ORGANIZATIONAL CHART
Report of Independent Auditor
To the Honorable Mayor and Members of City Council City of High Point, North Carolina High Point, North Carolina
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City of High Point, North Carolina (the “City”), as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2024, and the changes in financial position and, where applicable, cash flows thereof and the budgetary comparison for the General Fund for the year then ended in accordance with accounting principles generally accepted in the United States of America
We did not audit the financial statements of Forward High Point (“FHP”), a blended component unit, which represents .52%, .23%, and 0.88% of the assets, net position, and revenues, respectively, of the City’s governmental activities and 7.25%, 2.69%, and 4.02% of the assets, fund balance, and revenues, respectively, of the City’s aggregate remaining funds as of June 30, 2024, and the respective changes in financial position, and where applicable, cash flows thereof for the year then ended. We also did not audit the financial statements of the City of High Point ABC Board (the “Board”) which represents 100% of assets, revenues, and net position of the City’s aggregate discretely presented component unit, as described in our report on the City’s financial statements as of June 30, 2024, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended. Those financial statements were audited by other auditors whose reports have been furnished to us, and our opinion, insofar as it relates to the amounts included for FHP and the Board, is based solely on the reports of other auditors.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America, the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for 12 months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and budgetary comparison information be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The combining and individual nonmajor fund financial statements, as listed in the table of contents, and Schedule of Expenditures of Federal and State Awards, as required by Title 2 of U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance); and the State Single Audit Implementation Act, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying
accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole.
We also have previously audited, in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards, the financial statements of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City as of and for the year ended June 30, 2023 (none of which is presented herein), and we expressed unmodified opinions on those basic financial statements. Those audits were conducted for purposes of forming an opinion on the basic financial statements as a whole. The accompanying combining and individual fund financial statements and schedules are presented for purposes of additional analysis and is not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the 2023 basic financial statements. The information has been subjected to the auditing procedures applied in the audit of those financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards. In our opinion, the accompanying combining and individual fund financial statements and Schedule of Expenditures of Federal and State Awards are fairly stated in all material respects in relation to the financial statements from which it has been derived.
Other Information
Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated November 26, 2024, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.
Charlotte, North Carolina November 26, 2024
MANAGEMENT’SDISCUSSIONANDANALYSIS
Our discussion and analysis of City of High Point’s financial performance provides an overview of the City’s financial activities for the fiscal year ended June 30, 2024. Please read it in conjunction with the transmittalletteronpageiandtheCity’sfinancialstatements,whichbeginonpage17.
FINANCIALHIGHLIGHTS
TheCitycontinuestoexperiencenumerouspositiveresultsinthisyear’soperations. TheCitysawincreases onceagainduringthefiscalyear. TheCityisfinanciallysoundasisevidencedinourresultsofoperations forthefiscalyearendedJune30,2024.
TheassetsanddeferredoutflowsofresourcesfortheCityofHighPointexceededitsliabilitiesand deferredinflowsofresourcesatthecloseofthefiscalyearby$736.3million.Thenetpositionfor governmental activities increased to $224.9 million, and business-type net position improved to $511.4million.
As of the close of the current fiscal year, the City of High Point’s governmental funds reported combinedendingfund balances of $78.7 million, adecrease of approximately$11.5 million from the prior year, primarily due to an increase in capital expenditures, some of which will be reimbursed by a future bond issuance. Approximately 35.3% of this total amount, or more than $27.8 million, is available for spending at the government’s discretion in the General Fund. This amountrepresentsapproximately 17.6%oftotalbudgetedgeneralfundexpendituresandtransfers outforthefiscalyearcompleted.
TheCity’scovetedgeneralobligationbondratingremainsastalwartbenchmarktotheCity’sfiscal health. A stable and slowly expanding economic engine, strong financial management and fiscal discipline have resulted in strong and consistent credit ratings. The City’s rating of AAA from Standard&Poor’saswellasthesecondhighestpossibleratingsofAa1fromMoody’sandofAA+ fromFitchwerereaffirmedinMay2022.
USINGTHISANNUALREPORT
This annual report consists of a series of financial statements. The Statement of Net Position and the Statement of Activities (on pages 17–19) provide information about the activities of the City as a whole and present a longer-term view of the City’s finances. Fund financial statements start on page 20. For governmentalactivities,thesestatementstellhowtheseserviceswerefinancedintheshorttermaswellas whatremainsforfuturespending.FundfinancialstatementsalsoreporttheCity’soperationsinmoredetail thanthegovernment-widestatementsbyprovidinginformationabouttheCity’smostsignificantfunds.
Reporting the City as a Whole
Our analysis of the City as an entity begins on page 17. One of the most important questions asked about the City’s finances is, “Is the City as a whole better or worse as a result of the year’s activities?” The Statement of Net Position and the Statement of Activities report information about the City in its entirety and about its activities in a way that helps answer this question. These statements include all assets, liabilities,anddeferredinflows andoutflowsusingtheaccrualbasisof accounting,whichis similartothe accounting used by most private-sector companies. All of the current year’s revenues and expenses are takenintoaccountregardlessofwhencashisreceivedorpaid.
ThesetwostatementsreporttheCity’snetfinancialpositionandchangesinthem.Readersareencouraged tothinkoftheCity’snetposition—thedifferencebetweenassets,deferredoutflowsofresources,liabilities, anddeferredinflowsofresources—asonewaytomeasuretheCity’sfinancialhealth,orfinancialposition. Overtime,increasesordecreasesintheCity’snetpositionareoneindicatorofwhetheritsfinancialhealth
is improving or deteriorating. The reader must also consider other nonfinancial factors, however, such as changes in the City’s property tax base and the condition of the City’s infrastructure, to assess the overall healthoftheCity.
In the Statement of Net Position and the Statement of Activities, we divide the City into three kinds of activities:
Governmentalactivities—MostoftheCity’sbasicservicesarereportedhere,includingthegeneral administration,police, fire,public services, and parksand recreation departments.Propertytaxes, salesandoccupancytaxes,intergovernmentalrevenues,alongwithvariousFederalandStategrants finance most of these activities. The City’s two blended component units are reported as part of governmentalactivities(seeNotesoftheFinancialStatements,1.A.).
Business-type activities—The City charges a fee to customers to help it cover all or most of the costofcertainservicesitprovides.TheCity’sutilitysystems(waterandsewer,electric,solidwaste andstormwater)andotherbusiness-typeactivities(masstransitandparkingfacilities)arereported here.
Component units—The City includes a separate legal entity in its report—the High Point ABC Board.Althoughlegallyseparate,this“componentunit”isimportantbecausetheCityappointsthe board. The Cityis not financially accountable forthem,eventhough netprofitsaredistributedto theCity.
Reporting the City’s Most Significant Funds
Ourreportingof theCity’smajorfundsbegins onpage20.The fundfinancialstatements provide detailed information about the most significant funds—not the City as a whole. Some funds are required to be established by State law and by bond covenants. The City’s two types of funds—governmental and proprietary—usedifferentmethodsofaccounting.
Governmental funds—Most of the City’s basic services are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at year-end that are available for spending.Thesefundsarereportedusinganaccountingmethodcalledmodifiedaccrualaccounting,which measures cash and all other financial assets that can be readily converted to cash.The governmental fund statements provide a detailed short-term view of the City’s general government operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance the City’s programs. We describe the relationship(ordifferences)betweengovernmentalactivities(reportedintheStatementofNetPositionand the Statement of Activities) and governmental funds in reconciliation at the bottom of the fund financial statements.
Proprietary funds—When the City charges customers for the services it provides—whether to outside customers or to other units of the City—these services are generally reported in proprietary funds. Proprietary funds are reported in the same way that all activities are reported in the Statement of Net Position and the Statement of Activities. In fact, the City’s enterprise funds (a component of proprietary funds)arethesameasthebusiness-typeactivitieswereportinthegovernment-widestatementsbutprovide more detail and additional information, such as cash flows, for proprietary funds. We use internal service funds (the other component of proprietary funds) to report activities that provide supplies and services to the City’s other programs and activities—such as the City’s fleet services operations and health and wellnessprograms.
Other Information
In additiontothe basic financial statements and accompanying notes,this reportincludes certain required supplementary information concerning the City’s progress in funding its obligation to provide postemployment benefits through the Healthcare Benefit Plan, Law Enforcement Officers Special Separation Allowance, the Firefighters’ and Rescue Squad Workers Pension Plan and the City’s participation in the Local Government Employee’s Retirement System. Required supplementary information can be found beginning on page 83 of this report. The purpose of the remaining exhibits is to provide the information neededforfinancialreportingandaccountingofthosepost-employmentbenefitplans.
THECITYASAWHOLEANDGOVERNMENT–WIDEFINANCIALANALYSIS
The government-wide financial statements for the fiscal year ended June 30, 2024 are presented in accordance with GASB Statement (GASBS) No. 34, Basic Financial Statements—and Management’s DiscussionandAnalysis—forStateandLocalGovernments.
TheCity’s combinednet positionincreasedby$35.5million(5.1%)thisyeartomore than$736.3million fromapproximately $700.7million. The positivetrends forthelast tenfiscal years havecombinedfor an overallincreaseofnearly$187.7million(34.3%)fromFY2014’stotalof$548.0million. Theseresultsare resounding proof and testament to City Council’s fiscal policies, priority-based budgeting, and prudent fiscalmanagementduringtheprolongedeconomicrecoverythattheCityispositioningitselfasa stronger and leaner unit of local government. Our analysis below focuses on the net financial position (Table 1), andchangesinnetposition(Table2)oftheCity’sgovernmentalandbusiness-typeactivities. Management’s Discussion and Analysis
Summary Detail
Net Position
Total net position for the City increased from approximately $700.7 million to approximately $736.3 million during FY 2023-2024. As shown below, assets and deferred outflows of resources of the City exceededliabilitiesand deferredinflowsofresourcesbymorethan$736.3million onJune 30, 2024. Net position for governmental activities increased by $13.7 million as compared to the prior fiscal year primarily due to growth in intergovernmental revenues, investment income, and developer contributions. The City’s business-type activities were responsible for $21.8 million of the increase when compared to last fiscal year, primarily due to continued growth in charges for services, wholesale power expense reductionandgrowthininvestmentincome.
202420232024202320242023
Assets
Currentandotherassets114,122$116,414$290,434$288,701$404,556$405,115 $ CapitalAssets(net)314,399288,622450,249436,064764,648724,686 Totalassets428,521405,036740,683724,7651,169,2041,129,801
DeferredOutflows
DeferredOutflowsofResources36,24335,80512,12011,47348,36347,278
Liabilities
Liabilitiesandpayables23,89516,03021,64218,53845,53734,568 Long-termliabilities204,190200,238213,795221,757417,985421,995 Totalliabilities228,085216,268235,437240,295463,522456,563
DeferredInflows
DeferredInflowsofResources11,75213,3936,0116,38217,76319,775
NetPosition
Netinvestmentincapitalassets206,459183,285277,298263,500483,757446,785 Restricted56,85659,49784,14392,741140,999152,238 Unrestricted(38,388)(31,602)149,914133,320111,526101,718
Totalnetposition224,927$211,180$511,355$489,561$736,282$700,741 $
A large portion of the City’s net position (65.7%) at June 30, 2024, represents net investment in capital assets,whichareusedtoprovideservicestocitizens. Netinvestmentincapitalassetsisreportednetofthe outstandingrelateddebt;however,resourcestorepaythatdebtmustbeprovidedinthefuturefromcurrent revenues. Restrictednetposition,18.6%oftheCity’snetposition,representsresourcesthataresubjectto externalrestrictions,suchasbond-relatedcovenants,stabilizationbystatestatute,andcapitalprojectfunds. Unrestrictednetpositionincreasedfrom$101.7millioninFY23to$115.3millioninFY24.
The City has used and will continue to use the unrestricted net position in its business-type activities to financethecontinuingoperationsoftheenterpriseoperationsoftheCity(WaterandSewer,Electric,Mass Transit,Parking,SolidWaste,andStormWater),especiallytheirrelatedcapitalinvestments. Unrestricted netpositioninthegovernmentalactivities—thepartofnetpositionthatcanbe usedtofinance day-to-day operations without constraints established by debt covenants, enabling legislation, or other legal requirements—increased in the deficit to ($34.6 million) as compared to ($31.6 million) in the prior year onthefull-accrualentity-widebasisofpresentation. TheCityhasseenitshealthynetunrestrictedposition fall the last several years as the Governmental Accounting Standards Board gives more attention to recognizing the long-term potential impact on the City’s sponsored post-employment benefits (OPEB) as well as the City’s participation in the State’s sponsored and controlled Local Government Employees Retirement System (LGERS) and the Law Enforcement Officers’ Special Separation Allowance (LEOSSA). Consequently, swings in actuarial assumptions and investment returns for those plans can
producelargechangesintheCity’scumulativefinancialposition.Webelievecitizensandbondholderswill find a better measure of City’s financial health by looking at governmental fund balances without those accrualchangesrequiredforthosepost-employmentbenefits.TheCity’sintentionistocontinuetousethe governmental unrestricted net position to address future capital budget needs and to provide a resource towardspotentialdeficitswhichmayarisefromunfundedgovernmentalmandatesandlegislativechanges. Thesebalancesarealsousedasatooltoleveragetheneedforfuturetaxincreasesasthedemandforcurrent andenhancedservicescontinuestoriseastheCityaddressestheprioritiesofitscitizens.
Revenues and Expenses
TheCity’stotalrevenues(excludingtransfers)increased5.7%($23.3million)fromthepreviousfiscalyear. ChargesforservicesremainedthelargestprogramrevenuetypeandsawanincreaseoverFY23,primarily due to higher water and sewer, stormwater, and landfill rates. Operating grants and contribution revenue decreased due to lower federal revenues and capital contributions increased significantly due to higher developercontributions.InvestmentincomecontinueditsgrowthtrendinFY24duetohigherratesoffered inthemarketaswellasourmoneymarketaccounts.
The total cost of all programs and services increased 6.2 percent ($23.2 million) when compared to last fiscalyear. TheCitycontinuestoseemoderateincreaseddemandforservicesandtheresultingcosttoCity operations in continued response to the City Council’s leadership to reduce the governmental burden on ourcitizensandratepayers.Asinthelasttwoyears,increaseswerefocusedonprogramsforidentifiedareas oflivability,transparency,accountabilityandinfrastructure.Resultsofoperationsshowthatpublicsafety, publicservices,generalgovernmentandcultureandrecreationdisplaymoderateincreasesandaccountfor most of the governmental programs increases when compared to last fiscal year, in total governmental expenses increased by nearly $17 million, primarily due to increased personnel, equipment and capital expenditures,includingasubstantialpropertyacquisition. Business-typeexpensesincreasedbyabout$6.2 million.Increaseswereprimarilyinwaterandsewerwherewehaveseenincreasedpersonnelcostsaswell as significant regulatory study costs. Purchases of electric power expenses decreased slightly by about $2 million or 2.5% as compared to the prior year. We expect continued decreases in FY25 due to a sale of excesscapacitybytheNorthCarolinaMunicipalPowerAgency1.
202420232024202320242023
CityRevenues
Programrevenue:
Chargesforservices35,041$33,461$211,840$206,219$246,881$239,680 $ Operatinggrantsandcontributions16,90527,61280376917,70828,381 Capitalgrantsandcontributions12,5626,2072,7981,32115,3607,528
Generalrevenue:
Propertytaxes84,08780,638--84,08780,638 Occupancyandotherlocaltaxes3,4123,309--3,4123,309 Revenuesandcontributionsnotrestrictedto specificprograms45,70840,921--45,70840,921 Other6,1012,83711,9924,61718,0937,454 TotalCityrevenues203,816194,985227,433212,926431,249407,911
CityExpenses
GeneralGovernment34,16826,861--34,16826,861 Publicsafety78,71076,962--78,71076,962 PublicandEnvironmentalServices20,82616,913--20,82616,913 PlanningandCommunityDevelopment18,64919,059--18,64919,059 CulturalandRecreation35,11330,619--35,11330,619 Interestexpenseandrelateddebtservice3,9354,000--3,9354,000 WaterandSewer--63,91758,35163,91758,351 Electric--112,188112,755112,188112,755 MassTransit--5,9715,6955,9715,695 Parking--530456530456 SolidWaste--16,34616,46716,34616,467 StormWater--5,3554,3985,3554,398 TotalCityexpenses191,401174,414204,307198,122395,708372,536 Increase(decrease)innetpositionbefore transfers12,41520,57123,12614,80435,54135,375 Transfersin(out)1,3321,069(1,332)(1,069)-Increase(decrease)innetposition13,74721,64021,79413,73535,54135,375 Netposition,beginning211,180189,540489,561475,826700,741665,366 Netposition,ending224,927$211,180$511,355$489,561$736,282$700,741 $
SeveralaspectsoftheCity’sfinancialoperationscontinueto positivelyinfluencethetotalgovernmentnet position.Thesearehighlightedasfollows:
The City’s continued high collection of property taxes billed increased to a tax collection rate of 99.4%.
The net position for business-type operations increased this year by $21.8 million as the City increasedratesfor water and sewer,stormwater,andthe landfill availabilityfee,while there were moderateincreasesinexpenses. Therevenuesfromutilityoperationsarebeingutilizedtocontinue efforts to improve and replace the water and sewer, and electric system infrastructure and distribution system while holding the line on operating expenses. Additionally, the target level of unrestricted net position is being used as part of a strategic capital plan to provide long-term solutions for maintaining the capital investments for the Water and Sewer fund while ultimately moderating future required water and sewer rate increases. The City also created a strategy beginning FY2015-2016 to build additional net position in the electric fund to provide future resourcestomoderateexpectedelectricrateadjustmentsseveralyearsfromnow.
Governmental Activities
Property tax revenues increased $3.7 million compared to the prior year, primarily due to growth of the propertytaxbaseinGuilfordCounty. Currentrealandpersonalpropertytaxcollectionsduringfiscalyear endedJune30,2024,increasedslightlyto99.4%ofthecurrentlevy.
Total governmental expenses increased by $17 million as discussed above. Program revenues provided 33.4%ofthesupportforgovernmentalservices.
Table 3 presents the cost of each of the City’s programs—general government, public safety, public and environmentalservices,planning,communityandeconomicdevelopment,culturalandrecreation—aswell as each program’s net cost (total cost less revenues generated by the activities). The net cost shows the financialburdenthatwasplacedontheCity’staxpayersbyeachofthesefunctions.
GeneralGovernment33,175,169$12,834,558 $ PublicSafety79,230,58975,755,274 PublicandEnvironmentalServices20,865,071(3,995,334) Planning,Community&EconomicDevelopment18,701,71210,692,687 CulturalandRecreation35,494,09027,672,141 Interestonlong-termdebt3,934,7853,934,785 Total191,401,416$126,894,111 $
Ashighlightedearlier,chargesforservicesoftheCity’sbusiness-typeactivities(seeTable2)increasedby about $5.6 million. The increase in net position is primarily due to rate increase, cost containment and an increaseininvestmentincome.
FINANCIALANALYSISOFTHECITY’SFUNDS
Governmental Funds
The focus of the City’s governmental funds is to provide information on current inflows, outflows, and balances of usable resources. Such information is useful in assessing the City of High Point’s financing requirements.Specifically,fundbalancecanbeausefulmeasureofagovernment’snetresourcesavailable forspendingattheendofthefiscalyear.
As the City completed the year, its governmental funds (as presented in the balance sheet) reported a combinedfundbalanceof $78.7million,a $11.5milliondecreaseoverthe prior fiscal year,primarily due tocapitalexpenditures,includingalargepropertyacquisition.OftheGeneralFundfundbalancesreported, $31.7 million was available to finance future expenditures in the general fund, including $1.9 million committedformallybyCityCouncilforeconomicdevelopment,publicsafetyandmarketdevelopmentand approximately $1.2 million assigned for various purposes as explained in the Notes to the Financial Statements.
TheGeneralFund istheprimaryoperatingfundoftheCityofHigh Point. Attheendofthecurrentfiscal year,totalfundbalanceoftheGeneralFundwas$55.2million. TheCityCouncilhasdeterminedthrough formal policy that the City should maintain a minimum available fund balance (that is, total fund balance remaining after removing restrictions, commitments, and previous assignments) of 10% of the General Fund’s expenditures in the event the City had an unforeseen need or opportunity,in addition to providing for cash flowneeds. At June 30, 2024, total fund balance available for appropriation excluding restricted by state statute is 23.6% of the FY 2025 General Fund budget. The amount remaining after restrictions, commitments and assignments is approximately 19% of the FY 2025 General Fund budget (exclusive of amounts includedin the budget that are assigned and/or restricted for economic and market development, and expenditures budgeted to be financed with debt proceeds). The City Council may from time to time, appropriatefundbalancesthatwillreduceavailablefundbalancebelowthe10%policy.
TheFY2025AnnualBudgetappropriatedatotalof$1,000,000ofthereportedGeneralFund’sspendable, assignedfundbalancetofinanceeconomicdevelopmentincentivesinthenextfiscalyear,leavingabalance ofunassignedfundbalanceforfuturefiscalyearsof$27,821,391.
General Fund Budgetary Highlights
Over the course of the year, the City Council revised the City budget several times. Generally, budget amendments fall into one of two categories: 1) amendments made to adjust the estimates that are used to preparetheoriginalbudgetordinanceonceexactinformationisavailable;and2)increasesinappropriations that become necessary to maintain services. However, expenditures were held in check and the City was abletocomplywithitsbudgetaryrequirements.
GeneralFundRevenuesontheGovernmentalFundBasis
Increase Percent(Decrease)
RevenueSourcesActualAmountofTotalfrom2023
Propertytaxes..................................78,843,471$51.7%2,397,095 $
Occupancytaxes...............................3,412,1532.2%103,001
Intergovernmentalrevenues..............51,915,40434.1%5,085,127
Licensesandpermits.........................6,523,7224.3%(58,053)
Chargesforservices..........................6,590,7754.3%980,119
Interestoninvestments.....................3,952,0622.6%2,853,289
Miscellaneousrevenues.....................1,181,0060.8%338,122
$152,418,593100.0%11,698,700 $
The most significant component in General Fund revenues remains to be property taxes. Total revenue increasedbyabout$11.7millionfrom2023,primarilyduetoincreasedpropertycollections,salestax,and investment income revenue. The FY23-24 budget saw no change in the property tax rate of 61.75 cents. Growth in intergovernmental revenues is primarily the result of an additional month of sales tax receipts accruedinFY24toreflectremittancesmadetothestateforJune2024.
General fund revenues recognized a mix of positive and negative variances for the fiscal year with actual resultsofmorethan$8.9millioninexcessofthefinalbudget.Growthinsalestax(intergovernmental)and investment income exceeded budget by the largest margins, however all revenues exceeded budget estimates. Departmental fiscal control in operating expenditure savings and personnel provided favorable budget savings. The City originally expected to utilize $1 million in fund balance for fiscal year 20232024; however, the city’s exceptional fiscal control on spending and increased revenue resulted in an additionof$9milliontofundbalanceinfiscalyear2023-2024.
GeneralFundExpendituresontheGovernmentalFundBasis
Increase
Percent(Decrease)
FunctionsAmountofTotalfrom2023
GeneralGovernment...........................................17,106,324
$12.9%(827,502) $ PublicSafety......................................................66,911,19850.5%18,116,447 PublicServices....................................................11,928,4389.0%1,015,365
Planning,CommunityandEconomicDev................10,068,4047.6%181,255
CulturalandRecreation.......................................26,563,60920.0%1,771,648
$132,577,973100.0%20,257,213 $
The most significant changes in General Fund expenditures when compared to the previous fiscal year occurred in public safety. Public Safety expenditures increased primarily due to certain personnel expenditures realized in the American Rescue Plan Act fund in the prior year, reducing general fund expenditures. All other function areas saw increases as we return to normal operations post-Covid and experiencehigherpersonnelandbenefitcosts,aswellasinflation.
Other Governmental Funds
The General Capital Projects Fund continues to be shown as a major fund in the current fiscal year. This presentation is required for FY 2024, due to larger than normal construction expenses. Regardless of the fund’sstatusasamajorprojectfund,theCitypresentsitassucheveryyearprimarilyduetothecontinued level of expenditures anticipated in future years that will require presentation as major. The ARPA fund was presented as a major fund in the prior year however there was no activity in FY24 as it has been exhaustedofallresources.
CAPITALASSETANDDEBTADMINISTRATION
Capital Assets
At the end of fiscal year 2024, the City had approximately $764.6 million invested in a broad range of capitalassets,includingpoliceandfireequipment, buildings,parkfacilities,roads,bridges,andwaterand sewerlinesandelectricinfrastructure(SeeTable4below).Thisamountrepresentsanetincrease(including additions and deductions) of $40 million, or about 5.5%, over last year. Most of the additions during the fiscal year continue to come from the expenditure of previously issued general obligation and revenue bonds.AdditionalinformationontheCity’scapitalassetscanbefoundinNotestotheFinancialStatements (pages48-55).
CapitalAssets (InThousands)
Righttouseassets,netofamortization-Leases6,069$1,172$181$121$6,250$1,293 $ Righttouseassets,netofamortization-SBITAs1,6512,2399074662,5582,705 Landandlandimprovements40,68822,42714,74414,26855,43236,695 Intangibles4463316,3065,5806,7525,911 Constructioninprogress7,71322,78335,76251,82443,47574,607 Buildingsandrelatedimprovements185,366171,395113,967115,277299,333286,672 Equipment105,532100,31928,01829,078133,550129,397 Infrastructure597,715578,285702,353655,0621,300,0681,233,347 Accumulateddepreciation(630,781)(610,329)(451,989)(435,612)(1,082,770)(1,045,941)
The City’s FY 2024-2025 capital pay-as-you-go budget calls for spending another $49.2 million for infrastructure maintenance and capital projects as outlined below, principally for the utility system improvementsandinfrastructure.
Thesecapitalprojectsarebudgetedasfollows:
Debt
At year-end, the City had approximately $296.5 million in bonds and notes outstanding versus $310.2 millionlastyear—adecreaseof4.4%—asshowninTable5.
Table5
OutstandingDebt (InThousands)
GovernmentalActivitiesBusiness-typeActivitiesPrimaryGovernment
202420232024202320242023
Generalobligationbonds62,843$63,865$4,290$5,556$67,133$69,421 $ Limitedobligationbonds,includingpremium42,68945,211--42,68945,211 Revenuebonds--168,745178,085168,745178,085 Notes,installmentcontracts,leases,andSBITAs16,89816,7351,03771617,93517,451
Totaloutstandingdebt122,430$125,811$174,072$184,357$296,502$310,168 $
TheCity’sgeneralobligationbondratingcontinuestocarryhighandstableratingsfromthethreenational ratingagenciesatJune 30,2024. Standard & Poor’s ratesthe City’screditat AAA, the highestavailable. Moody’sandFitchratetheCity’screditatAa1andAA+,respectively.TheCity’sbondratingsareaclear indication of the sound financial management practices and solid financial condition of the City of High PointasaffirmedbytheirmostrecentreportsinMay2022. Thesehighfinancialcreditratingsareaprimary factorin keepinginterestcostslowontheCity’soutstandingdebt. TheStatelimitsthe amount ofgeneral
obligation debt that cities can issue to 8 percent of the assessed value of all taxable property within the City’s corporate limits. The City’s outstanding general obligation debt is significantly below this $1.078 billionstate-imposedlimit.
Other obligations include accrued vacation and stipend pay, other post-employment benefits, pension liabilities for LGERS and LEOSSA, and closure/post-closure liabilities. More detailed information about theCity’slong-termliabilitiesispresentedinthenotestothefinancialstatements(pages68-79).
ECONOMICFACTORSANDNEXTYEAR’SBUDGETSANDRATES
TheCity’selectedandappointedofficialsconsideredmanyfactorswhensettingtheFY2024-2025budget and tax rates that support the governmental activities and fees that will be charged for the business-type activities. The property tax rate increased for FY 2024-2025 from 61.75 cents to 64.75 cents. Water and sewerconsumptiongrowthaswellaselectricloadgrowthwereprojectedtobelargelyflatforanotheryear. Thebudgetincludeda5%increaseforwaterandsewercustomers.
ThetotalGeneralFundbudgetappropriates$146.8million,whichisanincreaseof3.5%overtheadopted 2024budgetof $141.9million. Asdiscussedabove,propertytaxesincreasedtoarateof64.75cents.The City continues to review and evaluate strategic concepts employed during previous fiscal years. The City is utilizingthisstrategytomaintainthehighlevelofqualityandservicesthatourcitizens,businesses,and visitorsenjoyandareaccustomedtoreceiving.
The City’s business-type activitiesarealso expected to maintaintheir strength or improve in theadoption oftheAnnualBudgetforFY2024-2025:
Waterandsewerrateswereincreased5%,estimatedrevenuesandexpendituresareconsistentwith theCity’smultiyearfinancialstrategyforoperationsandcapitalfinancing.Thefundisexpectedto maintaincommitmentsforpay-as-you-goinfrastructureanddebtfundedprojects.
A revenue neutral rate adjustment was made to electric rates, increasing the baset charge whileloweringthekilowattperhourchargesforresidentialusers.
TherewerenorateincreasesforStormWater,SolidWaste,Electric,Transit,orParkingFacilities.
CONTACTINGTHECITY’SFINANCIALMANAGEMENT
This financial report is designed to provide ourcitizens, taxpayers,customers, and investorsand creditors withageneraloverviewoftheCity’sfinancesandtoshowtheCity’saccountabilityforthemoneyreceived. If you have questions about this report or need additional financial information, contact the Financial ServicesDepartment,CityofHighPoint,P.O.Box230,HighPoint,NC27261-0230.
CITYOF HIGHPOINT, NORTHCAROLINA STATEMENTOF
June 30, 2024
The notestobasicfinancialstatements areanintegralpartofthis statement.
CITY OF HIGH POINT, NORTH CAROLINA Statement of Activities
For the Year Ended June 30, 2024
The notes to basic financial statements are an integral part of this statement.
CITY OF HIGH POINT, NORTH CAROLINA Statement of Activities
For the Year Ended June 30, 2024
CITY OF HIGH POINT, NORTH CAROLINA
Balance Sheet
Major Funds
CITY OF HIGH POINT, NORTH CAROLINA
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the Year Ended June 30, 2024 Net change in fund balances - total governmental funds
Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds; Revenues received in FY 23-24 in the funds but recorded / accrued in FY 22-23 on the Statement of Activities
outlays are reported as increases in assets in the Statement of Net Position, but reported as an expenditure in the funds
Depreciation is recognized as an expense in the Statement of Activities, but is not reported in the funds (17,270,700)
Some expenses reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds; current year contributions to the pension and OPEB plans are not included in the Statement of Activities (5,574,968)
Proceeds from bond, federal loan, and installment purchase issuances is reported as increases in liabilities in the Statement of Activities, but reported as revenue in the funds (5,425,000)
Lease liabilities issued (5,254,425) IT subscription Agreement (935,322)
Net Gain (loss) on the disposal of capital assets is recorded in the Statement of Activities (excludes internal service fund gain/loss) (7,956)
Internal service funds are used by management to charge the costs of certain activities, such as facilities maintenance, fleet services and telecommunications to individual funds. The net revenue (expense) of the internal service funds is allocated and reported with governmental activities in the Statement of Activities. 1,374,434
Internal service funds current year profit/loss is allocated to the business-type funds in the Statement of Activities (574,494)
Change in net position of governmental activities 13,747,429 $
The notes to basic financial statements are an integral part of this statement.
General Fund
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2024
CITY OF HIGH POINT, NORTH CAROLINA
Statement
Proprietary
CITY OF HIGH POINT, NORTH CAROLINA
CITY OF HIGH POINT, NORTH CAROLINA
Statement
The notes to basic financial statements are an integral part of this statement.
CITY OF HIGH POINT, NORTH CAROLINA
Statement of Revenues, Expenses and Changes in Fund Net Position Proprietary Funds For the Year Ended June 30, 2024
CITY OF HIGH POINT, NORTH CAROLINA
Cash Flows From Operating Activities
Receipts from customers and users......................................................................................
$ Receipts from interfund services provided..........................................................................
Cash Flows From Non Capital Financing Activities
Transfers in..........................................................................................................................
Cash Flows From Capital and Related Financing Activities Principal payments on long-term
CITY OF HIGH POINT, NORTH CAROLINA
Statement
For the Year Ended June 30, 2024
Business-Type -
Funds
CITYOFHIGHPOINT,NORTHCAROLINA
NotestoFinancialStatements June30,2024
Note 1. Summary of Significant Accounting Policies
The accounting policies of the City of High Point, North Carolina, and its discretely presented component unit conform to accounting principles generally accepted in the United States of America (GAAP) as applicable to governments.
The City’s financialstatements are prepared inaccordance with GAAP.TheGovernmental Accounting Standards Board (GASB) is responsible for establishing GAAP for state and local governments through its pronouncements (StatementsandInterpretations).Thefollowingisasummaryofthemoresignificantaccountingpoliciesestablished inGAAPandusedbytheCity:
A. ReportingEntity
The City of High Point is located in the Piedmont area of the State and has a population of 118,370. The City is a municipal corporation which is governed by an elected mayor and an eight-member council and provides the following services as authorized by its charter: public safety (police and fire), highways and streets, sanitation, culture-recreation,publicimprovements,planningandzoning,andgeneraladministrativeservices. Asrequiredby GAAP, these financial statements present the City and its component units, which are legally separate entities. Criteriausedtoestablishfinancialaccountabilityincludeappointmentofavotingmajorityofthecomponentunit’s governing board and imposition of will or a financial benefit/burden relationship, fiscal dependency or other significantoperationalandfinancialrelationships.
1. BlendedComponentUnits
Blendedcomponentunits,although legally separateentitiesare,insubstance,partoftheCity’soperation. Each of these units has a June 30 year-end and the financial amounts from these units are combined with amountsoftheprimarygovernment.
ForwardHighPoint,Inc.(FHP)assiststheCityinpurchasingstrategicpropertyintheCityfordevelopment and other economic development projects in the downtown area. The mission of FHP is to transform downtownHighPointintoanextraordinaryandvibrantdestinationtolive,work,study,andplay.Citystaff andelectedofficialsserveontheboardandtheorganizationexiststoserveprimarilytheCityofHighPoint. Afinancialburdenexists,astheCityisrequiredtotransferfundstoFHPinanamountsufficienttosustain operations.TheassetsandliabilitiesarecombinedwithassetsandliabilitiesoftheSpecialRevenueFunds forfinancialstatementpurposes.FHPreportsundertheFinancialAccountingStandardsBoard(FASB).As such, certain revenue recognition, debt payments, and presentation features are different from GASB revenuerecognition,debtpayments,andpresentationfeatures.TheCitymodifiedcertainportionsofFHP’s financial information to include FHP in the Special Revenue Funds at the modified accrual level. No modifications have been made to FHP’s financial information at the City’s government-wide level. Complete financial statements and related information for FHP may be obtained from the entity’s administrativeofficesat164S.MainStreet,Suite606,HighPoint,NC27260.
The High Point Public Facilities Corporation (HPPFC) assists the City in financing, acquiring, and constructingpublicfacilities.ThesolepurposeoftheHPPFCistoprovideafundingsourceforCityassets, lease the assets to the City and to use the lease payments to repay the debt. The corporation has no other operations. The HPPFC’s three-member governing board is composed of City staff as directed in the corporation’s bylaws. A financial burden exists, as the City is required to transfer funds to the HPPFC in an amount sufficient to pay the scheduled debt service on HPPFC’s outstanding debt. The HPPFC’s cash
and debt are considered with assets of the Debt Service Fund and Governmental Liabilities for financial statementpurposes.
2. DiscretelyPresentedComponentUnit
CityofHighPointABCBoard
TheCityappointsthemembersoftheABCBoard’sgoverningboard.Inaddition,theABCBoardisrequiredby StatestatutetodistributeitssurplusestotheGeneralFundoftheCity,whichrepresentsafinancialbenefittothe City. Therefore, the ABC Board is reported as a discretely presented component unit in the city’s financial statements.CompletefinancialstatementsandrelatedinformationfortheABCBoardmaybeobtainedfromthe entity'sadministrativeofficesatCityofHighPointABCBoard,201W.FairfieldRoad,HighPoint,NC27263.
B.BasicFinancialStatements—Government-WideStatements
The City’s basic financial statements include both government-wide (reporting the City as a whole) and fund financial statements (reporting the City’s major funds). Both the government-wide and fund financial statements categorize primary activities as either governmental or business type. The City’s general administrative, public services,policeandfire,parksandrecreation,andlibraryareclassifiedasgovernmentalactivities.TheCity’swater, sewer,electric,masstransit,parking,solidwaste,andstormwaterservicesareclassifiedasbusiness-typeactivities.
Government-wide Statements: The statement of net position and the statement of activities display information about the primary government and its component unit. These statements include the financial activities of the overallgovernment. Eliminationshavebeenmadetominimizethedoublecountingofinternalactivities.Interfund servicesprovidedandusedarenoteliminatedintheprocessofconsolidation.Thesestatementsdistinguishbetween the governmental and business-type activities of the City. Governmental activities generally are financed through taxes, intergovernmental revenues, and other non-exchange transactions. Business-type activities are financed in wholeorinpartbyfeeschargedtoexternalparties.
Inthegovernment-wideStatementofNetPosition,boththegovernmentalandbusiness-typeactivitiescolumns(a) are presented on a consolidated basis by column, and (b) are reported on a full accrual, economic resource basis, which recognizes all long-term assets and receivables as well as long-term debt and obligations. The City’s net positionisreportedinthreeparts—netinvestmentincapitalassets;restricted;andunrestricted.
Thegovernment-wideStatementofActivitiesreportsboththegrossandnetcostofeachoftheCity’sfunctionsand business-type activities (police, fire, public works, etc.). The functions are also supported by general government revenues(property,salesandusetaxes,certainintergovernmentalrevenues,fines,permits,andcharges,etc.).The StatementofActivitiesreducesgrossexpenses(includingdepreciation)byrelatedprogramrevenues,operatingand capitalgrants.Programrevenuesmustbedirectlyassociatedwiththefunction(police,fire,publicservices,etc.)or a business-type activity.Operating grants include operating-specific anddiscretionary(either operatingor capital) grantswhilethecapitalgrantscolumnreflectscapital-specificgrants.
The net costs (by function or business-type activity) are normally covered by general revenue (property, sales, intergovernmentalrevenues,interestincome,etc.).
This government-wide focus is more on the sustainability of the City as an entity andthe change in the City’s net positionresultingfromthecurrentyear’sactivities.
C.BasicFinancialStatements—FundFinancialStatements
ThefinancialtransactionsoftheCityarereportedinindividualfundsinthefundfinancialstatements.Eachfundis accounted for by providing a separate set of self-balancing accounts that comprises its assets, liabilities, deferred outflows and inflows,reserves, fundbalance, revenues and expenditures/expenses. The variousfunds arereported bygenericclassificationwithinthefinancialstatements.
Fund Financial Statements: The fund financial statements provide information about the City’s funds. Separate statementsforeachfundcategory– governmental and proprietary –arepresented.TheCityhasnofiduciaryfunds toreport.Theemphasisoffundfinancialstatementsisonmajorgovernmentalandenterprisefunds,eachdisplayed in a separate column. All remaining governmental and enterprise fundsare aggregated andreportedasnon-major funds.
TheCityusesthefollowingfundtypes:
a. GovernmentalFunds:
Thefocusofthegovernmentalfunds’measurement(inthefundstatements)isupondeterminationoffinancial positionandchangesinfinancialposition(sources,uses,andbalancesoffinancialresources)ratherthanupon netincome.ThefollowingisadescriptionofthegovernmentalfundsoftheCity:
1. General Fund. The General Fund is the general operating fund of the City. It is used to account for all financialresourcesexceptthoserequiredtobeaccountedforinanotherfund.Theprimaryrevenuesources areadvaloremtaxes,State-sharedrevenues,andvariousothertaxesandlicenses.Theprimaryexpenditures areforpublicsafety(policeandfire),publicworks,andcultureandrecreation.
2. SpecialRevenueFund.TheSpecialRevenueFundsareusedtoaccountfortheproceedsofspecificrevenue sources (other than special assessments) that are legally restricted to expenditures for specified purposes. TheCitymaintainsthreespecialrevenuefunds:TheSpecialGrantsFund,TheOpioidSettlementFundand The Community Development Fund. The City’s blended component units are reported as part of the CommunityDevelopmentFund.
3. General Debt Service Fund. The General Debt Service Fund is used to account for the accumulation of fundsfortheperiodicpaymentofprincipalandinterestongenerallong-termdebt.
4. GeneralCapitalProjectsFund.TheGeneralCapitalProjectsFundisusedtoaccountforfinancialresources to be used for the acquisition or construction of major capital facilities (other than those financed by business-type/proprietaryfunds).
TheGeneralFundandtheGeneralCapitalProjectsFundarethemajorgovernmentalfunds.
b. ProprietaryFunds:
Thefocusofproprietaryfundmeasurementisupondeterminationofoperatingincome,changesinnetposition, financialposition,andcashflows.Thegenerallyacceptedaccountingprinciplesapplicablearethosesimilarto businessesintheprivatesector.ThefollowingisadescriptionoftheproprietaryfundsoftheCity:
Enterprise funds are required to be used to account for operations for which a fee is charged to external users for goods or services and the activity (a) is financed with debt that is solely secured by a pledge of the net revenues, (b) has third party requirements that the cost of providing services, including capital costs, be recoveredwithfeesandchargesor(c)establishesfeesandchargesbasedonapricingpolicydesignedtorecover similarcosts.
TheCitymaintainssixenterprisefunds: TheWaterandSewerFund,theElectricFund,theMassTransitFund, theParkingFacilitiesFund,theSolidWasteFacilitiesFundandtheStormWaterFund. Forfinancialreporting purposes, the Water & Sewer Capital Projects Ordinance Fund, the Mass Transit Capital Projects Ordinance Fund, theSolid WasteCapital Projects Ordinance Fund,the Landfill ClosureandPost-Closure Reserve Fund, and the Storm Water Facilities Capital Projects Ordinance Fund have been consolidated with their respective EnterpriseFund.
TheWaterandSewerFundandtheElectricFundaretheonlymajorenterprisefundsoftheCity.
c. TheCityreportsthefollowingadditionalfundtype:
Internal Service Funds are used to account for the financing of goods or services provided by an activity to other departments, funds or component units of the City on a cost-reimbursement basis. The City has two InternalServiceFundsreportedasonecombinedfund.The componentsoftheInternalServiceFundareFleet Services,RadioRepair,ComputerReplacement,andHealthandWellness.
The emphasis in fund financial statements is on the major funds in either the governmental or business-type activities categories. Non-major funds by category are summarized into a single column. GASB No. 34 sets forth minimum criteria (percentage of the assets, deferred outflows, liabilities, deferred inflows, revenues or expenditures/expenses of either fund category or the governmental and enterprise combined) for the determination of major funds. The non-major funds are combined in a single column in the fund financial statements.TheCitymayelecttoreportfundsasmajoreveniftheminimumcriteriasetforthbyGASBNo.34 isnotmetduetothepublicinterestofthefunds.
TheCity’sinternalservicefundispresentedintheproprietaryfundsfinancialstatements.Becausetheprincipal usersoftheinternalservicesaretheCity’sgovernmentalactivities,thefinancialstatementoftheinternalservice fund is consolidated into the governmental column when presented in the government-wide financial statements. To the extent possible, the cost of these services is reported in the appropriate functional activity (police,fire,publicworks,etc.).
D.MeasurementFocusandBasisofAccounting
InaccordancewithNorthCarolinaGeneralStatutes,allfundsoftheCityaremaintainedduringthe yearusingthe modifiedaccrualbasisofaccounting.
Government-wide and Proprietary Fund Financial Statements. The government-wide and proprietary fund financial statements are reported using the economic resources measurement focus. The government-wide and proprietary fund financial statements are reported using the accrual basis of accounting. Revenues are recorded whenearnedandexpensesarerecordedatthetimeliabilitiesareincurred,regardlessofwhentherelatedcashflows take place. Non-exchange transactions, in which the City gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, grants, and donations. On an accrual basis, revenue from property taxes is recognizedin the fiscalyear in which the taxes are levied. Revenue fromgrants and donations is recognizedinthefiscalyearinwhichalleligibilityrequirementshavebeensatisfied.
Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privilegesprovided,2)operatinggrantsandcontributions,and3)capitalgrantsandcontributions,includingspecial assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise,generalrevenuesincludealltaxes.
Proprietary funds distinguish operatingrevenues andexpenses fromnon-operating items. Operatingrevenuesand expensesgenerallyresultfromprovidingservicesanddeliveringgoodsinconnectionwiththeprimaryactivitiesof the proprietary funds. For the City of High Point, these operating revenues are charges to customers for sales and servicesfortheWaterandSewerFund,ElectricFund,MassTransitFund,ParkingFacilitiesFund,theSolidWaste FacilitiesFundandthe StormWaterFund.Operatingexpensesfortheseenterprise fundsincludethecostsofsales andprovidingservices,administrativeexpenses,anddepreciation/amortizationoncapitalassets. Allrevenuesand expensesnotmeetingthisdefinitionarereportedasnon-operatingrevenuesandexpenses.
Governmental Fund Financial Statements. Governmental funds are reported using the current financial resources measurementfocusandthemodifiedaccrualbasisofaccounting.Underthismethod,revenuesarerecognizedwhen measurableandavailable.Expendituresarerecordedwhentherelatedfundliabilityisincurred,exceptforprincipal andinterestongenerallong-termdebt,claimsandjudgments,andcompensatedabsences,whicharerecognizedas expenditures to the extent they have matured. General capital asset acquisitions are reported as expenditures in governmental funds. Issuance of general long-term debt and acquisitions under leases and IT subscriptions are reportedasotherfinancingsources.
The City considers all revenues available if they are collected within 90 days after year-end, except for property taxes. Advaloremtaxesreceivablearenotaccruedasrevenuebecausetheamountisnotsusceptibletoaccrual. At June 30, taxes receivable are materially past due and are not considered to be an available resource to finance the operationsofthecurrentyear.
Sales taxes and certain intergovernmental revenues, such as the beer and wine tax, collected and held by the State at year-end on behalf of the City are recognized as revenue. Sales taxes are considered a shared revenue for the City of High Point because the tax is levied by our respective counties and then remitted to and distributed by the State. Mostintergovernmentalrevenuesandsalesandservicesarenotsusceptibletoaccrualbecausegenerallythey are not measurable until received in cash. All taxes, including those dedicated for specific purposes, are reported asgeneralrevenuesratherthanprogramrevenues. Grantrevenuesinwhicheligibilityrequirementshave notbeen met at year-end are recorded as unearned revenues. Under the terms of grant agreements, the City funds certain programs by a combination of specific cost-reimbursement grants, categorical blockgrants, and general revenues. Thus,whenprogramexpensesareincurred,thereisbothrestrictedandunrestrictednetpositionavailabletofinance theprogram.ItistheCity’spolicytofirstapplycost-reimbursementgrantresourcestosuchprograms,followedby categoricalblockgrants,andthenbygeneralrevenues.
E. BudgetaryData
The City's budgets are adopted as required by the North Carolina General Statutes. An annual budget is adopted for the GeneralFund, Special Revenue Funds,GeneralDebt Service Fund,Enterprise Funds,and InternalService Funds. Allannualappropriationslapseatthefiscal-yearend.
CapitalProjectFunds,includingtheEnterpriseCapitalProjectsFunds,arebudgetedonaprojectoranannualbasis depending on the estimated life of the project. The enterprise fund projects are consolidated with their respective operatingfundforreportingpurposes. AfinancialplanwasadoptedbyCityCouncilaspartoftheAnnualBudget ordinance approval for the Internal Service Funds operation as required by the General Statutes. All budgets are preparedusingthemodifiedaccrualbasisofaccounting.
The legallevelofbudgetarycontrol(the levelatwhichexpendituresmaynotlegallyexceedappropriations)isthe fund level, The City Manager is authorized by the budget ordinance to make unlimited transfers within a fund; however,thegoverningboardmustapproveanyrevisionsthatalterthetotalexpendituresofanyfund.
AbudgetcalendarisincludedintheNorthCarolinaGeneralStatutes,whichprescribesthelastdayonwhichcertain stepsofthatbudgetprocedurearetobeperformed.
TheCityfollowstheseproceduresinestablishingthebudgetarydatareflectedinthefinancialstatements:
1.Prior to June 1, the City Manager submits to the City Council a proposed operating budget for the fiscal year commencingJuly1.Theoperatingbudgetincludesproposedexpendituresandthemeansoffinancingthem.
2.Publichearingsareconductedtoobtaintaxpayercomments.
3.PriortoJune30,thebudgetislegallyenactedthroughpassageofanordinance.
4.The City monitors budget performance through the Budget and Evaluation Office. The office monitors revenues and reviews expenditures against the departmental budget and prepares budget amendments as necessary.
F. Assets,Liabilities,DeferredOutflows/InflowsofResourcesandFundBalance
1. DepositsandInvestments
All deposits of the City and of the ABC Board are made in board-designated official depositories and are secured as required by state law (G.S. 159-31). The City and the ABC Board may designate, as an official depository,anybankorsavingsassociationwhoseprincipalofficeislocatedinNorthCarolina. Also,theCity andtheABCBoardmayestablishtimedepositaccountssuchasNOWandSuperNOWaccounts,moneymarket accounts,andcertificatesofdeposit.
Statelaw(G.S.159-30(c))authorizestheCityandtheABCBoardtoinvestinobligationsoftheUnitedStates orobligationsfullyguaranteedbothastoprincipalandinterestbytheUnitedStates;obligationsoftheStateof North Carolina; bonds and notes of any North Carolina local government or public authority; obligations of certain non-guaranteed federal agencies; certain high quality issues of commercial paper and banker's acceptances;andtheNorthCarolinaCapitalManagementTrust(NCCMT).
The City’s and the ABC Board’s investments are reported at fair value. Non-participating interest earning contracts are accounted for at cost. The NCCMT Government Portfolio, a SEC-registered (2a-7) external investment pool, is measured at fair value, which is the NCCMT’s share price. Because the NCCMT GovernmentPortfoliohasaweightedaveragematurityoflessthan90days,theyarepresentedasaninvestment withamaturityoflessthan6months.
As allowedbyState law, theCity has investedin securities which arecallable andwhich provide for periodic interest rate increases in specific increments until maturity. These investments are reported at fair value as determinedbyquotedmarketprices.
2. CashandCashEquivalents
TheCitypoolsmoneyfromseveralfundstofacilitatedisbursementandinvestmentandtomaximizeinvestment income. Therefore,allcashandinvestmentsareessentiallydemanddepositsandareconsideredcashandcash equivalents. TheABCBoardconsidersallhighlyliquidwithanoriginalmaturityofthreemonthsorlesstobe cashequivalents.
3. RestrictedAssets
Thefinancialstatementsoftheenterprisefundshavebeenconsolidatedtoincludeapplicablereservefundsand capitalprojectfunds. The assets of these funds are classified as restricted because their use is restricted. The unexpended bond proceeds of Combined Enterprise System Revenue Bonds, Limited Obligation Bonds, and GeneralObligationBondsissuedbytheCityareclassifiedasrestrictedassetsfortheenterprisefundsandcapital project fund because their use is completely restricted to the purposes for which the bonds were issued. In addition,customerutilitydepositsintheenterprisefundsandsuretydepositsonerosioncontrolandsubdivision requirements in the General Fund are restricted to the service for which the deposit was collected. The City Council has adopted a strategy to stabilize retail electric utility rates for the benefit of users of the Electric UtilityOperationsFundbycreatingaRateStabilizationReserveincludedinrestrictedcash.
CityofHighPointRestrictedCashandInvestments
GovernmentalactivitiesJune30,2024
GeneralFund
Customerdeposits1,667,306 $
GeneralCapitalProjectsFund
Unexpendedbondproceeds10,852,111
Non-majorgovernmentalfunds
Unexpendedgrantreceipts4,573,714
Blendedcomponentunitdeposits400,376
Totalgovernmentalactivities17,493,507
Business-typeactivities
Water&SewerFund
Customerdeposits438,605
Restrictedforcapitalprojects25,534,578
ElectricFund
Customerdeposits1,260,470
Restrictedforcapitalprojects13,783,368
Restrictedforratestabilization36,585,328
Non-majorenterprisefunds
Customerdeposits9,240
Restrictedforcapitalprojects19,076,703
Unexpendedgrantreceipts52,591
Totalbusiness-typeactivities96,740,883
TotalRestrictedCashandInvestments114,234,390 $
4. AdValoremTaxReceivable
Inaccordancewithstate law(G.S.105-347andG.S.159-13(a)),theCityleviesadvaloremtaxesonproperty otherthanmotorvehiclesonJuly1,thebeginningofthefiscalyear. Thelevyisbasedontheassessedvaluation of property located in the City as of January 1, 2023. Value of personal property is established annually, and bystatelaw,realpropertymustbeappraisedatleastonceeveryeightyears. Thelastrevaluationofrealproperty became effective with the 2022 tax levy. The City's current combined tax rate is $.6175. Property taxes are levied July 1, the beginning of the fiscal year, and are due on September 1 (lien date) and payable without penaltyorinterestuntilthesixthofJanuary.
On and after January 6, taxes become delinquent; a lien attaches to the property, and a penalty of 2 percent is assessed. OnFebruary1,interestaccruesattherateof .75percentpermonthuntilpaid. AsallowedbyState law, the City has established a schedule of discounts thatapply to taxes that arepaidprior to the due date. In theCity'sGeneralFund,advaloremtaxrevenuesarereportednetofsuchdiscounts.
The City has arrangements with Guilford, Randolph, Davidson and Forsyth counties for the billing and collectingoftheCity'spropertytaxes.
TheCityispermittedbythegeneralstatutesoftheStatetolevytaxesupto$1.50per$100ofassessedvaluation for general governmental services other than the payment of principal and interest on long-term debt, and in unlimitedamountsforthepaymentofprincipalandinterestonlong-termdebt.
Thetaxratetofinancegeneralgovernmentalservicesotherthanthepaymentofprincipalandinterestonlongtermdebtfor the yearendedJune 30, 2024, was $.5835per $100,whichmeans that the Cityhas atax margin of$.9165per$100.
5. AllowancesforDoubtfulAccounts
All receivables that historically experience uncollectible accounts are shown net of an allowance for doubtful accounts. Thisamountisestimatedbyanalyzingtheoutstandingpercentageofreceivablesforprioryears.
6. NotesReceivable
NotesreceivablefortheCommunityDevelopmentFundrepresentloansmadethroughgrantprogramsthatare collectibleinfuturefiscalyearsandshownnetofanallowanceforestimateduncollectibleaccounts.
7. LeaseReceivable
The City’s lease receivable is measured atthepresentvalue of lease paymentsexpected to be receivedduring the lease term. Under the lease agreement, the City may receive variable lease payments that are dependent upon the lessee’s revenue. The variable payments are recorded as an inflow of resources in the period the paymentisreceived.
The deferred inflow of resources is recorded at the initiation of the lease in an amount equal to the initial recordingoftheleasereceivable.Thedeferredinflowofresourcesisamortizedonastraight-linebasisoverthe termofthelease.
8. InventoryandPrepaidItems
Inventories of the City are valued at cost (first-in, first-out), which approximates market. Inventories in the internal service and enterprise funds and those of the ABC Board consist of expendable supplies held for consumption. Thecostsof these inventories are recorded asanexpense asthe inventories are consumed.The CityofHighPointABCBoardvaluesitsinventoryatreplacementcost.
Certainpaymentstovendorsreflectcostsapplicabletofutureaccountingperiods,arerecordedasprepaiditems inbothgovernment–wideandfundfinancialstatementsandareexpensedastheitemsareused.
9. CapitalAssets
CapitalassetsoftheCityaredefinedasassetswithaninitialcostofmorethanacertainamountandestimated useful life of more than three years. The minimum capitalization cost for all capital assets excluding infrastructureandlandis$5,000.Infrastructurehasacapitalizationthresholdof$50,000.Alllandiscapitalized, regardless of cost. Donated capital assets received prior to June 15, 2015 are recorded at their estimated fair value at the date of donation. Donated capital assets received after June 15, 2015 are recorded at acquisition value.Allotherpurchasedorconstructedcapitalassetsarereportedatcostorestimatedhistoricalcost.General infrastructure assets acquired prior to July 1, 2003, consist of the road network (roads, curbs and gutters, sidewalks, and bridges) that were acquired, contributed by contractors, or that received substantial improvements subsequent to July 1, 1980, and are reported at estimated historical deflated replacement cost. The cost of normal maintenance and repairs that do not add to the value or materially extend the assets’ lives arenotcapitalized.
The City’s capital assets also include certain right to use assets. These right to use assets arise in association withagreementswheretheCityreportsalease (onlyapplieswhentheCity isthelessee)oragreementswhere theCityreportsanInformationTechnology(IT)Subscription.
The righttouseleaseassetsareinitiallymeasuredatanamountequaltotheinitialmeasurementoftherelated lease liability plus any lease payments made at or prior to the start of the lease term, less lease incentives received from the lessor ator prior to the startof the lease term, and plus ancillary charges necessary to place the lease asset into service. The right to use lease assets are amortized on a straight-line basis over the life of therelatedlease.
The right to use IT subscription assets are initially measured at an amount equalto the initial measurementof thesubscriptionliabilityplusanysubscriptionpaymentsmadeatthestartofthesubscriptionterm,ifapplicable, pluscapitalizableinitialimplementationcostsatthestartofthesubscriptionterm,lessanyincentivesreceived fromtheITsubscriptionvendoratthestartofthesubscriptionterm.Subscriptionpayments,aswellaspayments for capitalizable implementation costs made before the start of the subscription term should be reported as a prepayment (asset). Such prepayments should be reduced by any incentives received from the same vendor before the start of the subscription term if a right of offset exists. The net amount of the prepayments and incentivesshouldbereportedasanassetorliability,asappropriate,beforethe startofthe subscriptiontermat whichtimetheamountshouldbeincludedintheinitialmeasurementofthesubscriptionasset.Therighttouse subscriptionassetsshouldbeamortizedonastraight-linebasisoverthesubscriptionterm.
Depreciationofcapitalassetsisprovidedonthestraight-linemethodovertheirestimatedusefullives:
Buildings 25-50years
Infrastructure 10-40years
Improvements 5-20years
Equipment 3-20years
Computersoftware/Intangibles 5-10years
Capital assets of the ABC Board are recorded at original cost at the time of acquisition. Property, plant, and equipmentdonatedtotheABCBoardreceivedpriortoJune15,2015arerecordedattheirestimatedfairvalue at the date of donation. Donated capital assets received after June 15, 2015 are recorded at acquisition value. Allotherpurchasedorconstructedcapitalassetsarereportedatcostorestimatedhistoricalcost Capitalassets oftheABCBoardaredepreciatedovertheirusefullivesonastraight-linebasisasfollows:
Buildings
TheCityevaluatesprominenteventsorchangesincircumstancesaffectingcapitalassetstodeterminewhether impairmentofacapitalassethasoccurred.Acapitalassetisgenerallyconsideredimpairedifboth(a)thedecline inserviceutilityofthecapitalassetislargeinmagnitudeand(b)theeventorchangeincircumstanceisoutside the normal life cycle of the capital asset. Impaired capital assets that will no longer be used by the City are reportedatthelowerofcarryingvalueorfairvalue.Impairmentlossesoncapitalassetsthatwillcontinuetobe used by the City are measured using the method that best reflects the diminished service utility of the capital asset.Anyinsurancerecoveriesreceivedasaresultofimpairmenteventsorchangesincircumstancesresulting intheimpairmentofacapitalassetarenettedagainsttheimpairmentloss.
10. DeferredOutflows/InflowsofResources
Inadditiontoassets,thestatementofnetpositionwillsometimesreportaseparatesectionfordeferredoutflows of resources. This separate financial statement element, Deferred Outflows of Resources, represents a consumption of net assets that applies to future periods, and so will not be recognized as an expense or expenditureuntilthen.
In addition to liabilities, the statement of net position will sometimes report a separate section for deferred inflows of resources. This separate financialstatement element, Deferred Inflows of Resources,represents an acquisitionofnetassetsthatappliestofutureperiods,andsowillnotberecognizedasrevenueuntilthen.
11. Long-termObligations
Inthegovernment-widefinancialstatements,andproprietaryfundtypesinthefundfinancialstatements,longterm debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net position. Bond premiums and discounts are deferredandamortizedoverthelifeofthebondsusingthestraight-linemethodthatapproximatestheeffective interest method. Bonds payable are reported net of the applicable bond premiums or discount. Bond issuance costs, except for any prepaid insurance costs, are expensed in the reporting period in which they are incurred. Prepaidinsurancecosts,asapplicable,areexpensedoverthelifeofthedebt.
Infundfinancialstatements,governmentalfundtypesrecognizebondpremiumsanddiscounts,aswellasbond issuancecosts,duringthecurrentperiod.Thefaceamountofdebtissuedisreportedasotherfinancingsources. Premiumsreceivedondebtissuancesarereportedasotherfinancingsourceswhilediscountsondebtissuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received,arereportedasdebtserviceexpenditures.
12.CompensatedAbsences
The vacation policy of the City provides for the accumulation of up to thirty-seven and one-half (37.5) days earned vacation leave with such leave being fully vested when earned. For the City’s government-wide and proprietary funds, an expense and liability for compensated absences are recorded as the leave is earned. Compensated absences arereported in the governmentalfunds only if theyhave matured. The currentportion oftheaccumulatedvacationpayhasbeenestimatedbasedonhistoricaltrends.
Boththe City’sandtheABCBoard'ssickleavepoliciesprovideforanunlimitedaccumulationofearnedsick leave. Sickleave does notvest, but anyunusedsick leave accumulatedat the time ofretirementmay be used in the determination of length of service for retirement benefit purposes. Since neither the City nor the ABC Boardhasanyobligationfortheaccumulatedsickleaveuntilitisactuallytaken,noaccrualforsickleavehas beenmade
13. NetPosition/FundBalances
NetPosition
Net position in government-wide and proprietary fund financial statements are classified as net investment in capitalassets,restricted,andunrestricted.
Netinvestmentincapitalassetsrepresentstheportionofnetpositionassociatedwithnonliquid-capital assetslesstheoutstandingcapitalassetrelateddebt.
Restricted net position represents constraints on resources that are either externally imposed by creditors, grantors, contributors, or laws or regulations of other governments or imposed by law throughStatestatute.
Unrestricted net position represents resources with no externally imposed restrictions on use. While the City has allocated portions of unrestricted net position for various purposes, the City has the unrestrictedauthoritytorevisitoraltertheallocationwithmanagerialorCityCouncildecision.
FundBalance
In the governmental fund financial statements, fund balance is composed of five classifications designed to disclosethehierarchyofconstraintsplacedonhowfundbalancecanbespent.
Thegovernmentalfundtypesclassifyfundbalancesasfollows:
NonspendableFundBalance-Thisclassificationincludesamountsthatcannotbespentbecausetheyare (a) notinspendableformor(b)legallyorcontractuallyrequiredtobemaintainedintact.
Prepaid items – represents thatportion of fund balance inthe governmentalfunds forprepaid items, such aspostageandotherprepaidexpenses.
Inventories – portion of fund balance that is not an available resource because it represents the year end balanceofendinginventories,whicharenotspendableresources.
Lease Receivable, net – portion of fund balance that is not an available resource because it is not in spendableform.Thereportedamountiscalculatedbyreducingtheleasereceivablebytherelateddeferred inflowofresources.
Restricted Fund Balance - This classification includes amounts that are restricted to specific purposes externallyimposedbycreditorsorimposedbylaw.
RestrictedforStabilizationbyStateStatute-NorthCarolinaG.S.159-8prohibitsunitsofgovernmentfrom budgetingorspendinga portionoftheirfundbalance.Thisisone ofseveralstatutesenactedbytheNorth Carolina State Legislature in the 1930’s that were designed to improve and maintain the fiscal health of localgovernmentunits.RestrictedbyStatestatute(RSS),iscalculatedattheendofeachfiscalyearforall annuallybudgetedfunds.ThecalculationinG.S.159-8(a)providesaformulafordeterminingwhatportion offundbalanceisavailable forappropriation.Theamountoffundbalancenotavailable for appropriation is what is known as “restricted by State statute”. Appropriated fund balance in any fund shall not exceed thesumofcashandinvestmentsminusthesumofliabilities,
rances, and deferred revenues arising from cash receipts, as those figures stand at the close of the fiscal yearnextprecedingthebudget.PerGASBguidance,RSSisconsideredaresourceuponwhicharestriction is “imposed by law through constitutional provisions or enabling legislation.” RSS is reduced by inventories and prepaids as they are classified as nonspendable. Outstanding Encumbrances are included within RSS, as shown in Note 4.B.6 RSS is included as a component of Restricted Net Position and RestrictedFundBalanceonthefaceoftheBalanceSheet.
Restricted for community and economic development – portion of Fund Balance Restricted as to control bytheCity’sblendedcomponentunits(FHP).
Restricted for grant programs – portion of fund balance restricted by various granting agencies for expenditures for public safety, planning and community development, transportation, and culture and recreation.
Restricted for transportation – portion of fund balance restricted by revenue source for sidewalk and turn lane construction improvements. This amount does not include any balance of unexpended Powell Bill fundswhichwouldbedisclosedwithitsownfundbalancecomponent.
Restrictedfordebtservice–portionoffundbalanceoftheGeneralDebtServiceFundrestrictedbyrevenue sourcetoservicethedebtservicepaymentsofgeneralgovernmentdebt.
Restricted for capital projects – portion of fund balance restricted by revenue source for certain capital projectpurposesasdefinedbyapplicablebondandotherdebtinstruments.
Committed Fund Balance - This classification of fund balance can only be used for specific purposes as authorizedinaformalactionpriortotheendofthefiscalyearutilizinganordinanceorordinanceamendment as approved and imposed by a majority vote by quorum of the City of High Point’s City Council (the highest levelofdecision-makingauthority). Onceadopted,thelimitationimposedbytheordinanceisbindingwiththe force of local law and remains in place until a similar action is taken (the adoption of another ordinance) to removeorrevisethelimitation.
Committedforpublicsafety–portionoffundbalanceavailableforappropriationthathasbeencommitted by City Council for public safety in order to service future law enforcement officer’s special separation allowancepensionobligations.
Committedforeconomicdevelopment–portionoffundbalanceavailableforappropriationthathasbeen committedbyCityCouncilforeconomicdevelopmentincentivesandreimbursements.
Committed for market development – portion of fund balance available for appropriation that has been committedbyCityCouncilforMarketAuthoritydevelopment.
Assigned Fund Balance - This classification of fund balance has been designated to be used for specific purposes. Fiscal policies formally adopted by the City Council allow the governing body to take informal action through resolution to assign a portion of fund balance for a particular purpose or program and extends similar authority to the City Manager. Assigned fund balances lapse atthe end of the fiscal year unless these assignmentsareextended.
Assigned for subsequent year's expenditures - portion of fund balance that is appropriated in the adopted 2024-2025budgetordinancethatisnotalreadyclassifiedinrestrictedorcommitted.
Assigned for general government – portion of fund balance that has been budgeted for City Hall and redevelopmentprojects.
Assigned for public safety – portion of fund balance that has been budgeted for High Point Police CommunityDayactivities.
Assigned for culture and recreation - portion of fund balance that has been budgeted for lighting system improvements at the High Point Theatre as well as Parks and Recreation improvements related to the PiedmontEnvironmentalCenter.
Assigned for public services and transportation – portion of fund balance that has been budgeted by the CityCouncilforvariousfuturetransportationandpublicservicescapitalprojects.
AssignedfundbalancesJune30,2024
Subsequentyear'sexpenditures1,668,178 $
Generalgovernment(EconomicDevelopmentAlliance)20,000
Publicsafety(PoliceCommunityDay)8,193
Cultureandrecreation(Theatre)102,154
Cultureandrecreation(ParksandRecreation)14,102
Publicservicesandtransportation(Transportation)51,245
Publicservicesandtransportation(PublicServices)14,063
Totalassignedfundbalances1,877,935 $
Unassigned Fund Balance - This is the portion of fund balance which has not been restricted, committed or assigned to specific purposes or other funds. The General Fund is the only fund that reports a positive unassignedfundbalance.
TheCityofHighPointhasarevenuespendingpolicyforprogramsandactivitieswithmultiplerevenuesources. The Financial ServicesDirector willuse resourcesin the following hierarchy:federalfunds, state funds, bond and/or installment contract proceeds, local non-City funds, City funds. For purposes of fund balance classification, expenditures are to be spent from restricted fund balance first, followed in order by committed fundbalance,assignedfundbalance,andlastlyunassignedfundbalance. TheFinancialServicesDirectorand CityManagerhavetheauthoritytodeviatefromthispolicywhereitisinthebestinterestoftheCity.
TheCityofHighPointhasalsoadoptedaminimumfundbalancepolicyfortheGeneralFundwhichprovides that the City will maintain an available fund balance at least equal to or greater than 10% of budgeted expenditures.TheCitymayfromtimetotimefallbelowthisamount.Insuchcircumstances,Councilwilladopt
a plan to restore available fund balances to the policy level within 36 months, or other such appropriate time period.
14. DefinedBenefitCost-SharingandSingleEmployerPlans
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Local GovernmentEmployees’RetirementSystem(LGERS)andadditionsto/deductionsfromLGERS’fiduciarynet positionhavebeendeterminedonthesamebasisastheyarereportedbyLGERS. Forthispurpose,planmember contributionsarerecognizedintheperiodinwhichthecontributionsaredue. TheCityofHighPoint’semployer contributions are recognized when due and the City of High Point has a legal requirement to provide the contributions. Benefits and refunds are recognized when due and payable in accordance with the terms of LGERS. Investmentsarereportedatfairvalue.
The City participates in one other post-employment benefit plan (OPEB), for health insurance (the Plan). The City currently finances the Plan following a pay-as-you-go approach, paying an amount each year equal to premiums related to the coverage. For purposes of measuring the net OPEB liability, deferred outflows and inflow of resources related to OPEB, and OPEB expense have been determine on the sabe basis as they are reported by the Plan. For this purpose, the Plan recognizes benefit payments when due and payable in accordancewiththebenefitterms.
The City also administers a single-employer defined benefit pension plan that provides retirement benefits to the City’s sworn law enforcement. This Law Enforcement Special Separation Allowance (LEOSSA) Plan is consolidated with the General Fund for reporting in compliance with GASB Statement No. 73 as it is not a defined trust. The full accrual impacts of the pension liability, deferred outflows of resources and deferred inflowsofresourcesrelatedtopensions,andpensionexpensearecapturedonthegovernment-widestatements.
For purposes of measuring the net pension expense, information about the fiduciary net position of the Firefighters’ and Rescue Squad Workers’ Pension Fund (FRSWPF) and additions to/deductions from FRSWPF’s fiduciary net position have been determined on the same basis as they are reported by FRSWPF. Forthispurpose,benefitpayments(includingrefundsofemployeecontributions)arerecognizedwhendueand payableinaccordancewiththebenefitterms. Investmentsarereportedatfairvalue.
G. Revenues,ExpendituresandExpenses
1. GrantRevenue
The City recognizes revenues (net of estimated uncollectible amount, if any), when all applicable eligibility requirements, including time requirements, are met. Resources transmitted to the City before meeting the eligibilityrequirementsarerecordedandreportedasunearnedrevenues.
2.
Investmentincome
TheCityrecognizesinvestmentincomefrompooledcashandinvestmentsasrevenuesinthe individualfunds based on the percentage of a fund’s average monthly investment in pooled cash and investments to the total average monthly-pooled equity in pooled cash and investments. All investment earnings are allocated and recordedmonthlyineachindividualfund.
3. InterfundTransactions
Interfundtransactionsareeitherservicesprovided,reimbursementsortransfers.Servicesthataredeemedtobe reasonablyequivalentinvaluearetreatedasrevenuesandexpenditures/expenses.Reimbursementsoccurwhen one fund incurs the cost, charges the appropriate benefiting fund, and reduces its related cost as a reimbursement, if material. All other interfund transactions are presented as transfers. Transfers within governmentalactivitiesandbusiness-typeactivitiesareeliminateduponconsolidation.
TheCityalsotransferscapitalassetsbetweenfundsasneeded.Thesetypesoftransfersarereflectedaslosson disposalinthefundmakingthetransferandcapitalcontributionsinthefundreceivingtheassets.
Also,theABCBoardmakesquarterlytransferstotheCity'sGeneralFund. ThesetransfersrepresenttheCity's portionoftheBoard'ssurplusesthattheABCBoardisrequiredbyStatestatutetodistributetotheCity.These transactions are considered external transactions – that is, revenues and expenses. The City makes periodic paymentstoFHPforoperationalpurposes.
H. UseofEstimates
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, deferred outflows, liabilities, and deferred inflows and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenuesandexpenditures/expensesduringthereportingperiod.Actualresultscoulddifferfromthoseestimates.
I. ReconciliationofGovernmentalFundstoGovernmentWideActivities
Thepreparationoffinancialstatementsrequiressummarizingcertaindetailsreconcilingthemodifiedaccrualbasis of accounting for the governmental funds to the full accrual basis presented for governmental activities. The following liabilities in governmental funds are summarized to the reconciliation on page 20 of the financial statements.
Accruedinterestpayable
$1,000,887
Compensatedabsences5,532,365
Installmentcontractspayable3,724,320
Leases5,444,021
SBITA1,159,471
LEOSSApensionliability17,620,729
LGERSpensionliability47,813,351
OPEBliability9,332,740
Loanspayable3,638,000
Limitedobligationbondspayable42,689,000
Generalobligationbondspayable60,511,940
Premiumongeneralobligationbonds2,331,462
Componentunitdeferredlossonrefunding(40,500)
Totalliabilitiesnotpayableincertainperiod200,757,786 $
Note2.DetailNotesonAllFunds
A. Assets
1. Deposits
AllthedepositsoftheCityandtheABCBoardareeitherinsuredorcollateralizedbyusingoneoftwomethods. Under the Dedicated Method, all deposits that exceed the federal depository insurance coverage level are collateralized with securities held by the City's or the ABC Board's agents in these units’ names. Under the PoolingMethod,which isacollateralpool, alluninsureddepositsarecollateralizedwithsecuritiesheldbythe State Treasurer’s agent in the name of the State Treasurer. Since the State Treasurer is acting in a fiduciary capacity for the City and the ABC Board, these deposits are considered to be held by the City's and the ABC Board’sagentsintheirnames.Theamountofthepledgedcollateralisbasedonanapprovedaveragingmethod fornon-interestbearingdepositsandtheactualcurrentbalanceforinterest-bearingdeposits.Depositoriesusing the Pooling Method report to the State Treasurer the adequacy of their pooled collateral covering uninsured deposits. The State Treasurer does not confirm this information with the City, the ABC Board or the escrow agent.BecauseoftheinabilitytomeasuretheexactamountsofcollateralpledgedfortheCityortheABCBoard
underthePoolingMethod,thepotentialexistsforundercollateralization,andthisriskmayincreaseinperiods of high cash flows. However, the State Treasurer of North Carolina enforces strict standards of financial stabilityforeachdepositorythatcollateralizespublicdepositsunderthePoolingMethod.TheCityandtheABC Board have no formal policy regarding custodial credit risk for deposits, but rely on the State Treasurer to enforcestandards of minimum capitalization for all pooling methodfinancialinstitutions andto monitor them forcompliance
TheCityandtheABCBoardcomplywiththeprovisionsofG.S.159-31whendesignatingofficialdepositories andverifyingthatdepositsareproperlysecured.
AtJune30,2024theCity’sdepositshadacarryingamountof$14,986,571andabankbalanceof$14,752,584. ThecarryingamountofdepositsfortheABCBoardwas$3,052,572andthebankbalancewas$3,261,130. Of the bank balances, the City and the ABC Board had $250,000 and $484,136 respectively, covered by federal depositoryinsuranceandtheremainderof$14,502,584and$2,776,994respectively,wascoveredbycollateral heldunderthepoolingmethod. AtJune30,2024,theCityandtheABCBoardheldpettycashfundsof$48,449 and$21,250,respectively.
AtJune30,2024theFHPhaddepositswithacarryingamountof$400,376andcoveredbyfederaldepository insurance.
2. Investments
AtJune30,2024,theCity’sinvestmentbalanceswereasfollows:
ValuationBookMaturityRating MeasurementValueat Method6/30/2024
GovernmentAgenciesFairValueLevel2252,859,611$1to5YearsAAA/Aaa
CommercialPaperFairValueLevel211,814,33010/1/2024A1P1
NCCapitalManagementTrust-
GovernmentPortfolioFairValueLevel147,382,360N/AAAAm
$312,056,301
Allinvestmentsaremeasuredusingthemarketapproach:usingpricesandotherrelevantinformationgenerated bymarkettransactionsinvolvingidenticalorcomparableassetsoragroupofassets.
Level of fair value hierarchy: Level 1: Debt securities valued using directly observable, quoted prices (unadjusted) in active markets for identical assets. Level 2: Debt Securities are valued using a matrix pricing technique.Matrixpricingisusedtovaluesecuritiesbasedonthesecurities’benchmarkquotedprices.
InterestRateRisk.Asameansoflimitingitsexposuretofairvaluelossesarisingfromrisinginterestrates,the City’s investment policy limits at least half of the City’s investment portfolio to maturities of less than 12 months. Also, the City’s investment policy requires purchases of securities to be laddered with staggered maturitydatesandlimitsallsecuritiestoafinalmaturityofnomorethanfiveyears.
Credit risk. The City’s investment policy limits the City’s investments to the provisions of G.S. 159-30 and restricts the purchase of securities to the highest possible ratings whenever particular types of securities are rated. At June 30, 2024, the investments in the U.S. Government Agencies were rated AAA by Standard & Poor’s and Aaa by Moody’s Investors Service. The City’s investment in the NC Capital Management Trust GovernmentPortfoliocarriedacreditratingofAAAbyStandard&Poor’sasofJune30,2024.
Custodialcreditrisk.Foraninvestment,thecustodialcreditriskistheriskthatintheeventofthefailureofthe counterparty,theCitywillnotbeabletorecoverthevalueofitsinvestmentsorcollateralsecuritiesthatarein the possessionofanoutside party. TheCity’sinvestmentpolicy requires all book-entry investmentsecurities to be in the City’s name and delivered versus payment to a City-named third-party custodian. Certificated securitiesareheldinthecustodyoftheFinancialServicesDirector.
ConcentrationofCreditRisk.TheCity’sinvestmentpolicyplaceslimitsontheamountthattheCitymayinvest inanyonetypeofsecurityandalsoanyoneissuer.ThereisnolimitfordirectobligationsoftheU.S.Treasury orinvestmentsinmutualfundscertifiedbytheDepartmentofState Treasurer(NCCMT).Securitiesissuedby agenciesoftheU.S.governmentarelimitedtoa maximumof75%oftheportfolio andindividuallylimitedto 30%concentrationtoanyonegovernmentagency. Commercialpaperandbankersacceptancesmaynotexceed 30% and 20%, respectively, of the portfolio. Policy also limits investments to 2% of the portfolio for any individual non-governmental issuers. More than 5% of the City’s investments are in U.S. Government AgencieswhichareprimarilyFederalHomeLoanMortgageCorporation(15.25%),FederalFarmCreditBank (21.61%),FederalNationalMortgageAssociation(8.80%)securities,andFederalHomeLoanBank(21.98%) securities.
3. Receivables-AllowancesforDoubtfulAccounts
The amountspresentedintheStatementsofNetPosition,GovernmentalFundsBalanceSheetandProprietary FundStatementofNetPosition,arenetofthefollowingallowancesfordoubtfulaccounts:
GeneralFund:
Taxesreceivable2,884,916 $
Accountsreceivable1,871,278
TotalGeneralFund4,756,194
SpecialRevenueFund:
NotesandLoansreceivable808,750
WaterandSewerFund:
Accountsreceivable753,322
ElectricFund:
Accountsreceivable1,820,821
MassTransitFund Taxesreceivable231,479
SolidWasteFund: Accountsreceivable133,052
StormWaterFund: Accountsreceivable47,357
TotalAllowances8,550,975 $
4. CapitalAssets
AsummaryofchangesincapitalassetsfortheyearendedJune30,2024,follows:
BeginningIncreases&Decreases&Ending BalanceReclassificationsReclassificationsBalance
Governmentalactivities:
Capitalassetsnotbeingdepreciated
Landandothernondepreciablecapitalassets................22,427,384$18,264,012$3,130$40,688,266 $ Intangibles................................................................115,889--115,889
Constructioninprogress............................................22,782,9205,836,43420,906,3847,712,970
Totalcapitalassetsnotbeingdepreciated45,326,19324,100,44620,909,51448,517,125
Capitalassetsbeingdepreciated
Buildingsandotherimprovements...............................171,395,15113,970,961-185,366,112 Intangibles................................................................215,609114,325-329,934 Equipment................................................................100,318,5357,485,8762,272,795105,531,616 Infrastructure...........................................................578,284,51619,430,303-597,714,819
Totalcapitalassetsbeingdepreciated850,213,81141,001,4652,272,795888,942,481
Lessaccumulateddepreciationfor:
Buildingsandotherimprovements.............................63,435,1225,862,275-69,297,397 Intangibles..............................................................114,50045,096-159,596 Equipment..............................................................68,333,1887,465,6992,204,16373,594,724 Infrastructure.........................................................478,446,4549,282,736-487,729,190
Totalaccumulateddepreciation610,329,26422,655,806$2,204,163$630,780,907
Totalcapitalassetsbeingdepreciated(net)...................239,884,547 258,161,574
Capitalassetsbeingamortized
Righttouseassets:
Leaseequipment........................................................2,870,1175,921,877467,7358,324,259 ITsubscriptions........................................................3,427,6931,341,11655,8314,712,978
Totalcapitalassetsbeingamortized...........................6,297,8107,262,993523,56613,037,237 Lessaccumulatedamortizationfor:
Righttouseassets:
Leaseequipment....................................................1,697,6891,025,107467,7362,255,060 ITsubscriptions......................................................1,188,6671,894,44220,8343,062,275
Totalaccumulatedamortization..............................2,886,3562,919,549488,5705,317,335
Totalcapitalassetsbeingamortized(net).....................3,411,454 7,719,902 Governmentalactivitiescapitalassets,net.......................288,622,194 $ $314,398,601
BeginningIncreases&Decreases&Ending BalanceReclassificationsReclassificationsBalance
Business-typeactivities:
Water&SewerFund
Capitalassetsnotbeingdepreciated
Landandothernondepreciablecapitalassets................8,886,182$412,435 $ $-9,298,617 $ Constructioninprogress............................................36,471,0134,024,59531,922,8258,572,783
Totalcapitalassetsnotbeingdepreciated...................45,357,1954,437,03031,922,82517,871,400
Capitalassetsbeingdepreciated
Buildingsandotherimprovements...............................74,541,190-1,247,30573,293,885 Equipment................................................................11,970,780626,390878,94711,718,223 Infrastructure...........................................................500,568,17746,560,0822,199,513544,928,746 Intangibles................................................................874,036560,457-1,434,493
Capitalassetsbeingdepreciated................................587,954,18347,746,9294,325,765631,375,347
Lessaccumulateddepreciationfor:
Buildingsandotherimprovements.............................52,714,5981,366,1351,193,17252,887,561 Equipment..............................................................8,085,985361,498878,9477,568,536 Infrastructure.........................................................229,729,25913,561,0722,093,894241,196,437 Intangibles..............................................................699,228174,807-874,035 Totalaccumulateddepreciation...............................291,229,07015,463,512
Lessaccumulatedamortizationfor:
Totalaccumulatedamortization..............................19,97625,10918,27526,810 Totalcapitalassetsbeingamortized(net).....................15,012 114,443 Water&Sewerfundcapitalassets,net..........................342,097,320 $ $346,834,621
BeginningIncreases&Decreases&Ending BalanceReclassificationsReclassificationsBalance
ElectricFund
Capitalassetsnotbeingdepreciated
Landandothernondepreciablecapitalassets..1,029,491 $ $--$1,029,491 $
Constructioninprogress..............................11,092,9046,793,9252,203,50315,683,326 Totalcapitalassetsnotbeingdepreciated.....12,122,3956,793,9252,203,50316,712,817
Capitalassetsbeingdepreciated
Buildingsandotherimprovements.................88,04416,000-104,044 Intangibles..................................................4,671,767165,410-4,837,177 Equipment..................................................3,065,09894,055-3,159,153 Infrastructure.............................................132,419,9162,719,338-135,139,254 Capitalassetsbeingdepreciated..................140,244,8252,994,803-143,239,628
Lessaccumulateddepreciationfor:
Buildingsandotherimprovements.................88,044480-88,524 Intangibles..................................................3,866,492233,061-4,099,553 Equipment..................................................2,924,97038,357-2,963,327 Infrastructure.............................................90,160,4813,248,220-93,408,701 Totalaccumulateddepreciation...................97,039,9873,520,118
Totalcapitalassetsbeingamortized377,07470,30512,341435,038
Lessaccumulatedamortizationfor:
$59,721,918
MassTransitFund Capitalassetsnotbeingdepreciated
$5,293,052
ParkingFacilitiesFund
Capitalassetsnotbeingdepreciated
Landandothernondepreciablecapitalassets.....898,720 $ $--$898,720 $
Totalcapitalassetsnotbeingdepreciated.......898,720--898,720
Capitalassetsbeingdepreciated
Buildingsandotherimprovements...................9,050,161--9,050,161 Equipment....................................................9,27557,314-66,589
Capitalassetsbeingdepreciated.....................9,059,43657,314-9,116,750
Lessaccumulateddepreciationfor:
Buildingsandotherimprovements.................8,453,259112,7318,565,990 Equipment..................................................-2,333-2,333 Totalaccumulateddepreciation...................8,453,259115,064 $ $-8,568,323 Totalcapitalassetsbeingdepreciated(net).......606,177 548,427 Capitalassetsbeingamortized
$1,447,147
SolidWasteFund
Capitalassetsnotbeingdepreciated
Landandothernondepreciablecapitalassets.....1,906,591 $ $--$1,906,591 $ Constructioninprogress................................2,319,6256,773,260-9,092,885
Totalcapitalassetsnotbeingdepreciated.......4,226,2166,773,260-10,999,476
Capitalassetsbeingdepreciated
Buildingsandotherimprovements...................28,307,784-78,57128,229,213 Equipment....................................................4,596,234108,660634,5904,070,304 Capitalassetsbeingdepreciated.....................32,904,018108,660713,16132,299,517
Lessaccumulatedamortizationfor: Righttouseassets:
127,950
$18,754,411
During the year, assets were transferred between governmental activities in the amount of $26,485 (with accumulated depreciationof$26,485).
Depreciationexpensewaschargedtofunctions/programsoftheprimarygovernmentasfollows: DepreciationAmortization Governmentalactivities:20242024
AsummaryofcapitalassetsfortheABCBoard atJune30,2024follows:
AsummaryofleaseassetsfortheABCBoardatJune30,2024follows:
B. Liabilities
1. AccountspayableandaccruedexpensesasofJune30,2024consistedofthefollowing: AccountsAccruedPayroll PayableandExpensesTotal
GovernmentalActivities
General.............................................3,571,394$4,230,514$7,801,908 $
GeneralCapitalProjects......................1,943,692-1,943,692
OtherNon-majorgovernmentalfunds..2,930,92164,7292,995,650 InternalServiceFund.........................5,547,53480,9355,628,469
Totalgovernmentalactivities.............13,993,5414,376,17818,369,719
Business-TypeActivities
WaterandSewer...............................4,697,683551,2035,248,886 Electric.............................................10,050,344596,38610,646,730
OtherNon-majorenterprisefunds........2,014,832502,2432,517,075
Totalenterprisefunds......................16,762,8591,649,83218,412,691 TotalPrimaryGovernment....................30,756,400$6,026,010$36,782,410 $
2. PensionPlanandOtherPostemploymentBenefits
a. LocalGovernmentalEmployees'RetirementSystem
PlanDescription. TheCityofHighPointisaparticipatingemployerinthestatewideLocalGovernmental Employees’ RetirementSystem (LGERS), a cost-sharing multiple-employer definedbenefit pension plan administeredbytheStateofNorthCarolina. LGERSmembershipiscomprisedofgeneralemployeesand local law enforcement officers (LEOs) of participating local governmental entities. Article 3 of G.S. Chapter128assignstheauthoritytoestablishandamendbenefitprovisionstotheNorthCarolinaGeneral Assembly. Management of the plan is vested in the LGERS Board of Trustees, which consists of 13 members–nineappointedbytheGovernor,oneappointedbytheStateSenate,oneappointedbytheState House of Representatives, and the State Treasurer and State Superintendent, who serve as ex-officio members. The Local Governmental Employees’ Retirement System is included in the Annual Comprehensive Financial Report (ACFR) for the State of North Carolina. The State’s ACFR includes financialstatementsandrequiredsupplementaryinformationforLGERS.Thatreportmaybe obtainedby writing to the Office of the State Controller, 1410 Mail Service Center, Raleigh, North Carolina 276991410,orbycalling(919)981-5454,oratwww.osc.nc.gov.
BenefitsProvided. LGERSprovidesretirementandsurvivorbenefits. Retirementbenefitsaredetermined as 1.85% of the member’saverage final compensation times the member’s yearsof creditable service. A member’saveragefinalcompensationiscalculatedastheaverageofamember’sfourhighestconsecutive yearsofcompensation. Planmembersareeligibletoretirewithfullretirementbenefitsatage65withfive years of creditable service, at age 60 with 25 years of creditable service, or at any age with 30 years of creditable service. Plan members are eligible to retire with partial retirement benefits at age 50 with 20 years of creditable service or at age 60 with five years of creditable service (age 55 for firefighters). Survivor benefits are available to eligible beneficiaries of members who die while in active service or within 180 days of their last day of service and who have either completed 20 years of creditable service regardless ofage(15yearsof creditable servicefor firefightersandrescue squadmemberswhoarekilled inthelineofduty)orhavecompletedfiveyearsofserviceandhavereachedage60. Eligiblebeneficiaries may elect to receive a monthly Survivor’s Alternate Benefit for life or a return of the member’s contributions. The plan does not provide for automatic post-retirement benefit increases. Increases are contingentuponactuarialgainsoftheplan.
LGERSplanmemberswhoareLEOsareeligible toretirewithfullretirementbenefitsatage55withfive years of creditable service as an officer, or at any age with 30 years of creditable service. LEO plan membersareeligible toretirewithpartialretirementbenefitsatage50with15yearsofcreditableservice as an officer. Survivor benefits are available to eligible beneficiaries of LEO members who die while in active serviceorwithin 180days oftheir last dayof service andwho also have eithercompleted20years of creditable service regardless of age, or have completed 15 years of service as a LEO and have reached age 50, or have completed five years of creditable service as a LEO and have reached age 55, or have completed 15 years ofcreditable service asa LEOif killed inthe lineofduty. Eligible beneficiaries may electtoreceiveamonthlySurvivor’sAlternateBenefitforlifeorareturnofthemember’scontributions.
Contributions. Contribution provisions are established by General Statute 128-30 and may be amended only by the North Carolina General Assembly. City of High Point employees are required to contribute 6% of their compensation. Employer contributions are actuarially determined and set annually by the LGERS Boardof Trustees. TheCity ofHigh Point’s contractually required contribution rate for the year ended June 30, 2024, was 14.10% of compensation for law enforcement officers and 12.85% for general employees and firefighters, actuarially determined as an amount that, when combined with employee contributions,isexpectedtofinancethecostsofbenefitsearnedbyemployeesduringtheyear. The ABC Board's contractually required contribution rate for the year ended June 30, 2023, was 19.69%. Contributions to the pension plan from the City of High Point and ABC Board were $12,693,355 and $408,948respectively,fortheyearendedJune30,2024.
Refunds of Contributions – City employees who have terminated service as a contributing member of LGERS,mayfileanapplicationforarefundoftheircontributions. Bystatelaw,refundstomemberswith at least five years of service include 4% interest. State law requiresa 60-day waitingperiod after service termination before the refund may be paid. The acceptance of a refund payment cancels the individual’s righttoemployercontributionsoranyotherbenefitprovidedbyLGERS.
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions
AtJune30,2024,theCityreportedaliabilityof$67,021,799foritsproportionateshareofthenetpension liabilityandthe ABCBoardreportedaliability of$1,309,053. The netpensionliabilitywasmeasuredas of June30, 2023. Thetotalpension liability usedto calculate the netpension liability wasdeterminedby anactuarialvaluationasofDecember31,2022. The totalpensionliabilitywasthenrolledforwardtothe measurement date of June 30, 2023 utilizing update procedures incorporating the actuarial assumptions. The City’s proportion of the net pension liability was based on a projection of the City’s long-term share offuturepayrollcoveredbythepensionplan,relativetotheprojectedfuturepayrollcoveredbythepension planofallparticipatingLGERSemployers,actuariallydetermined. AtJune30,2023(measurementdate), the City’s proportionwas1.01194%,whichwas adecrease of 0.01614% fromits proportion measuredas ofJune30,2022.TheABCBoard’sproportionwas0.01977%.
FortheyearendedJune30,2024,theCityrecognizedpensionexpenseof$19,134,064andtheABCBoard recognized pension expense of $410,635. At June 30, 2024, the City reported deferred outflows of resourcesanddeferredinflowsofresourcesrelatedtopensionsfromthefollowingsources:
DeferredOutflows ofResources DeferredInflows ofResources
Differencesbetweenexpectedandactualexperience7,468,213 $ $160,777 Changesofassumptions2,848,040Netdifferencebetweenprojectedandactualearningson pensionplaninvestments17,937,967ChangesinproportionanddifferencesbetweenCity contributionsandproportionateshareofcontributions286,462617,584 Citycontributionssubsequenttothemeasurementdate12,693,355Total41,234,037 $ $778,361
$12,693,355 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a decrease of the net pension liabilityintheyearendedJune30,2025. Otheramountsreportedasdeferredoutflowsofresourcesrelated topensionswillberecognizedinpensionexpenseasfollows:
YearendedJune30:
20259,995,128 $ 20265,047,948 202711,960,734 2028758,511
Total27,762,321 $
The ABC Board reported deferred outflows of resource and deferred outflows and inflows of resources relatedtopensionsfromthefollowingsources:
Differencesbetweenexpectedandactualexperience145,867 $ $3,140 Changesofassumptions55,627Netdifferencebetweenprojectedandactualearningson pensionplaninvestments350,360ChangesinproportionanddifferencesbetweenBoard contributionsandproportionateshareofcontributions35,07357
Boardcontributionssubsequenttothemeasurementdate232,150Total819,077 $ $3,197
Amounts totaling$232,150reported as deferred outflows of resources related to pensions resulting from Boardcontributions subsequent to the measurement date, will be recognized asa decrease ofthe netpensionassetintheyear endedJune 30,2025.Other amounts reported asdeferred outflows (inflows) of resources relatedto pensions willberecognized inpensionexpenseasfollows:
YearendedJune30: 2025229,830 $ 2026102,967 2027236,118 202814,815 Total583,730 $
Actuarial Assumptions. The total pension liability in the December 31, 2021 actuarial valuation was determinedusingthefollowingactuarialassumptions,appliedtoallperiodsincludedinthemeasurement:
Inflation2.50%
Salaryincreases3.25%to8.25%,includinginflationand productivityfactor
Investmentrateofreturn6.5%percent,netofpensionplaninvestment expense,includinginflation
The plan currently uses mortality tables that vary by age, gender, employee group (i.e., general, law enforcementofficer)andhealthstatus(i.e.disabledandhealthy). Thecurrentmortalityratesarebasedon published tables and based on studies that cover significant portions of the U.S. population. The healthy mortalityratesalsocontainaprovisiontoreflectfuturemortalityimprovements.
The actuarial assumptions used in the June 30, 2022 valuation were based on the results of an actuarial experiencestudyfortheperiodJanuary1,2016throughDecember31,2020.
Future ad hoc COLA amounts are not considered to be substantively automatic and are, therefore, not includedinthemeasurement.
The projected long-term investment returns and inflation assumptions are developed through review of current and historical capital markets data, sell-side investment research, consultant whitepapers, and historical performance of investment strategies. Fixed income return projections reflect current yields acrosstheU.S.Treasuryyieldcurveandmarketexpectationsofforwardyieldsprojectedandinterpolated formultipletenorsandovermultipleyearhorizons.
Globalpublicequityreturnprojectionsareestablishedthroughanalysisoftheequityriskpremiumandthe fixed income return projections. Other asset categories and strategies’ return projections reflect the foregoingandhistoricaldataanalysis. Theseprojectionsarecombinedtoproducethelong-termexpected rateofreturnbyweightingtheexpectedfuturerealratesofreturnbythetargetassetallocationpercentage andbyaddingexpectedinflation. Thetargetallocationandbestestimatesofarithmeticrealratesofreturn foreachmajorassetclassasofJune30,2024aresummarizedinthefollowingtable:
AssetClassTargetAllocation
Long-TermExpected RealRateofReturn
Theinformationaboveisbasedon30-yearexpectationsdevelopedwiththeconsultingactuaryfortheasset, liability,andinvestmentpolicystudyfortheNorthCarolina RetirementSystems,includingLGERS. The long-termnominalratesofreturnunderlyingtherealratesofreturnarearithmeticannualizedfigures. The realrates of return are calculated from nominal rates by multiplicatively subtracting a long-term inflation assumptionof 2.25%. Allratesofreturnandinflationareannualized.
Discount rate. Thediscountrateusedtomeasurethetotalpensionliabilitywas6.50%. Theprojectionof cashflowsusedtodeterminethediscountrateassumedthatcontributionsfromplanmemberswillbemade at the currentcontribution rate and thatcontributions fromemployerswill be made atstatutorily required rates, actuarially determined. Based on these assumptions, the pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments of the current plan members. Therefore,the long-termexpectedrateofreturnonpensionplaninvestmentswasappliedto allperiodsof projectedbenefitpaymentstodeterminethetotalpensionliability.
Sensitivity of the City’s proportionate share of the net pension liability to changes in the discount rate. The following presents theCity’s proportionate share ofthenet pension liability calculated using the discount rateof6.50%,aswellaswhattheCity’sproportionateshareofthenetpensionassetornetpensionliability would be if it were calculated using a discount rate that is one percentage point lower (5.50%) or one percentagepointhigher(7.50%)thanthecurrentrate.
City'sproportionateshareofthenet pensionliability(asset)116,112,633$67,021,799$26,605,625 $
Pension plan fiduciary net position. Detailed information about the pension plan’s fiduciary net position isavailableintheseparatelyissuedAnnualComprehensiveFinancialReport(ACFR)fortheStateofNorth Carolina.
b.LawEnforcementOfficers’SpecialSeparationAllowance
1. PlanDescription.
TheCityofHighPointadministersapublicemployeeretirementsystem(the“SeparationAllowance”), asingle-employerdefinedbenefitpensionplanthatprovidesretirementbenefitstotheCity’squalified swornlawenforcementofficersundertheageof62whohavecompletedatleast30yearsofcreditable service or have attained 55 years of age and have completed five or more years of creditable service. The SeparationAllowanceisequalto.85%oftheannualequivalentofthebase rateofcompensation mostrecentlyapplicable totheofficerforeachyearofcreditable service. Theretirementbenefitsare not subjectto any increases in salary or retirement allowances thatmay be authorizedby the General Assembly. Article 12D of G.S. Chapter 143 assigns the authority to establish and amend benefit provisionstotheNorthCarolinaGeneralAssembly.
TheSeparationAllowancecoversallfull-timelawenforcementofficersoftheCity. AtDecember31, 2020,theSeparationAllowance’smembershipconsistedof:
2. SummaryofSignificantAccountingPolicies.
BasisofAccounting. TheCityhaschosentofundtheSeparationAllowanceonapay-as-you-gobasis. Pension expenditures are made from the General Fund, which is maintained on the modified accrual basis of accounting. Benefits are recognized when due and payable in accordance with terms of the plan.
TheSeparationAllowancehasnoassetsaccumulatedinatrustthatmeetsthecriteriawhichare outlinedinGASBStatement73.
3. ActuarialAssumptions
TheentryageactuarialcostmethodwasusedintheJune30,2023valuation.Thetotalpensionliability in the June 30, 2023 actuarial valuation was determined using the following actuarial assumptions, appliedtoallperiodsincludedinthemeasurement:
The discount rate is based on the yield of the Bond Buyer 20-Bond GO index as of December 31, 2021.Mortality rates arebased on the Pub-2010Mortality tables, projected forwardgenerationally fromthevaluationdateusingMP-2019.
4. Contributions.
The City is required by Article 12D ofG.S. Chapter 143to provide these retirement benefits and has chosen to fund the amounts necessary to cover the benefits earned on a pay as you go basis through appropriations made in the General Fund operating budget. There were no contributions made by employees. TheCity’sobligation to contribute to this plan is establishedandmaybeamendedbythe North Carolina GeneralAssembly. The City has chosento setaside additional funds for future costs within the fund balance in the General Fund. During the fiscal year ended June 30, 2023, the City committedanadditional$50,000towardthereductionoftheaccruedactuarialliability Administration costsoftheSeparationAllowancearefinancedthroughinvestmentearnings.TheCitypaid$1,260,734 asbenefitscamedueforthereportingperiod.
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions
AtJune30,2024,theCityreportedatotalpensionliabilityof$17,620,729.Thetotalpensionliability wasmeasuredasofDecember31,2023basedonaJune30,2022actuarialvaluation.Thetotalpension liabilitywasthenrolledforwardtothemeasurementdateofJune30,2022utilizingupdateprocedures incorporatingtheactuarialassumptions.FortheyearendedJune30,2024,theCityrecognizedpension expenseof$2,079,363.
ofResources DeferredInflows ofResources
.
Benefitpaymentsandadministrativeexpenses subsequenttothemeasurementdate
Differencesbetweenexpectedandactualexperience1,466,423 $ $Changesofassumptions1,756,0871,782,188 689,596Total3,912,106 $ $1,782,188
$689,596 reported as deferred outflows of resources related to pensions resulting from benefit payments made and administrative expenses incurred subsequent to the measurement date will be recognizedasadecreaseofthetotalpensionliabilityinthe yearendedJune 30,2025 Otheramounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will berecognizedinpensionexpenseasfollows:
YearendedJune30:
recognizedas anincreaseto Pension Expense 20251,501,708(636,041)865,667 20261,247,893(636,041)611,852 2027413,317(510,106)(96,789) 202859,592-59,592 $3,222,510(1,782,188)$1,440,322 $
Sensitivity of the City’s total pension liability to changes in the discount rate. The following presents theCity’stotalpensionliabilitycalculatedusingthediscountrateof3.77%,aswellaswhattheCity’s
total pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower(2.77%)or1-percentage-pointhigher(4.77%)thanthecurrentrate:
Totalpensionliability19,042,158$17,620,729$16,330,874 $ 2024
ScheduleofChangesinTotalPensionLiability LawEnforcementOfficers'SpecialSeparationAllowance
Beginnngbalanceoftotalpensionliability17,352,115 $ Changesfortheyear:
Servicecost494,396
Interestonthetotalpensionliability677,388
ChangesofBenefitsTermsDifferencesbetweenexpectedandactual 7,747 Changesofassumptionsorotherinputs349,817 Benefitpayments(1,260,734)
Endingbalanceofthetotalpensionliability17,620,729 $
Theplancurrentlyusesmortalitytablesthatvarybyage,andhealthstatus(i.e.,disabledandhealthy). The current mortality rates are based on published tables and based on studies that cover significant portions of the U.S. population. The healthy mortality rates also contain a provision to reflect future mortalityimprovements.
TheactuarialassumptionsusedintheJune30,2023valuationwerebasedontheresultsofanactuarial experiencestudyforthefive-yearperiodendingDecember31,2019.
Total Expense, Liabilities, and Deferred Outflows and Inflows of Resources of Related to Pensions
Followingisinformationrelatedtotheproportionateshareandpensionexpenseforallpensionplans: LGERSLEOSSATotal
PensionExpense
$19,134,0642,079,363$21,213,427 $ PensionLiability67,021,79917,620,72984,642,528
Proportionateshareofthenetpensionliability1.0119%n/a
DeferredofOutflowsofResources
Differencesbetweenexpectedandactualexperience7,468,2131,466,4238,934,636
Changesofassumptions 2,848,0401,756,0874,604,127
Netdifferencebetweenprojectedandactualearningsonplan investments 17,937,967-17,937,967
Changesinproportionanddifferencesbetweencontributions andproportionateshareofcontributions 286,462-286,462
Contributions,benefitpaymentsandadministrativecostspaid subsequenttothemeasurementdate 12,693,355689,59613,382,951
DeferredofInflowsofResources
Differencesbetweenexpectedandactualexperience160,777-160,777 Changesofassumptions-1,782,1881,782,188
Changesinproportionanddifferencesbetweencontributions andproportionateshareofcontributions 617,584-617,584
c. SupplementalRetirementIncomePlanforLawEnforcementOfficers
PlanDescription. TheCitycontributestotheSupplementalRetirementIncomePlanforLawEnforcement Officers(Plan),adefinedcontributionpensionplanadministeredbytheDepartmentofofficersemployed bytheCity. Article 5ofG.S. Chapter135assignstheauthority toestablishandamendbenefitprovisions to the North Carolina General Assembly. The Plan is included in the Annual Comprehensive Financial Report(ACFR)fortheStateofNorthCarolina. TheState’sACFRincludesthepensiontrustfundfinancial statements for the Internal Revenue Code Section 401(k) plan that includes the Plan. That report may be obtainedbywritingtotheOfficeoftheStateController,1410MailServiceCenter,Raleigh,NorthCarolina 27699-1410,orbycalling(919)981-5454.
Funding Policy. Article 12E of G.S. Chapter 143 requires the City to contribute each month an amount equal to five percent of each law enforcement officer’s salary, and all amounts contributed are vested immediately. Inaddition,thelawenforcementofficersmaymakevoluntarycontributionstotheplan.
Contributions made by the City for the year ended June 30, 2024 were $824,293. No amounts were forfeited.
d. Firefighters’andRescueSquadWorkers’PensionFund
Plan Description. The State of North Carolina contributes, on behalf of the City of High Point, to the Firefighters’ and Rescue Squad Workers’ Pension Fund (FRSWPF), a cost-sharing multiple-employer defined benefit pension planwith aspecialfunding situation administeredbythe State ofNorthCarolina. FRSWPFprovidespensionbenefitsforeligiblefireandrescuesquadworkersthathaveelectedtobecome members of the fund. Article 86 of G.S. Chapter 58 assigns the authority to establish and amend benefit provisions to the North Carolina General Assembly. Management of the plan is vested in the LGERS BoardofTrustees,whichconsistsof13members–nine appointedbytheGovernor,oneappointedbythe state Senate, one appointed by the state House of Representatives, and the State Treasurer and State Superintendent,whoserveasex-officiomembers. TheFirefighter’sandRescueSquadWorkers’Pension
Fund is included in theAnnualComprehensiveFinancial Report(ACFR) forthe State ofNorth Carolina. The State’s ACFR includes financial statements and required supplementary information for the Firefighter’s and Rescue Squad Workers’ Pension Fund. That report may be obtained by writing to the OfficeoftheStateController,1410MailServiceCenter,Raleigh,NorthCarolina27699-1410,orbycalling (919)981-5454,oratwww.osc.nc.gov.
Benefits Provided. FRSWPFprovidesretirementandsurvivorbenefits. The presentretirementbenefitis $170 per month. Plan members are eligible to receive the monthly benefit at age 55 with 20 years of creditable service as a firefighter or rescue squad worker and have terminated duties as a firefighter or rescue squad worker. Eligible beneficiaries of members who die before beginning to receive the benefit willreceive the amount paid by the memberand contributions paid on the member’sbehalf into the plan. Eligible beneficiaries of memberswhodie after beginning to receive benefits will be paid the amount the membercontributedminusthebenefitscollected.
Contributions. Plan members are required to contribute $10 per month to the plan. The State, a nonemployer contributor, funds the plan through appropriations. The City does not contribute to the plan. Contribution provisions are established by GeneralStatute 58-86 and may be amended only by the North CarolinaGeneralAssembly. ForthefiscalyearendingJune30,2024theStatecontributed$19,702,208to theplan. TheCityofHighPoint’sproportionateshareoftheState’scontributionis$78,776.
Refunds of Contributions –Planmemberswhoarenolongereligibleorchoosenottoparticipateintheplan may file an application for a refund of their contributions. Refunds include the member’s contributions and contributions paid by others on the member’s behalf. No interest will be paid on the amount of the refund. The acceptance of a refund payment cancels the individual’s right to employer contributions, or anyotherbenefitprovidedbyFRSWPF.
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions
AtJune30,2024,theCityreportednoliabilityforitsproportionateshareofthenetpensionliability,asthe State provides 100% pension support to the City through its appropriations to the FRSWPF. The total portionofthenetpensionliabilitythatwasassociatedwiththeCityandsupportedbytheStatewas$38,512. The net pension liability was measured as of June 30, 2023. The total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of December 31, 2022. The total pension liability was then rolled forward to the measurement date of June 30, 2023 utilizing update proceduresincorporatingtheactuarialassumptions. TheCity’sproportionofthenetpensionliabilitywas based on a projection of the City’s long-term share of contributions to the pension plan relative to the projected contributions of all participating employers. As the City is not projected to make any future contributionstotheplan,itsproportionateshareatJune30,2023andatJune30,2024was0%.
FortheyearendedJune30,2024,theCityrecognizedpensionexpenseof$39,938andrevenueof$39,938 for support provided by the State. At June 30, 2024, the City reported no deferred outflows of resources andnodeferredinflowsofresourcesrelatedtotheFRSWPF
Actuarial Assumptions. The total pension liability in the December 31, 2022 actuarial valuation was determinedusingthefollowingactuarialassumptions,appliedtoallperiodsincludedinthemeasurement: Inflation
SalaryincreasesNotapplicable
Investmentrateofreturn6.5%,netofpensionplaninvestmentexpense, includinginflation
Formoreinformationregardingactuarialassumptions,includingmortalitytables,theactuarialexperience study, the consideration of future ad hoc COLA amounts, the development of the projected long-term investmentreturns, and theassetallocation policy, referto the discussionof actuarialassumptions for the LGERSplaninSectiona.ofthisnote.
Discount rate. Thediscountrateusedtomeasurethetotalpensionliabilitywas6.50%. Theprojectionof cashflowsusedtodeterminethediscountrateassumedthatcontributionsfromplanmemberswillbemade at the currentcontribution rate and thatcontributions fromemployerswill be made atstatutorily required rates, actuarially determined. Based on these assumptions, the pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments of the current plan members. Therefore,the long-termexpectedrateofreturnonpensionplaninvestmentswasappliedto allperiodsof projectedbenefitpaymentstodeterminethetotalpensionliability.
Pension plan fiduciary net position. Detailed information about the pension plan’s fiduciary net position isavailableintheseparatelyissuedACFRfortheStateofNorthCarolina.
e. OtherPostemploymentBenefits-HealthCareBenefitPlan
Plan Description. Under the terms of a City resolution, the City administers a single-employer defined benefitHealthcareBenefitsPlan(theHCBPlan).TheCityCouncilhastheauthoritytoestablishandamend the benefit terms and financing requirements. No assets are accumulated in a trust that meets the criteria inparagraph4ofGASBStatement75.
BenefitsProvided.TheCityprovidescontinuationofmedicalinsurancecoveragetoemployeeswhoretire under the North Carolina Local Governmental Employees’ Retirement System (NCLGERS) eligibility termsatthesametimetheyendtheircontinuousservicetotheCity. Theretireeandhisorherspousemay elect to receive health and dental coverage until the participant becomes Medicare-eligible. The retiree assumes the full blended premium of the healthcare coverage plan as may be renegotiated and adjusted periodically. The City Council may amend the HCB Plan in its discretion. A separate report was not issuedfortheplan.
The ABC Board administers its own single employer defined benefit healthcare plan (the Retiree Health Plan) which provides its retirees who have a minimum 25 completed years of service to the ABC Board and who are not eligible for Medicare benefits the opportunity to remain enrolled in its group health insuranceplan. TheABCBoardpaysthefullcostofcoverageforthosebenefitsthroughprivateinsurance. AseparatereportwasnotissuedfortheABCBoard’sPlan.
Membership of the HCB Plan at June 30, 2022, the date of the latest actuarial valuation consisted of the following:
TotalOPEBLiability
The City’s totalOPEB liability of $13,898,347was measured as ofJune30,2023 andwasdetermined by anactuarialvaluationdateofJune30,2022. TheABCBoard’stotalOPEBliabilityis$384,437. Actuarial assumptions and other inputs
The total OPEB liability in the June 30, 2022 actuarial valuation was determined using the following actuarialassumptionsandotherinputs,appliedtoallperiodsincludedinthemeasurementunlessotherwise specified:
HeathcarecosttrendTrends(pre-medicare)7.50%for2022decreasingtoanultimate rateof4.50%by2030
ThediscountrateisbasedontheJuneaverageoftheBondBuyer20-BondGOIndexpublishedweeklyby TheBondBuyer.
ChangesintheTotalOPEBLiability
CityofHighPointABCBoard
BalanceatJuly1,2023(July1,2022forABCBoard)13,418,195$316,739 $
Changesfortheyear
ServiceCost669,77132,660
Interest487,06012,369
ChangesofBenefitterms--
Differencesbetweenexpectedandactualexperience(7,218)11,407
Changesinassumptionsorotherinputs(239,221)11,262
Benefitpayments(430,240)-
NetChanges480,15267,698
BalanceatJune30,2023(June30,2023forABCBoard)13,898,347$384,437 $
Changesinassumptionsandotherinputsreflectachangeinthediscountratefrom3.69%to3.86%dueto achangeintheMunicipalBondRate.
Mortality rates were based on the RP-2014 Total Data Set for Healthy Annuitants Mortality Table with adjustmentsforLGERSexperienceandgenerationalmortalityimprovementsusingScaleMP-2015.
The actuarial assumptions used in the June 30, 2023 valuation were based on the results of an actuarial experiencestudyfortheperiodJanuary2015throughDecember2019.
Sensitivity of the total OPEB liability to changes in the discountrate. ThefollowingpresentsthetotalOPEB liability of the City, as well as what the City’s total OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (2.86%) or 1-percentage-point higher (4.86%) than the currentdiscountrate:
TotalOPEBliability15,418,451$13,898,347$12,560,576 $
Sensitivity of the total OPEB liability to changes in the healthcare cost trend rates. The following exhibit presents the total OPEB liability of the City, calculated using the health care costs trend rates, as well as whattheCity’sOPEBliabilitywouldbeifitwerecalculatedusingahealthcarecosttrendatethatis 1-percentagepointloweror1-percentagepointhigherthanthecurrentrate.
TotalOPEBliability12,322,135$13,898,347$15,768,022 $
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
FortheyearendedJune30,2024,theCityrecognizedOPEBexpenseof$1,023,305.AtJune30,2024,the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the followingsources:
CityofHighPointABCBoard
DeferredDeferredDeferredDeferred ofResourcesofResourcesofResourcesofResources
Differencesbetweenexpectedandactualexperience$906,229$1,369,131$67,342$44,543
Changesofassumptions 1,662,4491,014,70855,14851,768
Benefitpaymentsandadministrativecostsmade
subsequenttothemeasurementdate607,790--Total $3,176,4682,383,839$122,490$96,311 $
$607,790 reported as deferred outflows of resources related to pensions resulting from OPEB payments made and administrative expenses incurred subsequent to the measurement date will be recognized as a decreaseofthetotalOPEBliabilityintheyearendedJune30,2025.
Amounts reported as deferred outflows of resources and deferred inflows of resources related to other postemploymentbenefitswillberecognizedinOPEBexpenseasfollows.
FortheMeasurementPeriodEndedEndedJune30:
CityofHighPointABCBoard 2025(140,525)420 2025(111,997)1,448 202675,6171,448 2027309,2661,989 2028192,11312,157 Thereafter(139,635)8,717 $184,83926,179 $
3. OtherPost-EmploymentBenefits
TheCityhaselectedtoprovidedeathbenefitstoemployeesthroughtheDeathBenefitPlanformembersofthe Local Governmental Employees' Retirement System (Death Benefit Plan), a multiple-employer, Stateadministered,cost-sharingplanfundedonaone-yeartermcostbasis.Thebeneficiariesofthoseemployeeswho dieinactiveserviceafteroneyearofcontributingmembershipinthesystem,orwhodiewithin180daysafter retirementorterminationofserviceandhaveatleastoneyearofcontributingmembershipserviceintheSystem atthetimeofdeathareeligiblefordeathbenefits. Lumpsumdeathbenefitpaymentstobeneficiariesareequal totheemployee's12highestmonths’salaryinarowduringthe24monthsbeforetheemployee'sdeath,butthe benefit may not exceed $50,000 or be less than $25,000. Because all death benefit payments are made from theDeathBenefitPlanandnotbytheCity,theCitydoesnotdeterminethenumberofeligibleparticipants.
TheCityhasnoliabilitybeyondthepaymentofmonthlycontributions. ThecontributionstotheDeathBenefit Plan cannot be separated between the postemployment benefit amount and the other employment benefit amount. Contributionsaredeterminedasapercentageofmonthlypayrollbaseduponratesestablishedbythe State. Separate rates are setfor employeesnotengagedin law enforcement and for law enforcementofficers. TheCityconsidersthesecontributionstobeimmaterial.
The City also provides employees with additional group term life insurance equal to the employee’s annual salary as measured on January 1 of each year. The City has no liability beyond the payment of monthly contributions.
4. DeferredOutflowsandInflowsof Resources
TheCityhasseveraldeferredoutflowsofresourcescomprisedofthefollowing: SourceAmount
LEOSSAbenefitpaymentsincurrentfiscalyear689,596 $
ContributionsforLGERSmadesubsequentto measurementdate12,693,355
OPEBbenefitpaymentsmadesubsequentto measurementdate607,790
Differencesbetweenexpectedandactualexperience9,840,865 Changesofassumptions6,266,576
Netdifferencebetweenprojectedandactual17,937,967
Changesinproportionanddifferencesbetweeenemployer contributionsandproporitionateshareofcontributions286,462 Amortizedfinancingcostsofblendedcomponentunit40,500
Total48,363,111 $
Deferredinflowsofresourcesatyear-endiscomprisedofthefollowing:
Source Statementof NetPosition Governmental FundsBalance Sheet
Prepaidtaxes(GeneralFund)1,837$1,837 $ TaxesReceivable,lesspenalties(GeneralFund)-871,510
GrantandMiscellaneousReceivable(GeneralFund)-276,957 LeaseReceivable(GeneralFund)6,315,4346,315,434 GrantandMiscellaneousReceivable(GeneralCapitalProjects Fund)-150,000
GrantandMiscellaneousDeferredRevenue(Non-major governmentalfunds)-2,021,883
LeaseReceivable(Non-majorFunds)1,441,1071,441,107 Developerpondmaintenancefunds2,584,458Changesinassumptions1,529,908Differencesbetweenexpectedandactualexperience2,796,896Changesinproportionanddifferencesbetweeenemployer contributionsandproporitionateshareofcontributions617,584Deferredgainonrefunding(Water&Sewer)2,244,007LeaseReceivable(Water&Sewer)38,623Deferredgainonrefunding(Stormwater)193,523Total17,763,377$11,078,728 $
5. ClosureandPostclosureCareCosts-KerseyValleyLandfillFacilities
State and federal laws and regulations require the City to place a final cover on its Kersey Valley Landfill Facilitieswhenitstopsacceptingwasteandtoperformcertainmaintenanceandmonitoringfunctionsatthesite for thirty years after closure. Although closure and postclosure care costs will be paid only near or after the datethatthelandfillstopsacceptingwaste,theCityreportsaportionoftheseclosureandpostclosurecarecosts as an operating expense in each period based on landfill capacity used as of each balance sheet date. The
$15,854,636reportedaslandfillclosureandpostclosurecareliabilityatJune30,2024 representsacumulative amount reported to-date based on the two existing lined municipal solid waste landfill units – Area 1 (Phases 1, 2, 3,and3A)andArea 2(Phases4,5A,and 5B)andArea 3(Phase6).The Area1 landfill unitis currently near capacity and a partial closure has recently been completed. The Area 2 and Area 3 landfill units are currently active. Current capacity used is 85.31%. The City will recognize the remaining estimated costs of closureandpostclosureasnewphasesaredeveloped.Theseamountsarebasedonwhatitwouldcosttoperform allclosureandpostclosurecarein2024.Actualcostsmaybehigherduetoinflation,changesintechnology,or changesinregulations.
TheCityhasmettherequirementsofalocalgovernmentfinancialtestthatisoneoptionunderStateandfederal laws and regulations that helps determine if a unit is financially able to meet closure and postclosure care requirements.
At June 30, 2024, the City has accumulated $15,854,636 for future payment of closure and postclosure care costs. The City expects that future inflation costs will be paid from interest earnings on these annual contributions. However, if interest earnings are inadequate or additional postclosure care requirements are determined(duetochangesintechnologyorapplicablelawsorregulations,forexample),thesecostsmayneed tobecoveredbychargestofuturelandfillusers.
6. Commitments
Commitments for the purchase of goods and services and for the construction and acquisition of assets are as followsatJune30,2024:
GeneralFund4,823,296 $ InternalServiceFund171,618 $
DebtService6,000
SpecialRevenue3,004,633
GeneralCapitalProjects9,054,673
ProprietaryFunds47,946,735
$65,006,955
Amounts shown above for the General, Special Revenue, and General Capital Project funds represent encumbrancesandarecomponentsofrestrictedfundbalancesasdescribedinNote1.F.14.
7. RiskManagement
TheCityisexposedtovariousrisksoflossrelatedtotorts;theftof,damageto,anddestructionofassets;errors andomissions;injuriestoemployees;andnaturaldisasters. TheCityprotectsitselffrompotentiallossthrough a combination of risk-sharing participation, purchase of commercial insurance for primary and/or excess liability coverage and self-insured risk retention. Self-insured risks are primarily for health, general, professional,flood,lawenforcement,vehicle,andundergroundstoragetankliabilities.
Claims liabilities are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. Liabilities include amounts for material claims that have been incurred but are not reported(IBNRs),basedonactuarialcomputations.Settledclaimshavenotexceededself-retainedorpurchased insurancecoverageinanyofthepastthreefiscalyearsandtherehavebeennosignificantreductionsininsurance coverageintheprioryear.
The City has several properties located in various “at risk” categories as identified by the Federal Emergency ManagementAgency. Consequently,theCitycarriescommercialfloodinsuranceforaggregatecoveragelimits of $250 million and for several specific properties at $2 million per structure. Deductibles for specific loss rangefrom$100,000to$500,000perlocationandcanbecoveredunderthegeneralself-insuredarrangements asdiscussedabove.
In accordance with G.S. 159-29, the City’s employees that have access to $100 or more at any given time of the City’s funds are performance bonded through a commercial surety bond. The Financial Services Director is individually bonded for $1,000,000. All other employees that have access to funds are bonded under a blanket bond for $100,000.
8. Claims and Judgments
At June 30, 2024, the City was a defendant to various lawsuits. In the opinion of the City's management and the City attorney, the ultimate effect of these legal matters will not have a material adverse effect on the City's financial position.
The City has partial responsibility for the costs of investigation and remediation of contaminated soil and groundwater at its former Riverdale Road landfill site, which was closed in 1994. During the 1980s, a private company had used a site adjacent to the landfill for recycling chemicals, and its operations resulted in soil and groundwater contamination. Groundwater from the adjacent site has commingled with groundwater from the landfill site. In 2008, the City and the Potentially Responsible Parties (PRPs) for the adjacent site entered a Remedial Action Settlement Agreement with NC Department of Environmental Quality to conduct a joint cleanup of both sites. The City and the other PRPs reached agreement among themselves to share the cleanup costs, with the City responsible for 25% of those costs. The City is unable to estimate the duration or cost of the remediation atthistime. Estimated annual operating and maintenance costs are budgeted inthe City’s Solid Waste Fund.
9. Reconciliation of Claims Liability
Changes in the City’s worker’s compensation claims and healthcare claims liabilities are included in accounts payable on the Statement of Net Position and the balances during fiscal year 2024 are as follows. The City converted from commercial insurance to self insurance in FY2024.
Worker'sCompensationHealthcare
Balance,July1
Add:Incurredclaims(including)
$1,674,036$
IBNR'sandchangesinestimates744,12820,394,913
Deduct:Claimspayments (915,581)(19,837,479)
Balance,June30 $1,502,583557,434 $
10. Long-TermObligations
The General Government long-term debt will be liquidated with the use of funds from the General and Debt Service Funds. All Business-type activities long-term debt will be liquidated with the use of funds from their respectivefunds.Therearelimitationsandrestrictionscontainedinthevariousbondindentures.
a. Leases
TheCityhasenteredagreementstoleasecertainequipmentandabusstation.Theleaseagreementsqualify as other than short-termleases underGASB 87 and, therefore, have been recorded atthe presentvalue of thefutureminimumleasepaymentsasofthedateoftheirinception. YearEnding June30,PrincipalInterestPrincipalInterest
b. InstallmentPurchaseContracts
TheCityhasentereddirectplacementinstallmentpurchaseagreementstoacquirecertainequipment. These contractsaretypicallyfiveorten-yeartermwithquarterlyorsemi-annualpayments.Theprincipalsources of funding for these installment financing contracts are the General Fund and Internal Service Fund. The equipment(Fleetvehicles, public safety vehicles, realproperty, andpublic safetyequipment) are pledged ascollateralforthedebt.
Future annual debt service payments on installment purchase contracts as of June 30, 2024 including interestof$298,192isasfollows:
YearEndingGovernmentalGovernmental June30,ActivitiesPrincipalActivitiesInterest 2025.........................................................2,079,718118,031 2026.........................................................1,654,20080,889
c. GeneralObligationIndebtedness
GeneralObligationBonds
TheCity’sgeneralobligationbondsservicedbythegovernmentalfundswereissuedforavarietyofeligible purposesaspermittedbyNorthCarolinageneralstatutes,includingtransportation,publicsafety,recreation, libraries and public buildings. Those general obligation bonds issued to finance the construction of facilitiesutilizedintheoperationsoftheenterprisefundsandwhichitsresourcesareretiringisreportedas long-termdebtintherespectiveenterprisefund. Allgeneralobligationbondsarecollateralizedbythefull faith,credit,andtaxingpoweroftheCity.Intheeventofadefault,theCityagreestopaytothepurchaser, on demand, interest on any and all amounts due and owing by the City under the related agreements. Principal is payable annually in varying amounts through 2042. Principal and interest requirements will be provided by appropriation in the year in which they become due. At June 30, 2024, the City of High Point had $26,000,000 authorized but unissued bonds and a legal debt margin of approximately $1.022 million.
Servicedbythegovernmentalfunds:
$8,866,942Series2014Refundingbondsfortransportation,public buildings,recreation,libraryandfirefightingfacilitiesmaturingseriallyon March1through2027withinterestsemiannuallySeptember1andMarch 1atratesvaryingbetween2.5%-5.0%2,181,619 $
$6,115,000Series2014PublicImprovementbondsfortransportation, recreation,andfirefightingfacilitiesmaturingseriallyonMarch1 through2034withinterestsemiannuallySeptember1andMarch1at ratesvaryingbetween2.0%-4.0%3,050,000
$16,956,919Series2016PublicImprovementbondsfortransportation, recreation,library,andpublicbuildingsmaturingseriallyonMarch1 through2029withinterestsemiannuallySeptember1andMarch1at ratesvaryingbetween2.75%-5.0%
7,246,448
$6,600,000Series2018PublicImprovementbondsforpublicbuildings maturingseriallyonMarch1through2039withinterestsemiannually September1andMarch1atratesvaryingbetween3.0%-4.0%4,950,000
$10,566,874Series2020RefundingPublicImprovementbondforstreets andpublicbuildingsmaturingseriallyonJune1through2030with interestsemiannuallyDecember1andJune1at1.7%6,565,949
$5,300,000Series2022APublicImprovementbondforparksand recreationmaturingseriallyonMarch1through2032withinterest semiannuallySeptember1andMarch1at5%4,240,000
$26,000,000Series2022BPublicImprovementbondforparksand recreation,transportation,andaffordablehousingmaturingseriallyon March1through2042withinterestsemiannuallySeptember1andMarch 1at3.25%-5.0%23,930,000
$4,598,550Series2022CRefundingPublicImprovementbondforstreets andsidewalksmaturingseriallyonMarch1through2032withinterest semiannuallyMarch1andSeptember1at1.96%2,922,924
$5,425,000Series2024PublicImprovementbondforstreetsand sidewalkswithprincipalpaymentsdueannualyMarch1,2025toMarch 1,2031withinterestsemiannuallySeptember1andMarch1at4.3%5,425,000 Totalservicedbygovernmentalfunds60,511,940
ServicedbyEnterpriseFunds:
Water&SewerFund
$1,624,747Series2022CRefundingbondsforwaterandsewermaturing seriallyonMarch1through2032withinterestsemiannuallyMarch1and September1at1.96%600,875 TotalservicedbyWater&SewerFund600,875
StormWaterFund
$1,233,058Series2014Refundingbondsforstormwaterfacilities maturingseriallyonMarch1through2027withinterestsemiannually September1andMarch1atratesvaryingbetween2.5%-5.0%303,381
$3,413,081Series2016Refundingbondsforstormwaterfacilities maturingseriallyonMarch1through2029withinterestsemiannually September1andMarch1atratesvaryingbetween2.25%-5.0%1,458,559
$2,591,126Series2020Refundingbondsforstormwaterfacilities maturingseriallyonJune1through2030withinterestsemiannually December1andJune1at1.7%1,610,051
$857,703Series2022CRefundingbondsforstormwaterfacilities maturingseriallyonMarch1through2032withinterestsemiannually March1andSeptember1at1.96%317,201 TotalservicedbyStormWaterFund3,689,192 Premiumongeneralobligationbonds2,331,462 Totalgeneralobligationbonds,netofdiscounts67,133,469 $
AnnualDebtServiceRequirements:
AnnualdebtservicerequirementstomaturityfortheGeneralObligationbondsareasfollows: GovernmentalActivities-BondsBusiness-TypeActivitiesBonds YearEndingGeneralObligationWaterandSewerStormWater June30,PrincipalInterestPrincipalInterestPrincipalInterest 20257,130,798$2,157,877$342,463$11,777$859,738$94,970 $ 20267,026,1781,918,782258,4125,065816,41168,176 20276,686,4221,663,928--674,57844,856 20286,086,4341,438,060--596,56628,744 20295,231,0361,226,855--429,97114,344 2030-203414,181,0723,955,100--311,9285,303 2035-20399,475,0001,799,790---2040-20424,695,000326,694----
Total60,511,940$14,487,086$600,875$16,842$3,689,192$256,393 $
d. LimitedObligationBonds:
The City’s limited obligation bonds serviced by the governmental funds were issued for a multi-use facility stadium and Police Department Headquarters and Communication Center. Both properties serve as collateral for the bonds. Principal is payable annually in varying amounts through 2040. Principal and interest requirementswillbeprovidedbyappropriationintheyearinwhichtheybecomedue.
Servicedbythegovernmentalfunds:
$35,000,000Series2018LimitedObligationbondsforStadiumFacility onFebruary1,2018through2039withinterestsemiannuallyOctober 1andApril1atratesvaryingbetween2.31%-3.78%27,385,000 $
$18,175,000Series2020LimitedObligationbondsforPolice DepartmentHeadquartersandCommunicationCenterwithprincipal paymentsdueannualyMay1,2022toMay1,2040withinterest semiannuallyOctober1andApril1at2.15%15,304,000 Totalservicedbygovernmentalfunds42,689,000 $
AnnualdebtservicerequirementstomaturityfortheLimitedObligationbondsareasfollows:
AnnualDebtServiceRequirements:
YearEnding
June30,PrincipalInterest 20252,547,000 $ $1,278,945 20262,567,0001,209,486 20272,597,0001,137,878 20282,632,0001,063,591 20292,657,000986,647 2030-203413,833,0003,683,999 2035-203914,900,0001,384,900 2040956,00020,554
Total42,689,000 $ $10,766,000
e. RevenueBonds
ServicedbyEnterpriseFunds: Water&SewerFund
$37,640,000Series2014EnterpriseSystemRevenueRefundingBonds forwaterandsewermaturingseriallybeginningNovember1,2016 through2036andtermbondsmaturingonNovember1,2037,2038,and 2039.ThebondspayinterestsemiannuallyNovember1andMay1at ratesvarying3.00%-5.00%.AllmaturitiesbeyondNovember1,2024 ($27,775,000)havebeenlegallydefeasedwiththeissuanceofSeries 2021B.1,315,000
$50,575,000Series2016EnterpriseSystemRevenueRefundingBonds forwaterandsewermaturingseriallybeginningNovember1,2017 through2033andtermbondsmaturingonNovember1,2037.The bondspayinterestsemiannuallyNovember1andMay1atratesvarying 3.00%-5.00%35,205,000
$47,610,000Series2019EnterpriseSystemRevenueBondsforwater andsewermaturingseriallybeginningNovember1,2020through2040 andtermbondsmaturingonNovember1,2043.Thebondspayinterest semiannuallyNovember1andMay1atratesvarying3.00%-5.00%42,145,000
$30,542,000Series2021BEnterpriseSystemRevenueRefundingBonds forwaterandsewermaturingseriallybeginningNovember1,2023 through2039.ThebondspayinterestsemiannuallyNovember1and May1atratesvarying2.75%.Thisrefundingresultedinadeferredloss of$2,657,000amortizedovertheremaininglifeoftheissuance.30,187,000
$34,755,000Series2022EnterpriseSystemRevenueBondsforwater andsewermaturingseriallybeginningNovember1,2023through2042 andtermbondsmaturingonNovember1,2046.Thebondspayinterest semiannuallyNovember1andMay1atratesvarying4.00%-5.00%33,970,000
$20,386,000Series2022BEnterpriseSystemRevenueRefundingBonds forwaterandsewermaturingseriallybeginningNovember1,2022 through2031.ThebondspayinterestsemiannuallyNovember1and May1atratesvarying1.59%.
17,997,000
TotalservicedbyWater&SewerFund160,819,000 Premiumsonrevenuebonds7,925,590 Totalrevenuebonds,netofpremiums168,744,590 $
TheCityhaspledgedfuturewaterandsewercustomerrevenues, netofspecifiedoperatingexpenses, torepay the aforementioned revenue bonds. The bonds are payable solely from these net water and sewer customer revenues and are payable through fiscal year 2047. Annual principal and interest payments on the bonds are expected to require less than 34.5% of net revenues. Principal and interest requirements will be provided by appropriationintheyearinwhichtheybecomedue.
AnnualDebtServiceRequirements:
Annualdebtservicerequirementstomaturityfortherevenuebondsareasfollows:
Business-Type
YearEndingWaterandSewer
June30,PrincipalInterest
20259,415,000 $ $5,789,916
20269,816,0005,404,653
202710,201,0005,017,189
202810,596,0004,612,239
202910,998,0004,189,254
2030-203452,665,00014,718,088
2035-203929,264,0007,342,460
2040-204421,279,0003,050,917
2045-20476,585,000402,300
Total160,819,000 $ $50,527,016
The City believes it is in compliance with the covenants as to rates, fees and charges in Section 7.04 of the EnterpriseSystemTrustAgreementsinceitsadoptionin2004andtherelatedSupplementalTrustAgreements and bond ordersauthorizingthe Enterprise System Revenue Bonds, Series 2008, 2010, 2014, 2019, and 2022 and Enterprise System Refunding Revenue Bonds Series 2016, 2021A and 2021B since their respective adoption. TheTrustAgreementrequiresthattheCitymaintainparitydebtservicecoverageratiotobenoless than 120% or total debt service coverage ratio to be no less than 100% under one of two pronged tests. The debtservicecoverageratiocalculationfortheyearendedJune30,2024isasfollows:
PriorYearUnrestrictedNetPosition28,531,807 $ Operatingrevenue65,929,274
Operatingexpenses,excludingdepreciation,accrued stipends,pension,andOPEB41,810,384
Incomeavailablefordebtservice24,118,890
Paritydebtservicerequirement15,105,197
Totaldebtservicerequirement15,546,591
Coverageonparitydebtincluding15%
prioryearunrestrictednetposition188%
Coverageontotaldebtexcluding15%
prioryearunrestrictednetposition155%
f. StateandFederalRevolvingandBondLoans
ServicedbyEnterpriseFunds:
A federal revolving loan was executed October 17, 2011 for sewer projects under the stimulus provisions of the American Recovery andReinvestmentActof 2009. The loan provided for 50%of the loan balance to be forgiven at the time of the loan closing and the balance of principal to be repaid in 20 annual payments at an interest rate of 0.0%. As of June 30, 2024, $1,307,509 had been drawn-down and principal forgiveness of $653,753granted. Inaddition,principalpaymentsof$458,100havebeenmade,leavinganoutstandingbalance of$195,656.Theloanissecuredbyapledgeofrevenues.
AnnualDebtServiceRequirements:
AnnualdebtservicerequirementstomaturityfortheLoansPayableareasfollows:
BusinessActivities-LoansandNotesPayable WaterandSewer
YearEnding
Federal Revolving Loans
June30,PrincipalInterest
202532,609 $ $202632,609202732,609202832,609202932,610203032,610-
Total195,656 $ $-
g. HUDSection108FederalLoans
The City executed preliminary promissory notes in the amount of $1,350,000 and $2,000,000 during 2016, and $694,000 during 2018. The promissory notes are with the US Department of Housing and Urban Development(HUD)forredevelopmentprojectsauthorizedundertheCDBGSection108loanprogram.The Cityhasrelateddevelopernotesreceivableintheseamountsastheprincipalcomponentisdeferred.TheCity’s notes payable is secured by the property as well as future CDBG appropriations. In March 2019, the amortizationschedulesforbothnoteswerefinalizedbyHUD.
The City has executed a preliminary promissory note with the U.S. Department of Housing and Urban Development (HUD) for a redevelopment project authorized under the CDBG Section 108 Loan Program. TheCity’snotepayableissecuredby thepropertyaswellasfutureCDBG appropriations. Theamortization details for this note have notbeenfinalized. TheCity iscurrently makingprincipal and interest payments to HUDaccordingtoHUD’sinterimfinancingprogram. AsofJune30,2024,theoutstandingprincipalamount duetoHUDis$544,000.
AnnualDebtServiceRequirements:
AnnualdebtservicerequirementstomaturityfortheLoansPayableareasfollows:
GovernmentalActivities-LoansandNotesPayable Section108 HUD Loans
YearEnding
June30,PrincipalInterest
202587,000103,472 202684,000101,161 202781,00098,853 202879,00096,561
2029-2033381,000446,950 2034-20382,382,000223,545
Total3,094,000$1,070,542 $
h. ComponentUnitLoanPayable
InNovember2023,ForwardHighPoint,Inc.refinancedaloanandenteredaloanagreementwith theCityof High Point. Collateral is the Deed of Trust of 704,748, 720 and 788 North Main Street, High Point NC and theirrelatedassignedrents. The carryingvalue ofassetsusedascollateralatJune30,2022was$833,055 and isincludedinpropertyheldforresale.Theinterestrateis0%o.Principalwillbepayableinasingleinstallment paymentonNovember14,2028.Theoutstandingbalancewas$1,725,000atJune30,2024.
i. LinesofCredit
Forward High Point, Inc., a blended component unit reported as part of governmental activities, has a line of creditof$2,500,000toacquirepropertylocatedintheCity,whichisusedascollateralagainstthelineofcredit. The line of credit bears interest at 3.5%. Accrued interest on outstanding principal is due monthly and the principalbalanceisdueatmaturityonSeptember10,2023.AtJune30,2024,theoutstandingprincipalonthe lineofcreditis$0.
j. Subscriptions
TheCityreportsSubscription-BasedInformationTechnologyArrangements(Subscriptions)inaccordancewith GASBStatementNo.96.TheStatementprovidesadefinitionofSubscriptionsandprovidesuniformguidance foraccountingandfinancialreportingforsuchtransactions.
YearEnding June30,PrincipalInterestPrincipalInterest 2025.......................................830,011$31,120$228,135$19,831 $ 2026.......................................272,42311,118199,04813,320 2027.......................................76,0163,758142,5507,508 2028.......................................67,8181,797111,3063,346 TOTAL1,246,268$47,793$681,039$44,005 $ GovernmentalActivitiesBusiness-typeActivities
k. ChangesinLong-TermLiabilities
GovernmentalActivities:
Bondsandnotespayable:
Generalobligationbonds...........................................61,366,768$5,425,000$6,279,828$60,511,940$7,130,798 $ Premiumongeneralobligationbonds......................2,498,749-167,2892,331,460167,288
Limitedobligationbonds............................................45,211,000-2,522,00042,689,0002,547,000
Notesandloanspayable............................................4,520,000-882,0003,638,000110,000 Lineofcreditpayable..................................................920,000-920,000-Directplacementinstallmentpurchaseagreements8,004,318-2,069,6185,934,7002,079,718 Leaseliabilities.............................................................1,497,1515,921,8781,340,4376,078,5921,447,762 ITsubscriptionagreements.......................................1,793,2051,290,1871,837,1241,246,268830,012 Totaloutstandingdebt............................................125,811,19112,637,06516,018,296122,429,96014,312,578 Otherliabilities: Compensatedabsences..............................................5,444,2954,152,5573,964,4105,632,4423,879,199 TotalOPEBliability.....................................................9,169,996411,524-9,581,520Netpensionliability(LGERS)....................................42,460,6236,465,290-48,925,913Totalpensionliability(LEO).....................................17,352,114268,615-17,620,729Totalotherliabilities:................................................74,427,02811,297,9863,964,41081,760,6043,879,199 Governmentalactivitieslong-termliabilities...............200,238,219$23,935,051$19,982,706$204,190,564$18,191,777 $
Business-typeActivities: Bondsandnotespayable WaterandSewerGeneralObligationBonds...........990,251 $ $-389,376$600,875$342,463 $ WaterandSewerRevenueBonds............................169,753,0008,934,000160,819,0009,415,000 PremiumonWaterandSewerRevenueBonds.......8,332,284-406,6947,925,590406,694 TotalWaterandSewerRevenueBonds...............178,085,284-9,340,694168,744,5909,821,694 StormWaterGeneralObligationBonds...................4,565,988-876,7963,689,192859,738 Notesandloanspayable............................................228,265-32,609195,65632,609 WaterandSewerleaseliabilities...............................5,01267,8236,23666,59913,098 Electricleaseliabilities................................................18,14637,39311,40344,13613,084 Transitleaseliabilities.................................................5,763-1,3474,4161,408 Parkingleaseliabilities................................................609-609-SolidWasteleaseliabilities........................................69,96811,64435,65845,95436,769 StormWaterleaseliabilities.......................................732-732-WaterandSewerITsubscriptionagreements........8,56333,21719,99221,78810,719 ElectricITsubscriptionagreements.........................284,11932,91259,409257,62262,883 TransitITsubscriptionagreements..........................32,754478,744141,102370,396123,299 SolidWasteITsubscriptionagreements.................61,658-30,42531,23331,233 Totaloutstandingdebt............................................184,357,112661,73310,946,388174,072,45711,348,997 Otherliabilities
Landfillclosureandpost-closure.............................15,726,162128,474-15,854,636TotalOPEBliability.....................................................4,248,19968,628-4,316,827Netpensionliability(LGERS)....................................15,537,7692,558,117-18,095,886Compensatedabsences..............................................1,887,7381,352,8331,287,8471,952,7241,428,784 Totalotherliabilities.................................................37,399,8684,108,0521,287,84740,220,0731,428,784 Business-typeactivitieslong-termliabilities..............221,756,980$4,769,785$12,234,235$214,292,530$12,777,781 $
Other liabilities, including compensated absences, retirement stipends, OPEB, and pension obligations for governmental activities have typically been liquidated in the General Fund, Special Revenue Fund, and Internal Service Fund as appropriate.
Note3. InterfundBalancesandActivity
AscheduleofinterfundtransfersfortheyearendedJune30,2024isasfollows: Transfersfrom
Transfers are used to move revenues from the appropriate funds for the payment of debt service principal and interest,moverestrictedborrowingstoestablishmandatoryreserveaccounts,andtomoveunrestrictedrevenuesto finance various programs that the government must account for in other funds in accordance with budgetary authorizations,includingamountsprovidedassubsidiesofmatchingfundsforvariousgrantprograms.
The transfers from the Electric Fund to the General Fund represent the amounts designated for Economic DevelopmentandtheInternationalHomeFurnishingsMarketaswellasthepaymentinlieuoftaxes.
During the fiscal year, the City transferred capital assets between funds. In the internal service fund financial statements, capital assets transferred in are shown as capital contributions. The loss on disposal and capital contributionsareeliminatedinthegovernment-widestatementpresentation.
TheCityCouncilauthorizedinternalborrowingsaspartofitsDowntownCatalystEconomicDevelopmentProject in April 2017. The funds were used in combination with other funding sources to provide for the purchases of property for the Downtown Multi-Use Stadium and related properties for redevelopment. In lieu of external financingoptions,theGeneralCapitalProjectsFundborrowed$2,000,000fromtheElectricFund,$5,000,000from theLandfillClosure/Post-closureFund,and$1,000,000fromtheInternalServiceFundinJune2017. Intheformal action of resolution, the City Council and management is to repay the transfer semi-annually on a twenty-year amortized schedule at an interest rate of 1.00% which approximated the City’s blended internal rate of return for investmentsatthattime. TherepaymentscheduleprovidesforthereturnoffundsfirsttotheInternalServiceFund, thentotheElectricFund,andthentotheSolidWasteFund.Theinterfundloanbetweenthe InternalServiceFund andtheGeneralCapitalProjectsFundiseliminatedinthegovernment-widestatementpresentation.
In June 2023, the City Council authorized an internal borrowing for the City Lake Project from the Landfill DevelopmentandPost-ClosureFundintheamountof$8,352,748toberepaidover15yearswithanannualinterest rateof1.00%.
The interfund transactions are presented as long-term interfund receivables for the enterprise funds and as a longterminterfundpayableinthegovernmentalfundstatements.
The repayment plan related to the Downtown Catalyst Economic Development Project is below. The current principalbalanceis$6,000,000.
FiscalLandfill YearElectricReserveTotal
2025443,323-443,323 2026443,323-443,323 2027221,658221,665443,323 2028-443,323443,323 2029-443,323443,323 2030-443,323443,323 2031-443,323443,323 2032-443,323443,323 2033-443,323443,323 2034-443,323443,323 2035-443,323443,323 2036-443,323443,323 2037-443,323443,323 2038-443,323443,323 2039-443,323443,323 $1,108,3045,541,541$6,649,845 $
The repayment plan related to the City Lake Park Renovation Project is below. The current principal balance is $7,836,748.
FiscalLandfill
YearReserve 2025600,000 2026600,000 2027600,000 2028600,000 2029600,000 2030600,000 2031600,000 2032600,000 2033600,000 2034600,000 2035600,000 2036600,000 2037600,000 2038639,076 $8,439,076
Note4. JointVentures
A. TheNorthCarolinaMunicipalPowerAgencyNumber1(PowerAgency)isajointventureorganizedandexisting pursuant to Chapter 159B of the General Statutes of North Carolina to enable municipalities owning electric distributions systems, through the organization of the Power Agency, to finance, construct, own, operate, and maintain electric generation and transmission facilities. The Power Agency has nineteen members (participants), which receive power from the Power Agency. The Power Agency has entered a Project Power Sales Agreement anda SupplementalPowerSalesAgreementwith eachparticipant. These agreementsprovideforeachparticipant topurchasefromthePowerAgencyitsall-requirementsbulkpowersupply,inexcessofpowerallotmentsfromthe Southeastern Power Administration (SEPA), which includes its total share of project output (as defined by the Project Power Sales Agreement). The Power Agency is obligated to provide all electric power required by each participantattherespectivedeliverypoints. Eachparticipantisobligatedtopayitsshareoftheoperatingand debt servicecostsoftheproject.
TheCitybeganpurchaseofpowerfromthePowerAgencyundertheProjectPowerSalesAgreementdatedJuly1, 1983.
EachmunicipalitymayappointonecommissionertoserveonthePowerAgency'sboard. Theboardelectsitsown officersand is responsible forthe selection of managementto run the daily operations of the PowerAgency. The PowerAgencyisresponsibleforbudgetingandreceivingitsfinancing.
Summary financial information for the Agency for the year ended December 31, 2023 is presented below (in thousandsofdollars):
Total
Currentandotherassets………………………………………..1,179,314 $ Capitalassets…………………………………………………...1,196,395
Deferredoutflowofresources………………………………….20,288
Totalassetsanddeferredoutflowsofresources…………..2,395,997
Currentliabilities…………………………………………………101,329
Long-termdebtandothernon-currentliabilities………………….1,065,035
Deferredinflowsofresources…………………………………..940,525
Totalliabilitiesanddeferredinflowofresources………….2,106,889
Totalnetposition…………...…………………………………..289,108 $
Totalrevenues……………...…………………………………..530,373 $ Totalexpenses………………………………………………….515,669
Netincrease(decrease)innetposition...………………………………….. $14,704
AsofDecember31,2023,theAgencyhadoutstanding$538,370,000ofbonds.
ThefollowingisasummaryofdebtservicerequirementsforbondsoutstandingatDecember31,2023(in thousandsofdollars): YearPrincipalInterestTotal 202458,25527,27885,533 202561,10524,43385,538 202664,10021,43185,531 202767,25518,27785,532 2028to2031287,65538,019325,674
$538,370129,438$667,808 $
TheCityhasmadenoinvestmentinthisjointventure. The City'sonlyfinancialinvolvementwiththe agency relates to the power sales agreement for power purchases. The City’s purchases of power for the fiscal year endedJune30,2024totaled$78,027,175.CompletefinancialstatementsforthePowerAgencycanbeobtained fromtheAgency'sadministrativeofficesatP.O.Box29513,Raleigh,NC27626-0513.
B. ThePiedmontTriadRegionalWaterAuthority(WaterAuthority)isaconsortiumformedbytheCity,theCity of Archdale, the City of Greensboro, the Town of Jamestown, the City of Randleman, and Randolph County for the purpose of construction of the Randleman Dam and to provide a regional water resource. Each participating government appoints members to the board: Greensboro (3), High Point (2), Randolph County (2),Jamestown(2),andRandleman(1)foratotalof10members. Thedamisajointventureforthepurchase ofland,constructionofadam,andawastewaterbypass. TheRandlemanDamwascompletedinJanuary2003 and the impoundment of water is complete. The Water Authority has also completed the construction for a watertreatmentplantandarawwaterpumpstation,transmissionlines,andafinishedwaterpumpstation. The Piedmont Triad Regional Water Authority is operating and maintaining these facilities under an interlocal agreement among the members. The City’s allocable portion of capacity and distributable water is 19% or approximately 9MGD at fulloperationallimits. TheCity’s financial involvement includes membership dues for the allocated administrative costs of the Water Authority and the water purchases under a water sales agreement. TheCitypaid$351,842formemberduesand$1,008,831forwaterpurchasesduringthefiscalyear endedJune30,2024.Completefinancial statementsforthePiedmontTriadRegionalWaterAuthoritymaybe obtainedfromPiedmontTriadRegionalWaterAuthority,P.O.Box1326,Randleman,NC27317.
C. The governingboardsofthecitiesofWinston-Salem,Burlington,Greensboro,andHighPointestablishedthe PiedmontAuthorityofRegionalTransportationundertheRegionalPublicTransportationAuthorityAct,North Carolina General Statutes Chapter 160A, Article 27. The purpose of the Water Authority is to promote the development of sound transportation systems that provide transportation choices for citizens in its territorial jurisdiction. The participating governments do not have an equity interest in the joint venture. The City of High Point does not have financial responsibility for the Water Authority and is not responsible for its debts. Audited financialstatements for the Piedmont Authority of RegionalTransportation are available through the OfficeoftheExecutiveDirector,PiedmontAuthorityofRegionalTransportation,107ArrowRd.,Greensboro, NC27409.
D. The City and the members of the City’s fire department each appoint two members to the five-member local boardoftrusteesfortheFirefighters’ReliefFund. TheStateInsuranceCommissionerappointsoneadditional member to the local board of trustees. The Firefighters’ Relief Fund is funded by a portion of the fire and lightninginsurancepremiumsthatinsurersremittotheState. TheStatepassesthesemoneystothelocalboard oftheFirefighters’ReliefFund. Thefundsareusedtoassistfirefightersinvariousways.TheCityobtainsan ongoingfinancialbenefitfromtheFundfortheon-behalfofpaymentsforsalariesandfringebenefitsmadeto membersoftheCity’sfiredepartmentbytheboardoftrustees. DuringthefiscalyearendedJune30,2024,the CityhadnorevenuestoreportnorexpendituresforpaymentsmadethroughtheFirefighters’ReliefFund. The participating governments do nothave any equity interest in the jointventure, so no equity has been reflected in the financial statements at June 30, 2024. The Firefighters’ Relief Fund does not issue separate audited financialstatements. Instead,thelocalboardoftrusteesfilesanannualfinancialreportwiththeStateFiremen’s Association. This report can be obtained from the Association at 323 West Jones Street, Suite 401, Raleigh, NorthCarolina27603.
Note5. JointlyGovernedOrganizations
A. The City in conjunction with 6 counties and 25 other municipalities established the Piedmont Triad Regional Council (the Council). The participating governments established the Council to coordinate various funding receivedfromfederalandStateagencies.EachparticipatinggovernmentappointsonemembertotheCouncil's governing board. The City prepaid membership fees of $24,061 to the Council during the fiscal year ended June30,2024.
B. TheCityhasanagreementwiththePiedmontTriadAirportAuthorityinwhichitappointsonemembertothe board. TheCityhasnofinancialobligationorinvestmentintheoperationoftheAirportAuthority.Complete financialstatementsforthePiedmontTriadAirportAuthoritymaybeobtainedthroughtheAirportAuthority, 1000ATedJohnsonParkway,Greensboro,NC27409.
C. The City created aHigh PointConvention andVisitors Bureau (theBureau) to promote tourism and to solicit andencourageconventionbusinessinHighPoint. TheCityappointsoneoftheelevenvotingmembersofthe Bureau. Revenues from the county-wide occupancy tax pass through the City to the Bureau. The City paid $2,285,805totheBureauduringthefiscalyearendedJune30,2024.TheCityhasnootherfinancialobligation orinvestmentintheoperationoftheBureau.
Note
6. RelatedOrganization
Theeight-memberboardoftheCityofHighPointHousingAuthority(HousingAuthority)includessevenmembers appointedbytheMayoroftheCityofHighPointandoneCouncilmemberliaison. TheCityisaccountableforthe HousingAuthoritybecauseitappointsthegoverningboard;however,theCityisnotfinanciallyaccountableforthe HousingAuthority. TheCity of High Pointis also disclosed as a related organization in the notes to the financial statementsfortheCityofHighPointHousingAuthority. CompletefinancialstatementsfortheHousingAuthority canbeobtainedfromtheHousingAuthority’sofficesat500EastRussellAvenue,HighPoint,NC27260.
Note7. SummaryDisclosureofSignificantContingencies
A. FederalandState-AssistedPrograms
The City has received proceeds from several federal and state grants. Periodic audits of these grants are required andcertaincostsmaybequestionedasnotbeingappropriateexpendituresunderthegrantagreements. Suchaudits couldresultintherefundofgrantmoniestothegrantoragencies.
B. CompanyIncentiveProgram
In August 2018, the City executed a commitment agreement with a company to provide reimbursements for documentedconstructioncostsifthe companymeetscertaindocumentedbenchmarksforjobscreationandcapital investmentbyDecember31,2027. Themaximumremainingamountofreimbursementsavailabletothecompany overthetermoftheprogram(between2025and2028)is$702,600.
Note8.SubsequentEvents
TheCityhasevaluatedsubsequenteventsthroughNovember26,2024,inconnectionwiththepreparationofthese financialstatements,whichisthedatethefinancialstatementswereavailabletobeissued.
On November 1, 2024, the City issued tax-exempt CES Revenue Refunding Bond, Series 2024 in the amount of $29,906,000witharate2.32%maturingon11/1/2039.ThisissuancerefundsthetaxableCESRevenueRefunding Bond, Series 2021Bissuedat 2.75%.Thecumulative cash flow savingsfrom this refunding is$1,115,456 and the netpresentvaluesavingsis$981,547.
Required
Supplemental Information
This section contains additional information required by accounting principles generally accepted in the United States of America.
Schedule of Proportionate Share of Net Pension Liability/(Asset) for Local Government Employees’ Retirement System
Schedule of Contributions to Local Government Employees’ Retirement System
Schedule of Proportionate Share of Net Pension Liability for Firefighters’ and Rescue Squad Workers’ Pension Plan
Schedule of Changes in Total Pension Liability for the Law Enforcement Officers’ Special Separation Allowance
Schedule of Total Pension Liability as a Percentage of Covered Payroll for the Law Enforcement Officers’ Special Separation Allowance
Schedule of Changes in Total OPEB Liability and Related Ratios -Independent Auditor’s Report on Supplementary Information.
CITY OF HIGH POINT, NORTH CAROLINA
Schedule of Changes in Total OPEB Liability and Related Ratios
Required Supplementary Information
Last Seven Fiscal Years*
**There are no assets accumulated in a GASB-compliant trust.
Note: Changes of assumptions and other inputs reflect the effects of changes in the discount rate of each period. The following are the discount rates used in each period:
CITY OF HIGH POINT, NORTH CAROLINA
General Fund
The General Fund accounts for all financial resources except those required to be accounted for in another fund. The general operations of the City, such as administration, police, fire, public services, parks and recreation, library, etc. are found in the General Fund. The primary sources of the revenues are property tax collections, licenses and permits, intergovernmental revenues, charges for services and interest on investments.
CITY OF HIGH POINT, NORTH CAROLINA
General Fund
Schedule of Revenue and Expenditures - Budget and Actual For the Fiscal Year Ended June 30, 2024
(Continued)
CITY OF HIGH POINT, NORTH CAROLINA
General Fund
Schedule of Revenue and Expenditures - Budget and Actual For the Fiscal Year Ended June 30, 2024
CITY OF HIGH POINT, NORTH CAROLINA
General Fund
Schedule of Revenue and Expenditures - Budget and Actual
For the Fiscal Year Ended June 30, 2024
reconciling items:
liabilities issued5,254,425 $ IT subscription agreement935,322 Capital outlay - leases issued(5,254,425) Capital outlay - subscription based information technology agreements(935,322) 55,175,979 $
CITY OF HIGH POINT, NORTH CAROLINA
Capital Projects Fund
General Capital Projects Fund
To account and provide for inception to date budgeting and accounting for the acquisition and/or construction of major capital improvements acquired through annual transfers from governmental funds and through bond referenda and other public debt issuances.
Expenditures:
CITY OF HIGH POINT, NORTH CAROLINA
General Capital Projects Fund Schedule of Revenues and Expenditures Compared With Project Authorizations (Non-GAAP) From Project Inception and for the Fiscal Year Ended June 30, 2024
CITY OF HIGH POINT, NORTH CAROLINA
Combining Statements – All Non-Major Governmental Funds
Combining Balance Sheet. Displays the current financial position of all nonmajor governmental funds of the City.
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances. Displays the results of operations for all nonmajor governmental funds of the City.
Expenditures:
CITY OF HIGH POINT, NORTH CAROLINA
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Non-major Governmental Funds For the Fiscal Year Ended June 30, 2024
Special Revenue Funds
Special Revenue Funds account for the proceeds of special revenue sources that are legally restricted to expenditure for specified purposes. The City utilizes three special revenue funds.
Special Grants Fund
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 and other federal grants through US Department of Housing and Urban Development.
Community Development Fund
The Community Development Fund accounts for the revenues and expenditures associated with activities of various programs funded by the US Department of Housing and Urban Development, including Community Development Block Grant.
Opioid Settlement Fund
The Opioid Settlement Fund accounts for the revenues and expenditures associated with opioid remediation activities funded by Opioid Settlement, received from the North Carolina Department of Justice.
CITY OF HIGH POINT, NORTH CAROLINA
Special Grants Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 2024
CITY OF HIGH POINT, NORTH CAROLINA
Opioid Settlement Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 2024
CITY OF HIGH POINT, NORTH CAROLINA
Debt Service Fund
The Debt Service Fund accounts for the accumulation of resources for and the payment of governmental long-term principal and interest.
General Debt Service Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual For the Fiscal Year Ended June 30, 2024
Revenues:
(6,397,783)
CITY OF HIGH POINT, NORTH CAROLINA
PROPRIETARY FUND TYPES
Enterprise Funds
The Enterprise Funds provide goods or services to the general public on a continuing basis and are financed or recovered primarily through user charges. Listed below are departments accounted for in the Enterprise Funds.
Water and Sewer Fund
To provide the maximum treatment possible of our raw water and to furnish to the customer an adequate quantity of high quality and aesthetically pleasing stain-free water for home, industrial and commercial users. Additionally, this fund provides for the proper and effective treatment of all wastewater and disposal of any treatment process byproducts in an environmentally sound manner.
Electric Fund
To provide effective, professional services to utility customers and to provide expansions to the electric system from operational revenues.
Mass Transit Fund
Provide an optimal level of safe, reliable and economical transportation service for the residents of High Point while increasing the efficiency of the system.
Parking Facility Fund
The Parking Facility Fund’s responsibility is for the operation and maintenance of the City’s off-street parking facilities.
Solid Waste Fund
To provide refuse collection and solid waste management, including a sanitary landfill and recycling facility for the citizens of the City and a portion of Guilford County. To properly handle the disposal of 170,000 plus tons of wastes annually in an environmentally acceptable manner by means of shredding and conventional landfill methods.
Storm Water Fund
To provide for the operation and maintenance of the City’s storm water program, which manages storm water runoff through stream cleaning, bank stabilization, and maintenance of detention lakes and ponds.
CITYOFHIGHPOINT,NORTHCAROLINA
InternalServiceFund
The Internal Service Fund accounts for the financing of goods and services provided by onedepartmenttootherdepartmentsoftheCity. Thefollowingactivitieswereaccounted forintheInternalServiceFund:
FleetServices
ProvidethebestandmosteconomicalsupportservicestotheCityFleet.
RadioRepairShop
Responsible for the installation and maintenance of all City-owned communication systemsandcomponents.
ComputerReplacement
ResponsibleforfundingandreplacingalloftheCity’scomputertechnology.
HealthandWellnessBenefits
Responsible for the medical, dental, and vision insurance and various wellness programs forcityemployeesandretirees.
PrintShop
ProvidethebestandmosteconomicalprintingservicestotheCityDepartments.
CITY OF HIGH POINT, NORTH CAROLINA
SUPPORTING SCHEDULES
(1) Schedule of Ad Valorem Taxes Receivable
(2) Analysis of Current Tax Levy
(3) Analysis of Current Tax Levy for Secondary Market Disclosure
(4) Emergency Telephone System Fund-Schedule of Revenues, Expenditures and Changes in Fund Balances-Budget and Actual
CITYOFHIGHPOINT,NORTHCAROLINA
TableVI
DirectandOverlappingPropertyTaxRates LastTenFiscalYears
1 Source:GuilfordCountyTaxDepartment. TheCountydoesnotdilineatecomponentsofthetaxlevybutadoptstotalrateasoperating.
Notes:OverlappingratesarethoseoflocalandcountygovernmentsthatapplytopropertyownerswithintheCityofHighPoint. RealpropertywasrevaluedonJanuary1,2022.
Source:Guilford, Forsyth&DavidsonCountyTaxDepartments
CITYOF HIGHPOINT, NORTHCAROLINA
CITY OF HIGH POINT, NORTH CAROLINA
