FY 14-15 Adopted Budget

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

Category

Actual

Personnel Costs

195,628,243 165,268,159 51,809,109 13,059,087

203,911,632 189,234,815 57,912,813 18,364,651

209,844,563 196,445,115 48,028,462 18,421,559

216,138,367 196,225,431 52,636,737 14,100,771

Maintenance & Operations

Debt Service Capital Outlay

Total Expenditures

425,764,598

469,423,911

472,739,699

479,101,306

Budgeted personnel costs are 2.9% higher than the current year budget, including a net increase of about twenty-two (22) full-time equivalent (FTE) positions within the total operating budget. Fifteen (15) positions are added to the Fire Department budget for the new east Greensboro engine company. Nine (9) positions have been added to the Water Resources Fund to improve treatment plant safety and security and to increase water and sewer system line maintenance work. As part of the organization’s overall budget balancing strategy, about 8.5 FTE positions have been eliminated. These position reductions are discussed in detail in the appropriate departmental budget pages throughout the document. Maintenance and operations (m/o) costs, which include transfers from operating funds to capital projects or capital reserve funds, show about a $7.2 million or 3.8%, increase compared to the FY 13-14 Budget. The single largest increase in a particular fund occurs in Water Resources. The fund’s m/o

budget is increasing from $58.3 million to $63.7 million, including an increase in the transfer to Capital Improvements and Reserves Fund from $18.7 million to $22.2 million. These contributions fund a variety of water system infrastructure maintenance and repair and help contain the overall amount of debt financing necessary for the system. Overall budgeted debt service expenses are decreasing from $57.9 million to $48.0 million. This reduction is largely due, however, to bond refinancing that was completed in February 2014, which generated a one-time revenue and offsetting debt service expense of about $6.8 million. Absent this one-time entry, budgeted debt service expenses would still be decreasing from $51.1 million to $48.0 million. Payments from the Debt Service Fund to retire general obligation debt decrease from $22.0 million to $19.3 million. Since 2012 the City has issued less General Obligation (GO) bond debt than it has retired, allowing for some reduction in annual debt service costs.

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