Reserve Funds
Additional Information
As NC State Treasurer Dale Falwell said recently, “I wish all North Carolina municipalities were in the strong financial position as that of Highlands.”
Strong reserve funds help in states of emergency when we need the immediate assistance of private companies. The Reserve Funds help the town finance infrastructure projects without having to borrow money. The 1.8 million dollar Buckhorn water tank, for instance, was financed internally without having to borrow. So was the $850,000 new waterline on Split Rail Row. The town board periodically reviews the level of reserve funds. The state requires a minimum of 8%; even 10% to 15% would be dangerously low for Highlands. Heavy borrowing should be avoided to finance town projects because this helps keep property tax rates and utility charges low.
The town currently operates with a 50% reserve balances in our general and enterprise funds.
