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38ll
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, 2016 totaled $1,314,946. Future lease payments are as follows:
Lease
Fiscal Year
Payments
2016-17
1,241,430
$
2017-18
980,027
2018-19
455,493
2,676,950
$
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 $77,919,061, net of
amortization of $10,330,972 as of June 30,
2016. The City contributed annual member dues in the amount of $882,023 in
FY 2016 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 6.4 million gallons per day from this source. In 2016 the water plant expanded capacity from
12 Million Gallons per Day (MGD) to 14.03 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 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 2216 West Meadowview Road, Greensboro, North Carolina.
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 2015-16, the City levied