2024 | 2025 Proposed Budget

FY | 24-25

BUDGET

Presented to the CITY COUNCIL on May 6, 2024

ANNUAL BUDGET

Budget

Budget

Budget

Budget

Accounting

Electric

Budgetary

May 6, 2024

Honorable Mayor and Members of the City Council

City of High Point, North Carolina

In accordance with the General Statutes of North Carolina, the Manager’s Recommended Fiscal Year 2024-25 Budget is submitted for your consideration. The $518 M budget is balanced and was prepared in accordance with the provisions of the North Carolina General Statutes and the policies of the North Carolina Local Government Commission. It serves as the primary financial plan for the organization and details the operational framework based on the priorities and policy direction communicated by the Mayor and City Council This budget reflects the City Council’s commitment to responsible fiscal management, while continuing to provide services that improve the quality of life for the citizens of High Point. The proposed budget increases the property tax rate 3.0 cents to 64.75 cents per $100 of property value, which is based on a total valuation of $13,739,614,484 The property tax rate is allocated to the General Fund (61.35 cents) and the Debt Service Fund (3.4 cents).

High Point has adapted to the new realities post-pandemic, providing high quality services even while faced with higher inflation, supply chain issues, and the recruitment and retention issues that have persisted not only for us, but for other local governments in North Carolina. Over the past several years, as costs for service delivery and employee salaries and benefits grew, the economic growth allowed existing general-purpose revenues to absorb the higher costs. While the economy continues along an upward trajectory, our local revenues are not growing at the same rate as the increased costs to deliver services to our citizens and higher salaries and benefits needed to recruit and retain our workforce in today’s competitive employment environment.

Below are highlights of the proposed budget:

- 3.0 cent increase in property tax rate

- No increase to electric rates

- No increase to solid waste user fees

- No increase to stormwater rates

- 5% water/sewer rate increase

- Average 3% mid-year merit adjustment

- City match of 3% for 401K/457 contributions

- Market salary increase for sworn police and certified fire personnel

- The addition of 5 full-time and 6 part-time positions

- $4.9 million for new and scheduled vehicle and other rolling stock replacements

- $250,000 allocation for marketing/branding efforts

The proposed budget addresses the challenges we face by identifying prudent operational efficiencies with the continuing need for services as we look towards the future prioritizing where new investment may be needed.

AMERICAN RESCUE PLAN ACT (ARPA)

On March 11, 2021, the American Rescue Plan Act was signed into law. The Bill included direct financial assistance to local governments that faced revenue losses and added safety expenses in dealing with the COVID-19 pandemic. The bill included over $1.3 billion dollars for cities and towns in North Carolina. High Point received $22,699,511 million in direct assistance.

In the fall of 2021, two community input sessions were held, with the following themes emerging as priority areas for funding: employment, housing, education, infrastructure, and community programs/non-profits.

To reduce the City’s administrative burden, High Point’s allocation was applied towards government services (existing police and fire salaries). This freed up local funds to be used at the discretion of the Mayor and City Council and eliminated the need to spend/commit the funds by the dates the United State Department of Treasury mandated. Thus far, the city has committed $20,717,945 in non-recurring funds for the following projects:

Project Amount Community Input Theme

Critical Capital Needs

300 Oak Property Acquisition

300 Oak Upfits

Homeless Day Shelter

Foxwood Meadows Alternate Access

Commercial Shared-Use Kitchen

High Point Schools Partnership

Disparity Study

One High Point Commission Implementation

Non-Profit Organization Allocations

$5,862,085 Infrastructure

3,000,000 Employment

3,000,000 Employment

2,000,000 Housing

990,000 Infrastructure

2,000,000 Employment

150,000 Education

350,000 Employment

$292,460 Employment, Housing, Community Programs

3,073,400 Community Programs

Subtotal $20,717,945

Staff will continue to work with the Mayor and City Council on identifying the projects for the remaining funds.

TOTAL FY 2024-25 BUDGET OF ALL FUNDS

Funds included in the budget are adequate to continue providing the services that are expected by our citizens. The total FY 2024-25 budgeted expenditures for the City of High Point amounts to $518,726,303. This is an increase of $40,188,716 or 8.4% from the FY 2023-24 budget.

Below is a chart of total FY 2024-25 budgeted revenues and expenditures compared to the FY 2023-24 Adopted Budget:

FY 2024-25 MAJOR REVENUE RECOMMENDATIONS

The proposed FY 2024-25 property tax rate is an increase of 3.0 cents to 64.75 cents per $100 of valuation. The general fund allocation of the property tax increases to 61.35 cents and the debt service fund allocation remains at 3.4 cents.

There is no rate increase to solid waste or stormwater fees. There is no increase in electric rates but there are several changes to rate structure as well as a new electric vehicle charging station fee. The proposed budget also includes several proposed changes to fees, as outlined below.

• A water/sewer rate increase of 5% The increased rates will help fund increases in personnel and operating costs, including facility maintenance and chemicals, as well as the immediate infrastructure needs of the aging system.

• An increase in the basic facilities charge for residential electric charges per month. This is offset by a decrease in the kilowatt per hour charges for residential electric users and is intended to be revenue neutral to the customer

• A change in the Renewable Energy Portfolio Standard (REPS) charge. These charges are collected for the expressed purpose of enabling the city to meet its Renewable Energy Portfolio Standards compliance obligations as required by the North Carolina General Assembly. The funds collected are a pass-through to the power agency.

• Consolidation of the Time of Use, Coincident Peak and Commercial Non-Demand rate classes for commercial and industrial customers. These efforts are revenue neutral and will result in no additional revenue for the city.

• A new rate for electric vehicle charging. Electric has been deploying electric vehicle (EV) charging stations. Any city-owned charging stations will fall under this new rate. The proposed rate is low, to encourage usage of the charging stations. It is the equivalent of about $1.39 per gallon of gas, or around $8 to fill an average EV.

• The proposed budget includes increased fees in Parks and Recreation at the golf courses (greens and cart fees), a rental option for the Johnson Street Disc Golf Course, increased rental costs at the Recreation Centers (gyms, activity rooms, entire centers), increased pool rental costs at Washington Terrace Park Pool, and aligning per hour costs for staff when a facility is rented (operators, lifeguards, etc.) to match the city’s cost.

• The proposed budget also includes increased hydrant meter deposit fees for Public Services Hydrant meters are used in instances where permanent meters/taps aren’t available (construction water, temporary landscaping, street cleaning, etc.). The fee increase will cover the increased cost of replacing this equipment.

• An increase of auditorium rates at the High Point Theatre. This includes the daily corporate rate, daily non-profit rate, preferred clients, rehearsals, two performances, and conference

room/gallery rental rates. The fee schedule also adds a fee for rental of Mendenhall Terminal for more than eight hours for a special event (in addition to the current daily rate).

• The addition of a parking deck rate for non-leased spaces, at $20 per day, during and seven days prior, to the semi-annual High Point Market.

• Lastly, the proposed budget reduces the minimum deposit for a transit user card to $5. The current minimum is $25.

FY 2023-24 EXPENDITURE CHALLENGES

Continuing rise in costs due to inflation and supply chain issues, the recruitment and retention of city employees, the salary increases by our neighboring jurisdictions for fire and police personnel, and some revenue factors have remained as challenges this past fiscal year.

The past few years the city has made significant adjustments for Police Department and Fire Department salaries, including the increase of starting salaries. These increases were able to be absorbed into the budget. As other jurisdictions, who are facing similar recruitment and retention issues, have increased their public safety pay, our Human Resources Department has worked with outside partners to further examine the pay of our police and fire personnel. The proposed budget recommends additional increases to keep our salaries and benefits competitive in this market.

The City’s compensation and classification strategy has been to study 1/3 of the workforce each year and make needed adjustments. This has allowed the City to make incremental salary changes versus having large gaps in time between studies, which could result in significant pay inequities. This strategy is a key component for our ability to recruit and retain our workforce in today’s competitive employment environment.

Inflation has remained an issue and while the pace of growth has slowed, it still places a burden on our department budgets. While we have been able to re-prioritize needs without impacting the services we provide, the cost of doing business continues to increase, and funding these costs is reflected in this proposed budget.

Lastly, our sales and use tax revenue, which has seen average growth of over 10% since the COVID19 pandemic, has slowed in the current year. Current projections show year-end estimates with less than 2% growth compared to last year. While collections are increasing in the 3-4% range, sales tax refunds have also increased, which has affected our distributions.

Also, due to the increase of property taxes by other jurisdictions last year, our Guilford County ad valorem distribution percentage is projected to decrease next year. The result is a loss of

approximately $815,000, which will be distributed to other jurisdictions next year. While we expected a drop due to these actions, the impact remains on the proposed budget.

FY 2024-25 EXPENDITURE RECOMMENDATIONS

The needs, priorities, and details of each fund are highlighted in detail throughout this document. Below are the major expenditure recommendations included in the FY 2024-25 Proposed Budget:

• Fully funds the City’s Pay for Performance Program. An average 3% mid-year merit adjustment is programmed, at an estimated cost, including benefits, of $2.097 million.

• Increases pay plan ranges by 2% to maintain pace with market trends.

• Funds compensation and classification adjustments for FY 2024-25, totaling $472,000.

• Provides additional market salary increases for certified fire ($325,000) and sworn police personnel ($908,000).

• Continued funding of the increased employer contribution to the Local Government Employees’ Retirement System (LGERS) for regular, fire, and sworn police employees. The cost of this increase for FY 2024-25 is about $1.69 million.

• Outside non-profit organization funding reflects the value of one-third of a cent on the property tax rate, to a total proposed amount of $454,155.

• Funding for marketing/branding efforts totaling $250,000.

• Funding for the repayment of the twenty-year internal loan for the Catalyst Project land purchases. The amount is $443,323.

• Funding for the repayment of the fifteen-year internal loan for the improvements to City Lake Park. The amount is $600,000.

• Incremental tax revenue payment for the Catalyst project of $1,780,013. The taxable value of this area has increased $274,905,497 from its 2017 assessed value.

• Investments in the City’s Information Technology network including updated software, maintenance of existing systems and applications, cybersecurity improvements, and upgraded infrastructure, totaling approximately $1,021,000

• Replaces $4,655,000 in vehicles funded with pay-go funding. Planned fleet purchases include one (1) tandem dump truck, one (1) single axle dump truck, fifteen (15) police vehicles, two (2) fire SUV’s, one (1) front loader refuse truck, two (2) Jet/Vac trucks, three (3) back hoe tractors, one (1) drilling machine, one (1) bucket truck, one (1) compactor, one (1) bulldozer, one (1) 15-passenger van, two (2) pavement roller’s, SUV’s, light duty pickup trucks, body equipped work trucks, and other necessary rolling stock. In addition, the proposed budget funds the fire apparatus replacement program, budgeting for the replacement of an engine ($1,100,000) for the Fire Department.

• The addition of five full-time and six part-time positions, highlighted below Costs include salaries, benefits, and operating expenses.

FY 2024-25 MAJOR FUND SUMMARIES

GENERAL FUND

The FY 2024-25 General Fund Budget of $147,038,789 is $4,925,533, or 3.5% more than the adopted FY 2023-24 budget of $142,113,256. The FY 2024-25 General Fund Budget is balanced with an increase of 3.0 cents to the property tax rate. The general fund does not include an appropriation of fund balance reserves.

General Fund revenues and expenditures are summarized below:

GENERAL FUND REVENUES

Below is a summary of major General Fund revenue changes:

• Property tax revenues represent 57.2% or $84,045,925 of the total General Fund revenues. Property tax revenues are projected to increase by approximately $5,444,840, or 6.9%. The projected collections are based on a collection rate of 99.3%.

• Sales tax revenues represent 25.7% or $37,796,678 of General Fund revenues and are projected to decrease by approximately $3,072,902, or 7.5%. For FY 2024-25, room occupancy tax is no longer accounted for in the General Fund. Controlling for this change, sales tax revenues are decreased by $601,902 (-1.6%)

Retail sales tax revenue is estimated to increase approximately 2.75% above year-end estimates. However, due to an expected reduction of the ad valorem distribution percentage, approximately $815,000 in sales tax will be distributed to other jurisdictions.

• License and permit fees are projected to increase $213,800, or 4.7% due to slightly increased building permit activity and increases for fire inspections/violations.

• Charges for services are increasing by $639,550, or 11.3%. Pool admissions, primarily at the newly renovated City Lake Park Pool, are increased by $255,000 to reflect the use of the upgraded facility. The sale of merchandise at the golf courses, as well as other Parks and Recreation facilities, has increased by $186,000. This service has been brought in-house and includes expenses for inventory on the expenditure side.

• Miscellaneous revenue is estimated to increase by $1,380,850. This is due to stronger investment income projections, with higher interest rates assisting in this higher revenue

TAX RATE AND COLLECTIONS

The proposed FY 2024-25 tax rate is 64.75 cents, a 3.0 cent increase from the FY 2023-24 approved rate. The value of one cent in the tax rate will produce approximately $1.36 million of revenue. The total proposed tax rate is divided between the General Fund and the General Debt Service Fund. The General Fund allocation is 61.35 cents, and the General Debt Service Fund allocation remains at 3.4 cents.

A collection rate of 99.3% is planned for the proposed tax year collections

FY 2015-16

FY 2016-17

FY 2017-18

FY 2018-19

FY 2019-20

FY 2020-21

FY 2021-22

FY 2022-23

FY 2023-24

FY 2024-25 (proposed)

$0.6500

$0.6475

$0.6475

$0.6475

$0.6475

$0.6475

$0.6475

$0.6175

$0.6175

$0.6475

ASSESSED PROPERTY VALUES

The combined total assessed valuation estimates for our four County taxing authorities are $13.739 billion for FY 2024-25, which is a 1.8% increase over the estimated current year valuation.

Below is a chart of our historic assessed value history:

SALES TAX

The sales tax category includes sales tax related to retail sales, utility sales tax, and rental vehicle tax. For FY 2024-25, room occupancy tax is no longer accounted for in the General Fund. It is now in a special revenue fund – the Showroom and Occupancy Tax Fund.

Current year sales taxes are expected to miss budgeted projections by 1.6% or $669,000, and FY 2024-25 sales taxes are projected to decrease approximately $3,072,902, or 7.5%. Controlling for room occupancy tax no longer being accounted for in the General Fund, sales tax revenues are decreased by $601,902 (-1.6%)

Below is a chart of our historic sales tax history:

GENERAL FUND EXPENDITURES

Below is a summary of major General Fund expenditure changes:

• Personnel services are increasing by $6,719,807 or 6.9%. This includes increases to fund the following:

o Compensation and classification adjustments approved during FY 2023-24: $952,000

o Compensation and classification adjustments proposed for FY 2024-25, totaling $472,000.

o Market salary increases for certified fire ($325,000) and sworn police personnel ($908,000).

o Average 3% mid-year merit increase: $1.46 million.

o Required increase to the City’s contribution to the Local Government Employees’ Retirement System (LGERS) for regular, certified fire, and sworn police employees: $1.19 million

o Increased employer costs for health insurance plan: $851,000

The General Fund budget also includes three additional full-time positions, as well as six part-time positions, as outlined earlier in this message.

• Operating expenditures are decreased by $1,024,813 or 3.7% The contribution to Visit High Point has been moved to the new Showroom and Occupancy Tax Fund. Controlling for this, operating expenditures are increased by $1,196,187 (4.7%).

Drivers include increases in computer and software license fees ($902,000), higher Fleet Services charges for the cost of vehicle replacements ($209,000), and inventory

purchases for resale increased by $203,000, as Parks and Recreation is providing the sale of merchandise service in-house. There is increased revenue to offset this increase.

• Capital outlay funding is budgeted at $1,450,000 for FY 2024-25. This is driven by the funding for the fire apparatus replacement program ($1,100,000) and other fire equipment including station generators ($195,000), thermal imaging cameras ($35,000), and jaws of life sets ($40,000).

• Interfund transfers decreased by $325,054. The General Fund contribution for capital projects is $3,000,323, helping meet growing deferred maintenance and other capital needs of the general fund service areas. The proposed budget also includes a $600,000 reimbursement to the Solid Waste Post-Closure Fund. The General Fund subsidy for mass transit increased by $154,779.

WATER AND SEWER FUND

The $69,415,383 Water and Sewer Fund Budget for FY 2024-25 represents a

or $3,211,465 increase from the FY 2023-24 adopted budget, as summarized below:

WATER AND SEWER FUND REVENUES

Below is a summary of Water and Sewer revenue changes:

• The proposed budget increases water and sewer rates by 5%. The increased rates will help fund higher personnel and operating costs, including facility maintenance and chemicals, as well as the immediate infrastructure needs of the aging system.

• The proposed budget for water and sewer operations does not include any appropriation of reserves.

WATER AND SEWER RATES

The FY 2024-25 Water and Sewer Fund includes an increase to water and sewer rates of 5%.

Below is a history of water and sewer rate increases:

2000-01

FY 2001-02 7/1/2001

FY 2002-03 7/1/2002

FY 2003-04 7/1/2003

FY 2004-05 10/1/2004

FY 2005-06 10/1/2005

FY 2006-07 10/1/2006

FY 2007-08 11/8/2007 4.85% 4.85%

FY 2008-09 10/1/2008 5.90% 5.90%

FY 2009-10 10/1/2009 5.00% 5.00%

FY 2010-11 10/1/2010 4.90% 4.90%

FY 2011-12 10/1/2011 4.90% 4.90%

FY 2012-13 no increase 0.00% 0.00%

FY 2013-14 no increase 0.00% 0.00%

FY 2014-15 7/1/2014 3.00% 3.00%

FY 2015-16 10/1/2015 3.50% 3.50%

FY 2016-17 10/1/2016 4.00% 4.00%

FY 2017-18 10/1/2017 3.00% 3.00%

FY 2018-19 10/1/2018 3.00% 3.00%

FY 2019-20 10/1/2019 4.00% 4.00%

FY 2020-21 10/1/2020 2.00% 2.00%

FY 2021-22 no increase 0.00% 0.00%

FY 2022-23 10/1/2022 4.00% 4.00%

FY 2023-24 10/1/2023 4.00% 4.00%

FY 2024-25 (proposed) 10/1/2024 5.00% 5.00%

Water and sewer revenue rates are a critical component for funding the operation, maintenance and needed capital improvements for water treatment facilities and distribution lines, and for wastewater collection lines and treatment systems. Property taxes are not used to finance water and sewer utility services.

WATER AND SEWER FUND EXPENDITURES

Below is a summary of Water and Sewer Fund expenditures:

• Personnel Services is increasing by $1,061,386, or 8.1%, due to the compensation and classification study increases that went into effect in the summer of 2023, an average midyear merit adjustment of 3%, increased health insurance costs, and increased employer contributions for retirement.

The proposed budget includes the addition of two new positions for Water/Sewer. A Public Services I.T. Coordinator ($123,175) will provide oversight of the implementation, ongoing maintenance, and upgrades of the new work order management system, as well as provide reporting, training, and analytical support. An Assistant Superintendent ($94,820) at the Ward Water Plant will assist in the oversight of the operational and regulatory requirements and help ensure the health and safety regulations of the plant are met.

• Operating expenses have increased $1,327,620, or 7.7% primarily due to continuing increases in costs for chemicals, maintenance supplies, and parts for the aging infrastructure of the system and facilities.

• Pay-go capital includes $11,154,983 in funding for water and sewer capital projects.

ELECTRIC FUND

The FY 2024-25 Electric Fund Budget of $147,327,348 represents an 8.8%, or $11,960,648 increase from the FY 2023-24 adopted budget. There is no increase in electric rates but there are several changes to rate structure as well as a new electric vehicle charging station fee, as outlined earlier in the message. In addition, our rate consultant is finalizing a rate study for a restructuring of rates on the commercial/industrial side. Once complete, the findings will be presented to the City Council.

Wholesale power cost for FY 2024-25 is budgeted at $83.0 million, which is the single largest expense in the Electric Fund and citywide budget.

The budget continues to invest funds to maintain electric infrastructure and includes $25,810,000 in major capital projects. These routine capital investments are necessary to maintain efficient and ongoing operation of the Electric System. Capital costs are increased by $15,960,000, and drivers include the automated meter reading initiative (AMI) project ($7,000,000), converting lines underground in the Showroom District ($3,100,000), beginning to set aside funds for a new municipal operations center ($7,000,000) and continued electric improvements on Washington Street ($4,000,000).

CAPITAL IMPROVEMENT PROGRAM

Capital investments and reinvestments are critical elements in the City’s total financial program. Capital improvements are financed by one of several methods.

The first method involves the issuance of voter approved general obligation bonds generally backed and paid by property taxes. The second method is a slight variation of the first and allows the City to issue small amounts of what are known as two-thirds general obligation bonds, which are utilized from time-to-time and do not require tax increases or voter approval. Limited obligation bonds are a general government debt financing mechanism similar to general obligation bonds; however, limited obligation bonds do not require voter approval to issue the debt. Another method involves revenue bonds, backed, and paid by revenues from our water and sewer and our stormwater system. Revenue bonds do not require voter approval. The final method is pay-go capital financing. The pay-go alternative, developed and expanded in the past ten years, allows the City to fund needed capital improvements from current revenues, grants, and other funds, thereby avoiding the additional and higher costs associated with the issuance and financing of long-term debt.

Capital investments are necessary for a city to replace existing infrastructure and to invest in new infrastructure. Debt financing of this infrastructure is a sound financial strategy if the borrowing is done in a strategic and conservative manner. Local policies are in place to ensure that borrowing is done responsibly, and oversight of our borrowing practices are in place through the Local Government Commission. The City is well prepared to address the replacement of existing infrastructure to meet and provide for future growth and development.

DEBT FINANCING

The City has engaged Davenport & Company, LLC of Richmond, Virginia as our financial advisor since 2003. Davenport has assisted the City with general obligation and revenue bond planning and modeling, financial policies, rating agency strategies and interactions, bond issuance, investment analysis, and bond refunding analysis.

This spring, the City utilized Davenport & Company, LLC to update a model for potential debt scenarios for both general obligation and revenue bond (Water/Sewer) debt issuances in the near term and present their findings to the Mayor and City Council. This provided the most up-to-date information on our debt capacity and ability to fund future debt service payments.

GENERAL OBLIGATION (GO) BONDS

General obligation bonds are a common type of municipal bond that are secured by the full faith and credit of the tax rate to repay bond holders. This debt instrument was used to fund the 2004 bond authorization and is being used to fund the $50.0 million authorization that was approved by voters in 2019. The authorization is for the following uses:

• Streets and Sidewalks - $22,000,000

• Parks and Recreation - $21,500,000

• Housing - $6,500,000

The first series of bonds was issued in FY 2021-22. Issuances of $12,000,000 for Transportation (FY 2025-26) and $12,000,000 for Parks and Recreation (FY 2025-26) remain. The debt service fund has the capacity for the payments on these issuances with no change to the current property tax allocated for debt service (3.4 cents).

TWO–THIRDS GENERAL OBLIGATION BONDS

Two-thirds bonds are State authorized General Obligation bonds that may be issued without voter approval. The statute allows a local government to issue up to 2/3 of the amount of general obligation bonds that were paid off in the previous year. These bonds can be used for any other general obligation purpose other than the financing of auditoriums, coliseums, arenas, stadiums, civic centers or convention centers, art galleries, museums, historic properties, public transportation systems, cable television systems, or redevelopment projects.

A two-thirds bond issuance of $5,425,000 for Transportation was approved this spring and an issuance of $5,555,000 is planned for FY 2025-26. In addition to the upcoming general obligation bond issuance, the debt service fund has the capacity for the payments on these issuances with no change to the current property tax allocated for debt service (3.4 cents).

LIMITED OBLIGATION BONDS (LOBS)

Limited obligations bonds are a general government debt financing mechanism similar to general obligation bonds; however, limited obligation bonds do not require voter approval to issue the debt. An asset is pledged as collateral to secure the financing. Recent projects that utilized LOBS as a funding strategy include the downtown stadium and the new Police Headquarters.

Several projects included in the debt modeling, totaling approximately $85,000,000, could utilize this funding strategy. The projects include stadium improvements, 300 Oak Street, a new City Hall, and downtown parking improvements. The debt modeling included several tax rate increase scenarios to fund the debt service on these projects.

The current budget does not include any increase to the property tax rate allocated for debt service. Staff will continue to work with Davenport & Company, LLC on the future debt modeling, recasting the model when new information is available. The City will also continue to assess our debt capacity, and explore new sources of revenue, to ensure sound long-term fiscal management while making investments that further support growth in High Point.

WATER/SEWER REVENUE BONDS

Revenue bonds are municipal bonds that finance income-producing projects that are secured by a specified revenue source, such as water and sewer or stormwater rates. Revenue bonds are issued by the government agency for operations that run in the manner of a business, with operating revenues and expenses, such as our Water & Sewer Fund. The pledge to repay the bond is guaranteed by the rates of the Water & Sewer Fund.

Over the next five years, staff has identified an estimated $234.8 million in additional major water and wastewater bond projects. The capital improvement plan anticipates cash funding of $65.6 million and debt funding of $169.2 million in water and sewer projects.

The debt plan modeled by Davenport & Company for future revenue bond issuances for the Water and Sewer Fund assumes rate increases in the 4-6% range. As with governmental debt, staff will continue to work with Davenport & Company, LLC on future debt modeling for enterprise funds, recasting the model when new information is available. Capital project costs have increased significantly over the past year and these increases, along with the potential for additional federal and state regulations on emerging compounds like PFAS, will have an impact on the future debt capacity for Water and Sewer.

BOND AGENCY RATINGS

The City’s capacity to finance and pay for needed improvements is evaluated from time to time by the following rating agencies: Moody’s Investment Services, Standard & Poor’s, and Fitch Ratings. Protecting and enhancing our bond ratings is one of our highest priorities.

The City has seen a series of bond rating upgrades since 2003, including the addition of a AAA bond rating assignment by Standard & Poor’s. The City’s bond ratings were re-affirmed in conjunction with our bond sale in April 2022.

PAY-GO FINANCING

The City has made a commitment to fund a healthy level of pay-go financing for routine improvements, infrastructure maintenance, and grant matches of capital projects funded from state and federal grant programs. Below is a summary of pay-go projects in each fund.

GENERAL CAPITAL FUND PAY-GO

The proposed budget includes $3,682,000 in general capital pay-go projects.

*The ERP Upgrade includes funding from the Water/Sewer Fund ($375,000), Electric Fund ($600,000), Solid Waste Fund ($105,000), and Stormwater Fund ($45,000).

WATER AND SEWER PAY-GO

Water and Sewer pay-go capital investments are budgeted at $11,154,983. Projects Include: Generators – Automation/Replacement

Obsolete Neighborhood Water Lines

Obsolete Neighborhood Sewer Lines

Westside – Final Clarifier #3 Coating Repairs

Water Storage Tank Maintenance

Wastewater Plants/Lift Stations Equipment Replacement

Water Distribution Master Plan Recommendations

– Highway 70/29 at South Main

Ward Water Treatment Plant Projects

Eastside – Rebuild Final Clarifier #4

Ward Water Plant – Filters 1-4 Rebuild 1,721,000

with Lead/Copper Rule Revisions

ELECTRIC PAY-GO

The Electric pay-go projects are budgeted at $25,810,000. Projects include:

Transformer 2 Replacement

NCDOT Eastchester Widening 2,500,000 New Municipal Operations Center

Downtown Underground – Showroom District 3,100,000 Phiilips Substation Expansion 1,000,000 Washington Street Electric Project 4,000,000

Automated Meter Reading Initiative 7,000,000

SOLID WASTE PAY-GO

The Solid Waste pay-go budget is $1,626,000. The projects planned are: Landfill Develop – Land Purchase

Valley Ph 1 – IV Post Closure – Reserve

Solid Waste Equipment Replacement

Valley Landfill Transfer Station

Underlayment – Ingleside/Kersey Valley 895,000

Waste Capital Total $1,626,000

OTHER PAY-GO

The $6,887,383 in other FY 2024-25 pay-go investments includes the scheduled replacement of vehicles, normal computer and radio replacements, routine stormwater projects, and others outlined below:

Fire Apparatus Replacement $1,100,000 Fleet Replacement Program

CCTV Trailer/Equipment Replacement

Rockford/Rotary/Farris Stormwater Improvements

Computer System Replacements

FUND BALANCES/RETAINED EARNINGS

Fund balances and retained earnings are critical, but often misunderstood and an overlooked part of the annual budget. Fund balances and retained earnings consist of unencumbered and unappropriated monies. They are essential for maintaining our strong bond ratings as well as maintaining positive year-round and year-to-year cash flows. Strong fund balances are essential as we plan for subsequent budgets.

The North Carolina Local Government Commission recommends maintaining a minimum of 8.0% balance in each fund. This is necessary for maintaining positive year-round cash flows, reducing the need for short-term borrowing, and assisting in maintaining an investment grade bond rating. The High Point City Council’s adopted Fiscal Policy calls for a minimum 10.0% fund balance of estimated expenditures as a signal of financial strength and fiscal stability. The City of High Point applies the policy to all operating funds except the Water-Sewer Fund, which calls for a 50% fund balance, and the Economic Development, General Debt, and General Capital Project funds, which are covered by more specific strategic plans.

STRATEGIC PLAN

The High Point strategic plan was developed by the Mayor and City Council in March 2016 and was reviewed with new goals added in February 2020. In November 2022, the Mayor, City Council, and senior staff held a strategic planning retreat, to revisit strategic plan priorities, reflect on the recent successes of High Point, revise existing goals to accommodate community changes, and develop a plan for implementing priorities. Most recently, the strategic framework was reviewed at a one-day retreat in February 2024

The updated framework of long-term and short-term goals is shown below, as well as progress made towards these goals:

Downtown Catalyst Project

• Complete Streets & Walkability

• Stadium renovations

• Parking

• Streamline business activation process

• Implementation of Raise Grant

• Consideration of rebranding and marketing downtown to be seen as the heart or core of the city

Progress

• RAISE grant engineer selection process complete

• Main Street study (Lexington to Church) in progress

• Parking study complete

• Stadium renovations underway

• Areas identified for two new parking decks in Catalyst Area

• State appropriation in partnership with Market Authority for South Main

Southwest/Small-Scale Manufacturing Corridor Plan

• Develop 300 Oak vision

• Revisit & align existing plans/strategies

• Phase 1 greenway design

• Benchmark industrial revitalization in other cities

Progress

• Creative EDC conducted initial charette for 300 Oak

• Staff engaged to acquire remaining parcels to sustain 300 Oak plan

• Research underway for 300 Oak focused on sustainability

• Design underway for commercial shared-use kitchen

Raise High Point’s Profile as a World Arts & Design Capital

• Adopt a public arts policy

• Make Arts & Design a focus of our downtown aesthetic

• Enhance capacity to host Arts & Design events

• Explore Arts District

• Explore creation of an Arts & Design Museum

• Emphasize the Furniture Market and American Home Furnishings Hall of Fame as key arts and design stakeholders

Progress

• Building stronger relationship with Arts Council

• Street art project implemented with Market Authority

• Stormwater drainage street art at the High Point Library

Support Neighborhood Redevelopment Efforts

• Pick a neighborhood and develop implementation plan

• Involve Tree Initiative

• Dirt moving behind left field

• Zoning policies for mixed use & density

• Follow EDC model/mindset

• Housing policies/ receivership (Make local friendly)

Progress

• Working through options for housing in Catalyst Area

• HUD environmental review underway to preserve options for housing at Church Street property

• Development of Comprehensive 2045 Plan

• Research underway regarding management of a housing trust fund

CONCLUSION

We’ve been fortunate over the past few years as a city and region to see a record number of development announcements and to have strong partnerships with key stakeholders and support from both our state and federal delegations for local projects that will provide long-term benefits to the community. The budget as proposed will allow us to deliver the economic, social, and environmental benefits that will set the foundation for future generations who will call High Point home and focus on providing the quality services our citizens rely upon daily.

I want to acknowledge all the staff members who assisted in the preparation of this policy document. The efforts and professionalism of Deputy City Manager Greg Ferguson, Assistant City Manager Eric Olmedo, Assistant City Manager Damon Dequenne, Managing Director Jeron Hollis, Budget and Performance Director Stephen Hawryluk, Strategic Initiatives Manager Meridith Martin, Budget and Evaluation Analysts Roslyn McNeill and Don Scales, Executive Assistant Amy Myers, and the rest of our executive team are appreciated.

I also want to thank all the City’s employees for working hard every day to provide a high level of service to our citizens. Finally, I thank the Mayor and City Council for your leadership, passion to serve, trust in me, and commitment to the City of High Point.

Respectfully submitted,

Tasha Logan Ford City Manager

VISION MISSION

Creating the single most livable, safe, and prosperous community in America

The City will serve as the catalyst for bringing together the community's human, economic, and civic resources for the purpose of creating the single most livable, safe, and prosperous community in America

STRATEGIC PRIORITIES

DOWNTOWN CATALYST PROJECT

• Complete Streets & Walkability

• Stadium renovations

• Parking

• Streamline business activation process

• Implementation of Raise Grant

MANUFACTURING CORRIDOR PLAN

• Develop 300 Oak vision

• Revisit & align existing plans/strategies

• Phase 1 greenway design

• Benchmark industrial revitalization in other cities

WORLD ARTS & DESIGN CAPITAL

• Adopt a public arts policy

• Make Arts & Design a focus of our downtown aesthetic

• Enhance capacity to host Arts & Design events

• Explore Arts District

• Explore creation of an Arts & Design Museum

SUPPORT NEIGHBORHOOD REDEVELOPMENT EFFORTS

• Reduce blight

• Dirt moving behind left field

• Zoning policies for mixed use & density

• Follow EDC model/mindset

• Housing policies/receivership

INTRODUCTI ON

Contained in this document is the City of High Point Fiscal Year 2024-2025 Budget. The budget format was prepared to make it simple and easy to read. We have tried to prepare a document that contains the information necessary for the Mayor, City Council, and the citizens of High Point to understand the operations of the City and the resources and costs necessary to carry out its various missions for fiscal year 2024-2025.

The book is divided into funds beginning with the General Fund. The City's Five-Year Capital Improvement Program (CIP) along with a description of each project is found in the Capital Improvement Program section.

The Summaries/Analyses section contains revenue and expense summaries, charts, and other data pertinent to the preparation of this budget. Revenue information is presented first, and expense summaries follow.

Revenue and Expense Summaries are found at the beginning of each fund's section. The Revenue and Expense Summaries provide a consolidated picture of each fund's revenue and expense status.

A glossary of frequently used terms is found in the last section of the document to assist in understanding the budget.

We hope that this book is presented in a fashion that will aid you in the location of specific information. Your comments and suggestions are greatly appreciated in helping us compile a document that serves your needs.

Any comments or questions should be directed to:

City of High Point Budget and Evaluation Department

P.O. Box 230 High Point, NC 27261

Telephone: 336-883-3296

Fax: 336-822-7026

ORGANIZATIONAL CHART

ORGANIZATION LEADERSHIP

Managers

City Manager

Deputy City Manager

Assistant City Manager

Assistant City Manager

Managing Director

Department Directors

City Attorney

City Clerk

Community Development Director

Customer Service Director

Economic Development Director

Electric Utilities Director

Engineering Services Director

Financial Services Director

Fire Chief

Fleet Services Director

Human Resources Director

Info. Technology Serv. Director

Inspections Services Director

Libraries Director

Parks & Recreation Director

Planning & Development Director

Police Chief

Public Services Director

Theatre Director

Transportation Director

Budget

& Evaluation Staff

Tasha Logan Ford

Greg Ferguson

Eric Olmedo

Damon Dequenne

Jeron Hollis

Meghan Maguire

Sandra Keeney

Thanena Wilson

Jeremy Coble

Peter Bishop

Tyler Berrier

Trevor Spencer

Bobby Fitzjohn

Brian Evans (interim)

Kevin Rogers

Angela Kirkwood

Adam Ward

Reggie Hucks

Mary M. Sizemore

Lee Tillery

Sushil Nepal

Curtis Cheeks (interim)

Robby Stone

David Briggs

Greg Venable

Stephen Hawryluk, Budget & Performance Director

Meridith Martin, Strategic Initiatives Manager

Roslyn J. McNeill, Budget Analyst

Don Scales, Budget Analyst

CHARACTERISTICS

LAND AREA (SQ.

Sources: City of High Point Planning Department, NC Department of Commerce, US Census Bureau, and US Bureau of Labor Standards

CITY OF HIGH POINT, NC PROFILE

High Point is centrally located in the Piedmont Triad region of the State of North Carolina and is currently the ninth-largest municipality in North Carolina. Settled before 1750, High Point was incorporated in 1859.

Being a great place to live also means being a great place to work. High Point is a thriving city of 118,370 residents situated along the rolling Piedmont crescent region of North Carolina. High Point lies in four counties, Guilford, Davidson, Forsyth, and Randolph. Being centrally positioned along the East Coast with easy access to several interstate highways and the Piedmont Triad International Airport, High Point is a great place to live and to do business.

HPMKT

High Point Market

A globally connected community, High Point earned its nicknames as North Carolina's International City™ and Home Furnishings Capital of the World™. The first North Carolina furniture exposition was held in High Point in 1905. In 1921, a brand-new Southern Furniture Exhibition Building was built with ten stories and 249,000 square feet at a cost of $2 million and the event has grown into an internationally renowned furniture trade fair for all home furnishings. Twice each year, the City hosts the High Point Market, the world's largest home furnishings trade show. High Point Market has a tremendous impact on the economy of the entire Piedmont Triad. All 50 states and more than 110 foreign countries are represented at these markets. High Point continues to be the prime location in the United States to purchase brand name furniture at a substantial discount.

The furniture industry and developing textile manufacturing set the pace for two 20th century growth booms in High Point.

A massive full-service public library contains nearly 400,000 books, music recordings, videotapes, audiobooks, periodicals, newspapers, and a comprehensive collection of books related to history and genealogy equipped with many attractions for Youth and Young Adults.

Missions of the High Point Public Library

• Nurturing the joy of reading

• Sharing the power of knowledge

• Strengthening the sense of community

• Enhancing cultural and economic vitality

The High Point Library also hosts the High Point Farmers Market which aligns itself to promote a healthy lifestyle and a sense of community in a family friendly gathering place. Opening and closing dates are subject to change. Admission to the event is free for shoppers, however vendor booth spaces require a minimal fee to cover the costs of event production.

The High Point Museum is a thriving, trusted community center where people come to learn about themselves and our city.

The Museum has two galleries - the Lecture Gallery and the Changing Gallery. It also hosts smaller exhibits in the lobby and on the mezzanine.

Each of the Museum’s permanent exhibits offers insight into High Point, NC’s past where you can explore the images and stories that record the individuals who lived, worshipped, and worked in High Point.

Adjacent to the High Point Museum is the Historical Park which features three historic buildings including the John Haley House (1786), the Hoggatt House (1801), and a working blacksmith shop (1841).

Owned and operated by the City of High Point, the complex represents one of the nation's first cooperative ventures between municipal government, private enterprise, and the arts. In 1975 the International Home Furnishings Center was awarded the Esquire/BCA "Business in the Arts" award in recognition of its cooperation with the City of High Point.

Constructed in 1975, the facility combines contemporary "sculptured" architecture with an interior design dominated by earth tones. The Theatre features an elegant 900-seat auditorium with continental style seating. Other facilities include three large exhibition galleries for meetings, displays, or receptions. The center is suited for meeting use, all types of performing arts, and is available to both professional and amateur groups on a rental basis.

BUDGET PREPARATION PROCESS

Preparation of the City of High Point's fiscal year budget is a process that involves the citizens of High Point, the Mayor and City Council, individual city departments, and the Budget and Evaluation Department.

It is a process that begins in October with preliminary budget meetings and budget software and process training sessions with departments. During the Fall, the Budget and Evaluation Department prepares revenue and expenditure forecasts for the current budget year. The Budget and Evaluation Department distributes operating base budget target numbers and personnel workpapers to departments and distributes grant request forms to departments and to outside non-profit organizations requesting funding.

City management and department directors meet to discuss immediate goals and directives, strategic plan initiatives, and major issues to be emphasized in the upcoming year. The City Manager gives general direction regarding economic conditions and how these conditions should relate to budget proposals.

Capital Budget Preparation

In October, departments begin preparing their Five-Year Capital Improvement Program. This process requires departments to submit financial information for each project, detailing the description of the project, the projected beginning and end dates, as well as how the project will be financed.

Department directors submit their Five-Year Capital Improvement Program (CIP) requests to the Budget and Evaluation Department, ranking projects by priority. The Budget and Evaluation Department prepares the CIP requests for review. The assistant city managers, department directors, and the Budget and Evaluation Department perform the next review of these requests. Changes that best meet the City’s needs are incorporated into the requests. Upon completion of these reviews in early winter, the program is then presented to the City Manager for review at which time additions or reductions may be made as any new priorities are identified.

Operating Budget Preparation

Each Fall/Winter, the Budget and Evaluation Department meets with department staff and conducts budget software training and outlines expectations for the upcoming budget year. The Budget and Evaluation Department prepares revenue forecasts and operating budget target numbers for the upcoming year. The budgeting software is opened for each department to begin the input of their operating budget requests. The Budget and Evaluation Department distributes personnel workpapers and grant request forms to each department.

At the City Council's discretion, a City Council/Management Team retreat is held early in the calendar year, during which the Mayor and City Council communicate their concerns and priorities and update the Strategic Plan for the upcoming year. The City Manager’s staff presents an overview of the current budget year, preview of the year-end financial picture, and major capital projects on the horizon. This important meeting provides valuable insight and feedback from Council members for the management team to use in developing the proposed budget.

Once budget information is input into the budget software, budget review meetings are scheduled as necessary during February/March with department heads and the Budget and Evaluation Department to study their requests. The City Manager is given a briefing on any new programs that are being proposed, new position requests, as well as major increases in the budget requests. The Budget and Evaluation Department produces the initial recommended budget to be reviewed with the City Manager. The Manager makes any final revisions to the proposed budget along with the proposed tax rate and any utility rate or other fee changes being proposed for the new fiscal year.

In May the City Manager's proposed budget is presented to the Mayor and City Council, the press, and the public. The proposed budget is made available for public inspection in the office of the City Clerk, the Library, and the Budget and Evaluation Department.

During May/June, the Mayor and City Council hold a series of budget work sessions in which review of the budget occurs. During these meetings the City Council discusses the budget and makes any necessary adjustments. North Carolina General Statutes require one public hearing be held for public comment on the proposed budget. This hearing is conducted in May or June, prior to adoption of the budget. The City Council is required by law to formally adopt the budget at a City Council meeting on or prior to June 30.

The proposed budget is also posted on the City of High Point’s website and can be accessed at www.highpointnc.gov.

BUDGET CALENDAR

PLANNING October - January

• Budget team prepares revenue and spending forecasts for current budget year

• Budget Kickoff - January 10, 2024

• Budget team distributes operating base budget target numbers and personnel workpapers to departments

• Operating/Performance Measures training sessions - Jannuary 17 & 18, 2024

• Budget team distributes Grant request forms - Due January 6, 2024

BUDGET REVIEW February - April

• Revenue, Expenditures and Change Requests updated in QuesticaDue January 26, February 2, & February 9, 2024

• Performance Measures for the first six (6) months of the current yearDue January 26, February 2, & February 9, 2024

• Budget team distributes Outside Non-Profit Grant Application -Due February 9, 2024

• Budget team initial review of departmental requests

• Budget team review with City Manager's Office

CITY COUNCIL REVIEW May

• Proposed budget presentation to Mayor and City Council - May 6, 2024

• Mayor and City Council Budget Review

• Budget Work Sessions

• Budget public hearing - May 20, 2024

ADOPTED BUDGET June

• Adoption of FY 2023-2024 Annual Budget and Related OrdinancesJune 3, 2024 (tentative)

BUDGET DEVELOPMENT

POLICIES

State Budget Statutes

The City of High Point annual budget shall be prepared in accordance with the General Statutes of the state of North Carolina section 159-8(a) that requires an annual balanced budget defined as follows: The budget ordinance is balanced when the sum of estimated net revenues and appropriated fund balances is equal to appropriations.

The City of High Point adheres to state statutes by strictly applying the following policies in the development of its annual operating budget. These policies provide the basis for decisionmaking and in continuing a tradition of financial stability in High Point’s operation.

Budget Policy

1. The City of High Point shall prepare an annual budget appropriation document covering the twelve-month period beginning July 1 and ending June 30 of the following year.

2. Before April 30th of each year, each department head shall present budget requests and revenue estimates for the coming budget year.

3. The proposed budget document shall be presented to the City Council for consideration no later than June 1 with adoption of the approved ordinance by June 30.

4. One public hearing is mandated by North Carolina State General Statutes.

5. The City budget will be developed incorporating all programs and service levels as established by City Council and as required by all statutes.

6. Budgets shall be prepared at the department level and provide the basis for the City’s financial management and operation. The adopted appropriations by fund shall constitute the maximum expenditure authorization for that fund and may be amended only by action of the City Council.

Revenue Policy

1. Estimation of revenue receipts shall be realistic and attainable both in the determination of fund balance generation in the current fiscal year and in the estimated receipts for the following fiscal year. Where judgment is required, conservatism shall be the rule.

2. Amounts appropriated into fund balance shall not exceed the sum of cash and investments minus the sum of liabilities, encumbrances, and deferred revenues arising from cash receipts at the close of the fiscal year preceding the budget year.

3. Every effort shall be made to maintain a balance of 10% of the City’s estimated expenditures in undesignated fund balance. Appropriations from unappropriated fund balance shall be made only at the direction of the City Council.

4. Water, sewer, stormwater, and electric rates shall be set at an amount that will enable these funds to be self-supporting.

5. The practice of transferring from the Electric Fund to supplement the General Fund was eliminated beginning with Fiscal Year 2000-2001. The Proposed FY 2024-2025 budget does not include a transfer of electric funds.

6. One-time or special revenues shall not be used to finance ongoing City operations but rather be used for the funding of special projects.

7. An aggressive policy of seeking the collection of delinquent utility and license fee accounts will be maintained.

Debt Management Policy

The goal of the City’s debt policy is to manage debt by maintaining a sound fiscal position and protecting the City’s credit rating. Long-term debt shall only be used to finance those capital projects that cannot be financed with current revenues and will require strong financial administration.

When the City considers debt financing, analyses of the financial impact of short-term and longterm issuing of the debt are considered. Issuing long-term debt commits the City’s revenues several years into the future and may limit its flexibility to respond to changing service priorities, revenue inflows, or cost structures. For this reason, it must be determined that future citizens will receive benefit from the capital improvement that the debt will finance.

Bonds may be sold as authorized or by first issuing bond anticipation notes (BANs) to finance the bond projects. When BANs are issued, such shall be retired by the issuance of the bonds historically within a period of one year.

The payment of debt service shall be developed on a schedule that provides even or level debt payments annually in order to prevent major swings from year to year

Legal Compliance for Debt Management

1. The issuance of all bonds for the purchase of or construction of major capital projects will be with the approval of the North Carolina Local Government Commission.

2. In adherence to North Carolina General Statute 159-7, funds shall be appropriated to cover debt service before any other appropriation is authorized.

3. The legal debt margin of 8% of assessed valuation shall be maintained.

Capital Improvement Policy

1. The City shall prepare a Five-Year Capital Improvement Program (CIP) in conjunction with the annual operating budget. The first year of this program shall be presented for adoption. The subsequent four years shall be for information and planning purposes.

2. Capital expenditures included in the CIP are attributable to a specific fund (General, Water, Sewer, Electric, etc.) and will be financed from revenues assigned to that fund. Projects included in the CIP shall have a cost greater than $15,000 and a useful life of at least ten years.

3. Capital acquisitions costing not less than $5,000 and having a useful life of at least three years and which do not materially add to the value of existing assets shall be budgeted for in the operating budget of the department to which the asset is to be assigned. These acquisitions shall not represent major acquisitions that are budgeted for in the CIP. Vehicles for the City’s fleet are not budgeted for in the CIP. First-year acquisition of vehicles is budgeted in the using department; subsequent replacement vehicles are managed through the City’s Fleet Replacement Program.

4. Capital Project Ordinances (CPO) shall be established and adopted by the City Council separate from the regular operating budget ordinance and shall authorize the construction or acquisition of major capital that spans a period of time greater than one year to complete. The appropriation of the capital project ordinance budget shall remain in effect for the life of the project and not require reappropriation each fiscal year.

5. The expenditure of all bond-authorized projects will be controlled through the establishment of capital project ordinances.

BUDGET ORDINANCE AMENDMENT POLICY

North Carolina General Statute 159-8 states that each local government shall operate under an annual balanced budget ordinance.

The budget ordinance as adopted by the City Council may be amended in two ways:

(1) Budget transfers within a fund authorized by the City Manager, or (2) Appropriation increases or decreases authorized by the City Council including transfers, contributions, and reimbursements among funds.

The first procedure authorized by the budget ordinance states that the City Manager is authorized to approve transfers of appropriations within a given fund. Conversely, transfers cannot occur between funds without authorization from the City Council.

Budget Transfers Within a Fund

In order to initiate a transfer of budgeted funds from one line item to another within the same fund, the department requesting the transfer must complete a “City of High Point Budget Transfer Request” form indicating the budget account number to transfer from, the budget account number to transfer to, and the amount to be transferred. An adequate explanation of the need for the transfer must accompany the request.

The completed form must be signed by the department head and submitted to the Budget and Evaluation Department. Upon receipt, the Budget and Evaluation Department reviews the form for completeness and accuracy, verifies that the requested transfer amount is available for transfer, and determines if the request is valid.

Upon signature authorization and approval by the Budget and Performance Director or appropriate designee, the request is entered into the general ledger system to process the budget transfer. Budget transfers result in no increase or decrease in the fund’s budget.

One exception to the City Manager’s authority to transfer budget within a fund is that of contingency transfers. The City Manager is required to communicate to City Council any transfers by his/her authority out of a fund’s contingency account into any other budget for expenditure.

Fund Appropriation Increases and Decreases

The need for any budget ordinance amendment that results in either increases or decreases in a fund’s total budget or which involves transfers of budget between funds requires City Council formal authorization and approval.

For example, if revenue is made available during the fiscal year that was not included in the original adopted budget ordinance, the City Council may elect to appropriate this revenue and budget a corresponding amount of expense for a stated purpose.

In addition, the City Council may elect to transfer, contribute, or reimburse one fund from another fund for a stated purpose.

In any of these instances an increase in the fund’s budget is the result.

To implement this, the Budget and Evaluation Department prepares a Budget Ordinance Amendment which states the revenue and expense accounts involved, the amount of the amendment, and the purpose of the amendment. This Appropriation Ordinance is then presented to the City Council for deliberation and approval. When approved, the Budget and Evaluation Department files the ordinance with the City Clerk and prepares the appropriate budget transfer request forms and processes them as outlined in the section above.

ACCOUNTING SYSTEM

POLICIES

The accounting policies of the City of High Point shall conform to the generally accepted accounting principles as applicable to governments.

The diverse nature of governmental operations and the requirements of assuring legal compliance preclude recording all governmental financial transactions and balances in a single accounting entity. Therefore, from an accounting and financial management perspective, a governmental unit is a combination of several distinctly different fiscal and accounting entities, each having a separate set of accounts and functioning independently of each other.

The basis of accounting refers to the point at which revenues or expenditures are recognized in the accounts and reported in the financial statements. It relates to the timing of the measurements made regardless of the measurement focus applied. As in the basis of budgeting, accounting records for the City of High Point governmental funds are maintained on a modified accrual basis with the revenues being recorded when available and measurable and expenditures being recorded when the services or goods are received and the liabilities are incurred. In contrast to the basis of budgeting, accounting records for proprietary funds are maintained on the accrual basis in which revenues are recognized when earned and expenses are recognized when incurred.

Fund Basis

The City of High Point’s accounting system is organized and operated on a fund basis. Each accounting entity is accounted for in a separate fund, which is defined as a fiscal accounting entity with a self-balancing set of accounts recording cash and other financial resources together with related liabilities and residual equities or balances, and changes therein. Two fund types defined in the “Description of Budgeted Funds” are further defined below as well as the addition of Fiduciary Funds.

Classification Fund Type

Governmental Fund General

Special Revenue

Debt Service

Capital Projects

Proprietary Funds Enterprise

Internal Service

Fiduciary Funds Agency

Expendable Trust

Governmental Funds | These funds are, in essence, accounting segregations of financial resources. Expendable assets are assigned to the various governmental funds according to the purposes for which they may or must be used; current liabilities are assigned to the fund

from which they are to be paid; and the differences between governmental fund assets and liabilities (the fund equity) is referred to as Fund Balance. The primary measurement focus is “flow of current financial resources.” Increases in spendable resources are reported in the operating statement as revenues or other financing sources, and decreases are reported as expenditures or other financing uses.

Proprietary Funds | These funds are sometimes referred to as income determination, nonexpendable, or commercial-type funds and are used to account for a government's on-going organizations and activities which are similar to those often found in the private sector. All assets, liabilities, equities, revenues, expenses, and transfers relating to the government's business and quasi-business activities, where net income and capital maintenance are measured, are accounted for through proprietary funds. The generally accepted accounting principles here are those applicable to similar businesses in the private sector, and the measurement focus is the economic condition of the fund as a result of the events and transactions of the period. Events and transactions that improve the economic position of a proprietary fund are reported as revenues or gains in the operating statement. Those that diminish the economic position are reported as expenses or losses.

Fiduciary Funds | These funds account for assets held by the City in a trustee capacity or as an agent for other governmental units and for other funds. Each trust fund is accounted for as either a governmental or a proprietary fund.

Fiduciary funds are not budgeted in the annual budget process.

Account Groups

These represent another accounting entity used to establish control and accountability for the City's general fixed assets and the outstanding principal of its general long-term debt (General Fixed Assets Account Group and General Long-Term Debt Account Group).

These records are accounted for in a self-balancing group of accounts because the City's General fixed assets all fixed assets except those accounted for in Proprietary Funds or Trust Funds -- are not financial resources available for expenditures. The outstanding principal of the general long-term debt and general long-term liabilities not accounted for in the Proprietary Funds or Trust Funds do not require an appropriation or expenditure during the account year.

Internal Control

In developing and maintaining the City's accounting system, consideration is given to the adequacy of internal accounting controls. Internal accounting controls are designed to provide reasonable, but not absolute, assurance regarding the safeguarding of assets against loss from unauthorized use or disposition and the reliability of financial records for preparing financial statements and maintaining accountability for assets.

The concept of reasonable assurance recognizes that the cost of a control should not exceed the benefits likely to be derived, and the evaluation of costs and benefits requires estimates and judgments by management.

All internal control evaluations occur within the above framework. We believe that the City's internal accounting controls adequately safeguard assets and provide reasonable assurance of proper recording of financial transactions.

ELECTRIC FUND TRANSFER

POLICY

Because of the major impact that this revenue source could have on the General Fund, and therefore, the tax rate, special comment is warranted on the Electric Fund.

On February 1, 1996, the High Point City Council adopted an Electric Fund Transfer Policy, which restricts the amount of funds which can be transferred to the General Fund from the Electric Fund. The policy provisions are summarized below:

♦ Whereas the City Council desires to preserve the financial integrity of the Electric Fund and to reduce the General Fund’s dependence on Electric Fund transfers…

♦ Whereas if electric services had been provided by an investor-owned utility instead of the city’s Electric Fund, such utility would have paid municipal ad valorem taxes to the General Fund of the City and would have been entitled to a return on investment;

♦ Therefore, be it resolved by the City Council, that the following policy regarding payments in lieu of taxes and operating transfers from the Electric Fund be adopted:

1. The City shall budget annually a payment in lieu of taxes amount from the Electric Fund to the General Fund that approximates the amount of ad valorem taxes that would have been paid had electric services been provided by an investor-owned utility.

2. Operating Transfers: The City may budget an operating transfer from the Electric Fund to the General Fund not to exceed 3% of the gross fixed assets of the Electric Fund as reported in the City’s most recent audited financial statements.

The transfer to the General Fund was eliminated in FY 2000-2001. The FY 2024-2025 Proposed Budget does not include a transfer from the Electric Fund. The amount budgeted for Payment in Lieu of Taxes from the Electric Fund to the General Fund for FY 2024-2025 is $986,578.

BASIS OF BUDGETING AND BUDGET STRUCTURE

Basis of Budgeting

The City’s budget is developed on a modified accrual basis for all funds, which means that obligations of the City are budgeted as expenditures, but revenues are recognized only when they are measurable and available Available means that the funds are collectible within sixty days of the fiscal year-end. The Local Government Budget and Fiscal Control Act requires that the budget ordinance be balanced. North Carolina General Statute 159-8(a) states:

Each local government and public authority shall operate under an annual balanced budget ordinance....A budget ordinance is balanced when the sum of estimated net revenues and appropriated fund balance is equal to appropriations.

Appropriations are exclusively limited to cash and cash equivalents less current claims against that cash. The statutory formula is cash and investments minus the sum of liabilities, encumbrances, and deferred revenues arising from cash receipts.

The Annual Budget authorizes and provides the basis for the City's financial management. The adopted appropriations constitute the maximum expenditure authorization during the fiscal year and can only be amended by action of the City Council.

Budget Structure

The City's budget is divided into funds. An annual budget is adopted for the General, Special Revenue, Debt Service, General Capital Projects, Enterprise, and Central Service Funds. (These are illustrated in the “Budgetary Fund Structure” chart and further defined in the “Description of Budgeted Funds” on the following two pages). Within each fund are the separate departments with various activity budgets. The Annual Budget is adopted at the department level.

Budgetary Control

Beginning with the budget for fiscal year 2016-2017, a new budget software system was implemented. Questica is a web-based application that uses state-of-the-art technology to provide entities with the functions and features necessary to gain visibility into their financials and control their operating budgets. The program ensures the budgeting cycle runs smoothly and securely for users. The product also includes a Salary and Position Planning module, a Capital Improvement Planning module, and a Performance Management module.

The implementation of this software has eliminated the need for the Budget and Evaluation Department to push spreadsheets out to departments for budget preparation. Departments enter budget requests directly into the budget system and can generate individual reports at the fund, department, and accounting unit levels.

The system will also allow many “what if” scenarios to be tested. All preparation of the budget up to adoption is done in the Questica software. The budget system is solely a system for

preparing and balancing the budget. The budget is uploaded into the Lawson Financial System following adoption.

Financial Management System

The financial system implemented in fiscal year 2006-2007 by the City of High Point is Infor Lawson Enterprise Resource Planning (ERP) that provides for excellent fiscal management.

The General Ledger acts as the heart of the financial management system. The General Ledger function interfaces with other Infor Lawson Applications such as Purchasing and Accounts Payable, each of which feed into the General Ledger.

The Infor Lawson Financial System budget edits allow for excellent budgetary control at the department or accounting unit level. This functionality checks for available funds before new commitments and encumbrances are released by the system.

BUDGETARY FUND STRUCTURE

GOVERNMENTAL GROUP

General Fund

• General Government

• Public Safety

• Public Services

• Planning & Community Development

• Cultural & Recreation

PROPRIETARY

GROUP

Internal Service Funds

• Central Service Funds

• Print Shop

• Radio Repair

• Computer Replacement

• Fleet Maintenance

• Insurance Reserve

• General Risk Retention

Economic Development

Special Revenue

• Special Grants

• Community Development

• Showroom and Occupancy Tax

Debt Service

• General Debt Service

Capital Projects

• General Capital Projects

Enterprise Funds

• Water-Sewer Fund

• Electric Fund

• Mass Transit Fund

• Parking Fund

• Solid Waste Fund

• Stormwater Fund Legend:

Fund Group Level: Gray

Fund Level: Blue

Below Fund Level: Red

The City’s budget is developed on a modified accrual basis for all funds, which means that obligations of the City are budgeted as expenditures, but revenues are recognized only when they are measurable and available. As in the basis of budgeting, accounting records for the City of High Point governmental funds are maintained on a modified accrual basis with the revenues being recorded when available and measurable and expenditures being recorded

when the services or goods are received, and the liabilities are incurred. In contrast to the basis of budgeting, accounting records for proprietary funds are maintained on an accrual basis in which revenues are recognized when earned and expenses are recognized when incurred.

DESCRIPTION OF BUDGETED FUNDS

The City of High Point budget consists of two basic fund types: Governmental Funds and Proprietary Funds

GOVERNMENTAL FUNDS

The measurement focus of governmental funds is upon determination of financial position and changes in financial position rather than upon net income.

General Fund

The General Fund is used to account for general government operations of the City, which are financed through taxes or other general revenues, contributions, reimbursements, or transfers from other funds. The General Fund accounts for all financial transactions not required to be accounted for in another fund. The Economic Development Fund is used to account for funds appropriated for investment incentives to aid in attracting investors to the City.

Special Revenue Funds

 Special Grants is used to account for revenues received from federal, state, and local sources or groups designated for expenditure on particular programs and projects. These programs and projects are usually non-recurring in nature and of short duration.

 Community Development is used to account for revenues and expenses derived from the Community Development Block Grant entitlements to the City.

 Showroom and Occupancy Tax is used to account for revenues from the occupancy tax on hotels and rental properties and the showroom privilege license tax. The revenues are primarily passed on to Visit High Point and the High Point Market Authority for tourism and furniture market promotion and administration.

General Debt Service Fund

The General Debt Service Fund is used to account for the accumulation of resources for and the payment of general long-term debt, principal and interest for bonded indebtedness incurred for the financing of projects associated with General Fund activities. (Debt service for enterprise funds is accounted for in those funds.)

General Capital Projects Fund

The General Capital Projects Fund is used to account for the acquisition or construction of major capital facilities, equipment, and improvements other than those financed by the enterprise funds.

PROPRIETARY FUNDS

The measurement focus of proprietary funds is upon determination of operating income, changes in net assets, financial position and cash flows. Use is required for operations for which a fee is charged to external users.

Internal Services Funds

 The Central Services Fund is used to provide centralized services such as radio, computer, and fleet services on a cost-reimbursement basis that provides the revenue to support the Central Services Fund.

 Insurance Reserve Fund is used to account for revenues and expenses for Health, Dental, Life Insurance, and Worker’s Compensation.

 General Risk Retention Fund is used to accumulate claim reserves and to pay claims and administrative fees for general and auto liability claims in the City’s self-funded risk program.

Enterprise Funds

 Water-Sewer Fund is an enterprise fund used to account for the provision of water and sewer services to the residents of the City and some county residents. It includes all operating, debt service, and capital improvements associated with providing water and sewer services.

 Electric Fund is an enterprise fund used to account for the provision of electric service to the residents of the City. It includes all operating, debt service, and capital improvements associated with providing electric service.

 Mass Transit Fund is an enterprise fund used to account for the operation and maintenance of the City’s public transportation system, High Point Transit System.

 Parking Fund is an enterprise fund used to account for the operation and maintenance of the City’s various parking facilities. It includes all operating, debt service, and capital improvements for the parking facilities.

 Solid Waste Fund is an enterprise fund used to account for the operation and maintenance of the City’s landfill, municipal recycling facility and garbage collection. It includes all operating, debt service, and capital improvements for the landfill and recycling facilities.

 Stormwater Fund is an enterprise fund used to account for the operation and maintenance of the stormwater program, which manages stormwater runoff, bank stabilization, and maintenance of retention lakes and ponds. All expenses including debt service and capital improvements for the stormwater operation are included in this fund.

FISCAL POLICY GUIDELINES

The City of High Point’s Fiscal Policy Guidelines were originally adopted April 3, 2006, and were most recently revised on June 1, 2021. The Guidelines consist of six sections: Objectives, Capital Improvement Budget Policies, Debt Policies, Reserve Policies, Budget Development Policies, and Cash Management and Investment Policies.

OBJECTIVES

This fiscal policy is a statement of the guidelines and goals that will influence and guide the financial management practice of the City of High Point, North Carolina. A fiscal policy that is adopted, adhered to, and regularly reviewed is recognized as the cornerstone of sound financial management. Effective fiscal policy:

• Contributes significantly to the City's ability to insulate itself from fiscal crisis,

• Enhances short-term and long-term financial credit ability by helping to achieve the highest credit and bond ratings possible,

• Promotes long-term financial stability by establishing clear and consistent guidelines,

• Directs attention to the total financial picture of the City rather than single issue areas,

• Promotes the view of linking long-run financial planning with day-to-day operations, and

• Provides the City Council, citizens, and the City’s professional management a framework for measuring the fiscal impact of government services against established fiscal parameters and guidelines.

To these ends, the following fiscal policy statements are presented.

CAPITAL IMPROVEMENT BUDGET POLICIES

1. The City will prioritize all capital improvements in accordance with an adopted capital improvement program.

2. The City will develop a five-year plan for capital improvements and review and update the plan annually. The City utilizes a weighted ranking system based on five critical factors to recommend projects to the capital improvement program. Additional projects can be added to the CIP without ranking, but funding for projects added in this manner are subjected to normal operating budget constraints.

3. The City will enact an annual capital budget based on the five-year capital improvement plan. Future capital expenditures necessitated by changes in population, changes in real estate development, or changes in economic base will be calculated and included in capital budget projections.

4. The City will coordinate development of the capital improvement budget with development of the operating budget. Future operating costs associated with new capital improvements will be projected and included in operating budget forecasts.

5. The City will use intergovernmental assistance to finance only those capital improvements that are consistent with the capital improvement plan and City priorities, and whose operating and maintenance costs have been included in operating budget forecasts.

6. The City will maintain all its assets at a level adequate to protect the City's capital investment and to minimize future maintenance and replacement costs.

7. The City will project its equipment replacement and maintenance needs for the next several years and will update this projection each year. From this projection, a maintenance and replacement schedule will be developed and followed.

8. The City will identify the estimated costs and potential funding sources for each capital project proposal before it is submitted for approval.

9. The City will attempt to determine the least costly and most flexible financing method for all new projects.

DEBT POLICIES

General

1. The City will confine long-term borrowing to capital improvement or projects that cannot be financed from current revenues except where approved justification is provided.

2. The City will utilize a balanced approach to capital funding utilizing debt financing, draws on capital reserves and/or fund balances in excess of policy targets, and current year (pay-asyou-go) appropriations.

3. When the City finances capital improvements or other projects by issuing bonds, or entering into capital leases, it will repay the debt within a period not to exceed the expected useful life of the project. Target debt ratios will be annually calculated and included in the review of financial trends.

4. Where feasible, the City will explore the usage of special assessment, revenue, or other selfsupporting bonds instead of general obligation bonds.

5. The City will retire tax anticipation debt, if any, annually and will retire bond anticipation debt within six months after completion of the project.

Tax Supported Debt

1. Net debt as a percentage of total assessed value of taxable property should not exceed 2.5%. Net debt is defined as any and all debt that is tax-supported.

2. The ratio of debt service expenditures as a percent of total governmental fund expenditures should not exceed 15% with an aggregate ten-year principal payout ratio target of 60% or better.

3. The City recognizes the importance of underlying and overlapping debt in analyzing financial condition. The City will regularly analyze total indebtedness including underlying and overlapping debt.

4. The City will target a minimum amount of equity funding of 10% of the capital improvement plan on a five-year rolling average.

RESERVE POLICIES

1. The City will establish an emergency reserve to pay for needs caused by unforeseen emergencies, including unanticipated expenditures of a nonrecurring nature, or to meet unexpected small increases in service delivery costs. This contingency reserve will be budgeted at not less than 0.5% of the operating funds.

2. Unreserved, Undesignated Fund Balances will mean funds that remain available for appropriation by the City Council after all commitments for future expenditures, required reserves defined by State statutes, and previous Council designations have been calculated. The City will define these remaining amounts as “available fund balances.”

3. Available fund balances at the close of each fiscal year should be at least 10% of the Total Annual Operating Budget of the City.

4. The City Council may, from time-to-time, appropriate fund balances that will reduce available fund balances below the 10% policy for the purposes of a declared fiscal emergency or other such global purpose as to protect the long-term fiscal security of the City of High Point. In such circumstances, the Council will adopt a plan to restore the available fund balances to the policy level within 36 months from the date of the appropriation. If restoration cannot be accomplished within such time period without severe hardship to the City, then the Council will establish a different but appropriate time period.

5. The City has adopted a comprehensive strategy for the long-term stability and financial health of the Combined Water and Sewer Fund that provides for annual increases in fund reserves to an established goal of 50% of the Water and Sewer Fund operating budget.

6. The City Council has adopted a strategy to stabilize retail electric utility rates for the benefit of users of the Electric Utility Operations Fund by creating a Rate Stabilization Reserve. The Reserve was funded by the cumulative disparity between wholesale purchased power rates and the City’s adopted retail rate between FY 2016 and FY 2020 in addition to a working capital credit from NCMPA1. Staff will recommend appropriating a portion of the reserve on an annual basis to mitigate future rate increases.

BUDGET DEVELOPMENT POLICIES

1. The City will develop the Annual Budget in conjunction with a stated program of performance objectives and measures with which to gauge progress toward meeting those objectives.

2. Water, sewer, and electric rates will be established at the appropriate level to enable the related funds to be self-supporting. In addition, water and sewer rates will be established to maintain compliance with revenue bond covenants.

3. One-time or other special revenues will not be used to finance continuing City operations but instead will be used for funding special projects.

4. The City will pursue an aggressive policy seeking the collection of delinquent utility, license, permit and other fees due to the City.

CASH MANAGEMENT & INVESTMENT POLICIES

1. It is the intent of the City that public funds will be invested to the extent possible to reduce the need for property tax and utility revenues. Funds will be invested with the chief objectives of safety of principal, liquidity, and yield, in that order. All deposits and investments of City funds will be in accordance with N.C.G.S. 159.

2. The Financial Services Director will establish a Cash Management Program that will be conducted in such a manner as to ensure that adequate funds will always be available to meet the City’s financial obligations and to provide the maximum amount of funds available for investment at all times. The Program shall comprehensively address at a minimum; Accounts Receivable/Billings, Accounts Payable, Receipts, Disbursements, Deposits, Payroll, Special Appropriations and Debt Service Payments.

3. The City will use a Central Depository to maximize the availability and mobility of cash for all funds that can be legally and practically combined.

4. All security transactions, including collateral for repurchase agreements, entered into by the city shall be conducted on a delivery-versus-payment (DVP) basis. Securities will be listed in the City’s name if issued only in book entry form or held by a third-party custodian and evidenced by safekeeping receipts. Certificated investments will be held by the Financial Services Director in the name of the City.

5. Investments of the City will be diversified to eliminate the risk of loss as a result of over concentration of securities in a specific issuer, class of securities, or maturity sector.

SUMMARY & ANALYSIS

The Summaries/Analysis section contains charts, graphs, summary tables, and discussions of the City's revenues and expenses for fiscal year 2024-2025 with historical data for comparison purposes.

The Consolidated Summary of Revenues and Expenditures that begins this section is a summary of total revenues and expenses by fund by major revenue and expense category. Following this summary, the section is divided into revenue and expense information, personnel summaries, and outstanding debt information.

2024-2025 SUMMARY OF REVENUES, EXPENDITURES

& ESTIMATED FUND BALANCES

TOTAL GOVERNMENT SPENDING

BY FUNCTION

Includes General, Special Revenue, Capital Projects, and Debt Service Funds; excludes Other Financing Uses

Source: The above statistics are from the City of High Point Annual Comprehensive Financial Report

Trends in General Government Expenditures

TOTAL GOVERNMENT REVENUES

BY SOURCE

*Includes Property Taxes, Sales and Use Taxes, and Occupancy Taxes. Except that starting in FY2018, sales and use taxes were captured in the Intergovernmental Revenues category.

**Includes Administrative Reimbursements and Miscellaneous Revenues Includes General, Special Revenue, Capital Projects, and Debt Service Funds; excludes Other Financing Sources

Source: The above statistics are from the City of High Point Annual Comprehensive Financial Report

Trends in General Revenue Sources

WHERE THE MUNICIPAL DOLLAR ORIGINATES

All Funds

Utility Fees Electric Fees, Water and Sewer Fees

Property Tax

General Fund Property Tax, Debt Service Property Tax

Charges for Services Charges for Services from General, Central Services, Transit, Parking, Solid Waste and Stormwater Funds, and Miscellaneous Revenues

Interfund Charges Other Financing Sources

Intergovernmental Revenues

Sales and Use Tax/Licenses and Fees

Revenues from Federal, State and other Local jurisdictions

Sales Tax, Vehicle Tax, Room Occupancy Tax, Licenses, Permits, Inspections, Library Fines, and other Miscellaneous Fees Appropriated Fund Balance Fund Balances

ESTIMATED CHANGES IN FUND BALANCES

Fund Balance represents the excess of a fund's assets and revenues over its liabilities, reserves, and expenditures at the close of the fiscal year.

The High Point City Council-adopted Fiscal Policies maintain minimum fund balances at 10% of estimated expenditures as a signal of financial strength and fiscal stability. The City of High Point applies the policy to all operating funds except the Economic Development, General Debt, and General Capital Project funds as they are covered by more specific strategic plans. A summary of fund balances and estimated changes therein are shown below:

ANALYSIS OF REVENUE SOURCES

ANALYSIS OF REVENUE SOURCES, cont.

ANALYSIS OF REVENUE SOURCES, cont.

ANALYSIS OF REVENUE SOURCES, cont.

TAX VALUES, RATES AND COLLECTIONS

Ten Largest Taxpayers - Fiscal Year Ending June 2023

WHERE THE MUNICIPAL DOLLAR GOES

All Funds

Electric

Public Safety

Recreation/Culture/ Neighborhoods

General Government

Electric Fund

Communications Center, Police, Fire, Building Inspections, Local Code Enforcement

Parks & Recreation, Library, Theatre, Outside Non-Profit Organizations, Planning & Development, Economic Development, Community Development

Governing Body, City Management, City Attorney, Budget and Evaluation, Communication & Public Engagement, Engineering, Information Technology Services, Human Resources, Financial Services, Special Appropriations

Transportation Transportation, Street Maintenance, Transit, Parking

Debt Service/ Other/Transfers

Reimbursement, Contingency, Debt Service, Internal Service Funds, Special Grants Fund, Showroom & Occupancy Tax Fund, General Risk Fund

Environmental Health Water and Sewer, Solid Waste, Stormwater, Public Services except Street Maintenance

ANALYSIS OF EXPENDITURES

ANALYSIS OF EXPENDITURES, cont.

ANALYSIS OF EXPENDITURES, cont.

ANALYSIS OF EXPENDITURES, cont.

ANALYSIS OF EXPENDITURES, cont.

ANALYSIS OF EXPENDITURES, cont.

ANALYSIS OF EXPENDITURES, cont.

SUMMARY OF PERSONNEL

DEBT SERVICE POLICIES & OVERVIEW

In North Carolina, the issuance of bonds is accomplished with the guidance and approval of the North Carolina Local Government Commission (LGC) from the point of development of a bond referendum to the actual sale of the bonds. The LGC must approve the concept and amount of a bond issuance before it goes to the voters for approval. Upon approval of a bond referendum by the citizens and sale of the bonds, the LGC is able to develop a level payment schedule to avoid major swings in the debt service obligations from year-to-year. As old debt is either retired or decreases, new debt is issued. This helps in minimizing the effect of debt on the property tax rate and as well as utility rates when revenue bonds are issued.

In November 2019, voters approved a $50 million bond referendum to fund transportation, affordable housing, and parks and recreation projects. The first tranche of bonds was issued in FY 2021-22.

Listed below are the City of High Point debt issues that are on the current long-term debt plan. The total long-term debt service for FY 2024-25 is shown by fund below.

DEBT ISSUES

General Debt Service

The total General Debt Service for fiscal year 2024-2025 is $13,114,623. The fiscal year 20242025 General Debt Service Fund debt issues are as follows:

2014 – GO Public Improvement Bond 399,169 2034

2014 – GO Refunding 869,092 2027

2016 – GO Refunding 1,889,965 2029

2018 – GO 2/3 Public Improv Bond 504,075 2039

2018 – Limited Obligation Bond 2,539,909 2039

2020 – GO Refunding 1,086,555 2030

2020 – Limited Obligation Bond 1,286,036 2040

2022A – 2/3 Public Improvement Bond 742,000 2032

2022B – Public Improvement Bond 2,016,313 2042

2022C – GO Refunding 708,040 2032

2024 – 2/3 Public Improvement Bond 1,073,469 2031

Water/Sewer Fund

Water-Sewer debt service for fiscal year 2024-2025 is $15,591,766 The fiscal year 2024-2025 Water-Sewer Fund debt issues are as follows:

FY 2025 Debt Service Pay Off Year

ARRA – Federal Revolving Loan

$32,609 2030 2014 Revenue Bonds 1,347,875 2025 2016 Revenue Refunding 4,605,650 2034 2019 Revenue Bonds

3,409,225 2044 2021B Refunding 1,107,279 2040 2022 Revenue Bond 2,331,700 2047 2022B Refunding 2,403,187 2032

2022C Refunding 354,241 2026

Stormwater Fund

The total debt service for the Stormwater Fund in fiscal year 2024-2025 is $954,709. The 2004 bond referendum included $15.4 million in Stormwater projects. Stormwater debt service includes the principal and interest payment of the General Obligation portion for Stormwater Bonds. The debt on these bonds has previously been supported by property taxes dedicated to the General Obligation Bonds.

Smaller stormwater projects will continue to be funded through user fees in the Pay-Go Capital Program The fiscal year 2024-2025 Stormwater Fund debt issue follows:

FY 2025 Debt Service Pay Off Year

2014 – G.O. Refunding

$120,858 2027

2016 – G.O. Refunding 380,410 2029

2020 – G.O. Refunding 266,437 2030

2022C – GO Refunding 187,004 2026

Long-Term Equipment Leases-Installment Contracts

The City of High Point finances some equipment with installment contracts. The total lease principal and interest for fiscal year 2024-2025 is $2,197,752. FY 2025 Debt Service Pay Off Year

Equipment

Equipment

Equipment

Equipment

Equipment

2025

2026

2026

2027

2029 Fleet Equipment

Bond Agency Ratings

2029

The City’s capacity to finance and pay for needed improvements is evaluated from time to time by the following rating agencies: Moody’s Investment Services, Standard & Poor’s, and Fitch Ratings. Protecting and enhancing our bond ratings is one of our highest priorities.

The City has seen a series of bond rating upgrades since 2003, including the addition of a AAA bond rating assignment by Standard & Poor’s. The City’s bond ratings were re-affirmed in conjunction with our bond sale in April 2022.

City of High Point Current Bond Ratings

ASSESSED VALUES AND DEBT LIMITATIONS – END OF FISCAL YEAR 2023 (dollars in thousands)

Limit (1) 8% of assessed value $1,045,560

Amount of Debt Applicable to Limit

Less: Amount available for repayment of GO

Note: NC Statute GS 159-55 limits the city’s outstanding debt to 8% of the appraised value of property subject to taxation. The following deductions are made from gross debt to arrive at net debt applicable to the limit: Money held for payment of principal; debt incurred for water, sewer, gas, or electric power purchase; uncollected special assessments, and funding and refunding bonds not yet issued.

The legal debt margin is the difference between the debt limit and the City’s net det outstanding applicable to the limit and represents the City’s legal borrowing authority.

Note: Debt is presented as gross and does not include bond premiums/discounts.

DEBT OUTSTANDING AND MATURITIES

GENERAL FUND

Proposed 202 4- 202 5 Operating Budget

$147,038,789

The General Fund is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund.

Budget Summary

REVENUES

GENERAL FUND REVENUES & EXPENDITURES

Revenues

The FY 2024-2025 proposed budget increases the property tax rate 3-cents to 64.75 cents per $100 of valuation. The Debt Service Fund continues to include 3.4 cents of the tax rate to fund the 2004 bond authorization bond issues as authorized by High Point voters in the 2004 bond referendum. The proposed General Fund property tax rate is 61.35 cents.

Property tax revenues represent 57.2% or $84,045,925 of the total General Fund revenues. The projected collections are based on a collection rate of 99.3%.

Sales tax revenues represent 25.7% or $37,796,678 of General Fund revenues and are projected to decrease by $3,072,902, or 7.5%. For FY 2024-25, room occupancy tax is no longer accounted for in the General Fund. With this change, sales tax revenues are decreased by $601,902 (-1.6%).

Retail sales tax revenue is estimated to increase approximately 2.75% above year-end estimates. However, due to an expected reduction of the ad valorem distribution percentage, approximately $815,000 in sales tax will be distributed to other jurisdictions.

License and permit fees are projected to increase by $213,800, or 4.7% due to slightly increased building permit activity and increases for fire inspections/violations.

Charges for services are increasing by $639,550, or 11.3%. Pool admissions, primarily at the newly renovated City Lake Park Pool, are increased by $255,000 to reflect the use of the upgraded facility.

The sale of merchandise at the golf courses, as well as other Parks and Recreation facilities, has increased $186,000. This service has been brought in-house and includes expenses for inventory on the expenditure side.

Miscellaneous revenue is estimated to increase by $1,380,850. This is due to stronger investment income projections, with higher interest rates assisting in this higher revenue.

Expenditures

Personnel Services include an average mid-year merit adjustment of 3%, an increased employer contribution for retirement, and higher health insurance costs. The general fund budget includes the addition of 3 full-time positions and 6 part-time positions. Details are in the Manager's Message.

Operating expenditures are decreased by $1,024,813 or 3.7%. The contribution to Visit High Point has been moved to the new Showroom and Occupancy Tax Fund. Controlling for this, operating expenditures are increased $1,196,187 (4.7%) Drivers include increases in computer and software license fees ($902,000) and higher Fleet Services charges for the cost of vehicle replacements ($209,000). Inventory purchases for resale increased $203,000, as Parks and Recreation is providing the sale of merchandise service in-house. There is increased revenue to offset this increase.

Capital outlay funding is budgeted at $1,450,000 for FY 2024-25. This is driven by the funding for the fire apparatus replacement program ($1,100,000) and other fire equipment including station generators ($195,000), thermal imaging cameras ($35,000), and jaws of life sets ($40,000).

WHERE THE MUNICIPAL DOLLAR ORIGINATES

General Fund

Property Tax

Sales & Use Tax/ Licenses & Fees

Property Tax

Charges for Services

General Fund Property Tax

Charges for Services from General and Miscellaneous Revenues Intergovernmental Revenues

Sales & Use Tax/Licenses and Fees

Revenues from Federal, State and other Local jurisdictions

Sales Tax, Vehicle Tax, Licenses, Permits, Inspections, Library Fines, and other Miscellaneous Fees

Appropriated Fund Balance Fund Balances

WHERE THE MUNICIPAL DOLLAR GOES

General Fund

Public Safety Police, Fire,

Recreation & Culture Parks & Recreation, Library, Museum, Theatre

Community & Economic Development

General Government

Economic Development, Community Development & Housing, Planning, Inspections & Development, Joblink – Idol Street Building

Governing Body, City Management, City Attorney, Budget & Evaluation, Communication & Public Engagement, Engineering, Information Technology Services, Human Resources, Financial Services, Special Appropriations, Public Services Admin

Public Services Transportation, Streets Maintenance, Cemeteries

Other Transfers & Reimbursements

GOVERNING BOD Y

$8 55,013

SANDRA KEENEY, CITY CLERK

Mission Statement

The mission of the City Clerk's Office is to keep and maintain records of the High Point City Council including minutes, ordinances, resolutions, contracts and other vital documents, and to perform other duties as may be required by the High Point Charter/Code of Ordinances and the North Carolina General Statutes.

Budget Summary

Personnel Summary

STAFFING

Performance Measures

CITY MANAGER

Proposed 2024-2025 Operating Budget $ 1,387,509

TASHA LOGAN FORD, CITY MANAGER

Mission Statement

The City Manager’s Office provides overall leadership and direction for carrying out the policy directives of the City Council and setting the standards for delivering excellent public programs and services to the City of High Point. The Manager’s Office provides strategic guidance to the City Council on issues of importance to the city in order to bring together the community’s human, economic and civic resources for the purpose of creating the single most livable, safe and prosperous community in America.

Budget Summary

CITY ATTORNEY

Proposed 2023-2024 Operating Budget

$ 1, 752,388

MEGHAN MAGUIRE, CITY ATTORNEY

Mission Statement

The City Attorney's primary purpose is to advise the City Council and administration on legal aspects of the City's activities, administer the legal programs of the City and advocate the City's legal interests before the courts.

Budget Summary

Performance Measures

representation to City Council, Council Committees, and Council appointed legislative and quasi-judicial boards and commissions

COMMUNICATIONS &

PUBLIC ENGAGEMENT

Proposed

2024-2025 Operating Budget

$ 1, 453 , 716

JERON HOLLIS, MANAGING DIRECTOR

Mission Statement

The Office of Communications & Public Engagement strives to keep residents engaged and informed about the mission, programs and services offered by the City of High Point through various media platforms. We support the City Council, City Manager and City of High Point staff by enhancing the delivery of information to our various community audiences and by helping to promote our organization’s values of integrity and excellence.

Budget Summary

Expenditures

by Division

Budget Highlights

- The proposed budget includes the addition of one Communication Specialist position in the Marketing Division, totaling $98,932. This position will help produce and stream City Council meetings, as well as assist with overall community engagement.

HUMAN RESOUR CES

Proposed 2024-2025 Operating Budget

$ 2, 168 , 113

ANGELA KIRKWOOD, DIRECTOR

Mission Statement

The mission of the Human Resources department is to provide services that promote a work environment characterized by fair treatment of staff, open communications, personal accountability, trust and mutual respect.

Budget Summary

Personnel Summary

BUDGET & EVALUATION

Proposed 2024-2025 Operating Budget $ 537,891

STEPHEN HAWRYLUK, DIRECTOR

Mission Statement

Dedicated to prudent fiscal stewardship, the Budget and Evaluation Department is committed to optimizing resource allocation. Through meticulous analysis and transparent evaluation, the department empowers informed decisions that enhance our community’s well-being and future prosperity.

Budget Summary

Personnel Summary

Performance Measures

Receive Distinguished Budget Presentation Award from GFOA Yes Yes Yes

FINANCIAL SERVICES

Proposed 2024-2025 Operating Budget $ 2,794,035

BOBBY FITZJOHN, DIRECTOR

Mission Statement

The mission of the Financial Services Administration division is to provide a centralized resource for the City's financial affairs, including establishing and maintaining the City's fiscal policies and procedures; coordinating and managing the City's capital projects and debt management programs; providing an internal audit function to safeguard assets and assist with operational efficiencies and compliance with City policies, federal and state laws, and administrative regulations; and coordinating the efficiency and effectiveness of other divisions within the Financial Services Department.

Budget Summary

Personnel Summary

- The proposed budget includes the addition of a Buyer position in the Purchasing Division, at a cost of $66,629. This position would help alleviate the wait time it takes to process bids, in particular the increase in RFPs for services. This position will also assist with the procurement card program by aiding employees with p-card processes and provide/allow for more detailed monthly p-card statement audits.

- An increase of $65,050 is included in the proposed budget for the Purchasing Division for expanded MWBE outreach. This will include training, supplies, advertising, and community outreach and events.

ENGINEERING SERVICES

Proposed 2024-2025 Operating Budget

$4, 422,856

TREVOR SPENCER, DIRECTOR

Mission Statement

The Engineering Services' mission is to assist in making High Point the most livable and prosperous community by providing professional engineering services to other City departments with direct contact and service missions to the public. When directly involved with individual citizens, we advise, solve problems, answer complaints and regulate development for quality assurance. We are dedicated to innovation, teamwork, and professional engineering, while providing quality construction through inspection and contract administration.

Budget Summary

Personnel Summary

INFORMATION TECHNOLOGY SERVICES

Proposed 2024-2025 Operating Budget

$13, 884 , 996

ADAM WARD, DIRECTOR

Mission Statement

The Communication and Information Services Division will provide relevant and timely solutions to business issues to enable our customers to support the City’s vision in a secure and reliable customer service driven environment. The mission of the Communications Services Division is to provide the citizens of High Point with a central point of contact to request public safety services and to dispatch those services in a timely and cost effective manner.

Budget Summary

BUDGET

Personnel Summary

Performance Measures

Budget Highlights

- The proposed Information Technology Services Administration budget includes the addition of a Geographic Information Systems (GIS) Manager position, at a total cost of $130,991. This position would support municipal functions by leveraging geospatial data and technology to enhance planning, decision-making, emergency management, and public services within the municipality.

- The cost for licenses and maintenance, existing information technology applications, and new applications has increased for many city functions, totaling approximately $662,000. The costs of these increases range from as low as $1,000 to as high as $116,000, depending on the size and scope of the application. Some of the applications included are customer service software, budget management software, billing software, the new Public Services work order management system, Human Resources applications, and network and firewalll systems and software, among others.

- The Communications Center budget includes an increase of $100,000 for expenses not covered by the State. The state has yet to re-approve the city’s back-up plan, which is preventing the department from being able to spend grant funds on 50% of typically covered equipment.

POLICE

40,685,348

CURTIS CHEEKS, INTERIM POLICE CHIEF

Mission Statement

To make High Point a safe city by developing leaders and employees in crime fighting, community engagement, training, and professional policing.

Budget Summary

Revenues

Personnel Summary

Performance Measures

Budget Highlights

- Each year, Human Resources and outside partners study the classification and compensation of 1/3 of city positions. During the most recent review, Police and Fire Department positions were also studied. The proposed budget includes the salary increases proposed for the Police Department. The cost of these increases, including benefits, is $908,000.

30,849,218

BRIAN EVANS, INTERIM FIRE CHIEF

Mission Statement

The High Point Fire Department's mission is to serve the citizens of High Point by protecting lives and property throughout the City by emphasizing preparedness, education, prevention and intervention.

Budget Summary

Personnel Summary

STAFFING

Performance Measures

*conversion between reporting software and Fire Marshall positions results in 3 months of un-reportable records

Budget Highlights

- Each year, Human Resources and outside partners study the classification and compensation of 1/3 of city positions. During the most recent review, Police and Fire Department positions were also studied. The proposed budget includes the salary increases proposed for the Fire Department. The cost of these increases, including benefits, is $325,000.

- The proposed budget includes $1,370,000 in capital outlay for Fire Suppression. The cost of a replacement engine appratus truck is increased $180,000 to $1,100,000. Other items include station generators ($195,000), thermal imaging cameras ($35,000), and replacement jaws of life sets ($40,000).

- Annually the Fire Department acquires turnout gear for new employees. The proposed budget includes an additional $160,000 to replace turnout gear that will reach the end of its useful life in the new fiscal year.

PARKS & RECREATION

Proposed 2024-2025 Operating Budget

$17, 241 ,27 2

LEE TILLERY, DIRECTOR

Mission Statement

The purpose of the Administration Division is to provide the various administrative functions of the department and provide supervision to the divisions that provide recreational programs, neighborhood recreation centers, and landscaping and grounds maintenance. Park Rangers are also included in this accounting unit. The Programs Division consists of the various athletic programs, each of the neighborhood, recreation centers, Aspire, and Senior Citizen Services. The Special Facilities Division of the Parks and Recreation Department consists of City Lake Park and Pool, Washington Terrace Pool, Oak Hollow Marina and Park, Tennis, Golf, and Grillrooms as well as Blair Park Golf and Grillrooms. The Parks Division of the Parks and Recreation Department provides services for landscaping and facilities and grounds, which include mowing and landscaping at City facilities, medians, and islands. The division does field preparation and maintenance for the various athletic fields in the city.

Budget Summary BUDGET

Personnel Summary STAFFING

Performance Measures

Measure(s)

Budget Highlights

- The proposed Parks and Recreation budget includes the addition of six part-time positions at City Lake Park Pool. After evaluating the first year of operations post-renovation, an additional three lifeguard and three pool attedant positions are needed.

The addiitonal lifeguards will allow for a roaming station at the lazy river and another stand at the competition pool. Additional lifeguards will help cover additional hours for programming and provide more hands for cleaning, etc. during rotations.

The pool attendants will assist in adequately covering the schedule and ensure the facility is staffed sufficiently during peak times. These positions also assist in maintaining a clean facility and help enforce the rules and regulations of the health department and the City of High Point.

- The proposed budget includes increased fees in Parks and Recreation at the golf courses (greens and cart fees), a rental option for the Johnson Street Disc Golf Course, increased rental costs at the Recreation Centers (gyms, activity rooms, entire centers), increased pool rental costs at Washington Terrace Park Pool, and aligning per hour costs for staff when a facility is rented (operators, lifeguards, etc.) to match the city’s cost.

- Many costs are increasing for existing Parks and Recreation supplies and services, including golf cart leases, commodities for resale, and holiday lights. The proposd budget is increased by approximately $316,000 to account for these cost increases.

LIBRARY

Proposed 2024-2025 Operating Budget

$7, 262 , 225

MARY M. SIZEMORE, DIRECTOR

Mission Statement

The library mission is to nurture the joy of reading, share the power of knowledge, strengthen the sense of community, and enhance community vitality. The library supports this mission by focusing on the library strategic priorities of creating a customer-centered workforce, building cross functional teamwork capacity, maximizing operational effectiveness, using our facility and technology innovatively, and providing convenient and available access. The library serves customers and staff by acquiring, cataloging library materials and by maintaining an electronic database of library materials. The library serves children from birth through age 12, and their caregivers with programming developed to encourage, support, and foster the child's inalienable right to read, learn, and become the person of their choice. The library assists library users of all ages to locate requested materials, specific, general, business-related, and genealogical information using the resources of the City's library, other libraries, and on-line information sources and databases. The library develops and markets adult and young adult fiction book collections and non-print materials collections. The library lends the library's circulating materials through in person and prepares remote checkout.

The History Museum shares greater High Point's history by exploring the power of memory and providing perspective for current issues and by strengthening the sense of community.

Budget Summary

Budget Summary, cont.

Personnel Summary

Personnel Summary, cont.

STAFFING

Performance Measures

Budget Highlights

- The proposed budget includes $137,000 for the Library to enter into an agreement to provide a fulltime lead engagement specialist (social worker) on-site at the library during hours of operation in addition to a full-time peer navigator (someone with lived experience).

The goal of the team will be to provide services to support library staff in public program development and implementation to reduce disparities. The positions will provide library staff training on issues relating to behavior management, social services, and trauma-informed approaches to public service, and to consult on the development of resources to better serve the community.

HIGH POINT THEATRE

Proposed 2024-2025 Operating Budget

$ 1, 402 , 567

DAVID BRIGGS, DIRECTOR

Mission Statement

The mission of the High Point Theatre is to excel in quality programming, customer service and facility utilization. The High Point Theatre's contribution to the cultural and artistic climate can help High Point in becoming the most livable city in North Carolina.

Budget Summary

Revenues

Expenditures by Division

Budget Highlights

- The proposed budget includes an increase of auditorium rates at the High Point Theater. This includes the daily corporate rate, daily non-profit rate, preferred clients, rehearsals, two performances, and conference room/gallery rental rates. The proposed fee schedule also adds a fee for rental of Mendenhall Terminal for more than eight hours for a special event (in addition to the current daily rate).

ECONOMIC DEVELOPMENT

Proposed 2024-2025 Operating Budget

$5 31,614

PETER BISHOP, DIRECTOR

Mission Statement

The High Point Economic Development Corporation is a public-private organization whose mission is to: work to retain existing business and industry in the City of High Point; assist local companies in expanding; attract new business to locate in High Point; and encourage the creation of head-ofhousehold jobs for Piedmont Triad residents.

Budget Summary

Personnel Summary

TRANSPORTATION

Proposed 2024-2025 Operating Budget

$ 3, 673 , 970

GREG VENABLE, DIRECTOR

Mission Statement

The Department of Transportation is responsible for the safe and efficient movement of persons and goods on a system of streets and thoroughfares within the City of High Point.

Budget Summary

Revenues

by Division

Personnel Summary

PLANNING

Proposed 2024-2025 Operating Budget

$ 1, 666 , 391

SUSHIL NEPAL, DIRECTOR

Mission Statement

Shaping a more livable High Point by facilitating and promoting a shared, comprehensive plan for the development of the community that advances a quality environment, both natural and built; by creating strategies that guide development in a manner that protects and enhances the community; and by administering services that implement the comprehensive plan and form a safe, sustainable and livable place.

Budget Summary

INSPECTIONS SERVICES

Proposed 2024-2025 Operating Budget

$ 2, 603 , 182

REGGIE HUCKS, DIRECTOR

Mission Statement

Provide timely and accurate reviews of development proposals to ensure consistency with the city's goals and objectives. Conduct work program projects to promote sustainable, cost-efficient and coordinated development. Provide full, clear and accurate information in all activities. To administer the Uniform Statewide Building Code and associated laws and ordinances of the City of High Point in a courteous, responsive, and professional manner in order to contribute to the health, safety, and welfare of the community.

Budget Summary

Personnel Summary

Performance Measures

Measure(s)

COMMUNITY DEVELOPMENT

& HOUSING

Proposed 2024-2025 Operating Budget

$ 2, 4 67,332

NENA WILSON, DIRECTOR

Mission Statement

It is the responsibility of the Local Codes Enforcement section to provide for clean, healthy livable neighborhoods through the enforcement of the minimum housing code, public nuisance code, zoning and vehicle ordinance. It is accomplished through the investigation and inspection of citizen and public official complaints and through the targeted enforcement neighborhoods.

Budget Summary

Personnel Summary

Measures

PUBLIC SERVICES

Proposed

2024-2025 Operating Budget

$ 9, 404 , 225

ROBBY STONE, DIRECTOR

Mission Statement

The purpose of the Public Services Administrative group is to oversee the divisions that provide the citizens of High Point with garbage collection, recyclables collection, yard waste collection, loose trash collection, a Material Recovery Facility, a solid waste disposal facility, a yard waste composting facility, public cemeteries, stormwater maintenance, and road and bridge maintenance services. The Street Maintenance Division strives to provide the safest and best roadways possible for citizens of the City of High Point

Budget Summary

Personnel Summary

SPECIAL APPROPRIATIONS

Proposed 2024-2025 Operating Budget $ 2,020,604

Mission Statement

Special Appropriations budgets have been designated to present recommended appropriations for City contributions to outside agencies and other general fund expenditures not provided for in routine operating budgets.

Budget Summary

Special Appropriations includes funds for the following:

♦ $984,025 for general property and general liability insurances.

♦ $139,658 for city-wide memberships to groups such as Piedmont Triad Council of Governments and the Guilford County Economic Development Alliance among others.

♦ $250,000 for Marketing and Branding Task Force recommendations

♦ $250,000 allocation to Downtown High Point

♦ $519,155 for outside non-profit organization funding

♦ $795,014 for property tax administration

♦ ($1,750,000) in salary savings

TRANSFERS & REIMBURSEMENTS

Proposed 2024-2025 Operating Budget ($2,110,580)

Mission Statement

Transfers and Reimbursements budgets are used to account for the transfers and reimbursements to other funds for direct and indirect costs.

Budget Summary

To meet recommendations on the presentation of budget transfers and reimbursements from the Government Finance Officers Association (GFOA), we show certain transfers as offsetting expenses, which is a negative number. Transfers & Reimbursements Includes the following annual transfers:

♦

♦

♦

♦

♦

♦ LEO Pension Trust Fund 50,000

♦ Reimbursement to Electric Fund 105,705

GENERAL CONTINGENCY

Proposed 2024-2025 Operating Budget

$0

Mission Statement

General Contingency is an appropriation in the General Fund used at the City Council's discretion to provide budget for unanticipated expenditures. Amounts can only be transferred from contingency for a specific purpose with City Council approval.

Budget Summary

GENERAL DEBT SERVICE FUND

Proposed 202 4- 202 5

Operating Budget $13,274,623

The General Debt Service fund is used to account for the accumulation of resources for, and the payment of long-term general long-term debt principal and interest. Debt service for proprietary funds are found in the individual fund summaries.

Budget Summary

GENERAL DEBT SERVICE FUND REVENUES & EXPENDITURES

Revenues

The General Debt Service Fund includes a dedicated 3.4 cents of the tax rate to fund the 2004 bond authorization. The budget also includes the revenue associated with the Downtown Multi-Use Stadium project, including funds from the stadium operating agreement, the funding commitment of $250,000 annually from Visit High Point, and the tax increment financing estimate. The tax increment financing estimate for FY 2024-25 is $1,780,013.

Expenditures

The budget includes funding for all current debt service. The below table shows the proposed schedule of debt payments for FY 2024-25.

GENERAL CAPITAL PROJECTS FUND

Proposed 202 4- 202 5 Operating Budget

$4,725,323

The General Capital Projects Fund is used to account for pay-go General Fund capital projects. Resources for these projects are used for the acquisition or construction of capital facilities, other than those financed by the enterprise funds. Long-term general capital projects, which are generally financed by general obligation bonds, can be found in the Capital Improvement Program section of this document.

Budget Summary

Revenues

GENERAL CAPITAL PROJECTS FUND REVENUES & EXPENDITURES

Funding for General Capital Projects comes from a transfer from the General Fund. The Enterprise Resource Planning (ERP) Upgrade project also includes funding from the Water/Sewer Fund ($375,000), Electric Fund ($600,000), Solid Waste Fund ($105,000), and Stormwater Fund ($45,000).

Expenditures

A summary of funded projects can be found on the next page. Detailed information on all General Capital Projects can be found in the Capital Improvement Program (CIP) section of the document.

WATER & SEWER FUND

Proposed 202 4- 202 5 Operating Budget $69,415,383

The Water and Sewer Fund operations come under the direction of the Public Services Department. This fund is used to account for the provision of water and sewer services to the residents of the City and some County residents. All expenses necessary to provide such services are accounted for in this fund as well as debt service on water-sewer bond issues.

Budget Summary

WATER SEWER FUND REVENUES & EXPENDITURES

Revenues

The proposed budget increases water and sewer rates by 5%. The increased rates will help fund increases in personnel and operating costs, including facility maintenance and chemicals, as well as the infrastructure needs of the aging system.

The proposed budget also includes increased hydrant meter deposit fees for Public Services. Hydrant meters are used in instances where permanent meters/taps aren’t available (construction water, temporary landscaping, street cleaning, etc.). The fee increase will cover the increased cost of replacing this equipment.

The proposed budget for water and sewer operations does not include any appropriation of reserves.

Expenditures

Personnel Services is increasing by $1,061,386, or 8.1%, due to the compensation and classification study increases that went into effect in the summer of 2023, an average mid-year merit adjustment of 3%, increased health insurance costs, and increased employer contributions for retirement.

The proposed budget includes the addition of two new positions for Water/Sewer. A Public Services I.T. Coordinator ($123,175) will provide oversight of the implementation, ongoing maintenance, and upgrades of the new work order management system, as well as provide reporting, training, and analytical support. An Assistant Superintendent ($94,820) at the Ward Water Plant will assist in the oversight of the operational and regulatory requirements and help ensure the health and safety regulations of the plant are met.

Operating expenses have increased $1,327,620, or 7.7% primarily due to continuing increases in costs for chemicals and maintenance supplies and parts for the aging infrastructure of the system and facilities.

Pay-go capital includes $11,154,983 in funding for water and sewer capital projects.

WATER SEWER

Proposed 2024-2025 Operating Budget

$69, 415 ,383

ROBBY STONE, PUBLIC SERVICES DIRECTOR

Mission Statement

The purpose of the Public Services Water and Sewer Administration group is to oversee the divisions that provide the citizens and businesses of High Point with high quality drinking water and a system to collect and treat wastewater and to protect the environment through effective wastewater treatment in accordance with the rules and regulations of the state and EPA. The Administration manages the divisions of water supply, treatment, and distribution as well as sewer collection and wastewater treatment to ensure that all services are provided effectively and efficiently according to city policy.

Budget Summary

Personnel Summary

Personnel Summary, cont.

Performance Measures

Measure(s)

WATER & SEWER DEBT SERVICE

WATER AND SEWER CAPITAL PROJECTS

ELECTRIC FUND

Proposed 202 4- 202 5 Operating Budget

$147,327,348

The Electric Fund is used to account for the Electric Operations Department as well as the Customer Service Department. Collectively, these departments provide electric services and simple information access to the residents and businesses of the City of High Point. All expenses necessary to provide such services are accounted for in this fund.

Budget Summary

ELECTRIC FUND REVENUES & EXPENDITURES

Revenues

The proposed budget includes no increases to electric rates. A rate consultant has been engaged to make recommendations regarding consolidation of commercial and industrial rates. That work is being finalized and proposed rates and an implementation schedule will be presented to City Council in the near future. The proposed budget includes the following changes to electric rates/fees:

- An increase in the basic facilities charge for residential electric charges per month. This is offset by a decrease in the kilowatt per hour charges for residential electric users and is intended to be revenue neutral to the customer.

- A change in the Renewable Energy Portfolio Standard (REPS) charge. These charges are collected for the expressed purpose of enabling the city to meet its Renewable Energy Portfolio Standards compliance obligations as required by the North Carolina General Assembly. The funds collected are a pass-through to the power agency.

- Consolidation of the Time of Use, Coincident Peak and Commercial Non-Demand rate classes for commercial and industrial customers. These efforts are revenue neutral and will result in no additional revenue for the city.

- A new rate for electric vehicle (EV) charging. Electric has been deploying Electric Vehicle charging stations. Any city-owned charging stations will fall under this new rate. The proposed rate is low, to encourage usage of the charging stations. It is the equivalent of about $1.39 per gallon of gas, or around $8 to fill an average EV.

The use of Electric Fund reserves is increased by approximately $11.5 million. Electric capital funding is increased by $15.96 million, as outlined below and in the Capital Improvement Program (CIP) section of the document. Fund balance is covering the cost of the projects contributing to that increase.

Expenditures

Personnel Services include an average mid-year merit adjustment of 3%, an increased employer contribution for retirement, and higher health insurance costs.

Wholesale power cost for FY 2024-25 is budgeted at $83.0 million, which is the single largest expense in the Electric Fund and citywide budget.

The budget continues to invest funds to maintain electric infrastructure and includes $25,810,000 in major capital projects. These routine capital investments are necessary to maintain efficient and ongoing operation of the Electric System. Capital costs are increased $15,960,000, and drivers include the automated meter reading initiative (AMI) project ($7,000,000), converting lines underground in the Showroom District ($3,100,000), beginning to set aside funds for a new municipal operations center ($7,000,000), and continued electric improvements on Washington Street ($4,000,000).

CUSTOMER SERVICE

Proposed 2024-2025 Operating Budget

$6, 727 , 207

JEREMY COBLE, CUSTOMER SERVICE DIRECTOR

Mission Statement

The Customer Service Department will serve as the catalyst to provide simple and easy access to our customers as they request information and/or services and utilities from the City of High Point. We will work to blend the needs of our customers and the operation of City departments to broker a positive response for the purpose of creating healthy families, safe and livable neighborhoods and prosperous business

Budget Summary

Personnel Summary

ELECTRIC OPERATIONS

Proposed 2024-2025 Operating Budget

$1 40 , 600 ,141

TYLER BERRIER, ELECTRIC UTILITIES DIRECTOR

Mission Statement

The Electric Department strives to maintain and improve efficiency of the department including but not limited to quality street lighting, outdoor lighting, substation and line maintenance as well as to provide new facilities for electric system growth. Our mission is to promote a prosperous community for the benefit of the City of High Point residents.

Budget Summary

Budget Summary, cont.

Personnel Summary STAFFING

Measures

Note:

PARKING FACILITIES FUND

Proposed 202 4- 202 5 Operating Budget

$611,912

The Parking Facilities Fund operates under the direction of the Transportation Department. The fund is used to account for the operation and maintenance of the City's various parking facilities.

Budget Summary

Revenues

PARKING FUND REVENUES & EXPENDITURES

The proposed budget includes the addition of a parking deck rate for non-leased spaces, at $20 per day, during and seven days prior, to the semi-annual High Point Market.

The Parking Fund is subsidized by a $165,000 transfer from the general fund.

Expenditures

The proposed budget includes a transfer of $75,000 to the Parking Capital Projects Fund. This will allow for ongoing maintenance and repairs at the parking decks.

PARK I NG FACILITIES

Proposed 2024-2025 Operating Budget $ 611 , 912 GREG VENABLE, TRANSPORTATION DIRECTOR

Mission Statement

The Parking Facilities Division is responsible for providing and maintaining safe, off-street parking facilities to the citizens and visitors to the City of High Point. The fund operates under the direction of the Director of Transportation

Budget Summary

by Division

Personnel Summary

SOLID WASTE FUND

Proposed 202 4- 202 5 Operating Budget

$23,051,022

The Solid Waste Fund operations come under the direction of the Public Services Department. The fund is used to account for the operation and maintenance of the City's landfill, municipal recycling facility, and garbage collection service.

Budget Summary

SOLID WASTE FUND REVENUES & EXPENDITURES

Revenues

Solid Waste collection revenue is increased $560,000 to reflect the solid waste availability fee increase that was approved in last year’s budget. Recycling sales are decreased by $438,500 to align the budget with recent trends in recycling sales. Investment income is increased $115,000, as higher interest rates have contributed to higher revenues.

The budget includes an appropriation of $4,454,672 in reserves.

Expenditures

Personnel Services include an average mid-year merit adjustment of 3%, an increased employer contribution for retirement, and higher health insurance costs.

Operating expenses are increased by $725,002, an increase of 7.6%. Major drivers of this increases includes vehicle replacement charges ($244,697), outside vehicle repairs ($270,607), and additional PFAS sampling ($75,000) required by the North Carolina Department of Environmental Quality (NCDEQ).

Solid Waste capital projects have been transitioning out of the operating budget and into the Solid Waste Capital Fund. The full list of proposed projects can be found in Capital Improvement Program (CIP) section of the document.

SOLID WASTE

Proposed 2024-2025 Operating Budget $ 23,051,022

ROBBY STONE, PUBLIC SERVICES DIRECTOR

Mission Statement

The Ingleside Compost facility is the collection point for the drop off of residential and commercial yard waste and providing products for purchase (mulch and engineered soil). Landfill Operations will provide a safe and equitable means of solid waste disposal for its customers while complying with all state and federal rules or regulations. The Material Recovery Facility will provide the citizens of High Point with a material recovery facility which properly processes, separates, package and ships an estimated 9,000+ tons annually of co-mingled recyclables and provides cardboard recovery for bi-annual Furniture Markets. The Environmental Services division provides the customers of High Point with quality weekly collection of household waste, yard waste, and bulky items and bi-weekly recycling collection to ensure a safe and livable community.

Budget Summary

Budget Summary, cont.

Personnel Summary

Performance Measures

Solid Waste Capital Projects

Note: Capital projects are transitioning from the Solid Waste Fund to the Solid Waste Capital Project Fund. The above table combines the two for comparison purposes.

Solid Waste Landfill Development and Post-Closure Reserve Fund

STORMWATER FUND

Proposed 202 4- 202 5 Operating Budget

$7,175,158

The Stormwater Fund is used to account for the operation and maintenance of the City's Stormwater program which manages runoff through pipe maintenance/repair, ditch maintenance, stream cleaning, bank stabilization, and oversight of detention lakes and ponds maintenance.

Budget Summary

STORMWATER FUND REVENUES & EXPENDITURES

Revenues

Stormwater fees are increased $474,142 to reflect the fee increase per Equivalent Residential Unit (ERU) that was approved in last year’s budget.

The proposed budget includes an appropriation of $421,903 in fund balance.

Expenditures

Personnel Services include an average mid-year merit adjustment of 3%, an increased employer contribution for retirement, and higher health insurance costs.

The operating budget includes $450,000 for contractual services to perform routine stormwater maintenance, due to high vacancies within the existing personnel.

Stormwater capital projects have been transitioned out of the operating budget and into the Stormwater Capital Fund. The full list of proposed projects can be found in the Capital Improvement Program (CIP) section of the document.

STORMWATER

Proposed

2024-2025 Operating Budget

$ 7, 175 , 158

ROBBY STONE, PUBLIC SERVICES DIRECTOR

Mission Statement

The mission of the Stormwater Fund is to provides citizens with a comprehensive Stormwater management program that addresses Stormwater pollution and provides timely assistance in making drainage improvements on public and private property based on eligibility and prioritized needs

Budget Summary

Personnel Summary

STORMWATER DEBT SERVICE

STORMWATER CAPITAL PROJECTS

CENTRAL SERVICES FUND

Proposed 202 4- 202 5 Operating Budget $21,163,685

The Central Services Fund is used to account for the financing of goods and services provided by one department to other departments on a cost reimbursement basis.

Budget Summary

REVENUES

Revenues

CENTRAL SERVICES FUND REVENUES & EXPENDITURES

Fleet charges are increased $733,880 to cover the costs for vehicle and other rolling stock replacements. The Fleet Services budget includes $1,575,000 in debt proceeds for several pieces of rolling stock that will be financed for next year.

Expenditures

The proposed budget replaces $4,655,000 in vehicles funded with pay-go funding from the Fleet division of the Central Services Fund, as well as $1,575,000 for rolling stock to be financed. Planned fleet purchases include one (1) tandem dump truck, one (1) single axle dump truck, fifteen (15) police vehicles, two (2) fire SUV’s, one (1) front loader refuse truck, two (2) Jet/Vac trucks, three (3) back hoe tractors, one (1) drilling machine, one (1) bucket truck, one (1) compactor, one (1) bulldozer, one (1) 15-passenger van, two (2) pavement roller’s, SUV’s, light duty pickup trucks, body equipped work trucks, and other necessary rolling stock. The total cost of requested vehicles and rolling stock replacements that meet the replacement criteria totals $9.7 million dollars

RADIO REPAIR SHOP

Proposed 2024-2025 Operating Budget $ 2, 527, 788

ADAM WARD, DIRECTOR

Mission Statement

The Radio Maintenance Division operations come under the direction of the Information Technology Department. This division is responsible for the installation and maintenance of all City-owned two-way communications systems and components.

Budget Summary

COMPUTER REPLACEMENT

Proposed 2024-2025 Operating Budget

$89 3, 699

ADAM WARD, DIRECTOR

Mission Statement

This division's operations come under the direction of the Information Technology Department. Operations in this division provide budgetary information and internal billings for replacing existing computers and related equipment.

Budget Summary

FLEET SERVICES

Proposed 2024-2025 Operating Budget

$17, 386 , 139

KEVIN ROGERS, DIRECTOR

Mission Statement

The mission is to provide our customers with the highest quality fleet management services at the lowest possible cost. We strive to service the equipment in the most cost-effective manner possible through high productivity of our personnel and sound professional decisions in the management of the fleet. We are proud of our organization and the services that we provide through hard work, professionalism, and a positive image our people present. We appreciate and encourage pride in services rendered

Budget Summary

PRINT SHOP

$ 35 6 ,0 59

JERON HOLLIS, MANAGING DIRECTOR

Mission Statement

The Print Shop operations come under the direction of the Communications and Public Engagement Department. This division is responsible for providing printing and copying services to all City Departments, as well as receiving, processing, and deliverying all incoming and outgoing City mail.

Budget Summary

ECONOMIC DEVELOPMENT

INCENTIVE FUND

Proposed 20 24- 202 5 Operating Budget

$1,500,000

The Economic Development Incentive fund is used at the City Council’s direction to provide for possible incentives for economic development within the City of High Point

Budget Summary

Revenues

ECONOMIC DEVELOPMENT INCENTIVE FUND REVENUES & EXPENDITURES

Incentive payments are funded by previously accumulated reserves, and transfers from the General Fund and the Electric Fund.

Expenditures

Economic development incentives are budgeted at $1,500,000 for FY 2024-25.

INSURANCE RESERVE FUND

Proposed 202 4- 202 5 Operating Budget

$25,483,674

The Insurance Reserve Fund is used to budget expenses for health, dental, life insurance, and workers’ compensation insurance contracts Budget Summary

INSURANCE RESERVE FUND REVENUES & EXPENDITURES

Revenues

The per employee cost for health and dental premiums is increased 8% for FY 2024-25. There is no increase to the employee contribution for health and dental.

Expenditures

Expenditures are based on recent year trends and discussions with the City’s health benefits consultant. The employee health clinic contract is budgeted at a cost of $336,290 for FY 2024-25.

GENERAL RISK RETENTION FUND

Proposed 202 4- 202 5 Operating Budget

$1,155,830

The General Risk Retention Fund is used to accumulate claim reserves and to pay claims and administrative fees for general and auto liability claims in the City’s self-funded risk program.

Budget Summary

MARKET AUTHORITY FUND

Proposed 202 4- 202 5 Operating Budget

$0

The Market Authority Fund is a public-private partnership sponsor of the International Home Furnishings Market to develop strategies and priorities to address transportation, parking, hospitality, promotion, and other improvements for the annual spring and fall markets

Budget Summary

MARKET AUTHORITY FUND REVENUES & EXPENDITURES

The Market Authority Fund is merging into the Showroom and Occupancy Tax Fund beginning in FY 2024-25.

SHOWROOM AND OCCUPANCY TAX FUND

Proposed 202 4- 202 5 Operating Budget

$5,761,000

The Showroom and Occupancy Tax Fund is used to account for revenues from the occupancy tax on hotels and rental properties and the showroom privilege license tax. The revenues are primarily passed on to Visit High Point and the High Point Market Authority for tourism and furniture market promotion and administration.

Budget Summary

Revenues

SHOWROOM & OCCUPANCY TAX FUND REVENUES & EXPENDITURES

Current year trends see a slight increase in room occupancy taxes. Occupancy tax revenues are projected to increase about 2% for FY 2024-25.

Expenditures

Occupancy tax revenues are passed through to Visit High Point, the Market Authority, and for the contribution to the debt service payments on the stadium. Showroom license tax revenue is passed through to the Market Authority

COMMUNITY DEVELOPMENT FUND

Proposed 202 4- 202 5 Operating Budget

$2,836,000

The Community Development Fund accounts for the receipt and disbursement of all grants, including federal, state, and local grants or entitlements, related to the Community Development Block Grant program. The budget appropriation represents that portion of existing grants which were not fully expended in the prior fiscal year, and which will be reestablished in the current year, and also allowance for grants that will be received during the current year.

Budget Summary

Personnel Summary

SUMMARY OF COMMUNITY DEVELOPMENT PROJECTS

SPECIAL GRANTS FUND

Proposed 202 4- 202 5 Operating Budget

$6,556,441

The Special Grants Fund accounts for the receipt and disbursement of all grants, including federal, state, and local grants or entitlements but excluding the Community Development Block Grant. The budget appropriation represents that portion of existing grants which were not fully expended in the prior fiscal year, and which will be reestablished in the current year, and also allowance for grants that will be received during the current year

Budget Summary

SUMMARY OF SPECIAL GRANT PROJECTS

MASS TRANSIT FUND

Proposed 202 4- 202 5 Operating Budget

$6,021,199

The Public Transportation division is responsible for providing safe, reliable transportation at a fair cost to all the citizens of High Point through the High Point Transit System (HPTS), which offers fixed route bus service, ADA complementary paratransit service, and door-to-door demand responsive service for the elderly.

Budget Summary

Performance Measures

Budget Highlights

- Federal grant revenue for operating assistance is budgeted at $2,395,850 for FY 2024-25. State Maintenance Assistance Program (SMAP) funds are budgeted at $348,292.

- The Transit Fund is subsidized by a transfer from the General Fund totaling $1,815,955 for FY 202425.

- Personnel Services include an average mid-year merit adjustment of 3%, an increased employer contribution for retirement, and higher health insurance costs.

FIVE-YEAR CAPITAL IMPROVEMENT PROGRAM (CIP)

Capital Project Definition

The Capital Improvement Program (CIP) is a prioritized, multi-year plan for major capital expenditures, such as the construction, reconstruction, renovation or replacement of a public building; facility or major equipment items; the purchase of land, buildings or facilities for a public purpose; studies and surveys leading to such physical improvements or any combination of the above. By providing a planned schedule of public improvements, the program outlines present and future needs and intentions. A capital improvement project should have a cost greater than $15,000 and a useful life of at least ten years.

Capital Process Description

The City of High Point’s capital improvement program is the result of a detailed financial planning process used by City leaders to establish funding priorities of major capital projects. The purpose is to address the City’s immediate and long-term capital needs in a conscious effort to best provide services and facilities to the citizens of High Point.

To accomplish this, the CIP process consists of a three-phase mechanism. Mid-year department heads submit a five-year capital plan to the Budget and Evaluation Department for consideration. This requires substantial planning at the department level to identify projects that are deemed necessary to respond to public needs.

A vital segment of the proposal includes entering project financial information into Questica which projects cost estimates as well as the revenue sources for the project. Submission of the project’s financial information is a fundamental component in coordinating the available resources to fund the project.

The second phase of the CIP process includes review of each proposal by the Budget and Evaluation Department. Factors analyzed include:

• The priority of the project as defined by City leaders or formal Council policy

• Feasible funding sources in relation to the projected timetable

• Impact the project will have on the operating budget and service levels

The projects are evaluated according to the following criteria:

• Risk to Public Safety or Health

• Deteriorated Facility

• Systematic Replacement

• Improvement of Operating Efficiency

• Coordination

• Equitable Provision of Services/Facilities

• Protection and Conservation of Resources

• New or Substantially Expanded Facility

• Prior Commitment by City Council or Manager

The budget staff compiles a priority list as the projects relate to the City’s overall mission of “…creating the single most livable, safe and prosperous community in America.” This list of proposed projects is presented to the management team.

The final phase consists of compiling the five-year Capital Improvement Program for consideration by the City Council as part of the budget review and adoption process. Recognizing that needs and priorities vary from year-to-year, only the first fiscal year of the five-year program is considered for adoption. The subsequent four years are used for strategic financial planning purposes.

Capital Improvement Funding

Funding for the Capital Improvement Program varies by fund. Typically, in the General Capital Projects Fund most of the funding comes by transfer from the General Fund.

For Water and Sewer capital projects, funding comes into the Water & Sewer Capital Projects Fund by transfer from the Water and Sewer Fund. The other utility funds (Electric, Solid Waste, and Stormwater Funds) are in a transition stage. Therefore, existing capital projects are included within the fund; and in new projects, funding comes into the Capital Funds by transfer from the respective fund.

Projects that authorize the construction or acquisition of major capital and will extend more than one fiscal year are adopted in Capital Project Ordinance Funds, which are in effect for the life of the project. Bonds, state and federal grants, or some combination of these normally fund these projects. The uniqueness of these funds is that they do not require re-appropriation each fiscal year and are not part of the regular budget but are adopted separately.

PROPOSED CAPITAL IMPROVEMENT PROGRAM (CIP)

FY 2025-29

The capital budget summary shown below of $68,796,666 is the first year of a five-year capital improvement program which is reviewed and updated annually to meet the capital needs of the community. The largest portions are in Water & Sewer and Electric. Water & Sewer includes $1.72 million for the rebuilding of filters 1-4 at the Ward Water Plant and $2.0 million to upgrade the SCADA computer and server. Electric is funding a switch to an automated meter reading initiative of $7.0 million, $7.0 million for a new Municipal Operations Center, $4.0 million for electrical improvements on Washington Street, and $3.1 million for electrical electric improvements for the Showroom District.

Infrastructure improvements remain a top priority of the City's long-term capital planning as the City of High Point prepares for the present and future challenges of an aging infrastructure, safe water quality and availability of safe waste disposal.

Expenditure By Program

Expenditures By Program

Funding Sources

CAPITAL PROJECT

ORDINANCES

Capital project ordinances authorize the construction or acquisition of major capital and continue in effect for the life of the project that extends over more than one fiscal year and do not require re-appropriation each fiscal year.

The information presented below represents the status of our currently authorized capital project ordinances as of April 16, 2024. Actual expenses do not include funds that are encumbered.

CAPITAL PROJECT ORDINANCES,

CIP PROJECT SUMMARY

CIP PROJECT SUMMARY

CIP PROJECT SUMMARY

CIP PROJECT SUMMARY

CIP PROJECT SUMMARY

CIP PROJECT SUMMARY

TOTAL CAPITAL PROJECTS SUMMARY

FUNDING SOURCE

GENERAL CAPITAL PROJECTS

FY 2025 – 2029

GENERAL CAPITAL

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Enterprise Resource Planning (ERP) Upgrade

Project Type: Software

Start Date: July 1, 2018

Est. Completion Date: December 31, 2025

Description: This is an upgrade from Lawson Version 10 to a new ERP system.

Project Details

GENERAL CAPITAL

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: 911 Radio Tower

Project Type: Infrastructure

Start Date: January 1, 2025

Est. Completion Date: December 31, 2027

Description: The construction of a new radio tower site in the City will allow for sufficient radio coverage to the western area of High Point. The new tower will include a comparator upgrade and the implementation of a Geo-Prime site, which will address coverage gaps, enhance public safety, and ensure uninterrupted radio system functionality.

Project Details

GENERAL CAPITAL

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Citywide Deferred Maintenance Program

Project Type: Improvements

Start Date: July 1, 2023

Est. Completion Date: Ongoing

Description: The Citywide Deferred Maintenance Program allows the department to cover deferred maintenance needs, as well as other needed improvements, at all of the facilities throughout the City.

Project Details

GENERAL CAPITAL

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Commercial Shared-Use Kitchen

Project Type: Construction

Start Date: July 1, 2024

Est. Completion Date: June 30, 2026

Description: Additional funds to complete the construction and purchase the furniture, fixtures, and equipment for the commercial shared-use kitchen.

Project Details

GENERAL CAPITAL

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Police Firing Range Improvements

Project Type: Improvements

Start Date: July 1, 2024

Est. Completion Date: June 30, 2025

Description: The facility has reached a lifespan of 10+ years. Improvements to the facility include addressing the shoot house, rappelling tower, and turning target system, which includes software upgrades.

Project Details

GENERAL CAPITAL

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Burn Facility

Project Type: Construction

Start Date: July 1, 2026

Est. Completion Date: June 30, 2029

Description: Live burn structure for training located at the training facility on W Ward.

Project Details

GENERAL CAPITAL

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Self-Contained Breathing Apparatus (SCBA) Replacement

Project Type: Equipment

Start Date: July 1, 2025

Est. Completion Date: June 30, 2026

Description: The current inventory of self-contained breathing apparatus equipment for the Fire Department will reach its end of life in the Fall of 2025.

Project Details

GENERAL CAPITAL

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Land for Future Station Development

Project Type: Land Acquisition

Start Date: July 1, 2025

Est. Completion Date: June 30, 2026

Description: Acquisition of land for the development of future fire stations.

Project Details

GENERAL CAPITAL

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: High Speed Doors

Project Type: Facility Upgrades

Start Date: July 1, 2026

Est. Completion Date: June 30, 2028

Description: Fire station bay doors need to clear the door opening rapidly to make way for large equipment trucks and then close efficiently to protect the facility. Built to last over millions of opening cycles, doors are engineered for high-traffic environments for day in and day out use.

High speed EMS doors and fire station doors open quickly to help ensure fast response time and minimal loss of life and property. Needed at Fire Station 3, 4, 12 and 13.

Project Details

GENERAL CAPITAL

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Station Upgrades and Renovations

Project Type: Facility Upgrades

Start Date: July 1, 2017

Est. Completion Date: Ongoing

Description: Renovations and upgrades to Fire Stations throughout the City.

Project Details

GENERAL CAPITAL

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Legion Site Parking Lot and Restrooms

Project Type: Improvements

Start Date: July 1, 2025

Est. Completion Date: June 30, 2026

Description: This project will include various improvements such as paving, new restrooms, and improved accessibility.

Project Details

GENERAL CAPITAL

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Westchester Park Site Plan

Project Type: Park Plan

Start Date: July 1, 2028

Est. Completion Date: June 30, 2029

Description: This project would be the first step for this park, which would update the 2013 site plan. The development of a plan for a regional park could include amenities such as a dog park, trails, shelter(s), and a playground area.

Project Details

GENERAL CAPITAL

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Restroom Renovations – Oak Hollow Campground

Project Type: Construction

Start Date: July 1, 2024

Est. Completion Date: June 30, 2026

Description: Renovations to both bath houses at Oak Hollow Campground.

Project Details

GENERAL CAPITAL

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Playground and Equipment

Project Type: Equipment

Start Date: July 1, 2022

Est. Completion Date: Ongoing

Description: To replace older playground equipment. New equipment will comply with Playground Standards and Consumer Product Safety Commission Standards.

Project Details

GENERAL CAPITAL

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Park Improvements – Parking Lots

Project Type: Improvements

Start Date: July 1, 2022

Est. Completion Date: Ongoing

Description: Many of the parking lots have deteriorated because of deferred maintenance. Future parking lots include Oak Hollow Campground A/D, Washington Terrace-Murray Street, Festival Park, Johnson Street Disc Golf, and University Park.

Project Details

GENERAL CAPITAL

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Park Improvements – Outdoor Courts

Project Type: Improvements

Start Date: July 1, 2020

Est. Completion Date: June 30, 2025

Description: Due to the age and usage, outdoor courts need to be constantly upgraded in order to better serve residents. Projected FY 2024-25 courts include Armstrong Pickleball, Allen Jay Baseball, Vernon Evans Park and Oakview Tennis.

Project Details

GENERAL CAPITAL

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Southside Splash Pad Replacement

Project Type: Improvements

Start Date: July 1, 2027

Est. Completion Date: June 30, 2028

Description: This project would replacement the current splash pad at Southside due to its need for continual repairs.

Project Details

GENERAL CAPITAL

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: New Playground - High Point Athletic Complex Miracle League Field

Project Type: Improvements

Start Date: July 1, 2026

Est. Completion Date: June 30, 2027

Description: Construct a new playground with additional sensory equipment to allow for a more inclusive experience.

Project Details

GENERAL CAPITAL

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Mohawk Park Renovations

Project Type: Improvements

Start Date: July 1, 2027

Est. Completion Date: June 30, 2029

Description: Mohawk Park, located off Pinehurst Drive, is a small neighborhood park that has experienced problems due to the complexity and size of the park and a deteriorating stream that dissects the area. The aging infrastructure, lack of adequate play space, and erosion along the stream bank have caused problems over time.

Park improvements will address these flood and weathering issues as well as making the playground more accessible and will also include adding a small picnic shelter, renovating the tennis court, and creating a path into a nature scape.

Project Details

GENERAL CAPITAL

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Parks and Recreation Deferred Maintenance Program

Project Type: Improvements

Start Date: July 1, 2023

Est. Completion Date: Ongoing

Description: The Parks and Recreation Deferred Maintenance Program allows the department to cover deferred maintenance needs at all the Parks and Recreation facilities throughout the city.

Project Details

GENERAL CAPITAL

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Washington Terrace Splash Pad

Project Type: Construction

Start Date: July 1, 2028

Est. Completion Date: June 30, 2029

Description: This project would install a new pool splash pad feature at Washington Terrace.

Project Details

GENERAL CAPITAL

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Ballfield Lighting Renovations

Project Type: Park Improvements

Start Date: July 1, 2026

Est. Completion Date: June 30, 2029

Description: The current athletic field and court lighting system is comprised of wooden light poles that support the lighting system at our various athletic courts and fields. Improving the lighting system will replace the current system that has exceeded its useful light. Furthermore, this will allow for better lighting for citizens and Parks and Recreation customers to better use these facilities. These parks include Washington Terrace (1), Cedrow (1), Allen Jay (1,2,3), Harvell Park (1) and Deep River (1,2,3).

Project Details

GENERAL CAPITAL

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Carousel / Merry-Go-Round Replacement

Project Type: Equipment

Start Date: July 1, 2028

Est. Completion Date: June 30, 2029

Description: Replace the merry-go-round at City Lake Park. The current unit was purchased in 1979 and is in need of being replaced. The carousel has been in use for 40+ years.

Project Details

GENERAL CAPITAL

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Stadium Capital Maintenance Reserve

Project Type: Maintenance

Start Date: July 1, 2020

Est. Completion Date: Ongoing

Description: This reserve is set up to provide funds available for capital maintenance, repairs and improvements for the multi-use stadium. The stadium operating agreement requires the City to budget each year for potential capital maintenance needs that may be required for the stadium.

Project Details

GENERAL CAPITAL

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Museum – Parking Lot Improvements

Project Type: Facility Upgrade

Start Date: July 1, 2024

Est. Completion Date: June 30, 2025

Description: The upper and lower parking lots as well as the service area at the rear of the museum will be re-paved and re-striped.

Project Details

GENERAL CAPITAL

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Library – Sound-Absorbing Ceiling Tiles

Project Type: Equipment

Start Date: July 1, 2024

Est. Completion Date: June 30, 2025

Description: This project would install sound-absorbing ceiling tiles in the first floor lobby and the public space on the third floor. Acoustics are becoming an issue following the transition from carpet to vinyl tile flooring.

Project Details

GENERAL CAPITAL

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Museum – Exhibit Gallery Upgrade

Project Type: Facility Upgrade

Start Date: July 1, 2025

Est. Completion Date: June 30, 2027

Description: This project would renovate the lower exhibit gallery for a long-term exhibition about the twin industries of furniture and textiles in High Point. The project will include new flooring, lighting, and exhibit casework.

Project Details

GENERAL CAPITAL

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Library – Space Needs Recommendations Implementation

Project Type: Construction

Start Date: July 1, 2025

Est. Completion Date: June 30, 2028

Description: A space needs assessment was completed in 2023. This project would implement some of the recommendations from that report with a three-phase approach. Phase one would renovate the second floor, phase two would renovate the first floor, and phase three would renovate the third floor.

Project Details

GENERAL CAPITAL

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Theatre - Gallery C Studio Conversion

Project Type: Renovations

Start Date: July 1, 2026

Est. Completion Date: June 30, 2027

Description: Renovate Gallery C at High Point Theatre into a TV/Podcast/production studio.

Project Details

GENERAL CAPITAL

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Theatre – Theatre Renovations

Project Type: Construction

Start Date: July 1, 2026

Est. Completion Date: June 30, 2027

Description: This project will renovate various areas of the theatre including the stage floor, the stage trapping system, the existing seats, the public restrooms, and some additional ADA-required repairs.

Project Details

GENERAL CAPITAL

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Theatre – Security Improvements

Project Type: Equipment

Start Date: July 1, 2026

Est. Completion Date: June 30, 2027

Description: Upgrade theatre video surveillance system to include intruder detection, electronic locks, and auditorium magnetic card entry systems.

Project Details

GENERAL CAPITAL

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Geographic Information Systems (GIS) Orthoimagery Program

Project Type: GIS

Start Date: Ongoing

Est. Completion Date: Ongoing

Description: The purpose of the multi-year GIS Orthoimagery Program is to update the digital data in the City's Geographic Information System (GIS) as obtained from aerial photography data. The program provides data for current & future GIS applications, including E-911 dispatch; fire and police; stormwater; zoning and land use; code enforcement; neighborhood and area plans; capital projects; and transportation projects.

Project Details

GENERAL CAPITAL

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Railroad Crossing Improvements

Project Type: Improvements

Start Date: July 1, 2018

Est. Completion Date: Ongoing

Description: Participation in crossing improvements and rail signalization at various locations citywide. Projects are identified and funded by state and federal rail agencies. Local participation is required at locations where railroad lines cross city streets. Project schedules and duration vary greatly and funding every other fiscal year should be sufficient to cover future projects.

Project Details

GENERAL CAPITAL

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Local Match for North Carolina Department of Transportation (NCDOT) Funded Projects

Project Type: Transportation Improvements

Start Date: Ongoing

Est. Completion Date: Ongoing

Description: Participation in projects developed jointly with NCDOT division office or other sections. Locations citywide. Assumes an 80% State - 20% City cost-share for eligible projects. Annual funding allows for the establishment of a fund balance that can be applied to larger projects if needed.

Project Details

GENERAL CAPITAL

Proposed 2025-2029 Capital Improvement Program (CIP)

Project Title: Johnson Street/Sandy Ridge Road Sidewalks

Project Type: Sidewalks

Start Date: July 1, 2012

Est. Completion Date: June 30, 2028

Description: State-funded project to widen Johnson Street and Sandy Ridge Road to a multi-lane divided road from Skeet Club Road to I-40. Project will include sidewalks, multi-use path, bike lanes, new traffic signals at select locations, and landscaping in median and along shoulders.

Project Details

GENERAL CAPITAL

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Mendenhall Terminal Improvements

Project Type: Improvements

Start Date: July 1, 2017

Est. Completion Date: June 30, 2027

Description: Current improvements include the replacement of obsolete digital message signing with backlit signs and new, larger digital screen. Include management software and other audio-visual enhancements. Kiosk modifications to accommodate additions and improve customer service. Install more efficient lighting and automated security gates at both ends. Repair or replace fireproof coatings on exterior columns.

Funding will be utilized for future improvements, as identified.

Project Details

GENERAL CAPITAL

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: City Sidewalk and Greenway Construction

Project Type: Sidewalks/Greenways

Start Date: Ongoing

Est. Completion Date: Ongoing

Description: Construction of city-funded sidewalks and greenways at prioritized locations throughout the city.

Project Details

GENERAL CAPITAL

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Congestion Mitigation Air Quality (CMAQ) and State Transportation Improvement Program (STIP) Sidewalk Construction

Project Type: Sidewalks

Start Date: July 1, 2019

Est. Completion Date: Ongoing

Description: State and Federally funded sidewalk projects will be locally managed and require a 20% match, with reimbursement for 80% of project costs upon completion and acceptance of the work. Locations currently identified include Eastchester Dr, Main St, Fairfield Rd, James Rd, and N. University Pkwy, plus a pedestrian bridge over I-74 on Cedrow Drive.

Project Details

GENERAL CAPITAL

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Traffic Services Parking & Equipment Lot Resurfacing

Project Type: Facility Upgrade

Start Date: July 1, 2024

Est. Completion Date: June 30, 2025

Description: Resurfacing of the visitor, employee, and vehicle/equipment storage parking lot at the RV Moss Traffic Service Center. In addition to parking, this area is used to store variable message signs, trailers, and other equipment and materials used by the Signs & Markings and Traffic Signals Divisions.

Project Details

GENERAL CAPITAL

Proposed 2025-2029 Capital Improvement Program (CIP)

Project Title: Northwest High Point Connector Road Study

Project Type: Feasibility Study

Start Date: July 1, 2024

Est. Completion Date: June 30, 2025

Description: The project will conduct a feasibility and planning study for an east-west connector route between Sandy Ridge Road and Bunker Hill Road.

Project Details

GENERAL CAPITAL

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Neighborhood Traffic Enhancements

Project Type: Improvements

Start Date: July 1, 2016

Est. Completion Date: Ongoing

Description: This project allows for the installation of traffic calming measures on City streets. Funds may be used to match neighborhood participation.

Project Details

GENERAL CAPITAL

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: North Main Street Pedestrian Improvements

Project Type: Improvements

Start Date: July 1, 2024

Est. Completion Date: June 30, 2025

Description: This project will construct improvements on North Main Street from Lexington Avenue to Church Avenue to improve pedestrian walkability.

Project Details

GENERAL CAPITAL

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Local Match for North Carolina Department of Transportation (NCDOT) Bridge Projects

Project Type: Bridge Repair

Start Date: Ongoing

Est. Completion Date: Ongoing

Description: The city maintains 26 traffic bearing and three pedestrian bridges. Federal and State regulations require these structures to be inspected by an accredited engineer every other year. An inspection report provides a list of priority maintenance items that have to be completed within a given time frame.

Project Details

GENERAL CAPITAL

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Locally Funded Bridge Maintenance and Repair

Project Type: Bridge Repair

Start Date: Ongoing

Est. Completion Date: Ongoing

Description: The city maintains 26 traffic bearing and three pedestrian bridges. Federal and State regulations require these structures to be inspected by an accredited engineer every other year. An inspection report provides a list of priority maintenance items that have to be completed within a given time frame.

Project Details

GENERAL CAPITAL

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Sub-Standard Streets Maintenance

Project Type: Road Alignment

Start Date: July 1, 2016

Est. Completion Date: Ongoing

Description: There are many sub-standard publicly maintained streets in the city. There are 28 unpaved streets. Problems include insufficient right-of-way, improper drainage, etc. Funds are needed to address continual maintenance issues and customer complaints on sub-standard streets (e.g. Ennis St., Albert Ave., Venable Ct., etc.).

Project Details

WATER AND SEWER CAPITAL PROJECTS

FY 2025 – 2029

WATER & SEWER

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Generators – Automation and Replacement

Project Type: Improvements

Start Date: Ongoing

Est. Completion Date: Ongoing

Description: Automation of generators located at Eastside, Westside, Ward, and Riverdale LS. Ability to start/stop generators via supervisory control and data acquisition (SCADA). Will allow locations to operate in island mode and maintain operations remotely. This project will also include the annual replacement of nine (9) ageing generators at the wastewater lift stations.

Project Details

WATER & SEWER

Proposed 2025-2029 Capital Improvement Program (CIP)

Project Title: Obsolete Water Lines

Project Type: Improvements

Start Date: Ongoing

Est. Completion Date: Ongoing

Description: Replacement or rehab of obsolete water mains, valves, and hydrants. Replacement of old and undersized water lines will reduce service interruptions, maintain system pressure, and meet the demands for peak flow.

Project Details

WATER & SEWER

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Obsolete Sewer Lines

Project Type: Re-inspection & Repairs

Start Date: Ongoing

Est. Completion Date: Ongoing

Description: Replacement of deteriorated and/or undersized sewer outfall and sewer services/mains. This will reduce blockages and problems that create sewer backups and overflows.

Project Details

WATER & SEWER

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: SCADA System Upgrades (Computer and Server Replacement)

Project Type: Hardware

Start Date: July 1, 2018

Est. Completion Date: June 30, 2027

Description: This project is to replace the SCADA server and all desktop computers from Westside, Eastside, and the Ward Plant. It will address the upgrade of the SCADA system software to System Platform. It will replace the current version on Intouch which is no longer supported going forward. The server (SCADA backbone) and existing 30 workstations will be updated.

The FY 2025 budget is the Engineer's probable cost for Westside and to add the Eastside Incineration portion to the prints and specs.

Project Details

WATER & SEWER

Proposed 2025-2029 Capital Improvement Program (CIP)

Project Title: Alum Sludge Removal

Project Type: Maintenance

Start Date: Ongoing

Est. Completion Date: Ongoing

Description: Alum sludge will be removed from the two storage lagoons every 1-2 years by contract. This project helps to assure that the water treatment process is not interrupted, and that all phases of treatment run efficiently.

Project Details

WATER & SEWER

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Westside – Final Clarifier 3 Coating Repairs

Project Type: Improvements

Start Date: July 1, 2023

Est. Completion Date: June 30, 2025

Description: This project will address the coating dry film thickness, adhesion tests, and visual coating deficiencies in Westside Final Clarifier #3.

Project Details

WATER & SEWER

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Water Storage Tank Maintenance

Project Type: Maintenance

Start Date: Ongoing

Est. Completion Date: Ongoing

Description: To inspect, sandblast and paint both the inside and outside of the (5) finished water storage tanks. The proposed project is to inspect, clean, and paint the 5 million gallon and 10 million gallon ground storage tanks, located at the Ward Water Plant, 121 N. Pendleton Street.

Water storage tanks need to be periodically inspected and cleaned to help maintain good water quality in the distribution system, and to help extend the life of the tank. Regular tank inspections can also help to identify small problems that may develop into major problems that can create health related issues, lead to costly repairs or premature tank failure.

Project Details

WATER & SEWER

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: North Carolina Department of Transportation (NCDOT) Transportation Improvement Program (TIP)

Project Type: Utility Relocate

Start Date: Ongoing

Est. Completion Date: Ongoing

Description: Relocate utilities relative to TIP Program (Water/Sewer combined)

Project Details

WATER & SEWER

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Water/Sewer Developer Reimbursements

Project Type: Reimbursements

Start Date: Ongoing

Est. Completion Date: Ongoing

Description: Reimbursement for oversized outfalls and sewer mains required for ultimate development. City policy is to reimburse developer for additional size required by sewer master plan but not needed by the individual development.

Project Details

WATER & SEWER

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Wastewater Plants and Lift Stations Equipment Replacement

Project Type: Improvements

Start Date: July 1, 2024

Est. Completion Date: Ongoing

Description: To address unplanned equipment repairs / replacement needs that occur at the Wastewater Plants and Lift Stations. The intent is to better plan and budget for the emergency or unscheduled repair of equipment at the wastewater treatment plants and lift stations.

Project Details

Expense

WATER & SEWER

Proposed 2025-2029

Improvement Program (CIP)

Project Title: Water Distribution Master Plan Recommendations

Project Type: Improvements

Start Date: July 1, 2024

Est. Completion Date: Ongoing

Description: To address deficiencies in the water distribution system that were identified by the Water Master Plan that was completed in 2019. The intent is to better plan and budget for the replacement of aging water lines throughout the distribution system.

Project Details

Expense

WATER & SEWER

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: North Carolina Department of Transportation (NCDOT) – Highway 70 & 29 at South Main

Project Type: Utility Relocation

Start Date: April 1, 2022

Est. Completion Date: December 31, 2025

Description: The North Carolina Department of Transportation (NCDOT) has prepared construction plans for improvements to the interchange at US 29/ US 70/ Business 85 and S. Main St. This project will require substantial water and sewer improvements which will be accomplished in conjunction with this NCDOT project. The City of High Point owns water and sewer utilities that will be impacted by the project’s construction and will be responsible for a portion of the utility construction costs.

Project Details

WATER & SEWER

Proposed 2025-2029 Capital Improvement Program (CIP)

Project Title: Ward Water Treatment Plant Capital Projects

Project Type: Improvements

Start Date: July 1, 2024

Est. Completion Date: December 31, 2025

Description: To address unplanned equipment repairs and replacements needs that occur at the water plant and offsite pumping stations.

Project Details

WATER & SEWER

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Eastside Rebuild of Final Clarifier 4

Project Type: Improvements

Start Date: July 1, 2024

Est. Completion Date: June 30, 2025

Description: The Eastside Final Clarifier #3 was recently taken out of service due to a mechanical failure. An inspection by the manufacturer determined that the drive unit and other major parts of the clarifier needed to be replaced because of the age of the unit. The manufacturer recommend that the Public Services Department move forward with a rehabilitation plan for the other 3 final clarifiers that were constructed at the same time (early 2000s).

Clarification is an essential step in a wastewater treatment process to remove suspended solids through gravity settling, providing a clarified liquid effluent. The Final (Secondary) Clarifiers return activated sludge into the treatment process. This is essential for wastewater treatment. If the Final clarifiers underperform, this could put stress on the wastewater process, resulting in a product (effluent) that does not meet compliance limits.

Project Details

WATER & SEWER

Proposed 2025-2029

Improvement Program (CIP)

Project Title: Ward Water Plant Filters 1-4 Rebuild

Project Type: Improvements

Start Date: July 1, 2022

Est. Completion Date: December 31, 2026

Description: This project will allow for a full replacement of the existing filters and rehabilitation of the pipe gallery at Ward Water Plant.

Project Details

WATER & SEWER

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Compliance with Lead and Copper Rule Revisions

Project Type: Improvements

Start Date: July 1, 2022

Est. Completion Date: October 31, 2024

Description: The United States Environmental Protection Agency (EPA) finalized the first major update to the Lead and Copper Rule (LCR) in nearly 30 years. The finalized Lead and Copper Rule Revisions (LCRR) were promulgated in the Federal Register with a focus on switching from a reactive to proactive approach to improve water quality at the customers’ tap.

Project Details

WATER & SEWER

Proposed 2025-2029 Capital Improvement Program (CIP)

Project Title: Sewer System Improvements

Project Type: Improvements

Start Date: Ongoing

Est. Completion Date: Ongoing

Description: Extension of sewer lines for new services and make needed system improvements. Program is available to those who have petitioned the City Council for sewer services.

Project Details

WATER & SEWER

Proposed 2025-2029 Capital Improvement Program (CIP)

Project Title: Water System Improvements

Project Type: Improvements

Start Date: Ongoing

Est. Completion Date: Ongoing

Description: Extension of water lines for new (petition) services and to make needed system improvements. Project is available to those who petitioned the City Council for water services and to make other system improvements.

Project Details

WATER & SEWER

Proposed 2025-2029 Capital Improvement Program (CIP)

Project Title: Ward Water Treatment Plant Paving

Project Type: Improvements

Start Date: July 1, 2025

Est. Completion Date: June 30, 2026

Description: The parking and driveway areas around the Ward Water Treatment Plant are in poor condition and are in need of repaving.

Project Details

WATER & SEWER

Project Title: Arc Flash Project

Project Type: Improvements

Start Date: July 1, 2020

Est. Completion Date: December 31, 2028

Description: Working from large to smaller facilities to study arc flash and complete required labeling to electrical panels plus make recommendations to meet all safety requirements (PPE, operating procedures, etc.).

Project Details

WATER & SEWER

Proposed 2025-2029 Capital Improvement Program (CIP)

Project Title: NW Water System Improvements Phase 3

Project Type: New Lines

Start Date: July 1, 2025

Est. Completion Date: June 30, 2029

Description: NW Water System Improvements through Forsyth County to loop the system together.

Project Details

WATER & SEWER

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Ward Water Treatment Plant Chemical Feed Line Replacement

Project Type: Improvements

Start Date: July 1, 2025

Est. Completion Date: June 30, 2026

Description: The chemical feed lines coming from the bulk tanks to the day tanks and then to the injection points need repair. The chemicals are harsh and have degraded the glue and plastic piping. The current pipes are oversized and need to be reduced and the diffusers at the injection points are old and rusty. The replacement of these pipes will improve the reliability of the plant and may prevent an unauthorized chemical discharge.

Project Details

WATER & SEWER

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Westside Primary Clarifier 1 Coating Repairs

Project Type: Improvements

Start Date: July 1, 2025

Est. Completion Date: June 30, 2027

Description: This project will address the coating dry film thickness, adhesion tests, and visual coating deficiencies in Westside Primary Clarifier #1.

Project Details

WATER & SEWER

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Westside Primary Clarifier 2 Coating Repairs

Project Type: Improvements

Start Date: July 1, 2025

Est. Completion Date: June 30, 2027

Description: This project will address the coating dry film thickness, adhesion tests, and visual coating deficiencies in Westside Primary Clarifier #2.

Project Details

WATER & SEWER

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Complete Demolition – Kearns Water Plant

Project Type: Public Safety

Start Date: July 1, 2023

Est. Completion Date: December 31, 2025

Description: The Kearns Water Plant is located 1413 E. Martin Luther King Drive. The plant was partially demolished in 2019. The scope of this project will be to fully demolish the remaining portion of the plant due to safety concerns about the vacant building.

Project Details

WATER & SEWER

Proposed 2025-2029 Capital Improvement Program (CIP)

Project Title: Johnson Street Siphon

Project Type: Water/Sewer Lines

Start Date: July 1, 2023

Est. Completion Date: June 30, 2026

Description: To abandon the existing siphon that currently runs under Johnson Street. The siphon was originally constructed in 1967 during the construction of Johnson Street. The preliminary plan is to abandon the existing siphon and construct a new line that will tie into the Windchase Pump Station and discharge into the sanitary sewer outfall on the east side of Johnson Street.

Project Details

WATER & SEWER

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Gallimore Dairy Road Widening

Project Type: Utility Relocate

Start Date: July 1, 2024

Est. Completion Date: September 30, 2027

Description: Widen Gallimore Dairy Road as a multi-lane thoroughfare from NC68 to I-40 including water improvements.

Project Details

WATER & SEWER

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: East Fork Lift Station

Project Type: Lift Station

Start Date: July 1, 2025

Est. Completion Date: June 30, 2030

Description: To upgrade the existing East Fork Lift Station to accommodate future development within the northeast section of High Point. This project will allow the City of High Point to expand and serve more citizens in the northeast section of High Point. These improvements will allow for more development in an area that has already seen steadily increasing residential development. Any future development without these improvements could push flows over the permitted limits.

Project Details

WATER & SEWER

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Large Water Meter Change Out

Project Type: Improvements

Start Date: July 1, 2011

Est. Completion Date: June 30, 2026

Description: The purpose of this program is to replace and/or retrofit existing large meters and meter boxes. Currently, large water meters have been in service for 20 plus years. Many of these meters have been in place due to how they were installed. Work that will be done in conjunction with meter changeout will include retrofit of meter boxes to allow future testing and easier replacement.

Project Details

WATER & SEWER

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Irbywood-E. Parris Sewer Improvements

Project Type: Water/Sewer Lines

Start Date: September 1, 2027

Est. Completion Date: September 30, 2028

Description: The existing sewer line is undersized. The line is downstream of a local dairy company and the lines become blocked resulting in sewer overflows. The sewer line has become a continual maintenance problem. Temporary repairs have been performed, but the entire line must be replaced. The replacement is required to keep the City in compliance with the State issued permit. An additional backup and overflow could result in untreated wastewater reaching Oak Hollow Lake

Project Details

WATER & SEWER

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Dilworth Road / Squire Davis Loop

Project Type: Construction

Start Date: July 1, 2028

Est. Completion Date: September 30, 2029

Description: This project will install approximately 5,700 linear feet of 8” water main on Dilworth Road from Skeet Club Road to Squire Davis Road and aproximately 6,800 linear feet of 12” water main on Squire Davis Road from Dilworth Road, which will tie in on Sandy Ridge Road. The project is needed to supply the demand due to growth in the area.

Project Details

WATER & SEWER

Project Title: Johnson Street/Sandy Ridge Road Widening

Project Type: Utility Relocate

Start Date: July 1, 2024

Est. Completion Date: December 31, 2027

Description: Widening of Johnson Street and Sandy Ridge Road, including sewer improvements.

Project Details

WATER & SEWER

Proposed 2025-2029 Capital Improvement Program (CIP)

Project Title: Kivett Drive – Groometown Road 8’’ Water Main

Project Type: New Lines

Start Date: July 1, 2026

Est. Completion Date: December 31, 2027

Description: This project will install approximately 12,700 linear feet of 8" water main from Hickory Creek Rd East to Groometown Rd. then south to Hickory Creek Rd. This line will be used to transport water from Vickery Chapel Rd to Groometown Rd. This additional capacity will subsidize High Point's current reservoir for future growth. Project Details

WATER & SEWER

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: NW Sewer System Improvements Future 3

Project Type: Improvements

Start Date: July 1, 2026

Est. Completion Date: September 30, 2028

Description: NW Sewer System Improvements to meet future growth demands

Project Details

WATER & SEWER

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Ensley Outfall 2B

Project Type: Obsolete Lines

Start Date: July 1, 2026

Est. Completion Date: June 30, 2028

Description: Replace 4,000 linear feet of 18" sanitary sewer with 36" diameter line. This project will replace deteriorated sanitary sewer pipe and provide for improved sewer service to customers.

Project Details

WATER & SEWER

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: NE Sewer Line Replacement – Upstream of Gallimore Dairy (Econ Dev)

Project Type: Water/Sewer Lines

Start Date: July 1, 2028

Est. Completion Date: June 30, 2030

Description: To upgrade the existing sanitary sewer lines upstream of Gallimore Dairy Road for future development in the northeast section of High Point. This project was added to the Capital Improvements Plan based on an Economic Development inquiry about a prospective 500,000 gallons per day industrial user looking at constructing a factory within the northeast section of the city.

Project Details

WATER & SEWER

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Upper Boulding Branch Sewer Rehabilitation

Project Type: Water/Sewer Lines

Start Date: July 1, 2022

Est. Completion Date: June 30, 2028

Description: As part of the Sanitary Sewer Master Plan (2019), temporary flow monitoring results showed high infiltration and inflow (I/I) in the Upper Boulding Branch basin. After completion of the hydraulic modeling analysis, it was determined that the Upper Boulding Branch was the highest priority for potential I/I reduction due to downstream capacity constraints. The scope of the project will be to perform rehabilitation on identified portions of the sewer collection system within the Upper Boulding Branch basin.

Project Details

WATER & SEWER

Proposed 2025-2029 Capital Improvement Program (CIP)

Project Title: Riverdale Pump Station Rebuild

Project Type: Facility Upgrade

Start Date: July 1, 2022

Est. Completion Date: June 30, 2027

Description: The scope of the project will be to replace the pumps, motors, and electrical components that were originally installed in the Riverdale Pump Station in 1994. The project will also address flood proofing of the pump station.

Project Details

WATER & SEWER

Proposed 2025-2029

Improvement Program (CIP)

Project Title: City Lake Dam Upgrade

Project Type: Upgrade

Start Date: July 1, 2022

Est. Completion Date: December 31, 2028

Description: This project will rehab and upgrade the City Lake dam to increase spillway capacity to meet current dam safety criteria and state requirements for a design storm event.

Project Details

WATER & SEWER

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: RAISE Grant – Water-Sewer Utilities

Project Type: Improvements

Start Date: July 1, 2022

Est. Completion Date: December 31, 2026

Description: In 2021, the City secured a $19.8 million RAISE grant to construct approximately 3.5 miles of shared-use greenway, approximately 1.2 miles of Complete Streets, and two blocks of bicycle boulevards in High Point. Included in this proposal are Water/Sewer utility improvements on Elm Street.

Project Details

WATER & SEWER

Proposed 2025-2029 Capital Improvement Program (CIP)

Project Title: Waterview Lift Station Improvements

Project Type: Improvements

Start Date: July 1, 2024

Est. Completion Date: June 30, 2029

Description: The Waterview Pump Station is located adjacent to Oak Hollow Lake and is critical for carrying wastewater flow to the Eastside Wastewater Treatment Plant. New development upstream of the pump station will be prohibited due to the pump station being undersized to handle wastewater flows.

Project Details

WATER & SEWER

Proposed 2025-2029 Capital Improvement Program (CIP)

Project Title: Shadybrook Lift Station Improvements and Upsizing

Project Type: Improvements

Start Date: July 1, 2024

Est. Completion Date: December 31, 2028

Description: This project includes upsizing the existing lift station. The current upstream gravity system and force main are undersized for existing wastewater flows. This lift station is critical for carrying wastewater flow to the Eastside Wastewater Treatment Plant.

Project Details

WATER & SEWER

Proposed 2025-2029 Capital Improvement Program (CIP)

Project Title: Triangle Lake Road – Hickory Chapel Road

Project Type: Obsolete Lines

Start Date: July 1, 2021

Est. Completion Date: December 31, 2026

Description: Obsolete water and sewer lines replacements for Triangle Lake and Hickory Chapel Road and various street tie-ins. The water lines are cast iron and were constructed in 1965. The sewer line is vitrified clay and was constructed in 1965.

Project Details

WATER & SEWER

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Piedmont Triad Regional Water Authority Water Treatment Plant Upgrade – Emerging Contaminants

Project Type: Improvements

Start Date: July 1, 2025

Est. Completion Date: December 31, 2028

Description: Upgrades at the Piedmont Triad Regional Water Authority Water Treatment Plant As part of the water authority, High Point has a percentage responsibility for upgrades.

Project Details

WATER & SEWER

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Eastside Expansion (26 to 32 mgd)

Project Type: Building Expansion

Start Date: July 1, 2025

Est. Completion Date: December 31, 2028

Description: The Eastside Wastewater Treatment Plant was expanded in the early 2000’s and a large portion of the equipment utilized for the wastewater treatment is becoming obsolete and requiring increased maintenance. There is also a need to expand the capacity of the plant due to future development and the potential of increased wastewater flows.

Project Details

WATER & SEWER

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Piedmont Triad Regional Water Authority New Transmission Line

Project Type: System Upgrade

Start Date: July 1, 2027

Est. Completion Date: December 31, 2028

Description: To construct a new water transmission line to carry additional treated water from the Piedmont Triad Regional Water Authority. The new line will connect to the existing 30” transmission line at the intersection of Groometown Road / NC 62 and then be routed along NC 62 and I-74 corridor to tie into the Ward Water Treatment Plant.

This project will provide additional treated water for the citizens of High Point - current and future. The project will provide an alternate water source in the event an issue occurs with the water plant or water distribution system.

Project Details

WATER & SEWER

Proposed 2025-2029 Capital Improvement Program (CIP)

Project Title: W. Lexington – Water Line Replacement (N. Main to Westchester)

Project Type: Water/Sewer Lines

Start Date: July 1, 2028

Est. Completion Date: September 30, 2030

Description: This project will replace the existing 6” water main located between N. Main Street and Westchester Drive.

Project Details

WATER & SEWER

Proposed 2025-2029

Improvement Program (CIP)

Project Title: E. Lexington – Water Line Replacement (N. Main to Centennial)

Project Type: Water/Sewer Lines

Start Date: July 1, 2028

Est. Completion Date: September 30, 2030

Description: This project will replace the existing 6” water main located between N. Main Street and N. Centennial Drive.

Project Details

$2,040,000

WATER & SEWER

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: E. Lexington – Water Line Replacement (McGuinn to Five Points)

Project Type: Water/Sewer Lines

Start Date: July 1, 2028

Est. Completion Date: September 30, 2031

Description: This project will replace the 6” water main located between N. McGuinn Drive and Five Points Place. The existing water line was constructed in 1928 and there have been numerous main breaks along this line.

Project Details

WATER & SEWER

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Shadybrook Gravity Sewer Improvements (Upstream)

Project Type: Improvements

Start Date: July 1, 2028

Est. Completion Date: December 31, 2030

Description: This project includes upsizing the gravity sewer lines to the Shadybrook Lift Station.

Project Details

WATER & SEWER

Proposed 2025-2029

Project Title: McKinley Lift Station Improvements (Upsizing)

Project Type: Improvements

Start Date: July 1, 2028

Est. Completion Date: December 31, 2031

Description: This project includes upsizing the existing lift station including water crossing

Project Details

ELECTRIC CAPITAL PROJECTS

FY 2025 – 2029

ELECTRIC Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Area Outdoor Lighting

Project Type: Infrastructure

Start Date: Ongoing

Est. Completion Date: Ongoing

Description: Installation of new area lighting. Provides rental area lights as requested by customers.

Project Details

ELECTRIC Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Street Lighting

Project Type: Infrastructure

Start Date: Ongoing

Est. Completion Date: Ongoing

Description: Installation of new street lighting. Provides roadway lighting for city streets, improving safety and visibility

Project Details

ELECTRIC Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Downtown Underground

Project Type: Infrastructure

Start Date: Ongoing

Est. Completion Date: Ongoing

Description: Addition of new circuits downtown and replacement of 30 year old submersible transformers and conversion of existing overhead lines downtown. The project will improve reliability, replace transformers before they fail resulting in outages and provide additional capacity for load growth downtown. The conversion of overhead lines will allow for construction of multi-story buildings without violating safety codes and make property more attractive for investment and development.

Project Details

ELECTRIC Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Overhead to Underground Conversion

Project Type: Infrastructure

Start Date: Ongoing

Est. Completion Date: Ongoing

Description: Replacement of 30 year old overhead facilities for circuits E4, E7 and B4. This will improve electric system reliability for these circuits. The reconstruction will reduce the possibility of service interruption. These circuits not only serve customers but provide reserve capacity for the hospital, Westchester Drive, North Main Street and the Downtown area. The conversion of overhead lines to underground will promote development and provide capacity for electric system load growth.

Project Details

ELECTRIC Proposed

2025-2029 Capital Improvement Program (CIP)

Project Title: Eastchester Transformer 1 Replacement

Project Type: Equipment

Start Date: July 1, 2025

Est. Completion Date: June 30, 2026

Description: Scheduled replacement for transformer at the end of its service life.

Project Details

ELECTRIC Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Eastchester Transformer 2 Replacement

Project Type: Equipment

Start Date: July 1, 2024

Est. Completion Date: June 30, 2025

Description: Scheduled replacement for transformer at the end of its service life.

Project Details

ELECTRIC Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Filter T1 Transformer Replacement

Project Type: Equipment

Start Date: July 1, 2025

Est. Completion Date: June 30, 2027

Description: Scheduled replacement for transformer at the end of its service life.

Project Details

ELECTRIC

Capital Improvement Program (CIP)

Project Title: Underground Subdivision Cable Replacement

Project Type: Infrastructure

Start Date: July 1, 2020

Est. Completion Date: Ongoing

Description: Replacement of underground primary cable that is 40 years old, currently failing, and at the end of its service life.

Project Details

ELECTRIC

(CIP)

Project Title: North Carolina Department of Transportation (NCDOT) Eastchester Widening

Project Type: Utility Relocation

Start Date: May 1, 2024

Est. Completion Date: July 1, 2028

Description: NCDOT is widening Eastchester Drive from Hickswood Road to Gallimore Dairy Road. The City of High Point Electric Department has 2 distribution circuits and 1 transmission circuit in that corridor.

Project Details

ELECTRIC Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Rebuild Buss at Commerce Substation

Project Type: Facility Upgrade

Start Date: July 1, 2026

Est. Completion Date: June 30, 2027

Description: Rework the main buss, which is in need of an upgrade, at the Commerce Substation.

Project Details

ELECTRIC Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: New Electric Municipal Operations Center (MOC)

Project Type: Facility Addition

Start Date: July 1, 2025

Est. Completion Date: June 30, 2029

Description: Design and construction of a new Municipal Operations Center (MOC) for the Electric Department.

Project Details

ELECTRIC Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Downtown Underground – Showroom District

Project Type: Infrastructure

Start Date: July 1, 2024

Est. Completion Date: December 31, 2026

Description: This project will consist of the burying of power lines underground in the Showroom District. The state’s budget included $9 million for capital funding for infrastructure and other improvements to the High Point Market Authority. The City will administer the public improvements and contribute in-kind services.

Project Details

ELECTRIC Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Hammer to Lexington Avenue Transmission Line

Project Type: Transmission Line

Start Date: July 1, 2026

Est. Completion Date: June 30, 2028

Description: Back-up 100 kV feed for the Hammer Substation, utilizing the existing 36 kV route/right-ofway.

Project Details

ELECTRIC Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Phillips Substation Expansion

Project Type: Infrastructure

Start Date: July 1, 2024

Est. Completion Date: June 30, 2026

Description: This project will add a distribution transformer and circuit breakers to the West End Substation.

Project Details

ELECTRIC Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Southeast Substation

Project Type: Infrastructure

Start Date: July 1, 2028

Est. Completion Date: June 30, 2029

Description: Construction of a new 30 MVA substation on the Fairfield Road site, which was purchased in prior years.

Project Details

ELECTRIC Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Southeast Transmission

Project Type: Infrastructure

Start Date: July 1, 2027

Est. Completion Date: June 30, 2029

Description: Construction of an overhead transmission line connecting Jackson Lake Substation with Fairfield Substation.

Project Details

ELECTRIC Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Washington Street Project

Project Type: Infrastructure

Start Date: July 1, 2024

Est. Completion Date: December 31, 2025

Description: Relocating the lines along Washington Street, moving overhead lines for the railroad to rework slopes along tracks.

Project Details

ELECTRIC Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Automated Meter Reading Initiative

Project Type: Infrastructure

Start Date: July 1, 2018

Est. Completion Date: Ongoing

Description: Implementation of new Automated Metering Infrastructure (AMI). Funding to reflect system change-out. This project will improve metering capabilities and provide better customer service.

Project Details

TRANSIT CAPITAL PROJECTS

FY 2025 – 2029

TRANSIT

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Hi Tran Bus Fleet Replacement

Project Type: Vehicles

Start Date: Ongoing

Est. Completion Date: Ongoing

Description: Buses are being replaced because of the cost associated with an aging fleet with high mileage. Replacement cost is estimated at $800,000 per bus. Federal/State/City funding of 80%, 10%, 10% split.

Project Details

TRANSIT

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Five Points Transfer Hub Property Acquisition and Facility Construction

Project Type: Land Purchase/Construction

Start Date: July 1, 2020

Est. Completion Date: December 31, 2026

Description: This project will build a small passenger waiting facility in the Five Points area where two current, one forthcoming route, and one planned route will all intersect and passengers will be able to transfer between the routes.

The convergence of four routes in one area outside of downtown will be a great convenience for transit passengers. Unlike downtown, the routes may not be timed so that the buses will all be there at the exact same time. This will necessitate a waiting area to protect passengers from environmental factors. This building will also provide the operators access to restroom facilities as two of the four routes never go downtown.

Project Details

TRANSIT

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Operators’ Training Property Acquisition & Facility Construction

Project Type: New Construction

Start Date: July 1, 2023

Est. Completion Date: June 30, 2026

Description: The purchase of approximately 2.3 acres that consist of multiple properties between the northeast property line of the current transit system location and W English Rd. for construction of a training facility.

Currently, transit operators are trained solely in the limited area in the current operations center parking lot and in the right-of-way with other traffic. There is no space to work with operators on specific skills and maneuvers.

Project Details

TRANSIT

Capital Improvement Program (CIP)

Project Title: Broad Avenue Terminal

Project Type: Improvements

Start Date: July 1, 2024

Est. Completion Date: June 30, 2025

Description: The Broad Ave passenger terminal is beginning to show signs of deteriorating wooden structures due to drainage issues related to design. Rain water is not draining away from the wooden, causing the wood to rot. The passenger terminal will have rotting wooden structures repaired or replaced and the outer structure will be painted.

Project Details

TRANSIT

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Paratransit Vehicle Replacement

Project Type: Vehicles

Start Date: Ongoing

Est. Completion Date: Ongoing

Description: Vehicles are being replaced because of the cost associated with an aging fleet with high mileage. Newer vehicles are more reliable and have a ramp to allow for accessible entry for passengers in wheelchairs or who have difficulty with stairs. Estimated cost is $250,000 per vehicle.

Project Details

TRANSIT

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Transit Fleet Expansion Vehicles

Project Type: Vehicles

Start Date: July 1, 2025

Est. Completion Date: June 30, 2026

Description: As part of the transit system service expansion, the City is adding three new routes. These connector routes are better served using smaller body-on-chassis vehicles instead of the larger 35 foot buses currently operated. The smaller vehicles will also provide micro-transit in certain parts of the city where fixed-route service may not be efficient.

Project Details

PARKING CAPITAL PROJECTS

FY 2025 – 2029

PARKING Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Parking Deck Improvements

Project Type: Facility Maintenance

Start Date: Ongoing

Est. Completion Date: Ongoing

Description: Facility upgrades for the City's parking decks. Structural repairs and upgraded monitoring and security systems. The funds would also be used for deferred maintenance issues.

Project Details

SOLID WASTE CAPITAL PROJECTS

FY 2025 – 2029

SOLID WASTE

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Landfill – Additional Compactor

Project Type: Equipment/Machinery

Start Date: July 1, 2025

Est. Completion Date: June 30, 2026

Description: The purchase of this machine will ensure that the Landfill fully complies with NCDEQ and state regulations. Furthermore, it will significantly extend the lifespan of the landfill by improving compaction and reducing fuel consumption when compared to our older machines. Additionally, this machine will maximize the efficient utilization of air space within the landfill.

Project Details

SOLID WASTE

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Future Solid Waste Equipment Replacement

Project Type: Equipment/Machinery

Start Date: Ongoing

Est. Completion Date: Ongoing

Description: This program will set aside funds for future solid waste equipment replacement, including compactors, tub grinders, etc. for the landfill, MRF, and Ingleside Composting Facility.

Project Details

SOLID WASTE

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Material Recycling Facility (MRF) Maintenance

Project Type: Maintenance

Start Date: Ongoing

Est. Completion Date: Ongoing

Description: MRF facility upgrades will require ongoing maintenance. This funding will be used to assist with keeping the facility and equipment in good working order. Ongoing equipment and building maintenance will assure efficient operations and safe environments on site for the workers, those visiting, and processing of materials.

Project Details

SOLID WASTE

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Tub Grinder and Walking Floor Trailer for Ingleside Composting Facility (ICF)

Project Type: Equipment

Start Date: July 1, 2025

Est. Completion Date: September 30, 2026

Description: This is to purchase a tub grinder and walking floor trailer for the Ingleside Compost Facility to improve the ability to create mulch from the brush and limbs brought into the facility and haul off the site to other locations such as the landfill. The facility currently has two tub grinders, but due to the age and amount of maintenance and down time experienced by these machines a third would allow the facility to operate more efficiently, more effectively, and keep the brush and limbs pile down. The walking trailer will allow for mulch to be moved as needed for more space on the site, by transporting mulch to other city facilities or other storage locations when the facility has excess mulch.

Project Details

SOLID WASTE

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Landfill Development – Land Purchase

Project Type: Land Purchase

Start Date: Ongoing

Est. Completion Date: Ongoing

Description: Purchase additional land near or adjacent to current city property designated for future landfill development to provide capacity for refuse disposal for citizens and businesses.

Project Details

SOLID WASTE

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Kersey Valley Phase I-IV Post Closure Reserve

Project Type: Landfill Development

Start Date: January 20, 2017

Est. Completion Date: Ongoing

Description: This project has been established to fund the ongoing expense associated with postclosure activities associated with the Kersey Valley Landfill. These expenses are estimated by the contracted engineering and geological services consultant and expected to be paid over a 30 year period. The activities include annual expenses for mowing, leachate management, groundwater/surface water monitoring, and revegetation.

Project Details

SOLID WASTE

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Relocation of Compactor - MRF

Project Type: Equipment/Machinery

Start Date: July 1, 2025

Est. Completion Date: June 30, 2026

Description: Relocation of the compactor that holds the residual at the end of the recycling process. Currently, the compactor is in the building. This project would connect the compactor with an additional long conveyor and then place it outside the facility. The relocation will free up space for more commodities and furniture market material. In addition, it will make the facility cleaner and more efficient.

Project Details

SOLID WASTE

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Ingleside Composting Facility (ICF) – Tub Grinder Replacement

Project Type: Equipment/Machinery

Start Date: July 1, 2026

Est. Completion Date: December 31, 2027

Description: Rreplacement of a 2009 Morbark 1300b tub grinder. This machine plays a crucial role in maintaining the cleanliness of the city and effectively managing yard waste debris. Its absence poses challenges in efficiently processing all the yard debris throughout the city within the desired timeframe. The parts for this machine are becoming more expensive compared to those for a newer machine, as they are less abundant and can be challenging to locate. Considering the age of the machine, it has surpassed its expected lifespan and is resulting in more time dedicated to repairs than actual usage.

Project Details

SOLID WASTE

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Landfill – Waste Shredder

Project Type: Equipment/Machinery

Start Date: July 1, 2026

Est. Completion Date: June 30, 2027

Description: The waste shredder will be setup to shred mattresses and tires down to a manageable size. This machine will play a critical role in preserving the extended life of the landfill. It will allow the city to lift its commercial mattress ban from 2018 which gives citizens and local manufactures other options for disposal.

Project Details

SOLID WASTE

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Kersey Valley Landfill Phase VI Expansion

Project Type: Landfill Development

Start Date: July 1, 2020

Est. Completion Date: June 30, 2029

Description: This project will connect the old landfill site (west of Kersey Valley Rd) to the new landfill site (east of Kersey Valley Rd), thus providing additional years of municipal solid waste disposal serving the city and its customers.

Project Details

SOLID WASTE

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Kersey Valley Landfill Transfer Station

Project Type: Building Construction

Start Date: July 1, 2024

Est. Completion Date: December 31, 2030

Description: Construction of a Transfer Station at the current landfill site. This project will lessen the traffic on the working face of the landfill. This will translate into less congestion with the possibility of accidents. Currently, the Kersey Valley Landfill is projected to be at full capacity in 2035. At that time, waste will have to be transferred to another location. The Transfer Station would be located at the current landfill site. The scale house and convenience center would still be utilized. Operating the station now will allow City of High Point collection vehicles to take their waste to the station versus entering the landfill.

Project Details

SOLID WASTE

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Environmental Services Administration Building

Project Type: Building Construction

Start Date: July 1, 2021

Est. Completion Date: December 31, 2029

Description: Construction of an administration building to provide offices, lockers, restrooms, and adequate storage to accommodate the growing needs of the division. The new facility would allow a more adequate administration area while providing sufficient break area and restroom facilities for the front-line staff. Additionally, much needed parking would result from this addition.

Project Details

SOLID WASTE

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Asphalt & Underlayment (Resurfacing) – Ingleside, Kersey Valley Landfill, Material Recycling Facility

Project Type: Improvements

Start Date: September 1, 2019

Est. Completion Date: September 30, 2026

Description: Asphalt pads and roadways are in need of major repairs. These facilities are utilized by heavy equipment and trucks daily. These heavier pieces of equipment create more stresses and failure on the asphalt. This project would repair the failing surfaces followed by a two inch asphalt overlay. The asphalt overlay will allow a safe transition into and out of facilities while reducing the potential for damaging vehicles and city machinery/equipment.

Project Details

STORMWATER CAPITAL PROJECTS

FY 2025 – 2029

S TORMWATER

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Routine Projects

Project Type: Stormwater

Start Date: Ongoing

Est. Completion Date: Ongoing

Description: To fund routine stormwater improvements authorized by the City Council as the need arises. This method was recommended by the Citizen's Task Force for stormwater improvements. Project will provide improvements to citizens who requested assistance for many years with flooding or erosion problems.

Project Details

STORMWATER

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Mill Avenue Drainage System Repairs

Project Type: Improvements

Start Date: July 1, 2024

Est. Completion Date: June 30, 2025

Description: The stormwater drainage system along Mill Avenue is currently in need of replacement due to multiple separated joints and fractures along the vitrified clay pipes. This proposed project would replace these sections of pipe with reinforced concrete along with the associated structures and inlets.

The replacement of the stormwater drainage system would ensure that there are no future issues such as a full scale failure collapse along the section of pipe and associated roadway. This would also ensure that there is proper conveyance provided during future storm events to prevent the street from flooding and keep motorists safe.

Project Details

STORMWATER

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: CCTV Trailer with Equipment Replacement

Project Type: Equipment/Machinery

Start Date: July 1, 2024

Est. Completion Date: December 31, 2024

Description: The current stormwater CCTV camera system is approaching the end of its life cycle. It has required multiple repairs this past year to maintain functionality and has negatively impacted the Stormwater Divisions ability to find and document stormwater issues.

CCTV Equipment is used to help diagnose stormwater issues and provide greater detail of our stormwater infrastructure. This equipment is used to respond to citizen complaints and provide details of failing stormwater infrastructure to determine repairs that may be needed. Stormwater infrastructure is checked with this equipment prior to resurfacing projects to prevent utility cuts in the future after new asphalt.

Project Details

STORMWATER

Proposed 2025-2029

Capital Improvement Program (CIP)

Project Title: Sweetbriar Road Drainage System Repairs

Project Type: Improvements

Start Date: July 1, 2025

Est. Completion Date: December 31, 2026

Description: The stormwater drainage system along Sweetbriar Rd. is currently in need of replacement due to multiple sections of corrugated pipe that is rusted along the bottom causing street flooding. This proposed project would replace these sections of pipe with reinforced concrete along with the associated structures and inlets.

The replacement of the stormwater drainage system would ensure that there are no future issues such as a full-scale failure collapse along the section of pipe(s) and associated roadway. This project would also ensure that there is proper conveyance provided during future storm events to prevent the street from flooding and keep motorists safe.

Project Details

STORMWATER

2025-2029 Capital Improvement Program (CIP)

Project Title: Rockford/Rotary/Farris

Project Type: Stormwater

Start Date: July 1, 2023

Est. Completion Date: June 30, 2026

Description: This project is part of a larger study that was performed in 2004. This work will reduce and mitigate stormwater issues in the Rockford/Rotary and Farris Drive basins.

Project Details

STORMWATER

Proposed 2025-2029

Improvement Program (CIP)

Project Title: Ray Street (R1, 2, 3a, b, c, d)/Hospital

Project Type: Stormwater

Start Date: July 1, 2017

Est. Completion Date: June 30, 2027

Description: This project is part of a larger study that was performed in 2004. This work will reduce and mitigate stormwater issues in the Ray Street basin.

Project Details

STORMWATER

Proposed 2025-2029 Capital Improvement Program (CIP)

Project Title: Hamilton Street (M2) – Central Business District NE Side

Project Type: Stormwater

Start Date: July 1, 2023

Est. Completion Date: December 31, 2026

Description: This project is part of a larger study that was performed in 2004. This work will reduce and mitigate stormwater issues in the Hamilton Street basin.

Project Details

STORMWATER

Capital Improvement Program (CIP)

Project Title: Jacobs Place (JP7)

Project Type: Stormwater

Start Date: September 1, 2020

Est. Completion Date: December 31, 2026

Description: The existing drainage system is undersized. The proposed drainage improvements will address frequent flooding that occurs along Wrenn Street, Main Street, and Russell Avenue. Surrounding buildings along Main Street and Wrenn Street flood. The proposed improvements will address floodingWrenn Street drainage system improvements.

Project Details

GLOSSARY OF FREQUENTLY USED

TERMS

-A-

Account Number - the accounting designation for revenue and expenditure line items.

Accrual Accounting - a basis of accounting in which revenues and expenses are recorded at the time they are incurred, instead of when cash is actually received or disbursed.

Activity - a level of budgeting, which identifies a particular program or service within a department. Contained within an activity budget may be one or more sub-activity budgets.

Adopted Budget - the official expenditure plan adopted by the City Council for a fiscal year.

Ad Valorem Taxes - commonly known as property taxes. For most governments, it is the single greatest revenue source. Taxes are levied at the stated tax rate for both real and personal property according to the valuation.

Appropriated Fund Balance - revenue appropriated from existing fund balance to help fund expenditures in a given fiscal year.

Appropriation - an authorization by the governing board to make expenditures and incur obligations for specific purposes.

Assessed Valuation - the total value established for real property and used as the basis for levying property taxes.

-B-

Balanced Budget - the situation that exists when total anticipated revenues are equal to total planned expenditures. The state of North Carolina requires a balanced budget.

Benchmarking - the identification of best-in-class performers; the comparison of local performance outputs and results with those of top performers; the analysis of practices that account for any performance gaps; and the development and implementation of strategies to adjust the gap in one’s favor.

Benefits - mandated employee benefits and other programs such as health insurance, which benefit the employee and their family.

Bond - a written promise to pay a specified sum of money at a specified date in the future together with periodic interest at a specific rate.

Bond Anticipation Note - short-term, interest-bearing notes issued by the City in anticipation of bonds to be issued at a later date. The notes are retired from proceeds of the bond issue to which they are related.

GLOSSARY OF FREQUENTLY USED

TERMS

Bond Referendum - an election in which voters pass or defeat a proposal by the City government to issue debt in the form of interest-bearing notes.

Budget - a comprehensive financial plan of operation for a specified period of time containing an estimate of proposed expenditures and the means of financing them. In the state of North Carolina, it is mandated that a balanced budget be produced, i.e. revenue equals expense.

Budget Calendar - the schedule for completion of the various tasks involved in the preparation, submission, and adoption of the fiscal year annual operating budget for the City.

Budget Message - a formal letter of transmittal contained in the proposed budget document prepared by the City Manager and addressed to the governing board which contains the City Manager's views and recommendations on the City's operation for the coming fiscal year.

Budget Ordinance - the legal document approved by the governing board that establishes the spending authority for the City.

-C-

Capital Asset - facilities and equipment that are tangible assets having a significant value ($5,000 or greater) and a useful life of three years or more.

Capital Improvement Program - a plan for capital expenditures to be incurred each year over a fixed period of years to meet capital needs arising from long-term work programs. Capital expenditures of significant amounts of money involving major construction and acquisition are usually included in the capital improvement program (CIP).

Capital Outlay - budgeted expenditures of at least $5,000 for tangible items with a useful life of at least three years.

Capital Project Fund - a fund used to account for expenditures for major construction and acquisition projects that are not accounted for in other funds and are anticipated to be completed in one year.

Capital Project Ordinance - authorizes a major capital expenditure and continues in effect for the life of the project. It is characteristic that the types of projects covered by a capital project ordinance span several years due to the scope of work being performed. The ordinance specifies the funding and line-item expenditures for the project.

Catalyst Project – a downtown development project identified in 2016 to produce 500 private sector jobs, 15-20 new restaurants and shops, 250 additional residential housing units and a centralized gathering space.

GLOSSARY OF FREQUENTLY USED

TERMS

Capital Reserve Fund - a fund established for the purpose of receiving transfers of money from other funds (usually enterprise funds) to build fund balance for a specific future outlay of capital.

Cash Equivalents - highly liquid investments with maturities of three months or less when purchased to be cash or cash equivalents, or demand deposits.

Central Services Fund - a fund used to account for goods and services provided by one department to other departments on a cost reimbursement basis, such as print shop services or computer replacement

Community Development Block Grant Fund - used to account for revenues and expenses derived from the Community Development Block Grant entitlements to the City.

Contingency - an appropriation by fund used at the City Council's discretion to provide budget for unanticipated expenditures.

Core City Plan - A plan for guiding the development, redevelopment and revitalization of neighborhoods as outlined in the Core City Plan developed in 2006 and adopted by the City Council on February 8, 2007. The public-private partnership Plan’s purpose is designed to define and improve the physical, economic and social fabric of the downtown and surrounding neighborhood, institutional, commercial, and industrial areas. The City contributes funding to the plan annually. The name was changed from Core City to “The City Project” in 2011.

-D-

Debt Service - Moneys required for payment of principal and interest and other associated expenses on outstanding bond debt.

Deferred Revenues - Revenues submitted to the City before the eligibility requirements are recorded and reported.

Department - a major operating budget area of the City, which includes overall management for an activity or group of related activities with possibly one or more sub-activities.

-E-

Effectiveness Measures - the level of satisfaction of the services being delivered or the extent to which pre-determined goals and objectives have been reached. Effectiveness indicators more accurately measure the quality-of-service output to know whether a program or service is accomplishing what was intended.

GLOSSARY OF FREQUENTLY USED

TERMS

Efficiency Measures - the units of service produced (output) per amount of resources expended (input). Indicates how well a government is performing the things it is doing. This measure is a good indicator of how reasonable service costs are - the ratio of quantity of service provided to the cost, in dollars or labor.

ElectriCities - a not-for-profit government service organization representing cities, towns, and universities that own electric distribution systems. Today, ElectriCities represents more than 90 members in North Carolina, South Carolina, and Virginia.

Encumbrance - an obligation in the form of a purchase order or a contract, which is chargeable to an appropriation and for which a part of the appropriation is reserved. It becomes an expenditure when paid.

Enterprise Fund - a fund established to account for the operation of facilities and services that are entirely or predominantly financed through user charges. The City's enterprise funds are Water, Sewer, Electric, Mass Transit, Parking, Solid Waste Facilities, and Stormwater.

Environmental Services Pick-up Fee (Availability Fee) – This is a revenue source for the Solid Waste Fund from the pickup of refuse from residential, commercial and industrial customers.

Equities - Assets less liabilities of a fund.

ERP – Enterprise Resource Planning - integrated financial and human resources solutions that help to streamline and improve public-sector business processes.

ERU – Equivalent Residential Units - a calculated methodology to determine the basis for determining the monthly stormwater utility fee to be charged to the customer. The ERU per customer is determined by dividing the total of square footage of impervious surface area on the customer’s property by the square footage of one ERU (2,588). The result is multiplied by the dollar amount established by City Council

Expenditure - the amount paid for goods delivered and services rendered.

-F-

Fiduciary Fund - a fund used to account for assets held by the City in a trustee or agent capacity for other agencies or organizations.

Fiscal Year - a twelve-month period of time to which the annual budget applies. The City of High Point's fiscal year is from July 1 thru June 30.

Fixed Asset - tangible property owned by the City having a monetary value of $5,000 or greater and a useful life of three years or more.

GLOSSARY OF FREQUENTLY USED

TERMS

Fringe Benefits - funds budgeted for the City’s contribution for employee benefits including retirement, health insurance, social security, and life insurance.

Fund - an independent accounting entity with a self-balancing set of accounts.

Fund Balance - the excess of a fund's assets and revenues over its liabilities, reserves, and expenditures at the close of the fiscal year.

Full Accrual - a method used in proprietary funds for recording the expenditure of funds in which revenues are recorded when they are earned, and expenses are recorded when a liability is incurred.

Full-Time Positions - authorized positions with the exception of law enforcement and fire employees budgeted at 2080 hours per year

-G-

GAAP - (Generally Accepted Accounting Principles) accounting principles that are commonly used in preparing financial statements and generally accepted by the readers of those statements. The source of GAAP for state and local governments is the Governmental Accounting Standards Board.

General Capital Projects Fund - used to account for major capital expenditures (acquisition and construction) other than those financed by enterprise funds. These projects usually require more than one year for completion.

General Fund - used to account for the ordinary operations of the City, which are financed through taxes, other general revenues, and contributions, transfers, and reimbursements from other funds. Unless there is a legal accounting requirement, all activities are accounted for in the General Fund.

General Obligation Bonds - debt issued by the City that is backed by its taxing authority.

Goal - a broad statement of purpose or intent to achieve a desired state of affairs. A goal describes a desired effect on the community.

Governmental Funds –are segregations of financial resources. Expendable assets are assigned to the various governmental funds and current liabilities are assigned to the fund from which they are to be paid. The differences between governmental fund assets and liabilities, the fund equity is referred to as “Fund Balance.”

-I-

GLOSSARY OF FREQUENTLY USED

TERMS

Infrastructure - the base or framework of a community that is necessary to support the orderly function of government and service delivery to communities. Examples include water and sewer (improvements to lines, treatment plants), streets, and stormwater projects.

Input Measures - the amount of resources expended or consumed in the delivery of services.

Interest on Investments - revenue earned from investment of City funds with a third party.

Interfund Transfers - transfers of money between accounting funds as authorized by the City Council.

Intergovernmental Revenue - revenue received by the City from federal, state, and county agencies.

Intragovernmental Revenue - revenues generated by a City department for services provided to other City departments.

-L-

Lease-Purchase Agreement - a method of financing the purchase of a fixed asset, which allows the City to spread the cost over a specified period of time.

LED Lighting – (light-emitting diode) LEDs are more efficient because LEDs produce more lumens per watt than other alternatives, and also because they can be tuned to the specific wavelengths. They can be used for traffic signals, light bulbs, lanterns, and streetlights.

LEED Certification – (Leadership in Energy and Environmental Design) provides independent, third-party verification that a building project is environmentally responsible, profitable and a healthy place to live. Green Building Rating System, developed by the U.S. Green Building Council (USGBC), provides a suite of standards for environmentally sustainable construction.

Licenses & Permits - revenue received by the City from individuals and corporations for the purpose of conducting business or performing certain activities.

Line Item - a unit of budgeted expense used to classify expenditures by item or category. A line item establishes the permissible level of expenditure for an item.

-M-

Miracle League - A non-profit organization in High Point called “The Miracle League of High Point” for the purpose of providing opportunities for children with disabilities to play Miracle League baseball on a specially designed field. The High Point field was funded by private donations, with the land and grading for the site provided by the City of High Point.

GLOSSARY OF FREQUENTLY USED

TERMS

Mission Statement - a clear statement of the purpose and goal(s) toward which a department directs their efforts. (The reason the department exists.)

Modified Accrual - a method for recording the receipt and expenditure of funds in which revenues are recorded when they become measurable, available, and expenditures are recorded when the liability is incurred.

-N-

Non-Departmental - expenditures for purposes that are not related to a specific department function. -O-

Objective - a specific target for achievement, which represents an interim step, or progress toward a goal within a specified time span and which are measurable.

Ombudsman - A government official who investigates citizens' complaints against the government or its functionaries.

Operating Budget - the City’s financial plan for its operation for the fiscal year that outlines the proposed expenditures and revenue estimates to finance the expenditures.

Operating Expenses - funds allocated for the day-to-day operation of the City’s services. These expenses exclude capital outlay.

Ordinance - a legislative enactment by the City Council. It has the full force of law within the City if it is not in conflict with any higher law.

Outcome Measures - the social, economic or cultural conditions that the program seeks to influence, and the actual results/impacts produced by the program or service.

Output/Workload/Activity Measures - the quantity of services provided.

-P-

Part-Time Positions - authorized positions with various work schedules of 1,750 hours per year or less.

Pay Go Funding - a method in which annual revenue appropriations are used for funding capital projects as opposed to the issuance of long-term debt. General Fund projects are usually funded by an appropriation from the General Fund consisting of primarily property tax revenues. Capital projects in proprietary funds are funded by the respective revenues in these funds.

GLOSSARY OF FREQUENTLY USED

TERMS

Performance Measure - the quantity or level of service provided. Indicator or criterion against which users can assess the successful achievement of a service or program.

Performance Measurement - the systematic method in which city departments develop and monitor objectives that assess the outcome and effectiveness of a delivered service or program. Provides the government a way of determining whether it is providing a quality service at a reasonable price. Must not be seen as a “score-keeping system”, but as a decision-making tool.

Performance Objectives - the means used to accomplish a mission. Clear targets for specific action. More detailed than the mission statement; have shorter time frames; states quantity when possible; measurable over time and reasonably achievable.

Personal Property - includes tangible property not permanently affixed to real property. Examples include vehicles, boats, trailers, and equipment.

Personnel Services - salaries, wages, and fringe benefits.

Property Tax - an annual tax levied by the City Council on the value of real property to fund General Fund expenditures. The amount of revenue derived from the tax is calculated by taking the tax value of the real property, dividing it by 100, multiplying it times the tax rate, and then times the collection percentage

Proprietary Funds – funds that are used to account for a government’s on-going organizations which are similar to those found in private businesses or private sector. These funds have their own set of revenue and expense accounts. Measurement focus is income, financial position and changes in financial position.

-R-

Real Property - land, buildings, and items permanently affixed to land or buildings.

Retained Earnings - an equity account reflecting the accumulated earnings of an enterprise fund or internal service fund.

Revaluation – defined as the re-appraisal or re-assessment of value. In the City of High Point budget document, “revaluations” describe the process county tax collectors use to update the values of taxable real property within the city limits as well as the county.

Revenue - income received by the City from various sources used to finance its operations.

Revenue Bonds - bonds whose principal and interest are payable exclusively from the earnings of an enterprise fund. Revenue bonds are payable from identified sources of revenue and do not

GLOSSARY OF FREQUENTLY USED

TERMS permit the bondholders to compel taxation or legislative appropriation of funds not pledged for payment of debt service.

Revenue Neutral Property Tax Rate – defined by North Carolina General Statues as the rate that is estimated to produce revenue for the next fiscal year to the revenue that would have been produced for the next fiscal year by the current property tax rate if no re-appraisal had occurred.

-S-

Solid Waste User Fee – The per month fee that customers pay for access of refuse to the landfill. This fee does not cover the actual pick-up of refuse.

Special Appropriations - accounts used for nonprofit organization’s funding, prior year workers’ compensation and unemployment claims, and for expenditures not routinely appropriated in operating budgets.

Special Grants Fund - a fund established to account for grant revenues received designated for expenditure on particular programs and projects. These programs and projects are usually nonrecurring in nature and of short duration. Revenues received are from federal, state, and local sources.

Sub-Activity - a level of budgeting, which identifies a specific area of work necessary for performing a budgeted activity.

-T-

Tax Base - the total assessed valuation of real property within the city limits.

Tax Levy - the total amount of revenue to be raised from the property tax levied by the City Council in the annual budget ordinance.

Tax Rate - the amount of tax per $100 of assessed valuation levied by the City Council.

TIP - Transportation Improvement Program for the N.C. State Department of Transportation.

Treasury Subsidies – Subsidies from the US Treasury will rebate a portion of the interest paid on taxable bonds as authorized by the American Recovery and Reinvestment Act of 2009 (ARRA).

-U-

User Charges - the payment of a fee for receipt of a service provided by the City.

GLOSSARY OF FREQUENTLY USED TERMS

Valuation - the tax value of real property as determined by the Guilford County tax assessors every eight years. The property valuation is multiplied by the tax rate per $100 of valuation to arrive at the tax bill for a particular piece of taxable property.

- W -

Workforce Program - is a separate but supported strategic plan to implement recommended development strategies to assist the community’s workforce as they compete for high-skilled jobs in the region. The idea to develop communication and training materials to support community education by a combination of government, business, education, and community leaders working together to assist community residents’ short-term actions to improve workforce education, training, and preparedness.

ACCOUNTING UNIT DIRECTORY

Budgets, both revenue and expense are identified by a six-digit accounting unit number. The first three digits identify the fund for the accounting unit. Each division within a department is assigned an accounting unit.

ACCOUNTING UNIT DIRECTORY

Accounting Unit Department Division

General Fund (cont’d)

101316 Police Police Patrol 101317 Police Police Support Services 101318 Police Police Community Engagement

101351 Fire Administration 101352 Fire Suppression

101411 Parks and Recreation Administration

101421 Parks and Recreation Recreation Programs 101431 Parks and Recreation Special Facilities 101441 Parks and Recreation Parks

101451 Library Administration

101452 Library Technical Services

101453 Library Building Maintenance

101454 Library Children Services

101455 Library Research Services

101456 Library Library Information Services

101457 Library Reader's Services

101458 Library Heritage Resource Center

101459 Library Lending Services 101465 Library Historical Museum

101471 Theatre Administration 101472 Theatre Box Office

101473 Theatre Technical Services 101474 Theatre Building Maintenance

101491 Special Appropriations-General Special Appropriations-General

101511 Economic Development Economic Development

101521 Planning & Development Planning

101534 Community Development Community Development and Housing

101535 Community Development Tax Foreclosure & Properties

101537 Community Development Local Code Enforcement

101562 Inspections Services Building Inspections

101563 Inspections Services Development Services

ACCOUNTING UNIT DIRECTORY

Accounting Unit Department

General

101711

Economic

ACCOUNTING UNIT DIRECTORY

Accounting Unit Department

Community Development

302530

Showroom & Occupancy Tax Fund 305101

General

General

ACCOUNTING UNIT DIRECTORY

Accounting Unit Department Division

Water-Sewer Fund (cont’d)

621754 Water-Sewer Operating Mains

621756 Water-Sewer Operating Laboratory Services

621757 Water-Sewer Operating Maintenance Services

621758 Water-Sewer Operating Frank L. Ward Plant

621759 Water-Sewer Operating W/S-Residuals Management

Electric Fund

631251 Customer Service Operating Administration

Mass Transit Fund

641621

ACCOUNTING UNIT DIRECTORY

Accounting

651631

ACRONYM DIRECTORY

ACFR Annual Comprehensive Financial Report is a set of U.S. government financial statements comprising the financial report of a government entity that complies with the accounting requirements promulgated by the Governmental Accounting Standards board.

APPA

ARPA American Public Power is a service organization for more than 2,000 communityowned electric utilities.

American Rescue Plan Act

BABS Build America Bonds are bonds that receive a 35% rebate on each interest payment.

BAN Bond Anticipation Notes are smaller short-term bonds that are issued by corporations and governments wishing to generate funds for upcoming projects.

BET Benefits Education Team is an employee-led group that studies and offers suggestions to guide our employee group health and related insurance program through difficult and ever changing and challenging times. The BET has concentrated on employee and retiree wellness program plan cost-containment, and cost-sharing strategies directed to limit future health insurance rate increases and shift costs to those actually using the benefits.

CAP or CPO Capital Project Ordinance is an ordinance that can be multi-year covering the unique needs of capital project budgeting.

CD Community Development is an office with the City of High Point.

CDBG Community Development Block Grant funds are specific funding from the Department of Housing and Urban Development that allow for implementation of a wide range of projects and programs dealing with neighborhood improvements and city services.

CHP or COHP City of High Point.

CIP Capital Improvement Plan is a short-range plan which identifies capital projects and equipment purchases, provides a planning schedule, and identifies options for financing the plan.

CVB Convention and Visitors Bureau--non-profit organization that recruits visitors, conventions etc. to the city.

(NC)DENR North Carolina Department of Environment and Natural Resources is the lead stewardship agency for the preservation and protection of North Carolina's natural resources.

(NC)DOT North Carolina Department of Transportation is the North Carolina agency which oversees transportation within the state.

(US)DOL United States Department of Labor is charged with preparing the American workforce for new and better jobs and ensuring the adequacy of American's workplaces.

(US)DOT United States Department of Transportation is a federal agency that oversees federal highway, air, railroad, and maritime functions.

DWI Driving While Impaired is a driving offense of driving drunk or drugged.

ACRONYM DIRECTORY

(HP)EDC High Point Economic Development Corporation is a public-private organization which works to retain existing business and industry in High Point, to assist local companies in expanding and to attract new business to High Point.

EEOC Equal Employment Opportunity Commission is the federal agency that provides oversight and coordination of all federal equal employment opportunity regulations, practices, and policies.

EMT

ERP

Emergency Medical Technician Training certification for public safety personnel.

Enterprise Resource Planning (reference to glossary for definition).

FEMA The Federal Emergency Management Agency which assists in federal disasters.

FT

FTE

Full-time classification of employment.

Full-Time Equivalent refers to the number of employees directly involved in providing the service as approved in the annual operating budget. The number can include full- and part-time workers. For High Point, an FTE equates to 2,080 hours of work per year.

FY Fiscal Year is the budget year from July 1 of one year to June 30th of the next year.

GASB The Governmental Accounting Standards Board is the source of generally accepted accounting principles used by state and local governments.

GED General Educational Development tests are a group of five subject tests which certify that the test taker has high school level academic skills.

GFOA Government Finance Officers Association is a professional association of approximately 17,500 state, provincial and local government finance officers in the United States and Canada.

GIS Geographic Information System is system designed to capture, store, analyze, manage, and present all types of geographic data.

GO General Obligation are bonds which are sold by governments to support capital projects.

GTCC Guilford Technical Community College is a two-year accredited community college. GTCC offers certificates, one-year and two-year career-related programs, a twoyear college transfer program, personal enrichment courses, a variety of adult literacy opportunities and training for business and industry. It opened in 1958 and was created as a training center designed to prepare people for jobs created by the rapid manufacturing growth of the early 1950s. Its purpose has remained basically unchanged: to give the people of Guilford County the training and education they need to compete in the job market.

HP High Point.

HPFD High Point Fire Department.

HPPD High Point Police Department.

HQ Headquarters main administrative location for a corporation.

HR Human Resources is the department within the City that oversees employees.

ACRONYM DIRECTORY

IIMC International Association of Municipal Clerks is a professional nonprofit association that promotes continuing education and certification through university and collegebased institutes and providing networking solutions, services, and benefits to its members worldwide.

IT Information Technology is the department that focuses on processing, storage, and dissemination of vocal, pictorial textual and numerical information by computing and telecommunications.

KWH Kilowatt hour is a unit of energy equal to 1,000-watt hours.

LEED Leadership in Energy and Environmental Design is a certification that provides independent, third-party verification that a building project is environmentally responsible, profitable and a healthy place to live. Green Building Rating System, developed by the U.S. Green Building Council (USGBC), provides a suite of standards for environmentally sustainable construction.

LED

LIGHTING

Light emitting diode lighting is more efficient because LEDs produce more lumens per watt than other alternatives, and also because they can be turned to the specific wavelengths. They can be used for traffic signals, light bulbs, lanterns, and streetlights to name a few.

LMS Learning Management System is the city's online training system for employees.

MGD Million gallons per day is a unit of flow measurement.

MLK Martin Luther King, Jr. was an American clergyman, activist, and prominent leader in the African American civil rights movement.

MMC Master Municipal Clerk is a professional designation granted by IIMC that is an advanced continuing education program that prepares participants to perform complex municipal duties.

MOC Maintenance Operation Center facilities for the City of High Point.

MRF Material Recovery Facility is the facility in the City where recyclable materials are taken to be sorted and sold.

MSA Metropolitan Statistical Area is a geographical region with a relatively high population density at its core and close economic ties throughout the area.

MWh Megawatt hours are a unit of energy equal to 1,000 kilowatt hours.

NGO Non-governmental organization is a legally constituted organization created by natural or legal persons that operates independently from any government.

NFPA National Fire Protection Agency provides support, education, and publications to fire personnel throughout the United States.

NPDES National Pollutant Discharge Elimination System is a permit program, authorized by the Clean Water Act, which controls water pollution by regulating point sources that discharge pollutants into U.S. waters.

OSHA The Office of Safety and Health Administration is the main federal agency charged with the enforcement of safety and health legislation.

ACRONYM DIRECTORY

PM

Preventive Maintenance is work done on fleet vehicles to prevent unexpected repairs.

PT Part-time classification of employment.

PTRWA Piedmont Triad Regional Water Authority is an authority that was formed in 1986 by the cities of High Point, Archdale, Greensboro, and Randleman for the purpose of developing plans for the Randleman Lake water supply.

ROW Right of Way.

RZEDBS Recovery Zone Economic Development Bonds are a special subset of these authorized bonds and issued only in the Water and Sewer Fund receive a 45% rebate on each interest payment.

S&P Standard and Poor’s-bond rating agency.

SCBA Self-contained Breathing Apparatus firefighters use to breathe when fighting fires.

TIA Traffic Import Analysis is the term to describe studies often required by governments to provide statistical information to determine the need for street and highway improvements to serve a public street network.

TIP Transportation Improvement Program - a multi-year schedule for all transportation projects.

TRC Technical Review Committee is a City of High Point committee administered by the Planning and Development Department for the purpose of providing City departments and private agencies and developers an organized review of development plans as well as to provide internal information to City departments in order to coordinate efforts and services required by any new development.

WRC The Watershed Review Committee is an internal oversight committee consisting of representatives from three City departments for the purpose of reviewing watershed plans submitted through the Technical Review Committee. The committee ensures plans are following the City Ordinance for stormwater runoff, retention/detention.