191,005

NET POSITION Net Investment in Capital Assets 35,657,153 4,533,286 (20,770) Restricted for Assets Held for Resale Restricted for Self-Funded Retention Deposits 112,632 Unrestricted 4,789,161 3,093,884 2,166,613 Total Net Position$ 40,446,314 $ 7,627,170 $ 2,258,475

-134- Schedule 68 Page 2 of 2

Guilford Employee General Graphic Metro Risk Risk Capital Services Communications Retention Retention Leasing Totals

$ 33,377 $ 2,205,149 $ 24,624,654 $ 8,879,010 $ 2,901,416 $ 52,465,029

616,714 675,182 37,078 37,437 3,336 13,069 1,131,633 324 9,203 101,504 36,160 10,168 198,748 29,079 857,517 99,858 2,251,789 25,346,208 8,915,170 2,924,653 55,328,109

600,000 600,000 2,249,708 14,392,663 16,755,003

179,470 1,660,541 1,840,011 540,562

144,349 749,902 974,506 281,806 1,235,639 3,289,783 94,000 29,993 1,420,984 10,986 13,854,068 158,931,857 (20,857) (1,205,720) (4,289) (14,766,694) (108,447,983)

830,969 830,969 (830,969) (830,969) 9,136 820,889 2,256,405 14,392,663 3,333,456 74,577,739 108,994 3,072,678 27,602,613 23,307,833 6,258,109 129,905,848

69,366 975,721 108,815 3,287 2,050,394 27,687 389,448 43,432 1,312 818,392 15,138 210,808 13,715 363 386,830 112,191 1,575,977 165,962 4,962 3,255,616 221,185 4,648,655 27,768,575 23,312,795 6,258,109 133,161,464

5,916 11,356,279 6,123,261 19,030,058 44,583 528,535 528,535 149 718 459,711

280,436 620,910 4,011,272 46,050 46,050 25,788 225,424 32,359 1,016 577,236 31,704 505,860 11,388,638 6,698,862 621,059 24,698,163

17,007

291,135 1,829,490 12,016,870 5,271 304,954 2,563 1,110 422,248 289,576 4,032,633 262,356 6,950 7,399,821 124,555 1,752,033 195,392 5,903 3,681,748 419,402 6,380,755 460,311 13,963 1,829,490 23,537,694 451,106 6,886,615 11,848,949 6,712,825 2,450,549 48,235,857

4,081 57,402 6,402 193 120,625 70,306 979,079 63,697 1,687 1,796,595 74,387 1,036,481 70,099 1,880 1,917,220

9,136 249,318 6,697 283,056 40,717,876 600,000 600,000 2,249,708 14,392,663 16,755,003 (313,444) (3,523,759) 13,593,122 2,205,427 2,924,504 24,935,508 $ (304,308) $ (3,274,441) $ 15,849,527 $ 16,598,090 $ 3,807,560 $ 83,008,387 -135- Schedule 69 Page 1 of 2 Internal Service Funds Combining Statement of Revenues, Expenses and Changes in Net Position For the Fiscal Year Ended June 30, 2019

Equipment Technical Information Services Services Systems Operating Revenues: Charges for Current Services-Internal$ 17,339,693 $ 3,956,606 $ 12,216,457 Charges for Current Services-External Total Charges for Current Services 17,339,693 3,956,606 12,216,457

Other Operating Revenues 167,338 2,269,445 11,531 Total Operating Revenues 17,507,031 6,226,051 12,227,988

Operating Expenses: Personal Services 2,522,130 617,751 1,536,437 Fringe Benefits 1,126,598 231,750 541,312 Maintenance and Operations 3,985,050 2,576,316 6,876,202 Claims and Expenses 18,630 5,626 120,851 Depreciation/Amortization 10,406,158 1,631,927 2,163,729 Total Operating Expenses 18,058,566 5,063,370 11,238,531

Operating Income (Loss) (551,535) 1,162,681 989,457

Nonoperating Revenues(Expenses): Investment Income 101,390 52,211 36,863 Net Increase (Decrease) in the Fair Value of Investments 54,541 56,517 14,121 Total Investment Income 155,931 108,728 50,984

Miscellaneous Nonoperating Revenue 250,444 Interest Expense (340,325) (146,580) Inventory Gain (Loss) 745 53,322 Gain (Loss) on Disposal of Capital Assets 642,049 Miscellaneous Nonoperating Expense (774,094) Total Nonoperating Revenues (Expenses) 1,049,169 (1,005,691) (42,274)

Income (Loss) Before Transfers 497,634 156,990 947,183

Transfers In Transfers Out (55,503) (53,000) Total Transfers (55,503) (53,000)

Change in Net Position 497,634 101,487 894,183

Net Position - July 1 39,948,680 7,525,683 1,364,292

Net Position - June 30 $ 40,446,314 $ 7,627,170 $ 2,258,475

-136- Schedule 69 Page 2 of 2

Guilford Employee General Graphic Metro Risk Risk Capital Services Communications Retention Retention Leasing Totals

$ 724,350 $ 302,242 $ 48,437,990 $ 1,739,947 $ 2,190,116 $ 86,907,401 202,730 3,074,239 3,276,969 927,080 3,376,481 48,437,990 1,739,947 2,190,116 90,184,370

176 14,631 2,422,204 2,163 4,887,488 927,256 3,391,112 50,860,194 1,742,110 2,190,116 95,071,858

344,397 5,122,098 562,508 17,327 10,722,648 165,089 2,210,352 178,248 3,825 4,457,174 455,643 3,288,053 (358,779) 916,764 1,263,789 19,003,038 433 3,440 50,075,118 1,830,967 52,055,065 1,500 360,771 732 186,340 14,751,157 967,062 10,984,714 50,457,827 2,768,883 1,450,129 100,989,082

(39,806) (7,593,602) 402,367 (1,026,773) 739,987 (5,917,224)

1,424 46,402 500,198 617,938 50,228 1,406,654 926 18,214 234,792 88,643 21,457 489,211 2,350 64,616 734,990 706,581 71,685 1,895,865

250,444 (32,112) (126,924) (645,941) 54,067 7,777 649,826 (774,094) 2,350 32,504 734,990 706,581 (47,462) 1,430,167

(37,456) (7,561,098) 1,137,357 (320,192) 692,525 (4,487,057)

7,207,921 7,207,921 (108,503) 7,207,921 7,099,418

(37,456) (353,177) 1,137,357 (320,192) 692,525 2,612,361

(266,852) (2,921,264) 14,712,170 16,918,282 3,115,035 80,396,026

$ (304,308) $ (3,274,441) $ 15,849,527 $ 16,598,090 $ 3,807,560 $ 83,008,387

-137- Schedule 70 Page 1 of 2 Internal Service Funds Combining Statement of Cash Flows For the Fiscal Year Ended June 30, 2019

Equipment Technical Information Services Services Systems Cash Flows from Operating Activities: Receipts from Customers$ 17,339,693 $ 2,532,098 $ 9,929,367 Payments to Suppliers (2,992,123) (2,448,549) (6,952,877) Payments to Employees (3,576,628) (829,688) (2,034,514) Other Receipts 417,781 2,269,445 11,531 Net Cash Provided by (Used for) Operating Activities 11,188,723 1,523,306 953,507

Cash Flows from Noncapital Financing Activities: Subsidies and Transfers In Subsidies and Transfers Out (55,503) (53,000) Net Cash Provided by (Used for) Noncapital Financing Activities (55,503) (53,000)

Cash Flows from Capital and Related Financing Activities: Acquisition and Construction of Capital Assets (10,511,272) (1,620,079) Proceeds from Sale of Capital Assets 804,856 Principal Paid on Capital Debt (406,068) Interest and Fiscal Charges Paid on Capital Debt (11,058) Net Cash Used for Capital and Related Financing Activities (9,706,416) (2,037,205)

Cash Flows from Investing Activities: Investment Income (Loss) 149,516 113,653 47,222

Net Increase (Decrease) in Cash and Cash Equivalents/Investments 1,631,823 (455,749) 947,729

Balances - July 1 5,874,343 3,828,957 1,994,320

Balances - June 30$ 7,506,166 $ 3,373,208 $ 2,942,049

Reconciliation of Operating Income (Loss) to Net Cash Provided by (Used for) Operating Activities: Operating Income (Loss)$ (551,535) $ 1,162,681 $ 989,457 Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided by (Used for) Operating Activities: Depreciation 10,406,158 1,631,927 2,163,729 Changes in Assets, Deferred Outflows, Deferred Inflows and Liabilities: (Increase) Decrease in Receivables (10,148) 11 (Increase) Decrease in Inventories 12,761 (73,887) (Increase) Decrease in Intergovernmental Receivables (145,407) 133,382 69,649 Increase in Miscellaneous Assets Increase (Decrease) in Accounts Payable 1,154,352 (628) 7,843 Increase Contracts/Retainage Payable 40,571 Decrease in Intergovernmental Payable Increase in Deferred Outflows of Resources - Pensions (247,548) (56,407) (142,707) Decrease in Deferred Inflows of Resources - Pensions (10,044) (2,260) (5,775) Increase in Net Pension Liability 298,707 68,092 172,216 Increase in Deferred Outflows of Resources - OPEB (91,432) (17,863) (37,511) Increase in Deferred Inflows of Resources - OPEB 358,981 70,132 147,277 Decrease in Net OPEB Liability (239,979) (46,884) (98,455) Increase (Decrease) in Compensated Absences Payable 3,414 5,632 8,190 Increase (Decrease) in Other Receipts (Disbursements) 250,443 (1,424,509) (2,287,090) Total Adjustments 11,740,258 360,625 (35,950)

Net Cash Provided by (Used for) Operating Activities$ 11,188,723 $ 1,523,306 $ 953,507

Noncash Investing, Capital and Financing Activities: Lease-Purchase and Other Capital Assets $ $ 1,424,509 $ 2,748,121 Principal Paid by Other Funds on Debt Obligations 2,287,090 Total Noncash Investing, Capital and Financing Activities $ $ 1,424,509 $ 5,035,211 -138- Schedule 70 Page 2 of 2

Guilford Employee General Graphic Metro Risk Risk Capital Services Communications Retention Retention Leasing Totals

$ 927,080 $ 3,074,239 $ 48,437,990 $ 1,739,947 $ 2,190,116 $ 86,170,530 (456,709) (3,282,886) (49,537,487) (2,839,325) (1,252,362) (69,762,318) (500,685) (7,178,696) (727,354) (19,560) (14,867,125) 176 14,631 2,422,204 2,163 5,137,931 (30,138) (7,372,712) 595,353 (1,116,775) 937,754 6,679,018

7,207,921 7,207,921 (108,503) 7,207,921 7,099,418

(1) (6,111) (122,176) (12,259,639) 161,750 966,606 (562,200) (968,268) (126,989) (138,047)

(1) (6,111) (649,615) (12,399,348)

2,290 60,063 696,702 694,701 67,123 1,831,270

(27,849) (110,839) 1,292,055 (422,074) 355,262 3,210,358

61,226 2,315,988 23,332,599 9,301,084 2,546,154 49,254,671

$ 33,377 $ 2,205,149 $ 24,624,654 $ 8,879,010 $ 2,901,416 $ 52,465,029

$ (39,806) $ (7,593,602) $ 402,367 $ (1,026,773) $ 739,987 $ (5,917,224)

1,500 360,771 732 186,340 14,751,157

(97,006) (107,143) (1,472) (62,598) 3,091 14,492 5,348 11,427 91,982 (188,674) (441,565) (630,239) (2,252) (5,885) 459,184 878,506 2,491,120 40,571 (528,535) (528,535) (34,915) (488,139) (54,306) (1,640) (1,025,662) (1,384) (19,729) (2,211) (67) (41,470) 42,161 589,095 65,523 1,979 1,237,773 (15,138) (210,808) (13,715) (363) (386,830) 59,434 827,677 53,847 1,426 1,518,774 (39,731) (553,302) (35,997) (953) (1,015,301) (1,626) 8,960 261 1,210 26,041 (302,242) (3,763,398) 9,668 220,890 192,986 (90,002) 197,767 12,596,242

$ (30,138) $ (7,372,712) $ 595,353 $ (1,116,775) $ 937,754 $ 6,679,018

$ $ $ $ $ $ 4,172,630 (302,242) 1,984,848 $ $ (302,242) $ $ $ $ 6,157,478 -139-

Schedule 71

Internal Service Funds Schedule of Changes in Long-Term Debt For the Fiscal Year Ended June 30, 2019

Debt Debt Outstanding Outstanding June 30, 2018 Additions Retirements June 30, 2019 Equipment Services: Compensated Absences $ 203,481 $ 211,635 $ 208,220 $ 206,896

Technical Services: General Obligation Bonds 903,566 426,848 476,718 Capital Leases 9,832,359 1,074,132 8,758,227 Compensated Absences 52,530 34,280 28,648 58,162

Total Technical Services 10,788,455 34,280 1,529,628 9,293,107

Information Systems: Capital Leases 3,640,333 2,748,121 2,140,510 4,247,944 Compensated Absences 127,751 100,619 92,429 135,941

Total Information Systems 3,768,084 2,848,740 2,232,939 4,383,885

Graphic Services: Compensated Absences 32,685 23,654 25,280 31,059

Guilford Metro Communications: Capital Leases 841,701 270,130 571,571 Compensated Absences 521,418 274,455 265,495 530,378

Total Guilford Metro Communications 1,363,119 274,455 535,625 1,101,949

Employee Risk Retention: Compensated Absences 34,661 44,812 44,551 34,922

General Risk Retention: Compensated Absences 916 1,966 756 2,126

Capital Leasing: Master Equipment Lease Agreement 3,012,600 562,200 2,450,400

Total Internal Service Funds$ 19,204,001 $ 3,439,542 $ 5,139,199 $ 17,504,344

-140-

Internal Service Fund

Schedule of Revenues, Expenses and Changes in Fund Balance

Budget and Actual (Non-GAAP)

The following Schedules present the results of operation for all Internal Service Funds on the modified accrual basis for comparison to the legally adopted budget for each fund. A reconciliation of the modified accrual basis to the full accrual basis (per generally accepted accounting principles) follows each Schedule.

-141- Schedule 72 Page 1 of 2 Equipment Services Fund Schedule of Revenues, Expenses and Changes in Fund Balance - Budget and Actual (Non-GAAP) For the Fiscal Year Ended June 30, 2019

Variance Final Positive Budget Actual (Negative) Operating Revenues: Charges for Current Services - Internal$ 18,259,615 $ 17,339,693 $ (919,922) Charges for Current Services - External 2,500 (2,500) Other Operating Revenues 141,000 167,338 26,338 Total Operating Revenues 18,403,115 17,507,031 (896,084)

Operating Expenses: Personal Services 2,555,490 2,518,716 36,774 Fringe Benefits 1,106,329 1,057,913 48,416 Maintenance and Operations 4,213,951 3,985,050 228,901 Claims and Expenses 481,318 18,630 462,688 Capital Outlay 16,150,304 10,511,274 5,639,030 Total Operating Expenses 24,507,392 18,091,583 6,415,809

Operating Loss (6,104,277) (584,552) 5,519,725

Nonoperating Revenues: Investment Income 55,000 101,390 46,390 Net Increase (Decrease) in the Fair Value of Investments 54,541 54,541 Total Investment Income 55,000 155,931 100,931

Miscellaneous Nonoperating Revenue 857,518 250,443 (607,075) Total Nonoperating Revenues 912,518 406,374 (506,144)

Nonoperating Expenses: Miscellaneous Nonoperating Expense 5,000 5,000 Total Nonoperating Expenses 5,000 5,000

Excess of Revenues Under Expenses (5,196,759) (178,178) 5,018,581

Appropriated Fund Balance 5,196,759 (5,196,759)

Excess of Revenues Under Expenses$ $ (178,178) $ (178,178)

-142- Schedule 72 Page 2 of 2 Equipment Services Fund Schedule of Revenues, Expenses and Changes in Fund Balance - Budget and Actual (Non-GAAP) For the Fiscal Year Ended June 30, 2019

Reconciliation of Modified Accrual Basis to Full Accrual Basis: Total Revenues $ 17,913,405 Total Expenses 18,091,583

Excess of Revenues Under Expenses (178,178)

Adjustment to Full Accrual Basis: Depreciation/Amortization (10,406,158) Capital Outlay 10,511,274 Gain (Loss) on Disposal of Capital Assets 642,049 Inventory Gain (Loss) 745 Deferred Outflows of Resources for Contributions Made in Current Fiscal Year to: Pension Plan 197,742 Pension Expense (238,857) OPEB Expense (118,865) Contributions Made to OPEB Plan in Current Fiscal Year 91,295 Compensated Absences (3,413)

Income Before Transfers $ 497,634

-143- Schedule 73 Page 1 of 2 Technical Services Fund Schedule of Revenues, Expenses and Changes in Fund Balance - Budget and Actual (Non-GAAP) For the Fiscal Year Ended June 30, 2019

Variance Final Positive Budget Actual (Negative) Operating Revenues: Charges for Current Services - Internal$ 3,943,840 $ 3,956,606 $ 12,766 Other Operating Revenues 1,292,989 1,495,424 202,435 Total Operating Revenues 5,236,829 5,452,030 215,201

Operating Expenses: Personal Services 621,977 612,118 9,859 Fringe Benefits 219,285 216,940 2,345 Maintenance and Operations 2,974,556 2,576,313 398,243 Claims and Expenses 5,638 5,626 12 Capital Outlay 76,939 72,039 4,900 Total Operating Expenses 3,898,395 3,483,036 415,359

Operating Income 1,338,434 1,968,994 630,560

Nonoperating Revenues: Investment Income 29,000 46,616 17,616 Net Increase (Decrease) Fair Value of Investments 58,154 58,154 Total Investment Income 29,000 104,770 75,770

Nonoperating Expenses: Principal Maturities 1,074,135 1,480,200 (406,065) Interest Expense 350,375 361,104 (10,729) Miscellaneous Nonoperating Expense 5,000 74 4,926 Total Nonoperating Expenses 1,429,510 1,841,378 (411,868)

Excess of Revenues Over (Under) Expenses Before Other Financing Uses (62,076) 232,386 294,462

Other Financing Uses: Transfers Out (829,523) (829,523)

Appropriated Fund Balance 891,599 (891,599)

Excess of Revenues Under Expenses and Other Financing Uses$ $ (597,137) $ (597,137)

-144- Schedule 73 Page 2 of 2 Technical Services Fund Schedule of Revenues, Expenses and Changes in Fund Balance - Budget and Actual (Non-GAAP) For the Fiscal Year Ended June 30, 2019

Reconciliation of Modified Accrual Basis to Full Accrual Basis: Total Revenues$ 5,556,800 Total Expenses 5,324,414

Excess of Revenues Over Expenses Before Other Financing Uses 232,386

Adjustment to Full Accrual Basis: Depreciation/Amortization (1,631,927) Principal Maturities 1,480,200 Capital Outlay 72,039 Deferred Outflows of Resources for Contributions Made in Current Fiscal Year to: Pension Plan 44,876 Pension Expense (54,301) OPEB Expense (23,221) Contributions Made to OPEB Plan in Current Fiscal Year 17,836 Compensated Absences (5,636) Amortization of Bond Premium 20,779 Capital Project Fund Revenues and Expenses 3,959

Income Before Transfers$ 156,990

-145-

Schedule 74

Technical Services Capital Project Fund Schedule of Revenues and Expenses - Budget and Actual (Non-GAAP) From Project Inception and For the Fiscal Year Ended June 30, 2019

Actual Project Prior Current Total Authorization Years Year To Date

Operating Revenues: Charges for Services - External: Contract Agreement Reimbursement$ 9,424,881 $ 8,634,776 $ 774,020 $ 9,408,796

Nonoperating Revenues: Investment Income 40,224 5,595 45,819 Net Increase (Decrease) in the Fair Value of Investments 2,113 (1,637) 476 Total Investment Income 42,337 3,958 46,295

Expenses: Miscellaneous Nonoperating Expenses 4,868,137 8,634,777 774,020 9,408,797 Capital Improvements 14,192,675 8,634,777 774,019 9,408,796 Total Expenses 19,060,812 17,269,554 1,548,039 18,817,593

Excess of Revenues Under Expenses Before Other Financing Sources (9,635,931) (8,592,441) (770,061) (9,362,502)

Other Financing Sources: Transfers In 9,635,931 9,295,856 774,020 10,069,876

Excess of Revenues and Other Financing Sources Over Expenses $ $ 703,415 $ 3,959 $ 707,374

-146- Schedule 75 Page 1 of 2 Information Systems Fund Schedule of Revenues, Expenses and Changes in Fund Balance - Budget and Actual (Non-GAAP) For the Fiscal Year Ended June 30, 2019

Variance Final Positive Budget Actual (Negative) Operating Revenues: Charges for Current Services - Internal$ 11,258,808 $ 12,216,457 $ 957,649 Other Operating Revenues 11,531 11,531 Total Operating Revenues 11,258,808 12,227,988 969,180

Operating Expenses: Personal Services 1,442,329 1,528,247 (85,918) Fringe Benefits 500,467 506,267 (5,800) Maintenance and Operations 7,775,341 6,876,202 899,139 Claims and Expenses 128,725 120,851 7,874 Capital Outlay 3,650,000 2,748,121 901,879 Total Operating Expenses 13,496,862 11,779,688 1,717,174

Operating Income (Loss) (2,238,054) 448,300 2,686,354

Nonoperating Revenues: Investment Income 41,565 36,863 (4,702) Net Increase (Decrease) in the Fair Value of Investments 14,121 14,121 Total Investment Income 41,565 50,984 9,419

Nonoperating Expenses: Principal Maturities 2,000,000 2,140,510 (140,510) Interest Expense 225,000 146,580 78,420 Total Nonoperating Expenses 2,225,000 2,287,090 (62,090)

Excess of Revenues Under Expenses Before Other Financing Sources (Uses) (4,421,489) (1,787,806) 2,633,683

Other Financing Sources (Uses): Debt Issuances: Proceeds of Capitalized Leases 3,500,000 2,748,121 (751,879) Transfers Out (53,000) (53,000) Total Other Financing Sources (Uses) 3,447,000 2,695,121 (751,879)

Excess of Revenues and Other Financing Sources Over (Under) Expenses and Other Financing (Uses) (974,489) 907,315 1,881,804

Appropriated Fund Balance 974,489 (974,489)

Excess of Revenues and Other Financing Sources Over Expenses and Other Financing (Uses)$ $ 907,315 $ 907,315

-147- Schedule 75 Page 2 of 2 Information Systems Fund Schedule of Revenues, Expenses and Changes in Fund Balance - Budget and Actual (Non-GAAP) For the Fiscal Year Ended June 30, 2019

Reconciliation of Modified Accrual Basis to Full Accrual Basis: Total Revenues $ 12,278,972 Total Expenses 14,066,778

Excess of Revenues Under Expenses Before Other Financing Sources (Uses) (1,787,806)

Adjustment to Full Accrual Basis: Depreciation/Amortization (2,163,729) Principal Maturities 2,140,510 Capital Outlay 2,748,121 Inventory Gain (Loss) 53,322 Deferred Outflows of Resources for Contributions Made in Current Fiscal Year to: Pension Plan 113,895 Pension Expense (137,629) OPEB Expense (48,766) Contributions Made to OPEB Plan in Current Fiscal Year 37,455 Compensated Absences (8,190)

Income Before Transfers $ 947,183

-148- Schedule 76 Page 1 of 2 Graphic Services Fund Schedule of Revenues, Expenses and Changes in Fund Balance - Budget and Actual (Non-GAAP) For the Fiscal Year Ended June 30, 2019

Variance Final Positive Budget Actual (Negative) Operating Revenues: Charges for Current Services - Internal$ 828,417 $ 724,350 $ (104,067) Charges for Current Services - External 180,000 202,730 22,730 Other Operating Revenues 176 176 Total Operating Revenues 1,008,417 927,256 (81,161)

Operating Expenses: Personal Services 357,948 346,023 11,925 Fringe Benefits 166,359 154,662 11,697 Maintenance and Operations 495,748 455,644 40,104 Claims and Expenses 433 433 Total Operating Expenses 1,020,488 956,762 63,726

Operating Loss (12,071) (29,506) (17,435)

Nonoperating Revenues: Investment Income 1,424 1,424 Net Increase (Decrease) in the Fair Value of Investments 926 926 Total Investment Income 2,350 2,350

Appropriated Fund Balance 12,071 (12,071)

Excess of Revenues Under Expenses $ $ (27,156) $ (27,156)

-149- Schedule 76 Page 2 of 2 Graphic Services Fund Schedule of Revenues, Expenses and Changes in Fund Balance - Budget and Actual (Non-GAAP) For the Fiscal Year Ended June 30, 2019

Reconciliation of Modified Accrual Basis to Full Accrual Basis: Total Revenues $ 929,606 Total Expenses 956,762

Excess of Revenues Under Expenses (27,156)

Adjustment to Full Accrual Basis: Depreciation/Amortization (1,500) Deferred Outflows of Resources for Contributions Made in Current Fiscal Year to: Pension Plan 27,687 Pension Expense (33,549) OPEB Expense (19,680) Contributions Made to OPEB Plan in Current Fiscal Year 15,115 Compensated Absences 1,627

Loss Before Transfers $ (37,456)

-150- Schedule 77 Page 1 of 2 Guilford Metro Communications Schedule of Revenues, Expenses and Changes in Fund Balance - Budget and Actual (Non-GAAP) For the Fiscal Year Ended June 30, 2019

Variance Final Positive Budget Actual (Negative) Operating Revenues: Charges for Current Services - Internal$ 302,245 $ 302,242 $ (3) Charges for Current Services - External 3,074,239 3,074,239 Other Operating Revenues 13,131 14,631 1,500 Total Operating Revenues 3,389,615 3,391,112 1,497

Operating Expenses: Personal Services 5,314,770 5,113,138 201,632 Fringe Benefits 2,134,860 2,065,558 69,302 Maintenance and Operations 3,759,063 3,288,052 471,011 Claims and Expenses 3,440 3,440 Capital Outlay 6,112 6,111 1 Total Operating Expenses 11,218,245 10,476,299 741,946

Operating Loss (7,828,630) (7,085,187) 743,443

Nonoperating Revenues: Investment Income 19,650 46,402 26,752 Net Increase (Decrease) in the Fair Value of Investments 18,214 18,214 Total Investment Income 19,650 64,616 44,966

Nonoperating Expenses: Principal Maturities 270,130 270,130 Interest Expense 32,115 32,112 3 Total Nonoperating Expenses 302,245 302,242 3

Excess of Revenues Under Expenses Before Other Financing Sources (8,111,225) (7,322,813) 788,412

Other Financing Sources: Transfers In 7,857,921 7,207,921 (650,000)

Excess of Revenues and Other Financing Sources Under Expenses (253,304) (114,892) 138,412

Appropriated Fund Balance 253,304 (253,304)

Excess of Revenues and Other Financing Sources Under Expenses $ $ (114,892) $ (114,892)

-151- Schedule 77 Page 2 of 2 Guilford Metro Communications Schedule of Revenues, Expenses and Changes in Fund Balance - Budget and Actual (Non-GAAP) For the Fiscal Year Ended June 30, 2019

Reconciliation of Modified Accrual Basis to Full Accrual Basis: Total Revenues $ 3,455,728 Total Expenses 10,778,541

Excess of Revenues Under Expenses Before Other Financing Sources (7,322,813)

Adjustment to Full Accrual Basis: Depreciation/Amortization (360,771) Principal Maturities 270,130 Capital Outlay 6,111 Deferred Outflows of Resources for Contributions Made in Current Fiscal Year to: Pension Plan 389,448 Pension Expense (470,675) OPEB Expense (274,059) Contributions Made to OPEB Plan in Current Fiscal Year 210,492 Compensated Absences (8,961)

Loss Before Transfers$ (7,561,098)

-152- Schedule 78 Page 1 of 2 Employee Risk Retention Fund Schedule of Revenues, Expenses and Changes in Fund Balance - Budget and Actual (Non-GAAP) For the Fiscal Year Ended June 30, 2019

Variance Final Positive Budget Actual (Negative) Operating Revenues: Charges for Current Services - Internal$ 50,375,250 $ 48,437,990 $ (1,937,260) Other Operating Revenues 26,000 30,125 4,125 Total Operating Revenues 50,401,250 48,468,115 (1,933,135)

Operating Expenses: Personal Services 570,470 562,247 8,223 Fringe Benefits 152,871 165,107 (12,236) Maintenance and Operations 916,642 534,531 382,111 Claims and Expenses 51,460,017 50,075,117 1,384,900 Capital Outlay Total Operating Expenses 53,100,000 51,337,002 1,762,998

Operating Loss (2,698,750) (2,868,887) (170,137)

Nonoperating Revenues: Investment Income 150,000 500,198 350,198 Net Increase (Decrease) in the Fair Value of Investments 234,792 234,792 Total Investment Income 150,000 734,990 584,990

Miscellaneous Nonoperating Revenue 2,300,000 2,392,079 92,079 Total Nonoperating Revenues 2,450,000 3,127,069 677,069

Excess of Revenues Over (Under) Expenses (248,750) 258,182 506,932

Appropriated Fund Balance 248,750 (248,750)

Excess of Revenues Over Expenses $ $ 258,182 $ 258,182

-153- Schedule 78 Page 2 of 2 Employee Risk Retention Fund Schedule of Revenues, Expenses and Changes in Fund Balance - Budget and Actual (Non-GAAP) For the Fiscal Year Ended June 30, 2019

Reconciliation of Modified Accrual Basis to Full Accrual Basis: Total Revenues $ 51,595,184 Total Expenses 51,337,002

Excess of Revenues Over Expenses 258,182

Adjustment to Full Accrual Basis: Depreciation/Amortization (732) Capital Outlay Deferred Outflows of Resources for Contributions Made in Current Fiscal Year to: Pension Plan 43,432 Pension Expense (52,438) OPEB Expense (17,829) Contributions Made to OPEB Plan in Current Fiscal Year 13,694 Decrease in Workers' Compensation Accrued Actuarial Liability 893,310 Compensated Absences (262)

Income Before Transfers $ 1,137,357

-154- Schedule 79 Page 1 of 2 General Risk Retention Fund Schedule of Revenues, Expenses and Changes in Fund Balance - Budget and Actual (Non-GAAP) For the Fiscal Year Ended June 30, 2019

Variance Final Positive Budget Actual (Negative) Operating Revenues: Charges for Current Services - Internal$ 2,231,242 $ 1,739,947 $ (491,295)

Operating Expenses: Personal Services 15,295 16,118 (823) Fringe Benefits 5,904 3,443 2,461 Maintenance and Operations 232,421 9,832 222,589 Claims and Expenses 4,796,846 1,830,965 2,965,881 Total Operating Expenses 5,050,466 1,860,358 3,190,108

Operating Loss (2,819,224) (120,411) 2,698,813

Nonoperating Revenues: Investment Income 20,000 617,938 597,938 Net Increase (Decrease) in the Fair Value of Investments 88,643 88,643 Total Investment Income 20,000 706,581 686,581

Miscellaneous Nonoperating Revenue 2,163 2,163 Total Nonoperating Revenues 20,000 708,744 688,744

Excess of Revenues Over (Under) Expenses (2,799,224) 588,333 3,387,557

Appropriated Fund Balance 2,799,224 (2,799,224)

Excess of Revenues Over Expenses $ $ 588,333 $ 588,333

-155- Schedule 79 Page 2 of 2 General Risk Retention Fund Schedule of Revenues, Expenses and Changes in Fund Balance - Budget and Actual (Non-GAAP) For the Fiscal Year Ended June 30, 2019

Reconciliation of Modified Accrual Basis to Full Accrual Basis: Total Revenues $ 2,448,691 Total Expenses 1,860,358

Excess of Revenues Over Expenses 588,333

Adjustment to Full Accrual Basis: Deferred Outflows of Resources for Contributions Made in Current Fiscal Year to: Pension Plan 1,312 Pension Expense (1,584) OPEB Expense (473) Contributions Made to OPEB Plan in Current Fiscal Year 363 Increase in Accrued Actuarial Liability (906,933) Compensated Absences (1,210)

Loss Before Transfers $ (320,192)

-156- Schedule 80 Page 1 of 2 Capital Leasing Fund Schedule of Revenues, Expenses and Changes in Fund Balance - Budget and Actual (Non-GAAP) For the Fiscal Year Ended June 30, 2019

Variance Final Positive Budget Actual (Negative) Operating Revenues: Charges for Current Services - Internal$ 2,130,549 $ 2,190,116 $ 59,567

Operating Expenses: Maintenance and Operations 1,737,773 1,263,789 473,984 Capital Outlay 417,175 122,174 295,001 Total Operating Expenses 2,154,948 1,385,963 768,985

Operating Income (Loss) (24,399) 804,153 828,552

Nonoperating Revenues: Investment Income 15,000 50,228 35,228 Net Increase (Decrease) in the Fair Value of Investments 21,457 21,457 Total Investment Income 15,000 71,685 56,685

Miscellaneous Nonoperating Revenue 27,000 (27,000) Total Nonoperating Revenues 42,000 71,685 29,685

Nonoperating Expenses: Principal Maturities 612,200 562,200 50,000 Interest Expense 126,988 126,924 64 Total Nonoperating Expenses 739,188 689,124 50,064

Excess of Revenues Over (Under) Expenses (721,587) 186,714 908,301

Appropriated Fund Balance 721,587 (721,587)

Excess of Revenues Over Expenses$ $ 186,714 $ 186,714

-157- Schedule 80 Page 2 of 2 Capital Leasing Fund Schedule of Revenues, Expenses and Changes in Fund Balance - Budget and Actual (Non-GAAP) For the Fiscal Year Ended June 30, 2019

Reconciliation of Modified Accrual Basis to Full Accrual Basis: Total Revenues $ 2,261,801 Total Expenses 2,075,087

Excess of Revenues Over Expenses 186,714

Adjustment to Full Accrual Basis: Depreciation/Amortization (186,340) Principal Maturities 562,200 Capital Outlay 122,174 Gain (Loss) on Disposal of Capital Assets 7,777

Income Before Transfers $ 692,525

-158-

Fiduciary Funds

Law Enforcment Officers’ Special Separation Allowance (LEOSSA) Pension Benefit Trust

This fund was established to account for special separation (pension) benefits, payable semi-monthly, to qualified law enforcement officers. The City is required to provide such benefits until each qualified law enforcement officer attains age 62. The City’s contribution to this fund has been actuarially determined and will be funded by fringe benefit charges based on active police officers’ salaries.

Other Postemployment Benefit (OPEB) Trust

This fund was established to account for contributions held in trust to pay certain health and life benefits to employees following retirement, up to age 65.

-159- Schedule 81

Statement of Fiduciary Net Position Fiduciary Funds June 30, 2019

LEOSSA Other Pension Postemployment Benefit Benefit (OPEB) Trust Trust Total ASSETS Cash and Cash Equivalents/Investments Demand Deposits$ 5,000 $ $ 5,000 Mutual Funds: NC Short Term Investment Fund 8,575 1,206,391 1,214,966 NC Equity Index Fund 4,493,182 14,139,905 18,633,087 NC Bond Investment Fund 2,732,332 7,787,128 10,519,460

Total Assets 7,239,089 23,133,424 30,372,513

NET POSITION Restricted for Pension and Benefits$ 7,239,089 $ 23,133,424 $ 30,372,513

-160- Schedule 82

Statement of Changes in Fiduciary Net Position Fiduciary Funds For the Fiscal Year Ended June 30, 2019

LEOSSA Other Pension Postemployment Benefit Benefit (OPEB) Trust Trust Total ADDITIONS Employer Contributions$ 2,711,246 $ 5,661,315 $ 8,372,561 Employee Contributions 2,459,614 2,459,614

Interest Earnings: Investment Income 63,027 180,541 243,568 Net Increase (Decrease) in the Fair Value of Investments 395,379 1,202,914 1,598,293 Total Investment Income 458,406 1,383,455 1,841,861

Total Additions 3,169,652 9,504,384 12,674,036

DEDUCTIONS Benefits Paid 2,708,066 6,920,929 9,628,995 Administrative Expenses 4,396 3,612 8,008 Total Deductions 2,712,462 6,924,541 9,637,003

Change in Net Position 457,190 2,579,843 3,037,033

Net Position Restricted for Pension and Benefits - July 1 6,781,899 20,553,581 27,335,480

Net Position Restricted for Pension and Benefits - June 30$ 7,239,089 $ 23,133,424 $ 30,372,513

-161-

Schedule 83

Schedule of General Capital Assets By Source June 30, 2019

General Capital Assets: Land $ 101,581,077 Improvements Other Than Buildings 46,339,735 Buildings 193,308,927 Furniture, Fixtures, Machinery and Equipment 182,339,235 Infrastructure 349,286,439 Intangible Assets - Software & Licenses 4,168,935 Construction in Progress 15,620,930 Accumulated Depreciation/Amortization (404,259,056)

Total General Capital Assets $ 488,386,222

Investment in General Capital Assets by Source: General Fund $ 160,671,173 General Obligation Bonds 183,806,878 Grant Funds 32,379,100 Infrastructure 349,286,439 Internal Service Funds 166,501,688 Accumulated Depreciation/Amortization (404,259,056)

Total Investment in General Capital Assets $ 488,386,222

-162- Schedule 84 Page 1 of 2 Schedule of General Capital Assets By Function and Activity June 30, 2019

Improvements Other Than Land Buildings Buildings

General Government: Administration$ 652,142 $ 788,781 $ 3,127,057 Job Training Consortium Total General Government 652,142 788,781 3,127,057

Public Safety: Police 3,189,323 50,942 12,916,487 Fire 4,188,358 40,926 46,349,834 Total Public Safety 7,377,681 91,868 59,266,321

Transportation: Infrastructure 58,698,772 Other Transportation 627,855 994,537 566,344 Total Transportation 59,326,627 994,537 566,344

Field Operations 5,000 658,278

Engineering and Building Maintenance 4,214,700 2,849,198 27,643,462

Culture and Recreation: Parks and Recreation 25,464,069 40,457,860 67,310,842 Library 2,705,847 83,985 31,446,840 Total Culture and Recreation 28,169,916 40,541,845 98,757,682

Internal Service Funds 1,840,011 1,068,506 3,289,783

Accumulated Depreciation/Amortization (23,798,735) (91,579,684)

Total General Capital Assets$ 101,581,077 $ 22,541,000 $ 101,729,243

-163- Schedule 84 Page 2 of 2

Furniture, Fixtures, Intangible Assets - Machinery Software & Construction and Equipment Infrastructure Licenses In Progress Total

$ 2,247,523 $ $ 2,639,015 $ $ 9,454,518 56,891 56,891 2,304,414 2,639,015 9,511,409

3,546,297 280,247 143,815 20,127,111 5,878,635 683,447 57,141,200 9,424,932 280,247 827,262 77,268,311

349,286,439 7,886,156 415,871,367 2,882,710 5,071,446 2,882,710 349,286,439 7,886,156 420,942,813

333,322 996,600

1,279,946 343,704 236,767 36,567,777

6,200,210 75,000 6,130,183 145,638,164 981,844 35,218,516 7,182,054 75,000 6,130,183 180,856,680

158,931,857 830,969 540,562 166,501,688

(122,401,230) (162,323,051) (4,156,356) (404,259,056)

$ 59,938,005 $ 186,963,388 $ 12,579 $ 15,620,930 $ 488,386,222

-164- Schedule 85 Page 1 of 2 Schedule of Changes in General Capital Assets By Function and Activity For the Fiscal Year Ended June 30, 2019

General Capital Assets June 30, 2018 Additions

General Government: Administration$ 9,457,472 $ 68,954 Job Training Consortium 56,891 Total General Government 9,514,363 68,954

Public Safety: Police 20,280,124 63,430 Fire 51,514,385 4,946,327 Total Public Safety 71,794,509 5,009,757

Transportation: Infrastructure 392,790,443 15,194,768 Other Transportation 2,474,784 2,596,662 Total Transportation 395,265,227 17,791,430

Field Operations 1,013,175

Engineering and Building Maintenance 35,826,017 504,997

Culture and Recreation: Parks and Recreation 136,851,896 2,871,196 Library 35,218,515 Total Culture and Recreation 172,070,411 2,871,196

Internal Service Funds 158,291,235 15,359,935

Construction in Progress 13,419,839 8,524,480

Accumulated Depreciation/Amortization (382,921,430) (29,325,433)

Total General Capital Assets $ 474,273,346 $ 20,805,316

-165- Schedule 85 Page 2 of 2

General Transfers Deductions/ Capital Assets In Out Disposals June 30, 2019

$ $ $ 71,908 $ 9,454,518 56,891 71,908 9,511,409

11,329 348,927 19,983,298 11,329 14,290 56,457,751 11,329 11,329 363,217 76,441,049

1,897,032 1,897,032 407,985,211 5,071,446 1,897,032 1,897,032 413,056,657

16,575 996,600

4 36,331,010

215,110 139,507,982 35,218,515 215,110 174,726,497

7,690,044 165,961,126

6,323,389 15,620,930

7,987,807 (404,259,056)

$ 1,908,361 $ 1,908,361 $ 6,692,440 $ 488,386,222

-166- Schedule 86 Page 1 of 2 Schedule of Long-Term Debt - at Par June 30, 2019 Original Original Issue Issue Final Interest Date Description Par Amount Maturity Rates

GENERAL OBLIGATION BONDS 02/01/98 Public Improvement Series 1998 Taxable$ 6,300,000 04/01/2022 5.30 variable (1) 02/10/98 Public Improvement Series 1998 Tax Exempt (Swap) 5,700,000 04/01/2020 4.00 var. (3.46) 02/01/03 Public Improvement Series 2003B Tax Exempt 10,000,000 02/01/2023 4.00 variable 02/09/06 Public Improvement Series 2006B Tax Exempt 10,000,000 02/01/2026 4.00 variable 01/17/08 Public Improvement Series 2008B Tax Exempt 10,000,000 02/01/2028 4.00 variable 11/02/10 Public Improvement Series 2010 BABs Taxable 24,000,000 11/01/2031 3.30-5.00 11/02/10 Public Improvement Refunding Series 2010C Tax Exempt 15,505,000 02/01/2020 3.00-5.00 02/27/12 Public Improvement Series 2012A Tax Exempt 10,000,000 03/01/2032 2.00-3.00 02/06/14 Public Improvement Series 2014A Tax Exempt 13,630,000 02/06/2034 2.00-5.00 02/06/14 Public Improvement Series 2014 Refunding 5,870,000 02/01/2023 3.00-4.13 10/20/16 Public Improvement Series 2016 Refunding 62,590,000 02/01/2037 2.75-5.00 10/17/18 Public Improvement Series 2018A Taxable 10,400,000 10/01/2020 2.75-2.90 10/17/18 Public Improvement Series 2018B Tax Exempt 135,360,000 10/01/2038 2.75-5.00 TOTAL GENERAL OBLIGATION BONDS

LIMITED OBLIGATION BONDS 10/07/14 Coliseum Improvements Series 2014 Tax Exempt$ 24,450,000 04/01/2040 2.00-5.00 02/14/18 Steven Tanger Center Project Series 2018 Taxable 43,450,000 02/01/2043 2.00-4.00 11/01/18 Coliseum Complex Project Series 2018A Tax Exempt 20,645,000 04/01/2044 3.25-5.00 11/01/18 Coliseum Complex Project Series 2018B Taxable 11,450,000 04/01/2031 3.32-4.31 TOTAL LIMITED OBLIGATION BONDS

REVENUE BONDS 12/07/06 Combined Enterprise System Series 2006 Tax Exempt$ 49,480,000 06/01/2025 4.00-5.25 06/01/09 Combined Enterprise System Series 2009A Tax Exempt 43,180,000 06/01/2031 3.50-5.00 06/01/12 Combined Enterprise System Series 2012A Refunding 35,185,000 06/01/2027 3.00-5.00 08/01/14 Combined Enterprise System 2014A Refunding 70,665,000 06/01/2034 4.50 var. 06/23/15 Combined Enterprise System 2015 Refunding 33,985,000 06/01/2029 3.00-5.00 02/01/16 Combined Enterprise System 2016 Refunding 29,310,000 06/01/2045 2.00-5.00 08/17/17 Combined Enterprise System 2017A Tax Exempt 64,700,000 06/01/2047 3.25-5.00 08/17/17 Combined Enterprise System 2017B Refunding 25,990,000 12/01/2030 4.00-5.00 06/14/18 Combined Enterprise System Bond Anticipation Note 2018 85,000,000 06/01/2026 79% 1 Mo.LIBOR + 37 pts TOTAL REVENUE BONDS

SPECIAL OBLIGATION BONDS 11/17/05 Special Obligation Bond Series 2005 Tax Exempt $ 8,400,000 06/01/2020 3.75-5.00

TOTAL LONG-TERM DEBT(2)

(1) Synthetic Fixed Rate, in accordance with Interest Rate Swap. (2) Excludes Lease Purchase and Other Financing Agreements.

-167- Schedule 86 Page 2 of 2

Total Outstanding Governmental Business-Type Par Balance Activities Activities 6/30/2019

$ 5,810,000 $ $ 5,810,000 2,960,000 2,960,000 10,000,000 10,000,000 9,340,000 9,340,000 10,000,000 10,000,000 24,000,000 24,000,000 2,220,000 2,220,000 6,500,000 6,500,000 10,210,000 10,210,000 2,960,000 2,960,000 54,245,000 54,245,000 10,400,000 10,400,000 135,360,000 135,360,000 $ 284,005,000 $ $ 284,005,000

$ 21,965,000 $ $ 21,965,000 43,450,000 43,450,000 20,645,000 20,645,000 11,450,000 11,450,000 $ 54,060,000 $ 43,450,000 $ 97,510,000

$ $ 19,745,000 $ 19,745,000

13,575,000 13,575,000 60,665,000 60,665,000 30,550,000 30,550,000 27,565,000 27,565,000 63,560,000 63,560,000 25,990,000 25,990,000 37,171,789 37,171,789 $ $ 278,821,789 $ 278,821,789

$ $ 785,000 $ 785,000

$ 338,065,000 $ 323,056,789 $ 661,121,789

-168- Schedule 87 Page 1 of 2 Schedule of Changes in General Long-Term Debt For the Fiscal Year Ended June 30, 2019

Total Debt Outstanding June 30, 2018 (a) Additions

Amount Available in Debt Service Fund for Retirement of General Obligation Bonded Debt$ 22,943,898 $

Amount to be Provided for Retirement of General Obligation Bonded Debt 191,123,938 157,195,342

Total Amount to be Provided for Retirement of General Obligation Bonded Debt 214,067,836 157,195,342

Amount Available in Special Revenue Fund for Retirement of Certificates of Participation and Limited Obligation Bonds and Notes 6,341,162

Amount to be Provided for Retirement of Retirement of Certificates of Participation and Limited Obligation Bonds and Notes 36,824,087 34,041,353

Total Amount to be Provided for Retirement of Retirement of Certificates of Participation and Limited Obligation Bonds and Notes 43,165,249 34,041,353

Amount to be Provided for Retirement of Other Long-Term Debt: Lease-Purchase and Other Financing Agreements 20,981,354 2,748,121 Compensated Absences Payable 13,146,554 8,771,946

Total Amount to be Provided for Retirement of Other Long-Term Debt 34,127,908 11,520,067

Total Available and to be Provided$ 291,360,993 $ 202,756,762

General Long-Term Debt Payable: General Obligation Bonds/Notes Payable$ 214,067,836 $ 157,195,342

Limited Obligation Bonds Payable 23,899,542 33,474,663

Limited Obligation Notes Payable 13,684,016 566,690

Certificates of Participation Payable 5,581,691

Lease-Purchase and Other Financing Agreements Payable 20,981,354 2,748,121

Compensated Absences Payable 13,146,554 8,771,946

Total General Long-Term Debt Payable$ 291,360,993 $ 202,756,762

(a) Total debt outstanding is net of premiums, discounts and adjustments.

-169- Schedule 87 Page 2 of 2

Total Debt Outstanding Transfers Retirements June 30, 2019

$ 2,154,029 $ $ 25,097,927

(2,154,029) 68,606,761 277,558,490

68,606,761 302,656,417

2,263,672 8,604,834

(2,263,672) 20,589,900 48,011,868

20,589,900 56,616,702

4,719,333 19,010,142 8,452,248 13,466,252

13,171,581 32,476,394

$ $ 102,368,242 $ 391,749,513

$ $ 68,606,761 $ 302,656,417

757,503 56,616,702

14,250,706

5,581,691

4,719,333 19,010,142

8,452,248 13,466,252

$ $ 102,368,242 $ 391,749,513

-170-

Statistical Section

This part of the City of Greensboro's Comprehensive Annual Financial Report presents detailed information as a context for understanding how the information in the financial statements, note disclosures, and required supplementary information depict the government's overall financial health.

Contents Pages Financial Trends These schedules contain trend information to help the reader understand how the government's financial performance and well-being have changed over time. 172-181

Revenue Capacity These schedules contain information to help the reader assess the factors affecting the City's ability to generate its property and sales taxes. 182-190

Debt Capacity These schedules present information to help the reader assess the affordability of the City's current levels of outstanding debt and the City's ability to issue additional debt in the future. 191-199

Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place and to help make comparisons over time and with other governments. 200-203

Operating Information These schedules contain service and infrastructure data to help the reader understand how the City's financial information relates to the services the City provides and the activities it performs. 204-207

Sources: Unless otherwise noted, the information in these schedules is derived from the Comprehensive Annual Financial Report for the relevant year.

The City implemented GASB Statement No. 54 in 2011 with restatement of governmental fund information for 2010 and 2011.

-171- Table 1 Page 1 of 2

Net Position by Component Fiscal Years Ended June 30, 2010-2019 (Accrual Basis of Accounting)

Fiscal Year 2010 2011 2012 2013

Governmental Activities Net Investment in Capital Assets$ 195,433,730 $ 202,602,983 $ 207,474,983 $ 215,653,276 Restricted 23,610,833 55,974,271 51,901,619 60,218,088 Unrestricted 151,014,584 113,847,542 103,278,577 85,190,027

Total Governmental Activities Net Position 370,059,147 372,424,796 362,655,179 361,061,391

Business-Type Activities Net Investment in Capital Assets 441,825,003 472,354,660 501,328,839 514,994,728 Restricted 29,922,858 38,553,090 31,374,864 62,152,102 Unrestricted 55,338,253 53,368,335 55,163,882 44,480,289

Total Business-Type Activities Net Position 527,086,114 564,276,085 587,867,585 621,627,119

Primary Government Net Investment in Capital Assets 637,258,733 674,957,643 708,803,822 730,648,004 Restricted 53,533,691 94,527,361 83,276,483 122,370,190 Unrestricted 206,352,837 167,215,877 158,442,459 129,670,316

Total Primary Government Net Position$ 897,145,261 $ 936,700,881 $ 950,522,764 $ 982,688,510

-172- Table I Page 2 of 2

2014 2015 2016 2017 2018 2019

$ 209,102,073 $ 215,310,883 $ 212,860,955 $ 227,076,680 $ 225,021,972 $ 217,997,394 60,295,972 84,598,294 92,783,655 91,364,353 94,809,416 104,822,909 88,992,802 56,751,213 54,190,392 16,872,934 (70,689,014) (86,837,164)

358,390,847 356,660,390 359,835,002 335,313,967 249,142,374 235,983,139

519,504,075 534,544,278 557,321,077 588,122,791 611,258,805 721,373,696 63,104,062 67,332,109 72,775,415 77,760,390 82,236,722 75,828,759 56,681,844 65,525,830 63,109,734 62,911,878 34,433,187 32,884,698

639,289,981 667,402,217 693,206,226 728,795,059 727,928,714 830,087,153

728,606,148 749,855,161 770,182,032 815,199,471 836,280,777 939,371,090 123,400,034 151,930,403 165,559,070 169,124,743 177,046,138 180,651,668 145,674,646 122,277,043 117,300,126 79,784,812 (36,255,827) (53,952,466)

$ 997,680,828 $ 1,024,062,607 $ 1,053,041,228 $ 1,064,109,026 $ 977,071,088 $ 1,066,070,292

-173- Table II Page 1 of 2

Changes in Net Position Expenses, Program Revenues, and Net (Expenses)/Revenue Fiscal Years Ended June 30, 2010-2019 (Accrual Basis of Accounting)

Fiscal Year 2010 2011 2012 2013

Expenses Governmental Activities: General Government$ 27,231,281 $ 26,158,923 $ 25,606,726 $ 21,374,250 Public Safety 115,548,081 121,633,245 121,314,588 128,041,061 Transportation 9,631,320 9,432,740 13,549,323 18,753,985 Engineering and Building Maintenance 20,512,818 21,746,206 23,225,041 13,568,597 Field Operations 35,481,049 34,104,747 34,630,016 33,872,292 Environmental Services 887,370 1,012,670 884,061 478,386 Culture and Recreation 33,898,349 33,774,639 32,351,034 44,112,299 Neighborhood Development 11,136,694 11,185,952 12,174,736 10,520,306 Economic Opportunity 5,838,078 4,664,906 4,867,034 5,668,759 Interest, Fees on Long Term Debt 7,055,137 7,313,978 6,495,185 6,989,949

Total Governmental Activities Expenses 267,220,177 271,028,006 275,097,744 283,379,884

Business-Type Activities: Water Operations 34,439,616 39,505,203 43,318,389 41,577,441 Sewer Operations 38,116,445 39,197,428 44,255,951 41,528,772 Stormwater Management 8,500,088 8,888,164 9,844,091 8,852,832 Coliseum Operations 15,972,753 21,572,835 25,786,481 31,612,821 Solid Waste Management 17,495,893 15,735,600 18,052,042 13,915,642 Greensboro Transit Advisory Commission Parking Facilities 1,721,333 1,682,342 2,155,509 2,181,871 Total Business-Type Activities 116,246,128 126,581,572 143,412,463 139,669,379

Total Primary Government Expenses 383,466,305 397,609,578 418,510,207 423,049,263

Program Revenues Governmental Activities: Charges for Services: General Government 8,168,892 9,872,587 10,139,422 8,804,261 Public Safety 9,726,921 8,344,025 8,743,726 14,294,375 Transportation 804,257 915,180 1,172,160 1,504,580 Engineering and Building Maintenance 2,909,682 3,098,205 2,723,437 1,985,132 Field Operations 7,554,180 7,872,230 7,539,077 7,121,918 Environmental Services 55,629 420,276 42,000 47,000 Culture and Recreation 4,483,902 5,080,135 4,560,646 4,447,956 Neighborhood Development 799,981 1,185,892 1,504,758 Economic Opportunity 111,737 113,621 Operating Grants and Contributions 21,502,575 29,870,515 32,725,006 28,888,664 Capital Grants and Contributions 10,370,933 3,308,412 9,634,814 2,544,148

Total Governmental Activities Program Revenues 65,576,971 69,581,546 78,577,917 71,256,413

Business-Type Activities: Charges for Services: Water Operations 42,471,612 55,057,357 43,620,000 55,643,238 Sewer Operations 44,459,293 57,029,368 46,622,711 58,262,231 Stormwater Management 9,261,022 9,923,499 9,858,630 9,767,951 Coliseum Operations 11,092,666 18,108,379 20,155,776 18,376,930 Solid Waste Management 12,938,822 12,139,875 12,361,188 11,252,431 Parking Facilities 2,037,980 2,087,313 2,118,941 2,292,195 Operating Grants and Contributions Capital Grants and Contributions 3,301,816 2,129,700 2,503,904 15,192,795 Total Business-Type Activities Program Revenues 125,563,211 156,475,491 137,241,150 170,787,771

Total Primary Government Revenues 191,140,182 226,057,037 215,819,067 242,044,184

Net (Expense) Revenues Total Primary Government Net Expenses$ (192,326,123) $ (171,552,541) $ (202,691,140) $ (181,005,079)

-174- Table II Page 2 of 2

2014 2015 2016 2017 2018 2019

$ 25,382,641 $ 23,344,904 $ 24,891,783 $ 23,520,137 $ 25,624,860 $ 23,526,208 134,456,434 130,122,705 139,582,738 145,818,985 148,796,396 149,604,819 19,370,897 16,963,421 22,712,727 23,854,185 25,864,616 33,173,465 13,664,330 15,074,129 15,641,909 16,708,113 17,256,271 16,392,115 33,200,755 33,341,199 33,524,708 35,460,734 36,154,441 37,712,886 614,170 429,681 659,960 141,120 98,807 203,990 43,876,321 31,937,351 30,900,864 33,166,935 37,417,979 35,832,943 10,087,906 8,386,830 8,721,998 5,632,049 7,049,959 10,632,403 6,478,755 6,465,912 8,659,082 7,800,130 6,928,079 8,290,379 5,756,910 5,583,287 5,353,607 6,912,938 6,331,443 10,974,782

292,889,119 271,649,419 290,649,376 299,015,326 311,522,851 326,343,990

41,991,740 41,181,487 45,730,742 46,530,083 51,505,994 51,968,201 41,984,211 40,124,719 43,204,926 45,735,043 51,337,067 53,989,561 8,858,054 8,533,475 8,550,444 9,237,960 9,739,878 9,713,405 33,064,421 33,930,527 26,209,548 32,619,169 32,550,381 37,861,672 13,545,300 12,883,944 14,467,928 13,622,929 12,625,866 13,979,283 27,598,123 2,148,446 2,350,339 3,409,082 2,951,230 2,599,692 2,801,565 141,592,172 139,004,491 141,572,670 150,696,414 160,358,878 197,911,810

434,481,291 410,653,910 432,222,046 449,711,740 471,881,729 524,255,800

14,898,155 12,059,922 7,862,858 10,017,288 11,113,911 9,297,879 7,132,307 8,457,292 8,065,025 9,280,080 8,758,634 8,648,821 1,543,004 1,226,002 1,135,911 5,618,292 6,095,366 6,150,839 2,708,040 2,797,506 2,843,065 1,684,150 1,762,626 1,703,433 8,171,505 7,152,895 7,015,823 6,620,078 7,009,565 5,857,572 47,000 455,282 553,227 484,649 516,953 691,451 2,922,198 2,960,037 2,917,048 2,988,038 2,975,402 3,063,465 3,729,978 828,207 326,067 176,306 285,036 111,568 114,912 117,253 542,598 91,910 33,321 25,711,965 21,502,466 23,857,649 22,572,778 20,391,139 21,096,423 4,470,962 4,185,795 3,938,283 18,647,295 13,028,560 6,563,624

71,446,682 61,740,316 58,632,209 78,631,552 72,029,102 63,106,828

45,649,201 50,021,520 52,190,551 54,216,578 56,950,061 58,090,821 50,222,296 54,120,793 56,328,824 58,784,050 61,130,021 62,688,768 9,798,287 9,815,623 9,591,310 9,686,669 10,011,215 9,897,486 16,626,162 28,495,534 18,163,472 23,582,188 23,938,373 29,687,289 12,140,403 11,493,834 13,391,867 12,616,110 10,669,680 12,618,701 3,039,357 1,912,451 2,010,212 2,380,774 2,399,536 2,838,356 3,237,112 4,419,941 13,444,955 3,309,769 4,386,946 7,538,237 4,086,812 9,930,461 149,793,755 159,267,285 156,433,744 168,823,368 169,624,518 193,609,936

221,240,437 221,007,601 215,065,953 247,454,920 241,653,620 256,716,764

$ (213,240,854) $ (189,646,309) $ (217,156,093) $ (202,256,820) $ (230,228,109) $ (267,539,036)

-175- Table III Page 1 of 2

Changes in Net Position General Revenues and Total Changes in Net Position Fiscal Years Ended June 30, 2010-2019 (Accrual Basis of Accounting)

Fiscal Year 2010 2011 2012 2013

Net (Expenses)/Revenue Total Primary Government Net Expense$ (192,326,123) $ (171,552,541) $ (202,691,140) $ (181,005,079)

General Revenues and Other Changes in Net Position Governmental Activities: Property Tax 146,133,091 144,937,075 146,527,315 148,636,779 Local Option Sales Tax 35,673,454 36,679,574 38,727,451 38,457,781 Vehicle Gross Receipts Tax 200,669 213,067 223,840 227,569 Motor Vehicle Tax Hotel/Motel Occupancy Tax 2,658,362 2,838,994 3,001,624 3,312,578 Electric Utility Sales Tax 8,493,396 8,837,828 9,060,321 9,623,955 Piped Natural Gas SalesTax 1,956,362 1,868,357 1,526,766 1,886,075 Telecommunications Sales Tax 8,105,412 7,877,205 7,586,286 7,273,612 Video Programming Services Tax Sales Tax Hold Harmless 1,180,020 1,410,317 814,646 257,782 Beer and Wine Tax 376,418 1,182,428 1,170,117 1,098,983 Payment in Lieu of Taxes 102,283 81,222 94,691 29,991 ABC Profit Distribution 2,541,608 2,442,997 2,923,942 3,252,345 Intergovernmental - unrestricted 165,718 126,648 96,312 81,353 Grants and Contributions-Non Program Specific Investment Income 4,091,457 1,958,935 2,011,101 658,701 Miscellaneous 1,104,183 873,218 837,424 514,596 Transfers In (Out) (4,329,757) (5,763,264) (4,350,491)

Total Governmental Activities 212,782,433 206,998,108 208,838,572 210,961,609

Business-Type Activities: Property Tax Motor Vehicle Tax Investment Income (Loss) 2,095,895 1,237,085 962,865 (530,689) Miscellaneous 1,595,969 1,729,210 948,322 1,151,083 Transfers In (Out) 4,329,757 5,763,264 4,350,491

Total Business-Type Activities 3,691,864 7,296,052 7,674,451 4,970,885

Total General Revenues and Transfers 216,474,297 214,294,160 216,513,023 215,932,494

Change in Net Position Total Primary Government $ 24,148,174 $ 42,741,619 $ 13,821,883 $ 34,927,415

-176- Table III Page 2 of 2

2014 2015 2016 2017 2018 2019

$ (213,240,854) $ (189,646,309) $ (217,156,093) $ (202,256,820) $ (230,228,109) $ (267,539,036)

152,715,416 151,609,854 154,143,618 156,027,395 164,208,659 167,269,868 40,520,689 44,713,374 47,442,711 50,242,614 52,624,601 56,704,224 255,204 281,644 317,027 336,941 346,464 382,624 1,034,859 3,476,532 3,868,549 3,905,980 4,075,208 4,240,379 4,684,823 9,867,248 15,902,993 16,894,306 16,177,281 16,333,362 17,360,679 1,966,696 1,307,704 952,353 1,028,488 1,323,996 1,252,904 7,001,819 6,909,748 6,175,654 6,163,499 5,819,636 5,419,150

329,297 1,203,143 1,329,004 1,235,242 1,280,233 1,231,566 1,245,218 135,502 86,280 106,660 109,759 526,660 3,076,125 3,412,322 3,634,041 3,773,528 3,850,646 4,530,893 72,968 70,796 53,983 53,405 54,817 48,817

2,843,048 2,225,932 2,436,909 1,445,671 1,767,665 7,891,005 905,792 2,263,036 1,155,859 1,453,642 1,177,178 1,022,419 (5,462,084) (6,040,011) (3,650,495) (14,855,691) (7,164,509) (19,296,216)

218,771,893 227,990,447 234,783,468 227,308,874 245,924,219 250,077,927

9,701,626 1,351,187 1,876,297 1,470,264 1,963,029 832,765 1,909,232 6,410,826 2,122,898 3,489,212 5,329,411 1,773,423 664,865 11,931,648 5,462,084 6,040,011 3,650,495 14,855,691 7,164,509 19,296,216

9,461,279 10,999,487 10,942,935 17,461,879 9,738,606 48,691,503

228,233,172 238,989,934 245,726,403 244,770,753 255,662,825 298,769,430

$ 14,992,318 $ 49,343,625 $ 28,570,310 $ 42,513,933 $ 25,434,716 $ 31,230,394

-177- Table IV Page 1 of 2

Fund Balances, Governmental Funds Fiscal Years Ended June 30, 2010-2019 (Modified Accrual Basis of Accounting)

Fiscal Year 2010, Restated 2011 2012 2013

General Fund Reserved Unreserved Non-Spendable$ 1,057,657 $ 1,143,729 $ 1,261,147 $ 1,242,391 Restricted 22,635,911 22,308,495 22,301,514 23,055,872 Committed Assigned 6,598,317 9,865,430 11,983,992 9,139,957 Unassigned 26,502,589 22,447,490 22,822,841 22,813,139 Total General Fund$ 56,794,474 $ 55,765,144 $ 58,369,494 $ 56,251,359

All Other Governmental Funds Reserved Unreserved, Reported In: Special Revenue Funds Capital Projects Funds Debt Service Funds Non-Spendable$ 5,364,955 $ 2,273,203 $ 2,311,914 $ 2,353,759 Restricted 37,917,333 52,065,605 31,702,933 26,922,844 Committed 2,856,673 3,482,666 3,872,082 Assigned 18,463,473 10,614,644 8,853,963 5,993,964 Unassigned (2,958,025) (5,047,393) (3,366,835) (8,301,225) Total All Other Governmental Funds$ 58,787,736 $ 62,762,732 $ 42,984,641 $ 30,841,424

Note: The City began to report restated fund balances for 2010 with the implementation of GASB Statement No. 54. The change in the classifications of fund balance is discussed in Management's Discussion and Analysis and the notes to the financial statements.

-178- Table IV Page 2 of 2

2014 2015 2016 2017 2018 2019

$ 1,154,837 $ 1,678,571 $ 1,200,738 $ 1,246,576 $ 1,217,719 $ 1,588,976 25,387,188 26,634,981 28,002,098 28,346,163 28,775,095 32,000,861 6,365,576 11,057,381 14,779,962 16,804,307 14,246,806 12,448,525 9,823,369 23,349,691 23,817,900 24,800,440 25,758,348 26,258,531 27,451,865 $ 60,949,097 $ 66,911,414 $ 77,173,159 $ 69,597,893 $ 68,699,870 $ 70,865,071

$ 2,397,853 $ 2,440,218 $ 2,482,021 $ 2,523,056 $ 2,577,191 $ 2,622,416 20,473,723 42,353,206 41,824,624 53,325,309 58,447,896 124,452,348 4,207,333 6,211,374 5,464,712 8,391,866 10,266,112 12,010,113 7,623,850 10,753,853 15,642,101 21,469,626 26,945,782 32,339,358 (6,752,220) (4,627,746) (7,473,122) (11,076,614) (6,531,197) (4,294,750) $ 27,950,539 $ 57,130,905 $ 57,940,336 $ 74,633,243 $ 91,705,784 $ 167,129,485

-179- Table V Page 1 of 2

Changes in Fund Balances, Governmental Funds Fiscal Years Ended June 30, 2010-2019 (Modified Accrual Basis of Accounting)

Fiscal Year 2010 2011 2012 2013

Revenues Taxes $ 184,224,700 $ 184,148,620 $ 187,893,049 $ 189,733,946 Assessments 152,466 141,068 16,669 12,537 Intergovernmental 52,735,531 56,630,157 58,929,767 52,386,356 Licenses and Permits 6,054,678 6,356,164 6,556,073 6,817,496 Fines and Forfeitures 968,660 1,553,735 1,474,556 1,977,484 Charges for Current Services 24,898,485 23,483,628 23,147,373 23,426,515 Investment Income 2,610,546 1,225,943 1,498,778 1,102,192 Miscellaneous 4,179,530 3,624,088 3,562,884 5,369,484 Total Revenues 275,824,596 277,163,403 283,079,149 280,826,010

Expenditures Current: General Government 23,119,333 24,031,524 23,187,727 18,342,235 Public Safety 115,330,430 113,829,736 113,392,924 120,265,097 Transportation 5,542,868 5,036,501 8,469,754 13,913,240 Engineering and Building Maintenance 19,917,509 21,024,528 21,837,270 12,730,254 Field Operations 35,458,081 34,080,164 34,605,433 33,845,352 Environmental Services 893,909 1,011,909 879,887 496,519 Culture and Recreation 31,208,104 30,890,582 28,977,862 28,665,340 Neighborhood Development 11,279,526 11,685,605 12,705,079 10,852,654 Economic Opportunity 5,952,251 4,692,662 4,794,271 5,522,475 Intergovernmental 1,700,955 1,703,911 1,632,793 1,701,822 Capital Outlay 17,795,361 22,002,797 20,117,422 20,805,722 Debt Service: Principal Retirement 19,659,424 19,941,595 19,350,990 18,321,092 Interest 6,102,910 6,126,685 6,639,669 7,173,100 Fees/Arbitrage Rebates 372,788 502,571 296,211 398,353 Total Expenditures 294,333,449 296,560,770 296,887,292 293,033,255

Excess of Revenues Over (Under) Expenditures (18,508,853) (19,397,367) (13,808,143) (12,207,245)

Other Financing Sources (Uses) Debt Issuances: General Obligation Bonds 3,745,000 49,505,000 10,000,000 General Obligation BANS 310,000 5,458,524 Limited Obligation Bonds/BANs Premium, (Discount) on Debt 900 4,826,862 152,180 Federal Loan Program 378,000 Loan Assumption Transfers In 27,150,808 29,051,887 32,675,924 31,986,892 Ban Retirement (3,745,000) Transfers Out (33,537,613) (35,116,087) (40,842,078) (39,499,523) Payment to Escrow Agent for Refunded Debt (17,843,191) Total Other Financing Sources (Uses) (2,640,905) 27,057,471 2,296,026 (2,054,107)

Net Change in Fund Balances $ (21,149,758) $ 7,660,104 $ (11,512,117) $ (14,261,352)

Debt Service as a Percentage of Noncapital Expenditures 9.33% 9.49% 9.39% 9.37%

-180- Table V Page 2 of 2

2014 2015 2016 2017 2018 2019

$ 198,282,125 $ 201,573,624 $ 206,582,259 $ 211,147,915 $ 221,901,851 $ 229,191,371 13,506 1,410 8,247 953 52,295,930 55,031,166 55,388,556 52,613,376 54,571,310 56,923,120 6,652,734 6,803,591 4,390,773 4,281,430 4,192,073 3,683,537 1,743,381 2,211,438 1,864,116 2,019,877 1,756,927 1,896,318 21,052,499 21,896,358 19,919,398 24,204,933 25,997,545 25,177,520 1,818,499 1,461,231 1,765,388 1,274,993 1,499,914 5,798,602 6,208,236 4,216,335 3,716,353 4,619,539 5,343,052 4,302,840 288,066,910 293,195,153 293,635,090 300,163,016 315,262,672 326,973,308

21,919,926 20,576,453 22,309,954 21,312,210 22,206,431 21,690,617 123,142,456 124,392,909 126,161,699 128,622,392 132,403,711 135,571,469 13,759,835 11,485,083 16,729,929 17,261,722 18,796,525 25,859,803 12,852,760 14,514,592 14,759,223 15,624,399 16,094,437 15,583,310 33,167,344 33,732,859 33,494,216 34,952,060 35,224,790 37,426,292 670,585 428,027 656,831 138,194 101,411 207,579 28,321,107 28,276,603 27,105,089 28,328,706 30,834,007 31,192,322 10,664,084 9,271,971 9,267,525 6,130,725 7,490,605 11,156,464 6,457,603 6,537,320 8,622,522 7,723,808 6,894,254 8,325,104 1,888,527 1,993,939 2,032,220 2,042,687 2,174,038 2,055,904 15,214,869 13,674,963 19,468,966 28,558,351 23,782,654 27,528,689

15,210,487 14,483,519 12,260,844 12,512,462 14,837,666 15,048,932 5,641,431 6,115,810 6,192,385 6,459,003 7,731,436 10,364,500 423,946 280,266 309,589 409,222 226,730 828,272 289,334,960 285,764,314 299,370,992 310,075,941 318,798,695 342,839,257

(1,268,050) 7,430,839 (5,735,902) (9,912,925) (3,536,023) (15,865,949)

19,500,000 62,590,000 147,119,042 2,990,718 10,644,645 17,387,644 37,474,308 32,124,607

5,335,000 24,450,000 1,057,318 10,265,798 26,760,000 2,561,270 1,587,051 10,276,032 41,668 11,455,963 566,690 3,578,000

28,042,605 30,522,384 32,660,368 32,497,178 36,974,598 33,445,794 (5,768,524) (37,515,829) (40,920,877) (40,677,877) (55,152,033) (51,791,232) (59,841,428) (6,735,337) (27,578,000) (72,555,141) (71,386,210) 3,074,903 2,283,203 10,427,453 25,396,142 17,349,641 93,454,851

$ 1,806,853 $ 9,714,042 $ 4,691,551 $ 15,483,217 $ 13,813,618 $ 77,588,902

7.61% 7.57% 6.59% 6.74% 7.65% 8.06%

-181- Table VI

Tax Revenues By Source, Governmental Funds (a) Fiscal Years Ended June 30, 2010-2019 (Modified Accrual Basis of Accounting)

Fiscal Local Rental Year Ad Valorem Option Hotel/Motel Vehicle Gross Ended Property Tax Sales Tax Occupancy Tax Receipts Tax Total

2010$ 145,692,215 $ 35,673,454 $ 2,658,362 $ 200,669 $ 184,224,700

2011 144,416,985 36,679,574 2,838,994 213,067 184,148,620

2012 145,940,134 38,727,451 3,001,624 223,840 187,893,049

2013 147,736,018 38,457,781 3,312,578 227,569 189,733,946

2014 154,029,700 40,520,689 3,476,532 255,204 198,282,125

2015 152,710,057 44,713,374 3,868,549 281,644 201,573,624

2016 154,916,541 47,442,711 3,905,980 317,027 206,582,259

2017 156,493,152 50,242,614 4,075,208 336,941 211,147,915

2018 164,690,407 52,624,601 4,240,379 346,464 221,901,851

2019 167,419,700 56,704,224 4,684,823 382,624 229,191,371

2010-2019 14.9% 59.0% 76.2% 90.7% 24.4%

Notes: (a) Includes General and Special Revenue Funds.

-182- Table VII

Analysis of Current Tax Levy For the Fiscal Year Ended June 30, 2019

Total Levy Property Excluding City - Wide Registered Registered Property Basic Total Motor Motor Valuation Rate Levy Vehicles Vehicles

Original Levy: Property taxed at current year's rate $ 28,172,265,613 $ 0.6325 $ 178,189,580 $ 163,877,283 $ 14,312,297 Vehicle fee 6,242,454 6,242,454 Business Improvement District .0800 717,284 701,860 15,424 Historic Districts .0500/.0100 38,009 36,057 1,952 Total 28,172,265,613 185,187,327 164,615,200 20,572,127

Discoveries Prior year taxes 151,140,184 Various 509,669 509,669 Total 151,140,184 509,669 509,669

Abatements 380,566,166 2,407,081 2,400,876 6,205

Total property valuation$ 27,942,839,631

Net levy 183,289,915 162,723,993 20,565,922

Uncollected taxes at June 30, 2019 1,248,849 1,197,214 51,635

Current year's taxes collected$ 182,041,066 $ 161,526,779 $ 20,514,287

Current levy collection percentage 99.32% 99.26% 99.75%

-183- Table VIII Page 1 of 2

Assessed Value and Estimated Actual Value of All Taxable Property Fiscal Years Ended June 30, 2010-2019

Fiscal Total Year Tax Real Personal Corporate Assessed Ended Year (b) Property Property Excess Value (a)

2010 2009$ 19,650,280,337 $ 4,156,861,685 $ 541,009,190 $ 24,348,151,212

2011 2010 19,741,417,184 3,958,200,231 520,167,824 24,219,785,239

2012 2011 19,878,341,347 4,071,363,605 506,765,998 24,456,470,950

2013 2012 19,870,291,980 4,275,378,062 515,306,095 24,660,976,137

2014 2013 19,933,608,147 4,967,852,010 521,626,023 25,423,086,180

2015 2014 20,085,442,933 4,635,287,567 552,000,244 25,272,730,744

2016 2015 20,261,492,234 4,791,348,871 617,692,366 25,670,533,471

2017 2016 20,485,403,901 4,953,350,708 637,062,943 26,075,817,552

2018 2017 21,906,898,824 4,928,328,300 671,031,499 27,506,258,623

2019 2018 22,161,110,873 5,093,648,459 688,080,299 27,942,839,631

(a) The City's property tax is levied each July 1 on the assessed value listed as of the prior January 1 for all real and personal property located within the City, other than motor vehicles. Assessed valuations are established by Guilford County at 100% of estimated market value for real property and 100% of actual value for personal property. Public service company (corporate excess) property is certified by the State of North Carolina at 100% of actual value, with no distinction between real and personal property values. Property taxes on registered motor vehicles are collected by the State of North Carolina at time of vehicle registration or within sixty days if the vehicle is purchased from a registered dealer. Collections are then remitted to Guilford County for subsequent distribution to the City.

(b) A revaluation of real property is required by North Carolina General Statutes at least every eight years. In February 2014 the Board of County Commissioners of Guilford County approved a change in revaluation cycle from eight to five years. The last revaluation was completed for tax year 2017, effective in FY2018. The next revaluation will occur in 2022.

(c) Total direct tax rate is a weighted average rate of all types of City of Greensboro tax rates, based on the applicable portion of the taxable property assessed.

-184- Table VIII Page 2 of 2

Total Estimated Direct Actual Tax Taxable Rate (c) Value

$.6350$ 24,348,151,212

.6325 24,219,785,239

.6325 24,456,470,950

.6325 24,660,976,137

.6325 25,423,086,180

.6325 25,272,730,744

.6325 25,670,533,471

.6325 26,075,817,552

.6325 27,506,258,623

.6325 27,942,839,631

-185-

Table IX

Direct and Overlapping Property Tax Rates Fiscal Years Ended June 30, 2010-2019

City of Greensboro Direct Rates Overlapping Rates Special Tax Districts Fiscal Housing Economic Total College Hill Dunleath Business Year General Transit Partnership Development Direct Historic Historic Improvement Guilford Ended Fund Fund Fund Fund Rate District District District County

2010 $.6000 $.0350 $ $ $.6350 $.0500 $.0500 $.0900 $.7374

2011 .5905 .0350 .0070 .6325 .0500 .0500 .0900 .7374

2012 .5918 .0337 .0070 .6325 .0100 .0500 .0900 .7824

2013 .5897 .0334 .0069 .0025 .6325 .0100 .0500 .0800 .7804

2014 .5872 .0334 .0069 .0050 .6325 .0100 .0500 .0800 .7700

2015 .5872 .0334 .0069 .0050 .6325 .0100 .0500 .0800 .7700

2016 .5872 .0334 .0069 .0050 .6325 .0100 .0500 .0800 .7600

2017 .5856 .0350 .0069 .0050 .6325 .0100 .0500 .0800 .7550

2018 .5856 .0350 .0069 .0050 .6325 .0100 .0500 .0800 .7305

2019 .5856 .0350 .0069 .0050 .6325 .0100 .0500 .0800 .7305

Tax Rate Limits: The Property Tax Rate for units of local government is limited to a combined rate of $1.50 per $100 of assessed value of property subject to taxation. This limit may be raised if approved by voter referendum. No limit is imposed on debt service.

Due Date for Current Taxes: September 1, other than taxes on motor vehicles which become due when vehicles are registered (per staggered monthly registration system). On July 1, 2013, the statewide Tag and Tax Together system began. This requires the taxpayer to pay property tax on a motor vehicle at the point of registration or to pay within sixty days if the vehicle is purchased from a registered dealer.

Date Taxes Become Delinquent: January 6

Penalty for Delinquent Taxes: On or after January 6, and before February 1, interest at the rate of 2% is added to the tax. On or after February 1, in addition to the 2%, interest at the rate of 3/4% per month shall be added to the tax.

Discounts Allowed: City of Greensboro - 1% of the tax levy for ad valorem tax paid prior to September 1. The Discount amounted to $1,014,268.76 for 2019. In FY 2015, Guilford County reduced their discount to 0.50%.

Procedures for Collecting Garnishment, levy, attachment and foreclosure. Delinquent Taxes:

Sources: City of Greensboro Adopted Budget Guilford County Adopted Budget

-186- Table X Page 1 of 2

Principal Property Taxpayers Fiscal Years Ended June 30, 2010-2019

2019 Percentage of Taxable Total City Type of Current Assessed Taxable Assessed Taxpayer Business Year's Tax Value Rank Value (a)

Proctor & Gamble Mfg. Co. Chemicals$ 1,898,013 $ 300,081,132 1 1.07% Koury Corporation Real Estate Development 1,814,999 286,956,308 2 1.03 Duke Energy Corporation Electric Utility 1,653,813 261,472,381 3 0.94 ITG Brands LLC Tobacco Manufacturing 1,445,129 228,478,906 4 0.82 Lincoln National Life Insurance Insurance 1,414,843 223,690,588 5 0.80 CBL, LLC Real Estate Development 1,056,606 167,052,400 6 0.60 Qorvo Inc (RF Micro Devices) Semiconductor Company 850,562 134,476,262 7 0.48 VF (Wrangler) Apparel Company 667,394 105,516,802 8 0.38 Colonial Pipeline Co. Petroleum Carrier 600,067 94,872,244 9 0.34 GGP Four Seasons LLC Real Estate Development 575,511 90,989,875 10 0.33 Wal-Mart Stores Inc. Retail 545,843 86,299,364 11 0.31 Highwoods/Forsyth Ltd. Real Estate Development 523,107 82,704,600 12 0.30 Time Warner Cable Southwest LLC Entertainment Service 488,469 77,228,244 13 0.28 TF Connectivity Ltd. (TYCO) Technology Company 452,377 71,522,043 14 0.26 AT & T (Bellsouth) Telecommunications 450,094 71,161,143 15 0.25 Harris-Teeter Food Distribution 436,082 68,945,710 16 0.25 Greensboro Auto Auction Auction Company 435,821 68,904,540 17 0.25 Evonik Stockhausen, Inc. Specialty Chemicals 419,104 66,261,507 18 0.24 Elite Street Capital Lincoln Green Real Estate Investment 406,964 64,342,129 19 0.23 Ecolab Inc. Energy Technology 384,195 60,742,347 20 0.22

Koury Ventures ltd. Real Estate Development Syngenta (Novartis, CIBA) Research & Development Piedmont Natural Gas Natural Gas Ultility

Totals $ 2,611,698,525 9.38%

(a) Total Fiscal Year 2019 Taxable Assessed Value is $27,942,839,631 (b) Total Fiscal Year 2010 Taxable Assessed Value was $24,348,151,212

Source: Guilford County Tax Department

-187- Table X Page 2 of 2

2010 Percentage of Total City Taxable Taxable Assessed Assessed Value Rank Value (b)

$ 178,521,431 6 0.73% 276,488,444 1 1.14 194,374,514 3 0.80 266,004,864 2 1.09 103,976,535 12 0.43 189,555,731 5 0.78 191,628,364 4 0.79 59,199,037 18 0.24 76,465,536 13 0.31 122,193,399 9 0.50 74,750,954 14 0.31 123,361,000 8 0.51 59,233,075 17 0.24 131,618,808 7 0.54 111,585,705 10 0.46 67,440,946 16 0.28

70,875,663 15 0.29

104,184,541 11 0.43 59,143,168 19 0.24 51,845,301 20 0.21

$ 2,512,447,016 10.32%

-188- Table XI Page 1 of 2

Property Tax Levies and Collections Fiscal Years Ended June 30, 2010-2019

Fiscal Collected within the Year Taxes Levied Total Fiscal Year of the Levy Ended for the Net Levy Adjusted Percentage June 30 Fiscal Year Adjustment Levy Collections of Levy

2010$ 157,226,655 $ (995,668) $ 156,230,987 $ 153,324,377 98.14%

2011 154,962,758 (116,763) 154,845,995 151,731,679 97.99

2012 156,403,718 (164,220) 156,239,498 152,776,019 97.78

2013 158,443,511 (738,194) 157,705,317 154,265,612 97.82

2014 163,806,514 (566,436) 163,240,078 161,437,040 98.90

2015 162,208,900 (173,783) 162,035,117 160,861,695 99.28

2016 164,585,165 (51,336) 164,533,829 163,405,988 99.31

2017 170,341,307 (112,377) 170,228,930 169,227,159 99.41

2018 180,055,588 (193,171) 179,862,417 178,976,217 99.51

2019 183,289,915 183,289,915 182,041,066 99.32

-189- Table XI Page 2 of 2

Collections Total Collections to Date in Subsequent Percentage Years Amount of Levy

$ 2,540,811 $ 155,865,188 99.77%

2,756,966 154,488,645 99.77

3,033,433 155,809,452 99.72

2,847,365 157,112,977 99.62

1,365,810 162,802,850 99.73

975,295 161,836,990 99.88

872,885 164,278,873 99.85

651,995 169,879,154 99.79

382,561 179,358,778 99.72

182,041,066 99.32

-190- Table XII Page 1 of 2

Ratios of Outstanding Debt by Type Fiscal Years Ended June 30, 2010-2019

Governmental Activities

General Limited Water and Sewer Fiscal Obligation Obligation Certificates of Capital Other Revenue Year Bonds/Notes (d) Bonds/Notes (d) Participation (d) Leases Financing Bonds/Notes (d) 2010$ 170,955,000 $ $ 11,275,000 $ 2,376,355 $ 25,601,861 $ 264,465,000

2011 188,895,000 15,405,000 1,777,016 22,339,960 249,465,000

2012 183,699,738 12,869,775 2,055,860 19,584,075 253,674,814

2013 173,760,300 12,027,243 11,351,761 3,487,101 13,831,838 239,313,214

2014 171,399,682 24,000,000 9,748,747 2,648,326 10,858,217 229,379,565

2015 168,839,802 26,037,051 6,585,733 2,626,029 9,919,195 234,128,086

2016 173,007,017 26,401,866 6,262,719 3,212,729 8,919,517 254,001,858

2017 198,400,449 35,955,161 5,929,705 15,045,445 7,824,678 260,600,590

2018 214,067,836 37,583,558 5,581,691 14,314,393 6,666,961 283,904,989

2019 302,656,417 56,616,702 13,577,742 5,432,400 292,310,262

(a) The City of Greensboro and Guilford County entered into an agreement on August 17, 1989 for the purpose of providing protection to existing and proposed water supplies. The source of funds for property acquisition is county bond proceeds with the city reimbursing the county on a semi-annual basis on a 50/50 share of the county bond debt service for the portion of funds used to protect the city's water supply. The outstanding watershed bonds mature from 2012 through 2018. Final Maturities were prepaid in FY 2015. (b) Assessed property values, reference Table VIII. (c) Population for 2009-10 based on City of Greensboro's Planning Department estimates, 2010-11 through 2012-13 based on North Carolina Office of State Budget and Management, thereafter based on U.S. Census Bureau. (d) Reported at par value outstanding prior to 2012 and net of related premiums, discounts and adjustments, thereafter. (e) Not available for current year.

Note: Details regarding the City's Outstanding Debt can be found in the Notes to the Financial Statements, pgs. 37y-37gg.

-191- Table XII Page 2 of 2

Business-Type Activities (cont.)

Percentage of Special Watershed Limited Actual Assessed Percentage of Obligation Bonds Protection Obligation Other Total Primary Value of Personal Per Capita (d) Bonds (a) Bonds Financing Government Property (b) Income (c) $ 10,825,000 $ 573,188 $$ 4,099,338 $ 490,170,742 2.0% 5.1% 1,885$

8,880,000 388,075 3,651,879 490,801,930 2.0% 5.3 1,817

5,454,827 204,203 3,188,454 480,731,746 2.0% 5.0 1,766

4,854,127 23,129 2,708,200 461,356,913 1.8% 4.5 1,665

4,228,427 18,351 13,710,214 465,991,529 1.8% 4.5 1,666

3,585,000 13,699,246 465,420,142 1.8% 4.4 1,647

2,930,000 13,304,533 488,040,239 1.9% 4.4 1,710

2,250,000 13,015,549 539,021,577 2.1 4.6 1,878

1,535,000 43,450,000 530,212 607,634,640 2.2 4.9 2,094

785,000 785,000 43,450,000 182,904 715,011,427 2.6 N/A (e) 2,426

-192- Table XIII Page 1 of 2

Ratio of Net General Obligation Bonded Debt To Assessed Value and Net General Obligation Debt Per Capita Fiscal Years Ended June 30, 2010-2019

General Bonded Debt Outstanding Less Amount Less Debt Total Fiscal General Obligation Available in Payable from Net Year Bonds/Notes Debt Service Water Resources Bonded Ended Debt (d) Fund and Other Revenues(c) Debt

2010$ 170,955,000 $ 10,727,344 $ 3,556,345 $ 156,671,311

2011 188,895,000 7,875,788 3,262,940 177,756,272

2012 183,699,738 7,237,496 3,142,172 173,320,070

2013 173,760,300 4,666,951 2,807,485 166,285,864

2014 171,399,682 4,902,876 2,462,193 164,034,613

2015 168,839,802 7,779,124 2,099,932 158,960,746

2016 173,007,017 10,694,605 1,719,996 160,592,416

2017 198,400,449 16,112,579 1,321,679 180,966,191

2018 214,067,836 22,943,898 903,566 190,220,372

2019 302,656,417 25,097,927 476,718 277,081,772

(a) Assessed valuation represents one hundred percent (100%) of estimated market value.

(b) Population for 2009-10 based on City of Greensboro's Planning Department estimates, 2010-11 through 2012-13 based on North Carolina Office of State Budget and Management, thereafter based on U.S. Census Bureau.

(c) Includes payments from the City's Technical Service Fund, an Internal Service Fund, relating to the 800 MHZ system purchased with G.O. Bonds in 1998. Internal Service Funds are included with the governmental activities in the Statement of Net Position. As of June 30, 2010, there was no remaining general obligation debt outstanding for the Water Resources Enterprise Fund.

(d) Reported at par value outstanding prior to 2012 and net of related premiums, discounts and adjustments, thereafter.

Note: Details regarding the City's Outstanding Debt can be found in the Notes to the Financial Statements, pgs. 37y-37gg.

-193- Table XIII Page 2 of 2

Actual Ratio of Net Net Assessed Bonded Debt To Bonded Value Assessed Debt Per of Property (a) Valuation Population(b) Capita

$ 24,348,151,212 0.7% 260,083 $ 602

24,219,785,239 0.7 270,063 658

24,456,470,950 0.7 272,190 637

24,660,976,137 0.7 277,080 600

25,423,086,180 0.6 279,639 587

25,272,730,744 0.6 282,558 563

25,670,533,471 0.6 285,344 563

26,075,817,552 0.7 287,019 631

27,506,258,623 0.7 290,201 655

27,942,839,631 1.0 294,722 940

-194-

Table XIV

Direct and Overlapping Governmental Activities Debt Fiscal Year Ended June 30, 2019

Estimated Share Percent of Direct and Bonded Debt Applicable Overlapping Governmental Unit Outstanding (b) To City (a) Debt

Direct Debt - City of Greensboro $ 359,273,119 100.00%$ 359,273,119

Overlapping Debt- Guilford County General Improvement Bonds 784,735,915 54.42% 427,053,285

Total Direct and Overlapping Debt$ 1,144,009,034 $ 786,326,404

(a) Percentage of Direct and Overlapping Debt is based on 6/30/19 Assessed Valuation of Guilford County as compared to the 6/30/19 Assessed Valuation of the City of Greensboro.

(b) Reported at par value outstanding, net of related premiums, discounts and adjustments.

-195- Table XV Page 1 of 2

Legal Debt Margin Information Fiscal Years Ended June 30, 2010-2019

Fiscal Year 2010 2011 2012 2013

Debt Limit$ 1,947,852,097 $ 1,937,582,819 $ 1,956,517,676 $ 1,972,878,091 Total Net Debt Applicable to Limit 424,210,158 408,374,842 386,236,037 379,688,772

Legal Debt Margin$ 1,523,641,939 $ 1,529,207,977 $ 1,570,281,639 $ 1,593,189,319

Legal Debt Margin as a Percentage of Debt Limit 78.22% 78.92% 80.26% 80.75%

(a) Under state finance law, the City's outstanding general obligation debt may not exceed 8 percent of total assessed property value. However, the City has established a more conservative internal limit of no more than 2 percent outstanding. By law,the general obligation debt subject to the limitation may be offset by amounts set aside for repaying general obligation bonds.

-196- Table XV Page 2 of 2

Legal Debt Margin Calculation for Fiscal Year 2019 Assessed Value$ 27,942,839,631 Debt Limit (8 % of assessed value) 2,235,427,170 (a) Debt Applicable to Limit: Bonds Authorized and Unissued 89,074,302 General Obligation Bonds 284,005,000 Other Long Term Debt 73,070,142 Less: Amount Set Aside For Repayment of General Obligation and Other Debt (33,702,761) Statutory Deductions: Water Utility - Total Net Debt Applicable to Limit 412,446,683 Legal Debt Margin$ 1,822,980,487

2014 2015 2016 2017 2018 2019

$ 2,033,846,894 $ 2,021,818,460 $ 2,053,642,678 $ 2,086,065,404 $ 2,200,500,690 $ 2,235,427,170 389,836,178 371,141,667 339,424,148 481,893,974 457,378,275 412,446,683

$ 1,644,010,716 $ 1,650,676,793 $ 1,714,218,530 $ 1,604,171,430 $ 1,743,122,415 $ 1,822,980,487

80.83% 81.64% 83.47% 76.90% 79.21% 81.55%

-197- Table XVI Page 1 of 2

Pledged Revenue Coverage Fiscal Years Ended June 30, 2010-2019

Water Resources Enterprise Fund (a) Fiscal Year Less Ended Gross Operating Net AvailableDebt Service Expenditures (e) Coverage June 30 Revenues(c) Expenses(d) Revenue Principal Interest Total (f)

2010$ 86,650,483 $ 48,248,298 $ 38,402,185 $ 8,470,000 $ 7,969,938 $ 16,439,938 2.34

2011 91,649,195 51,317,135 40,332,060 9,960,000 9,674,910 19,634,910 2.05

2012 89,165,280 52,808,830 36,356,450 8,825,000 8,797,162 17,622,162 2.06

2013 90,137,572 53,436,646 36,700,926 9,400,000 8,256,635 17,656,635 2.08

2014 94,065,880 52,225,483 41,840,397 8,225,000 7,697,524 15,922,524 2.63

2015 100,831,399 54,576,115 46,255,284 10,390,000 7,364,313 17,754,313 2.61

2016 107,510,348 59,641,631 47,868,717 12,470,000 7,411,881 19,881,881 2.41

2017 113,528,568 60,151,659 53,376,909 13,640,000 7,913,609 21,553,609 2.48

2018 118,696,607 65,966,936 52,729,671 14,295,000 9,160,931 23,455,931 2.25

2019 121,712,471 67,406,920 54,305,551 16,135,000 9,916,086 26,051,086 2.08

(a) The City issued Water and Sewer Revenue bonds in the amount of : $50,000,000 dated June 1995 (refunded in 2001 and 2005) $40,000,000 dated June 1998 (partially refunded in 2006 and 2009) $45,740,000 dated June 2001 (partially refunded in 2006) $43,435,000 dated July 2003 (partially refunded in 2006) $40,780,000 dated June 2005 (partially refunded in 2012) $48,040,000 dated June 2007 (partially refunded in 2015) $53,180,000 dated April 2009 (partially refunded in 2018) $29,310,000 dated February 2016 $64,700,000 dated August 2017 Portions of the 1998, 2001, 2003, 2005, 2007 and 2009 variable rate issues were refunded in August 2014.

(b) The City issued Landfill Special Obligation Bonds in the amount of $16,000,000 dated May 1997 and $8,400,000 dated November 2005. The 1997 bonds are matured.

(c) Gross revenues are for the combined Water Resources Enterprise Fund for the fiscal year.

(d) Operating expenses exclude depreciation and bond interest.

(e) Includes principal and interest of revenue bonds only.

(f) The most restrictive required coverage is 1.50.

(g) As defined in Articles 40 and 42 of the Sales Tax Act.

(h) The required coverage is 2.00.

-198- Table XVI Page 2 of 2

Solid Waste Management Fund (b) Sales Tax RevenueDebt Service Expenditures Coverage Pledged (g) Principal Interest Total (h)

$ 14,404,728 $ 1,875,000 $ 538,958 $ 2,413,958 5.97

14,766,660 1,945,000 375,826 2,320,826 6.36

15,632,609 2,010,000 289,460 2,299,460 6.80

15,468,649 575,000 250,700 825,700 18.73

16,308,065 600,000 227,700 827,700 19.70

18,065,312 625,000 195,617 820,617 22.01

18,820,580 655,000 170,516 825,516 22.80

20,185,006 680,000 143,667 823,667 24.51

21,135,944 715,000 109,521 824,521 25.63

22,777,547 750,000 73,625 823,625 27.66

-199-

Table XVII

Demographic and Economic Statistics 2010-2019

Total Personal Income Median Per Calendar (thousands of Household Capita Median School Unemployment Year Population(a) dollars) (b) Income(c) Income(d) Age(c) Enrollment(e) Rate(f)

2010 260,083$ 9,557,530 $ 44,743 $ 36,748 35 70,710 10.6%

2011 270,063 (g) 9,215,360 41,399 34,123 (h) 38 71,227 10.4%

2012 272,190 9,636,887 41,973 35,405 34 71,587 9.3

2013 277,080 10,153,597 41,987 (i) 36,645 36 72,603 8.0

2014 279,639 (c) 10,372,370 41,040 37,092 34 72,388 6.8

2015 282,558 10,675,606 40,827 37,782 35 72,191 6.4

2016 285,344 11,203,461 44,934 39,263 36 71,908 5.2

2017 287,019 11,671,054 45,064 (c) 40,663 34 71,747 5.0

2018 290,201 12,291,754 47,043 42,356 36 71,928 4.6

2019 294,722 (j) 45,787 (j) 36 71,698 4.6

(a) Greensboro Planning Department estimates.

(b) Calculated using Population and Per Capita Income totals.

(c) U.S. Census Bureau American Community Survey.

(d) Bureau of Economic Analysis (For Guilford County).

(e) Greensboro City and Guilford County Consolidated School System.

(f) US Department of Labor: Bureau of Labor Statistics.

(g) Source was changed in 2011 to North Carolina Office of Budget and Management.

(h) Source was changed in 2011 to U.S. Department of Commerce, Bureau of Economic Analysis (For Greensboro-High Point).

(i) Greensboro Economic Development Alliance.

(j) Information not available.

-200- Table XVIII Page 1 of 2

Principal Employers in the City and the Metropolitan Area June 30, 2019 and June 30, 2010

2019 Percentage of Product or Total Employer Service Employees Rank Employment

Cone Health Health Care 13,085 1 3.70% Guilford County School System Public Schools 9,177 2 2.59 US Postal Service Postal Service 3,500 3 0.99 City of Greensboro Local Government 2,949 4 0.83 Volvo Group Truck Manufacturing 2,600 5 0.73 University of North Carolina, Greensboro Education 2,430 6 0.69 Guilford County Government Local Government 2,428 7 0.69 HAECO (Timco Aviation) Aviation Products 2,200 8 0.62 Ralph Lauren* Apparel 2,097 9 0.59 Unifi, Inc. Textile Manufacturing 2,064 10 0.58 High Point Regional Health System * Health Care Bank of America (Nations Bank) Banking Services American Express, Inc. Financial Services TYCO Electronics (AMP, Inc.) Electronics

Totals 42,530 12.01%

Source: North Carolina Department of Commerce, The Triad Business Journal Employees presented are based on calendar years. The 2019 total is 354,124 The 2010 total is 260,083 * In Guilford County

-201- Table XVIII Page 2 of 2

2010 Percentage of Total Employees Rank Employment

7,278 2 2.80% 10,394 1 4.00 2,800 4 1.08 3,108 3 1.20

2,499 6 0.96 2,700 5 1.04

2,320 7 0.89 2,000 8 0.77 2,000 9 0.77 2,000 10 0.77

37,099 14.28%

-202-

Table XIX

Full-Time Equivalent City Government Employees by Function/Program Fiscal Years Ended June 30, 2010-2019

Fiscal Year

Function/Program 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

General Government 259 245 242 248 251 247 249 254 243 241 Public Safety 1,396 1,378 1,410 1,459 1,463 1,480 1,492 1,498 1,504 1,503 Transportation 77 80 77 77 77 75 74 73 74 72 Engineering and Building Maintenance 143 177 152 154 156 165 164 166 167 166 Field Operations 270 256 254 259 257 256 255 254 254 254 Environmental Services 17 17 16 11 11 11 11 11 11 11 Culture and Recreation 342 328 323 322 299 299 295 278 275 276 Neighborhood Development 30 32 27 27 24 25 25 41 38 27 Economic Opportunity 62 57 71 71 71 58 41 42 41 27 Water Operations 146 146 145 148 149 171 172 173 176 179 Sewer Operations 174 172 172 172 173 161 160 161 164 163 Stormwater Management 78 76 77 77 78 80 80 80 80 81 Coliseum Operations 69 69 70 73 73 74 75 78 81 87 Solid Waste Management (Disposal) 34 34 34 33 36 36 36 36 36 36 Parking Facilities 11 11 11 11 11 13 14 14 14 14

Total 3,108 3,078 3,081 3,142 3,129 3,151 3,143 3,159 3,158 3,137

Source: City Adopted Budget FY 2019-20

-203- Table XX Page 1 of 2

Operating Indicators by Function Fiscal Years Ended June 30, 2010-2019

Fiscal Year

Function 2010 2011(a) 2012 2013 2014 2015

General Government Development plans submitted 121 123 193 211 222 226 Zoning violations investigated(i) 1,533 2,026 2,389 2,389 1,975 2,722 Budget adjustments 302 297 287 287 250 236 (b) Water and sewer mains inspected 65,020 67,378 59,715 59,715 63,358 57,171 Work orders completed 12,823 11,831 11,164 11,202 12,248 12,089 Roadway footage inspected 43,725 67,810 208,315 171,464 226,158 139,987 Sidewalk footage inspected 14,034 5,956 223,146 218,423 118,099 162,730 (h) Payments/receipts processed 1,065,037 1,073,695 1,065,499 1,080,858 1,069,970 1,075,809 Employment applications processed 7,317 8,485 10,535 10,535 17,588 8,970 Public Safety (c) Police Response calls for service 126,596 146,830 142,524 125,579 126,402 118,386 Average patrol response time (all types) 13:37 9:49 9:40 10:42 9:01 9:49 Fire Total fire responses 1,058 1,197 1,128 1,037 1,056 1,079 Fire investigations conducted 290 255 267 267 300 204 Total responses 29,225 30,816 33,027 33,027 33,803 33,417 Transportation Total route miles 3.20 3.50 2.1 3.7 3.7 3.7 Number of passengers (millions) 4.1 4.6 4.7 4.8 4.7 4.5 Engineering and Inspections Inspections performed on closed dwellings/units ** 806 175 1,143 3,055 3,228 2,723 Inspections performed on Local Ordinance Enforcement * 9,824 3,738 17,296 17,372 17,783 15,657 Environmental Services Educational initiatives (per month) 886 925 950 965 975 985 Users of household hazardous waste disposal facility 17,839 19,500 21,000 21,008 20,423 19,903 Waste collected (pounds) 326,483 425,000 540,000 1,636,263 1,566,466 1,741,788 Water Operations Water customer accounts 100,997 101,544 102,116 102,637 103,051 103,563 Significant industrial users 35 35 35 35 35 35 (h) Meters read annually 1,272,051 1,250,816 1,245,139 1,243,448 1,235,484 1,243,572 Water meters 101,561 102,006 102,512 102,937 102,957 103,631 New connections 678 541 572 521 414 512 Water main breaks 134 140 130 132 252 327 Average water MGD treated daily(f) 27 26 25 24 23 24 Average daily consumption (millions of gallons) 32 34 34 34 32 33 Sewer Operations Average wastewater MGD treated daily 30 28 27 26 30 32 Coliseum Operations Total number of events 871 899 1,016 1,002 1,021 853 Total attendance (millions) 1.3 1.5 1.4 1.4 1.5 1.4 Aquatic Center Total number of events 100 124 128 127 Total attendance 120,884 153,675 148,914 149,574 Solid Waste Management Residential refuse collected (average tons per month) 5,330 5,128 5,039 4,977 4,561 4,555 Recyclables collected (average tons per month) 2,404 2,426 2,375 2,391 2,372 2,291 Yard waste collected (average tons per month) 1,239 1,297 1,238 1,171 1,265 1,103 (e) White goods collected (average items per month) 106 60 46 42 41 88 Phase II (tons processed per year) 46,914 43,906 42,710 37,337 37,337 36,613 Phase III (tons processed per year) 8,240 7,778 7,321 7,377 7,125 6,456 (g) Transfer Station (tons processed per year) 236,909 223,296 218,290 206,070 196,574 202,536 Compost Facility (tons processed per year) 16,100 30,735 31,623 27,921 32,229 29,657

(a) 2010 and 2011 column is an estimate based on the individual department's data. (b) As of FY2004, the water and sewer laterals inspected changed to water and sewer laterals footage inspected. (c) As of FY2003, the Police Department changed their reporting of response calls for service to include all calls where officers were dispatched. (d) Information not available. (e) As of FY2008, White Goods items are tracked by items and not tonnage. (f) The Average water MGD treated daily beginning in FY08 does not include purchased water from other cities. (g) Transfer Station began operations in September 2006. (h) During FY2009, the City moved from allowing Quarterly Billing to mandatory Monthly Billing which lead to an increase in payments processed. (i) FY2010, the increase in Zoning violations is due to a number of new ordinances being passed by City Council. * This is for minimum housing, nuisance, vehicles and zoning. ** This represents the number of reinspections performed on minimum housing cases. Sources: City Departments (Police, GTA, Planning, Water, Field Operations), Budget Documents and CAFR. -204- Table XX Page 2 of 2

Fiscal Year (cont.)

2016 2017 2018 2019

251 276 234 231 2,526 1,638 1,481 1,454 242 299 294 380 64,017 104,193 124,479 33,317 11,034 11,915 11,627 12,215 274,994 593,300 559,819 632,854 193,450 317,708 183,787 196,631 1,075,836 1,063,506 1,052,640 1,055,742 26,200 26,979 34,785 33,059

128,864 126,957 153,607 149,812 12:34 10:04 10:10 10:42

1,044 1,079 1,133 955 219 204 281 281 36,237 33,417 39,153 42,276

3.8 3.9 4.1 4.4 4.1 4.0 3.7 3.5

4,522 3,851 1,746 1,366 17,764 11,351 11,122 10,076

989 996 1,002 1,005 24,985 26,059 24,885 28,577 1,653,802 1,680,460 1,576,670 1,841,139

104,158 104,591 105,551 106,100 35 35 35 29 1,260,804 1,268,460 1,281,684 1,287,876 105,067 105,705 106,807 107,323 595 638 1,102 516 304 302 423 319 23 24 23 22 33 34 33 32

34 33 32 37

905 933 951 941 1.1 1.2 1.1 1.1

149 122 140 167 188,348 146,835 168,384 186,055

4,760 4,801 4,942 5,115 2,316 2,195 2,094 2,054 1,088 1,067 1,007 1,210 88 117 111 123 35,915 39,145 39,617 44,980 47,142 32,741 6,663 7,533 221,989 205,504 181,236 209,163 29,538 29,512 35,210 41,026

-205- Table XXI Page 1 of 2

Capital Asset Statistics by Function Fiscal Years Ended June 30, 2010-2019 Fiscal Year

Function 2010 2011(j) 2012 2013 2014 (a) General Government: Melvin Municipal Office Building (square footage) 131,475 131,475 131,475 131,475 131,475 Service Center (square footage) 156,757 156,757 156,757 156,757 156,757 Cone Building (square footage) 35,316 35,316 35,316 35,316 35,316 J. Edward Kitchen Operations Center (square footage) 119,000 119,000 119,000 119,000 119,000 Public Safety: (b) Police Stations 66677 District Offices 4 4 4 4 4 Patrol Units 280 349 292 239 239 (c) Fire Fire Stations 23 23 24 24 24 Fire Trucks 37 46 43 41 41 Auxiliary Response Vehicles 30 21 21 44 44 (d) Transportation: Streets (miles) 1,015 1,022 1,026 1,030 1,030 Highways (miles) 432 438 370 367 366 Sidewalks (miles) 443 453 475 475 490 Streetlights 25,561 25,698 25,812 25,920 26,083 Traffic signals 608 611 618 625 635 Metered Spaces 1,037 1,071 1,071 1,066 1,064 (e) Culture and Recreation: Libraries Main Building/Branches 7 6 6 7 7 Mobile Library - Reading Railroad 1 1 1 Parks and Recreation Parks, Open Spaces, Beautification Areas 491 492 492 490 490 Acres 6,068 6,186 6,186 5,527 5,527 Arboretum/ Bicentennial Garden/Bog Garden/Arts Center/Historical Tannenbaum Park 6 7 7 7 6 Camp for Special Populations/Recreation Centers/ Multicultural Center 13 12 12 12 12 Golf Courses 3 3 3 2 2 Tennis Courts 111 111 111 111 111 Swimming Pools 6 6 6 5 5 Ball Fields 96 96 96 96 96 Basketball Courts 45 45 45 45 45 Cemeteries 4 4 4 4 4 (i) Yard Waste Vehicles (f) Water Management: Peak consumption (millions of gallons) 42 46 42 44 40 Average Annual System Capacity (millions of gallons) 41 42 47 47 47 Public Water Main (miles) 1,469 1,479 1,479 1,481 1,486 (f) Sewer Management: Public Sanitary Sewer (miles) 1,400 1,404 1,407 1,408 1,410 Treatment Capacity (millions of gallons per day) 56 56 56 56 56 (f) Stormwater Management: Storm Sewer (miles) 1,042 1,056 1,073 1,094 1,107 Coliseum (Arena, Auditorium, Special (g) Events Center, Meeting Rooms): Arena Seating Capacity 23,500 23,500 23,500 23,500 21,800 Auditorium Seating Capacity 2,400 2,400 2,400 2,400 2,400 Special Events Center Capacity (with Mini-Arena) (in square feet) 167,000 167,000 167,000 167,000 167,000 ACC Hall of Champions (in square feet) 9,000 9,000 9,000 9,000 White Oak Amphitheatre (seating capacity) 7,688 7,688 7,688 7,688 Terrace (in square feet) 12,000 12,000 12,000 12,000 Aquatic Center Capacity (in square feet) 78,323 78,323 78,323 Aquatic Center Seating Capacity 2,500 2,500 2,500 Odeon Theatre Seating Capacity 302 302 302 Swarm Fieldhouse Seating Capacity Swarm Fieldhouse Capacity in square feet Solid Waste Management (h) Landfill 11111 (i) Solid Waste Vehicles 94 94 94 94 96 (d) Parking Facilities: Davie Street Parking Deck (number of spaces) 415 415 415 415 415 Greene Street Parking Deck (number of spaces) 706 706 706 706 706 Church Street Parking Deck (number of spaces) 417 417 417 417 417 Bellemeade Street Parking Deck (number of spaces) 1,276 1,276 1,276 1,276 1,276

(a) City of Greensboro Engineering Department (b) City of Greensboro Police Department (c) City of Greensboro Fire Department (d) City of Greensboro Transportation Department (e) City of Greensboro Library and Parks and Recreation Departments (f) City of Greensboro Water Resources Department (g) City of Greensboro Coliseum Department (h) City of Greensboro Environmental Services Department (i) City of Greensboro Financial & Administrative Services Department (j) 2011 column is an estimate based on the individual department's data. (k) Auditorium was removed for parking expansion project.

-206- Table XXI Page 2 of 2

Fiscal Year (cont)

2015 2016 2017 2018 2019

131,475 131,475 131,475 131,475 131,475 156,757 156,757 156,757 156,757 156,757 35,316 35,316 35,316 35,316 35,316 119,000 119,000 119,000 119,000 119,000

77666 44445 239 243 243 243 224

25 25 25 25 26 41 44 44 44 44 44 44 44 44 44

1,031 1,032 1,033 1,088 1,087 373 371 371 457 387 503 521 525 543 560 26,653 26,806 26,873 26,877 26,995 632 648 667 697 707 1,064 1,064 1,064 1,064 1,064

888814

491 491 342 351 399 5,538 5,538 10,743 11,160 8,555

66666

12 12 12 12 12 22222 111 111 111 111 91 55555 96 96 96 97 75 45 45 45 45 45 44444

42 44 43 42 43 47 47 47 47 47 1,490 1,494 1,503 1,510 1,511

1,416 1,416 1,424 1,434 1,420 56 56 56 56 56

1,194 1,233 1,260 1,276 1,238

21,800 21,800 21,800 21,800 21,800 (k) (k) (k) (k) (k)

167,000 167,000 167,000 167,000 167,000 9,000 9,000 9,000 9,000 9,000 7,688 7,688 7,688 7,688 7,688 12,000 12,000 12,000 12,000 12,000 78,323 78,323 78,323 78,323 78,323 2,500 2,500 2,500 2,500 2,500 302 302 302 302 302 2,200 2,200 2,200 2,200 40,000 40,000 40,000 40,000

11111 96 96 96 98 98

415 415 415 415 415 706 706 706 706 706 417 417 417 417 417 1,276 1,276 1,276 1,276 1,276

-207-

Single Audit Section

The Single Audit Section is established to comply with the Federal and State Single Audit Acts. These Acts establish audit requirements for state and local governments that receive federal and state financial assistance. It provides for independent audits of financial operations, including compliance with certain provisions of federal law and regulations. These requirements are established to ensure that audits are made on an organization-wide basis, rather than on a grant-by-grant basis. The accompanying financial statements are presented to reflect state and federal participation in various projects and programs, as adopted by the Greensboro City Council.

-208- Report of Independent Auditor on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards

To the Honorable Mayor and Members of the City Council City of Greensboro, North Carolina

We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the accompanying financial statements of the governmental activities, the business-type activities, the discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Greensboro, North Carolina (the “City”), as of and for the year ended June 30, 2019, and the related notes to the financial statements, which collectively comprises the City’s basic financial statements, and have issued our report thereon dated October 31, 2019. Our report includes a reference to other auditors who audited the financial statements of the City of Greensboro ABC Board (the “Board”), a discretely presented component unit, Greensboro Housing Development Partnership (the “Partnership”), a discretely presented component unit, and the Greensboro Center City Corporation (the “Corporation”), a blended component unit, as described in our report on the City’s financial statements. This report does not include the results of the other auditors’ testing of internal control over financial reporting or compliance and other matters that are reported separately by those auditors. The financial statements of the Board, the Partnership, and the Corporation were not audited in accordance with Government Auditing Standards.

Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (“internal control”) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the City’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

209 Compliance and Other Matters As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Raleigh, North Carolina October 31, 2019

210 Report of Independent Auditor on Compliance for Each Major Federal Program and on Internal Control over Compliance in Accordance with OMB Uniform Guidance and the State Single Audit Implementation Act

To the Honorable Mayor and Members of the City Council City of Greensboro, North Carolina

Report on Compliance for Each Major Federal Program We have audited the City of Greensboro, North Carolina (the “City”), compliance with the types of compliance requirements described in the OMB Compliance Supplement and the Audit Manual for Governmental Auditors in North Carolina, issued by the Local Government Commission, that could have a direct and material effect on each of the City’s major federal programs for the year ended June 30, 2019. The City’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs.

Our audit, described below, did not include the operations of the City of Greensboro ABC Board (the “Board”), a discretely presented component unit, the Greensboro Housing Development Partnership (the “Partnership”), a discretely presented component unit, and the Greensboro Center City Corporation (the “Corporation”), a blended component unit. Our audit, described below, did not include the operations of these component units since they were audited by other auditors.

Management’s Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its federal programs.

Auditor’s Responsibility Our responsibility is to express an opinion on compliance for each of the City’s major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”), and the State Single Audit Implementation Act. Those standards, the Uniform Guidance, and the State Single Audit Implementation Act require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the City’s compliance with those requirements and performing such other procedures, as we considered necessary in the circumstances.

We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of the City’s compliance.

Opinion on Each Major Federal Program In our opinion, the City complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2019.

211 Report on Internal Control over Compliance Management of the City is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the City’s internal control over compliance with the types of requirements that could have a direct and material effect on a major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing our opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control over compliance.

A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.

Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.

Raleigh, North Carolina October 31, 2019

212 Report of Independent Auditor on Compliance for Each Major State Program and Internal Control over Compliance in Accordance with Uniform Guidance and the State Single Audit Implementation Act

To the Honorable Mayor and Members of the City Council City of Greensboro, North Carolina

Report on Compliance for Each Major State Program We have audited the City of Greensboro, North Carolina (the “City”), compliance with the types of compliance requirements described in the Audit Manual for Governmental Auditors in North Carolina, issued by the Local Government Commission that could have a direct and material effect on each of the City’s major State programs for the year ended June 30, 2019. The City’s major State programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs.

Our audit, described below, did not include the operations of the City of Greensboro ABC Board (the “Board”), a discretely presented component unit, the Greensboro Housing Development Partnership (the “Partnership”), a discretely presented component unit, and the Greensboro Center City Corporation (the “Corporation”), a blended component unit. Our audit, described below, did not include the operations of these component units since they were audited by other auditors.

Management’s Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its state programs.

Auditor’s Responsibility Our responsibility is to express an opinion on compliance for each of the City’s major state programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; applicable sections of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”) as described in the Audit Manual for Governmental Auditors in North Carolina, and the State Single Audit Implementation Act. Those standards, the Uniform Guidance, and the State Single Audit Implementation Act require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major State program occurred. An audit includes examining, on a test basis, evidence about the City’s compliance with those requirements and performing such other procedures, as we considered necessary in the circumstances.

We believe that our audit provides a reasonable basis for our opinion on compliance for each major State program. However, our audit does not provide a legal determination on the City’s compliance.

Opinion on Each Major State Program In our opinion, the City complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major State programs for the year ended June 30, 2019.

213 Report on Internal Control over Compliance Management of the City is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the City’s internal control over compliance with the types of requirements that could have a direct and material effect on a major State program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing our opinion on compliance for each major State program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control over compliance.

A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a State program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a State program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance with a type of compliance requirement of a State program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.

Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.

Raleigh, North Carolina October 31, 2019

214 CITY OF GREENSBORO, NORTH CAROLINA SCHEDULE OF FINDINGS AND QUESTIONED COSTS

FOR THE YEAR ENDED JUNE 30, 2019

Section I. Summary of Auditor’s Results

Financial Statements

Type of report the auditor issued on whether the financial statements audited were prepared in accordance to U.S. GAAP: Unmodified

Internal control over financial reporting:

 Material weakness(es) identified? yes X no

 Significant Deficiency(s) identified that are not considered to be material weaknesses? yes X none reported

Noncompliance material to financial statements noted? yes X no

Federal Awards

Internal control over major federal programs:

 Material weakness(es) identified? yes X no

 Significant Deficiency(s) identified that are not considered to be material weaknesses? yes X none reported

Noncompliance material to federal awards? yes X no

Type of auditor’s report issued on compliance for major federal programs: Unmodified

Any audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a)? yes X no

Identification of major federal programs:

CFDA No. Name of Federal Program or Cluster 20.507, 20.526 Federal Transit Cluster 14.239 HOME Investment Partnership Program

Dollar threshold used to distinguish between Type A and Type B Programs: $ 816,468

Auditee qualified as low-risk auditee? X yes no

215 CITY OF GREENSBORO, NORTH CAROLINA SCHEDULE OF FINDINGS AND QUESTIONED COSTS

FOR THE YEAR ENDED JUNE 30, 2019

State Awards

Internal control over major State programs:

 Material weakness(es) identified? yes X no

 Significant Deficiency(s) identified that are not considered to be material weaknesses? yes X none reported

Noncompliance material to State awards? yes X no

Type of auditor’s report issued on compliance for major State programs: Unmodified

Any audit findings disclosed that are required to be reported in accordance with the State Single Audit Implementation Act yes X no

Identification of major State programs:

State Program Name Powell Bill

Section II. Financial Statement Findings

None reported.

Section III. Federal Award Findings and Questioned Costs

None reported.

Section IV. State Award Findings and Questioned Costs

None reported.

216 CITY OF GREENSBORO, NORTH CAROLINA CORRECTIVE ACTION PLAN

FOR THE YEAR ENDED JUNE 30, 2019

Section II. Financial Statement Findings

None reported.

Section III. Federal Award Findings and Questioned Costs

None reported.

Section IV. State Award Findings and Questioned Costs

None reported.

217 CITY OF GREENSBORO, NORTH CAROLINA SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS

FOR THE YEAR ENDED JUNE 30, 2019

None reported.

218 Federal Programs Schedule of Expenditures of Federal Awards For the Fiscal Year Ended June 30, 2019

CFDA Grant Passed Through Total Federal Federal Grantor/Pass-Through Grant or/Program Title Number Award Number to Subrecipients Expenditures

Department of Housing and Urban Development: CDBG Entitlement Grants Cluster: Community Development Block Grants 14.218 B-12-MC-37-0007 $ $ 13,398 Community Development Block Grants 14.218 B-13-MC-37-0007 636 Community Development Block Grants 14.218 B-14-MC-37-0007 289,721 Community Development Block Grants 14.218 B-15-MC-37-0007 172,421 Community Development Block Grants 14.218 B-16-MC-37-0007 202,674 Community Development Block Grants 14.218 B-17-MC-37-0007 181,845 Community Development Block Grants 14.218 B-18-MC-37-0007 1,311,830 Total CDBG Entitlement Grants Cluster 2,172,525

Home Investment Partnerships Program - 2004 14.239 M-04-DC-37-0206 4,275 Home Investment Partnerships Program - 2007 14.239 M-07-DC-37-0206 35,533 36,042 Home Investment Partnerships Program - 2009 14.239 M-09-DC-37-0206 1,361 1,361 Home Investment Partnerships Program - 2010 14.239 M-10-DC-37-0206 23,946 163,311 Home Investment Partnerships Program - 2011 14.239 M-11-DC-37-0206 206,582 Home Investment Partnerships Program - 2012 14.239 M-12-DC-37-0206 98,835 Home Investment Partnerships Program - 2013 14.239 M-13-DC-37-0206 1,249 172,888 Home Investment Partnerships Program - 2014 14.239 M-14-DC-37-0206 1,903 395,242 Home Investment Partnerships Program - 2015 14.239 M-15-DC-37-0206 45,913 258,808 Home Investment Partnerships Program - 2016 14.239 M-16-DC-37-0206 28,112 77,195 Home Investment Partnerships Program - 2017 14.239 M-17-DC-37-0206 18,819 Home Investment Partnerships Program - 2018 14.239 M-18-DC-37-0206 14,718 85,784 Emergency Solutions Grants Program - 2012 14.231 E-12-MC-37-0007 1,000 1,000 Emergency Solutions Grants Program - 2018 14.231 E-17-MC-37-0007 61,315 61,315 Emergency Solutions Grants Program - 2019 14.231 E-18-MC-37-0007 177,564 177,564 HOPWA - FY16-17 14.241 NCH16-F003 95,833 95,833 HOPWA - FY17-18 14.241 NCH17-F003 236,782 236,782 Lead Based Paint & Healthy Homes Grant - 2017 14.900 NCLHB064017 442,356 Total Other Community Development Programs 725,229 2,533,992

Office of Fair Housing & Equal Opportunity: Fair Housing Assistance Program 14.401 FF-204K-11-4013 10,723 Fair Housing Assistance Program 14.401 FF-204K-12-4013 13,572 Fair Housing Assistance Program 14.401 FF-204K-13-4013 45,555 Fair Housing Assistance Program 14.401 FF-204K-14-4013 1,256 Fair Housing Assistance Program 14.401 FF-204K-16-4013 1,925 Total Office of Fair Housing & Equal Opportunity 73,031

Total Department of Housing and Urban Development 725,229 4,779,548

Department of Justice: Office of Justice: Equitable Sharing Program 16.922 87,261 Public Safety Partnership and Community Policing Grants- Project Safe Neighborhoods 2016-2018 16.609 2016-GP-BX-0010 11,958 Crime Victim Assistance - GCC 17-19 Child Response 16.575 PROJ012236 133,281 NIJRED Project Grants - DNA Cold Case FY 14 16.560 2014-DN-BX-K076 10,755 Total Office of Justice-Direct $ $ 243,255

-219- Federal Programs Schedule of Expenditures of Federal Awards For the Fiscal Year Ended June 30, 2019

CFDA Grant Passed Through Total Federal Federal Grantor/Pass-Through Grant or/Program Title Number Award Number to Subrecipients Expenditures

Passed through NC Department of Crime Control and Public Safety and/or the City of High Point: Justice Assistance Grants Programs: Edward Byrne Justice Assistance Grant - 2017 16.738 2017-DJ-BX-0813 $ $ 60,215 Edward Byrne Justice Assistance Grant - Body Worn Cameras 16.835 2016-BC-BX-K050 842 Total Justice Assistance Grants Programs 61,057

Total Office of Justice 304,312

Total Department of Justice 304,312

Department of the Treasury: Equitable Sharing 21.016 2,401 Total Department of the Treasury 2,401

Department of Homeland Security: Passed through NC Department of Public Safety: Emergency Management: Metro Medical Response System 2003 97.XXX 233-01-0040 81,867 Homeland Security Grant Program 2017 97.067 EMW-2017-SS-00085-S01 30,000 Total Homeland Security 111,867

Total Passed through NC Department of Public Safety 111,867

Total Department of Homeland Security 111,867

Department of Labor: Employment Training Administration Workforce Innovation and Opportunity Act Cluster: WIOA Adult Program 2017 17.258 AA-30962-17-55-A-37 289,817 413,131 WIOA Adult Program 2018 17.258 AA-32191-18-55-A-37 584,866 884,479 WIOA Dislocated Worker 2017 17.278 AA-30962-17-55-A-37 200,000 442,497 WIOA Dislocated Worker 2018 17.278 AA-32191-18-55-A-37 282,956 387,551 WIOA Youth Activities 2017 17.259 AA-30962-17-55-A-37 295,561 357,519 WIOA Youth Activities 2018 17.259 AA-32191-18-55-A-37 566,979 662,329 2017 Administration Cost Pool 17.258 AA-30962-17-55-A-37 34,093 2017 Administration Cost Pool 17.259 AA-30962-17-55-A-37 29,504 2017 Administration Cost Pool 17.278 AA-30962-17-55-A-37 36,517 2018 Administration Cost Pool 17.258 AA-32191-18-55-A-37 167,645 2018 Administration Cost Pool 17.259 AA-32191-18-55-A-37 125,539 2018 Administration Cost Pool 17.278 AA-32191-18-55-A-37 73,457 2017 Finish Line 17.258 AA-30962-17-55-A-37 36,083 185,417 2016 Guilford WDB Marketing Fund 17.259 AA-28327-16-55-A-37 4,844 Guilford Bus Service 17.259 AA-30962-17-55-A-37 75,000 Infrastructure 17.259 AA-32191-18-55-A-37 178,186 Total Workforce Innovation and Opportunity Act Cluster: 2,256,262 4,057,708

Total Department of Labor $ 2,256,262 $ 4,057,708

-220-

Federal Programs Schedule of Expenditures of Federal Awards For the Fiscal Year Ended June 30, 2019

CFDA Grant Passed Through Total Federal Federal Grantor/Pass-Through Grant or/Program Title Number Award Number to Subrecipients Expenditures

Department of Transportation: Federal Transit Administration: Section 5303 Metro Planning - 2018-19 20.505 19-08-105 $ $ 137,227 Total Federal Transit Administration 137,227 Federal Transit Cluster: Section 5307 Operating Assistance - 2018-19 20.507 NC-2019-035-00 4,256,949 Section 5307 Grant - 2014 20.507 NC-90-X560-00 30,433 Section 5307 Capital & Operating FY17 20.507 NC-2018-007-00 93,149 Section 5307 Capital & Operating FY18 20.507 NC-2018-056-00 80,000 Section 5339 Bus Replacement FY16 20.526 NC-2017-008-00 33,807 Section 5339 Bus Replacement FY17 20.526 NC-2018-010-00 463,817 Section 5339b Bus Depot Renovation FY16 20.526 NC-2017-058-00 74,744 Section 5339c Low or No Emission Bus FY18 20.526 NC-2019-016-00 1,894,553 CMAQ FY16 20.507 NC-2017-040-01 13,335 CMAQ FY17 20.507 NC-2017-037-00 1,477,497 CMAQ FY18 20.507 NC-2018-009-00 3,854,000 Total Federal Transit Cluster 12,272,284 Transit Services Programs Cluster: Section 5310 Enhance Mobility - 2017 20.513 NC-2018-006-00 50,000 243,366 Transit Services Programs Cluster 50,000 243,366

Passed through NC Department of Transportation Highway Planning, Research and Construction Programs Cluster: State Planning & Research/PL 104(f) Funds 2019 20.205-5 WBS 47615.1.12/47616.1.5 452,108 Ballinger Road Bridge Replacement 20.205 B-5553 97,610 Sidewalk Construction EL-5101DJ 20.205 EL-5101DJ 886,644 Sidewalk Improvement EL-5101DL 20.205 EL-5101DL 76,813 Sidewalk Construction EL-5101DM 20.205 EL-5101DM 580,791 Greenway Project 20.205 EL-5101DO 13,750 Guilford College/New Garden Rd C-5555 20.205 C-5555 74,151 Sidewalk Project - NCDOT C-5555A 20.205 C-5555A 13,197 Lovett Street Sidewalk EB-5712 20.205 EB-5712 155,225 Farmington Sidewalk 20.205 EB-5877 17,712 Meadowview Sidewalk 20.205 EB-5878 75,577 Wendover Avenue Sidewalk 20.205 EB-5883 834 Streets Improvement U-5306A 20.205 U-5306-A 1,461,293 Streets Improvement U-5306B 20.205 U-5306-B 827,968 Streets Improvement U-5306C 20.205 U-5306-C 227,366 Aycock & Walker Pedestrian Improvement 20.205 U-5532 A 106,551 General Sidewalk Improvement U-5532D 20.205 U-5532 D 93,018 Total Highway Planning, Research and Construction Programs Cluster 5,160,608

Total Department of Transportation 17,813,485

Department of the Interior: Passed through NC Department of Cultural Resources: Office of Archives and History State Historic Preservation Office Federal Historic Preservation Fund Grant FY17 15.904 P17AF00047 10,000 Total Office of Archives and History State Historic Preservation Office 10,000

Total Department of Interior 10,000

Department of Agriculture: USDA Local Food Promotion Program 10.172 16LFPPNC0019 136,280 136,280 Total Department of Agriculture 136,280 136,280

Total Federal Financial Assistance $ 3,117,771 $ 27,215,601

-221- State Programs Schedule of Expenditures of State Awards For the Fiscal Year Ended June 30, 2019

CFDA Grant Total State State Grantor/Program Title Number Award Number Expenditures

Department of Cultural and Natural Resources: Office of Arts and Libraries: State Aid to Public Libraries $ 334,667 Total Office of Arts and Libraries 334,667

Total Department of Cultural and Natural Resources 334,667

Department of Environmental Quality: Clean Water - S Buffalo Habitat Enhancement Phase IV 169,826 Total Department of Environmental Quality 169,826

Passed through the Community Foundation of Greater Greensboro Eastern Triad Workforce Initiative 59,334 Total Community Foundation of Greater Greensboro 59,334

Department of Public Safety: Division of Emergency Management: Regional Hazardous Materials Response Team - 2018-19 RRT 5 - 2019 68,739 Total Division of Emergency Management 68,739

Total Department of Public Safety 68,739

Department of Transportation: Federal Transit Administration: Metropolitan Transportation Planning and State and Non-Metropolitan Planning and Research: Section 5303 Metro Planning - 2018-19 20.505 19-08-105 17,153 Total Federal Transit Administration 17,153

Federal Transit Cluster: CMAQ Bus Replacement FY16 20.507 NC-2017-040-00; 19-SM-219B 69,081 CMAQ Bus Replacement FY17 20.507 NC-2017-037-00; 19-SM-219C 121,676 CMAQ Bus Replacement FY18 20.507 NC-2018-009-00; 19-UM-105B 317,388 Section 5339 Bus Replacement FY17 20.507 NC-2018-010-00; 19-SM-219A 38,337 Total Federal Transit Cluster 546,482

Highway Planning, Research and Construction Cluster: Street Improvement U-5306-A 20.205 U-5306-A 365,323 Street Improvement U-5306-B 20.205 U-5306-B 206,992 Street Improvement U-5306-C 20.205 U-5306-C 56,841 Intersection Improvement U-5326 20.205 U-5326 727,026 Total Highway Planning, Research and Construction Cluster 1,356,182

Department of Transportation - Miscellaneous: State Maintenance Assistance Program Funds 162,992 Advanced Technology Grant FY19 19-AT-105 167,111 NCDOT Rail Division Grant FY15 01-ST-001; WSB 34309.2.1 113,524 Total Department of Transportation- Miscellaneous 443,627

Powell Bill: 2018 Allocation 3,744,250 2019 Allocation 3,671,333 Total Powell Bill 7,415,583

Total Department of Transportation 9,779,027

Total State Financial Assistance $ 10,411,593

-222- Notes to the Schedule of Expenditures of Federal and State Awards For the Fiscal Year Ended June 30, 2019

Note 1. Basis of Presentation

The accompanying schedule of expenditures of federal and State awards (SEFSA) includes the federal and State grant activity of the City of Greensboro under the programs of the federal government and the State of North Carolina for the year ended June 30, 2019. The information in this SEFSA is presented in accordance with the requirements of Title 2 US Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards and the State Single Audit Implementation Act. Because the Schedule presents only a selected portion of the operations of the City of Greensboro, it is not intended to and does not present the financial position, changes in net position, or cash flows of the City of Greensboro

Note 2. Summary of Significant Accounting Policies

Expenditures reported in the SEFSA are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.

The City of Greensboro has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.

-223-

Office of the City Manager City of Greensboro Post Office Box 3136 Greensboro NC 27402-3136 336-373-2002

Office of Financial & Administrative Services City of Greensboro Post Office Box 3136 Greensboro NC 27402-3136

of Greensboro 336-373-2077 Y Cit