Page 9 - 2018 Comprehensive Annual Financial Report - City of Winston-Salem

Honorable Mayor and
Members of the City Council
City of Winston-Salem, North Carolina

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GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial
statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement
MD&A and should be read in conjunction with it. The City’s MD&A can be found immediately following the report of the
independent auditors.
Included in the Comprehensive Annual Financial Report is information about the City as a social and economic unit as well as
its governmental structure that is intended to enable the reader to assess the City’s economic foundation, quality of life, and
financial condition. The information complements MD&A, which highlights the fiscal year.
Long-term Financial Planning
The Comprehensive Annual Financial Report reflects the sound fiscal policies our elected officials have established to achieve
their annual priorities for programs, services and capital improvements. These policies have resulted in the City’s strong
financial position which is demonstrated by the highest credit rating attainable in national bond markets. Growth of the City’s
economic base as well as realistic long-range planning, productive management of revenue and cash resources, expansion of
self-supporting enterprises within government, and prudent use of debt continue to produce favorable operating results.
Unassigned general fund balance represents 11.95% of the budgeted expenditures while total general fund was 24.29%.
The City annually adopts a six-year Capital Plan for the scheduling and appropriation of funds for major projects that represent
significant contributions to the City’s overall inventory of physical assets. City Council approval of the Capital Plan commits
the City to the first year of the capital projects with conditional approval for those projects listed in the five future planning years.
The six-year Capital Plan, from fiscal year 2019 through fiscal year 2024 includes capital appropriations totaling $388.5 million
and includes projects funded by general fund resources, general obligation bonds, utility revenue bonds, North Carolina Clean
Water State Revolving Loan Funds, special obligation bonds, North Carolina Municipal Leasing Corporation, state and federal
grants, gasoline taxes, and capital reserves.
Awards and Acknowledgements
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement
for Excellence in Financial Reporting to the City of Winston-Salem for its Comprehensive Annual Financial Report for the
fiscal year ended June 30, 2017. This was the 32nd consecutive year that the government has achieved this prestigious award.
In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized
Comprehensive Annual Financial Report. This report must satisfy both generally accepted accounting principles and applicable
legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current Comprehensive Annual Financial
Report continues to meet the Certificate of Achievement Program’s requirements, and we are submitting it to the GFOA to
determine its eligibility for another certificate.
Deserving special commendation are skilled, talented, and dedicated employees – the work force of the City of Winston-Salem.
Acknowledgement and appreciation are expressed for their contributions to a successful year. We also express our sincere
appreciation to the Mayor and City Council for leadership, guidance, and establishment of policies for managing financial
operations in a sound and progressive manner.

Respectfully submitted,

Lee D. Garrity Lisa M. Saunders
City Manager Chief Financial Officer

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