COMPREHENSIVE
ANNUAL FINANCIAL REPORT
For the Fiscal Year Ended June 30, 2004
Mecklenburg County,
North Carolina
Vision Statement
To be the best local government service provider.
Mission Statement
To serve Mecklenburg County residents by helping improve their lives and community.
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Mecklenburg County
North Carolina
Comprehensive Annual Financial Report
For the Fiscal Year Ended June 30, 2004
J. Harry Weatherly, Jr.
Director of Finance
Prepared by the Finance Department
3
Table of Contents
INTRODUCTION
Letter of Transmittal
GFOA Certificate of Achievement
Five Year Trends
Facts and Information
Board of County Commissioners
Organizational Chart
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vii
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xxiii
xxiv
FINANCIAL
A-1
A-2
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A-4
A-5
A-6
A-7
A-8
A-9
A -10
Independent Auditors’ Report
1
Management’s Discussion and Analysis
3
Basic Financial Statements
Government-wide Financial Statements
Statement of Net Assets (Deficit)
Statement of Activities
Fund Financial Statements
Governmental Funds
Balance Sheet
Statement of Revenues, Expenditures and Changes in
Fund Balances
Reconciliation of the Statement of Revenues, Expenditures
and Changes in Fund Balances of Governmental
Funds to the Statement of Activities
General Fund Statement of Revenues, Expenditures and
Changes in Fund Balance – Budget and Actual
Proprietary Fund
Statement of Net Assets
Statement of Revenues, Expenses and Changes in Net Assets
Statement of Cash Flows
Fiduciary Funds
Statement of Net Assets
Notes to the Basic Financial Statements
Required Supplementary Information
Separation Allowance for Law Enforcement Officers – Analysis of
Funding Progress
B-2
Separation Allowance for Law Enforcement Officers – Schedule of
Employer Contributions
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B-1
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Table of Contents
Combining and Individual Fund Statements and Schedules
Nonmajor Governmental Funds
C-1
Combining Balance Sheet
C-2
Combining Schedule of Revenues, Expenditures and Changes
in Fund Balances
Special Revenue Funds
C-3
Combining Balance Sheet
C-4
Combining Schedule of Revenues, Expenditures and Changes
in Fund Balances (Deficits)
Capital Projects Funds
C-5
Combining Balance Sheet
C-6
Combining Schedule of Revenues, Expenditures and Changes
in Fund Balances (Deficits)
Other Financial Schedules
Agency Fiduciary Funds
D-1
Combining Schedule of Net Assets
D-2
Schedule of Changes in Assets and Liabilities
Grants Project Fund
E-1
Schedule of Revenues, Expenditures and
Changes in Fund Balance – Budget and Actual
Other Budgetary Schedules
Special Revenue Funds
F-1
Schedule of Revenues, Expenditures and Changes in
Fund Balance – Budget and Actual – Capital Reserve
F-2
Schedule of Revenues, Expenditures and Changes in
Fund Balance – Budget and Actual – Storm Water
Management
F-3
Schedule of Revenues, Expenditures and Changes in
Fund Balance – Budget and Actual – Law
Enforcement Service District
F-4
Schedule of Revenues, Expenditures and Changes in
Fund Balance – Budget and Actual – Transit
One-half Cent Sales Tax
F-5
Schedule of Revenues, Expenditures and Changes in
Fund Balance – Budget and Actual – Additional
One-half Cent Sales Tax
F-6
Schedule of Revenues, Expenditures and Changes in
Fund Balance – Budget and Actual – Scrap Tire
Disposal
F-7
Schedule of Revenues, Expenditures and Changes in
Fund Balance – Budget and Actual – Discarded
White Goods
F-8
Schedule of Revenues, Expenditures and Changes in
Fund Balance – Budget and Actual – Sheriff
F-9
Schedule of Revenues, Expenditures and Changes in
Fund Balance – Budget and Actual – Register of
Deeds
F - 10
Schedule of Revenues, Expenditures and Changes in
Fund Balance – Budget and Actual – County Facilities
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Table of Contents
F - 11
G-1
G-2
H-1
H-2
Schedule of Revenues, Expenditures and Changes in
Fund Balance – Budget and Actual – 911 Public
Safety Emergency Telephone Service
Capital Project Major Funds
Schedule of Revenues, Expenditures and Changes in
Fund Balance – Budget and Actual – 2004B Public
Improvement
Schedule of Revenues, Expenditures and Changes in
Fund Balance – Budget and Actual – 2004A Public
Improvement
Proprietary Fund
Schedule of Revenues and Expenses – Budget (Modified
Accrual Basis) and Actual – Solid Waste
Operating Fund
Schedule of Revenues and Expenditures – Budget and
Actual (Non-GAAP) - Landfill Construction, Final
Development and Postclosure Reserve Fund
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STATISTICAL
Government-wide Information
Government-wide Expenses by Function
Government-wide Revenues
Fund Information
Table 1
General Governmental Expenditures by Function
Table 2
General Governmental Revenues by Source
Table 3
General Fund Tax Revenues by Source
Table 4
Property Tax Levies, Tax Collections and Credits
Table 5
Tax Revenue and Taxes Receivable
Table 6
Analysis of Current Tax Levy
Table 7
Assessed and Estimated Actual Value of Taxable Property
Table 8
Property Tax Rates Per $100 Assessed Valuation – Direct and
Overlapping Governments
Table 9
Property Tax Levies – Direct and Overlapping Governments
Table 10
Schedule of Bonds Payable
Table 11
Schedule of Certificates of Participation Payable
Table 12
Ratio of Net Bonded Debt to Assessed Valuation and Net
Bonded Debt Per Capita
Table 13
Computation of Direct and Overlapping Debt – General Obligation Bonds
Table 14
Computation of Legal Debt Margin
Table 15
Ratio of Annual Debt Service Expenditures for General Obligation Bonded
Debt to Total General Governmental Expenditures
Table 16
Special Assessments Billings and Collections
Table 17
Demographic Statistics
Table 18
Construction, Bank Deposits and Property Value
Table 19
Principal Taxpayers
Table 20
Miscellaneous Statistics
Table A
Table B
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Introduction
Mecklenburg County, North Carolina
The Introduction provides background and general information about the County.
Mecklenburg County
North Carolina
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d
Davidson
Cornelius
Huntersville
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Charlotte
Mint
Hill
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Pineville
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Matthews
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Letter of Transmittal
Mecklenburg County
J. Harry Weatherly, Jr.
Director of Finance
September 30, 2004
The Board of County Commissioners
and County Manager
Mecklenburg County
Charlotte, North Carolina
The Comprehensive Annual Financial Report (Report) of Mecklenburg County for the fiscal year ended June 30,
2004 is submitted herewith. Responsibility for both the accuracy of the presented data and the completeness and
fairness of the presentation, including all disclosures, rests with the County. I believe the data, as presented, are
accurate in all material aspects; that it is presented in a manner designed to fairly set forth the financial position and
results of operations of the County as measured by the financial activity of its various funds; and that all disclosures
necessary to enable the reader to gain an understanding of the County’s financial activity have been included.
The Report is divided into three sections:
The Introduction includes this letter of transmittal, the organizational chart, and a list of the County’s principal
officials as well as facts and information and five-year trend data. This information is intended to familiarize the
reader with the organizational structure of the County, the nature and scope of the services it provides and the
specifics of its legal operating environment.
The Financial Section contains the independent auditors’ report, management’s discussion and analysis of the
year’s financial results, the basic financial statements and the accompanying notes to the financial statements.
Following the notes is the required supplemental information that presents certain disclosures and the combining and
individual fund statements of a more detailed nature.
The Statistical Section provides selected financial, economic, and demographic data for the past ten years to
facilitate trend analysis.
The Reporting Entity
Mecklenburg County was created from a portion of Anson County through a petition that was granted on December
11, 1762 by the Provincial Assembly, effective February 1, 1763. During the colonial period, a governor appointed by
the King of England administered the County. Settlers chose the name Mecklenburg for their county in the hopes of
gaining favor with King George III. His wife, Queen Charlotte, was born in the German province of Mecklenburg.
When Mecklenburg was established, it was considerably larger than it is today. Portions of what are now Cabarrus,
Union, Lincoln, Rutherford, Cleveland and Gaston Counties in North Carolina and part of South Carolina were all
once in Mecklenburg County. The City of Charlotte was incorporated on November 7, 1768 and was chosen the
county seat in 1774.
The current boundaries of the County were established in 1842. County officials continued to be appointed by the
governor until 1868. The Constitution of North Carolina was rewritten in that year to allow citizens, for the first time, to
elect officials to govern them at the county level. This form of government is still in practice today with the governing
body known as the Board of County Commissioners (the Board). In 1963, the Board adopted the County Manager
form of government and appointed a County Manager to perform the administrative duties of the County.
The Board has six district and three at-large members. Elections for Board members are held in November of evennumbered years, and candidates run for office as members of a political party. Any registered voter is eligible to run
for Commissioner. Following the election, Commissioners take office at the first meeting in December. It is also at the
first meeting in December each year that the Board elects a chairman and vice-chairman from among its members.
The Board appoints several officials to help carry out the County’s business: a County Manager, who serves as chief
executive officer; a County Attorney, who serves as legal advisor to the Board; a Director of Finance, who provides
required financial information and guidance for planning and conducting fiscal management in operating the County;
and a Clerk to the Board, who is responsible for keeping official Board records and preparing official minutes of all
Board meetings.
i
Letter of Transmittal
The County provides the following services: protection for both people and property; public works, including
improvements to public properties, community development, recreation and cultural activities; human services,
including social services, public health, mental health and environmental health; court support; and general
administration.
The County represents a primary government as defined by Governmental Accounting Standards Board Statement
14, as amended by Statement 39. In addition to the primary government, the basic financial statements include the
discrete presentation of three legally separate entities, the Public Library of Charlotte and Mecklenburg County, the
Mecklenburg County Alcoholic Beverage Control Board and the Mecklenburg Emergency Medical Services Agency.
These entities are component units of the County as defined by the Governmental Accounting Standards Board.
Major County Initiatives
As part of Mecklenburg Vision 2015, County operations have been divided into four strategic focus areas, each with a
specific goal:
Community Health & Safety, with the goal to make our community healthier and safer;
Effective & Efficient Government, with the goal to provide services in a highly effective, efficient and inclusive
manner, and to be accountable for results;
Social, Education and Economic Opportunity, with the goal of creating an environment where all Mecklenburg
residents can become self-sufficient and have equal access to services;
Growth Management & Environment, with the goal of having a vibrant and diverse economy while protecting
the natural resources and enhancing the quality of life.
To achieve these goals the County has adopted the balanced scorecard approach to strategic planning and
performance measurement, a methodology that holds that the complete measure of an organization’s performance
goes beyond just the bottom line to consider customer satisfaction, operational efficiency, and employee capacity and
motivation. The scorecard identifies the results the Board intends to achieve for the community, either as the primary
service provider or through partnerships with other organizations. The scorecard is being integrated into the budget
and financial reporting process over three years. During fiscal year 2004, the Board and management reviewed all
program areas to determine relevance to the County’s goals and mission, to examine performance and efficiency of
the programs and to prioritize services to County residents. The results of these reviews and the priorities set were
used in the budget process for fiscal year 2005.
The following accomplishments highlight some of the activities County departments have pursued toward
Mecklenburg Vision 2015:
•
Land Use and Environmental Service:
The County was the first in the U.S. to participate with the U.S. Geological Survey to develop the National
Map and NCOneMap website in support of homeland security.
The Ecosystem Enhancement Program for Little Sugar Creek through Freedom Park, which restored the
creek to more natural conditions, was completed.
FEMA officially adopted the County’s new floodplain maps for flood insurance purposes, which should
prevent over $330 million in flood losses by preventing development in harm’s way as identified in the
floodplain maps.
The Register of Deeds piloted an E-Recording Project to design and execute a fully electronic system for
document submission, approval and recording. When fully operational, this system will bring greater
efficiency to all parties involved in the deed recording process.
• Health and Human Services:
Area Mental Health continued to outsource services to contracted agencies thereby saving County dollars.
Grant awards to Area Mental Health will allow them to provide housing and various other services to seventy
new consumers.
The System of Care philosophy used within AMH Child and Adolescent Services has reduced the number of
out of state placements and reduced the cost of such placements by more than $1 million since fiscal year
2001.
The Health Department instituted the Fit City Challenge, a program to promote healthy diets and exercise for
County residents.
The Health Department, with the aid of a Health and Wellness Trust Fund grant, implemented nutrition and
exercise programs with community partners to reduce the epidemic of overweight and obesity in school age
children.
The Health Department launched a 30-minute television talk show, Salud y Vida, to reach the Spanish
speaking population regarding health issues.
ii
Letter of Transmittal
•
•
•
Social Services, through the Work First program, placed 1,758 individuals in the community workforce,
achieving 106% of their goal.
Social Services implemented the first Integrated Social Services Information System in the nation. By
combining Adult Social Work, Medicaid, Work First Cash Assistance and Employment Services, Food
Stamps and Welfare Fraud into one system, Social Services can provide more timely response and more
complete services to their clients.
Administrative Services
During fiscal year 2004 the County implemented a new, integrated Human Resources and Payroll System
which increases efficiency, facilitates payroll cost allocations and shortens response time to payroll/benefit
questions via an employee self-service application.
The Tax Collector and Sheriff combined efforts to collect delinquent taxes producing more than $3 million in
property tax revenues.
The County developed an online web tool to allow citizens to simulate resource allocations during the
budget cycle with the goal to provide greater knowledge of, and appreciation for, the challenges facing the
County during the budget process.
Detention and Court Support Services:
Construction of the new 34-courtroom courthouse, to be completed in 2006, is underway.
The Sheriff’s Department successfully negotiated an increase in the reimbursement rate from the U.S.
Marshal Service thereby saving County dollars.
Community Services
Park and Recreation enhanced the Community Garden program providing urban garden plots in fourteen
accessible locations.
Park and Recreation has partnered with Queens University for the development of a Sports Complex at
Marion Diehl Park resulting a in $16 million value in capital funding.
The Women’s Commission developed a new REACH Program to help teens who have witnessed domestic
violence and are demonstrating at-risk behaviors.
Economic Factors Affecting Financial Condition
The County is the center of the nation’s fifth largest urban region, with Charlotte, a mid-sized city, as the largest city.
More than 6.8 million people live within a 100-mile radius of Mecklenburg County. Over half of the nation’s
metropolitan markets with populations over one million are within 650 miles of Charlotte. As a result, Charlotte and
Mecklenburg County have emerged as a financial, distribution and transportation center for the entire urban region.
The County continues to be an important location for
regional headquarters of major national and international
companies. More than 440 foreign firms have facilities in
the County. A large number of national corporations have
selected the County for establishment of sales offices,
division headquarters, research and development facilities
and other administrative units.
Mecklenburg County is headquarters to 687 corporations,
and there are 280 offices of Fortune 500 service and
industrial companies in the area, including nine headquartered in the County – Duke Energy, Goodrich, Inc.,
Nucor, Sonic Automotive, Family Dollar, SPX, Bank of
America, Lowe’s and Wachovia Corporation. Major
corporations operating within the County include IBM,
AT&T, and Travelers Insurance. For calendar year 2003,
business growth included approximately 862 new or
expanded businesses in the County, creating over 9,700
new jobs and representing approximately $900 million in
capital investments.
The County has not experienced the effects of the nation-wide economic slow-down of the past two years as much as
other regions of the country. The area has continued to grow due to the benefit of the banking industry located in the
County. Mecklenburg County is the second largest financial center in the United States, and serves as headquarters
for financial institutions with assets of approximately $1.1 trillion. Bank of America and Wachovia Bank, two of the
nation’s five largest banks ranked by assets, are headquartered here. In total, there are 24 banks with over 200
banking offices located in the County. Many of the banks in the County have international departments, overseas
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Letter of Transmittal
branches and representative offices offering investment banking, foreign currency exchange, multi-currency loans,
trade financing, letters of credit, money transfers and cash management. In addition, over 350 mortgage and
commercial finance institutions operate in the County. Employment in the financial and insurance sector is estimated
to exceed 75,000. Also, a branch of the Federal Reserve Bank and a branch of the United States Small Business
Administration are located in the County.
The County has emerged as a center for communications
activities as a result of the concentration of communications
related companies in the County. The County has within its
boundaries
the
state
headquarters
of
BellSouth
Telecommunications, Western Union’s District Office for the
state, one of AT&T’s five regional processing centers, nine
commercial television stations, one public television station, 27
radio stations, a newspaper with an average daily circulation of
over 240,000, and twelve weekly newspapers.
th
The County’s wholesale sales volume places it 6 on the list of
U.S. markets, and according to Site Selection magazine, the
th
County ranks 5 in the nation for new and expended distribution
operations since 1990. The County is home to distribution
operations for such diverse companies as Family Dollar, Black &
Decker, Winn-Dixie, Lucent Technologies and TJ Maxx. The
Charlotte Foreign Trade Zone (FTZ #57) and an inland port
facility make the County a convenient point for manufactures to
move goods within the United States and to the state ports in
Wilmington and Morehead City.
Although distribution and finance are the primary areas of activity, tourism is an expanding industry and
manufacturing continues to be significant to the County. Important industries include food products, printed and
published material, textile and other machinery, and chemicals. The County has more than 1200 manufacturing firms
that employ more than 39,000 workers. Tourism has generated numerous jobs, accounting for 11% of the County’s
employment. Events at the Convention Center and Coliseum as well as the variety of sporting events in the area,
such as the Carolina Panthers, a National Football League franchise, bring many visitors to the area.
For the last several years, the County has experienced an unemployment rate less than the national average. This
trend continued for fiscal year 2004. At June 30, 2004, the unemployment rate for the County was 5.2%, ten percent
below the national average of 5.8%, and it is expected to remain at this level into the next year.
Long-term Financial Planning
Providing the additional services that accompany continued growth, as well as financing the new schools, parks,
libraries and other facilities needed to meet this growth, is a recurring challenge faced by the County, particularly
when needs seem to outpace resources. Capital needs are assessed on a three-year and ten-year basis every two
years. Requests are presented to the Citizens’ Capital Budget Advisory Committee (CCBAC), an eleven-member
advisory group, nine appointed by the Board and two appointed by the Board of Education. The CCBAC reviews,
evaluates and prioritizes requests and recommends a capital improvement program to the Board in the spring of
even-numbered years. In June, the Board adopts the capital improvements program and needed referendums are
held in the fall. Bond sales are scheduled for January of each year to meet the cash needs of the capital projects. No
bond referendum was held during fiscal 2004, but a $69 million referendum for Park and Recreation facilities is
scheduled for November 2004. Certificates of participation are also used to fund school, County and library capital
needs.
During fiscal 2004 the County issued $105 million of general obligation bonds for school and community college
facilities, park and recreation facilities, and library and court facilities, $100 million variable rate bonds and $18.2
million of certificates of participation for construction and renovation of school facilities and County buildings, and
$135.5 million of bonds used to partially refund general obligation bonds issued in 1996.
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Letter of Transmittal
Financial Information
County management is responsible for establishing and
maintaining a comprehensive internal control framework
designed to ensure that the assets of the County are
protected from loss, theft or misuse, and that accounting
data are compiled to allow for the preparation of financial
statements in conformity with generally accepted accounting
principles. The internal control framework is designed to
provide reasonable, but not absolute, assurance that these
objectives are met. The concept of reasonable assurance
recognizes that: 1) the cost of a control should not exceed
the benefits thereof; and 2) the evaluation of costs and
benefits
requires
estimates
and
judgements
by
management.
We believe the County’s internal controls adequately
safeguard assets and provide reasonable assurance of
proper recording of financial transactions in compliance with
the laws and regulations, contracts and grants.
Budget Process
State Statutes require the adoption of an annual balanced budget for all funds, except the agency fiduciary funds and
those authorized by project ordinance. The process begins in fall with the Executive Conference for members of the
management group to determine the major issues and challenges confronting the County. In January, these issues
and challenges are presented and discussed at the Board’s Strategic Planning Conference, the outcome of which is a
strategic budget plan. Following the Strategic Planning Conference, a workshop is held for department directors and
budget unit managers to present the budgetary guidelines and materials in accordance with the strategic budget plan
goals and objectives. Based on these guidelines each department prepares a service level budget. During February
and March budget reviews and discussions are held with each department.
The County
Manager, using revenue projections based upon current trends and anticipated changes prepared by the Director of
Finance, and using expenditure budgets resulting from the department service level review process, prepares a
recommended budget that is submitted to the Board of County Commissioners in May. The Commissioners hold
a public hearing and budget workshops before approving the final County budget by July 1, in accordance with
statutory regulations.
During the fiscal year, the County Manager or his designee is authorized to transfer budgeted amounts within any
fund; however, any revisions that alter the total budget of any fund must be approved by the Board of County
Commissioners. Budget to actual comparisons are provided in this report for each individual governmental fund for
which an appropriated annual budget has been adopted. For the General Fund, this comparison is presented as part
of the basic financial statements. For governmental funds, other than the General Fund, with appropriated annual
budgets, the budget and actual comparisons are included in Combining and Individual Fund Statements and
Schedules.
Cash Management
North Carolina General Statutes authorize counties to invest in obligations of the U. S. Treasury; obligations of any
agency of the United States of America, provided the payment of principal and interest of such obligations is fully
guaranteed by the United States; certain quasi-federal agencies; commercial paper bearing the highest credit rating
available; bankers’ acceptances of accepting banks or holding companies either (i) incorporated in the State of North
Carolina or (ii) having the highest available long-term debt rating; and the North Carolina Capital Management Trust,
an SEC registered (2a-7) mutual fund.
All of the County’s investments are classified in the lowest credit risk category or are exempt from risk categorization
because third party custodians take delivery of investment securities. County deposits are maintained with financial
institutions which collateralize excess deposits by the option which allows securing uninsured deposits through the
pooling of collateral method established by the depository with the State Treasurer for benefit of the State and local
participating units as permitted under North Carolina Administrative Code, Title 20, Chapter 7. Additional information
about the County’s cash and investments activity is contained in the Notes to the Financial Statements.
v
GFOA Certificate of Achievement
Mecklenburg County, North Carolina
vii
Five Year Trends
viii
Five Year Trends
Five-year trend analysis is provided for the County’s governmental activities, excluding capital project revenues and
expenditures. Exhibits 1 and 2 present five-year revenue and expenditure trends, respectively. Revenues are
presented as whole dollars, while the expenditures are shown on a per capita basis. Both exhibits have been
adjusted for inflation, so that each dollar in any given year has the buying power of a 2004 dollar. The Implicit Price
Deflator Index (base year = 2000), a nationally recognized indicator of annual economic growth, was used to make
this adjustment.
REVENUES
Property taxes are the most significant source of revenue during the five-year period presented by Exhibit 1.
Approximately 57.8% of all County revenue in fiscal year 2004 came from property taxes, an increase of 5.6% from
fiscal year 2003. The County revalued property in January 2003 for the fiscal year 2004 tax collection. Partially
offsetting the revaluation was a drop in the tax rate from 83.97 cents per $100 of assessed valuation to 73.64 cents
per $100 of assessed revaluation. The increase in tax revenues, therefore, is due to both an effect of revaluation and
a growth in the tax base resulting from new residential and commercial building . Since the tax rate for fiscal years
2003 and 2002 were the same, the increase for those years reflects growth in the tax base.
Although inflation adjusted intergovernmental revenues dropped only $.37 million from fiscal year 2003, the
contribution to total revenues for governmental activities for intergovernmental revenue dropped from 16.3% to
14.3%. The decrease in fiscal year 2004 as well as 2003 reflects the general reduction of grant awards available and
a more competitive grant market. The County continues to actively seek available grant funds, but grants sources
have declined in the past three years.
Sales tax revenue increased in fiscal years 2000 and 2001, and a slight drop in sales tax revenues occurred in fiscal
year 2002 due to the slow down in the economy and the State’s change in distribution method from the point of sale
to the point of delivery. Sales tax revenues, excluding the one-half cent sales tax restricted for transit development,
increased $15.2 million in fiscal year 2003 due in part to the $12 million from the new one-half cent sales tax
approved by the Board of County Commissions to offset the State’s cancellation of certain reimbursements to
counties. Sales tax revenues for fiscal year 2004, excluding the one-half cent sales tax restricted for transit
development, are $6.9 million less than fiscal year 2003 reflecting the slower retail marketplace.
Charges for services provided 7.6% of revenues for fiscal year 2004, as compared to 7.2% in fiscal year 2003 and
6.9% in fiscal year 2002. These revenues have increased gradually over the five-year period, reflecting the increase
in fee-based activities.
Interest on investments for fiscal year 2004 declined from 2003, continuing the downward trend that began in fiscal
year 2001. Most of the decline resulted from the investment markets low rates although some can be attributed to a
change in portfolio balances. Interest on investments contributed .5% of total County revenues as compared to .7%
of total County revenues for fiscal year 2003, 1.4% in fiscal year 2002 and 3.1% in fiscal year 2001.
EXPENDITURES
CUSTOMER SATISFACTION AND MANAGEMENT SERVICES
This core service includes the County Commissioners, Manager’s Office, and Public Service and Information. It
represents only .4% of total expenditures for governmental activities. Expenditures on a per capita basis for this core
service increased 9.6% over the prior year. For fiscal year 2004, expenditures on a per capita basis were $5.70 as
compared to $5.20 for fiscal year 2003, and $4.50 in fiscal year 2002.
LAND USE AND ENVIRONMENTAL SERVICES
Land Use and Environmental Services represent 8.4% of expenditures for governmental activities. Code
Enforcement, Storm Water, Property Assessment and Land Records, Environmental Protection and Environmental
Health, plus the Register of Deeds comprise this core service. During the last five years inflation adjusted cost per
capita has declined from $84.94 for fiscal year 2001 to $57.92 for fiscal year 2004. This change is due to efficiencies
in operations and the completion of several major storm water projects.
ix
Five Year Trends
COMMUNITY SERVICES
Community Services consists of Park and Recreation, Elections, Women’s Commission and the Library, and
represents 5.06% of total expenditures for governmental activities. For fiscal years 2000 through 2003, cost per
capita for this core service remained stable at approximately $72. For fiscal year 2004, cost per capita dropped 7.5%
to $66.82 as a result of eliminating two low priority programs and conscious cost monitoring.
HEALTH AND HUMAN SERVICES
County operations for Social Services, Public Health and Mental Health are the primary departments in this core
service, and the costs for these services represent 26.8% of expenditures for governmental activities. The County’s
commitment to meet the human services needs of its residents is reflected in expenditures for this core service. Since
2000 inflation-adjusted expenditures in Health and Human Services have increased 16.9%, yet the change on a per
capita basis is a reduction from $375 per capita in fiscal year 2000 to $354 per capita in fiscal year 2004. The graph
excludes federal and state benefit payments made directly by the State to County social services clients. If these
funds had been included, the expenditures per capita for fiscal year 2004 would have been $930.
DETENTION AND COURT SUPPORT SERVICES
Detention and Court Support Services represent 7.7% of expenditures for governmental activities. Court Services,
Medical Examiner and Sheriff’s Office, including jail operations, are included in this core service area. Detention and
Court Support Services inflation-adjusted expenditures on a per capita basis have remained stable since fiscal year
2002, as the activities in this core service have not changed. Costs per capita for fiscal year 2004 were $101.76.
ADMINISTRATIVE SERVICES
This core service consists of County internal and administrative activities that provide management support to other
County departments and operations. Included here are Internal Audit, Human Resources, Information Services and
Technology, General Services, Real Estate Services, and Legal Services. Administrative Services represent 3.5% of
expenditures for governmental activities. Expenditures per capita for fiscal years 2004 and 2003 remained level at
$46.
FINANCIAL SERVICES
Resource management is the focus of this core service that represents .5% of expenditures for governmental
activities and consists of Finance and Tax Collection. Expenditures per capita have been stable at $7 for fiscal years
2004 and 2003, and have dropped 50% since fiscal year 2000 reflecting the completion of computer upgrades in
fiscal year 2000 and to reduce costs in the following years.
BUSINESS PARTNERS
Allocations and appropriations to other governmental entities and for joint governmental activities are included in this
core service that represents 34.7% of expenditures for governmental activities. Primary recipients of County funding
are the Charlotte-Mecklenburg Schools, Central Piedmont Community College, WTVI, and the Mecklenburg
Emergency Medical Services Agency, a component unit of the County. Funding to the Charlotte-Mecklenburg Board
of Education is the primary Business Partners expenditure. For fiscal year 2004, the schools received $267 million
for current operations and capital outlay, which represents 66% of total Business Partners expenditures. This funding
level is consistent with prior years. The increase in the per capita expenditures for Business Partners from fiscal year
2000 through fiscal year 2002 is due to providing additional support to the schools. Funding levels to the schools
remained constant for fiscal years 2003 and 2004. Business Partners inflation adjusted expenditures for fiscal years
2004 and 2003 were $367.7 million and $362.9 million, respectively, resulting in per capita amounts of $477 for fiscal
year 2004 and $469 for fiscal year 2003.
DEBT SERVICE
Debt Service, which consists of principal and interest payments for debt used for County projects and debt issued for
the Charlotte-Mecklenburg Schools, Central Piedmont Community College, and the Library, has increased as new
debt has been added, primarily to meet the construction needs of the rapidly growing school system. Debt service
represents 15.9% of expenditures for governmental activities. Debt service expenditures per capita have increased
from $169 in fiscal year 2000 to $210 in fiscal year 2004.
x
Facts and Information
COUNTY ADMINISTRATION AND OPERATIONS
The nine-member Board of County Commissioners (the Board) holds regular business sessions on the first and third
Tuesday of each month and conducts a Public Policy Workshop on the second Tuesday of each month. All meetings
of the Board are open to the public. Major duties of the Board include:
Assessing and assigning priorities to the needs of the County, and establishing programs and
services to meet those needs.
Adopting an annual balanced budget to fund County programs and services.
Establishing the annual County property tax rate.
Appointing officials, including members of County boards and commissions, and certain County employees.
Regulating land use and zoning outside the jurisdiction of municipalities.
Enacting policies concerning the operation of the County.
Enacting local ordinances.
Calling bond referendums, entering into contracts and establishing new programs and departments.
Day to day operations of the County are the responsibility of the County Manager. In this capacity he is assisted by a
staff that includes three General Managers, an Executive Assistant, two Assistants to the County Manager, and 23
Department Directors. Major duties of the County Manager include:
Supervising and coordinating activities of County Departments.
Implementing all orders and policies of the Board.
Attending all Board meetings and making recommendations on appropriate matters of business.
Recommending an annual budget and advising the Board on the financial condition of the County.
Presenting, with recommendations, the Capital Improvements Program.
Appointing various employees.
Representing the County in business with other agencies and performing other duties assigned by the
Board.
To provide services mandated by State statutes and to meet the needs identified by the Board, the County had 4,092
full time employees and 501 part-time or seasonal employees at June 30, 2004, who are distributed between the core
service areas as follows:
Exhibit 1
NUMBER OF EMPLOYEES
Mecklenburg County
June 30,
2004
Customer Satisfaction and
Management Services
Full-Time
Administative Services
Full-Time
Other
Financial Services
Full-time
Land Use and Environmental Services
Full-Time
Other
Community Services
Full-Time
Other
Detention and Court Support Services
Full-Time
Other
Health and Human Services
Full-Time
Other
Total Employees
Full-Time
Other
Grand Total
48
284
16
80
555
23
393
314
1,117
30
1,615
118
4,092
501
4,593
xi
Facts and Information
FISCAL CONTROL
Once the annual budget is adopted each June by the Board, including setting the property tax at a rate necessary to
produce sufficient revenue to accommodate the budget, the Director of Finance is responsible for monitoring
expenditures of the various County departments to prevent expenditures from exceeding budget appropriations.
Purchase orders and contracts are not considered valid until the Director of Finance has certified that funds are
available to make payment upon satisfactory completion of the contract or delivery of the items ordered.
TAX RATE
Exhibit 2
The tax rate is set each year by the Board when the budget ordinance is
adopted. Exhibit 2 presents the County's tax rates since fiscal year 2000. N.
C. General Statutes require a real property revaluation at least once every
eight years; however, the County has adopted a policy to revalue every four
years. Real property was revalued during fiscal year 2003 for the fiscal year
2004 budget, allowing in a reduction in the tax rate necessary to produce
sufficient revenue to meet the fiscal year 2004 budget needs.
PROPERTY TAXES
Real property and automobiles, boats, trailers and income-producing personal
property are subject to property tax unless specifically exempted by North
Carolina statutes. Major property tax exemptions granted by the statutes
include governmental organizations, charities, religious institutions,
educational and cultural organizations, veterans' organizations and fraternal
lodges. North Carolina statutes also exempt certain properties from listing for property taxes, including burial
properties, solid waste disposal equipment, business inventory, cotton in storage (under certain conditions), and air
and water pollution equipment. Reduced assessments are granted to owners of farms, historical properties, single
residences of the elderly, and certain disabled veterans. For fiscal year 2004, the County's total exempted or reduced
assessments were approximately $8.3 billion in real and personal property valuation. Exhibit 3 shows the counties in
the State with an assessed valuation exceeding $8 billion, their tax levies and rates.
Exhibit 3
PROPERTY TAXES IN NORTH CAROLINA
With Assessed Valuations over $8 Billion
County
Alamance
Brunswick
Buncombe
Cabarrus
Catawba
Cumberland
Davidson
Durham
Forsyth
Gaston
Guilford
Henderson
Iredell
Johnston
Mecklenburg
New Hanover
Orange
Randolph
Rowan
Union
Wake
Valuation
$ 9,437,631,782
13,169,445,376
17,714,063,471
11,689,890,650
12,635,959,798
14,156,897,574
9,574,650,664
20,092,935,509
24,851,137,237
11,735,213,665
32,239,063,911
8,687,468,682
13,045,353,169
8,659,121,437
72,587,085,066
17,357,323,315
9,743,415,861
8,408,170,507
9,310,692,518
10,808,933,701
68,330,444,100
Levy
$ 48,926,598
68,866,946
104,512,974
65,463,388
60,795,972
125,118,270
50,745,648
153,208,330
171,969,870
105,035,024
229,105,683
41,365,907
56,835,429
67,881,911
539,394,440
118,130,367
82,349,634
41,867,219
58,695,705
56,706,713
410,868,521
Revaluation
2001
2003
2002
1999
2003
2003
2001
2001
2001
2003
1996
2003
2003
2003
2003
1999
2001
2001
2003
2000
2000
Tax Rate
$.52
.52
.59
.56
.48
.88
.53
.763
.692
.893
.7135
.475
.435
.78
.7364
.68
.845
.50
.63
.53
.604
Note: Includes valuations of classified registered motor vehicles for which tax notices were issued in
accordance with G.S. 105-330.5(a) on or before December 31, 2003, net of releases made by that date.
Source: N. C. Department of Revenue, Tax Research Division
xii
Facts and Information
COUNTY SERVICES
The services the County provides for its residents are categorized into the four major areas described below.
HEALTH AND HUMAN SERVICES
This core service includes Social Services, Health and Mental Health, and Veterans Services. The Board serves as
the Board of Social Services, Board of Health and Area Mental Health Authority. The Board draws on the advice of a
24-member citizens board called the Human Services Council.
The Department of Social Services (DSS) provides the services necessary to prevent or relieve economic and
emotional hardship, and to rally the community to improve the quality of life for its residents. State and Federal
agencies regulate the County’s social services programs, and the majority of their funding comes from these sources.
DSS is charged with the Countywide administration of all social services programs.
The major divisions of DSS are Economic Services, Services for Adults and Youth and Family Services. Economic
and temporary assistance are handled through Economic Services and includes Work First, Food Stamps and
Medicaid. Youth and Family Services address the special needs of families and children, providing protective
services, foster care, adoption, and emergency assistance. The Services for Adults Division provides assistance for
adults and individuals with disabilities, including Medicaid, adult protective services, senior congregate nutrition,
home delivered meals, transportation, community social work and monitoring of adult group care homes. All services
promte independence and the highest quality of life in a least restrictive environment to delay or eliminate placement
in an institutional setting at a far greater cost.
The Health Department is responsible for assessing health
services in the community, mobilizing community action to
address them, and protecting the health of the public by
assuring that essential services are provided. Services include
health promotion and education, communicable disease control,
clinical preventive services, dental health, public health
laboratory services, epidemiology and vital statistics. The
County contracts with the Carolinas HealthCare System for an
extensive range of these public health services.
The Area Mental Health, Developmental Disabilities and
Substance Abuse Authority (Area Mental Health) administers,
coordinates and monitors the delivery of substance abuse,
mental health and developmental disabilities services and
programs for County residents. A wide range of prevention,
treatment and rehabilitation services are available in all three
areas. Services for the severe and persistently mentally ill, including medication management and day programs, are
directly provided through Area Mental Health’s Case Management Services. Case management is also provided for
severely and emotionally disturbed youth whose behavior brings them into conflict with their families, schools and the
courts, as well as for individuals whose developmental disabilities include mental retardation and autism.
Detoxification and residential rehabilitation services are provided to those citizens experiencing the physical and
psychological problems associated with alcohol and drug abuse, while education services aid in the prevention of
substance abuse.
Children’s Developmental Services provides assessment, evaluation and treatment for
developmentally delayed infants and toddlers through age five.
Area Mental Health oversees a wide range of services and interventions for children and adults contracted for by the
County with numerous private agencies and practitioners, including those provided by the Carolinas HealthCare
System through the Behavioral Heath Center-Randolph, where inpatient and outpatient treatment and education
services are available. This oversight ensures that treatment services offered deliver positive clinical outcomes costeffectively.
xiii
Facts and Information
DETENTION AND COURT SUPPORT SERVICES
The departments within this core service area are Court Support
Services, Sheriff, Jail, and Medical Examiner. Their primary
responsibility includes services such as processing arrests,
holding arrestees during pre-trial periods, providing court
facilities and performing autopsy services. The sheriff is
responsible for supervising all activities relating to the jails,
providing bailiffs in courtrooms, serving court orders and papers
and issuing handgun permits. A sentenced jail facility with a
capacity of 614 prisoners is located in the northern part of the
county, and Jail Central, located in downtown Charlotte, is a pretrial facility with 1,904 beds. The Work Release Restitution
Center, also located in downtown Charlotte, has 150 beds.
LAND USE AND ENVIRONMENTAL SERVICES
This core service area includes the Land Use and Environmental Services Agency and the Register of Deeds. The
services provided by the Land Use and Environmental Services Agency include listing and appraising all real and
personal property in the County and regulating the development of land and construction of residential, commercial
and industrial facilities. Other services offered are regulating solid waste disposal, regulating sanitation of food and
lodging establishments, regulating groundwater ordinances, monitoring air pollution and control of hazardous
substances. Some staff members serve, by law, as agents of the Federal EPA in the enforcement of air quality
programs. The Register of Deeds office handles deed filings, land transfers and vital records.
COMMUNITY SERVICES
Included is this core service area are the Public Libraries, Park and Recreation, Women’s Commission and Elections.
The Public Library, reported as a component unit in the basic financial statements, provides research services,
access to reading and audio-visual materials as well as special programs for children and senior citizens at the Main
Library and 22 branch libraries. Park and Recreation offers a variety of educational, cultural and recreational
activities. This is accomplished through the programs offered to the residents of the County at the numerous parks,
greenways, recreation centers and golf courses located on more than 16,000 acres of park land throughout the
County. The Board of Elections supervises and manages all activities relating to elections, including voter
registration and the operation of voting sites and services. There are over 446,000 registered voters in the County.
Women’s Commission provides guidance, counseling, education and vocational assistance to promote the well-being
and productiveness of women.
OTHER CORE SERVICES
The four major service areas are supported by general operating departments organized into the three areas:
Customer Satisfaction and Management Services, Administrative Services and Financial Services. Business
Partners contains expenditures to the various agencies the County funds under statutory regulations: CharlotteMecklenburg Schools, Central Piedmont Community College, Mecklenburg Emergency Medical Services Agency,
and WTVI. Also included are funds to other outside agencies that receive some County support.
THE COUNTY’S ECONOMIC LANDSCAPE
GENERAL DESCRIPTION
Mecklenburg County is located in south central North Carolina on the South Carolina border. Situated in the gently
rolling Piedmont Region of the Appalachian Highlands, the County is approximately 180 miles from the Atlantic coast,
390 miles southwest of Washington, and 250 miles northeast of Atlanta. Mecklenburg's topography varies from a
mean sea level measurement of 840 feet at the northern end to 532 feet at the southern boundary. The County has a
landmass of 541 square miles which excludes approximately 26.5 square miles of water resources provided by Lake
Wylie, Mountain Island Lake, Lake Norman, and the Catawba River. Mountain Island Lake is the primary source of
usable water for the County. The lakes, all part of the Catawba River Basin, are utilized in the production of electricity
and provide recreational areas for the County.
xiv
Facts and Information
The County is the most populous county in the State. Exhibit 4
shows the consistent growth pattern of the County during the past
five years. The County enjoys a relatively comfortable year-round
climate that makes it appealing to residents and industry alike.
The weather includes sunny or partly sunny skies about eight
months out of the year. Extreme temperatures and severe weather
are rare. Winters are mild with a January average temperature of
39.3 degrees. The average temperature in July is 79.3 degrees.
Average rainfall is 43.1 inches. The combination of moderate
temperature and reasonable humidity makes the County well
suited for commerce and industry.
Exhibit 4
Mecklenburg County Population
2004
2003
2002
2001
2000
801,137
773,299
746,427
720,490
695,454
Source: Charlotte Chamber of Commerce
GENERAL ECONOMIC INDICATORS
The County has not experienced the effect of the nationwide economic changes as much as other areas of the
country. Sales and Marketing Management's Survey of Buying Power reveals that the County’s Effective Buying
Income (EBI) has been consistently above the national average over the last 5 years. The EBI is an accepted
economic indicator of income after mandatory taxes have been subtracted.
Exhibit 5 shows the EBI per capita for the County as compared with the United States' values; both have been
adjusted to account for inflation. Gross Retail Sales, generally accepted as a reliable indicator as to how well an
economy is progressing, are shown in Exhibit 6 for the County. The data is provided by the North Carolina
Department of Revenue, which changed its method of reporting in year 2002. For the years 1999 through 2001,
gross sales are reported based on point of sale, while sales for years 2002 are reported based on point of delivery.
Although the County has not experienced the same level of economic sluggishness as the rest of the country, retail
sales have declined as shown in Exhibit 6. Data for the year ended June 30, 2004 is not currently available.
Exhibit 5
Exhibit 6
GROWTH OF THE TAX BASE
Exhibit 7 shows the increase in the tax base over the last five years. The County revalued property in January 2003
for tax billing in fiscal year 2004. Property assessments increased 20% from the prior year to $83.5 billion. During
fiscal years 2000 through 2004, the total general tax levy increased from $440.7 million to $618.2 million based upon
adjusting the levy for inflation using the Implicit Price Deflator Index (Base Year = 1996) and then divided by the
County population to show the Tax Levy Per Capita trend given in Exhibit 8. Taxes for Charlotte-Mecklenburg
residents are comparable to other areas of the nation with similar demographics.
xv
Facts and Information
Exhibit 8
Exhibit 7
Exhibit 9 lists the County’s principal taxpayers and shows the wide range of industrial categories they represent.
Exhibit 9
MECKLENBURG COUNTY
PRINCIPAL TAXPAYERS
Fiscal Year 2003-04
Type of
Enterprise
Assessed
Value
Tax Levy
Utility
Financial Services
Financial Services
Utility
Hotel Group
Real Estate
Transportation
Property Management
and Development
Utility
Football Stadium
$2,211,554,506
1,108,871,866
874,200,135
582,628,686
565,699,031
467,488,542
419,748,379
$18,837,538
8,183,014
6,446,834
4,547,594
5,039,755
3,506,005
3,091,027
355,828,304
286,311,421
193,886,977
2,620,337
2,152,719
1,427,784
Firm
Duke Energy
Bank of America
Wachovia Corporation
BellSouth Telecommunications
Pano/Smith
Bissell
USAirways, Incorporated
Childress Klein
Piedmont Natural Gas
Carolina Stadium/Panthers
Source: Tax Collector
TRANSPORTATION
Availability of transportation alternatives is a major draw for attracting businesses to the County. The County is
served by Interstate Highways 77 and 85, which intersect in Charlotte; by U.S. Highways 21, 29, 74, and 521; and by
N.C. Highways 16, 24, 27, 49, 51, 73, 115 and 160. Forty miles of the 67-mile I-485 outerbelt freeway being built
around the inside perimeter of the County have opened for traffic. Major expansion, maintenance and improvements
of primary and secondary highways within the County are primarily the responsibility of the State. Each municipality
within the County bears the primary responsibility for its local street system, therefore the County has no financial
obligation with respect to the construction and maintenance of roads.
Rail facilities and air transportation offer strong support for local businesses. The County established an Inland Port in
1984, a worldwide gateway linking importers and exporters to northern Europe, the Far East, and Middle East, the
Mediterranean, east and west Africa, South Africa, South America and Australia. Charlotte also offers a Foreign
Trade Zone and full U.S. Customs facilities. The County is served by Norfolk Southern Railway and CSX
Transportation, two major rail systems which bring more than 300 trains through the County weekly. Both main line
railroads have junctions within the County and offer reciprocal switching among the lines. Amtrak in Charlotte
provides north and south passenger lines that can connect to access most of the United States.
th
st
Charlotte-Douglas International Airport is ranked 14 nationally in operations and 21 nationally in passengers. The
airport is served by fourteen passenger carriers, including USAirways, Delta, United, Northwest, American,
Continental, Air Canada, and ComAir, as well as six major cargo carriers – ABX Air, Bax Global, Emery, Federal
xvi
Facts and Information
Express, DHL Worldwide Express and UPS. The airport, the largest hub of USAirways, averages over 550 non-stop
flights daily serving more than 140 U.S. cities and nine foreign countries. An estimated total of 23.1 million
passengers boarded flights at the airport and over 154,000 tons of domestic and international cargo were handled in
rd
calendar year 2003.
The airport is in the midst of a $213 million expansion project which will add a 3 parallel
runway, 24 additional gates and a new parking deck. Financial responsibility for airport operations rests with the City
of Charlotte.
EMPLOYMENT AND THE ECONOMY
Exhibit 10 highlights the types of industries in the County, and presents businesses headquartered in the County, as
compiled by Dun and Bradstreet’s Million Dollar Directory for 2003, which is the most recent data available.
Exhibit 10
CORPORATIONS LISTED IN
Million Dollar Directory
Classification
of Corporations
Wholesale Trade
Services
Manufacturing
Construction
Finance, Insurance, Real Estate
Retail
Transportation, Communication, Utilities
TOTAL
Number
of
Corporations
144
133
124
87
78
78
_43
687
Exhibit 11 presents the unemployment rate history for the County for calendar years 2000 through 2003 and the
average of the first six months of calendar year 2004. The County unemployment rate was less than the U.S. rate for
all years except calendar year 2002, when rates were the same.
An average of over 15,000 new jobs per year were created in the County during the five years ended December
31,2003 according to the Charlotte Chamber of Commerce.
Exhibit 11
xvii
Facts and Information
Exhibit 12 presents the firms employing over 1,000 persons in the County, as of December 31, 2003, the most recent
available information:
Exhibit 12
Employers of 1,000 or More Persons
15,000 to 19,999
Employees
Wachovia Corporation*
10,000 to 14,999
Employees
Bank of America Corporation*
Charlotte-Mecklenburg Board of Education*
Carolinas HealthCare System*
4,500 to 9,999
Employees
City of Charlotte*
Duke Energy Corporation*
Mecklenburg County*
North Carolina State Government
United States Government
USAirways
1,500 to 4,499
Employees
Belk Inc.*
BellSouth Telecommunications
Compass Group*
Eckerd Corporation
Family Dollar Stores*
Food Lion
International Business Machines
Interstate Brands-Merita
Microsoft Corporation
Presbyterian /Novant Health*
Royal & SunAlliance*
Ruddick/Harris-Teeter*
United States Postal Service
University of North Carolina at Charlotte*
Wal-Mart Stores/Sam’s
Winn-Dixie Charlotte, Inc.
1,000 to 1,499
Employees
Allen Tate Company*
Allstate Insurance Company
Bi-Lo Food Stores
The Charlotte Observer
Continental General Tire, Inc.*
EDS
J. A. Jones Services*
Lance, Inc.*
Rea Construction Company*
Sprint PCS
T. J. Maxx
United Parcel Service
Vanguard Group
Wells Fargo
*Headquartered in the County.
Source: Charlotte Chamber of Commerce
xviii
Facts and Information
The construction industry in the County continues to be strong, although the number of building permits dropped 4%
in calendar year 2003 as displayed in Exhibit 13. The employment environment, along with population growth,
continues to fuel the construction industry. Also displayed are the values of building permits issued by the County in
the past five calendar years for both residential and non-residential construction. Residential construction is further
defined by type of residential unit in Exhibit 14. Over the last five years, the value of new residential construction has
averaged $1.6 billion per year. Whether one is in the market for a new home, apartment, condominium or
townhouse, the neighborhood atmosphere of each community adds a perfect blend of price ranges, variety and living
environments. The average sale price of a home in the first half of calendar year 2004 was $224,500.
Exhibit 13
Exhibit 14
NUMBER AND VALUE OF BUILDING PERMITS
Mecklenburg County, North Carolina
NEW RESIDENTIAL CONSTRUCTION BY TYPE
Mecklenburg County, North Carolina
Value (Millions)
Calendar
Year
2003
2002
2001
2000
1999
Number
Building
Permits
Residential
18,984
19,770
19,174
18,397
19,323
Number of Units
NonResidential
$1,600.8
1,564.1
1,640.2
1,641.0
1,313.7
$ 841.5
814.4
1,104.5
1,670.6
1,044.2
Total
$2,442.3
2,378.5
2,744.7
3,311.6
2,357.9
Source: Land Use and Environmental Services. Compiled by
Charlotte Chamber of Commerce
Calendar
Year
SingleFamily
MultiFamily
Total
2003
2002
2001
2000
1999
8,935
9,638
10,061
9,398
9,755
3,677
3,851
4,718
5,370
4,210
12,612
13,489
14,779
13,768
13,965
Source: Land Use and Environmental Services.
Compiled by Charlotte Chamber of Commerce
EDUCATION
Public education in the County is provided by the Charlotte-Mecklenburg Board of Education, the 25th largest school
system in the nation, based on student enrollment as cited by the National Center for Education Statistics. Exhibit 15
details the enrollment in the Charlotte-Mecklenburg Schools for the last five years.
Exhibit 15
CHARLOTTE-MECKLENBURG SCHOOL ENROLLMENT
Percent Number
Average Daily Memberships (ADM)
Number
ADM
of
Year
K-5
6-8 9-12 Special
Total Enrolled
Enroll. Schools
2003-04
2002-03
2001-02
2000-01
1999-00
54,902
53,060
52,259
51,583
50,819
26,991
25,919
24,373
23,469
22,338
28,535
26,185
25,687
24,126
23,186
2,124
2,266
2,163
2,115
2,194
112,552
107,430
104,482
101,293
98,537
115,517
109,605
106,192
103,086
100,368
97.4
98.0
98.4
98.3
98.2
142
140
144
143
143
Source: Charlotte-Mecklenburg Board of Education
A nine-member Board of Education is the policy-making authority. Board of Education members are elected to fouryear staggered terms on a non-partisan basis. Administrative responsibility is vested in an appointed superintendent
who serves as chief executive officer.
The Board of Education relies upon the County for local funds needed to support public school current expense and
capital outlay needs. The total 2003-2004 school budget was approximately $830 million: 58% provided by the State,
32% by the County (mostly through property taxes), 8% by the federal government and 2% by miscellaneous
sources. Approximately 85% of the budget is allocated to salaries and employee benefits. Most local funds are used
to supplement regular State salaries, to hire extra teachers not provided for by the State and for operation and
maintenance of school buildings. The 2003-2004 budget included a $265 million allocation from the County for
operational expenses of the public school system. In accordance with the N.C. General Statutes, the Board of
Education must present its current expense and capital outlay budget requests to the County by May 30 each year.
Appropriations to the Board of Education are discussed in the County’s budget hearings and the approved amount for
the schools is appropriated in the County’s operating budget adopted by July 1.
xix
Facts and Information
For the 2003-2004 school year, the Board of Education operated 87 elementary schools, 29 middle schools and 16
high schools. There is also a center for students who are mentally disabled, a school for teenage parents, a school
for artistically talented students, a program for the emotionally handicapped, an alternative discipline program, five
pre-school programs for four-year-olds with a total enrollment of 3,124, a program for children of the homeless and an
alternative school for students benefiting from additional attention received in a smaller classroom environment.
Exhibit 16
The County’s support per student, exclusive of debt service and
based on total enrollment, is shown in Exhibit 16. These operational
costs are adjusted for inflation to 2004 current dollars using the
Implicit Price Deflator Index.
The 1997 North Carolina General Assembly passed legislation
creating charter schools, an alternative to traditional public school
education. Charter schools are separate entities and are not a
component of the local public school system. As part of the funding
for charter schools, the legislation requires a portion of the local
County funds designated for education to be redirected by the Board
of Education to charter schools. For the 2003-2004 school year, the
portion of local education funds budgeted to be redirected to the ten
charter schools operating in the County was $4.3 million for an
enrollment totaling 2,102 students. In addition, approximately 77 private and parochial schools, with an enrollment of
over 17,800 students, serve the County.
Over 80% of students graduating from the County’s public schools continue their formal education. Colleges and
universities located in the County offer a range of opportunities for further education. The area offers the opportunity
to attend exceptional, small private colleges, church affiliated institutions, a community college or a large state
university. Exhibit 17 presents enrollments for colleges and universities within the County.
Exhibit 17
University of North Carolina at Charlotte
Central Piedmont Community College
Queens University of Charlotte
Davidson College
Johnson C. Smith University
ECPI College of Technology
Montreat College
Pfeiffer University – Charlotte Campus
Kings College
Carolina College of Health Sciences
The Art Institute of Charlotte
Brookstone College of Business
Lee University
Wake Forest University – Babcock
Graduate School of Management
School Year 2003-2004
School Year 2002-2003
Enrollment
Students
Faculty1
Enrollment
Students
Faculty1
19,605
16,215
1,950
1,712
1,474
437
398
902
519
425
750
203
112
1,100
1,494
99
171
123
22
40
43
22
72
44
8
6
18,916
15,752
1,754
1,645
1,536
478
398
886
429
364
643
180
107
1,100
1,318
91
156
127
22
40
39
19
65
47
19
8
99
7
90
6
1
Includes part-time instructors.
Source: Individual institutions
The University of North Carolina at Charlotte (UNC-Charlotte), part of the State university system of colleges, is one
of the State's most progressive institutions of teaching, research and public service. UNC-Charlotte's doctoral
programs include biology, information technology, electrical engineering, mechanical engineering and applied
mathematics.
Central Piedmont Community College (CPCC) has been recognized nationally as one of the top three community
colleges in America for teaching experience. Class instruction occurs at all five campus locations, the Corporate
xx
Facts and Information
Training Center and at various other sites across the County. CPCC received $15.6 million from the County in fiscal
year 2004. County funding is used for operating expenses, salary supplements for professional and clerical
employees and those items that are not funded by the State. The County also issues bonds for CPCC projects that
are included in the Capital Improvements Program and pays the debt service on those bonds.
Johnson & Wales University, whose focus is culinary arts and related fields, opened its $112 million Charlotte
campus in September 2004 with a freshman enrollment of 1,200. The university is expected to grow to 5,000
students by the year 2007.
MEDICAL
The medical facilities located in the County and their respective licensed bed capacities are shown in Exhibit 18.
Exhibit 18
Hospital
1
Carolinas Medical Center
2
Presbyterian Hospital
1
Carolinas Medical – Mercy
2
Presbyterian Orthopedic Hospital
1
Charlotte Institute of Rehabilitation
1
Carolinas Medical –University
1
Carolinas Medical – Pineville
2
Presbyterian – Matthews
1
Behavioral Health Center – CMC – Randolph
1
Mercy Horizons
1
Part of Carolinas HealthCare System.
2
Part of Novant Health, Inc.
Number of
Licensed Beds
795
581
235
168
133
130
109
102
66
11
Source: Charlotte Chamber of Commerce
In addition, as of August, 2004, there are 26 nursing homes in the County providing 3,072 beds.
CULTURAL AND RECREATIONAL ACTIVITIES
Theatre, art and music offerings abound throughout the County. Spirit Square and Discovery Place offer unique ways
to discover and participate in the arts and sciences. The Mint Museum of Art, once a branch of the U.S. Mint, the Mint
Museum of Craft and Design and the Afro-American Cultural Center host an array of visual arts including paintings,
sculptures and special exhibitions. The North Carolina Blumenthal Center for the Performing Arts in uptown Charlotte
showcases the best in opera, symphony, chorus, dance and
theater, and contains a 2,100-seat performance hall and a
440-seat theater. The County also has its share of historical
sites and museums. The McIntyre Historic Site was the
scene of a Revolutionary War skirmish and later a gold
mining site. Latta Plantation was built around 1800 and the
restored river plantation house is now included in the park on
the plantation site. The old County Courthouse on East
Trade Street is the site of a monument to the signers of the
Mecklenburg Declaration of Independence. Collections and
exhibits emphasizing the history of Mecklenburg County are
housed at the Charlotte Museum of History and Hezekiah
Alexander Homesite. The Museum of the New South traces
the history of the area since the Civil War.
Concerts by nationally prominent groups and solo artists at
the Charlotte Coliseum, Ovens Auditorium, Cricket Arena,
Verizon Wireless Amphitheater, Memorial Stadium, Grady
Cole Center and Paramount Carowinds Palladium draw
thousands for musical entertainment. The Festival in the
xxi
Facts and Information
Park is an annual event featuring arts, crafts, food and music for the
entire family. The Paramount Carowinds theme park is a popular
destination for tourists seeking family entertainment. The diverse
assortment of recreational and cultural activities helps make the
County the most popular tourist destination in the State.
The County offers practically any sport or recreational en-deavor one
would like to pursue. Recreational pleasures can be enjoyed at any
of the County’s parks or one of its five public golf courses. County
park facilities include tennis courts, swimming pools, community
centers, bowling alleys, picnic areas, ball fields, fitness trails, dog
parks, mountain biking, fishing, canoeing, soccer fields, disc golf
courses, playground equipment, an equestrian center, a skate park, a
dirt bike track and an indoor water park, Ray’s Splash Planet. The
County also operates a fully-equipped Aquatics Center.
The area also offers many opportunities for spectator sports. The Carolina Panthers, an NFL franchise, play at Bank
of America Stadium, which seats 73,250. The new NBA expansion team, the Charlotte Bobcats, will begin play in
2004. Charlotte is also home to the Charlotte Sting - one of sixteen professional Women’s National Basketball
Association teams. Lowe’s Motor Speedway, one of the few superspeedways in the country, is host to three top
NASCAR Winston Cup events: The Winston, the Coca-Cola 600 and the UAW-GM 500. The Coca-Cola 600 is one
of the largest single-day sporting events in the country. The County and surrounding areas are also home to the
Charlotte Knights, a class AAA professional baseball team whose parent club is the Chicago White Sox, and the
Charlotte Checkers, an East Coast Hockey League team affiliated with the National Hockey League’s New York
Rangers. The PGA’s Wachovia Championship golf tournament is held at the Quail Hollow Country Club each May.
SUMMARY
Mecklenburg County is a vibrant growing area that continues to draw new people and businesses via relocation. The
climate, diversity of industries, cultural opportunities and recreational activities create a desirable environment for the
residents of the County.
xxii
Mecklenburg County
North Carolina
Board of County Commissioners
Tom Cox, Jr.
Chairman
Dan Ramirez
Vice Chairman
Valerie C. Woodard
District 3
H. Parks Helms
At-Large
Dumont Clarke
District 4
Jim Puckett
District 1
Ruth Samuelson
District 5
Norman A. Mitchell, Sr.
District 2
Bill James
District 6
Financial Officers
Harry L. Jones, Sr.
County Manager
J. Harry Weatherly, Jr.
Director of Finance
Sarah A. Heasley, Deputy Director of Finance
Wanda F. Reeves, Financial Planning & Reporting Analyst III
Gail M. Murchison, Financial Planning & Reporting Analyst III
Terri H. Peters, Financial Planning & Reporting Analyst II
Kenneth Myers, Financial Planning & Reporting Analyst I
Stephanie Prioleau, Financial Planning & Reporting Analyst I
Ana M. Cutajar, Grants Administrator
Alan R. McBrayer, Investment Officer
Carolyn Bailey, Administrative Officer
xxiii
Organizational Chart
Mecklenburg County
Mecklenburg County Organizational Structure
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xxiv
Financial Section
Mecklenburg County, North Carolina
The Financial Section constitutes the core of the report. The independent auditorsʼ
report covers the basic financial statements and the notes to the statements.
Managementʼs Discussion and Analysis provides a narrative introduction,
overview and analysis of the statements that follow.
Management’s Discussion and Analysis
INTRODUCTION
Management’s Discussion and Analysis provides a narrative discussion of the County’s financial activities as a whole
for the year ended June 30, 2004 with comparisons to the prior year, where appropriate. The information
complements the data presented in the basic financial statements. Its purpose, along with the material in the
Transmittal Letter in the Introduction, is to enhance the reader’s understanding of the County’s financial performance.
HIGHLIGHTS OF THE YEAR
On the Statement of Net Assets (Deficit), liabilities exceed assets reflecting the County’s legal responsibility to
issue and pay for debt for the Charlotte-Mecklenburg Board of Education, Central Piedmont Community College,
Public Library of Charlotte and Mecklenburg County, and WTVI, the local public television station. The assets
acquired with the debt are owned by each of these governmental units, and therefore, the assets are not
included in the County’s Statement of Net Assets (Deficit).
For the year ended June 30, 2004, the Statement of Activities reflects a use of net assets in the amount of $54.3
million as compared to $111.2 million in the prior year, primarily due to increases in property and sales tax
revenues while maintaining expenses at the level of the prior year.
The governmental funds total fund balance increased $22.3 million from the prior year total ending fund balance
of $439.2 million as a result of unspent bond proceeds and operating revenues exceeding expenditures. Of the
$461.1 million of governmental funds total fund balance $245.4 is available for future years’ spending as
unreserved fund balance.
The unreserved fund balance of the General Fund at June 30, 2004 is $106.5 million, which represents 10.7% of
total General Fund expenditures or 40 days of operating balances. Of the unreserved fund balance, $15.7
million is designated for specific projects and $90.8 million is undesignated.
OVERVIEW
The basic financial statements consist of three components: 1) government-wide financial statements, 2) fund
financial statements, and 3) notes to the financial statements. Several schedules of required supplementary
information, as well as combining and other individual fund schedules required by State statute, follow the notes to
the financial statements.
REPORTING THE COUNTY AS A WHOLE
Government-wide financial statements consist of the Statement of Net Assets (Deficit) and the Statement of
Activities. Both of these statements provide data about the County’s financial activities as a whole and present a
longer-term view of the County’s finances. These statements use the accrual basis of accounting, which is similar to
the accounting used by most private-sector businesses. All of the current year’s revenues and expenses are taken
into account regardless of when cash is received or paid. The Statement of Net Assets (Deficit) presents assets less
liabilities equal net assets, thus presenting the County’s financial position at the end of the fiscal year, while the
Statement of Activities presents information showing how the County’s net assets changed during the fiscal year.
The Statement of Net Assets (Deficit) and the Statement of Activities divide the County’s operations into three types
of activities:
Governmental activities – those activities supported primarily by taxes and intergovernmental revenues. The
following eight core service areas comprise the County’s governmental activities: Customer Satisfactions
and Management Services, Administrative Services, Financial Services, Land Use and Environmental
Services, Community Services, Detention and Court Support Services, Health and Human Services, and
Business Partners.
Business-type activities – those activities that recover a significant portion of their costs through user fees and
charges. The Solid Waste Enterprise Fund is the County’s only business-type activity.
Component Units – these are separate organizations for which the County provides financial support and/or
appoints their governing board. The Public Library of Charlotte and Mecklenburg County, the Mecklenburg
County Alcoholic Beverage Control Board and the Mecklenburg Emergency Medical Services Agency are
each component units of the County.
The government-wide statements follow the Auditors’ Opinion.
3
Management’s Discussion and Analysis
REPORTING THE COUNTY’S SIGNIFICANT FUNDS
Funds are sets of self-balancing accounts that reflect the assets, liabilities, fund balance/retained earnings, revenues
and expenditures/expenses of resources that are segregated for specific activities or for compliance with legal
provisions. The funds used by the County can be divided into three categories:
Governmental funds – Most of the County’s services are reported in governmental funds, which focus on the
flows of money into and out of those funds and the balances left at year-end that are available for spending.
These funds are reported using the modified accrual method of accounting, which measures cash and all other
financial assets that can readily be converted to cash. Such information may be useful in evaluating the
resources available to finance County programs in the near future. The Reconciliation of the Statement of
Revenues, Expenditures, and Changes in Fund Balance to the Statement of Activities allows the reader to
compare the information presented for governmental funds with similar information presented for the
governmental activities.
The County’s governmental funds are: the General Fund; twelve Special Revenue Funds established under the
provisions of the North Carolina General Statutes which account for revenues that are restricted for special
purpose expenditures; and thirty-one Capital Projects Funds which account for the proceeds of bond issues and
all other resources used for the purpose of constructing or purchasing all aspects of capital assets. The General
Fund and the 2004B and 2004A Public Improvement Capital Projects Funds are presented individually on the
Governmental Funds Balance Sheet and Statement of Revenues, Expenditures, and Changes in Fund Balances
(Deficit), because each meets the Governmental Accounting Standards Board (GASB) definition of a major fund
for reporting purposes. The remaining governmental funds are combined into a single, aggregated presentation
titled nonmajor funds. Individual fund data for each of the nonmajor governmental funds is provided in the
section, Combining and Individual Fund Financial Statements and Schedules.
The County adopts an annual appropriated budget for the General Fund. The Statement of Revenues,
Expenditures and Changes in Fund Balance – Budget and Actual for the General Fund provides a budgetary
comparison of the adopted budget, final budget and actual.
Proprietary funds – The Solid Waste Enterprise Fund is the County’s only proprietary fund and is presented in
the business-type activities column of the government-wide financial statements, because it operates similar to a
private business enterprise.
Fiduciary funds – The County holds certain resources for the benefit of parties outside the government, which
are accounted for as agency funds. Since the resources of these funds are not available to finance County
programs, the funds are not included in the government-wide financial statements.
NOTES TO THE FINANCIAL STATEMENTS
The information reported in the notes to the financial statements provides additional disclosures necessary to a
complete understanding of the data presented in the government-wide and fund financial statements.
OTHER FINANCIAL INFORMATION
In addition to the basic financial statements and accompanying notes, the report also presents certain required
supplementary information concerning the Law Enforcement Special Separation Allowance. Required supplementary
information follows the Notes to the Financial Statements.
Following the required supplementary information are the combining schedules for the nonmajor governmental funds
and the fiduciary funds. These are followed by the budget/actual schedules for the Special Revenue Funds, the
Enterprise Fund, the Grants Capital Project Fund, as well as the Landfill Construction, Final Development and
Postclosure Reserve Fund.
4
Management’s Discussion and Analysis
GOVERNMENT-WIDE FINANCIAL ANALYSIS
The following summarizes Net Assets (Deficit) at June 30, 2004 and 2003:
NET ASSETS (DEFICIT)
(in thousands)
Governmental
Business-type
Activities
Activities
2004
2003
2004
2003
Assets
Current and other assets
Capital assets, net
Total Assets
Liabilities
Current and other
liabilities
Long-term liabilities
Due within one year
Due after one year
Total Liabilities
$ 591,328 $ 549,394
650,874 __ 594,386
1,242,202 _1,143,780
Total Primary
Government
2004
2003
$ 13,572
__41,144
__54,716
$ 14,367
_38,764
_53,131
$ 604,900
__692,018
1,296,918
$ 563,761
633,150
1,196,911
87,619
81,061
1,015
421
88,634
81,482
113,377
1,746,529
1,947,525
95,548
1,615,440
1,792,049
2,676
10,279
13,970
2,695
12,029
15,145
116,053
1,756,808
1,961,495
98,243
1,627,469
1,807,194
31,604
321
8,821
26,493
2,772
8,721
159,422
240,277
(1,064,276)
$ 40,746
$ 37,986
Net Assets (Deficit)
Invested in capital assets,
net of related debt
127,818
77,070
Restricted
239,956
132,447
Unrestricted (Deficit)
(1,073,097)
(857,786)
Total Net
Assets (Deficit) $ (705,323) $ (648,269)
103,563
135,219
(849,065)
$ (664,577) $ (610,283)
While total net assets are often considered a useful indicator of a government’s financial position, it does not
adequately reflect the County’s position. In accordance with the North Carolina General Statutes, the County is the
issuer and payer of debt for capital purposes for the Charlotte-Mecklenburg Schools, Central Piedmont Community
College, the Public Library of Charlotte and Mecklenburg County, and WTVI, the public television station in
Mecklenburg County. This debt, which totals $1.156 billion at June 30, 2004 and totaled $1.067 billion at June 30,
2003, is recorded in long-term liabilities with no offsetting capital assets recorded, as the assets are owned by the
agencies. The agencies use the debt proceeds to acquire or construct capital assets. The effect of this accounting is
to distort net assets of the County, creating a large deficit in unrestricted net assets. Net Assets of $159.4 million at
June 30, 2004 and $103.6 million at June 30, 2003 are invested in capital assets, net of any related outstanding debt
of those assets. Capital assets include land, buildings, vehicles, equipment and other machinery used in providing
services to residents. Also, net assets of $243.6 million at June 30, 2004 and $135.2 million at June 30, 2003 are
reserved by law for specific purposes. The increase in the deficit unrestricted net assets results from the increase in
the debt to the agencies listed about, the increase in County capital assets net of accumulated debt, and the higher
level of restricted net assets resulting primarily from unexpended bond proceeds. Net assets do not present the
County’s position regarding spending, which is presented in the governmental funds statements.
5
Management’s Discussion and Analysis
The following table presents the change in net assets for the year ended June 30, 2004, with comparison to the prior
year, for both governmental and business-type activities.
CHANGES IN NET ASSETS (DEFICIT)
(in thousands)
Governmental
Business-type
Activities
Activities
2004
2003
2004
2003
REVENUES
Program Revenues:
Charges for services
$ 105,929 $
96,798
Operating grants and
contributions
157,802
170,004
Capital grants and
Contributions
1,367
1,330
General Revenues:
Property taxes
619,050
588,320
Sales taxes
180,632
158,309
Other taxes
5,853
4,523
Investment Income
5,337
7,055
Other
1,729 ____1,658
TOTAL REVENUES
1,077,699
1,027,997
EXPENSES
Program Expenses:
Customer Satisfaction
And Management
Services
4,714
4,030
Administrative Services
39,280
38,725
Financial Services
3,800
3,256
Land Use and Environmental Services
44,964
43,002
Community Services
55,181
66,612
Detention and Court
Support Services
90,164
88,349
Health and Human
Services
284,575
272,484
Business Partners
535,387
562,530
Interest Expense
76,688
61,920
Solid Waste Operations
____-___
TOTAL EXPENSES
1,134,753
1,140,908
EXCESS (DEFICIENCY)
IN NET ASSETS (DEFICIT) (57,054)
(112,911)
NET ASSETS (DEFICIT)
– Beginning of year
(648,269)
(535,358)
NET ASSETS (DEFICIT)
– End of year
$ (705,323)
$ (648,269)
$ 12,747
Total Primary
Government
2004
2003
$ 11,136
$ 118,676
$ 107,934
-
785
157,802
170,789
-
-
1,367
1,330
149
__ 12,896
213
_(147)
11,987
619,050
180,632
5,853
5,486
1,729
1,090,595
588,320
158,309
4,523
7,268
___1,511
1,039,984
-
-
4,714
39,280
3,800
4,030
38,725
3,256
-
-
44,964
55,181
43,002
66,612
-
-
90,164
88,349
-
272,484
562,530
61,920
___10,279
1,151,187
10,138
10,138
10,279
10,279
284,575
535,387
76,688
__10,138
1,144,891
2,758
1,708
(54,296)
(111,203)
37,987
36,279
(610,282)
(499,079)
$ 40,745
$ 37,987
$ (664,578)
$ (610,283)
GOVERNMENTAL-TYPE ACTIVITIES
Program revenues covered 23.4% of County expenses at June 30, 2004 and 23.5% at June 30, 2003, while general
revenues covered 71.6% and 66.6%, respectively, of expenses. The remaining 5.0% at June 30, 2004 and 9.9% at
June 30, 2003, represents a use of net assets. The reduced use of net assets for the year ended June 30, 2004
results primarily from higher tax revenues and increased charges for services. Taxes and assessment revenues
increased 5% from the prior year due to the property revaluation, which was partially offset by a 12% drop in the tax
rate, and to an increase in the tax base. The County continued its strategy to secure a maximum amount of grant
funds provided by state and federal agencies, yet grant revenues declined with the completion of grants and the
6
Management’s Discussion and Analysis
reduced level of new grants, resulting in the County covering only 14.0% of its governmental operations with grant
dollars as compared to 15.0% in fiscal 2003. Charges to users of County services generated revenues that
supported 9.3% of County governmental operations for fiscal 2004 and 7.4% for fiscal 2003. The increase in charges
for services revenues came from Land Use and Environmental Services, primarily code enforcement and licenses
and permits, as a result of higher demand and fee increases, and Detention and Court Support Services as a result of
a higher federal reimbursement rate for jail inmates.
BUSINESS-TYPE ACTIVITIES
The Solid Waste Enterprise Fund is the County’s sole business-type activity and accounts for the operation of the
landfill and recycling programs. Revenue is generated from an annual residential solid waste disposal fee of $12 per
dwelling and landfill tipping fees, disposal fees and recycling sales. The business-type activity contributed 1.2% to the
primary government’s total revenue in fiscal 2004 and 1.1% in fiscal 2003. Income of $2.8 million for fiscal year 2004,
resulting from higher than expected tipping and disposal fees, was retained by the activity for its future operations.
Income for the prior year was $1.7 million.
FINANCIAL ANALYSIS OF THE COUNTY’S FUNDS
The County uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.
GOVERNMENTAL FUNDS
Governmental funds focus on the inflows and outflows of current financial resources and measure the change in net
spendable resources during the year. Such information is useful in assessing the County’s financing requirements.
In particular, unreserved fund balance may serve as a useful measure of net resources available for spending at the
end of the year. The County’s governmental fund types include the General Fund, Special Revenue Funds and
Capital Projects Funds.
General Fund
The General Fund, which is a major fund and the County’s primary operating fund, had a fund balance of $210.1
million, of which $13.3 million is reserved for encumbrances, $90.2 million is reserved by State statute, and $106.5
million is unreserved. Of the General Fund’s unreserved fund balance, $15.7 million is designated for particular
purposes and $90.8 million is undesignated. The General Fund total revenues exceeded budget by $6.7 million, and
revenues exceeded expenditures by $22.5 million, as explained more fully below.
Revenues for the General Fund increased $62.4 million, or 6.6% over fiscal 2003:
• Property taxes increased 4.6% from the prior year reflecting the combined effect of the property revaluation
that occurred in January 2003, the change in the tax rate from 83.97 cent per $100 of assessed valuation to
73.64 cent per $100 of assessed valuation and growth in the assessed valuation base. For 2004, current
year collections represented 97.1% of the current year levy, while total tax collections represented 99.1% of
the current year’s tax levy. This is a slight improvement over the 98.6% total collection rate in fiscal 2003.
• Sales tax revenues reported in the General Fund were $151.4 million, an increase of $32.3 million over
fiscal 2003, reflecting the first full year of the
additional half-cent sales tax.
Exhibit 1
• Intergovernmental revenues continued to decline this
Grant Programs
year, dropping 1.2% from fiscal 2003, a result of
Program
Revenue
completing several grant programs and the general
Number
(Millions)
Category
drop in grant amounts awarded. State and federal
Social Services
58
$103.0
grant funds support 181 service programs of varying
size and complexity to help accommodate service
Mental Health
43
25.7
needs of County residents while minimizing local
Health
32
7.2
costs. Grant programs are summarized in Exhibit 1.
•
Charges for services increased 8.8% from the prior
Other
48
11.8
year due to rate increases for code enforcement,
Total
$147.7
181
better fee collections by Area Mental Health, and a
higher reimbursement rate for jail inmates.
• Interest earned on investments dropped $1.8 million
7
Management’s Discussion and Analysis
from the prior year as rates on investments continued at low levels. The County follows sound investment
practices and strives to maximize invested balances and interest earnings within the parameters of
allowable investment vehicles.
The composition of the General Fund revenue dollar is illustrated in Exhibit 2.
General Fund expenditures increased $30.4 million (3.4%) over those of last year. Exhibit 3 graphically illustrates the
County’s expenditure dollar.
The increase in expenditures is primarily the result of the following:
Debt service increased $21.0 million (14.4%) from the prior year. The payment of principal and interest on debt
issued for school capital needs, $87.6 million, represents 52.8% of total debt service. Debt service has increased
commensurate with the increase in total debt the County has incurred to fund the necessary capital needs of the
schools, community college, libraries, courts, and parks and recreation.
Health and Human Services expenditures increased $11.3 million, a 4.2% increase over the prior year, resulting from
serving a larger client base.
Land Use and Environmental Services and Community Services both experienced small expenditure decreases from
the prior year, 1.8% and 2.6%, respectively, due to changes in programs and staffing reductions.
Business Partners is primarily current expenditures for schools as well as the County’s contribution to the
Mecklenburg Emergency Medical Services Agency and other outside agencies. Business Partners expenditures
decreased $4.6 million (.4%) from the prior year. The decrease is due to a $3.4 million reduction by the State in
funds available for school capital outlay and a decrease of $1.2 million in allocations to outside agencies. For fiscal
year 2004, the current operation funds for the Charlotte-Mecklenburg Schools were $265 million, the same as the
8
Management’s Discussion and Analysis
amount allocated for fiscal year 2003, while the funding to Central Piedmont Community College was $15.9 million,
an increase of $.3 million over the prior year.
Major Capital Project Funds
Two capital projects funds meet the requirements for disclosure as major funds for fiscal year 2004. The 2004B
Public Improvement Capital Project Fund, established by capital project ordinance, has a project authorization of
$100 million. The fund accounts for the proceeds from the $100 million variable rate bonds issued February 2004 for
the express purpose of acquiring, constructing, expanding or renovating various Charlotte-Mecklenburg School
facilities. As of June 30, 2004, $35.2 million of these funds have been expended for school construction and
renovation. The 2004A Capital Project Fund, established by capital project ordinance, has project authorizations
totalling $105 million. The fund accounts for the proceeds from the $105 million fixed rate bonds issued February
2004 to be used for school facilities ($45 million), park and recreation facilities ($3 million), library facilities ($2
million), community college facilities ($10 million) and court facilities ($45 million). As of June 30, 2004, contracts
totaling $93.3 million have been issued for projects to be completed with these funds.
Special Revenue Funds
Total revenues for the twelve Special Revenue Funds declined $8.6 million (12.4%) from the prior year. The change
in revenue is attributable to the following two occurrences. Revenues in fiscal year 2003 had increased over the
previous year because of the proceeds from a property sale. No such sales occurred in fiscal 2004. For fiscal year
2003, the County recorded the initial portion of the additional one-half cent sales tax to a special revenue fund. For
fiscal year 2004, these funds were budgeted for usage in the general fund. Special Revenue Funds expenditures
increased 20% over fiscal year 2003 as the Funds spent revenues received in prior years. Of the $70.5 million of
expenditures, $48.5 million represents tax revenues distributed to Business Partners, $12.6 million was used by the
Storm Water Fund for flood mitigation projects and $7.1 million was used by the Capital Reserve Fund for designated
projects.
Capital Projects Funds
For fiscal year 2004, capital projects expenditures totaled $230.3 million as compared to $251.0 million in fiscal year
2003. More than half of each year’s expenditures were for construction, renovations and improvements to school
facilities. The drop in expenditures between years simply reflects the cycle of projects being completed and others
starting up. Funding for capital projects is supplied by proceeds from new bonds and certificates of participation,
unexpended bond proceeds, and reimbursement by the City of Charlotte for some Park and Recreation capital
expenditures. Additional funds for school facilities are provided by the County from unexpended proceeds from
previously issued certificates of participation and by the State of North Carolina which provides additional funding for
school facilities from State school bond funds.
Based on the above discussion of the government-wide and fund financial statements, and considering the County’s
Triple A bond rating and debt capacity, which are discussed below and in the Notes to the Basic Financial
Statements, the overall financial position of the County continues to be very strong.
GENERAL FUND BUDGET HIGHLIGHTS
The County’s annual balanced budget is prepared on the modified accrual basis of accounting in accordance with the
Budget & Fiscal Control Act of the North Carolina General Statutes, and includes all appropriations required for debt
service. The General Fund is the most significant fund budgeted.
Statutory provisions allow the budget to be amended during the year. The County Manager or his designee is
authorized to transfer budget amounts within funds. All budget amendments that alter the total budget of a fund must
be approved by the Board. The General Fund, as the primary fund supporting all major activities of the County, is
monitored closely by the Director of Finance for possible revenue shortfalls or potential overspending. Purchase
orders and contracts are not considered valid until the Director of Finance has certified the funds are available to
make payment upon satisfactory completion of the contract or delivery of the items ordered.
The County revised the General Fund budget on several occasions during the fiscal year. Generally, budget
amendments fall into one of three categories: 1) amendments made to adjust the estimates that are used to prepare
the original budget ordinance once exact information is available; 2) amendments made to recognize new funding
9
Management’s Discussion and Analysis
amounts from external sources, primarily Federal and State grants; and 3) increases in appropriations that become
necessary to maintain services. Amendments adopted during the year added $16.4 million to the budget primarily for
new grants awarded to the County and reallocations by the State of federal pass-through grant funds, as well as
increases to Charges for Services for increased reimbursements.
Property tax collections, including interest on delinquent taxes, exceeded budget by $16.2 million, primarily due to
property assessments exceeding estimates. Intergovernmental revenues were less than budget ($6.9 million) due to
reduced County spending that resulted in reduced reimbursements for Social Services, Health, and Area Mental
Health. Miscellaneous revenues, always a difficult area to predict, fell 30% under budget. Contributions and other
miscellaneous receipts did not materialize this year.
General Fund expenditures were under budget $33.8 million, 3.3%, as all core services consciously controlled
spending and worked toward more efficient operations.
CAPITAL ASSETS
The County’s investment in capital assets, net of accumulated depreciation, for governmental and business-type
activities at June 30, 2004 totals $692.0 million. Capital assets include land, land improvements, buildings and
improvements, vehicles and heavy equipment, furniture, machinery, and other equipment, and construction in
progress. Capital assets are reported in the government-wide financial statements and in the enterprise fund
financial statements. Governmental funds treat capital acquisitions as expenditures in the period in which they are
purchased. The investment in capital assets, net of accumulated depreciation, increased 9.5% from last year for
governmental activities while the business-type activities investment in capital assets, net of accumulated
depreciation, increased 5.9%. The increase in governmental activities assets results from the acquisition of land for
future use totaling $28.7 million, increases to construction in progress totaling $39.9 million, and various furniture,
equipment and vehicle purchases totaling $9.2 million. Governmental activities asset reductions of $5.0 million
resulted from the normal disposal of worn-out items. The $2.3 million increase in business-type activities (enterprise
fund) is the result of building improvements and equipment purchases for solid waste operations.
CAPITAL ASSETS, NET OF ACCUMULATED DEPRECIATION
(in thousands)
Governmental
Business-type
Activities
Activities
2004
2003
2004
2003
Total
2004
2003
Description
Land
Construction in progress
Land Improvements
Buildings and Improvements
Vehicles and Heavy Equipment
Furniture, Machinery and
Equipment
Total
$313,686
104,682
5,966
214,639
6,610
$284,940
64,812
5,751
223,563
6,146
$28,074
582
3,361
6,776
2,343
$28,067
48
3,006
6,064
1,569
$341,760
105.264
9,327
221,415
8,953
$313,007
64,860
8,757
229,627
7,715
_ 5,291
$650,874
___9,175
$594,387
____ 8
$41,144
10
$38,764
___5,299
$692,018
___9,185
$633,151
Detailed capital assets information is presented in Note 5 of the Notes to the Basic Financial Statements.
DEBT ADMINISTRATION
The County issues general obligation bonds to fund the acquisition and construction of major capital facilities.
General obligation bonds are direct obligations and pledge the full faith and credit of the County. The County also
issues variable rate certificates of participation to provide funding for school, library and County capital needs. At
June 30, 2004 and 2003, general obligation bonds and certificates of participation consisted of:
10
Management’s Discussion and Analysis
GENERAL OBLIGATION BONDS
(in thousands)
Governmental
Business-type
Activities
Activities
2004
2003
2004
2003
Description
Public Improvement Bonds
Certificates of Participation
$1,738,467
68,900
$1,624,650
54,200
$9,433
-
$11,889
-
Total
2004
2003
$1,747,900
68,900
$1,636,540
54,000
The County debt policy provides guidelines, parameters, and procedural requirements for the issuance and
management of debt. Some of the standards used in managing debt include debt per capita, debt as a percentage of
assessed valuation and debt service as a percentage of the operational budget.
Exhibit 4 shows the County’s net per capita outstanding bonded debt to be $2,170, a 3.3% increase from the prior
year reflecting the more than $113 million increase in debt from the prior year, but well below the County’s policy of a
$3,600 cap. The County’s outstanding debt is 2.07% of assessed valuation, well below the 8% of assessed valuation
legal debt limit of $4.6 billion. See Exhibit 5.
Exhibit 4
Exhibit 5
Bonded Debt Outstanding per Capita
The County’s strong financial management program continues to enhance its excellent financial position and enabled
the County to maintain its Triple A bond rating for its general obligation debt. This is the highest rating given by
Standard & Poor’s Corporation, Moody’s Investors Service and Fitch Ratings. The City of Charlotte has also
maintained Triple A ratings from these agencies. This is a distinction for only a few communities in the nation. As a
result of this rating, the County has obtained some of the lowest interest rates available to governmental agencies
when issuing bonds and certificates of participation.
The County issued $105 million in fixed rate general obligation bonds with an average interest rate of 3.413% in
February 2004. The County also sold $100 million of variable rate bonds in February 2004 to finance school facilities.
In April 2004 the County sold $135.5 million of refunding bonds at a net interest cost of 3.31% to defease $138 million
Public Improvement 1996 Series A and B bonds. This refinancing will save the County approximately $477,000
annually in debt service costs for eight years. This is a total savings of $4.1 million, at net present value. Note 8 to
the Basic Financial Statements provides additional debt information.
OUTLOOK FOR THE NEXT YEAR
The Board approved a $1.1 billion annual budget for fiscal year 2005 that increases the tax rate 2.03 cents to 75.67
cents per $100 of assessed valuation. The new budget reflects a $29.3 million increase from the final, amended fiscal
year 2004 budget. The major increases are: an additional $6.0 million to the Charlotte-Mecklenburg Schools
11
Management’s Discussion and Analysis
pending development of a plan to increase significantly the percentage of students passing on-grade tests, $1.4
million for Central Piedmont Community College, $3.45 million increase for debt service, $2.2 million for the opening
of new parks and libraries, $4.2 million for increases to employee salaries, $2 million for services to address
HIV/AIDS, child abuse and neglect, and $2.7 million for e-Government development.
Considering the County’s growing population, the growth in needs of its citizens in the current economic environment,
and the fact that the cost of providing services is projected to outpace the increases in the County’s main revenue
sources – property and sales taxes, the Board had to make some difficult decisions regarding the funding of the many
programs and services that are provided by the County at the level of revenue projected for fiscal year 2005.
Applying the concepts of Balanced Scorecard and Managing for Results to the budget process, County services were
prioritized and funding of the services was examined for relevance, performance and efficiency. The resulting fiscal
year 2005 budget, adopted by the Board in June 2004, presents a better justified budget to meet the goals and
mission of the County.
REQUEST FOR INFORMATION
This report is designed to provide an overview of the County’s finances for those with an interest in this area.
Questions concerning any of the information found in this report or requests for additional information should be
directed to the Director of Finance, Mecklenburg County, P.O. Box 34486, Charlotte, North Carolina 28234.
12
A-1
MECKLENBURG COUNTY, NORTH CAROLINA
STATEMENT OF NET ASSETS (DEFICIT)
JUNE 30, 2004
Primary Government
Governmental
Business-type
Activities
Activities
Component Units
Public Library
Mecklenburg
Mecklenburg
of Charlotte and
Emergency
County Alcoholic
Mecklenburg
Medical Services
Beverage
County
Agency
Control Board
5,763,215
$
Total
ASSETS
Cash and investments
Receivables, net
Due from other governmental agencies
Advances to other government agencies
Prepaid expenses
$
481,341,746
$ 12,305,866
96,577,586
944,133
2,526,009
-
Inventories
51,832
Restricted assets
-
Deferred charges
10,831,850
$
493,647,612
$
97,521,719
-
-
-
2,526,009
-
$
338,730
3,080,950
1,893,199
75,599
-
-
321,315
3,561,945
178,626
99,973
3,504,562
22,479
108,977
51,832
-
-
321,315
-
-
5,012,957
-
10,831,850
-
-
-
Capital assets
Land
313,685,574
28,073,692
341,759,266
11,251,992
-
Construction in progress
104,682,313
582,122
105,264,435
18,648,564
-
4,430,972
-
Other capital assets, net of
accumulated depreciation
TOTAL ASSETS
232,505,644
12,488,553
244,994,197
30,832,414
4,312,481
9,847,566
1,242,202,554
54,715,681
1,296,918,235
66,705,470
13,332,218
22,927,513
83,045,702
1,014,986
84,060,688
2,384,291
954,226
4,612,916
LIABILITIES
Accounts payable and other
accrued liabilities
Unearned revenue
4,573,944
-
4,573,944
-
-
-
Long-term liabilities
Due within one year
Due in more than one year
TOTAL LIABILITIES
113,376,780
2,676,090
116,052,870
1,697,552
1,746,528,628
10,279,268
1,756,807,896
2,877,203
793,242
1,947,525,054
13,970,344
1,961,495,398
6,959,046
1,747,468
4,612,916
127,817,905
31,603,515
159,421,420
58,469,896
4,312,481
14,278,538
219,273,772
321,315
219,595,087
-
-
NET ASSETS
Invested in capital assets, net of
related debt
Restricted
for Capital projects
by law for specific purposes
Unrestricted (deficit)
TOTAL NET ASSETS (DEFICIT)
20,681,948
-
(1,073,096,125)
8,820,507
$ (705,322,500)
$ 40,745,337
-
20,681,948
107,751
(1,064,275,618)
$
(664,577,163)
The accompanying notes are an integral part of this statement.
$
-
3,432,553
1,168,777
7,272,269
603,506
59,746,424
$ 11,584,750
$ 18,314,597
A-2
MECKLENBURG COUNTY, NORTH CAROLINA
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2004
Program Revenues
Functions/Programs
Primary Government
Governmental activities
Customer Satisfaction and
Management Services
Administrative Services
Financial Services
Land Use and Environmental Services
Community Services
Detention and Court Support Services
Health and Human Services
Business Partners
Interest on long-term debt
General purpose
Public schools
Total Governmental Activities
$
Business-type activities
Solid Waste Enterprise Fund
Total Primary Government
Component Units
Public Library of Charlotte and
Mecklenburg County
Mecklenburg Emergency Medical
Services Agency
Mecklenburg County Alcoholic
Beverage Control Board
Total Component Units
Charges for
Services
Expenses
4,713,506
39,279,980
3,800,229
44,964,169
55,180,957
90,163,414
284,575,085
535,387,248
$
2,786,765
801,132
48,230,572
3,871,825
21,663,604
25,028,178
3,547,264
37,554,279
39,134,034
1,134,752,901
105,929,340
10,137,235
12,746,983
$
1,144,890,136
$
118,676,323
$
27,121,368
$
1,867,573
24,583,556
$
53,150,472
104,855,396
Operating
Grants and
Contributions
$
53,911,489
68,681,303
Capital
Grants and
Contributions
$
157,802,215
1,146,670
220,648
1,367,318
-
-
$ 157,802,215
$
$
$ 16,175,526
12,902,241
$
160,313
55,295
19,768
3,756,629
2,101,823
4,863,652
136,838,200
10,006,535
Net (Expense) Revenue and Changes in Net Assets
Primary Government
Component Units
1,124,912
-
$
1,124,912
General Revenues
Property taxes, levied for general purposes
Property taxes, levied for Law Enforcement Service District
Sales taxes
State reimbursements
Other taxes
Investment earnings
Miscellaneous
Payment from primary government:
Library
Emergency Medical Services
Total General Revenues
Change in Net Assets
Net Assets (Deficit), beginning of year
Net Assets (Deficit), end of year
1,367,318
$ 16,175,526
Governmental
Activities
$
(4,553,193)
(36,437,920)
(2,979,329)
8,169,702
(48,986,661)
(63,636,158)
(122,708,707)
(521,833,449)
(37,554,279)
(39,134,034)
(869,654,028)
(869,654,028)
Business-type
Activities
$
-
2,609,748
2,609,748
Public Library
of Charlotte and
Mecklenburg
County
Total
$
(4,553,193)
(36,437,920)
(2,979,329)
8,169,702
(48,986,661)
(63,636,158)
(122,708,707)
(521,833,449)
(37,554,279)
(39,134,034)
(869,654,028)
2,609,748
(867,044,280)
-
-
-
-
-
-
-
-
-
606,101,525
12,948,398
180,631,909
2,359,276
3,492,807
5,337,180
1,729,319
812,600,414
(57,053,614)
(648,268,886)
$ (705,322,500)
The accompanying notes are an integral part of this statement.
148,908
148,908
2,758,656
37,986,681
$ 40,745,337
$
$
$
-
-
-
-
-
-
-
-
-
-
-
-
(11,681,315)
(7,953,357)
(11,681,315)
30,257
212,500
$
-
Mecklenburg
County Alcoholic
Beverage
Control Board
-
(7,953,357)
606,101,525
12,948,398
180,631,909
2,359,276
3,492,807
5,486,088
1,729,319
812,749,322
(54,294,958)
(610,282,205)
$ (664,577,163)
-
Mecklenburg
Emergency
Medical Services
Agency
24,100,527
24,343,284
16,389,927
43,356,497
59,746,424
25,884
68,541
$
11,111,963
11,206,388
(474,927)
12,059,677
11,584,750
761,017
761,017
5,055
133,433
138,488
899,505
17,415,092
$ 18,314,597
A-3
MECKLENBURG COUNTY, NORTH CAROLINA
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2004
2004B Public
2004A Public
Improvement
Improvement
Nonmajor
Total
Capital Projects
Capital Projects
Governmental
Governmental
Fund
Fund
Funds
Funds
General
ASSETS
Cash and investments
$ 217,465,846
Interest receivable
Accounts receivable
Accounts receivable - clinics
Less allowance for uncollectible taxes
70,617,170
Less allowance for uncollectible taxes
Advances to other governmental agencies
Due from other funds
Inventory
$
70,127,658
$ 123,131,072
$
481,341,746
-
-
24,375
1,882,481
52,463,470
-
-
9,000,373
61,463,843
1,848,288
-
-
-
-
-
-
39,189,918
-
-
(7,500,000)
(844,080)
Taxes receivable
TOTAL ASSETS
$
1,858,106
39,875,054
(148,000)
(7,648,000)
-
-
-
-
2,651,458
-
-
-
51,832
-
-
-
$
70,617,170
$
70,127,658
$
$
5,806,006
$
4,527,460
(844,080)
685,136
529,674
$ 307,714,512
1,848,288
1,996,335
2,526,009
2,651,458
51,832
$ 134,689,291
$
583,148,631
$
$
83,045,702
LIABILITIES AND FUND BALANCES
Liabilities
Accounts payable and accrued liabilities
63,506,943
Due to other funds
Deferred revenue
Total Liabilities
34,149,123
97,656,066
9,205,293
-
-
2,651,458
2,651,458
-
-
1,708,375
35,857,498
4,527,460
13,565,126
121,554,658
53,884,717
47,247,169
114,481,767
11,424,512
101,621,346
5,806,006
Fund Balances
Reserved for encumbrances
13,349,881
-
Reserved by State Statute
90,196,834
-
106,511,731
-
-
-
-
-
Unreserved, reported in
General Fund
Special Revenue Funds
-
Capital Projects Funds
-
Total Fund Balances
210,058,446
-
106,511,731
6,416,518
6,416,518
64,811,164
11,715,481
56,035,966
132,562,611
64,811,164
65,600,198
121,124,165
461,593,973
70,127,658
$ 134,689,291
TOTAL LIABILITIES AND
FUND BALANCES
$ 307,714,512
$
70,617,170
$
Amounts reported for governmental activities in the statement of
net assets are different because:
Capital assets used in governmental activities are not financial
resources and therefore are not reported in the funds.
650,873,531
Other long term assets are not available for current year
expenditures and, therefore, deferred in the funds.
31,283,554
Certain bond expenditures are capitalized for future
amortization over the life of the bonds
10,831,850
Long-term liabilities, including bonds payable, are not due and
payable in the current period and therefore are not reported in the
funds.
Net assets (deficit) of governmental activities
The accompanying notes are an integral part of this statement.
(1,859,905,408)
$
(705,322,500)
A-4
MECKLENBURG COUNTY, NORTH CAROLINA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2004
2004B Public
2004A Public
Improvement
Improvement
Nonmajor
Total
Capital Projects
Capital Projects
Governmental
Governmental
Fund
Fund
Funds
Funds
General
REVENUES
Taxes
$
756,571,980
$
-
$
-
$
1,371,002
$
757,942,982
Law Enforcement Service District Taxes
-
-
-
12,948,398
12,948,398
Transit One-Half Cent Sales Tax
-
-
-
29,235,677
29,235,677
Licenses and permits
Intergovernmental
Charges for services
20,810,125
-
-
147,716,718
-
-
12,163,933
-
159,880,651
20,810,125
70,788,560
-
-
10,065,864
80,854,424
Interest earned on investments
5,159,941
-
-
177,239
5,337,180
Administrative charges
2,868,492
-
-
Other
6,563,807
-
-
1,471,761
8,035,568
1,010,479,623
-
-
67,433,874
1,077,913,497
Total Revenues
-
2,868,492
EXPENDITURES
Current
Customer Satisfaction and Management
Administrative Services
Financial Services
4,625,991
-
-
-
4,625,991
37,377,104
-
-
-
37,377,104
5,343,695
-
-
Land Use and Environmental Services
36,688,873
-
-
Community Services
53,533,773
-
-
Detention and Court Support Services
81,241,309
-
-
-
5,343,695
9,715,512
46,404,385
-
53,533,773
284,002
81,525,311
Health and Human Services
283,596,456
-
-
Business Partners
318,732,321
-
-
48,992,440
-
367,724,761
283,596,456
92,128,738
Debt Service
Principal payments
90,766,320
-
-
1,362,418
Interest and fiscal charges
76,092,607
-
-
595,706
76,688,313
Capital Outlay
-
Total Expenditures
35,188,836
38,093,157
166,551,985
239,833,978
987,998,449
35,188,836
38,093,157
227,502,063
1,288,782,505
22,481,174
(35,188,836)
(38,093,157)
(160,068,189)
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
(210,869,008)
OTHER FINANCING SOURCES (USES)
Transfers in
17,893,278
-
-
6,087,021
23,980,299
Transfers out
(6,087,021)
-
-
(17,893,278)
(23,980,299)
Refunding bonds issued
Payment to refunded bond escrow agent
135,470,000
-
-
-
135,470,000
(148,763,086)
-
-
-
(148,763,086)
Bond and other debt issues
100,000,000
Capitalized lease
Premium on bonds issued
Total Other Financing Sources (Uses)
NET CHANGE IN FUND BALANCES
FUND BALANCES -BEGINNING OF YEAR
FUND BALANCES -END OF YEAR
18,155,000
223,155,000
-
-
76,923
1,426,923
21,921,756
-
-
-
21,921,756
21,784,927
100,000,000
105,000,000
44,266,101
64,811,164
66,906,843
(153,642,523)
22,341,585
(1,306,645)
274,766,688
439,252,388
165,792,345
$
105,000,000
1,350,000
210,058,446
$
64,811,164
$
65,600,198
The accompanying notes are an integral part of this statement.
6,425,666
$
121,124,165
233,210,593
$
461,593,973
A-5
MECKLENBURG COUNTY, 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, 2004
Net change in fund balances - total governmental funds
$
22,341,585
Amounts reported for governmental activities in the Statement of
Activities are different because:
Governmental funds report capital outlays as expenditures. However, in the
Statement of Activities, the cost of those assets is not included, as the assets
have been capitalized.
75,818,358
Depreciation expense is reported in the Statement of Activities, but not in the fund
statements.
(17,763,680)
Loss on disposal of assets is reported in the Statement of Activities, but not in
the fund statements.
(1,567,511)
Bond proceeds provide current financial resources to governmental funds, but
issuing debt increases long-term liabilities in the Statement of Net Assets, therefore,
bond proceeds do not appear in the Statement of Activities.
(358,625,000)
Bond premiums and deferred charges, which are revenues and expenditures, respectively ,
for the governmental funds are deferred and, therefore, do not appear in the Statement of
Activities.
(9,333,364)
Capital lease proceeds provide current resources to government funds, but the
the lease is recorded as long term debt in the Statement of Net Assets, and, therefore, the proceeds do not appear in the Statement of Activities.
(1,426,923)
Repayments of bond and capital lease principal are expenditures in the governmental funds,
but the repayments reduce long-term liabilities in the Statement of Net Assets, so the
expenses do not appear in the Statement of Activities.
232,134,938
Some revenues reported in the Statement of Activities do not represent current financial
resources and therefore are not reported as revenue in the governmental funds.
2,631,750
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 the
governmental funds.
Change in net assets of governmental activities
The accompanying notes are an integral part of this statement.
(1,263,767)
$
(57,053,614)
A-6
MECKLENBURG COUNTY, NORTH CAROLINA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL - GENERAL FUND
FOR THE YEAR ENDED JUNE 30, 2004
Variance from
Budgeted Amounts
Original
Final
Actual
Final Budget-
Amounts
Positive/(Negative)
REVENUES
Taxes
General property - current
$ 574,692,080
573,321,079
$ 587,127,564
10,760,000
10,760,000
12,025,696
1,265,696
1,850,000
1,850,000
2,945,513
1,095,513
151,600,000
151,600,000
151,396,232
Room occupancy
1,000,000
1,000,000
1,230,086
230,086
Vehicle rental
1,650,000
1,650,000
1,801,182
151,182
General property - prior
Interest on delinquent taxes
Sales
Other
Total Taxes
$
70,000
70,000
45,707
741,622,080
740,251,079
756,571,980
$
13,806,485
(203,768)
(24,293)
16,320,901
Licenses and permits
Business licenses
215,000
215,000
246,168
31,168
Inspection permits
18,457,400
19,108,360
20,449,662
1,341,302
Marriage licenses
Total Licenses and permits
115,000
115,000
114,295
18,787,400
19,438,360
20,810,125
(705)
1,371,765
Intergovernmental
Federal
84,321,892
91,889,759
88,600,246
(3,289,513)
State
51,301,584
56,018,722
52,840,890
(3,177,832)
Local
Total Intergovernmental
6,127,101
6,720,937
6,275,582
(445,355)
141,750,577
154,629,418
147,716,718
(6,912,700)
1,174,082
1,046,694
296,415
(750,279)
683,684
683,684
794,626
110,942
14,952,684
15,025,148
17,804,877
2,779,729
Charges for services
Administrative Services
Financial Services
Land Use and Environmental Services
2,270,204
2,447,974
2,538,266
90,292
Detention and Court Support Services
Community Services
21,129,604
22,361,708
21,494,984
(866,724)
Health and Human Services
23,026,162
25,964,229
24,373,040
(1,591,189)
3,650,000
3,650,000
3,486,352
(163,648)
66,886,420
71,179,437
70,788,560
(390,877)
Business Partners
Total Charges for services
Interest earned on investments
5,121,600
5,121,600
5,159,941
38,341
Administrative charges
3,827,673
3,827,673
2,868,492
(959,181)
Rental
1,291,475
1,389,575
1,574,841
185,266
Sale of properties
1,080,944
1,074,292
1,175,167
Miscellaneous
6,953,095
6,841,638
3,813,799
(3,027,839)
(2,741,698)
Other
Total Other
Total Revenues
9,325,514
9,305,505
6,563,807
987,321,264
1,003,753,072
1,010,479,623
(Continued)
The accompanying notes are an integral part of this statement.
100,875
6,726,551
A-6
MECKLENBURG COUNTY, NORTH CAROLINA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL - GENERAL FUND
FOR THE YEAR ENDED JUNE 30, 2004
(CONTINUED)
Variance from
Budgeted Amounts
Original
Final
Actual
Final Budget-
Amounts
Positive/(Negative)
EXPENDITURES
Current
Customer Satisfaction and Management
County Commissioners
$
Manager's Office
339,186
2,944,374
Public Service and Information
$
356,190
$
6,167,357
303,375
3,330,779
$
(52,815)
(2,836,578)
963,679
1,007,162
991,837
(15,325)
4,247,239
7,530,709
4,625,991
(2,904,718)
Internal Audit
456,353
467,792
464,663
(3,129)
County Attorney
501,081
521,509
477,377
(44,132)
Total Customer Satisfaction and Management
Administrative Services
Human Resources
Information Services and Technology
Real Estate Services
General Services
Nondepartmental
Total Administrative Services
3,124,338
3,192,867
3,756,041
563,174
14,284,183
15,259,884
14,426,079
(833,805)
1,072,073
1,314,470
1,424,244
109,774
11,397,228
11,448,285
10,936,390
(511,895)
8,255,377
5,685,326
5,892,310
206,984
39,090,633
37,890,133
37,377,104
(513,029)
2,649,754
2,722,956
2,255,258
(467,698)
Financial Services
Finance
Debt Service
Principal retirement - bonds and loans
37,874,142
42,418,187
42,337,205
(80,982)
Interest and fiscal charges
33,143,392
37,451,547
36,254,364
(1,197,183)
Payment to City of Charlotte
Tax Collection
Total Financial Services
855,982
855,982
704,209
(151,773)
3,569,663
3,596,674
3,088,437
(508,237)
78,092,933
87,045,346
84,639,473
(2,405,873)
23,020,473
20,934,368
21,531,495
597,127
5,138,927
6,939,847
5,986,470
(953,377)
Land Use and Environmental Services
Code Administration
Property Assessment and Land Records
Air Quality
3,109,568
4,396,092
1,993,078
(2,403,014)
Environmental Health
3,113,496
3,100,050
2,840,605
(259,445)
Water and Land Resource
1,915,095
1,890,682
1,471,985
(418,697)
Register of Deeds
3,067,228
3,332,405
2,865,240
(467,165)
39,364,787
40,593,444
36,688,873
(3,904,571)
Public Libraries
24,031,369
24,240,134
23,831,363
(408,771)
Park and Recreation
29,174,140
29,054,663
25,863,649
(3,191,014)
Elections
3,077,049
3,084,141
2,400,533
(683,608)
Women's Commission
1,506,076
1,578,132
1,438,228
(139,904)
57,788,634
57,957,070
53,533,773
(4,423,297)
5,318,738
5,674,109
5,099,004
(575,105)
921,849
928,377
778,146
(150,231)
77,669,261
78,043,249
75,364,159
(2,679,090)
83,909,848
84,645,735
81,241,309
(3,404,426)
Total Land Use and Environmental Services
Community Services
Total Community Services
Detention and Court Support Services
Court Services Department
Medical Examiner
Sheriff and Jail
Total Detention and Court Support Services
(Continued)
The accompanying notes are an integral part of this statement.
A-6
MECKLENBURG COUNTY, NORTH CAROLINA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL - GENERAL FUND
FOR THE YEAR ENDED JUNE 30, 2004
(CONCLUDED)
Variance from
Budgeted Amounts
Original
Final
Actual
Final Budget-
Amounts
Positive/(Negative)
Health and Human Services
Veterans Services
$
413,207
$
446,962
$
442,669
$
(4,293)
Public Health
Public Health Services
Public Health-CHS Contract
Community Health
3,679,122
5,163,474
3,763,984
(1,399,490)
19,590,004
19,588,635
19,226,151
(362,484)
1,642,335
2,924,580
2,062,764
(861,816)
Mental Health
Infant and Toddler Preschool Services
Child and Adolescent Services
5,806,727
5,491,233
5,109,511
(381,722)
19,655,695
19,036,978
15,411,271
(3,625,707)
(2,979,886)
Adult Services
21,330,396
22,611,473
19,631,587
Centralized Services
15,955,548
10,417,031
10,194,195
(222,836)
Developmental Disabilities Services
16,665,742
17,658,223
16,527,131
(1,131,092)
7,017,315
11,590,787
9,306,867
(2,283,920)
Administrative Services
Social Services
9,622,959
10,878,288
11,101,920
Grants
Administration
34,991,133
33,822,775
33,896,728
223,632
73,953
Day Care Operations
51,775,356
57,638,499
56,840,215
(798,284)
Services for Adults
22,618,594
22,941,561
22,441,847
(499,714)
Economic Services
20,327,496
20,002,939
19,628,946
(373,993)
Youth and Family Services
Total Health and Human Services
36,476,323
38,268,358
38,010,670
(257,688)
287,567,952
298,481,796
283,596,456
(14,885,340)
11,640,000
11,640,000
11,640,000
-
710,007
710,007
710,007
-
264,988,951
264,988,951
264,988,951
-
1,635,000
1,635,000
1,635,000
-
40,899,174
40,899,174
40,901,107
1,933
Business Partners
Emergency Medical Services
City-County Departments
Board of Education:
Current
Capital Outlay
Debt Service
Principal retirement - bonds
Principal retirement - certificates of
participation
Interest
2,500,000
2,500,000
2,497,000
(3,000)
44,074,511
35,074,511
34,812,501
(262,010)
15,923,225
15,923,225
15,923,225
Central Piedmont Community College
Current
-
Debt Service
Principal retirement - bonds
5,347,695
5,347,695
5,031,008
(316,687)
Interest
4,387,108
4,387,108
4,321,533
(65,575)
17,925,000
17,925,000
17,925,000
-
2,288,079
2,380,879
2,379,696
(1,183)
Hospitals
WTVI
Historic Landmarks Commission
Outside Agencies - Other
Total Business Partners
Total Expenditures
136,099
136,099
142,785
4,075,860
4,123,260
3,387,657
6,686
(735,603)
416,530,709
407,670,909
406,295,470
(1,375,439)
1,006,592,735
1,021,815,142
987,998,449
(33,816,693)
Excess (Deficiency) of Revenues
over (under) Expenditures
(19,271,471)
(18,062,070)
22,481,174
40,543,244
Transfers in
12,256,865
12,323,266
17,893,278
5,570,012
Transfers out
(3,941,251)
(6,087,021)
(6,087,021)
OTHER FINANCING SOURCES (USES)
Refunding bonds issued
-
Payment to refunded bond escrow agent
Capitalized lease
Premium on bonds issued
Appropriated fund balance
Total other financing sources
NET CHANGE IN FUND BALANCE
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
$
-
-
135,470,000
135,470,000
-
-
(148,763,086)
(148,763,086)
-
-
1,350,000
1,350,000
-
-
21,921,756
21,921,756
10,955,857
11,825,825
19,271,471
18,062,070
-
$
-
(11,825,825)
21,784,927
-
44,266,101
165,792,345
$ 210,058,446
The accompanying notes are an integral part of this statement.
3,722,857
$
44,266,101
A-7
MECKLENBURG COUNTY, NORTH CAROLINA
STATEMENT OF NET ASSETS
PROPRIETARY FUND
JUNE 30, 2004
Business
Type Activities
Solid Waste
Enterprise Fund
ASSETS
Current Assets
Cash and investments
$ 12,305,866
Interest receivable
47,481
Accounts receivable
896,652
Total Current Assets
13,249,999
Noncurrent Assets
Restricted cash and investments
321,315
Capital assets
Land
28,073,692
Construction in Progress
582,122
Land improvements
4,174,097
Buildings
10,203,250
Vehicles and heavy equipment
Furniture, machinery and equipment
Total capital assets
4,858,991
80,742
47,972,894
Less accumulated depreciation
(6,828,527)
Total Capital assets, net of accumulated depreciation
41,144,367
Total Noncurrent assets
41,465,682
TOTAL ASSETS
54,715,681
LIABILITIES
Current Liabilities
Accounts payable and accrued liabilities
Compensated absences
1,014,986
23,458
Capital leases
321,911
Bonds payable
2,330,721
Total Current Liabilities
3,691,076
Long-term Liabilities
Compensated absences
363,450
Landfill development and
postclosure care costs
3,311,862
Capital leases
304,331
Bonds payable
6,299,625
Total Long-term Liabilities
10,279,268
TOTAL LIABILITIES
13,970,344
NET ASSETS
Invested in capital assets, net of related debt
31,603,515
Restricted net assets:
Restricted for capital projects
Unrestricted
321,315
8,820,507
TOTAL NET ASSETS
The accompanying notes are an integral part of this statement.
$ 40,745,337
A-8
MECKLENBURG COUNTY, NORTH CAROLINA
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS
PROPRIETARY FUND
FOR THE YEAR ENDED JUNE 30, 2004
Business
Type Activities
Solid Waste
Enterprise Fund
OPERATING REVENUES
Charges for services
$ 10,934,103
Other
1,774,001
Total Operating Revenues
12,708,104
OPERATING EXPENSES
Personal services and employee benefits
3,504,665
Utilities
123,038
Supplies
398,437
Depreciation
1,202,350
Maintenance and repairs
524,626
Rental and occupancy charges
151,199
Contractual services
2,642,255
Final development and postclosure costs
879,485
Total Operating Expenses
9,426,055
OPERATING INCOME
3,282,049
NON-OPERATING REVENUES (EXPENSES)
Interest income
148,908
Interest expense
(610,855)
Gain on disposal of capital assets
38,879
Amortization of refunding amount
(100,325)
Total Non-operating Revenues (Expenses)
(523,393)
CHANGE IN NET ASSETS
2,758,656
NET ASSETS - BEGINNING OF YEAR
NET ASSETS - END OF YEAR
37,986,681
$ 40,745,337
The accompanying notes are an integral part of this statement.
A-9
MECKLENBURG COUNTY, NORTH CAROLINA
STATEMENT OF CASH FLOWS
PROPRIETARY FUND
FOR THE YEAR ENDED JUNE 30, 2004
Business
Type Activities
Solid Waste
Enterprise Fund
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from users
$ 13,377,559
Cash paid to suppliers
(4,915,358)
Cash paid to employees
Net cash provided by operating activities
(3,284,334)
5,177,867
CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES
Landfill contribution
Net cash provided by non-capital financing activities
879,485
879,485
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Principal payments - bonds
(2,456,262)
Principal payments - capital leases
(318,960)
Interest paid
(610,855)
Acquisition of capital assets
(2,946,326)
Net cash used by capital and related financing activities
(6,332,403)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received
148,207
Net cash provided by investing activities
148,207
DECREASE IN CASH AND INVESTMENTS
(126,844)
CASH AND INVESTMENTS - BEGINNING OF YEAR
CASH AND INVESTMENTS - END OF YEAR
12,754,025
$ 12,627,181
Reconciliation of Operating Income to Net Cash Provided by
Operating Activities
Operating Income
$
3,282,049
Adjustments to reconcile operating income to net cash
provided by operating activities:
Depreciation
1,202,350
Change in accounts receivable
669,455
Change in accounts payable and accrued liabilities
(2,900)
Change in compensated absences
26,913
Total adjustments
Net cash provided by operating activities
1,895,818
$
5,177,867
$
100,325
Noncash investing, capital, and financing activities
Amortization of refunding amount
Non-cash capital additions
The accompanying notes are an integral part of this statement.
38,879
A - 10
MECKLENBURG COUNTY, NORTH CAROLINA
STATEMENT OF NET ASSETS
FIDUCIARY FUNDS
JUNE 30, 2004
Agency Funds
ASSETS
Cash and investments
Accounts receivable
TOTAL ASSETS
$
3,459,299
10,126
3,469,425
LIABILITIES
Accounts payable and accrued liabilities
Due to other governmental agencies
TOTAL LIABILITIES
1,754,892
1,714,533
3,469,425
NET ASSETS
Net Assets
$
The accompanying notes are an integral part of this statement.
-
MECKLENBURG COUNTY, NORTH CAROLINA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2004
1.
Summary of Significant Accounting Policies
(a) Reporting Entity
Mecklenburg County, North Carolina (the County) was created from a portion of Anson County on
December 11, 1762. The County has a county manager form of government with a nine-member, elected
Board of Commissioners comprising the governing body. The County provides the following services which
are segregated into core services in the financial statements: Management Services, Financial Services,
Customer Service and Communications, Land Use and Environmental Services, Community Services,
Detention and Court Support Services, Health and Human Services and Business Partners. Individual
departments included in these core services are shown on the Organization Chart in the Introductory
Section. As required by accounting principles generally accepted in the United States of America (GAAP),
these financial statements present all the fund types and component units. Discretely presented component
units are reported in separate columns in the government-wide financial statements to emphasize they are
legally separate from the County.
The Public Library of Charlotte and Mecklenburg County (Library) is a public library formed in 1902 by an act
of the General Assembly of North Carolina. Six of the seven members of the Library Board of Trustees are
appointed by the County and one is appointed by the Charlotte-Mecklenburg Board of Education. The
County has budgetary approval over its annual allocation to the Library for current operating purposes. The
Library is not empowered to issue long-term debt; therefore, capital assets of the Library are financed
principally by general obligation bonds and certificates of participation issued at the option of the County.
There is no obligation on the County to issue debt for the Library. The Library is presented as a
governmental activity.
The Mecklenburg County Alcoholic Beverage Control Board (ABC Board) operates retail liquor stores and
investigates violations of North Carolina Alcoholic Beverage Control laws. The ABC Board also provides
financial support for various educational programs on the excessive use of alcoholic beverages and for
rehabilitation of alcoholics. The ABC Board consists of five members appointed by the Board of County
Commissioners and is required by State statute to distribute a portion of its surpluses to the General Fund of
the County. The ABC Board is presented as a business-type activity.
The Mecklenburg Emergency Medical Services Agency (Medic Agency) was created by a joint agreement
dated September 11, 1996, between Mecklenburg County and the Charlotte-Mecklenburg Hospital Authority
pursuant to North Carolina General Statute 160A-462 as a separate unit of government for the purpose of
providing emergency medical services in the County. The Medic Agency began operations on October 8,
1996. The Medic Agency is governed by a seven-member Board of Commissioners appointed by the County
Board of Commissioners, three of whom are recommended by Carolinas Healthcare System, three by
Presbyterian/Novant Health, and one by the County. The County has budgetary approval over the annual
allocation to the Medic Agency for current operating purposes. The Medic Agency is presented as a
governmental activity.
Complete financial statements for the individual component units may be obtained at the following
addresses:
Public Library of Charlotte and Mecklenburg County
310 N. Tryon Street
Charlotte, North Carolina 28202
Mecklenburg County Alcoholic Beverage Control Board
P. O. Box 33894
Charlotte, North Carolina 28233-3894
Mecklenburg Emergency Medical Services Agency
4525 Statesville Road
Charlotte, North Carolina 28269
MECKLENBURG COUNTY, NORTH CAROLINA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2004
(b) Government-wide Financial Statements
The Statement of Net Assets (Deficit) and the Statement of Activities comprise the government-wide
financial statements. These statements present information on all the non-fiduciary activities of the primary
government and its discretely presented component units. For the most part, the effect of interfund activity
has been eliminated from the statements. The primary government consists of governmental activities,
which are generally supported by taxes and intergovernmental revenues and business-type activities which
charge for the services provided. Component units, which are legally separate entities for which the primary
government is financially accountable, are also categorized as governmental or business-type activities and
are reported separately on the government-wide financial statements.
The Statement of Net Assets (Deficit) presents the difference between assets and liabilities at the end of the
fiscal year, June 30, 2004. The difference, net assets (deficit), is subdivided into three categories: amounts
invested in capital assets, net of related debt; restricted net assets; and unrestricted net assets (deficit). Net
assets are reported as restricted when constraints on the use of the assets are imposed either externally by
grantors, contributors, creditors, or laws or regulations of other governments, or by law through constitutional
provisions or enabling legislation.
The Statement of Activities, which shows the change in net assets, presents direct expenses offset by
program revenues for each core service area. Program revenues include fees and charges to customers for
specific services provided and grants and contributions restricted for use in specific operations of a core
service area. Tax revenues, interest and other revenue items that benefit the entire primary government are
considered general revenues.
(c) Financial Presentation, Measurement Focus and Basis of Accounting
Separate financial statements are provided for governmental funds, the proprietary fund and the fiduciary
funds. The fiduciary funds are excluded from the government-wide financial statements because the funds
are held by the County in a trust capacity only. Major individual governmental funds are reported as
separate columns in the fund financial statements.
The government-wide financial statements and the proprietary fund are reported using the economic
resources measurement focus and the accrual basis of accounting. Revenues are recognized in the period
earned; expenses are recognized when a liability is incurred. Property taxes are recognized as revenues in
the year in which they are levied. Grants and intergovernmental revenues are recognized as revenue when
the eligibility requirements imposed by the grantor or other government agency have been met. Fees and
charges of the proprietary funds are recognized as revenue when the services are provided.
Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Revenues are recognized as the amounts become
susceptible to accrual by becoming measurable and available to finance the County’s operations. Available
means collectible within the current period or soon enough thereafter to pay liabilities of the current period.
For this purpose, revenues are considered to be available if they are collected within 60 days, except for
sales tax revenue which is considered to be available if collected within 90 days, of the end of the current
fiscal year. Expenditures are recognized in the accounting period in which the fund liability is incurred, if
measurable, except for unmatured interest on long-term debt and expenditures for compensated absences,
which are recognized when payment is due.
In applying the susceptible to accrual concept to intergovernmental revenues, the legal and contractual
requirements of the numerous individual programs are used as guidance. There are typically two types of
revenues. One type requires funds to be disbursed for a specific purpose or project before any amount will
be reimbursed to the County; therefore, revenues are recognized as receivable based upon the
expenditures recorded. The other type provides moneys that are virtually unrestricted as to purpose of
expenditure and are usually revocable only for failure to meet prescribed compliance requirements. These
resources are reflected at the time of receipt or earlier if the susceptible to accrual criteria are met. Other
governmental revenues which are susceptible to accrual are sales taxes collected and held by the State at
year-end on behalf of the County, and investment earnings. Licenses and permits, charges for services, and
MECKLENBURG COUNTY, NORTH CAROLINA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2004
other revenues are recorded as revenues when received in cash, because they are generally not
measurable until actually received.
The County reports the following major governmental funds:
General Fund – The General Fund is the primary operating fund of the County and accounts for all
financial resources except those required to be accounted for in another fund.
2004B Public Improvement Capital Projects Fund – This Capital Projects Fund accounts for financial
resources to be used for the construction and renovation of school facilities.
2004A Public Improvement Capital Projects Fund – This Capital Projects Fund accounts for financial
resources to be used for the acquisition or construction of major capital facilities for school and
community college facilities, court and library facilities, park and recreation facilities, and for the
purchase of land.
The County reports the following major proprietary fund:
Solid Waste Enterprise Fund – This fund accounts for activities related to recycling and landfill facilities
and is self-supporting through user fees and recycling sales.
Additionally, the County reports the following funds:
a. Nonmajor governmental funds are:
Special Revenue Funds – Special Revenue Funds account for the proceeds of specific revenue
sources (other than special assessments or capital projects) that are legally restricted to
expenditures for specified purposes.
Capital Projects Funds – Capital Projects Funds, other than the 2004B and 2004A Public
Improvement Capital Projects Funds, account for financial resources to be used for the
acquisition or construction of major capital facilities (other than those financed by the
Proprietary Fund).
b. Fiduciary Funds - The agency fiduciary funds account for assets held by the County as agent for
individuals, private organizations or other governmental units. These funds are custodial in nature
and do not involve measurement or operating results.
The County has elected to apply only applicable Financial Accounting Standards Board Statements and
Interpretations issued before November 30, 1989 in both the government-wide and proprietary fund financial
statements.
The County has eliminated the effect of interfund activity from the government-wide financial statements.
The only exceptions are charges between the Solid Waste Enterprise Fund and the General Fund.
Elimination of these charges would distort the direct costs and program revenues reported for the various
functions involved.
The Solid Waste Enterprise Fund, a proprietary type fund, distinguishes between operating revenues and
expenses and non-operating revenues and expenses. The principal operating revenues of the Solid Waste
Enterprise Fund are landfill tipping fees, charges for recycling services and proceeds from the sale of
recycled items. Operating expenses consist of cost for services provided, administrative costs and
depreciation of assets. All other revenues and expenses are classified as non-operating.
(d) Budgetary Control
As required by the North Carolina Budget and Fiscal Control Act (North Carolina General Statute 159), the
County adopts, on a basis consistent with accounting principles generally accepted in the United States of
America, an annual balanced budget ordinance for all funds except those authorized by project ordinance
MECKLENBURG COUNTY, NORTH CAROLINA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2004
and the agency fiduciary funds. The budget ordinance is balanced when the sum of estimated net revenues
and appropriated fund balance is equal to appropriations. The appropriations in the various funds are
budgeted at the line item level and most are controlled at the category level. The annual budget is prepared
on the modified accrual basis of accounting as required by the statutes. Budget preparations begin with the
Board of County Commissioners’ annual strategic planning conference in January. Department budgets are
prepared and combined into a county-wide budget between February and April. Public hearings are held in
May and the budget is adopted by vote of the County Commissioners prior to July 1, to comply with the
North Carolina General Statutes. The County Manager is authorized to transfer budgeted amounts within
any fund. However, any revisions that alter the total budget of any fund must be approved by the Board of
County Commissioners. Except for certain continuing grants, any remaining annual appropriations lapse at
each fiscal year-end.
The Statement of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual presents the
adopted and final budget and actual amounts for the General Fund. Capital lease amounts are approved by
the Board of County Commissioners as needed and the amount budgeted for capital leases annually is the
related debt service for the year.
Additionally, the Board of County Commissioners approves annual budgets for all the Special Revenue
Funds except the One-half Cent Sales Tax Special Revenue Fund. During the year, the Board of County
Commissioners also approved amendments for these funds as follows:
Original
Budget
Special Revenue Funds
$80,662,905
Amendments
$11,061,971
Final Budget
June 30, 2004
$91,724,876
Amendments result from appropriating revenues received in excess of amounts anticipated in the original
budgets.
The One-half Cent Sales Tax Special Revenue Fund and the Capital Projects Funds are budgeted by project ordinance and the appropriations do not lapse at year-end. The following reconciles Special Revenue
Funds with annually adopted budgets and Special Revenue Funds with project length budgets:
Special Revenue Funds – Annually Budgeted Funds
Deficiency of revenues and other financing sources over
Expenditures
Special Revenue Funds – Project Budgeted Funds
Excess of revenues and other financing sources over
expenditures
Total
$ (6,520,556)
(14,430,214)
$(20,950,770)
Appropriated budgets are adopted for all Library funds as required by the State. The Library’s Board of
Trustees approves their budget, and the Board of Trustees must also approve any changes in the budget.
Expenditures may not legally exceed appropriations unless approved by the Board of Trustees. The level of
budgetary control is by department for funds provided by the County and by activity for all other funds.
The Medic Agency Board of Commissioners adopts an annual budget on the modified accrual basis of
accounting as required by the State. Appropriations are budgeted at the category level and are controlled at
the category level. All budget amendments must be approved by the Medic Agency Board of
Commissioners.
(e) Cash and Investments
A cash and investments pool is maintained and used for all available funds except funds held by others. A
portion of the County’s self-insurance funds in the amount of $4,677,864 is held in one or more trusts
administered by the City of Charlotte’s Risk Management Division and $89,212 is held by the health care
administrator; and proceeds of $26,857,696 from certificates of participation, are held by a trustee.
MECKLENBURG COUNTY, NORTH CAROLINA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2004
Deposits
The deposits of the County are governed by North Carolina General Statute 159. The County may establish
official depositories with any bank or trust company or any savings and loan institution located in North
Carolina or with a national bank located in another state with written permission of the Local Government
Commission, a Division of the State Treasurer’s Office. The County may also establish time deposits in the
form of NOW accounts, SUPERNOW and money market accounts and certificates of deposit. Primary
banking services for the County are provided through a two-year contract, currently with First Citizens Bank
of North Carolina. All moneys are deposited in an interest-bearing depository checking account. At yearend, the cash balance of County deposits was $37,994,241 and the bank balance was $46,192,793.
Included in these amounts is a money market account in the amount of $15,011,230 with Wachovia Bank,
N.A. Also included are $25,628,852 in certificates of deposit which includes two non-interest bearing twoyear certificate of deposits totaling $15,689,477 with First Citizens Bank of North Carolina held as a
compensating balance in lieu of service charges.
County deposits are maintained with financial institutions which collateralize excess deposits by a method
which allows securing uninsured deposits through the pooling of collateral method established by the
depository with the State Treasurer for the benefit of the State and the local participating units permitted
under North Carolina Administrative Code, Title 20, Chapter 7. Each depository establishes an escrow
account in the name of the State Treasurer to secure all of its public deposits. This option shifts monitoring
responsibility from the local unit to the State Treasurer. Depositories using the pooling method report to the
State Treasurer the adequacy of their pooled collateral covering uninsured deposits. The State Treasurer
does not confirm this information with the County or the escrow agent. Because of the inability to measure
the exact amount of collateral pledged for the County, the potential exists for under-collateralization, and this
risk may increase in periods of high cash flows. However, the State Treasurer enforces strict standards of
financial stability for each depository. The total bank balance of $ 46,098,454 was covered by collateral at
June 30, 2004.
North Carolina General Statute 159 also governs the deposits of the Library, ABC Board and the Medic
Agency. The Medic Agency collateralizes excess deposits by the pooling of collateral method. Deposits of
the Library and ABC Board are either insured or collateralized by using one of two methods. Under the
dedicated method, all deposits over the federal depository insurance coverage are collateralized with
securities held by the Library’s or ABC Board’s agent in their name or the pooling method. At June 30, 2004,
the Medic Agency’s deposits had a carrying value of $4,581,241 and a bank balance of $4,638,664 of which
$132,254 was covered by federal depository insurance and $4,448,987 was covered by collateral. At June
30, 2004, the carrying amount of the Library’s bank deposits was $3,561,945 and the bank balance was
$3,865,633 of which $586,346 was covered by federal depository insurance and $3,279,287 was covered by
the pooling method. Investments of $325,182 consist of certificates of deposit having original maturity of six
months with an interest rate of 1.44%. At June 30, 2004, the carrying amount of the ABC Board’s bank
deposits was $3,447,332 and the bank balance was $5,605,753. Of the bank balance at June 30, 2004,
$124,562 was covered by federal depository insurance and the remaining $5,605,753 was covered by
collateral under the pooling method.
Investments
North Carolina General Statute 159 authorizes the County to invest in obligations of the U. S. Treasury;
obligations of any agency of the United States of America, provided the payment of principal and interest of
such obligations is fully guaranteed by the United States; obligations of certain quasi-federal agencies;
commercial paper bearing the highest credit rating available; bankers’ acceptances of accepting banks or
holding companies either (i) incorporated in the State of North Carolina or (ii) having the highest available
long-term debt rating; and the North Carolina Capital Management Trust, a SEC registered (2a-7) money
market mutual fund.
Investments are categorized to give an indication of the level of risk assumed by the entity at year-end. All
the County’s investments are Category 1, which includes investments that are insured or registered or for
which the securities are held by the County or its agent in its name. Category 2, which includes uninsured
and unregistered investments for which the securities are held by the counterparty’s trust department or
agent in the County or Medic Agency’s name. Category 3 includes uninsured and unregistered investments
for which the securities are held by the counterparty, or by its trust department or agent but not in the
MECKLENBURG COUNTY, NORTH CAROLINA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2004
County’s or Medic Agency’s name. The North Carolina Capital Management Trust is exempt from risk
categorization because a third-party custodian takes delivery of investment securities and neither the County
nor the Medic Agency own identifiable securities, but are shareholders of the fund.
As of June 30, 2004, investments outstanding for the County were as follows:
Type of Investments
Category 1
Reported Value
U.S. Government Agencies
$285,451,172
$285,451,172
Commercial Paper
80,899,603
$366,350,775
80,899,603
366,350,775
64,850,656
N. C. Capital Management Trust
TOTAL
$431,201,431
All securities owned by the County at June 30, 2004, were in a segregated safekeeping account in the
County’s name in the Trust Department of First Citizens Bank of North Carolina. In accordance with State
law, the County invests in callable securities and the first call date was August 25, 2004. These investments
are stated at fair value on the County’s financial statements.
All County investments are carried at fair value as determined by quoted market prices. The N.C. Capital
Management Trust cash portfolio’s securities are valued at fair value, which is their share price.
All Medic Agency investments, $1,181,974, were invested in the N. C. Capital Management Trust at June
30, 2004.
During 2004, no gains from sale of investments were recognized, as no investments were sold. The
calculation of realized gains is independent of the calculation of the net increase in the fair value of
investments. Realized gains and losses on investments that had been held in more than one fiscal year and
sold in the current year may have been recognized as an increase or decrease in the fair value of the
investments reported in the prior year. The net decease in the fair value of investments during 2004 for the
County was $1,095,907. This amount takes into account all changes in fair value (including purchases and
sales) that occurred during the year. The unrealized loss on investments held at year-end for the County
was $1,788,343.
Interest is recorded when earned and is distributed to each fund based on the fund’s proportionate equity in
pooled cash and investments, except that interest on investments of the Capital Projects Funds is distributed
to the General Fund for debt service.
(f) Inventory
Inventory is valued at the lower of cost (first-in, first-out) or market and consists of expendable supplies held
for consumption. The cost of individual inventory items is expensed at the time of purchase. At the end of
each fiscal year, inventory and applicable expense accounts are adjusted to reflect actual inventory on hand.
The ABC Board merchandise inventory is valued at replacement cost which approximates the lower of firstin, first-out cost or market. Maintenance, office and operating supplies, except paper bags, are expensed
when purchased.
(g) Capital Assets
Capital assets, which include land, land improvements, buildings and improvements, vehicles and heavy
equipment, and furniture, machinery and equipment, are reported in the applicable governmental or
business-type activities column in the government-wide financial statements and in the proprietary fund
financial statements. Capital assets are defined as assets with an initial, individual purchase price of $5,000
or more and an estimated useful life of two years or more. Such assets are recorded at historical cost or
estimated historical cost if the asset is purchased or constructed. Contributed capital assets are recorded at
the estimated fair market value at the time received. The County owns only limited infrastructure assets,
MECKLENBURG COUNTY, NORTH CAROLINA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2004
which are considered to be park improvements, a part of land improvements. Park improvements acquired
during fiscal year 2004 have been included in capital assets. Park improvements added prior to fiscal year
2002 will be shown in a subsequent fiscal year’s report. The costs of normal maintenance and repairs that
do not add to the value of the asset or materially extend the asset’s life are not capitalized.
Depreciation, which is recorded as an expense against the operations of the governmental and businesstype activities of the government-wide financial statements and for the proprietary fund financial statements,
is calculated using the straight-line method over the following estimated useful lives:
Land Improvements
Building and improvements
Machinery and equipment
Vehicles
Furniture
20 - 40 years
10 - 40 years
5 -10 years
3 - 7 years
3 -10 years
For the ABC Board, buildings, equipment and motor vehicles are stated at cost and are being depreciated
over their useful lives on a straight-line basis, and leasehold improvements are amortized over the term of
the applicable lease. Upon disposal, the cost of an asset and the related accumulated depreciation are
removed from the books. Any gain or loss on disposition is reflected in income upon disposal. Maintenance
and repairs are expensed as incurred.
Estimated useful lives for the ABC Board are as follows:
Buildings
Equipment
Vehicles
40 years
5 -10 years
3 years
Library capital assets include land, buildings and improvements, and furniture and equipment. Assets which
have an initial, individual cost of more than $5,000 and an estimated useful life in excess of one year are
capitalized for government-wide reporting. Purchased assets are recorded at historical cost, while donated
capital assets are recorded at estimated fair market value at the date of donation. The cost of books are
considered expenditures and are not capitalized. Cost of normal maintenance and repairs that do not add to
the value of the asset or materially extend asset lives are not capitalized.
Library capital assets are depreciated using the straight-line method over the following estimated useful
lives:
Buildings and improvements
Furniture and equipment
40 years
5 -10 years
Medic Agency capital assets consist of vehicles, furniture and various categories of equipment, and
buildings and improvements buildings and improvements. Property and equipment acquisitions are reported
at cost and the minimum capitalization cost is $5,000. Normal maintenance and repairs that do not add
value to the asset or materially extend the assets’ lives are expensed.
Depreciation is provided over the following useful lives of each asset class using the straight-line method:
Buildings
Vehicles
Furniture and equipment
(h)
10 years
4 years
3 - 10 years
Compensated Absences
For the County, Library and Medic Agency, the maximum amount of vacation that can be transferred to the
next calendar year is 240 hours. Accrued vacation beyond the maximum will be converted to sick leave as
of the last pay period ending on or before December 31 each year. Vacation leave is earned based on years
of service and is fully vested when earned. All unused accumulated vacation up to 240 hours will be paid
upon termination. The County, Library and Medic Agency sick leave policies allow regular employees to
MECKLENBURG COUNTY, NORTH CAROLINA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2004
accumulate an unlimited amount of sick leave. One-fourth of the unused accumulated sick leave, which is
fully vested when earned, is paid upon termination, with the balance in the case of retirement being used in
the determination of length of service for retirement benefits.
All vacation pay is accrued when incurred in the government-wide and proprietary fund financial statements.
A liability for vacation/sick leave is reported in the governmental funds financial statements only if the benefit
has matured, for example, as a result of employee resignations and retirements.
ABC Board employees may accumulate a maximum of 40 days earned vacation based on years of service
and such leave is fully vested when earned. Employees can accumulate an unlimited amount of sick leave.
Sick leave may be used in the determination of length of service for retirement benefit purposes or a portion
may be taken as a distribution at retirement. Accumulated earned vacation and sick leave at June 30, 2004
was $456,032.
(i)
Long-Term Obligations
In the government-wide and proprietary fund financial statements, long-term debt and other long-term
obligations are reported as liabilities in the applicable governmental or business-type activities or the
proprietary fund Statement of Net Assets. Bond premiums are deferred and amortized over the life of the
bonds using the straight-line method. Bonds payable are reported net of the applicable premium.
(j) Governmental Fund Equity
Fund balances of the governmental funds include the following types of reservations and designations as
allowed by State statute:
•
Reserved for encumbrances – This represents commitments outstanding at fiscal year-end resulting
from purchase orders and contracts.
•
Reserved by State statute – This represents the amount of fund balance which cannot be appropriated
by the governing board. North Carolina General Statute 159 limits the amount that each local
government may commit for purposes of future expenditures to an amount not to exceed the sum of
cash and investments, less the sum of liabilities, encumbrances and deferred revenues arising from
cash receipts at the close of the fiscal year preceding the budget year.
•
Designated for land use and environmental services, community services, detention and court support
services, and health and human services – These represent amounts approved by the Board of County
Commissioners which are restricted to expenditures for the stated core service areas.
•
Designated for capital projects – This represents proceeds of bond sales and amounts accumulated in
accordance with the North Carolina General Statutes, which are restricted to expenditures for capital
items.
•
Designated for self-insurance – This represents amounts that are restricted to expenditures for selfinsurance.
•
Designated for subsequent years’ expenditures – This represents the amount of fund balance
appropriated by the Board of County Commissioners for subsequent years and the amount of fund
balance which exceeds 8% of the subsequent fiscal year budget that is available for future years’
appropriation.
•
Undesignated – This represents the amount of fund balance available for future appropriations.
MECKLENBURG COUNTY, NORTH CAROLINA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2004
The following table presents the reservations and designations of fund balances at June 30, 2004:
_________________Major Funds_____________
2004B
2004A
General
Capital Projects Capital Projects
Fund
Fund
Fund
Fund Balance:
Reserved for encumbrances
$ 13,349,881
Reserved by State Statute
90,196,834
Designations:
Land Use and Environmental Services
2,932,983
Community Services
495,687
Detention and Court Support Services
Health and Human Services
1,069,737
Business Partners
Capital Projects
Self-insurance
2,437,328
Subsequent Year’s Expenditures
8,759,648
Undesignated
90,816,348
$210,058,446
(k)
$
-
64,811,164
__ -_ ____
$ 64,811,164
$ 53,884,717
35,711,194
(23,995,713)
$65,600,198
Nonmajor Funds
Special
Capital
Revenue
Projects
Funds
Funds
$ 5,563,120
8,702,310
$ 41,684,049
2,722,202
6,218,228
240,859
1,286,503
8,156,169
(9,485,241)
85,521,065
(29,485,099)
$20,681,948
$100,442,217
Restricted Assets
The unexpended bond proceeds of general obligation bonds issued for solid waste facilities are classified as
restricted assets for the Solid Waste Enterprise Fund because their use is restricted to that purpose.
(l)
School Facilities Finance Act of 1987
The School Facilities Finance Act of 1987 (the Act) was enacted by the North Carolina General Assembly to
assist county governments in meeting their public school facility capital needs. The Act created two
State-funded programs for the construction and renewal of school facilities: the Public School Building
Capital Fund administered by the Office of State Budget and Management and the Critical School Facilities
Needs Fund administered by the State Board of Education. Mecklenburg County is not eligible to receive
funds from the Critical School Facilities Needs Fund. The Public School Building Capital Fund may also be
used to finance equipment needs under the local school unit’s technology plan.
The Public School Building Capital Fund (the Fund) is funded by a portion of the corporate income taxes
which are imposed on corporations doing business in the State. Each calendar quarter, the Department of
Revenue shall remit to the State Treasurer for credit in the Fund, an amount equal to the applicable fraction
of the net collections of corporate income taxes received during the previous quarter minus $2.5 million,
which it deposits into the Critical School Facilities Needs Fund. For periods after September 30, 2000, the
fraction is five sixty-ninths.
Monies in the Fund are allocated to Mecklenburg County based on its average daily membership (ADM)
compared to other counties in North Carolina as determined and certified by the State Board of Education.
The Office of State Budget and Management establishes and maintains an ADM allocation account for the
County. At June 30, 2004, the balance of the County's ADM allocation account was zero.
After approving a school capital project authorized by the Act, the Office of State Budget and Management
transfers funds from the County's ADM allocation account to its disbursing account maintained with the
State Treasurer. Funds in the allocation and disbursing accounts are considered State monies until the
County issues warrants to disburse them. At that time, they are recognized in the County’s capital project for
school projects as intergovernmental revenue. At June 30, 2004, the County's disbursing account had a
balance of $1,566,619 for which the total project authorizations were $61,246,984. The County has matched
the project authorization amount on the basis of one dollar for every three dollars of State funds. The local
school technology plan does not require a County match.
MECKLENBURG COUNTY, NORTH CAROLINA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2004
(m) Public School Building Bond Act of 1996
The General Assembly passed the Public School Building Bond Act of 1996 to provide for the issuance of
$1.8 billion in State bonds to be used for making grants to counties for qualified public school capital outlay
projects. The Department of Public Instruction is responsible for project approval and the distribution of
funds. The principal amounts of bonds or notes issued by the State in any twelve-month period may not
exceed $450 million.
Of the total $1.8 billion authorized, $30 million will be allocated as grants to counties that have small county
school systems, after considering whether the counties demonstrate both greater than average school
construction needs and high property tax rates. The primary allocation of $1.77 billion has been distributed
to all counties based on the average daily membership, the ability to pay, and the growth rate of the school
administrative units located within each county. The total allocation to Mecklenburg County is $119,830,058.
The distribution of the primary allocation is subject to the satisfaction of certain match requirements by the
counties. Match requirements may be satisfied by non-State expenditures for public school facilities made
on or after January 1, 1992. The County’s matching requirement of $.50 for each dollar of allocated bond
proceeds has been fulfilled.
Because the County has met its matching requirement, the County recognizes revenues equal to the
liabilities incurred for approved project expenditures. The County requests bond funds by project as
expenditures are made. During fiscal year 2003-04, the County expended $7,839,208 and recognized
$6,444,840 in revenue.
(n) Benefit Payments Issued by the State
The following amounts were paid by the State on behalf of the County directly to individual recipients. The
County personnel are involved with certain functions, primarily eligibility determinations that cause benefit
payments to be issued by the State. These amounts, which disclose additional aid to County recipients, do
not appear in the basic financial statements because they are not revenues and expenditures of the County:
2004
Medicaid
Temporary Assistance to Needy Families
Domiciliary Care
Aid to the Blind
Supplemental Food Program
Low Income Energy Assistance
Refugee Assistance
Adoption Assistance
Foster Care
TOTAL
$424,107,997
16,804,645
3,147,263
134,160
11,377,172
1,271,671
108,265
2,431,177
2,432,894
$461,815,244
(o) Deferred Revenues
Revenues collected in advance of the fiscal year in which they are earned are recorded as deferred
revenues in the government-wide and governmental fund financial statements. Deferred revenue in the
governmental funds financial statements also includes revenues that are measurable but not available.
MECKLENBURG COUNTY, NORTH CAROLINA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2004
The balances in deferred revenue at June 30, 2004 are composed of the following:
Government-wide
Statements
Governmental
Activities
Governmental Fund
Statements
Taxes receivable (net)
Prepaid taxes not yet earned
Grants
$
1,639,347
2,934,597
$ 31,283,554
1,639,347
2,934,597
TOTAL
$4,573,944
$ 35,857,498
(p) Deficit Fund Equity
The Other Capital Funding Capital Project Fund has a deficit undesignated fund balance of $4,403,684 and
a deficit fund balance of $2,920,828 because funding from the State is on a reimbursement basis; therefore,
expenditures are made before revenues are received.
(q) Statement of Cash Flows
All cash and investments of the proprietary fund are held in a County-wide cash and investment pool. Funds
are available on demand from the pool. Accordingly, all cash and investments are considered cash and cash
equivalents in the Statement of Cash Flows.
2.
Accounts Receivable
The following reflects the components of accounts receivable as reported in the government-wide Statement of
Net Assets (Deficit) at June 30, 2004:
Governmental
______________________Activities_____________________
2004B Public 2004A Public
Improvement
Improvement
Capital
Capital
General
Project
Project
Nonmajor
Fund
Fund
Fund
Funds
General
State and Federal Government
Taxes
Less allowance for doubtful
accounts
Clinic billings
Less allowance for doubtful
Accounts
Interest
$34,128,510
18,334,960
39,189,918
Total Accounts Receivable
$87,015,702
$
-
(7,500,000)
1,848,288
-
(844,080)
1,858,106
____-____
$
-
$
-
$ 12,679
8,987,694
685,136
-
(148,000)
-
___-____
-
$
-
-
Businesstype
Activities
Total
Receivables
Solid
Waste
Enterprise
Fund
$ 628,541
268,111
-
$34,769,730
27,590,765
39,875,054
(7,648,000)
1,848,288
24,375
47,481
(844,080)
1,929,962
$9,561,884
$ 944,133
$97,521,719
MECKLENBURG COUNTY, NORTH CAROLINA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2004
3.
Property Tax
The County's property tax levy effective for fiscal year 2004, was based on the assessed values listed as of
January 1, 2003, for real property, boats, trailers and income-producing personal property and vehicles as
described below in this Note. Such assessed values were based upon current estimated market values for
personal property and, for real property, estimated market values as of January 1, 2003. The property tax rate
for the 2004 fiscal year was $.7364 per $100 valuation. A revaluation of all real property is required to be
performed at least every eight years, but the County has a policy to revalue property every four years. North
Carolina General Statutes require that each County make annual appropriations to accumulate the monies
estimated to be required for such purpose.
In accordance with State law, the County levies ad valorem taxes on property other than motor vehicles on July
1, the beginning of the fiscal year. The taxes are due September 1, the lien date; however, penalties and
interest do not accrue until the following January 6. These taxes are based on the assessed values as of
January 1, 2003. The County considers all revenues available if they are collected within 60 days after yearend, except for property taxes. Ad valorem property taxes are not accrued as revenue because the amount is
not susceptible to accrual. At June 30, taxes receivable are materially past due and are not considered to be an
available resource to finance the operations of the current year.
Also, as of January 1, 1993, State law altered procedures for the assessment and collection of property taxes
on registered motor vehicles. Effective with this change, the County is responsible for billing and collecting
property taxes on all registered motor vehicles on behalf of all municipalities and special tax districts in the
County. For those motor vehicles registered under the staggered system and for vehicles newly-registered
under the annual system, property taxes are due the first day of the fourth month after the vehicles are
registered. The billed taxes are applicable to the fiscal year in which they become due. Therefore, taxes for
vehicles registered from March 2003 through February 2004 apply to the fiscal year ended June 30, 2004.
Uncollected taxes which were billed during this period are shown as a receivable on these financial statements.
For motor vehicles which are renewed and billed under the annual system, taxes are due on May 1 of each
year and the uncollected taxes are reported as a receivable on the financial statements offset by deferred
revenues because the due date and the date upon which the interest begins to accrue passed prior to June 30.
The taxes for renewal vehicles registered annually that have already been collected as of year-end are also
reflected as deferred revenues at June 30, 2004 because they are intended to finance the County’s operations
during the 2005 fiscal year.
4.
Taxes Collected for Municipalities
The County acts as agent for billing and collecting certain property tax levies for all municipalities in the County.
Such amounts are accounted for in the fiduciary Agency Funds. The County also collects room occupancy
taxes, a portion of which is distributed to the City of Charlotte and Towns of Cornelius, Davidson, Huntersville,
Matthews and Pineville, Food and Beverage taxes, which are distributed to the City of Charlotte, and vehicle
rental taxes which are distributed to the City of Charlotte and Towns of Cornelius and Matthews. These
amounts are accounted for in the two Agency Funds, Municipalities’ Taxes and Food and Beverage Tax,
respectively.
MECKLENBURG COUNTY, NORTH CAROLINA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2004
5.
Capital Assets
Primary Government
Balance
July 1, 2003
Governmental activities:
Capital assets not being depreciated:
Land
Construction in progress
Total capital assets not being depreciated
Capital assets being depreciated:
Land improvements
Buildings and improvements
Vehicles and Heavy Equipment
Furniture, Machinery and Equipment
Total capital assets being depreciated
Less accumulated depreciation:
Land improvements
Buildings and improvements
Vehicles and Heavy Equipment
Furniture, Machinery and Equipment
Total accumulated depreciation
Total capital assets being depreciated, net
Governmental activities capital assets, net
Business-type activities:
Capital assets not being depreciated:
Land
Construction in progress
Total capital assets not being depreciated
Capital assets being depreciated:
Land improvements
Buildings and improvements
Vehicles and Heavy Equipment
Furniture, Machinery and Equipment
Total capital assets being depreciated
Less accumulated depreciation:
Land improvements
Buildings and improvements
Vehicles and Heavy Equipment
Furniture, Machinery and Equipment
Total accumulated depreciation
Total capital assets being depreciated, net
Business-type activities capital assets, net
Additions
$284,939,527
64,812,393
349,751,920
$ 28,747,076
39,875,063
68,622,139
14,398,185
354,423,851
20,063,513
29,332,744
418,218,293
Deletions
(1,029)
(5,143)
___ (6,172)
$313,685,574
104,682,313
418,367,887
1,277,367
2,913,962
2,226,287
783,746
7,201,362
(173,355)
(467,135)
(4,401,731)
(5,042,221)
15,675,552
357,164,458
21,822,665
25,714,759
420,377,434
(8,647,166)
(130,861,145)
(13,917,715)
(20,157,823)
(173,583,849)
244,634,444
(1,062,097)
(11,680,999)
(1,686,265)
( 3,334,319)
(17,763,680)
(10,562,318)
16,607
390,943
3.068,189
3,475,739
(1,566,482)
(9,709,263)
(142,525,537)
(15,213,037)
(20,423,953)
(187,871,790)
232,505,644
$594,386,364
$ 58,059,821
$ (1,572,654)
$ 28,066,849
____48,410
28,115,259
$
6,843
533,712
540,555
$
Balance
June 30, 2004
$
$650,873,531
-____
_____-____
$ 28,073,692
582,122
_ 28,655,814
3,537,008
8,986,315
3,925,000
80,742
16,529,065
637,089
1,216,935
1,249,035
-___
3,103,059
(315,044)
-____
(315,044)
4,174,097
10,203,250
4,858,991
80,742
19,317,080
(530,898)
(2,921,637)
(2,356,130)
(71,338)
(5,880,003)
10,649,062
(282,164)
(505,359)
(413,810)
____(1,017)
(1,202,350)
1,900,709
253,826
-_ __
253,826
(61,218)
(813,062)
(3,426,996)
(2,516,114)
__ ( 72,355)
(6,828,527)
12,488,553
$ 38,764,321
$ 2,441,264
(61,218)
$ 41,144,367
$
MECKLENBURG COUNTY, NORTH CAROLINA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2004
Depreciation expense was charged to the programs of the County as follows:
Governmental activities:
Customer Satisfaction and Management Services
Administrative Services
Financial Services
Land Use and Environmental Services
Community Services
Detention and Court Support Services
Health and Human Services
Business Partners
Total Governmental activities
$
66,752
2,027,016
261,077
1,359,122
1,901,395
8,327,545
1,811,358
2,009,415
17,763,680
Business-type activities:
Solid Waste Enterprise Fund
1,202,350
Total depreciation expense
$18,966,030
Amounts expended and estimated costs to complete the County's construction-in-progress are as follows:
Project
Court Parking Deck
Park and Recreational Facilities
Walton Plaza Roof
Kuralt Center
Criminal Justice Information System
School Facilities
Courthouse
TOTAL
Estimated
Project
Authorization
Expended to
June 30, 2004
Costs to
Complete
$ 24,400,000
35,131,810
641,800
600,000
8,183,655
50,000,000
143,500,000
$ 3,125,412
13,930,874
639,972
330,790
6,695,952
46,522,784
33,436,529
$ 21,274,588
21,200,936
1,828
269,210
1,487,703
3,477,216
110,063,471
$262,457,265
$104,682,313
$157,774,952
Activity in the Library’s Capital assets for the year ended June 30, 2004 is as follows:
Balance
July 1, 2003
Capital assets not being depreciated:
Land
Construction in progress
Total capital assets not being depreciated
Capital assets being depreciated:
Buildings
Furniture and Equipment
Assets under Capital Leases
Total Capital assets being depreciated
Less accumulated depreciation:
Buildings
Furniture and Equipment
Assets under Capital Leases
Total accumulated depreciation
Total capital assets being depreciated, net
Total Capital assets, net
Additions
Balance
June 30, 2004
(3,176,802)
(3,176,802)
$ 11,251,992
_18,648,564
29,900,556
$ 11,251,992
6,050,970
17,302,962
$
15,774,396
15,774,396
34,035,727
4,767,875
3,068,972
41,872,574
3,577,932
-____
3,577,932
(185,662)
(39,054)
_ -_ __
(224,716)
37,427,997
4,728,821
3,068,972
45,225,790
(906,227)
(44,373)
(76,724)
(1,027,324)
(2,550,608)
56,976
39,054
-___
96,030
(128,686)
(9,936,835)
(4,654,226)
(342,315)
(14,393,375)
30,832,415
$ 18,325,004
$(3,305,488)
$ 60,732,971
(8,547,584)
(4,648,907)
(265,590)
(13,462,081)
28,410,493
$ 45,713,455
$
Deletions
MECKLENBURG COUNTY, NORTH CAROLINA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2004
Activity in the Medic Agency’s capital assets for the year ended June 30, 2004 is as follows:
Balance
July 1, 2003
Capital assets being depreciated:
Vehicles
Furniture and Equipment
Patient Equipment
Computer Equipment
Buildings and Improvements
Total Capital assets being depreciated
Less accumulated depreciation:
Vehicles
Furniture and Equipment
Patient Equipment
Computer Equipment
Buildings and Improvements
Total accumulated depreciation
Total Capital assets, net
$ 3,768,282
674,353
1,034,752
1,083,081
3,099,457
9,659,925
Additions
$ 948,873
110,325
59,082
8,993
1,127,273
(2,671,336)
(410,856)
(392,991)
(595,203)
(1,290,086)
(5,306,472)
$ 4,353,453
(40,972)
Balance
June 30, 2004
- ___
-____
$ 4,717,155
784,677
1,034,752
1,142,165
3,108,449
10,787,198
$
(381,221)
(71,814)
(197,976)
(206,389)
(310,845)
(1,168,245)
$
Deletions
____
____-____
$
-
(2,998,557)
(482,669)
(590,967)
(801,594)
(1,600,930)
(6,474,717)
-
$ 4,312,481
Activity in the ABC Board’s capital assets for the year ended June 30, 2004 is as follows:
Capital assets not being depreciated:
Land
Construction in progress
Total Capital assets not being depreciated
Capital assets being depreciated:
Buildings and improvements
Motor vehicles
Furniture, Machinery and Equipment
Total Capital assets being depreciated
Less accumulated depreciation:
Buildings and Improvements
Motor Vehicles
Furniture, Machinery and Equipment
Total accumulated depreciation
Total Capital assets being depreciated, net
Total Capital assets, net
6.
July 1, 2003
Additions
Deletions
$ 4,453,067
177,500
4,630,567
$
$
11,968,778
668,476
2,939,395
15,576,649
(3,013,084)
(485,377)
(1,853,187)
(5,351,648)
10,225,001
$14,855,568
-__
__ -__
266,084
55,826
110,657
432,567
(343,316)
(119,443)
(312,651)
(775,410)
(342,843)
$ 342,843
June 30, 2004
22,095
(177,500)
(199,595)
$ 4,430,972
__ _-____
4,430,972
(60,219)
(45,828)
(546,326)
(652,373)
12,174,643
678,474
2,503,726
15,356,843
43,466
45,828
528,487
617,781
(34,592)
(3,312,934)
(558,992)
(1,637,351)
(5,509,277)
9,847,566
$ (234,187)
$ 14,278,538
Interfund Receivables and Payables
Governmental Funds interfund receivables and payables of $2,651,458 at June 30, 2004 consists of
$2,456,800 due to the General Fund from various nonmajor capital projects funds and $194,658 due to the
General Fund from the Law Enforcement Service District Special Revenue Fund. These balances represent
lending/borrowing arrangements resulting from the timing of expenditures versus the receipt of revenues.
7.
Accounts Payable and Accrued Liabilities
The components of accounts payable and accrued liabilities at June 30, 2004 for the governmental activities
and the business-type activities as reported in the Statement of Net Assets (Deficit) are the following:
MECKLENBURG COUNTY, NORTH CAROLINA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2004
BusinessType
Activities
Total Accounts
Payable and
Accrued
Liabilities
Nonmajor
Funds
$ 8,012,096
Solid
Waste
Enterprise
Fund
$ 773,108
$72,796,710
13,914
241,878
4,304,194
-
4,585,291
1,179,283
-____
2,374,493
$ 9,205,293
$1,014,986
$84,060,688
________________Governmental Activities________________
General payables
Salaries & benefits
payable
Reserve for selfinsurance
Other accrued
liabilities
Total
8.
2003B
Public
Improvement
Capital
Projects
Fund
$ 5,806,006
2003A Public
Improvement
Capital
Projects
Fund
$ 4,527,460
4,048,402
-
-
4,585,291
-
-
1,195,210
-____
-
$63,506,943
$ 5,806,006
General
Fund
$53,678,040
___
$ 4,527,460
Long-Term Debt
General Obligation Bonds
The County issues general obligation bonds to provide for the acquisition and construction of major capital
facilities. General obligation bonds are direct obligations and pledge the full faith and credit of the County. The
County consolidates all debt issues, including schools, into the Public Improvement category. Repayment of
general obligation bonds is funded from general property tax revenues. The general obligation bonded debt
associated with the Solid Waste Enterprise Fund is reported in that fund and will be repaid from revenues
generated by solid waste fees and charges.
General obligation bonds outstanding at June 30, 2004:
Issue Date
Refunding Bonds 1993
Public Improvements 1996 - Series A
Public Improvements 1996 - Series B
Variable Rate Demand Bonds 1996 - Series C
Public Improvements 1998 - Series A
Public Improvements 1998 - Series B
Variable Rate Demand Bonds 1998 - Series C
Public Improvements 2000 - Series A
Public Improvements 2000 - Series B
Variable Rate Demand Bonds 2000 – Series C
Public Improvements 2000 – Series D
Variable Rate Demand Bonds 2000 – Series E
Public Improvements 2001 – Series A
Variable Rate Demand Bonds 2001 - Series B
Refunding Bonds 2001 - Series C
Public Improvements 2001 – Series D
Refunding Bonds 2001 - Series E
Public Improvements 2002 - Series A
Public Improvements 2002 - Series B
Variable Rate Demand Bonds 2002 – Series C
Public Improvements 2003 - Series A
Variable Rate Demand Bonds 2003 – Series B
Refunding Bonds 2003 – Series C
Public Improvements 2004 - Series A
Variable Rate Demand Bonds 2004 – Series B
Refunding Bonds 2004 - Series C
TOTAL
October 1, 1993
March 1, 1996
March 1, 1996
March 1, 1996
February 1, 1998
February 1, 1998
February 1, 1998
February 1, 2000
February 1, 2000
February 1, 2000
October 1, 2000
October 1, 2000
May 1, 2001
May 1, 2001
May 1, 2001
December 1, 2001
December 1, 2001
August 1, 2002
August 1, 2002
August 1, 2002
February 1, 2003
February 1, 2003
February 1, 2003
February 1, 2004
February 1, 2004
April 1, 2004
Due
Average
Serially Interest
Rate %
To
2012
2013
2013
2015
2016
2016
2018
2010
2010
2020
2010
2020
2018
2021
2013
2021
2005
2018
2020
2022
2020
2023
2011
2020
2024
2013
4.6630
4.8623
4.8623
Variable
4.4150
4.4150
Variable
4.9827
4.9827
Variable
4.9303
Variable
4.6868
Variable
4.3714
4.3102
2.4023
3.9499
4.2070
Variable
4.0699
Variable
3.0951
3.4130
Variable
3.0951
Original
Issue
$ 272,295,000
22,000,000
225,895,000
50,000,000
31,000,000
257,050,000
50,000,000
34,000,000
20,000,000
50,000,000
100,000,000
50,000,000
105,000,000
25,000,000
149,455,000
56,000,000
33,595,000
14,400,000
139,000,000
25,000,000
193,000,000
40,000,000
12,160,000
105,000,000
100,000,000
135,470,000
Balance
June 30, 2004
$129,675,000
2,100,000
21,900,000
50,000,000
22,700,000
187,800,000
50,000,000
20,400,000
12,000,000
50,000,000
82,000,000
50,000,000
95,000,000
25,000,000
135,740,000
51,600,000
4,005,000
13,600,000
135,500,000
25,000,000
193,000,000
40,000,000
10,410,000
105,000,000
100,000,000
135,470,000
$2,295,320,000 $1,747,900,000
MECKLENBURG COUNTY, NORTH CAROLINA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2004
The bonds are recorded as follows:
Governmental Activities
Business-type Activities (Solid Waste Enterprise Fund)
$1,738,467,066
9,432,934
TOTAL
$1,747,900,000
In fiscal year 1994, the County refunded several public improvement bonds that have since been called. In the
business-type activities Solid Waste Enterprise Fund, the new debt exceeded the amount of debt retired and
will be amortized over the life of the refunding bonds. For the current year, $100,325 was amortized. The
unamortized amount remaining at June 30, 2004 was $802,588.
In fiscal year 2004, the County issued $135,470,000 General Obligation Refunding Bonds at a net interest cost
of 3.31%. The purpose was to defease $138,000,000 of the principal amount outstanding of the Public
Improvements 1996 Series A and B bonds, and to achieve significant interest savings over the life of the bonds.
The new proceeds were placed with an escrow agent in an irrevocable trust to provide for all future debt
requirements of the refunded debt. The refunded debt is considered defeased and the applicable liabilities have
been removed from the governmental activities. At June 30, 2004 $138,000,000 in outstanding bonds is
considered defeased. The refunding transaction will result in average annual debt service savings of
approximately $477,500 with net present value savings of $4,136,747.
General obligation bonds are due serially and mature during the fiscal years 2010 to 2024 at average interest
rates at date of issuance ranging from 2.40% to 4.98%. The effective rate of interest paid on the average
principal balance of outstanding bonds during the year was 3.82%.
The County has issued $390,000,000 in Variable Rate Demand Bonds. The County has Remarketing and
Standby Purchase Agreements with banks related to these bonds. Under these agreements, the banks will
remarket any bonds for which payment is demanded. If the bonds cannot be remarketed, the banks will
purchase the bonds. The following schedule shows the expiration dates, which can be renewed, fees paid in
fiscal year 2004 pursuant to these agreements, and the interest rate at year-end for these issues. Interest rates
may change pursuant to the terms of the debt agreements based on market conditions and the London
Interbank Offered Rate (LIBOR). There have been no significant changes in rates subsequent to the fiscal
year-end. The interest rates, per the Remarketing Agreements, cannot exceed 12%. The maximum interest
required for these bonds through maturity would be $683,216,000.
Issue
1996C
1998C
2000C
2000E
2001B
2002C
2003B
2004B
Balance
June 30, 2004
Agreement Expiration
$50,000,000
50,000,000
50,000,000
50,000,000
25,000,000
25,000,000
40,000,000
100,000,000
August 1, 2006
February 15, 2006
January 26, 2005
November 1, 2006
May 15, 2007
August 6, 2005
February 20, 2006
December 31, 2015
Fees Paid
Fiscal Year 2004
$104,474
98,570
82,349
101,462
57,490
95,747
80,678
30,682
Interest Rate
June 30, 2004
1.05%
1.06
1.08
1.05
1.05
1.05
1.05
The interest rate on the 2004 variable rate bond issue was fixed for one year when issued at 2%. At February
1, 2005, the rate will revert to a weekly variable rate.
Interest Rate Swap
The County entered into interest rate swap agreements for the Public Improvement Series 2000C, Series
2001B and Series 2002C variable rate bonds effective September 17, 2003 with Merrill Lynch Capital Services,
Bank of America N.A. and Wachovia Bank N.A. The synthetic fixed rate swap effectively changes these
variable rate bonds to the fixed rate of 3.3122%.
The bonds and the related swap agreements mature on February 1, 2022. The swap notional amount of $100
million matches the total of the three related variable rate bond issues. Beginning in February 2011, the
MECKLENBURG COUNTY, NORTH CAROLINA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2004
notional value of the swap and the principal amount of the associated debt decline annually. Under the swap
agreement the County pays the counterparties a fixed interest payment monthly at 3.3122% of the notional
amount and receives a variable monthly interest payment computed at 64.7% of the LIBOR.
Because long-term fixed tax-exempt interest rates have increased, at June 30, 2004 the swap had a current
positive fair value of $642,578. This mark-to-market valuation was established by market quotations obtained
by the counterparties, representing estimates of the amounts that would be paid for replacement transactions.
As of June 30, 2004 the County was exposed to counterparty risk in the amount of the swaps’ fair values. The
swaps counterparties were rated as follows:
Counterparty
Merrill Lynch Capital Services
Wachovia Bank N.A.
Bank of America N.A
Moody’s
S&P
Fitch
Aa3
Aa2
Aa1
A+
A+
AA-
AAAAA-
To mitigate the potential for credit risk, if the counterparties’ credit falls to A1 to A2 by Moody’s, A+ to A by Fitch,
or A+ to A by S&P and their exposure exceeds $5,000,000, the counterparty is obligated to post collateral
consisting of U.S. government securities. Collateral would be posted with a third party custodian.
The swap exposes the County to basis risk should the relationship between LIBOR and the rate the County
pays on its variable rate bonds diverge, changing the synthetic rate on the bonds. The effect of this difference
can be shown by the intended synthetic rate of 3.3122% and the synthetic rate as of June 30, 2004 of 3.49%.
At June 30, 2004, the rate on the County’s bonds was 1.06%, whereas 64.7% of LIBOR was .8799%.
The County or the counterparty may terminate the swap if the other party fails to perform under the terms of the
contract. An additional termination event occurs if the County’s or the counterparties’ ratings fall below Baa1 by
Moody’s or BBB+ by S&P or Fitch. If at the time of termination the swap has a negative fair value, the County
would be liable to the counterparty for a payment equal to the swap’s fair value.
Using rates at June 30, 2004 for the term of the bonds, debt service requirements of the variable rate debt and
net swap payments were as follows:
Fiscal Year
Ending
June 30_
2005
____Variable Rate Bonds_______
Principal
Interest Rate
Swap Net_
_ Total__
-
$ 1,060,000
$ 2,432,280
$ 3,492,280
2006
-
1,060,000
2,432,280
3,492,280
2007
-
1,060,000
2,432,280
3,492,280
2008
-
1,060,000
2,432,280
3,492,280
2009
2009-2014
$
Interest
-
1,060,000
2,432,280
3,492,280
20,000,000
4,912,040
11,271,184
36,183,224
2015-2019
36,000,000
3,560,328
8,169,541
47,729,869
2020-2024
__44,000,000
____807,932
__1,853,883
__46,661,815
$100,000,000
$14,580,300
$33,456,008
$148,036,308
MECKLENBURG COUNTY, NORTH CAROLINA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2004
The County is subject to the Local Government Bond Act of North Carolina, which limits the amount of net
bonded debt (exclusive of funding and refunding bonds, bonds issued for water, gas, or electric power
purposes, and bonds issued for certain other specified purposes) the County may have outstanding to 8% of
the appraised value of property subject to taxation. At June 30, 2004, such statutory limit for the County was
$6,679,010,459 providing a legal debt margin of $4,591,810,459.
The following schedule shows annual requirements to amortize all bonded debt outstanding as of June 30,
2004. Interest on the variable rate bonds has been estimated using the rate in effect at June 30, 2004.
Governmental Activities
Business-type Activities
Year
Principal
Interest
Principal
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2014
2014-2019
2018-2023
Total
$ 101,944,279
111,237,933
111,220,376
114,738,639
119,645,405
576,630,434
383,075,000
219,975,000
$1,738,467,066
$ 68,374,732
61,252,999
56,324,810
51,318,266
45,907,159
145,227,512
46,211,598
6,749,394
$481,366,470
$ 2,330,721
1,822,067
1,269,624
1,256,361
984,595
1,769,566
- ____
$9,432,934
Amortization
$
Interest
100,325
100,325
100,325
100,325
100,325
300,963
__-____
$802,588
$462,875
360,738
282,364
218,433
155,165
215,298
___-____
$1,694,873
As of June 30, 2004, $339,300,000 general obligation bonds were authorized but unissued.
Certificates of Participation
The Mecklenburg County Public Facilities Corporation (the Corporation) sold certificates of participation in the
amount of $18,155,000 on February 12, 2004, to provide funding for a recreation center, school and county
building facilities. Interest on these certificates is variable rate. In addition the Corporation has previously
issued $59,420,000 in variable rate certificates of participation. The Corporation is a non-profit corporation
organized for the purpose of encouraging the modernization of public facilities in the County of Mecklenburg,
through the financing, acquisition, construction and operation and/or lease of real estate and improvements,
facilities and equipment for the use and benefit of the general public. The County has Remarketing and Standby
Purchase Agreements with banks related to these certificates. Under these agreements, the banks will
remarket any certificates for which payment is demanded. If the certificates cannot be remarketed, the banks
will purchase the certificates. The following schedule shows the expiration dates, which can be renewed, fees
paid in fiscal year 2004 pursuant to these agreements, and the interest rate at year-end for these issues.
Interest rates may change pursuant to the terms of the debt agreements based on market conditions and the
LIBOR rate. There have been no significant changes in rates subsequent to the fiscal year-end. The interest
rates, per the Remarketing Agreements, cannot exceed 12%. The maximum interest, which cannot exceed
12%, required for these certificates through maturity would be $60,956,000.
Issue
Balance
June 30, 2004
Agreement Expiration
2000
2001
2002
2004
$ 20,000,000
26,100,000
4,645,000
18,155,000
April 1, 2005
November 30, 2006
September 10, 2005
February 1, 2014
Fees Paid
Fiscal Year 2004
$61,104
41,618
16,692
6,499
Interest Rate
June 30, 2004
1.08%
1.08
1.13
1.06
MECKLENBURG COUNTY, NORTH CAROLINA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2004
Annual principal requirements to maturity are presented in the following table:
Fiscal Year
2004-05
2005-06
2006-07
2007-08
Principal
Fiscal Year
$5,240,000
5,300,000
5,300,000
5,295,000
2008-09
2009-14
2014-19
2019-22
Principal
$ 5,295,000
23,370,000
13,500,000
5,600,000
Changes in Long-Term Liabilities
The following presents the changes in long-term liabilities for the year ended June 30, 2004:
Balance
July 1, 2003
Governmental activities:
General obligation bonds
Bond premium
Capital leases
Compensated absences
Certificates of participation
Unfunded pension liability
Total Governmental
Activities
Business-type activities:
General obligation bonds
Capital leases
Compensated absences
Landfill development and
postclosure care costs
Total Business-type
Activities
Total Government-wide
Additions
$1,624,650,804 $340,470,000
Reductions
Balance
June 30, 2004
Due within
One Year
$(226,653,738)
$1,738,467,066
$101,944,279
1,108,685
11,141,620
18,518,512
54,220,000
1,348,860
21,921,756
1,426,923
15,702,489
18,155,000
284,403
(2,185,581)
(2,006,200)
(14,723,125)
(3,475,000)
______-_____
20,844,860
10,562,343
19,497,876
68,900,000
1,633,263
2,185,581
1,969,627
2,037,293
5,240,000
_____-____
1,710,988,481
397,960,571
(249,043,644)
1,859,905,408
113,376,780
10,986,283
945,202
359,995
259,674
(2,355,937)
(318,960)
(232,761)
8,630,346
626,242
386,908
2,330,721
321,911
23,458
2,432,377
879,485
______-_____
3,311,862
_____-____
14,723,857
1,139,159
(2,907,658)
12,955,358
2,676,090
$1,725,712,338 $399,099,730
$(251,951,302)
$1,872,860,766
$116,052,870
For the governmental funds, the unfunded pension liability and compensated absences are liquidated by the
General fund.
The following presents the changes in long-term liabilities for the year ended June 30, 2004, for the Library:
Balance
July 1, 2003
Additions
Reductions
Balance
June 30, 2004
Due within
One Year
$2,457,437
2,271,496
$ 1,485,080
$
(194,363)
(1,444,896)
$2,263,074
2,311,680
$ 197,552
1,500,000
$4,728,933
$1,485,080
$(1,639,258)
$4,574,754
$1,697,552
Governmental activities:
Capital leases
Compensated absences
Total Government-wide
The $793,242 of long-term liabilities due within one year for the Medic Agency represents compensated
absences at June 30, 2004.
MECKLENBURG COUNTY, NORTH CAROLINA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2004
During the year ended June 30, 2004 the ABC Board paid off the long-term debt of $1,378,304. The debt was
comprised of a single note payable in the initial amount of $1,500,000 acquired in 2002 to purchase land and to
construct buildings.
9.
Leases
The County leases certain equipment, primarily computer equipment and radios, under agreements classified
as capital leases according to provisions of Financial Accounting Standards Board Statement No. 13
"Accounting for Leases". Obligations of these lease agreements are accounted for in the governmental
activities of the government-wide statements and in the business-type activities Enterprise Fund. The net book
value of capitalized leases recorded in the governmental activities, capital assets – furniture, machinery, and
equipment, of the government-wide statements is $8,113,554 and the net book value of those assets recorded
in the Enterprise Fund, capital assets – vehicles and heavy equipment, is $677,883.
In addition, the County leases various types of office equipment under operating leases. Under terms of these
leases, the County's obligation to continue payments is contingent upon continued annual funding by the
Mecklenburg County Board of Commissioners. At June 30, 2004, future minimum lease payments due under
capital leases and operating leases with initial or remaining non-cancelable lease terms in excess of one year
are as follows:
Year Ending June 30,
2005
2006
2007
2008
2009
2010-2011
Less: amount
representing interest
Capital Leases
Governmental
Solid Waste
Activities
Enterprise Fund
$2,423,019
2,445,260
2,255,211
1,569,409
1,529,393
1,843,932
12,066,224
$ 341,285
160,172
156,925
- __
658,382
(1,503,881)
(32,140)
$10,562,343
Operating
Leases
$ 52,055
22,296
7,776
5,523
-___
$87,650
$ 626,242
The Library leases certain branch operations under lease agreements having initial terms of two to 50 years.
These lease agreements include scheduled rent increases which management believes are intended to cover
economic factors related to the underlying property such as property value appreciation and inflation. Certain
lease agreements also provide for renewal option periods of five years. Two of the branch facility leases have
been classified as capital leases. Monthly lease payments of $6,097 and an annual rent payment of $1,500 are
required through September 2010. Beginning October 2010 through September 2045, the base annual lease
payment is $1,501. The second capital lease requires monthly payments, which are changed annually (ranging
from $23,498 to $6,560), through June 2017. Beginning July 2017 through July 2051 the annual lease payment
is $1.
The following is a summary of the Library’s future minimum lease payments under the capital lease together
with the present value of net minimum lease payments, and approximate future minimum rental commitments
under noncancelable operating leases with initial or remaining terms of one year or more as of June 30, 2004:
Year Ending
June 30,
2005
2006
2007
2008
2009
Capital
Leases
$ 328,486
320,650
312,082
304,078
295,678
Operating
Leases
$ 508,209
348,701
239,034
151,519
151,519
MECKLENBURG COUNTY, NORTH CAROLINA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2004
2010-2014
2015-2019
2020-2024
2025-2029
2030-2034
2035-2039
2040-2044
2045-2049
Total Minimum Payments
Less amount
representing interest
Present value of net
minimum capital
lease payments
1,074,604
421,637
7,505
7,505
7,505
7,505
7,505
_
$3,094,740
757,594
757,594
176,778
5
5
5
5
5
$4,186,917
(831,666)
$2,263,074
The Medic Agency entered into a lease agreement on November 18, 1997, with Crescent Resources, Inc. and
Mecklenburg County to lease space for a Central Operations Center, which allowed the Medic Agency to
consolidate its operations into one location. The term of the lease is 10 years and the annual lease obligation is
$340,409. The lease commenced September 2, 1998. The Medic Agency entered into a second lease agreement on October 18, 1999, with Crescent Resources, Inc. to lease space for the billing department. The lease
commenced on December 31, 1999, and will expire August 31, 2008. Rent is based on a per square foot charge
of $4.40 at lease commencement and increasing nine cents per square foot each August 31 subsequent to the
commencement date. Payments related to all lease agreements for the year ended June 30, 2004 totaled
$395,582.
The ABC Board's minimum annual rentals on store properties and equipment leased, with lease terms extending
to October 15, 2021, at June 30, 2004, are summarized as follows:
Year Ending
June 30,
2005
2006
2007
2008
2009
2010-2014
2015-2019
2020-2021
Operating
Leases
$263,576
151,830
81,212
81,212
81,212
406,060
406,060
162,424
$1,633,586
For the year ended June 30, 2004, rent expense for operating leases for the County was $128,282, for the
Library was $739,000, for the Medic Agency was $395,582 and for the ABC Board was $541,642.
10. Transfers
For the year ended June 30, 2004, the General Fund transferred $6,087,021 to the nonmajor Capital Reserve
Special Revenue Fund in accordance with capital activities as approved in the Budget Ordinance.
The
Additional One Half Cent Sales Tax Special Revenue Fund and the County Facilities Special Revenue Fund
transferred $14,515,320 and $2,400,000, respectively, to the General Fund for general operations. The Sheriff
Special Revenue Fund transferred $20,284 to the General Fund as the local match for a grant. The nonmajor
Capital Projects Funds transferred $957,673 to the General Fund for debt service. Governmental fund interfund
transfers are eliminated for the Statement of Net Assets.
11. Pension Plan Obligations
(a)
North Carolina Local Governmental Employees' Retirement System
MECKLENBURG COUNTY, NORTH CAROLINA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2004
Mecklenburg County contributes to the statewide Local Governmental Employees’ Retirement System
(LGERS), a cost-sharing, multiple-employer, defined benefit pension plan administered by the State of North
Carolina. LGERS provides retirement and disability benefits to plan members and beneficiaries. Article 3 of
N.C.G.S. 128 assigns the authority to establish and amend benefit provisions to the North Carolina General
Assembly. The Local Governmental Employees’ Retirement System is included in the Comprehensive Annual
Financial Report (CAFR) for the State of North Carolina. The State’s CAFR includes financial statements and
required supplementary information for LGERS. That report may be obtained by writing to the Office of the
State Controller, 3512 Bush Street, Raleigh, North Carolina 27609, or by calling (919) 981-5454.
Plan members are required to contribute 6% of their annual covered salary. The County is required to
contribute at an actuarially determined rate. The rate for fiscal year 2004 for employees not engaged in law
enforcement and for law enforcement officers is 4.80% and 4.64%, respectively, of annual covered payroll. The
contribution requirements of members and of Mecklenburg County are established and may be amended by the
North Carolina General Assembly. The County’s contributions to LGERS for the years ended June 30, 2004,
2003 and 2002 were $8,143,448, $7,919,603, and $7,793,764, respectively. The contributions made by the
County equaled the required contributions for the year.
The Library, Medic Agency and ABC Board also participate in the North Carolina Local Governmental
Employees' Retirement System described above, which is the same plan in which the County participates. The
Library’s contributions to LGERS for the years ended June 30, 2004, 2003, and 2002 were $653,769, $664,030,
and $651,879, respectively. The rate for fiscal year 2004 for employees is 4.87% of covered payroll. The Medic
Agency’s contributions to LGERS for the year ended June 30, 2004, 2003, and 2002 were $621.828,
$552,612, and $517,760, respectively, and the rate for fiscal year 2004 for employees is 4.84% of covered
payroll. The ABC Board’s contributions to LGERS for the years ended June 30, 2004, 2003, and 2002 were
$244,350, $242,598, and $246,666, respectively. The ABC Board's required contributions for employees not
engaged in law enforcement and for law enforcement officers are 4.91% and 4.78% of covered payroll,
respectively. The contributions made by the Library, Medic Agency and ABC Board equaled the required
contributions for the year.
(b) Law Enforcement Officers’ Special Separation Allowance
The County and the ABC Board administer a public employee retirement system (“Separation Allowance”), a
single-employer, defined benefit pension plan that provides retirement benefits to qualified sworn law
enforcement officers. The Separation Allowance is equal to .85 percent of the monthly equivalent of the base
rate of compensation most recently applicable to the officer for each year of creditable service. The retirement
benefits are not subject to any increases in salary or retirement allowances that may be authorized by the
General Assembly. Article 12D of N.C.G.S. Chapter 143 assigns the authority to establish and amend benefit
provisions to the North Carolina General Assembly.
All full-time County and ABC Board law enforcement officers are covered by the Separation Allowance;
however, benefit eligibility is based on qualified and creditable service for unreduced retirement benefits. At
December 31, 2003, the Separation Allowance’s membership consisted of:
Retirees receiving benefits
Active plan members
Total
County
ABC Board
18
295
313
1
12
13
The County and ABC Board have chosen to fund the Separation Allowance on a pay-as-you-go basis. Pension
expenditures by the County, for which there is no separately issued financial report, of $225,437 for the fiscal
year ended June 30, 2004, were made from the General Fund, which is maintained on a modified accrual basis
of accounting. The financial statements of the ABC Board are prepared using the accrual basis of accounting.
The ABC Board paid benefits of $11,503 for the fiscal years ended June 30, 2004 and 2003. They have chosen
not to have an actuarial study performed because the liability is considered to be immaterial. No funds are set
aside to pay benefits and administration costs. These expenditures are paid as they come due.
MECKLENBURG COUNTY, NORTH CAROLINA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2004
The County and ABC Board are required by Article 12D of N.C.G.S. 143 to provide these retirement benefits.
The County and ABC Board obligations to contribute to this plan are established and may be amended by the
North Carolina General Assembly. There were no contributions made by employees.
The County’s annual required contribution for the current year was determined as part of the December 31,
2003, actuarial valuation using the projected unit credit actuarial cost method. The actuarial assumptions
include (a) 7.25% investment rate of return and (b) projected salary increases ranging from 5.9% to 9.8% per
year, as well as an inflation component of 3.75%. The assumptions did not include postretirement benefit
increases. The actuarial value of assets was market value. The unfunded actuarial accrued liability is being
amortized as a level dollar amount on a closed basis. The remaining amortization period at December 31, 2003,
was 27 years.
The County’s annual pension cost and net pension obligation to the Separation Allowance for the current year
were as follows:
Annual required contribution
Interest on net pension obligation
Adjustment to annual required contribution
Annual pension cost
Contributions made
Increase in net pension obligation
Net pension obligation beginning of year
$ 488,383
97,626
(73,876)
512,133
(225,437)
286,696
1,346,567
Net pension obligation end of year
$1,633,263
Three-Year Trend Information:
Fiscal Year
Ended
2004
2003
2002
Annual Pension
Cost (APC)
$512,133
468,853
436,437
Percentage of APC Contributed
44.02%
45.25
48.86
Net Pension
Obligation
End of Year
$1,633,263
1,346,567
1,089,878
(c) Supplemental Retirement Income Plan
The County and ABC Board contribute to the Supplemental Retirement Income Plan (Plan), a defined
contribution pension plan administered by the Department of State Treasurer and a Board of Trustees. The
Plan provides retirement benefits to law enforcement officers employed by the County and ABC Board. Article 5
of N.C.G.S. Chapter 135 assigns the authority to establish and amend benefit provisions to the North Carolina
General Assembly.
Article 12E of N.C.G.S. Chapter 143 requires the County and ABC Board to contribute each month an amount
equal to 5% of each officer’s salary, and all amounts contributed are vested immediately. In addition, the ABC
Board voluntarily contributes an additional 4% of each officer’s salary. Also, law enforcement officers may make
voluntary contributions to the Plan. For County officers, all contributions were provided by the County and the
total amount for the year ended June 30, 2004 was $691,266. Contributions for the ABC Board for the year
ended June 30, 2004, were $76,278, which consisted of $60,188 from the ABC Board and $16,090 from the law
enforcement officers’ voluntary contributions. The ABC Board’s required plus voluntary contributions and the
officers’ voluntary contributions represented 9.0% and 2.4%, respectively, of covered payroll for the year ended
June 30, 2004.
MECKLENBURG COUNTY, NORTH CAROLINA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2004
For non-law enforcement full-time employees, the ABC Board voluntarily contributes each month an amount
equal to 6% of each employee’s salary. Non-law enforcement employees, also, may make voluntary
contributions to the plan. The ABC Board’s contributions were calculated using a covered payroll amount of
$4,263,373 for June 30, 2004 and $4,464,117 for June 30, 2003. Total contributions for the years ended June
30, 2004 and 2003 were $376,107 and $495,164, respectively, which consisted of $261,978 for 2004 and
$365,591 for 2003 from the ABC Board and $114,169 for 2004 and $129,573 for 2003 from the non-law
enforcement employee’s voluntary contributions. The ABC Board’s voluntary contributions and the non-law
enforcement employee’s voluntary contributions represented 6.14% and 2.68%, respectively, for 2004 and
8.2% and 2.9%, respectively, for 2003.
(d) Register of Deeds Supplemental Pension Fund
The County also contributes to the Registers of Deeds’ Supplemental Pension Fund (Fund), a noncontributory,
defined contribution plan administered by the North Carolina Department of State Treasurer. The Fund
provides supplemental pension benefits to any county register of deeds who is retired under the Local
Governmental Employees’ Retirement System or an equivalent locally sponsored plan. Article 3 of N.C.G.S.
Chapter 161 assigns the authority to establish and amend benefit provisions to the North Carolina General
Assembly.
On a monthly basis, the County remits to the Department of State Treasurer an amount equal to 4.5% of the
monthly receipts collected pursuant to Article 1 of North Carolina General Statute 161, primarily marriage
license and general fees. Immediately following January 1 of each year, the Department of State Treasurer
divides 93% of the amount in the Fund at the end of the preceding calendar year into equal shares to be
disbursed as monthly benefits. The remaining 7% of the Fund’s assets may be used by the State Treasurer in
administering the Fund. For the fiscal year ended June 30, 2004, the County’s required and actual
contributions were $296,627.
12. Deferred Compensation Plan
The County, Library and Medic Agency offer their employees a deferred compensation plan created in
accordance with Internal Revenue Code Section 457. The plan, available to all County, Library and Medic
Agency employees, permits them to defer a portion of their salaries to future years. The deferred compensation
is not available to employees until termination, retirement, death or unforeseeable emergency. The County,
Library and Medic Agency have complied with changes in the laws which govern deferred compensation plans,
requiring all assets of the plan to be held in trust for the exclusive benefit of the participants and their
beneficiaries.
13. Post-Employment Benefits
The County, Library and Medic Agency pay the full cost of the health care insurance premiums for employees
retiring with twenty or more years of service. Employees retiring with 10 through 19 years of service receive
50% of the costs of their health care insurance premium. For the fiscal year ended June 30, 2004, the County's
expense for this benefit was $1,765,538 and the number of retirees taking advantage of this benefit was 660.
The cost of benefits for the Library recognized as an expenditure for the fiscal year ended June 30, 2004 was
$102,903 for the 32 retirees covered. Medic Agency’s expenditure for this benefit was $32,241 for the eleven
retirees covered. The County and Library are under no statutory requirement to provide this benefit.
Consequently, there is no unfunded liability to the County or the Library for this benefit.
Under the Consolidated Omnibus Budget and Reconciliation Act of 1985 (COBRA), the County and Medic
Agency allow terminated employees to continue their enrollment in their health care insurance program for up to
18 months following termination. Continuation of coverage by the terminated employee is optional for the
employee who has up to 60 days following termination to decide. There is no cost to the County or Medic
Agency, and the terminated employee must pay the full premium amount plus a two percent administrative fee.
The County and the ABC Board have elected to provide death benefits to employees through the Death Trust
Plan for members of the Local Governmental Employees' Retirement System (Death Trust Plan), a multipleemployer, State-administered, cost-sharing plan funded on a one-year term cost basis. Employees who die in
active service after one year of contributing membership in the System, or who die within 180 days after
retirement or termination of service and have at least one year of contributing membership service in the
MECKLENBURG COUNTY, NORTH CAROLINA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2004
System at the time of death are eligible for death benefits. Lump sum death benefit payments to beneficiaries
are equal to the employee's 12 highest month’s salary in a row during the 24 months prior to death, but the
benefit may not exceed $20,000. All death benefit payments are made from the Death Trust Plan. Neither the
County nor the ABC Board has liability beyond the payment of monthly contributions. Contributions are
determined as a percentage of monthly payroll, based upon rates established annually by the State. Separate
rates are set for employees not engaged in law enforcement and for law enforcement officers. Because the
benefit payments are made by the Death Trust Plan and not by the County, the County does not determine the
number of eligible participants. For the fiscal year ended June 30, 2004, the County made contributions to the
State for death benefits of $128,618. The County's required contributions for covered employees represented
.14% of covered payroll for law enforcement officers and .08% of covered payroll for employees not engaged in
law enforcement. For the year ended June 30, 2004 and 2003, the ABC Board made contributions to the State
for death benefits of $5,422 and $5,767,respectively. The ABC Board’s required contributions for employees
not engaged in law enforcement and for law enforcement officers represented 0.11% of covered payroll.
The ABC Board pays a portion of health care costs for employees retiring with 5-19 years of service, and pays
the full cost for those with 20 or more years of service. The benefit continues until death, although their ABC
Board coverage automatically decreases to secondary coverage at the age of 65. The ABC Board has chosen
to pay this benefit on a pay-as-you-go basis. The cost for the year ended June 30 2004 and 2003 was $138,25
and 86,680, respectively.
14. Risk Management
The County's Risk Management Program is a self-funded, risk-financing program administered by the City of
Charlotte's Risk Management Division of the City Finance Department, as trustee for the County. As of June 30,
2004, the program covered the following areas of risk: Commercial Automobile Liability, Fidelity Bonds, Inland
Marine, Commercial General Liability, Public Official Liability, Police Professional Liability, Medical Professional
Liability, Property, and Workers' Compensation. The County will finance its own loss exposures up to the first
$1,500,000 per occurrence per year with a separate reserve held in trust for the County and current
appropriations in the County budget except for property exposures and Workers' Compensation exposures as
described below. Amounts in this reserve are specifically designated by entity. The Risk Management Division
accrues for claims incurred but not reported based on prior historical data. This accrual reduces cash available
in the separate trust. Property exposures over $100,000 and Workers' Compensation exposures over $400,000
are insured. Police Professional Liability exposures over $1,000,000 are insured up to $4,000,000 and public
official liability exposures over $250,000 are insured up to $4,750,000. The County has purchased excess
insurance to cover automobile and general liability exposures in amounts up to $20,000,000 above the trust
coverage amount. There have been no significant reductions in insurance coverage from coverage levels in the
prior year and settled claims have not exceeded coverage in any of the past three fiscal years.
A summary of amounts relating to self-insurance in the General Fund is as follows:
2004
2003
Accounts payable and accrued liabilities - beginning of fiscal year
Additions
Payments
$11,654,471
1,723,588
(3,599,865)
$12,310,529
2,420,181
(3,076,239)
Accounts payable and accrued liabilities - end of fiscal year
$ 9,778,194
$11,654,471
The Library acquires its risk management services through the City of Charlotte's Risk Management Division.
The Library has commercial general liability of $1 million per occurrence, workers' compensation employer's
liability coverage of $500,000 and public officers' coverage of $1 million per loss. There have been no
significant reductions in insurance coverage from coverage levels in the prior year and settled claims have not
exceeded coverage in any of the past three fiscal years.
The insurance coverage for the Medic Agency is provided through commercial carriers and the County. A
commercial policy covers property, general liability, crime, portable equipment and management liability. The
limit for the commercial property policy is $5,004,000, with no deductible. The coverage for general liability and
automobile insurance is $1 million per occurrence with no deductible. The criminal activities policy is $250,000,
and the management liability coverage is $3 million. The commercial excess liability policy includes a limit of $5
MECKLENBURG COUNTY, NORTH CAROLINA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2004
million for each occurrence. Workers’ compensation is provided through the County’s policy and workers’
compensation exposures over $400,000 are insured. There have been no significant reductions in coverage
over the past three years.
The ABC Board is exposed to various risks of loss related to torts; theft of, damage to, and destruction of
assets; errors and omissions; injuries to employees; and natural disasters. The ABC Board has property,
general liability, auto liability, workers’ compensation, and employee health coverage. The ABC Board also has
liquor legal liability. There have been no significant reductions in insurance coverage from coverage levels in
the prior year and settled claims have not exceeded coverage in any of the past three fiscal years. The ABC
Board has a self-funded medical program for its employees. This program will pay a maximum of $55,000 per
employee per year with any amounts above this maximum covered by a stop loss insurance policy.
15.
Closure and Postclosure Care Costs – U.S.521 Landfill
State and federal laws require the County to place a final cover on its U.S.521 Landfill Facility when it stops
accepting waste and to perform certain maintenance and monitoring functions at the site for 25 years after
closure. Although closure and postclosure care costs will only be paid near or after the date the landfill stops
accepting waste, the County reports a portion of these costs as an operating expense each fiscal year based
on the landfill capacity used as of the balance sheet date. The accrued landfill development and postclosure
care costs totals $3,311,862 and has two components. The cumulative amount reported, based on the use of
32.3% of the total estimated capacity of the landfill, for closure and postclosure care costs is $3,111,421. The
County will recognize the remaining estimated cost of closure and postclosure care of $9.6 million as the
remaining estimated capacity is filled. This amount is based on the current costs to perform closure and
postclosure care in fiscal year 2004. The County expects to close the U.S.521 landfill in 2025. Actual costs may
be higher due to inflation, changes in technology or changes in regulations.
The County has met the requirements of a local government financial test that is one option under state and
federal laws and regulations that help determine if a unit is financially able to meet closure and postclosure care
requirements. However, the County has also elected to establish a reserve fund to accumulate the resources
for the payment of future use development costs. The cumulative amount reported in the future use reserve at
June 30, 2004 is $200,441. The County will recognize the remaining estimated cost of future use development
of $1,712,850 as the remaining capacity is filled. These funds are held in investments with a cost of $200,441
(market value, $200,441) at year-end. The County expects that future inflation costs will be paid from the
interest earnings on these annual contributions. However, if interest earnings are inadequate or additional
postclosure care requirements are determined, these costs may need to be covered by charges to future landfill
users.
16.
Commitments and Contingencies
(a)
The County participates in a number of Federal and State of North Carolina grant programs, principally
Social Services Administration, Temporary Assistance to Needy Families, Mental Health Area Matching
Funds, and Medical Assistance programs. For the fiscal year ended June 30, 2004, these programs were
audited in accordance with the Single Audit Amendment of 1996 and the State Single Audit Act, N.C.G.S.
159-34, which report is issued separately. Any expenditures which may be disallowed by the granting
agencies cannot be determined at this time, although the County expects such amounts, if any, to be
immaterial.
(b)
Unexpended funds of $105,327,040 at June 30, 2004, are committed for various projects in accordance
with related Capital Projects Ordinances. These funds are included in Restricted Net Assets and are
included in designated fund balance of the appropriate capital projects funds.
(c)
The County is involved in various legal actions in the normal course of its business. In addition, the
County has charges pending with the Equal Employment Opportunity Commission. The charges initiated
by individuals alleging discriminatory hiring, promotion or termination practices, are not in litigation and
there have been no class action threats. Although the outcome of the above claims and the ultimate
amount of compensation or penalties which might be awarded are not presently determinable, in the
opinion of County management and the County Attorney, the results of the claims and resolution of legal
actions will not have a materially adverse impact on the financial position of the County.
MECKLENBURG COUNTY, NORTH CAROLINA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2004
17.
Jointly Governed Organization
The County, in conjunction with seven other counties and 50 municipalities, established the Centralina Council
of Governments (COG)(Region F). The participating governments established COG to coordinate funding
received from various federal and state agencies. Each participating government appoints one member to
COG's 58-member governing board. The County paid membership fees of $146,045 to COG during fiscal year
2004.
18.
Joint Ventures
The County, along with the State of North Carolina, participates in a joint venture to operate Central Piedmont
Community College (CPCC). The County, State of North Carolina and the Charlotte-Mecklenburg Board of
Education make four appointments each to the 12-member board of trustees. CPCC is included as a
component unit of the State. The County has the basic responsibility for providing funding for the facilities of
CPCC and also provides some financial support for operations. In addition to providing annual appropriations
for facilities, the County periodically issues general obligation bonds to provide financing for new and
restructured facilities. The County contributed $15,923,225 for operations and $24,606,617 for capital purposes
during fiscal year 2004, and made debt service payments of $9,352,541 in fiscal year 2004 on general
obligation bonds issued for CPCC. The participating governments do not have any equity interest in the joint
venture; therefore, no equity interest is reflected in the County's financial statements. Complete financial
statements for CPCC may be obtained from the following address:
Central Piedmont Community College
P.O. Box 35009
Charlotte, NC 28235
The Charlotte-Mecklenburg Public Broadcasting Authority (CMPBA) was established in 1981 by an interlocal
agreement between the Charlotte-Mecklenburg Schools and the County. The CMPBA holds the FCC license to
operating WTVI, a non-commercial TV station. The CMPBA exercises control over station operations and
programming. The County appoints ten of the 18 members of the CMPBA Board of Directors, but the County
has no authority to dictate ownership or management of the station. The County owns the land and building in
which WTVI is housed, but management and maintenance of the building is the responsibility of the CMPBA.
The County is paying the debt service on $10 million of debt issued for CMPBA to fund the purchase of
digital/HDTV equipment for WTVI. The County has entered into an interlocal agreement with the CMPBA to
provide an annual operating grant to WTVI, although no specific funding level is guaranteed. For the yearended June 30, 2004, the County provided $2,379,696 to WTVI. The County does not provide the majority of
funding to WTVI. The County can also enter into an annual Service Contract with WTVI whereby WTVI
provides production and/or programming airtime to the County in support of the County’s public awareness
goals in return for a specific level of funding to cover the cost of the productions. Complete financial statements
of the CMPBA can be obtained from the following address:
Charlotte-Mecklenburg Public Broadcasting Authority
3232 Commonwealth Avenue
Charlotte, NC 28205
The County, in conjunction with Catawba, Iredell and Lincoln Counties participates in a joint venture to operate
the Lake Norman Marine Commission (the Commission). Each participating government appoints one board
member, except Catawba County which appoints two members. The Commission was established to make joint
regulations for the safe operation of vessels and for safe recreational use of the water. Each County is obligated
to contribute an equal amount appropriate to support the activities of the Commission. The County provided
$17,587 to the Commission in fiscal year 2004. None of the participating governments has an equity interest in
the Commission, so no equity interest has been reflected in the financial statements at June 30, 2004.
Complete financial statements for the Commission may be obtained from the following address:
Lake Norman Marine Commission
P.O. Box 35008
Charlotte, NC 28235
MECKLENBURG COUNTY, NORTH CAROLINA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2004
In addition, the County, in conjunction with Gaston County and York County, South Carolina, participates in a
joint venture to operate the Lake Wylie Marine Commission (the Commission). The County and York County
each appoint two board members, and Gaston County appoints three members. The Commission was
established to make joint regulations for preserving and protecting property and wildlife and promoting public
safety. Each County is obligated to contribute an equal amount appropriate to support the activities of the
Commission. The County provided $22,164 to the Commission in fiscal year 2004. None of the participating
governments has an equity interest in the Commission, so no equity interest has been reflected in the financial
statements at June 30, 2004. Complete financial statements for the Commission may be obtained from the
following address:
Lake Wylie Marine Commission
P.O. Box 35008
Charlotte, NC 28235
In addition, the County, in conjunction with Gaston and Lincoln Counties, participates in a joint venture to
operate the Mountain Island Lake Marine Commission (the Commission). The County appoints three board
members, Gaston County appoints three members and Lincoln County appoints one member. The Commission
was established to make joint regulations for preserving and protecting property and wildlife and promoting
public safety. Each County is obligated to contribute an amount based on its shoreline lying within each county
to support the activities of the Commission. The County provided $18,706 to the Commission in fiscal year
2004. None of the participating governments has an equity interest in the Commission, so no equity interest has
been reflected in the financial statements at June 30, 2004. Complete financial statements for the Commission
may be obtained from the following address:
Mountain Island Marine Commission
P.O. Box 35008
Charlotte, NC 28235
19.
Conduit Debt Obligation
In February 1996, the County issued $22,700,000 Variable Rate Lease Revenue Bonds on behalf of the Young
Men’s Christian Association (YMCA) of Greater Charlotte for the acquisition, construction, improvement and
equipping of two new recreational facilities and the renovation and improvement of certain other existing
facilities. These bonds are secured by pledges to the YMCA’s 1995 capital campaign drive as well as a letter of
credit. Neither the County, the State, nor any political subdivision thereof is obligated in any manner for the
repayment of these bonds. Accordingly, the outstanding bonds in the amount of $13,600,000 at June 30, 2004
are not reported as liabilities in the accompanying financial statements.
In December 2001, the County issued $16,480,000 Multifamily Housing Revenue Bonds on behalf of Sycamore
Green, LLC for the acquisition, construction and equipping of a low and moderate income multifamily rental
housing development. These bonds are secured by rents from the property and a letter of credit. Neither the
County, the State, nor any political subdivision thereof is obligated in any manner for the repayment of these
bonds. Accordingly, the outstanding bonds in the amount of $16,480,000 at June 30, 2004 are not reported as
liabilities in the accompanying financial statements.
In May 2003, the County issued $9,390,000 Multifamily Housing Revenue Bonds on behalf of LR Charlotte
Limited Partnership for the acquisition, rehabilitation and equipping of a low and moderate income multifamily
rental housing development. These bonds are secured by rents from the property and a letter of credit. Neither
the County, the State, nor any political subdivision thereof is obligated in any manner for the repayment of these
bonds. Accordingly, the outstanding bonds in the amount of $9,375,000 at June 30, 2004 are not reported as
liabilities in the accompanying financial statements.
In September 2003, the County issued $4,640,000 Multifamily Housing Revenue Bonds on behalf of
BARRINGTON OAKS, LLC for the acquisition, rehabilitation and equipping of a low and moderate income
multifamily rental housing development. These bonds are secured by rents from the property and a letter of
credit. Neither the County, the State, nor any political subdivision thereof is obligated in any manner for the
repayment of these bonds. Accordingly, the outstanding bonds in the amount of $4,640,000 at June 30, 2004
are not reported as liabilities in the accompanying financial statements.
MECKLENBURG COUNTY, NORTH CAROLINA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2004
20.
Related Organization
The Mecklenburg County Industrial Facilities and Pollution Control Financing Authority (the Authority) was
created in 1976. The seven-member board is appointed by the Board of County Commissioners. The purpose
of the Authority is to assist corporations in financing industrial and manufacturing facilities for the purpose of
providing employment or increasing below-average manufacturing wages. Any financing that occurs is an
obligation of the corporation, not an obligation of either the County or this Authority. Companies pay application
fees which provide operating funds for the Authority.
21.
Subsequent Event
The County entered into forward starting interest rate swap agreements on a portion of the general obligation
bonds to be issued in the first quarter of 2005. As a result of this transaction, the County will pay interest at the
fixed rate of 3.41336% to the counterparties to the swap. In return, the counterparties will pay interest to the
County based on 67% of one-month LIBOR. The notional amounts of this transaction total $100 million. The
effective date of this transaction is February 9, 2005 and the termination date is February 1, 2026.
Required
Supplementary
Information
Mecklenburg County, North Carolina
Additional required data regarding the Law Enforcement Special Separation
Allowance.
B-1
MECKLENBURG COUNTY, NORTH CAROLINA
SEPARATION ALLOWANCE FOR LAW ENFORCEMENT OFFICERS
REQUIRED SUPPLEMENTARY INFORMATION
ANALYSIS OF FUNDING PROGRESS
LAST TEN FISCAL YEARS
UNAUDITED
Actuarial
Accrued
UAAL as a
Actuarial
Liability (AAL)
Unfunded
Year
Value of
Projected Unit
AAL
Funded
Covered
Ended
Assets
Credit
(UAAL)
Ratio
Payroll
Payroll
Dec. 31,
(a)
(b)
(b-a)
(a/b)
(c)
((b-a)/c)
-
$ 4,488,172
$ 4,488,172
2002
-
4,218,231
4,218,231
0.00
13,353,602
31.59
2001
-
3,867,434
3,867,434
0.00
12,611,197
30.67
2000
-
3,652,320
3,652,320
0.00
12,211,385
29.91
1999
-
2,290,374
2,290,374
0.00
11,818,111
19.38
1998
-
2,086,864
2,086,864
0.00
12,605,093
16.56
1997
-
1,944,361
1,944,361
0.00
11,055,301
17.59
1996
-
1,700,570
1,700,570
0.00
9,726,420
17.48
1995
-
1,688,629
1,688,629
0.00
10,234,174
16.50
1994
-
1,424,566
1,424,566
0.00
11,446,271
12.45
2003
$
0.00 %
$ 13,446,175
% of Covered
33.38 %
B-2
MECKLENBURG COUNTY, NORTH CAROLINA
SEPARATION ALLOWANCE FOR LAW ENFORCEMENT OFFICERS
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF EMPLOYER CONTRIBUTIONS
UNAUDITED
Fiscal Year
Ended
June 30,
Annual
Required
Contribution
Percentage
Contributed
2004
$ 488,383
46.16%
2003
448,383
46.81
2002
419,239
50.86
2001
340,724
61.16
2000
318,467
69.30
1999
284,944
75.59
1998
247,032
83.35
1997
247,667
78.69
Notes to the Required Schedules:
The information presented in the required supplementary schedules was determined as
part of the actuarial valuations at the dates indicated. Additional information as of the
latest stactuarial valuation follows:
Valuation date
Actuarial cost method
Amortization method
Remaining amortization period
Asset valuation method
Actuarial assumptions:
Investment rate of return*
Projected salary increases*
Cost-of-living adjustments
* Includes inflation at 3.75%.
12/31/2003
Projected unit credit
Level percent of pay closed
27 years
Market value
7.25%
5.9% - 9.8%
None
Combining &
Individual Fund
Statements &
Schedules
Mecklenburg County, North Carolina
Provides detailed statements and schedules for the nonmajor Special Revenue
and Capital Projects Funds and the Agency Fiduciary Funds, as well as budget to
actual statements for the Special Revenue Funds having annual budgets, the two
major Capital Projects Funds, and the Enterprise Fund.
NONMAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
Special Revenue Funds account for proceeds of revenue sources that are restricted to expenditures for specific
purposes. These funds are established under the provisions of the North Carolina General Statutes:
CAPITAL RESERVE: Accounts for expenditures from current appropriations and certain park entrance fees for
capital outlay and improvements.
STORM WATER MANAGEMENT: Accounts for fees and expenditures designated for flood control, drainage, and
storm water management.
LAW ENFORCEMENT SERVICE DISTRICT: Accounts for the ad valorem taxes for the law enforcement service
district which are levied in the unincorporated areas of the County.
TRANSIT ONE-HALF CENT SALES TAX: Accounts for revenue from a one-half cent sales tax levied to fund
transit projects which are part of the 2025 Integrated Transit/Land Use Plan for Charlotte-Mecklenburg.
ADDITIONAL ONE-HALF CENT SALES TAX: Accounts for sales tax revenue designated for specific purposes.
SCRAP TIRE DISPOSAL: Accounts for funds designated for the disposal of scrap tires.
DISCARDED WHITE GOODS: Accounts for funds designated for the management of discarded white goods.
SHERIFF: Accounts for funds received from concealed weapons permits and commissary revenues which are
designated for use by the Sheriff.
REGISTER OF DEEDS: Accounts for the 10% of collected fees required which are required by law to be
expended for computer and imaging technology for the Register of Deeds office.
COUNTY FACILITIES: Accounts for revenues from the disposal of certain assets to be used for specific future
projects.
FREEDOM MALL OPERATIONS AND MAINTENANCE: Accounts for rents and maintenance operations for
Freedom Mall, a County owned facility with some outside tenants.
911 PUBLIC SAFETY EMERGENCY TELEPHONE SERVICE: Accounts for the County’s share of the monthly
911surcharge imposed by the City of Charlotte to be used for the lease, purchase or maintenance of
emergency telephone equipment, including necessary computer hardware, software and database provisions.
CAPITAL PROJECTS FUNDS
Capital Projects Funds account for proceeds of bond issues and all other resources used for the purpose of
constructing, reconstructing or acquiring permanent or semi-permanent capital improvements. These funds are used
to provide a formal mechanism to ensure that designated revenues are applied only for the purposes intended.
MANAGEMENT SERVICES
COUNTY BUILDINGS: Accounts for construction of and renovations to various County buildings.
LAND: Accounts for acquisition of land for County purposes.
LAND USE AND ENVIRONMENTAL SERVICES
COMMUNITY DEVELOPMENT: Accounts for Community Development funds used for improvements to specific
neighborhoods and water and sewer improvements in areas which currently are not part of the systems.
FLOOD CONTROL: Accounts for flood control, storm water and detention projects.
CLEAN WATER MANAGEMENT: Accounts for funds used for watershed pollution control.
HISTORIC PRESERVATION: Accounts for acquisition and renovation of various historic facilities.
COMMUNITY SERVICES
PARK AND RECREATIONAL FACILITIES: Accounts for park projects including greenways, neighborhood
parks, district parks, purchase of land, park construction, restoration and improvements to various parks.
LIBRARY FACILITIES: Accounts for construction, installation of furnishings and equipment and the acquisition
of land for library facilities.
DETENTION AND COURT SUPPORT SERVICES
JAIL/DETENTION FACILITIES: Accounts for construction of jail and detention facilities.
BUSINESS PARTNERS
COMMUNITY COLLEGE FACILITIES: Accounts for construction of Central Piedmont Community College
facilities.
SCHOOL FACILITIES: Accounts for construction and renovation of school facilities, including acquisition and
installation of furnishings and equipment and the acquisition of land.
C-1
MECKLENBURG COUNTY, NORTH CAROLINA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2004
Special
Total Nonmajor
Revenue
Capital Projects
Governmental
Funds
Funds
Funds
$ 19,948,321
$ 103,182,751
ASSETS
Cash and investments
Accrued interest receivable
24,375
Accounts receivable
8,140,697
Taxes receivable
Less allowance for uncollectible taxes
TOTAL ASSETS
24,375
859,676
685,136
9,000,373
-
(148,000)
Advances to other governmental agencies
$ 123,131,072
-
685,136
-
(148,000)
133,809
1,862,526
1,996,335
$ 28,784,338
$ 105,904,953
$ 134,689,291
$
$
$
LIABILITIES AND FUND BALANCES
Liabilities
Accounts payable and other accrued liabilities
7,323,550
1,881,743
9,205,293
Due to other funds
194,658
2,456,800
Deferred revenue
584,182
1,124,193
1,708,375
8,102,390
5,462,736
13,565,126
Reserved for encumbrances
5,563,120
41,684,049
47,247,169
Reserved by state statute
8,702,310
2,722,202
11,424,512
85,521,065
93,677,234
Total Liabilities
2,651,458
Fund Balances
Unreserved:
Designated for capital projects
8,156,169
Designated for land use and environmental services
6,218,228
-
Designated for detention and court support services
240,859
-
240,859
1,286,503
-
1,286,503
Designated for business partners
Undesignated
Total Fund Balances
TOTAL LIABILITIES AND FUND BALANCES
6,218,228
(9,485,241)
(29,485,099)
(38,970,340)
20,681,948
100,442,217
121,124,165
$ 28,784,338
$ 105,904,953
$ 134,689,291
C-2
MECKLENBURG COUNTY, NORTH CAROLINA
COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2004
Special
Total Nonmajor
Revenue
Capital Projects
Governmental
Funds
Funds
Funds
REVENUES
Law Enforcement Service District taxes
General property taxes
Transit one-half cent sales tax
Intergovernmental
Charges for services
Interest earned on investments
Other
Total Revenues
$ 12,948,398
$
-
$
12,948,398
1,371,002
-
1,371,002
29,235,677
-
29,235,677
5,381,071
6,782,862
10,065,864
-
177,239
-
12,163,933
10,065,864
177,239
1,123,522
348,239
1,471,761
60,302,773
7,131,101
67,433,874
EXPENDITURES
Land Use and Environmental Services
Detention and Court Support Services
Business Partners
9,715,512
-
9,715,512
284,002
-
284,002
48,992,440
-
48,992,440
1,362,418
-
1,362,418
595,706
-
Debt Service
Principal
Interest
Capital Outlay
Total Expenditures
REVENUES UNDER EXPENDITURES
595,706
9,531,805
157,020,180
166,551,985
70,481,883
157,020,180
227,502,063
(10,179,110)
(149,889,079)
(160,068,189)
18,155,000
18,155,000
OTHER FINANCING SOURCES (USES)
Bonds and other debt issued
Capitalized lease
Transfers from other funds
Transfers to other funds
Total Other Financing Sources (Uses)
NET CHANGE IN FUND BALANCE
FUND BALANCES - BEGINNING OF YEAR
FUND BALANCES - END OF YEAR
76,923
-
76,923
6,087,021
-
6,087,021
(16,935,604)
(957,674)
(17,893,278)
(10,771,660)
17,197,326
6,425,666
(20,950,770)
(132,691,753)
41,632,718
233,133,970
274,766,688
$ 20,681,948
$ 100,442,217
$ 121,124,165
(153,642,523)
C-3
MECKLENBURG COUNTY, NORTH CAROLINA
COMBINING BALANCE SHEET
SPECIAL REVENUE FUNDS
JUNE 30, 2004
Storm
Law
Transit
Additional
Scrap
Discarded
Capital
Water
Enforcement
One-Half Cent
One-half Cent
Tire
White
Reserve
Management
Service District
Sales Tax
Sales Tax
Disposal
Goods
$
$
Freedom Mall
Sheriff
911 Public Safety
Total
Register
County
Operations and
Emergency
Special
of Deeds
Facilities
Maintenance
Telephone
Revenue Funds
ASSETS
Cash and investments
$ 10,650,505
Accrued interest receivable
-
Accounts receivable
Less allowance for uncollectible taxes
Advance to other agencies
TOTAL ASSETS
22,717
12,679
Taxes receivable
5,705,857
406,581
$
1,640
2,849,024
-
$
-
-
-
$
39,309
-
5,278,994
$
18
234,931
$
298,636
-
-
-
-
-
-
-
-
685,136
-
-
-
-
-
-
-
(148,000)
-
-
-
-
-
-
-
-
$ 10,663,184
$
8,577,598
$
$
$
490,616
$
-
-
-
-
$
1,145,999
$
-
-
244,624
$
$
5,278,994
$
-
$
39,327
$
234,931
$
298,636
$
1,145,999
$
25,000
$
5,278,994
$
-
$
34,929
$
2,906
$
13,502
$
25,913
$
$
1,309,477
$
19,948,321
-
-
24,375
-
-
-
8,140,697
-
-
-
685,136
-
-
-
(148,000)
-
945,357
(87,598)
-
244,624
133,809
$
-
133,809
46,211
$
1,309,477
$
28,784,338
-
$
22,974
$
7,323,550
LIABILITIES AND FUND BALANCES
Liabilities
Accounts payable and accrued liabilities
1,428,716
Due to other funds
-
-
194,658
-
-
-
-
-
Deferred revenue - taxes
-
-
537,136
-
-
-
-
-
Deferred revenue - other
Total Liabilities
835
-
1,429,551
490,616
1,309,409
4,011,374
12,679
2,871,741
-
-
756,794
5,278,994
-
-
$
-
-
-
194,658
-
-
-
537,136
-
-
-
-
-
-
46,211
-
34,929
2,906
13,502
25,913
-
46,211
22,974
8,102,390
-
-
55,222
44,275
142,840
-
-
-
5,563,120
-
-
-
-
-
-
8,702,310
-
-
-
-
-
8,156,169
-
-
-
6,218,228
-
-
-
-
-
-
47,046
Fund Balances
Reserved for encumbrances
Reserved by State Statute
-
-
538,878
5,278,994
-
18
Unreserved:
Designated for capital projects
7,911,545
-
-
-
-
-
-
-
-
4,380
244,624
Designated for land use and
environmental services
-
5,059,799
176,803
-
977,246
Designated for detention and
court support services
Designated for business partners
Undesignated
Total Fund Balances
-
-
-
-
-
-
-
-
-
-
-
-
-
-
9,233,633
(3,855,932)
(350,315)
8,086,982
188,563
(5,278,994)
-
-
-
-
4,398
240,859
-
-
-
232,025
-
285,134
-
1,120,086
-
-
244,624
240,859
1,286,503
1,286,503
-
-
(9,485,241)
1,286,503
20,681,948
TOTAL LIABILITIES AND
FUND BALANCES
$ 10,663,184
$
8,577,598
$
945,357
$
5,278,994
$
-
$
39,327
$
234,931
$
298,636
$
1,145,999
$
244,624
$
46,211
$
1,309,477
$
28,784,338
C-4
MECKLENBURG COUNTY, NORTH CAROLINA
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES (DEFICITS)
SPECIAL REVENUE FUNDS
FOR THE YEAR ENDED JUNE 30, 2004
911 Public
Law
Transit
Additional
Capital
Storm Water
Enforcement
One-Half Cent
One-Half Cent
Scrap Tire
Discarded
Reserve
Management
Service District
Sales Tax
Sales Tax
Disposal
White Goods
$
$ 12,948,398
Sheriff
Freedom Mall
Safety
Total
Register
County
Operations and
Emergency
Special
of Deeds
Facilities
Maintenance
Telephone
Revenue Funds
REVENUES
Law Enforcement Service District taxes
$
General Property Tax
1,371,002
Transit one-half cent sales tax
-
Intergovernmental
-
Charges for services
241,813
Interest earned on investments
-
Other
Total Revenues
-
-
-
-
$
-
$
29,235,677
-
$
-
$
-
$
-
$
-
$
-
$
-
$ 12,948,398
-
-
-
-
-
-
1,371,002
-
-
-
-
-
-
-
-
29,235,677
2,589,620
-
-
-
802,879
-
-
-
22,232
83,959
8,069
-
85,106
671,791
22,003
-
-
-
2,284,606
11,332,288
29,235,677
-
-
8,636,706
12,956,467
$
-
262,106
-
-
105
-
-
207,678
324,453
825,216
453,556
825,111
269,108
1,048,338
-
191,450
85,106
-
116,775
-
-
-
-
1,726,466
-
5,381,071
10,065,864
-
-
-
-
177,239
-
30,600
-
-
1,123,522
30,600
-
1,048,338
1,726,466
60,302,773
EXPENDITURES
Land Use and Environmental Services
-
Detention and Court Support Services
-
8,621,293
-
Business Partners
-
-
-
-
-
-
-
-
-
-
-
-
-
12,548,543
35,991,195
284,002
-
-
-
-
-
-
-
-
-
-
-
-
452,702
9,715,512
284,002
48,992,440
Debt Service
Principal
-
1,362,418
-
-
-
-
-
-
-
-
-
-
Interest
-
595,706
-
-
-
-
-
-
-
-
-
-
595,706
7,085,764
1,994,476
-
-
-
-
-
-
451,565
-
-
-
9,531,805
7,085,764
12,573,893
(4,801,158)
(1,241,605)
Capital Outlay
Total Expenditures
REVENUES OVER (UNDER) EXPENDITURES
12,548,543
407,924
35,991,195
-
(6,755,518)
85,106
825,111
269,108
284,002
451,565
-
-
452,702
105
184,448
40,451
596,773
30,600
-
1,273,764
1,362,418
70,481,883
(10,179,110)
OTHER FINANCING SOURCES (USES)
Capitalized lease
-
Transfers from other funds
6,087,021
-
Transfers to other funds
Total Financing Sources (Uses)
6,087,021
76,923
-
-
-
-
-
-
-
-
-
-
76,923
-
-
-
-
-
-
-
-
-
-
-
6,087,021
-
-
-
(14,515,320)
-
-
(20,284)
-
(2,400,000)
-
-
(16,935,604)
76,923
-
-
(14,515,320)
-
-
(20,284)
-
(2,400,000)
-
-
(10,771,660)
(14,430,214)
105
(2,369,400)
-
EXCESS (DEFICIENCY) OF REVENUES
AND OTHER FINANCING SOURCES
OVER (UNDER) EXPENDITURES
1,285,863
FUND BALANCES (DEFICITS) - BEGINNING OF YEAR
FUND BALANCES - END OF YEAR
(1,164,682)
7,947,770
$
9,233,633
407,924
9,251,664
$
8,086,982
(6,755,518)
(219,361)
$
188,563
6,755,518
$
-
14,430,214
$
-
184,448
4,293
$
4,398
20,167
47,577
$
232,025
596,773
264,967
$
285,134
523,313
$
1,120,086
2,614,024
$
244,624
1,273,764
$
-
$
(20,950,770)
12,739
41,632,718
1,286,503
$ 20,681,948
C-5
MECKLENBURG COUNTY, NORTH CAROLINA
COMBINING BALANCE SHEET
CAPITAL PROJECTS FUNDS
JUNE 30, 2004
1989A
1989B
1990
1991B
1993
Public
Public
Public
Public
Public
Improvement
Improvement
Improvement
Improvement
Improvement
$
$
$
$
$
ASSETS
Cash and Investments
Accounts receivable
16,126
111,789
18,802
5,476
636,020
-
-
-
-
-
-
-
-
-
-
Advances to other
governmental agencies
TOTAL ASSETS
$
16,126
$
$
-
$
111,789
$
18,802
$
5,476
$
$
-
$
-
$
636,020
LIABILITIES AND
FUND BALANCES (DEFICITS)
Liabilities:
Accounts payable and
accrued liabilities
-
-
Due to other funds
-
-
-
-
-
Deferred revenue
-
-
-
-
-
-
-
-
-
-
Reserved for encumbrances
-
1,145
1,964
-
850
Reserved by State statute
-
-
-
-
-
16,838
5,476
-
-
18,802
5,476
Total Liabilities
Fund Balances (Deficits):
Unreserved:
Designated
16,126
Undesignated
110,644
-
Total Fund Balances (Deficits)
-
16,126
111,789
635,170
636,020
TOTAL LIABILITIES AND
FUND BALANCES (DEFICITS)
$
16,126
$
111,789
$
18,802
$
5,476
$
636,020
(Continued)
C-5
MECKLENBURG COUNTY, NORTH CAROLINA
COMBINING BALANCE SHEET
CAPITAL PROJECTS FUNDS
JUNE 30,2004
(CONTINUED)
1994
1996A
1998A
1998B
2000A
Public
Public
Public
Public
Public
Improvement
Improvement
Improvement
Improvement
Improvement
$ 2,418,428
$ 10,270,505
ASSETS
Cash and Investments
$
Accounts receivable
4,890
$
16,195
$
2,250,149
-
-
-
-
-
-
-
-
-
-
Advances to other
governmental agencies
TOTAL ASSETS
$
4,890
$
16,195
$
2,250,149
$
-
$
-
$
35,324
$ 2,418,428
$ 10,270,505
$
$
LIABILITIES AND
FUND BALANCES (DEFICITS)
Liabilities:
Accounts payable and
accrued liabilities
-
78,692
Due to other funds
-
-
-
-
Deferred revenue
-
-
-
-
-
-
-
35,324
-
78,692
4,020
-
344,944
-
-
Total Liabilities
-
Fund Balances (Deficits):
Reserved for encumbrances
Reserved by State statute
-
878,854
-
6,538,768
-
Unreserved:
Designated
870
Undesignated
-
-
4,890
16,195
Total Fund Balances (Deficits)
16,195
1,869,881
-
1,539,574
-
3,653,045
-
2,214,825
2,418,428
10,191,813
2,250,149
$ 2,418,428
$ 10,270,505
TOTAL LIABILITIES AND
FUND BALANCES (DEFICITS)
$
4,890
$
16,195
$
(Continued)
C-5
MECKLENBURG COUNTY, NORTH CAROLINA
COMBINING BALANCE SHEET
CAPITAL PROJECTS FUNDS
JUNE 30, 2004
(CONTINUED)
2000C
2000D
2000E
2001D
2002A
Variable
Public
Variable
Public
Public
Rate
Improvement
Rate
Improvement
Improvement
ASSETS
Cash and Investments
$
Accounts receivable
1,583
$
195,567
$
47,137
$
290,067
$
14,375,369
-
-
-
-
-
-
-
-
-
-
Advances to other
governmental agencies
TOTAL ASSETS
$
1,583
$
195,567
$
47,137
$
$
1,500
$
5,987
$
-
$
290,067
$
14,375,369
LIABILITIES AND
FUND BALANCES (DEFICITS)
Liabilities:
Accounts payable and
accrued liabilities
-
$
-
Due to other funds
-
-
-
-
-
Deferred revenue
-
-
-
-
-
1,500
5,987
-
-
-
Reserved for encumbrances
-
8,975
47,137
Reserved by State statute
-
-
-
Total Liabilities
Fund Balances (Deficits):
290,067
-
-
-
Unreserved:
Designated
83
Undesignated
Total Fund Balances (Deficits)
-
180,605
-
83
-
189,580
14,375,369
-
47,137
-
290,067
14,375,369
TOTAL LIABILITIES AND
FUND BALANCES (DEFICITS)
$
1,583
$
195,567
$
47,137
$
290,067
$
(Continued)
14,375,369
C-5
MECKLENBURG COUNTY, NORTH CAROLINA
COMBINING BALANCE SHEET
CAPITAL PROJECTS FUNDS
JUNE 30, 2004
(CONCLUDED)
2002B
2003A
Other
Total
Public
Public
Certificates of
Capital
Capital
Improvement
Improvement
Participation
Funding
Projects
ASSETS
Cash and Investments
$
Accounts receivable
4,327,215
$
43,543,626
-
$ 24,664,840
-
$
-
(11,033)
$ 103,182,751
859,676
859,676
848,643
1,862,526
$ 105,904,953
188,478
$
Advances to other
governmental agencies
TOTAL ASSETS
$
4,327,215
$
1,862,526
45,406,152
$
5,093
$
410,153
$ 24,664,840
$
$
$
LIABILITIES AND
FUND BALANCES (DEFICITS)
Liabilities:
Accounts payable and
accrued liabilities
Due to other funds
-
Deferred revenue
-
-
Total Liabilities
-
1,156,516
-
1,881,743
2,456,800
2,456,800
1,124,193
1,124,193
5,093
410,153
1,156,516
3,769,471
5,462,736
592,991
6,004,148
26,347,006
623,180
41,684,049
859,676
2,722,202
Fund Balances (Deficits):
Reserved for encumbrances
Reserved by State statute
-
1,862,526
-
Unreserved:
Designated
3,729,131
Undesignated
Total Fund Balances (Deficits)
TOTAL LIABILITIES AND
FUND BALANCES (DEFICITS)
37,129,325
-
4,322,122
$
4,327,215
$
22,242,733
-
85,521,065
(25,081,415)
(4,403,684)
(29,485,099)
44,995,999
23,508,324
(2,920,828)
100,442,217
45,406,152
$ 24,664,840
$
848,643
$ 105,904,953
C-6
MECKLENBURG COUNTY, NORTH CAROLINA
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES (DEFICITS)
CAPITAL PROJECTS FUNDS
FOR THE YEAR ENDED JUNE 30, 2004
Project Authorization
1986
1989A
1989B
1990
Public
Public
Public
Public
Public
Improvement
Improvement
Improvement
Improvement
Improvement
$
39,000,000
$ 7,200,000
Prior Years' Revenues
39,000,000
7,200,000
37,800,000
83,384,000
53,000,000
Prior Years' Expenditures
38,864,477
7,183,874
37,357,745
83,365,158
52,991,080
135,523
16,126
442,255
18,842
8,920
Fund Balances (Deficits) - Beginning of Year
$
37,800,000
$
1991B
83,384,000
$
53,000,000
REVENUES
Intergovernmental
Federal
-
-
-
-
-
State
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
County Buildings
-
-
-
-
-
Land
-
-
-
-
-
Clean Water Management
-
-
-
-
-
Historic Preservation
-
-
-
-
-
Community Development
-
-
-
-
Park and Recreational Facilities
-
-
5,372
Library Facilities
-
-
-
-
-
-
-
-
-
-
Community College Facilities
-
-
-
-
-
School Facilities
-
-
-
-
-
-
5,372
40
3,444
-
-
(5,372)
(40)
(3,444)
Bonds issued
-
-
-
-
-
Certificates of participation issued
-
-
-
-
-
Other
Total Revenues
EXPENDITURES
Management Services
Land Use and Environmental Services
Community Services
-
40
3,444
Detention and Court Support Services
Jail/Detention Facilities
Business Partners
Total Expenditures
-
REVENUES OVER (UNDER)
EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfer to other funds
Total Other Financing Sources (Uses)
(135,523)
-
(325,094)
-
-
(135,523)
-
(325,094)
-
-
FUND BALANCES (DEFICITS) END OF YEAR
$
-
$
16,126
$
111,789
$
18,802
$
5,476
(Continued)
C-6
MECKLENBURG COUNTY, NORTH CAROLINA
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES (DEFICITS)
CAPITAL PROJECTS FUNDS
FOR THE YEAR ENDED JUNE 30, 2004
(CONTINUED)
Project Authorization
1993
1994
1996A
1998A
1998B
Public
Public
Public
Public
Public
Public
Improvement
Improvement
Improvement
Improvement
Improvement
Improvement
$
18,400,000
$ 196,215,000
22,000,000
$ 31,000,000
Prior Years' Revenues
18,400,000
196,215,000
22,000,000
31,000,000
257,050,000
34,000,000
Prior Years' Expenditures
17,000,390
196,011,018
21,983,781
28,046,520
253,891,332
21,870,341
1,399,610
203,982
16,219
2,953,480
3,158,668
12,129,659
Fund Balances (Deficits) - Beginning of Year
$
$
2000A
257,050,000
$
34,000,000
REVENUES
Intergovernmental
Federal
-
-
-
-
-
State
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
62,437
-
-
-
-
-
Other
Total Revenues
-
EXPENDITURES
Management Services
County Buildings
763,590
Land
-
158,433
-
Land Use and Environmental Services
Clean Water Management
-
-
-
-
-
-
Historic Preservation
-
-
-
-
-
-
Community Services
Community Development
-
-
1
Park and Recreational Facilities
-
-
23
-
-
Library Facilities
-
-
-
-
-
-
-
-
-
9,180
676,218
-
337,831
562,929
101
Detention and Court Support Services
Jail/Detention Facilities
1,216,383
Business Partners
Community College Facilities
-
-
-
-
9,289
-
School Facilities
-
-
-
-
383,940
-
Total Expenditures
763,590
-
24
738,655
740,240
1,937,846
(763,590)
-
(24)
(738,655)
(740,240)
(1,937,846)
REVENUES OVER (UNDER)
EXPENDITURES
OTHER FINANCING SOURCES (USES)
Bonds issued
-
-
-
-
-
-
Certificates of participation issued
-
-
-
-
-
-
-
-
-
-
Transfer to other funds
(199,092)
Total Other Financing Sources (Uses)
-
(199,092)
FUND BALANCES (DEFICITS) END OF YEAR
$
636,020
$
4,890
$
16,195
$
2,214,825
$
2,418,428
$
10,191,813
(Continued)
C-6
MECKLENBURG COUNTY, NORTH CAROLINA
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES (DEFICITS)
CAPITAL PROJECTS FUNDS
FOR THE YEAR ENDED JUNE 30, 2004
(CONTINUED)
Project Authorization
2000B
2000C
2000D
2000E
2001D
Public
Variable
Public
Variable
Public
Public
Improvement
Rate
Improvement
Rate
Improvement
Improvement
$
56,000,000
$ 14,400,000
Prior Years' Revenues
20,000,000
50,000,000
100,000,000
50,000,000
56,000,000
14,400,000
Prior Years' Expenditures
19,999,019
49,993,717
90,030,949
49,926,023
55,576,933
24,631
981
6,283
9,969,051
73,977
423,067
14,375,369
Fund Balances (Deficits) - Beginning of Year
20,000,000
$
50,000,000
$
100,000,000
$
50,000,000
$
2002A
REVENUES
Intergovernmental
Federal
-
-
-
-
-
-
State
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
County Buildings
-
-
-
-
-
-
Land
-
-
-
-
-
-
Clean Water Management
-
-
-
-
-
Historic Preservation
-
-
26,840
-
-
Community Development
-
-
-
-
Park and Recreational Facilities
-
-
(21,891)
-
Library Facilities
-
-
Other
Total Revenues
EXPENDITURES
Management Services
Land Use and Environmental Services
1,372,542
Community Services
8,130,855
133,000
-
-
-
-
Detention and Court Support Services
Jail/Detention Facilities
981
6,200
-
-
-
-
Business Partners
Community College Facilities
-
-
-
-
-
School Facilities
-
-
-
-
-
Total Expenditures
-
981
6,200
9,481,506
26,840
133,000
-
(981)
(6,200)
(9,481,506)
(26,840)
(133,000)
-
REVENUES OVER (UNDER)
EXPENDITURES
OTHER FINANCING SOURCES (USES)
Bonds issued
-
-
-
-
Certificates of participation issued
-
-
-
-
-
-
Transfer to other funds
-
-
-
(297,965)
Total Other Financing Sources (Uses)
(297,965)
-
-
-
FUND BALANCES (DEFICITS) END OF YEAR
$
290,067
$
14,375,369
$
189,580
$
47,137
$
290,067
$ 14,375,369
(Continued)
C-6
MECKLENBURG COUNTY, NORTH CAROLINA
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES (DEFICITS)
CAPITAL PROJECTS FUNDS
FOR THE YEAR ENDED JUNE 30, 2004
(CONCLUDED)
2002B
2003A
2003B
Public
Public
Variable
Improvement
Project Authorization
$
139,000,000
Improvement
$
193,000,000
Certificates of
Rate
$
Participation
40,000,000
$
59,420,000
Other
Total
Capital
Capital
Funding
$
Projects
78,857,764
$
1,579,726,764
Prior Years' Revenues
139,000,000
193,000,000
40,000,000
59,420,000
131,115,218
1,631,984,218
Prior Years' Expenditures
111,751,441
57,654,487
30,761,188
42,360,883
132,205,261
1,398,850,248
27,248,559
135,345,513
9,238,812
17,059,117
Fund Balances (Deficits) - Beginning of Year
(1,090,043)
233,133,970
REVENUES
Intergovernmental
Federal
-
-
-
-
218,443
218,443
State
-
-
-
-
6,564,419
6,564,419
-
-
-
-
348,239
348,239
-
-
-
-
7,131,101
7,131,101
Other
Total Revenues
EXPENDITURES
Management Services
County Buildings
Land
1,412,854
5,082,939
-
20,204,515
11,623,684
-
1,233,057
-
-
8,713,310
-
31,828,199
Land Use and Environmental Services
Clean Water Management
-
-
-
-
Historic Preservation
-
-
-
-
-
-
263,761
1,663,143
Community Services
Community Development
-
Park and Recreational Facilities
-
885,744
Library Facilities
-
Detention and Court Support Services
-
-
1,007,608
-
739,301
5,858,003
-
213,468
263,514
263,515
585,936
4,915,555
-
14,202,427
9,467
1,242,211
-
Jail/Detention Facilities
-
-
-
-
Business Partners
Community College Facilities
423,324
School Facilities
24,157,580
-
Total Expenditures
-
-
-
24,590,193
42,619,700
9,238,812
9,519,967
7,839,208
69,601,627
22,926,437
90,349,514
9,238,812
11,705,793
8,961,886
157,020,180
(22,926,437)
(90,349,514)
(9,238,812)
(11,705,793)
(1,830,785)
(149,889,079)
REVENUES OVER (UNDER)
EXPENDITURES
OTHER FINANCING SOURCES (USES)
Bonds issued
-
-
-
Certificates of participation issued
-
-
-
Transfer to other fund
Total Other Financing Sources (Uses)
-
-
-
-
-
-
-
18,155,000
-
-
-
18,155,000
-
18,155,000
(957,674)
-
17,197,326
FUND BALANCES (DEFICITS) END OF YEAR
$
(2,920,828)
$
44,995,999
$
-
$
23,508,324
$
(2,920,828)
$
100,442,217
D-1
MECKLENBURG COUNTY, NORTH CAROLINA
COMBINING SCHEDULE OF NET ASSETS
AGENCY FIDUCIARY FUNDS
JUNE 30, 2004
Municipalities'
Taxes
Employees'
Insurance
Fee Collection
for State
$ 1,216,257
10,126
1,226,383
$ 1,668,776
1,668,776
1,226,383
1,226,383
1,668,776
1,668,776
Food and
Beverage
Tax
Other
Total
ASSETS
Cash and investments
Accounts receivable
TOTAL ASSETS
$
188,720
188,720
$
68,334
68,334
$
317,212
317,212
$
3,459,299
10,126
3,469,425
LIABILITIES
Accounts payable and accrued liabilities
Due to other governmental agencies
TOTAL LIABILITIES
211,297
(22,577)
188,720
68,334
68,334
317,212
317,212
1,754,892
1,714,533
3,469,425
NET ASSETS
Net Assets
$
-
$
-
$
-
$
-
$
-
$
-
D -2
MECKLENBURG COUNTY, NORTH CAROLINA
SCHEDULE OF CHANGES IN ASSETS AND LIABILITIES
AGENCY FIDUCIARY FUNDS
FOR THE YEAR JUNE 30, 2004
Balance
Balance
July 1, 2003
Additons
Deductions
June 30, 2004
Municipalities' Taxes
Assets
Cash and investments
$
2,301,398
$
55,917
$
341,626,265
$ 343,738,943
$
188,720
$
$
211,297
Liabilities
Accounts payable and accrued liabilties
$
Due to other governmental agencies
Total liabilties
2,245,481
155,380
-
341,470,884
343,738,942
$ 343,738,942
$
188,720
$
$
1,216,257
$
2,301,398
$
341,626,264
$
3,685,585
$
39,287,942
(22,577)
Employees' Insurance
Assets
Cash and investments
Accounts receivable
Total assets
8,512
77,658
41,757,270
76,044
10,126
$
3,694,097
$
39,365,600
$
41,833,314
$
1,226,383
$
3,694,097
$
39,365,600
$
41,833,314
$
1,226,383
$
1,863,324
$
8,057,143
$
8,251,691
$
1,668,776
11,150
$
-
$
11,150
$
Liabilities
Accounts payable and accrued liabilties
Fee Collection for State
Assets
Cash and investments
Liabilities
Accounts payable and accrued liabilties
$
Due to other governmental agencies
Total liabilties
1,852,174
8,057,143
8,240,541
1,668,776
$
1,863,324
$
8,057,143
$
8,251,691
$
1,668,776
$
7,445
$
14,346,508
$
14,285,619
$
68,334
$
7,445
$
14,346,508
$
14,285,619
$
68,334
$
328,246
$
2,242,854
$
2,253,888
$
317,212
$
328,246
$
2,242,854
$
2,253,888
$
317,212
$
8,185,998
$
405,560,712
$ 410,287,411
$
3,459,299
77,658
76,044
405,638,370
$ 410,363,455
$
3,469,425
$
$
Food and Beverage Tax
Assets
Cash and investments
Liabilities
Due to other governmental agencies
Other
Assets
Cash and investments
Liabilities
Accounts payable and accrued liabilties
Totals - All Agency Funds
Assets
Cash and investments
Accounts receivable
Total assets
8,512
$
8,194,510
$
4,089,410
$
10,126
Liabilities
Accounts payable and accrued liabilties
$
Due to other governmental agencies
Total liabilties
4,105,100
$
8,194,510
$
41,763,834
44,098,352
363,874,535
366,265,102
405,638,369
$ 410,363,454
1,754,892
1,714,533
$
3,469,425
E-1
MECKLENBURG COUNTY, NORTH CAROLINA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
GRANTS PROJECT FUND
FOR THE YEAR ENDED JUNE 30, 2004
Variance Project
Actual
Authorization
Prior Year
Positive/
Current Year
Total to Date
$
$
(Negative)
Community Development Block Grant
Block Grant #01-C-0803
REVENUES
Grant Proceeds
$
Mecklenburg County
Total Revenues
400,000
$
71,266
220,648
291,914
$
108,086
43,879
-
43,879
43,879
443,879
71,266
264,527
335,793
108,086
-
209,971
274,997
68,882
EXPENDITURES
Rehabilitation
343,879
65,026
Relocation
60,000
2,690
-
2,690
57,310
Administration
40,000
3,550
54,556
58,106
(18,106)
443,879
71,266
264,527
335,793
108,086
Total Expenditures
REVENUES OVER EXPENDITURES
$
-
$
-
-
$
36,027
$
-
$
-
$
-
North Carolina Clean Water Management Trust
Lower McAlpine Creek Greenway Project 1998B-702
REVENUES
Grant Proceeds
$
209,000
$
172,973
$
209,000
EXPENDITURES
Construction
209,000
REVENUES OVER EXPENDITURES
$
-
172,973
$
36,027
-
-
209,000
$
-
$
-
Storm Water Project 1998B-002
REVENUES
Grant Proceeds
$ 2,240,000
Mecklenburg County
$
697,016
Total Revenues
298,493
$
-
302,780
$
601,273
871,389
871,389
$ 1,638,727
(174,373)
2,937,016
298,493
1,174,169
1,472,662
1,464,354
2,937,016
298,493
1,174,169
1,742,662
1,464,354
EXPENDITURES
Construction
REVENUES OVER EXPENDITURES
$
-
$
-
$
-
-
$
-
$
-
Little Sugar Creek Restoration
Phase 3 Project 2002B-402
REVENUES
Grant
$
Mecklenburg County
Total Revenues
400,000
$
178,381
$
178,381
$
221,619
1,775,000
-
426,126
426,126
1,348,874
2,175,000
-
604,507
604,507
1,570,493
2,175,000
-
604,507
604,507
1,570,493
-
-
EXPENDITURES
Construction
REVENUES OVER EXPENDITURES
$
-
$
$
-
$
-
(Continued)
E-1
MECKLENBURG COUNTY, NORTH CAROLINA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
GRANTS PROJECT FUND
FOR THE YEAR ENDED JUNE 30, 2004
(CONCLUDED)
Variance Project
Actual
Authorization
Prior Year
Positive/
Current Year
Total to Date
$
$
(Negative)
North Carolina Department of Environment and
Natural Resources
Goose Creek Watershed Project #EW03042
REVENUES
Grant Proceeds
$
50,000
$
-
27,325
27,325
$
22,675
EXPENDITURES
Development costs
REVENUES OVER EXPENDITURES
50,000
$
-
-
27,325
$
-
-
$
-
27,325
$
-
22,675
$
-
Little Sugar Creek Restoration Phase 3
REVENUES
Grant Proceeds
$
EXPENDITURES
REVENUES OVER EXPENDITURES
400,000
400,000
$
-
$
$
$
200,388
-
-
FUND BALANCE -BEGINNING OF YEAR
FUND BALANCE -END OF YEAR
200,388
$
-
200,388
$
200,388
$
-
199,612
199,612
$
-
F-1
MECKLENBURG COUNTY, NORTH CAROLINA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL - CAPITAL RESERVE SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 30, 2004
Budget
Actual
REVENUES
General property tax - current
$
Charges for services
Other
Total Revenues
1,371,002
$
1,371,002
20,116
241,813
3,631
671,791
1,394,749
2,284,606
EXPENDITURES
Capital outlay
14,988,802
7,085,764
Total Expenditures
14,988,802
7,085,764
REVENUES UNDER EXPENDITURES
(13,594,053)
(4,801,158)
Transfers from other funds
6,074,522
6,087,021
Appropriated fund balance
7,519,531
OTHER FINANCING SOURCES
Total Other Financing Sources
-
13,594,053
6,087,021
REVENUES AND OTHER
FINANCING SOURCES OVER EXPENDITURES
$
-
1,285,863
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
7,947,770
$
9,233,633
F-2
MECKLENBURG COUNTY, NORTH CAROLINA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL - STORM WATER MANAGEMENT SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 30, 2004
Budget
Actual
REVENUES
Intergovernmental
Federal
$
692,010
$
559,348
State
915,000
748,678
Local
2,378,357
1,281,594
8,751,725
8,636,706
Charges for services
Interest earned on investments
-
Other
Total Revenues
83,959
113,100
22,003
12,850,192
11,332,288
14,757,786
8,621,293
2,770,891
1,994,476
1,363,683
1,362,418
EXPENDITURES
Land Use and Environmental Services
Storm Water Services
Capital Outlay
Debt Service
Principal retirement - bonds
Interest
Total Expenditures
REVENUES UNDER EXPENDITURES
596,357
595,706
19,488,717
12,573,893
(6,638,525)
(1,241,605)
OTHER FINANCING SOURCES:
Transfer from other fund
Capitalized lease
Appropriated fund balance
Total Other Financing Sources
85,513
-
-
76,923
6,553,012
-
6,638,525
76,923
REVENUES AND OTHER FINANCING
SOURCES UNDER EXPENDITURES
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
$
-
(1,164,682)
9,251,664
$ 8,086,982
F-3
MECKLENBURG COUNTY, NORTH CAROLINA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL - LAW ENFORCEMENT SERVICE DISTRICT SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 30, 2004
Budget
Actual
$ 12,548,543
$ 12,948,398
12,548,543
12,956,467
12,548,543
12,548,543
12,548,543
12,548,543
REVENUES
Law Enforcement Service District taxes
Interest earned on investments
Total Revenues
8,069
EXPENDITURES
Business Partners:
Law Enforcement Services
Total Expenditures
REVENUES OVER EXPENDITURES
-
407,924
FUND BALANCE (DEFICIT) - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
(219,361)
$
188,563
F-4
MECKLENBURG COUNTY, NORTH CAROLINA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL - TRANSIT ONE-HALF CENT SALES TAX SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 30, 2004
Budget
Actual
$ 36,000,000
$ 29,235,677
36,000,000
35,991,195
REVENUES
Transit one-half cent sales tax
EXPENDITURES
Business Partners
REVENUES UNDER EXPENDITURES
$
-
(6,755,518)
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
6,755,518
$
-
F-5
MECKLENBURG COUNTY, NORTH CAROLINA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL - ADDITIONAL ONE-HALF CENT SALES TAX SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 30, 2004
Actual
Project
Prior
Current
Total
Authorization
Years'
Year
to Date
REVENUES
Additional one-half cent sales tax
$
Interest earned on investments
Other
Total Revenues
14,857,239
$ 14,857,238
1,499,714
2,010,027
$
-
$
52,180
53,680
16,409,133
16,920,945
85,106
17,006,051
2,352,064
1,109,982
-
1,109,982
14,057,069
15,810,963
85,106
15,896,069
(15,896,070)
(1,380,749)
85,106
14,857,238
2,095,133
-
53,680
EXPENDITURES
Capital outlay
REVENUES OVER EXPENDITURES
OTHER FINANCING USES
Operating transfer to other funds
Appropriation of fund balance
1,839,001
Total Other Financing Uses
(14,057,069)
(14,515,320)
-
(15,896,069)
-
(1,380,749)
-
(14,515,320)
(15,896,069)
REVENUES OVER (UNDER) EXPENDITURES
AND OTHER FINANCING USES
$
-
$ 14,430,214
(14,430,214)
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
14,430,214
$
-
$
-
F-6
MECKLENBURG COUNTY, NORTH CAROLINA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL - SCRAP TIRE DISPOSAL SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 30, 2004
Budget
Actual
REVENUES
Intergovernmental - State
$
Charges for services
Interest earned on investment
975,876
$ 802,879
22,232
22,232
-
Total Revenues
105
998,108
825,216
1,774,280
825,111
EXPENDITURES
Land Use and Environmental Services
REVENUES UNDER EXPENDITURES
(776,172)
105
OTHER FINANCING SOURCES
Appropriated fund balance
776,172
-
REVENUES AND OTHER FINANCING
SOURCES UNDER EXPENDITURES
$
-
105
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
4,293
$
4,398
F-7
MECKLENBURG COUNTY, NORTH CAROLINA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL - DISCARDED WHITE GOODS SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 30, 2004
Budget
Actual
REVENUES
Intergovernmental - State
$
Other
217,818
$
262,106
158,550
191,450
376,368
453,556
752,272
269,108
(375,904)
184,448
EXPENDITURES
Land Use and Environmental Services
REVENUES OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES
Appropriated fund balance
375,904
-
REVENUES AND OTHER FINANCING
SOURCES OVER EXPENDITURES
$
-
184,448
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
47,577
$
232,025
F-8
MECKLENBURG COUNTY, NORTH CAROLINA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL - SHERIFF SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 30, 2004
Budget
Actual
REVENUES
Licenses and Permits
$
97,150
$ 116,775
133,086
207,678
230,236
324,453
366,615
284,002
(136,379)
40,451
Transfer to other fund
(20,284)
(20,284)
Appropriated fund balance
156,663
-
136,379
(20,284)
Other
Total Revenues
EXPENDITURES
Detention and Court Support Services
REVENUES OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Total Other Financing Sources (Uses)
REVENUES AND OTHER FINANCING
SOURCES OVER EXPENDITURES
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
$
-
20,167
264,967
$ 285,134
F-9
MECKLENBURG COUNTY, NORTH CAROLINA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL - REGISTER OF DEEDS SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 30, 2004
Budget
Actual
REVENUES
Charges for services
$
993,000
$ 1,048,338
1,444,324
451,565
EXPENDITURES
Capital outlay
REVENUES OVER (UNDER) EXPENDITURES
(451,324)
596,773
OTHER FINANCING SOURCES
Appropriated fund balance
451,324
-
REVENUES AND OTHER FINANCING
SOURCES OVER EXPENDITURES
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
$
-
596,773
523,313
$ 1,120,086
F - 10
MECKLENBURG COUNTY, NORTH CAROLINA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL - COUNTY FACILITIES SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 30, 2004
Budget
Actual
REVENUES
Other
$
2,400,000
$
30,600
EXPENDITURES
Business Partners
REVENUES OVER EXPENDITURES
-
-
2,400,000
30,600
OTHER FINANCING USES
Transfer to other fund
(2,400,000)
(2,400,000)
REVENUES UNDER EXPENDITURES
AND OTHER FINANCING USES
$
-
(2,369,400)
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
2,614,024
$
244,624
F - 11
MECKLENBURG COUNTY, NORTH CAROLINA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL - 911 PUBLIC SAFETY EMERGENCY TELEPHONE SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 30, 2004
Budget
Actual
REVENUES
Intergovernmental - Local
$
1,928,299
$ 1,726,466
1,941,039
452,702
EXPENDITURES
Business Partners
REVENUES OVER (UNDER) EXPENDITURES
(12,740)
1,273,764
OTHER FINANCING SOURCES
Appropriated Fund Balance
12,740
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
$
-
-
12,739
-
$ 1,286,503
G-1
MECKLENBURG COUNTY, NORTH CAROLINA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL - 2004B PUBLIC IMPROVEMENT CAPITAL PROJECTS FUND
FOR THE YEAR ENDED JUNE 30, 2004
PROJECT AUTHORIZATION
$
Prior Year's Revenues
Prior Year's Expenditures
FUND BALANCE - BEGINNING OF YEAR
$
REVENUES
100,000,000
-
EXPENDITURES
Management Services
County Buildings
Land
Community Services
Park and Recreation Facilities
Library Facilities
Business Partners
Community College Facilities
School Facilities
Total Expenditures
35,188,836
35,188,836
REVENUES UNDER EXPENDITURES
(35,188,836)
OTHER FINANCING SOURCES
Bonds Issued
100,000,000
FUND BALANCE - END OF YEAR
$
64,811,164
G-2
MECKLENBURG COUNTY, NORTH CAROLINA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL - 2004A PUBLIC IMPROVEMENT CAPITAL PROJECTS FUND
FOR THE YEAR ENDED JUNE 30, 2004
PROJECT AUTHORIZATION
$
Prior Year's Revenues
Prior Year's Expenditures
FUND BALANCE - BEGINNING OF YEAR
$
REVENUES
105,000,000
1,306,645
(1,306,645)
-
EXPENDITURES
Management Services
County Buildings
Land
Community Services
Park and Recreation Facilities
Library Facilities
Business Partners
Community College Facilities
School Facilities
Total Expenditures
13,800,390
45,115
5,537
16,424
24,225,691
38,093,157
REVENUES UNDER EXPENDITURES
(38,093,157)
OTHER FINANCING SOURCES
Bonds Issued
105,000,000
FUND BALANCE - END OF YEAR
$
65,600,198
H-1
MECKLENBURG COUNTY, NORTH CAROLINA
SCHEDULE OF REVENUES AND EXPENSES - BUDGET (MODIFIED ACCRUAL BASIS) AND ACTUAL
SOLID WASTE OPERATING FUND
FOR THE YEAR ENDED JUNE 30, 2004
Budget
Actual
Operating Revenues
Charges for services
$
Other
Total Operating Revenues
9,955,546
$ 10,934,103
1,220,897
1,774,001
11,176,443
12,708,104
Operating Expenses
Personal services and employee benefits
3,365,811
3,504,665
Utilities
134,050
123,038
Supplies
379,739
339,974
Maintenance and repairs
390,596
522,392
Rental and occupancy charges
106,472
150,665
2,511,708
2,310,564
6,888,376
6,951,298
4,288,067
5,756,806
Contractual services
Total Operating Expenses
Operating Income
Non-operating Revenues (Expenses)
Interest Income
40,000
107,588
Interest expense
(576,316)
(610,855)
(3,297,500)
(2,415,515)
Transfer to other funds
Capital outlay
Total Non-operating Revenues (Expenses)
Net income - Modified accrual basis
$
(357,990)
(25)
(4,191,806)
(2,918,807)
96,261
2,837,999
Reconciliation to full accrual basis
Depreciation
(1,202,350)
Transfer to landfill reserve fund
(879,485)
Gain on sale of capital assets
38,879
Amortization of refunding amount
(100,325)
Other
(277,113)
Net Income - Full Accrual Basis
$
417,605
H-2
MECKLENBURG COUNTY, NORTH CAROLINA
LANDFILL CONSTRUCTION, FINAL DEVELOPMENT AND POSTCLOSURE RESERVE FUND
SCHEDULE OF REVENUES AND EXPENDITURES
BUDGET AND ACTUAL (NON-GAAP)
FROM INCEPTION AND FOR THE YEAR ENDED JUNE 30, 2004
Project
Authorization
REVENUES
Interest earned on investments
$ 583,910
EXPENDITURES
Landfill construction
Final development and postclosure costs
Total expenditures
Actual
Current
Year
Prior
Years'
$
765,879
$
41,125
Total to
Date
$
807,004
1,755,188
5,773,910
7,529,098
782,203
2,372,254
3,154,457
3,058,539
3,058,539
782,203
5,430,793
6,212,996
REVENUES UNDER EXPENDITURES
(6,945,188)
(2,388,578)
(3,017,414)
(5,405,992)
OTHER FINANCING SOURCES
Operating transfer from Solid Waste
Enterprise Fund
6,945,188
4,529,673
2,415,515
6,945,188
EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES AND OTHER
FINANCING SOURCES
$
-
$ 2,141,095
$ (601,899)
$ 1,539,196
Statistical
Mecklenburg County, North Carolina
The tables in this section provide trends, statistical and demographic information
about the County.
TABLE A
MECKLENBURG COUNTY, NORTH CAROLINA
GOVERNMENT-WIDE EXPENSES BY FUNCTION
Customer
Satisfaction
Customer
Land Use
Fiscal Year
and
Satisfaction
and
Ended
Management
Administrative
Management
Financial
and
Environmental
June 30,
Services
Services
Services
Services
Communication
2004
$
4,713,506
$ 39,279,980
2003
4,030,103
38,725,174
2002
-
-
$
42,004,729
$
3,800,229
3,256,165
16,384,192
$
Health
Detention and
and
Community
Court Support
Human
Business
Long-term
Solid Waste
Total
Services
Services
Services
Services
Partners
Debt
Operations
Expenses
-
$ 44,964,169
$ 55,180,957
$ 90,163,414
$ 284,575,085
$ 535,387,248
$ 76,688,313
$ 10,137,235
-
43,001,664
66,611,979
88,349,286
272,484,306
562,530,240
61,918,860
10,279,190
1,151,186,967
42,826,310
31,032,651
82,703,642
270,190,779
554,898,570
55,236,067
9,131,738
1,105,321,496
912,818
Interest on
$
1,144,890,136
TABLE B
MECKLENBURG COUNTY, NORTH CAROLINA
GOVERNMENT-WIDE REVENUES
Fiscal Year
Operating
Capital
Ended
Charges for
Grants and
Grants and
Property
Other Taxes
and
Investment
June 30,
Services
Contributions
Contributions
Taxes
Distributions
Earnings
2004
$ 118,676,323
$ 157,802,215
$ 1,367,318
$ 619,049,923
$ 186,483,992
2003
107,933,572
170,789,264
1,330,408
588,320,009
162,832,148
2002
101,250,093
179,062,472
779,440
582,211,378
165,107,904
$
5,486,088
Total
Miscellaneous
$
Revenues
1,729,319
$ 1,090,595,178
7,268,133
1,510,628
1,039,984,162
14,381,221
2,416,925
1,045,209,433
TABLE 1
MECKLENBURG COUNTY, NORTH CAROLINA
GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION
LAST TEN FISCAL YEARS
Fiscal Year
Ended
June 30,
Customer
Satisfaction
and
Management
Administrative
Services
2004
$ 4,625,991
2003
3,956,605
Management
Services
2002
41,515,761
Policy
Development
and
Management
Support Services
Financial
Services
Land Use
and
Environmental
Services
$ 37,377,104
$ 5,343,695
35,273,845
5,117,608
Financial
Services
6,321,146
Corporate
Support Services
Customer
Satisfaction
and
Communications
906,866
Regulatory
and
Operational
Services
Community
Services
Detention
and
Court Support
Services
Health
and
Human Services
Business
Partners
Capital
Outlay
Debt
Service
Totals
$46,404,385
$ 53,533,773
$ 81,525,311
$ 283,596,456
$ 367,724,761
$ 239,833,978
$ 168,817,051
$ 1,288,782,505
44,749,116
54,995,316
79,871,042
272,272,635
362,949,449
260,268,835
147,852,242
1,267,306,693
Land Use
and
Environmental
Services
50,947,149
Community
Services
Community
Services
29,274,220
Public Safety
and Court
Support Services
Detention
and
Court Support
Services
74,084,024
Health
and
Human Services
Health
and
Human Services
269,324,679
Government
Relations
Business
Partners
346,405,695
Capital
Outlay
303,927,878
Debt
Service
141,061,309
Capital
Outlay
Totals
1,263,768,727
Totals
2001
73,261,713
14,222,443
50,048,795
30,473,013
75,970,041
265,241,702
366,111,997
281,353,028
$1,156,682,732
2000
59,601,506
14,193,760
36,244,290
27,764,016
70,522,123
243,535,524
338,317,242
157,205,470
947,383,931
1999
58,520,130
13,618,487
33,135,349
24,605,570
67,079,637
225,327,910
289,491,785
131,057,532
842,836,400
1998
54,329,235
12,686,596
29,044,651
22,431,706
62,865,560
211,283,110
244,283,179
179,704,378
816,628,415
1997
58,495,864
10,510,880
27,656,754
20,038,532
56,940,759
192,806,163
234,538,787
139,472,325
740,460,064
1996
49,422,129
9,924,393
23,561,198
18,447,595
46,330,341
183,841,587
234,049,717
137,331,293
702,908,253
Protection
of Persons
and Property
Community
Services
Public
Works
34,152,254
24,775,820
6,101,051
General
Government
1995
16,548,212
Supportive
Court
Services
35,521,914
Notes:
Includes General, Special Revenue and Capital Projects Funds.
Mecklenburg County used a core business classification for years 1996 to 2001.
Beginning with 2002 the County moved to the core services classification.
Human
Services
183,594,583
Education
139,640,201
NonDepartmental
40,239,419
Capital
Outlay
117,164,961
Debt
Service
62,619,907
Totals
660,358,322
TABLE 2
MECKLENBURG COUNTY, NORTH CAROLINA
GENERAL GOVERNMENTAL REVENUES BY SOURCE (1)
LAST TEN FISCAL YEARS
Fiscal Year
Ended
June 30,
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
Licenses
and
Permits
Taxes and
Assessments
$
800,127,057
748,064,987
714,969,998
616,359,231
582,035,583
493,980,193
446,426,815
432,740,794
414,271,538
396,903,559
$
20,810,125
18,202,231
18,834,892
19,246,088
17,911,117
16,086,280
14,180,230
10,541,464
10,015,956
9,264,126
Charges
for
Services
Intergovernmental
$
159,880,651
168,436,791
191,005,441
205,805,746
200,148,524
150,512,935
144,991,571
136,080,071
126,768,449
106,727,829
Notes:
(1) Includes General, Special Revenue and Capital Projects Funds.
(2) Includes interest earned on investments, administrative charges and other.
$
80,854,424
75,453,642
70,044,344
53,645,929
53,282,317
53,270,060
47,794,890
34,906,649
39,711,614
34,023,129
Other (2)
$
16,241,240
22,750,554
24,160,316
39,205,721
31,607,381
29,603,413
34,584,128
33,775,374
23,197,209
21,780,150
Totals
$ 1,077,913,497
1,032,908,205
1,019,014,991
934,262,715
884,984,922
743,452,881
687,977,634
648,044,352
613,964,766
568,698,793
TABLE 3
MECKLENBURG COUNTY, NORTH CAROLINA
GENERAL FUND TAX REVENUES BY SOURCE
LAST TEN FISCAL YEARS
Fiscal Year
Ended
June 30,
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
General
Property (1)
Total
$
756,571,980
697,387,330
674,644,847
580,017,267
542,710,974
485,125,596
435,738,263
422,688,823
413,071,538
395,618,559
$
602,098,773
575,430,471
555,919,512
460,936,248
434,642,910
385,203,274
341,101,301
325,508,369
330,166,397
320,621,331
Sales
$
151,396,232
119,021,487
115,807,548
115,997,743
107,109,132
98,800,802
93,423,992
96,021,661
81,735,007
72,832,732
Intangibles(2)
$
1,118,174
Room
Occupancy
$
1,230,086
1,174,765
1,189,818
1,333,592
868,039
1,083,285
1,141,433
1,110,417
1,134,921
1,013,256
Vehicle
Rental
$
Notes:
(1) Includes interest on delinquent taxes.
(2) Intangibles tax was repealed and a reimbursement was initiated beginning in fiscal year 1996 and is reported in the
General Fund as Intergovernmental - State Revenue.
1,801,182
1,739,114
1,655,111
1,681,005
-
Other
$
45,707
21,493
72,858
68,679
90,893
38,235
71,537
48,376
35,213
33,066
TABLE 4
MECKLENBURG COUNTY, NORTH CAROLINA
PROPERTY TAX LEVIES, TAX COLLECTIONS AND CREDITS
LAST TEN FISCAL YEARS
Fiscal Year
Ended
June 30,
Percent
of Levy
Collected
Delinquent
Tax
Collections
Tax
Year
2004
2003
600,442,660
97.13
$ 12,288,611
2003
2002
584,218,432
563,710,798
96.49
2002
2001
567,874,819
551,873,811
2001
2000
469,522,916
2000
1999
1999
Total Tax
Levy
$
618,204,112
Current Tax
Collections
$
Total Tax
Collections
612,731,271
99.11
12,296,776
576,007,574
97.18
9,178,893
456,774,995
97.28
440,731,629
429,493,650
1998
392,471,397
1998
1997
1997
Outstanding
Delinquent
Taxes
$
Percent of
Delinquent
Taxes to
Tax Levy
36,932,819
5.97
98.59
34,153,457
5.85
561,052,704
98.80
28,478,381
5.01
8,411,914
465,186,909
99.08
23,146,475
4.93
97.45
8,173,138
437,666,788
99.30
21,676,929
4.92
381,520,070
97.21
7,330,924
388,850,994
99.08
21,200,392
5.40
349,395,228
340,196,430
97.37
6,769,605
346,966,035
99.30
19,733,333
5.65
1996
332,781,981
324,375,218
97.47
5,642,197
330,017,415
99.17
18,737,412
5.63
1996
1995
336,708,024
329,841,306
97.96
5,377,387
335,218,693
99.56
17,092,527
5.08
1995
1994
328,591,611
321,860,507
97.95
4,003,664
325,864,171
99.17
16,089,085
4.90
Notes:
Collections include rebates, but interest on taxes is not included.
Collections received are as of June 30th of the applicable year.
Excludes Law Enforcement Service District.
$
Percent of
Total Tax
Collections
to Tax Levy
TABLE 5
MECKLENBURG COUNTY, NORTH CAROLINA
TAX REVENUE AND TAXES RECEIVABLE
FOR THE YEAR ENDED JUNE 30, 2004
Tax
Year
Fiscal Year
Ended
June 30,
2003
2004
2002
Assessed
Valuation (1)
$
CountyWide Rate
Levy
$
-
$
$ 600,442,660
2003
69,505,170,341
.8397
584,218,432
563,710,798
20,507,634
9,419,005
2001
2002
67,895,358,854
.8397
567,874,819
561,381,050
6,493,769
1,672,075
2000
2001
64,210,268,149
.73
469,522,916
465,390,636
3,079,475
555,630
1999
2000
60,401,969,125
.73
440,731,629
438,538,252
1,416,445
291,076
1998
1999
57,080,405,642 (3)
.685
392,471,397
391,461,632
1,009,765
149,132
1997
1998
47,876,894,849
.73
349,395,228
348,672,339
722,889
1996
1997
45,407,072,470
.73
332,781,981
332,205,602
1995
1996
41,830,623,848
.8050
336,708,024
1994
1995
40,860,606,101
.8050
Writeoffs (2)
-
$17,761,453
-
Less:
Bankruptcies (4)
11,088,629
-
11,088,629
1,053,333
3,768,361
-
3,768,361
736,792
1,787,053
-
1,787,053
1,125,369
-
1,125,369
-
860,633
-
860,633
74,782
-
648,107
388,133
259,974
576,379
54,228
-
522,151
344,416
177,735
336,220,390
487,634
40,902
-
446,732
343,111
103,621
328,591,611
327,378,347
1,213,264
31,834
-
1,181,430
278,075
903,355
4,420,500,149
$ 3,764,959,046
35,507,254
$ 612,731,324
$ 39,189,918
$ 1,353,735
$ 37,836,183
$ 1,790,125
$
Net
Taxes
Receivable
June 30, 2004
$17,761,453
Assessed valuation based on 100% assessment ratio.
Uncollected vehicles tax levy is written off after 2 1/2 years. Uncollected property tax levy is written off after ten years.
Revaluation.
Levy and taxes receivable are shown net of bankruptcies because collection is possible but not likely and cannot be written off for ten years.
$
Taxes
Receivable
June 30, 2004
-
$
-
Collections
and Credits
.7364
Notes:
(1)
(2)
(3)
(4)
$
Taxes
Receivable
July 1, 2003
83,487,630,734 (3)
$
618,204,112
Collections and
Credits to
June 30, 2003
TABLE 6
MECKLENBURG COUNTY, NORTH CAROLINA
ANALYSIS OF CURRENT TAX LEVY
JUNE 30, 2004
Countywide
Original levy:
Property taxed at current
year's rate
Motor vehicles taxed at
current year's rate
Motor vehicles taxed at
prior year's rate
Total
Total Levy
Property
Excluding
Registered
Registered
Motor
Motor
Vehicles
Vehicles
Property
Valuation
Rate
Amount
of Levy
$ 76,939,888,752
$ .7364
$ 566,585,340
3,806,669,944
.7364
28,032,317
-
28,032,317
2,496,544,497
.8397
20,963,484
-
20,963,484
$
-
615,581,141
566,585,340
1,904,026
718,944
1,904,026
718,944
-
2,622,970
2,622,970
-
(11,994,116)
(10,898,076)
(1,096,040)
606,209,995
558,310,234
47,899,761
Uncollected taxes at
June 30, 2004
17,761,453
10,438,237
7,323,216
Current year's taxes
collected
$ 588,448,542
$ 547,871,997
$ 40,576,545
Discoveries:
Prior year taxes
Penalties
Total
Rebates
Total net property valuation
Net levy
Current net levy collection
percentage
83,243,103,193
$ 566,585,340
244,527,605
244,527,605
(1,612,984,577)
Various
48,995,801
$ 81,874,646,221
97.07%
98.13%
84.71%
TABLE 7
MECKLENBURG COUNTY, NORTH CAROLINA
ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY (1)
LAST TEN FISCAL YEARS
(IN MILLIONS)
Fiscal Year
Ended
June 30,
Real
Property
Personal
Property
State
Certifications
2004
$ 67,121.9
$ 12,880.2
$ 3,642.7
2003
53,292.3
12,890.8
2002
51,009.3
2001
Less
Elderly
Exemptions
$
Total
Assessed
Valuation (2)
(157.2)
$ 83,487.6
3,434.3
(112.3)
69,505.1
12,870.0
4,063.4
(47.4)
67,895.3
48,090.1
12,341.0
3,828.0
(48.9)
64,210.2
2000
44,993.6
11,735.6
3,723.3
(50.6)
60,401.9
1999
42,925.1
10,611.9
3,595.3
(51.9)
57,080.4
1998
34,048.4
10,035.9
3,843.6
(51.0)
47,876.9
1997
33,010.4
8,629.7
3,807.3
(40.3)
45,407.1
1996
30,783.4
7,405.5
3,685.4
(43.7)
41,830.6
1995
30,351.9
7,014.5
3,541.2
(47.0)
40,860.6
Notes:
(1) Assessed valuations are established by the Board of County Commissioners
at 100% of estimated market value for real property and 100% of actual value
for all other property. A revaluation of real property is required by North Carolina General Statutes at least every eight years. Revaluations were completed for fiscal years 2004 and 1999.
(2) Assessed valuations equals estimated actual value, which approximates
market value.
TABLE 8
MECKLENBURG COUNTY, NORTH CAROLINA
PROPERTY TAX RATES PER $100 ASSESSED VALUATION
DIRECT AND OVERLAPPING GOVERNMENTS
LAST TEN FISCAL YEARS
Fiscal Year
Ended
June 30,
Mecklenburg
County
Charlotte
Cornelius
Davidson
$ .7364
$ .420
$ .26
$ .325
$ .280
$ .30
2003
.8397
.467
.29
.355
.312
.32
.29
.30
2002
.8397
.467
.26
.335
.26
.27
.25
.21
2001
.73
.467
.26
.315
.26
.23
.235
.21
2000
.73
.467
.26
.315
.26
.23
.235
.21
1999 (1)
.685
.472
.26
.315
.26
.23
.235
.21
1998
.73
.525
.31
.345
.29
.255
.26
.24
1997
.73
.525
.31
.345
.32
.255
.23
.24
1996
.8050
.428
.25
.235
.32
.16
.135
.19
1995
.8050
.428
.2825
.215
.34
.16
.135
.20
2004 (1)
(1) Revaluation
Source (other than Mecklenburg County): North Carolina Tax Research Division
Huntersville
Matthews
Mint Hill
Pineville
$ .275
$ .30
TABLE 9
MECKLENBURG COUNTY, NORTH CAROLINA
PROPERTY TAX LEVIES - DIRECT AND OVERLAPPING GOVERNMENTS
LAST TEN FISCAL YEARS
Fiscal Year
Ended
June 30,
2004
Mecklenburg
County
$
618,204,211
Charlotte (2)
$
225,997,921
Cornelius
$
6,648,911
Davidson
$
2,987,573
Huntersville
$
9,154,580
Matthews
$
6,509,106
Mint Hill
$
3,874,813
Pineville
$
2,623,262
2003
584,218,432
237,794,566
6,945,258
2,609,484
8,590,399
6,964,701
3,690,644
2,558,546
2002
567,874,819
233,912,755
6,055,480
2,349,932
6,484,401
5,846,635
2,933,058
1,773,488
2001
469,522,916
217,381,551
5,614,044
2,036,051
5,674,391
5,239,681
2,711,709
1,614,560
2000
440,731,629
206,906,214
4,134,734
1,830,268
4,734,381
4,496,288
2,466,078
1,583,987
1999
392,471,397
199,205,489
2,826,410
1,622,929
3,564,829
3,806,270
2,365,107
1,498,292
1998
349,395,228 (1)
182,891,375
2,710,111
1,355,075
2,665,381
3,907,322
2,159,548
1,461,343
1997
332,781,981 (1)
159,040,078
2,496,261
1,157,197
2,358,959
3,503,584
1,849,942
1,384,520
1996
336,708,024 (1)
125,572,586
1,865,666
707,805
1,956,430
2,096,389
1,100,272
1,067,410
1995
328,591,611 (1)
110,830,238
1,191,032
569,527
1,268,863
1,847,608
938,240
1,034,205
(1) Net of bankruptcies.
(2) Does not include levy for downtown special districts.
Source (other than Mecklenburg County): North Carolina Tax Research Division
TABLE 10
MECKLENBURG COUNTY
SCHEDULE OF BONDS PAYABLE
JUNE 30, 2004
Public Improvements Refunding Bonds 1993
Public Improvements 1994
Public Improvements 1996 - Series A
Public Improvements 1996 - Series B
Variable Rate Demand Bonds 1996
Public Improvements 1998A
Public Improvements 1998B
Variable Rate Demand Bonds 1998
Public Improvements 2000A
Public Improvements 2000B
Variable Rate Demand Bonds 2000C
Public Improvements 2000D
Variable Rate Demand Bonds 2000E
Public Improvements 2001A
Variable Rate Demand Bonds 2001B
Refunding 2001C
Public Improvements 2001D
Refunding 2001E
Public Improvements 2002A
Public Improvements 2002B
Variable Rate Demand Bonds 2002C
Public Improvements 2003A
Variable Rate Demand Bonds 2003B
Refunding 2003C
Public Improvement 2004A
Variable Rate Demand Bonds 2004B
Refunding 2004C
Due
Serially
Average
Interest
Original
Balance
Issue Date
To
Rate
Issue
July 1, 2003
October 1, 1993
April 1, 1994
March 1, 1996
March 1, 1996
March 1, 1996
February 1, 1998
February 1, 1998
February 1, 1998
February 1, 2000
February 1, 2000
February 1, 2000
October 1, 2000
October 1, 2000
May 1, 2001
May 1, 2001
May 1, 2001
December 1, 2001
December 1, 2001
August 1, 2002
August 1, 2002
August 1, 2002
February 1, 2003
February 1, 2003
February 1, 2003
February 1, 2004
February 1, 2004
April 1, 2004
2012
2013
2013
2013
2015
2016
2016
2018
2010
2010
2020
2010
2020
2018
2021
2013
2021
2005
2018
2020
2022
2020
2023
2011
2020
2024
2013
4.6630 %
5.4293
4.8623
4.8623
Variable
4.4150
4.4150
Variable
4.9827
4.9827
Variable
4.9303
Variable
4.6868
Variable
4.3714
4.3102
2.4023
3.9499
4.2070
Variable
4.0699
Variable
2.8812
3.4130
Variable
3.0951
$
272,295,000
197,215,000
22,000,000
225,895,000
50,000,000
31,000,000
257,050,000
50,000,000
34,000,000
20,000,000
50,000,000
100,000,000
50,000,000
105,000,000
25,000,000
149,455,000
56,000,000
33,595,000
14,400,000
139,000,000
25,000,000
193,000,000
40,000,000
12,160,000
105,000,000
100,000,000
135,470,000
$ 2,492,535,000
$
149,200,000
2,200,000
15,525,000
158,475,000
50,000,000
24,450,000
202,050,000
50,000,000
23,800,000
14,000,000
50,000,000
88,000,000
50,000,000
100,000,000
25,000,000
140,265,000
53,800,000
16,710,000
14,400,000
139,000,000
25,000,000
193,000,000
40,000,000
11,665,000
$ 1,636,540,000
The bonds are recorded as follows:
Governmental activities
Business-type activities
Sold
$
$
105,000,000
100,000,000
135,470,000
340,470,000
Retired
$ 19,525,000
2,200,000
13,425,000
136,575,000
1,750,000
14,250,000
3,400,000
2,000,000
6,000,000
5,000,000
4,525,000
2,200,000
12,705,000
800,000
3,500,000
1,255,000
$ 229,110,000
Balance
Interest
Paid In
June 30, 2003
Current Year
$
129,675,000
2,100,000
21,900,000
50,000,000
22,700,000
187,800,000
50,000,000
20,400,000
12,000,000
50,000,000
82,000,000
50,000,000
95,000,000
25,000,000
135,740,000
51,600,000
4,005,000
13,600,000
135,500,000
25,000,000
193,000,000
40,000,000
10,410,000
105,000,000
100,000,000
135,470,000
$ 1,747,900,000
$ 1,738,467,066
9,432,934
$ 1,747,900,000
$
7,114,550
118,800
755,700
7,715,300
467,685
1,079,800
8,922,200
478,267
1,190,000
700,000
486,264
4,315,000
494,919
4,640,000
247,494
7,686,513
2,273,600
835,500
539,000
5,645,500
247,493
7,742,500
395,989
516,025
$ 64,608,099
TABLE 11
MECKLENBURG COUNTY, NORTH CAROLINA
SCHEDULE OF CERTIFICATES OF PARTICIPATION PAYABLE
JUNE 30, 2004
Certificates of Participation
2000 Certificates
2001 Certificates
2002 Certificates
2004 Certificates
Issue Date
April 1, 2000
November 1, 2001
August 1, 2002
February 1, 2004
Due Serially
To
2020
2021
2009
2014
Average
Interest
Rate
variable
variable
variable
variable
Original
Issue
Balance
July 1, 2003
$ 25,000,000
29,000,000
5,420,000
18,155,000
$ 77,575,000
$ 21,250,000
27,550,000
5,420,000
$ 54,220,000
Issued
Retired
Balance
June 30,2003
Interest Paid
Current Year
18,155,000
$ 18,155,000
$ 1,250,000
1,450,000
775,000
$ 3,475,000
$ 20,000,000
26,100,000
4,645,000
18,155,000
$ 68,900,000
$
$
$
208,989
266,404
49,596
55,328
580,317
TABLE 12
MECKLENBURG COUNTY, NORTH CAROLINA
RATIO OF NET BONDED DEBT TO ASSESSED VALUATION
AND NET BONDED DEBT PER CAPITA
LAST TEN FISCAL YEARS
Fiscal Year
Ended
June 30,
Population
Estimate
Assessed
Value
$
83,487,630,734
Gross
Bonded Debt
2004
801,137
$
1,747,900,000
2003
773,299
69,505,170,341
1,636,540,000
2002
746,427
67,895,358,854
2001
720,490
2000
Payable from
Enterprise
Fund
$
9,432,938
Net Bonded
Debt
$
Percent of
Net Bonded
Debt to
Assessed Value
Net Bonded
Debt Per
Capita
1,738,467,066
2.07 %
2,170
11,889,196
1,624,650,804
2.34
2,101
1,311,265,000
14,391,837
1,296,873,163
1.91
1,737
64,210,268,149
1,333,610,000
17,061,296
1,316,548,704
2.05
1,827
695,454
60,401,969,125
1,123,385,000
19,334,255
1,104,050,745
1.83
1,588
1999
677,051
57,080,405,642
1,080,980,000
21,527,489
1,059,452,511
1.86
1,565
1998
658,649
47,876,894,849
1,140,955,000
23,855,158
1,117,099,842
2.33
1,696
1997
640,247
45,407,072,470
851,805,000
26,000,496
825,804,504
1.82
1,290
1996
621,845
41,830,623,848
899,095,000
28,143,772
870,951,228
2.08
1,401
1995
603,443
40,860,606,101
638,495,000
49,423,188
589,071,812
1.44
976
TABLE 13
MECKLENBURG COUNTY, NORTH CAROLINA
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
GENERAL OBLIGATION BONDS
FOR THE YEAR ENDED JUNE 30, 2004
Assessed
Valuation (1)
Percent of
Assessed
Valuation to
Countywide
Total
Pro Rata
Share of
Countywide
Debt
Municipalities'
Debt (2)
Total
Overlapping
Debt
$ 1,286,345,892
$ 865,725,000
$ 2,152,070,892
2,700,000
63,857,676
Mecklenburg County:
Charlotte
$ 53,419,154,332
Cornelius
2,539,745,597
3.50
61,157,676
Davidson
914,687,921
1.26
22,025,902
-
22,025,902
Huntersville
3,242,515,718
4.47
78,080,547
-
78,080,547
Matthews
2,192,980,729
3.02
52,807,495
5,850,000
58,657,495
Mint Hill
1,402,202,300
1.93
33,765,364
6,925,000
40,690,364
Pineville
874,420,557
1.20
21,056,254
285,000
21,341,254
8,000,788,012
11.02
192,660,871
Unincorporated
Areas
Countywide Totals
$72,586,495,166
73.59 %
100.00%
$1,747,900,000
-
$881,485,000
Notes:
(1) Provided by N.C. Department of Revenue, Tax Research Division. Includes valuations of classified
registered motor vehicles for which tax notices were issued in accordance with G.S. 105-330.5(a) on
or before December 31, 2002, net of releases made by that date.
(2) Provided by Department of State Treasurer.
192,660,871
$2,629,385,000
TABLE 14
MECKLENBURG COUNTY, NORTH CAROLINA
COMPUTATION OF LEGAL DEBT MARGIN
JUNE 30, 2004
Assessed Value
$ 83,487,630,734
Debt Limit 8 percent of Assessed Value
x.08
Amount of Debt Applicable to Debt Limit:
Total Bonded Debt
Bonds Authorized and Unissued
Total Amount of Debt Applicable to Debt Limit
Legal Debt Margin
6,679,010,459
$ 1,747,900,000
339,300,000
2,087,200,000
$ 4,591,810,459
TABLE 15
MECKLENBURG COUNTY, NORTH CAROLINA
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES
FOR GENERAL OBLIGATION BONDED DEBT (1)
TO TOTAL GENERAL GOVERNMENTAL EXPENDITURES
LAST TEN FISCAL YEARS
Fiscal Year
Ended
June 30,
Principal
Interest
on Bonds
2004
$ 92,128,738
2003
Ratio of Debt
Service to Total
Expenditures
Other
Total Debt
Service
Total
Expenditures (2)
$ 66,494,335
$ 9,489,769
$ 168,112,842
$ 1,288,782,505
13.04
85,933,382
59,115,495
2,803,365
147,852,242
1,267,306,693
11.66
2002
76,781,933
55,746,111
10,580,658
143,108,702
1,263,768,727
11.32
2001
66,105,607
56,274,968
2,563,284
124,943,859
1,156,682,732
10.80
2000
59,401,766
50,781,314
395,269
110,578,349
947,383,931
11.67
1999
57,647,331
53,241,536
546,179
111,435,046
842,836,400
13.22
1998
46,754,662
41,532,081
155,718
88,442,461
816,628,415
10.83
1997
45,146,724
42,525,572
154,729
87,827,025
740,460,064
11.86
1996
35,155,819
30,917,830
53,893
66,127,542
702,908,253
9.41
1995
28,887,827
31,312,709
340,369
60,540,905
660,358,322
9.17
Notes:
(1) General obligation bond debt service reported in the Enterprise Fund has been excluded.
(2) Includes General, Special Revenue, and Capital Projects Funds.
TABLE 16
MECKLENBURG COUNTY, NORTH CAROLINA
SPECIAL ASSESSMENTS BILLINGS AND COLLECTIONS
LAST TEN FISCAL YEARS
Fiscal Year
Ended
June 30,
Special
Assessments
Billings
Special
Assessments
Collected
2004
$ 7,872
$ 1,356
2003
8,230
4,013
2002
10,980
8,024
2001
9,929
4,270
2000
11,584
8,142
1999
16,196
49,065
1998
22,998
59,080
1997
12,932
14,804
1996
13,632
13,520
1995
14,300
25,912
TABLE 17
MECKLENBURG COUNTY, NORTH CAROLINA
DEMOGRAPHIC STATISTICS
LAST TEN YEARS
Year
Population
Per Capita
Income
Median
Age
School
Enrollment
Unemployment
Rate
2004
801,137
N/A
N/A
115,517
5.2%
2003
773,299
23,201
33.4
109,605
5.8
2002
746,427
23,250
33.4
106,192
5.9
2001
720,490
26,684
33.3
103,086
4.1
2000
695,454
21,783
33.1
100,368
2.4
1999
677,051
20,997
34.3
98,542
1.9
1998
658,649
20,099
33.8
95,797
2.4
1997
640,247
18,705
33.6
92,994
2.6
1996
621,845
17,736
33.3
88,854
3.0
1995
603,443
199,656
33.1
85,240
3.1
$
Note (1)
Monthly average - January through June
Sources:
Charlotte Chamber of Commerce
N.C. Office Of State Planning
Charlotte-Mecklenburg Schools
(1)
TABLE 18
MECKLENBURG COUNTY, NORTH CAROLINA
CONSTRUCTION, BANK DEPOSITS AND PROPERTY VALUE
LAST TEN FISCAL YEARS
Fiscal Year
Ended
June 30,
Construction (1)
Non-Residential
Residential
Number of
Value
Number of
Value
Building Permits
(in millions)
Building Permits
(in millions)
Bank
Deposits (1)
(in thousands)
Assessed Valuation (in millions)
Commercial
Residential
Exempt
2004
4,413
1,089
15,114
1,667
N/A
33,998.6
49,646.1
(157.2)
2003
4,300
733
14,327
1,513
59,275,000
28,513.6
41,103.9
(112.3)
2002
4,396
825.6
14,780
1,739.5
37,780,000
28,409.8
39,560.7
(48.4)
2001
4,588
1,648.7
14,171
1,607.4
40,877,291
26,486.1
37,773.1
(48.9)
2000
5,157
1,219.7
14,249
1,601.3
35,814,289
25,115.3
35,337.3
(50.7)
1999
5,119
1,034.9
13,786
1,257.6
26,742,577
23,709.6
33,422.7
(51.9)
1998
5,314
836.2
10,321
1,036.1
23,204,399
20,870.0
27,057.9
(51.0)
1997
3,052
675.5
10,998
1,036.9
11,937,049
20,206.0
25,241.4
(40.3)
1996
3,262
689.8
9,096
863.1
12,084,378
18,483.0
23,391.3
(43.7)
1995
3,645
643.8
8,408
760.6
9,356,772
18,325.4
22,582.2
(47.0)
Notes: (1) Provided by Chamber of Commerce.
TABLE 19
MECKLENBURG COUNTY, NORTH CAROLINA
PRINCIPAL TAXPAYERS
JUNE 30, 2004
Firm
Enterprise
Assessed
Valuation
$ 2,211,213,206
Percentage
of Total
Assessed
Valuation
Duke Energy
Utility
Bank of America
Financial Services
1,108,871,866
1.33
Wachovia Corporation
Financial Services
874,200,135
1.05
BellSouth Telecommunications
Utility
582,628,205
0.70
Bissell
Real Estate
466,332,542
0.56
USAirways, Incorporated
Transportation
419,748,379
0.50
Childress Klein
Property Management and Development
355,280,604
0.43
Piedmont Natural Gas Company, Inc.
Utility
286,311,421
0.34
Carolina Stadium/Panthers
Football Stadium
193,886,977
0.23
Time Warner
Cable TV/Communication
190,502,646
0.23
$6,688,975,981
2.65 %
8.01 %
TABLE 20
MECKLENBURG COUNTY, NORTH CAROLINA
MISCELLANEOUS STATISTICS
JUNE 30, 2004
Date of Establishment
Form of Government
Area
Miles of Streets:
City-maintained
State-maintained
Non-maintained
Fire Protection:
Volunteer fire stations
Volunteer firemen
Fire Marshall and Assistants
Police:
Service Areas
Officers
Patrol Units
Public Education:
Schools
Teachers (full-time)
Students
Building Permits Issued
Recreation and Culture:
Parks and Greenways
Golf Courses
Historic Sites
Libraries
Total volumes
Employees:
Full-time Permanent
Other
Sources: Mecklenburg County
City of Charlotte
Charlotte-Mecklenburg Schools
1762
County Manager
541 square miles
2,104
1,115
44
20
630
9
6
1,479
817
142
7,354
115,517
18,984
123
5
4
23
Approximately 1.7 million
4,092
501