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Derivative Instrument Summary
At June 30, 2016 the City had the following hedging derivative instrument outstanding:
Notional
Effective Maturity
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
38,736
$
5,700,000
$
10/8/2002 4/1/2020
Debt
(566,943)
$
rate swaps, receive
Outflow
variable rate
Changes in Fair Value
Fair Value at 6/30/16
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, 2016 amounted to $14,227,584 of which
$12,078,438 relates to Governmental Activities and $2,149,146 relates to Business-Type Activities. Changes in accumulated
annual leave are as follows:
Balance
Balance
Due Within
Fund Type
7/1/2015
Increase
Decrease
6/30/2016
One Year
Governmental Activities
11,924,776
$
7,947,777
$
(7,794,115)
$
12,078,438
$
7,159,777
$
Business-Type Activities
2,016,160
1,729,378
(1,596,392)
2,149,146
1,331,237
13,940,936
$
9,677,155
$
(9,390,507)
$
14,227,584
$
8,491,014
$
Current Year
Greensboro ABC Board employees may accumulate up to 20 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, 2016. GTA leave liability is $47,364.
City employees had accumulated sick leave benefits of $58,631,463 at June 30, 2016, 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.