ORGANIZATIONAL CHART
Report of Independent Auditor
To the Honorable Mayor and Members of 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, 2025, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2025, and the changes in financial position and,whereapplicable,cash flowsthereofandthebudgetary comparisonfor theGeneralFundfor theyearthenended in accordance with accounting principles generally accepted in the United States of America
We did not audit the financial statements of Forward High Point (“FHP”), a blended component unit, which represents 0.51%, 0.23%, and 0.27% of the assets, net position, and revenues, respectively, of the City’s governmental activities and 7.47%, 2.71%, and 2.73% of the assets, fund balance, and revenues, respectively, of the City’s aggregate remaining funds as of June 30, 2025, and the respective changes in financial position, and where applicable, cash flows thereof for the year then ended. We also did not audit the financial statements of the City of High Point ABC Board (the “Board”) which represents 100% of assets, revenues, and net position of the City’s discretely presented component unit, as described in our report on the City’s financial statements as of June 30, 2025, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended. Those financial statements were audited by other auditors whose reports have been furnished to us, and our opinion, insofar as it relates to the amounts included for FHP and the Board, is based solely on the reports of other auditors.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America, the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.The financial statements of the Board and FHP were not audited in accordance with Government Auditing Standards.
Emphasis of Matter
As discussed in Note 9 to the financial statements, beginning net position was restated due to the adoption of Governmental Accounting Standards Board Statement No. 101, Compensated Absences. Our opinion is not modified with respect to this matter.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for 12 months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis (MD&A) and the required supplementary information, 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 required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The combining and individual nonmajor fund financial statements, as listed in the table of contents, and Schedule of Expenditures of Federal and State Awards, as required by Title 2 of U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”); and the State Single Audit Implementation Act, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements and Schedule of Expenditures of Federal and State Awards are fairly stated, in all material respects, in relation to the basic financial statements as a whole.
We also have previously audited, in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards, the financial statements of the governmental activities, the businesstype 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, 2024 (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 2024 basic financial statements. The information has been subjected to the auditing procedures applied in the audit of those financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards. In our opinion, the accompanying combining and individual fund financial statements and Schedule of Expenditures of Federal and State Awards are fairly stated in all material respects in relation to the financial statements from which it has been derived.
Other Information
Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated February 12, 2026, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.
Charlotte, North Carolina
February 12, 2026
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, 2025. 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. 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, 2025.
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 $792.3 million. The net position for governmental activities increased to $227.2 million, and business-type net position improved to $565.1 million.
As of the close of the current fiscal year, the City of High Point’s governmental funds reported combined ending fund balances of $80.7 million, an increase of approximately $2.0 million from the prior year, primarily due to an increase in general fund revenues, exceeding expenditures. Approximately 36.4% of this total amount, or $29.4 million, is available for spending at the government’s discretion in the General Fund. This amount represents approximately 19.9% of total budgeted general fund expenditures and transfers out 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
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 reporting 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.
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 79 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, 2025 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
The City’s combined net position increased by $68.2 million, (9.4%) this year to more than $792.3 million from approximately $724.1 million, as restated. The positive trends for the last ten fiscal years have combined for an overall increase of nearly $235.8 million (42.4%) from FY2015’s total of $556.5 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. Management’s
Analysis
Summary Detail
Net Position
Total net position for the City increased from approximately $736.3 million to approximately $792.3 million during FY 2024-2025. As shown below, assets and deferred outflows of resources of the City exceeded liabilities and deferred inflows of resources by more than $792.3 million on June 30, 2025. Net position for governmental activities increased by $2.2 million as compared to the prior fiscal year primarily due to growth in property tax revenues and lower expenditures over several functions, offset by a restatement. The City’s business-type activities were responsible for $53.8 million of the increase when compared to last fiscal year, primarily due to continued growth in charges for services, wholesale power expense reduction a one-time working capital credit from the NC Municipal Power Agency.
For the year ended June 30, 2025, GASB Statement No. 101, Compensated Absences, was implemented. The objective of this Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. This change restated and reduced beginning net position of governmental activities in the government-wide statements by $9,185,684. This change restated and reduced beginning net position of government-wide business-type activities and proprietary funds by $3,039,191.
Table 1
A large portion of the City’s net position, 63% at June 30, 2025, 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, 22.7% 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 $111.5 million in FY24 to $113.0 million in FY25.
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 in the deficit to ($42.2 million) as compared to ($38.4 million) in the prior year on the full-accrual entity-wide basis of presentation. The City has seen its healthy net unrestricted position fall the last several years as the Governmental Accounting Standards Board gave 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 6% ($25.8 million) from the previous fiscal year. Charges for services remained the largest program revenue type and saw an increase over FY24, primarily due to higher water and sewer rates and a one-time working capital credit from the NC Municipal Power Agency. Operating and capital grants and contribution revenue decreased due to lower federal revenues and developer contributions.
The total cost of all programs and services decreased 1.7% ($6.9 million) when compared to last fiscal year. The City continues to see moderate increased demand 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 areas of livability, transparency, accountability and infrastructure. Results of operations show that public safety, public services, and general government account for most of the governmental programs increases when compared to last fiscal year, in total governmental expenses decreased by nearly $5 million. Business-type expenses decreased by about $1.9 million. Increases were primarily in water and sewer and solid waste where we have seen increased personnel costs as well as significant regulatory study costs. Purchases of electric power expenses decreased by about $7.9 million or 10.1% as compared to the prior year.
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 99.4%.
The net position for business-type operations increased this year by $56.8 million as the City increased rates for water and sewer and a one-time working capital credit from the NC Municipal Power Agency, while there were moderate increases in expenses overall, with a significant drop in wholesale power costs (about 10%). 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.
Governmental Activities
Property tax revenues increased $5.8 million compared to the prior year, primarily due to growth of the property tax base in Guilford County and a 3-cent tax increase for FY25. Current real and personal property tax collections during fiscal year ended June 30, 2025, remained at 99.4% of the current levy.
Total governmental expenses decreased by about $5.0 million as discussed above. Program revenues provided 29.2% 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.
Business-type Activities
As highlighted earlier, charges for services of the City’s business-type activities (see Table 2) increased by about $30.1 million. The increase in net position is primar ily due to rate increases, a decrease in wholesale power costs, and a one-time working capital credit from the NC Municipal Power Agency.
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 $80.7 million, a $2.0 million increase over the prior fiscal year, primarily due to a reduction in capital expenditures. Of the General Fund fund balances reported, $32.7 million was available to finance future expenditures in the general fund, including $1.4 million committed formally by City Council for economic development, public safety and market development and approximately $1.3 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 $59.6 million. The primary reason for 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, 2025, total fund balance available for appropriation excluding restricted by state statute and other non-spendable fund balance is 21.5% of the FY 2026 General Fund budget. The amount remaining after restrictions, commitments and assignments is approximately 19.2% of the FY 2026 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 2025 Annual Budget appropriated a total of $1,050,000 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 $29,406,846.
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.
General Fund Revenues on the Governmental Fund Basis
2.8%(2,005,048)
2.5%(258,144)
0.8%61,162
The most significant component in General Fund revenues remains to be property taxes. Total revenue decreased by about $1.9 million from 2024, primarily due the removal of occupancy tax and showroom tax from the General Fund ($4.8 million) and offset by increased property tax revenue. The FY24-25 budget saw an increase in the property tax rate to 64.75 cents from 61.75 cents. The decrease in intergovernmental revenues is primarily the result of an additional month of sales tax receipts accrued in FY24 to reflect remittances made to the state for June 2024, a one-time adjustment.
General fund revenues recognized a mix of positive and negative variances for the fiscal year with actual results of more than $4.2 million in excess of the final budget. Growth in sales tax (intergovernmental), property taxes, and investment income exceeded budget by the largest margins. Departmental fiscal control and personnel vacancies provided favorable budget savings. The City originally expected to utilize $1 million in fund balance for fiscal year 2024-2025; however, the city’s exceptional fiscal control on spending and increased revenue resulted in an addition of $4.4 million to fund balance in fiscal year 2024-2025.
General Fund Expenditures on the Governmental Fund Basis
The most significant changes in General Fund expenditures when compared to the previous fiscal year occurred in public safety. Public Safety expenditures increased primarily due to personnel expenditures.
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 2025, 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.
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets
At the end of fiscal year 2025, the City had approximately $786.0 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 $21.3 million, or about 2.8%, over last year. Most of the additions during the fiscal year continue to come from the expenditure of previously issued general obligation and revenue bonds. Additional information on the City’s capital assets can be found in Notes to the Financial Statements (pages 46-48).
The City’s FY 2025-2026 capital pay-as-you-go budget calls for spending another $53.4 million for infrastructure maintenance and capital projects as outlined below, principally for the utility system improvementsandinfrastructure.
Thesecapitalprojectsarebudgetedasfollows:
Debt
At year-end, the City had approximately $322.3 million in bonds and notes outstanding versus $296.5 millionlastyear—anincreaseof8.7%—asshowninTable5.
202520242025202420252024
Generalobligationbonds,includingpremium55,545$62,843$3,088$4,290$58,633$67,133 $ Limitedobligationbonds46,94242,689--46,94242,689 Revenuebonds,includingpremium--197,975168,745197,975168,745 Notes,installmentcontracts,leases,andSBITAs17,76416,8981,0251,03718,78917,935
Totaloutstandingdebt120,251$122,430$202,088$174,072$322,339$296,502 $ GovernmentalActivitiesBusiness-typeActivitiesPrimaryGovernment
TheCity’sgeneralobligationbondratingcontinuestocarryhighandstableratingsfromthethreenational ratingagenciesatJune 30,2025. Standard & Poor’s ratesthe City’screditat AAA, the highestavailable. Moody’sandFitchratetheCity’screditatAa1andAA+,respectively.TheCity’sbondratingsareaclear indication of the sound financial management practices and solid financial condition of the City of High PointasaffirmedbytheirmostrecentreportsinMay2022. Thesehighfinancialcreditratingsareaprimary factorin keepinginterestcostslowontheCity’soutstandingdebt. TheStatelimitsthe amount ofgeneral obligation debt that cities can issue to 8 percent of the assessed value of all taxable property within the City’s corporate limits. The City’s outstanding general obligation debt is significantly below this $1.057 billionstate-imposedlimit.
Other obligations include compensated absences, other post-employment benefits, pension liabilities for LGERSandLEOSSA,andclosure/post-closureliabilities.MoredetailedinformationabouttheCity’slongtermliabilitiesispresentedinthenotestothefinancialstatements(pages63-72).
ECONOMICFACTORSANDNEXTYEAR’SBUDGETSANDRATES
TheCity’selectedandappointedofficialsconsideredmanyfactorswhensettingtheFY2025-2026budget and tax rates that support the governmental activities and fees that will be charged for the business-type activities. The property taxrate remained at 64.75 cents. Water and sewer consumption growth as well as electricloadgrowth wereprojected to be largely flat for another year. The budget included a 8% increase forwaterandsewercustomers.
ThetotalGeneralFundbudgetappropriates$153.2million,whichisanincreaseof4.4%overtheadopted 2025budgetof$146.8million. Asdiscussedabove,propertytaxesremainedsteadyatarateof64.75cents. The City continues to review and evaluate strategic concepts employed during previous fiscal years. The GeneralCapitalProjectFund.........................................4,185,000 $
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 2025-2026:
Water and sewer rates were increased 8%, 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.
Solid Waste fees increased by $1/month for the landfill closure/post closure fee and tipping fees increased by $6/ton.
There were no rate increases for Storm Water, 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.
CITY OF HIGH POINT, NORTH CAROLINA STATEMENT OF NET POSITION June 30, 2025
The notes to basic financial statements are an integral part of this statement.
The
CITY OF HIGH POINT, NORTH CAROLINA Statement of Activities
For the Year Ended June 30, 2025
CITY OF HIGH POINT, NORTH CAROLINA Statement of Activities
For the Year Ended June 30, 2025
CITY OF HIGH POINT, NORTH CAROLINA
Balance Sheet Governmental Funds June 30, 2025
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds For the Year Ended June 30, 2025
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, 2025
Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds; Revenues received in the current year in the funds but recorded / accrued in the prior year on the
Some expenses reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds; current year contributions to the pension and OPEB plans are not included in the Statement of Activities (5,047,058)
Proceeds from bond, federal loan, and installment purchase issuances is reported as increases in liabilities in the Statement of Activities, but reported as revenue in the funds (6,800,000) Lease liabilities issued (99,117) IT subscription Agreement (2,695,508)
Net Gain (loss) on the disposal of capital assets is recorded in the Statement of Activities (excludes internal service fund gain/loss) (315,526) 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. 6,348,432 Internal service funds current year profit/loss is allocated to the business-type funds in the Statement of Activities (1,335,346) Change in net position of governmental activities 11,417,118 $
The notes to basic financial statements are an integral part of this statement.
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, 2025
CITY OF HIGH POINT, NORTH CAROLINA
Statement
CITY OF HIGH POINT, NORTH CAROLINA
Statement of Revenues, Expenses and Changes in Fund Net Position Proprietary Funds For the Year Ended June 30, 2025
Major Funds
Business-type - Enterprise Funds
CITY OF HIGH POINT, NORTH CAROLINA
Statement of Revenues, Expenses and Changes in Fund Net Position Proprietary Funds For the Year Ended June 30, 2025
CITY OF HIGH POINT, NORTH CAROLINA
CITY OF HIGH POINT, NORTH CAROLINA
Statement of Cash Flows Proprietary Funds For the Year Ended June 30, 2025 Business-Type
CITYOFHIGHPOINT,NORTHCAROLINA
NotestoFinancialStatements June30,2025
Note 1. Summary of Significant Accounting Policies
The accounting policies of the City of High Point, North Carolina, and its discretely presented component unit conform to accounting principles generally accepted in the United States of America (GAAP) as applicable to governments.
The City’s financialstatements are prepared inaccordance with GAAP.TheGovernmental Accounting Standards Board (GASB) is responsible for establishing GAAP for state and local governments through its pronouncements (StatementsandInterpretations).Thefollowingisasummaryofthemoresignificantaccountingpoliciesestablished inGAAPandusedbytheCity:
A. ReportingEntity
The City of High Point is located in the Piedmont area of the State and has a population of 118,399. The City is a municipal corporation which is governed by an elected mayor and an eight-member council and provides the following services as authorized by its charter: public safety (police and fire), highways and streets, sanitation, culture-recreation,publicimprovements,planningandzoning,andgeneraladministrativeservices. Asrequiredby GAAP, these financial statements present the City and its component units, which are legally separate entities. Criteriausedtoestablishfinancialaccountabilityincludeappointmentofavotingmajorityofthecomponentunit’s governing board and imposition of will or a financial benefit/burden relationship, fiscal dependency or other significantoperationalandfinancialrelationships.
1. BlendedComponentUnits
Blendedcomponentunits,although legally separateentitiesare,insubstance,partoftheCity’soperation. Each of these units has a June 30 year-end and the financial amounts from these units are combined with amountsoftheprimarygovernment.
ForwardHighPoint,Inc.(FHP)assiststheCityinpurchasingstrategicpropertyintheCityfordevelopment andothereconomicdevelopmentprojectsinthedowntownarea,growingtheCity’staxbaseandincreasing economic activity in the area. The mission of FHP is to transform downtown High Point into an extraordinaryandvibrantdestinationtolive,work,study,andplay.Citystaffandelectedofficialsserveon the board and the organization exists to serve primarily the City of High Point. A financial burden exists, astheCityisrequiredtotransferfundstoFHPinanamountsufficienttosustainoperations.Theassetsand liabilities are combined with assets and liabilities of the Special Revenue Funds for financial statement purposes.FHPreportsundertheFinancialAccountingStandardsBoard(FASB).Assuch,certainrevenue recognition, debt payments, and presentation features are different from GASB revenue recognition, debt payments,andpresentationfeatures.TheCitymodifiedcertainportionsofFHP’sfinancialinformationto includeFHPintheSpecialRevenueFundsatthemodifiedaccruallevel. Nomodificationshavebeenmade to FHP’s financial information at the City’s government-wide level. Complete financial statements and relatedinformationforFHPmaybeobtainedfromtheentity’sadministrativeofficesat164S.MainStreet, Suite606,HighPoint,NC27260.
The High Point Public Facilities Corporation (HPPFC) assists the City in financing, acquiring, and constructingpublicfacilities.ThesolepurposeoftheHPPFCistoprovideafundingsourceforCityassets, lease the assets to the City and to use the lease payments to repay the debt. The corporation has no other operations. The HPPFC’s three-member governing board is composed of City staff as directed in the corporation’s bylaws. A financial burden exists, as the City is required to transfer funds to the HPPFC in an amount sufficient to pay the scheduled debt service on HPPFC’s outstanding debt. The HPPFC’s cash
and debt are considered with assets of the Debt Service Fund and Governmental Liabilities for financial statementpurposes.
2. DiscretelyPresentedComponentUnit
CityofHighPointABCBoard
TheCityappointsthemembersoftheABCBoard’sgoverningboard.Inaddition,theABCBoardisrequiredby StatestatutetodistributeitssurplusestotheGeneralFundoftheCity,whichrepresentsafinancialbenefittothe City. Therefore, the ABC Board is reported as a discretely presented component unit in the city’s financial statements.CompletefinancialstatementsandrelatedinformationfortheABCBoardmaybeobtainedfromthe entity'sadministrativeofficesatCityofHighPointABCBoard,201W.FairfieldRoad,HighPoint,NC27263.
B.BasicFinancialStatements—Government-WideStatements
The City’s basic financial statements include both government-wide (reporting the City as a whole) and fund financial statements (reporting the City’s major funds). Both the government-wide and fund financial statements categorize primary activities as either governmental or business type. The City’s general administrative, public services,policeandfire,parksandrecreation,andlibraryareclassifiedasgovernmentalactivities.TheCity’swater, sewer,electric,masstransit,parking,solidwaste,andstormwaterservicesareclassifiedasbusiness-typeactivities.
Government-wide Statements: The statement of net position and the statement of activities display information about the primary government and its component unit. These statements include the financial activities of the overallgovernment. Eliminationshavebeenmadetominimizethedoublecountingofinternalactivities.Interfund servicesprovidedandusedarenoteliminatedintheprocessofconsolidation.Thesestatementsdistinguishbetween the governmental and business-type activities of the City. Governmental activities generally are financed through taxes, intergovernmental revenues, and other non-exchange transactions. Business-type activities are financed in wholeorinpartbyfeeschargedtoexternalparties.
Inthegovernment-wideStatementofNetPosition,boththegovernmentalandbusiness-typeactivitiescolumns(a) are presented on a consolidated basis by column, and (b) are reported on a full accrual, economic resource basis, which recognizes all long-term assets and receivables as well as long-term debt and obligations. The City’s net positionisreportedinthreeparts—netinvestmentincapitalassets;restricted;andunrestricted.
Thegovernment-wideStatementofActivitiesreportsboththegrossandnetcostofeachoftheCity’sfunctionsand business-type activities (police, fire, public works, etc.). The functions are also supported by general government revenues(property,salesandusetaxes,certainintergovernmentalrevenues,fines,permits,andcharges,etc.).The StatementofActivitiesreducesgrossexpenses(includingdepreciation)byrelatedprogramrevenues,operatingand capitalgrants.Programrevenuesmustbedirectlyassociatedwiththefunction(police,fire,publicservices,etc.)or a business-type activity.Operating grants include operating-specific anddiscretionary(either operatingor capital) grantswhilethecapitalgrantscolumnreflectscapital-specificgrants.
The net costs (by function or business-type activity) are normally covered by general revenue (property, sales, intergovernmentalrevenues,interestincome,etc.).
This government-wide focus is more on the sustainability of the City as an entity andthe change in the City’s net positionresultingfromthecurrentyear’sactivities.
C.BasicFinancialStatements—FundFinancialStatements
ThefinancialtransactionsoftheCityarereportedinindividualfundsinthefundfinancialstatements.Eachfundis accounted for by providing a separate set of self-balancing accounts that comprises its assets, liabilities, deferred outflows and inflows,reserves, fundbalance, revenues and expenditures/expenses. The variousfunds arereported bygenericclassificationwithinthefinancialstatements.
Fund Financial Statements: The fund financial statements provide information about the City’s funds. Separate statementsforeachfundcategory– governmental and proprietary –arepresented.TheCityhasnofiduciaryfunds toreport.Theemphasisoffundfinancialstatementsisonmajorgovernmentalandenterprisefunds,eachdisplayed in a separate column. All remaining governmental and enterprise fundsare aggregated andreportedasnon-major funds.
TheCityusesthefollowingfundtypes:
a. GovernmentalFunds:
Thefocusofthegovernmentalfunds’measurement(inthefundstatements)isupondeterminationoffinancial positionandchangesinfinancialposition(sources,uses,andbalancesoffinancialresources)ratherthanupon netincome.ThefollowingisadescriptionofthegovernmentalfundsoftheCity:
1. General Fund. The General Fund is the general operating fund of the City. It is used to account for all financialresourcesexceptthoserequiredtobeaccountedforinanotherfund.Theprimaryrevenuesources areadvaloremtaxes,State-sharedrevenues,andvariousothertaxesandlicenses.Theprimaryexpenditures areforpublicsafety(policeandfire),publicworks,andcultureandrecreation.
2. SpecialRevenueFund.TheSpecialRevenueFundsareusedtoaccountfortheproceedsofspecificrevenue sources (other than special assessments) that are legally restricted to expenditures for specified purposes. TheCitymaintainsfourspecialrevenuefunds:TheSpecialGrantsFund,TheOpioidSettlementFund,The Community Development Fund and the Showroom and Occupancy Tax Fund. The City’s blended componentunitsarereportedaspartoftheCommunityDevelopmentFund.
3. General Debt Service Fund. The General Debt Service Fund is used to account for the accumulation of fundsfortheperiodicpaymentofprincipalandinterestongenerallong-termdebt.
4. GeneralCapitalProjectsFund.TheGeneralCapitalProjectsFundisusedtoaccountforfinancialresources to be used for the acquisition or construction of major capital facilities (other than those financed by business-type/proprietaryfunds).
TheGeneralFundandtheGeneralCapitalProjectsFundarethemajorgovernmentalfunds.
b. ProprietaryFunds:
Thefocusofproprietaryfundmeasurementisupondeterminationofoperatingincome,changesinnetposition, financialposition,andcashflows.Thegenerallyacceptedaccountingprinciplesapplicablearethosesimilarto businessesintheprivatesector.ThefollowingisadescriptionoftheproprietaryfundsoftheCity:
Enterprise funds are required to be used to account for operations for which a fee is charged to external users for goods or services and the activity (a) is financed with debt that is solely secured by a pledge of the net revenues, (b) has third party requirements that the cost of providing services, including capital costs, be recoveredwithfeesandchargesor(c)establishesfeesandchargesbasedonapricingpolicydesignedtorecover similarcosts.
TheCitymaintainssixenterprisefunds: TheWaterandSewerFund,theElectricFund,theMassTransitFund, theParkingFacilitiesFund,theSolidWasteFacilitiesFundandtheStormWaterFund. Forfinancialreporting purposes, the Water & Sewer Capital Projects Ordinance Fund, the Mass Transit Capital Projects Ordinance Fund, theSolid WasteCapital Projects Ordinance Fund,the Landfill ClosureandPost-Closure Reserve Fund, and the Storm Water Facilities Capital Projects Ordinance Fund have been consolidated with their respective EnterpriseFund.
TheWaterandSewerFundandtheElectricFundaretheonlymajorenterprisefundsoftheCity.
c. TheCityreportsthefollowingadditionalfundtype:
Internal Service Funds are used to account for the financing of goods or services provided by an activity to other departments, funds or component units of the City on a cost-reimbursement basis. The City has two
InternalServiceFundsreportedasonecombinedfund.The componentsoftheInternalServiceFundareFleet Services,RadioRepair,ComputerReplacement,PrintShop,HealthandWellness,andRisk.
The emphasis in fund financial statements is on the major funds in either the governmental or business-type activities categories. Non-major funds by category are summarized into a single column. GASB No. 34 sets forth minimum criteria (percentage of the assets, deferred outflows, liabilities, deferred inflows, revenues or expenditures/expenses of either fund category or the governmental and enterprise combined) for the determination of major funds. The non-major funds are combined in a single column in the fund financial statements.TheCitymayelecttoreportfundsasmajoreveniftheminimumcriteriasetforthbyGASBNo.34 isnotmetduetothepublicinterestofthefunds.
TheCity’sinternalservicefundispresentedintheproprietaryfundsfinancialstatements.Becausetheprincipal usersoftheinternalservicesaretheCity’sgovernmentalactivities,thefinancialstatementoftheinternalservice fund is consolidated into the governmental column when presented in the government-wide financial statements. To the extent possible, the cost of these services is reported in the appropriate functional activity (police,fire,publicworks,etc.).
D.MeasurementFocusandBasisofAccounting
InaccordancewithNorthCarolinaGeneralStatutes,allfundsoftheCityaremaintainedduringthe yearusingthe modifiedaccrualbasisofaccounting.
Government-wide and Proprietary Fund Financial Statements. The government-wide and proprietary fund financial statements are reported using the economic resources measurement focus. The government-wide and proprietary fund financial statements are reported using the accrual basis of accounting. Revenues are recorded whenearnedandexpensesarerecordedatthetimeliabilitiesareincurred,regardlessofwhentherelatedcashflows take place. Non-exchange transactions, in which the City gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, grants, and donations. On an accrual basis, revenue from property taxes is recognizedin the fiscalyear in which the taxes are levied. Revenue fromgrants and donations is recognizedinthefiscalyearinwhichalleligibilityrequirementshavebeensatisfied.
Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privilegesprovided,2)operatinggrantsandcontributions,and3)capitalgrantsandcontributions,includingspecial assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise,generalrevenuesincludealltaxes.
Proprietary funds distinguish operatingrevenues andexpenses fromnon-operating items. Operatingrevenuesand expensesgenerallyresultfromprovidingservicesanddeliveringgoodsinconnectionwiththeprimaryactivitiesof the proprietary funds. For the City of High Point, these operating revenues are charges to customers for sales and servicesfortheWaterandSewerFund,ElectricFund,MassTransitFund,ParkingFacilitiesFund,theSolidWaste FacilitiesFundandthe StormWaterFund.Operatingexpensesfortheseenterprise fundsincludethecostsofsales andprovidingservices,administrativeexpenses,anddepreciation/amortizationoncapitalassets. Allrevenuesand expensesnotmeetingthisdefinitionarereportedasnon-operatingrevenuesandexpenses.
Governmental Fund Financial Statements. Governmental funds are reported using the current financial resources measurementfocusandthemodifiedaccrualbasisofaccounting.Underthismethod,revenuesarerecognizedwhen measurableandavailable.Expendituresarerecordedwhentherelatedfundliabilityisincurred,exceptforprincipal andinterestongenerallong-termdebt,claimsandjudgments,andcompensatedabsences,whicharerecognizedas expenditures to the extent they have matured. General capital asset acquisitions are reported as expenditures in governmental funds. Issuance of general long-term debt and acquisitions under leases and IT subscriptions are reportedasotherfinancingsources.
The City considers all revenues available if they are collected within 90 days after year-end, except for property taxes. Advaloremtaxesreceivablearenotaccruedasrevenuebecausetheamountisnotsusceptibletoaccrual. At June 30, taxes receivable are materially past due and are not considered to be an available resource to finance the operationsofthecurrentyear.
Sales taxes and certain intergovernmental revenues, such as the beer and wine tax, collected and held by the State at year-end on behalf of the City are recognized as revenue. Sales taxes are considered a shared revenue for the City of High Point because the tax is levied by our respective counties and then remitted to and distributed by the State. Mostintergovernmentalrevenuesandsalesandservicesarenotsusceptibletoaccrualbecausegenerallythey are not measurable until received in cash. All taxes, including those dedicated for specific purposes, are reported asgeneralrevenuesratherthanprogramrevenues. Grantrevenuesinwhicheligibilityrequirementshave notbeen met at year-end are recorded as unearned revenues. Under the terms of grant agreements, the City funds certain programs by a combination of specific cost-reimbursement grants, categorical blockgrants, and general revenues. Thus,whenprogramexpensesareincurred,thereisbothrestrictedandunrestrictednetpositionavailabletofinance theprogram.ItistheCity’spolicytofirstapplycost-reimbursementgrantresourcestosuchprograms,followedby categoricalblockgrants,andthenbygeneralrevenues.
E. BudgetaryData
The City's budgets are adopted as required by the North Carolina General Statutes. An annual budget is adopted for the GeneralFund, Special Revenue Funds,GeneralDebt Service Fund,Enterprise Funds,and InternalService Funds. Allannualappropriationslapseatthefiscal-yearend.
CapitalProjectFunds,includingtheEnterpriseCapitalProjectsFunds,arebudgetedonaprojectoranannualbasis depending on the estimated life of the project. The enterprise fund projects are consolidated with their respective operatingfundforreportingpurposes. AfinancialplanwasadoptedbyCityCouncilaspartoftheAnnualBudget ordinance approval for the Internal Service Funds operation as required by the General Statutes. All budgets are preparedusingthemodifiedaccrualbasisofaccounting.
The legallevelofbudgetarycontrol(the levelatwhichexpendituresmaynotlegallyexceedappropriations)isthe functionlevel,TheCityManagerisauthorizedbythebudgetordinancetomakeunlimitedtransferswithina fund; however,thegoverningboardmustapproveanyrevisionsthatalterthetotalexpendituresofanyfund.
AbudgetcalendarisincludedintheNorthCarolinaGeneralStatutes,whichprescribesthelastdayonwhichcertain stepsofthatbudgetprocedurearetobeperformed.
TheCityfollowstheseproceduresinestablishingthebudgetarydatareflectedinthefinancialstatements:
1.Prior to June 1, the City Manager submits to the City Council a proposed operating budget for the fiscal year commencingJuly1.Theoperatingbudgetincludesproposedexpendituresandthemeansoffinancingthem.
2.Publichearingsareconductedtoobtaintaxpayercomments.
3.PriortoJune30,thebudgetislegallyenactedthroughpassageofanordinance.
4.The City monitors budget performance through the Budget and Evaluation Office. The office monitors revenues and reviews expenditures against the departmental budget and prepares budget amendments as necessary.
F. Assets,Liabilities,DeferredOutflows/InflowsofResourcesandFundBalance
1. DepositsandInvestments
All deposits of the City and of the ABC Board are made in board-designated official depositories and are secured as required by state law (G.S. 159-31). The City and the ABC Board may designate, as an official depository,anybankorsavingsassociationwhoseprincipalofficeislocatedinNorthCarolina. Also,theCity andtheABCBoardmayestablishtimedepositaccountssuchasNOWandSuperNOWaccounts,moneymarket accounts,andcertificatesofdeposit.
Statelaw(G.S.159-30(c))authorizestheCityandtheABCBoardtoinvestinobligationsoftheUnitedStates orobligationsfullyguaranteedbothastoprincipalandinterestbytheUnitedStates;obligationsoftheStateof North Carolina; bonds and notes of any North Carolina local government or public authority; obligations of certain non-guaranteed federal agencies; certain high quality issues of commercial paper and banker's
acceptances;andmutualfundshareswhenthemutualfundiscertifiedbytheLocal GovernmentCommission. The City’s and the ABC Board’s investments are generally reported at fair value. Non-participating interest earningcontractsareaccountedforatcost.
The NCCMT Government Portfolio, a SEC-registered (2a-7) external investment pool, is measured at fair value,whichistheNCCMT’sshareprice. BecausetheNCCMTGovernmentPortfoliohasaweightedaverage maturityoflessthan90days,theyarepresentedasaninvestmentwithamaturityoflessthan6months.
As allowedbyState law, theCity has investedin securities which arecallable andwhich provide for periodic interest rate increases in specific increments until maturity. These investments are reported at fair value as determinedbyquotedmarketprices.
2. CashandCashEquivalents
TheCitypoolsmoneyfromseveralfundstofacilitatedisbursementandinvestmentandtomaximizeinvestment income. Therefore,allcashandinvestmentsareessentiallydemanddepositsandareconsideredcashandcash equivalents. TheABCBoardconsidersallhighlyliquidwithanoriginalmaturityofthreemonthsorlesstobe cashequivalents.
3. RestrictedAssets
Thefinancialstatementsoftheenterprisefundshavebeenconsolidatedtoincludeapplicablereservefundsand capitalprojectfunds. The assets of these funds are classified as restricted because their use is restricted. The unexpended bond proceeds of Combined Enterprise System Revenue Bonds, Limited Obligation Bonds, and GeneralObligationBondsissuedbytheCityareclassifiedasrestrictedassetsfortheenterprisefundsandcapital project fund because their use is completely restricted to the purposes for which the bonds were issued. In addition,customerutilitydepositsintheenterprisefundsandsuretydepositsonerosioncontrolandsubdivision requirements in the General Fund are restricted to the service for which the deposit was collected. The City Council has adopted a strategy to stabilize retail electric utility rates for the benefit of users of the Electric UtilityOperationsFundbycreatingaRateStabilizationReserveincludedinrestrictedcash.
CityofHighPointRestrictedCashandInvestments
GovernmentalactivitiesJune30,2025
GeneralFund
Customerdeposits1,947,392 $
GeneralCapitalProjectsFund
Unexpendedbondproceeds6,865,348 Non-majorgovernmentalfunds
Unexpendedgrantreceipts4,259,221
Blendedcomponentunitdeposits388,862 Internalservicefunds
Unexpendedinstallment financingproceeds
1,551,259
Totalgovernmentalactivities15,012,082
Business-typeactivities
Water&SewerFund
Customerdeposits438,605
Restrictedforcapitalprojects59,963,662
ElectricFund
Customerdeposits1,312,312
Restrictedforcapitalprojects41,341,761
Restrictedforratestabilization36,585,328 Non-majorenterprisefunds
Customerdeposits8,770
Restrictedforcapitalprojects17,401,311
Unexpendedgrantreceipts263,778
Totalbusiness-typeactivities157,315,527
TotalRestrictedCashandInvestments172,327,609 $
4. AdValoremTaxReceivable
Inaccordancewithstate law(G.S.105-347andG.S.159-13(a)),theCityleviesadvaloremtaxesonproperty otherthanmotorvehiclesonJuly1,thebeginningofthefiscalyear. Thelevyisbasedontheassessedvaluation of property located in the City as of January 1, 2024. Value of personal property is established annually, and bystatelaw,realpropertymustbeappraisedatleastonceeveryeightyears. Thelastrevaluationofrealproperty became effective with the 2022 tax levy. The City's current combined tax rate is $.6475. Property taxes are levied July 1, the beginning of the fiscal year, and are due on September 1 (lien date) and payable without penaltyorinterestuntilthesixthofJanuary.
On and after January 6, taxes become delinquent; a lien attaches to the property, and a penalty of 2 percent is assessed. OnFebruary1,interestaccruesattherateof .75percentpermonthuntilpaid. AsallowedbyState law, the City has established a schedule of discounts thatapply to taxes that arepaidprior to the due date. In theCity'sGeneralFund,advaloremtaxrevenuesarereportednetofsuchdiscounts.
The City has arrangements with Guilford, Randolph, Davidson and Forsyth counties for the billing and collectingoftheCity'spropertytaxes.
TheCityispermittedbythegeneralstatutesoftheStatetolevytaxesupto$1.50per$100ofassessedvaluation for general governmental services other than the payment of principal and interest on long-term debt, and in unlimitedamountsforthepaymentofprincipalandinterestonlong-termdebt.
Thetaxratetofinancegeneralgovernmentalservicesotherthanthepaymentofprincipalandinterestonlongtermdebtfor the yearendedJune 30, 2025, was $.6135per $100,whichmeans that the Cityhas atax margin of$.8865per$100.
5. AllowancesforDoubtfulAccounts
All receivables that historically experience uncollectible accounts are shown net of an allowance for doubtful accounts. Thisamountisestimatedbyanalyzingtheoutstandingpercentageofreceivablesforprioryears.
6. NotesReceivable
NotesreceivablefortheCommunityDevelopmentFundrepresentloansmadethroughgrantprogramsthatare collectibleinfuturefiscalyearsandshownnetofanallowanceforestimateduncollectibleaccounts.
7. LeaseReceivable
The City’s lease receivable is measured atthepresentvalue of lease paymentsexpected to be receivedduring the lease term. Under the lease agreement, the City may receive variable lease payments that are dependent upon the lessee’s revenue. The variable payments are recorded as an inflow of resources in the period the paymentisreceived.
The deferred inflow of resources is recorded at the initiation of the lease in an amount equal to the initial recordingoftheleasereceivable.Thedeferredinflowofresourcesisamortizedonastraight-linebasisoverthe termofthelease.
8. InventoryandPrepaidItems
Inventories of the City are valued at cost (first-in, first-out), which approximates market. Inventories in the internal service and enterprise funds and those of the ABC Board consist of expendable supplies held for consumption. Thecostsof these inventories are recorded asanexpense asthe inventories are consumed.The CityofHighPointABCBoardvaluesitsinventoryatreplacementcost.
Certainpaymentstovendorsreflectcostsapplicabletofutureaccountingperiods,arerecordedasprepaiditems inbothgovernment–wideandfundfinancialstatementsandareexpensedastheitemsareused.
9. CapitalAssets
CapitalassetsoftheCityaredefinedasassetswithaninitialcostofmorethanacertainamountandestimated useful life of more than three years. The minimum capitalization cost for all capital assets excluding infrastructureandlandis$5,000.Infrastructurehasacapitalizationthresholdof$50,000.Alllandiscapitalized, regardless of cost. Donated capital assets received prior to June 15, 2015 are recorded at their estimated fair value at the date of donation. Donated capital assets received after June 15, 2015 are recorded at acquisition value.Thecostofnormalmaintenanceandrepairsthatdonotaddtothevalueormateriallyextendtheassets’ livesarenotcapitalized.
The City’s capital assets also include certain right to use assets. These right to use assets arise in association withagreementswheretheCityreportsalease (onlyapplieswhentheCity isthelessee)oragreementswhere the City reports a SBITA in accordance with requirements of GASB Statement No, 87 and GASB Statement No.96,respectively.
The righttouseleaseassetsareinitiallymeasuredatanamountequaltotheinitialmeasurementoftherelated lease liability plus any lease payments made at or prior to the start of the lease term, less lease incentives received from the lessor ator prior to the startof the lease term, and plus ancillary charges necessary to place the lease asset into service. The right to use lease assets are amortized on a straight-line basis over the life of therelatedlease.
The right to use SBITA 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, pluscapitalizableinitialimplementationcostsatthestartofthesubscriptionterm,lessanyincentivesreceived fromtheITsubscriptionvendoratthestartofthesubscriptionterm.Subscriptionpayments,aswellaspayments
for capitalizable implementation costs made before the start of the subscription term should be reported as a prepayment (asset). Such prepayments should be reduced by any incentives received from the same vendor before the start of the subscription term if a right of offset exists. The net amount of the prepayments and incentivesshouldbereportedasanassetorliability,asappropriate,beforethe startofthe subscriptiontermat whichtimetheamountshouldbeincludedintheinitialmeasurementofthesubscriptionasset.Therighttouse subscriptionassetsareamortizedonastraight-linebasisoverthesubscriptionterm.
Depreciationofcapitalassetsisprovidedonthestraight-linemethodovertheirestimatedusefullives:
Buildings 25-50years
Infrastructure 10-40years
Improvements 5-20years
Equipment 3-20years
Computersoftware/Intangibles 5-10years
Capital assets of the ABC Board are recorded at original cost at the time of acquisition. Property, plant, and equipmentdonatedtotheABCBoardreceivedpriortoJune15,2015arerecordedattheirestimatedfairvalue at the date of donation. Donated capital assets received after June 15, 2015 are recorded at acquisition value. Allotherpurchasedorconstructedcapitalassetsarereportedatcostorestimatedhistoricalcost Capitalassets oftheABCBoardaredepreciatedovertheirusefullivesonastraight-linebasisasfollows:
Buildings 20years
Equipment 10years
Furnitureandfixtures 5years
Automobiles
TheCityevaluatesprominenteventsorchangesincircumstancesaffectingcapitalassetstodeterminewhether impairmentofacapitalassethasoccurred.Acapitalassetisgenerallyconsideredimpairedifboth(a)thedecline inserviceutilityofthecapitalassetislargeinmagnitudeand(b)theeventorchangeincircumstanceisoutside the normal life cycle of the capital asset. Impaired capital assets that will no longer be used by the City are reportedatthelowerofcarryingvalueorfairvalue.Impairmentlossesoncapitalassetsthatwillcontinuetobe used by the City are measured using the method that best reflects the diminished service utility of the capital asset.Anyinsurancerecoveriesreceivedasaresultofimpairmenteventsorchangesincircumstancesresulting intheimpairmentofacapitalassetarenettedagainsttheimpairmentloss.
10. DeferredOutflows/InflowsofResources
Inadditiontoassets,thestatementofnetpositionwillsometimesreportaseparatesectionfordeferredoutflows of resources. This separate financial statement element, Deferred Outflows of Resources, represents a consumption of net assets that applies to future periods, and so will not be recognized as an expense or expenditureuntilthen.
In addition to liabilities, the statement of net position will sometimes report a separate section for deferred inflows of resources. This separate financialstatement element, Deferred Inflows of Resources,represents an acquisitionofnetassetsthatappliestofutureperiods,andsowillnotberecognizedasrevenueuntilthen.
11. Long-termObligations
Inthegovernment-widefinancialstatements,andproprietaryfundtypesinthefundfinancialstatements,longterm debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net position. Bond premiums and discounts are deferredandamortizedoverthelifeofthebondsusingthestraight-linemethodthatapproximatestheeffective interest method. Bonds payable are reported net of the applicable bond premiums or discount. Bond issuance costs, except for any prepaid insurance costs, are expensed in the reporting period in which they are incurred. Prepaidinsurancecosts,asapplicable,areexpensedoverthelifeofthedebt.
Infundfinancialstatements,governmentalfundtypesrecognizebondpremiumsanddiscounts,aswellasbond issuancecosts,duringthecurrentperiod.Thefaceamountofdebtissuedisreportedasotherfinancingsources. Premiumsreceivedondebtissuancesarereportedasotherfinancingsourceswhilediscountsondebtissuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received,arereportedasdebtserviceexpenditures.
12.CompensatedAbsences
The City recognizes a liability for compensated absences for leave time that (1) has been earned for services previouslyrenderedby employees,(2)accumulatesandisallowedtobe carriedovertosubsequentyears,and (3) is morelikely than not to be used as time off or settled (for example, paid in cash to the employee or paid toanemployeeflexspendingaccount)duringoruponseparationfromemployment.Basedonthecriteriaabove, threetypesofleavequalifyforliabilityrecognitionforcompensatedabsences–vacation,sickleaveandcomp time. The liability for compensated absences is recorded as incurred in the government-wide and proprietary fund financial statements. A liability for compensated absences is recorded in the governmental funds only if the liability has matured because of employee resignations or retirements. The liability for compensated absencesincludessalary-relatedbenefitswhereapplicable.
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, anexpense andliability for compensated absencesare recordedasthe leaveis earned. The currentportionoftheaccumulatedvacationpayhasbeenestimatedbasedonhistoricaltrends.
Boththe City’sandtheABCBoard'ssickleavepoliciesprovideforanunlimitedaccumulationofearnedsick leave. Sickleave does notvest, but anyunusedsick leave accumulatedat the time ofretirementmay be used inthedeterminationoflengthofserviceforretirementbenefitpurposes.
13.NetPosition/FundBalances
NetPosition
Net position in government-wide and proprietary fund financial statements are classified as net investment in capitalassets,restricted,andunrestricted.
Netinvestmentincapitalassetsrepresentstheportionofnetpositionassociatedwithnonliquid-capital assetslesstheoutstandingcapitalassetrelateddebt.
Restricted net position represents constraints on resources that are either externally imposed by creditors, grantors, contributors, or laws or regulations of other governments or imposed by law throughStatestatute.
Unrestricted net position represents resources with no externally imposed restrictions on use. While the City has allocated portions of unrestricted net position for various purposes, the City has the unrestrictedauthoritytorevisitoraltertheallocationwithmanagerialorCityCouncildecision.
FundBalance
In the governmental fund financial statements, fund balance is composed of five classifications designed to disclosethehierarchyofconstraintsplacedonhowfundbalancecanbespent.
Thegovernmentalfundtypesclassifyfundbalancesasfollows:
NonspendableFundBalance-Thisclassificationincludesamountsthatcannotbespentbecausetheyare (a) notinspendableformor(b)legallyorcontractuallyrequiredtobemaintainedintact.
Prepaid items – represents thatportion of fund balance inthe governmentalfunds forprepaid items, such aspostageandotherprepaidexpenses.
Inventories – portion of fund balance that is not an available resource because it represents the year end balanceofendinginventories,whicharenotspendableresources.
Lease Receivable, net – portion of fund balance that is not an available resource because it is not in spendableform.Thereportedamountiscalculatedbyreducingtheleasereceivablebytherelateddeferred inflowofresources.
Restricted Fund Balance - This classification includes amounts that are restricted to specific purposes externallyimposedbycreditorsorimposedbylaw.
RestrictedforStabilizationbyStateStatute-NorthCarolinaG.S.159-8prohibitsunitsofgovernmentfrom budgetingorspendinga portionoftheirfundbalance.Thisisone ofseveralstatutesenactedbytheNorth Carolina State Legislature in the 1930’s that were designed to improve and maintain the fiscal health of localgovernmentunits.RestrictedbyStatestatute(RSS),iscalculatedattheendofeachfiscalyearforall annuallybudgetedfunds.ThecalculationinG.S.159-8(a)providesaformulafordeterminingwhatportion offundbalanceisavailable forappropriation.Theamountoffundbalancenotavailable for appropriation is what is known as “restricted by State statute”. Appropriated fund balance in any fund shall not exceed thesumofcashandinvestmentsminusthesumofliabilities,encumbrances,anddeferredrevenuesarising 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 RSSisincludedasacomponentofRestrictedNetPositionandRestrictedFundBalanceonthefaceofthe BalanceSheet.
Restricted for community and economic development – portion of Fund Balance Restricted as to control bytheCity’sblendedcomponentunits(FHP).
Restricted for grant programs – portion of fund balance restricted by various granting agencies for expenditures for public safety, planning and community development, transportation, and culture and recreation.
Restricted for transportation – portion of fund balance restricted by revenue source for sidewalk and turn lane construction improvements. This amount does not include any balance of unexpended Powell Bill fundswhichwouldbedisclosedwithitsownfundbalancecomponent.
Restrictedfordebtservice–portionoffundbalanceoftheGeneralDebtServiceFundrestrictedbyrevenue sourcetoservicethedebtservicepaymentsofgeneralgovernmentdebt.
Restricted for capital projects – portion of fund balance restricted by revenue source for certain capital projectpurposesasdefinedbyapplicablebondandotherdebtinstruments.
Committed Fund Balance - This classification of fund balance can only be used for specific purposes as authorizedinaformalactionpriortotheendofthefiscalyearutilizinganordinanceorordinanceamendment as approved and imposed by a majority vote by quorum of the City of High Point’s City Council (the highest levelofdecision-makingauthority). Onceadopted,thelimitationimposedbytheordinanceisbindingwiththe force of local law and remains in place until a similar action is taken (the adoption of another ordinance) to removeorrevisethelimitation.
Committedforpublicsafety–portionoffundbalanceavailableforappropriationthathasbeencommitted by City Council for public safety in order to service future law enforcement officer’s special separation allowancepensionobligations.
Committedforeconomicdevelopment–portionoffundbalanceavailableforappropriationthathasbeen committedbyCityCouncilforeconomicdevelopmentincentivesandreimbursements.
Assigned Fund Balance - This classification of fund balance has been designated to be used for specific purposes. Fiscal policies formally adopted by the City Council allow the governing body to take informal action through resolution to assign a portion of fund balance for a particular purpose or program and extends similar authority to the City Manager. Assigned fund balances lapse atthe end of the fiscal year unless these assignmentsareextended.
Assigned for subsequent year's expenditures - portion of fund balance that is appropriated in the adopted 2025-2026budgetordinancethatisnotalreadyclassifiedinrestrictedorcommitted.
Assigned for general government – portion of fund balance that has been budgeted for City Hall and redevelopmentprojects.
Assigned for public safety – portion of fund balance that has been budgeted for High Point Police CommunityDayactivities.
Assigned for culture and recreation - portion of fund balance that has been budgeted for lighting system improvements at the High Point Theatre as well as Parks and Recreation improvements related to the PiedmontEnvironmentalCenter.
Assigned for public services and transportation – portion of fund balance that has been budgeted by the CityCouncilforvariousfuturetransportationandpublicservicescapitalprojects.
AssignedfundbalancesJune30,2025
Subsequentyear'sexpenditures1,994,529 $
Generalgovernment(EconomicDevelopmentAlliance)20,000
Publicsafety(PoliceCommunityDay)8,193
Cultureandrecreation(Theatre)116,274
Cultureandrecreation(ParksandRecreation)18,991
Publicservicesandtransportation(Transportation)51,245
Publicservicesandtransportation(PublicServices)14,063
Totalassignedfundbalances2,223,295 $
Unassigned Fund Balance - This is the portion of fund balance which has not been restricted, committed or assigned to specific purposes or other funds. The General Fund is the only fund that reports a positive unassignedfundbalance.
TheCityofHighPointhasarevenuespendingpolicyforprogramsandactivitieswithmultiplerevenuesources. The Financial ServicesDirector willuse resourcesin the following hierarchy:federalfunds, state funds, bond and/or installment contract proceeds, local non-City funds, City funds. For purposes of fund balance classification, expenditures are to be spent from restricted fund balance first, followed in order by committed fundbalance,assignedfundbalance,andlastlyunassignedfundbalance. TheFinancialServicesDirectorand CityManagerhavetheauthoritytodeviatefromthispolicywhereitisinthebestinterestoftheCity.
TheCityofHighPointhasalsoadoptedaminimumfundbalancepolicyfortheGeneralFundwhichprovides that the City will maintain an available fund balance at least equal to or greater than 10% of budgeted expenditures.TheCitymayfromtimetotimefallbelowthisamount.Insuchcircumstances,Councilwilladopt a plan to restore available fund balances to the policy level within 36 months, or other such appropriate time period.
14. DefinedBenefitCost-SharingandSingleEmployerPlans
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Local GovernmentEmployees’RetirementSystem(LGERS)andadditionsto/deductionsfromLGERS’fiduciarynet positionhavebeendeterminedonthesamebasisastheyarereportedbyLGERS. Forthispurpose,planmember
contributionsarerecognizedintheperiodinwhichthecontributionsaredue. TheCityofHighPoint’semployer contributions are recognized when due and the City of High Point has a legal requirement to provide the contributions. Benefits and refunds are recognized when due and payable in accordance with the terms of LGERS. Investmentsarereportedatfairvalue.
The City participates in one other post-employment benefit plan (OPEB), for health insurance (the Plan). The City currently finances the Plan following a pay-as-you-go approach, paying an amount each year equal to premiums related to the coverage. For purposes of measuring the net OPEB liability, deferred outflows and inflow of resources related to OPEB, and OPEB expense have been determine on the sabe basis as they are reported by the Plan. For this purpose, the Plan recognizes benefit payments when due and payable in accordancewiththebenefitterms.
The City also administers a single-employer defined benefit pension plan that provides retirement benefits to the City’s sworn law enforcement. This Law Enforcement Special Separation Allowance (LEOSSA) Plan is consolidated with the General Fund for reporting in compliance with GASB Statement No. 73 as it is not a defined trust. The full accrual impacts of the pension liability, deferred outflows of resources and deferred inflowsofresourcesrelatedtopensions,andpensionexpensearecapturedonthegovernment-widestatements.
For purposes of measuring the net pension expense, information about the fiduciary net position of the Firefighters’ and Rescue Squad Workers’ Pension Fund (FRSWPF) and additions to/deductions from FRSWPF’s fiduciary net position have been determined on the same basis as they are reported by FRSWPF. Forthispurpose,benefitpayments(includingrefundsofemployeecontributions)arerecognizedwhendueand payableinaccordancewiththebenefitterms. Investmentsarereportedatfairvalue.
G. Revenues,ExpendituresandExpenses
1. GrantRevenue
The City recognizes revenues (net of estimated uncollectible amount, if any), when all applicable eligibility requirements, including time requirements, are met. Resources transmitted to the City before meeting the eligibilityrequirementsarerecordedandreportedasunearnedrevenues.
2. Investmentincome
TheCityrecognizesinvestmentincomefrompooledcashandinvestmentsasrevenuesinthe individualfunds based on the percentage of a fund’s average monthly investment in pooled cash and investments to the total average monthly-pooled equity in pooled cash and investments. All investment earnings are allocated and recordedmonthlyineachindividualfund.
3. InterfundTransactions
Interfundtransactionsareeitherservicesprovided,reimbursementsortransfers.Servicesthataredeemedtobe reasonablyequivalentinvaluearetreatedasrevenuesandexpenditures/expenses.Reimbursementsoccurwhen one fund incurs the cost, charges the appropriate benefiting fund, and reduces its related cost as a reimbursement, if material. All other interfund transactions are presented as transfers. Transfers within governmentalactivitiesandbusiness-typeactivitiesareeliminateduponconsolidation.
TheCityalsotransferscapitalassetsbetweenfundsasneeded.Thesetypesoftransfersarereflectedaslosson disposalinthefundmakingthetransferandcapitalcontributionsinthefundreceivingtheassets.
Also,theABCBoardmakesquarterlytransferstotheCity'sGeneralFund. ThesetransfersrepresenttheCity's portionoftheBoard'ssurplusesthattheABCBoardisrequiredbyStatestatutetodistributetotheCity.These transactions are considered external transactions – that is, revenues and expenses. The City makes periodic paymentstoFHPforoperationalpurposes.
H. UseofEstimates
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, deferred outflows, liabilities, and deferred inflows and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenuesandexpenditures/expensesduringthereportingperiod.Actualresultscoulddifferfromthoseestimates.
I. ReconciliationofGovernmentalFundstoGovernmentWideActivities
Thepreparationoffinancialstatementsrequiressummarizingcertaindetailsreconcilingthemodifiedaccrualbasis of accounting for the governmental funds to the full accrual basis presented for governmental activities. The following liabilities in governmental funds are summarized to the reconciliation on page 20 of the financial statements.
Accruedinterestpayable
$1,014,482
Compensatedabsences15,121,778
Installmentcontractspayable2,561,446
Leases4,225,522
SBITA2,129,858
LEOSSApensionliability16,714,613
LGERSpensionliability47,251,435
OPEBliability10,022,277
Loanspayable3,528,000
Limitedobligationbondspayable46,942,000
Generalobligationbondspayable53,381,142
Premiumongeneralobligationbonds2,164,172
Componentunitdeferredlossonrefunding(31,500)
Componentunitleases
Totalliabilitiesnotpayableincertainperiod205,063,121
Note2.DetailNotesonAllFunds A. Assets
1. Deposits
AllthedepositsoftheCityandtheABCBoardareeitherinsuredorcollateralizedbyusingoneoftwomethods. Under the Dedicated Method, all deposits that exceed the federal depository insurance coverage level are collateralized with securities held by the City's or the ABC Board's agents in these units’ names. Under the PoolingMethod,which isacollateralpool, alluninsureddepositsarecollateralizedwithsecuritiesheldbythe State Treasurer’s agent in the name of the State Treasurer. Since the State Treasurer is acting in a fiduciary capacity for the City and the ABC Board, these deposits are considered to be held by the City's and the ABC Board’sagentsintheirnames.Theamountofthepledgedcollateralisbasedonanapprovedaveragingmethod fornon-interestbearingdepositsandtheactualcurrentbalanceforinterest-bearingdeposits.Depositoriesusing the Pooling Method report to the State Treasurer the adequacy of their pooled collateral covering uninsured deposits. The State Treasurer does not confirm this information with the City, the ABC Board or the escrow agent.BecauseoftheinabilitytomeasuretheexactamountsofcollateralpledgedfortheCityortheABCBoard underthePoolingMethod,thepotentialexistsforundercollateralization,andthisriskmayincreaseinperiods of high cash flows. However, the State Treasurer of North Carolina enforces strict standards of financial stabilityforeachdepositorythatcollateralizespublicdepositsunderthePoolingMethod.TheCityandtheABC Board have no formal policy regarding custodial credit risk for deposits, but rely on the State Treasurer to enforcestandards of minimum capitalization for all pooling methodfinancialinstitutions andto monitor them forcompliance
TheCityandtheABCBoardcomplywiththeprovisionsofG.S.159-31whendesignatingofficialdepositories andverifyingthatdepositsareproperlysecured.
AtJune30,2025theCity’sdepositshadacarryingamountof$31,740,949andabankbalanceof$31,036,123. ThecarryingamountofdepositsfortheABCBoardwas$2,654,113andthebankbalancewas$2,394.955. Of the bank balances, the City and the ABC Board had $250,000 and $484,136 respectively, covered by federal depositoryinsuranceandtheremainderof$30,786,123and$1,897,190respectively,wascoveredbycollateral heldunderthepoolingmethod. AtJune30,2025,theCityandtheABCBoardheldpettycashfundsof$48,198 and$21,250,respectively.
AtJune30,2025theFHPhaddepositswithacarryingamountof$388,862andcoveredbyfederaldepository insurance.
2. Investments
AtJune30,2025,theCity’sinvestmentbalanceswereasfollows:
ValuationBookMaturityRating
MeasurementValueat
Method6/30/2025
GovernmentAgenciesFairValueLevel2131,634,040$1to5YearsAAA/Aaa
NCCapitalManagementTrustGovernmentPortfolioFairValueLevel1236,017,135N/AAAAm
$367,651,175
Allinvestmentsaremeasuredusingthemarketapproach:usingpricesandotherrelevantinformationgenerated bymarkettransactionsinvolvingidenticalorcomparableassetsoragroupofassets.
Level of fair value hierarchy: Level 1: Debt securities valued using directly observable, quoted prices (unadjusted) in active markets for identical assets. Level 2: Debt Securities are valued using a matrix pricing technique.Matrixpricingisusedtovaluesecuritiesbasedonthesecurities’benchmarkquotedprices.
InterestRateRisk.Asameansoflimitingitsexposuretofairvaluelossesarisingfromrisinginterestrates,the City’s investment policy limits at least half of the City’s investment portfolio to maturities of less than 12 months. Also, the City’s investment policy requires purchases of securities to be laddered with staggered maturitydatesandlimitsallsecuritiestoafinalmaturityofnomorethanfiveyears.
Credit risk. The City’s investment policy limits the City’s investments to the provisions of G.S. 159-30 and restricts the purchase of securities to the highest possible ratings whenever particular types of securities are rated. At June 30, 2025, the investments in the U.S. Government Agencies were rated AAA by Standard & Poor’s and Aaa by Moody’s Investors Service. The City’s investment in the NC Capital Management Trust GovernmentPortfoliocarriedacreditratingofAAAbyStandard&Poor’sasofJune30,2025.
Custodialcreditrisk.Foraninvestment,thecustodialcreditriskistheriskthatintheeventofthefailureofthe counterparty,theCitywillnotbeabletorecoverthevalueofitsinvestmentsorcollateralsecuritiesthatarein the possessionofanoutside party. TheCity’sinvestmentpolicy requires all book-entry investmentsecurities to be in the City’s name and delivered versus payment to a City-named third-party custodian. Certificated securitiesareheldinthecustodyoftheFinancialServicesDirector.
ConcentrationofCreditRisk.TheCity’sinvestmentpolicyplaceslimitsontheamountthattheCitymayinvest inanyonetypeofsecurityandalsoanyoneissuer.ThereisnolimitfordirectobligationsoftheU.S.Treasury orinvestmentsinmutualfundscertifiedbytheDepartmentofState Treasurer(NCCMT).Securitiesissuedby agenciesoftheU.S.governmentarelimitedtoa maximumof75%oftheportfolio andindividuallylimitedto 30%concentrationtoanyonegovernmentagency. Commercialpaperandbankersacceptancesmaynotexceed 30% and 20%, respectively, of the portfolio. Policy also limits investments to 2% of the portfolio for any individual non-governmental issuers. More than 5% of the City’s investments are in U.S. Government Agencies which are primarily FederalHome Loan Mortgage Corporation (4.67%), FederalFarmCreditBank (9.36%),andFederalHomeLoanBank(15.20%)securities.
3. Receivables-AllowancesforDoubtfulAccounts
The amountspresentedintheStatementsofNetPosition,GovernmentalFundsBalanceSheetandProprietary FundStatementofNetPosition,arenetofthefollowingallowancesfordoubtfulaccounts:
GeneralFund:
Taxesreceivable2,671,313 $
Accountsreceivable1,760,617
TotalGeneralFund4,431,930
SpecialRevenueFund: NotesandLoansreceivable786,731 Accountsreceivable3,669
TotalSpecialRevenueFunds790,400
WaterandSewerFund: Accountsreceivable671,165
ElectricFund: Accountsreceivable1,614,350
MassTransitFund Taxesreceivable235,060
SolidWasteFund: Accountsreceivable118,826
StormWaterFund: Accountsreceivable41,924
TotalAllowances7,903,655 $
4. CapitalAssets
AsummaryofchangesincapitalassetsfortheyearendedJune30,2025,follows:
BeginningIncreases&Decreases&Ending BalanceReclassificationsReclassificationsBalance
Governmentalactivities:
Capitalassetsnotbeingdepreciated
Landandothernondepreciablecapitalassets................40,688,266$787,471$1,380$41,474,357 $
Intangibles................................................................115,889--115,889
Constructioninprogress............................................7,712,97011,693,3882,738,49916,667,859
Totalcapitalassetsnotbeingdepreciated48,517,12512,480,8592,739,87958,258,105
Capitalassetsbeingdepreciated
Buildingsandotherimprovements...............................185,366,1121,263,468-186,629,580
Intangibles................................................................329,9347,400-337,334
Equipment................................................................105,531,61612,545,4225,818,862112,258,176 Infrastructure...........................................................597,714,8194,948,86879,794602,583,893
Totalcapitalassetsbeingdepreciated888,942,48118,765,1585,898,656901,808,983
Lessaccumulateddepreciationfor: Buildingsandotherimprovements.............................69,297,3976,357,279-75,654,676
Totalaccumulateddepreciation630,780,90724,438,292$5,622,192$649,597,007
Totalcapitalassetsbeingdepreciated(net)...................258,161,574
Righttouseassets: Leaseequipment........................................................8,324,259199,8981,396,5877,127,570
Leasedbuildings........................................................-45,199-45,199 ITsubscriptions........................................................4,712,9785,196,8232,349,4387,560,363
Totalcapitalassetsbeingamortized...........................13,037,2375,441,9203,746,02514,733,132
Lessaccumulatedamortizationfor:
Righttouseassets: Leaseequipment....................................................2,255,0601,459,0501,396,5872,317,523
Leasedbuildings......................................................-7,796-7,796 ITsubscriptions......................................................3,062,2751,922,6432,041,8602,943,058
Totalaccumulatedamortization..............................5,317,3353,389,4893,438,4475,268,377
Totalcapitalassetsbeingamortized(net).....................7,719,902 9,464,755
Governmentalactivitiescapitalassets,net.......................314,398,601 $ $319,934,836
BeginningIncreases&Decreases&Ending BalanceReclassificationsReclassificationsBalance
Business-typeactivities:
Capitalassetsnotbeingdepreciated
Landandothernondepreciablecapitalassets................14,743,543$2,026,261 $ $-16,769,804 $
Constructioninprogress............................................35,761,93623,322,52423,070,13036,014,330
Totalcapitalassetsnotbeingdepreciated...................50,505,47925,348,78523,070,13052,784,134
Capitalassetsbeingdepreciated
Buildingsandotherimprovements...............................113,967,45313,068,29379,530126,956,216 Equipment................................................................28,018,1543,616,3552,209,00029,425,509 Infrastructure...........................................................702,353,53520,442,531630,177722,165,889
Intangibles................................................................6,305,707117,140-6,422,847
Capitalassetsbeingdepreciated................................850,644,84937,244,3192,918,707884,970,461
Lessaccumulateddepreciationfor:
Buildingsandotherimprovements.............................85,550,8672,566,250-88,117,117 Equipment..............................................................19,381,6871,665,3442,201,18918,845,842 Infrastructure.........................................................342,068,20518,917,276-360,985,481
Intangibles..............................................................4,988,337362,770-5,351,107
Capitalassetsbeingamortized
Duringthefiscalyear,assetsweretransferredbetweenbusiness-typeactivitiesandgovernmentalactivitiesintheamountof $5,230 (with accumulated depreciation of $5,230). During the fiscal year, assets were transferred between governmental activitiesintheamountof$265,167(withaccumulateddepreciationof$128,584).
Depreciationexpensewaschargedtofunctions/programsoftheprimarygovernmentasfollows:
DepreciationAmortization Governmentalactivities:20252025
GeneralGovernment.................................................11,673,303$1,858,200 $ PublicSafety............................................................3,398,105862,828 PublicServicesandTransportation.............................3,773,040PlanningandCommunityDevelopment........................143,79761,342 CultureandRecreation...............................................5,313,229607,119
Totalgovernmentalactivitiesdepreciationexpense24,301,474$3,389,489 $
Business-typeactivities:
WaterandSewer.........................................................16,784,079 $ $37,131 Electric......................................................................3,548,332110,769 MassTransit...............................................................1,042,619192,281 ParkingFacilities.........................................................122,223LandfillFacilities.........................................................1,242,90896,960 StormWaterFacilities..................................................771,479-
Totalbusiness-typeactivitiesdepreciationexpense23,511,640$437,141 $
CapitalassetactivityfortheABCBoardfortheyearendedJune30,2025,wasasfollows: BeginningIncreases&Decreases&Ending CapitalassetsnotbeingdepreciatedBalanceReclassificationsReclassificationsBalance Land689,656 $$--
Capitalassetsbeingdepreciated
Buildings3,266,112324,53115,4443,575,199
Equipmentandvehicles1,891,214181,91419,9192,053,209
Leaseholdimprovements571,1908,1131,286578,017
Constructioninprogress36,99750,76936,99750,769
Capitalassetsbeingdepreciated...............5,765,513$565,327
Lessaccumulateddepreciationfor:
Buildings2,719,192111,85415,4442,815,602
Equipmentandvehicles1,376,600211,37519,9191,568,056
Leaseholdimprovements90,87273,6461,286163,232
Totalaccumulateddepreciation.............4,186,664396,875
Totalcapitalassetsbeingdepreciated(net).1,578,849
AsummaryofleaseassetsfortheABCBoardatJune30,2025follows:
BeginningIncreases&Decreases&Ending Righttouseassets:BalanceReclassificationsReclassificationsBalance
Buildings5,098,923$369,804$112,209$5,356,518 $
Accumulatedamortization893,452423,704112,2091,204,947
TotalrighttouseassetsABCBoard(net)4,205,471$(53,900)$-$4,151,571 $
B. Liabilities
1. Accountspayable,contractspayableandaccruedexpensesasofJune30,2025consistedofthefollowing: AccountsAccruedPayroll PayableandExpensesTotal
GovernmentalActivities
General.............................................4,293,423$5,041,084$9,334,507 $
GeneralCapitalProjects......................1,474,471-1,474,471
OtherNon-majorgovernmentalfunds..1,280,57035,7201,316,290 InternalServiceFund.........................3,929,61493,4534,023,067
Totalgovernmentalactivities.............10,978,0785,170,25716,148,335
Business-TypeActivities
WaterandSewer...............................2,842,621632,7593,475,380 Electric.............................................10,630,701710,72911,341,430
OtherNon-majorenterprisefunds........825,265569,2821,394,547
Totalenterprisefunds......................14,298,5871,912,77016,211,357 TotalPrimaryGovernment....................25,276,665$7,083,027$32,359,692 $
2. PensionPlanandOtherPostemploymentBenefits
a. LocalGovernmentalEmployees'RetirementSystem
PlanDescription. TheCityofHighPointisaparticipatingemployerinthestatewideLocalGovernmental Employees’ RetirementSystem (LGERS), a cost-sharing multiple-employer definedbenefit pension plan administeredbytheStateofNorthCarolina. LGERSmembershipiscomprisedofgeneralemployeesand local law enforcement officers (LEOs) of participating local governmental entities. Article 3 of G.S. Chapter128assignstheauthoritytoestablishandamendbenefitprovisionstotheNorthCarolinaGeneral Assembly. Management of the plan is vested in the LGERS Board of Trustees, which consists of 13 members–nineappointedbytheGovernor,oneappointedbytheStateSenate,oneappointedbytheState House of Representatives, and the State Treasurer and State Superintendent, who serve as ex-officio members. The Local Governmental Employees’ Retirement System is included in the Annual Comprehensive Financial Report (ACFR) for the State of North Carolina. The State’s ACFR includes financialstatementsandrequiredsupplementaryinformationforLGERS.Thatreportmaybe obtainedby writing to the Office of the State Controller, 1410 Mail Service Center, Raleigh, North Carolina 276991410,orbycalling(919)981-5454,oratwww.osc.nc.gov.
BenefitsProvided. LGERSprovidesretirementandsurvivorbenefits. Retirementbenefitsaredetermined as 1.85% of the member’saverage final compensation times the member’s yearsof creditable service. A member’saveragefinalcompensationiscalculatedastheaverageofamember’sfourhighestconsecutive yearsofcompensation. Planmembersareeligibletoretirewithfullretirementbenefitsatage65withfive years of creditable service, at age 60 with 25 years of creditable service, or at any age with 30 years of creditable service. Plan members are eligible to retire with partial retirement benefits at age 50 with 20 years of creditable service or at age 60 with five years of creditable service (age 55 for firefighters). Survivor benefits are available to eligible beneficiaries of members who die while in active service or within 180 days of their last day of service and who have either completed 20 years of creditable service regardless ofage(15yearsof creditable servicefor firefightersandrescue squadmemberswhoarekilled inthelineofduty)orhavecompletedfiveyearsofserviceandhavereachedage60. Eligiblebeneficiaries may elect to receive a monthly Survivor’s Alternate Benefit for life or a return of the member’s contributions. The plan does not provide for automatic post-retirement benefit increases. Increases are contingentuponactuarialgainsoftheplan.
LGERSplanmemberswhoareLEOsareeligible toretirewithfullretirementbenefitsatage55withfive years of creditable service as an officer, or at any age with 30 years of creditable service. LEO plan membersareeligible toretirewithpartialretirementbenefitsatage50with15yearsofcreditableservice as an officer. Survivor benefits are available to eligible beneficiaries of LEO members who die while in active serviceorwithin 180days oftheir last dayof service andwho also have eithercompleted20years of creditable service regardless of age, or have completed 15 years of service as a LEO and have reached age 50, or have completed five years of creditable service as a LEO and have reached age 55, or have completed 15 years ofcreditable service asa LEOif killed inthe lineofduty. Eligible beneficiaries may electtoreceiveamonthlySurvivor’sAlternateBenefitforlifeorareturnofthemember’scontributions.
Contributions. Contribution provisions are established by General Statute 128-30 and may be amended only by the North Carolina General Assembly. City of High Point employees are required to contribute 6% of their compensation. Employer contributions are actuarially determined and set annually by the LGERS Boardof Trustees. TheCity ofHigh Point’s contractually required contribution rate for the year ended June 30, 2025, was 15.04% of compensation for law enforcement officers and 13.64% for general employees and firefighters, actuarially determined as an amount that, when combined with employee contributions,isexpectedtofinancethecostsofbenefitsearnedbyemployeesduringtheyear. The ABC Board's contractually required contribution rate for the year ended June 30, 2025, was 18.58%. Contributions to the pension plan from the City of High Point and ABC Board were $13,835,800 and $402,842respectively,fortheyearendedJune30,2025.
Refunds of Contributions – City employees who have terminated service as a contributing member of LGERS,mayfileanapplicationforarefundoftheircontributions. Bystatelaw,refundstomemberswith at least five years of service include 4% interest. State law requiresa 60-day waitingperiod after service termination before the refund may be paid. The acceptance of a refund payment cancels the individual’s righttoemployercontributionsoranyotherbenefitprovidedbyLGERS.
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions
AtJune30,2025,theCityreportedaliabilityof$65,736,556foritsproportionateshareofthenetpension liabilityandthe ABCBoardreportedaliability of$1,272,925. Thenetpensionliability wasmeasuredas of June30, 2024. Thetotalpension liability usedto calculate the netpension liability wasdeterminedby anactuarialvaluationasofDecember31,2023. The totalpensionliabilitywasthenrolledforwardtothe measurement date of June 30, 2024 utilizing update procedures incorporating the actuarial assumptions. The City’s proportion of the net pension liability was based on a projection of the City’s long-term share offuturepayrollcoveredbythepensionplan,relativetotheprojectedfuturepayrollcoveredbythepension planofallparticipatingLGERSemployers,actuariallydetermined.AtJune30,2025(measurementdate), the City’s proportionwas0.97511%,whichwas adecrease of 0.03683% fromits proportion measuredas ofJune30,2024.TheABCBoard’sproportionwas0.01888%.
FortheyearendedJune30,2025,theCityrecognizedpensionexpenseof$19,348,963andtheABCBoard recognized pension expense of $404,458. At June 30, 2025, the City reported deferred outflows of resourcesanddeferredinflowsofresourcesrelatedtopensionsfromthefollowingsources:
DeferredOutflows ofResources
DeferredInflows ofResources
Differencesbetweenexpectedandactualexperience11,519,534 $ $77,453 Changesofassumptions-Netdifferencebetweenprojectedandactualearningson pensionplaninvestments8,936,846ChangesinproportionanddifferencesbetweenCity contributionsandproportionateshareofcontributions331,475888,932 Citycontributionssubsequenttothemeasurementdate13,835,800Total34,623,655 $ $966,385
$13,835,800 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a decrease of the net pension liabilityintheyearendedJune30,2026. Otheramountsreportedasdeferredoutflowsofresourcesrelated topensionswillberecognizedinpensionexpenseasfollows:
YearendedJune30:
20266,099,889 $
202712,762,780
20281,969,304
2029(1,010,503)
Total19,821,470 $
The ABC Board reported deferred outflows of resource and deferred outflows and inflows of resources relatedtopensionsfromthefollowingsources:
DeferredOutflows ofResources
DeferredInflows ofResources
Differencesbetweenexpectedandactualexperience223,065 $ $1,500
Changesofassumptions--
Netdifferencebetweenprojectedandactualearningson pensionplaninvestments173,053ChangesinproportionanddifferencesbetweenBoard contributionsandproportionateshareofcontributions6,73126,055
Boardcontributionssubsequenttothemeasurementdate296,236Total699,085 $ $27,555
Amounts totaling$296,236reported as deferred outflows of resources related to pensions resulting from Boardcontributions subsequent to the measurement date, will be recognized asa decrease ofthe netpensionassetintheyear endedJune 30,2026.Other amounts reported asdeferred outflows (inflows) of resources relatedto pensions willberecognized inpensionexpenseasfollows:
YearendedJune30:
2026117,348 $ 2027244,509 202833,004 2029(19,567) Total375,294 $
Actuarial Assumptions. The total pension liability in the December 31, 2021 actuarial valuation was determinedusingthefollowingactuarialassumptions,appliedtoallperiodsincludedinthemeasurement:
Inflation2.50%
Salaryincreases3.25%to8.25%,includinginflationand productivityfactor
Investmentrateofreturn6.5%percent,netofpensionplaninvestment expense,includinginflation
The plan currently uses mortality tables that vary by age, gender, employee group (i.e., general, law enforcementofficer)andhealthstatus(i.e.disabledandhealthy). Thecurrentmortalityratesarebasedon published tables and based on studies that cover significant portions of the U.S. population. The healthy mortalityratesalsocontainaprovisiontoreflectfuturemortalityimprovements.
TheactuarialassumptionsusedintheDecember31,2023valuationwerebasedontheresultsofanactuarial experiencestudyfortheperiodJanuary1,2016throughDecember31,2020. Future ad hoc COLA amounts are not considered to be substantively automatic and are, therefore, not includedinthemeasurement.
The projected long-term investment returns and inflation assumptions are developed through review of current and historical capital markets data, sell-side investment research, consultant whitepapers, and historical performance of investment strategies. Fixed income return projections reflect current yields acrosstheU.S.Treasuryyieldcurveandmarketexpectationsofforwardyieldsprojectedandinterpolated formultipletenorsandovermultipleyearhorizons.
Globalpublicequityreturnprojectionsareestablishedthroughanalysisoftheequityriskpremiumandthe fixed income return projections. Other asset categories and strategies’ return projections reflect the foregoingandhistoricaldataanalysis. Theseprojectionsarecombinedtoproducethelong-termexpected rateofreturnbyweightingtheexpectedfuturerealratesofreturnbythetargetassetallocationpercentage andbyaddingexpectedinflation. Thetargetallocationandbestestimatesofarithmeticrealratesofreturn foreachmajorassetclassasofJune30,2025aresummarizedinthefollowingtable:
Theinformationaboveisbasedon30-yearexpectationsdevelopedwiththeconsultingactuaryfortheasset, liability,andinvestmentpolicystudyfortheNorthCarolina RetirementSystems,includingLGERS. The long-termnominalratesofreturnunderlyingtherealratesofreturnarearithmeticannualizedfigures. The realrates of return are calculated from nominal rates by multiplicatively subtracting a long-term inflation assumptionof 3.00%. Allratesofreturnandinflationareannualized.
Discount rate. Thediscountrateusedtomeasurethetotalpensionliabilitywas6.50%. Theprojectionof cashflowsusedtodeterminethediscountrateassumedthatcontributionsfromplanmemberswillbemade at the currentcontribution rate and thatcontributions fromemployerswill be made atstatutorily required rates, actuarially determined. Based on these assumptions, the pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments of the current plan members. Therefore,the long-termexpectedrateofreturnonpensionplaninvestmentswasappliedto allperiodsof projectedbenefitpaymentstodeterminethetotalpensionliability.
Sensitivity of the City’s proportionate share of the net pension liability to changes in the discount rate. The following presents theCity’s proportionate share ofthenet pension liability calculated using the discount rateof6.50%,aswellaswhattheCity’sproportionateshareofthenetpensionassetornetpensionliability would be if it were calculated using a discount rate that is one percentage point lower (5.50%) or one percentagepointhigher(7.50%)thanthecurrentrate.
Pension plan fiduciary net position. Detailed information about the pension plan’s fiduciary net position isavailableintheseparatelyissuedAnnualComprehensiveFinancialReport(ACFR)fortheStateofNorth Carolina.
b.LawEnforcementOfficers’SpecialSeparationAllowance
1. PlanDescription.
TheCityofHighPointadministersapublicemployeeretirementsystem(the“SeparationAllowance”), asingle-employerdefinedbenefitpensionplanthatprovidesretirementbenefitstotheCity’squalified swornlawenforcementofficersundertheageof62whohavecompletedatleast30yearsofcreditable service or have attained 55 years of age and have completed five or more years of creditable service. The SeparationAllowanceisequalto.85%oftheannualequivalentofthebase rateofcompensation mostrecentlyapplicable totheofficerforeachyearofcreditable service. Theretirementbenefitsare not subjectto any increases in salary or retirement allowances thatmay be authorizedby the General Assembly. Article 12D of G.S. Chapter 143 assigns the authority to establish and amend benefit provisionstotheNorthCarolinaGeneralAssembly.
TheSeparationAllowancecoversallfull-timelawenforcementofficersoftheCity. AtJune30,2024, theSeparationAllowance’smembershipconsistedof:
Retireescurrentlyreceivingbenefits............68 Activeplanmembers.................................216 Total........................................................284
2. SummaryofSignificantAccountingPolicies.
BasisofAccounting. TheCityhaschosentofundtheSeparationAllowanceonapay-as-you-gobasis. Pension expenditures are made from the General Fund, which is maintained on the modified accrual basis of accounting. Benefits are recognized when due and payable in accordance with terms of the plan.
TheSeparationAllowancehasnoassetsaccumulatedinatrustthatmeetsthecriteriawhichare outlinedinGASBStatement73.
3. ActuarialAssumptions
TheentryageactuarialcostmethodwasusedintheJune30,2024valuation.Thetotalpensionliability in the June 30, 2024 actuarial valuation was determined using the following actuarial assumptions, appliedtoallperiodsincludedinthemeasurement:
to 7.75 percent, including inflation and productivityfactor
The discount rate is based on the yield of the Bond Buyer 20-Bond GO index as of December 31, 2024.Mortality rates arebased on the Pub-2010Mortality tables, projected forwardgenerationally fromthevaluationdateusingMP-2019.
4. Contributions.
The City is required by Article 12D ofG.S. Chapter 143to provide these retirement benefits and has chosen to fund the amounts necessary to cover the benefits earned on a pay as you go basis through
appropriations made in the General Fund operating budget. There were no contributions made by employees. TheCity’sobligation to contribute to this plan is establishedandmaybeamendedbythe North Carolina GeneralAssembly. The City has chosento setaside additional funds for future costs within the fund balance in the General Fund. During the fiscal year ended June 30, 2023, the City committedanadditional$50,000towardthereductionoftheaccruedactuarialliability.Administration costsoftheSeparationAllowancearefinancedthroughinvestmentearnings.TheCitypaid$1,394,911 asbenefitscamedueforthereportingperiod.
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions
AtJune30,2025,theCityreportedatotalpensionliabilityof$16,714,613.Thetotalpensionliability wasmeasuredasofDecember31,2024basedonaJune30,2024actuarialvaluation.Thetotalpension liabilitywasthenrolledforwardtothemeasurementdateofJune30,2023utilizingupdateprocedures incorporatingtheactuarialassumptions.FortheyearendedJune30,2025,theCityrecognizedpension expenseof$1,888,991.
DeferredOutflows ofResources DeferredInflows ofResources
Benefitpaymentsandadministrativeexpenses subsequenttothemeasurementdate
Differencesbetweenexpectedandactualexperience865,821 $ $40,451 Changesofassumptions854,9811,639,225 725,621Total2,446,423 $ $1,679,676
$725,621 reported as deferred outflows of resources related to pensions resulting from benefit payments made and administrative expenses incurred subsequent to the measurement date will be recognizedasadecreaseofthetotalpensionliabilityinthe yearendedJune 30,2026.Otheramounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will berecognizedinpensionexpenseasfollows:
YearendedJune30:
Amount recognizedas anincreaseto Pension Expense 20261,247,893(776,443)471,450 2027413,317(650,508)(237,191) 202859,592(140,402)(80,810) 2029-(112,323)(112,323) $1,720,802(1,679,676)$41,126 $
Sensitivity of the City’s total pension liability to changes in the discount rate. The following presents theCity’stotalpensionliabilitycalculatedusingthediscountrateof4.28%,aswellaswhattheCity’s total pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower(3.28%)or1-percentage-pointhigher(5.28%)thanthecurrentrate:
Totalpensionliability17,973,424$16,714,613$15,565,818 $
ScheduleofChangesinTotalPensionLiability
LawEnforcementOfficers'SpecialSeparationAllowance
2025
Beginnngbalanceoftotalpensionliability17,620,729 $ Changesfortheyear:
Servicecost522,326
Interestonthetotalpensionliability640,400
ChangesofBenefitsTerms-
Differencesbetweenexpectedandactual(51,096)
Changesofassumptionsorotherinputs(622,835)
Benefitpayments(1,394,911)
Endingbalanceofthetotalpensionliability16,714,613 $
Theplancurrentlyusesmortalitytablesthatvarybyage,andhealthstatus(i.e.,disabledandhealthy). The current mortality rates are based on published tables and based on studies that cover significant portions of the U.S. population. The healthy mortality rates also contain a provision to reflect future mortalityimprovements.
TheactuarialassumptionsusedintheJune30,2024valuationwerebasedontheresultsofanactuarial experiencestudyforthefive-yearperiodendingDecember31,2020.
Total Expense, Liabilities, and Deferred Outflows and Inflows of Resources of Related to Pensions
Followingisinformationrelatedtotheproportionateshareandpensionexpenseforallpensionplans:
PensionExpense
$19,348,9631,888,991$21,237,954 $ PensionLiability65,736,55616,714,61382,451,169
Proportionateshareofthenetpensionliability1.0119%n/a
DeferredofOutflowsofResources
Differencesbetweenexpectedandactualexperience11,519,534$865,821$12,385,355 $ Changesofassumptions -854,981854,981
Netdifferencebetweenprojectedandactualearningsonplan8,936,846-8,936,846 investments
Changesinproportionanddifferencesbetweencontributions331,475-331,475 andproportionateshareofcontributions
Contributions,benefitpaymentsandadministrativecostspaid13,835,800725,62114,561,421 subsequenttothemeasurementdate
TotalDeferredOutflowsofResources34,623,655$2,446,423$37,070,078 $
DeferredofInflowsofResources
Differencesbetweenexpectedandactualexperience77,453$40,451$117,904 $ Changesofassumptions-1,639,2251,639,225
Changesinproportionanddifferencesbetweencontributions888,932-888,932 andproportionateshareofcontributions
TotalDeferredInflowsofResources
$966,3851,679,676$2,646,061 $
c. SupplementalRetirementIncomePlanforLawEnforcementOfficers
PlanDescription. TheCitycontributestotheSupplementalRetirementIncomePlanforLawEnforcement Officers(Plan),adefinedcontributionpensionplanadministeredbytheDepartmentofofficersemployed bytheCity. Article 5ofG.S. Chapter135assignstheauthority toestablishandamendbenefitprovisions to the North Carolina General Assembly. The Plan is included in the Annual Comprehensive Financial Report(ACFR)fortheStateofNorthCarolina. TheState’sACFRincludesthepensiontrustfundfinancial statements for the Internal Revenue Code Section 401(k) plan that includes the Plan. That report may be obtainedbywritingtotheOfficeoftheStateController,1410MailServiceCenter,Raleigh,NorthCarolina 27699-1410,orbycalling(919)981-5454.
Funding Policy. Article 12E of G.S. Chapter 143 requires the City to contribute each month an amount equal to five percent of each law enforcement officer’s salary, and all amounts contributed are vested immediately. Inaddition,thelawenforcementofficersmaymakevoluntarycontributionstotheplan.
Contributions made by the City for the year ended June 30, 2025 were $907,888. No amounts were forfeited.
d. Firefighters’andRescueSquadWorkers’PensionFund
Plan Description. The State of North Carolina contributes, on behalf of the City of High Point, to the Firefighters’ and Rescue Squad Workers’ Pension Fund (FRSWPF), a cost-sharing multiple-employer defined benefit pension planwith aspecialfunding situation administeredbythe State ofNorthCarolina. FRSWPFprovidespensionbenefitsforeligiblefireandrescuesquadworkersthathaveelectedtobecome members of the fund. Article 86 of G.S. Chapter 58 assigns the authority to establish and amend benefit provisions to the North Carolina General Assembly. Management of the plan is vested in the LGERS BoardofTrustees,whichconsistsof13members–nine appointedbytheGovernor,oneappointedbythe state Senate, one appointed by the state House of Representatives, and the State Treasurer and State Superintendent,whoserveasex-officiomembers. TheFirefighter’sandRescueSquadWorkers’Pension Fund is included in theAnnualComprehensiveFinancial Report(ACFR) forthe State ofNorth Carolina. The State’s ACFR includes financial statements and required supplementary information for the Firefighter’s and Rescue Squad Workers’ Pension Fund. That report may be obtained by writing to the OfficeoftheStateController,1410MailServiceCenter,Raleigh,NorthCarolina27699-1410,orbycalling (919)981-5454,oratwww.osc.nc.gov.
Benefits Provided. FRSWPFprovidesretirementandsurvivorbenefits. The presentretirementbenefitis $170 per month. Plan members are eligible to receive the monthly benefit at age 55 with 20 years of creditable service as a firefighter or rescue squad worker and have terminated duties as a firefighter or rescue squad worker. Eligible beneficiaries of members who die before beginning to receive the benefit willreceive the amount paid by the memberand contributions paid on the member’sbehalf into the plan. Eligible beneficiaries of memberswhodie after beginning to receive benefits will be paid the amount the membercontributedminusthebenefitscollected.
Contributions. Plan members are required to contribute $10 per month to the plan. The State, a nonemployer contributor, funds the plan through appropriations. The City does not contribute to the plan. Contribution provisions are established by GeneralStatute 58-86 and may be amended only by the North CarolinaGeneralAssembly. ForthefiscalyearendingJune30,2025theStatecontributed$19,789,708to theplan. TheCityofHighPoint’sproportionateshareoftheState’scontributionis$85,888.
Refunds of Contributions –Planmemberswhoarenolongereligibleorchoosenottoparticipateintheplan may file an application for a refund of their contributions. Refunds include the member’s contributions and contributions paid by others on the member’s behalf. No interest will be paid on the amount of the refund. The acceptance of a refund payment cancels the individual’s right to employer contributions, or anyotherbenefitprovidedbyFRSWPF.
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions
AtJune30,2025,theCityreportednoliabilityforitsproportionateshareofthenetpensionliability,asthe State provides 100% pension support to the City through its appropriations to the FRSWPF. The total portionofthenetpensionliabilitythatwasassociatedwiththeCityandsupportedbytheStatewas$85,588. The net pension liability was measured as of June 30, 2024. The total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of December 31, 2022. The total pension liability was then rolled forward to the measurement date of June 30, 2023 utilizing update proceduresincorporatingtheactuarialassumptions. TheCity’sproportionofthenetpensionliabilitywas based on a projection of the City’s long-term share of contributions to the pension plan relative to the projected contributions of all participating employers. As the City is not projected to make any future contributionstotheplan,itsproportionateshareatJune30,2024andatJune30,2025was0%.
FortheyearendedJune30,2025,theCityrecognizedpensionexpenseof$33,600andrevenueof$33,600 for support provided by the State. At June 30, 2025, the City reported no deferred outflows of resources andnodeferredinflowsofresourcesrelatedtotheFRSWPF.
Actuarial Assumptions. The total pension liability in the December 31, 2024 actuarial valuation was determinedusingthefollowingactuarialassumptions,appliedtoallperiodsincludedinthemeasurement:
SalaryincreasesNotapplicable
Investmentrateofreturn6.5%,netofpensionplaninvestmentexpense, includinginflation
Formoreinformationregardingactuarialassumptions,includingmortalitytables,theactuarialexperience study, the consideration of future ad hoc COLA amounts, the development of the projected long-term investmentreturns, and theassetallocation policy, referto the discussionof actuarialassumptions for the LGERSplaninSectiona.ofthisnote.
Discount rate. Thediscountrateusedtomeasurethetotalpensionliabilitywas6.50%. Theprojectionof cashflowsusedtodeterminethediscountrateassumedthatcontributionsfromplanmemberswillbemade at the currentcontribution rate and thatcontributions fromemployerswill be made atstatutorily required rates, actuarially determined. Based on these assumptions, the pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments of the current plan members. Therefore,the long-termexpectedrateofreturnonpensionplaninvestmentswasappliedto allperiodsof projectedbenefitpaymentstodeterminethetotalpensionliability.
Pension plan fiduciary net position. Detailed information about the pension plan’s fiduciary net position isavailableintheseparatelyissuedACFRfortheStateofNorthCarolina.
e. OtherPostemploymentBenefits-HealthCareBenefitPlan
Plan Description. Under the terms of a City resolution, the City administers a single-employer defined benefitHealthcareBenefitsPlan(theHCBPlan).TheCityCouncilhastheauthoritytoestablishandamend the benefit terms and financing requirements. No assets are accumulated in a trust that meets the criteria inparagraph4ofGASBStatement75.
BenefitsProvided.TheCityprovidescontinuationofmedicalinsurancecoveragetoemployeeswhoretire under the North Carolina Local Governmental Employees’ Retirement System (NCLGERS) eligibility termsatthesametimetheyendtheircontinuousservicetotheCity. Theretireeandhisorherspousemay elect to receive health and dental coverage until the participant becomes Medicare-eligible. The retiree assumes the full blended premium of the healthcare coverage plan as may be renegotiated and adjusted periodically. The City Council may amend the HCB Plan in its discretion. A separate report was not issuedfortheplan.
The ABC Board administers its own single employer defined benefit healthcare plan (the Retiree Health Plan) which provides its retirees who have a minimum 25 completed years of service to the ABC Board and who are not eligible for Medicare benefits the opportunity to remain enrolled in its group health insuranceplan. TheABCBoardpaysthefullcostofcoverageforthosebenefitsthroughprivateinsurance. AseparatereportwasnotissuedfortheABCBoard’sPlan.
Membership of the HCB Plan at June 30, 2024, the date of the latest actuarial valuation consisted of the following:
MembersABCBoard
TotalOPEBLiability
The City’s totalOPEB liability of $14,889,727was measured as ofJune30,2024 andwasdetermined by anactuarialvaluationdateofJune30,2024. TheABCBoard’stotalOPEBliabilityis$424,195.
Actuarial assumptions and other inputs
The total OPEB liability in the June 30, 2024 actuarial valuation was determined using the following actuarialassumptionsandotherinputs,appliedtoallperiodsincludedinthemeasurementunlessotherwise specified:
Inflation2.50%
Salaryincreases,includinginflation
LawEnforcement3.3%-8%
GeneralEmployeesandFirefighters3.3%-8.3%
Discountrate3.97%
HeathcarecosttrendTrends(pre-medicare)7.00%for2024decreasingtoanultimate rateof4.50%by2030
ThediscountrateisbasedontheJuneaverageoftheBondBuyer20-BondGOIndexpublishedweeklyby TheBondBuyer.
ChangesintheTotalOPEBLiability
CityofHighPointABCBoard
BalanceatJuly1,2023(July1,2024forABCBoard)13,898,347$384,437 $
Changesfortheyear
ServiceCost669,45340,544
Interest526,73615,512
ChangesofBenefitterms--
Differencesbetweenexpectedandactualexperience(727,044)
Changesinassumptionsorotherinputs1,061,733(16,298) Benefitpayments(539,498)-
NetChanges991,38039,758
BalanceatJune30,2023(June30,2025forABCBoard)14,889,727$424,195 $
Changesinassumptionsandotherinputsreflectachangeinthediscountratefrom3.69%to3.86%dueto achangeintheMunicipalBondRate.
Mortality rates were based on the RP-2014 Total Data Set for Healthy Annuitants Mortality Table with adjustmentsforLGERSexperienceandgenerationalmortalityimprovementsusingScaleMP-2015.
The actuarial assumptions used in the June 30, 2024 valuation were based on the results of an actuarial experiencestudyfortheperiodJanuary2015throughDecember2019.
Sensitivity of the total OPEB liability to changes in the discountrate. ThefollowingpresentsthetotalOPEB liability of the City, as well as what the City’s total OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (2.97%) or 1-percentage-point higher (4.97%) than the currentdiscountrate:
TotalOPEBliability16,575,795$14,889,727$13,408,601 $
Sensitivity of the total OPEB liability to changes in the healthcare cost trend rates. The following exhibit presents the total OPEB liability of the City, calculated using the health care costs trend rates, as well as whattheCity’sOPEBliabilitywouldbeifitwerecalculatedusingahealthcarecosttrendatethatis 1-percentagepointloweror1-percentagepointhigherthanthecurrentrate.
TotalOPEBliability13,135,643$14,889,727$16,972,904 $
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
FortheyearendedJune30,2025,theCityrecognizedOPEBexpenseof$1,100,983.AtJune30,2025,the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the followingsources:
CityofHighPointABCBoard
DeferredDeferredDeferredDeferred ofResourcesofResourcesofResourcesofResources
Differencesbetweenexpectedandactualexperience$708,358$1,489,297$56,850$33,006 Changesofassumptions
Benefitpaymentsandadministrativecostsmade subsequenttothemeasurementdate696,713--Total $3,589,9612,274,514$102,656$91,400 $
$606,085 reported as deferred outflows of resources related to pensions resulting from OPEB payments made and administrative expenses incurred subsequent to the measurement date will be recognized as a decreaseofthetotalOPEBliabilityintheyearendedJune30,2026.
Amounts reported as deferred outflows of resources and deferred inflows of resources related to other postemploymentbenefitswillberecognizedinOPEBexpenseasfollows.
FortheMeasurementPeriodEndedEndedJune30:
CityofHighPointABCBoard
2026(70,678)(347) 2027116,936(347) 2028350,585194 2029233,43210,362 2030(67,512)7,362 Thereafter55,971(5,968) $618,73411,256 $
3. OtherPost-EmploymentBenefits
TheCityhaselectedtoprovidedeathbenefitstoemployeesthroughtheDeathBenefitPlanformembersofthe Local Governmental Employees' Retirement System (Death Benefit Plan), a multiple-employer, Stateadministered,cost-sharingplanfundedonaone-yeartermcostbasis.Thebeneficiariesofthoseemployeeswho dieinactiveserviceafteroneyearofcontributingmembershipinthesystem,orwhodiewithin180daysafter retirementorterminationofserviceandhaveatleastoneyearofcontributingmembershipserviceintheSystem atthetimeofdeathareeligiblefordeathbenefits. Lumpsumdeathbenefitpaymentstobeneficiariesareequal totheemployee's12highestmonths’salaryinarowduringthe24monthsbeforetheemployee'sdeath,butthe benefit may not exceed $50,000 or be less than $25,000. Because all death benefit payments are made from theDeathBenefitPlanandnotbytheCity,theCitydoesnotdeterminethenumberofeligibleparticipants.
TheCityhasnoliabilitybeyondthepaymentofmonthlycontributions. ThecontributionstotheDeathBenefit Plan cannot be separated between the postemployment benefit amount and the other employment benefit amount. Contributionsaredeterminedasapercentageofmonthlypayrollbaseduponratesestablishedbythe State. Separate rates are setfor employeesnotengagedin law enforcement and for law enforcementofficers. TheCityconsidersthesecontributionstobeimmaterial.
The City also provides employees with additional group term life insurance equal to the employee’s annual salary as measured on January 1 of each year. The City has no liability beyond the payment of monthly contributions.
4. DeferredOutflowsandInflowsofResources
TheCityhasseveraldeferredoutflowsofresourcescomprisedofthefollowing: SourceAmount
LEOSSAbenefitpaymentsmadesubsequentto measurementdate725,621 $
ContributionsforLGERSmadesubsequentto measurementdate13,835,800
OPEBbenefitpaymentsmadesubsequentto measurementdate696,713
Differencesbetweenexpectedandactualexperience13,093,713
Changesofassumptions3,039,871
Netdifferencebetweenprojectedandactual8,936,846
Changesinproportionanddifferencesbetweenemployer contributionsandproporitionateshareofcontributions331,475
Amortizedfinancingcostsofblendedcomponentunit31,500
Total40,691,539 $
Deferredinflowsofresourcesatyear-endiscomprisedofthefollowing: Source
Prepaidtaxes(GeneralFund) $13,42213,422 $
TaxesReceivable,lesspenalties(GeneralFund) -1,111,803
GrantandMiscellaneousReceivable(GeneralFund) -402,529
LeaseReceivable(GeneralFund) 5,961,5755,961,575
GrantandMiscellaneousReceivable(GeneralCapitalProjects Fund) -694,718
UnavailableGrantReceivables(Non-majorgovernmentalfunds)-2,565,809
UnavailableOpioidSettlementReceivables(Non-major governmentalfunds) -1,574,494
GrantandMiscellaneousDeferredRevenue(Non-major propietaryfunds) 754,528LeaseReceivable(Non-majorFunds)1,029,3621,029,362
Developerpondmaintenancefunds 2,584,458Changesinassumptions 2,424,442-
Differencesbetweenexpectedandactualexperience1,607,201Changesinproportionanddifferencesbetweeenemployer contributionsandproporitionateshareofcontributions888,932Deferredgainonrefunding(Water&Sewer) 1,911,785LeaseReceivable(Water&Sewer)18,043Deferredrevenueandgainonrefunding(Stormwater)146,293Total17,340,041$13,353,712 $
5. ClosureandPostclosureCareCosts-KerseyValleyLandfillFacilities
State and federal laws and regulations require the City to place a final cover on its Kersey Valley Landfill Facilitieswhenitstopsacceptingwasteandtoperformcertainmaintenanceandmonitoringfunctionsatthesite for thirty years after closure. Although closure and postclosure care costs will be paid only near or after the datethatthelandfillstopsacceptingwaste,theCityreportsaportionoftheseclosureandpostclosurecarecosts as an operating expense in each period based on landfill capacity used as of each balance sheet date. The $16,943,093reportedaslandfillclosureandpostclosurecareliabilityatJune30,2025representsacumulative amount reported to-date based on the two existing lined municipal solid waste landfill units – Area 1 (Phases 1, 2, 3,and3A)andArea 2(Phases4,5A,and 5B)andArea 3(Phase6).The Area1 landfill unitis currently nearcapacityandapartialclosurehasbeencompleted.TheArea2andArea3landfillunitsarecurrentlyactive. Current capacity used is 89.03%. The City will recognize the remaining estimated costs of closure and postclosureasnewphasesaredeveloped.Theseamountsarebasedonwhatitwouldcosttoperformallclosure andpostclosurecarein2025.Actualcostsmaybehigherduetoinflation,changesintechnology,orchangesin regulations.
TheCityhasmettherequirementsofalocalgovernmentfinancialtestthatisoneoptionunderStateandfederal laws and regulations that helps determine if a unit is financially able to meet closure and postclosure care requirements.
At June 30, 2025, the City has accumulated $16,943,093 for future payment of closure and postclosure care costs. The City expects that future inflation costs will be paid from interest earnings on these annual contributions. However, if interest earnings are inadequate or additional postclosure care requirements are
determined(duetochangesintechnologyorapplicablelawsorregulations,forexample),thesecostsmayneed tobecoveredbychargestofuturelandfillusers.
6. Commitments
Commitments for the purchase of goods and services and for the construction and acquisition of assets are as followsatJune30,2025:
GeneralFund6,189,729 $
DebtService1,549,589
SpecialRevenue13,167
GeneralCapitalProjects10,108,775
ProprietaryFunds33,900,692
$51,761,952
Amounts shown above for the General, Special Revenue, and General Capital Project funds represent encumbrancesandarecomponentsofrestrictedfundbalancesasdescribedinNote1.F.14.
7. RiskManagement
TheCityisexposedtovariousrisksoflossrelatedtotorts;theftof,damageto,anddestructionofassets;errors andomissions;injuriestoemployees;andnaturaldisasters. TheCityprotectsitselffrompotentiallossthrough a combination of risk-sharing participation, purchase of commercial insurance for primary and/or excess liability coverage and self-insured risk retention. Self-insured risks are primarily for health, general, professional,flood,lawenforcement,vehicle,andundergroundstoragetankliabilities.
Claims liabilities are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. Liabilities include amounts for material claims that have been incurred but are not reported(IBNRs),basedonactuarialcomputations.Settledclaimshavenotexceededself-retainedorpurchased insurancecoverageinanyofthepastthreefiscalyearsandtherehavebeennosignificantreductionsininsurance coverageintheprioryear.
The City has several properties located in various “at risk” categories as identified by the Federal Emergency ManagementAgency. Consequently,theCitycarriescommercialfloodinsuranceforaggregatecoveragelimits of$50millionandforseveralspecificpropertiesat$2millionperstructure. Deductiblesforspecificlossrange from $100,000 to $500,000 per location and can be covered under the general self-insured arrangements as discussedabove.
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 areperformance bonded through a commercial surety bond. The FinancialServices Director isindividuallybondedfor$1,000,000. Allotheremployeesthathaveaccesstofundsarebondedunderablanket bondfor$100,000.
8. ClaimsandJudgments
At June 30, 2025, the City was a defendant to various lawsuits. In the opinion of the City's management and theCityattorney,theultimateeffectoftheselegalmatterswillnothaveamaterialadverseeffectontheCity's financialposition.
The City has partial responsibility for the costs of investigation and remediation of contaminated soil and groundwateratitsformerRiverdale Roadlandfillsite,whichwasclosedin1994. Duringthe1980s, aprivate companyhadusedasiteadjacenttothelandfillforrecyclingchemicals,anditsoperationsresultedinsoiland 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
cleanupofbothsites. TheCityandtheotherPRPsreachedagreementamongthemselvestosharethecleanup costs, with the City responsible for 25% of those costs. The City is unable to estimate the duration or cost of theremediationatthistime. EstimatedannualoperatingandmaintenancecostsarebudgetedintheCity’sSolid WasteFund.
9. ReconciliationofClaimsLiability
Changesinthe City’sworker’scompensationclaimsandhealthcareclaimsliabilities areincludedinaccounts payable on the Statement of Net Position and the balances during fiscal years 2024 and 2025 are as follows. TheCityconvertedfromcommercialinsurancetoself-insuranceinfiscalyear2025.
Balance,July11,502,583$557,434$2,060,017$1,674,036 $
Add:Incurredclaims(including)
IBNR'sandchangesinestimates874,86020,653,39221,528,25221,139,041
Deduct:Claimspayments(917,014)(19,820,826)(20,737,840)(20,753,060)
Balance,June301,460,429$1,390,000$2,850,429$2,060,017 $
10. Long-TermObligations
The General Government long-term debt will be liquidated with the use of funds from the General and Debt Service Funds. All Business-type activities long-term debt will be liquidated with the use of funds from their respectivefunds.Therearelimitationsandrestrictionscontainedinthevariousbondindentures.
a. Leases
TheCityhasenteredagreementstoleasecertainequipmentandabusstation.Theleaseagreementsqualify as other than short-termleases underGASB 87 and, therefore, have been recorded atthe presentvalue of thefutureminimumleasepaymentsasofthedateoftheirinception.
YearEnding June30,PrincipalInterestPrincipalInterest 2026.......................................1,574,922$106,495$29,821$2,558 $ 2027.......................................1,507,03570,38229,6771,804 2028.......................................1,440,24135,83828,5671,042 2029.......................................279,9653,30724,103288 2030.......................................20,999489-2031.......................................6,66783-TOTAL4,829,829$216,594$112,168$5,692 $ GovernmentalActivitiesBusiness-typeActivities
b. InstallmentPurchaseContracts
TheCityhasentereddirectplacementinstallmentpurchaseagreementstoacquirecertainequipment. These contractsaretypicallyfiveorten-yeartermwithquarterlyorsemi-annualpayments.Theprincipalsources of funding for these installment financing contracts are the General Fund and Internal Service Fund. The equipment(Fleetvehicles, public safety vehicles, realproperty, andpublic safetyequipment) are pledged ascollateralforthedebt.
Future annual debt service payments on installment purchase contracts as of June 30, 2025 including interestof$324,018isasfollows: YearEndingGovernmentalGovernmental June30,ActivitiesPrincipalActivitiesInterest
c. GeneralObligationIndebtedness
GeneralObligationBonds
TheCity’sgeneralobligationbondsservicedbythegovernmentalfundswereissuedforavarietyofeligible purposesaspermittedbyNorthCarolinageneralstatutes,includingtransportation,publicsafety,recreation, libraries and public buildings. Those general obligation bonds issued to finance the construction of facilitiesutilizedintheoperationsoftheenterprisefundsandwhichitsresourcesareretiringisreportedas long-termdebtintherespectiveenterprisefund. Allgeneralobligationbondsarecollateralizedbythefull faith,credit,andtaxingpoweroftheCity.Intheeventofadefault,theCityagreestopaytothepurchaser, on demand, interest on any and all amounts due and owing by the City under the related agreements. Principal is payable annually in varying amounts through 2042. Principal and interest requirements will be provided by appropriation in the year in which they become due. At June 30, 2025, the City of High Point had $24,000,000 authorized but unissued bonds and a legal debt margin of approximately $1.057 million.
Servicedbythegovernmentalfunds:
$8,866,942Series2014Refundingbondsfortransportation,public buildings,recreation,libraryandfirefightingfacilitiesmaturingseriallyon March1through2027withinterestsemiannuallySeptember1andMarch 1atratesvaryingbetween2.5%-5.0%1,373,937 $
$6,115,000Series2014PublicImprovementbondsfortransportation, recreation,andfirefightingfacilitiesmaturingseriallyonMarch1 through2034withinterestsemiannuallySeptember1andMarch1at ratesvaryingbetween2.0%-4.0%2,745,000
$16,956,919Series2016PublicImprovementbondsfortransportation, recreation,library,andpublicbuildingsmaturingseriallyonMarch1 through2029withinterestsemiannuallySeptember1andMarch1at ratesvaryingbetween2.75%-5.0%5,619,017
$6,600,000Series2018PublicImprovementbondsforpublicbuildings maturingseriallyonMarch1through2039withinterestsemiannually September1andMarch1atratesvaryingbetween3.0%-4.0%4,620,000
$10,566,874Series2020RefundingPublicImprovementbondforstreets andpublicbuildingsmaturingseriallyonJune1through2030with interestsemiannuallyDecember1andJune1at1.7%5,591,015
$5,300,000Series2022APublicImprovementbondforparksand recreationmaturingseriallyonMarch1through2032withinterest semiannuallySeptember1andMarch1at5%3,710,000
$26,000,000Series2022BPublicImprovementbondforparksand recreation,transportation,andaffordablehousingmaturingseriallyon March1through2042withinterestsemiannuallySeptember1andMarch 1at3.25%-5.0%
22,895,000
$4,598,550Series2022CRefundingPublicImprovementbondforstreets andsidewalksmaturingseriallyonMarch1through2032withinterest semiannuallyMarch1andSeptember1at1.96%2,272,173
$5,425,000Series2024PublicImprovementbondforstreetsand sidewalkswithprincipalpaymentsdueannualyMarch1,2025toMarch 1,2031withinterestsemiannuallySeptember1andMarch1at4.3%4,555,000 Totalservicedbygovernmentalfunds53,381,142
ServicedbyEnterpriseFunds:
Water&SewerFund
$1,624,747Series2022CRefundingbondsforwaterandsewermaturing seriallyonMarch1through2032withinterestsemiannuallyMarch1and September1at1.96%258,411 TotalservicedbyWater&SewerFund258,411
StormWaterFund
$1,233,058Series2014Refundingbondsforstormwaterfacilities maturingseriallyonMarch1through2027withinterestsemiannually September1andMarch1atratesvaryingbetween2.5%-5.0%191,063
$3,413,081Series2016Refundingbondsforstormwaterfacilities maturingseriallyonMarch1through2029withinterestsemiannually September1andMarch1atratesvaryingbetween2.25%-5.0%1,130,991
$2,591,126Series2020Refundingbondsforstormwaterfacilities maturingseriallyonJune1through2030withinterestsemiannually December1andJune1at1.7%1,370,985
$857,703Series2022CRefundingbondsforstormwaterfacilities maturingseriallyonMarch1through2032withinterestsemiannually March1andSeptember1at1.96%136,415
TotalservicedbyStormWaterFund2,829,454 Premiumongeneralobligationbonds2,331,462
Totalgeneralobligationbonds,netofdiscounts58,800,469 $
AnnualDebtServiceRequirements:
AnnualdebtservicerequirementstomaturityfortheGeneralObligationbondsareasfollows: GovernmentalActivities-BondsBusiness-TypeActivitiesBonds YearEndingGeneralObligationWaterandSewerStormWater June30,PrincipalInterestPrincipalInterestPrincipalInterest 20267,026,178$1,918,782$258,412$5,065$816,411$68,176 $ 20276,686,4221,663,928--674,57844,856 20286,086,4341,438,060--596,56628,744 20295,231,0361,226,855--429,97114,344 20304,623,0721,046,053--311,9285,303 2031-203511,453,0003,410,065---2036-20409,145,0001,461,141---2041-20423,130,000164,325----
Total53,381,142$12,329,209$258,412$5,065$2,829,454$161,423 $
d. LimitedObligationBonds:
The City’s limited obligation bonds serviced by the governmental funds were issued for a multi-use facility stadium, including subsequent stadium improvements, 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 yearinwhichtheybecomedue.
Servicedbythegovernmentalfunds:
$35,000,000Series2018LimitedObligationbondsforStadiumFacility onFebruary1,2018through2039withinterestsemiannuallyOctober 1andApril1atratesvaryingbetween2.31%-3.78%25,795,000 $
$18,175,000Series2020LimitedObligationbondsforPolice DepartmentHeadquartersandCommunicationCenterwithprincipal paymentsdueannualyMay1,2022toMay1,2040withinterest semiannuallyOctober1andApril1at2.15%14,347,000
$6,800,000Series2025LimitedObligationbondsforStadium ImporvementswithprincipalpaymentsdueannualyApril1,2026to April1,2040withinterestsemiannuallyOctober1andApril1at5.53%6,800,000 Totalservicedbygovernmentalfunds46,942,000 $
AnnualdebtservicerequirementstomaturityfortheLimitedObligationbondsareasfollows:
AnnualDebtServiceRequirements:
YearEnding
June30,PrincipalInterest 20263,021,000 $ $1,577,170 20273,051,0001,488,812 20283,086,0001,389,418 20293,111,0001,287,368 20303,141,0001,182,683 2031-203516,302,0004,248,159 2036-204015,230,0001,312,026 Total46,942,000 $ $12,485,636
e. RevenueBonds
ServicedbyEnterpriseFunds: Water&SewerFund
$50,575,000Series2016EnterpriseSystemRevenueRefundingBonds forwaterandsewermaturingseriallybeginningNovember1,2017 through2033andtermbondsmaturingonNovember1,2037.The bondspayinterestsemiannuallyNovember1andMay1atratesvarying 3.00%-5.00%32,075,000
$47,610,000Series2019EnterpriseSystemRevenueBondsforwater andsewermaturingseriallybeginningNovember1,2020through2040 andtermbondsmaturingonNovember1,2043.Thebondspayinterest semiannuallyNovember1andMay1atratesvarying3.00%-5.00%40,420,000
$34,755,000Series2022EnterpriseSystemRevenueBondsforwater andsewermaturingseriallybeginningNovember1,2023through2042 andtermbondsmaturingonNovember1,2046.Thebondspayinterest semiannuallyNovember1andMay1atratesvarying4.00%-5.00%33,140,000
$20,386,000Series2022BEnterpriseSystemRevenueRefundingBonds forwaterandsewermaturingseriallybeginningNovember1,2022 through2031.ThebondspayinterestsemiannuallyNovember1and May1atratesvarying1.59%.
15,863,000
$29,906,000Series2024EnterpriseSystemRevenueRefundingBonds forwaterandsewermaturingseriallybeginningNovember1,2024 through2039.ThebondspayinterestsemiannuallyNovember1and May1atratesvarying2.32%29,906,000
$36,985,000Series2025EnterpriseSystemRevenueBondsforwater andsewermaturingseriallybeginningNovember1,2027through2047 andtermbondsmaturingonNovember1,2050.Thebondspayinterest semiannuallyNovember1andMay1atratesvarying4.125%-5.00%36,985,000
TotalservicedbyWater&SewerFund188,389,000 Premiumsonrevenuebonds9,585,755
Totalrevenuebonds,netofpremiums197,974,755 $
TheCityhaspledgedfuturewaterandsewercustomerrevenues, netofspecifiedoperatingexpenses, torepay the aforementioned revenue bonds. The bonds are payable solely from these net water and sewer customer revenues and are payable through fiscal year 2051. Annual principal and interest payments on the bonds are expected to require less than 34.5% of net revenues. Principal and interest requirements will be provided by appropriationintheyearinwhichtheybecomedue.
AnnualDebtServiceRequirements:
Annualdebtservicerequirementstomaturityfortherevenuebondsareasfollows:
Business-Type
YearEndingWaterandSewer
June30,PrincipalInterest
20269,816,000 $ $6,864,190
202710,971,0006,702,748
202811,401,0006,265,935
202911,848,0005,809,253
203012,294,0005,352,352
2031-203552,712,00020,145,422
2036-204035,542,00012,416,584
2041-204525,990,0006,754,244
2046-205015,305,0002,215,375
20512,510,00062,750
Total188,389,000 $ $72,588,853
The City believes it is in compliance with the covenants as to rates, fees and charges in Section 7.04 of the EnterpriseSystemTrustAgreementsinceitsadoptionin2004andtherelatedSupplementalTrustAgreements andbondordersauthorizingtheEnterpriseSystemRevenueBonds,Series2019,2022,and2025andEnterprise SystemRefundingRevenueBondsSeries2016,2021A,2021B,and2024sincetheirrespectiveadoption. The TrustAgreement 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 coverageratiocalculationfortheyearendedJune30,2025isasfollows:
PriorYearUnrestrictedNetPosition41,168,384 $
Operatingrevenue69,455,883
Operatingexpenses,excludingdepreciation,accrued stipends,pension,andOPEB42,155,741
Incomeavailablefordebtservice27,300,142
Paritydebtservicerequirement15,140,618
Totaldebtservicerequirement15,527,468
Coverageonparitydebtincluding15% prioryearunrestrictednetposition221%
Coverageontotaldebtexcluding15% prioryearunrestrictednetposition176%
f. StateandFederalRevolvingandBondLoans
ServicedbyEnterpriseFunds:
A federal revolving loan was executed October 17, 2011 for sewer projects under the stimulus provisions of the American Recovery andReinvestmentActof 2009. The loan provided for 50%of the loan balance to be forgiven at the time of the loan closing and the balance of principal to be repaid in 20 annual payments at an interest rate of 0.0%. As of June 30, 2025, $1,307,509 had been drawn-down and principal forgiveness of
$653,753granted. Inaddition,principalpaymentsof$490,709havebeenmade,leavinganoutstandingbalance of$163,046.Theloanissecuredbyapledgeofrevenues.
AnnualDebtServiceRequirements:
AnnualdebtservicerequirementstomaturityfortheLoansPayableareasfollows:
BusinessActivities-LoansandNotesPayable
WaterandSewer
YearEnding
Federal Revolving Loans
June30,PrincipalInterest
202632,609 $ $202732,609202832,609202932,609203032,611-
Total163,047 $ $-
g. HUDSection108FederalLoans
The City executed preliminary promissory notes in the amount of $1,350,000 and $2,000,000 during 2016, and $694,000 during 2018. The promissory notes are with the US Department of Housing and Urban Development(HUD)forredevelopmentprojectsauthorizedundertheCDBGSection108loanprogram.The Cityhasrelateddevelopernotesreceivableintheseamountsastheprincipalcomponentisdeferred.TheCity’s notes payable is secured by the property as well as future CDBG appropriations. In March 2019, the amortizationschedulesforbothnoteswerefinalizedbyHUD.
The City has executed a preliminary promissory note with the U.S. Department of Housing and Urban Development (HUD) for a redevelopment project authorized under the CDBG Section 108 Loan Program. TheCity’snotepayableissecuredby thepropertyaswellasfutureCDBG appropriations. Theamortization details for this note have notbeenfinalized. TheCity iscurrently makingprincipal and interest payments to HUDaccordingtoHUD’sinterimfinancingprogram. AsofJune30,2025,theoutstandingprincipalamount duetoHUDis$521,000,withacurrentprincipalportionof22,000.
AnnualDebtServiceRequirements:
AnnualdebtservicerequirementstomaturityfortheLoansPayableareasfollows:
GovernmentalActivities-LoansandNotesPayable Section108
YearEnding
HUD Loans
June30,PrincipalInterest
202684,000101,161 202781,00098,853 202879,00096,561 202978,00094,263 203077,00091,873 2031-2034300,000342,785 2035-20382,308,000141,575
Total3,007,000$967,071 $
h. ComponentUnitLoanPayable
InNovember2023,ForwardHighPoint,Inc.refinancedaloanandenteredaloanagreementwith theCityof High Point. Collateral is the Deed of Trust of 704,748, 720 and 788 North Main Street, High Point NC and theirrelatedassignedrents. The carryingvalue ofassetsusedascollateralatJune30,2022was$833,055and isincludedinpropertyheldforresale.Theinterestrateis0%.Principalwillbepayableinasingleinstallment paymentonNovember14,2028.Theoutstandingbalancewas$1,725,000atJune30,2025.
i. Subscriptions
TheCityreportsSubscription-BasedInformationTechnologyArrangements(Subscriptions)inaccordancewith GASBStatementNo.96.TheStatementprovidesadefinitionofSubscriptionsandprovidesuniformguidance foraccountingandfinancialreportingforsuchtransactions.
Duetoterminationsandmodificationsinsubscriptions,thesubscriptionsliabilitydecreasedby$298,510.
YearEnding
June30,PrincipalInterestPrincipalInterest 2026.......................................1,358,311$109,404$390,560$18,370 $ 2027.......................................1,322,29675,488236,78010,221 2028.......................................675,84739,922122,6723,656 2029.......................................644,07119,587-TOTAL4,000,525$244,401$750,012$32,247 $ GovernmentalActivitiesBusiness-typeActivities
j. ChangesinLong-TermLiabilities
GovernmentalActivities:
Bondsandnotespayable:
Generalobligationbonds...........................................60,511,940 $ $-7,130,798$53,381,142$7,026,178 $ Premiumongeneralobligationbonds......................2,331,460-167,2882,164,172167,288 Limitedobligationbonds............................................42,689,0006,800,0002,547,00046,942,0003,021,000 Notesandloanspayable............................................3,638,000-110,0003,528,000106,000 Directplacementinstallmentpurchaseagreements5,934,7001,550,0002,079,7175,404,9831,943,322 Leaseliabilities.............................................................6,078,592237,7941,486,5574,829,8291,574,922 ITsubscriptionagreements.......................................1,246,2685,070,0202,315,7634,000,5251,358,311 Totaloutstandingdebt............................................122,429,96013,657,81415,837,123120,250,65115,197,021 Otherliabilities:
Compensatedabsences..............................................14,818,126649,385-15,467,5114,114,210 TotalOPEBliability.....................................................9,581,520695,371-10,276,891480,872 Netpensionliability(LGERS)....................................48,925,913-583,25148,342,662Totalpensionliability(LEO).....................................17,620,729-906,11616,714,6131,430,935
Totalotherliabilities:................................................90,946,2881,344,7561,489,36790,801,6776,026,017 Governmentalactivitieslong-termliabilities...............213,376,248$15,002,570$17,326,490$211,052,328$21,223,038 $
Business-typeActivities:
Bondsandnotespayable WaterandSewerGeneralObligationBonds...........600,875 $ $-342,464$258,411$258,411 $
WaterandSewerRevenueBonds............................160,819,00036,985,0009,415,000188,389,0009,816,000 PremiumonWaterandSewerRevenueBonds.......7,925,5902,066,859406,6949,585,755489,368
TotalWaterandSewerRevenueBonds...............168,744,59039,051,8599,821,694197,974,75510,305,368
StormWaterGeneralObligationBonds...................3,689,192-859,7382,829,454816,411 Notesandloanspayable............................................195,656-32,609163,04732,609 WaterandSewerleaseandsubscriptionliabilities88,38798,60524,867162,125114,609 Electricleaseandsubscriptionliabilities.................301,758185,263138,004349,017135,795
Transitleaseandsubscriptionliabilities..................374,81245,689129,054291,447139,341 SolidWasteleaseandsubscriptionliabilities.........77,18766,26090,76852,67923,722 StormWaterleaseandsubscriptionagreements...-6,912-6,9126,912 Totaloutstandingdebt............................................174,072,45739,454,58811,439,198202,087,84711,833,178 Otherliabilities
Landfillclosureandpost-closure.............................15,854,6361,088,457-16,943,093TotalOPEBliability.....................................................4,316,827296,009-4,612,836215,841 Netpensionliability(LGERS)....................................18,095,886-701,99217,393,894Compensatedabsences..............................................4,991,915307,890-5,299,8051,518,345 Totalotherliabilities.................................................43,259,2641,692,356701,99244,249,6281,734,186 Business-typeactivitieslong-termliabilities..............217,331,721$41,146,944$12,141,190$246,337,475$13,567,364 $
Other liabilities, including compensated absences, retirement stipends, OPEB, and pension obligations for governmental activities have typically been liquidated in the General Fund, Special Revenue Fund, and Internal Service Fund as appropriate.
Note3. InterfundBalancesandActivity
AscheduleofinterfundtransfersfortheyearendedJune30,2025isasfollows: Transfersfrom
Transfers are used to move revenues from the appropriate funds for the payment of debt service principal and interest,moverestrictedborrowingstoestablishmandatoryreserveaccounts,andtomoveunrestrictedrevenuesto finance various programs that the government must account for in other funds in accordance with budgetary authorizations,includingamountsprovidedassubsidiesofmatchingfundsforvariousgrantprograms.
The transfers from the Electric Fund to the General Fund represent the amounts designated for Economic DevelopmentandtheInternationalHomeFurnishingsMarketaswellasthepaymentinlieuoftaxes.
During the fiscal year, the City transferred capital assets between funds. In the internal service fund financial statements, capital assets transferred in are shown as capital contributions. The loss on disposal and capital contributionsareeliminatedinthegovernment-widestatementpresentation.
TheCityCouncilauthorizedinternalborrowingsaspartofitsDowntownCatalystEconomicDevelopmentProject in April 2017. The funds were used in combination with other funding sources to provide for the purchases of property for the Downtown Multi-Use Stadium and related properties for redevelopment. In lieu of external financingoptions,theGeneralCapitalProjectsFundborrowed$2,000,000fromtheElectricFund,$5,000,000from theLandfillClosure/Post-closureFund,and$1,000,000fromtheInternalServiceFundinJune2017. Intheformal action of resolution, the City Council and management is to repay the transfer semi-annually on a twenty-year amortized schedule at an interest rate of 1.00% which approximated the City’s blended internal rate of return for investmentsatthattime. TherepaymentscheduleprovidesforthereturnoffundsfirsttotheInternalServiceFund, thentotheElectricFund,andthentotheSolidWasteFund.Theinterfundloanbetweenthe InternalServiceFund andtheGeneralCapitalProjectsFundiseliminatedinthegovernment-widestatementpresentation.
In June 2023, the City Council authorized an internal borrowing for the City Lake Project from the Landfill DevelopmentandPost-ClosureFundintheamountof$8,352,748toberepaidover15yearswithanannualinterest rateof1.00%.
The interfund transactions are presented as long-term interfund receivables for the enterprise funds and as a longterminterfundpayableinthegovernmentalfundstatements.
The repayment plan related to the Downtown Catalyst Economic Development Project is below. The current principalbalanceis$5,600,000.
2026443,323-443,323 2027221,658221,665443,323 2028-443,323443,323 2029-443,323443,323 2030-443,323443,323 2031-443,323443,323 2032-443,323443,323 2033-443,323443,323 2034-443,323443,323 2035-443,323443,323 2036-443,323443,323 2037-443,323443,323 2038-443,323443,323 2039-443,323443,323
The repayment plan related to the City Lake Park Renovation Project is below. The current principal balance is $7,314,748. FiscalLandfill YearReserve 2026600,000 2027600,000 2028600,000 2029600,000 2030600,000 2031600,000 2032600,000 2033600,000 2034600,000 2035600,000 2036600,000 2037600,000 2038639,076 $7,839,076
Note4. JointVentures
A. TheNorthCarolinaMunicipalPowerAgencyNumber1(PowerAgency)isajointventureorganizedandexisting pursuant to Chapter 159B of the General Statutes of North Carolina to enable municipalities owning electric distributions systems, through the organization of the Power Agency, to finance, construct, own, operate, and maintain electric generation and transmission facilities. The Power Agency has nineteen members (participants), which receive power from the Power Agency. The Power Agency has entered a Project Power Sales Agreement anda SupplementalPowerSalesAgreementwith eachparticipant. These agreementsprovideforeachparticipant topurchasefromthePowerAgencyitsall-requirementsbulkpowersupply,inexcessofpowerallotmentsfromthe Southeastern Power Administration (SEPA), which includes its total share of project output (as defined by the Project Power Sales Agreement). The Power Agency is obligated to provide all electric power required by each participantattherespectivedeliverypoints. Eachparticipantisobligatedtopayitsshareoftheoperatinganddebt servicecostsoftheproject.
TheCitybeganpurchaseofpowerfromthePowerAgencyundertheProjectPowerSalesAgreementdatedJuly1, 1983.
EachmunicipalitymayappointonecommissionertoserveonthePowerAgency'sboard. Theboardelectsitsown officersand is responsible forthe selection of managementto run the daily operations of the PowerAgency. The PowerAgencyisresponsibleforbudgetingandreceivingitsfinancing.
Summary financial information for the Agency for the year ended December 31, 2024 is presented below (in thousandsofdollars):
Total
Currentandotherassets………………………………………..1,128,256 $ Capitalassets…………………………………………………...1,244,181 Deferredoutflowofresources………………………………….15,244
Totalassetsanddeferredoutflowsofresources…………..2,387,681
Currentliabilities…………………………………………………116,786 Long-termdebtandothernon-currentliabilities………………….1,017,131 Deferredinflowsofresources…………………………………..1,074,065 Totalliabilitiesanddeferredinflowofresources………….2,207,982
Totalnetposition…………...…………………………………..179,699 $
Totalrevenues……………...…………………………………..548,929 $ Totalexpenses………………………………………………….658,338 Netincrease(decrease)innetposition...………………………………….. $(109,409)
AsofDecember31,2024,theAgencyhadoutstanding$470,845,000ofbonds.
ThefollowingisasummaryofdebtservicerequirementsforbondsoutstandingatDecember31,2024(in thousandsofdollars):
YearPrincipalInterestTotal 202561,10523,96985,074 202664,10020,96785,067 202767,25517,81385,068 202870,57514,49885,073 2029to2031207,81022,435230,245 $470,84599,682$570,527 $
TheCityhasmadenoinvestmentinthisjointventure. The City'sonlyfinancialinvolvementwiththe agency relates to the power sales agreement for power purchases. The City’s purchases of power for the fiscal year endedJune30,2025totaled$70,075,721.CompletefinancialstatementsforthePowerAgencycanbeobtained fromtheAgency'sadministrativeofficesatP.O.Box29513,Raleigh,NC27626-0513.
B. ThePiedmontTriadRegionalWaterAuthority(WaterAuthority)isaconsortiumformedbytheCity,theCity of Archdale, the City of Greensboro, the Town of Jamestown, the City of Randleman, and Randolph County for the purpose of construction of the Randleman Dam and to provide a regional water resource. Each participating government appoints members to the board: Greensboro (3), High Point (2), Randolph County (2),Jamestown(2),andRandleman(1)foratotalof10members. Thedamisajointventureforthepurchase ofland,constructionofadam,andawastewaterbypass. TheRandlemanDamwascompletedinJanuary2003 and the impoundment of water is complete. The Water Authority has also completed the construction for a watertreatmentplantandarawwaterpumpstation,transmissionlines,andafinishedwaterpumpstation. The Piedmont Triad Regional Water Authority is operating and maintaining these facilities under an interlocal agreement among the members. The City’s allocable portion of capacity and distributable water is 19% or approximately 9MGD at fulloperationallimits. TheCity’s financial involvement includes membership dues for the allocated administrative costs of the Water Authority and the water purchases under a water sales agreement. TheCitypaid$359,654formemberduesand$1,048,572forwaterpurchasesduringthefiscalyear endedJune30,2025.Completefinancial statementsforthePiedmontTriadRegionalWaterAuthoritymaybe obtainedfromPiedmontTriadRegionalWaterAuthority,P.O.Box1326,Randleman,NC27317.
C. The governingboardsofthecitiesofWinston-Salem,Burlington,Greensboro,andHighPointestablishedthe PiedmontAuthorityofRegionalTransportationundertheRegionalPublicTransportationAuthorityAct,North Carolina General Statutes Chapter 160A, Article 27. The purpose of the Water Authority is to promote the development of sound transportation systems that provide transportation choices for citizens in its territorial jurisdiction. The participating governments do not have an equity interest in the joint venture. The City of High Point does not have financial responsibility for the Water Authority and is not responsible for its debts. Audited financialstatements for the Piedmont Authority of RegionalTransportation are available through the OfficeoftheExecutiveDirector,PiedmontAuthorityofRegionalTransportation,107ArrowRd.,Greensboro, NC27409.
C. The City and the members of the City’s fire department each appoint two members to the five-member local boardoftrusteesfortheFirefighters’ReliefFund. TheStateInsuranceCommissionerappointsoneadditional member to the local board of trustees. The Firefighters’ Relief Fund is funded by a portion of the fire and lightninginsurancepremiumsthatinsurersremittotheState. TheStatepassesthesemoneystothelocalboard oftheFirefighters’ReliefFund. Thefundsareusedtoassistfirefightersinvariousways.TheCityobtainsan ongoingfinancialbenefitfromtheFundfortheon-behalfofpaymentsforsalariesandfringebenefitsmadeto membersoftheCity’sfiredepartmentbytheboardoftrustees. DuringthefiscalyearendedJune30,2025,the CityhadnorevenuestoreportnorexpendituresforpaymentsmadethroughtheFirefighters’ReliefFund. The participating governments do nothave any equity interest in the jointventure, so no equity has been reflected in the financial statements at June 30, 2025. The Firefighters’ Relief Fund does not issue separate audited financialstatements. Instead,thelocalboardoftrusteesfilesanannualfinancialreportwiththeStateFiremen’s Association. This report can be obtained from the Association at 323 West Jones Street, Suite 401, Raleigh, NorthCarolina27603.
Note5. JointlyGovernedOrganizations
A. The City in conjunction with 6 counties and 25 other municipalities established the Piedmont Triad Regional Council (the Council). The participating governments established the Council to coordinate various funding receivedfromfederalandStateagencies.EachparticipatinggovernmentappointsonemembertotheCouncil's governing board. The City prepaid membership fees of $24,484 to the Council during the fiscal year ended June30,2025.
B. TheCityhasanagreementwiththePiedmontTriadAirportAuthorityinwhichitappointsonemembertothe board. TheCityhasnofinancialobligationorinvestmentintheoperationoftheAirportAuthority.Complete
financialstatementsforthePiedmontTriadAirportAuthoritymaybeobtainedthroughtheAirportAuthority, 1000ATedJohnsonParkway,Greensboro,NC27409.
C. The City created aHigh PointConvention andVisitors Bureau (theBureau) to promote tourism and to solicit andencourageconventionbusinessinHighPoint. TheCityappointsoneoftheelevenvotingmembersofthe Bureau. Revenues from the county-wide occupancy tax pass through the City to the Bureau. The City paid $2,455,318totheBureauduringthefiscalyearendedJune30,2025.TheCityhasnootherfinancialobligation orinvestmentintheoperationoftheBureau.
Note6. RelatedOrganization
Theeight-memberboardoftheCityofHighPointHousingAuthority(HousingAuthority)includessevenmembers appointedbytheMayoroftheCityofHighPointandoneCouncilmemberliaison. TheCityisaccountableforthe HousingAuthoritybecauseitappointsthegoverningboard;however,theCityisnotfinanciallyaccountableforthe HousingAuthority. TheCity of High Pointis also disclosed as a related organization in the notes to the financial statementsfortheCityofHighPointHousingAuthority. CompletefinancialstatementsfortheHousingAuthority canbeobtainedfromtheHousingAuthority’sofficesat500EastRussellAvenue,HighPoint,NC27260.
Note7. SummaryDisclosureofSignificantContingencies
A. FederalandState-AssistedPrograms
The City has received proceeds from several federal and state grants. Periodic audits of these grants are required andcertaincostsmaybequestionedasnotbeingappropriateexpendituresunderthegrantagreements. Suchaudits couldresultintherefundofgrantmoniestothegrantoragencies.
B. CompanyIncentiveProgram
In August 2018, the City executed a commitment agreement with a company to provide reimbursements for documentedconstructioncostsifthe companymeetscertaindocumentedbenchmarksforjobscreationandcapital investmentbyDecember31,2027. Themaximumremainingamountofreimbursementsavailabletothecompany overthetermoftheprogram(between2026and2028)is$702,600.
Note8.SubsequentEvents
The City has evaluated subsequent events through February 12, 2026, in connection with the preparation of these financialstatements,whichisthedatethefinancialstatementswereavailabletobeissued.
Note9.Restatements
Changes in Accounting Principles For the year ended June 30, 2025, GASB Statement No. 101, Compensated Absences, was implemented. The objective of this Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. This change restated and reduced beginning net position of governmental activities in the government-wide statements by $9,185,684.Thischangerestatedandreducedbeginningnetpositionofthebusiness-typeactivitiesandproprietary fundsby$3,039,191.
For the year ended June 30, 2025, GASB Statement No. 102, Certain Risk Disclosures, was implemented. The disclosures will provide users with timely information regarding certain concentrations or constraints and related eventsthathaveoccurredorhavebeguntooccurthatmakeagovernmentvulnerabletoasubstantialimpact.
Required
SupplementalInformation
Thissectioncontainsadditionalinformationrequiredbyaccountingprinciples generallyacceptedintheUnitedStatesofAmerica.
ScheduleofProportionateShareofNetPensionLiability/(Asset)forLocal GovernmentEmployees’RetirementSystem
ScheduleofContributionstoLocalGovernmentEmployees’Retirement System
ScheduleofProportionateShareofNetPensionLiabilityforFirefighters’ andRescueSquadWorkers’PensionPlan
ScheduleofChangesin TotalPensionLiabilityfortheLawEnforcement Officers’SpecialSeparationAllowance
ScheduleofTotalPensionLiabilityasaPercentageofCoveredPayrollfor theLawEnforcementOfficers’SpecialSeparationAllowance
ScheduleofChangesin TotalOPEBLiabilityandRelatedRatios - IndependentAuditor’sReportonSupplementaryInformation.
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
* 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.
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
* 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.
CITY OF HIGH POINT, NORTH CAROLINA
City of High Point's Schedule of Contributions
Required Supplementary Information
Last ten Fiscal Years*
Local Government Employees' Retirement System
CITY OF HIGH POINT, NORTH CAROLINA
City of High Point's Schedule of Contributions Required Supplementary Information Last ten Fiscal Years*
Local Government Employees' Retirement System
Point's proportionate share of the net pension liability ($)
State's proportionate share of the net pension liability (asset) associated with City of High Point
CITY OF HIGH POINT, NORTH CAROLINA
Schedule of City's of Proportionate Share of Net Pension Liability Required Supplementary Information Last Ten Fiscal Years*
Firefighters' and Rescue Squad Workers' Pension
High Point's proportionate share of the net pension liability (asset) as a percentage of its covered payroll
* 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.
High Point's proportionate share of the net pension liability ($)
State's proportionate share of the net pension liability (asset) associated with City of High Point
CITY OF HIGH POINT, NORTH CAROLINA
Schedule of City's of Proportionate Share of Net Pension Liability
Required Supplementary Information
Last Ten Fiscal Years*
Firefighters' and Rescue Squad Workers' Pension
High Point's proportionate share of the net pension liability (asset) as a percentage of its covered payroll
Plan fiduciary net position as a percentage of the total
pension liability
* 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.
CITY OF HIGH POINT, NORTH CAROLINA
Schedule of Changes in Total Pension Liability Law Enforcement Officers' Special Separation Allowance
Last Eight Fiscal Years**
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.
CITY OF HIGH POINT, NORTH CAROLINA
Schedule of Changes in Total Pension Liability Law Enforcement Officers' Special Separation Allowance
Last Eight Fiscal Years**
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.
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 Eight Fiscal Years*
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.
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 Eight Fiscal Years*
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.
CITY OF HIGH POINT, NORTH CAROLINA
Schedule of Changes in Total OPEB Liability and Related Ratios
Required Supplementary Information Last Eight Fiscal Years* and Total OPEB Liability as a Percentage of Covered Payroll
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:
CITY OF HIGH POINT, NORTH CAROLINA
Schedule of Changes in Total OPEB Liability and Related Ratios
Required Supplementary Information and Total OPEB Liability as a Percentage of Covered Payroll
Last Eight Fiscal Years*
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:
CITYOFHIGHPOINT,NORTHCAROLINA
GeneralFund
The General Fund accounts for all financial resources except those required to be accountedforinanother fund. ThegeneraloperationsoftheCity,suchasadministration, 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,intergovernmentalrevenues,chargesforservices andinterestoninvestments.
CITY OF HIGH POINT, NORTH CAROLINA
General Fund
Schedule of Revenue and Expenditures - Budget and Actual For the Fiscal Year Ended June 30, 2025
(Continued)
CITY OF HIGH POINT, NORTH CAROLINA
General Fund
Schedule of Revenue and Expenditures - Budget and Actual For the Fiscal Year Ended June 30, 2025
financing sources (uses):
from (to) other funds:
CITY OF HIGH POINT, NORTH CAROLINA
General Fund
Schedule of Revenue and Expenditures - Budget and Actual
For the Fiscal Year Ended June 30, 2025
CITYOFHIGHPOINT,NORTHCAROLINA
CapitalProjectsFund
GeneralCapitalProjectsFund
Toaccount andprovideforinceptiontodate budgetingandaccountingfor theacquisition and/or construction of major capital improvements acquired through annual transfers fromgovernmentalfundsandthroughbondreferendaandotherpublicdebtissuances.
CITYOFHIGHPOINT,NORTHCAROLINA
CombiningStatements–AllNon-MajorGovernmentalFunds
Combining Balance Sheet. Displays the current financial position of all nonmajor governmentalfundsoftheCity.
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances. DisplaystheresultsofoperationsforallnonmajorgovernmentalfundsoftheCity.
CITYOFHIGHPOINT,NORTHCAROLINA
SpecialRevenueFunds
SpecialRevenueFundsaccountfortheproceedsofspecialrevenuesourcesthatarelegally restricted to expenditure for specified purposes. The City utilizes two special revenue funds.
SpecialGrantsFund
TheSpecialGrantsFundaccountsforthereceiptanddisbursementofallgrants,including Federal,StateandlocalgrantsorentitlementsbutexcludingtheCommunityDevelopment Block Grant and other federal grants through US Department of Housing and Urban Development.
CommunityDevelopmentFund
TheCommunityDevelopmentFundaccountsfortherevenuesandexpendituresassociated with activities of various programs funded by the US Department of Housing and Urban Development,includingCommunityDevelopmentBlockGrant.
OpioidSettlementFund
The Opioid Settlement Fund accounts for the revenues and expenditures associated with opioid remediation activities funded by Opioid Settlement, received from the North CarolinaDepartmentofJustice.
Showroom&OccupancyTaxFund
The Showroom & Occupancy Tax Fund was established to account for the tax collected for showroom tax and the occupancy tax levied on hotels and motels located within the citylimits.
CITYOFHIGHPOINT,NORTHCAROLINA
The Debt Service Fund accounts for the accumulation of resources for and the payment ofgovernmentallong-termprincipalandinterest.
CITYOFHIGHPOINT,NORTHCAROLINA
PROPRIETARYFUNDTYPES
EnterpriseFunds
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 departmentsaccountedforintheEnterpriseFunds.
WaterandSewerFund
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 forhome,industrialandcommercialusers.Additionally,this fundprovidesfortheproper and effective treatment of all wastewater and disposal of any treatment process byproductsinanenvironmentallysoundmanner.
ElectricFund
To provide effective, professional services to utility customers and to provide expansions totheelectricsystemfromoperationalrevenues.
MassTransitFund
Provide an optimal level of safe, reliable and economical transportation service for the residentsofHighPointwhileincreasingtheefficiencyofthesystem.
ParkingFacilityFund
The Parking Facility Fund’s responsibility is for the operation and maintenance of the City’soff-streetparkingfacilities.
SolidWasteFund
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.
StormWaterFund
To provide for the operation and maintenance of the City’s storm water program, which managesstormwaterrunoffthroughstreamcleaning,bankstabilization,andmaintenance ofdetentionlakesandponds.
CITYOFHIGHPOINT,NORTHCAROLINA
CombiningStatementofNetPosition AllNonmajorEnterpriseFunds June30,2025
CITYOF HIGHPOINT,NORTHCAROLINA
CombiningStatementofRevenues,Expenses,andChangesinNetPosition AllNon-majorEnterpriseFunds FortheFiscalYearEndedJune30,2025
Reconciliationofoperatingincome(loss)tonetcashchange operatingactivities:
City ofHighPoint,NorthCarolina
CombiningStatementof CashFlows AllNon-majorEnterpriseFunds FortheFiscalYearEndedJune30,2025
ChangeinAssetsandLiabilities: (Increase)DecreaseinAccountsReceivables..................................(202,372)
(Increase)DecreaseinInventories...................................................(26,998)
(Increase)DecreaseinPrepaidExpenses........................................(53,490)
(Increase)DecreaseinDeferredOutflowsofResources-Pensions...201,330
(Increase)DecreaseinDeferredOutflowsofResources-OPEB.......(23,545)
Increase(Decrease)inPayablesandAccruedExpenses..................204,287
Increase(Decrease)inDeposits......................................................-
Increase(Decrease)inCompensatedAbsences...............................(9,205)
CITYOF HIGHPOINT, NORTHCAROLINA WaterandSewerFund
BudgetandActual(Non-GAAP) FortheFiscalYearEndedJune30,2025
Reconciliationfrombudgetarybasis(modifiedaccrual) tofullaccrual:
Reconcilingitems:
Amortizationofgainonrefunding..................................................738,915745,106
Bondproceedsusedindefeasanceofbonds....................................29,906,000Revenuebondproceeds..................................................................(68,957,859)Bondprincipalpayments................................................................9,790,0739,355,985
Leaseliabilitiesissued....................................................................(11,052) (67,823)
Leaseprincipalpayments................................................................14,148 6,236
ITsubscriptionagreement...............................................................(87,553) (33,217)
ITsubscriptionprincipalpayments.................................................10,719 19,992
Capitalcontributions.......................................................................185,368259,119
Depreciationexpense......................................................................(16,784,079) (15,463,512)
Amortizationexpense,righttouseassets........................................(37,131) (25,109)
Gain(loss)ondisposalofproperty.................................................- (159,752)
Compensatedabsencesexpense......................................................(115,676) 2,227
Increase(decrease)indeferredoutflowofresources-pensions........(690,337) 182,878 (Increase)decreaseinnetpensionliability......................................340,737 (707,317) (Increase)decreaseindeferredinflowofresources-pensions..........(12,806) (5,955)
Increase(decrease)indeferredoutflowofresources-OPEB............44,016 (71,240) (Increase)decreaseintotalOPEBliability......................................(112,443) 66,186 (Increase)decreaseindeferredinflowofresources-OPEB..............8,092 72,692 Changeinnetposition-fullaccrualbasis...........................................7,154,814 $ 8,442,159 $
Revenues:
Otherfinancingsources/(uses):
CITYOFHIGHPOINT,NORTHCAROLINA
Water&SewerCapitalProjectsOrdinanceFund
ScheduleofRevenues,Expenditures,andChangesinNetPosition BudgetandActual(Non-GAAP)
FromInceptionandfortheFiscalYearEndedJune30,2025
CITYOF HIGHPOINT, NORTHCAROLINA
Scheduleof Revenues, Expenditures,andChangesinNetPosition
BudgetandActual(Non-GAAP) FortheFiscalYearEndedJune30, 2025
Revenues:
CITYOFHIGHPOINT,NORTHCAROLINA
ElectricCapitalProjectsOrdinanceFund
ScheduleofRevenues,Expenditures,andChangesinNetPosition BudgetandActual(Non-GAAP)
FromInceptionandfortheFiscalYearEndedJune30,2025
CITYOFHIGHPOINT,NORTHCAROLINA
MassTransitFund
ScheduleofRevenues,Expenditures,andChangesinNetPosition
Reconciliationfrombudgetarybasis(modifiedaccrual) tofullaccrual: Reconcilingitems:
Revenues:
Otherfinancingsources(uses):
CITYOFHIGHPOINT,NORTHCAROLINA
MassTransitCapitalProjectsOrdinanceFund
ScheduleofRevenues,Expenditures,andChangesinNetPosition BudgetandActual(Non-GAAP) FromInceptionandfortheFiscalYearEndedJune30,2025
CITYOFHIGHPOINT,NORTHCAROLINA
ParkingFacilitiesFund
ScheduleofRevenues,Expenditures,andChangesinNetPosition
BudgetandActual(Non-GAAP) FortheFiscalYearEndedJune30,2025
CITYOFHIGHPOINT,NORTHCAROLINA
ParkingCapitalProjectsOrdinanceFund
Scheduleof Revenues,Expenditures,andChangesinNetPosition BudgetandActual(Non-GAAP) FromInceptionandfortheFiscalYearEndedJune30,2025
CITYOFHIGHPOINT,NORTHCAROLINA
BudgetandActual(Non-GAAP) FortheFiscalYearEndedJune30,2025
CITYOFHIGHPOINT,NORTHCAROLINA
SolidWasteCapitalProjectsOrdinanceFund Scheduleof Revenues,Expenditures,andChangesinNetPosition BudgetandActual(Non-GAAP) FromInceptionandfortheFiscalYearEndedJune30,2025
Revenues:
CITYOFHIGHPOINT,NORTHCAROLINA
LandfillClosureandPostclosureReserveFund
ScheduleofRevenues,Expenditures,andChangesinNetPosition BudgetandActual(Non-GAAP)
FortheFiscalYearEndedJune30,2025
1,893,092
1,672,092
2,440,154
CITYOFHIGHPOINT,NORTHCAROLINA
StormWaterFund
Scheduleof Revenues,Expenditures,andChangesinNetPosition
BudgetandActual(Non-GAAP) FortheFiscalYearEndedJune30,2025
CITYOFHIGHPOINT,NORTHCAROLINA
StormWaterFacilitiesCapitalProjectsOrdinanceFund
ScheduleofRevenues,Expenditures,andChangesinNetPosition BudgetandActual(Non-GAAP) FromInceptionandfortheFiscalYearEndedJune30,2025
CITYOFHIGHPOINT,NORTHCAROLINA
InternalServiceFund
The Internal Service Fund accounts for the financing of goods and services provided by onedepartmenttootherdepartmentsoftheCity. Thefollowingactivitieswereaccounted forintheInternalServiceFund:
FleetServices
ProvidethebestandmosteconomicalsupportservicestotheCityFleet.
RadioRepairShop
Responsible for the installation and maintenance of all City-owned communication systemsandcomponents.
ComputerReplacement
ResponsibleforfundingandreplacingalloftheCity’scomputertechnology.
HealthandWellnessBenefits
Responsible for the medical, dental, and vision insurance and various wellness programs forcityemployeesandretirees.
PrintShop
ProvidethebestandmosteconomicalprintingservicestotheCityDepartments.
GeneralRiskRetention
Usedtoaccumulateclaimreservesandtopayclaimsandadministrativefeesforgeneral andautoliabilityclaimsintheCity’sself-fundedriskprogram.
InternalService Fund
Schedule ofRevenues, Expenditures, andChangesinNetPosition BudgetandActual(Non-GAAP) Forthe FiscalYearEndedJune 30, 2025
CITYOFHIGHPOINT,NORTHCAROLINA
SUPPORTINGSCHEDULES
(1) ScheduleofAdValoremTaxesReceivable
(2) AnalysisofCurrentTaxLevy
(3) AnalysisofCurrentTaxLevyforSecondaryMarketDisclosure
(4) EmergencyTelephoneSystemFund-ScheduleofRevenues,Expendituresand ChangesinFundBalances-BudgetandActual
CITY OF HIGH POINT, NORTH CAROLINA
General Fund, Debt Service Fund, and Mass Transit Fund Schedule of Ad Valorem Taxes Receivable June 30, 2025
92,110,625
91,796,971 $
CITY OF HIGH POINT, NORTH CAROLINA
Analysis of Current Tax Levy City - Wide Levy For the Fiscal Year Ended June 30, 2025
CITY OF HIGH POINT, NORTH CAROLINA
Analysis of Current Tax Levy City - Wide Levy
For the Fiscal Year Ended June 30, 2025
Disclosures:
(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.
EmergencyTelephoneSystemFund ScheduleofRevenues,ExpendituresandChangesinFundBalances-BudgetandActual FortheFiscalYearEndedJune30,2025
725,723
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.
These schedules contain trend information to help the reader understand how the City's financial performance and well-being have changed over time.
These schedules contain information to help the reader assess the City's most significant local revenue sources: property taxes and enterprise fund revenues.
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
These schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place.
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 annual comprehensive financial reports for the relevant year.
CITY OF HIGH POINT, NORTH CAROLINA
Table I
Net Position by Component Last Ten Fiscal Years (accrual basis of accounting)
CITY OF HIGH POINT, NORTH CAROLINA
Table I
Net Position by Component Last Ten Fiscal Years (accrual basis of accounting)
Business-type Activities:
CITY OF HIGH POINT, NORTH CAROLINA
Table II
Changes in Net Position Last Ten Fiscal Years (accrual basis of accounting)
CITY OF HIGH POINT, NORTH CAROLINA
Table II
Changes in Net Position Last Ten Fiscal Years (accrual basis of accounting)
CITY OFHIGHPOINT,NORTHCAROLINA
TableII
ChangesinNetPosition LastTenFiscalYears
(accrualbasisof accounting)
TableII ChangesinNetPosition LastTenFiscalYears (accrualbasisof accounting) CITY OF
GeneralRevenuesandOtherChangesinNetPosition
(Concluded)
CITY OF HIGH POINT, NORTH CAROLINA
Table III
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
CITY
OF
HIGH POINT, NORTH CAROLINA
III
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(Continued)
CITY OF HIGH POINT, NORTH CAROLINA
Table III
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
General Fund Balances By 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.
CITY OF HIGH POINT, NORTH CAROLINA
Table III
(modified accrual basis of accounting) Last Ten Fiscal Years Fund Balances of Governmental Funds
CITY OF HIGH POINT, NORTH CAROLINA
Table IV
Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting)
Revenues:
CITY OF HIGH POINT, NORTH CAROLINA
Table IV
Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting)
CITY OF HIGH POINT, NORTH CAROLINA
Assessed Value and Estimated Actual Value of Taxable Property Table V
Ten Fiscal Years
2,386,998,229
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 fair 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 four years. The last reassessment was on January 1, 2022.
(4) Due to tax deferred/excluded amounts not being available by class type for fiscal years 2022-2025 estimates based on fiscal year 2021 rates have been used for residential, commercial & industrial real property.
Total Taxable Assessed Value
Real Property (3)
CITY OF HIGH POINT, NORTH CAROLINA
Table V Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years
CITY OF HIGH POINT, NORTH CAROLINA
Table VI
Direct and Overlapping Property Tax Rates Last Ten Fiscal Years
1 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
Source: Guilford, Forsyth & Davidson County Tax Departments
CITY OF HIGH POINT, NORTH CAROLINA
Table VII
Principal Property Tax Payers
Fiscal Years Ended June 30, 2025 and June 30, 2016
CITY OF HIGH POINT, NORTH CAROLINA
Table VIII
Property Tax Levies and Collections Last Ten Fiscal Years
Source: Guilford, Randolph, Davidson and Forsyth County Tax Departments
CITY OF HIGH POINT, NORTH CAROLINA
Table IX
Principal Water Customers
Fiscal Years Ended June 30, 2025 and June 30, 2016
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.
CITYOFHIGHPOINT,NORTHCAROLINA
FiscalYearsEndedJune30,2025andJune30,2016
Source:CityofHighPointWaterandSewerDepartment
Note:
1 PriortoFiscalYear2018,GuilfordCountySchoolswaspresentedasmultiplecustomersbylocation.
Source: City of High Point Utilities
Note:
CITY OF HIGH POINT, NORTH CAROLINA
1 Prior to Fiscal Year 2018, Guilford County Schools was presented as multiple customers by location. Table XI
Principal Electric Customers
Fiscal Years Ended June 30, 2025 and June 30, 2016
CITY OF HIGH POINT, NORTH CAROLINA
TABLE XII
Schedule of Water, Sewer, and Electric Operating Revenues Last Ten Fiscal Years
Water and Sewer Revenues By Year
CITY OF HIGH POINT, NORTH CAROLINA
TABLE XII
Schedule of Water, Sewer, and Electric Operating Revenues Last Ten Fiscal Years
CITY OF HIGH POINT, NORTH CAROLINA
Table XIII
Ratios of Outstanding Debt by Type Last Ten Fiscal Years
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.
CITY OF HIGH POINT, NORTH CAROLINA
Table XIII
Ratios of Outstanding Debt by Type Last Ten Fiscal Years
CITY OF HIGH POINT, NORTH CAROLINA
Table XIV
Ratios of Net General Bonded Debt Outstanding Last Ten Fiscal Years
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.
of Debt Applicable to Limit
CITY OF HIGH POINT, NORTH CAROLINA
Table XV
Legal Debt Margin Information Last Ten Fiscal Years (dollars in thousands)
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.
CITY OF HIGH POINT, NORTH CAROLINA
CITY OF HIGH POINT, NORTH CAROLINA
Table XVI
Direct and Overlapping Debt
As of June 30, 2025
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.
CITY OF HIGH POINT, NORTH CAROLINA
Table XVIII
Demographic and Economic Statistics
Last Ten Fiscal Years
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.
CITY OF HIGH POINT, NORTH CAROLINA
Source: North Carolina ESC, City of High Point Economic Development
Notes:
1 Total employment figures available for Guilford County only.
2 These organizations have multiple locations in the Piedmont Triad Area. The numbers shown reflect High Point-based employees only.
3 Full time equivalent number of employees as of December of the prior calendar year.
Table XIX
CITY OF HIGH POINT, NORTH CAROLINA
Table XX
Full-Time City Government Employees by Function Last Ten Fiscal Years
Source: City of High Point Budget and Evaluation Department.
Notes: The number reported is budgeted full time positions for the fiscal year.
CITY OF HIGH POINT, NORTH CAROLINA
CITY OF HIGH POINT, NORTH CAROLINA
Table XXI
Operating Indicators For Major Functions/Programs
Last Ten Fiscal Years
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.
CITY OF HIGH POINT, NORTH CAROLINA
Table XXI
Operating Indicators For Major Functions/Programs
Last Ten Fiscal Years
CITY OF HIGH POINT, NORTH CAROLINA
Capital Asset Statistics, By Function/Program Table XXII
Last Ten Fiscal Years
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.
CITY OF HIGH POINT, NORTH CAROLINA
Table XXII
Capital Asset Statistics, By Function/Program
Last Ten Fiscal Years
CITY
OFHIGHPOINT,NORTHCAROLINA
