2023 City of High Point Annual comprehensive Financial Report by cityofhighpoint

ANNUAL COMPREHENSIVE FINANCIAL REPORT Fiscal Year Ended June 30, 2023

HighPointNC.gov/Finance

ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2023 CITY COUNCIL JAY WAGNER WESLEY HUDSON BRITT MOORE TYRONE JOHNSON CYRIL JEFFERSON CHRISTOPHER WILLIAMS MONICA PETERS VICTOR JONES MICHAEL HOLMES

MAYOR MAYOR PRO-TEMPORE; WARD 4 AT- LARGE AT- LARGE WARD 1 WARD 2 WARD 3 WARD 5 WARD 6

CITY MANAGER TASHA LOGAN FORD DEPUTY CITY MANAGER GREG FERGUSON ASSISTANT CITY MANAGER ERIC OLMEDO ASSISTANT CITY MANAGER DAMON DEQUENNE FINANCIAL SERVICES DIRECTOR BOBBY FITZJOHN, CPA, NCLGFO ASSISTANT FINANCIAL SERVICES DIRECTOR HEATHER FORREST, NCLGFO ACCOUNTING MANAGER YEYMY JONES, NCLGFO PREPARED BY THE FINANCIAL SERVICES DEPARTMENT

able of Contents

INTRODUCTORY SECTION

Letter of Transmittal Certificate of Achievement Organization Chart

i xiii xiv FINANCIAL SECTION

Report of Independent Auditor

Management’s Discussion and Analysis

Basic Financial Statements Government–wide Financial Statements Statement of Net Position

Statement of Activities

Fund Financial Statements Balance Sheet - Governmental Funds

Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds

Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities

Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual – General Fund

Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual – American Rescue Plan Fund

Statement of Net Position – Proprietary Funds

Statement of Revenues, Expenses and Changes in Fund Net Position – Proprietary Funds

Statement of Cash Flows – Proprietary Funds

Notes to Financial Statements

able of Contents

Required Supplemental Financial Information

Local Government Employees’ Retirement System Schedule of Proportionate Share of Net Pension Liability/(Asset)

Local Government Employees’ Retirement System Schedule of Contributions

Firefighters’ and Rescue Squad Workers’ Pension Plan Schedule Of Proportionate Share of Net Pension Liability

Law Enforcement Officers’ Special Separation Allowance Schedule of Changes in Total Pension Liability

Law Enforcement Officers’ Special Separation Allowance Schedule of Total Pension Liability as a Percentage of CoveredEmployee Payroll

Schedule of Changes in Net OPEB Liability and Related Ratios

COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES General Fund Schedule of Revenue and Expenditures - Budget and Actual General Fund Capital Projects Funds

94 97

General Capital Projects Fund - Schedule of Revenues & Expenditures Compared with Project Authorizations

All Non-major Governmental Funds

101

Combining Balance Sheet – Non-major Governmental Funds

103

Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Non-major Governmental Funds

104

Special Revenue Funds Combining Balance Sheet – All Special Revenue Funds

105 107

able of Contents

Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – All Special Revenue Funds

108

Special Grants Fund-Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual

109

Community Development Fund - Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual

110

Opioid Settlement Fund - Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual

111

Debt Service Fund Debt Service Fund-Schedule of Revenues, Expenditures, And Changes in Fund Balances – Budget and Actual

Proprietary Fund Types

113

114

115

Combining Statement of Net Position – All Non-major Enterprise Funds

117

Combining Statement of Revenues, Expenses, and Changes in Net Position - All Non-major Enterprise Funds

118

Combining Statement of Cash Flows – All Non-major Enterprise Funds

119

Water and Sewer Fund - Schedule of Revenues, Expenditures, and Changes in Net Position - Budget and Actual

120

Water and Sewer Capital Projects Ordinance Fund - Schedule of Revenues, Expenditures, and Changes in Net Position Compared with Project Authorizations

121

Electric Fund - Schedule of Revenues, Expenditures and Changes in Net Position – Budget and Actual

122

Electric Capital Projects Ordinance Fund - Schedule of Revenues, Expenditures and Changes in Net Position Compared with Project Authorizations

123

able of Contents

Mass Transit Fund - Schedule of Revenues, Expenditures and Changes in Net Position - Budget and Actual

124

Mass Transit Capital Projects Ordinance Fund - Schedule of Revenues, Expenditures and Changes in Net Position Compared with Project Authorizations

125

Parking Facilities Fund – Schedule of Revenues, Expenditures and Changes in Net Position – Budget and Actual

126

Solid Waste Fund – Schedule of Revenues, Expenditures and Changes in Net Position – Budget and Actual

127

Solid Waste Capital Projects Ordinance Fund - Schedule of Revenues, Expenditures and Changes in Net Position Compared with Project Authorizations

128

Landfill Closure and Postclosure Reserve Fund – Schedule of Revenue, Expenditures and Changes in Net Position – Budget and Actual

129

Storm Water Fund - Schedule of Revenues, Expenditures and Changes in Net Position - Budget and Actual

130

Storm Water Facilities Capital Projects Ordinance Fund - Schedule of Revenues, Expenditures and Changes in Net Position Compared with Project Authorizations

131

Internal Service Fund Internal Service Fund - Schedule of Revenues, Expenditures and Changes in Fund Net Position – Budget and Actual

Supporting Schedules

133

134

135

Schedule of Ad Valorem Taxes Receivable

137

Analysis of Current Tax Levy

138

Analysis of Current Tax Levy – Secondary Market Disclosure

139

Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual - Emergency Telephone System

140

able of Contents

STATISTICAL SECTION

141

Table I

Net Position By Component - Last Ten Fiscal Years

142

Changes in Net Position - Last Ten Fiscal Years

144

III

Fund Balances, Governmental Funds – Last Ten Fiscal Years

148

Changes in Fund Balances, Governmental Funds – Last Ten Fiscal Years

152

Assessed Value and Actual Value of Taxable Property – Last Ten Fiscal Years

154

Direct and Overlapping Property Tax Rates – Last Ten Fiscal Years

156

VII

Principal Property Taxpayers – FY 2023 and FY 2014

157

VIII

Property Tax Levies and Collections – Last Ten Fiscal Years

158

Principal Water Customers – FY 2023 and FY 2014

159

Principal Sewer Customers – FY 2023 and FY 2014

160

Principal Electric Customers – FY 2023 and FY 2014

161

XII

Schedule of Water, Sewer and Electric Operating Revenues – Last Ten Fiscal Years

162

XIII

Schedule of Outstanding Debt by Type – Last Ten Fiscal Years

164

XIV

Ratios of Net General Bonded Debt Outstanding – Last Ten Fiscal Years

167

Legal Debt Margin Information – Last Ten Fiscal Years

168

XVI

Direct and Overlapping Debt

170

XVII

Water and Sewer Revenue Bond Coverage – Last Ten Fiscal Years

171

XVIII

Demographic and Economic Statistics – Last Ten Fiscal Years

172

XIX

Principal Employers – FY 2023 and FY 2014

173

able of Contents

Table XX

XXI

XXII

Full–Time Equivalent City Employees By Function – Last Ten Fiscal Years

174

Operating Indicators for Major Functions/Programs – Last Ten Fiscal Years

176

Capital Asset Statistics, By Function/Program – Last Ten Fiscal Years

178

COMPLIANCE SECTION

181

Report of Independent Auditor on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards Report of Independent Auditor on Compliance for Each Major Federal Program and Internal Control over Compliance in Accordance With OMB Uniform Guidance and the State Single Audit Implementation Act Report of Independent Auditor on Compliance for Each Major State Program and Internal Control over Compliance in Accordance With OMB Uniform Guidance and the State Single Audit Implementation Act

183

185

187

Schedule of Findings and Questioned Costs

189

Summary Schedule of Prior Year Audit Findings

192

Corrective Action Plan

193

Schedule of Expenditures of Federal and State Awards and Notes to Schedule of Expenditures of Federal and State Awards

195

October 30, 2023 The Honorable Mayor Jay W. Wagner Members of the City Council And the Citizens of the City of High Point, North Carolina We are pleased to present the Annual Comprehensive Financial Report (“Report”) of the City of High Point, North Carolina (City) for the fiscal year ended June 30, 2023. We are extremely proud that this report has been prepared in its entirety by the City's Financial Services Department. The financial statements and supplemental schedules have been audited by the independent certified public accounting firm of Cherry Bekaert LLP, and that firm’s unmodified report is included in the Financial Section of this Report. Responsibility for both the accuracy of the data and the completeness and fairness of the presentation, including all disclosures, rests with the City. We believe the data as presented is accurate in all material aspects and that it is presented in a manner designed to fairly set forth the financial position and results of operations of the City as measured by the financial activity of its various funds. All disclosures necessary to enable the reader to gain the maximum understanding of the City's financial activity have been included. General The financial statements have been prepared in compliance with the applicable requirements of the General Statutes of North Carolina and are consistent with the standards and guidelines recognized for governmental accounting and reporting contained in both Audits of State and Local Governments, an audit guide prepared by the Committee of Governmental Accounting of the American Institute of Certified Public Accountants (AICPA) and Government Auditing Standards, issued by the Comptroller General of the United States. Among other resources used in the preparation of the Report, the Financial Services Department has given particular attention to the Governmental Accounting, Auditing and Financial Reporting (GAAFR), issued by the Government Finance Officers Association of the United States and Canada (GFOA), and Governmental Accounting Standards Board (GASB) pronouncements. Management’s discussion and analysis (MD&A) immediately follows the independent auditor’s report and provides a narrative introduction, overview, and analysis of the basic financial statements. The MD&A complements this letter of transmittal and should be read in conjunction with it. The City is also required to undergo an annual compliance audit on federal and state financial assistance programs in conformity with the provisions of the Single Audit Act Amendments of 1996, the State Single Audit Implementation Act, and U.S. Office of Management and Budget Uniform Grant Guidance, Audits of States, Local Governments and Nonprofit Organizations. The auditor’s reports and the Schedule of Expenditures of Federal and State awards, required as part of a single audit, are found in the Compliance Section of this report. The City of High Point has participated in the GFOA Certificate of Excellence Program since 1980. The GFOA recognizes governmental units that issue their annual comprehensive financial reports (ACFR) substantially in conformity with the standards of the GASB. The GFOA awarded a Certificate of Achievement for Excellence in Financial Reporting to City of High Point, North Carolina for its ACFR for the fiscal year ended June 30, 2022. This marked the 36th time the City has received the Certificate i

of Achievement since 1980. In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized ACFR, whose contents conform to program standards. The Report must satisfy both accounting principles generally accepted in the United States of America and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe our current report continues to conform to the Certificate of Achievement program requirements, and we are submitting it to the GFOA to determine its eligibility for another certificate. The Reporting Entity In conformity with the standards of the GASB, this report includes all funds of the City, as well as its component units. The City of High Point (as legally defined) is considered to be a primary government. Component units are legally separate entities for which the primary government is financially accountable or for which the nature and significance of their relationship with the primary government are such that their exclusion would cause the reporting entity’s financial statements to be misleading or incomplete. The primary government is considered financially accountable if it appoints a voting majority of the organization’s governing body; and 1) it can impose its will on that organization, or 2) there is a potential for the organization to provide specific financial benefits to, or impose specific financial burden on, the primary government. Discretely presented component units are reported in a separate column in the Government-wide financial statements to emphasize that they are legally separate from the primary government and to distinguish their financial position, results of operations, and cash flows from those of the City. The High Point ABC Board is included as a discretely presented component unit. The ABC Board’s governing members are appointed by the City Council. However, the City has no further accountability for its operations. Blended component units are, in substance, part of the City’s operations. The City has two blended component units, Forward High Point, Inc., and the High Point Public Facilities Corporation. These component units are reported as part of the Community Development Special Revenue Fund and the Debt Service Fund. Additional information on the blended and discretely presented component units can be found in Note I. A. Description of the City The City of High Point is centrally located in the heart of the Piedmont region of North Carolina. High Point is unique – the City is the only municipality in North Carolina whose city limits encompasses parts of four counties. Most of the City is located within the southwest quadrant of Guilford County; approximately two percent of the City’s area extending into neighboring Randolph, Davidson and Forsyth counties. The City covers over 58.4 square miles and has a population exceeding 117,000. The City is empowered by State Statute to levy an ad valorem property tax on the appraised value of all real and tangible personal property located within the City. The respective counties mentioned above are the only other governmental units levying such taxes within the City's corporate limits. The City is also empowered to extend its corporate limits by voluntary annexation.

Form of Government The City has a Council-Manager form of government. The Council is the legislative body of the City government with the Mayor as a voting member and the presiding officer. The Mayor is elected on an at-large basis for a four-year term. The remainder of the City Council is composed of two at-large members and representatives from six voting wards. Council members are elected on a non-partisan basis and serve four-year terms. Elections are held in November of odd-numbered years, every four years. The City Manager, the chief executive officer, is appointed by and serves at the pleasure of the Council. They are responsible for carrying out the policies and ordinances of the Council and administering the daily operations of the City through appointed department heads. The City provides a wide range of services for its citizens, including law enforcement, fire protection, public safety, planning and developmental services, street maintenance, cemeteries, cultural and recreational activities, general administration, community development and library services. In addition to these general government activities, the City provides and maintains water, sewer, electrical, and storm water utilities, refuse collection, a landfill and recycling operation, a public parking system, and a mass transit system for the benefit of its citizens. This report includes all the City’s fiscal activities in maintaining these services. The City also extends financial support to a variety of boards, agencies, and commissions to assist their efforts in serving citizens. Business and Economic Development A thriving city whose population exceeds 117,000 residents, High Point is located alongside Greensboro and Winston-Salem in the Piedmont Triad region of North Carolina, 37th combined statistical area with a population exceeding 1.7 million. The City is located along the I-85/I-40 corridor and the I-74/I-73 corridor in the Piedmont crescent region of central North Carolina. High Point serves as a center for home furnishings, manufacturing, distribution/logistics, commercial photography, aerospace, high tech pharmaceuticals and service providers. The High Point Market High Point earns its nicknames as North Carolina’s International City™ and Home Furnishings Capital of the World™. The City has been known as the “Home Furnishings Capital of the World” for nearly a century. The City hosts the High Point Home Furnishings Market, the world’s largest international home furnishings trade shows each April and October, and the international “Interwoven” fabric market each May and November. Annually, these markets attract more than 150,000 domestic and international exhibitors and buyers from more than 110 countries around the world. Andmore, formerly International Market Centers, owns and operates 17 showrooms and 7 million square feet of the 11.5 million square feet of showroom space in High Point. More than 2,000 domestic and international manufacturers and exhibitors currently show in approximately 12 million square feet of permanent and temporary showroom space located in the City’s downtown area. The City also features a network of home furnishings retailers attracting consumers from across the country. Tens of thousands of shoppers travel to the City annually to purchase home furnishings. In addition to furniture sales, this has had a positive impact on the City’s hospitality industry. A 2018 UNC-Chapel Hill and Duke University study found that the High Point Market generates more than $6.73 billion in economic impact to the overall regional economy (the counties within a 75-mile iii

radius from downtown High Point). UNC-Chapel Hill and Duke University’s Global Value Chains Center, which conducted the study, found that the High Point Market supports 42,427 jobs in the region. North Carolina collects approximately $202 million in tax revenue each year due to the economic activity generated by the High Point Market. Business friendly High Point’s healthy business climate can be attributed to progressive city government in strong partnership with the local business community. High Point prides itself on working in close partnership with its business community. The mayor, city council, and city manager set that tone and ensure it is carried out.  High Point has a proven record of ensuring companies meet fast-track construction schedules, investing in technology to improve the planning and inspections process.  The High Point Economic Development Corp. (EDC) is both a department of City government and a public/private partnership partnering with Business High Point and High Point Chamber of Commerce who work together regularly in support of the EDC’s efforts.  High Point EDC is a part of the Guilford County Economic Development Alliance, working to facilitate the creation of high-quality jobs, new capital investment, retain and expand existing businesses in Guilford County, High Point, and Greensboro. Diversification High Point’s economy is impressively diversified, with new industry sectors joining the City’s traditional industries. Today’s industry sectors include:  distribution / logistics  aerospace  furniture and home furnishings  advanced manufacturing  customer service / financial  life sciences / pharmaceutical / biotech  healthcare The City has impressively diversified its industrial base from its furniture and hosiery past. In addition to furniture and home furnishings, major industry clusters today include aerospace; logistics, transportation, and distribution; innovative manufacturing; life sciences, pharmaceutical, and nutritional; healthcare; commercial photography; and specialized business services (banking, credit, financial services, etc.). While the furniture industry remains an important part of the local economy, the City has attracted a diverse mixture of local, national and international businesses and industry over the past several years. Of the top 20 major employers in the City, only two employers are furniture related. These furniture-related firms employ 3.5% (or 679) of the 19,650 employed by the top 20 major employers in the City. The other 18 major employers serve the finance, customer service, logistics and distribution, health care, local government, and education sectors. Impressive Business Parks  Piedmont Centre – The 1,100-acre Piedmont Centre campus is a contiguous and planned corporate park. With approximately 210 businesses in the corporate park occupying more than 6 million square feet, Piedmont Centre represents an overall capital investment of more than $400 million. More than 10,000 employees work in the park. Tenants in Piedmont Centre include several of High Point’s Top 20 employers: GXO Logistics, Aetna, Thermo Fischer Scientific, Fastenal and many other advanced manufacturing and office users.  Premier Center – Premier Center, is a high-quality, 150-acre office park. Primary tenants include the corporate headquarters of Home Meridian International and the corporate iv



 

headquarters and distribution center for Samson Marketing and its subsidiaries Legacy Classic Furniture and Universal Furniture. Pinnacle Bank’s regional corporate offices are located here along with Triad Business Bank. Amada North America Inc. announced its manufacturing and assembly facility in 2018 and has a full line of high-precision press break bending equipment for the US Market and its North American Showroom. Additionally, the Moses Cone MedCenter of High Point, a free-standing emergency medical care facility is in Premier Center. Piedmont Corporate Park – Piedmont Corporate Park is a 160-acre mixed-use development perfect for office, light manufacturing, and distribution facilities. Lot sizes are flexible and can be subdivided to meet a company’s needs. In 2019 a new 66,000-square foot Amazon delivery station open for “last mile deliveries.” Other tenants include American Premium Beverage, The Quantum Group, Alfred Williams & Company, Tenn-Tex Plastics, and Baltek. Kivett Drive Industrial Park – Kivett Drive Industrial Park is a 110-acre park adjacent to the I-74 interchange. Tenants in this park include Canteen Vending Services and a primary distribution center and customer contact facility for RalphLauren.com, a division of Ralph Lauren Corporation. I-74 Corporate Center – In 2015, the first phase of the new I-74 Corporate Center opened with the completion of an 840,000-square foot facility for Ralph Lauren Corporation. Gallimore Industrial Center – A growing 82-acre industrial park in the airport submarket with 180,000-square already constructed - tenants include Handcraft Linen Services, LLFlex, Carpigiani and Pella Windows & Doors. Ethnicraft a Belgian based home furnishings company is having constructed a new 160,000sf US Headquarters and Distribution facility set to open in 2024. High Point North – A new 550 plus-acre industrial park in the northwest portion of High Point is currently being developed. The first phase features a 1,050,560 square-foot building which will house several divisions of Ecolab. South Point Commerce Center – announced a new 187-acre industrial park in South High Point. The industrial park is a result of partnership between Charlotte based The Keith Corp and IDM ventures.

In May 2021, DC Blox announced the planned construction of a data center in the Piedmont Centre business park. The development is expected to bring more than $300 million in capital investment, including the equipment hosted in the facility. Both the City and County authorized incentives for the project. In October 2023, Cambrex, a global biopharmaceutical manufacturer with an existing presence in High Point completed a $38 million expansion which led to the creation of more than 70 new jobs. In December 2021, Toyota announced it will build a $1.3 billion plant near the City in Randolph County to make batteries for electric and hybrid vehicles. The plant, which is expected to begin production in 2025, will be Toyota’s first U.S. battery plant and marks the largest private capital investment in the State's history. Toyota plans to hire at least 1,750 workers at the plant to produce 1.2 million batteries a year. Toyota has since announced an additional $2.5 billion investment and 350 jobs related to this project. Construction is currently underway. In January 2022, startup aircraft manufacturer Boom Supersonic announced that it will manufacture its cutting-edge jets at Piedmont Triad International Airport. The company pledges to create 1,760 jobs at the outset and invest $500 million. Boom has set a timeline of having its first supersonic jets manufactured by 2025, with commercial flights before the end of the decade. In February 2022, Volvo Group North America announced a $41 million expansion in the City. The company will construct a 62,000-square-foot addition to its U.S. Uptime Center at 8003 Piedmont Triad v

Parkway that will house the global headquarters for Volvo Financial Services. The facility is part of Volvo Group North America’s corporate campus, which is located in Greensboro and the City. Once construction is complete early next year, Volvo Financial Services will relocate its 360 employees from its current offices in Greensboro. Volvo Group North America has approximately 3,100 total employees in the Triad region. In May 2022, ECOLAB, a Forbes Fortune 500 company, selected High Point North Industrial Center as the home for its new Customer Care Center, which will be the city's largest industrial building at more than 1 million square feet and the site's first development. The project will retain 125 jobs in the area, create 20 new jobs and cause over $93 million to be invested. Location/Transportation Network High Point boasts a superb location for manufacturing/distribution/logistics. High Point is at the center of it all. Predominately located in Guilford County, near four major interstate highways and minutes away from a large regional airport. The ground transportation network is anchored by four interstate highways (I-40, I-85, I-73 and I-74). When coupled with the area’s high-speed rail corridors and Piedmont Triad International Airport (PTIA), High Point is a great place to do business. The Piedmont Triad International Airport (the “Airport”) is approximately four miles from the City. The Airport is served by four major airlines (American, Delta, United, and Allegiant Air) and regional airline, Silver Airways. For the calendar year ended December 31, 2022, approximately 50 scheduled daily departures carried 788,318 enplaned passengers. The Piedmont Triad Airport Authority owns and operates the Airport. Through July 2023, 484,716 enplaned passengers were reported, compared to 441,338 in the same period in 2022. Companies such as FedEx, Honda Aircraft Company, HAECO Americas, Cessna, Purolator, Advanced Filtration, North State Aviation, B/E Aerospace, Honda Aero, and Triumph Aerospace are pushing the envelope of innovation and providing thousands of jobs to skilled aviation workers. In all, nearly 200 aerospace companies are located in the Piedmont Triad of North Carolina, a 12-county region that includes the cities of Greensboro, High Point, and Winston-Salem. The North Carolina State Ports Authority operates an inland terminal just outside High Point. Containers are transported to deep water ports in Wilmington and Morehead City, NC. Ports in Charleston, SC; Savannah, GA; and Norfolk, VA also serve the area. Additionally, regional and continental rail freight services are provided by Norfolk Southern and CSX. Passenger rail service, provided by Amtrak which operates two daily passenger routes through the City along the East Coast, utilizes The Depot, a historic passenger depot that was renovated in 2003. The Depot is also used for other mixed uses and creates a unique focal point for the City’s downtown activities. The City is served by three bus lines for inter-city routes and charter trips. Local bus service is provided by a City-owned 17-unit system. The City has a 50% matching operating deficit grant from the Federal Transportation Administration. Employment The City of High Point experienced record unemployment in 2020 due to the COVID-19 pandemic. The area’s unemployment rate reached its height in April 2020 at 17.7%, trending downward to 12.9% in June 2020, 7.0% in June 2021, 4.9% as of June 2022, and 4.1% as of June 2023 according to the US Bureau of Labor Statistics. vi

Quality of Life High Point's residents enjoy a wide variety of activities on a year-round basis due largely to a mild climate and an abundance of natural recreation amenities. Of the City's two public golf courses, the Oak Hollow course has been consistently rated among the top 75 public courses in the country. Fourteen tennis courts, four indoor tennis courts, two public lakes and a substantially completed hiking/biking and greenway trail are major attributes of the City’s recreational program. The colleges and universities in the area offer residents the opportunity to attend intercollegiate contests in all sports. Additionally, the City is a working partner with community organizations that have created a worldclass soccer complex to further enhance recreational sport activities in the area. The City has invested more than $24 million in upgrading the facilities at City Lake Park which reopened in 2023 with record attendance. The High Point Theatre is a year-round performing arts facility meeting the cultural needs of the community. It is one of the finest stages and gallery spaces in the Southeast. The Theatre features an elegant 929-seat auditorium with continental style seating. Other facilities include three large exhibition galleries for meetings, displays, or receptions. The Theatre is suited for convention use, as well as functions of the arts, and is rented year-round to both amateur and professional groups. The school system in the City operates under a consolidated City-County arrangement merging all public educational institutions into one system in the County. The City has no financial responsibility for the consolidated school system. The school system offers several magnet schools, including International Baccalaureate, Teaching and Arts, Aviation Technology and Medical Sciences programs at the three high schools in the City, plus many other innovative programs in the numerous elementary and middle school locations in the City. Several well-established private and parochial schools also serve the community. The public library, the High Point Museum and Historical Park, Furniture Discovery Place and the Rebecca R. Smothers Piedmont Environmental Center are additional educational resources. In April 2022 the Nido and Mariana Qubein Children’s Museum opened in Downtown High Point offering additional opportunities for education and entertainment in the City. The educational needs of the citizens of High Point are served by a variety of quality public and private primary, secondary and post-secondary facilities. The City and the Piedmont Triad region are home to 13 major colleges and universities, including High Point University, Wake Forest University and four branches of the University of North Carolina. High Point University, a private four-year, co-educational liberal arts university affiliated with the United Methodist Church, is located in the City. The University’s fall 2023 enrollment exceeded 6,000, comprised of both graduate and undergraduate students. The University has announced a $1 billion investment on the campus over the next 10 years. With projects still underway, the University’s $170 million Quebein Arena and Conference Center opened in September 2021. The University is the City’s 4th largest employer with 1,568 employees. The University’s slogan, “Choose to be Extraordinary” is not just a slogan, but a passion and vision for the institution. High Point University’s annual economic impact is estimated to be $765 million. In recent years, the University opened the Webb School of Engineering to expand its STEM degree options. In September 2023, the University broke ground on the first private dental school in North Carolina and plans to host students beginning in Fall 2024. University officials also announced the addition of a School of Law, School of Optometry, School of Nursing, and School of Entrepreneurship. Four of the State’s technical institutions and community colleges are within 25 miles of the City’s vii

downtown. Guilford Technical Community College (“GTCC”) has a campus in downtown High Point, which is a satellite to its main campus seven miles away in Jamestown. GTCC currently serves over 13,400 students enrolled in any one of GTCC’s degree credit curriculums in the fall of 2021. The City does not have any financial responsibility for GTCC, which is supported by State, federal and County funds. The City has received several federal grants to improve the economic infrastructure of Southwest High Point. 300 Oak, a former showroom, was purchased by the City in late 2022 and will be converted into a small-scale manufacturing hub with the assistance of a $4 million grant. The City also plans to develop a shared-use kitchen to create a supportive environment for entrepreneurs to start, grow, and sustain successful food businesses in southwest High Point with the assistance of a $2 million grant awarded in 2022. High Point is experiencing a level of excitement that many citizens cannot recall a more exciting time in the city. The City Council continues to focus on the strategic vision, including the primary goals of blight reduction, retaining and attracting young professionals, and creating a catalyst project that will transform High Point’s downtown. 



 



Publicly announced in April 2017, the Downtown Catalyst Project was revealed to highlight the expected revitalization of the city’s current downtown area. The construction of a Downtown Multi-Use Sports & Entertainment Facility (now Truist Point) was the immediate focus, a facility that can be used for baseball, soccer, and other sports, be host as a concert venue, and serve as an outlet for much needed community gathering space. Construction was completed and the High Point Rockers baseball team played their opening baseball game in May of 2019. The first concert was held at Truist Point in collaboration with the October 2021 Furniture Market. In September 2022, the City announced plans for a professional men’s soccer team to begin playing at Truist Point in Spring 2024. Congdon Yards, a multi-use development adjacent to Truist Point stadium continues to expand its campus. The campus includes the Adams-Millis Hosiery Mill and the former Stickley Furniture building. The Congdon family has invested more than $30 million in the project. Congdon Yards is intended to be a magnet for small-time furniture entrepreneurs. It features a state-of-the-art fabrication facility, meeting hall, library, event spaces, showrooms, eating and dining venues and a common area. In October 2017, the City authorized a contract with master developer Elliott Sidewalk Communities who will coordinate the development around the City’s publicly owned stadium to leverage the utmost potential of the City’s investment and maximize development opportunities and growth in the City’s property tax base. The first development by Elliott Sidewalk Communities, The Bedrock, features the Stock & Grain Food Hall on the first level and office space on the second and third floor, both of which overlook Truist Point Stadium. Current tenants include Key Risk, Coldwell Banker, iHeart Radio, and Eicholtz Furniture. In Fall 2021, the City was awarded a $19.8 million USDOT RAISE grant to improve mobility in High Point’s downtown. The project will construct approximately 3.5 miles of shared use greenway, approximately 1.2 miles of Complete Streets, and two blocks of bicycle boulevards. In April 2022, developers announced a 128-room Springhill Suites by Marriott is coming to downtown High Point near the Congdon Yards development. The hotel will encompass a historic building that was once part of the Adams-Millis Hosiery Mill as well as a newly constructed tower building. Over the next year, luxury apartments (The Point) will bring new residents into the heart of our downtown. Additional residential developments are in the planning phase.

viii

Accounting System and Budgetary Control The diverse nature of governmental operations and the necessity of assuring legal compliance preclude recording and summarizing all governmental financial transactions and balances in a single accounting entity. Therefore, from an accounting and financial management viewpoint, a governmental unit is a combination of several distinctly different fiscal and accounting entities, each having a separate set of accounts and functioning independently of each other. Each accounting entity is accounted for in a separate "fund". A fund is defined as a fiscal accounting entity with a self-balancing set of accounts recording cash and other financial resources together with all related liabilities and residual equities or balances, and changes therein, which are segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions, or limitations. The City's accounting records for general governmental operations are maintained on a modified accrual basis, with the revenues being recorded when available and measurable and expenditures being recorded when the services or goods are received, and the liabilities are incurred. Accounting records for the City's utilities and other enterprises are reported on the accrual basis. The City's accounting system is organized and operated on a "fund" basis and each fund is classified in one of two categories and further identified as one of seven major types of funds: Classification

Fund Type

Governmental Funds

General, Special Revenue, Debt Service, Capital Project Enterprise, Internal Service

Proprietary Funds

Governmental Funds: These funds are, in essence, accounting segregations of financial resources. Expendable assets are assigned to the various governmental funds according to the purposes for which they may or must be used; current liabilities are assigned to the fund from which they are to be paid; and the differences between governmental fund assets and liabilities, the fund equity, is referred to as "Fund Balance". The primary measurement focus is upon determination of financial position and changes in financial position, which is supported by the statement of revenues, expenditures, and changes in fund balances. It may be supported or supplemented by more detailed schedules of revenues, expenditures, transfers, and other changes in fund balance. Proprietary Funds: These funds are sometimes referred to as "income determination," "nonexpendable," or "commercial type" funds and are used to account for a government's on-going organizations and activities, which are like those often found in the private sector. All assets, deferred outflows, liabilities, deferred inflows, net position, revenues, expenses, and transfers relating to the government's business and quasi-business activities - where net income and capital maintenance are measured - are accounted for through proprietary funds. The generally accepted accounting principles here are those applicable to similar businesses in the private sector, and the measurement focus is upon determination of net income, financial position, and ix

changes in financial position. Internal Control: In developing and maintaining the City's accounting system, consideration is given to the adequacy of internal accounting controls. Internal accounting controls are designed to provide reasonable, but not absolute, assurance regarding (1) the safeguarding of assets against loss from unauthorized use or disposition, and (2) the reliability of financial records for preparing financial statements and maintaining accountability for assets. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived and (2) the evaluation of costs and benefits requires estimates and judgments by management. All internal control evaluations occur within the above framework. We believe that the City's internal accounting controls adequately safeguard assets and provide reasonable assurance of proper recording of financial transactions. Budgetary Control: The City's financial management software provides the information for effective fiscal management. Through utilization of budgetary accounting methods, effective budgetary control and accountability can be maintained. The Annual Budget, which is adopted for legal control at the functional level but controlled at the department level, authorizes, and provides the basis for the City's financial management. The total adopted appropriations constitute the maximum expenditure authorization during the fiscal year and can only be amended by action of the City Council. Expenditures are controlled at the department level for all General, Special Revenue, Debt Service, Capital Projects, and Enterprise funds. Budgetary control is maintained at this level by the encumbrance of purchase amounts prior to the release of purchase orders to vendors. Purchase orders, which would result in an overrun of departmental operating balances, are not released until additional appropriations are made available. Open encumbrances at June 30, 2023, are treated as commitments, rather than expenditures, and such encumbered funds are appropriated for expenditure in fiscal year 2023-2024. Conclusion The City of High Point is a culturally diverse community with over 117,000 residents having a wide variety of neighborhood, business, and civic priorities and expectations and is poised for consistent steady growth. The citizens of High Point have come to expect and appreciate the high level of municipal services they enjoy. The City continues to reap the benefits of the vitality and growth from its economic diversity through development and voluntary annexation. The City recognizes the vitality and importance of the High Point Home Furnishings Market to the City, surrounding region, and State. Consequently, the City continues to actively and aggressively partner with public and private organizations to address competing interests to the Market. The City continues to face increasingly complex and expensive service needs, desires and mandates, along with the ever present and expensive challenges for continued and needed infrastructure repair and replacement. The above challenges are tied with an environment of trying to manage, balance and finance municipal services and infrastructure investments with minimal tax and utility rates that our citizens and businesses desire. At this writing, we are excited as our local economy continues to exhibit steady and deliberate recovery evidenced by building permits, company expansions, and job announcements. Measuring those impacts of real benefit and growth will require a long-term x

perspective. The resolve of the community’s citizens and business leaders to stop talking about doing something, and instead making something happen through the Downtown Catalyst Project has resulted in enthusiasm and vitality of an invigorated community. It’s an exciting time to be in and part of the City of High Point. The management of the City of High Point continues to accept the challenge of managing all the City’s resources in the best possible manner to support the City Council’s Strategic Plan points in addition to their commitments and initiatives as well as to deliver municipal services at a cost its citizens will agree to bear. Management continues to use all available tools to retain and recruit the staff necessary to maintain a high level of service to our citizens. The challenge presented to the City can be accomplished through our coordinated planning efforts using the Annual Budget, the Capital Improvement Program, and strategic business planning. Acknowledgments The preparation of this year's report could not have been accomplished without the year-round dedication of the members of the Financial Services Department team, contributions from numerous City operating departments and their staff, and the assistance of the independent auditors, Cherry Bekaert LLP. We wish to especially thank the Mayor and City Council for their support and interest in conducting the financial operations of the City in a responsible and progressive manner. We also thank them for their continued trust, patience, support and commitment they have placed in the City administration as we serve our citizens, businesses, and visitors with exceptional quality services. Respectfully submitted, Tasha Logan Ford City Manager Bobby Fitzjohn Financial Services Director

Government Finance Officers Association

Certificate of Achievement for Excellence in Financial Reporting Presented to

City of High Point North Carolina For its Annual Comprehensive Financial Report For the Fiscal Year Ended June 30, 2022

Executive Director/CEO

ORGANIZATIONAL CHART CITY COUNCIL

CITY CLERK

CITY MANAGER

CITY ATTORNEY

CITY MANAGER REPORTS

DEPUTY CITY MANAGER

POLICE

ASSISTANT CITY MANAGER

ADMINISTRATION

INFORMATION TECHNOLOGY

PUBLIC SERVICES

HUMAN RESOURCES

ECONOMIC DEVELOPMENT

CUSTOMER SERVICE

PARKS & RECREATION

MANAGING DIRECTOR

PLANNING & DEVELOPMENT

LIBRARY & MUSEUM

FLEET SERVICES

COMM. DEV. & HOUSING

ELECTRIC

TRANSPORTATION

DOWNTOWN DEVELOPMENT

FINANCIAL SERVICES

ENGINEERING SERVICES

INSPECTIONS

BUDGET

FACILITIES SERVICES

211 S. Hamilton St. High Point, N.C. 27260

336.883.3111

HighPointNC.gov

FIRE

COMMUNICATIONS

& PUBLIC ENGAGEMENT

THEATRE

LEGISLATIVE AFFAIRS

Report of Independent Auditor To the Honorable Mayor and Members of the City Council City of 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 discretely presented component unit, 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, 2023, 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, based on our audit and the report of other auditors, the financial statements referred to above present fairly, in all material respects, the respective financial position 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 June 30, 2023, and the respective changes in financial position and, where applicable, cash flows thereof and the respective budgetary comparison for the General Fund and the Coronavirus State Local Fiscal Recovery Funds 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 (the “FHP”), a blended component unit, which represents .52%, .19%, and 0.27% of the assets, net position, and revenues, respectively, of the City’s governmental activities and 8.07%, 1.84%, and 3.97% of the assets, fund balance, and revenues, respectively, of the City’s aggregate remaining funds as of June 30, 2023, 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”), a discretely presented component unit, as described in our report on the City’s financial statements as of June 30, 2023, 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 and 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 twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Page 1 cbh.com

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 the Required Supplementary Information (“RSI”), as listed in the table of contents, 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 RSI 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 accompanying combining and individual fund financial statements and Schedule of Expenditures of Federal and State Awards, as required by Title 2 U.S. Code of Federal Regulations (CFR) 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. Page 2

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 and 2022 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 fund financial statements and the schedule of expenditures of federal and state awards are fairly stated, in all material respects, in relation to the basic financial statements for the years ended June 30, 2023 and 2022, 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, 2022 (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 2022 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 schedules is 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 October 30, 2023, 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 City’s internal control over financial reporting and compliance.

Charlotte, North Carolina October 30, 2023

Page 3

MANAGEMENT’S DISCUSSION AND ANALYSIS 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, 2023. Please read it in conjunction with the transmittal letter on page i and the City’s financial statements, which begin on page 17. FINANCIAL HIGHLIGHTS The City continues to experience numerous positive results in this year’s operations. Pleasingly, the City saw increases once again during the fiscal year. The City is financially sound as is evidenced in our results of operations for the fiscal year ended June 30, 2023. 

The assets and deferred outflows of resources for the City of High Point exceeded its liabilities and deferred inflows of resources at the close of the fiscal year by over $700.7 million. The net position for governmental activities increased to $211.2 million, and business-type net position improved to over $489.6 million.



As of the close of the current fiscal year, the City of High Point’s governmental funds reported combined ending fund balances of $90.2 million, an increase of approximately $11.1 million from the prior year, primarily due to growth in property tax and sales tax revenue in the City’s General Fund. Approximately 27.8% of this total amount, or more than $25.0 million, is available for spending at the government’s discretion in the General Fund. This amount represents nearly 20.5% of total budgeted general fund expenditures for the fiscal year completed.



The City’s coveted general obligation bond rating remains a stalwart benchmark to the City’s fiscal 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’s as well as the second highest possible ratings of Aa1 from Moody’s and of AA+ from Fitch were reaffirmed in May 2022.

USING THIS ANNUAL REPORT 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 governmental activities, these statements tell how these services were financed in the short term as well as what remains for future spending. Fund financial statements also report the City’s operations in more detail than the government-wide statements by providing information about the City’s most significant funds. 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, and deferred inflows and outflows using the accrual basis of accounting, which is similar to the accounting used by most private-sector companies. All of the current year’s revenues and expenses are taken into account regardless of when cash is received or paid. These two statements report the City’s net financial position and changes in them. Readers are encouraged to think of the City’s net position—the difference between assets, deferred outflows of resources, liabilities, and deferred inflows of resources—as one way to measure the City’s financial health, or financial position. Over time, increases or decreases in the City’s net position are one indicator of whether its financial health is improving or deteriorating. The reader must also consider other nonfinancial factors, however, such as Page 5

changes in the City’s property tax base and the condition of the City’s infrastructure, to assess the overall health of the City. In the Statement of Net Position and the Statement of Activities, we divide the City into three kinds of activities: 

Governmental activities—Most of the City’s basic services are reported here, including the general administration, police, fire, public services, and parks and recreation departments. Property taxes, sales and occupancy taxes, intergovernmental revenues, along with various Federal and State grants finance most of these activities. The City’s two blended component units are reported as part of governmental activities (see Notes of the Financial Statements, 1.A.).



Business-type activities—The City charges a fee to customers to help it cover all or most of the cost of certain services it provides. The City’s utility systems (water and sewer, electric, solid waste and storm water) and other business-type activities (mass transit and parking facilities) are reported here.



Component units—The City includes a separate legal entity in its report—the High Point ABC Board. Although legally separate, this “component unit” is important because the City appoints the board. The City is not financially accountable for them, even though net profits are distributed to the City.

Reporting the City’s Most Significant Funds Our analysis of the City’s major funds begins on page 20. The fund financial statements 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—use different methods of accounting. 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. These funds are reported using an accounting method called modified accrual accounting, 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 (or differences) between governmental activities (reported in the Statement of Net Position and 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) are the same as the business-type activities we report in the government-wide statements but provide 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 wellness programs.

Page 6

Other Information In addition to the basic financial statements and accompanying notes, this report includes 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 85 of this report. The purpose of the remaining exhibits is to provide the information needed for financial reporting and accounting of those post-employment benefit plans. THE CITY AS A WHOLE AND GOVERNMENT–WIDE FINANCIAL ANALYSIS The government-wide financial statements for the fiscal year ended June 30, 2023 are presented in accordance with GASB Statement (GASBS) No. 34, Basic Financial Statements—and Management’s Discussion and Analysis—for State and Local Governments. Required Components of Annual Financial Report

Figure 1

Management’s

Basic

Discussion and

Financial

Analysis

Statements

Government-wide

Fund

Notes to the

Financial

Statements

Summary

Detail

The City’s combined net position increased by nearly $35.4 million (5.3%) this year to more than $700.7 million from approximately $665.4 million. The positive trends for the last ten fiscal years have combined for an overall increase of nearly $173.7 million (33%) from FY2012’s total of $527 million. These results are resounding proof and testament to City Council’s fiscal policies, priority-based budgeting, and prudent fiscal management during the prolonged economic recovery that the City is positioning itself as a stronger and leaner unit of local government. Our analysis below focuses on the net financial position (Table 1), and changes in net position (Table 2) of the City’s governmental and business-type activities. Page 7

Net Position Total net position for the City increased from approximately $665.4 million to approximately $700.7 million during FY 2022-2023. As shown below, assets and deferred outflows of resources of the City exceeded liabilities and deferred inflows of resources by more than $700.7 million on June 30, 2023. Net position for governmental activities increased by $21.6 million as compared to the prior fiscal year primarily due to growth in property taxes, intergovernmental revenues, and developer contributions. The City’s business-type activities were responsible for $13.7 million of the increase when compared to last fiscal year, primarily due to continued growth charges for services, wholesale power expense reduction and growth in interest income.

Table 1 Net Position (In Thousands) Total Primary Government 2023 2022

Governmental Activities 2023 2022

Business‐type Activities 2023 2022

$ 116,414 288,622 405,036

$ 114,200 281,350 395,550

$ 288,701 436,064 724,765

$ 299,195 420,756 719,951

$ 405,115 724,686 1,129,801

$ 413,395 702,106 1,115,501

Deferred Outflows Deferred Outflows of Resources

35,805

26,331

11,473

7,882

47,278

34,213

Liabilities Liabilities and payables Long‐term liabilities Total liabilities

16,030 200,238 216,268

26,936 182,725 209,661

18,538 221,757 240,295

20,059 219,192 239,251

34,568 421,995 456,563

46,995 401,917 448,912

Deferred Inflows Deferred Inflows of Resources

13,393

22,680

6,382

12,756

19,775

35,436

Net Position Net investment in capital assets Restricted Unrestricted

183,285 59,497 (31,602)

171,668 52,716 (34,844)

263,500 92,741 133,320

252,729 116,466 106,631

446,785 152,238 101,718

424,397 169,182 71,787

Total net position

$ 211,180

$ 189,540

$ 489,561

$ 475,826

$ 700,741

$ 665,366

Assets Current and other assets Capital Assets (net) Total assets

A large portion of the City’s net position (63.8%) at June 30, 2023, represents net investment in capital assets, which are used to provide services to citizens. Net investment in capital assets is reported net of the outstanding related debt; however, resources to repay that debt must be provided in the future from current revenues. Restricted net position, 21.7% of the City’s net position, represents resources that are subject to external restrictions, such as bond-related covenants, stabilization by state statute, and capital project funds. Unrestricted net position increased from $71.8 million in FY2021-2022 to $101.7 million in FY2022-2023. The City has used and will continue to use the unrestricted net position in its business-type activities to finance the continuing operations of the enterprise operations of the City (Water and Sewer, Electric, Mass Transit, Parking, Solid Waste, and Storm Water), especially their related capital investments. Unrestricted net position in the governmental activities—the part of net position that can be used to finance day-to-day operations without constraints established by debt covenants, enabling legislation, or other legal requirements—increased to ($31.6 million) as compared to ($34.8 million) in the prior year on the fullaccrual entity-wide basis of presentation. The City has seen its healthy net unrestricted position fall the last Page 8

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 produce large changes in the City’s cumulative financial position. We believe citizens and bondholders will find a better measure of City’s financial health by looking at governmental fund balances without those accrual changes required for those post-employment benefits. The City’s intention is to continue to use the governmental unrestricted net position to address future capital budget needs and to provide a resource towards potential deficits which may arise from unfunded governmental mandates and legislative changes. These balances are also used as a tool to leverage the need for future tax increases as the demand for current and enhanced services continues to rise as the City addresses the priorities of its citizens. Revenues and Expenses The City’s total revenues (excluding transfers) increased 11.8% ($43.2 million) from the previous fiscal year. Charges for services remained the largest program revenue type and saw a slight increase over FY22. Operating grants and capital contribution revenue increased significantly due to federal funding and developer contributions. Investment income saw a rebound in FY23 due to higher rates offered in the market as well as our money market accounts. Although the property tax rate decreased from 64.75 cents to 61.75 cents, a reevaluation of our property tax base in Guilford County and continued growth led to an increase in approximately $12.3 million in property tax revenue. The total cost of all programs and services increased 5.5 percent ($19.5 million) when compared to last fiscal year. The City continues to moderate increased demands for services and the resulting cost to City operations in continued response to the City Council’s leadership to reduce the governmental burden on our citizens and ratepayers. As in the last two years, increases were focused on programs for identified emphasis areas of livability, transparency, accountability and infrastructure. Results of operations show that public safety, planning, general government and culture and recreation display moderate increases and account for most of the governmental programs increases when compared to last fiscal year, in total governmental expenses increased by nearly $19.7 million, primarily due to increased personnel, equipment and fuel costs during the fiscal year. Business-type expenses decreased by about $200 thousand. Increases in solid waste and water and sewer were offset by a reduction in wholesale power cost in the electric fund. Purchases of electric power expenses decreased substantially by about $11.2 million or 12.3% as compared to the prior year. We expect continued decreases in FY24 and FY25 due to a sale of excess capacity by the North Carolina Municipal Power Agency 1.

Page 9

Table 2 Changes in Net Position (In Thousands)

City Revenues Program revenue: Charges for services Operating grants and contributions Capital grants and contributions General revenue: Property taxes Occupancy and other local taxes Revenues and contributions not restricted to specific programs Other Total City revenues City Expenses General Government Public safety Public and Environmental Services Planning and Community Development Cultural and Recreation Interest expense and related debt service Water and Sewer Electric Mass Transit Parking Solid Waste Storm Water Total City expenses Increase (decrease) in net position before transfers Transfers in (out) Increase (decrease) in net position Net position, beginning Net position, ending

Total Primary Government 2023 2022

Governmental Activities 2023 2022

Business‐type Activities 2023 2022

$ 33,461 27,612 6,207

$ 32,710 20,479 527

$ 206,219 769 1,321

$ 204,658 3,134 832

$ 239,680 28,381 7,528

$ 237,368 23,613 1,359

80,638 3,309

68,328 2,810

‐ ‐

80,638 3,309

68,328 2,810

40,921 2,837 194,985

38,109 (777) 162,186

‐ 4,617 212,926

‐ (6,103) 202,521

40,921 7,454 407,911

38,109 (6,880) 364,707

26,861 76,962 16,913 19,059 30,619 4,000 ‐ ‐ ‐ ‐ ‐ ‐ 174,414

21,719 69,078 20,384 12,232 27,369 3,910 ‐ ‐ ‐ ‐ ‐ ‐ 154,692

‐ ‐ ‐ ‐ ‐ ‐ 58,351 112,755 5,695 456 16,467 4,398 198,122

‐ ‐ ‐ ‐ ‐ ‐ 53,960 120,193 5,338 357 14,787 3,695 198,330

26,861 76,962 16,913 19,059 30,619 4,000 58,351 112,755 5,695 456 16,467 4,398 372,536

21,719 69,078 20,384 12,232 27,369 3,910 53,960 120,193 5,338 357 14,787 3,695 353,022

20,571 1,069

7,494 1,255

14,804 (1,069)

4,191 (1,255)

35,375 ‐

11,685 ‐

21,640 189,540

8,749 180,791

13,735 475,826

2,936 472,890

35,375 665,366

11,685 653,681

$ 211,180

$ 189,540

$ 489,561

$ 475,826

$ 700,741

$ 665,366

Several aspects of the City’s financial operations continue to positively influence the total government net position. These are highlighted as follows:

 The City’s continued high collection of property taxes billed increased to a tax collection rate of 99.3%.  The net position for business-type operations increased this year by $13.7 million as the City increased rates for water and sewer and we saw a decline in the cost of wholesale power. The revenues from utility operations are being utilized to continue 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 resources to moderate expected electric rate adjustments several years from now.

Page 10

Governmental Activities Property tax revenues increased $12.6 million compared to the prior year, primarily due to the reevaluation of the property tax base in Guilford County. Current real and personal property tax collections during fiscal year ended June 30, 2023 remained at 99.3% of the current levy. Total governmental expenses increased by $19.7 million as discussed above. Program revenues provided 38.6% of the support for governmental services. Table 3 presents the cost of each of the City’s programs—general government, public safety, public and environmental services, planning, community and economic development, cultural and recreation—as well as each program’s net cost (total cost less revenues generated by the activities). The net cost shows the financial burden that was placed on the City’s taxpayers by each of these functions.

Tabl e 3 Governmental Acti vi ti es Total Cost of

Net Cost of

Servi ces General Government Publ i c Safety Publ i c and Envi ronmental Servi ces Pl anni ng, Communi ty & Economi c Devel opment Cul tural and Recreati on Interest on l ong‐term debt Total

Servi ces

26,860,752 76,962,297 16,913,605 19,058,774 30,619,367 3,999,786

6,805,612 60,011,534 974,855 11,439,218 23,903,311 3,999,786

174,414,581

107,134,316

Cost of Services - Governmental Activities $90,000

Total Cost of Services

$80,000

Net Cost of Services

Amts. (1000s)

$70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $0 General Government

Public Safety

Public and Environmental Services

Page 11

Planning and Community Development

Cultural and Recreation

Interest

Business-type Activities As highlighted earlier, charges for services of the City’s business-type activities (see Table 2) increased by about $1.6 million. The increase in net position is primarily due to the reduction in wholesale power costs and increase in investment income. FINANCIAL ANALYSIS OF THE CITY’S FUNDS 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, fund balance can be a useful measure of a government’s net resources available for spending at the end of the fiscal year. As the City completed the year, its governmental funds (as presented in the balance sheet) reported a combined fund balance of $90.2 million, a more than $11 million increase over the prior fiscal year, primarily due to growth in General Fund revenues. Of the General Fund fund balances reported, $28.1 million was available to finance future expenditures in the general fund, including $1.8 million committed formally by City Council for economic development, public safety and market development and approximately $1.2 million assigned for various purposes as explained in the Notes to the Financial Statements. The General Fund is the primary operating fund of the City of High Point. At the end of the current fiscal year, total fund balance of the General Fund was $46,1 million. The City Council has determined through 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 flow needs. At June 30, 2023, total fund balance available for appropriation excluding restricted by state statute is 20.4% of the FY 2024 General Fund budget. The amount remaining after restrictions, commitments and assignments is approximately 17.7% of the FY 2024 General Fund budget (exclusive of amounts included in 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, appropriate fund balances that will reduce available fund balance below the 10% policy. The FY 2024 Annual Budget appropriated a total of $1,000,000 of the reported General Fund’s spendable, assigned fund balance to finance economic development incentives in the next fiscal year, leaving a balance of unassigned fund balance for future fiscal years of $25,097,868. 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 prepare the original budget ordinance once exact information is available; and 2) increases in appropriations that become necessary to maintain services. However, expenditures were held in check and the City was able to comply with its budgetary requirements.

Page 12

General Fund Revenues on the Governmental Fund Basis

Revenue Sources

Actual Amount

Property taxes.................................. Occupancy taxes............................... Intergovernmental revenues.............. Licenses and permits......................... Charges for services.......................... Interest on investments..................... Miscellaneous revenues.....................

$ 76,446,376 3,309,152 46,830,277 6,581,775 5,610,656 1,098,773 842,884 $ 140,719,893

Percent of Total 54.2% 2.4% 33.3% 4.7% 4.0% 0.8% 0.6% 100.0%

Increase (Decrease) from 2022 $ 11,708,383 498,894 3,111,942 257,928 453,111 2,076,319 (818,544) $ 17,288,033

The most significant component in General Fund revenues remains to be property taxes. Total revenue increased by about $17.3 million from 2022, primarily due to increased property, sales tax, and investment income revenue. The FY22-23 budget saw a reduction in the property tax rate from 64.75 cents to 61.75 cents and property values in Guilford County were revalued by the County. Growth in property tax valuation, taxable sales, and investment income has fueled the growth in these revenues. General fund revenues recognized a mix of positive and negative variances for the fiscal year with actual results of more than $6 million in excess final budget. Growth in property, sales, and investment income exceeded budget by the largest margins, however nearly all revenues exceeded budget estimates. Departmental fiscal control in operating expenditure savings and personnel provided favorable budget savings. The City originally expected to utilize $500 thousand in fund balance for fiscal year 2021-2022; however, the city’s exceptional fiscal control on spending and increased tax revenue resulted in an addition of $7.5 million to fund balance in fiscal year 2022-2023. General Fund Expenditures on the Governmental Fund Basis

Functions General Government........................................... Public Safety ...................................................... Public Services.................................................... Planning, Community and Economic Dev................ Cultural and Recreation.......................................

Page 13

Amount 17,933,826 48,794,751 10,913,073 9,887,149 24,791,961 112,320,760

Percent of Total 16.0% 43.5% 9.7% 8.8% 22.1% 100.1%

Increase (Decrease) from 2022 $ 2,686,650 (1,205,818) 1,823,867 1,299,970 1,486,481 $ 6,091,150

General Government

15% 22%

Public Safety Public Services Planning, Community & Economic Dev

Cultural and Recreation 10%

44%

The most significant changes in General Fund expenditures when compared to the previous fiscal year occurred in public safety. Public Safety expenditures decreased primarily due to certain personnel expenditures realized in the American Rescue Plan Act fund, reducing general fund expenditures. All other function areas saw increases as we return to normal operations post-Covid and experience higher personnel and benefit costs, as well as inflation. 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 2023, due to larger than normal construction expenses. Regardless of the fund’s status as a major project fund, the City presents it as such every year primarily due to the continued level of expenditures anticipated in future years that will require presentation as major. The ARPA fund was presented as a major fund this year and in the prior year, however we do not anticipate any fund activity in FY24 as it has been exhausted of all resources. CAPITAL ASSET AND DEBT ADMINISTRATION Capital Assets At the end of fiscal year 2023, the City had approximately $724.7 million invested in a broad range of capital assets, including police and fire equipment, buildings, park facilities, roads, bridges, and water and sewer lines and electric infrastructure (See Table 4 below). This amount represents a net increase (including additions and deductions) of $21 million, or about 3%, over last year. Most of the additions during the fiscal year continue to come from the expenditure of previously issued general obligation, limited obligation and revenue bonds. Additional information on the City’s capital assets can be found in Notes to the Financial Statements (pages 48-55).

Page 14

Capital Assets (In Thousands) Governmental Activities 2023 2022

Business‐type Activities 2023 2022

Right to use assets, net of amortization Land and land improvements Intangibles Construction in progress Buildings and related improvements Equipment Infrastructure Accumulated depreciation

3,411 22,427 331 22,783 171,395 100,319 578,285 (610,329)

1,552 21,174 2,161 66,109 117,309 96,502 570,088 (591,993)

Total capital assets

$ 288,622

$ 282,902

$ 436,064

587 14,268 5,580 51,824 115,277 29,078 655,062 (435,612)

Total Primary Government 2023 2022

55 13,360 5,249 54,117 114,977 39,742 619,551 (426,240)

$ 420,811

3,998 36,695 5,911 74,607 286,672 129,397 1,233,347 (1,045,941) $

724,686

1,607 34,534 7,410 120,226 232,286 136,244 1,189,639 (1,018,233) $

703,713

The City’s FY 2023-2024 capital pay-as-you-go budget calls for spending another $35.4 million for infrastructure maintenance and capital projects as outlined below, principally for the utility system improvements and infrastructure. These capital projects are budgeted as follows: General Capital Project Fund......................................... $ Water & Sewer Fund...................................................... Electric.............................................................................. Solid Waste..................................................................... Other.................................................................................

5,689,595 10,998,250 9,850,000 1,021,000 7,871,763

Total.............................................................................. $

35,430,608

Debt At year-end, the City had approximately $310.2 million in bonds and notes outstanding versus $329.7 million last year—a decrease of 5.9%—as shown in Table 5. Table 5 Outstanding Debt (In Thousands) Governmental Activities 2023 2022

Total Primary Government 2023 2022

Business‐type Activities 2023 2022

General obligation bonds Limited obligation bonds, including premium Revenue bonds Notes, installment contracts, leases, and SBITAs

63,865 45,211 ‐ 16,735

70,538 47,713 ‐ 17,668

5,556 ‐ 178,085 716

7,191 ‐ 186,282 317

69,421 45,211 178,085 17,451

77,729 47,713 186,282 17,985

Total outstanding debt

125,811

135,919

184,357

193,790

310,168

329,709

The City’s general obligation bond rating continues to carry high and stable ratings from the three national rating agencies at June 30, 2023. Standard & Poor’s rates the City’s credit at AAA, the highest available. Moody’s and Fitch rate the City’s credit at Aa1 and AA+, respectively. The City’s bond ratings are a clear indication of the sound financial management practices and solid financial condition of the City of High Point as affirmed by their most recent reports in May 2022. These high financial credit ratings are a primary factor in keeping interest costs low on the City’s outstanding debt. The State limits the amount of general Page 15

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 $1.055 billion state-imposed limit. 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 the City’s long-term liabilities is presented in the notes to the financial statements (pages 70-79). ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND RATES The City’s elected and appointed officials considered many factors when setting the FY 2023-2024 budget and tax rates that support the governmental activities and fees that will be charged for the business-type activities. The property tax rate remained steady for FY 2023-2024 at 61.75 cents. Water and sewer consumption growth as well as electric load growth were projected to be largely flat for another year. The budget included a 4% increase for water and sewer customers. The total General Fund budget appropriates $141.9 million, which is an increase of 7% over the adopted 2023 budget of $132.6 million. As discussed above, property taxes remained steady at a rate of 61.75 cents. The City continues to review and evaluate strategic concepts employed during several prior fiscal years to hold operating costs not in strategic plans or identified priorities. The City is utilizing this strategy to maintain the high level of quality and services that our citizens, businesses, and visitors enjoy and are accustomed to receiving. The City’s business-type activities are also expected to maintain their strength or improve in the adoption of the Annual Budget for FY 2023-2024:  



Water and sewer rates were increased 4%, estimated revenues and expenditures are consistent with the City’s multiyear financial strategy for operations and capital financing. The fund is expected to maintain commitments for pay-as-you-go infrastructure and debt funded projects. The adopted budget increases the solid waste availability fee by $1 per month and the monthly stormwater fee by $1 per equivalent residential unit (ERU). There were no rate increases for the Electric, Transit, or Parking Facilities.

CONTACTING THE CITY’S FINANCIAL MANAGEMENT This financial report is designed to provide our citizens, taxpayers, customers, and investors and creditors with a general overview of the City’s finances and to show the City’s accountability for the money received. If you have questions about this report or need additional financial information, contact the Financial Services Department, City of High Point, P.O. Box 230, High Point, NC 27261-0230.

Page 16

CITY OF HIGH POINT, NORTH CAROLINA STATEMENT OF NET POSITION June 30, 2023

Governmental Activities ASSETS Cash and investments............................................................................... Receivables: Taxes (net).......................................................................................... Accounts receivable and accrued revenue (net).................................... Notes (net)........................................................................................... Accrued interest................................................................................... Due from other funds........................................................................... Lease receivable.................................................................................. Property held for resale............................................................................ Internal balances...................................................................................... Long term interfund loan.......................................................................... Due from component unit......................................................................... Inventory.................................................................................................. Prepaid items............................................................................................ Security deposits...................................................................................... Restricted Assets: Cash and investments.......................................................................... Capital Assets: Right to use assets, net of amortization Land, non-depreciable improvements, and construction in progress..... Other capital assets, net of related depreciation.................................... Total capital assets.......................................................................... TOTAL ASSETS

DEFERRED OUTFLOWS OF RESOURCES Deferred Outflows of Resources............................................................... TOTAL DEFERRED OUTFLOWS OF RESOURCES

83,784,297

Primary Government Business-type Activities $

132,459,543

Component Unit High Point ABC Board

Total $

216,243,840

2,703,772

188,765 13,396,427 5,349,130 285,128 2,065 8,533,525 1,770,079 (6,359,004) (14,752,748) 420,970 640,155 797,329 -

19,860,957 614,738 60,115 6,359,004 14,752,748 10,844,129 138,607 -

188,765 33,257,384 5,349,130 899,866 2,065 8,593,640 1,770,079 420,970 11,484,284 935,936 -

1,999 3,537,281 97,452 4,025

22,357,588

103,610,899

125,968,487

3,411,456 45,326,220 239,884,518 288,622,194 405,035,900

586,574 66,091,704 369,386,058 436,064,336 724,765,076

3,998,030 111,417,924 609,270,576 724,686,530 1,129,800,976

4,757,525 689,656 1,740,622 7,187,803 13,532,332

35,805,339 35,805,339

11,473,192 11,473,192

47,278,531 47,278,531

904,890 904,890

10,591,438 1,047,879 -

15,689,224 1,094,680 2,065 -

26,280,662 2,142,559 2,065 -

1,038,080 420,970 21,438

LIABILITIES Accounts payable and accrued expenses................................................... Accrued interest payable.......................................................................... Due to City of High Point......................................................................... Due to other governments......................................................................... Liabilities payable from restricted assets: Accounts payable and accrued expenses............................................... Unearned revenues and deposits........................................................... Long-term liabilities: Net pension liability - LGERS.............................................................. Total pension liability - LEOSSA......................................................... Total OPEB liability............................................................................. Due in one year................................................................................... Due in more than one year................................................................... TOTAL LIABILITIES

2,062,616 2,328,061

1,752,072

2,062,616 4,080,133

42,460,623 17,352,114 9,169,996 16,884,239 114,371,247 216,268,213

15,537,769 4,248,199 12,091,525 189,879,487 240,295,021

57,998,392 17,352,114 13,418,195 28,975,764 304,250,734 456,563,234

1,093,309 316,739 249,470 4,675,024 7,815,030

DEFERRED INFLOWS OF RESOURCES Deferred inflows of resources................................................................... TOTAL DEFERRED INFLOWS OF RESOURCES

13,393,440 13,393,440

6,382,196 6,382,196

19,775,636 19,775,636

124,480 124,480

183,284,503

263,499,796

446,784,299

2,430,278

31,952,469 10,867,168 9,656,645 394,507 5,826,841 788,426 (31,590,973) 211,179,586

50,857,094 41,723,184 160,965 133,320,012 489,561,051

31,952,469 10,867,168 60,513,739 41,723,184 394,507 160,965 5,826,841 788,426 101,729,039 700,740,637

810,453 3,256,981 6,497,712

NET POSITION Net investment in capital assets................................................................ Restricted for: Stabilization by State Statute............................................................... Debt service........................................................................................ Capital projects.................................................................................... Rate stabilization................................................................................. Community and economic development............................................... System development fees, capital reserve............................................ Grant programs.................................................................................... Transportation..................................................................................... High Point ABC Board working capital............................................... Unrestricted............................................................................................. TOTAL NET POSITION

The notes to basic financial statements are an integral part of this statement.

Page 17

CITY OF HIGH POINT, NORTH CAROLINA Statement of Activities For the Year Ended June 30, 2023

Functions/Programs Primary Government: Governmental activities: General Government.......................................................................................... Public Safety...................................................................................................... Public and Environmental Services................................................................... Planning/Community and Economic Development.......................................... Cultural and Recreation..................................................................................... Interest and Fiscal Charges................................................................................ Total governmental activities........................................................................

Charges for Services

Expenses

Program Revenues Operating Capital Grants and Grants and Contributions Contributions

26,860,752 76,962,297 16,913,605 19,058,774 30,619,367 3,999,786 174,414,581

19,915,594 1,020,396 2,887,171 4,538,426 5,098,966 33,460,553

24,261 652,587 92,381 769,229 $ 28,381,553

1,039,792 281,030 1,320,822 7,528,210

$ $

Business-type activities: Water and Sewer ............................................................................................... Electric............................................................................................................... Mass Transit....................................................................................................... Parking............................................................................................................... Solid Waste........................................................................................................ Stormwater......................................................................................................... Total business-type activities......................................................................... Total primary government..........................................................................................

58,350,690 112,755,049 5,695,229 455,882 16,467,144 4,398,218 198,122,212 $ 372,536,793

63,541,534 121,393,822 771,509 308,684 14,870,047 5,333,957 206,219,553 239,680,106

Component unit: High Point ABC Board...................................................................................... Total component unit..................................................................................................

$ $

The notes to basic financial statements are an integral part of this statement.

Page 18

99,162 15,930,367 6,884,575 3,081,130 1,617,090 27,612,324

40,384 6,167,004 6,207,388

CITY OF HIGH POINT, NORTH CAROLINA Statement of Activities For the Year Ended June 30, 2023

Functions/Programs Primary Government: Governmental activities: General Government................................................................................... $ Public Safety............................................................................................... Public and Environmental Services............................................................ Planning/Community and Economic Development................................... Cultural and Recreation.............................................................................. Interest and Fiscal Charges......................................................................... Total governmental activities.................................................................

Net Revenue (Expense) and Change in Net Position Primary Government Governmental Business-Type Activities Activities Total

(6,805,612) (60,011,534) (974,855) (11,439,218) (23,903,311) (3,999,786) (107,134,316)

Business-type activities: Water and Sewer ....................................................................................... Electric........................................................................................................ Mass Transit............................................................................................... Parking........................................................................................................ Solid Waste................................................................................................. Stormwater.................................................................................................. Total business-type activities................................................................. Total primary government................................................................................... $

(107,134,316)

Component unit: High Point ABC Board............................................................................... $ Total component unit.......................................................................................... $

Component Unit ABC Board

(6,805,612) (60,011,534) (974,855) (11,439,218) (23,903,311) (3,999,786) (107,134,316)

6,230,636 8,944,064 (4,271,133) (147,198) (1,504,716) 935,739 10,187,392 10,187,392

$ $

General revenues: Property taxes.................................................................................................... $ Occupancy and other local taxes....................................................................... Revenues and contributions not restricted to specific programs...................... Gain on the disposal of capital assets ............................................................... Investment earnings (losses)............................................................................. Total general revenues not including transfers Transfers Total general revenues and transfers.............................................................

80,637,400 3,309,152 40,921,282 416,639 2,420,075 127,704,548 1,069,088 128,773,636

Change in net position.........................................................................................

21,639,320

13,735,122

35,374,442

449,017

Net position - beginning......................................................................................

189,540,266

475,825,929

665,366,195

6,048,695

Net position - ending........................................................................................... $

211,179,586

Page 19

6,230,636 8,944,064 (4,271,133) (147,198) (1,504,716) 935,739 10,187,392 (96,946,924)

$ $

402,004 402,004

4,616,818 4,616,818 (1,069,088) 3,547,730

80,637,400 3,309,152 40,921,282 416,639 7,036,893 132,321,366 132,321,366

12,051 34,962 47,013 47,013

489,561,051

700,740,637

6,497,712

CITY OF HIGH POINT, NORTH CAROLINA Balance Sheet Governmental Funds June 30, 2023

ASSETS Cash and investments...............................................................................................................

General Fund

Major Funds American Rescue Plan Fund

41,384,105

Receivables (net): Taxes.................................................................................................................................... Accounts receivable and accrued revenue.............................................................................. Notes and loans, net.............................................................................................................. Accrued interest.................................................................................................................... Due from other funds............................................................................................................ Property held for sale............................................................................................................... Due from component unit......................................................................................................... Lease receivable....................................................................................................................... Prepaid items........................................................................................................................... Restricted assets: Cash and investments............................................................................................................ TOTAL ASSETS LIABILITIES Accounts payable and accrued expenses................................................................................... Contracts payable..................................................................................................................... Due to other funds................................................................................................................... Liabilities payable from restricted assets: Accounts payable and accrued expenses................................................................................. Unearned revenue.................................................................................................................. Deposits and other liabilities...................................................................................................

188,765 10,942,933 224,007 2,065 420,970 6,613,449 691,447

1,916,717

Non-Major Governmental Funds

21,036,427

353,553 -

Total Governmental Funds

11,286,608

1,920,937 5,349,130 49,383 1,770,079 1,920,076 55,882

16,657,444

73,707,140 188,765 13,217,423 5,349,130 273,390 2,065 1,770,079 420,970 8,533,525 747,329

3,783,427

22,357,588

62,384,458

38,047,424

26,135,522

126,567,404

7,222,199 149,831 -

476,989 14,752,748

191,939 -

7,891,127 149,831 14,752,748

TOTAL LIABILITIES

DEFERRED INFLOWS OF RESOURCES Unavailable taxes..................................................................................................................... Leases...................................................................................................................................... Deferred (prepaid) taxes and licenses........................................................................................ Unavailable grant receivables.................................................................................................... TOTAL DEFERRED INFLOWS OF RESOURCES FUND BALANCES Non Spendable: Prepaid items........................................................................................................................ Restricted: Stabilization by state statute.................................................................................................. Community and economic development................................................................................. Grant programs..................................................................................................................... Transportation...................................................................................................................... Debt service.......................................................................................................................... Capital projects..................................................................................................................... Committed: Public safety.......................................................................................................................... Economic development......................................................................................................... Market development............................................................................................................. Assigned: Subsequent year's expenditures.............................................................................................. General government.............................................................................................................. Public safety.......................................................................................................................... Culture & recreation............................................................................................................. Public services and transportation.......................................................................................... Unassigned TOTAL FUND BALANCES TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES

General Capital Projects Fund

13 1,916,717

1,103,608 -

959,008 411,331 -

2,062,616 411,344 1,916,717

9,288,760

16,333,345

1,562,278

27,184,383

188,765 6,521,394 47,824 193,110 6,951,093

1,852,851 361,145 2,213,996

188,765 8,374,245 47,824 554,255 9,165,089

691,447

55,882

747,329

16,567,106 788,426 -

12,057,434 9,656,645

3,327,929 2,074,507 5,826,841 10,867,168 -

31,952,469 2,074,507 5,826,841 788,426 10,867,168 9,656,645

894,953 935,312 1,998

1,000,000 20,000 8,193 73,994 65,308 25,097,868 46,144,605

21,714,079

206,921 22,359,248

1,206,921 20,000 8,193 73,994 65,308 25,097,868 90,217,932

62,384,458

Fund balances as reported above Amounts reported for governmental activities in the Statement of Net Position are different because: Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds. Right to use assets used in governmental activities are not financial resources and therefore are not reported in the funds. Internal service funds used to allocate costs among the funds are included in the Statement of Net Position. Internal service funds profit/loss is allocated to the business-type funds in the Statement of Net Position. Some liabilities are not payable in the current period and are, therefore, not reported in the funds. OPEB and pension related deferred outflows OPEB and pension related deferred inflows Receivables that are not available to pay for current period expenditures are reported as deferred inflows in the funds. Net position of governmental activities The notes to basic financial statements are an integral part of this statement.

Page 20

38,047,424 -

26,135,522

126,567,404

90,217,932

264,095,993 2,993,476 25,931,297 (6,359,004) (196,650,172) 35,113,153 (4,906,109) 743,020 211,179,586

CITY OF HIGH POINT, NORTH CAROLINA Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds For the Year Ended June 30, 2023 Major Funds American Rescue Plan Fund

General Fund Revenues: Property taxes............................................................ Occupancy and other local taxes................................ Intergovernmental...................................................... Licenses and permits.................................................. Charges for services................................................... Lease revenue............................................................ Interest (losses) on investments.................................. Sale of capital assets.................................................. Interest on lease receivable......................................... Miscellaneous............................................................ Total revenues....................................................

76,446,376 3,309,152 46,830,277 6,581,775 5,610,656 1,098,773 72,257 233,785 536,842 140,719,893

Non-Major Governmental Funds

General Capital Projects Fund

13,837,426 105,672 13,943,098

700,000 1,499 1,854,010 2,555,509

4,416,581 6,235,607 411,745 875,676 22,000 28,237 1,226,124 13,215,970

Total Governmental Funds $

80,862,957 3,309,152 67,603,310 6,581,775 5,610,656 411,745 2,081,620 94,257 262,022 3,616,976 170,434,470

Expenditures: General government............................................... Public safety........................................................... Public services - transportation............................... Public services - environmental services................. Community and economic development................. Cultural and recreation........................................... Debt service: Principal retirement................................................. Interest and fiscal charges....................................... Total expenditures..............................................

16,519,410 47,470,887 10,581,618 327,328 9,871,900 24,514,522

13,837,426 -

658,329 369,401 3,192,422 5,627,241 7,121,268

8,358 788,539 1,964,785 12,600 2,656,754 792,823

17,186,097 62,466,253 15,738,825 339,928 18,155,895 32,428,613

2,883,011 152,084 112,320,760

13,837,426

43,323 17,011,984

9,230,257 3,703,225 19,157,341

12,113,268 3,898,632 162,327,511

Excess (deficiency) of revenue over (under) expenditures

28,399,133

105,672

(14,456,475)

(5,941,371)

8,106,959

Other financing sources (uses): Lease liabilities issued................................................ IT subscription agreement.......................................... Transfers in................................................................ Transfers in related to payments in lieu of taxes......... Transfers out.............................................................. Total other financing sources (uses)....................

309,208 2,724,689 1,160,000 1,006,151 (26,148,080) (20,948,032)

(105,672) (105,672)

16,556,635 16,556,635

8,358 7,464,381 (21,326) 7,451,413

309,208 2,733,047 25,181,016 1,006,151 (26,275,078) 2,954,344

Net change in fund balances...............................

7,451,101

2,100,160

1,510,042

11,061,303

Fund balances, beginning............................................... Fund balances, beginning, blended component unit........ Fund balances, ending....................................................

38,693,504 46,144,605

19,613,919 21,714,079

18,812,277 2,036,929 22,359,248

77,119,700 2,036,929 90,217,932

The notes to basic financial statements are an integral part of this statement.

Page 21

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, 2023

Net change in fund balances - total governmental funds

$ 11,061,303

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 22-23 in the funds but recorded / accrued in FY 21-22 on the Statement of Activities

Debt principal payments are reported as decreases in liabilities in the Statement of Net Position, but reported as expenditures in the funds

(890,982)

12,113,268

Capital outlays are reported as increases in assets in the Statement of Net Position, but reported as an expenditure in the funds

15,093,308

Depreciation is recognized as an expense in the Statement of Activities, but is not reported in the funds

(15,894,501)

Right to use assets capital outlay expenditures which were capitalized

3,131,337

Amortization expense for right ro use assets

(1,692,354)

Infrastructure contributed by developers is considered capital contribution for the Statement of Activities, but is not reported in the funds

6,167,004

Capital outlays and the sale of capital assets for blended component units are treated as revenues and expenditures in the funds 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 Lease liabilities issued

(3,000)

(3,396,852) (309,208)

IT subscription Agreement

(2,733,047)

Gain (loss) on the disposal of capital assets is recorded in the Statement of Activities (excludes internal service fund gain/loss)

26,150

Proceeds from the sale of capital assets are included in the Gain/Loss on disposal in the Statement of Activities, but reported as revenues in the funds

(26,350)

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.

(802,896)

Internal service funds current year profit/loss is allocated to the business-type funds in the Statement of Activities

(203,860)

Change in net position of governmental activities

$ 21,639,320

The notes to basic financial statements are an integral part of this statement.

Page 22

` CITY OF HIGH POINT, NORTH CAROLINA General Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2023

Variance From Final Budget Positive (Negative)

Budget Original Revenues: Property taxes.................................................... Occupancy and other local taxes....................... Intergovernmental.............................................. Licenses and permits......................................... Charges for services.......................................... Interest (losses) on investments......................... Sale of capital assets.......................................... Interest on lease receivable................................ Miscellaneous.................................................... Total revenues................................................

Expenditures: General government.......................................... Public safety...................................................... Public services - transportation.......................... Public services - environmental services........... Community and economic development............ Cultural and recreation...................................... Other.................................................................. Total expenditures..........................................

Final

75,100,167 2,575,000 44,450,624 5,938,675 5,233,335 150,000 500,117 133,947,918

Actual

75,100,167 3,320,000 44,450,624 5,938,675 5,233,335 150,000 500,117 134,692,918

76,446,376 3,309,152 46,830,277 6,581,775 5,610,656 1,098,773 72,257 233,785 536,842 140,719,893

1,346,209 (10,848) 2,379,653 643,100 377,321 948,773 72,257 233,785 36,725 6,026,975

16,702,417 62,293,466 11,410,895 340,833 10,434,674 24,870,611 (600,000) 125,452,896

21,156,113 48,589,039 15,272,238 343,540 10,661,145 26,234,497 (600,000) 121,656,572

17,933,826 48,794,751 10,585,745 327,328 9,887,149 24,791,961 112,320,760

3,222,287 (205,712) 4,686,493 16,212 773,996 1,442,536 (600,000) 9,335,812

8,495,022

13,036,346

28,399,133

15,362,787

1,160,000 1,006,151 (11,161,173) 500,000 (8,495,022)

309,209 3,527,791 1,160,000 1,006,151 (26,268,741) 7,229,244 (13,036,346)

309,208 2,724,689 1,160,000 1,006,151 (26,148,080) (20,948,032)

(1) (803,102) 120,661 (7,229,244) (7,911,686)

7,451,101

Fund balances, beginning.........................................................................................................

38,693,504

Excess (deficiency) of revenues over (under) expenditures ………………………………. Other financing sources (uses): Lease liabilities issued....................................... IT subscription agreement................................. Transfers in........................................................ Transfers in related to payment in lieu of taxes Transfers out...................................................... Appropriated fund balance................................ Total other financing sources (uses).............. Net change in fund balance...................................

Fund balances, ending..............................................................................................................

The notes to basic financial statements are an integral part of this statement.

Page 23

46,144,605

7,451,101

CITY OF HIGH POINT, NORTH CAROLINA Coronavirus State Local Fiscal Recovery Funds (ARPA Funds) Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 2023

Budget

Variance Positive (Negative)

Actual

Revenues: Restricted intergovernmental: ARPA Funds................................................................................ Total revenues...........................................................................

$ 13,943,099 13,943,099

Expenditures: Public safety................................................................................. Total expenditures.....................................................................

13,837,426 13,837,426

Excess (deficiency) of revenues over (under) expenditures

105,673

105,672

(1)

Other financing sources (uses): Transfer to General Capital Project Fund..................................... Total other financing sources (uses)..........................................

(105,673) (105,673)

(105,672) (105,672)

1 1

Net change in fund balance

Fund balance, beginning.................................................................. Fund balance, ending.......................................................................

Page 25

13,943,098 13,943,098

(1) (1)

CITY OF HIGH POINT, NORTH CAROLINA Statement of Net Position Proprietary Funds June 30, 2023

Major Funds Business-Type Activities - Enterprise Funds

Water and Sewer

Electric

ASSETS Current assets Cash and investments..................................................................................................................................................... Receivables: Accounts and grants (net)........................................................................................................................................ Accrued interest........................................................................................................................................................ Due from other funds............................................................................................................................................... Lease receivable............................................................................................................................................................. Inventory......................................................................................................................................................................... Prepaid expenses............................................................................................................................................................ Total current assets

43,145,533

69,325,929

6,676,950 173,268 60,115 50,055,866

10,952,150 338,437 1,400,000 10,668,755 92,685,271

34,199,849

51,442,358

15,012 8,886,182 74,541,190 11,970,780 500,568,177 874,036 36,471,013 (291,229,070) 342,097,320 376,297,169

335,674 1,029,491 88,044 3,065,098 132,419,916 4,671,767 11,092,904 (97,039,987) 55,662,907 107,105,265

426,353,035

199,790,536

DEFERRED OUTFLOWS OF RESOURCES Deferred outflows of resources........................................................................................................................................... Total Deferred Outflows of Resources

3,746,413 3,746,413

4,126,537 4,126,537

LIABILITIES Liabilities Current liabilities: Accounts payable and accrued expenses....................................................................................................................... Contracts Payable........................................................................................................................................................... Current maturities of long-term debt............................................................................................................................. Current maturities of lease liability............................................................................................................................... Current maturities of SBITA liability............................................................................................................................ Current maturities of compensated absences................................................................................................................ Accrued interest payable................................................................................................................................................ Deposits.......................................................................................................................................................................... Due to Other Funds........................................................................................................................................................ Total current liabilities

4,148,749 788,418 9,762,679 5,012 8,563 429,976 1,062,978 453,390 16,659,765

9,522,127 28,882 10,729 48,128 503,208 1,292,032 11,405,106

Noncurrent liabilities: Accrued closure/postclosure costs................................................................................................................................ Net pension liability....................................................................................................................................................... Loans payable................................................................................................................................................................. Total other post employment benefits liability............................................................................................................. General obligation bonds payable................................................................................................................................. Revenue bonds payable................................................................................................................................................. Obligation under installment purchases........................................................................................................................ Lease liability................................................................................................................................................................. Subcription (SBITA) Liability....................................................................................................................................... Compensated absences.................................................................................................................................................. Total Noncurrent liabilities Total Liabilities

5,063,260 195,656 1,412,936 600,875 168,744,591 171,366 176,188,684 192,848,449

5,695,442 1,262,651 7,418 235,991 268,993 7,470,495 18,875,601

DEFERRED INFLOWS OF RESOURCES Deferred inflows of resources.............................................................................................................................................. Total Deferred Inflows of Resources

3,006,371 3,006,371

340,071 340,071

NET POSITION Net Position Net investment in capital assets.......................................................................................................................................... Restricted for capital projects.............................................................................................................................................. Restricted for rate stabilization........................................................................................................................................... Restricted for system development fees, capital reserve.................................................................................................... Unrestricted.......................................................................................................................................................................... Total Net Position

174,813,269 30,738,587 160,965 28,531,807 234,244,628

55,360,641 3,876,516 41,723,184 83,741,060 184,701,401

Noncurrent assets Restricted assets: Cash and investments............................................................................................................................................... Capital assets: Right to use assets, net of amortization Land.......................................................................................................................................................................... Buildings and other improvements.......................................................................................................................... Equipment................................................................................................................................................................ Infrastructure............................................................................................................................................................ Intangibles................................................................................................................................................................ Construction in progress.......................................................................................................................................... Less accumulated depreciation................................................................................................................................ Total capital assets (net of accumulated depreciation/amortization)............................................................... Total noncurrent assets.......................................................................................................................................

Total Assets

The notes to basic financial statements are an integral part of this statement.

Page 26

CITY OF HIGH POINT, NORTH CAROLINA Statement of Net Position Proprietary Funds June 30, 2023

Business-Type Activities - Enterprise Funds Non-major Enterprise Funds

Governmental Activities

Total Enterprise

Internal Service Fund

ASSETS Current assets Cash and investments................................................................................................ $ Receivables: Accounts and grants (net).................................................................................... Accrued interest................................................................................................... Due from other funds........................................................................................... Lease receivable........................................................................................................ Inventory.................................................................................................................... Prepaid expenses....................................................................................................... Total current assets

19,988,081

132,459,543

10,077,157

2,231,857 103,033 13,352,748 175,374 138,607 35,989,700

19,860,957 614,738 14,752,748 60,115 10,844,129 138,607 178,730,837

179,004 11,738 640,155 50,000 10,958,054

17,968,692

103,610,899

235,888 4,352,494 40,648,095 14,042,285 22,074,244 34,037 4,259,620 (47,342,554) 38,304,109 56,272,801

586,574 14,268,167 115,277,329 29,078,163 655,062,337 5,579,840 51,823,537 (435,611,611) 436,064,336 539,675,235

417,980 37,740 1,216,529 59,932,144 (40,071,668) 21,532,725 21,532,725

Total Assets

92,262,501

718,406,072

32,490,779

DEFERRED OUTFLOWS OF RESOURCES Deferred outflows of resources....................................................................................... Total Deferred Outflows of Resources

3,600,242 3,600,242

11,473,192 11,473,192

692,186 692,186

LIABILITIES Liabilities Current liabilities Accounts payable and accrued expenses.................................................................. Contracts Payable...................................................................................................... Current maturities of long-term debt........................................................................ Current maturities of lease liability.......................................................................... Current maturities of SBITA liability....................................................................... Current maturities of compensated absences........................................................... Accrued interest payable........................................................................................... Deposits..................................................................................................................... Due to Other Funds................................................................................................... Total current liabilities

1,154,831 46,217 876,797 38,133 53,637 354,663 31,702 6,650 2,065 2,564,695

14,825,707 863,517 10,639,476 53,874 110,328 1,287,847 1,094,680 1,752,072 2,065 30,629,566

2,550,480 913,673 31,794 87,098 87,805 3,670,850

Noncurrent liabilities Accrued closure/postclosure costs............................................................................ Net pension liability.................................................................................................. Loans payable............................................................................................................ Total other post employment benefits liability........................................................ General obligation bonds payable............................................................................ Revenue bonds payable............................................................................................. Obligation under installment purchases................................................................... Lease liability............................................................................................................ Subcription (SBITA) Liability.................................................................................. Compensated absences.............................................................................................. Total Noncurrent liabilities Total Liabilities

15,726,162 4,779,067 1,572,612 3,689,192 38,937 40,775 159,531 26,006,276 28,570,971

15,726,162 15,537,769 195,656 4,248,199 4,290,067 168,744,591 46,355 276,766 599,890 209,665,455 240,295,021

939,574 250,920 2,210,382 31,636 83,044 3,515,556 7,186,406

DEFERRED INFLOWS OF RESOURCES Deferred inflows of resources......................................................................................... Total Deferred Inflows of Resources

3,035,754 3,035,754

6,382,196 6,382,196

65,262 65,262

NET POSITION Net Position Net investment in capital assets...................................................................................... Restricted for capital projects......................................................................................... Restricted for rate stabilization....................................................................................... Restricted for system development fees, capital reserve............................................... Unrestricted..................................................................................................................... Total Net Position $

33,325,886 16,241,991 14,688,141 64,256,018

263,499,796 50,857,094 41,723,184 160,965 126,961,008 483,202,047

18,175,098 7,756,199 25,931,297

Noncurrent assets Restricted assets: Cash and investments.......................................................................................... Capital assets: Right to use assets, net of amortization Land..................................................................................................................... Buildings and other improvements..................................................................... Equipment............................................................................................................ Infrastructure........................................................................................................ Intangibles............................................................................................................ Construction in progress..................................................................................... Less accumulated depreciation........................................................................... Total capital assets (net of accumulated depreciation/amortization)........... Total noncurrent assets..................................................................................

Reconciliation to the Statement of Net Position: Net position of enterprise funds Adjustment to reflect the profit/loss distribution of internal service fund activities Net position of business-type activities

$ $

Page 27

483,202,047 6,359,004 489,561,051

CITY OF HIGH POINT, NORTH CAROLINA Statement of Revenues, Expenses and Changes in Fund Net Position Proprietary Funds For the Year Ended June 30, 2023

Major Funds Business-type - Enterprise Funds Water and Sewer Operating revenues Charges for services.............................................................................................................. System development fees, capital reserve..................................................................................... Licenses and permits............................................................................................................. Miscellaneous........................................................................................................................ Total operating revenues...................................................................................................

61,780,227 144,948 808,994 62,734,169

Electric $

121,287,004 106,818 121,393,822

Operating expenses Management and administration........................................................................................... Maintenance and distribution................................................................................................ Power purchases.................................................................................................................... Treatment plants.................................................................................................................... Other services and charges.................................................................................................... Depreciation and amortization.............................................................................................. Total operating expenses................................................................................................... Operating income (loss)....................................................................................................

8,892,502 11,167,194 13,459,906 3,084,026 15,170,810 51,774,438 10,959,731

5,729,553 19,823,144 79,988,439 3,708,609 3,505,217 112,754,962 8,638,860

Nonoperating revenues (expenses) Interest (losses) on investments............................................................................................. Intergovernmental.................................................................................................................. Other intergovernmental reimbursements............................................................................. Miscellaneous and other nonoperating.................................................................................. Interest on lease receivable.................................................................................................... Interest expense and fiscal charges........................................................................................ Amortization of gain on refunding........................................................................................ Gain (loss) on disposal of capital assets................................................................................ Total nonoperating revenues (expenses)...........................................................................

1,861,034 400,000 28,004 753 (6,543,836) 779,361 (3,474,684)

2,118,642 281,030 24,261 (235) (5) 2,423,693

Income (loss) before capital contributions and transfers

7,485,047

11,062,553

Capital contributions................................................................................................................. Transfers in................................................................................................................................ Transfers out.............................................................................................................................. Change in net position...........................................................................................................

639,792 (579,000) 7,545,839

(2,901,151) 8,161,402

Total net position - beginning....................................................................................................

226,698,789

176,539,999

Total net position - ending.........................................................................................................

The notes to basic financial statements are an integral part of this statement.

Page 28

234,244,628

184,701,401

CITY OF HIGH POINT, NORTH CAROLINA Statement of Revenues, Expenses and Changes in Fund Net Position Proprietary Funds For the Year Ended June 30, 2023

Business-type - Enterprise Funds Non Major Enterprise Funds Charges for services......................................................................................................... $ System development fees, capital reserve................................................................................ Licenses and permits........................................................................................................ Miscellaneous and other................................................................................................... Total operating revenues..............................................................................................

20,782,882 407,907 21,190,789

Governmental Activities

Total $

203,850,113 144,948 407,907 915,812 205,318,780

Internal Service Fund $

35,908,580 197,446 36,106,026

Operating expenses Management and administration...................................................................................... Maintenance and distribution........................................................................................... Power purchases............................................................................................................... Treatment plants............................................................................................................... Other services and charges............................................................................................... Depreciation and amortization......................................................................................... Total operating expenses............................................................................................. Operating income (loss)...............................................................................................

24,229,375 2,867,030 27,096,405 (5,905,616)

38,851,430 30,990,338 79,988,439 13,459,906 6,792,635 21,543,057 191,625,805 13,692,975

33,189,837 5,529,255 38,719,092 (2,613,066)

Nonoperating revenues (expenses) Interest on investments..................................................................................................... Intergovernmental............................................................................................................ Other intergovernmental reimbursements........................................................................ Miscellaneous and other nonoperating............................................................................. Interest on lease receivable............................................................................................... Interest expense and fiscal charges.................................................................................. Amortization of gain on refunding................................................................................... Gain (loss) on disposal of capital assets........................................................................... Total nonoperating revenues (expenses)......................................................................

636,389 744,968 93,108 (115,507) (40,384) 1,318,574

4,616,065 1,425,998 24,261 121,112 753 (6,659,578) 779,361 (40,389) 267,583

76,433 223,991 (78,127) 390,489 612,786

Income (loss) before capital contributions and transfers

(4,587,042)

13,960,558

(2,000,280)

Capital contributions............................................................................................................ Transfers in........................................................................................................................... Transfers out......................................................................................................................... Change in net position.....................................................................................................

3,374,063 (963,000) (2,175,979)

639,792 3,374,063 (4,443,151) 13,531,262

40,384 1,157,000 (802,896)

Total net position - beginning..............................................................................................

66,431,997

469,670,785

26,734,193

Total net position - ending.................................................................................................... $

64,256,018

Reconciliation to the Statement of Activities: Change in net position of enterprise funds Adjustment to reflect the profit/loss distribution of internal service fund activities Change in net position - business-type activities

Page 29

483,202,047

13,531,262 203,860 13,735,122

25,931,297

CITY OF HIGH POINT, NORTH CAROLINA Statement of Cash Flows Proprietary Funds For the Year Ended June 30, 2023 Major Funds Business-Type - Enterprise Funds

Water and Sewer Cash Flows From Operating Activities Receipts from customers and users.................................................................................. Receipts from interfund services provided...................................................................... Payments to employees and related fringe benefits......................................................... Payments to suppliers and operating costs...................................................................... Net Cash Change in Operating Activities

62,159,444 (11,811,085) (22,812,414) 27,535,945

Electric $

122,627,133 (12,433,993) (100,142,942) 10,050,198

Cash Flows From Non Capital Financing Activities Transfers in...................................................................................................................... Transfers out.................................................................................................................... Advances from/(to) other funds....................................................................................... Intergovernmental............................................................................................................ Nonoperating grant and miscellaneous............................................................................ Other intergovernmental reimbursements........................................................................ Net Cash Change in Non-Capital Financing Activities

(579,000) 400,000 28,757 (150,243)

(2,901,151) 400,000 281,030 24,261 (2,195,860)

Cash Flows From Capital and Related Financing Activities Principal payments on long-term debt............................................................................. Principal payments on Leases.......................................................................................... Principal payments on SBITA......................................................................................... Interest payments and fiscal charges on long-term debt.................................................. Proceeds collected on the sale of capital assets............................................................... Acquisition and construction of capital assets................................................................. Net Cash Change in Capital and Related Financing Activities

(8,457,105) (6,641) (8,150) (6,559,810) (25,640,073) (40,671,779)

(11,759) (53,148) (235) (5,889,161) (5,954,303)

Cash Flows From Investing Activities Interest earned (unrealized loss) on investments............................................................. Net Cash Change Investing Activities

1,729,618 1,729,618

1,861,995 1,861,995

Net increase (decrease) in cash and investments

(11,556,459)

3,762,030

Cash and investments at the beginning of the year

88,901,841

117,006,257

Cash and investments at the end of the year

77,345,382

120,768,287

Operating income (loss)....................................................................................................... Adjustments to reconcile Operating Income (Loss) to .................................................... Net Cash Change Operating Activities:....................................................................... Depreciation and amortization................................................................................ Change in net position (Increase) decrease in Accounts Receivable....................................................... (Increase) decrease in Inventories....................................................................... (Increase) decrease in Prepaid Expenses............................................................ (Increase) decrease in Deferred Outflows of Resources-Pensions...................... (Increase) decrease in Deferred Outflows of Resources-OPEB.......................... Increase (decrease) in Payables and Accrued Expenses..................................... Increase (decrease) in Deposits........................................................................... Increase (decrease) in Stipends Liability............................................................ Increase (decrease) in Vacation Leave Accrual.................................................. Increase (decrease) in Net Pension Liability....................................................... Increase (decrease) in Total OPEB Liability....................................................... Increase (decrease) in Deferred Inflows of Resources-Pensions......................... Increase (decrease) in Deferred Inflows of Resources-OPEB............................. Increase (decrease) in Unearned Revenue.......................................................... Total adjustments........................................................................................... Net Cash Change in Operating Activities............................................................................

10,959,731

8,638,860

NONCASH FINANCING ACTIVITIES Capital assets contributed by developers and other funds............................................... Issuance of leases/SBITAs............................................................................................... Total noncash financing activities.................................................................. The notes to basic financial statements are an integral part of this statement.

Page 30

$ $

15,170,810

3,505,217

(558,339) (1,311,973) 34,538 1,478,393 4,195 (5,362) 34,508 3,741,196 (155,896) (1,865,723) 30,448 (20,581) 16,576,214 27,535,945

1,226,286 (572,688) 6,000 (1,360,315) 38,265 (3,271,136) 7,025 (6,187) 56,815 4,134,039 (167,389) (2,206,914) 22,320 1,411,338 10,050,198

639,792 16,713 656,505

$ $

337,267 337,267

CITY OF HIGH POINT, NORTH CAROLINA Statement of Cash Flows Proprietary Funds For the Year Ended June 30, 2023

Governmental Activities

Business-Type - Enterprise Funds Non-major Enterprise Funds Cash Flows From Operating Activities Receipts from customers and users..................................................................... Receipts from interfund services provided.......................................................... Payments to employees and related fringe benefits............................................. Payments to suppliers and operating costs.......................................................... Net Cash Change in Operating Activities

22,022,161 (11,329,066) (11,154,342) (461,247)

Total Enterprise Funds $

206,808,738 (35,574,144) (134,109,698) 37,124,896

Internal Service Fund $

4,476,236 31,592,969 (2,026,167) (29,219,444) 4,823,594

Cash Flows From Non Capital Financing Activities Transfers in......................................................................................................... Transfers out....................................................................................................... Advances from/(to) other funds.......................................................................... Intergovernmental............................................................................................... Nonoperating grant and miscellaneous............................................................... Intergovernmental revenues and reimbursements............................................... Net Cash Change in Non-Capital Financing Activities

4,024,063 (1,613,000) (8,350,683) 744,968 93,108 (5,101,544)

4,024,063 (5,093,151) (7,950,683) 1,425,998 121,865 24,261 (7,447,647)

1,157,000 223,991 1,380,991

Cash Flows From Capital and Related Financing Activities Principal payments on long-term debt................................................................. Principal payments on leases.............................................................................. Principal payments on SBITA............................................................................. Interest payments and fiscal charges on long-term debt...................................... Proceeds collected on the sale of capital assets................................................... Acquisition and construction of capital assets.................................................... Net Cash Change in Capital and Related Financing Activities

(1,000,579) (40,909) (54,185) (169,162) (4,061,898) (5,326,733)

(9,457,684) (59,309) (115,483) (6,729,207) (35,591,132) (51,952,815)

(1,100,666) (33,432) (435,422) (78,127) 566,330 (3,882,751) (4,964,068)

Cash Flows From Investing Activities Interest earned (unrealized loss) on investments................................................. Net Cash Change Investing Activities

566,426 566,426

4,158,039 4,158,039

67,332 67,332

Net increase (decrease) in cash and investments

(10,323,098)

(18,117,527)

1,307,849

Cash and investments at the beginning of the year

48,279,871

254,187,969

8,769,308

Cash and investments at the end of the year

37,956,773

236,070,442

10,077,157

Operating income (loss).......................................................................................... Adjustments to reconcile Operating Income (Loss) to ....................................... Net Cash Change Operating Activities:.......................................................... Depreciation and amortization................................................................... Change in net position (Increase) decrease in Accounts Receivable.......................................... (Increase) decrease in Inventories.......................................................... (Increase) decrease in Prepaid Expenses................................................ (Increase) decrease in Deferred Outflows of Resources-Pensions.......... (Increase) decrease in Deferred Outflows of Resources-OPEB.............. Increase (decrease) in Payables and Accrued Expenses......................... Increase (decrease) in Deposits.............................................................. Increase (decrease) in Stipends Liability................................................ Increase (decrease) in Vacation Leave Accrual...................................... Increase (decrease) in Net Pension Liability.......................................... Increase (decrease) in OPEB Liability................................................... Increase (decrease) in Deferred Inflows of Resources-Pensions............ Increase (decrease) in Deferred Inflows of Resources-OPEB................ Increase (decrease) in Unearned Revenue.............................................. Total adjustments............................................................................... Net Cash Change in Operating Activities................................................................

(5,905,616)

13,692,975

(2,613,066)

NONCASH FINANCING ACTIVITIES Capital assets contributed by developers and other funds................................... Issuance of leases/SBITAs..................................................................................

$ $

Page 31

2,867,030

21,543,057

5,529,255

830,330 (32,122) 37,546 (1,062,217) 35,535 1,499,827 1,040 (20,213) 43,699 3,417,928 (295,638) (1,890,996) 12,618 2 5,444,369 (461,247)

1,498,277 (604,810) 43,546 (3,734,505) 108,338 (292,916) 12,260 (31,762) 135,022 11,293,163 (618,923) (5,963,633) 65,386 (20,579) 23,431,921 37,124,896

(36,821) (10,397) (197,087) 8,743 1,931,254 (4,125) (24,990) 664,415 (37,583) (389,687) 3,683 7,436,660 4,823,594

252,182 252,182

$ $

639,792 606,162 1,245,954

$ $

40,384 700,485 740,869

CITY OF HIGH POINT, NORTH CAROLINA Notes to Financial Statements June 30, 2023 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 financial statements are prepared in accordance with GAAP. The Governmental Accounting Standards Board (GASB) is responsible for establishing GAAP for state and local governments through its pronouncements (Statements and Interpretations). The following is a summary of the more significant accounting policies established in GAAP and used by the City: A. Reporting Entity The City of High Point is located in the Piedmont area of the State and has a population of 117,279. 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, public improvements, planning and zoning, and general administrative services. As required by GAAP, these financial statements present the City and its component units, which are legally separate entities. Criteria used to establish financial accountability include appointment of a voting majority of the component unit’s governing board and imposition of will or a financial benefit/burden relationship, fiscal dependency or other significant operational and financial relationships. 1. Blended Component Units Blended component units, although legally separate entities are, in substance, part of the City’s operation. Each of these units has a June 30 year-end and the financial amounts from these units are combined with amounts of the primary government. Forward High Point, Inc. (FHP) assists the City in purchasing strategic property in the City for development and other economic development projects in the downtown area. The mission of FHP is to transform downtown High Point into an extraordinary and vibrant destination to live, work, study, and play. City staff and elected officials serve on the board and the organization exists to serve primarily the City of High Point. A financial burden exists, as the City is required to transfer funds to FHP in an amount sufficient to sustain operations. The assets and liabilities are combined with assets and liabilities of the Special Revenue Funds for financial statement purposes. FHP reports under the Financial Accounting Standards Board (FASB). As such, certain revenue recognition, debt payments, and presentation features are different from GASB revenue recognition, debt payments, and presentation features. The City modified certain portions of FHP’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 administrative offices at 164 S. Main Street, Suite 606, High Point, NC 27260. The High Point Public Facilities Corporation (HPPFC) assists the City in financing, acquiring, and constructing public facilities. The sole purpose of the HPPFC is to provide a funding source for City assets, 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

Page 32

and debt are considered with assets of the Debt Service Fund and Governmental Liabilities for financial statement purposes. 2. Discretely Presented Component Unit City of High Point ABC Board The City appoints the members of the ABC Board’s governing board. In addition, the ABC Board is required by State statute to distribute its surpluses to the General Fund of the City, which represents a financial benefit to the City. Therefore, the ABC Board is reported as a discretely presented component unit in the city’s financial statements. Complete financial statements and related information for the ABC Board may be obtained from the entity's administrative offices at City of High Point ABC Board, 201 W. Fairfield Road, High Point, NC 27263.

B. Basic Financial Statements—Government-Wide Statements 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, police and fire, parks and recreation, and library are classified as governmental activities. The City’s water, sewer, electric, mass transit, parking, solid waste, and storm water services are classified as business-type activities. 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 overall government. Eliminations have been made to minimize the double counting of internal activities. Interfund services provided and used are not eliminated in the process of consolidation. These statements distinguish between 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 whole or in part by fees charged to external parties. In the government-wide Statement of Net Position, both the governmental and business-type activities columns (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 position is reported in three parts—net investment in capital assets; restricted; and unrestricted. The government-wide Statement of Activities reports both the gross and net cost of each of the City’s functions and business-type activities (police, fire, public works, etc.). The functions are also supported by general government revenues (property, sales and use taxes, certain intergovernmental revenues, fines, permits, and charges, etc.). The Statement of Activities reduces gross expenses (including depreciation) by related program revenues, operating and capital grants. Program revenues must be directly associated with the function (police, fire, public services, etc.) or a business-type activity. Operating grants include operating-specific and discretionary (either operating or capital) grants while the capital grants column reflects capital-specific grants. The net costs (by function or business-type activity) are normally covered by general revenue (property, sales, intergovernmental revenues, interest income, etc.). This government-wide focus is more on the sustainability of the City as an entity and the change in the City’s net position resulting from the current year’s activities. C. Basic Financial Statements—Fund Financial Statements The financial transactions of the City are reported in individual funds in the fund financial statements. Each fund is accounted for by providing a separate set of self-balancing accounts that comprises its assets, liabilities, deferred outflows and inflows, reserves, fund balance, revenues and expenditures/expenses. The various funds are reported by generic classification within the financial statements.

Page 33

Fund Financial Statements: The fund financial statements provide information about the City’s funds. Separate statements for each fund category – governmental and proprietary – are presented. The City has no fiduciary funds to report. The emphasis of fund financial statements is on major governmental and enterprise funds, each displayed in a separate column. All remaining governmental and enterprise funds are aggregated and reported as non-major funds. The City uses the following fund types: a.

Governmental Funds:

The focus of the governmental funds’ measurement (in the fund statements) is upon determination of financial position and changes in financial position (sources, uses, and balances of financial resources) rather than upon net income. The following is a description of the governmental funds of the City: 1. General Fund. The General Fund is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund. The primary revenue sources are ad valorem taxes, State-shared revenues, and various other taxes and licenses. The primary expenditures are for public safety (police and fire), public works, and culture and recreation. 2. Special Revenue Fund. The Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than special assessments) that are legally restricted to expenditures for specified purposes. The City maintains four special revenue funds: The Special Grants Fund, The American Rescue Plan Fund, The Opioid Settlement Fund and The Community Development Fund. The City’s blended component units are reported as part of the Community Development Fund. 3. General Debt Service Fund. The General Debt Service Fund is used to account for the accumulation of funds for the periodic payment of principal and interest on general long-term debt. 4. General Capital Projects Fund. The General Capital Projects Fund is used to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by business-type/proprietary funds). The General Fund, the American Rescue Plan Fund, and the General Capital Projects Fund are the major governmental funds. b. Proprietary Funds: The focus of proprietary fund measurement is upon determination of operating income, changes in net position, financial position, and cash flows. The generally accepted accounting principles applicable are those similar to businesses in the private sector. The following is a description of the proprietary funds of the City: 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 recovered with fees and charges or (c) establishes fees and charges based on a pricing policy designed to recover similar costs. The City maintains six enterprise funds: The Water and Sewer Fund, the Electric Fund, the Mass Transit Fund, the Parking Facilities Fund, the Solid Waste Facilities Fund and the Storm Water Fund. For financial reporting purposes, the Water & Sewer Capital Projects Ordinance Fund, the Water Capital Reserve Fund, the Sewer Capital Reserve Fund, the Mass Transit Capital Projects Ordinance Fund, the Solid Waste Capital Projects Ordinance Fund, the Landfill Closure and Post-Closure Reserve Fund, and the Storm Water Facilities Capital Projects Ordinance Fund have been consolidated with their respective Enterprise Fund. The Water and Sewer Fund and the Electric Fund are the only major enterprise funds of the City.

Page 34

The City reports the following additional fund type:

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 Internal Service Funds reported as one combined fund. The components of the Internal Service Fund are Fleet Services, Radio Repair, Computer Replacement, and Health and Wellness. 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. The City may elect to report funds as major even if the minimum criteria set forth by GASB No. 34 is not met due to the public interest of the funds. The City’s internal service fund is presented in the proprietary funds financial statements. Because the principal users of the internal services are the City’s governmental activities, the financial statement of the internal service 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, public works, etc.). D. Measurement Focus and Basis of Accounting In accordance with North Carolina General Statutes, all funds of the City are maintained during the year using the modified accrual basis of accounting. 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 when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows 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 recognized in the fiscal year in which the taxes are levied. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and delivering goods in connection with the primary activities of the proprietary funds. For the City of High Point, these operating revenues are charges to customers for sales and services for the Water and Sewer Fund, Electric Fund, Mass Transit Fund, Parking Facilities Fund, the Solid Waste Facilities Fund and the Storm Water Fund. Operating expenses for these enterprise funds include the costs of sales and providing services, administrative expenses, and depreciation/amortization on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. Governmental Fund Financial Statements. Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, claims and judgments, and compensated absences, which are recognized as 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 reported as other financing sources. Page 35

The City considers all revenues available if they are collected within 90 days after year-end, except for property taxes and sales taxes. Ad valorem taxes receivable are not accrued as revenue because the amount is not susceptible to accrual. At June 30, taxes receivable are materially past due and are not considered to be an available resource to finance the operations of the current year. 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. Most intergovernmental revenues and sales and services are not susceptible to accrual because generally they are not measurable until received in cash. All taxes, including those dedicated for specific purposes, are reported as general revenues rather than program revenues. Grant revenues that are unearned 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 block grants, and general revenues. Thus, when program expenses are incurred, there is both restricted and unrestricted net position available to finance the program. It is the City’s policy to first apply cost-reimbursement grant resources to such programs, followed by categorical block grants, and then by general revenues. E. Budgetary Data The City's budgets are adopted as required by the North Carolina General Statutes. An annual budget is adopted for the General Fund, Special Revenue Funds, General Debt Service Fund, Enterprise Funds, and Internal Service Funds. All annual appropriations lapse at the fiscal-year end. Capital Project Funds, including the Enterprise Capital Projects Funds, are budgeted on a project or an annual basis depending on the estimated life of the project. The enterprise fund projects are consolidated with their respective operating fund for reporting purposes. A financial plan was adopted by City Council as part of the Annual Budget ordinance approval for the Internal Service Funds operation as required by the General Statutes. All budgets are prepared using the modified accrual basis of accounting. The legal level of budgetary control (the level at which expenditures may not legally exceed appropriations) is the fund level, The City Manager is authorized by the budget ordinance to make unlimited transfers within a fund; however, the governing board must approve any revisions that alter the total expenditures of any fund. A budget calendar is included in the North Carolina General Statutes, which prescribes the last day on which certain steps of that budget procedure are to be performed. The City follows these procedures in establishing the budgetary data reflected in the financial statements: 1.Prior to June 1, the City Manager submits to the City Council a proposed operating budget for the fiscal year commencing July 1. The operating budget includes proposed expenditures and the means of financing them. 2.Public hearings are conducted to obtain taxpayer comments. 3.Prior to June 30, the budget is legally enacted through passage of an ordinance. 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, Deferred Outflows/Inflows of Resources and Fund Balance 1. Deposits and Investments 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, any bank or savings association whose principal office is located in North Carolina. Also, the City and the ABC Board may establish time deposit accounts such as NOW and SuperNOW accounts, money market accounts, and certificates of deposit.

Page 36

State law (G.S. 159-30 (c)) authorizes the City and the ABC Board to invest in obligations of the United States or obligations fully guaranteed both as to principal and interest by the United States; obligations of the State of 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; and the North Carolina Capital Management Trust (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 Government Portfolio has a weighted average maturity of less than 90 days, they are presented as an investment with a maturity of less than 6 months. As allowed by State law, the City has invested in securities which are callable and which provide for periodic interest rate increases in specific increments until maturity. These investments are reported at fair value as determined by quoted market prices. 2. Cash and Cash Equivalents The City pools money from several funds to facilitate disbursement and investment and to maximize investment income. Therefore, all cash and investments are essentially demand deposits and are considered cash and cash equivalents. The ABC Board considers all highly liquid with an original maturity of three months or less to be cash equivalents. 3. Restricted Assets The financial statements of the enterprise funds have been consolidated to include applicable reserve funds and capital project funds. 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 General Obligation Bonds issued by the City are classified as restricted assets for the enterprise funds and capital project fund because their use is completely restricted to the purposes for which the bonds were issued. In addition, customer utility deposits in the enterprise funds and surety deposits on erosion control and subdivision 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 Utility Operations Fund by creating a Rate Stabilization Reserve included in restricted cash.

Page 37

City of High Point Restricted Cash and Investments Governmental activities June 30, 2023 General Fund Customer deposits $ 1,916,717 General Capital Projects Fund Unexpended bond proceeds 15,033,498 1,623,946 Restricted for bond related projects Non-major governmental funds Unexpended grant receipts 3,547,408 Blended component unit deposits 236,019 Total governmental activities 22,357,588 Business-type activities Water & Sewer Fund Customer deposits Restricted for capital projects Electric Fund Customer deposits Restricted for capital projects Restricted for rate stabilization Non-major enterprise funds Customer deposits Restricted for capital projects Unexpended grant receipts Total business-type activities Total Restricted Cash and Investments

453,390 33,746,459 1,292,032 8,427,142 41,723,184 6,650 17,909,451 52,591 103,610,899 $

125,968,487

4. Ad Valorem Tax Receivable In accordance with state law (G.S. 105-347 and G.S. 159-13 (a)), the City levies ad valorem taxes on property other than motor vehicles on July 1, the beginning of the fiscal year. The levy is based on the assessed valuation of property located in the City as of January 1, 2022. Value of personal property is established annually, and by state law, real property must be appraised at least once every eight years. The last revaluation of real property 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 penalty or interest until the sixth of January. On and after January 6, taxes become delinquent; a lien attaches to the property, and a penalty of 2 percent is assessed. On February 1, interest accrues at the rate of .75 percent per month until paid. As allowed by State law, the City has established a schedule of discounts that apply to taxes that are paid prior to the due date. In the City's General Fund, ad valorem tax revenues are reported net of such discounts. The City has arrangements with Guilford, Randolph, Davidson and Forsyth counties for the billing and collecting of the City's property taxes. The City is permitted by the general statutes of the State to levy taxes up to $1.50 per $100 of assessed valuation for general governmental services other than the payment of principal and interest on long-term debt, and in unlimited amounts for the payment of principal and interest on long-term debt. The tax rate to finance general governmental services other than the payment of principal and interest on longterm debt for the year ended June 30, 2023, was $.5835 per $100, which means that the City has a tax margin of $.9165 per $100.

Page 38

5. Allowances for Doubtful Accounts All receivables that historically experience uncollectible accounts are shown net of an allowance for doubtful accounts. This amount is estimated by analyzing the outstanding percentage of receivables for prior years. 6. Notes Receivable Notes receivable for the Community Development Fund represent loans made through grant programs that are collectible in future fiscal years and shown net of an allowance for estimated uncollectible accounts. 7. Lease Receivable The City’s lease receivable is measured at the present value of lease payments expected to be received during 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 payment is received. The deferred inflow of resources is recorded at the initiation of the lease in an amount equal to the initial recording of the lease receivable. The deferred inflow of resources is amortized on a straight-line basis over the term of the lease. 8. Inventory and Prepaid Items 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. The costs of these inventories are recorded as an expense as the inventories are consumed. The City of High Point ABC Board values its inventory at replacement cost. Certain payments to vendors reflect costs applicable to future accounting periods, are recorded as prepaid items in both government–wide and fund financial statements and are expensed as the items are used. 9. Capital Assets Capital assets of the City are defined as assets with an initial cost of more than a certain amount and estimated useful life of more than three years. The minimum capitalization cost for all capital assets excluding infrastructure and land is $5,000. Infrastructure has a capitalization threshold of $50,000. All land is capitalized, 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. All other purchased or constructed capital assets are reported at cost or estimated historical cost. 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 are not capitalized. The City’s capital assets also include certain right to use assets. These right to use assets arise in association with agreements where the City reports a lease (only applies when the City is the lessee) or agreements where the City reports an Information Technology (IT) Subscription in accordance with the requirements of GASB 87 and GASB 96, respectively. The right to use lease assets are initially measured at an amount equal to the initial measurement of the related lease liability plus any lease payments made at or prior to the start of the lease term, less lease incentives received from the lessor at or prior to the start of 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 the related lease.

Page 39

The right to use IT subscription assets are initially measured at an amount equal to the initial measurement of the subscription liability plus any subscription payments made at the start of the subscription term, if applicable, plus capitalizable initial implementation costs at the start of the subscription term, less any incentives received from the IT subscription vendor at the start of the subscription term. Subscription payments, as well as payments 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 incentives should be reported as an asset or liability, as appropriate, before the start of the subscription term at which time the amount should be included in the initial measurement of the subscription asset. The right to use subscription assets should be amortized on a straight-line basis over the subscription term. Depreciation of capital assets is provided on the straight-line method over their estimated useful lives: Buildings Infrastructure Improvements Equipment Computer software

25-50 years 10-40 years 5-20 years 3-20 years 5-10 years

Capital assets of the ABC Board are recorded at original cost at the time of acquisition. Property, plant, and equipment donated to the ABC Board 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. All other purchased or constructed capital assets are reported at cost or estimated historical cost. Capital assets of the ABC Board are depreciated over their useful lives on a straight-line basis as follows: 20 years 10 years 5 years 7 years

Buildings Equipment Furniture and fixtures Automobiles

Forward High Point (FHP), a blended component unit presented in governmental activities, has property held for resale that was previously reported as a capital asset. These properties are stated at cost. The City evaluates prominent events or changes in circumstances affecting capital assets to determine whether impairment of a capital asset has occurred. A capital asset is generally considered impaired if both (a) the decline in service utility of the capital asset is large in magnitude and (b) the event or change in circumstance is outside the normal life cycle of the capital asset. Impaired capital assets that will no longer be used by the City are reported at the lower of carrying value or fair value. Impairment losses on capital assets that will continue to be used by the City are measured using the method that best reflects the diminished service utility of the capital asset. Any insurance recoveries received as a result of impairment events or changes in circumstances resulting in the impairment of a capital asset are netted against the impairment loss. 10. Deferred Outflows/Inflows of Resources In addition to assets, the statement of net position will sometimes report a separate section for deferred outflows 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 expenditure until then. In addition to liabilities, the statement of net position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, Deferred Inflows of Resources, represents an acquisition of net assets that applies to future periods, and so will not be recognized as revenue until then.

Page 40

11. Long-term Obligations In the government-wide financial statements, and proprietary fund types in the fund financial statements, 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 deferred and amortized over the life of the bonds using the straight-line method that approximates the effective 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. Prepaid insurance costs, as applicable, are expensed over the life of the debt. In fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. 12. Compensated Absences 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 are reported in the governmental funds only if they have matured. The current portion of the accumulated vacation pay has been estimated based on historical trends. Both the City’s and the ABC Board's sick leave policies provide for an unlimited accumulation of earned sick leave. Sick leave does not vest, but any unused sick leave accumulated at the time of retirement may be used in the determination of length of service for retirement benefit purposes. Since neither the City nor the ABC Board has any obligation for the accumulated sick leave until it is actually taken, no accrual for sick leave has been made. 13. Net Position / Fund Balances Net Position Net position in government-wide and proprietary fund financial statements are classified as net investment in capital assets, restricted, and unrestricted. 

Net investment in capital assets represents the portion of net position associated with nonliquid-capital assets less the outstanding capital asset related debt.



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 through State statute.



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 unrestricted authority to revisit or alter the allocation with managerial or City Council decision.

Fund Balance In the governmental fund financial statements, fund balance is composed of five classifications designed to disclose the hierarchy of constraints placed on how fund balance can be spent. The governmental fund types classify fund balances as follows: Nonspendable Fund Balance - This classification includes amounts that cannot be spent because they are (a) not in spendable form or (b) legally or contractually required to be maintained intact.

Page 41

Prepaid items – represents that portion of fund balance in the governmental funds for prepaid items, such as postage and other prepaid expenses. Inventories – portion of fund balance that is not an available resource because it represents the year end balance of ending inventories, which are not spendable resources. Lease Receivable, net – portion of fund balance that is not an available resource because it is not in spendable form. The reported amount is calculated by reducing the lease receivable by the related deferred inflow of resources. Restricted Fund Balance - This classification includes amounts that are restricted to specific purposes externally imposed by creditors or imposed by law. Restricted for Stabilization by State Statute - North Carolina G.S. 159-8 prohibits units of government from budgeting or spending a portion of their fund balance. This is one of several statutes enacted by the North Carolina State Legislature in the 1930’s that were designed to improve and maintain the fiscal health of local government units. Restricted by State statute (RSS), is calculated at the end of each fiscal year for all annually budgeted funds. The calculation in G.S. 159-8(a) provides a formula for determining what portion of fund balance is available for appropriation. The amount of fund balance not available for appropriation is what is known as “restricted by State statute”. Appropriated fund balance in any fund shall not exceed the sum of cash and investments minus the sum of liabilities, encumbrances, and deferred revenues arising from cash receipts, as those figures stand at the close of the fiscal year next preceding the budget. Per GASB guidance, RSS is considered a resource upon which a restriction 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 Restricted Fund Balance on the face of the Balance Sheet. Restricted for community and economic development – portion of Fund Balance Restricted as to control by the City’s blended component units (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 funds which would be disclosed with its own fund balance component. Restricted for debt service – portion of fund balance of the General Debt Service Fund restricted by revenue source to service the debt service payments of general government debt. Restricted for capital projects – portion of fund balance restricted by revenue source for certain capital project purposes as defined by applicable bond and other debt instruments. Committed Fund Balance - This classification of fund balance can only be used for specific purposes as authorized in a formal action prior to the end of the fiscal year utilizing an ordinance or ordinance amendment as approved and imposed by a majority vote by quorum of the City of High Point’s City Council (the highest level of decision-making authority). Once adopted, the limitation imposed by the ordinance is binding with the force of local law and remains in place until a similar action is taken (the adoption of another ordinance) to remove or revise the limitation. Committed for public safety – portion of fund balance available for appropriation that has been committed by City Council for public safety in order to service future law enforcement officer’s special separation allowance pension obligations.

Page 42

Committed for economic development – portion of fund balance available for appropriation that has been committed by City Council for economic development incentives and reimbursements. Committed for market development – portion of fund balance available for appropriation that has been committed by City Council for Market Authority development. 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 at the end of the fiscal year unless these assignments are extended. Assigned for subsequent year's expenditures - portion of fund balance that is appropriated in the adopted 2023-2024 budget ordinance that is not already classified in restricted or committed. Assigned for general government – portion of fund balance that has been budgeted for City Hall and redevelopment projects. Assigned for public safety – portion of fund balance that has been budgeted for High Point Police Community Day activities. 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 Piedmont Environmental Center. Assigned for public services and transportation – portion of fund balance that has been budgeted by the City Council for various future transportation and public services capital projects.

Assigned fund balances Subsequent year's expenditures General government (Economic Development Alliance) Public safety (Police Community Day) Culture and recreation (Theatre) Culture and recreation (Parks and Recreation) Public services and transportation (Transportation) Public services and transportation (Public Services) Total assigned fund balances

June 30, 2023 $ 1,206,921 20,000 8,193 64,654 9,340 51,245 14,063 $ 1,374,416

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 unassigned fund balance. The City of High Point has a revenue spending policy for programs and activities with multiple revenue sources. The Financial Services Director will use resources in the following hierarchy: federal funds, 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 fund balance, assigned fund balance, and lastly unassigned fund balance. The Financial Services Director and City Manager have the authority to deviate from this policy where it is in the best interest of the City. The City of High Point has also adopted a minimum fund balance policy for the General Fund which provides that the City will maintain an available fund balance at least equal to or greater than 10% of budgeted expenditures. The City may from time to time fall below this amount. In such circumstances, Council will adopt a plan to restore available fund balances to the policy level within 36 months, or other such appropriate time period. Page 43

14. Defined Benefit Cost-Sharing and Single Employer Plans 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 Government Employees’ Retirement System (LGERS) and additions to/deductions from LGERS’ fiduciary net position have been determined on the same basis as they are reported by LGERS. For this purpose, plan member contributions are recognized in the period in which the contributions are due. The City of High Point’s employer 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. Investments are reported at fair value. The City participates in one other 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 accordance with the benefit terms. 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 inflows of resources related to pensions, and pension expense are captured on the government-side statements. 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. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. G. Revenues, Expenditures and Expenses 1. Grant Revenue 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 eligibility requirements are recorded and reported as unearned revenues. 2. Investment income The City recognizes investment income from pooled cash and investments as revenues in the individual funds 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 recorded monthly in each individual fund. 3. Interfund Transactions Interfund transactions are either services provided, reimbursements or transfers. Services that are deemed to be reasonably equivalent in value are treated as revenues and expenditures/expenses. Reimbursements occur when 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 governmental activities and business-type activities are eliminated upon consolidation. The City also transfers capital assets between funds as needed. These types of transfers are reflected as loss on disposal in the fund making the transfer and capital contributions in the fund receiving the assets. Page 44

Also, the ABC Board makes quarterly transfers to the City's General Fund. These transfers represent the City's portion of the Board's surpluses that the ABC Board is required by State statute to distribute to the City. These transactions are considered external transactions – that is, revenues and expenses. The City makes periodic payments to FHP for operational purposes. H. Use of Estimates 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 revenues and expenditures/expenses during the reporting period. Actual results could differ from those estimates. I.

Reconciliation of Governmental Funds to Government Wide Activities

The preparation of financial statements requires summarizing certain details reconciling the modified accrual basis 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. Accrued interest payable Compensated absences Installment contracts payable Leases SBITA LEOSSA pension liability LGERS pension liability OPEB liability Loans payable Limited obligation bonds payable General obligation bonds payable Premium on general obligation bonds Component unit line of credit

1,047,879

Total liabilities not payable in certain period

5,356,490 4,880,262 1,433,721 1,623,063 17,352,114 41,521,050 8,919,076 4,520,000 45,211,000 61,366,768 2,498,749 920,000 196,650,172

Note 2. Detail Notes on All Funds A. Assets 1. Deposits All the deposits of the City and the ABC Board are either insured or collateralized by using one of two methods. 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 Pooling Method, which is a collateral pool, all uninsured deposits are collateralized with securities held by the 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’s agents in their names. The amount of the pledged collateral is based on an approved averaging method for non-interest bearing deposits and the actual current balance for interest-bearing deposits. Depositories using 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. Because of the inability to measure the exact amounts of collateral pledged for the City or the ABC Board under the Pooling Method, the potential exists for under collateralization, and this risk may increase in periods of high cash flows. However, the State Treasurer of North Carolina enforces strict standards of financial Page 45

stability for each depository that collateralizes public deposits under the Pooling Method. The City and the ABC Board have no formal policy regarding custodial credit risk for deposits, but rely on the State Treasurer to enforce standards of minimum capitalization for all pooling method financial institutions and to monitor them for compliance. The City and the ABC Board comply with the provisions of G.S. 159-31 when designating official depositories and verifying that deposits are properly secured. At June 30, 2023, the City's deposits had a carrying amount of $9,454,677 and a bank balance of $10,479,282. The carrying amount of deposits for the ABC Board was $2,682,522 and the bank balance was $3,044,872. Of the bank balances, the City and the ABC Board had $250,000 and $482,744 respectively, covered by federal depository insurance and the remainder of $10,229,283 and $2,562,128 respectively, was covered by collateral held under the pooling method. At June 30, 2023, the City and the ABC Board held petty cash funds of $47,777 and $21,250, respectively. At June 30, 2023 the FHP had deposits with a carrying amount of $236,019 and covered by federal depository insurance. 2. Investments At June 30, 2023, the City’s investment balances were as follows: Book Value at 6/30/2023 $ 219,299,114

Maturity

Rating

Government Agencies

Valuation Measurement Method Fair Value Level 2

1 to 5 Years

AAA/Aaa

Commercial Paper

Fair Value Level 1

7,917,688

8/1/2023

A1P1

NC Capital Management Trust Government Portfolio

Fair Value Level 1

105,257,053

N/A

AAAm

$ 332,473,855

All investments are measured using the market approach: using prices and other relevant information generated by market transactions involving identical or comparable assets or a group of assets. 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. Matrix pricing is used to value securities based on the securities’ benchmark quoted prices. Interest Rate Risk. As a means of limiting its exposure to fair value losses arising from rising interest rates, 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 maturity dates and limits all securities to a final maturity of no more than five years. 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, 2023, 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 Government Portfolio carried a credit rating of AAA by Standard & Poor’s as of June 30, 2023.

Page 46

Custodial credit risk. For an investment, the custodial credit risk is the risk that in the event of the failure of the counterparty, the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The City’s investment policy requires all book-entry investment securities to be in the City’s name and delivered versus payment to a City-named third-party custodian. Certificated securities are held in the custody of the Financial Services Director. Concentration of Credit Risk. The City’s investment policy places limits on the amount that the City may invest in any one type of security and also any one issuer. There is no limit for direct obligations of the U.S. Treasury or investments in mutual funds certified by the Department of State Treasurer (NCCMT). Securities issued by agencies of the U.S. government are limited to a maximum of 75% of the portfolio and individually limited to 30% concentration to any one government agency. Commercial paper and bankers acceptances may not exceed 30% and 20%, respectively, of the portfolio. Policy also limits investments to 2% of the portfolio for any individual non-governmental issuers. More than 55% of the City’s investments are in U.S. Government Agencies which are primarily Federal Home Loan Mortgage Corporation (14.17%), Federal Farm Credit Bank (21.88%), Federal National Mortgage Association (7.00%) securities, and Federal Home Loan Bank (22.91%) securities. 3. Receivables - Allowances for Doubtful Accounts The amounts presented in the Statements of Net Position, Governmental Funds Balance Sheet and Proprietary Fund Statement of Net Position, are net of the following allowances for doubtful accounts: General Fund: Taxes receivable Accounts receivable

Total General Fund

3,460,810 1,840,877 5,301,687

Special Revenue Fund: Notes and Loans receivable

850,457

Water and Sewer Fund: Accounts receivable

849,832

Electric Fund: Accounts receivable

2,052,504

Mass Transit Fund Taxes receivable

228,182

Solid Waste Fund: Accounts receivable

148,937

Storm Water Fund: Accounts receivable Total Allowances

49,470 9,481,069

Page 47

4. Capital Assets A summary of changes in capital assets for the year ended June 30, 2023, follows:

Governmental activities: Capital assets not being depreciated Land and other nondepreciable capital assets................ $ Intangibles................................................................ Construction in progress............................................ Total capital assets not being depreciated Capital assets being depreciated Buildings and other improvements............................... Intangibles................................................................ Equipment................................................................ Infrastructure........................................................... Total capital assets being depreciated Less accumulated depreciation for: Buildings and other improvements............................. Intangibles.............................................................. Equipment.............................................................. Infrastructure.........................................................

Beginning

Increases &

Decreases &

Ending

Balance

Reclassifications

Balance

21,174,313 115,889 66,108,499 87,398,701

1,254,897 4,453,338 5,708,235

117,309,403 2,045,139 96,502,291 570,087,667 785,944,500

54,093,530 6,806,445 8,196,849 69,096,824

58,680,322 986,669 62,790,521 469,535,722

4,754,800 6,988 8,319,033 8,910,732

Total accumulated depreciation 591,993,234 Total capital assets being depreciated (net)................... 193,951,266 Capital assets being amortized Right to use assets: Lease equipment........................................................ 2,472,471 IT subscriptions........................................................ Total capital assets being amortized........................... 2,472,471 Less accumulated amortization for: Right to use assets: Lease equipment.................................................... 920,365 IT subscriptions...................................................... Total accumulated amortization.............................. 920,365 Total capital assets being amortized (net)..................... 1,552,106 Governmental activities capital assets, net....................... $ 282,902,073

Page 48

21,991,553

1,826 47,778,917 47,780,743

22,427,384 115,889 22,782,920 45,326,193

7,782 1,829,530 2,990,201 4,827,513

171,395,151 215,609 100,318,535 578,284,516 850,213,811

879,157 2,776,366 -

63,435,122 114,500 68,333,188 478,446,454

3,655,523

610,329,264 239,884,547

404,129 3,427,693 3,831,822

6,483 6,483

2,870,117 3,427,693 6,297,810

781,646 1,188,667 1,970,313

4,322 4,322

1,697,689 1,188,667 2,886,356 3,411,454 $ 288,622,194

Business-type activities: Water & Sewer Fund Capital assets not being depreciated Land and other nondepreciable capital assets................ $ Construction in progress............................................ Total capital assets not being depreciated................... Capital assets being depreciated Buildings and other improvements............................... Equipment................................................................ Infrastructure........................................................... Intangibles................................................................ Capital assets being depreciated................................ Less accumulated depreciation for: Buildings and other improvements............................. Equipment.............................................................. Infrastructure......................................................... Intangibles.............................................................. Total accumulated depreciation............................... Total capital assets being depreciated (net)................... Capital assets being amortized Right to use assets: Lease equipment........................................................ IT subscriptions........................................................ Total capital assets being amortized Less accumulated amortization for: Right to use assets: Lease equipment.................................................... IT subscriptions...................................................... Total accumulated amortization.............................. Total capital assets being amortized (net)..................... Water & Sewer fund capital assets, net.......................... $

Beginning

Increases &

Decreases &

Ending

Balance

Reclassifications

Balance

8,319,305 41,530,479 49,849,784

566,877 22,902,165 23,469,042

27,961,631 27,961,631

8,886,182 36,471,013 45,357,195

74,541,190 11,720,198 470,046,306 874,036 557,181,730

250,582 30,690,371 30,940,953

168,500 168,500

51,318,976 7,748,515 216,479,679 524,421 276,071,591 281,110,139

1,395,622 337,470 13,249,580 174,807 15,157,479

52,714,598 8,085,985 229,729,259 699,228 291,229,070 296,725,113

74,541,190 11,970,780 500,568,177 874,036 587,954,183

18,275 18,275

16,713 16,713

18,275 16,713 34,988

6,645 6,645 11,630 330,971,553

6,646 6,685 13,331

13,291 6,685 19,976 15,012 $ 342,097,320

Page 49

Beginning Balance Electric Fund Capital assets not being depreciated Land and other nondepreciable capital assets.. $ Construction in progress.............................. Total capital assets not being depreciated..... Capital assets being depreciated Buildings and other improvements................. Intangibles.................................................. Equipment.................................................. Infrastructure............................................. Capital assets being depreciated.................. Less accumulated depreciation for: Buildings and other improvements................. Intangibles.................................................. Equipment.................................................. Infrastructure............................................. Total accumulated depreciation...................

920,749

Decreases & Reclassifications

108,742

Ending Balance

1,029,491

9,454,352 10,375,101

5,539,315 5,648,057

3,900,763 3,900,763

11,092,904 12,122,395

154,965 4,341,012 15,053,598 128,608,803 148,158,378

330,755 3,811,113 4,141,868

66,921 11,988,500 12,055,421

88,044 4,671,767 3,065,098 132,419,916 140,244,825

154,965 3,671,219 14,876,928 86,917,345 105,620,457

195,273 36,536 3,243,136 3,474,945

66,921 11,988,494 12,055,415

88,044 3,866,492 2,924,970 90,160,481 97,039,987

Total capital assets being depreciated (net)..... Capital assets being amortized Right to use assets: Lease equipment.......................................... IT subscriptions.......................................... Total capital assets being amortized Less accumulated amortization for: Right to use assets: Lease equipment...................................... IT subscriptions........................................ Total accumulated amortization................

42,537,921

Total capital assets being amortized (net).......

28,679

Electric fund capital assets, net....................... $

Increases & Reclassifications

43,204,838

39,807 39,807

337,267 337,267

39,807 337,267 377,074

11,128 11,128

11,535 18,737 30,272

22,663 18,737 41,400

52,941,701

Page 50

335,674 $

55,662,907

Beginning Balance

Increases & Reclassifications

Decreases & Reclassifications

Ending Balance

Mass Transit Fund Capital assets not being depreciated Land and other nondepreciable capital assets.. $ Total capital assets not being depreciated..... Capital assets being depreciated Buildings and other improvements................. Intangibles.................................................. Equipment.................................................. Infrastructure............................................. Capital assets being depreciated.................. Less accumulated depreciation for: Buildings and other improvements............... Intangibles................................................ Equipment................................................ Infrastructure........................................... Total accumulated depreciation................. Total capital assets being depreciated (net).....

581,396 581,396

3,290,150 34,037 9,317,554 157,863 12,799,604

22,375 22,375

3,290,150 34,037 9,295,179 157,863 12,777,229

1,627,865 1,135 4,711,250 63,144 6,403,394

133,319 6,807 921,877 7,893 1,069,896

22,375 22,375

1,761,184 7,942 5,610,752 71,037 7,450,915

6,396,210

5,326,314

Capital assets being amortized Right to use assets: Lease buildings............................................

8,308

IT subscriptions..........................................

56,876

8,308

56,876

65,184

Lease buildings.........................................

1,231

2,462

IT subscriptions........................................

20,060

Total accumulated amortization................

1,231

21,291

22,522

Total capital assets being amortized Less accumulated amortization for: Right to use assets:

Total capital assets being amortized (net)....... Mass Transit fund capital assets, net................ $

7,077 6,984,683

Page 51

42,662 5,950,372

Beginning Balance Parking Facilities Fund Capital assets not being depreciated Land and other nondepreciable capital assets..... $ Construction in progress................................ Total capital assets not being depreciated....... Capital assets being depreciated Buildings and other improvements................... Equipment.................................................... Capital assets being depreciated..................... Less accumulated depreciation for: Buildings and other improvements................. Total accumulated depreciation...................

898,720 359,237 1,257,957

8,683,300 8,683,300 8,407,786 8,407,786

Total capital assets being depreciated (net)....... Capital assets being amortized Right to use assets: Lease equipment............................................ Total capital assets being amortized Less accumulated amortization for: Right to use assets: Lease equipment......................................... Total accumulated amortization...................

275,514

Total capital assets being amortized (net)..........

1,412

Parking fund capital assets, net.......................... $

Increases & Decreases & Reclassifications Reclassifications

366,861 9,275 376,136

45,473 45,473

359,237 359,237

Ending Balance

898,720 898,720

9,050,161 9,275 9,059,436

8,453,259 8,453,259 606,177

2,219 2,219

807 807

1,614 1,614

1,534,883

Page 52

605 $

1,505,502

Beginning Balance Solid Waste Fund Capital assets not being depreciated Land and other nondepreciable capital assets..... $ Construction in progress................................ Total capital assets not being depreciated....... Capital assets being depreciated Buildings and other improvements................... Equipment.................................................... Capital assets being depreciated..................... Less accumulated depreciation for: Buildings and other improvements................. Equipment.................................................. Total accumulated depreciation................... Total capital assets being depreciated (net)....... Capital assets being amortized Right to use assets: Lease equipment.......................................... IT subscriptions.......................................... Total capital assets being amortized Less accumulated amortization for: Right to use assets: Lease equipment.......................................... IT subscriptions.......................................... Total accumulated amortization...................

1,676,601 1,207,587 2,884,188

Increases & Decreases & Reclassifications Reclassifications

229,990 1,112,038 1,342,028

Ending Balance

1,906,591 2,319,625 4,226,216

28,307,784 3,508,847 31,816,631

1,121,777 1,121,777

34,390 34,390

28,307,784 4,596,234 32,904,018

20,966,143 2,728,075 23,694,218

784,716 204,924 989,640

21,750,859 2,932,999 24,683,858

8,122,413

8,220,160

6,632 6,632

103,585 117,158 220,743

110,217 117,158 227,375

2,412 2,412

16,798 16,272 33,070

19,210 16,272 35,482

Total capital assets being amortized (net).......... 4,220 Solid waste fund capital assets, net.................... $ 11,010,821

Page 53

191,893 $ 12,638,269

Beginning Balance

Increases & Decreases & Reclassifications Reclassifications

Ending Balance

Storm Water Fund Capital assets not being depreciated Land and other nondepreciable capital assets... $ 963,567 Construction in progress............................... 1,565,016 Total capital assets not being depreciated...... 2,528,583 Capital assets being depreciated Equipment................................................... 141,933 Infrastructure.............................................. 20,737,823

2,666 446,969 449,635

446 71,990 72,436

965,787 1,939,995 2,905,782

5,900 1,178,558

6,236

141,597 21,916,381

Capital assets being depreciated................... Less accumulated depreciation for: Equipment................................................. Infrastructure............................................

20,879,756

1,184,458

6,236

22,057,978

113,155 5,929,826

10,319 701,465

243

123,231 6,631,291

Total accumulated depreciation.................. Total capital assets being depreciated (net)......

6,042,981 14,836,775

243

6,754,522 15,303,456

711,784

Capital assets being amortized Right to use assets: Lease equipment........................................ Total capital assets being amortized Less accumulated amortization for:

2,668 2,668

Right to use assets: Lease equipment........................................

970

1,940

Total accumulated amortization.................

970

1,940

Total capital assets being amortized (net)........ Storm water fund capital assets, net.................

1,698 17,367,056

728 18,209,966

Business-type activities capital assets, net... $ 420,810,697

$ 436,064,336

During the year, assets were transferred between business-type activities to governmental activities in the amount of $76,076 (with accumulated depreciation of $10,442). Assets were also transferred between governmental activities in the amount of $105,943 (with accumulated depreciation of $105,943).

Page 54

Depreciation expenses was charged to functions/programs of the primary government as follows: Depreciation Governmental activities: 2023 General Government ................................................. $ 6,345,927 Public Safety............................................................ 2,345,538 Public Services and Transportation............................. 8,770,237 Planning and Community Development........................ 19,392 Culture and Recreation............................................... 3,662,540 Total governmental activities depreciation expense

Amortization 2023 $ 1,129,615 375,711 47,002 420,146

21,143,634

1,972,474

Business-type activities: Water and Sewer......................................................... $ Electric...................................................................... Mass Transit............................................................... Parking Facilities......................................................... Landfill Facilities......................................................... Storm Water Facilities..................................................

15,157,479 3,474,945 1,069,896 45,473 989,640 705,883

13,331 30,272 21,291 807 33,070 970

21,443,316

99,741

Total business-type activities depreciation expense

A summary of capital assets for the ABC Board and FHP at June 30, 2023 follows: Assets Land, deposit, and buildings Land and buildings, held for resale Intangibles Equipment and vehicles Leasehold improvements Construction in progress Accumulated depreciation

Total ABC Board

ABC Board $ 3,796,121 1,679,590 535,337 274,244 (3,855,014) $ 2,430,278

FHP $

1,770,079 15,000 (9,000) 1,776,079

A summary of lease assets for the ABC Board at June 30, 2023 follows:

Leased Assets

ABC Board $ 5,319,940 (562,415) $ 4,757,525

Buildings Accumulated Amortization Total Leased Assets ABC Board

Page 55

B. Liabilities 1. Accounts payable and accrued expenses as of June 30, 2023 consisted of the following: Accounts Payable

Accrued Payroll and Expenses

Total

Governmental Activities General ............................................. $ General Capital Projects ...................... Other Non-major governmental funds .. Internal Service Fund .........................

3,177,031 1,580,597 1,097,757 2,467,535

Total governmental activities .............

8,322,920

4,181,304

12,504,224

Business-Type Activities Water and Sewer ............................... Electric ............................................. Other Non-major enterprise funds ........

4,402,986 8,970,582 749,939

534,181 580,427 451,109

4,937,167 9,551,009 1,201,048

Total enterprise funds ......................

14,123,507

1,565,717

15,689,224

Total Primary Government .................... $

22,446,427

4,045,168 53,190 82,946

5,747,021

7,222,199 1,580,597 1,150,947 2,550,481

28,193,448

2. Pension Plan and Other Postemployment Benefits a.

Local Governmental Employees' Retirement System

Plan Description. The City of High Point is a participating employer in the statewide Local Governmental Employees’ Retirement System (LGERS), a cost-sharing multiple-employer defined benefit pension plan administered by the State of North Carolina. LGERS membership is comprised of general employees and local law enforcement officers (LEOs) of participating local governmental entities. Article 3 of G.S. Chapter 128 assigns the authority to establish and amend benefit provisions to the North Carolina General Assembly. Management of the plan is vested in the LGERS Board of Trustees, which consists of 13 members – nine appointed by the Governor, one appointed by the State Senate, one appointed by the State 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 financial statements and required supplementary information for LGERS. That report may be obtained by writing to the Office of the State Controller, 1410 Mail Service Center, Raleigh, North Carolina 276991410, or by calling (919) 981-5454, or at www.osc.nc.gov. Benefits Provided. LGERS provides retirement and survivor benefits. Retirement benefits are determined as 1.85% of the member’s average final compensation times the member’s years of creditable service. A member’s average final compensation is calculated as the average of a member’s four highest consecutive years of compensation. Plan members are eligible to retire with full retirement benefits at age 65 with five 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 of age (15 years of creditable service for firefighters and rescue squad members who are killed in the line of duty) or have completed five years of service and have reached age 60. Eligible beneficiaries 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 contingent upon actuarial gains of the plan. Page 56

LGERS plan members who are LEOs are eligible to retire with full retirement benefits at age 55 with five years of creditable service as an officer, or at any age with 30 years of creditable service. LEO plan members are eligible to retire with partial retirement benefits at age 50 with 15 years of creditable service as an officer. Survivor benefits are available to eligible beneficiaries of LEO members who die while in active service or within 180 days of their last day of service and who also have either completed 20 years 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 of creditable service as a LEO if killed in the line of duty. Eligible beneficiaries may elect to receive a monthly Survivor’s Alternate Benefit for life or a return of the member’s contributions. 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 Board of Trustees. The City of High Point’s contractually required contribution rate for the year ended June 30, 2023, was 13.00% of compensation for law enforcement officers and 12.10% for general employees and firefighters, actuarially determined as an amount that, when combined with employee contributions, is expected to finance the costs of benefits earned by employees during the year. The ABC Board's contractually required contribution rate for the year ended June 30, 2022, was 10.12%. Contributions to the pension plan from the City of High Point and ABC Board were $11,018,844 and $337,242 respectively, for the year ended June 30, 2023. Refunds of Contributions – City employees who have terminated service as a contributing member of LGERS, may file an application for a refund of their contributions. By state law, refunds to members with at least five years of service include 4% interest. State law requires a 60-day waiting period after service termination before the refund may be paid. The acceptance of a refund payment cancels the individual’s right to employer contributions or any other benefit provided by LGERS. Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions At June 30, 2023, the City reported a liability of $57,998,392 for its proportionate share of the net pension liability and the ABC Board reported a liability of $1,093,309. The net pension liability was measured as of June 30, 2021. The total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of December 31, 2021. The total pension liability was then rolled forward to the measurement date of June 30, 2022 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 of future payroll covered by the pension plan, relative to the projected future payroll covered by the pension plan of all participating LGERS employers, actuarially determined. At June 30, 2022 (measurement date), the City’s proportion was 1.02808%, which was a decrease of 0.03358% from its proportion measured as of June 30, 2021. The ABC Board’s proportion was 0.019%. For the year ended June 30, 2023, the City recognized pension expense of $16,446,605 and the ABC Board recognized pension expense of $339,815. At June 30, 2023, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Differences between expected and actual experience Changes of assumptions Net difference between projected and actual earnings on pension plan investments Changes in proportion and differences between City contributions and proportionate share of contributions City contributions subsequent to the measurement date Total Page 57

Deferred Outflows of Resources $ 2,499,098 5,786,939

Deferred Inflows of Resources $ 245,022 -

19,169,076

98,474 11,018,844 38,572,431

454,430 699,452

$11,018,844 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 liability in the year ended June 30, 2024. Other amounts reported as deferred outflows of resources related to pensions will be recognized in pension expense as follows:

Year ended June 30: 2024 2025 2026 2027 Total

8,472,592 7,138,798 2,110,238 9,132,507 26,854,135

The ABC Board reported deferred outflows of resource and deferred outflows and inflows of resources related to pensions from the following sources:

Differences between expected and actual experience Changes of assumptions Net difference between projected and actual earnings on pension plan investments Changes in proportion and differences between Board contributions and proportionate share of contributions Board contributions subsequent to the measurement date Total

Deferred Outflows of Resources $ 47,110 109,088

Deferred Inflows of Resources $ 4,619 -

361,350

61,519

1,481

205,655 784,722

6,100

Amounts totaling $205,655 reported as deferred outflows of resources related to pensions resulting from Board contributions subsequent to the measurement date, will be recognized as a decrease of the net pension asset in the year ended June 30, 2024. Other amounts reported as deferred outflows (inflows) of resources related to pensions will be recognized in pension expense as follows :

Year ended June 30: 2024 2025 2026 2027 Total

192,661 166,537 41,615 172,154 572,967

Actuarial Assumptions. The total pension liability in the December 31, 2020 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Inflation Salary increases Investment rate of return

2.50% 3.50% to 8.25%, including inflation and productivity factor 6.5% percent, net of pension plan investment expense, including inflation

The plan currently uses mortality tables that vary by age, gender, employee group (i.e., general, law enforcement officer) and health status (i.e. disabled and healthy). 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 mortality improvements.

Page 58

The actuarial assumptions used in the December 31, 2021 valuation were based on the results of an actuarial experience study for the period January 1, 2015 through December 31, 2019. Future ad hoc COLA amounts are not considered to be substantively automatic and are, therefore, not included in the measurement. 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 across the U.S. Treasury yield curve and market expectations of forward yields projected and interpolated for multiple tenors and over multiple year horizons. Global public equity return projections are established through analysis of the equity risk premium and the fixed income return projections. Other asset categories and strategies’ return projections reflect the foregoing and historical data analysis. These projections are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class as of June 30, 2022 are summarized in the following table:

Asset Class Fixed Income Global Equity Real Estate Alternatives Credit Inflation Protection Total

Target Allocation 29.0% 42.0% 8.0% 8.0% 7.0% 6.0% 100%

Long-Term Expected Real Rate of Return 1.4% 5.3% 4.3% 8.9% 6.0% 4.0%

The information above is based on 30-year expectations developed with the consulting actuary for the asset, liability, and investment policy study for the North Carolina Retirement Systems, including LGERS. The long-term nominal rates of return underlying the real rates of return are arithmetic annualized figures. The real rates of return are calculated from nominal rates by multiplicatively subtracting a long-term inflation assumption of 2.25%. All rates of return and inflation are annualized. Discount rate. The discount rate used to measure the total pension liability was 6.50%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current contribution rate and that contributions from employers will be made at statutorily 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-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Sensitivity of the City’s proportionate share of the net pension liability to changes in the discount rate. The following presents the City’s proportionate share of the net pension liability calculated using the discount rate of 6.50%, as well as what the City’s proportionate share of the net pension asset or net pension liability would be if it were calculated using a discount rate that is one percentage point lower (5.50%) or one percentage point higher (7.50%) than the current rate.

Page 59

City's proportionate share of the net pension liability (asset)

1% Decrease (5.5%)

Discount Rate (6.5%)

1% Increase (7.5%)

$ 104,679,630

$ 57,998,392

$ 19,530,343

Pension plan fiduciary net position. Detailed information about the pension plan’s fiduciary net position is available in the separately issued Annual Comprehensive Financial Report (ACFR) for the State of North Carolina. b. Law Enforcement Officers’ Special Separation Allowance 1. Plan Description. The City of High Point administers a public employee retirement system (the “Separation Allowance”), a single-employer defined benefit pension plan that provides retirement benefits to the City’s qualified sworn law enforcement officers under the age of 62 who have completed at least 30 years of creditable service or have attained 55 years of age and have completed five or more years of creditable service. The Separation Allowance is equal to .85% of the annual equivalent of the base rate of compensation most recently applicable to the officer for each year of creditable service. The retirement benefits are not subject to any increases in salary or retirement allowances that may be authorized by the General Assembly. Article 12D of G.S. Chapter 143 assigns the authority to establish and amend benefit provisions to the North Carolina General Assembly. The Separation Allowance covers all full-time law enforcement officers of the City. At December 31, 2020, the Separation Allowance’s membership consisted of:

Retirees currently receiving benefits............ Active plan members.................................

60 229

Total........................................................

289

Summary of Significant Accounting Policies.

Basis of Accounting. The City has chosen to fund the Separation Allowance on a pay-as-you-go basis. 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. The Separation Allowance has no assets accumulated in a trust that meets the criteria which are outlined in GASB Statement 73. 3. Actuarial Assumptions The entry age actuarial cost method was used in the June 30, 2022 valuation. The total pension liability in the June 30, 2022 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Inflation Salary increases

2.5 percent 3.25 to 7.75 percent, including inflation and productivity factor 4.05 percent

Discount rate

Page 60

The discount rate is based on the yield of the Bond Buyer 20-Bond GO index as of December 31, 2021. Mortality rates are based on the Pub-2010 Mortality tables, projected forward generationally from the valuation date using MP-2019. 4.

Contributions.

The City is required by Article 12D of G.S. Chapter 143 to 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. The City’s obligation to contribute to this plan is established and may be amended by the North Carolina General Assembly. The City has chosen to set aside additional funds for future costs within the fund balance in the General Fund. During the fiscal year ended June 30, 2023, the City committed an additional $50,000 toward the reduction of the accrued actuarial liability. Administration costs of the Separation Allowance are financed through investment earnings. The City paid $1,201,145 as benefits came due for the reporting period. Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions At June 30, 2023, the City reported a total pension liability of $17,352,114. The total pension liability was measured as of December 31, 2022 based on a December 31, 2019 actuarial valuation. The total pension liability was then rolled forward to the measurement date of December 31, 2022 utilizing update procedures incorporating the actuarial assumptions. For the year ended June 30, 2023, the City recognized pension expense of $1,943,059. . Differences between expected and actual experience Changes of assumptions Benefit payments and administrative expenses subsequent to the measurement date Total

Deferred Outflows of Resources

Deferred Inflows of Resources

2,154,407 2,323,300 628,775 5,106,482

2,488,370 2,488,370

$628,775 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 recognized as a decrease of the total pension liability in the year ended June 30, 2023. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Amount recognized as Deferred Deferred an increase to Outflows of Inflows of Pension Year ende d June 30: Resources Resources Expense 2024 1,538,268 (706,182) 832,086 2025 1,427,215 (636,041) 791,174 2026 1,173,400 (636,041) 537,359 2027 338,824 (510,106) (171,282) $ 4,477,707 $ (2,488,370) $ 1,989,337 Sensitivity of the City’s total pension liability to changes in the discount rate. The following presents the City’s total pension liability calculated using the discount rate of 4.05%, as well as what the City’s

Page 61

total pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (3.05%) or 1-percentage-point higher (5.05%) than the current rate: 1% Decrease Discount Rate 1% Increase (3.05%) (4.05%) (5.05%) Total pension liability $ 18,773,607 $ 17,352,114 $ 16,100,554 Schedule of Changes in Total Pension Liability Law Enforcement Officers' Special Separation Allowance 2023 Beginnng balance of total pension liability $ 18,516,793 Changes for the year: Service cost 534,396 Interest on the total pension liability Changes of Benefits Terms Differences between expected and actual Changes of assumptions or other inputs

369,074 2,032,943 (2,899,947)

Benefit payments Ending balance of the total pension liability

(1,201,145) 17,352,114

The plan currently uses mortality tables that vary by age, and health status (i.e., disabled and healthy). 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 mortality improvements. The actuarial assumptions used in the June 30,2022 valuation were based on the results of an actuarial experience study for the five-year period ending December 31, 2019. Total Expense, Liabilities, and Deferred Outflows and Inflows of Resources of Related to Pensions

Page 62

Following is information related to the proportionate share and pension expense for all pension plans: LGERS Pension Expense Pension Liability Proportionate share of the net pension liability Deferred of Outflows of Resources Differences between expected and actual experience Changes of assumptions Net difference between projected and actual earnings on plan investments Changes in proportion and differences between contributions and proportionate share of contributions Contributions, benefit payments and administrative costs paid subsequent to the measurement date Deferred of Inflows of Resources Differences between expected and actual experience Changes of assumptions Net difference between projected and actual earnings on plan investments Changes in proportion and differences between contributions and proportionate share of contributions

LEOSSA

Total

$ 16,446,605 $ 1,943,059 57,998,393 17,352,114 1.0281% n/a

$ 18,389,664 75,350,507

2,499,098 5,786,939

2,154,407 2,323,300

4,653,505 8,110,239

19,169,076

98,474

11,018,844

628,775

11,647,619

245,022 -

2,488,370

245,022 2,488,370

454,430

Supplemental Retirement Income Plan for Law Enforcement Officers

Plan Description. The City contributes to the Supplemental Retirement Income Plan for Law Enforcement Officers (Plan), a defined contribution pension plan administered by the Department of officers employed by the City. Article 5 of G.S. Chapter 135 assigns the authority to establish and amend benefit provisions to the North Carolina General Assembly. The Plan is included in the Annual Comprehensive Financial Report (ACFR) for the State of North Carolina. The State’s ACFR includes the pension trust fund financial statements for the Internal Revenue Code Section 401(k) plan that includes the Plan. That report may be obtained by writing to the Office of the State Controller, 1410 Mail Service Center, Raleigh, North Carolina 27699-1410, or by calling (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. In addition, the law enforcement officers may make voluntary contributions to the plan. Contributions made by the City for the year ended June 30, 2023 were $789,337. No amounts were forfeited. d. Firefighters’ and Rescue Squad Workers’ Pension Fund 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 plan with a special funding situation administered by the State of North Carolina. FRSWPF provides pension benefits for eligible fire and rescue squad workers that have elected to become 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 Board of Trustees, which consists of 13 members – nine appointed by the Governor, one appointed by the state Senate, one appointed by the state House of Representatives, and the State Treasurer and State Superintendent, who serve as ex-officio members. The Firefighter’s and Rescue Squad Workers’ Pension Page 63

Fund is included in the Annual Comprehensive Financial Report (ACFR) for the State of North 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 Office of the State Controller, 1410 Mail Service Center, Raleigh, North Carolina 27699-1410, or by calling (919) 981-5454, or at www.osc.nc.gov. Benefits Provided. FRSWPF provides retirement and survivor benefits. The present retirement benefit is $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 will receive the amount paid by the member and contributions paid on the member’s behalf into the plan. Eligible beneficiaries of members who die after beginning to receive benefits will be paid the amount the member contributed minus the benefits collected. 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 General Statute 58-86 and may be amended only by the North Carolina General Assembly. For the fiscal year ending June 30, 2023 the State contributed $19,352,00 to the plan. The City of High Point’s proportionate share of the State’s contribution is $80,274. Refunds of Contributions – Plan members who are no longer eligible or choose not to participate in the plan 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 any other benefit provided by FRSWPF. Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions At June 30, 2023, the City reported no liability for its proportionate share of the net pension liability, as the State provides 100% pension support to the City through its appropriations to the FRSWPF. The total portion of the net pension asset that was associated with the City and supported by the State was $79,009. The net pension liability was measured as of June 30, 2022. The total pension liability used to calculate the net pension asset was determined by an actuarial valuation as of December 31, 2021. The total pension asset was then rolled forward to the measurement date of June 30, 2022 utilizing update procedures incorporating the actuarial assumptions. The City’s proportion of the net pension asset was 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 contributions to the plan, its proportionate share at June 30, 2022 and at June 30, 2023 was 0%. For the year ended June 30, 2023, the City recognized pension expense of $20,720 and revenue of $20,720 for support provided by the State. At June 30, 2023, the City reported no deferred outflows of resources and no deferred inflows of resources related to the FRSWPF. Actuarial Assumptions. The total pension liability in the December 31, 2020 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Inflation Salary increases Investment rate of return

2.50% Not applicable 6.5%, net of pension plan investment expense, including inflation

For more information regarding actuarial assumptions, including mortality tables, the actuarial experience study, the consideration of future ad hoc COLA amounts, the development of the projected long-term investment returns, and the asset allocation policy, refer to the discussion of actuarial assumptions for the LGERS plan in Section a. of this note.

Page 64

Discount rate. The discount rate used to measure the total pension liability was 6.50%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current contribution rate and that contributions from employers will be made at statutorily 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-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Pension plan fiduciary net position. Detailed information about the pension plan’s fiduciary net position is available in the separately issued ACFR for the State of North Carolina. e.

Other Postemployment Benefits-Health Care Benefit Plan

Plan Description. Under the terms of a City resolution, the City administers a single-employer defined benefit Healthcare Benefits Plan (the HCB Plan). The City Council has the authority to establish and amend the benefit terms and financing requirements. No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement 75. Benefits Provided. The City provides continuation of medical insurance coverage to employees who retire under the North Carolina Local Governmental Employees’ Retirement System (NCLGERS) eligibility terms at the same time they end their continuous service to the City. The retiree and his or her spouse may 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 issued for the plan. 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 insurance plan. The ABC Board pays the full cost of coverage for those benefits through private insurance. A separate report was not issued for the ABC Board’s Plan. Membership of the HCB Plan at June 30, 2022, the date of the latest actuarial valuation consisted of the following: Active Retired Total

Members 1,379 74 1,453

ABC Board 32 1 33

Total OPEB Liability The City’s total OPEB liability of $13,418,195 was measured as of June 30, 2022 and was determined by an actuarial valuation date of June 30, 2023. The ABC Board’s total OPEB liability is $316,739. Actuarial assumptions and other inputs The total OPEB liability in the June 30, 2022 actuarial valuation was determined using the following actuarial assumptions and other inputs, applied to all periods included in the measurement unless otherwise specified: Inflation Salary increases, including inflation Law Enforcement General Employees and Firefighters Discount rate Heathcare cost trend Trends (pre-medicare)

Page 65

2.50% 3.3% - 7.8% 3.3% - 833% 3.69% 7.50% for 2022 decreasing to an ultimate rate of 4.50% by 2030

The discount rate is based on the June average of the Bond Buyer 20-Bond GO Index published weekly by The Bond Buyer. Changes in the Total OPEB Liability Balance at July 1, 2023 (July 1, 2022 for ABC Board) Changes for the year Service Cost Interest Changes of Benefit terms Differences between expected and actual experience Changes in assumptions or other inputs Benefit payments Net Changes Balance at June 30, 2023 (June 30, 2023 for ABC Board)

City of High Point $ 15,594,751

527,593 330,912 (1,798,714) 196,816 (883,728) (549,435) (2,176,556) 13,418,195

ABC Board 331,209

43,030 7,975 10,231 (65,584) (10,122) (14,470) 316,739

Changes in assumptions and other inputs reflect a change in the discount rate from 2.16% to 3.69% due to a change in the Municipal Bond Rate. Mortality rates were based on the RP-2014 Total Data Set for Healthy Annuitants Mortality Table with adjustments for LGERS experience and generational mortality improvements using Scale MP-2015. The actuarial assumptions used in the June 30, 2022 valuation were based on the results of an actuarial experience study for the period January 2015 through December 2019. Sensitivity of the total OPEB liability to changes in the discount rate. The following presents the total OPEB 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 (2.69%) or 1-percentage-point higher (5.69%) than the current discount rate:

Total OPEB liability

1% Decrease (2.69) $ 14,885,784

Discount Rate (3.69%) $

13,418,195

1% Increase (4.69%) $ 12,126,641

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 what the City’s OPEB liability would be if it were calculated using a health care cost trend ate that is 1-percentage point lower or 1-percentage point higher than the current rate.

Total OPEB liability

1% Decrease $ 11,896,433

Page 66

Current Tre nd Rates $ 13,418,195

1% Increase $ 15,223,273

OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the year ended June 30, 2023, the City recognized OPEB benefit of $(1,045,928). At June 30, 2023, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Deferred Outflows Deferred Inflows

Differences between expected and actual experience Changes of assumptions Benefit payments and administratvie costs made subsequent to the measurement date Total

of Resources $ 1,104,100 2,070,663

Resources $ 1,879,032 1,004,978

424,855 3,599,618

2,884,010

$424,855 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 decrease of the total OPEB liability in the year ended June 30, 2024. Amounts reported as deferred outflows of resources and deferred inflows of resources related to other postemployment benefits will be recognized in OPEB expense as follows.

For the Measurement Period Ended Ended June 30: City of High Point 2024 (109,720) 2025 (109,720) 2026 (81,192) 2027 106,422 2028 340,071 Thereafter 144,892 $ 290,753

ABC Board (4,218) (2,076) (1,048) (1,048) (507) 10,685 $ 1,788

3. Other Employment Benefits The City has elected to provide death benefits to employees through the Death Benefit Plan for members of the Local Governmental Employees' Retirement System (Death Benefit Plan), a multiple-employer, Stateadministered, cost-sharing plan funded on a one-year term cost basis. The beneficiaries of those employees who die in active service after one year of contributing membership in the system, or who die within 180 days after retirement or termination of service and have at least one year of contributing membership service in the System at the time of death are eligible for death benefits. Lump sum death benefit payments to beneficiaries are equal to the employee's 12 highest months’ salary in a row during the 24 months before the employee's death, but the benefit may not exceed $50,000 or be less than $25,000. Because all death benefit payments are made from the Death Benefit Plan and not by the City, the City does not determine the number of eligible participants. The City has no liability beyond the payment of monthly contributions. The contributions to the Death Benefit Plan cannot be separated between the postemployment benefit amount and the other employment benefit amount. Contributions are determined as a percentage of monthly payroll based upon rates established by the State. Separate rates are set for employees not engaged in law enforcement and for law enforcement officers. The City considers these contributions to be immaterial.

Page 67

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.

Deferred Outflows and Inflows of Resources

The City has several deferred outflows of resources comprised of the following:

Source

Amount

LEOSSA benefit payments in current fiscal year

628,775

Contributions for LGERS made subsequent to measurement date

11,018,844

OPEB benefit payments made subsequent to measurement date

424,855

Differences between expected and actual experience

5,757,605

Changes of assumptions Net difference between projected and actual Changes in proportion and differences betweeen employer contributions and proporitionate share of contributions

10,180,902 19,169,076

Total

98,474 $

47,278,531

Deferred inflows of resources at year-end is comprised of the following:

Source Prepaid taxes (General Fund) Taxes Receivable, less penalties (General Fund) Grant and Miscellaneous Receivable (General Fund) Lease Receivable (General Fund) Grant and Miscellaneous Deferred Revenue (Non-major governmental funds) Lease Receivable (Non-major Funds) Developer pond maintenance funds Changes in assumptions Differences between expected and actual experience Changes in proportion and differences betweeen employer contributions and proporitionate share of contributions Deferred gain on refunding (Water & Sewer) Lease Receivable (Non-major Funds) Deferred gain on refunding (Stormwater) Total

Statement of Net Position

Governmental Funds Balance Sheet

47,824 6,521,394

47,824 188,765 193,110 6,521,394

1,852,851 2,399,358 3,493,348 2,124,054

361,145 1,852,851 -

454,430 2,582,421 59,204 240,752 $ 19,775,636

9,165,089

5. Closure and Postclosure Care Costs - Kersey Valley Landfill Facilities State and federal laws and regulations require the City to place a final cover on its Kersey Valley Landfill Facilities when it stops accepting waste and to perform certain maintenance and monitoring functions at the site for thirty years after closure. Although closure and postclosure care costs will be paid only near or after the date that the landfill stops accepting waste, the City reports a portion of these closure and postclosure care costs as an operating expense in each period based on landfill capacity used as of each balance sheet date. The Page 68

$15,726,162 reported as landfill closure and postclosure care liability at June 30, 2023 represents a cumulative amount reported to-date based on the two existing lined municipal solid waste landfill units – Area 1 (Phases 1, 2, 3, and 3A) and Area 2 (Phases 4, 5A, and 5B). The Area 1 landfill unit is currently near capacity and a partial closure has recently been completed. Phases 4 and 5A of the Area 2 landfill unit are currently active and Phase 5B is currently under construction and is projected to be operational in the near future. The City will recognize the remaining estimated costs of closure and postclosure as new phases are developed. These amounts are based on what it would cost to perform all closure and postclosure care in 2023. Actual costs may be higher due to inflation, changes in technology, or changes in regulations. The City has met the requirements of a local government financial test that is one option under State and federal laws and regulations that helps determine if a unit is financially able to meet closure and postclosure care requirements. At June 30, 2023, the City has accumulated $15,726,162 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 (due to changes in technology or applicable laws or regulations, for example), these costs may need to be covered by charges to future landfill users. 6. Commitments Commitments for the purchase of goods and services and for the construction and acquisition of assets are as follows at June 30, 2023: General Fund Debt Service

$ 5,078,414 5,000

Special Revenue General Capital Projects

1,451,410 11,703,881

Proprietary Funds

35,711,809 $ 53,950,514

Amounts shown above for the General, Special Revenue, and General Capital Project funds represent encumbrances and are components of restricted fund balances as described in Note 1.F.14. 7. Risk Management The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The City protects itself from potential loss through 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 general, professional, flood, law enforcement, vehicle, and underground storage tank liabilities. 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), based on actuarial computations. Settled claims have not exceeded self-retained or purchased insurance coverage in any of the past three fiscal years and there have been no significant reductions in insurance coverage in the prior year. The City has several properties located in various “at risk” categories as identified by the Federal Emergency Management Agency. Consequently, the City carries commercial flood insurance for aggregate coverage limits of $250 million and for several specific properties at $2 million per structure. Deductibles for specific loss range from $100,000 to $500,000 per location and can be covered under the general self-insured arrangements as discussed above.

Page 69

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 $100,000. All other employees that have access to funds are bonded under a blanket bond for $100,000. 8. Claims and Judgments At June 30, 2023, 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 at this time. Estimated annual operating and maintenance costs are budgeted in the City’s Solid Waste Fund. 9. Reconciliation of Claims Liability Changes in the City’s worker’s compensation claims liability are included in accounts payable on the Statement of Net Position and its balance during fiscal year 2023 is as follows (note: this is the first year of the IBNR):

Balance, July 1 Add: Incurred claims (including) IBNR's and changes in estimates Deduct: Claims payments Balance, June 30

Worker's Compensation $ -

3,407,213 (1,733,177) 1,674,036

10. Long-Term Obligations 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 respective funds. There are limitations and restrictions contained in the various bond indentures.

Page 70

Leases

The City has entered agreements to lease certain equipment and a bus station. The lease agreements qualify as other than short-term leases under GASB 87 and, therefore, have been recorded at the present value of the future minimum lease payments as of the date of their inception. Year Ending June 30, 2024 ....................................... 2025 ....................................... 2026 ....................................... 2027 ....................................... 2028 ....................................... TOTAL

Governmental Activities Principal Interest $ 622,785 $ 17,350 564,539 11,204 182,763 5,233 113,479 1,860 13,585 73 $ 1,497,151 $ 35,720

Business-type Activities Principal Interest $ 53,874 $ 3,419 41,791 1,719 2,714 55 1,850 22 $ 100,229 $ 5,215

b. Installment Purchase Contracts The City has entered direct placement installment purchase agreements to acquire certain equipment. These contracts are typically five or ten-year term with quarterly or semi-annual payments. The principal sources of funding for these installment financing contracts are the General Fund and Internal Service Fund. The equipment (Fleet vehicles, public safety vehicles, real property, and public safety equipment) are pledged as collateral for the debt. Future annual debt service payments on installment purchase contracts as of June 30, 2023 including interest of $453,213 is as follows: Year Ending

Governmental

June 30,

Activities Principal

Activities Interest

2024 .........................................................

155,021

2,079,720

118,031

2026 .........................................................

1,654,200

80,889

2027 .........................................................

800,783

52,215

2028 .........................................................

700,000

32,940

2029 ......................................................... TOTAL

2,069,615

2025 .........................................................

700,000 $

8,004,318

14,117 $

453,213

General Obligation Indebtedness

General Obligation Bonds The City’s general obligation bonds serviced by the governmental funds were issued for a variety of eligible purposes as permitted by North Carolina general statutes, including transportation, public safety, recreation, libraries and public buildings. Those general obligation bonds issued to finance the construction of facilities utilized in the operations of the enterprise funds and which its resources are retiring is reported as long-term debt in the respective enterprise fund. All general obligation bonds are collateralized by the full faith, credit, and taxing power of the City. In the event of a default, the City agrees to pay to the purchaser, 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, 2023, the City of High Point had $26,000,000 authorized but unissued bonds and a legal debt margin of approximately $987 million. Page 71

Serviced by the governmental funds: $8,866,942 Series 2014 Refunding bonds for transportation, public buildings, recreation, library and firefighting facilities maturing serially on March 1 through 2027 with interest semiannually September 1 and March 1 at rates varying between 2.5% - 5.0%

3,020,029

$6,115,000 Series 2014 Public Improvement bonds for transportation, recreation, and firefighting facilities maturing serially on March 1 through 2034 with interest semiannually September 1 and March 1 at rates varying between 2.0% - 4.0%

3,355,000

$16,956,919 Series 2016 Public Improvement bonds for transportation, recreation, library, and public buildings maturing serially on March 1 through 2029 with interest semiannually September 1 and March 1 at rates varying between 2.75% - 5.0%

8,794,798

$6,600,000 Series 2018 Public Improvement bonds for public buildings maturing serially on March 1 through 2039 with interest semiannually September 1 and March 1 at rates varying between 3.0% - 4.0%

5,280,000

$10,566,874 Series 2020 Refunding Public Improvement bond for streets and public buildings maturing serially on June 1 through 2030 with interest semiannually December 1 and June 1 at 1.7%

7,556,945

$5,300,000 Series 2022A Public Improvement bond for parks and recreation maturing serially on March 1 through 2032 with interest semiannually September 1 and March 1 at 5%

4,770,000

$26,000,000 Series 2022B Public Improvement bond for parks and recreation, transportation, and affordable housing maturing serially on March 1 through 2042 with interest semiannually September 1 and March 1 at 3.25% - 5.0%

24,965,000

$4,598,550 Series 2022C Refunding Public Improvement bond for streets and sidewalks maturing serially on March 1 through 2032 with interest semiannually March 1 and September 1 at 1.96% Total serviced by governmental funds

3,624,996 61,366,768

Page 72

Serviced by Enterprise Funds: Water & Sewer Fund $1,624,747 Series 2022C Refunding bonds for water and sewer maturing serially on March 1 through 2032 with interest semiannually March 1 and September 1 at 1.96%

990,251

Total serviced by Water & Sewer Fund

990,251

Storm Water Fund $1,233,058 Series 2014 Refunding bonds for storm water facilities maturing serially on March 1 through 2027 with interest semiannually September 1 and March 1 at rates varying between 2.5% - 5.0%

419,971

$3,413,081 Series 2016 Refunding bonds for storm water facilities maturing serially on March 1 through 2029 with interest semiannually September 1 and March 1 at rates varying between 2.25% - 5.0%

1,770,209

$2,591,126 Series 2020 Refunding bonds for storm water facilities maturing serially on June 1 through 2030 with interest semiannually December 1 and June 1 at 1.7%

1,853,055

$857,703 Series 2022C Refunding bonds for storm water facilities maturing serially on March 1 through 2032 with interest semiannually March 1 and September 1 at 1.96%

552,753

Total serviced by Storm Water Fund

4,595,988

Premium on general obligation bonds

2,498,749

Total general obligation bonds, net of discounts

69,451,756

Annual Debt Service Requirements: Annual debt service requirements to maturity for the General Obligation bonds are as follows: Governmental Activities - Bonds

Business-Type Activities Bonds

General Obligation Principal Interest

Year Ending June 30,

Water and Sewer Principal Interest

Storm Water Principal Interest

2024 2025 2026 2027 2028 2029-2033 2034-2039 2039-2042

6,279,826 $ 6,260,799 6,156,178 5,816,422 5,216,434 15,267,109 9,780,000 6,590,000

2,199,621 1,954,409 1,722,917 1,505,473 1,317,015 4,458,696 2,156,813 554,256

389,376 $ 342,463 258,412 -

19,409 $ 11,777 5,065 -

876,797 $ 859,738 816,411 674,578 596,566 741,898 -

123,376 94,970 68,176 44,856 28,744 19,647 -

Total

61,366,768 $

15,869,200

990,251 $

36,251 $

4,565,988 $

379,769

Page 73

d. Limited Obligation Bonds: 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 requirements will be provided by appropriation in the year in which they become due. Serviced by the governmental funds: $35,000,000 Series 2018 Limited Obligation bonds for Stadium Facility on February 1, 2018 through 2039 with interest semiannually October 1 and April 1 at rates varying between 2.31% - 3.78% $18,175,000 Series 2020 Limited Obligation bonds for Police Department Headquarters and Communication Center with principal payments due annualy May 1, 2022 to May 1, 2040 with interest semiannually October 1 and April 1 at 2.15% Total serviced by governmental funds

28,950,000

16,261,000 45,211,000

Annual debt service requirements to maturity for the Limited Obligation bonds are as follows: Annual Debt Service Requirements: Year Ending June 30, 2024 2025 2026 2027 2028 2029-2033 2034-2038 2039-2040 Total

Principal 2,522,000 2,547,000 2,567,000 2,597,000 2,632,000 13,644,000 14,670,000 4,032,000 45,211,000

Page 74

Interest 1,346,379 1,278,945 1,209,486 1,137,878 1,063,591 4,109,082 1,865,287 101,730 12,112,378

Revenue Bonds Serviced by Enterprise Funds: Water & Sewer Fund $37,640,000 Series 2014 Enterprise System Revenue Refunding Bonds for water and sewer maturing serially beginning November 1, 2016 through 2036 and term bonds maturing on November 1, 2037, 2038, and 2039. The bonds pay interest semiannually November 1 and May 1 at rates varying 3.00% - 5.00%. All maturities beyond November 1, 2024 ($27,775,000) have been legally defeased with the issuance of Series 2021B.

2,565,000

$50,575,000 Series 2016 Enterprise System Revenue Refunding Bonds for water and sewer maturing serially beginning November 1, 2017 through 2033 and term bonds maturing on November 1, 2037. The bonds pay interest semiannually November 1 and May 1 at rates varying 3.00% - 5.00%

38,180,000

$47,610,000 Series 2019 Enterprise System Revenue Bonds for water and sewer maturing serially beginning November 1, 2020 through 2040 and term bonds maturing on November 1, 2043. The bonds pay interest semiannually November 1 and May 1 at rates varying 3.00% - 5.00%

43,785,000

$30,542,000 Series 2021B Enterprise System Revenue Refunding Bonds for water and sewer maturing serially beginning November 1, 2023 through 2039. The bonds pay interest semiannually November 1 and May 1 at rates varying 2.75%. This refunding resulted in a deferred loss of $2,657,000 amortized over the remaining life of the issuance.

30,367,000

$34,755,000 Series 2022 Enterprise System Revenue Bonds for water and sewer maturing serially beginning November 1, 2023 through 2042 and term bonds maturing on November 1, 2046. The bonds pay interest semiannually November 1 and May 1 at rates varying 4.00% - 5.00%

34,755,000

$20,386,000 Series 2022B Enterprise System Revenue Refunding Bonds for water and sewer maturing serially beginning November 1, 2022 through 2031. The bonds pay interest semiannually November 1 and May 1 at rates varying 1.59%.

20,101,000

Total serviced by Water & Sewer Fund Premiums on revenue bonds Total revenue bonds, net of premiums

169,753,000 8,332,285 178,085,285

The City has pledged future water and sewer customer revenues, net of specified operating expenses, to repay 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 appropriation in the year in which they become due.

Page 75

Annual Debt Service Requirements: Annual debt service requirements to maturity for the revenue bonds are as follows: Business - Type Water and Sewer

Year Ending June 30, 2024 2025 2026 2027 2028 2029-2033 2034-2038 2039-2043

Principal 8,934,000 9,415,000 9,816,000 10,201,000 10,596,000 54,893,000 32,343,000 22,915,000

2044-2047 Total

Interest 6,171,197 5,789,916 5,404,653 5,017,189 4,612,239 16,735,609 8,433,844 3,796,916 736,650

10,640,000 $

169,753,000

56,698,213

The City believes it is in compliance with the covenants as to rates, fees and charges in Section 7.04 of the Enterprise System Trust Agreement since its adoption in 2004 and the related Supplemental Trust Agreements and bond orders authorizing the 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. The Trust Agreement requires that the City maintain parity debt service coverage ratio to be no less than 120% or total debt service coverage ratio to be no less than 100% under one of two pronged tests. The debt service coverage ratio calculation for the year ended June 30, 2023 is as follows: Prior Year Unrestricted Net Position

12,155,939

Operating revenue

62,734,169

Operating expenses, excluding depreciation, accrued stipends, pension, and OPEB

36,101,892

Income available for debt service

26,632,277

Parity debt service requirement

14,298,966

Total debt service requirement

15,015,732

Coverage on parity debt including 15% prior year unrestricted net position

199%

Coverage on total debt excluding 15% prior year unrestricted net position

177%

State and Federal Revolving and Bond Loans

Serviced by Enterprise Funds: A federal revolving loan was executed October 17, 2011 for sewer projects under the stimulus provisions of the American Recovery and Reinvestment Act of 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, 2023, $1,307,509 had been drawn-down and principal forgiveness of $653,753 granted. In addition, principal payments of $425,491 have been made, leaving an outstanding balance of $228,265. The loan is secured by a pledge of revenues. Page 76

Annual Debt Service Requirements: Annual debt service requirements to maturity for the Loans Payable are as follows: Business Activities - Loans and Notes Payable Water and Sewer Federal Revolving Loans

Year Ending June 30,

Principal

Interest

2024 2025 2026 2027 2028 2029-2030

32,609 32,609 32,609 32,609 32,609 65,220

Total

228,265

g. HUD Section 108 Federal Loans 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) for redevelopment projects authorized under the CDBG Section 108 loan program. The City has related developer notes receivable in these amounts as the principal component is deferred. The City’s notes payable is secured by the property as well as future CDBG appropriations. In March 2019, the amortization schedules for both notes were finalized by HUD. 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. The City’s note payable is secured by the property as well as future CDBG appropriations. The amortization details for this note have not been finalized. The City is currently making principal and interest payments to HUD according to HUD’s interim financing program. As of June 30, 2023, the outstanding principal amount due to HUD is $569,000. Annual Debt Service Requirements: Annual debt service requirements to maturity for the Loans Payable are as follows: Governmental Activities - Loans and Notes Payable Section 108 HUD Loans Principal Interest

Year Ending June 30, 2024 2025 2026 2027 2028 2029-2033

97,000 87,000 84,000 81,000 79,000 381,000

105,902 103,472 101,161 98,853 96,561 446,950

2034-2038 Total

2,382,000 3,191,000

223,545 1,176,444

Page 77

h. Component Unit Loan Payable In February 2022, Forward High Point, Inc. refinanced a loan and entered a loan agreement with a financial institution. Collateral is all buildings not serving as collateral for the lines of credit and their related assigned rents. The carrying value of assets used as collateral at June 30, 2022 was $833,055 and is included in property held for resale. The interest rate is 0.25% over the prime rate with a floor of 3.5%. Monthly interest-only payments will be made through January 2025 with the remaining interest and principal due February 2025. The outstanding balance was $760,000 at June 30, 2023. i.

Lines of Credit

Forward High Point, Inc., a blended component unit reported as part of governmental activities, has a line of credit of $2,500,000 to acquire property located in the City, which is used as collateral against the line of credit. The line of credit bears interest at 3.5%. Accrued interest on outstanding principal is due monthly and the principal balance is due at maturity on September 10, 2023. At June 30, 2023, the outstanding principal on the line of credit is $920,000. j.

Subscriptions

For the year ended June 30, 2023, the City implemented the requirements of GASB Statement No. 96, Subscription-Based Information Technology Arrangements (Subscriptions). The Statement provides a definition of Subscriptions and provides uniform guidance for accounting and financial reporting for such transactions. The guidance will decrease diversity in the accounting and financial reporting for these transactions, thereby, increasing comparability in financial reporting among governments. Further, the reporting of a subscription asset (a right-to-use intangible capital asset) and a subscription liability will enhance the relevance and reliability of the financial statements.

Year Ending June 30, 2024 ....................................... 2025 ....................................... 2026 ....................................... 2027 ....................................... 2028 ....................................... TOTAL

Governmental Activities Principal Interest $ 1,136,316 $ 39,493 609,889 14,875 47,000 1,112 $ 1,793,205 $ 55,480

Page 78

Business-type Activities Principal Interest $ 110,329 $ 9,931 92,994 7,414 56,560 4,965 61,164 3,437 66,047 1,785 $ 387,094 $ 27,532

k. Changes in Long-Term Liabilities Current Beginning Balance

Increases

Ending Balance

Decreases

Portion of Balance

Governmental Activities: Bonds and notes payable: General obligation bonds...........................................

67,871,692 $

- $

6,504,924 $

61,366,768 $

6,279,826

Premium on general obligation bonds......................

2,666,036

167,287

2,498,749

167,287

Limited obligation bonds............................................

47,713,000

2,502,000

45,211,000

2,522,000

Notes and loans payable............................................

4,652,000

132,000

4,520,000

122,000

Line of credit payable..................................................

920,000

2,069,615

Direct placement installment purchase agreements

10,254,114

2,249,796

8,004,318

Lease liabilities.............................................................

1,841,683

404,130

748,662

1,497,151

622,785

IT subscription agreements....................................... Total outstanding debt............................................

135,918,525

3,338,611 3,742,741

1,545,406 13,850,075

1,793,205 125,811,191

1,136,316 12,919,829

5,466,561

4,066,492

4,088,758

5,444,295

3,964,410

Retirement incentive stipends liability.....................

58,575

Total OPEB liability.....................................................

10,727,629

1,557,633

9,169,996

Net pension liability (LGERS)....................................

12,036,969

30,423,654

42,460,623

Total pension liability (LEO) .....................................

18,516,793

1,164,679

17,352,114

Other liabilities: Compensated absences..............................................

Total other liabilities:................................................ Governmental activities long-term liabilities...............

46,806,527

34,490,146

6,869,645

74,427,028

3,964,410

182,725,052 $

38,232,887 $

20,719,720 $

200,238,219 $

16,884,239

1,624,747 $

- $

634,496 $

990,251 $

389,376

Business-type Activities: Bonds and notes payable Water and Sewer General Obligation Bonds........... Water and Sewer Revenue Bonds............................

177,543,000

20,386,000

28,176,000

169,753,000

8,934,000

Premium on Water and Sewer Revenue Bonds.......

8,738,978

406,694

8,332,284

406,694

Total Water and Sewer Revenue Bonds...............

186,281,978

20,386,000

28,582,694

178,085,284

9,340,694

Storm Water General Obligation Bonds...................

5,566,567

1,000,579

4,565,988

876,797

Notes and loans payable............................................

260,874

32,609

228,265

32,609

Water and Sewer lease liabilities...............................

11,653

6,641

5,012

Electric lease liabilities................................................

29,905

11,759

18,146

10,729

Transit lease liabilities.................................................

7,050

1,287

5,763

1,346

Parking lease liabilities................................................

1,415

806

609

609 35,446

Solid Waste lease liabilities........................................

4,229

103,586

37,847

69,968

Storm Water lease liabilities.......................................

1,701

969

732

Water and Sewer IT subscription agreements........

16,713

8,150

8,563

Electric IT subscription agreements.........................

337,267

53,148

284,119

48,128

Transit IT subscription agreements..........................

54,876

22,122

32,754

23,212

Solid Waste IT subscription agreements................. Total outstanding debt............................................

193,790,119

93,720 20,992,162

32,062 30,425,169

61,658 184,357,112

30,425 10,803,678

Other liabilities Landfill closure and post-closure .............................

14,506,082

1,220,080

15,726,162

Total OPEB liability.....................................................

4,867,122

618,923

4,248,199

Net pension liability (LGERS).................................... Retirement incentive stipends liability.....................

4,244,606 31,763

11,293,163 -

31,763

15,537,769 -

Compensated absences..............................................

1,752,715

1,333,377

1,198,354

1,887,738

1,287,847

Total other liabilities.................................................

25,402,288

13,846,620

1,849,040

37,399,868

1,287,847

219,192,407 $

34,838,782 $

32,274,209 $

221,756,980 $

12,091,525

Business-type activities long-term liabilities..............

Page 79

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. Note 3. Interfund Balances and Activity A schedule of interfund transfers for the year ended June 30, 2023 is as follows: Transfers from

Transfers to

General

General Fund................................... $ - $ General Capital Projects Fund......... 15,304,636 Non-major governmental funds....... 7,464,381 Internal Service Fund....................... 205,000 Non-major enterprise funds.............

3,174,063

Total.......................................... $ 26,148,080 $

American Rescue Plan Fund

Non-major Governmental Funds

- $ 105,672 105,672 $

21,326 -

Water and Sewer $

Electric

Non-major Enterprise

50,000 375,000 54,000

$ 2,116,151 600,000 85,000

150,000 813,000

100,000

21,326

$ 579,000

$ 2,901,151

$ 963,000

Total $

2,166,151 16,556,634 7,464,381 1,157,000 3,374,063

30,718,229

Transfers are used to move revenues from the appropriate funds for the payment of debt service principal and interest, move restricted borrowings to establish mandatory reserve accounts, and to move unrestricted revenues to finance various programs that the government must account for in other funds in accordance with budgetary authorizations, including amounts provided as subsidies of matching funds for various grant programs. The transfers from the Electric Fund to the General Fund represent the amounts designated for Economic Development and the International Home Furnishings Market as well as the payment in lieu of taxes. 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 contributions are eliminated in the government-wide statement presentation. The City Council authorized internal borrowings as part of its Downtown Catalyst Economic Development Project 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 financing options, the General Capital Projects Fund borrowed $2,000,000 from the Electric Fund, $5,000,000 from the Landfill Closure/Post-closure Fund, and $1,000,000 from the Internal Service Fund in June 2017. In the formal 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 investments at that time. The repayment schedule provides for the return of funds first to the Internal Service Fund, then to the Electric Fund, and then to the Solid Waste Fund. The interfund loan between the Internal Service Fund and the General Capital Projects Fund is eliminated in the government-wide statement presentation. In June 2023, the City Council authorized an internal borrowing for the City Lake Project from the Landfill Development and Post-Closure Fund in the amount of $8,352,748 to be repaid over 15 years with an annual interest rate of 1.00%. The interfund transactions are presented as long-term interfund receivables for the enterprise funds and as a longterm interfund payable in the governmental fund statements.

Page 80

Interfund Balances Receivable

Interfund Balances Payable

Non-major Enterprise

Electric

General Capital Projects Fund........ $ 1,400,000

13,352,748

Total $

14,752,748

The repayment plan related to the Downtown Catalyst Economic Development Project is below. The current principal balance is $6,400,000. Landfill Electric Reserve Total FY 2024 443,323 443,323 FY 2025 443,323 443,323 FY 2026 443,323 443,323 FY 2027 221,658 221,665 443,323 FY 2028 443,323 443,323 FY 2029 443,323 443,323 FY 2030 443,323 443,323 FY 2031 443,323 443,323 FY 2032 443,323 443,323 FY 2033 443,323 443,323 FY 2034 443,323 443,323 FY 2035 443,323 443,323 FY 2036 443,323 443,323 FY 2037 443,323 443,323 FY 2038 443,323 443,323 FY 2039 443,323 443,323 $ 1,551,627 $ 5,541,541 $ 7,093,168 The repayment plan related to the City Lake Park Renovation Project is below. The current principal balance is $8,352,748. Landfill Reserve FY 2024 600,000 FY 2025 600,000 FY 2026 600,000 FY 2027 600,000 FY 2028 600,000 FY 2029 600,000 FY 2030 600,000 FY 2031 600,000 FY 2032 600,000 FY 2033 600,000 FY 2034 600,000 FY 2035 600,000 FY 2036 600,000 FY 2037 600,000 FY 2038 639,076 $ 9,039,076

Page 81

Note 4. Joint Ventures A. The North Carolina Municipal Power Agency Number 1 (Power Agency) is a joint venture organized and existing 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 and a Supplemental Power Sales Agreement with each participant. These agreements provide for each participant to purchase from the Power Agency its all-requirements bulk power supply, in excess of power allotments from the 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 participant at the respective delivery points. Each participant is obligated to pay its share of the operating and debt service costs of the project. The City began purchase of power from the Power Agency under the Project Power Sales Agreement dated July 1, 1983. Each municipality may appoint one commissioner to serve on the Power Agency's board. The board elects its own officers and is responsible for the selection of management to run the daily operations of the Power Agency. The Power Agency is responsible for budgeting and receiving its financing. Summary financial information for the Agency for the year ended December 31, 2022 is presented below (in thousands of dollars): Total Current and other assets…………………………………… $ 1,086,409 Capital assets………………………………………………… 1,171,679 Deferred outflow of resources……………………………… 25,464 Total assets and deferred outflows of resources……… 2,283,552 99,309 Current liabilities……………………………………………… Long-term debt and other non-current liabilities…………… 1,184,376 Deferred inflows of resources……………………………… 725,463 Total liabilities and deferred inflow of resources………

2,009,148

Total net position…………...……………………………… $

274,404

Total revenues……………...……………………………… $ Total expenses……………………………………………… Net increase (decrease) in net position...…………………… $

468,321 397,094 71,227

As of December 31, 2022, the Agency had outstanding $635,475,000 of bonds.

Page 82

The following is a summary of debt service requirements for bonds outstanding at December 31, 2022 (in thousands of dollars):

Year 2023 2024 2025 2026 2027 to 2031

Principal 97,105 58,255 61,105 64,100 354,910 $ 635,475

Interest 29,691 27,278 24,433 21,431 56,295 $ 159,128

Total 126,796 85,533 85,538 85,531 411,205 794,603

The City has made no investment in this joint venture. The City's only financial involvement with the agency relates to the power sales agreement for power purchases. The City’s purchases of power for the fiscal year ended June 30, 2023 totaled $79,988,439. Complete financial statements for the Power Agency can be obtained from the Agency's administrative offices at P.O. Box 29513, Raleigh, NC 27626-0513. B. The Piedmont Triad Regional Water Authority (Water Authority) is a consortium formed by the City, the City 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), and Randleman (1) for a total of 10 members. The dam is a joint venture for the purchase of land, construction of a dam, and a wastewater bypass. The Randleman Dam was completed in January 2003 and the impoundment of water is complete. The Water Authority has also completed the construction for a water treatment plant and a raw water pump station, transmission lines, and a finished water pump station. 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 9 MGD at full operational limits. The City’s financial involvement includes membership dues for the allocated administrative costs of the Water Authority and the water purchases under a water sales agreement. The City paid $344,351 for member dues and $973,446 for water purchases during the fiscal year ended June 30, 2023. Complete financial statements for the Piedmont Triad Regional Water Authority may be obtained from Piedmont Triad Regional Water Authority, P.O. Box 1326, Randleman, NC 27317. C. The governing boards of the cities of Winston-Salem, Burlington, Greensboro, and High Point established the Piedmont Authority of Regional Transportation under the Regional Public Transportation Authority Act, 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 financial statements for the Piedmont Authority of Regional Transportation are available through the Office of the Executive Director, Piedmont Authority of Regional Transportation, 107 Arrow Rd., Greensboro, NC 27409. D. The City and the members of the City’s fire department each appoint two members to the five-member local board of trustees for the Firefighters’ Relief Fund. The State Insurance Commissioner appoints one additional member to the local board of trustees. The Firefighters’ Relief Fund is funded by a portion of the fire and lightning insurance premiums that insurers remit to the State. The State passes these moneys to the local board of the Firefighters’ Relief Fund. The funds are used to assist fire fighters in various ways. The City obtains an ongoing financial benefit from the Fund for the on-behalf of payments for salaries and fringe benefits made to members of the City’s fire department by the board of trustees. During the fiscal year ended June 30, 2023, the City had no revenues to report nor expenditures for payments made through the Firefighters’ Relief Fund. The participating governments do not have any equity interest in the joint venture, so no equity has been reflected in the financial statements at June 30, 2023. The Firefighters’ Relief Fund does not issue separate audited financial statements. Instead, the local board of trustees files an annual financial report with the State Firemen’s Association. This report can be obtained from the Association at 323 West Jones Street, Suite 401, Raleigh, North Carolina 27603. Page 83

Note 5. Jointly Governed Organizations 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 received from federal and State agencies. Each participating government appoints one member to the Council's governing board. The City paid membership fees of $48,013 to the Council during the fiscal year ended June 30, 2023. B. The City has an agreement with the Piedmont Triad Airport Authority in which it appoints one member to the board. The City has no financial obligation or investment in the operation of the Airport Authority. Complete financial statements for the Piedmont Triad Airport Authority may be obtained through the Airport Authority, 1000A Ted Johnson Parkway, Greensboro, NC 27409. C. The City created a High Point Convention and Visitors Bureau (the Bureau) to promote tourism and to solicit and encourage convention business in High Point. The City appoints one of the eleven voting members of the Bureau. Revenues from the county-wide occupancy tax pass through the City to the Bureau. The City paid $2,213,816 to the Bureau during the fiscal year ended June 30, 2023. The City has no other financial obligation or investment in the operation of the Bureau. Note 6. Related Organization The eight-member board of the City of High Point Housing Authority (Housing Authority) includes seven members appointed by the Mayor of the City of High Point and one Council member liaison. The City is accountable for the Housing Authority because it appoints the governing board; however, the City is not financially accountable for the Housing Authority. The City of High Point is also disclosed as a related organization in the notes to the financial statements for the City of High Point Housing Authority. Complete financial statements for the Housing Authority can be obtained from the Housing Authority’s offices at 500 East Russell Avenue, High Point, NC 27260. Note 7. Summary Disclosure of Significant Contingencies A. Federal and State-Assisted Programs The City has received proceeds from several federal and state grants. Periodic audits of these grants are required and certain costs may be questioned as not being appropriate expenditures under the grant agreements. Such audits could result in the refund of grant monies to the grantor agencies. B. Company Incentive Program In August 2018, the City executed a commitment agreement with a company to provide reimbursements for documented construction costs if the company meets certain documented benchmarks for jobs creation and capital investment by December 31, 2027. The maximum remaining amount of reimbursements available to the company over the term of the program (between 2024 and 2028) is $702,600. Note 8. Subsequent Events The City has evaluated subsequent events through October 31, 2023 in connection with the preparation of these financial statements, which is the date the financial statements were available to be issued.

Page 84

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.

Page 85

CITY OF HIGH POINT, NORTH CAROLINA City of High Point's Proportionate Share of Net Pension Liability (Asset) Required Supplementary Information Last Ten Fiscal Years* Local Government Employees' Retirement System 2023

2022

2021

2020

2019

2018

2017

2016

2015

2014

High Point's proportion of the net pension liability (asset) (%)

1.02808%

1.06166%

1.11741%

1.11130%

1.13143%

1.12460%

1.12823%

1.20112%

-1.16855%

1.20630%

High Point's proportion of the net pension liability (asset) ($)

$ 57,998,392

$ 16,281,575

$ 39,929,819

$ 30,348,736

$ 26,841,389

$ 17,180,773

$ 23,944,820

$ 5,390,568

$ (6,891,482)

$ 14,540,547

High Point's covered payroll

$ 83,703,466

$ 80,947,764

$ 80,218,428

$78,708,495

$ 74,196,162

$ 71,215,315

$ 71,515,004

$ 65,799,563

$ 65,267,208

$ 64,822,108

High Point's proportionate share of the net pension liability (asset) as a percentage of its covered-employee payroll

69.29%

20.11%

49.78%

38.56%

36.18%

24.13%

33.48%

8.19%

-10.56%

22.43%

Plan fiduciary net position as a percentage of the total pension liability**

84.14%

95.51%

88.61%

90.86%

92.00%

94.18%

91.47%

98.09%

102.64%

94.33%

* The amounts presented for each fiscal year were determined as of the prior fiscal year ending June 30. ** This will be the same percentage for all participant employers in the LGERS plan.

Page 87

CITY OF HIGH POINT, NORTH CAROLINA City of High Point's Contributions Required Supplementary Information Last ten Fiscal Years* Local Government Employees' Retirement System 2023

2022

2021

2020

2019

2018

2017

2016

2015

2014

Contractually required contribution

$ 11,018,844

$ 9,672,638

$ 8,637,029

$ 7,332,973

$ 6,161,088

$ 5,734,865

$ 5,346,388

$ 4,810,510

$ 4,737,246

$ 4,638,851

Contributions in relation to the contractually required contribution

11,018,844

9,672,638

8,637,029

7,332,973

6,161,088

5,734,865

5,346,388

4,810,510

4,737,246

4,638,851

Contribution deficiency (excess)

High Point's covered payroll

$ 88,965,599

$ 83,703,466

$ 80,947,764

$ 80,218,428

$ 78,708,495

12.39%

11.56%

10.67%

9.14%

7.83%

Contributions as a percentage of covered payroll

Page 88

$ 74,196,162

$ 71,215,315

$ 71,515,004

$ 65,799,563

$ 65,267,208

7.73%

7.51%

6.73%

7.20%

7.11%

CITY OF HIGH POINT, NORTH CAROLINA City of High Point's Proportionate Share of Net Pension Liability Required Supplementary Information Last Nine Fiscal Years* Firefighters' and Rescue Squad Workers' Pension

High Point's proportionate share of the net pension liability (%) High Point's proportionate share of the net pension liability ($)

2023

2022

2021

2020

0.00000%

State's proportionate share of the net pension liability (asset) associated with City of High Point

High Point's covered payroll

$ 11,817,109

Plan fiduciary net position as a percentage of the total pension liability

79,009

Total

High Point's proportionate share of the net pension liability (asset) as a percentage of its covered payroll

79,009

(127,022) $

(127,022)

$ 12,075,973

169,144 $

169,144

169,189 $

169,189

2019

2018

2017

2016

0.00000%

228,846 $

228,846

202,300 $

202,300

150,289 $

150,289

148,356 $

148,356

$ 11,768,109

$ 11,231,179

$ 10,669,996

$ 9,768,965

$ 8,975,917

$ 8,584,438

0.67%

-1.05%

1.44%

1.51%

2.14%

2.07%

1.67%

1.73%

80.10%

87.40%

92.58%

92.43%

89.69%

89.35%

84.94%

91.40%

* The amounts presented for each fiscal year were determined as of the prior fiscal year ending June 30. **All years for which information is available are presented.

Page 89

CITY OF HIGH POINT, NORTH CAROLINA Schedule of Changes in Total Pension Liability Law Enforcement Officers' Special Separation Allowance Last Seven Fiscal Years**

2023 Beginning balance Service cost Interest on the total pension liability Differences between expected and actual experience in the measurement of the total pension liability Changes of assumptions or other inputs Benefit payments

Ending balance of the total pension liability

18,516,793 534,396 369,074

2022 $

2,032,944 (2,899,947) (1,201,145) 17,352,114

2021

2020

2019

2018

2017

18,925,698 507,128 354,799

$ 13,696,771 491,165 431,725

$ 12,753,352 452,491 449,835

$ 12,538,999 487,663 384,970

$ 11,019,740 392,091 410,820

$ 11,287,501 408,588 388,598

(186,208) (1,084,624)

687,933 4,525,467 (907,363)

432,081 399,528 (790,516)

547,211 (492,676) (712,815)

762,779 707,030 (753,461)

(260,165) (804,782)

18,516,793

$ 18,925,698

$ 13,696,771

$ 12,753,352

$ 12,538,999

$ 11,019,740

The amounts presented for each fiscal year were determined as of the prior year ending December 31

**All years for which information is available are presented.

Page 90

CITY OF HIGH POINT, NORTH CAROLINA Schedule of Total Pension Liability as a Percentage of Covered-Employee Payroll Law Enforcement Officers' Special Separation Allowance Last Six Fiscal Years*

Total pension liability Covered- employee payroll Total pension liability as a percentage of covered payroll

2023 $ 17,352,114

2022 $ 18,516,793

2021 $ 18,925,698

2020 $ 13,696,771

2019 $ 12,753,352

2018 $ 12,538,999

15,520,027

15,458,402

15,307,245

15,311,976

15,033,051

13,952,615

111.80%

119.78%

123.64%

89.45%

84.84%

89.87%

Notes to the schedules: The City of High Point has no assets accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement 73 to pay related benefits.

*All years for which information is available are presented.

Page 91

CITY OF HIGH POINT, NORTH CAROLINA Schedule of Changes in Total OPEB Liability and Related Ratios Required Supplementary Information Last Six Fiscal Years*

2023 Service cost Interest Plan amendments Differences between expected and actual experience Changes of assumptions Benefit payments

Net change in Total OPEB liability

527,593 330,913 (1,798,714) 196,816 (883,728) (549,435)

2022 $

(2,176,555)

Total OPEB liability - beginning

498,974 330,098 86,222 (514,175)

2021 $

401,119

15,594,751

488,185 410,461 1,246,038 2,042,730 (462,134)

2020 $

3,725,280

15,193,632

449,311 399,780 119,746 452,788 (456,430)

2019 $

965,195

11,468,352

619,522 470,077 (4,460,117) 983,937 (623,912)

2018 $

(3,010,493)

10,503,157

668,246 402,310 153,213 (766,448) (614,336) (157,015)

13,513,650

13,670,665

Total OPEB liability - ending

13,418,196

15,594,751

15,193,632

11,468,352

10,503,157

13,513,650

Covered-employee payroll

82,859,413

78,238,647

77,248,335

73,391,487

71,003,150

Total OPEB liability as a percentage of covered-employee payroll

16.19%

19.93%

19.67%

15.63%

14.31%

Notes to Schedule

*All years for which information is available are presented. **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: Fiscal year 2023 2022 2021 2020 2019 2018

Rate 3.69% 2.16% 2.21% 3.50% 3.89% 3.56%

Page 92

19.03%

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.

Page 93

CITY OF HIGH POINT, NORTH CAROLINA General Fund Schedule of Revenue and Expenditures - Budget and Actual For the Fiscal Year Ended June 30, 2023

Budget Revenues: Taxes Property taxes Tax interest Total taxes

74,788,947 311,220 75,100,167

Variance Positive (Negative)

Actual

76,177,274 269,102 76,446,376

1,388,327 (42,118) 1,346,209

Prior Year Actual

64,312,640 425,353 64,737,993

Sales and use taxes Room occupancy tax Rental vehicle tax Total sales and use taxes

3,045,000 275,000 3,320,000

2,994,881 314,271 3,309,152

(50,119) 39,271 (10,848)

2,525,427 284,831 2,810,258

Intergovernmental revenues Sales tax Utilities sales tax Piped natural gas sales tax Telecommunications sales tax Powell bill Video programming Guilford County ABC Board revenues DOT sign, signal and misc. reimbursement Housing authority Highway maintenance Beer and wine tax Other intergovernmental revenues Total intergovernmental revenues

27,367,152 6,120,000 680,000 450,000 3,265,000 819,028 1,766,023 2,391,972 373,387 209,000 220,000 496,197 292,865 44,450,624

29,660,241 6,420,089 689,110 355,102 3,239,530 791,594 1,773,220 2,051,886 533,757 226,061 220,000 519,378 350,309 46,830,277

2,293,089 300,089 9,110 (94,898) (25,470) (27,434) 7,197 (340,086) 160,370 17,061 23,181 57,444 2,379,653

27,177,248 6,092,984 605,509 346,464 3,269,349 859,769 1,681,453 2,091,676 452,008 191,282 220,000 453,519 277,074 43,718,335

Licenses and permits Showroom license fees Business registration fees Vehicle user fees Fines and forfeitures Inspection and development fees and permits Other licenses and fees Total licenses and permits

1,700,000 85,000 2,050,000 17,500 2,086,075 100 5,938,675

1,693,678 71,566 2,034,818 25,993 2,755,692 28 6,581,775

(6,322) (13,434) (15,182) 8,493 669,617 (72) 643,100

1,702,509 69,454 1,800,841 27,164 2,723,829 50 6,323,847

Charges for services Recreation programs Sales and rentals Other charges and services Lease revenue Total charges for services

2,669,650 1,980,169 136,000 447,516 5,233,335

2,736,733 2,300,831 125,576 447,516 5,610,656

67,083 320,662 (10,424) 377,321

2,437,721 2,455,516 104,337 159,971 5,157,545

150,000 500,117 -

1,098,773 536,842 72,257 233,785

948,773 36,725 72,257 233,785

(985,506) 1,567,653 93,775 7,960

650,117

1,941,657

1,291,540

683,882

134,692,918

140,719,893

6,026,975

123,431,860

Interest income and miscellaneous revenues Interest income (loss) Miscellaneous Sale of capital assets Interest on lease receivable Total interest income and miscellaneous revenues Total revenues

(Continued)

Page 94

CITY OF HIGH POINT, NORTH CAROLINA (Continued) General Fund Schedule of Revenue and Expenditures - Budget and Actual For the Fiscal Year Ended June 30, 2023

Budget Expenditures: General government Governing body Administration and general Human resources Financial services Engineering services Communications Information services Public services administration Contingency Total general government

355,421 7,133,877 887,750 858,476 1,974,163 3,062,011 6,296,004 188,411 400,000 21,156,113

Variance Positive (Negative)

Actual

219,620 6,776,973 999,378 741,600 1,667,174 2,771,231 4,596,481 161,369 17,933,826

135,801 356,904 (111,628) 116,876 306,989 290,780 1,699,523 27,042 400,000 3,222,287

Prior Year Actual

263,463 5,713,646 735,999 1,390,266 1,759,918 2,602,959 2,632,827 148,098 15,247,176

Public safety Police Fire Total public safety

28,721,351 19,867,688 48,589,039

28,400,028 20,394,723 48,794,751

321,323 (527,035) (205,712)

26,552,487 23,448,082 50,000,569

Transportation Administration Signs and signals Streets maintenance Total transportation

1,293,402 2,315,264 11,663,572 15,272,238

1,025,171 2,130,967 7,429,607 10,585,745

268,231 184,297 4,233,965 4,686,493

925,526 2,092,950 5,776,449 8,794,925

Environmental services Cemeteries Total environmental services

343,540 343,540

327,328 327,328

16,212 16,212

294,281 294,281

Total public services

15,615,778

10,913,073

4,702,705

9,089,206

Community and economic development Planning Housing Building inspections Furniture market authority Economic development Total community and economic development

1,417,029 2,235,320 2,430,564 3,245,000 1,333,232 10,661,145

1,372,224 1,687,483 2,332,740 3,224,693 1,270,009 9,887,149

44,805 547,837 97,824 20,307 63,223 773,996

1,184,310 1,574,183 2,099,996 3,174,556 554,134 8,587,179

Cultural and recreation and special appropriations Parks and recreation Library Museum Theatre Special appropriations - agencies Total cultural and recreation and spec appropriations

15,869,289 5,710,669 822,550 1,581,989 2,250,000 26,234,497

15,040,486 5,506,631 724,749 1,306,279 2,213,816 24,791,961

828,803 204,038 97,801 275,710 36,184 1,442,536

14,408,903 5,210,697 704,040 1,178,460 1,803,380 23,305,480

(600,000) (600,000)

Total expenditures

121,656,572

112,320,760

9,335,812

106,229,610

Excess (deficiency) of revenues over (under) expenditures

13,036,346

28,399,133

15,362,787

17,202,250

Other Appropriated expenditure reductions Total other

(Continued)

Page 95

CITY OF HIGH POINT, NORTH CAROLINA (Concluded) General Fund Schedule of Revenue and Expenditures - Budget and Actual For the Fiscal Year Ended June 30, 2023

Budget Other financing sources (uses): Lease liabilities issued IT subscription agreement Transfers from (to) other funds: General Debt Service Fund Special Grants Fund Community Development Fund General Capital Projects Fund General Bond Projects Fund Central Services Fund Water/Sewer Fund Electric Fund Mass Transit Fund Mass Transit Capital Projects Ordinance Fund Parking Facilities Fund Storm Water Fund LEO Pension Trust Fund Transfers in related to payment in lieu of taxes Fund balance appropriated Total other financing sources (uses) Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses balance Net change in fund

Actual

309,209 3,527,791

309,208 2,724,689

(6,474,442) (873,600) (187,000) (14,992,016) (312,620) (205,000) 50,000 1,110,000 (1,735,262) (196,875) (251,926) (990,000) (50,000) 1,006,151 7,229,244 (13,036,346)

(6,474,442) (802,939) (187,000) (14,992,016) (312,620) (205,000) 50,000 1,110,000 (1,735,262) (196,875) (251,926) (990,000) 1,006,151 (20,948,032)

7,451,101

Variance Positive (Negative)

Fund balance, beginning

(1) (803,102)

Prior Year Actual

$ $

70,661 50,000 (7,229,244) (7,911,686)

(5,547,550) (260,176) (120,000) (8,466,351) (394,840) 50,000 1,110,000 (618,367) (161,875) (320,000) 989,849 (12,600,056)

7,451,101

4,602,194

38,693,504

Fund balance, end of year

Page 96

46,144,605

1,139,254 -

34,091,310 $

38,693,504

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.

Page 97

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, 2023

Project Authorization Revenues: Restricted intergovernmental............................................. Interest (losses) on investments......................................... Miscellaneous.................................................................... Administrative reimbursements......................................... Sale of capital assets.......................................................... Total revenues................................................................

$ 1,572,767 162,392 134,527 360,000 2,155,384 4,385,070

Expenditures: General government........................................................... Public safety....................................................................... Public services - transportation.......................................... Planning and community development.............................. Cultural and recreation....................................................... Interest expense.................................................................. Total expenditures..........................................................

13,995,704 31,287,776 37,507,102 22,917,426 68,341,165 174,049,173

1,006,187 26,615,586 4,132,203 569,731 39,771,909 43,323 72,138,939

658,329 369,401 3,192,422 5,627,241 7,121,268 43,323 17,011,984

1,664,516 26,984,987 7,324,625 6,196,972 46,893,177 86,646 89,150,923

Other financing sources (uses): General obligation bonds................................................... Premium - general obligation bonds.................................. Limited obligation bond issuance...................................... Issuance of installment purchases...................................... Transfer from General Fund.............................................. Transfer from General Debt Service Fund........................ Transfer from Special Grants Fund................................... Transfer from ARPA Grants Fund..................................... Transfer from Internal Service Fund................................. Transfer from Water & Sewer Fund.................................. Transfer from Water & Sewer Capital Projects Fund........ Transfer from Electric Fund.............................................. Transfer from Solid Waste Fund........................................ Transfer from Storm Water Fund....................................... Transfer from Storm Water Capital Projects Fund............ Transfer from Landfill Development Fund........................ Transfer to Special Grants Fund........................................ Total other financing sources (uses)

68,887,021 1,514,919 35,485,147 500,000 35,880,687 671,820 21,327 105,673 1,000,000 475,000 47,850 6,600,000 5,105,000 45,000 85,470 8,352,748 (248,320) 164,529,342

41,690,792 2,123,190 18,175,000 20,621,986 671,820 100,000 47,850 4,100,000 85,470 (248,320) 87,367,788

15,304,636 21,326 105,673 375,000 600,000 105,000 45,000 16,556,635

41,690,792 2,123,190 18,175,000 35,926,622 671,820 21,326 105,673 475,000 47,850 4,700,000 105,000 45,000 85,470 (248,320) 103,924,423

$ 19,613,919

2,100,160

700,000 1,499 1,854,010 2,555,509

Total To Date

3,625,048 3,834,398 180,000 1,880,385 9,519,831

Excess of revenues and financing sources over (under) expenditures..................................................

Actual Current Year

Prior Year

Fund balance, beginning

19,613,919

Fund balance, end of year

$ 21,714,079

Page 99

2,272,767 163,891 1,988,537 360,000 2,155,384 6,940,579

21,714,079

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.

Page 101

CITY OF HIGH POINT, NORTH CAROLINA Combining Balance Sheet Non-major Governmental Funds June 30, 2023

Special Revenue ASSETS Cash and investments........................................................................................ Receivables: Accounts and grants...................................................................................... Notes and loans, net of allowance................................................................. Accrued interest............................................................................................. Property held for sale........................................................................................ Lease receivable................................................................................................ Prepaid items..................................................................................................... Restricted Assets: Cash and investments.................................................................................... TOTAL ASSETS LIABILITIES Accounts payable and accrued expenses.......................................................... Liabilities payable from restricted assets: Accounts payable and accrued expenses....................................................... Unearned revenue.......................................................................................... TOTAL LIABILITIES

1,810,155 5,349,130 1,770,079 55,882

11,286,608

110,782 49,383 ` 1,920,076 -

11,286,608 1,920,937 5,349,130 49,383 1,770,079 1,920,076 55,882

3,710,925 12,696,171

72,502 13,439,351

3,783,427 26,135,522

191,918

191,939

DEFERRED INFLOWS OF RESOURCES Unavailable receivables................................................................................. Leases............................................................................................................ TOTAL DEFERRED INFLOWS OF RESOURCES Fund balances: Nonspendable: Prepaid items.............................................................................................. Restricted: Subsequent year's expenditures.................................................................. Stabilization by state statute....................................................................... Community and economic development.................................................... Grant programs........................................................................................... Debt service................................................................................................ TOTAL FUND BALANCES

TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES

Total Non-major Governmental Funds

General Debt Service

Page 103

959,008 411,331 1,562,257

959,008 411,331 1,562,278

81,145 81,145

280,000 1,852,851 2,132,851

361,145 1,852,851 2,213,996

55,882

3,095,539 2,074,507 5,826,841 11,052,769

206,921 232,390 10,867,168 11,306,479

206,921 3,327,929 2,074,507 5,826,841 10,867,168 22,359,248

12,696,171

13,439,351

26,135,522

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, 2023

General Debt Service

Special Revenue Revenues: Property taxes........................................................................... Restricted intergovernmental.................................................... Lease revenue............................................................................ Interest (losses) on investments................................................. Miscellaneous........................................................................... Interest on lease receivable....................................................... Sale of capital assets................................................................. Total revenues....................................................................

Expenditures: General government.................................................................. Public safety.............................................................................. Public services - transportation................................................. Public services - environmental services................................... Community and economic development................................... Cultural and recreation.............................................................. Debt service: Principal retirement................................................................ Interest and fiscal charges...................................................... Total expenditures..............................................................

6,235,607 37,851 201,015 22,000 6,496,473

Total Non-major Governmental Funds

4,416,581 411,745 837,825 500,000 28,237 6,194,388

4,416,581 6,235,607 411,745 875,676 701,015 28,237 22,000 12,690,861

788,539 1,964,785 12,600 2,180,260 792,823

8,358 -

8,358 788,539 1,964,785 12,600 2,180,260 792,823

219,255 130,414 6,088,676

9,011,002 3,572,811 12,592,171

9,230,257 3,703,225 18,680,847

Excess (deficiency) of revenues over (under) expenditures

407,797

(6,397,783)

(5,989,986)

Other financing sources (uses): IT subscription agreement......................................................... Transfers in .............................................................................. Transfers out............................................................................. Total other financing sources (uses)...................................

989,939 (21,326) 968,613

8,358 6,474,442 6,482,800

8,358 7,464,381 (21,326) 7,451,413

Net change in fund balances.........................................................

1,376,410

85,017

1,461,427

Fund balances, beginning............................................................. Fund balances, ending..................................................................

7,590,815 8,967,225

11,221,462 11,306,479

18,812,277 20,273,704

The legally separate blended component units are consolidated into the Community Development fund for reporting purposes: Donations Miscellaneous and other revenues Expenditures for economic development Beginning fund balance of component units Fund balance, end of year, component units

290,031 235,078 (476,494) 2,036,929 2,085,544

Fund balance, end of year

11,052,769

11,306,479

22,359,248

Page 104

CITY OF HIGH POINT, NORTH CAROLINA

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 two 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.

Page 105

CITY OF HIGH POINT, NORTH CAROLINA Combining Balance Sheet All Special Revenue Funds June 30, 2023 Special Grants Assets: Restricted cash and investments....................................... $

Community Development

3,238,470

Opiod Settlement

297,963

Total

174,492

3,710,925

Receivables: Accounts and grants......................................................

1,119,753

690,402

1,810,155

Notes and loans, net of allowance................................

5,349,130

Property held for sale.......................................................

1,770,079

Prepaid items....................................................................

44,845

11,037

55,882

Total Assets

4,403,068

8,118,611

174,492

12,696,171

Liabilities: Accounts payable and accrued expenses......................

191,918

Accounts payable and accrued expenses......................

959,008

Unearned Revenue........................................................

167,479

69,360

174,492

411,331

1,126,487

261,278

174,492

1,562,257

Deferred inflows of resources: Unavailable grants receivables..................................... Total Deferred Inflows of Resources

74,266 74,266

6,879 6,879

81,145 81,145

Fund balances (deficits): Non Spendable: Prepaid items...............................................................

44,845

11,037

55,882

Stabilization by state statute....................................... Community and economic development....................

1,151,409 -

1,944,130 2,074,507

3,095,539 2,074,507

Grant programs...........................................................

2,006,061

3,820,780

5,826,841

Total Fund Balances

3,202,315

7,850,454

11,052,769

Liabilities payable from restricted assets:

Total Liabilities

Restricted:

Total Liabilities, Deferred Inflows of Resources, and Fund Balances

4,403,068

Page 107

8,118,611

174,492

12,696,171

Combining Statement of Revenues, Expenditures, and Changes in Fund Balances All Special Revenue Funds For the Fiscal Year Ended June 30, 2023

Special Grants Revenues: Restricted intergovernmental...................................................... $ Interest (losses) on investments.................................................. Miscellaneous............................................................................. Sale of capital assets................................................................... Total revenues......................................................................... Expenditures: Public safety................................................................................ Public services............................................................................ Public services-transportation..................................................... Planning and community development....................................... Cultural and recreation................................................................ Debt Service:............................................................................... Principal retirement.................................................................. Interest and fiscal charges........................................................ Total expenditures...................................................................

4,097,815 36,982 22,000 4,156,797

Community Development $

2,137,792 869 201,015 2,339,676

Opiod Settlement $

Total -

6,235,607 37,851 201,015 22,000 6,496,473

788,539 12,600 1,964,785 9,152 792,823

2,171,108 -

788,539 12,600 1,964,785 2,180,260 792,823

87,255 1,064 3,656,218

132,000 129,350 2,432,458

219,255 130,414 6,088,676

Excess (deficiency) of revenues over (under) expenditures

500,579

(92,782)

407,797

Other financing sources (uses): Transfers in ................................................................................ Transfers out............................................................................... Total other financing sources (uses).......................................

802,939 (21,326) 781,613

187,000 187,000

989,939 (21,326) 968,613

Net change in fund balances.......................................................

1,282,192

94,218

1,376,410

Fund balances, beginning...............................................................

1,920,123

5,670,692

7,590,815

Fund balances, ending.................................................................... $

3,202,315

5,764,910

8,967,225

3,202,315

290,031 235,078 (476,494) 2,036,929 2,085,544 7,850,454

290,031 235,078 (476,494) 2,036,929 2,085,544 11,052,769

$ $

Page 108

$ $

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, 2023

Budget Revenues: Restricted intergovernmental: Federal grants.............................................................................. State grants.................................................................................. State 911...................................................................................... State Aid Library......................................................................... Contributions from other agencies.............................................. Interest (losses) on investments.................................................... Interest (losses) on investments - State 911.................................. Sale of capital assets...................................................................... Total revenues............................................................................

Actual

$ 24,176,873 2,687,878 661,446 88,512 162,770 33,824 3,979 32,900 27,848,182

Expenditures: Public safety - State 911................................................................ Public safety.................................................................................. Public services............................................................................... Public services-transportation....................................................... Planning and community development......................................... Cultural and recreation.................................................................. Debt service:.................................................................................. Principal retirement....................................................................

Variance Positive (Negative)

1,006,605 2,303,045 661,446 88,512 38,207 33,003 3,979 22,000 4,156,797

(23,170,268) (384,833) (124,563) (821) (10,900) (23,691,385)

Prior Year Actual

978,498 2,762,682 557,478 88,585 37,580 (959) 44 30,453 4,454,361

984,556 4,455,114 15,800 23,621,003 34,247 1,177,073

203,930 584,609 12,600 1,964,785 9,152 792,823

780,626 3,870,505 3,200 21,656,218 25,095 384,250

572,136 429,676 770 1,955,345 1,009,247 113,323

84,291 1,064 30,373,148

87,255 1,064 3,656,218

(2,964) 26,716,930

109,095 1,109 4,190,701

Excess (deficiency) of revenues over (under) expenditures

(2,524,966)

500,579

3,025,545

263,660

Other financing sources (uses): Transfer from General Fund......................................................... Transfer from Landfill................................................................... Transfer to General Capital Project Fund..................................... Appropriated fund balance............................................................ Total other financing sources (uses).........................................

708,320 (21,327) 1,837,973 2,524,966

802,939 (21,326) 781,613

94,619 1 (1,837,973) (1,743,353)

260,176 (204) 259,972

1,282,192

523,632

Interest and fiscal charges.................................................... Total expenditures.....................................................................

Net change in fund balance

Fund balance, beginning...................................................................

1,920,123

Fund balance, ending........................................................................

Page 109

3,202,315

1,396,491 $

1,920,123

CITY OF HIGH POINT, NORTH CAROLINA

Community Development Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 2023

Budget Revenues: Restricted intergovernmental: Federal grants.................................................................................................... State grants........................................................................................................ Interest (losses) on investments............................................................................ Miscellaneous...................................................................................................... Total revenues..................................................................................................

Variance Positive (Negative)

Actual

4,807,025 354,837 870 571,130 5,733,862

1,998,590 139,202 869 174,544 2,313,205

(2,808,435) (215,635) (1) (396,586) (3,420,657)

Prior Year Actual

1,317,868 145,126 248 115,333 1,578,575

Expenditures: Community development block grant................................................................... Home program..................................................................................................... Lead based paint.................................................................................................. Neighborhood stabilization program.................................................................... NCHFA construction training program................................................................ NCHFA urgent repair program............................................................................ Section 108 loan guarantee program-debt principal….......................................... Section 108 loan guarantee program-interest charges…....................................... Total planning and community development expenditures...............................

2,625,871 2,715,646 2,325 4,957 263,911 171,796 132,000 129,350 6,045,856

919,500 1,027,272 113,040 111,296 132,000 129,350 2,432,458

1,706,371 1,688,374 2,325 4,957 150,871 60,500 3,613,398

939,265 262,663 89,279 126,830 140,000 114,249 1,672,286

Excess (deficiency) of revenues over (under) expenditures

(311,994)

(119,253)

192,741

(93,711)

Other financing sources (uses): Transfer from General Fund................................................................................. Appropriated fund balance................................................................................... Total other financing sources (uses).................................................................

187,000 124,994 311,994

187,000 187,000

(124,994) (124,994)

120,000 120,000

67,747

26,289

Net change in fund balance, budgetary basis........................................................

Reconciliation from budgetary basis to accrual: Loans allowance recovery.................................................................................... Principal payments received on loans receivable.................................................. Payments for new loans receivable.......................................................................

47,953 (21,482) -

10,777 (107,846) 58,857

Net change in fund balance, accrual basis............................................................

94,218

(11,923)

Fund balances, beginning........................................................................................

5,670,692

5,682,615

Fund balances, ending.............................................................................................

5,764,910

5,670,692

The legally separate blended component units are consolidated into the Community Development fund for reporting purposes: Donations Miscellaneous and other revenues Issuance of loan payable Expenditures for economic development Beginning fund balance of component units Fund balance, end of year, component units

290,031 235,078 (476,494) 2,036,929 2,085,544

Fund Balance, end of year

Page 110

7,850,454

315,506 244,900 1,000 (493,477) 1,969,000 2,036,929 $

7,707,621

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, 2023

Budget Revenues: Restricted intergovernmental: Opioid Settlement Funds............................................................... Total revenues............................................................................

Expenditures: General government...................................................................... Total expenditures.....................................................................

Actual

51,076 51,076

Prior Year Actual

(51,076) (51,076)

51,076 51,076

Excess (deficiency) of revenues over (under) expenditures

Net change in fund balance

Variance Positive (Negative)

Fund balance, beginning...................................................................

Fund balance, ending........................................................................

Page 111

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.

Page 113

CITY OF HIGH POINT, NORTH CAROLINA

General Debt Service Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual For the Fiscal Year Ended June 30, 2023

Budget Revenues: Property taxes.............................................................. Lease revenue.............................................................. Interest (losses) on investments................................................ Miscellaneous.............................................................. Interest on lease receivable.......................................... Total Revenues..........................................................

Variance Positive (Negative)

Actual

4,326,750 400,000 100,000 500,000 5,326,750

4,416,581 411,745 837,825 500,000 28,237 6,194,388

Prior Year Actual

89,831 11,745 737,825 28,237 867,638

3,522,292 411,746 (346,593) 500,000 33,246 4,120,691

Expenditures: General government..................................................... Debt service: Principal payments....................................................................... Interest......................................................................... Fiscal charges.............................................................. Total Expenditures.....................................................

8,300

8,358

(58)

8,953,619 3,656,593 159,033 12,777,545

9,011,002 3,562,285 10,526 12,592,171

(57,383) 94,308 148,507 185,374

7,421,935 2,820,372 591,185 10,833,492

Excess (deficiency) of revenues over (under) expenditures

(7,450,795)

(6,397,783)

1,053,012

(6,712,801)

Other financing sources (uses): Proceeds from general obligation refunding bonds..... Payment to trustee for refunded bonds........................ Bond issuance premium.............................................. IT subscription agreement................................................ Transfer from General Fund....................................... Appropriated fund balance......................................... Total other financing sources (uses)........................

8,300 6,474,442 968,053 7,450,795

8,358 6,474,442 6,482,800

58 (968,053) (967,995)

4,598,550 (4,563,277) 575,072 5,547,550 6,157,895

85,017

(554,906)

Net change in fund balance........................................

Fund balance, beginning............................................

11,221,462

11,776,368

Fund balance, ending.................................................

$ 11,306,479

$ 11,221,462

Page 114

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.

Page 115

CITY OF HIGH POINT, NORTH CAROLINA Combining Statement of Net Position All Nonmajor Enterprise Funds June 30, 2023

ASSETS Current assets: Cash and investments......................................... Receivables: Accounts and grants (net).............................. Accrued interest............................................. Due from other funds..................................... Inventory............................................................. Prepaid expenses................................................ Total current assets........................................

Parking Facilities

Mass Transit $

848,581

Solid Waste $

9,250,070

Storm Water $

Total

9,889,430

$ 19,988,081

708,766 175,374 138,607 1,022,747

649 2,397 851,627

1,193,515 72,916 13,352,748 23,869,249

328,927 27,720 10,246,077

2,231,857 103,033 13,352,748 175,374 138,607 35,989,700

52,691

6,650

16,764,113

1,145,238

17,968,692

42,662 581,396 3,290,150 9,295,179 157,863 34,037 (7,450,915)

605 898,720 9,050,161 9,275 (8,453,259)

191,893 1,906,591 28,307,784 4,596,234 2,319,625 (24,683,858)

728 965,787 141,597 21,916,381 1,939,995 (6,754,522)

235,888 4,352,494 40,648,095 14,042,285 22,074,244 34,037 4,259,620 (47,342,554)

5,950,372 7,025,810

1,505,502 2,363,779

12,638,269 53,271,631

18,209,966 29,601,281

38,304,109 92,262,501

DEFERRED OUTFLOWS OF RESOURCES Deferred outflows of resources.......................... TOTAL DEFERRED OUTFLOWS OF RESOURCES

984,969 984,969

74,829 74,829

2,031,655 2,031,655

508,789 508,789

3,600,242 3,600,242

LIABILITIES Liabilities: Current liabilities: Accounts payable and accrued expenses............ Contracts Payable............................................... Current maturities of long-term debt.................. Current maturities of lease liability.................... Current maturities of SBITA liability................. Current maturities of compensated absences..... Accrued interest payable.................................... Deposits.............................................................. Due to other funds.............................................. Total current liabilities

165,919 1,346 23,212 73,150 2,065 265,692

11,715 609 2,418 6,650 21,392

890,042 46,217 35,446 30,425 226,044 1,228,174

87,155 876,797 732 53,051 31,702 1,049,437

1,154,831 46,217 876,797 38,133 53,637 354,663 31,702 6,650 2,065 2,564,695

Long-term liabilities: Accrued closure/post closure costs..................... Net pension liability........................................... Other post employment benefits accrual............ General obligation bonds payable...................... Lease liability..................................................... Subcription (SBITA) liability............................. Compensated absences....................................... Total long-term liabilities....................................

1,299,164 450,851 4,416 9,542 42,125 1,806,098

104,397 20,127 124,524

15,726,162 2,691,125 901,703 34,521 31,233 108,315 19,493,059

684,381 199,931 3,689,192 9,091 4,582,595

15,726,162 4,779,067 1,572,612 3,689,192 38,937 40,775 159,531 26,006,276

Total liabilities...........................................

2,071,790

145,916

20,721,233

5,632,032

28,570,971

DEFERRED INFLOWS OF RESOURCES Deferred inflows of resources............................ TOTAL DEFERRED INFLOWS OF RESOURCES

112,572 112,572

5,585 5,585

226,260 226,260

2,691,337 2,691,337

3,035,754 3,035,754

NET POSITION Net investment in capital assets.......................... Restricted ........................................................... Unrestricted........................................................

5,911,856 1,095,523 (1,180,962)

1,504,893 782,214

12,506,644 14,002,069 7,847,080

13,402,493 1,144,399 7,239,809

33,325,886 16,241,991 14,688,141

Total Net Position......................................

$ 5,826,417

21,786,701

$ 64,256,018

Noncurrent assets: Restricted assets: Cash and investments..................................... Capital assets: Right to use assets, net of amortization......... Land............................................................... Buildings and other improvements................ Machinery and equipment.............................. Infrastructure.................................................. Intangibles...................................................... Construction in progress................................ Accumulated depreciation.............................. Total capital assets (net of accumulated depreciation/amortization) Total assets................................................

Page 117

2,287,107

34,355,793

CITY OF HIGH POINT, NORTH CAROLINA

Combining Statement of Revenues, Expenses, and Changes in Net Position All Non-major Enterprise Funds For the Fiscal Year Ended June 30, 2023

Mass Transit

OPERATING REVENUES: Charges for services............................................................... Licenses and permits.............................................................. Total operating revenues....................................................

309,907 407,907 717,814

Parking Facilities $

308,684 308,684

Solid Waste $

14,865,334 14,865,334

Storm Water $

5,298,957 5,298,957

Total Non-major Enterprise Funds $

20,782,882 407,907 21,190,789

OPERATING EXPENSES: Management and administration............................................ Depreciation and amortization............................................... Total operating expenses....................................................

4,637,608 1,091,187 5,728,795

406,643 46,280 452,923

15,587,554 1,022,710 16,610,264

3,597,570 706,853 4,304,423

24,229,375 2,867,030 27,096,405

Operating income (loss).........................................................

(5,010,981)

(144,239)

(1,744,930)

994,534

(5,905,616)

Nonoperating revenues (expenses): Interest (losses) on investments.............................................. Intergovernmental.................................................................. Miscellaneous and other nonoperating................................... Interest expense and fiscal charges......................................... Gain (loss) on disposal of property........................................ Total nonoperating revenues (expenses)............................

5,137 652,587 53,695 (955) 710,464

11,350 (300) (8) 11,042

448,824 92,381 4,713 (24) (34,390) 511,504

171,078 35,000 (114,520) (5,994) 85,564

636,389 744,968 93,108 (115,507) (40,384) 1,318,574

Income (loss) before capital contributions and transfers........

(4,300,517)

(133,197)

(1,233,426)

1,080,098

(4,587,042)

Other financing sources (uses): Transfers in............................................................................ Transfers out.......................................................................... Total other financing sources (uses)...................................

1,932,137 1,932,137

251,926 251,926

(893,000) (893,000)

1,190,000 (70,000) 1,120,000

3,374,063 (963,000) 2,411,063

Change in net position...............................................................

(2,368,380)

118,729

(2,126,426)

2,200,098

(2,175,979)

Net position, beginning of the year............................................

8,194,797

2,168,378

$36,482,219

19,586,603

66,431,997

Net position, end of the year......................................................

5,826,417

Page 118

2,287,107

34,355,793

21,786,701

64,256,018

City of High Point, North Carolina Combining Statement of Cash Flows All Non-major Enterprise Funds For the Fiscal Year Ended June 30, 2023

Business-Type - Enterprise Funds Parking Facilities Solid Waste Storm Water

Mass Transit Cash Flows From Operating Activities Receipts from customers and users.............................................................. Payments to employees and related fringe benefits....................................... Payments to suppliers and operating costs.................................................... Net cash change in operating activities

1,510,114 (2,929,691) (1,815,646) (3,235,223)

309,799 (212,876) (179,173) (82,250)

Cash Flows From Non-Capital Financing Activities Transfers in.................................................................................................. Transfers out................................................................................................ Advances from/(to) other funds................................................................... Intergovernmental........................................................................................ Miscellaneous and other nonoperating......................................................... Net cash change in non-capital financing activities

1,932,137 2,065 652,587 53,695 2,640,484

251,926 -

Cash Flows From Financing Activities Principal payments on long-term debt.......................................................... Interest payments on long-term debt............................................................ Principal payments on leases........................................................................ Principal payments on SBITA...................................................................... Acquisition and construction of capital assets.............................................. Net cash change in financing activities Cash Flows From Investing Activities Interest earned (unrealized loss) on investments........................................... Net cash change in investing activities

14,908,609 (6,586,154) (7,100,132) 1,222,323

Total

5,293,639 (1,600,345) (2,059,391) 1,633,903

22,022,161 (11,329,066) (11,154,342) (461,247)

(300) 251,626

(893,000) (8,352,748) 92,381 4,713 (9,148,654)

1,840,000 (720,000) 35,000 1,155,000

4,024,063 (1,613,000) (8,350,683) 744,968 93,108 (5,101,544)

(955) (1,287) (22,122) (2,000) (26,364)

(8) (806) (16,899) (17,713)

(24) (37,847) (32,063) (2,487,242) (2,557,176)

(1,000,579) (168,175) (969) (1,555,757) (2,725,480)

(1,000,579) (169,162) (40,909) (54,185) (4,061,898) (5,326,733)

5,567 5,567

9,438 9,438

401,140 401,140

150,281 150,281

566,426 566,426

Net increase (decrease) in cash and investments

(615,536)

161,101

(10,082,367)

213,704

(10,323,098)

Cash and investments, beginning of the year

668,227

694,130

36,096,550

10,820,964

48,279,871

Cash and investments, end of the year Reconciliation of operating income (loss) to net cash change operating activities: Operating income (loss)............................................................................... Adjustments to Reconcile Operating Income (Loss) to ................................ Net Cash Change Operating Activities:.................................................... Depreciation and Amortization............................................................ Change in Assets and Liabilities: (Increase) Decrease in Accounts Receivables.................................. (Increase) Decrease in Inventories................................................... (Increase) Decrease in Prepaid Expenses........................................ (Increase) Decrease in Deferred Outflows of Resources-Pensions... (Increase) Decrease in Deferred Outflows of Resources-OPEB....... Increase (Decrease) in Payables and Accrued Expenses.................. Increase (Decrease) in Deposits...................................................... Increase (Decrease) in Stipends Liability......................................... Increase (Decrease) in Vacation Leave Accrual.............................. Increase (Decrease) in Net Pension Liability................................... Increase (Decrease) in OPEB Liability............................................ Increase (Decrease) in Deferred Inflows of Resources-Pensions...... Increase (Decrease) in Deferred Inflows of Resources-OPEB......... Increase (Decrease) in Unearned Revenue...................................... Total adjustments....................................................................... Net cash change in operating activities.............................................................

52,691

855,231

26,014,183

11,034,668

37,956,773

(5,010,981)

(144,239)

(1,744,930)

994,534

(5,905,616)

1,091,187

46,280

1,022,710

706,853

2,867,030

792,298 (32,122) 37,546 (233,733) 9,786 (184,449) (6,600) 17,802 893,753 (45,061) (575,181) 10,530 2 1,775,758 (3,235,223)

75 (31,461) (34,334) 1,876 1,040 783 79,975 (3,265) 768 252 61,989 (82,250)

43,275 (635,497) 43,828 1,759,365 (13,613) 25,177 1,948,685 (182,132) (1,049,582) 5,037 2,967,253 1,222,323

(5,318) (161,526) 16,255 (76,965) (63) 495,515 (65,180) (267,001) (3,201) 639,369 1,633,903

830,330 (32,122) 37,546 (1,062,217) 35,535 1,499,827 1,040 (20,213) 43,699 3,417,928 (295,638) (1,890,996) 12,618 2 5,444,369 (461,247)

54,876

197,306

252,182

NONCASH FINANCING ACTIVITIES Issuance of leases/SBITAs...........................................................................

Page 119

CITY OF HIGH POINT, NORTH CAROLINA Water and Sewer Fund Schedule of Revenues, Expenditures, and Changes in Net Position Budget and Actual (Non-GAAP) For the Fiscal Year Ended June 30, 2023

Budget Operating revenues: Charges for services......................................................................... System development fees, capital reserve....................................... Miscellaneous.................................................................................. Total operating revenues.............................................................

Variance Positive (Negative)

Actual

59,734,736 1,050,000 1,322,500 62,107,236

61,780,227 144,948 808,994 62,734,169

2,045,491 (905,052) (513,506) 626,933

Prior Year Actual $

56,784,836 15,793 1,353,512 58,154,141

Operating expenditures: Management and administration..................................................... System maintenance and distribution.............................................. Treatment plants.............................................................................. Other services and charges.............................................................. Total operating expenditures......................................................

10,184,282 10,699,240 13,773,714 3,190,929 37,848,165

8,919,378 10,665,458 13,346,689 3,084,026 36,015,551

1,264,904 33,782 427,025 106,903 1,832,614

7,779,352 9,071,052 12,497,732 2,821,874 32,170,010

Operating income

24,259,071

26,718,618

2,459,547

25,984,131

Non-operating revenues (expenditures): Interest (losses) on investments....................................................... Other intergovernmental reimbursements....................................... Miscellaneous and other non-operating........................................... Interest on lease receivable.............................................................. Proceeds from disposal of capital assets......................................... Interest expense and fiscal charges.................................................. Payment of debt principal................................................................ Total non-operating revenues (expenditures).............................

500,000 2,000 (6,760,638) (8,445,314) (14,703,952)

1,861,034 16,004 753 12,000 (6,543,836) (8,471,896) (13,125,941)

1,361,034 14,004 753 12,000 216,802 (26,582) 1,578,011

(1,237,878) 12,217 72 876 (6,481,746) (9,348,234) (17,054,693)

9,555,119

13,592,677

4,037,558

8,929,438

20,386,000 (20,386,000) 27,600 (50,000) (375,000) (100,000) (54,000) (10,343,350) 1,339,631 (9,555,119)

20,386,000 (20,386,000) 16,713 (50,000) (375,000) (100,000) (54,000) (10,343,350) (10,905,637)

(10,887) (1,339,631) (1,350,518)

1,624,747 50,928,000 480,726 (52,428,866) 18,275 (50,000) (8,605,000) (8,032,118)

2,687,040

897,320

Income before other financing sources (uses) Other financing sources (uses): Proceeds from general obligation refunding bonds......................... Proceeds from revenue refunding bonds......................................... Premium - refunding bonds............................................................. Payment to trustee for refunded bonds............................................ Lease liabilities issued..................................................................... IT subscription agreement............................................................... Transfer to General Fund................................................................. Transfer to General Capital Projects Fund...................................... Transfer To Storm Water Capital Projects Fund............................. Transfer To Central Services Fund.................................................. Transfer to Water & Sewer Capital Projects Fund.......................... Appropriated net position................................................................ Total other financing sources (uses)........................................... Change in net position - budgetary basis....................................

Reconciliation from budgetary basis (modified accrual) to full accrual:

Reconciling items: Water & Sewer Capital Project Ordinance Fund............................ Right to use asset additions............................................................. Capital additions.............................................................................. Amortization of gain on refunding.................................................. General obligation refunding bonds proceeds................................. Revenue bond proceeds................................................................... Bond principal payments................................................................. Lease liabilities issued..................................................................... Lease principal payments................................................................ IT subscription agreement............................................................... IT subscription principal payments................................................. Capital contributions....................................................................... Depreciation expense...................................................................... Amortization expense, right to use assets........................................ Compensated absences expense...................................................... Stipend expense............................................................................... Increase (decrease) in deferred outflow of resources-pensions....... (Increase) decrease in net pension liability..................................... (Increase) decrease in deferred inflow of resources-pensions......... Increase (decrease) in deferred outflow of resources-OPEB.......... (Increase) decrease in total OPEB liability..................................... (Increase) decrease in deferred inflow of resources-OPEB............ Change in net position - full accrual basis...........................................

Page 120

(14,999,777) 16,713 25,640,073 779,361 (20,386,000) 28,843,105 6,641 (16,713) 8,150 639,792 (15,157,479) (13,331) (34,508) 5,362 1,311,973 (3,741,196) 1,865,723 (34,538) 155,896 (30,448) 7,545,839

27,962,733 18,275 17,600,736 908,489 (1,624,747) (88,653,417) 61,675,511 (18,275) 6,622 431,497 (14,941,506) (6,645) (14,082) 14,025 234,828 1,888,293 (1,926,785) (4,623) (184,692) 29,344 4,292,901

CITY OF HIGH POINT, NORTH CAROLINA Water & Sewer Capital Projects Ordinance Fund Schedule of Revenues, Expenditures, and Changes in Net Position Budget and Actual (Non-GAAP) From Inception and for the Fiscal Year Ended June 30, 2023

Project Authorization Revenues: Intergovernmental revenues................................ Interest (losses) on investments........................... Total revenues..................................................

Actual Current Year

Prior Year -

7,042 46,130 53,172

400,000 400,000

Total To Date $

407,042 46,130 453,172

Expenditures: System maintenance and improvements............. Total expenditures...........................................

136,755,109 136,755,109

59,704,364 59,704,364

25,743,127 25,743,127

85,447,491 85,447,491

Other financing sources/(uses): Issuance of revenue bonds.................................. Premium on sale of revenue bonds..................... Transfer from Water and Sewer Fund ................ Total other financing sources/(uses)................

108,162,125 2,489,691 26,103,293 136,755,109

63,762,125 5,877,491 41,313,292 110,952,908

10,343,350 10,343,350

63,762,125 5,877,491 51,656,642 121,296,258

Change in net position............................................

Page 121

51,301,716

(14,999,777)

36,301,939

CITY OF HIGH POINT, NORTH CAROLINA Electric Fund Schedule of Revenues, Expenditures, and Changes in Net Position Budget and Actual (Non-GAAP) For the Fiscal Year Ended June 30, 2023 Variance Positive (Negative)

Prior Year Actual

Budget

Actual

Operating revenues: Charges for services................................................................... Miscellaneous............................................................................ Total operating revenues........................................................

126,313,100 104,421 126,417,521

121,287,004 106,818 121,393,822

(5,026,096) 2,397 (5,023,699)

$ 123,848,476 106,511 123,954,987

Operating expenditures: Management and administration................................................ Maintenance and distribution..................................................... Power purchases........................................................................ System improvements................................................................ Other services and charges......................................................... Total operating expenditures..................................................

5,769,879 4,745,305 95,000,000 46,771,034 4,271,101 156,557,319

5,729,553 4,249,050 79,988,439 20,361,245 3,648,715 113,977,002

40,326 496,255 15,011,561 26,409,789 622,386 42,580,317

5,182,699 4,777,832 91,181,831 14,778,293 3,587,578 119,508,233

Operating income (loss)

(30,139,798)

7,416,820

37,556,618

4,446,754

1,018,000 (235) (11,760) (53,148) 952,857

2,118,642 305,291 (235) (11,759) (53,148) 2,358,791

1,100,642 305,291 1 1,405,934

(3,554,208) 566,181 (226) (9,901) (2,998,154)

Income (loss) before other financing sources (uses)

(29,186,941)

9,775,611

38,962,552

1,448,600

Other financing sources (uses): Lease liabilities issued............................................................... IT subscription agreement.......................................................... Reimbursement from General Capital Projects Fund................. Transfer to General Fund........................................................... Transfer to General Fund for payments in lieu of taxes.............. Transfer to General Capital Projects Fund................................. Transfer to Electric Capital Projects Fund.................................. Transfer to Storm Water Capital Projects Fund.......................... Transfer to Central Services Fund.............................................. Appropriated net position........................................................... Total other financing sources (uses).......................................

337,300 443,323 (1,110,000) (1,006,151) (600,000) (4,840,000) (100,000) (85,000) 36,147,469 29,186,941

337,267 (1,110,000) (1,006,151) (600,000) (4,840,000) (100,000) (85,000) (7,403,884)

(33) (443,323) (36,147,469) (36,590,825)

39,807 (1,110,000) (989,849) (2,000,000) (4,060,042)

2,371,727

(2,611,442)

Nonoperating revenues (expenditures): Interest (losses) on investments.................................................. Other intergovernmental reimbursements.................................. Interest expense and fiscal charges............................................. Payment of debt principal-Lease................................................ Payment of debt principal-SBITA.............................................. Total nonoperating revenues (expenditures)...........................

Change in net position - budgetary basis........................................

Reconciliation from budgetary basis (modified accrual) to full accrual: Reconciling items: Electric Project Ordinance Fund................................................ Right to use asset additions........................................................ Capital additions........................................................................ Lease liabilities issued............................................................... Lease principal payments........................................................... IT subscription agreement.......................................................... IT subscription principal payments............................................ Depreciation expense................................................................. Amortization expense, right to use assets................................... Gain (loss) on disposal of property............................................. Compensated absences expense................................................. Stipend expense......................................................................... Increase (decrease) in inventory valuation.................................. Increase (decrease) in deferred outflows of resources-pensions.. (Increase) decrease in net pension liability................................. (Increase) decrease in deferred inflows of resources-pensions.... Increase (decrease) in deferred outflows of resources-OPEB..... (Increase) decrease in deferred inflows of resources-OPEB....... (Increase) decrease in net OPEB liability...................................

3,278,775 337,267 5,889,161 11,759 (337,267) 53,148 (3,474,945) (30,272) (5) (56,815) 6,187 572,688 1,360,315 (4,134,039) 2,206,914 (38,265) (22,320) 167,389

Change in net position - full accrual basis......................................

Page 122

8,161,402

(108,325) 39,807 3,143,396 (39,807) 9,901 (3,364,666) (11,128) (35,461) 15,263 1,474,098 242,359 2,291,825 (2,275,600) (34,326) 48,535 (68,690) $

(1,284,261)

CITY OF HIGH POINT, NORTH CAROLINA Electric Capital Projects Ordinance Fund Schedule of Revenues, Expenditures, and Changes in Net Position Budget and Actual (Non-GAAP) From Inception and for the Fiscal Year Ended June 30, 2023

Project Authorization Revenues: Total revenues..................................................

Actual Current Year

Prior Year -

Total To Date -

Expenditures: System maintenance and improvements.............. Total expenditures...........................................

12,107,500 12,107,500

2,150,788 2,150,788

1,561,225 1,561,225

3,712,013 3,712,013

Other financing sources/(uses): Transfer from Electric Fund ............................... Total other financing sources/(uses)................

12,107,500 12,107,500

7,267,500 7,267,500

4,840,000 4,840,000

12,107,500 12,107,500

Change in net position............................................

Page 123

5,116,712

3,278,775

8,395,487

CITY OF HIGH POINT, NORTH CAROLINA Mass Transit Fund Schedule of Revenues, Expenditures, and Changes in Net Position Budget and Actual (Non-GAAP) For the Fiscal Year Ended June 30, 2023

Budget Operating revenues: Charges for services........................................................ Licenses and permits....................................................... Total operating revenues..............................................

Variance Positive (Negative)

Actual

280,000 390,000 670,000

309,907 407,907 717,814

29,907 17,907 47,814

Prior Year Actual $

270,982 408,397 679,379

Operating expenditures: Management and administration..................................... Improvements.................................................................. Total operating expenses.............................................

5,961,857 275,000 6,236,857

4,589,787 56,876 4,646,663

1,372,070 218,124 1,590,194

4,538,470 431,556 4,970,026

Operating income (loss)

(5,566,857)

(3,928,849)

1,638,008

(4,290,647)

Non-operating revenues (expenditures) Interest (losses) on investments....................................... Intergovernmental............................................................ Miscellaneous and other non-operating........................... Interest expense and fiscal charges................................. Payment of debt principal................................................ Total non-operating revenues......................................

3,788,359 67,600 (955) (23,409) 3,831,595

5,567 652,587 53,695 (955) (23,409) 687,485

5,567 (3,135,772) (13,905) (3,144,110)

1,246 2,464,338 33,254 (86) (1,258) 2,497,494

Income (loss) before other financing sources (uses)

(1,735,262)

(3,241,364)

(1,506,102)

(1,793,153)

Other financing sources (uses): Lease liabilities issued..................................................... IT subscription agreement............................................... Transfer from General Fund............................................ Total other financing sources (uses)............................

1,735,262 1,735,262

54,876 1,735,262 1,790,138

54,876 54,876

8,308 618,367 626,675

(1,451,226)

(1,166,478)

Change in net position - budgetary basis............................

Reconciliation from budgetary basis (modified accrual) to full accrual: Reconciling items: Mass Transit Capital Projects Ordinance Fund............... Right to use asset additions............................................. Capital additions.............................................................. Compensated absences expense...................................... Stipend expense............................................................... Increase (decrease) in inventory valuation...................... Depreciation expense...................................................... Amortization expense, right to use assets........................ Increase (decrease) in deferred outflow of resources-pensions (Increase) decrease in net pension liability..................... (Increase) decrease in deferred inflows of resources-pensions Increase (decrease) in deferred outflow of resources-OPEB (Increase) decrease in net OPEB liability........................ Lease principal payments................................................ IT subscription principal payments................................. (Increase) decrease in deferred inflow of resources-OPEB Lease liabilities issued..................................................... IT subscription agreement............................................... Change in net position - full accrual basis..........................

196,444 56,876 (17,802) 6,600 23,476 (1,069,896) (21,291) 233,733 (893,753) 575,181 (9,786) 45,062 1,287 22,122 (10,531) (54,876) $ (2,368,380)

Page 124

63,672 8,308 921,113 15,488 12,375 (21,059) (944,234) (1,231) 59,662 600,820 (590,849) (38,659) 64,732 1,258 36,189 (8,308) $

(987,201)

CITY OF HIGH POINT, NORTH CAROLINA Mass Transit Capital Projects Ordinance Fund Schedule of Revenues, Expenditures, and Changes in Net Position Budget and Actual (Non-GAAP) From Inception and for the Fiscal Year Ended June 30, 2023

Project Authorization Revenues: Intergovernmental revenues............................................ Miscellaneous................................................................. Interest (losses) on investments....................................... Total revenues..............................................................

Actual Current Year

Prior Year

9,947,684 9,159 9,956,843

7,393,995 48,190 128,670 7,570,855

Total To Date

(431) (431)

7,393,995 48,190 128,239 7,570,424

Expenditures: System maintenance and improvements.......................... Total expenditures.......................................................

11,007,620 11,007,620

8,306,262 8,306,262

Other financing sources (uses): Transfer from General Fund............................................ Transfer from Mass Transit Fund.................................... Transfer from Mass Transit Capital Reserve Fund.......... Total other financing sources (uses).............................

619,602 25,000 406,175 1,050,777

740,227 25,000 455,147 1,220,374

196,875 196,875

937,102 25,000 455,147 1,417,249

Change in net position........................................................

Page 125

484,967

196,444

681,411

CITY OF HIGH POINT, NORTH CAROLINA Parking Facilities Fund Schedule of Revenues, Expenditures, and Changes in Net Position Budget and Actual (Non-GAAP) For the Fiscal Year Ended June 30, 2023

Budget Operating revenues: Charges for services.........................................................................

Variance Positive (Negative)

Actual

230,000

308,684

78,684

Prior Year Actual $

238,409

Operating expenditures: Management and administration...................................................... Improvements................................................................................... Total operating expenses

505,386 152,763 658,149

393,925 16,899 410,824

111,461 135,864 247,325

297,493 66,016 363,509

Operating income (loss)

(428,149)

(102,140)

326,009

(125,100)

3,000 (806) (8) 2,186

11,350 (300) (806) (8) 10,236

8,350 (300) 8,050

1,790 (804) (10) 976

Income (loss) before other financing sources (uses)

(425,963)

(91,904)

334,059

(124,124)

Other financing sources (uses): Lease liabilities issued...................................................................... Transfer from General Fund............................................................. Appropriated net position................................................................. Total other financing sources (uses)

251,926 174,037 425,963

251,926 251,926

(174,037) (174,037)

2,219 320,000 322,219

160,022

198,095

Nonoperating revenues (expenditures): Interest (losses) on investments........................................................ Miscellaneous and other nonoperating............................................. Payment of debt principal................................................................ Interest expense and fiscal charges................................................... Total nonoperating revenues (expenses)

Change in net position - budgetary basis.............................................

Page 126

16,899 806 (45,473) (807) (783) 31,461 (79,975) 34,334 (768) 3,265 (252) 118,729

2,219 63,797 (2,219) 804 (44,680) (806) (1,596) 3,713 17,589 11,515 (35,593) 2,495 (11,237) (1,417) 202,679

CITY OF HIGH POINT, NORTH CAROLINA Solid Waste Fund Schedule of Revenues, Expenditures, and Changes in Net Position Budget and Actual (Non-GAAP) For the Fiscal Year Ended June 30, 2023

Budget Operating revenues: Charges for services........................................................................... Total operating revenues...............................................................

Variance Positive (Negative)

Actual

18,269,875 18,269,875

17,134,704 17,134,704

(1,135,171) (1,135,171)

Prior Year Actual $

17,551,436 17,551,436

Operating expenditures: Management and administration....................................................... Improvements..................................................................................... Total operating expenses...............................................................

17,216,862 11,131,774 28,348,636

16,439,961 530,357 16,970,318

776,901 10,601,417 11,378,318

14,961,347 142,787 15,104,134

Operating income (loss)

(10,078,761)

164,386

10,243,147

2,447,302

150,000 84,500 1,500 (69,911) (24) 166,065

246,737 92,381 4,713 (69,910) (24) 273,897

96,737 7,881 3,213 1 107,832

(303,912) 91,165 1,480 (2,403) (31) (213,701)

Income (loss) before other financing sources (uses)

(9,912,696)

438,283

10,350,979

2,233,601

Other financing sources (uses): Lease liablities issued........................................................................ IT subscription agreement................................................................. Transfer to General Capital Projects Fund........................................ Transfer to Special Grants Fund........................................................ Transfer to Landfill Closure and Postclosure Reserve Fund............ Transfer to Solid Waste Capital Project Fund….............................. Transfer to Internal Service Fund...................................................... Transfer from Landfill Closure and Postclosure Reserve Fund........ Appropriated net position.................................................................. Total other financing sources (uses).............................................

103,586 146,414 (105,000) (1,809,780) (1,083,000) (788,000) 2,125,000 11,323,476 9,912,696

103,586 93,720 (105,000) (1,872,050) (1,083,000) (788,000) 2,125,000 (1,525,744)

(52,694) (62,270) (11,323,476) (11,438,440)

6,632 205 (1,852,133) (825,000) (205,701) 2,346,000 (529,997)

(1,087,461)

1,703,604

Nonoperating revenues (expenditures): Interest (losses) on investments........................................................ Intergovernmental.............................................................................. Miscellaneous and other nonoperating.............................................. Payment of debt principal.................................................................. Interest expense and fiscal charges................................................... Total nonoperating revenues (expenditures)................................

Change in net position - budgetary basis...............................................

Reconciliation from budgetary basis (modified accrual) to full accrual: Reconciling items: Landfill Closure and Postclosure Reserve Fund............................... Solid Waste Capital Project Fund..................................................... Landfill closure and postclosure (expense) / recovery...................... Charges for services to business units in this fund........................... Environmental services costs to business units in this fund............. Right to use asset additions............................................................... Capital additions................................................................................ Lease liablities issued........................................................................ Lease principal payments................................................................... IT subscription agreement................................................................. IT subscription principal payments................................................... Compensated absences expense........................................................ Stipend expense................................................................................. Depreciation expense......................................................................... Amortization expense, right to use assets......................................... Gain (loss) on disposal of property.................................................... Increase (decrease) in deferred outflow of resources-pensions........ (Increase) decrease in net pension liability....................................... (Increase) in deferred inflow of resources-pensions......................... Increase (decrease) in deferred outflow-OPEB................................ (Increase) decrease in net OPEB liabilitiy........................................ (Increase) decrease in deferred inflow of resources-OPEB.............. Change in net position - full accrual basis.............................................

Page 127

(2,271,863) 1,094,829 (1,220,080) (2,269,370) 2,269,370 220,743 2,463,805 (103,586) 37,847 (93,720) 32,063 (25,177) 13,613 (989,640) (33,070) (34,390) 635,497 (1,948,685) 1,049,582 (43,828) 182,132 (5,037) (2,126,426)

(3,184,946) 2,795,300 (693,457) (2,141,788) 2,141,788 6,632 198,779 (6,632) 2,403 18,038 35,063 (1,266,764) (2,412) 162,460 1,006,486 (1,082,037) (11,747) (99,288) 26,460 (392,058)

CITY OF HIGH POINT, NORTH CAROLINA Solid Waste Capital Projects Ordinance Fund Schedule of Revenues, Expenditures, and Changes in Net Position Budget and Actual (Non-GAAP) From Inception and for the Fiscal Year Ended June 30, 2023

Project Authorization Expenditures: System maintenance and improvements............................................

Actual Current Year

Prior Year

9,040,593

29,700

2,209,171

Total To Date

2,238,871

Other financing sources (uses): Transfer from Solid Waste Fund....................................................... Transfer from Landfill Closure and Postclosure Reserve Fund.........

3,108,000 5,932,593

1,025,000 3,905,726

1,083,000 2,221,000

2,108,000 6,126,726

Total other financing sources (uses)..............................................

9,040,593

4,930,726

3,304,000

8,234,726

Change in net position...........................................................................

Page 128

4,901,026

1,094,829

5,995,855

CITY OF HIGH POINT, NORTH CAROLINA Landfill Closure and Postclosure Reserve Fund Schedule of Revenues, Expenditures, and Changes in Net Position Budget and Actual (Non-GAAP) For the Fiscal Year Ended June 30, 2023

Budget Revenues: Interest (losses) on investments.....................................

Other financing sources (uses): Transfer from Solid Waste Fund................................... Transfer to General Capital Projects Fund.................... Transfer to Solid Waste Fund........................................ Transfer to Solid Waste Capital Project Fund............... Appropriated net position.............................................. Total other financing sources (uses)........................... Change in net position......................................................

Actual

Income (loss) before other financing sources (uses)

Variance Positive (Negative)

202,087

Prior Year Actual

(691,079)

202,087

(691,079)

(8,352,748) (2,125,000) (2,221,000) 12,698,748 -

1,872,050 (2,125,000) (2,221,000) (2,473,950)

1,872,050 8,352,748 (12,698,748) (2,473,950)

1,852,133 (2,346,000) (2,000,000) (2,493,867)

$ (2,271,863)

(2,271,863)

$ (3,184,946)

Page 129

CITY OF HIGH POINT, NORTH CAROLINA Storm Water Fund Schedule of Revenues, Expenditures, and Changes in Net Position Budget and Actual (Non-GAAP) For the Fiscal Year Ended June 30, 2023

Budget Operating revenues: Charges for services......................................................................... Total operating revenues..............................................................

Variance Positive (Negative)

Actual

5,337,445 5,337,445

5,298,957 5,298,957

(38,488) (38,488)

Prior Year Actual $

5,278,344 5,278,344

4,638,349 5,604,516 10,242,865

3,618,730 897,349 4,516,079

1,019,619 4,707,167 5,726,786

3,277,273 514,828 3,792,101

Operating income (loss)

(4,905,420)

782,878

5,688,298

1,486,243

Nonoperating revenues (expenditures): Intergovernmental............................................................................ Interest (losses) on investments........................................................ Miscellaneous and other nonoperating............................................. Developer contributions................................................................... Interest expense and fiscal charges.................................................. Payment of debt principal................................................................ Total nonoperating revenues (expenditures)................................

50,000 (167,288) (987,514) (1,104,802)

171,078 35,000 (161,750) (1,001,548) (957,220)

121,078 35,000 5,538 (14,034) 147,582

538 (321,399) 6,440 (192,314) (995,029) (1,501,764)

Income (loss) before other financing sources (uses)

(6,010,222)

(174,342)

5,835,880

(15,521)

Other financing sources (uses): Proceeds from general obligation refunding bonds.......................... Lease liabilities issued..................................................................... Transfer from General Fund............................................................ Payment to trustee for refunded bonds............................................. Transfer to General Capital Projects Fund....................................... Transfer to Storm Water Capital Projects Fund............................... Transfer to Internal Service Fund.................................................... Appropriated net position................................................................. Total other financing sources (uses).............................................

990,000 (45,000) (650,000) (25,000) 5,740,222 6,010,222

990,000 (45,000) (650,000) (25,000) 270,000

(5,740,222) (5,740,222)

857,703 2,668 (851,124) 9,247

95,658

(6,274)

Change in net position - budgetary basis.............................................

Reconciliation from budgetary basis (modified accrual) to full accrual: Reconciling items: Storm Water Facilities Capital Projects Ordinance Fund ............... Right to use asset additions.............................................................. Capital additions.............................................................................. Bond principal payments................................................................. Bond proceeds - refunding bonds.................................................... Amortization of gain on refunding................................................... Lease principal payments................................................................. Lease liabilities issued..................................................................... Depreciation expense....................................................................... Amortization expense, right to use assets........................................ Compensated absences expense....................................................... Pond Maintenance............................................................................ Increase (decrease) in deferred outflow of resources-pensions........ (Increase) decrease in net pension liability….................................. (Increase) decrease in deferred inflow of resources-pensions.......... Increase (decrease) in deferred outflow-OPEB................................ (Increase) decrease in net OPEB liability….................................... (Increase) decrease in deferred inflow of resources-OPEB….......... Gain (loss) on disposal of property.................................................. Change in net position - full accrual basis...........................................

Page 130

227,551 1,555,757 1,000,579 47,230 969 (705,883) (970) 63 161,526 (495,515) 267,001 (16,255) 65,180 3,201 (5,994) 2,200,098

(19,826) 2,668 952,544 1,839,176 (857,703) 47,230 967 (2,668) (659,397) (970) 3,175 (6,440) 17,373 298,278 (275,255) 7,457 (58,478) (1,002) 1,280,855

CITY OF HIGH POINT, NORTH CAROLINA

Storm Water Facilities Capital Projects Ordinance Fund Schedule of Revenues, Expenditures, and Changes in Net Position Budget and Actual (Non-GAAP) From Inception and for the Fiscal Year Ended June 30, 2023

Project Authorization Expenditures: Maintenance and distribution....................... Total expenditures.....................................

Other financing sources: Issuance of general obligation bonds............ Transfers from Water and Sewer Fund......... Transfers from Electric Fund........................ Transfers from Storm Water Fund................ Total other financing sources ................... Change in net position.....................................

2,242,460 2,242,460

584,941 100,000 100,000 1,457,519 2,242,460 $

Page 131

Actual Current Year

Prior Year 366,760 366,760

584,941 307,519 892,460 $

525,700

622,449 622,449

Total To Date $

100,000 100,000 650,000 850,000 $

227,551

989,209 989,209

584,941 100,000 100,000 957,519 1,742,460 $

753,251

CITY OF HIGH POINT, NORTH CAROLINA Internal Service Fund The Internal Service Fund accounts for the financing of goods and services provided by one department to other departments of the City. The following activities were accounted for in the Internal Service Fund: Fleet Services Provide the best and most economical support services to the City Fleet. Radio Repair Shop Responsible for the installation and maintenance of all City-owned communication systems and components. Computer Replacement Responsible for funding and replacing all of the City’s computer technology. Health and Wellness Benefits Responsible for the medical, dental, and vision insurance and various wellness programs for city employees and retirees.

Page 133

CITY OF HIGH POINT, NORTH CAROLINA Internal Service Fund Schedule of Revenues, Expenditures, and Changes in Net Position Budget and Actual (Non-GAAP) For the Fiscal Year Ended June 30, 2023

Budget Operating revenues: Interfund charges - radio repair......................................................... Interfund charges - computer replacement........................................ Interfund charges - fleet services....................................................... Interfund charges - workers compensation....................................... Interfund charges - health and wellness............................................ Other operating - health and wellness............................................... Other operating - miscellaneous........................................................ Total operating revenues..............................................................

Variance Positive (Negative)

Actual

2,086,901 731,000 12,923,603 1,584,994 14,755,350 5,279,577 105,500 37,466,925

2,084,304 741,030 12,553,339 1,515,017 14,699,280 4,315,610 197,446 36,106,026

(2,597) 10,030 (370,264) (69,977) (56,070) (963,967) 91,946 (1,360,899)

Prior Year Actual $

2,072,052 735,473 11,230,335 1,507,726 13,855,933 4,550,882 72,961 34,025,362

Operating expenditures: Fleet services..................................................................................... Radio repair shop.............................................................................. Computer replacement...................................................................... Workers compensantion................................................................... Health and wellness.......................................................................... Total operating expenditures........................................................

16,347,068 1,179,069 1,163,644 1,585,222 20,122,748 40,397,751

13,050,874 1,408,673 1,085,624 1,835,568 18,705,327 36,086,066

(3,296,194) 229,604 (78,020) 250,346 (1,417,421) (4,311,685)

10,706,553 1,768,069 705,595 1,583,618 18,241,498 33,005,333

Operating income (loss)

(2,930,826)

19,960

2,950,786

1,020,029

Nonoperating revenues (expenditures): Interest (losses) on investments........................................................ Intergovernmental - emergency assistance........................................ Miscellaneous and other nonoperating.............................................. Proceeds from disposal of capital assets............................................ Interest and fiscal charges................................................................. Principal retirement........................................................................... Total nonoperating revenues (expenditures).................................

35,000 30,420 870,220 (78,127) (1,569,520) (712,007)

76,433 223,991 566,330 (78,127) (1,569,520) (780,893)

41,433 193,571 (303,890) (68,886)

37,004 120 211,087 562,070 (101,316) (1,195,601) (486,636)

Income (loss) before other financing sources (uses)

(3,642,833)

(760,933)

2,881,900

533,393

Other financing sources (uses): Lease liabilities issued IT subscription agreement Transfer from General Fund Transfer from Water and Sewer Fund Transfer from Electric Fund Transfer from Solid Waste Fund Transfer from Storm Water Fund Appropriated net position.................................................................

234,500 205,000 54,000 85,000 788,000 25,000 2,251,333

94,922 605,564 205,000 54,000 85,000 788,000 25,000 -

94,922 371,064 (2,251,333)

3,042 394,840 205,701 -

Total other financing sources (uses).............................................

3,642,833

1,857,486

(1,785,347)

603,583

1,096,553

1,136,976

Change in net position - budgetary basis...............................................

Reconciliation from budgetary basis (modified accrual) to full accrual: Reconciling items: Right to use asset additions............................................................... Capital additions............................................................................... Capital contributions......................................................................... Installment purchase principal payments.......................................... Lease liability issued......................................................................... Lease principal payments.................................................................. IT subscription agreement................................................................. IT subscription principal payments................................................... Depreciation expense........................................................................ Amortization expense, right to use assets.......................................... Compensated absences expense........................................................ Stipend expense................................................................................ Increase (decrease) in inventory valuation........................................ Increase (decrease) in deferred outflow of resources-pensions......... (Increase) decrease in net pension liability….................................... (Increase) decrease in deferred inflow of resources-pensions........... Increase (decrease) in deferred outflow of resources-OPEB............. (Increase) decrease in net OPEB liability…...................................... (Increase) decrease in deferred inflow of resources-OPEB…........... Gain (loss) on disposal of property................................................... (Increase) decrease in accrued actuarial liability............................... Change in net position - full accrual basis.............................................

Page 134

700,486 3,882,751 40,384 1,100,666 (94,922) 33,432 (605,564) 435,422 (5,245,918) (283,337) 24,990 4,125 10,397 197,087 (664,415) 389,687 (8,743) 37,583 (3,683) (175,841) (1,674,036) $

(802,896)

3,042 2,596,311 1,194,499 (3,042) 1,102 (5,484,667) (1,106) (7,162) 4,950 142,121 54,161 383,683 (401,018) (7,033) (13,498) 9,870 (71,137) $

(461,948)

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

Page 135

CITY OF HIGH POINT, NORTH CAROLINA General Fund, Debt Service Fund, and Mass Transit Fund Schedule of Ad Valorem Taxes Receivable June 30, 2023 Uncollected Balance June 30, 2022

Fiscal Year 2022-2023 2021-2022 2020-2021 2019-2020 2018-2019 2017-2018 2016-2017 2015-2016 2014-2015 Prior

492,008 201,811 164,043 158,576 104,431 79,550 78,043 86,089 2,383,435 3,747,986

Current Net Levy $

83,166,350 83,166,350

Uncollected Balance June 30, 2023

Collections and Credits $

82,613,519 232,304 46,567 30,872 23,204 16,545 11,116 9,324 9,397 43,732 83,036,580

Less: allowance for uncollectible accounts (General and Mass Transit Funds) Ad valorem taxes receivable - net

552,831 259,704 155,244 133,171 135,372 87,886 68,434 68,719 76,692 2,339,703 3,877,756

3,688,992 $

188,764

80,862,957 2,442,725 83,305,682

Reconciliation to revenues: Ad valorem taxes - General Fund and Debt Service Fund Vehicle user fees - General & Mass Transit Fund Subtotal Less interest collected

269,102

Total collections and credits

Page 137

83,036,580

CITY OF HIGH POINT, NORTH CAROLINA Analysis of Current Tax Levy City - Wide Levy For the Fiscal Year Ended June 30, 2023

City - Wide

Total Levy Property excluding Registered Registered Motor Motor Vehicles Vehicles

Property Valuation

Rate

Total Levy

$ 13,163,864,777

0.6175

$ 81,286,865

$ 75,095,078

81,286,865

75,095,078

6,191,787

549,505

2,462,190

(1,132,210)

(1,132,173)

(37)

83,166,350

74,512,410

8,653,940

Uncollected taxes at June 30

(552,831)

(525,882)

(26,949)

Current year's taxes collected

$ 82,613,519

$ 73,986,528

99.34%

99.29%

Original levy: Property taxed at current year's rate Total

Discoveries - Current year taxes Net Vehicle User Fees Abatements Total assessed valuation

13,163,864,777

88,988,662

0.6175

(183,353,778)

0.6175

6,191,787

$ 13,069,499,661

Net levy

Current levy collection percentage

Page 138

8,626,991 99.69%

CITY OF HIGH POINT, NORTH CAROLINA Analysis of Current Tax Levy City - Wide Levy For the Fiscal Year Ended June 30, 2023

Secondary Market Disclosures: Assessed Valuation: Assessment Ratio (1) Real Property Personal Property Public Service Companies (2) Total Assessed Valuation City-wide Tax Rate Levy (3)

100% $ 10,776,478,359 2,144,255,909 148,765,393 $ 13,069,499,661 0.6175 $ 83,166,350

(1) Percentage of appraised value has been established by statute. (2) Valuation of railroads, telephone companies and other utilities as determined by the North Carolina Property Tax Commission. (3) The levy includes discoveries, releases, abatements, interest, and vehicle user fees.

Page 139

CITY OF HIGH POINT, NORTH CAROLINA Emergency Telephone System Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 2023

Budget Revenues: Restricted intergovernmental.................................................................. Interest on investments............................................................................ Total revenues......................................................................................

Expenditures: Telephone................................................................................................ Telephone - report adjustment................................................................ Software.................................................................................................. Software - report adjustment.................................................................. Hardware................................................................................................. Hardware - report adjustment.................................................................. Training................................................................................................... Debt Service............................................................................................

Variance Positive (Negative)

Actual

661,446 3,979 665,425

661,446 3,978 665,424

Prior Year Actual (1) (1)

557,478 44 557,522

984,556 -

126,981 118,636 11,330 1,885

857,575 (118,636) (11,330) (1,885)

238,327 418 91,175 (7,015) 244,881 3,731 619

29,389 1,064 1,015,009

29,389 1,064 289,285

725,724

59,797 1,109 633,042

Excess (deficiency) of revenues over (under) expenditures

(349,584)

376,139

725,723

(75,520)

Other financing sources (uses): Transfer from General Fund................................................................... Appropriated fund balance...................................................................... Total other financing sources (uses)....................................................

298,710 50,874 349,584

298,709 298,709

(1) (50,874) (50,875)

674,848

(75,520)

Principal retirement........................................................................ Interest and fiscal charges.............................................................. Total expenditures...............................................................................

Net change in fund balance

Fund balance, beginning of year................................................................ Fund balance, end of year...........................................................................

Page 140

50,875 $

725,723

126,395 $

50,875

CITY OF HIGH POINT, NORTH CAROLINA Statistical Section

This section of the City of High Point's annual comprehensive financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information say about the City's overall financial health. This information has not been audited by the independent auditor. Contents

Tables

Financial Trends

I - IV

These schedules contain trend information to help the reader understand how the City's financial performance and well-being have changed over time. Revenue Capacity

V - XII

These schedules contain information to help the reader assess the City's most significant local revenue sources: property taxes and enterprise fund revenues. Debt Capacity

XIII - XVII

These schedules present information to help the reader assess the affordability of the City's current levels of outstanding debt and the City's ability to issue additional debt in the future. Demographic and Economic Information

XVIII - XIX

These schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place. Operating Information

XX - XXII

These schedules contain service and infrastructure data to help the reader understand how the information in the City's financial report relates to the services the City provides and the activities it performs.

Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year.

page 141

CITY OF HIGH POINT, NORTH CAROLINA Table I Net Position by Component Last Ten Fiscal Years (accrual basis of accounting)

2014

2015

2016

2017

2018

Governmental activities Net investment in capital assets Restricted Unrestricted Total governmental activities net position

$ 160,288,864 29,849,824 16,546,064 $ 206,684,752

$ 160,393,689 30,686,756 17,648,381 $ 208,728,826

$ 161,253,152 34,535,090 11,307,035 $ 207,095,277

$ 162,401,159 36,768,871 (2,220,309) $ 196,949,721

$ 150,224,537 64,909,325 (24,814,851) $ 190,319,011

Business-type activities Net investment in capital assets Restricted Unrestricted Total business-type activities net position

$ 212,606,134 6,299,003 122,394,384 $ 341,299,521

$ 219,481,689 4,406,684 123,899,602 $ 347,787,975

$ 210,970,569 4,443,595 136,212,383 $ 351,626,547

$ 218,990,621 10,363,500 133,797,568 $ 363,151,689

$ 229,783,237 16,342,257 130,436,600 $ 376,562,094

Primary government Net investment in capital assets Restricted Unrestricted Total primary government net position

$ 372,894,998 36,148,827 138,940,448 $ 547,984,273

$ 379,875,378 35,093,440 141,547,983 $ 556,516,801

$ 372,223,721 38,978,685 147,519,418 $ 558,721,824

$ 381,391,780 47,132,371 131,577,259 $ 560,101,410

$ 380,007,774 81,251,582 105,621,749 $ 566,881,105

page 142

CITY OF HIGH POINT, NORTH CAROLINA Table I Net Position by Component Last Ten Fiscal Years (accrual basis of accounting)

2019

2020

2021

Governmental activities Net investment in capital assets Restricted Unrestricted Total governmental activities net position

$ 169,390,682 36,912,361 (16,801,647) $ 189,501,396

$ 165,365,977 47,789,624 (27,725,226) $ 185,430,375

$ 175,384,775 60,546,119 (55,139,923) $ 180,790,971

Business-type activities Net investment in capital assets Restricted Unrestricted Total business-type activities net position

$ 224,234,298 29,385,986 145,117,399 $ 398,737,683

$ 242,113,022 51,850,059 137,347,884 $ 431,310,965

$ 248,353,592 93,257,404 131,278,894 $ 472,889,890

Primary government Net investment in capital assets Restricted Unrestricted Total primary government net position

$ 393,624,980 66,298,347 128,315,752 $ 588,239,079

$ 407,478,999 99,639,683 109,622,658 $ 616,741,340

$ 423,738,367 153,803,523 76,138,971 $ 653,680,861

page 143

2022

2023

171,668,128 52,715,880 (34,843,742) 189,540,266

$ 183,284,503 59,497,093 (31,602,010) $ 211,179,586

252,728,987 116,465,600 106,631,342 475,825,929

$ 263,499,796 92,741,243 133,320,012 $ 489,561,051

424,397,115 169,181,480 71,787,600 665,366,195

$ 446,784,299 152,238,336 101,718,002 $ 700,740,637

CITY OF HIGH POINT, NORTH CAROLINA Table II Changes in Net Position Last Ten Fiscal Years (accrual basis of accounting)

2014 Expenses Governmental Activities: General Government Public Safety Public and Environmental Services Planning/Community and Economic Development Cultural and Recreation Interest and Fiscal Charges Total Governmental Activities Expenses Business-type Activities: Water and Sewer Electric Mass Transit Parking Solid Waste Stormwater Total Business-type Activities Expenses Total Primary Government Expenses Program Revenues Governmental Activities: Charges for Services: General Government Public Safety Public and Environmental Services Planning/Community and Economic Development Cultural and Recreation Operating Grants and Contributions: General Government Public Safety Public and Environmental Services Planning/Community and Economic Development Cultural and Recreation Capital Grants and Contributions: General Government Public Safety Public and Environmental Services Cultural and Recreation Total Governmental Activities Program Revenues Business-type Activities: Charges for Services: Water and Sewer Electric Mass Transit Parking Solid Waste Stormwater Operating Grants and Contributions: Water and Sewer Electric Mass Transit Solid Waste Stormwater Capital Grants and Contributions: Water and Sewer Electric Mass Transit Solid Waste Stormwater Total Business-type Activities Program Revenues Total Primary Government Program Revenues

2015

20,091,425 45,488,095 25,038,325 10,338,434 20,355,123 3,384,574 124,695,976

46,375,398 125,605,217 3,701,643 587,145 7,105,931 2,617,249 185,992,583 310,688,559

4,059,890 787,237 3,733,692 3,096,336 3,084,530

14,118,353 46,005,708 20,563,689 9,642,625 19,935,505 2,929,645 113,195,525

44,349,559 127,207,885 3,266,693 573,092 13,149,700 2,722,619 191,269,548 304,465,073

6,011,896 783,801 706,608 3,059,798 3,230,789

2016

15,460,671 51,960,761 24,847,388 9,899,800 20,555,513 2,743,063 125,467,196

46,807,649 121,756,511 3,225,595 559,156 15,427,307 3,260,795 191,037,013 316,504,209

12,212,903 745,450 1,333,961 3,304,505 3,619,438

2017

17,321,800 55,366,030 20,585,008 11,390,298 26,720,902 2,709,550 134,093,588

50,192,711 124,720,131 4,042,764 559,055 10,530,675 3,288,515 193,333,851 327,427,439

12,431,425 830,332 1,878,269 3,396,469 3,588,646

2018

19,787,152 57,741,366 23,524,751 16,788,296 20,674,411 2,996,656 141,512,632

48,661,185 121,885,416 3,948,597 573,733 11,274,557 3,014,497 189,357,985 330,870,617

14,020,612 758,338 2,224,966 3,588,715 3,613,876

52,552 1,861,964 5,720,776 2,892,565 555,143

44,726 2,064,063 6,280,048 1,570,323 495,192

95,212 2,846,656 4,063,221 2,353,266 770,685

46,086 1,959,200 4,845,142 1,841,654 1,891,157

48,352 1,844,336 7,174,323 6,315,303 521,109

77,768 6,248,970 32,171,423

129,140 7,203,424 31,579,808

1,212,815 870,990 33,429,102

935,072 2,006,346 35,649,798

231,744 852,756 41,194,430

43,757,248 127,773,233 1,068,313 319,486 7,709,575 2,588,750

45,655,004 129,409,301 1,030,841 322,503 10,435,520 2,546,914

47,141,554 126,365,786 885,200 251,058 11,467,321 3,844,690

50,803,018 128,785,771 955,149 225,294 13,094,698 5,186,273

52,137,294 129,949,237 924,514 222,482 13,575,810 5,229,146

528,539 2,272,191 756,154 124,526 137,419

440,301 546,362 4,665,176 123,217 -

408,284 1,008,622 1,627,939 94,367 40,816

403,917 804,070 2,114,281 99,501 14,773

396,829 504,001 544,276 103,241 -

2,724,533 189,759,967 221,931,390

2,674,649 197,849,788 229,429,596

331,407 193,467,044 226,896,146

755,734 6,189,639 209,432,118 245,081,916

244,023 203,830,853 245,025,283

Page 144

CITY OF HIGH POINT, NORTH CAROLINA Table II Changes in Net Position Last Ten Fiscal Years (accrual basis of accounting)

2019 Expenses Governmental Activities: General Government Public Safety Public and Environmental Services Planning/Community and Economic Development Cultural and Recreation Interest and Fiscal Charges Total Governmental Activities Expenses Business-type Activities: Water and Sewer Electric Mass Transit Parking Solid Waste Stormwater Total Business-type Activities Expenses Total Primary Government Expenses Program Revenues Governmental Activities: Charges for Services: General Government Public Safety Public and Environmental Services Planning/Community and Economic Development Cultural and Recreation Operating Grants and Contributions: General Government Public Safety Public and Environmental Services Planning/Community and Economic Development Cultural and Recreation Capital Grants and Contributions: General Government Public Safety Public and Environmental Services Cultural and Recreation Total Governmental Activities Program Revenues Business-type Activities: Charges for Services: Water and Sewer Electric Mass Transit Parking Solid Waste Stormwater Operating Grants and Contributions: Water and Sewer Electric Mass Transit Solid Waste Stormwater Capital Grants and Contributions: Water and Sewer Electric Mass Transit Solid Waste Stormwater Total Business-type Activities Program Revenues Total Primary Government Program Revenues

2020

19,618,763 60,900,367 22,782,299 15,898,598 23,703,990 3,947,980 146,851,997

50,919,362 119,241,152 4,697,373 605,963 12,295,693 3,560,320 191,319,863 338,171,860

15,721,430 782,124 1,887,212 5,155,475 3,713,591

21,365,404 63,101,134 17,893,226 12,449,280 27,132,052 3,731,584 145,672,680

50,110,714 119,733,362 5,266,676 421,434 13,606,476 5,336,486 194,475,148 340,147,828

16,618,809 770,613 2,265,068 3,957,964 3,508,292

2021

20,876,454 67,527,359 20,814,735 11,595,979 24,604,647 3,399,378 148,818,552

2022

21,718,692 69,078,332 20,384,363 12,231,401 27,369,224 3,909,746 154,691,758

53,960,310 120,193,314 5,337,499 357,181 14,786,533 3,695,391 198,330,228 353,021,986

58,350,690 112,755,049 5,695,229 455,882 16,467,144 4,398,218 198,122,212 $ 372,536,793

16,261,088 495,032 1,718,780 3,921,640 3,196,434

$19,869,798 913,521 2,511,622 4,462,769 4,952,732

$19,915,594 1,020,396 2,887,171 4,538,426 5,098,966 99,162 15,930,367 6,884,575 3,081,130 1,617,090 40,384 6,167,004 67,280,265

50,392,530 120,146,632 5,363,978 285,711 13,305,902 3,690,169 193,184,922 342,003,474

8,150 1,987,443 5,623,220 5,883,731 3,606,310

14,918 1,673,509 4,811,028 3,176,711 605,498

439,284 3,724,526 4,407,014 2,320,829 528,348

62,949 10,726,319 5,636,347 3,332,939 720,759

313,452 551,067 78,500 45,311,705

196,431 2,921,669 134,167 40,654,677

535,314 37,548,289

10,199 516,236 53,716,190

54,261,505 129,914,488 839,169 271,562 14,433,007 5,279,605

56,044,302 142,044,072 762,320 224,545 15,084,964 5,270,112

58,940,041 149,262,657 596,286 258,328 14,994,944 5,234,596

59,062,702 123,954,987 712,632 238,409 15,411,128 5,278,344

411,211 667,301 3,889,594 86,111 13,012

1,624,341 50,735 1,237,211 115,527 -

5,576,034 84,918 -

2,864,338 91,164 -

606,109 210,672,674 255,984,379

2,174,084 224,632,213 265,286,890

1,084,795 485,492 31,969 236,550,060 274,098,349

443,714 566,181 538 208,624,137 262,340,327

2023

26,860,752 76,962,297 16,913,605 19,058,774 30,619,367 3,999,786 174,414,581

63,541,534 121,393,822 771,509 308,684 14,870,047 5,333,957 24,261 652,587 92,381 1,039,792 281,030 208,309,604 $ 275,589,869 (Continued)

Page 145

CITY OF HIGH POINT, NORTH CAROLINA Table II Changes in Net Position Last Ten Fiscal Years (accrual basis of accounting)

2014 Net (Expense)/Revenue Governmental Activities Business-type Activities Total Primary Government Net (Expense)/Revenue

General Revenues and Other Changes in Net Position Governmental Activities: Property Taxes Occupancy and Other Local Taxes Unrestricted Revenues and Contributions Gain (Loss) on Disposal of Capital Assets Investment Earnings Transfers Total Governmental Activities

Business-type Activities: Gain (Loss) on Disposal of Capital Assets Investment Earnings Transfers Total Business-type Activities Total Primary Government

Change in Net Position Governmental Activities Business-type Activities Total Primary Government

$ $

2015

(92,524,553) 3,767,384 (88,757,169)

61,232,282 17,476,958 16,232,481 194,779 329,076 573,806 96,039,382

19,809 562,866 (573,806) 8,869 96,048,251

3,514,829 3,776,253 7,291,082

$ $

Page 146

2016

(81,615,717) 6,580,240 (75,035,477)

59,579,994 19,190,749 11,032,844 155,332 272,801 (2,360,223) 87,871,497

635,004 640,892 2,360,223 3,636,119 91,507,616

6,255,780 10,216,359 16,472,139

$ $

2017

(92,038,094) 2,430,031 (89,608,063)

59,088,421 19,717,204 10,438,479 235,025 515,426 (53,966) 89,940,589

1,354,575 53,966 1,408,541 91,349,130

(2,097,505) 3,838,572 1,741,067

$ $

2018

(98,443,790) 16,098,267 (82,345,523)

59,359,042 20,736,967 12,715,055 506,503 311,509 5,151,233 98,780,309

12,411 565,697 (5,151,233) (4,573,125) 94,207,184

336,519 11,525,142 11,861,661

$ $

(100,318,202) 14,472,868 (85,845,334)

62,065,257 2,360,182 29,959,800 634,442 839,010 1,186,828 97,045,519

1,410,339 (1,186,828) 223,511 97,269,030

(3,272,683) 14,696,379 11,423,696

CITY OF HIGH POINT, NORTH CAROLINA Table II Changes in Net Position Last Ten Fiscal Years (accrual basis of accounting)

Net (Expense)/Revenue Governmental Activities Business-type Activities Total Primary Government Net (Expense)/Revenue

Business-type Activities: Gain (Loss) on Disposal of Capital Assets Investment Earnings Transfers Total Business-type Activities Total Primary Government

Change in Net Position Governmental Activities Business-type Activities Total Primary Government

2019

2020

2021

$ (101,540,292) 19,352,811 $ (82,187,481)

$ (105,018,003) 30,157,065 $ (74,860,938)

$ (111,270,263) 43,365,138 $ (67,905,125)

$ $

62,942,486 2,585,959 31,804,685 623,304 1,629,298 1,136,945 100,722,677

3,959,723 (1,136,945) 2,822,778 103,545,455

(817,615) 22,175,589 21,357,974

$ $

63,683,015 2,181,278 31,796,055 594,370 1,115,101 1,577,163 100,946,982

10,935 3,982,445 (1,577,163) 2,416,217 103,363,199

(4,071,021) 32,573,282 28,502,261

$ $

66,192,521 1,731,637 34,813,976 1,720,810 142,479 2,029,435 106,630,858

23,969 219,253 (2,029,435) (1,786,213) 104,844,645

(4,639,405) 41,578,925 36,939,520

2022

$ $

2023

(100,975,568) 10,293,909 (90,681,659)

$ (107,134,316) 10,187,392 $ (96,946,924)

68,327,605 2,810,258 38,109,424 495,864 (1,273,391) 1,255,104 109,724,864

(6,102,766) (1,255,104) (7,357,870) 102,366,994

4,616,818 (1,069,088) 3,547,730 $ 132,321,366

8,749,296 2,936,039 11,685,335

$ $

80,637,400 3,309,152 40,921,282 416,639 2,420,075 1,069,088 128,773,636

21,639,320 13,735,122 35,374,442

(Concluded)

Page 147

CITY OF HIGH POINT, NORTH CAROLINA Table III Fund Balances of Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting)

2014 General Fund Non Spendable: Prepaid Items Total Non Spendable

2015

19,659 19,659

37,153 37,153

2016

41,024 41,024

2017

45,046 45,046

2018

30,254 30,254

Restricted: Stabilization by State Statute Transportation Total Restricted

7,879,820 498,562 8,378,382

9,358,903 506,779 9,865,682

9,613,768 639,255 10,253,023

9,538,524 701,578 10,240,102

10,883,292 757,978 11,641,270

Committed: Public Safety Economic Development Market Development Benefits and Wellness Total Committed

2,127,599 745,254 2,872,853

2,167,144 18,042 926,426 3,111,612

518,005 2,165,926 18,042 2,701,973

569,591 1,599,029 2,042 2,170,662

625,492 1,671,679 2,042 2,299,213

Assigned: Subsequent Years' Expenditures General Government Public Safety Culture & Recreation Planning/Community and Economic Development Public Services and Transportation Total Assigned

4,202,575 243,403 12,751 479,232 107,873 563,483 5,609,317

3,088,607 80,000 238,180 447,095 110,283 556,519 4,520,684

3,837,615 830,000 236,744 364,718 306,083 483,919 6,059,079

3,775,000 400,000 235,193 341,866 106,083 293,608 5,151,750

3,043,012 130,000 193,193 92,242 25,000 84,533 3,567,980

Unassigned Total General Fund

13,314,164 30,194,375

Page 148

16,094,013 33,629,144

13,400,032 32,455,131

11,889,688 29,497,248

3,168,994 20,707,711

CITY OF HIGH POINT, NORTH CAROLINA Table III Fund Balances of Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting)

2019 General Fund Non Spendable: Prepaid Items Total Non Spendable

101,903 101,903

2020

109,556 109,556

2021

448,083 448,083

2022

649,742 649,742

2023

691,447 691,447

Restricted: Stabilization by State Statute Transportation Total Restricted

12,294,000 757,978 13,051,978

12,338,428 615,470 12,953,898

13,235,631 733,370 13,969,001

12,758,112 882,205 13,640,317

16,567,106 788,426 17,355,532

Committed: Public Safety Economic Development Market Development Benefits and Wellness Total Committed

692,212 1,332,343 2,042 2,026,597

756,295 1,923,084 2,042 2,681,421

807,993 1,171,360 2,042 1,981,395

831,107 1,898,645 2,042 2,731,794

894,953 935,312 1,998 1,832,263

300,000 20,000 8,193 10,491 67,408 406,092

87,478 20,000 8,193 7,269 65,308 188,248

1,550,000 20,000 8,193 10,866 65,308 1,654,367

500,000 20,000 8,193 61,452 65,308 654,953

1,000,000 20,000 8,193 73,994 65,308 1,167,495

Assigned: Subsequent Years' Expenditures General Government Public Safety Culture & Recreation Planning/Community and Economic Development Public Services and Transportation Total Assigned Unassigned Total General Fund

11,955,416 27,541,986

12,072,403 28,005,526

16,038,464 34,091,310

21,016,698 38,693,504

25,097,868 46,144,605 (Continued)

Page 149

CITY OF HIGH POINT, NORTH CAROLINA Table III Fund Balances of Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting)

2014

2015

2016

2017

2018

All Other Governmental Funds Non Spendable: Prepaid Items Total Non Spendable

12,942 12,942

Restricted: Stabilization by State Statute Grant Programs Community and economic development Debt Service Capital Projects Total Restricted

3,098,250 550,211 17,822,981 15,327,136 36,798,578

4,230,041 2,648,258 15,906,134 14,825,968 37,610,401

2,987,077 5,430,867 15,864,123 12,312,726 36,594,793

4,492,646 5,897,950 16,138,173 9,724,624 36,253,393

30,810,264 6,326,859 90,924 16,040,008 3,197,067 56,465,122

Committed: Capital Projects Total Committed

1,026,997 1,026,997

1,296,580 1,296,580

2,814,856 2,814,856

7,822,305 7,822,305

118,996 118,996

768,617 768,617

519,141 519,141

971,135 971,135

Assigned: Subsequent year's expenditures Total Assigned Unassigned Total Other Governmental Funds

(856,334) 36,969,241

(1,616,750) 38,058,848

General Fund Balances By Year

$50,000

$45,000 $40,000 $35,000 $30,000 $25,000 $20,000

$15,000 $10,000 $5,000 $-

Year

Note: The City implemented the new governmental funds presentation standard (GASB 54) in the fiscal year ended June 30, 2011. Presentations of prior years information have not been restated.

Page 150

(995,443) 38,933,347

(1,702,797) 42,385,843

(891,066) 56,664,187

CITY OF HIGH POINT, NORTH CAROLINA Table III Fund Balances of Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting)

2019

2020

2021

2022

2023

All Other Governmental Funds Non Spendable: Prepaid Items Total Non Spendable

Restricted: Stabilization by State Statute Grant Programs Community and economic development Debt Service Capital Projects Total Restricted

43,388 43,388

44,845 44,845

5,011,700 5,425,478 195,718 13,142,389 4,123,066 27,898,351

16,271,426 6,259,594 224,152 11,975,644 1,256,472 35,987,288

30,168,076 5,360,872 1,969,000 10,758,170 48,256,118

19,057,829 6,447,595 2,026,620 10,090,304 3,133,215 40,755,563

15,385,363 5,826,841 2,085,544 10,867,168 9,656,645 43,821,561

Committed: Capital Projects Total Committed

Assigned: Subsequent year's expenditures Total Assigned

300,000 300,000

911,898 911,898

964,853 964,853

206,921 206,921

Unassigned Total Other Governmental Funds

(1,138,270) 26,760,081

(480,891) 35,806,397

(29,377,425) 19,790,591

(1,300,679) 40,463,125

44,073,327 (Concluded)

Page 151

CITY OF HIGH POINT, NORTH CAROLINA Table IV Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting)

2014 Revenues: Taxes: Property Occupancy and other local taxes Total taxes

Intergovernmental Licenses and Permits Charges for Services Lease revenue Interest (losses) on Investments Sale of capital assets Administrative reimbursements Interest on lease receivable Miscellaneous Total Revenues

2015

61,607,105 1,922,853 63,529,958

59,860,275 2,140,094 62,000,369

2016

59,266,182 2,156,934 61,423,116

2017

2018

59,791,630 2,261,604 62,053,234

$ 62,369,866 2,376,854 64,746,720

34,490,686 3,728,062 6,778,018 329,076 2,863 6,999,261 1,303,358 117,161,282

38,170,212 3,459,914 4,509,856 272,801 4,367 180,000 898,969 109,496,488

40,148,030 3,135,055 5,369,569 507,913 819 180,000 790,754 111,555,256

40,006,483 4,085,043 4,956,107 292,075 39,081 180,000 1,044,514 112,656,537

40,742,352 4,669,193 4,848,329 794,723 100,625 180,000 5,699,118 121,781,060

Expenditures: General Government Public Safety Public Services Transportation Public and Environmental Services Planning/Community and Economic Development Culture and Recreation Debt Service: Principal Interest Total Expenditures Excess (deficiency) of revenues over (under) expenditures

15,632,281 45,525,308 15,503,251 6,235,195 10,177,354 18,653,916

10,730,114 45,682,145 11,739,651 234,683 9,662,937 18,601,744

10,972,727 49,384,806 14,114,201 274,661 9,748,216 19,526,652

11,222,907 50,213,647 13,714,438 238,350 11,057,475 24,915,589

13,270,518 53,167,743 17,123,776 235,749 17,023,367 43,824,221

7,347,136 3,509,474 122,583,915 (5,422,633)

6,795,725 2,913,357 106,360,356 3,136,132

6,711,174 2,762,137 113,494,574 (1,939,318)

7,172,437 2,658,960 121,193,803 (8,537,266)

6,215,085 2,455,415 153,315,874 (31,534,814)

Other Financing Sources (Uses): Limited obligation bonds issuance Federal loan issuance Federal loan proceeds Installment purchase issuance Installment purchase proceeds Proceeds from issuance of loan payable Proceeds from issuance of line of credit Transfers in Transfers in related to payments in lieu of taxes Transfers out Proceeds from general obligation bonds Bond Issuance Premium Lease liabilities issued IT subscription agreement Refunded bonds payment to trustee Gain (loss) on extinguishment of debt Refunding bonds issued Payment to refunding escrow agent Total other financing sources (uses)

1,500,000 7,996,476 805,173 (8,196,037) 6,115,000 1,224,202 (15,312,845) (92,192) 14,517,909 8,557,686

1,350,000 438,268 7,864,780 845,007 (11,070,010) (571,955)

2,000,000 156,240 6,815,873 893,328 (7,763,167) 2,102,274

3,700,000 14,809,575 937,230 (10,595,572) 16,956,921 2,746,880 (19,523,155) 9,031,879

35,000,000 694,000 9,621,515 889,492 (9,324,178) -

494,613

$ 5,346,015

8.63%

7.12%

Net change in fund balances

Debt service as a percentage of non-capital expenditures

3,135,053

9.30%

page 152

2,564,177

9.39%

162,956

8.75%

36,880,829

CITY OF HIGH POINT, NORTH CAROLINA Table IV Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting)

2019 Revenues: Taxes: Property Occupancy and other local taxes Total taxes Intergovernmental Licenses and Permits Charges for Services Lease revenue Interest (losses) on Investments Sale of capital assets Administrative reimbursements Interest on lease receivable Miscellaneous Total Revenues Expenditures: General Government Public Safety Public Services Transportation Public and Environmental Services Planning/Community and Economic Development Culture and Recreation Debt Service: Principal Interest Total Expenditures Excess (deficiency) of revenues over (under) expenditures Other Financing Sources (Uses): Limited obligation bonds issuance Federal loan issuance Federal loan proceeds Installment purchase issuance Installment purchase proceeds Proceeds from issuance of loan payable Proceeds from issuance of line of credit Transfers in Transfers in related to payments in lieu of taxes Transfers out Proceeds from general obligation bonds Bond Issuance Premium Lease liabilities issued IT subscription agreement Refunded bonds payment to trustee Gain (loss) on extinguishment of debt Refunding bonds issued Payment to refunding escrow agent Total other financing sources (uses) Net change in fund balances

Debt service as a percentage of non-capital expenditures

2020

63,109,264 2,585,959 65,695,223

63,785,941 2,181,278 65,967,219

2021

66,647,722 1,731,637 68,379,359

2022

68,260,285 2,810,258 71,070,543

2023

80,862,957 3,309,152 84,172,109

44,927,436 5,001,978 5,004,816 1,558,782 1,152,832 5,893,743 129,234,810

42,126,350 4,987,616 3,970,523 1,046,439 21,778 3,487,119 121,607,044

46,223,222 5,271,689 4,017,062 134,904 2,098,910 1,700,851 127,825,997

58,708,237 6,323,847 5,157,545 (1,310,395) 399,228 3,091,315 143,440,320

67,603,310 6,581,775 5,610,656 411,745 2,081,620 94,257 262,022 3,616,976 170,434,470

12,651,323 56,755,318 16,232,154 249,577 16,478,509 53,386,599

13,777,792 64,436,699 9,762,365 274,086 11,851,068 22,665,973

14,859,154 69,022,088 11,330,830 273,413 11,020,297 24,944,609

15,967,297 59,439,257 12,297,667 295,051 11,849,887 40,881,941

17,186,097 62,466,253 15,738,825 339,928 18,155,895 32,428,613

5,619,316 4,038,643 165,411,439 (36,176,629)

7,525,227 3,378,137 133,671,347 (12,064,303)

7,769,700 3,370,231 142,590,322 (14,764,325)

9,334,063 3,713,928 153,779,091 (10,338,771)

12,113,268 3,898,632 162,327,511 8,106,959

5,155,000 5,072,697 897,139 (4,832,891) 214,853 6,600,000

18,175,000 650,000 1,330,176 9,397,558 915,892 (8,736,287) (10,725,054) 10,566,874

1,278,869 759,000 920,000 7,494,016 940,921 (6,558,503) -

1,000 15,553,873 989,849 (15,889,159) 31,300,000 2,483,409 1,139,254 (4,563,277) 4,598,550

25,181,016 1,006,151 (26,275,078) 309,208 2,733,047 -

13,106,798

21,574,159

4,834,303

35,613,499

2,954,344

$ (23,069,831)

7.72%

page 153

9,509,856

9.22%

(9,930,022)

9.20%

25,274,728

9.80%

11,061,303

10.88%

CITY OF HIGH POINT, NORTH CAROLINA Table V Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years

Fiscal Year 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Residential Property (4) (5) 4,315,429,943 4,397,388,367 4,349,667,380 4,429,691,766 4,581,596,716 4,617,512,541 4,682,399,768 4,654,184,818 4,881,023,097 6,389,096,783

Real Property (3) Commercial Industrial Property (4) (5) Property (4) (5) 2,149,860,980 1,872,215,206 1,910,440,163 1,942,245,655 2,093,081,705 2,073,676,161 2,160,965,902 2,399,151,079 2,316,281,493 2,799,898,775

969,318,600 977,839,178 1,018,606,564 993,448,540 1,036,916,309 1,111,145,808 1,076,074,949 1,152,797,572 1,195,301,312 1,587,482,801

Personal Property

Total 7,434,609,523 7,247,442,751 7,278,714,107 7,365,385,961 7,711,594,730 7,802,334,510 7,919,440,619 8,206,133,469 8,392,605,902 10,776,478,359

1,489,840,190 1,555,428,785 1,587,787,369 1,674,065,813 1,724,751,200 1,774,628,867 1,765,251,099 1,853,256,085 1,914,514,749 2,144,255,909

Sources: Annual County Report of Valuation and Property Tax Levies (NC Department of Revenue) and Guilford, Davidson, Forsyth, and Randolph County Tax Departments Notes: (1) Public service companies valuations are provided to the County by the NC Dept. of Revenue. These amounts include both real and personal property. (2) The estimated market value is calculated by dividing the assessed value by an assessment-to-sales ratio determined by the NC Dept. of Revenue. The ratio is based on actual property sales which took place during the fiscal year. (3) Property in Guilford County is reassessed every five years. The last reassessment was on January 1, 2022. (4) Due to a change in reporting from Guilford County, the comparative data for fiscal years 2008-2014 is not presented in the same manner as future years as relates to exemptions, exclusions and deferments by class. (5) Due to tax deferred/excluded amounts not being available by class type for FY23, estimates based on FY22 rates have been used for residential, commercial & industrial real property.

Total Taxable Assessed Value $14.00 $12.00

Billions

$10.00 $8.00

$6.00 $4.00 $2.00 $2014

2015

2016

2017

2018

page 154

2019

2020

2021

2022

2023

CITY OF HIGH POINT, NORTH CAROLINA Table V Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years

Fiscal Year 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Public Service Companies (1) 128,387,727 126,857,380 140,281,138 141,688,783 144,885,945 142,350,789 146,722,026 145,822,173 119,329,377 148,765,393

Total Taxable Assessed Value

Total Direct Tax Rate

Estimated Actual Taxable Value (2)

9,052,837,440 8,929,728,916 9,006,782,614 9,181,140,557 9,581,231,875 9,719,314,166 9,831,413,744 10,205,211,727 10,426,450,028 13,069,499,661

0.6750 0.6640 0.6500 0.6475 0.6475 0.6475 0.6475 0.6475 0.6475 0.6175

9,111,148,792 9,333,886,188 9,212,215,009 9,204,150,934 10,113,185,429 10,632,659,628 11,291,390,541 12,378,956,486 10,584,153,921 15,384,931,914

page 155

CITY OF HIGH POINT, NORTH CAROLINA Table VI Direct and Overlapping Property Tax Rates Last Ten Fiscal Years

2014 Guilford County 1

2015

0.7700

2016 $

0.7600

2017 $

2018

0.7550

2019

2020

2021

0.7305

$ 0.7305

2022 $

0.7305

2023 $

0.7305

High Point City Operating rate

0.6410

0.6300

0.6160

0.6135

0.5835

Debt service rate

0.0340

Total High Point City

0.6750

0.6640

0.6500

0.6475

0.6175

1.3780

$ 1.3780

Total direct & overlapping rates

1.4450

1.4340

1.4100

1.4025

1.3780

Source: Guilford County Tax Department. The County does not dilineate components of the tax levy but adopts total rate as operating.

Notes: Overlapping rates are those of local and county governments that apply to property owners within the City of High Point. Real property was revalued on January 1, 2022.

High Point Property Tax Rates Per $100

0.6800 0.6700 0.6600 0.6500 Rate

0.6400 0.6300 0.6200 0.6100 0.6000 0.5900 0.5800 2014

2015

2016

2017

2018

2019

2020

page 156

2021

2022

2023

1.3480

CITY OF HIGH POINT, NORTH CAROLINA Table VII Principal Property Tax Payers Fiscal Years Ended June 30, 2023 and June 30, 2014

Taxpayer International Market Centers, LP (IHFC) BCORE Affliates EBSCO Income Properties Amada

Blue Ridge Companies The Carroll Companies Ralph Lauren Corporation (Polo) Thomas Built Buses/Daimler Trucks Peters Development Group Carolina Investment Properties Market Square AC I-VI LLC Segra Communications (formerly North State) Showplace AC I-VI LLC LSOP NC LLC Wal-Mart Triad Laboratory Alliance LLC Totals

Fiscal Year 2023 Percentage of Total Assessed Assessed Valuation Rank Valuation

Type of Business Home Furnishings Showroom

Real Estate Real Estate Manufacturing

Real Estate Real Estate Clothing Bus Manufacturing Real Estate Real Estate

Home Furnishings Showroom Communications Utility Home Furnishings Showroom

Real Estate Retail Research & Development Labs $

Source: Guilford, Forsyth & Davidson County Tax Departments

page 157

380,279,616 173,728,300 96,393,989 89,326,824 86,006,850 80,164,302 75,292,444 75,087,766 70,907,000 59,807,451 1,186,994,542

1 2 3 4 5 6 7 8 9 10 -

2.91% 1.33% 0.74% 0.68% 0.66% 0.61% 0.58% 0.57% 0.54% 0.46% 9.08%

Fiscal Year 2014 Percentage of Total Assessed Assessed Valuation Rank Valuation $

150,855,722 53,224,000 99,655,588 42,962,880 95,854,035 57,742,655 57,468,488 45,391,700 43,624,997 43,476,820 690,256,885

1 6 2 10 3 4 5 7 8 9

1.67% 0.59% 1.10% 0.47% 0.00% 1.06% 0.64% 0.63% 0.50% 0.48% 0.48% 7.62%

CITY OF HIGH POINT, NORTH CAROLINA Table VIII Property Tax Levies and Collections Last Ten Fiscal Years

Fiscal Year

Total Tax Levy

Collected within the Fiscal Year of the Levy Percentage of Amount Levy

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

61,501,088 59,711,713 58,936,348 60,762,657 63,604,014 64,510,219 65,233,464 67,750,986 69,748,214 83,166,350

60,320,711 58,958,280 58,298,675 60,180,914 63,017,379 63,891,264 64,623,352 67,291,167 69,256,206 82,613,519

98.08% 98.74% 98.92% 99.04% 99.08% 99.04% 99.06% 99.32% 99.29% 99.34%

Collections in Subsequent Years 1,049,808 676,741 568,954 513,309 498,749 483,583 476,941 304,575 232,304 -

Source: Guilford, Randolph, Davidson and Forsyth County Tax Departments

page 158

Total Collections to Date Percentage of Amount Levy 61,370,519 59,635,021 58,867,629 60,694,223 63,516,128 64,374,847 65,100,293 67,595,742 69,488,510 82,613,519

99.79% 99.87% 99.88% 99.89% 99.86% 99.79% 99.80% 99.77% 99.63% 99.34%

CITY OF HIGH POINT, NORTH CAROLINA Table IX Principal Water Customers Fiscal Years Ended June 30, 2023 and June 30, 2014 101.80%

Fiscal Year 2023 Percentage Water Water Charges Rank Charges

Water Customer High Point University High Point Housing Authority KAO Specialties Americas LLC

Guilford County Schools1 Wake Forest Baptist Health - High Point Medical Center International Market Centers, LP Hunter Farms (previously Hunter Jersey Farms) Dean Dairy Fluid, LLC Slane Hosiery Mill Inc The Presbyterian Homes Inc Town of Jamestown Banner Pharmacaps Inc. Dairy Fresh, LLC Crowne at James Landing Totals

786,180 261,773 223,534

1 2 3

3.46% 1.15% 0.98%

207,616 197,686 192,350 183,852 173,204 114,919 113,418 -

4 5 6 7 8 9 10 -

0.91% 0.87% 0.85% 0.81% 0.76% 0.51% 0.50% -

2,454,531

Source: City of High Point Water and Sewer Department Note: 1

Prior to Fiscal Year 2018, Guilford County Schools was presented as multiple customers by location.

page 159

10.80%

Fiscal Year 2014 Percentage Water Water Charges Rank Charges $

434,153 246,381 190,249

1 2 4

2.66% 1.51% 1.17%

163,273 147,773 205,614 136,449 102,045 97,260 90,556

5 6 3 7 8 9 10

1.00% 0.91% 1.26% 0.84% 0.63% 0.60% 0.56%

1,813,753

11.14%

CITY OF HIGH POINT, NORTH CAROLINA Table X Principal Sewer Customers Fiscal Years Ended June 30, 2023 and June 30, 2014 101.80%

Fiscal Year 2023 Percentage Sewer Sewer Charges Rank Charges

Sewer Customer High Point University Town of Jamestown City of Archdale High Point Housing Authority KAO Specialties Americas LLC Wake Forest Baptist Health - High Point Medical Center

Guilford County Schools International Market Centers, LP Hunter Farms (previously Hunter Jersey Farms) Slane Hosiery Mill Inc Dairy Fresh LLC Banner Pharmacaps, Inc. Crowne at James Landing Totals

770,460 582,347 518,230 445,547 371,209 367,339

1 2 3 4 5 6

1.97% 1.49% 1.33% 1.14% 0.95% 0.94%

343,828 341,947 327,158 226,151 4,294,215

7 8 9 10 -

0.88% 0.87% 0.84% 0.58% 10.99%

Source: City of High Point Water and Sewer Department Note: 1

Prior to Fiscal Year 2018, Guilford County Schools was presented as multiple customers by location.

page 160

Fiscal Year 2014 Percentage Sewer Sewer Charges Rank Charges $

457,846 636,300 418,877 322,334 204,160

4 1 6 7 9

1.66% 2.30% 1.52% 1.17% 0.74%

558,980 443,379 590,826 266,183 156,372 4,055,257

3 5 2 8 10

2.02% 1.60% 2.14% 0.96% 0.57% 14.68%

CITY OF HIGH POINT, NORTH CAROLINA Table XI Principal Electric Customers Fiscal Years Ended June 30, 2023 and June 30, 2014

Fiscal Year 2023 Percentage of Total Electric Electric Charges Rank Charges

Taxpayer

Fiscal Year 2014 Percentage of Total Electric Electric Charges Rank Charges

High Point University International Market Centers, LP Ali Amer Wake Forest Baptist Health - High Point Medical Center

4,976,258 4,640,933 2,281,775 2,255,930

1 2 3 4

4.10% 3.83% 1.88% 1.86%

3,258,350 3,125,780 2,429,031

1 2 3

2.59% 2.48% 0.00% 1.93%

Guilford County Schools1 KAO Specialties Americas LLC Fitesa High Point, Inc Patheon Softgels, Inc Southern Film Extruders High Point Housing Authority Thomas Built Buses, Inc. High Point City Waste Disposal Market Square Banner Pharmacaps, Inc North State Communications Totals

1,809,087 1,461,431 1,098,889 986,600 873,913 865,155 $ 21,249,971

5 6 7 8 9 10 -

1.20% 1.49% 0.91% 0.81% 0.72% 0.71% 17.51%

1,527,825 1,120,255 952,184 1,390,330 1,797,167 1,318,175 841,836 $ 17,760,933

5 8 9 6 4 7 10

0.00% 1.21% 0.00% 0.00% 0.00% 0.89% 0.76% 1.10% 1.43% 1.05% 0.67% 14.11%

Source: City of High Point Utilities Note: 1 Prior to Fiscal Year 2018, Guilford County Schools was presented as multiple customers by location.

page 161

CITY OF HIGH POINT, NORTH CAROLINA TABLE XII Schedule of Water, Sewer, and Electric Operating Revenues Last Ten Fiscal Years

Electric Residential Industrial Commercial City City - Street Lighting Private Lighting Other Total

2014 25,105,930 15,710,758 179,580 281,268 519,136 693,862 455,526 80,631 290,617 619,543 43,936,851

48,148,458 15,189,126 51,694,482 4,735,894 2,211,708 2,468,486 1,563,746 126,011,900

2015 26,072,357 16,522,347 174,271 348,056 477,633 700,736 445,347 65,936 272,827 635,738 45,715,248

49,360,975 16,116,188 53,087,246 4,702,109 2,503,420 2,599,843 997,207 129,366,988

2016 27,113,988 17,121,806 219,784 376,853 570,489 728,865 413,808 69,420 296,769 367,866 47,279,648

48,056,282 16,454,899 52,236,766 4,622,383 2,146,849 2,602,306 856,990 126,976,475

2017 28,770,706 18,036,424 231,501 438,771 498,023 711,125 403,786 59,034 337,077 583,101 50,069,548

49,080,288 16,649,766 52,727,964 4,735,783 2,147,808 2,642,477 1,484,604 129,468,690

Water and Sewer Revenues By Year

$70 $60

Millions

Water and Sewer Sales - Sewer Sales - Water City Sales - Sewer City Sales - Water Wastewater - Archdale Wastewater - Jamestown Wastewater - Greensboro Wastewater - Sedgefield Davidson County Other Total

$50 $40 $30 $20 $10 $-

page 162

2018 29,899,150 18,694,169 279,487 431,901 424,846 629,039 433,553 59,116 360,194 685,958 51,897,413

50,475,856 16,231,970 52,712,428 4,863,741 2,149,373 2,657,222 1,068,913 $ 130,159,503

CITY OF HIGH POINT, NORTH CAROLINA TABLE XII Schedule of Water, Sewer, and Electric Operating Revenues Last Ten Fiscal Years

Electric Residential Industrial Commercial City City - Street Lighting Private Lighting Other Total

2019 30,557,158 18,763,168 296,056 385,020 626,654 713,036 455,663 89,927 376,512 714,217 52,977,411

50,710,403 16,068,461 51,683,360 4,880,523 2,148,358 2,648,825 2,419,447 130,559,377

2020 31,760,904 19,938,462 266,803 247,163 602,116 735,661 510,681 99,329 385,313 586,228 55,132,660

48,573,848 15,840,661 51,102,907 4,980,808 7,586 2,696,501 1,377,762 124,580,073

2021 32,057,083 20,138,567 592,402 181,943 199,722 2,787,554 408,962 335,813 382,488 942,094 58,026,628

49,953,247 16,573,223 50,692,094 5,258,884 2,708,392 734,549 125,920,389

Electric Revenues by Year

$132 $130 $128

Millions

$126 $124 $122

$120 $118

$116

page 163

2022 32,851,398 20,994,589 617,253 203,301 221,831 585,994 520,295 78,917 392,027 1,688,536 58,154,141

46,416,805 15,377,167 52,402,176 5,082,983 2,729,588 1,926,268 123,934,987

2023 34,196,513 21,821,219 237,607 211,651 966,395 1,873,157 440,397 143,774 560,553 2,282,903 62,734,169

46,757,773 14,457,345 52,197,575 4,870,412 2,773,274 337,443 121,393,822

CITY OF HIGH POINT, NORTH CAROLINA Table XIII Ratios of Outstanding Debt by Type Last Ten Fiscal Years

Governmental Activities

Fiscal Year

General Obligation Bonds

Limited Obligation Bonds

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

73,820,095 67,954,413 62,294,128 54,529,432 49,446,091 51,275,719 46,640,006 41,645,433 70,537,728 63,865,517

35,000,000 35,000,000 51,690,000 50,190,000 47,713,000 45,211,000

Notes and Loans 1,350,000 3,350,000 3,228,000 3,803,000 4,423,000 4,941,000 4,791,000 4,652,000 4,520,000

Installment Purchases 4,214,505 4,684,336 6,745,930 10,263,853 8,195,534 13,413,226 13,064,344 13,921,230 10,254,114 8,004,317

Leases 1,841,683 1,497,151

Notes: Details regarding the City's outstanding debt can be found in the notes to the financial statements. See Table XVIII for personal income and population data. These ratios are calculated using personal income and population data for the prior calendar year. These amounts are presented net of premiums/discounts.

page 164

Subscription Agreements 1,793,205

CITY OF HIGH POINT, NORTH CAROLINA Table XIII Ratios of Outstanding Debt by Type Last Ten Fiscal Years

Business-type Activities

Fiscal Year 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

General Obligation Bonds 40,639,911 35,760,593 30,340,878 24,465,575 19,643,916 15,769,288 12,692,113 9,722,943 7,191,314 5,556,239

Revenue Bonds 161,974,117 157,974,950 153,816,642 141,867,202 136,686,019 165,517,192 159,394,315 152,266,438 186,281,978 178,085,284

Notes and Loans 7,027,780 5,736,583 4,837,559 4,173,920 3,391,311 2,608,702 1,826,092 1,043,483 260,874 228,265

Leases 55,953 100,230

page 165

Subscription Agreements 387,094

Total Primary Government 287,678,422 273,462,890 261,387,153 238,529,999 256,167,889 288,009,146 290,249,890 273,582,548 328,790,666 309,250,325

Per Capita

Percentage of Personal Income

2,633 2,472 2,335 2,126 2,264 2,522 2,512 2,357 2,828 2,637

6.74% 6.28% 5.79% 5.10% 5.20% 5.60% 5.48% 4.96% 5.67% 4.82%

CITY OF HIGH POINT, NORTH CAROLINA Table XIV Ratios of Net General Bonded Debt Outstanding Last Ten Fiscal Years

Fiscal Year

General Bonded Debt Outstanding Less: Amounts General Restricted Obligation to Repaying Bonds Principal Total

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

114,460,006 103,715,006 92,635,006 78,995,007 69,090,007 67,045,007 59,332,119 51,368,376 77,729,042 69,421,756

17,837,607 16,676,951 16,384,565 16,138,173 17,011,143 13,240,140 12,198,627 11,673,439 11,279,562 10,867,168

96,622,399 87,038,055 76,250,441 62,856,834 52,078,864 53,804,867 47,133,492 39,694,937 66,449,480 58,554,588

Percentage of Personal Income

Percentage of Actual Taxable Value of Property

Per Capita

2.27% 2.00% 1.69% 1.34% 1.06% 1.05% 0.89% 0.72% 1.15% 0.91%

1.07% 0.97% 0.85% 0.68% 0.54% 0.55% 0.48% 0.39% 0.64% 0.45%

884 787 681 560 460 471 408 342 572 499

Notes: Details regarding the City's outstanding debt can be found in the notes to the Financial Statements. See Table XVIII for personal income and population data. These ratios are calculated using personal income and population data for the prior calendar year. See Table V for property value data. These amounts are presented net of premiums/discounts.

page 167

CITY OF HIGH POINT, NORTH CAROLINA Table XV Legal Debt Margin Information Last Ten Fiscal Years (dollars in thousands)

Assessed Value of Property

2014 9,052,837

2015 8,929,729

2016 9,006,783

2017 9,181,141

2018 9,581,232

Debt Limit, 8% of Assessed Value (Statutory Limitation)

724,227

714,378

720,543

734,491

766,499

Amount of Debt Applicable to Limit General obligation debt Less: Amount available for repayment of general obligation bonds Debt outstanding for water purposes Total net debt applicable to limit

114,460 17,838 8,891 87,731

103,715 16,677 7,306 79,732

92,635 16,385 5,607 70,643

78,995 16,138 3,936 58,921

69,090 17,011 2,589 49,490

Legal Debt Margin Available

Total net debt applicable to the limit as a percentage of debt limit

636,496

12.11%

634,646

649,900

11.16%

Note: NC Statute GS159-55 limits the City's outstanding general obligation debt to 8% of the appraised value of property subject to taxation. The following deductions are made from gross general obligation debt to arrive at net debt applicable to the limit: Money held for payment of principal; debt incurred for water, gas, or electric systems and power purchases; uncollected special assessments, and funding and refunding bonds not yet issued. The legal debt margin is the difference between the debt limit and the City's net debt outstanding applicable to the limit, and represents the City's legal borrowing authority. Note: Debt is presented net of bond premiums/discounts.

page 168

9.80%

675,570

8.02%

717,009

6.46%

CITY OF HIGH POINT, NORTH CAROLINA Table XV Legal Debt Margin Information Last Ten Fiscal Years (dollars in thousands)

Assessed Value of Property

2019 9,719,314

2020 9,831,414

Fiscal Year 2021 $ 10,205,212

2022 $ 10,426,450

2023 13,069,500

Debt Limit, 8% of Assessed Value (Statutory Limitation)

777,545

786,513

816,417

834,116

1,045,560

Amount of Debt Applicable to Limit General obligation debt Less: Amount available for repayment of general obligation bonds Debt outstanding for water purposes Total net debt applicable to limit

67,045 13,240 1,650 52,155

59,332 12,199 1,060 46,073

51,368 11,673 523 39,172

77,729 11,280 130 66,319

69,422 10,867 79 58,476

Legal Debt Margin Available

725,390

Total net debt applicable to the limit as a percentage of debt limit

6.71%

740,440

5.86%

777,245

4.80%

City Debt and Legal Debt Margin Net City Debt App To Limit

Legal Debt Margin

1,000 900

Amounts ($1,000)

800 700 600 500 400 300 200

100 -

2014

2015

2016

2017

2018 Year

2019

page 169

2020

2021

2022

2023

767,797

7.95%

987,084

5.59%

CITY OF HIGH POINT, NORTH CAROLINA Table XVI Direct and Overlapping Debt As of June 30, 2023

Name of Governmental Unit

Net Debt Outstanding

Percentage Applicable To This Governmental Unit

City of High Point Guilford County

$ 121,600,833 673,156,981

100.0% 15.5%

Total direct and overlapping debt

City of High Point's Share of Debt $

121,600,833 104,339,332

225,940,165

Sources: Guilford County debt outstanding data provided by Guilford County. Assessed value data used to estimate applicable percentage provided by Guilford County Tax Department. Notes: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This schedule estimates the portion of outstanding debt of those overlapping governments that is borne by the residents of the City of High Point. This process recognizes that, when considering the government's ability to issue and repay long-term debt, the entire debt burden borne by residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt of each overlapping government.

page 170

CITY OF HIGH POINT, NORTH CAROLINA Table XVII Water and Sewer Revenue Bond Coverage Last Ten Fiscal Years

Prior Year Fiscal Unrestricted Net Year Position1 2014 29,062,125 2015 41,880,994 2016 41,150,901 2017 47,339,717 2018 43,429,880 2019 39,021,515 2020 47,242,190 2021 49,983,236 2022 40,189,584 2023 12,155,939

Operating Revenues2 43,936,851 45,715,248 47,279,648 50,069,548 51,897,413 52,977,411 55,132,660 58,026,628 58,154,141 62,734,169

Parity Debt Operating Income Available Service Expenses3 for Debt Service Requirement 20,386,312 23,550,539 9,245,021 23,783,202 21,932,046 10,833,752 25,838,884 21,440,764 10,948,291 29,259,407 20,810,141 11,675,981 29,480,331 22,417,082 11,168,972 29,682,361 23,295,050 11,671,602 29,761,890 25,370,770 12,299,117 30,469,182 27,557,446 13,291,557 32,437,957 25,716,184 12,594,879 36,101,892 26,632,277 14,298,966

Total Debt Service Requirement 16,069,628 17,374,755 17,506,371 18,509,189 16,628,493 16,584,889 15,596,399 16,320,062 15,096,771 15,015,732

Coverage on Coverage on Total Debt Parity Debt Excluding Including 15% 15% Unrestricted Unrestricted Net Position4 Net Position5 3.02 1.47 2.60 1.26 2.52 1.22 2.39 1.12 2.59 1.35 2.50 1.40 2.64 1.63 2.64 1.69 2.52 1.70 1.99 1.77

Notes: The City issued water and sewer revenue bonds in the amount of $40,375,000 dated October 2004, $31,380,000 dated June 2006, $41,745,000 dated June 2008, $23,210,000 dated June 2010, $37,640,000 dated May 2014, $47,610,000 dated June 2019, $34,755,000 dated May 2022. The City issued water and sewer revenue refunding bonds in the amount of $32,125,000 dated June 2012, $50,575,000 dated November 2016, $20,386,000 dated December 2021 and $30,542,000 dated December 2021. 1

From the Annual Comprehensive Financial Report for the prior fiscal year.

From the current combined financial statements.

Operating Expenses exclude depreciation, and accrued expenses for stipends, pension and post-employment benefits.

Most restrictive required coverage is 1.20

Most restrictive required coverage is 1.00

page 171

CITY OF HIGH POINT, NORTH CAROLINA Table XVIII Demographic and Economic Statistics Last Ten Fiscal Years

Year 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Population (1) 109,270 110,638 111,967 112,201 113,125 114,183 115,526 116,065 116,270 117,279

Total Personal Income (2) 4,265,573 4,354,933 4,517,197 4,677,772 4,927,273 5,142,117 5,299,755 5,518,426 5,796,757 6,409,415

Per Capita Personal Income (2) 39,037 39,362 40,344 41,691 43,556 45,034 45,875 47,546 49,856 54,651

Public School Enrollment (3) 14,575 15,455 15,355 15,317 15,402 15,253 15,007 13,223 13,758 13,912

Unemployment Rate (4) 6.98% 5.63% 5.50% 5.22% 4.82% 4.12% 4.10% 8.60% 5.60% 4.10%

Number of Building Inspections Performed (5) 11,090 10,785 8,950 8,078 7,588 8,495 10,365 9,561 9,584 9,774

Source: (1) Population estimate provided by the City of High Point Planning and Development Department as of April 10. (2) Personal income and per capita income provided by Bureau of Economic Analysis, US Department of Commerce. Figures are provided as of the end of the calendar year for the prior calendar year. (3) Public school enrollment provided by NC Department of Public Instruction, first / second month average daily membership. (4) Unemployment rate is an annual average provided by the NC Department of Commerce. (5) Building inspections data provided by the City of High Point Planning and Development Department.

page 172

CITY OF HIGH POINT, NORTH CAROLINA Table XIX Principal Employers Current Year and Nine Years Ago

2023

Employees 2,687

Employer

2014

Percentage of Total County 1 Rank Employment 1 1.03%

Employees 2,369

Percentage of Total County 1 Employment 1.01%

Atrium Health Wake Forest Baptist - (formerly High Point Regional UNC Health Care): High Point University Daimler Trucks- Thomas Built Buses 2 Guilford County Schools (High Point Schools only)

2,100 1,985 1,700 1,605

2 3 4 5

0.81% 0.76% 0.65% 0.62%

1,822 1,128 1,338 1,696

Aetna City of High Point Environmental Air Systems

1,500 1,408 1,368

6 7 8

0.58% 0.54% 0.53%

1,344 -

Rank 1 3 8 6 4 5 -

Marsh Furniture Volvo Group North America 2

679 600

9 10

0.26% 0.23%

2,283 1,245 865 812

2 7 9 10

0.97% 0.53% 0.37% 0.35%

Ralph Lauren Corporation

Bank of America2 Cornerstone Healthcare3 NCO Group/ APAC Customer Service Solstas Lab Partners3

Source: North Carolina ESC, City of High Point Economic Development Notes: 1

Total employment figures available for Guilford County only.

These organizations have multiple locations in the Piedmont Triad Area. The numbers shown reflect High Point-based employees only.

Full time equivalent number of employees as of December of the prior calendar year.

page 173

0.78% 0.48% 0.57% 0.72% 0.57% -

CITY OF HIGH POINT, NORTH CAROLINA Table XX Full-Time City Government Employees by Function Last Ten Fiscal Years

Function/Program General Government Public Safety Public Services Planning and Community Development Cultural and Recreation Water and Sewer Electric Mass Transit Parking Landfill/Solid Waste Storm Water Central Services

Total

2014

2015

2016

2017

2018

121 492 118 49 174 137 123 40 2 47 22 32

131 495 73 49 176 137 124 41 2 93 23 24

137 514 76 53 172 138 126 42 2 91 24 23

136 522 76 53 172 138 126 42 2 91 24 23

139 532 76 53 176 138 126 54 2 91 24 23

1,357

1,368

1,398

1,405

1,434

Source: City of High Point Budget and Evaluation Department. Notes: The number reported is budgeted full time positions for the fiscal year.

page 174

CITY OF HIGH POINT, NORTH CAROLINA Table XX Full-Time City Government Employees by Function Last Ten Fiscal Years

Function/Program

2019

2020

2021

2022

2023

General Government Public Safety Public Services Planning and Community Development Cultural and Recreation Water and Sewer Electric Mass Transit Parking Landfill/Solid Waste Storm Water Central Services

141 534 76 53 177 139 126 54 2 92 25 23

145 533 76 53 179 144 128 54 2 96 26 24

145 530 76 53 177 145 129 55 2 98 26 26

129 498 58 48 176 136 124 39 2 94 23 25

135 475 60 53 167 141 126 45 2 90 20 25

1,442

1,460

1,462

1,352

1,339

Total

page 175

CITY OF HIGH POINT, NORTH CAROLINA Table XXI Operating Indicators For Major Functions/Programs Last Ten Fiscal Years

Function/Program Police Calls dispatched Fire Emergency responses Inspections Streets Streets paved (lane miles) Water and Sewer Water pumped (mgd) Sewer treated (mgd) Electric Number of billed locations kWh purchased

2014

2015

2016

2017

2018

115,744

119,271

120,830

118,511

130,816

12,189 4,944

12,403 5,135

12,981 5,921

14,723 5,569

15,087 4,670

12 17

12 15

13 16

12 16

13 15

39,528 1,176,760,896

40,429 1,186,769,290

41,787 1,167,068,089

42,003 1,185,365,125

42,331 1,189,815,609

Source: City of High Point Police, Fire, Public Services, Engineering, and Electric Departments. Note: Customer number for Electric is based on location count for FY 2016 and forward. In years prior, this was counted in a different manner.

page 176

CITY OF HIGH POINT, NORTH CAROLINA Table XXI Operating Indicators For Major Functions/Programs Last Ten Fiscal Years

2019

2020

2021

2022

2023

125,639

113,058

107,731

104,273

136,244

15,721 4,961

15,144 5,453

14,046 2,991

15,635 4,029

16,690 3,060

14 20

13 18

13 19

13 16

13 17

41,719 1,180,977,893

41,766 1,164,599,433

42,819 1,202,762,249

43,181 1,188,473,142

43,375 1,036,851,653

page 177

CITY OF HIGH POINT, NORTH CAROLINA Table XXII Capital Asset Statistics, By Function/Program Last Ten Fiscal Years

Function/Program Police Stations Patrol Units Fire stations Streets Paved Streets (miles) Unpaved Streets (miles) Alleys (miles) Parks and Recreation Acreage (includes lakes) Developed Parks Public Swimming Pools (City owned) Golf Courses (City owned) Recreation and Community Centers Library Books and Volumes Theatre Seats Water and Sewer Water and Sewer mains (miles) Water storage capacity (mgd) Water and Sewer Treatment capacity(mgd) Electric Overhead lines (miles) Underground lines (miles) Electric substations Mass Transit Buses Parking Off Street Parking spaces Storm Water Storm sewers (miles)

2014

2015

2016

2017

2018

1 229 14

1 239 14

1 252 14

443 1 2

448 2 2

447 2 2

448 2 2

3,252 35 2 2 7

2,788 50 2 2 7

2 2 7

308,786

312,696

367,324

393,958

412,002

963

929

1,284 19 64

1,283 19 56

1,289 19 56

1,289 19 58

1,291 19 58

405 342 14

410 332 14

407 349 14

405 353 14

1,234

461

469

480

Source: City of High Point Police, Fire, Public Services, Parks, Library, Theatre, Electric, and Transportation departments. Note: Streets in fiscal years 2010 and prior may have included private and/or state owned streets. Fiscal years 2011 and forward only include City owned streets.

page 178

CITY OF HIGH POINT, NORTH CAROLINA Table XXII Capital Asset Statistics, By Function/Program Last Ten Fiscal Years

Function/Program Police Stations Patrol Units Fire stations Streets Paved Streets (miles) Unpaved Streets (miles) Alleys (miles) Parks and Recreation Acreage Developed Parks Swimming pools (City owned) Golf Courses (City owned) Recreation and Community Centers Library Books and Volumes Theatre Seats Water and Sewer Water and Sewer mains (miles) Water storage capacity (mgd) Water and Sewer Treatment capacity(mgd) Electric Overhead lines (miles) Underground lines (miles) Electric substations Mass Transit Buses Parking Off Street Parking spaces Storm Water Storm sewers (miles)

2019

2020

2021

2022

2023

1 202 14

1 186 14

1 190 14

1 217 14

1 201 14

448 1 2

450 1 2

452 1 2

3 2 7

3 2 6

437,637

437,828

460,466

467,760

469,849

929

900

1,291 19 58

1,309 19 58

1,319 19 60

1,315 19 60

404 360 13

404 307 14

404 375 14

403 376 14

403 381 14

1,234

1,228

509

520

513

page 179

CITY OF HIGH POINT, NORTH CAROLINA

COMPLIANCE SECTION

Page 181

Report of Independent Auditor on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards To the Honorable Mayor and Members of City Council City of High Point, North Carolina We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, 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 of High Point, North Carolina (the “City”), as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated October 31, 2023. Our report includes a reference to other auditors who audited the financial statements of the City of High Point ABC Board (the “Board”), a discretely presented component unit, and Forward High Point (the “FHP”), a blended component unit, as described in our report on the City’s financial statements. This report does not include the results of the other auditors’ testing of internal control over financial reporting or compliance and other matters that are reported separately by those auditors. The financial statements of the Board and FHP were not audited in accordance with Government Auditing Standards and, accordingly, this report does not include reporting on internal control over financial reporting or instances of reporting noncompliance associated with the Board or FHP.

Report on Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (“internal control”) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the City’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and, therefore, material weaknesses or significant deficiencies may exist that were not identified. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. We identified a certain deficiency in internal control, described in the accompanying schedule of findings and questioned costs as item 2023-001 that we consider to be a significant deficiency.

Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. cbh.com

Page 183

City of High Point’s Response to Findings Government Auditing Standards requires the auditor to perform limited procedures on the City of High Point’s response to the findings identified in our audit and described in the accompanying schedule of findings and questioned costs. The City of High Point’s response was not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response.

Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Charlotte, North Carolina October 30, 2023

Page 184

Report of Independent Auditor on Compliance for Each Major Federal Program and on Internal Control over Compliance in Accordance Required by the Uniform Guidance and the State Single Audit Implementation Act To the Honorable Mayor and Members of City Council City of High Point, North Carolina

Report on Compliance for Each Major Federal Program Opinion on Each Major Federal Program We have audited the City of High Point, North Carolina (the “City’s”) compliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement and the Audit Manual for Governmental Auditors in North Carolina, issued by the Local Government Commission, that could have a direct and material effect on each of the City’s major federal programs for the year ended June 30, 2023. The City’s major federal programs are identified in the Summary of Auditor’s Results section of the accompanying schedule of findings and questioned costs. The City’s basic financial statements include the operations of High Point ABC Board (the “Board”), a discretely presented component unit, and Forward High Point (the “FHP”), a blended component unit, in which neither had expended any federal awards for the year ended June 30, 2023. Our audit, described below, did not include the operations of these component units since they were audited by other auditors. In our opinion, the City complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2023.

Basis for Opinion on Each Major Federal Program We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (“GAAS”); the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; the audit requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”); and the State Single Audit Implementation Act. Our responsibilities under those standards, Uniform Guidance and the State Single Audit Implementation Act are further described in the Auditor’s Responsibilities for the Audit of Compliance 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 requirements relating to our audit. We believe the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not provide a legal determination of the City’s compliance with the compliance requirements referred to above.

Responsibilities of Management for Compliance Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the City’s federal programs.

cbh.com

Page 185

higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the applicable compliance requirements is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City’s compliance with the requirements of each major federal program as a whole. In performing an audit in accordance with GAAS, Government Auditing Standards, Uniform Guidance, and the State Single Audit Implementation Act, we: 

Exercise professional judgment and maintain professional skepticism throughout the audit.



Identify and assess the risks of material noncompliance, 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 City’s compliance with applicable compliance requirements and performing such other procedures as the auditor considered necessary in the circumstances.



Obtain an understanding of the City’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance and the State Single Audit Implementation Act, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control over compliance. Accordingly, no such opinion is expressed.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that the auditor identified during the audit.

Report on Internal Control over Compliance A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s Responsibilities for the Audit of Compliance section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit, we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies may exist that have not been identified. Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance and, accordingly, this report is not suitable for any other purpose.

Charlotte, North Carolina October 30, 2023 Page 186

Report of Independent Auditor on Compliance for Each Major State Program and on Internal Control over Compliance in Accordance with OMB Uniform Guidance and the State Single Audit Implementation Act To the Honorable Mayor and Members of City Council City of High Point, North Carolina

Report on Compliance for Each Major State Program Opinion on Each Major State Program We have audited the City of High Point, North Carolina (the “City’s”) compliance with the types of compliance requirements identified as subject to audit in the Audit Manual for Governmental Auditors in North Carolina, issued by the Local Government Commission, that could have a direct and material effect on each of the City’s major State programs for the year ended June 30, 2023. The City’s major State programs are identified in the Summary of Auditor’s Results section of the accompanying schedule of findings and questioned costs. The City’s basic financial statements include the operations of High Point ABC Board (the “Board”), a discretely presented component unit, and Forward High Point (the “FHP”), a blended component unit, in which neither had expended any State awards for the year ended June 30, 2023. Our audit, described below, did not include the operations of these component units since they were audited by other auditors. In our opinion, the City complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major State programs for the year ended June 30, 2023.

Basis for Opinion on Each Major State Program We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (“GAAS”); the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; the audit requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”); and the State Single Audit Implementation Act. Our responsibilities under those standards, Uniform Guidance and the State Single Audit Implementation Act are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report.

Auditor’s Responsibilities for the Audit of Compliance Our objectives are to obtain reasonable assurance about whether material noncompliance with the applicable compliance requirements occurred, whether due to fraud or error, and to express an opinion on the City’s compliance based on our audit. 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 GAAS, Government Auditing Standards, Uniform Guidance, and the State Single Audit Implementation Act will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the applicable compliance requirements is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City’s compliance with the requirements of each major state program as a whole. cbh.com

Page 187

In performing an audit in accordance with GAAS, Government Auditing Standards, Uniform Guidance, and the State Single Audit Implementation Act, we: 

Exercise professional judgment and maintain professional skepticism throughout the audit.



Report on Internal Control over Compliance A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct, noncompliance with a type of compliance requirement of a state program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a state program will not be prevented or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance with a type of compliance requirement of a State program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s Responsibilities for the Audit of Compliance section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit, we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies may exist that have not been identified. Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance and the State Single Audit Implementation Act, and, accordingly, this report is not suitable for any other purpose.

Charlotte, North Carolina October 30, 2023

Page 188

CITY OF HIGH POINT, NORTH CAROLINA SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2023 Section I—Summary of Auditor’s Results Financial Statements Type of report the auditor issued on whether the financial statements audited were prepared in accordance with U.S. GAAP:

Unmodified

Internal control over financial reporting: 

Material weakness(es) identified?



Significant deficiency(ies) identified?

Noncompliance material to financial statements noted?

yes

X yes

yes

none reported

yes

X_ no

Federal Awards Internal control over major federal programs: 

Material weakness(es) identified?



Significant deficiency(ies) identified?

Noncompliance material to federal awards? Type of auditor’s report issued on compliance for major federal programs:

Unmodified

Any audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a)?

_ yes

X_ no

Identification of major federal programs: Federal Assistance Listing 14.218 14.239 21.027 Dollar threshold used to distinguish between Type A and Type B Programs: Auditee qualified as low-risk auditee?

Name of Federal Program or Cluster COVID-19: Community Development Block Grants / Entitlement Grants HOME Investment Partnerships Program COVID-19: Coronavirus State and Local Fiscal Recovery Funds $ 750,000 X yes

Page 189

CITY OF HIGH POINT, NORTH CAROLINA SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED) YEAR ENDED JUNE 30, 2023 Section I—Summary of Auditor’s Results (continued) State Awards Internal control over major state programs: 

Material weakness(es) identified?



Significant deficiency(ies) identified?

Noncompliance material to state awards?

yes

none reported

yes

Type of auditor’s report issued on compliance for major state programs:

Unmodified

Any audit findings disclosed that are required to be reported in accordance with the State Single Audit Implementation Act

yes

Identification of major state programs: Program Name Demonstration Grant Program Parks and Recreation Trust Fund

Section II—Financial Statement Findings Finding 2023-001 – Significant Deficiency Criteria: Under Statement No. 87, Leases (GASB 87), entities are required to recognize certain lease assets and liabilities on the balance sheet based on the payment provisions of the contract effective July 1, 2021. Condition: The City identified during the current year that it improperly excluded two lessor relationships that were in place during the prior year and, therefore, subject to GASB 87. Effect: The City had understated its lease receivables and deferred inflows of resources in the general fund and governmental activities by approximately $6,300,000 in the prior year. Cause: The City did not timely implement effective processes or detecting controls to identify all leases subject to GASB 87 in the prior year. However, the City did implement more complete processes and detecting controls in the current year and found these leases as part of that process. Recommendation: With the implementation of new accounting standards, we recommend the City identify processes to adequately address the completeness of its populations, such as data mining or departmental training, prior to implementation in addition to adding detecting controls to more timely identify transactions subject to such new standards. Views of Responsible Officials: Management agrees with the finding and, while the error was discovered during the current year by management, they are implementing further procedures to correct going forward as discussed within the corrective action plan. Correction Action Plan: See Corrective Action Plan prepared by the City. Page 190

CITY OF HIGH POINT, NORTH CAROLINA SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED) YEAR ENDED JUNE 30, 2023 Section III—Federal Award Findings and Questioned Costs None reported.

Section IV—State Award Findings and Questioned Costs None reported.

Page 191

CITY OF HIGH POINT, NORTH CAROLINA SUMMARY SCHEDULE OF PRIOR YEAR AUDIT FINDINGS YEAR ENDED JUNE 30, 2023 None reported.

Page 192

Page 193

CITY OF HIGH POINT, NORTH CAROLINA SCHEDULE OF EXPENDITURES OF FEDERAL AND STATE AWARDS For The Year Ended June 30 , 2023

Grantor/Pass-Through Grantor/Program or Cluster Title U.S. Department of Housing and Urban Development Direct Programs CDBG Entitlement Grants Cluster Community Development Block Grant Covid-19: Community Development Block Grant Total CDBG Entitlement Grants Cluster

Federal Assistance Listing Number

Pass-Through Entity Identifying Number

14.218 14.218

HOME PJ U.S. Department of Justice Direct Programs JAG Program Cluster: Justice Assistance Grant Total JAG Program Cluster Forfeiture Funds COPS Hiring 2022 Patrick Leahy Bulletproof Vest Partnership Covid-19: Coronavirus Emergancy Supplemental Funding

944,399 92,166 1,036,565 968,809

16.738

57,866

16.922 16.710 16.607 16.034

166,858 114,171 7,834 28,234

16.738 16.738

Passed Through NC Gang Investigators Association Project Safe Neighborhood

16.609

U.S. Department of Transportation Direct Programs Federal Transit Cluster Section 5307 Capital Grant - FY2015-2016 (NC-2016-042-00) Section 5307 Capital Grant - FY 2017-2018 (NC-2018-032-00) Total Federal Transit Cluster

14.239

Passed Through N.C. Governor's Crime Commission Local LE Block Grant CIT Training & Support

U.S. Department of Homeland Security Passed-through NC Department of Public Safety Covid-19: Disaster Grants-Public Assistance (Presidentially Declared Disasters)

Federal Expenditures (Direct and Passed Through)

97.036

PROJ014697 PROJ015531

24,495 3,546 7,556

PA-04-NC-4487

20.507 20.507

10,100

20,758 830 21,588

Highway Planning and Construction Cluster Passed Through N.C. Department of Transportation Section 104(f) Highway Planning Grant

20.205

WBS 44842.1.12

211,828

Passed Through N.C. Department of Transportation Section 5303 Planning Grant

20.505

WBS 36230.19.16.1

68,400

(continued)

Page 195

CITY OF HIGH POINT, NORTH CAROLINA SCHEDULE OF EXPENDITURES OF FEDERAL AND STATE AWARDS For The Year Ended June 30 , 2023

U.S. Department of Housing and Urban Development Direct Programs CDBG Entitlement Grants Cluster Community Development Block Grant Covid-19: Community Development Block Grant Total CDBG Entitlement Grants Cluster HOME PJ

State Expenditures (Direct and Passed Through)

Passed Through to Subrecipients

113,492 92,166 205,658

23,171 -

Passed Through N.C. Governor's Crime Commission Local LE Block Grant CIT Training & Support

Passed Through NC Gang Investigators Association Project Safe Neighborhood

U.S. Department of Justice Direct Programs JAG Program Cluster: Justice Assistance Grant Total JAG Program Cluster Forfeiture Funds COPS Hiring Bulletproof Vest Partnership Covid-19: Coronavirus Emergancy Supplemental Funding

U.S. Department of Homeland Security Passed-through NC Department of Public Safety Covid-19: Disaster Grants-Public Assistance (Presidentially Declared Disasters)

Highway Planning and Construction Cluster Passed Through N.C. Department of Transportation Section 104(f) Highway Planning Grant

Passed Through N.C. Department of Transportation Section 5303 Planning Grant

8,550

(continued)

Page 196

CITY OF HIGH POINT, NORTH CAROLINA SCHEDULE OF EXPENDITURES OF FEDERAL AND STATE AWARDS For The Year Ended June 30 , 2023

Grantor/Pass-Through Grantor/Program or Cluster Title

Federal Assistance Listing

Pass-Through Entity Identifying Number

Federal Expenditures (Direct and Passed Through)

U.S. Department of the Treasury Direct Program Covid-19 State and Local Fiscal Recovery Funds (ARP)

21.027

13,837,426

Passed Through N.C. Department of Environmental Quality Covid-19 State and Local Fiscal Recovery Funds (ARP)

21.027

400,000

Passed Through Reinvestment Partners (appropriated by the N.C. General Assembly) Volunteer Income Tax Assistance

21.009

301234115555

8,537

45.310 45.310

NC22-11 NC21-139

36,216 32,974

Institute of Museum and Library Services Passed Through N.C. Department of Cultural Resources LSTA LSTA - Technology on the Go N.C. Department of Commerce Direct Programs One NC Fund

N.C. Housing Finance Agency Direct Programs Construction Training Program Urgent Repair Program

N.C. Department of Transportation Direct Programs Powell Bill Demostration Grant Program State Maintenance Assistance Program (SMAP)

N.C. Department of Environmental Quality Direct Programs Waste Reduction & Recycling

N.C. Department of Health and Human Services Passed Through Piedmont Triad Regional Council Senior Center General Purpose

02398(23)

N.C. Department of Cultural Resources Direct Programs State Aid to Libraries Parks and Recreation Trust Fund (PARTF)-City Lake Park

Total Federal Assistance

17,043,003

(continued)

Page 197

CITY OF HIGH POINT, NORTH CAROLINA SCHEDULE OF EXPENDITURES OF FEDERAL AND STATE AWARDS For The Year Ended June 30 , 2023 State Expenditures (Direct and Passed Through)

Passed Through to Subrecipients

U.S. Department of the Treasury Direct Program Covid-19 State and Local Fiscal Recovery Funds (ARP)

Passed Through N.C. Department of Environmental Quality Covid-19 State and Local Fiscal Recovery Funds (ARP)

Passed Through Reinvestment Partners (appropriated by the N.C. General Assembly) Volunteer Income Tax Assistance

N.C. Department of Commerce Direct Programs One NC Fund

34,000

N.C. Housing Finance Agency Direct Programs Construction Training Program Urgent Repair Program

43,040 105,681

43,040 -

3,239,530 1,700,000 554,456

1,700,000 -

N.C. Department of Environmental Quality Direct Programs Waste Reduction & Recycling

10,080

N.C. Department of Health and Human Services Passed Through Piedmont Triad Regional Council Senior Center General Purpose

10,901

N.C. Department of Cultural Resources Direct Programs State Aid to Libraries Parks and Recreation Trust Fund (PARTF)-City Lake Park

197,027 500,000

6,426,436

$ 1,982,698

Grantor/Pass-Through Grantor/Program or Cluster Title

Institute of Museum and Library Services Passed Through N.C. Department of Cultural Resources LSTA LSTA - Technology on the Go

N.C. Department of Transportation Direct Programs Powell Bill Demostration Grant Program State Maintenance Assistance Program (SMAP)

Total State Assistance

Note 1: Basis of Presentation The accompanying Schedule of Expenditures of Federal and State Awards (SEFSA) includes the federal and state grant activity of the City of High Point under the programs of the federal government and the State of North Carolina for the year ended June 30, 2023. The information in this SEFSA is presented in accordance with the requirements of Title 2 US 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. Because the Schedule presents only a selected portion of the operations of the City of High Point, it is not intended to and does not present the financial position, changes in net position or cash flows of the City of High Point. The City does not allocate indirect cost. Note 2: Summary of Significant Accounting Policies Expenditures reported in the SEFSA are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The City of High Point has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. Note 3: FEMA expenses for FY22-23 total $10,100 which have all been reported.

(concluded)

Page 198