FY 14-15 Adopted Budget

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North Carolina Greensboro

ADOPTED budget 2014-2015 • Projected budget 2015-2016

Adopted Budget 2014-15 Projected Budget 2015-16

Mayor Nancy Vaughan Mayor Pro Tem Yvonne Johnson City Council Marikay Abuzuaiter Mike Barber Jamal Fox

Sharon Hightower Nancy Hoffmann Zack Matheny Tony Wilkins

City Manager Jim Westmoreland Budget and Evaluation Larry M. Davis, Director Louise Britt Steven Buter Haywood Cloud Jon Decker Karen Kixmiller Jason Martin Mickey Sloan Andrea Turner Cover Photo “Gateway of the Open Book”

The Downtown Greenway’s Motion Cornerstone “Gateway of the Open Book,” installed in 2012 at the intersection of Freeman Mill Road and West Lee Street, is made of stainless steel, with parts of it coated in three additional colors. Its appearance changes with the weather and with the time of day, and objects within the framework will rearrange themselves, depending on where the viewer stands. The structure includes seating, allowing viewers to look up into it—and it is lit at night. Greensboro artist Frank Russell worked with students at Jones Elementary School to find or create the objects that are embedded in the stainless steel framework.

TABLE OF CONTENTS

Introduction Introduction .................................................................................................................................... 1 Budget Process.............................................................................................................................. 2 City Manager’s Budget Message.................................................................................................... 4 Budget Financial Policies ............................................................................................................... 7 Budget Summaries Total Budget - Expenditures........................................................................................................... 9 Total Budget - Revenues.............................................................................................................. 13 Total Budget - Property Tax Rate................................................................................................. 17 Total Budget - Position Changes.................................................................................................. 18 Fund Summary Total Budget................................................................................................................................. 21 General Fund ............................................................................................................................... 24 General Fund Expenditure Highlights........................................................................................... 26 General Fund Revenue Highlights ............................................................................................... 27 Community Services Community Services Summary .................................................................................................... 29 Cemeteries Fund.......................................................................................................................... 31 Community Development Block Grant Fund................................................................................. 32 HOME Investment Fund............................................................................................................... 34 Hotel/Motel Occupancy Tax Fund ................................................................................................ 35 Human Relations.......................................................................................................................... 36 Libraries ....................................................................................................................................... 38 Neighborhood Development......................................................................................................... 40 Non-Departmental Community Services ...................................................................................... 41 Nussbaum Housing Partnership Revolving Fund ......................................................................... 42 Parks and Recreation................................................................................................................... 44 General Government General Government Summary.................................................................................................... 47 Budget and Evaluation ................................................................................................................. 49 Economic Development and Business Support............................................................................ 50 Economic Development Fund ...................................................................................................... 51 Equipment Services Fund ............................................................................................................ 52 Executive ..................................................................................................................................... 54 Financial and Administrative Services .......................................................................................... 56 Graphic Services Fund................................................................................................................. 58 Human Resources ....................................................................................................................... 59 Information Technology................................................................................................................ 61 Legal ............................................................................................................................................ 64 Legislative .................................................................................................................................... 65 Network Services/Telecommunications........................................................................................ 66 Non-Departmental General Government...................................................................................... 68 Risk Retention Funds................................................................................................................... 69 Workforce Development .............................................................................................................. 70

Infrastructure Infrastructure Summary................................................................................................................ 73 Engineering & Inspections............................................................................................................ 75 Field Operations........................................................................................................................... 78 Greensboro Transit Authority ....................................................................................................... 81 Municipal Service Districts Fund .................................................................................................. 84 Non-Departmental Infrastructure .................................................................................................. 85 Parking Fund................................................................................................................................ 86 Planning....................................................................................................................................... 88 Solid Waste Management Fund ................................................................................................... 90 State Highway Allocation (Powell Bill) Fund ................................................................................. 92 Stormwater Management Fund .................................................................................................... 93 Street and Sidewalk Revolving Fund............................................................................................ 95 Transportation.............................................................................................................................. 96 War Memorial Coliseum Complex ................................................................................................ 98 Water Resources Fund ............................................................................................................... 100 Public Safety Public Safety Summary ............................................................................................................... 105 Fire ............................................................................................................................................. 106 Police .......................................................................................................................................... 109 Emergency Telephone System Fund .......................................................................................... 112 Metro Communications ............................................................................................................... 114 Technical Services Fund ............................................................................................................. 116 Non-Departmental Public Safety ................................................................................................. 117 Debt Service & Capital Improvements Program Debt Service Fund ...................................................................................................................... 119 Capital Leasing Fund .................................................................................................................. 124 Capital Improvements Program................................................................................................... 125 Supplemental Information Glossary...................................................................................................................................... 131 Budget Ordinance ....................................................................................................................... 135 City Directory .............................................................................................................................. 140

Honorable Mayor and Members of City Council City of Greensboro Ladies and Gentlemen:

I am pleased to provide you with a copy of the 2014-15 Annual Budget and 2015-16 Projected Budget. This document was prepared by the City's Budget and Evaluation Department and represents a comprehensive publication of the City's budget plans and policies for the upcoming fiscal year. The document also includes a second year planning budget that gives us the opportunity to continue planning for and implementing the strategies necessary to meet the future needs of our community. The Recommended 2014-15 Budget was presented to Council on May 20, 2014 and both hard copy and electronic versions were available for public review. The Council held a preliminary work session in April, additional work sessions in May and June, and a public hearing on the proposed budget in June before acting on the budget. A series of council district based community meetings were also held to encourage the community to participate in the budget development process. City Council adopted the 2014-15 Annual Net Budget, totaling $472,739,699 on June 17, 2014. The Adopted FY 13-14 General Fund budget of $259,441,018 is 2.4% higher than the revised FY 13-14 General Fund budget. The budget includes full year’s funding for the Reedy Fork Fire Station, the Griffin Recreation Center and the McNairy Branch Library, all scheduled to open early in FY 14-15. The budget also includes funding for an additional Fire Department engine company that will be allocated to East Greensboro. A number of program and position reductions were enacted as part of this budget to help maintain the total tax rate at 63.25 cents, the same as FY 13-14. Over $2 million in program reductions were included in the General Fund budget adopted by City Council. The 2014-15 and 2015-16 budget columns in this document, as well as the narrative, reflect the budget as adopted by Council with changes made during the Council deliberations. The Manager's Message, however, is included as it was presented with the Recommended Budget. On behalf of the employees of the City, I thank you for your continued leadership and support of our efforts to meet your priorities in the delivery of high quality services to the Greensboro community. Respectfully,

Jim Westmoreland City Manager

PO Box 3136 

Greensboro, NC 27402-3136 

www.greensboro-nc.gov 

336-373-CITY (2489) 

TTY # 333-6930

640

INTRODUCTION

FY 14-15

INTRODUCTION

The City of Greensboro Budget contains the City Manager's budget message, a description of the budget process, a total budget summary section and fund summary section, a capital improvements and debt service fund section, supplemental information and funding information for the four result areas: Community Services, General Government, Infrastructure and Public Safety. The City of Greensboro Budget is designed to highlight and emphasize result areas and programs, providing descriptions, objectives and summary costs for major activities. The budget is developed in conjunction with the MAP (Management, Accountability, Performance) process, which requires the revision and maintenance of organizational priorities so that they may remain consistent with the challenges this organization will face during the two years immediately following budget adoption. The City Manager's budget message summarizes the major issues facing the City of Greensboro and the budget impact on the tax rate and existing service levels. (Note: The Manager’s Message refers to the budget as originally submitted by the City Manager for City Council’s consideration). The budget summary section contains budget appropriations and revenues in table and graphic form. Significant changes in funding levels and revenue sources, as well as changes in the property tax rate and in full-time positions, are detailed in the summary section. The fund summary section explains various fund categories and lists expenditures for each fund from actual expenditures in FY 2012-2013 through projections for FY 2015-2016.

Each result area contains associated organizational units (departments or divisions) and a description of major programs and activities under those units. Included in this description are a listing of key performance objectives and associated performance measures; a summary of appropriations by the three major expenditure categories (Personnel Costs, Maintenance & Operations and Capital Outlay) and a summary of major revenues from actuals in FY 12-13 to projections for FY 15-16. Also included is a summary of total positions since FY 13-14; and budget highlights, including explanations of increases or decreases in appropriations. The Capital Improvements/Debt Service section explains the relationship between the annually adopted six-year Capital Improvements Program and the Annual Budget including the impacts of capital projects on the operating budget. This section also contains information on the Debt Service Fund and annual debt service requirements. The information in the document was prepared by the City of Greensboro Budget and Evaluation Department. For additional information you may contact: Larry Davis Budget and Evaluation Director P. O. Box 3136, Greensboro, NC 27402-3136 (336) 373-2291 www.greensboro-nc.gov/budget/

Adopted FY 2014-15 Budget

BUDGET PROCESS

accounting basis. The City of Greensboro Budget is developed by accounts which relate to the City's financial accounting system in accordance with generally accepted accounting principles (GAAP). Government resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The accounts of the City are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures or expenses, as appropriate. Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability is incurred. Budget expenditures are controlled through the City's accounting system and the purchase order system. Departments have flexibility in divisional expenditures within major categories, such as maintenance and operations expenditures. All encumbrances on the accounting system on June 30 automatically carry over into the next year's budget cycle. During the year, budget adjustments between divisions and account groups are reviewed by the Budget and Evaluation Department and approved adjustments are reported to City Council. The City of Greensboro budget process begins in October with the development of proposed new and revised capital improvements projects and the identification of key departmental issues. Usually in late fall, a City Council/Staff Planning Conference is held to review the financial condition and budget forecasts for the City and to develop budget priorities and management objectives for the upcoming budget process. In May, the Recommended Capital Improvements Program (CIP), a six-year planning document outlining major, non-recurring projects requiring multiple- year financing, and the Recommended Budget are presented to City Council. Budget Calendar

Budget Adoption

The City of Greensboro Budget is adopted by ordinance in accordance with North Carolina General Statutes which require that estimated revenues and appropriated fund balances be equal to appropriations. The budget is developed on a cash basis, including only expenditures and revenues expected to be realized during the fiscal year. The budget is adopted, however, on a modified accrual basis with sufficient appropriations for encumbrances (outstanding purchase orders and contracts as of June 30) carried over into the new year. All operating funds reasonably expected to be received are included in the Budget Ordinance and are expended in accordance with the adopted ordinance. State statute also sets the fiscal year as beginning July 1 and ending June 30. Therefore, City Council must adopt a budget before July 1 of each year. Developed on a program basis, the budget depicts all services provided by the City and resources allocated for the provision of these services. Organizational strategic priorities are developed by City Council and City staff and are used as major guidelines in the development of funding recommendations. The programs outlined in the budget are implemented by the various departments and offices within the City organization. City Council is permitted by state statute to amend the Budget Ordinance anytime during the fiscal year. These amendments must continue to adhere to the balanced budget statutory requirements and cannot change the property tax levy or in any manner alter a taxpayer's liability. The City of Greensboro Budget is a program based budget, but is adopted by funds. Ordinances approved by City Council are required to increase or decrease appropriations in any fund. Budget adjustments within the same fund may be approved by the Budget Officer and reported to City Council. Budget Amendments

Budget Maintenance

Important steps in the development of the two-year budget are given on the following page.

In accordance with the General Statutes of the State of North Carolina, the City prepares and adopts its budget on the modified accrual

Budget Process

Department CIP Proposals/Issue Development

Fall

Update Two-Year Budget

November

Workplan Conference

Revise Revenue/ Expenditure Forecasts

Strategic Priority Discussion

January

Budget Kick-Off

February

Proposed Departmental Operating Budget

Review CIP

March/April

Review Operating Budgets

Review Objectives/ Service Level Changes

May

Manager Presents Budget to Council

May/June

Council Budget Workshops

Public Hearing

June

Council Adopts Budget

Fiscal Year begins on July 1

July

Adopted FY 2014-15 Budget

CITY MANAGER’S BUDGET MESSAGE

Mayor and City Council, City of Greensboro

May 20, 2014

Council Members:

development opportunities and job creation.”

As a City team, we are continuing to take progressive strides toward developing and maintaining a fiscal budget that is sustainable. We can no longer afford to react to increasing costs and stagnant revenues, instead, we are working to become a more efficient and proactive organization to ensure the City is prepared to thrive and achieve its goals despite slowly recovering economic conditions. The fiscal year 14-15 budget is built using a new development model. City leaders began taking a hard look at this budget at the outset of the fiscal year. We readily identified that we were going to be facing another budget deficit and immediately began brainstorming solutions with a goal of making reductions that could be sustained for the long term. As a second step, our Result Area teams and departments met to identify specific programs and services that could be reduced while still preserving the basic services required by our residents. The budget outlined below is one that is balanced through sustainable service reductions and fee enhancements that better align the costs for City functions with comparable costs in peer cities across the state. The primary goals used by the City team in developing this year’s budget include: an organizational focus on meeting Council and Community priorities and expectations, the provision of adequate resources to meet our core service requirements and needs, continuing to ensure the City’s triple A bond rating is maintained, and continuing to provide a highly competitive compensation and benefits package to our employees to adequately recognize their many and valued contributions to our City. Budgeting is no longer a process that we complete in two months, present to City Council, and go about the rest of our business. Budgeting is now something that we live, breath and speak as part of the daily language in the City of Greensboro. We cannot be a sustainable government in the future unless and until we become sustainable in the present. Our ongoing efforts are designed to move us in that direction. As you’ll read below, I’m confident that our resources are aligned to reach our core MAP (Management Accountability and Performance) goals while maintaining emphasis on the priorities outlined by City Council.

The City of Greensboro’s approach to economic development is strategically focused on advancing these key principles: promoting job creation, facilitating private business and expansion in our city, utilizing bond resources to advance economic development and infrastructure development (including promotion of shovel-ready sites, advancement of downtown projects and investments in East Greensboro and the Airport Area), providing enhanced access to City contracting opportunities through the continued implementation of our enhanced MWBE policy and program and making it easier to do business in and with the City. Economic Development Fund in FY 12-13. The one-half cent property tax set aside generates approximately $1.25 million per year. A variety of ED Fund projects and program support are recommended in the FY 14-15 budget. This fund will serve as the City’s primary financing source to support the Renaissance Center project, which will bring economic revitalization to the Phillips Avenue area. The recommended budget includes $150,000 for the second loan payment for the International Civil Rights Museum (an additional $350,000 will be provided from the General Fund). The fund will also provide support for the 17 Days Arts and Cultural Festival ($25,000) and the National Folk Festival ($75,000). The City of Greensboro was awarded a $1 million grant from the US Department of Commerce and the Economic Development Administration in 2013 to conduct an economic development challenge. The Strong Cities Strong Communities program solicits proposals from multi-disciplinary teams from across the country to develop transformative economic development plans for Greensboro. $250,000 from the Economic Development Fund is serving as matching funds for the grant. Proposals are due in September 2014. The High Point Road/West Lee Street Gateway Corridor remains an area of key emphasis within the City’s overall economic development strategic goals. A corridor plan was adopted for this area in 2008. In FY 13-14, several major recommendations were implemented including changing the corridor name to Gate City Boulevard (effective July 2015) and the adoption of new zoning districts to help facilitate development envisioned for the corridor. In the recommended FY 14-15 budget, $50,000 is allocated to assist property owners with sign changes to help comply with the new zoning requirements. City Council established the

Strategic Goals

“Create an environment that promotes economic

City Manager’s Budget Message

Guilford County Fire, and the conversion of the remaining 14 channels to P25 functionality is scheduled to begin in FY 14-15. Renovations at the Guilford Metro 911 Justice Center to administrative, training, and public entrance facilities will be completed during FY 14-15. The Recommended FY 14-15 Budget also includes a total of $345,000 for several enhancements for the Police Department. The FY 14-15 and FY 15- 16 budgets each include $210,000 ($420,000 total) to replace the Police Department’s entire complement of aging body armor. Additional funding of $55,000 for the Priority Offender program will bring total annual funding to $175,000, and expand the program from 100 to 150 monitored offenders. The recommended budget also includes $80,000 for the Fair and Impartial Policing training effort. Police, Libraries and Parks and Recreation continue their collaboration to provide programming options in an effort to positively impact the juvenile crime rate. For example, Summer Night Lights (SNL), a series of free teen events, will be held during the summer at times that are traditionally high risk for juvenile crime. These departments, along with City Council and community partners, are further collaborating to start the summer with a Teen Summit to inform youth of the variety of activities available through the summer season. “Maintain infrastructure and provide sustainable growth opportunities.” Bond referenda passed by the residents of Greensboro in 2006, 2008 and 2009 authorized borrowing of over $228 million for streets, fire stations, parks and other improvements. The City continues its strategy of managing the borrowing for these needed capital improvements without requiring tax increases for debt service. The City issued $50 million in Bond Anticipation Notes in FY 13-14 (to be converted to General Obligation Bonds in 2016) to advance a variety of projects. These projects include continued improvements to Horsepen Creek Road, High Point Road Streetscape, Cone Boulevard/Nealtown Road and the downtown greenway, along with other sidewalk improvements and street resurfacing. This bond sale provided funding for the McConnell Road Fire Station (to replace the existing fire station on Franklin Boulevard) and the Burlington Road Fire Station. Other supported projects include Griffin Park improvements, Keeley Park improvements and support for the Greensboro Science Center— Phase II.

In March 2013, City Council approved sale of land to a lead developer for the South Elm Brownfield project. In January 2014, the City Council voted to support the development of the Union Square Campus as part of this site. Union Square is a partnership among Greensboro’s colleges and universities to create a state-of-the-art facility to address the continuing education needs of the medical community and to develop a new high tech medical simulation lab. In addition, South Elm Street Redevelopment is being used as a demonstration project for job creation and capacity building for Historically Underutilized Businesses (HUB) under a contract with Sustainable Community Resources. The FY 14-15 Recommended Budget includes continued support for various economic development and cultural partners such as the Greensboro Partnership, East Market Street Development Corporation, the Piedmont Triad Film Commission, the Children’s Museum and the Wyndham Championship. As part of the City’s overall strategy to reduce the budget and maintain a level tax rate, it is necessary to recommend a 10% reduction in City support for these organizations and other similar organizations serving the community in cultural and economic support roles. Closely aligned with our economic development strategic goal is the organization’s desire to promote public safety. A safe community is a critical component of an economically vibrant community. The Reedy Fork Fire Station will open in early in FY 14-15. Fifteen positions previously allocated for the station were filled during FY 13-14. The station will serve the already developed Reedy Fork area and provide fire and rescue coverage for future residential and commercial development in the area. Fifteen new firefighter positions are included in the FY 14-15 budget to add a new Fire engine company in east Greensboro for improved service delivery. The company will be placed initially at Mt. Hope Church Fire Station (Station #57) and eventually assigned to the Burlington Road Station to be constructed sometime in FY 15-16. The City of Greensboro and Guilford County have signed a contract with Motorola to take Technical Services through the next 5 years of P25 (radio system platform) migration and expansion. The replacement of this vital infrastructure is underway and will continue through FY 14-15 and beyond. The Migration Assurance Plan project, including core system upgrades, annual maintenance, four new tower sites, a new UHF Paging System for “Promote public safety and reduce crime.”

Subsequent to the 2014 bond sale, approximately

Adopted FY 2014-15 Budget

City Manager’s Budget Message

$100 million of authorized bonds remain for sale during years 2016 through 2020. The remaining bond proceeds are almost exclusively for street improvements and will support projects such as Alamance Church Road improvements, North Church Street improvements, Mackay Road improvements, Summit Avenue Streetscape, the downtown greenway and various sidewalk and greenway improvements. The City seeks alternative funding sources to leverage local dollars wherever possible. Funding commitments backed by municipal agreements with NCDOT are currently in place for approximately $23.9 million to support City sidewalk and roadway projects. The proposed FY 2015-2024 Capital Improvements Plan (CIP) totals $1.47 billion of identified projects and outlines a future financing plan to maintain our current infrastructure and develop new facilities as needed. The CIP Team is continuing to evaluate all unfunded programs through the developed criteria that scores projects based on City Goals, influence on other City plans, critical need, community support and funding and operation impact. One-third of the entire proposed Capital Improvements Plan is devoted to our water and sewer infrastructure. The City continues to plan and implement a variety of water system improvements and maintenance efforts using both debt financing and pay as you go (cash) capital financing. The proposed CIP includes $514 million in planned water and sewer utility improvements, including such major projects as Osborne Wastewater Treatment Plant capacity upgrade ($62.8 million) and system wide Sanitary Sewer and Water Line Rehabilitation ($95 million combined over the next ten years). The recommended budget includes a proposed water user rate increase of 4% for customers within the City of Greensboro and 8% for customers outside the city limits. This rate increase will ensure the continued financial security of this vital utility resource while keeping our customer rates very competitive when compared to peer cities throughout the state. “Achieve exceptional customer service, a diverse workforce and ensure fiscal stewardship, transparency and accountability.” Departments have made every effort to identify efficiencies and better ways to do business and deliver service whenever possible. Beginning in FY 13-14, the City embarked on a effort to have one department and/or major service delivery reviewed annually by outside evaluators as part of our overall emphasis on continuous improvement. A comprehensive review of the Fire Department is nearing completion. This review, conducted by the Center for Public Safety Excellence and

coordinated by the Fire and Budget and Evaluation Departments, will provide evaluation and recommendations for potential efficiency and effectiveness improvements for various Fire functions and services. Additionally, efficiency reviews of the Payment Processing Section of the Finance/Collections Division and of the City’s vehicle utilization and allocation strategies are underway. These reviews will be completed by summer 2014 and will provide recommendations for improved efficiency that can be implemented as part of the FY 15-16 budget process. The recommended FY 14-15 budget anticipates over $100,000 in savings through improved efficiencies in our technology management. The Information Technology Department will lead these efficiency efforts during the year. Human Resources will lead a comprehensive customer service initiative this year. As part of responding to Council’s identified priorities, staff will develop a program that creates performance standards, identifies measurement and evaluation tools, and provides ongoing training opportunities for employees related to customer service. The recommended budget includes an average 2% merit increase for all employees, based on performance evaluation. The recommended budget also funds the Public Safety Step Program. These recommendations are included within the total compensation budget developed for the FY 14-15 budget. As I present a balanced budget for FY 2014-15, the development of the FY 15-16 budget is our next step as we work toward taking a new approach to developing a balanced, sustainable and effective budget for years to come. The FY 14-15 Recommended Budget is balanced with a proposed tax rate of 63.25 cents per $100 property valuation, the same as the current tax rate. I very much appreciate the continued dedication our employees show to the cause of public service. We are prepared to assist City Council in the adoption of this service plan for our city. Property Tax Rate

Respectfully submitted,

Jim Westmoreland, City Manager

BUDGET FINANCIAL POLICIES

The City of Greensboro's financial policies serve as the basis for the overall fiscal management of the City's resources. These policies guide City Council and Administration in making sound financial decisions and in maintaining Greensboro's fiscal stability. Many of the policies outlined here are derivatives of the Local Government Budget and Fiscal Control Act. Other policies were developed by the City to address specific financial issues in Greensboro. These policies are reviewed annually and are updated as needed. Listed below are financial policies which are specifically related to the adoption and execution of the annual operating budget: 1. The City of Greensboro will prepare a two-year planning budget, with the first year submitted to City Council for legal adoption and the second year submitted as a planning document to assist with long-range financial planning efforts. 2. In accordance with the Local Government Budget and Fiscal Control Act, the City shall operate under an annual balanced budget ordinance in which the sum of net revenues and appropriated fund balances is equal to appropriations. 3. All grants received by the City from Federal or State Government Agencies for operating or capital purposes shall be adopted with a separate Grant Project Ordinance, with revenues estimated to be available from the grant including any local match equal to appropriations for the grant project. 4. The City's annual budget shall be adopted by July 1 and shall cover a fiscal year period beginning July 1 and ending June 30. 5. The City shall have its accounts independently audited at the close of each fiscal year by a certified public accountant. 6. The City's two-year budget shall be presented in a program budget format with program summaries, performance objectives and performance measures provided for each major program or service. Operating Budget

Reserves

1. The City shall maintain an undesignated fund balance equal to 9% of the following fiscal year’s General Fund adopted budget, with any amount in excess of 9% being credited to a capital reserve account until a minimum of $10 million is accumulated. Once the minimum goal is reached additional funds can be used for "pay-as-you-go" capital expenditures. 2. Before any appropriations can be made from Undesignated Fund Balance of the General Fund, seven “yes” votes from the nine member Council shall be required. 3. Appropriations to contingency account in any of the City's operating funds shall be limited to less than 5% of that fund. 4. For all other operating funds, the City shall seek to maintain a minimum fund balance of 8% of working capital. 1. Revenue estimates shall be set at realistic and attainable levels and shall be updated and revised as needed. 2. The City will conduct an annual review of specific programs and services which have been identified as potential candidates for user fees. Where appropriate, user fees will be set at a level sufficient to recover the full costs of the program or service. 3. The City's Enterprise operations shall set their enterprise fees at a level sufficient to recover the full costs of enterprise operations. Revenue Policy

4. The City shall maintain an investment portfolio in which 100% of all idle funds are invested daily.

Capital Improvements Projects

1. The City shall annually develop a six-year Capital Improvements Program (CIP) to be adopted in conjunction with the Annual Operating Budget .

Adopted FY 2014-15 Budget

2. The City shall appropriate all funds for Capital Projects with a Capital Projects ordinance in accordance with state statutes. 3. Operating expenses for all capital projects will be estimated and accounted for in the Capital Improvements Program. 4. Capital expenditures included in the CIP as a project will cost at least $100,000 and have a useful life of at least 10 years. Equipment purchases are considered operating expenses and will not be included in the CIP. 5. City Council will annually set level-of-service standards for the quantity and quality of capital facilities and criteria for the evaluation of capital project requests. 6. The CIP will contain an inventory of existing capital facilities and document any maintenance or replacement plans for these facilities.

Capital facilities to be financed with bonded indebtedness must adhere to the debt policies of the City including maintenance of adopted debt ratios and coordination with the overlapping capital needs of Guilford County.

Debt Management

1. Completion of capital projects funded with bond proceeds shall not exceed the life of the bonds issued to fund that project. 2. Bonds shall only be issued for capital improvement projects having a cost of at least $100,000 and having a useful life of at least 10 years. 3. Interest income will be credited to the Debt Service Fund. This will allow interest income to offset debt service costs which also tend to vary depending on when bonds are issued and the variable interest rates that are in effect when the bonds are issued.

BUDGET SUMMARY

WHERE THE MONEY COMES FROM

Fund Balance 7%

Other 6%

Property Tax 34%

User Fees 35%

Sales Tax 9%

Intergovernmental 9%

WHERE THE MONEY GOES

Community Services 8%

General Government 9%

Debt Service 4%

Infrastructure 52%

Public Safety 27%

FY 14-15

Financial &

Human Resources

Budget & Evaluation

Information Technology

Administrative Services

Assistant City Manager*

Communications*

Libraries & Museums Neighborhood Development

Office of Workforce Development*

Human Relations

Parks & Recreation

Economic

Assistant City Manager

City Attorney

Development &

Business Support*

City Manager

Greensboro City Council

Fire

Police

City Clerk

Guilford Metro 911

Assistant City Manager

CITY OF GREENSBORO ORGANIZATIONAL CHART

Coliseum

Planning

Engineering & Inspections

Transportation

Field Operations

Water Resources

Assistant City Manager

* Denotes Divisions > Assistant City Manager: Contact Center, Internal Audit > Communications Manager: Greensboro Television Network, Communications > Economic Development & Business Support Manager: Economic Development, Small & Emerging Businesses, Minority and Women’s Business Enterprise

TOTAL BUDGET— EXPENDITURES

The FY 14-15 Net Adopted Budget (all funds) is about $3.31 million, or 0.7% higher than the revised FY 13-14 budget. The current year budget includes a one-time $6.8 million bond refinancing charge that occurred in February 2014. Absent this one-time charge, the FY 14-15 Adopted Budget would be about 2.2% greater than the current year budget. Budget changes in various funds and departments, particularly the service reductions and FTE deletions recommended to balance the budget, are described in greater detail throughout this document. The Infrastructure Result Area, the largest service area at $244.1 million, shows an increase of $5.0 million. The Water Resources Fund budget increases 5.8%, or about $6.0 million. Water Resources will increase the contribution to its capital reserve fund for future capital projects from $18.7 million to $22.2 million. The Solid Waste Management Fund is reduced from $17.6 million to $15.1 million. This reduction is due to continued cost reductions from contractual re-negotiations and other efficiencies. It is also due to a transfer of $1.1

million to the Solid Waste Management Capital Improvements Fund made during FY 13-14 for landfill closure activities. A similar transfer is not budgeted for FY 14-15. The Public Safety Result Area increases from $122.8 million to $129.5 million. As discussed in greater detail in the result area section, the adopted budget includes several program enhancements, including the new Reedy Fork Fire Station, a new Fire engine company for east Greensboro and several budget enhancements for the Police Department. The Community Services Result Area increases from $34.5 million to $35.5 million. This service area includes the new McNairy Branch Library and the new Griffin Recreation Center. It also includes the newly formed Neighborhood Development Department, previously within the Planning Department. The Projected FY 15-16 Budget is 1.3% higher than the FY 14-15 Adopted Budget.

Total Net Expenditures by Expenditure Category

2012-13

2013-14 Budget

2014-15 Adopted

2015-16 Projected