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Table B-1
Change in Net Position– Business-Type Activities
(in thousands of dollars
)
EnterpriseActivities
2016
2015
2016
2015
Water Resources
$47,716
$49,312
$24,258
$26,486
Stormwater Management
2,404
4,610
625
2,790
War Memorial Coliseum
3,614
3,920
671
1,092
SolidWasteManagement
1,630
1,311
1,078
882
Parking Facilities
(28)
633
(615)
54
Total
$55,336
$59,786
$26,017
$31,304
Change inNet Position
Change inNet Position
Before
Depreciation/Amortization
After Depreciation/
Amortization*
*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 $104,611,382 compared to $97,833,908 for the preceding
year, an increase of 6.9%. Operating expenses (excluding depreciation) increased by 15% and
totaled $59,835,012 as compared to $51,924,444 for the preceding year. On July 1, 2015, water
and sewer rates for average residential customers increased by 5.5% for customers inside the City
and 8% for those residing outside the City limits, largely causing the improved revenue results.
On July 1, 2016, water and sewer rates were increased again, up 4.5% for customers inside the
City and those residing outside the City limits, expected to generate approximately $4.6 million in
additional revenues in FY 2017, 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 2.4x as of June 30, 2016.
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 $580 million in planned capital expenditures over the next ten year period. Ongoing
system improvements are expected and are included in our long-range planning, however,
management projects that within the next five years, certain of the major improvements will be
completed ($95 million nitrogen removal project, $63 million for the Osborne Wastewater
Treatment Plant capacity upgrade and $97.6 million for a system wide Sanitary Sewer and Water
Line Rehabilitation) and pay-go funding, which is expected to be more than 50%, 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
$7.9 million available in the restricted assets total of the Water Resources Fund as of June 30,
2016. 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 12 MGD Water Treatment Plant (expandable to 48 MGD) which began
pumping treated water to Greensboro in early October 2010. Approximately $2.4 million was
paid to PTRWA in FY2016 for current water purchases from this supply. Greensboro has
acquired certain water rights in this project, along with five other governmental units. Due to