05/02/22

Dear Friend:

Failing to plan has consequences.  Tomorrow night the Council will be presented by city staff with three tax rate increase options to close a $9 million gap in the city’s fund balance (emergency fund) which should have been foreseen.  It is not a position we should find ourselves in.  And it reflects a lack of fiscal responsibility.  

The State Local Government Commission (LGC) has requested a plan from the City on how it will meet a suggested 25% fund balance (emergency fund level) that all our major city peers have already met (see staff chart below).  Emergency funds are designed to prevent cuts to city services and staff when disruptive, unexpected economic conditions or physical events occur. 

Greensboro’s credit rating is solid, and we have the funds to come to the suggested level, but there has been a lack of will to do what is necessary.  Now we are forced to consider a list of unacceptable options prepared by city staff to meet the LGC target level.  Here is what will be presented: 

1. A 0.75 cent property tax rate increase or equivalent amount, effective with the FY 22-23 budget and in place through FY 26-27; 
2. Consecutive 0.25 cent property tax rate increases, or equivalent amounts, beginning in FY 22-23 and continuing through FY26-27; or 
3. A $4,000,000 allocation of American Rescue Plan (ARP) funds in FY 22-23 and a property tax rate increase of 0.5 cent or equivalent amount, effective with the FY 22-23 budget and in place through FY26-27. 

I am not in favor of a tax rate increase or trying to extend out the length of time it would take to come into compliance.  The tax rate increases up for consideration would still take five years.  As I advocated for previously, I am in favor of facing this problem directly and setting aside $9 million from current revenue sources(which could include ARP funds).  I will vote no if any of these three options is presented tomorrow. 

When we put off tough choices until after elections are over, or delay allocating necessary money to the emergency fund, we are not being honest with residents or acting responsibly.  The vision I have discussed with you over the last year will help Greensboro reach its potential, but in a responsible manner.  That is the type of New Effective Leadership I will bring to Greensboro as mayor. 

For Our Future,