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Special Meeting City Council | 6-24-26 | 9:00 a.m.

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News and Commentary

Summary of Special High Point City Council Meeting (6-24-26, 9:00 a.m.)

Opening / Procedural Items

  • Mayor Sarah Jefferson called the special meeting to order, noting:
    • All council members were present except Council Members Johnson and Harmon.
    • Johnson was expected to join virtually but couldn’t attend in person due to being ill.
    • Harmon was expected to arrive shortly.
  • The council adopted the agenda unanimously.
  • The council proceeded through several items, including budget ordinance considerations for city-affiliated downtown entities and related authorities.

Downtown / Related Budget Ordinances (Non–Main General Fund Budget)

The council approved budget ordinances for:

  • Downtown High Point (High Point DBA) — approved (motion passed)
  • High Point Market Authority — approved (motion passed)
  • Visit High Point (Convention & Visitors Bureau) — approved after Mayor Pro Tem Tim Monica Peters recused for this vote

These items passed without major dispute.

Main Issue: General Budget and Property-Tax Moratorium Impact

Why the Budget Is Uncertain This Year

Staff explained that NC Senate Bill 889 created a property tax reappraisal moratorium:

  • Passed in early May by the Senate
  • Passed the House on June 10
  • Signed by the Governor on June 19

Impact discussed:

  • High Point’s tax valuation changed from:
    • approximately $19.5B (higher reappraisal-based total under earlier assumptions)
    • to approximately $14.5B under the moratorium
  • Staff compared the original proposed budget (pre-moratorium) to updated valuation assumptions (post-moratorium).

High Point Tax Rate and Projected Budget Changes

  • Current city tax rate cited: 64.75
  • The updated proposal required a tax-rate increase, with discussion focused on:
    • a proposed tax rate equivalent around 73.49 cents (tied to budget needs under updated valuations)
  • Staff presented that, absent changes to service levels and incorporating “decision points,” the full set of items would require roughly an additional 8.74 cents above the current rate (as staff framed it).

Benchmarking Other Local Governments

Staff referenced other jurisdictions responding differently:

  • Greensboro — already approved a post-moratorium budget with a significant increase (reported increase from 67.25 to 79.85)
  • Davidson County, Lexington, Enso/Onslow-related jurisdictions, and Jacksonville — discussed as still undecided or scheduled for later votes
  • Buncombe/Asheville — already approved pre-moratorium; staff noted a possible legislative companion bill (not resolved at the time)

Constitutional Amendment (November) Adds Longer-Term Uncertainty

Staff discussed a constitutional amendment on the November ballot:

  • It does not immediately change property tax rules by itself.
  • It would direct the General Assembly to potentially impose limits on property tax growth/levies.
  • Council and staff emphasized that:
    • what those limits would be is unknown
    • the General Assembly may not provide clarity before budgeting work resumes, creating forward-looking uncertainty.

Public Safety Staffing and SSA Debate (Core Contention)

What SSA Is

Council and staff discussed adopting a Special Separation Allowance (SSA) for public safety—specifically to mirror police separation allowances.

Council asked whether High Point should also implement SSA for fire to remain competitive with peer cities.

Staff Estimate for Cost / Timing Assumptions

Staff provided a projected SSA cost schedule (based on staff assumptions, not an actuarial study):

  • If SSA began Jan 1, 2027, costs were expected to rise in later fiscal years (figures provided through FY31).

Comparables discussed:

  • Staff cited Gastonia and Mooresville as examples where SSA had been adopted.
  • Gastonia was described as paying about $1M/year by later years.
  • Questions were raised about how “surprised” local officials were and why.

Council Debate: Timing vs. Fiscal Risk vs. Competitiveness

Key tensions:

Arguments supporting SSA (most participants)

  • SSA separation benefits support recruitment and retention and help competitiveness with other cities (including Greensboro and others).
  • Although actuarial/CPA study timing was late, council members felt it was important to move forward rather than wait indefinitely.

Arguments to delay or oppose (minority position)

  • The decision was coming “fourth quarter,” raising concerns about rushing.
  • Uncertainty from Raleigh (moratorium + November amendment) could force future cuts.
  • Some members wanted additional information before committing.

Specific Motion Outcomes and Deadlock

The council repeatedly tested approaches and failed to reach agreement:

  • A substitute motion to increase the tax rate by 0.21 (up to 8.95) to include SSA resulted in a dead split, so it failed.
  • Multiple motions then failed, including ones proposing:
    • a budget with no SSA
    • budget approval with SSA

Ultimately, Mayor Jefferson brokered a compromise:

  • Adopt the budget at the 8.74 cent increase with SSA included, but without the additional 0.21 discussed earlier.

Final Vote / Result

  • The council approved a workable package:
    • Budget passed with an 8.74 cent tax increase and SSA included (per the mayor’s final compromise).
  • The meeting then adjourned after passing the adjournment motion.

Questions Raised Beyond SSA

Downtown Redevelopment Spending Timing

  • Councilman Harmon asked whether downtown redevelopment funds would be spent during this fiscal year.
  • Staff/mayor response indicated:
    • project timing is uncertain
    • references included potential changes/agreements and a July public hearing
    • future debt issuance would likely relate to certain projects

Fire Training Officer Positions and Budget Structure

  • Discussions linked SSA cost constraints to existing fire staffing plans, including whether positions could be reduced.
  • Some members opposed cutting fire safety training officers.

Fairness to Other Departments

  • Councilwoman Kever raised whether other departments might request similar benefits if fire receives SSA, and how the city would ensure consistency across departments.

Presenters / Contributors (Named)

  • Mayor Sarah Jefferson
  • Mayor Pro Tem Tim Monica Peters (recused for the Visit High Point vote)
  • Steven Harlook — Budget and Performance Director (primary presenter for budget/SSA/property tax moratorium updates)
  • Madam Attorney — city attorney (recognized a procedural question about recusal/meeting order)

Council members/speakers mentioned:

  • Councilman Holmes
  • Councilman Andrew (referenced in motions and questioning)
  • Councilman Moore
  • Councilman Williams
  • Councilman Harmon (arrived during the meeting)
  • Councilwoman Kever
  • Councilman Johnson (not present in person; noted for potential virtual participation)

Original video