Wednesday, March 25, 2020

City of Greensboro's 2019/2020 Budget and Covid-19 Effects; Where is the money going to come from?
From the City of Greensboro's ADOPTED BUDGET 2019-2020;

"The FY 19-20 net adopted budget (all funds) of $566,586,409 is $26.6 million, or 4.9%, higher than the revised FY 18-19 budget.

The City plans to spend $143,818,005 more in 2019/2020 than 2009/2010

The Infrastructure service area is the largest service area at $296.9 million. The service area budget is $12.5 million, or 4.4% greater than the revised current year budget. This service area includes the Tanger Center for the Performing Arts, which will open in late FY 19-20 with a partial year operating budget of about $5.5 million. 

...The FY 19-20 adopted budget shows a net increase of thirty-three (33) full-time equivalent (FTE) positions across all operating funds. Eleven (11) FTE positions are added in anticipation of the March 2020 opening for the Tanger Center for the Performing Arts. "

If there are no performances, the operating budget should be lower

Was taxpayer money supposed to cover the $5.5 million operating budget for Tanger
and the additional employees after borrowing $43,450,000?

Have the private contributions been recieved?

...The Parking Fund will continue accumulating funds for debt service associated with new downtown parking decks under construction during FY 19-20. Downtown parking deck rates will increase January 1, 2020 to partially support this capital improvement project.

Parking revenue is probably tanking, especially at the Coliseum

...The Public Safety service area increases from $145.1 million to $150.6 million.

...Within Parks and Recreation, salary funds for seasonal and roster employees increase from
$2.20 million to $2.65 million as the City continues to move these position hourly minimum salaries toward an eventual $15.00 per hour.

The Debt Service service area increases from $30.0 million to $36.4 million. The Debt Service Fund expenditures include principal and interest payments for all outstanding general obligation bonds, including bonds approved by voters in 2016.

The City is required to increase its contribution to the North Carolina Local Government Retirement System on behalf of its employees, resulting in a $2.4 million increase in retirement contribution costs.

How much are expected Retirement System contributions going to spike, 
now that financial markets have crashed?

Maintenance and Operations (M/O) costs, which include transfers from operating funds to capital projects or capital reserve funds and debt service expenditures, increase from $281.7 million to $297.7 million, or about 5.7%. Principal and interest payments for various outstanding debt are a primary driver of this budget increase. For the Debt Service Fund, budgeted principal and interest expenses will increase from $23.9 million to $34.0 million.
City of Greensboro's 2009/2010 budget was $422,768,404;
"The City of Greensboro relies on property taxes to raise about one-third of the net revenues needed to support municipal operations in all funds.   The FY 19-20 adopted budget is balanced with a property tax rate of 66.25 cents, a three cent increase over the adopted rate for 18-
Since July 2016, the City of Greensboro increased its budget by $46.9 million per year, more than 11%, while overall taxation increased by about 15% to pay for it

City of Greensboro raises taxes by 7.5%, but most don't know, as our local media didn't tell anyone
"Sales tax revenue for FY 19-20 is projected at $58.5 million, roughly 5.4% higher than revised current year estimates of $55.5 million. Local option sales tax revenues constitute about 9-10% of total net revenues."

Sales taxes are going to take a big hit
along with Hotel/Motel tax revenues;

So what's the plan City Council?