CAFR 2016

XIV

Company, Preyer Brewing, Pig Pounder and Joymongers. Established craft brewery, Natty Greene’s, is

increasing its capacity by 50 percent with plans to create a larger footprint in neighboring states. The

company is increasing its brewing capacity to 30,000 barrels annually, setting its sights on the 200,000 barrel

mark with the planned investment of $14.25 million for a new production brewery and restaurant at

Revolution Mill in Greensboro. 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. To meet the

increased demand for craft beers offered by bars and restaurants, local distributor R.H. Barringer began a

planned $5 million dollar expansion of its Greensboro facility to increase its craft cooler space.

FY 2016 General Fund revenues are reported at 101.6% of budgeted amounts with 96.5% of budgeted

expenditures spent. The $6.5 million General Fund fund balance appropriation was not used. The fund

balance policy target of 9% of the subsequent General Fund budget was maintained ($24.8 million) and

excess amounts above this target increased the General Fund reserve for capital projects from $10 million to

$10.1 million, the City’s additional target level. This amount is recorded directly within the General Fund

accounts. Significant revenue improvements were noted in recorded local option sales tax and utility sales tax

receipts in FY 2016. Property tax collections were 99.28% 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 new motor vehicle property tax

system implemented by the State of North Carolina 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. In addition, cost containments allowed for new facilities to staff up, including six firefighter

positions, with no increase in the property tax rate of 63.25 cents. A revenue loss of approximately $3 million

due to certain state legislative changes which eliminated the authority for municipal entities to assess a

business privilege license tax, was absorbed within the FY 2016 budget, partially offset by service reductions

and lower estimated fuel costs, as well as growth in certain revenue streams.

The budgeted City-wide tax rate for FY 2017 remained the same at 63.25 cents per $100 assessed valuation.

The General Fund budget of $275.6 million was adopted, reducing the tax allocation from 58.72 cents in the

previous year to 58.56 cents. Another 0.69 cents is recorded directly in the Housing Partnership Fund and

0.50 cents is recorded in the Economic Development Fund to support those purposes. Additionally, a transit

tax of 3.50 cents was levied for the public transit system.

Approximately 15 net new full-time equivalent

(FTE) positions were added from FY 2016 to FY 2017. This includes an increase of 6 positions in the Fire

department, 2 positions in Water Resources, 4 for various service demands in General Government and

Community Services areas, and 3.25 FTE positions for the Coliseum.

The property tax base for FY 2017 is

estimated at $26.1 billion and is expected to be higher than the prior year by 1.5%.

Sales tax revenues, including revenue from the rental vehicle gross receipts, are projected to increase by

approximately

4-5% in FY 2017. State collected local revenues, including the Electric Utility Sales Tax,

Piped Natural Gas Sales Tax and Beer and Wine Taxes, are projected to increase 2.2%. Water and sewer

system rates increased 4.5% for all residents, effective July 1, 2016 to help fund significant water and

wastewater system improvements due to regulatory requirements and other infrastructure needs. The

Randleman Dam pumped water to the City for the first time in October 2010, through a newly installed 30-

inch feeder main from the Randleman plant; 6.4 million gallons per day (MGD) are received on average from

this source, securing the City’s future water supply, with up to 7.83 MGD authorized.

The State of North Carolina adopted certain other Tax Reform measures, most of which went into effect

beginning July 1, 2015

and are not considered to have a significant impact on the City’s future revenues.