A letter from the Local Government Commission abruptly changed the public conversation around the City of Greensboro’s finances this week, leading to a tense emergency meeting of the Greensboro City Council Thursday afternoon.
The Local Government Commission (LGC), an agency of the Office of the State Treasurer, has for years warned the city that it wasn’t following the commission’s guidance to maintain a fund balance—a “rainy day fund” for emergencies—equivalent to at least 25% of its expenditures. It has also warned against using the fund balance for its regular operating expenses.
The commission doesn’t recognize a specific percentage requirement for all cities, instead making its recommendation based on a number of financial factors including peer city fund balances. In 2022, when the city’s fund balance was at just above 18%, the council passed a resolution committing to the commission that it would get to 25% by 2030…