Greensboro Placed on State Unit Assistance List After FY25 Financial Review

GREENSBORO, N.C. — The City of Greensboro says it has been notified by the Office of the State Treasurer that it will be placed on North Carolina's Unit Assistance List following a review of the city's fiscal year 2025 audited financial statements.

The Unit Assistance List is used by state financial officials to identify local governments that may need additional guidance, resources and enhanced fiscal monitoring. Placement can also bring additional statutory requirements for certain financing arrangements.

Greensboro reported an FY25 ending fund balance of $98.265 million, equal to 22.9% of the city's total operating budget. The city committed to the Local Government Commission in 2022 that it would reach a 25% fund balance by 2030. City officials say Greensboro was about $8 million short of that target at the end of FY25 and has already begun implementing strategies to close the gap.

City Manager Nathaniel “Trey” Davis said the reserve functions as the city's rainy-day fund and helps protect services during unexpected financial challenges. Greensboro also said its audit remains clean and that S&P and Moody's recently reaffirmed the city's AAA bond ratings.

The State Treasurer's office describes the Unit Assistance List as a tool for directing staff resources toward local governments that need additional financial assistance or monitoring. Factors can include fund balance, cash flow, debt burden, internal-control findings, audit compliance and other fiscal concerns.

Greensboro leaders plan to meet with state financial officials in the coming weeks to review the FY25 results and determine what steps are required for the city to be removed from the list. The city says it will provide another update after receiving final guidance.

Featured image source: Hoodline.