COMPREHENSIVE ANNUAL
FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2003
Vision Statement
VISION STATEMENT
To be the best local government service provider.
MissionMISSION
Statement
STATEMENT
To serve Mecklenburg County residents by helping improve
their lives and community.
Web www.charmeck.org/departments
Address
(select “finance - county”)
Mecklenburg
County COUNTY
MECKLENBURG
NORTH CAROLINA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Fiscal Year Ended June 30, 2003
J. HarryJ. HARRY
Weatherly,
Jr JR.
WEATHERLY,
Director of Finance
PREPARED BY THE FINANCE DEPARTMENT
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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FINANCIAL
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Independent Auditors’ Report
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Management’s Discussion and Analysis
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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 Financial Statements
Required Supplementary Information
Separation Allowance for Law Enforcement Officers – Analysis of
Funding Progress
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Separation Allowance for Law Enforcement Officers – Schedule of
Employer Contributions
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Table of Contents
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Combining and Individual Fund Statements and Schedules
Nonmajor Governmental Funds
Combining Balance Sheet
Combining Statement of Revenues, Expenditures and Changes
in Fund Balances
Special Revenue Funds
Combining Balance Sheet
Combining Schedule of Revenues, Expenditures and Changes
in Fund Balances (Deficits)
Capital Projects Funds
Combining Balance Sheet
Combining Schedule of Revenues, Expenditures and Changes
in Fund Balances (Deficits)
Other Financial Schedules
Agency Fiduciary Funds
Combining Schedule of Net Assets
Grants Project Fund
Schedule of Revenues, Expenditures and
Changes in Fund Balance – Budget and Actual
Other Budgetary Schedules
Special Revenue Funds
Schedule of Revenues, Expenditures and Changes in
Fund Balance – Budget and Actual – Capital Reserve
Schedule of Revenues, Expenditures and Changes in
Fund Balance – Budget and Actual – Storm Water
Management
Schedule of Revenues, Expenditures and Changes in
Fund Balance – Budget and Actual – Law
Enforcement Service District
Schedule of Revenues, Expenditures and Changes in
Fund Balance – Budget and Actual – Transit
One-half Cent Sales Tax
Schedule of Revenues, Expenditures and Changes in
Fund Balance – Budget and Actual – Additional
One-half Cent Sales Tax
Schedule of Revenues, Expenditures and Changes in
Fund Balance – Budget and Actual – Scrap Tire
Disposal
Schedule of Revenues, Expenditures and Changes in
Fund Balance – Budget and Actual – Discarded
White Goods
Schedule of Revenues, Expenditures and Changes in
Fund Balance – Budget and Actual – Sheriff
Schedule of Revenues, Expenditures and Changes in
Fund Balance – Budget and Actual – Register of
Deeds
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Table of Contents
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Schedule of Revenues, Expenditures and Changes in
Fund Balance – Budget and Actual – 911 Public
Safety Emergency Telephone Service
Proprietary Fund
Schedule of Revenues, Expenses and Changes in Net
Assets – Budget and Actual – Solid Waste
Operating Fund
Landfill Construction, Final Development and Postclosure
Reserve Fund - Schedule of Revenues and
Expenditures – Budget and Actual
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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
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
INTRODUCTION provides background and general information about the County.
Letter of Transmittal
Mecklenburg County
J. Harry Weatherly, Jr.
Director of Finance
September 30, 2003
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,
2003 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, 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 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.
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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; supportive court; and general
administration.
The County represents a primary government as defined by Governmental Accounting Standards Board Statement
14. 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 in Statement 14.
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 s atisfaction, 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 will be integrated into the budget
and financial reporting process over the next three years.
The following accomplishments highlight some of the activities County departments have pursued toward
Mecklenburg Vision 2015:
•
Land Use and Environmenta l Service:
Ø Processed and recycled over 700,000 cubic yards of debris from the December 2002 ice storm, a major
disaster for the County.
Ø Implemented the Flood Tracking System to warn emergency response agencies of impending flood
conditions.
Ø Completed property audits that generated $810 million in additional assessed valuation.
• Health and Human Services:
Ø Area Mental Health implemented the Assertive Community Treatment Program to serve individuals with
severe and persistent mental illness in the community as an alternative to institutionalization.
Ø Area Mental Health continued to out source services to contracted agencies thereby saving County dollars.
Ø The Health Department implemented a bioterrorism laboratory and continues implementation of Medical
Online Surveillance Tool (MOST), a system to monitor the daily flow of information such as school
absenteeism, emergency room visits, Poison Control and Urgent Care Center visits to identify early
community healthcare issues.
Ø The Public Health Pest Management program responded to the increased volume of calls regarding dead
birds and West Nile virus, which resulted in 61 confirmed cases of the virus.
Ø Social Services, through the Work First program, has placed 8,194 individuals in the community workforce.
Ø The Senior Nutrition Program expanded the frozen meal program that provides five frozen meals weekly to
homebound seniors to help them remain independent in their homes.
Ø Social Services implemented the Multiple Response System and Team Decision-Making, both of which
reflect a philosophy of greater family and community engagement, to encourage the exploration of options
other than taking children into social services custody, and reduced the number of children in Youth and
Family Services custody by 12%.
Ø The Mecklenburg Medical Examiner’s Office became the regional Medical Examiner facility for the five
surrounding counties that were previously serviced by the Chapel Hill Office of Chief Medical Examiner.
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Letter of Transmittal
•
•
Detention and Court Support Services:
Ø Court Services, through the success of the Pretrial Release and Misdemeanor Court programs, has
improved the processing of offenders awaiting trial and reduced the number of offenders needing
incarceration.
Ø Through improvements in the Structured Day and Drug Court Programs, Court Services provided
alternatives to incarceration for felony offenders and continued its success in assisting offenders with
obtaining substance abuse and mental health treatment, as well as job training and placement to help the
participants become productive, positive members of the community.
Ø Construction began on a new 34-courtroom courthouse, to be completed in 2006.
Ø The Sheriff’s Department replaced the outdated mug shot system with an automated Sex Offender
Management System.
Community Services
Ø Park and Recreation opened Ray’s Splash Planet, a 29,000 square-foot indoor water park and completed
the extension of the Stewart Creek/Irwin Creek Greenway to connect Ray’s Splash Planet with Frazer Park
and Seversville Park/Bruns Avenue School.
Ø The Women’s Commission’s focus on domestic violence included implementing Spanish speaking services,
expanding support groups for victims and children of victims, and partnered with other community groups
regarding domestic violence and child welfare.
Economic Factors Affecting Financial Condition
Mecklenburg County is the center of the nation’s fifth largest urban region, with Charlotte, a mid-sized city, as the
largest city. More than 6.7 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 with over 400 foreign firms having 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.
According to Dun and Bradstreet’s 2003 Million Dollar Directory, 687 corporations are headquartered in Mecklenburg
County. Fortune 500 service and industrial companies are represented with over 280 offices in the area, including six
headquartered in the County – Duke Energy, Goodrich, Inc., Nucor, Sonic Automotive, Family Dollar, and SPX. Major
corporations operating within the County include IBM, AT&T, and Travelers Insurance. In 2002, business growth
included approximately 692 new or expanded businesses in the County, creating over 5,600 new jobs and
representing approximately $1.4 billion in capital investments.
The County has experienced the effects of the nation-wide economic slow-down of the past year, but the area has
continued to grow due to the benefit of the banking industry located in the area. The County is the second largest
financial center in the United States, and serves as headquarters for financial institutions with assets of approximately
$970 billion. The County’s continued growth as a leading financial center is attributable to a number of factors.
Among the most important factors are certain State laws permitting branch banking and the location of a branch of
the Federal Reserve Bank in the County.
Bank of America, N.A. and Wachovia Bank, N.A., two of the nation’s five largest banks ranked by assets, are
headquartered in the County. In total, there are 19 banks with over 225 banking offices located in the County. Bank
of America, N.A. is ranked first in the nation in terms of deposits. Many of the banks in the County have international
departments, overseas branches and representati ve 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 located in the County is a branch of the United States Small Business
Administration that is active in arranging loans for smaller businesses.
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Letter of Transmittal
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.
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 textiles, food products, printed
and published material, machinery and chemicals. The County has more than 1200 manufacturing firms that employ
more than 38,000 workers. Tourism has generated numerous jobs, accounting for 11% of the County’s employment.
Numerous events at the Convention Center and sporting events in the area, such as the Carolina Panthers, a
National Football League franchise, bring many visitors to the area.
Until 2003, the County experienced a steady rate of growth, which is expected to continue, but at a slower rate than
previously experienced. During 2003 the County experienced the same slow economic environment affecting the
nation. This was reflected in the 2% drop in the number of commercial construction permits and a 3% drop in the
number of residential construction permits. For the last several years, the County has experienced an unemployment
rate less than the national average. Although the unemployment rate matched the national average for most of
calendar year 2002, as of June 30, 2003, the unemployment rate for the County has dropped below the national
average of 6.2% to 5.7%, where it is expected to remain for 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 in
the slow economy that the nation has been experiencing. Capital needs are assessed on a three-year and ten-year
basis every two years. Requests go to the Citizens’ Capital Budget Advisory Committee (CCBAC), an elevenmember 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. Beginning with calendar year 2003, the Board voted to schedule bond sales for
January of each year to meet the cash needs of the capital projects. No bond referendum was held during fiscal
2003.
During fiscal 2003 the County issued $346.4 million of general obligation bonds for school and community college
facilities, park and recreation facilities, land acquis ition, and library and court facilities, as well as $65.0 million
variable rate bonds for school facilities, and $12.2 million of bonds used to refund Series 1986 and 1993 bonds.
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 n ot exceed
the benefits thereof; and 2) the evaluation of costs and benefits requires estimates and judgments 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 January with the Board’s Strategic Planning
Conference, which is followed by workshop sessions for each departmental budget unit manager to assist in
developing the line-item budget for each unit. Budget discussions for each core service occur between January and
March. 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 core service 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
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Letter of Transmittal
accordance with statutory regulations. During the budget year, the County Manager or 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. 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.
The County’s system of cash flow forecasting and close monitoring of progressive investment policies has resulted in
maximized investment yields, considering the depressed nature of the investment market. This year’s investment
earnings represented 1.03 cents on the property tax rate with the average interest on the investment portfolio yielding
1.79% at year-end. The average yields on six- and twelve-month Treasury constant maturities were .98% and 1.09%,
respectively, at year-end. The County’s average return earned during the year was 1.75% which exceeded the 1.51%
average return of the Public Investor 10 Bill Index published by Government Finance Officers’ Association of the
United States and Canada for the year.
Risk Management
The County participates in a self-funded risk-financing program. This program is administered by the City of
Charlotte’s Risk Management Division. The County will finance its own loss exposures up to the first $1,000,000 per
occurrence per year with a separate reserve held in trust for the County and with current appropriations in the County
budget except for property exposures over $100,000 and Workers’ Compensation exposures over $400,000 which
are insured. Exposures between $500,000 and $1,000,000 per occurrence are covered by accumulated reserves
held in a separate trust fund. As of June 30, 2003, reserves specifically designated for Mecklenburg County were
sufficient to accommodate the actuarially determined liabilities. Automobile and general liability exposures above the
coverage provided through the trust are covered by excess insurance policies in amounts up to $20 million.
Other Relevant Information
The financial statements have been prepared in compliance with applicable General Statutes of North Carolina and
generally accepted accounting principles for governmental entities. Deloitte & Touche LLP, an independent public
accounting firm, audited the statements and the supplemental schedules and their opinion precedes the basic
financial statements. The audit was designed to meet the requirements of the Federal Single Audit Amendment of
1996, as well as the State Single Audit Act, N.C.G.S.159-34. The reports required by these Acts are issued
separately.
On April 1, 2003, the Government Finance Officer’s Association (GFOA) awarded its Certificate of Achievement for
Excellence in Financial Reporting for the Comprehensive Annual Financial Report of Mecklenburg County for the
year ended June 30, 2002. The 2002 Report was judged to conform to the high standards of financial reporting put
forth by GFOA. The certificate is valid for a period of one year. The County has been awarded the certificate for the
past 28 years. We believe the Report for fiscal year 2003 continues to substantially conform to those standards and
this Report is being submitted to GFOA for the certificate program. GFOA also presented Mecklenburg County with
its Distinguished Budget Presentation Award for the annual budget for fiscal year 2003. To receive this award, a
governmental unit must publish a budget document that meets program criteria. This award is also valid for one year
only.
v
GFOA Certificate
of Achievement
GFOA CERTIFICATE
OF ACHIEVEMENT
MECKLENBURG COUNTY
To be awarded a Certificate of
Achievement, a government must
publish an easily readable and
efficiently organized comprehensive annual financial report.
This report must satisfy both
generally accepted accounting
principles and applicable legal
requirements.
A Certificate of Achievement is
valid for a period of one year
only. We believe our current
comprehensive annual financial report continues to meet
the Certificate of Achievement
Programʼs requirements and we
are submitting it to GFOA to determine its eligibility for another
certificate.
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Five Year Trends
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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 2003 dollar. The Implicit Price
Deflator Index (base year = 1996), 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 56.6% of all County revenue in fiscal year 2003 came from property taxes, an increase of 1.3% from
fiscal year 2002. Since the tax rate did not increase for fiscal year 2003, the increase is the result of the growth in the
tax base. The increase in fiscal 2002 was the result of an increase of 10.73 cents in the tax rate coupled with growth
in the tax base. No change in tax rate occurred between fiscal years 2001 and 2000, so the increase in property tax
revenue reflects growth in assessed valuations.
Intergovernmental revenue represents funds received from federal and state sources, excluding federal and state
benefits paid directly to County social services clients by the State. For fiscal year 2003, federal and state sources
provided 16.3% of County revenues, a decrease from the 18.7% provided by these sources in fiscal year 2002. The
decrease in fiscal year 2003 reflects the general reduction of grant awards available in the current economy. The
County continues to actively seek available grant funds, but grants sources have declined in the past two years.
Sales tax revenues follow the economic trends in retail sales and spending by County residents. While sales tax
revenue increased in fiscal years 2000 and 2001, the substantial increase in fiscal year 2000 reflects the
implementation of the one-half cent sales tax restricted for transit development. 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, comprising 15.3% of total County revenues, as
compared to 14.1% for fiscal year 2002. Included in the 2003 sales tax revenue is $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.
Charges for services provided 7.2% of revenues for fiscal year 2003, as compared to 6.9% in fiscal year 2002 and
5.7% in fiscal year 2001. These revenues have remained relatively constant over the five-year period, reflecting
primarily increases for inflation.
Interest on investments for fiscal year 2003 dropped significantly from fiscal year 2002, continuing the downward
trend that began in fiscal year 2001. Most of the decline resulted from falling investment rates although some can be
attributed to a change in portfolio balances. Interest on investments contributed .7% of total County revenues for
fiscal year 2003 as compared to 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.
Expenditures on a per capita basis for this core service increased 14% over the prior year. For fiscal year 2003,
expenditures on a per capita basis were $5 as compared to $4 in fiscal year 2002.
LAND USE AND ENVIRONMENTAL SERVICES
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 many
services in the core area expanded to meet the needs of the growing population and the change was reflected in the
spending per capita, which increased approximately 6.5% over the five-year period that ended June 30, 2002. For
fiscal year 2003, the cost per capita was $71 as compared to $69 in fiscal year 2002.
COMMUNITY SERVICES
Community Services consists of Park and Recreation, Elections, Cooperative Extension, Women’s Commission and
Community Development and the Library. During the past five years there has been a 6.9% inflation-adjusted
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Five Year Trends
increase in per capita expenditures in this core service, primarily as a result of increased costs due to opening
several new parks during the period. The per capita expenditures for Community Services remained level at $71 for
fiscal years 2003 and 2002.
HEALTH AND HUMAN SERVICES
County operations for Social Services, Public Health and Mental Health are the primary departments in this core
service. The County’s commitment to meet the human services needs of its residents is reflected in expenditures for
this core service. Since 1999 inflation-adjusted expenditures in Health and Human Services have increased 13.6%,
yet the change on a per capita basis has been negligible - $354 per capita in 1999 and $352 per capita in 2003. 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 2003 would have been $887.
DETENTION AND COURT SUPPORT SERVICES
Court Services, Medical Examiner and Sheriff’s Office, including jail operations, are included in this core service area.
Detention and Court Support Services expenditures on a per capita basis increased gradually from 1999 to 2002.
Most of this increase is the result of operational and personnel costs associated with the jail. For fiscal year 2003, the
first full year of operation for the expansion of Jail Central, which added 900 beds when it opened in April 2002, the
expenditures per capita increased 4% to $103.
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. Expenditures per capita for fiscal year
2003 were $46, as compared to $53 in fiscal year 2002, reflecting the concerted effort to reduce costs in this period of
tight revenue.
FINANCIAL SERVICES
Resource management is the focus of this core service consisting of Finance and Tax Collection. Expenditures per
capita were $7 for fiscal year 2003, a 14% decrease from fiscal year 2002.
BUSINESS PARTNERS
Allocations and appropriations to other governmental entities and for joint governmental activities are included in this
core service. Primary recipients of County funding are the Charlotte-Mecklenburg Board of Education, Central
Piedmont Community College, WTVI, and the Mecklenburg Emergency Medical Services Agency, a component unit
of the County. Fiscal year 2003 funding to the Charlotte-Mecklenburg Board of Education of $270 million for current
operations and capital outlay represents 74% of total Business Partners expenditures, which is consistent with prior
years. The increase in the per capita expenditures for Business Partners for fiscal year 1999 through fiscal year 2003
is due to providing additional support to the schools. Business Partners inflation adjusted expenditures for fis cal
years 2003 and 2002 were $362.9 million and 363.8 million, respectively, resulting in per capita amounts of $469 for
fiscal year 2003 and $480 for fiscal year 2002.
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 and Central Piedmont Community College, has increased as new debt has been
added, primarily to meet the construction needs of the rapidly growing school system. Principal and interest on
school related debt represents 55% of debt service. Debt service expenditures per capita were $191 for fiscal year
2003 and $189 for fiscal year 2002.
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:
Ø Assessing and assigning priorities to the needs of the County, and establishing programs and
services to meet those needs.
Ø Adopting an annual balanced budget to fund County programs and services.
Ø Establishing the annual County property tax rate.
Ø Appointing officials, including members of County boards and commissions, and certain County employees.
Ø Regulating land use and zoning outside the jurisdiction of municipalities.
Ø Enacting policies concerning the operation of the County.
Ø Enacting local ordinances.
Ø 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 a Deputy County Manager, two General Managers, an Executive Assistant, two Assistants to the
County Manager, and 22 Department Heads. Major duties of the County Manager include:
Ø Supervising and coordinating activities of County Departments.
Ø Implementing all orders and policies of the Board.
Ø Attending all Board meetings and making recommendations on appropriate matters of business.
Ø Recommending an annual budget and advising the Board on the fi nancial condition of the County.
Ø Presenting, with recommendations, the Capital Improvements Program.
Ø Appointing various employees.
Ø 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 4,053
full time employees and 457 part-time or seasonal employees at June 30, 2003, who are distributed between the core
service areas as follows:
Exhibit 1
NUMBER OF EMPLOYEES
Mecklenburg County
June 30,
2003
Customer Satisfaction and Management
Full-Time
Other
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
34
9
87
260
82
551
23
388
360
1,075
28
1,663
17
4,053
457
4,510
xi
Facts and Information
FISCAL CONTROL
Once the annual budget is adopted each June by the Board of County Commissioners, 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.
Exhibit 2
TAX RATE
The tax rate is set each year by the Board of County Commissioners when
the budget ordinance is adopted. Exhibit 2 presents the County's tax rates
since fiscal year 1999. The last revaluation was completed in 1998 for fiscal
year 1999. 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.
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 2003, the County's total exempted or reduced
assessments were approximately $6.1 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
Iredell
Mecklenburg
New Hanover
Orange
Randolph
Rowan
Union
Wake
Valuation
$ 9,339,502,625
10,869,982,673
17,094,857,291
11,505,730,561
11,577,580,118
12,824,467,148
9,371,378,845
19,474,899,616
24,475,349,337
10,126,721,337
31,894,214,558
11,062,717,828
69,004,302,709
16,988,994,437
9,475,373,019
8,333,819,683
8,113,653,722
10,245,798,517
65,697,496,871
Levy
$ 46,096,653
64,404,647
101,417,557
64,432,091
57,309,022
118,626,321
49,668,307
146,385,301
168,346,225
92,993,682
215,030,755
51,994,774
579,429,129
117,224,062
78,577,678
40,002,334
51,521,701
48,206,482
370,533,882
Revaluation
2001
1999
2002
1999
1999
1996
2001
2001
2001
1997
1996
1999
1998
1999
2001
2001
1999
2000
2000
Tax Rate
$.50
.5925
.59
.56
.495
.925
.53
.753
.692
.9183
.6742
.47
.8397
.69
.83
.48
.635
.4705
.564
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, 2002, net of releases made by that date.
Source: N. C. Department of Revenue, Tax Research Division
xii
Facts and Information
COUNTY SERVICES
The services Mecklenburg 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
promote 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 delive ry 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.
DETENTION AND COURT SUPPORT SERVICES
The departments within this core service area are Court 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 pre-trial facility with 1,904 beds. The Work Release Restitution Center, also located in downtown
Charlotte, has 150 beds.
xiii
Facts and Information
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, Cooperative Extension, Community
Development, 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 Mecklenburg 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 424,000 registered voters in the County. Cooperative Extension provides numerous courses and programs to
improve the lives of County residents, while the Women’s Commission provides guidance, counseling, education and
vocational assistance to promote the well-being and productiveness of women.
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 approxim ately 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.
Exhibit 4
Mecklenburg County is the most populous county in the State.
Exhibit 4 shows the consistent growth pattern of the County
during the past five years. Mecklenburg 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. Mecklenburg's combination of temperature and humidity
makes the County well suited for commerce and industry.
Mecklenburg County Population
2003
2002
2001
2000
1999
773,299
746,427
720,490
695,454
677,051
Source: Charlotte Chamber of Commerce
GENERAL ECONOMIC INDICATORS
Mecklenburg County's economy has remained sound during the past five years. 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. The EBI is an accepted economic indicator of income after mandatory taxes have been subtracted.
xiv
Facts and Information
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.
This change, plus the effect of the economy on gross retail sales, resulted in the lower amount reported for year 2002
in Exhibit 6. Data for the year ended June 30, 2003 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. For fiscal year 2003, current assessments
totaled $69.6 billion. During fiscal years 1999 through 2003, the total general tax levy increased from $392.5 million
to $584.2 million. The levy was adjusted 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 CharlotteMecklenburg residents are comparable to other areas of the nation with similar demographics.
Exhibit 7
Exhibit 8
xv
Facts and Information
Exhibit 9 lists principal taxpayers in Mecklenburg County and shows the wide representation of industrial categories
in the County.
Exhibit 9
MECKLENBURG COUNTY
PRINCIPAL TAXPAYERS
Fiscal Year 2002-03
Firm
Duke Energy
Bank of America
Wachovia Corporation
BellSouth Telecommunications
USAirways, Incorporated
Childress Klein
Piedmont Natural Gas
Carolina Stadium/Panthers
General Tire
Charlotte Gateway
Type of
Enterprise
Assessed
Value
Tax Levy
Utility
Financial Services
Financial Services
Utility
Transportation
Property Management
and Development
Utility
Football Stadium
Manufacturing
Residential
$2,037,549,565
799,647,210
779,378,607
538,364,830
512,625,023
$18,847,930
6,714,685
7,076,991
4,731,619
4,323,253
343,150,993
254,211,332
173,714,733
144,050,076
129,232,180
2,887,660
2,168,619
1,458,683
1,209,331
1,085,163
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. Thirty-two miles of the 67-mile I-485 outerbelt freeway being built
around the inside perimeter of Mecklenburg 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.
Charlotte-Douglas International Airport is ranked 14th nationally in operations and 21st 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
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 11.8 million
passengers boarded flights at the airport in 2002, while over 176,000 tons of domestic and international cargo were
handled in 2002. Expansion of the airport continues with the acquisition of land for future construction of another
runway as well as construction to expand the international concourse from eight to thirteen gates. Financial
responsibility for airport operations rests with the City of Charlotte.
xvi
Facts and Information
EMPLOYMENT AND THE ECONOMY
Types of industries in Mecklenburg County are highlighted by Exhibit 10, which presents businesses headquartered
in the County, as compiled by Dun and Bradstreet’s Million Dollar Directory, 2003.
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 the calendar years 1999 through 2002 and the
average of the first six months of calendar year 2003. 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 were created in Mecklenburg County during each of the last five years,
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, according to 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*
Solectron Technology Inc.
Sprint PCS
T. J. Maxx
United Parcel Service
Vanguard Group
Yellow Freight System
*Headquartered in the County.
Source: Charlotte Chamber of Commerce.
xviii
Facts and Information
The employment environment, along with population growth, continues to fuel the construction industry. Exhibit 13
displays the number and value 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 $1.5 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 2003 was $216,282.
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
Number
Building
Permits
Residential
19,770
19,174
18,397
19,323
17,845
$1,564.1
1,640.2
1,641.0
1,313.7
1,362.5
2002
2001
2000
1999
1998
Number of Units
NonResidential
$ 814.4
1,104.5
1,670.6
1,044.2
1,005.3
Total
$2,378.5
2,744.7
3,311.6
2,357.9
2,367.8
Source: Land Use and Environmental Services. Compiled by
Charlotte Chamber of Commerce
Calendar
Year
SingleFamily
MultiFamily
Total
2002
2001
2000
1999
1998
9,638
10,061
9,398
9,755
8,663
3,851
4,718
5,370
4,210
4,206
13,489
14,779
14,768
13,965
12,869
Source: Land Use and Environmental Services.
Compiled by Charlotte Chamber of Commerce
EDUCATION
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
Average Daily Memberships (ADM)
Number
ADM
Year
K-5
6-8 9-12 Special
Total Enrolled Enroll.
2002-03
2001-02
2000-01
1999-00
1998-99
53,060
52,259
51,583
50,819
49,904
25,919
24,373
23,469
22,338
21,428
26,185
25,687
24,126
23,186
23,575
2,266
2,163
2,115
2,194
2,121
107,430
104,482
101,293
98,537
97,028
109,605
106,192
103,086
100,368
98,542
98.0
98.4
98.3
98.2
98.5
Number
of
Schools
140
144
143
143
142
Source: Charlotte-Mecklenburg Board of Education
A nine-member Board of Education is the policy-making authority. Board members are elected to four-year
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 2002-2003 school budget was approximately $862 million: 54% provided by the State,
31% by the County (mostly through property taxes), 7% by the federal government and 8% 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 2002-2003 budget included a $265 million allocation from the County for
operational expenses of the public school system. The Board of Education must present its current expense and
capital outlay budget requests to the County by May 30 each year. The Board holds hearings and an amount is
appropriated in the County’s operating budget for the school budget by July 1.
xix
Facts and Information
For the 2002-2003 school year, the Board of Education operated 85 elementary schools, 26 middle schools and 17
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 3,055, a program for children of the homeless and
two alternative schools for students benefiting from additional attention received in a smaller classroom environment.
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 2003 current dollars using the
Implicit Price Deflator Index.
Exhibit 16
Mecklenburg County also has ten charter schools. 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 2002-2003 school year, the portion of local
education funds budgeted to be redirected to the charter schools operating in the County was $3,038,203 for ten
charter schools with an enrollment of 1668. In addition, approximately 60 private and parochial schools, with an
enrollment of over 17,000 students, serve the County.
Over 80% of students graduating from the County’s public schools continue their formal education. Colleges and
universities in Mecklenburg 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
Fall 2003
Fall 2002
Students
Faculty1
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
Training Center and at various other sites across the County. CPCC received $15,623,225 from the County in fiscal
year 2003. County funding is used for operating expenses, salary supplements for professional and clerical
xx
Facts and Information
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.
MEDICAL
The medical facilities located in the County and their respective licensed bed capacities are shown in Exhibit 18.
Exhibit 18
Hospital
Carolinas Medical Center1
Presbyterian Hospital2
Carolinas Medical – Mercy1
Presbyterian Orthopedic Hospital2
Charlotte Institute of Rehabilitation1
Carolinas Medical –University1
Carolinas Medical – Pineville1
Presbyterian – Matthews 2
Behavioral Health Center – CMC – Randolph1
Mercy Horizons 1
1
Part of Carolinas HealthCare System.
2
Part of Novant Health, Inc.
Number of
Licensed Beds
795
581
305
168
133
130
109
102
66
11
Source: Charlotte Chamber of Commerce.
In addition, as of August, 2003, 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 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 Mecklenburg County the
most popular tourist destination in the State.
Mecklenburg County offers practically any sport or recreational endeavor 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,
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, that opened in 2002. 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 a stadium built in 1996 for which the County and City of Charlotte jointly
provided a center-city site and agreed to a land lease. Richardson Sports financed and constructed the privately
xxi
Facts and Information
owned 73,250 seat Ericsson Stadium. 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
Despite the current economic slowdown, Mecklenburg County continues to grow. Although the rate has slowed,
people and businesses continue to relocate to the area. The climate, diversity of industries, cultural opportunities and
recreational activities create a desirable environment for the residents of the County.
xxii
Mecklenburg
County COUNTY
MECKLENBURG
NORTH CAROLINA
Board of County Commissioners
Tom Cox, Jr.
Chairman
Dan Ramirez
Vice Chairman
H. Parks Helms
At-Large
Jim Puckett
District 1
Norman A. Mitchell, Sr.
District 2
Valerie C. Woodard
District 3
Dumont Clarke
District 4
Ruth Samuelson
District 5
Bill James
District 6
Financial Officers
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
Ana M. Cutajar, Grants Administrator
Alan R. McBrayer, Investment Officer
Carolyn Bailey, Administrative Officer
Harry L. Jones, Sr.
County Manager
J. Harry Weatherly, Jr.
Director of Finance
xxiii
Organization
Chart CHART
ORGANIZATION
MECKLENBURG COUNTY
xxiv
Davidson
Cornelius
Huntersville
Charlotte
Pineville
Mint
Hill
Matthews
iv
FINANCIAL
MECKLENBURG COUNTY
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, 2003 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
Ø
Ø
Ø
Ø
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, 2003, the Statement of Activities reflects a use of net assets in the amount of
$111.2 million primarily due to capital projects spending.
The governmental funds total fund balance increased $182.9 million from the prior year total ending fund balance
of $256.3 million as a result of new capital project funds. Of the $439.2 million of governmental funds total fund
balance 73.3% is available for future years’ spending as unreserved fund balance.
The unreserved fund balance of the General Fund at June 30, 2003 is $94.1 million, which represents 10% of
total General Fund expenditures or 1.20 months of operating balances, a very adequate balance. Of the
unreserved fund balance, $4.9 million is designated for specific projects and $89.2 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 b y 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,
either increasing or decreasing.
The Statement of Net Assets (Deficit) and the Statement of Activities divide the County’s operations into three types
of activities:
Ø
Governmental activities – those activities supported primarily by taxes and intergovernmental revenues. The
following eight core service areas com prise 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.
Ø 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.
Ø 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:
Ø
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; eleven 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 twenty-seven 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 2003A Public Improvement Capital Projects Fund are presented individually on the
Governmental Funds Balance Sheet and Statement of Revenues, Expenditures, and Changes in Fund Balances
(Deficit), because both meet 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.
Ø
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.
Ø
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 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, 2003 and 2002:
NET ASSETS (DEFICIT)
(in thousands)
Governmental
Business-type
Activities
Activities
2003
2002
2003
2002
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
$
Total Primary
Government
2003
2002
549,394
_594,386
1,143,780
$ 360,059
561,439
921,498
$ 14,367
38,764
53,131
$ 13,918
38,888
52,806
$ 563,761
_633,150
1,196,911
$ 373,977
600,327
974,304
81,061
76,590
421
399
81,482
76,990
95,548
1,615,440
1,792,049
88,629
1,291,637
1,456,856
2,695
12,029
15,145
2,736
13,392
16,527
98,243
1,627,469
1,807,194
91,365
1,305,028
1,473,383
26,493
2,772
_8,721
24,238
12,041
103,563
135,219
(849,065)
152,263
90,060
(741,402)
$ 37,986
$ 36,279
Net Assets (Deficit)
Invested in capital assets,
net of related debt
77,070
128,025
Restricted
132,447
90,060
Unrestricted (Deficit)
(857,786)
(753,443)
Total Net
Assets (Deficit)
$ (648,269) $ (535,358)
$ (610,283) $ (499,059)
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 $1.067 billion at June 30, 2003 and totalled $846 million at June 30,
2002, is recorded in long-term liabilities with no offsetting capital assets recorded, as the assets are owned by the
agencies. The proceeds from this debt are used by the agencies to acquire or construct capital assets. The effect of
this accounting is to distort net assets of the County, creating a large deficit in unreserved net assets, which has
increased due to the increase in the associated debt. Net Assets of $103.6 million at June 30, 2003 and $152.3
million at June 30, 2002 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 $135.2 million at June 30, 2003 and $90.1 million at June 30, 2002 are reserved by law for specific
purposes. 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, 2003, 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
2003
2002
2003
2002
REVENUES
Program Revenues:
Charges for services
$ 96,798
91,922
Operating grants and
contributions
170,004
179,063
Capital grants and
Contributions
1,330
779
General Revenues:
Property taxes
588,320
582,211
Sales taxes
158,309
143,534
Other taxes
4,523
21,574
Investment Income
7,055
13,735
Other
1,658 ____2,226
TOTAL REVENUES
1,027,997 1,035,044
EXPENSES
Program Expenses:
Customer Satisfaction
And Management
Services
4,030
3,284
Administrative Services
38,725
39,634
Financial Services
3,256
16,384
Land Use and Environmental Services
43,002
42,826
Community Services
66,612
53,995
Detention and Court
Support Services
88,349
82,703
Health and Human
Services
272,484
269,593
Business Partners
562,530
567,335
Interest expense
61,920
55,236
Solid Waste Operations
____-___
TOTAL EXPENSES
1,140,908
1,130,990
INCREASE (DECREASE)
IN NET ASSETS (DEFICIT) (112,911)
(95,946)
NET ASSETS (DEFICIT)
– Beginning of year
(535,358)
(439,412)
NET ASSETS (DEFICIT)
– End of year
$ (648,269)
$ (535,358)
$ 11,136
Total Primary
Government
2003
2002
9,328
107,934
101,250
785
-
170,789
179,062
-
-
1,330
779
213
__(147)
11,987
646
__191
10,165
588,320
158,309
4,523
7,268
1,511
1,039,984
582,211
143,534
21,574
14,381
___2,417
1,045,209
-
-
4,030
38,725
3,256
3,284
39,634
16,384
-
-
43,002
66,612
42,826
53,995
-
-
88,349
82,703
-
272,484
562,530
61,920
__10,279
1,151,187
269,593
567,335
55,236
___9,132
1,140,122
10,279
10,279
1,708
36,279
$ 37,987
9,132
9,132
1,033
(111,203)
(94,913)
35,246
(499,079)
(404,166)
$ 36,279
$ (610,283)
$ (499,079)
GOVERNMENTAL-TYPE ACTIVITIES
Program revenues covered 23.5% of County expenses at June 30, 2003 and 24.8% at June 30, 2002, while general
revenues covered 66.6% and 69.6%, respectively, of expenses. The remaining 9.9% at June 30, 2003 and 5.6% at
June 30, 2002, represents a use of net assets. The increased use of net assets for the year ended June 30, 2003
results primarily from revenues not reaching the level expected for the year. Taxes and assessment revenues
increased only 1% from the prior year. This increase reflects the effect of assessment increases only, as the tax rate
did not change from fiscal 2002. The County continued its strategy to secure a maximum amount of grant funds
provided by state and federal agencies yet grant revenues declined, resulting in the County covering only 15.0% of its
governmental operations with grant dollars as compared to 16.4% in fiscal 2002. Charges to us ers of County
6
Management’s Discussion and Analysis
services generated revenues that supported 7.4% of County governmental operations for fiscal 2003 and 8.4% for
fiscal 2002. Of the $96.8 million generated from governmental activities charges for services in fiscal 2003 and the
$91.9 million generated in fiscal 2002, 46% and 44%, respectively, came from Land Use and Environmental Services,
primarily code enforcement and licenses and permits, as a result of fee increases for both years.
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 1.1% to the
primary government’s total revenue in fiscal 2003 and 1.0% in fiscal 2002. Income of $1.7 million for fiscal 2003 and
$1.0 million for fiscal 2002 was retained by the activity for its future operations.
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 ava ilable 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.
At June 30, 2003, the governmental funds reported combined ending fund balances of $439.3 million, an increase of
$182.9 million over 2002 that results primarily from the new bond funds. Of the combined ending fund balances,
approximately $321.8 million as compared to $133.2 million for fiscal 2002, is unreserved fund balance, which is
available for future year’s spending. The County has designated $234.9 million of the unreserved fund balance for
specific uses in the next fiscal year, leaving $86.9 million undesignated and available for appropriation in the
subsequent fiscal year. The remaining $117.4 million is reserved for encumbrances ($31.7 million) and reserved by
State Statute ($85.7 million). The General Fund, which is the County’s primary operating fund, had a fund balance of
$165.8 million, of which $12.0 million is reserved for encumbrances, $59.7 million is reserved by State statute, and
$94.1 million is unreserved. Of the General Fund’s unreserved fund balance, $9.3 million is designated for particular
purposes and $84.8 million is undesignated. The General Fund used $12.2 of fund balance as a result of total
revenues not meeting budget by $20.4 million, and expenditures exceeded revenues in spite of concerted effort by all
County departments to reduce spending, which is reflected in total expenditures being $54.4 million less than budget.
Revenues for governmental funds, excluding bond fund proceeds of the Capital Projects Funds, increased $13.9
million, or 1.4% over fiscal 2002:
• The 3% increase in property taxes resulted from growth in the assessed valuation base as the tax rate
remained constant at 83.97 cent per $100 of assessed valuation. For 2003, current year collections
represented 96.5% of the current year levy, while total tax collections represented 98.6% of the current
year’s tax levy. This is down slightly from the 98.8% total collection rate in fiscal 2002, primarily as a
result of the tight economic environment.
• Intergovernmental revenues continued to decline this
Exhibit 1
year, dropping 11.8% from fiscal 2002, as a result of
Grant Programs
the State discontinuing certain reimbursements, the
Program
Revenue
completion of several grant programs, and the general
Category
Number
(Millions)
drop is grant amounts awarded. State and federal grant
funds support 174 service programs of varying size
Social Services
59
$ 93.6
and complexity to help accommodate service needs of
Mental Health
40
24.1
County residents while minimizing local costs. Two
Health
32
7.1
programs provide State assistance to counties for
Other
043
29.8
school capital outlay needs. Grant programs are
Total
174
$154.6
summarized in Exhibit 1.
• Total sales tax revenues for the County were $158.3
million, an increase of $14.8 million over fiscal 2002.
7
Management’s Discussion and Analysis
•
•
Sales tax revenues include the one-half cent sales tax for transit of $27.7 million that is recorded to a
special revenue fund. The sales tax revenue also includes $12.0 million of additional one-half cent sales
tax authorized by the State in January, 2003 to partially offset the loss of State reimbursements. The
County has designated the new one-half cent sales tax revenue for special purposes, so it is reported as a
Special Revenue Fund.
Charges for Services increased 7.7% from the prior year due to rate increases for code enforcement as the
construction environment has slowed slight from the prior year as reflected by the 2% drop in construction
permits.
Interest earned on investments dropped $6.7 million from the prior year as rates on investments dropped
due to the impact of the economic situation on the investment market. The County follows sound
investment practices and strives to maximize invested balances.
The composition of the County’s revenue dollar, excluding proceeds from bonds issued, is illustrated in Exhibit 2.
Exhibit 2
57.1%
Revenue Sources – Fiscal Year 2003
Property taxes, penalties and interest (57.1%)
Sales tax (15.3%)
1.8%
Intergovernmental revenue (16.3%)
Charges for services (7.2%)
16.3%
Licenses and permits (1.8%)
Other (1.6%)
Interest earned on investments (0.7%)
1.6%
0.7%
7.2%
15.3%
Governmental funds expenditures, exclusive of Capital Projects, increased $14 million (1.4%) over those of last year.
Exhibit 3 graphically illustrates the County’s expenditure dollar.
Exhibit 3
Expenditures by Core Service – Fiscal Year 2003
14.6%
Business Partners (35.7%)
Health and Human Services (26.8%)
Debt Service (14.6%)
Detention and Court Support Services (7.8%)
Financial Services (.5%)
Community Services (5.4%)
Land Use and Environmental Services (4.4%)
Administrative Services (3.5%)
Capital Outlay (0.9%)
Customer Satisfaction and Management (0.4%)
26.8%
35.7%
7.8%
0.9%
5.4%
4.4%
0.5%
0.4%
3.5%
Business Partners is primarily current e xpenditures for schools as well as the County’s contribution to the Emergency
Medical Assistance Agency and other outside agencies. Business Partners increased $4.7 million (1.3%) from the
prior year. Expenditures for education were $270 million for the Charlotte Mecklenburg Schools and $15.6 million for
Central Piedmont Community College. Increases for both entities, $3 million and $1.4 million, respectively, were to
address growth in enrollment.
Debt service increased $6.8 million (4.8%) from the prior year. The payment of principal and interest on debt issued
for school capital needs represents 54.6% of total debt service, an increase of 1.7% over the prior year reflecting the
increase in debt for school needs.
Detention and Court Support Services expenditures increased 7.8% over the prior year as this was the first full year
of operation of the new 900 bed jail addition, which opened at the end of the last fiscal year.
8
Management’s Discussion and Analysis
Expenditures for Land Use and Environmental Services, including Storm Water Services, declined $6.2 million from
the prior year. Code Enforcement experienced a slow Spring due to the unusually wet weather and the slower
construction economy. Storm Water Services expenditures decreased with the completion of the several flood plain
buyout projects at the end of fiscal 2002.
For fiscal 2003, capital projects expenditures totaled $251.0 million as compared to $296.3 million in fiscal 2002.
More than half of each year’s expenditures were for construction, renovations and improvements to school facilities.
The drop in expenditures between years reflects the completion in fiscal 2002 of the 900-bed expansion of Jail
Central and the opening of two new schools in August, 2002. Funding for capital projects is supplied by bond sales,
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.
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 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 of County Commissioners. 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
amounts from external sources, primarily Federal and State grants; and 3) increases in appropriations that become
necessary to maintain services. At the time the County adopted the fiscal year 2003 budget, the State of North
Carolina was experiencing a major revenue shortfall, which it anticipated would continue into fiscal 2003 and,
therefore, proposed eliminating from the State budget reimbursements due counties and municipalities. Mecklenburg
County “escrowed” these amounts, totaling $24.7 million, in restricted contingency for the fiscal year 2003 budget
pending a decision by the State. In July, when the State formally adopted its budget and cancelled the
reimbursements, the County reduced the budget by the $24.7 million and eliminated the associated spending. The
remainder of the overall budget net decrease to revenues of $17.6 million is $6.8 million increase to
intergovernmental revenues, primarily from federal and state sources, and $.4 million increase to other revenues from
miscellaneous funds received.
Property tax collections fell $6.2 million below budget due to a slower collection rate effected by the economy and the
increase in bankruptcies. General Fund sales tax revenue fell $3.7 million below budget as a result of lower than
expected sales tax growth which is also due to the sluggish economy. Inte rgovernmental revenues from the State
were less than budget due to reduced County spending that resulted in reduced reimbursements for Social Services
and Area Mental Health. Interest income was also less than budgeted because of the low interest rates and rates of
return offered by the investment market.
Significant efforts to control spending existed throughout fiscal year 2003 to cope with the continued downturn in the
economy and the State’s decision to not fund $24.7 million of revenues due to the County, as mentioned above.
Departments strived to reduce costs in all areas and a hiring freeze existed for the entire year.
CAPITAL ASSETS
The County’s investment in capital assets, net of accumulated depreciation, for governmental and business-type
activities at June 30, 2003 totals $633.2 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
9
Management’s Discussion and Analysis
purchased. The investment in capital assets, net of accumulated depreciation, increased 5.9% from last year for
governmental activities while the business-type activities investment in capital assets, net of accumulated
depreciation, increased minimally. The increase in governmental activities assets results from the acquisition of land
for future use totaling $23.6 million, increases to construction in progress totaling $22.2 million, and various furniture,
equipment and vehicle purchases totaling $6.6 million. Governmental activities asset reductions of $5.4 million
resulted from the normal disposal of worn-out items. The minimal change in business-type activities (enterprise fund)
is the result of equipment purchases for the solid waste operation being offset by depreciation expense.
CAPITAL ASSETS, NET OF ACCUMULATED DEPRECIATION
(in thousands)
Governmental
Business-type
Activities
Activities
2003
2002
2003
2002
Description
Land
Construction in progress
Land Improvements
Buildings and Improvements
Vehicles and Heavy Equipment
Furniture, Machinery and
Equipment
Total
Total
2003
2002
$284,940
64,812
5,751
223,563
6,146
$262,467
42,616
4,544
232,650
7,406
$28,067
48
3,006
6,064
1,569
$28,063
2,491
6,473
1,861
$313,007
64,860
8,757
229,627
7,715
$290,530
42,616
7,035
239,123
9,267
9,175
$594,387
_11,756
$561,439
____10
$38,764
$38,888
__9,185
$633,151
_11,756
$600,327
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. At June 30, 2003
and 2002, general obligation bonds consisted of:
Description
Public Improvement Bonds
GENERAL OBLIGATION BONDS
(in thousands)
Governmental
Business-type
Activities
Activities
2003
2002
2003
2002
$1,624,650
$1,296,873
$11,889
$14,392
Total
2003
2002
$1,636,540
$1,311,265
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 va luation and debt service as a percentage of the operational budget.
Exhibit 4 shows the County’s net per capita outstanding bonded debt to be $2,102, a 21% increase from the prior
year reflecting the more than $327 million increase in debt from the prior year, but well below the cap of $3,600. The
County’s outstanding debt is 2.34% of assessed valuation, well below the 8% of assessed valuation legal debt limit of
over $5.6 billion. See Exhibit 5.
Exhibit 4
Bonded Debt Outstanding per Capita
10
Exhibit 5
Percent of Net Bonded Debt
To Assessed Value
Management’s Discussion and Analysis
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.
The County issued $153.4 million in fixed rate general obligation bonds in July, 2002: $14.4 million Public
Improvement Bonds, for parking facilities, and $139.0 million, for school, court, and park and recreation facilities.
Bond interest rates are 3.949% and 4.207%, respectively. The County also sold $25.0 million of variable rate bonds
to finance school facilities. In January, 2003 the County issued $193.0 million of fixed rate general obligation bonds
for school, court, library, and park and recreation facilities, $40.0 million variable rate bonds for schools, and $12.2
million of refunding bonds to refinance $11.96 million of 1993 general obligation bonds and $.695 million of 1986
general obligation bonds. This refinancing will save the County approximately $95,000 annually in debt service costs
for eight years. This is a total savings of $.7 million, at net present value.
OUTLOOK FOR THE NEXT YEAR
The Board of County Commissioners approved a $1.058 billion annual budget for fiscal year 2004 that cuts many
services and lowers the tax rate from 83.97 cents per $100 of assessed valuation to 73.64 cents per $100 assessed
valuation. The new budget reflects a $4 million increase from the final, amended 2002-2003 budget.
The fiscal year 2004 budget includes a tax rollback of approximately $22 million to account for the property
revaluation that occurred during fiscal year 2003 as well as an additional $25 million rollback to offset the revenue
expected from the one-half cent sales tax that was levied beginning in January, 2003. Intergovernmental revenues,
fees and charges, and other sources are expected to contribute $418.9 million to the overall budget.
Considering the County’s growing population and the growth in needs of its citizens in the current economic
environment, the Board of County Commissioners 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 2004.
County services were reduced $1.8 million from the final amended fiscal 2003 budget and 343 positions were
eliminated. The funding for park and recreation summer programs was eliminated, the funding to WTVI was
substantially reduced, and the funding to the Charlotte-Mecklenburg Schools remains at the same level as fiscal
2003. Some of the cost savings has been reallocated to cover the $14.3 million increase in debt service for fiscal
2004.
Fiscal year 2003 challenged County services and staff because of reduced resources. Fiscal year 2004 will require
even more creativity by County staff to provide services to meet the increasing needs of a growing community with
diminished resources.
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.
11
A-1
MECKLENBURG COUNTY, NORTH CAROLINA
STATEMENT OF NET ASSETS (DEFICIT)
JUNE 30, 2003
Component Units
Primary Government
Governmental
Business-type
Activities
Activities
Public Library
Mecklenburg
Mecklenburg
of Charlotte and
Emergency
County Alcoholic
Mecklenburg
Medical Services
Beverage
County
Agency
Control Board
5,851,696
$
Total
ASSETS
Cash and investments
Receivables, net
Due from other governmental agencies
Advances to other government agencies
Prepaid expenses
$
437,559,190
$ 12,414,381
$ 449,973,571
107,045,274
1,612,888
108,658,162
4,308,076
-
Inventories
51,832
Restricted assets
-
Deferred charges
429,039
339,644
-
$
4,308,076
2,197,255
3,593,457
266,307
181,156
-
-
$
183,811
353,701
100,524
4,597,469
18,957
4,192
51,832
-
-
339,644
-
-
4,355,527
-
429,039
-
-
-
Capital assets
Land
Construction in progress
284,939,527
28,066,849
313,006,376
11,251,992
-
4,453,067
64,812,393
48,410
64,860,803
6,050,970
-
177,500
Other capital assets, net of
accumulated depreciation
TOTAL ASSETS
244,634,444
10,649,062
255,283,506
28,410,493
4,353,453
10,225,001
1,143,779,775
53,131,234
1,196,911,009
48,714,529
14,080,286
23,831,713
77,462,715
420,696
77,883,411
629,099
1,278,273
5,038,317
LIABILITIES
Accounts payable and other
accrued liabilities
Deferred revenue
3,597,465
-
3,597,465
-
-
-
Long-term liabilities
Due within one year
Due in more than one year
TOTAL LIABILITIES
95,548,453
2,694,752
98,243,205
1,694,367
1,615,440,028
12,029,105
1,627,469,133
3,034,566
742,336
1,792,048,661
15,144,553
1,807,193,214
5,358,032
2,020,609
6,416,621
77,069,836
26,493,191
103,563,027
43,256,018
4,353,453
13,477,264
-
119,768
1,258,536
NET ASSETS
Invested in capital assets, net of
related debt
Restricted
for Capital projects
90,814,245
339,644
91,153,889
by law for specific purposes
41,632,718
2,432,377
44,065,095
Unrestricted (deficit)
TOTAL NET ASSETS (DEFICIT)
(857,785,685)
8,721,469
(849,064,216)
$ (648,268,886)
$ 37,986,681
$ (610,282,205)
The accompanying notes are an integral part of this statement.
211,804
(111,325)
$
43,356,497
-
1,412,605
7,706,224
2,525,223
$ 12,059,677
$ 17,415,092
A-2
MECKLENBURG COUNTY, NORTH CAROLINA
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2003
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
$
Component Units
Public Library of Charlotte and
Mecklenburg County
Mecklenburg Emergency Medical
Services Agency
Mecklenburg County Alcoholic
Beverage Control Board
Total Component Units
4,030,103
38,725,174
3,256,165
43,001,664
66,611,979
88,349,286
272,484,306
562,530,240
$
646,439
1,279,185
512,201
44,582,852
3,629,118
20,577,110
22,600,618
2,970,368
$
9,810
1,188,587
4,558,000
1,774,897
7,340,394
133,775,239
21,357,179
Capital
Grants and
Contributions
$
1,200,785
129,623
-
34,545,455
27,373,405
1,140,907,777
96,797,891
170,004,106
10,279,190
11,135,681
785,158
$
1,151,186,967
$ 107,933,572
$ 170,789,264
$ 1,330,408
$
28,893,521
$
$
$ 4,305,423
Business-type activities
Solid Waste Enterprise Fund
Total Primary Government
Charges for
Services
Expenses
Operating
Grants and
Contributions
Net (Expense) Revenue and Changes in Net Assets
Primary Government
Component Units
22,387,716
$
51,012,858
102,294,095
2,078,987
11,725,787
$
50,381,780
64,186,554
987,599
-
$
987,599
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
Transfer from (to) other funds
Total General Revenues
Change in Net Assets
Net Assets (Deficit), beginning of year
Net Assets (Deficit), end of year
1,330,408
-
$ 4,305,423
Governmental
Activities
$
(3,373,854)
(36,257,402)
(2,743,964)
7,339,973
(61,078,341)
(60,431,782)
(116,108,449)
(538,202,693)
(34,545,455)
(27,373,405)
(872,775,372)
(872,775,372)
Business-type
Activities
$
-
1,641,649
1,641,649
Public Library
of Charlotte and
Mecklenburg
County
Total
$
(3,373,854)
(36,257,402)
(2,743,964)
7,339,973
(61,078,341)
(60,431,782)
(116,108,449)
(538,202,693)
(34,545,455)
(27,373,405)
(872,775,372)
1,641,649
(871,133,723)
-
-
-
-
-
-
-
-
-
576,929,663
11,390,346
158,308,798
944,802
3,578,548
7,054,650
1,510,628
147,437
759,864,872
(112,910,500)
(535,358,386)
$ (648,268,886)
The accompanying notes are an integral part of this statement.
213,483
(147,437)
66,046
1,707,695
36,278,986
$ 37,986,681
576,929,663
11,390,346
158,308,798
944,802
3,578,548
7,268,133
1,510,628
759,930,918
(111,202,805)
(499,079,400)
$ (610,282,205)
$
-
Mecklenburg
Emergency
Medical Services
Agency
$
-
Mecklenburg
County Alcoholic
Beverage
Control Board
$
-
-
-
-
-
-
-
-
-
-
-
-
(21,521,512)
(21,521,512)
(10,661,929)
(10,661,929)
28,894
171,100
24,631
597,465
25,024,979
25,224,973
3,703,461
39,653,036
$ 43,356,497
11,893,907
12,516,003
1,854,074
10,205,603
$ 12,059,677
(631,078)
(631,078)
30,859
147,844
178,703
(452,375)
17,867,467
$ 17,415,092
A-3
MECKLENBURG COUNTY, NORTH CAROLINA
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2003
2003A Public
Improvement
Nonmajor
Total
Capital Projects
Governmental
Governmental
Fund
Funds
Funds
General
ASSETS
Cash and investments
$ 159,227,170
Interest receivable
Accounts receivable
Accounts receivable - clinics
Taxes receivable
Less allowance for uncollectible taxes
141,663,168
-
54,409,616
41,784
Inventory
$
437,559,190
30,763
1,607,104
21,680,972
76,132,372
679,531
-
488,894
36,369,267
-
(143,000)
(7,743,000)
502,463
4,308,076
414,461
Due from other funds
$ 136,668,852
35,880,373
(7,600,000)
Advances to other governmental agencies
TOTAL ASSETS
$
1,576,341
-
3,391,152
2,651,458
-
-
51,832
-
-
$ 247,290,782
$
145,096,104
$
$
11,057,236
679,531
2,651,458
51,832
$ 159,228,944
551,615,830
LIABILITIES AND FUND BALANCES
Liabilities
Accounts payable and accrued liabilities
50,092,982
Due to other funds
Deferred revenue
Total Liabilities
31,405,455
$
16,312,497
77,462,715
-
2,651,458
2,651,458
-
843,814
32,249,269
19,807,769
112,363,442
81,498,437
11,057,236
Reserved for encumbrances
11,978,650
10,399,979
9,310,627
31,689,256
Reserved by State Statute
59,731,407
3,432,936
22,560,092
85,724,435
Fund Balances
Unreserved, reported in
General Fund
94,082,288
Special Revenue Funds
-
Capital Projects Funds
-
Total Fund Balances
-
-
-
165,792,345
94,082,288
20,866,532
20,866,532
120,205,953
86,683,924
206,889,877
134,038,868
139,421,175
439,252,388
145,096,104
$ 159,228,944
TOTAL LIABILITIES AND
FUND BALANCES
$ 247,290,782
$
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.
594,386,364
Other long term assets are not available for current year
expenditures and, therefore, deferred in the funds.
29,080,543
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.
(1,710,988,181)
$
(648,268,886)
A-4
MECKLENBURG COUNTY, NORTH CAROLINA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2003
2003A Public
Improvement
Nonmajor
Total
Capital Projects
Governmental
Governmental
Fund
Funds
Funds
General
REVENUES
Taxes
$
697,387,330
$
-
$
-
$
697,387,330
Law Enforcement Service District Taxes
-
-
11,390,346
11,390,346
Transit One-Half Cent Sales Tax
-
-
27,272,168
27,272,168
-
12,015,143
Additional One-Half Cent Sales Tax
-
Licenses and permits
18,202,231
Intergovernmental
-
12,015,143
-
18,202,231
149,567,107
-
18,869,684
168,436,791
65,081,832
-
10,371,810
75,453,642
Interest earned on investments
6,939,949
-
114,701
7,054,650
Administrative charges
3,827,673
-
Other
7,051,075
-
4,817,356
11,868,431
948,057,197
-
84,851,208
1,032,908,405
Charges for services
Total Revenues
-
3,827,673
EXPENDITURES
Current
Customer Satisfaction and Management
Administrative Services
Financial Services
Land Use and Environmental Services
3,956,605
-
-
3,956,605
35,273,845
-
-
35,273,845
5,117,608
-
37,348,077
-
-
5,117,608
7,401,039
Community Services
54,995,316
-
Detention and Court Support Services
79,480,748
-
Health and Human Services
272,272,635
-
Business Partners
323,291,291
-
39,658,158
44,749,116
-
54,995,316
390,294
79,871,042
-
272,272,635
362,949,449
Debt Service
Principal payments
84,580,539
-
1,352,843
85,933,382
Interest and fiscal charges
61,261,392
-
657,468
61,918,860
Capital Outlay
-
Total Expenditures
957,578,056
DEFICIENCY OF REVENUES UNDER EXPENDITURES
(9,520,859)
58,961,132
201,307,703
260,268,835
58,961,132
250,767,505
1,267,306,693
(58,961,132)
(165,916,297)
(234,398,288)
OTHER FINANCING SOURCES (USES)
Transfers in
-
Transfers out
(2,920,658)
Refunding bonds issued
Payment to refunded bond escrow agent
3,068,095
-
(2,920,658)
12,160,000
-
-
12,160,000
-
-
(13,145,339)
Bond and other debt issues
1,248,923
Total Other Financing Sources (Uses)
3,068,095
(13,145,339)
Capitalized lease
Premium on bonds issued
-
193,000,000
223,820,000
-
416,820,000
104,260
-
104,260
-
1,248,923
(2,657,074)
193,000,000
226,992,355
417,335,281
NET CHANGE IN FUND BALANCES
(12,177,933)
134,038,868
61,076,058
182,936,993
FUND BALANCES -BEGINNING OF YEAR
177,970,278
FUND BALANCES -END OF YEAR
$
165,792,345
$ 134,038,868
78,345,117
$
The accompanying notes are an integral part of this statement.
139,421,175
256,315,395
$
439,252,388
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, 2003
Net change in fund balances - total governmental funds
$
182,936,993
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.
52,417,134
Depreciation expense is reported in the Statement of Activities, but not in the fund
statements.
(17,348,473)
Loss on disposal of assets is reported in the Statement of Activities, but not in
the fund statements.
(2,121,755)
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
(428,980,000)
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
(679,646)
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.
(104,260)
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.
100,582,003
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.
1,499,192
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.
(1,111,688)
Change in net assets of governmental activities
The accompanying notes are an integral part of this statement.
$ (112,910,500)
A-6
MECKLENBURG COUNTY, NORTH CAROLINA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL - GENERAL FUND
FOR THE YEAR ENDED JUNE 30, 2003
Variance from
Budgeted Amounts
Actual
Final BudgetPositive/(Negative)
Original
Final
Amounts
REVENUES
Taxes
$ 571,646,799
$ 571,646,799
$ 560,666,246
General property - prior
General property - current
7,250,000
7,250,000
12,002,685
Interest on delinquent taxes
1,750,000
1,750,000
2,761,540
122,700,000
122,700,000
119,021,487
Room occupancy
1,000,000
1,000,000
1,174,765
174,765
Vehicle rental
1,600,000
1,600,000
1,739,114
139,114
70,000
70,000
21,493
(48,507)
706,016,799
706,016,799
697,387,330
(8,629,469)
Sales
Other
Total Taxes
$
(10,980,553)
4,752,685
1,011,540
(3,678,513)
Licenses and permits
Business licenses
175,000
175,000
217,929
Inspection permits
19,358,750
19,385,749
17,864,219
Marriage licenses
Total Licenses and permits
83,000
83,000
120,083
19,616,750
19,643,749
18,202,231
42,929
(1,521,530)
37,083
(1,441,518)
Intergovernmental
Federal
84,807,306
90,336,876
93,393,636
3,056,760
State
85,654,137
60,060,917
51,137,090
(8,923,827)
Local
Total Intergovernmental
5,807,444
5,960,961
5,036,381
(924,580)
176,268,887
156,358,754
149,567,107
(6,791,647)
Charges for services
Customer Satisfaction and Management
Administrative Services
4,385,896
Financial Services
Land Use and Environmental Services
Community Services
851,475
330,099
627,666
738,381
496,898
16,137,838
14,464,278
16,374,241
(521,376)
(241,483)
1,909,963
2,385,715
2,512,511
2,583,726
71,215
Detention and Court Support Services
20,212,732
20,288,348
20,423,265
134,917
Health and Human Services
18,256,565
21,983,356
21,955,295
(28,061)
150,000
3,650,000
2,918,308
(731,692)
Business Partners
Total Charges for services
Interest earned on investments
Administrative charges
62,156,412
64,488,349
65,081,832
11,640,000
11,640,000
6,939,949
593,483
3,827,673
3,827,673
3,827,673
1,130,418
1,190,418
1,418,282
227,864
829,299
829,849
1,216,348
386,499
4,517,149
4,436,164
4,416,445
(19,719)
6,476,866
6,456,431
7,051,075
594,644
986,003,387
968,431,755
948,057,197
(4,700,051)
-
Other
Rental
Sale of properties
Miscellaneous
Total Other
Total Revenues
(Continued)
The accompanying notes are an integral part of this statement.
(20,374,558)
A-6
MECKLENBURG COUNTY, NORTH CAROLINA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL - GENERAL FUND
FOR THE YEAR ENDED JUNE 30, 2003
(CONTINUED)
Variance from
Budgeted Amounts
Original
Final
Actual
Final Budget-
Amounts
Positive/(Negative)
EXPENDITURES
Current
Customer Satisfaction and Management
County Commissioners
$
Manager's Office
Public Service and Information
368,120
$
371,902
2,965,525
3,226,485
$
286,351
$
(85,551)
2,784,997
(441,488)
925,086
1,017,233
885,257
(131,976)
4,258,731
4,615,620
3,956,605
(659,015)
Internal Audit
466,053
467,241
450,286
(16,955)
County Attorney
558,230
523,824
519,950
(3,874)
4,063,418
4,240,848
3,403,842
(837,006)
13,640,642
13,301,300
13,301,229
(71)
1,436,748
1,014,008
1,013,947
(61)
General Services
11,472,925
11,060,061
11,059,941
(120)
Nondepartmental
22,819,696
6,696,413
5,524,650
(1,171,763)
54,457,712
37,303,695
35,273,845
(2,029,850)
2,200,790
2,206,730
2,092,151
(114,579)
Principal retirement - bonds and loans
37,874,142
38,362,642
38,361,153
(1,489)
Interest and fiscal charges
25,396,663
26,536,163
26,030,402
(505,761)
Total Customer Satisfaction and Management
Administrative Services
Human Resources
Information Services and Technology
Real Estate Services
Total Administrative Services
Financial Services
Finance
Debt Service
Payment to City of Charlotte
Tax Collection
Total Financial Services
685,535
685,535
685,535
3,603,499
3,614,389
3,025,457
(588,932)
-
69,760,629
71,405,459
70,194,698
(1,210,761)
Land Use and Environmental Services
Code Administration
21,586,089
23,551,634
22,476,931
(1,074,703)
Property Assessment and Land Records
8,030,806
7,081,127
5,969,567
(1,111,560)
Air Quality
2,951,904
2,824,648
1,702,699
(1,121,949)
Environmental Health
3,010,990
3,484,867
2,719,165
(765,702)
Water and Land Resource
1,764,859
1,764,005
1,611,388
(152,617)
Register of Deeds
2,875,235
3,197,959
2,868,327
(329,632)
40,219,883
41,904,240
37,348,077
(4,556,163)
Public Libraries
24,352,345
24,434,515
24,405,879
(28,636)
Park and Recreation
29,797,696
29,878,907
25,598,199
(4,280,708)
Total Land Use and Environmental Services
Community Services
Cooperative Extension Service
525,534
826,896
619,907
(206,989)
Elections
2,677,100
2,708,392
2,549,260
(159,132)
Women's Commission
1,652,413
1,840,746
1,537,272
(303,474)
339,131
339,923
284,799
(55,124)
59,344,219
60,029,379
54,995,316
(5,034,063)
7,932,440
7,962,992
6,657,117
(1,305,875)
744,626
747,794
716,425
(31,369)
78,953,893
79,267,273
72,107,206
(7,160,067)
87,630,959
87,978,059
79,480,748
(8,497,311)
Community Development
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, 2003
(CONCLUDED)
Variance from
Budgeted Amounts
Original
Final
Actual
Final Budget-
Amounts
Positive/(Negative)
Health and Human Services
Veterans Services
$
412,985
$
431,267
$
423,569
$
(7,698)
Public Health
Public Health Services
Public Health-CHS Contract
Community Health
3,853,218
3,845,538
3,233,920
17,970,447
18,565,913
18,565,449
(611,618)
(464)
2,720,707
2,823,269
1,901,024
(922,245)
Mental Health
Infant and Toddler Preschool Services
5,767,256
5,340,484
4,523,190
(817,294)
Child and Adolescent Services
23,547,276
20,050,536
15,198,218
(4,852,318)
Adult Services
20,283,618
21,077,461
18,242,887
(2,834,574)
Centralized Services
12,970,179
15,939,893
14,589,038
(1,350,855)
Developmental Disabilities Services
17,130,605
16,495,558
15,112,112
(1,383,446)
7,287,692
8,021,763
6,377,951
(1,643,812)
Administrative Services
Social Services
9,342,706
11,620,810
9,057,243
(2,563,567)
Grants
Administration
37,148,629
36,643,631
34,358,285
(2,285,346)
Day Care Operations
53,458,168
58,187,071
55,038,109
(3,148,962)
Services for Adults
23,223,831
24,034,028
21,727,187
(2,306,841)
Economic Services
20,538,859
21,118,014
19,468,936
(1,649,078)
Youth and Family Services
35,709,332
36,034,917
34,455,517
(1,579,400)
291,365,508
300,230,153
272,272,635
(27,957,518)
11,640,000
11,640,000
11,640,000
-
449,062
449,062
449,062
-
264,988,951
264,988,951
264,988,951
-
5,000,000
5,000,000
5,000,000
-
38,514,748
38,516,748
38,516,482
Total Health and Human Services
Business Partners
Emergency Medical Services
City-County Departments
Board of Education:
Current
Capital Outlay
Debt Service
Principal retirement - bonds
(266)
Principal retirement - certificates of
participation
2,511,500
2,511,500
2,497,000
(14,500)
40,891,772
35,489,772
31,144,023
(4,345,749)
15,623,225
15,623,225
15,623,225
Principal retirement - bonds
5,203,328
5,206,328
5,205,904
(424)
Interest
3,484,975
3,481,975
3,401,432
(80,543)
17,925,000
17,925,000
17,919,991
(5,009)
2,806,915
2,825,915
2,825,892
(23)
136,228
136,228
129,041
(7,187)
Interest
Central Piedmont Community College
Current
-
Debt Service
Hospitals
WTVI
Historic Landmarks Commission
Outside Agencies - Other
Total Business Partners
Total Expenditures
Excess of Revenues over Expenditures
4,778,199
4,778,199
4,715,129
(63,070)
413,953,903
408,572,903
404,056,132
(4,516,771)
1,020,991,544
1,012,039,508
957,578,056
(54,461,452)
(34,988,157)
(43,607,753)
(9,520,859)
34,086,894
OTHER FINANCING SOURCES (USES)
Transfers in
110,715
Transfers out
-
(1,729,900)
(2,920,658)
-
-
(2,920,658)
-
Refunding bonds issued
-
-
12,160,000
12,160,000
Payment to refunded bond escrow agent
-
-
(13,145,339)
(13,145,339)
Premium on bonds issued
-
-
1,248,923
Appropriated fund balance
36,607,342
Total other financing uses
NET CHANGE IN FUND BALANCE
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
46,528,411
34,988,157
$
-
43,607,753
$
-
1,248,923
-
(46,528,411)
(2,657,074)
(12,177,933)
177,970,278
$ 165,792,345
The accompanying notes are an integral part of this statement.
(46,264,827)
$
(12,177,933)
A-7
MECKLENBURG COUNTY, NORTH CAROLINA
STATEMENT OF NET ASSETS
PROPRIETARY FUND
JUNE 30, 2003
Business
Type Activities
Solid Waste
Enterprise Fund
ASSETS
Current Assets
Cash and investments
$ 12,414,381
Interest receivable
46,781
Accounts receivable
1,566,107
Total Current Assets
14,027,269
Restricted cash and investments
339,644
Capital assets
Land
28,066,849
Construction in Progress
48,410
Land improvements
3,537,008
Buildings
8,986,315
Vehicles and heavy equipment
3,925,000
Furniture, machinery and equipment
Total capital assets
80,742
44,644,324
Less accumulated depreciation
(5,880,003)
Total Capital assets, net of accumulated depreciation
38,764,321
TOTAL ASSETS
53,131,234
LIABILITIES
Current Liabilities
Accounts payable and accrued liabilities
Compensated absences
420,696
19,856
Capital leases
318,960
Bonds payable
2,355,936
Total Current Liabilities
3,115,448
Long-term Liabilities
Compensated absences
340,139
Landfill development and
postclosure care costs
2,432,377
Capital leases
626,242
Bonds payable
8,630,347
Total Long-term Liabilities
12,029,105
TOTAL LIABILITIES
15,144,553
NET ASSETS
Invested in capital assets, net of related debt
26,493,191
Restricted net assets:
Restricted for capital projects
Restricted for landfill development and post closure care
Unrestricted
339,644
2,432,377
8,721,469
TOTAL NET ASSETS
The accompanying notes are an integral part of this statement.
$ 37,986,681
A-8
MECKLENBURG COUNTY, NORTH CAROLINA
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS
PROPRIETARY FUND
FOR THE YEAR ENDED JUNE 30, 2003
Business
Type Activities
Solid Waste
Enterprise Fund
OPERATING REVENUES
Charges for services
$ 10,347,962
Other
763,252
Total Operating Revenues
11,111,214
OPERATING EXPENSES
Personal services and employee benefits
3,075,184
Utilities
119,961
Supplies
408,987
Depreciation
1,033,214
Maintenance and repairs
357,249
Rental and occupancy charges
116,245
Contractual services
2,936,673
Final development and postclosure costs
1,390,707
Total Operating Expenses
9,438,220
OPERATING INCOME
1,672,994
NON-OPERATING REVENUES (EXPENSES)
Grant revenue
785,158
Interest income
213,483
Interest expense
(739,220)
Loss on disposal of capital assets
(1,425)
Amortization of refunding amount
(100,325)
Other
24,467
Transfer to other funds
(147,437)
Total Non-operating Revenues (Expenses)
34,701
CHANGE IN NET ASSETS
1,707,695
NET ASSETS - BEGINNING OF YEAR
NET ASSETS - END OF YEAR
36,278,986
$ 37,986,681
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, 2003
Business
Type Activities
Solid Waste
Enterprise Fund
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from users
$ 10,880,172
Cash paid to suppliers
(5,324,118)
Cash paid to employees
Net cash provided by operating activities
(3,041,265)
2,514,789
CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES
Landfill contribution
Transfer to other funds
Net cash provided by non-capital financing activities
1,296,668
(147,437)
1,149,231
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Principal payments - bonds
(2,502,641)
Principal payments - capital leases
(316,017)
Interest paid
(739,200)
Loss on disposals of assets
(1,425)
Acquisition of capital assets
(885,205)
Net cash used by capital and related financing activities
(4,444,488)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received
298,009
Net cash provided by investing activities
298,009
DECREASE IN CASH AND INVESTMENTS
CASH AND INVESTMENTS - BEGINNING OF YEAR
CASH AND INVESTMENTS - END OF YEAR
(482,459)
13,236,484
$ 12,754,025
Reconciliation of Operating Income to Net Cash Provided by
Operating Activities
Operating Income
$
1,672,994
Adjustments to reconcile operating income to net cash
provided by operating activities:
Depreciation
1,033,214
Change in accounts receivable
(231,042)
Change in accounts payable and accrued liabilities
21,703
Change in compensated absences
Total adjustments
Net cash provided by operating activities
17,920
$
841,795
2,514,789
$
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.
25,854
A - 10
MECKLENBURG COUNTY, NORTH CAROLINA
STATEMENT OF NET ASSETS
FIDUCIARY FUNDS
JUNE 30, 2003
Agency Funds
ASSETS
Cash and investments
Accounts receivable
TOTAL ASSETS
$
8,185,998
8,512
8,194,510
LIABILITIES
Accounts payable and accrued liabilities
Due to other governmental agencies
TOTAL LIABILITIES
4,089,410
4,105,100
8,194,510
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, 2003
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 generally accepted accounting principles (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 emphas ize 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 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 fund.
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 fund.
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, 2003
(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 info rmation 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 governmenta l 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, 2003. 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.
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, 2003
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.
2003A Public Improvement Capital Projects Fund – This Capital Projects Fund accounts for financial
resources to be used fo r 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 2003A Public Improvement
Capital Projects Fund, 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 fo r 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 classifi ed 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 generally accepted accounting principles, an annual balanced
budget ordinance for all funds except those authorized by project ordinance 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
MECKLENBURG COUNTY, NORTH CAROLINA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2003
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:
Special Revenue Funds
Original
Budget
Amendments
Final Budget
June 30, 2003
$57,495,007
$4,562,131
$62,057,138
Amendments result from appropriating revenues received in excess o f 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
Excess of revenues and other financing sources over
expenditures
Special Revenue Funds – Project Budgeted Funds
Excess of revenues and other financing sources over
expenditures
Total
$ 2,053,805
8,600,718
$10,654,523
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.
(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 $5,454,057 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 $17,972,820 from certificates of participation, are held by a trustee.
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
MECKLENBURG COUNTY, NORTH CAROLINA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2003
of North Carolina. All moneys are deposited in an interest-bearing depository checking account. At yearend, the cash balance of County deposits was $44,341,568 and the bank balance was $57,308,390.
Included in these amounts is a money market account in the amount of $25,023,833 with Wachovia Bank,
N.A. Also included are $18,496,472 in certificates of deposit which includes a non-interest bearing two-year
certificate of deposit in the amount of $2,989,900 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 sta ndards of
financial stability for each depository. Of the bank balance, $81,472 was covered by federal depository
insurance and $57,226,918 was covered by collateral.
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, 2003,
the Medic Agency’s deposits had a carrying value of $4,680,185 and a bank balance of $4,967,956 of which
$128,845 was covered by federal depository insurance and $4,839,111 was covered by collateral. At June
30, 2003, the carrying amount of the Library’s bank deposits was $2,197,255 and the bank balance was
$2,803,852 of which $616,162 was covered by federal depository insurance, $1,215,260 was covered by
collateral held under the dedicated method and $972,430 was covered by the pooling method. Investments
of $322,610 consist of one certificate of deposit having original maturity of six months with an interest rate of
1.29%. At June 30, 2003, the carrying amount of the ABC Board’s bank deposits was $4,543,739 and the
bank balance was $6,069,011. Of the bank balance at June 30, 2003, $116,491 was covered by federal
depository insurance and the remaining $5,952,520 was covered by collateral under the pooling method.
The ABC Board maintains a $399,000 non-interest bearing 12-month certificate of deposit with First Citizens
Bank of North Carolina. The funds are held as a compensating balance in lieu of service changes and are
recorded at cost.
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
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.
MECKLENBURG COUNTY, NORTH CAROLINA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2003
As of June 30, 2003, investments outstanding for the County were as follows:
Type of Investments
U.S. Government Agencies
Banker’s Acceptances
Commercial Paper
Category 1
Reported Value
$197,997,918
1,216,224
100,818,704
$300,032,846
N. C. Capital Management Trust
TOTAL
$197,997,918
1,216,224
100,818,704
300,032,846
91,110,473
$391,143,319
All securities owned by the County at June 30, 2003, 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 July 1, 2003. These investments are
stated at fair value on the County’s financial statements.
As of June 30, 2003, the Medic Agency’s investments outstanding were as follows:
Type of Investments
Reported Value
Fair Value
N. C. Capital Management Trust
$1,171,511
$1,171,511
All County and Medic Agency 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.
During 2003, 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 2003 for the
County was $475,407. 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 $692,436.
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
MECKLENBURG COUNTY, NORTH CAROLINA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2003
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,
which are considered to be park improvements, a part of land improvements. Park improvements acquired
during fiscal year 2003 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 estimate d 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
5 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
MECKLENBURG COUNTY, NORTH CAROLINA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2003
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
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, 2003
was $451,565.
(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.
(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 fis cal 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 a re 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, 2003
The following table presents the reservations and designations of fund balances at June 30, 2003:
Major Funds
2003A
General
Capital Projects
Fund
Fund
Fund Balance:
Reserved for encumbrances
Reserved by State Statute
Designations:
Land Use and Environmental Services
Community Services
Detention and Court Support Services
Health and Human Services
Capital Projects
Self-insurance
Subsequent Year’s Expenditures
Undesignated
(k)
Nonmajor Funds
Special
Capital
Revenue
Projects
Funds
Funds
$ 11,978,650
59,731,407
$ 10,399,979
3,432,936
$ 2,622,914
18,143,272
$ 6,687,713
4,416,820
358,000
106,276
600,000
975,962
2,840,472
4,415,424
_84,786,154
120,205,953
-_____
231,700
180,342
17,302,348
3,152,142
92,106,283
(5,422,359)
$165,792,345
$134,038,868
$41,632,718
$97,788,457
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.
Moneys 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, 2003, 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 moneys 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, 2003, 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, 2003
(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 2002-03, the County expended $14,943,660 and recognized
$14,679,835 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.
Mecklenburg 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:
2003
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
$380,027,227
16,978,539
3,273,593
141,160
8,781,487
816,419
230,849
1,793,903
1,830,173
$413,873,350
(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, 2003
The balances in deferred revenue at June 30, 2003 are composed of the following:
Government-wide
Statements
Governmental
Activities
Governmental Fund
Statements
Taxes receivable (net)
Prepaid taxes not yet earned
Grants
$
938,115
2,659,350
$ 28,651,804
938,115
2,659,350
TOTAL
$3,597,465
$ 32,249,269
For the Medic Agency, the balances in deferred revenues at June 30, 2003, are composed of gross
ambulance billings for services performed prior to June 30, 2003, that were not collected within 60 days after
the year end.
(p) Deficit Fund Equity
Within the nonmajor governmental funds, the Law Enforcement Service District Special Revenue Fund has
a deficit undesignated fund balance of $567,255 and a deficit fund balance of $219,361 which will be
eliminated in fiscal 2004 via tax collections. The Other Capital Funding Capital Project Fund has a deficit
undesignated fund balance of $5,422,359 and a deficit fund balance of $1,090,043 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 Countywide 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, 2003:
Governmental
______________Activities_____________
2003A Public
Improvement
Capital Project
Nonmajor
General Fund
Fund
Funds
General
State and Federal Government
Taxes
Less allowance for doubtful accounts
Clinic billings
Interest
Total Receivables
$ 42,416,049
11,993,567
35,880,373
(7,600,000)
679,531
1,576,341
$ 84,945,861
$
$
41,784
___-___
41,784
$ 2,415,092
19,265,880
488,894
(143,000)
30,763
$22,057,629
Businesstype
Activities
$
Total
Receivables
780,949
785,158
46,781
$ 45,653,874
32,044,605
36,369,267
(7,743,000)
679,531
1,653,885
$1,612,888
$108,658,162
MECKLENBURG COUNTY, NORTH CAROLINA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2003
3.
Property Tax
The County's property tax levied effective for fiscal year 2002-03, was based on the assessed values listed as
of January 1, 2002, 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, 2002. The property tax rate
for the 2003 fiscal year was $.8397 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 moneys
estimated to be required for such purpose. The County has a continuous program of reappraisal and County
officials consider that the County has complied with the purpose of the statutes.
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 va lues as of
January 1, 2002. 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, 2002 through February, 2003 apply to the fiscal year ended June 30, 2003.
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, 2003 because they are intended to finance the County’s operations
during the 2004 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, 2003
5.
Capital Assets
Primary Government
Balance
July 1, 2002
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
Deletions
Balance
June 30, 2003
$262,466,534
42,615,910
305,082,444
$ 23,629,987
22,196,483
45,826,470
$ (1,156,994)
-_____
(1,156,994)
$284,939,527
64,812,393
349,751,920
12,602,937
354,660,296
19,787,467
28,891,708
415,942,408
1,795,248
2,962,814
914,179
918,423
6,590,664
(3,199,259)
(638,133)
_ (477,387)
(4,314,779)
14,398,185
354,423,851
20,063,513
29,332,744
418,218,293
(8,058,164)
(122,010,381)
(12,381,551)
(17,135,298)
(159,585,394)
256,357,014
(589,002)
(11,213,794)
(2,059,884)
( 3,485,793)
(17,348,473)
(10,757,809)
2,363,030
523,720
463,268
3,350,018
(964,761)
$561,439,458
$ 35,068,661
$ (2,121,755)
$594,386,364
$ 28,063,049
______-____
28,063,049
$
$
-____
______-____
$ 28,066,849
48,410
_ 28,115,259
3,537,008
8,986,315
3,925,000
80,742
16,529,065
3,800
48,410
52,210
(8,647,166)
(130,861,145)
(13,917,715)
(20,157,823)
(173,583,849)
244,634,444
2,825,531
8,975,544
3,807,357
71,268
15,679,700
711,477
44,402
127,143
9,474
892,496)
(33,631)
(9,500)
-____
(43,131)
(334,591)
(2,502,781)
(1,946,227)
(71,268)
(4,854,867)
10,824,833
(196,307)
(418,856)
(417,981)
_____( 70)
(1,033,214)
(140,718)
8,078
-_ __
8,078
(35,053)
(530,898)
(2,921,637)
(2,356,130)
___ ( 71,338)
(5,880,003)
10,649,062)
(35,053)
$ 38,764,321
$ 38,887,882
$
(88,508)
$
MECKLENBURG COUNTY, NORTH CAROLINA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2003
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
$
68,254
2,435,418
228,183
1,418,233
1,841,201
8,228,398
1,117,133
2,011,653
17,348,473
Business-type activities:
Solid Waste Enterprise Fund
1,033,214
Total depreciation expense
$18,381,687
Amounts expended and estimated costs to complete the County's construction-in-progress are as follows:
Estimated
Project
Authorization
Expended to
June 30, 2003
Court Parking Deck
Park and Recreational Facilities
Walton Plaza Roof
Criminal Justice Information System
School Facilities
Courthouse
$ 24,400,000
19,631,810
641,800
3,045,792
50,000,000
90,500,000
$ 1,838,522
10,767,800
265,725
857,481
39,107,985
11,974,879
$ 22,561,478
8,864,010
376,075
2,188,311
10,892,015
78,525,121
$
-
TOTAL
$188,219,402
$64,812,393
$123,407,010
$
-
Project
Required
Future
Financing
Costs to
Complete
Activity in the Library’s Capital assets for the year ended June 30, 2003 is as follows:
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
Balance
July 1, 2002
Additions
$ 11,124,024
2,053,228
13,177,252
$ 127,968
3,997,742
4,125,710
33,660,764
4,767,875
3,068,972
41,497,611
374,963
-____
374,963
________
34,035,727
4,767,875
3,068,972
41,872,574
(844,272)
(54,116)
(76,724)
(975,112)
(600,149)
-___
-___
(8,547,584)
(4,648,907)
(265,590)
(13,462,081)
28,410,493
-
$ 45,713,455
(7,703,312)
(4,594,791)
(188,866)
(12,486,969)
29,010,642
$ 42,187,894
$ 3,525,561
$
$
Deletions
Balance
June 30, 2003
__-__
___ -_
$ 11,251,992
_6,050,970
17,302,962
.
MECKLENBURG COUNTY, NORTH CAROLINA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2003
Activity in the Medic Agency’s capital assets for the year ended June 30, 2003 is as follows:
Balance
July 1, 2002
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
$ 3,620,267
593,208
669,593
1,077,347
2,785,567
8,745,982
(2,576,996)
(337,065)
(250,469)
(382,895)
(1,003,682)
(4,551,107)
$ 4,194,875
Additions
Deletions
Balance
June 30, 2003
$ 594,005
81,145
365,159
5,734
313,890
_,359,933
$ (445,990)
_
-____
(445,990)
$ 3,768,282
674,353
1,034,752
1,083,081
3,099,457
_9,659,925
(445,386)
(73,791)
(142,522)
(212,308)
(286,404)
(1,160,411)
$
199,522
405,046
-___
405,046
$(40,944)
(2,671,336)
(410,856)
(392,991)
(595,203)
(1,290,086)
(5,306,472)
$ 4,353,453
Activity in the ABC Board’s capital assets for the year ended June 30, 2003 is as follows:
July 1, 2002
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.
Additions
$ 4,393,468
69,960
4,463,428
$ 59,599
177,500
237,099
11,742,379
665,921
2,879,361
15,287,661
Deletions
$
June 30, 2003
(69,960)
(69,960)
$ 4,453,067
177,500
4,630,567
226,399
98,009
60,034
384,442
(95,454)
-____
(95,454)
11,968,778
668,476
2,939,395
15,576,649
(2,644,184)
(455,774)
(1,534,622)
(4,634,580)
10,653,081
(368,900)
(111,315)
(318,565)
(798,780)
414,338)
81,712
81,712
(13,742)
(3,013,084)
(485,377)
(1,853,187)
(5,351,648)
10,225,001
$15,116,509
$177,239
$ (83,702)
$ 14,855,568
Interfund Receivables and Payables
Governmental Funds interfund receivables and payables of $2,651,458 at June 30, 2003 consists of
$2,245,800 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 arrangem ents 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, 2003 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, 2003
___________Governmental Activities__________
2003A Public
Improvement
Capital
Projects
Nonmajor
Fund
Funds_
General Fund
General payables
Salaries & benefits payable
Reserve for self-insurance
Other accrued liabilities
Total
8.
BusinessType
Activities
Total
Accounts Payable and
Accrued Liabilities
$36,319,162
5,327,847
6,814,996
1,630,977
$11,057,236
- ___
$16,298,583
13,914
_-____
$ 372,235
48,461
-___
$64,047,216
5,390,222
6,814,996
1,630,977
$50,092,982
$11,057,236
$16,312,497
$ 420,696
$77,883,411
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 b onded 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, 2003:
Issue Date
Refunding Bonds 1993
Public Improvements 1994
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
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
TOTAL
The bonds are recorded as follows:
Governmental Activities
Business-type Activities (Solid Waste Enterprise Fund)
TOTAL
Due
Average
Serially Interest
To
Rate
2012
2013
2013
2013
2015
2016
2016
2018
2010
2010
2020
2010
2020
2018
2021
2013
2021
2005
2018
2020
2022
2020
2023
2011
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
Original
Issue
$ 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
Balance
June 30, 2003
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
$2,152,065,000 $1,636,540,000
$1,624,650,804
11,889,196
$1,636,540,000
MECKLENBURG COUNTY, NORTH CAROLINA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2003
In fiscal year 1994, the County refunded several public improvement bonds which 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, 2003 was $902,913.
In fiscal year 2001, the County defeased a portion of the Public Improvement 1994 bonds by placing the new
proceeds 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
General Long-Term Debt Account Group and the Enterprise Fund. At June 30, 2003, $143,515,000 in
outstanding bonds is considered to be defeased
In fiscal year 2003, the County issued $12,160,000 General Obligation Refunding Bonds at a net interest cost
of 2.88%. The purpose was to refund and redeem $12,655,000 of the principal amount outstanding of the
Refunding 1986 Bonds and the Public Improvements 1993 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 was redeemed as matured or
called on April 1, 2003 and the applicable liabilities have been removed from the governmental activities. The
refunding transaction will result in annual debt service savings of approximately $95,000 with net present value
savings of $698,095.
General obligation bonds are due serially and mature during the fiscal years 2010 to 2023 at average interest
rates at date of issuance ranging from 2.40% to 5.43%. The effective rate of interest paid on the average
principal balance of outstanding bonds during the year was 3.96%.
The County has issued $290,000,000 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 2003 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 ye ar-end. The interest rates, per the
Remarketing Agreements, cannot exceed 12%. The maximum interest required for these bonds through
maturity would be $506,304,000.
Issue
1996C
1998C
2000C
2000E
2001B
2002C
2003B
Balance
June 30, 2003
Agreement Expiration
$50,000,000
50,000,000
50,000,000
50,000,000
25,000,000
25,000,000
40,000,000
August 1, 2003
February 15, 2006
January 26, 2005
November 1, 2003
May 15, 2004
August 6, 2005
February 20, 2006
Fees Paid
Fiscal Year 2003
$111,478
122,587
82,805
75,908
42,767
33,385
23,563
Interest Rate
June 30, 2003
.90%
.97
.95
1.00
1.00
1.00
1.00
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 outsta nding to 8% of
the appraised value of property subject to taxation. At June 30, 2003, such statutory limit for the County was
$5,560,413,627 providing a legal debt margin of $3,379,573,627.
The following schedule shows annual requirements to amortize all bonded debt outstanding as of June 30,
2003. Interest on the variable rate bonds has been estimated using the rate in effect at June 30, 2003.
MECKLENBURG COUNTY, NORTH CAROLINA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2003
Governmental Activities
Year
2003-2004
2004-2005
2005-2006
2006-2007
2007-2008
2008-2013
2013-2018
2018-2023
Total
Business-Type Activities
Principal
Interest
Principal
88,653,739
94,959,279
104,662,933
104,735,376
108,548,639
563,890,838
403,400,000
155,800,000
$1,624,650,804
$ 64,026,672
60,007,837
55,836,899
51,171,710
46,269,016
152,092,016
46,986,351
5,883,724
$482,274,225
$ 2,456,261
2,330,721
1,822,067
1,269,624
1,256,361
2,754,162
-____
$11,889,196
$
Amortization
$
100,325
100,325
100,325
100,325
100,325
401,288
-___
__
$902,913
Interest
$576,316
462,875
360,738
282,364
218,433
370,463
____-____
$2,271,189
As of June 30, 2003, $544,300,000 general obligation bonds were authorized but unissued.
Certificates of Participation
The Mecklenburg County Public Facilities Corporation sold certificates of participation in the amount of
$5,420,000 on September 11, 2003, to provide funding for library facilities. Interest on these certificates is
variable rate. In addition the Corporation has previously issued $54,000,000 in variable rate certificates of
participation. 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 2003 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
$56,040,000.
Issue
2000
2001
2002
Balance
June 30, 2003
Agreement Expiration
Fees Paid
Fiscal Year 2003
Interest Rate
June 30, 2003
$21,250,000
27,550,000
5,420,000
April 1, 2005
November 30, 2006
September 10, 2005
$36,327
49,653
3,905
1.00%
1.00
1.05
Annual principal requirements to maturity are presented in the following table:
Fiscal Year
2003-04
2004-05
2005-06
2006-07
Principal
$3,475,000
3,475,000
3,475,000
3,475,000
Fiscal Year
2007-08
2008-13
2013-18
2018-21
Principal
$ 3,475,000
15,045,000
13,500,000
8,300,000
MECKLENBURG COUNTY, NORTH CAROLINA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2003
Changes in Long-Term Liabilities
The following presents the changes in long-term liabilities for the year ended June 30, 2003:
Balance
July 1, 2002
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
$1,296,873,163 $423,560,000
1,248,923
13,137,004
104,260
17,665,806
15,614,463
51,500,000
5,420,000
1,089,878
258,982
Balance
June 30, 2003
Due within
One Year
$( 95,782,359)
(140,238)
(2,099,644)
( 14,761,757)
(2,700,000)
______-_____
$1,624,650,804
1,108,685
11,141,620
18,518,512
54,220,000
1,348,860
$88,653,739
140,238
1,858,156
1,421,320
3,475,000
_____-____
Reductions
1,380,265,851
446,206,628
(115,483,998)
1,710,988,481
95,548,453
13,388,599
1,261,220
342,075
245,097
(2,402,316)
(316,018)
(227,177)
10,986,283
945,202
359,995
2,355,936
318,960
19,856
1,135,709
1,296,668
______-_____
2,432,377
_____-____
16,127,603
1,541,765
(2,945,511)
14,723,857
2,694,752
$1,396,393,454 $447,748,393 $(118,429,509)
$1,725,712,338
$98,243,205
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, 2003, for the Library:
Balance
July 1, 2002
Additions
Reductions
Balance
June 30, 2003
Due within
One Year
Governmental activities:
Capital leases
Compensated absences
Total Government-wide
$2,648,224
1,764,919
2,032,621
$4,413,143
$2,032,621
$
(190,787)
(1,526,044)
$2,457,437
2,271,496
$ 194,367
1,500,000
$(1,716,831)
$4,728,933
$1,694,367
The $742,336 of long-term liabilities due within one year for the Medic Agency represents compensated
absences at June 30, 2003.
The following presents the changes in long-term liabilities for the year ended June 30, 2003, for the ABC Board:
Note payable
9.
Balance
July 1, 2002
Additions
$1,490,354
$
-
.
Reductions
Balance
June 30, 2003
Due Within
One Year
$(112,050)
$1,378,304
$119,768
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 $9,277,132 and the net book value of those assets recorded
in the Enterprise Fund, capital assets – vehicles and heavy equipment, is $918,621.
MECKLENBURG COUNTY, NORTH CAROLINA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2003
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, 2003, future minimum l ease 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,
2004
2005
2006
2007
2008
2009-2011
Less: amount
representing interest
Capital Leases
Governmental
Solid Waste
Activities
Enterprise Fund
$2,478,259
2,186,952
1,945,921
1,774,904
1,652,410
3,580,927
13,619,373
$ 353,498
341,285
160,172
156,925
- __
1,011,880
(2,477,753)
(66,678)
$11,141,620
$ 945,202
Operating
Leases
$128,482
83,267
24,491
$236,240
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, 2003:
Year Ending
Capital
June 30,
Leases
2004
336,987
2005
328,492
2006
320,289
2007
312,085
2008
304,078
2009-2013
1,189,226
2014-2018
601,637
2019-2023
7,505
2024-2028
7,505
2029-2033
7,505
2034-2038
7,505
2039-2043
7,505
2044-2048
____1,501
Total Minimum Payments
3,431,820
Less amount
representing interest
(974,383)
Present value of net
minimum capital
lease payments
$ 2,457,437
Operating
Leases
$558,963
443,902
297,543
231,523
149,329
746,645
746,645
268,103
5
5
5
5
________5
$3,442,678
MECKLENBURG COUNTY, NORTH CAROLINA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2003
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
$343,452. 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.
The ABC Board's minimum annual rentals on s tore properties and equipment leased, with lease terms extending
to October 15, 2021, at June 30, 2003, are summarized as follows:
Year Ending
June 30,
2004
2005
2006
2007
2008
2009-2013
2014-2018
2019-2021
Operating
Leases
$360,762
241,749
113,360
81,212
81,212
406,060
406,060
189,496
$1,879,911
For the year ended June 30, 2003, rent expense for operating leases for the County was $241,800, for the
Library was $851,000, for the Medic Agency was $397,428 and for the ABC Board was $541,642.
10. Transfers
For the year ended June 30, 2003, the General Fund transferred $2,920,658 to the nonmajor Capital Reserve
Special Revenue Fund and the Solid Waste Enterprise Fund transferred $147,437 to the nonmajor Discarded
White Goods Special Revenue Fund. 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 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 2003 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, 2003,
2002 and 2001 were $7,919,603, $7,793,764, and $7,244,931, respectively. The contributions made by the
County equaled the required contributions for the year.
MECKLENBURG COUNTY, NORTH CAROLINA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2003
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, 2003, 2002, and 2001 were $664,030,
$651,879, and $587,851, respectively. The rate for fiscal year 2003 for employees is 4.87% of covered payroll.
The Medic Agency’s contributions to LGERS for the year ended June 30, 2003, 2002, and 2000 were
$552,612, $517,760, and $483,282, respectively, and the rate for fiscal year 2003 for employees is 4.84% of
covered payroll. The ABC Board’s contributions to LGERS for the years ended June 30, 2003, 2002, and 2001
were $242,598, $246,666, and $230,639, respectively. The ABC Board's required contributions for employees
not engaged in law enforcement and for law enforcement officers are 4.80% and 4.64% 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
Mecklenburg 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, 2002, the Separation Allowance’s membership consisted of:
Retirees receiving benefits
Active plan members
Total
County
ABC Board
18
305
1
11
323
12
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 $209,871 for the fiscal
year ended June 30, 2003, 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 year ended June 30, 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.
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,
2002, 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, 2002,
was 28 years.
MECKLENBURG COUNTY, NORTH CAROLINA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2003
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
$ 448,383
79,016
(58,546)
468,853
(209,871)
258,982
1,089,878
Net pension obligation end of year
$1,348,860
Three-Year Trend Information:
Fiscal Year
Ended
2003
2002
2001
Annual Pension
Cost (APC)
$468,853
436,437
325,339
Percentage of APC Contributed
44.76%
48.86
64.06
Net Pension
Obligation
End of Year
$1,348,860
1,089,878
866,677
(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 5% 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, 2003 was $684,181. Contributions for the ABC Board for the year
ended June 30, 2003, were $80,456, which consisted of $61,326 from the ABC Board and $19,130 from the law
enforcement officers’ voluntary contributions. The ABC Board’s required plus voluntary contributions and the
officers’ voluntary contributions represented 10.0% and 3.1%, respectively, of covered payroll for the year
ended June 30, 2003.
For non-law enforcement full-time employees, the ABC Board voluntarily contributes each month an amount
equal to 8% 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
$4,464,117 for June 30, 2003 and $4,523,205 for June 30, 2002. Total contributions for the years ended June
30, 2003 and 2002 were $495,164 and $514,549, respectively, which consisted of $365,591 for 2003 and
$375,660 for 2002 from the ABC Board and $129,573 for 2003 and $139,189 for 2002 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 8.2% and 2.9%, respectively, for 2003 and 8.3%
and 3.1%, respectively, for 2002.
(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.
MECKLENBURG COUNTY, NORTH CAROLINA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2003
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, 2003, the County’s required and actual
contributions were $309,493.
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 and Library pay the full cost of the health care insurance premium 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, 2003, the County's expense for
this benefit was $1,379,952 and the number of retirees taking advantage of this benefit was 570. The cost of
benefits for the Library recognized as an expenditure for the fiscal year ended June 30, 2003 was $92,838 for
the 32 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
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, 2003, the County made contributions to the
State for death benefits of $125,408. The County's required contributions for covered employees represented
.14% of covered payroll for law enforcement officers and .07% of covered payroll for employees not engaged in
law enforcement. For the year ended June 30, 2003, the ABC Board made contributions to the State for death
benefits of $5,767. 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 the full cost of the health and life insurance premiums for retired employees. This benefit
is provided through age 65 for employees who retired between July 1, 1995 and July 1, 1999. This benefit is
MECKLENBURG COUNTY, NORTH CAROLINA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2003
continued until death for employees who retire after July 1, 1999. The ABC Board has chosen to pay these
benefits on a pay-as-you-go basis. The cost for the year ended June 30, 2003 was $86,680.
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,
2003, 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
$1,000,000 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 $400,000 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:
2003
2002
Accounts payable and accrued liabilities - beginning of fiscal year
Additions
Payments
$12,310,529
2,420,181
(3,076,239)
$11,312,598
2,111,731
(1,113,800)
Accounts payable and accrued liabilities - end of fiscal year
$11,654,471
$12,310,529
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 includes a
commercial property policy, a business package policy and a commercial excess policy. The limit for the
commercial property policy is $4,321,887, with no deductible. The business package policy includes general
liability, automobiles and other general business activities. The coverage for general liability and automobile
insurance is $1 million per occurrence with no deductible. The commercial excess liability policy includes a limit
of $5 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. During 2003, there was one workers compensation claim that exceeded $275,000.
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-insurance 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 i nsurance policy.
MECKLENBURG COUNTY, NORTH CAROLINA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2003
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 ye ar based
on the landfill capacity used as of the balance sheet date. The accrued landfill development and postclosure
care costs totals $2,432,377 and has two components. The cumulative amount reported, based on the use of
23.5% of the total estimated capacity of the landfill, for closure and postclosure care costs is $2,272,024. 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 2003. 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, 2003 is $160,353. The County will recognize the remaining estimated cost of future use development
of $1,752,932 million as the remaining capacity is filled. These funds are held in investments with a cost of
$160,353 (market value, $160,353) 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.
17.
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, 2003, 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 $231,827,325 at June 30, 2003, are committed for various projects in accordance
with related Capital Projects Ordinances.
(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 p ractices, 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.
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 $132,136 to COG during fiscal year
2003.
MECKLENBURG COUNTY, NORTH CAROLINA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2003
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 $15,623,225 for operations and $16,853,172 for capital purposes
during fiscal year 2003, and made debt service payments of $8,607,336 in fiscal year 2003 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 County, in conjunction with Catawba, Iredell and Lincoln Counties participates in a joint venture to operate
the Lake Norman Marine 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 a ppropriate to support the activities of the Commission. The County provided $17,587 to the
Commission in fiscal year 2003. 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, 2003. Complete
financial statements for the Commission may be obtained from the following address:
Lake Norman Marine Commission
P.O. Box 35008
Charlotte, NC 28235
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 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 2003. 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,
2003. 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 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 2003. 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, 2003. Complete financial statements for the Commission may be obtained
from the following address:
Mountain Island Marine Commission
P.O. Box 35008
Charlotte, NC 28235
MECKLENBURG COUNTY, NORTH CAROLINA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2003
19.
Conduit Debt Obligation
In February 1996, Mecklenburg 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 $14,800,000 at
June 30, 2003 are not reported as liabilities in the accompanying financial statements.
In December 2001, Mecklenburg 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, 2003 are not reported as
liabilities in the accompanying financial statements.
In May 2003, Mecklenburg 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 $9,390,000 at June 30, 2003
are not reported as liabilities in the accompanying financial statements.
20.
Related Organization
The Mecklenburg County Industrial Facilities and Pollution Control Financing 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 fa cilities 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 interest rate swap agreements for the Public Improvement Series 2000C, Series
2001B and Series 2002C variable rate bonds effective September 17, 2003. As a result of this transaction, the
County will pay interest at the fixed rate of 3.3122% to the counterparties to the swap. In return, the
counterparties will pay interest to the County based on a variable rate tied to the variable rate on the bonds.
The bonds involved in this transaction total $100 million. The agreements are in effect until the final maturity of
those bonds.
REQUIRED SUPPLEMENTARY
INFORMATION
MECKLENBURG COUNTY
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
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)
$13,353,602
31.59
0.00 %
% of Covered
2002
-
$ 4,218,231
$4,218,231
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
1993
-
1,226,361
1,226,361
0.00
10,628,209
11.54
B-2
MECKLENBURG COUNTY, NORTH CAROLINA
SEPARATION ALLOWANCE FOR LAW ENFORCEMENT OFFICERS
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF EMPLOYER CONTRIBUTIONS
Fiscal Year
Ended
June 30,
Annual
Required
Contribution
Percentage
Contributed
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
actuarial 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%.
12/31/2002
Projected unit credit
Level percent of pay closed
28 years
Market value
7.25%
5.9% - 9.8%
None
COMBINING & INDIVIDUAL FUND
STATEMENTS & SCHEDULES
MECKLENBURG COUNTY
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 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.
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 databas e provisions.
COUNTY FACILITIES: Accounts for revenues from the disposal of certain assets to be used for specific future
projects.
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, 2003
Special
Total Nonmajor
Revenue
Capital Projects
Governmental
Funds
Funds
Funds
$ 27,315,307
$ 109,353,545
ASSETS
Cash and investments
Accrued interest receivable
30,763
Accounts receivable
17,687,476
Taxes receivable
Less allowance for uncollectible taxes
TOTAL ASSETS
30,763
3,993,496
488,894
(143,000)
Advances to other governmental agencies
$ 136,668,852
-
21,680,972
-
488,894
-
(143,000)
79,139
423,324
502,463
$ 45,458,579
$ 113,770,365
$ 159,228,944
$
$
$
LIABILITIES AND FUND BALANCES
Liabilities
Accounts payable and other accrued liabilities
3,031,162
13,281,335
16,312,497
Due to other funds
194,658
2,456,800
Deferred revenue
600,041
243,773
843,814
3,825,861
15,981,908
19,807,769
Total Liabilities
2,651,458
Fund Balances
Reserved for encumbrances
Reserved by state statute
2,622,914
6,687,713
9,310,627
18,143,272
4,416,820
22,560,092
17,302,348
92,106,283
109,408,631
Unreserved:
Designated for capital projects
Designated for land use and environmental services
231,700
-
Designated for detention and court support services
180,342
-
Undesignated
Total Fund Balances
TOTAL LIABILITIES AND FUND BALANCES
3,152,142
(5,422,359)
231,700
180,342
(2,270,217)
41,632,718
97,788,457
139,421,175
$ 45,458,579
$ 113,770,365
$ 159,228,944
C-2
MECKLENBURG COUNTY, NORTH CAROLINA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2003
Special
Total Nonmajor
Revenue
Capital Projects
Governmental
Funds
Funds
Funds
REVENUES
Law Enforcement Service District taxes
$ 11,390,346
$
-
$
11,390,346
Transit one-half cent sales tax
27,272,168
-
27,272,168
Additional one-half cent sales tax
12,015,143
-
12,015,143
Intergovernmental
Charges for services
Interest earned on investments
Other
Total Revenues
3,898,428
14,971,256
10,371,810
-
114,701
-
18,869,684
10,371,810
114,701
3,794,722
1,022,634
4,817,356
68,857,318
15,993,890
84,851,208
EXPENDITURES
Land Use and Environmental Services
Detention and Court Support Services
Business Partners
7,401,039
-
7,401,039
390,294
-
390,294
39,658,158
-
39,658,158
1,352,843
-
1,352,843
657,468
-
Debt Service
Principal
Interest
Capital Outlay
Total Expenditures
REVENUES OVER (UNDER) EXPENDITURES
657,468
9,301,324
192,006,379
201,307,703
58,761,126
192,006,379
250,767,505
10,096,192
(176,012,489)
(165,916,297)
OTHER FINANCING SOURCES
Bonds issued
-
218,400,000
218,400,000
Certificates of participation issued
-
5,420,000
5,420,000
Capitalized lease
Transfers from other funds
104,260
-
104,260
3,068,095
-
3,068,095
Total Other Financing Sources
3,172,355
223,820,000
226,992,355
NET CHANGE IN FUND BALANCE
13,268,547
47,807,511
61,076,058
FUND BALANCES - BEGINNING OF FISCAL YEAR
28,364,171
49,980,946
78,345,117
97,788,457
$ 139,421,175
FUND BALANCES - END OF FISCAL YEAR
$ 41,632,718
$
C-3
MECKLENBURG COUNTY, NORTH CAROLINA
COMBINING BALANCE SHEET
SPECIAL REVENUE FUNDS
JUNE 30, 2003
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
$
$
Sheriff
911 Public Safety
Total
Register
County
Emergency
Special
of Deeds
Facilities
Telephone
Revenue Funds
ASSETS
Cash and investments
$ 10,290,283
Accrued interest receivable
-
Accounts receivable
11,991
Taxes receivable
Less allowance for uncollectible taxes
Advance to other governmental agencies
TOTAL ASSETS
5,539,573
-
21,595
-
3,981,435
-
$
-
$
6,755,518
7,488,949
$
4,293
9,168
-
6,932,097
-
$
42,503
$
274,700
6,025
-
-
488,894
-
-
-
-
-
-
(143,000)
-
-
-
-
-
79,139
-
-
$
9,542,603
$
$
$
290,939
$
345,894
$
6,755,518
-
-
$ 14,430,214
$
$
$
-
694,527
$
-
410
$ 10,381,413
$
-
-
2,614,024
$
$
48,528
$
275,110
$
694,527
$
-
$
951
$
10,143
$
171,214
$
$
27,315,307
-
30,763
-
-
17,687,476
-
-
488,894
-
-
(143,000)
-
4,293
366,455
-
2,614,024
-
79,139
$
366,455
$
45,458,579
$
125,417
$
3,031,162
LIABILITIES AND FUND BALANCES
Liabilities
Accounts payable and accrued liabilities
2,432,498
-
$
-
-
Due to other funds
-
-
194,658
-
-
-
-
-
Deferred revenue - taxes
-
-
370,597
-
-
-
-
-
Deferred revenue - other
Total Liabilities
1,145
-
2,433,643
-
290,939
565,255
-
-
-
-
-
-
-
-
-
-
951
10,143
171,214
335,032
-
-
194,658
-
-
370,597
-
228,299
229,444
-
353,716
3,825,861
Fund Balances
Reserved for encumbrances
Reserved by State Statute
670,004
1,531,237
91,130
4,003,030
-
-
345,894
6,755,518
-
2,426
84,215
6,941,265
-
-
6,025
410
-
7,488,949
-
-
-
-
4,293
39,126
-
-
-
2,622,914
-
-
18,143,272
12,739
17,302,348
Unreserved:
Designated for capital projects
7,186,636
-
-
-
-
-
-
2,614,024
Designated for land use and
environmental services
-
-
188,281
-
-
231,700
Designated for detention and
court support services
Undesignated
Total Fund Balances (Deficits)
-
-
7,947,770
-
3,717,397
(565,255)
9,251,664
(219,361)
-
-
-
-
-
-
-
-
4,293
47,577
6,755,518
14,430,214
6,755,518
$ 14,430,214
180,342
264,967
-
-
-
180,342
-
-
-
3,152,142
12,739
41,632,718
523,313
2,614,024
TOTAL LIABILITIES AND
FUND BALANCES
$ 10,381,413
$
9,542,603
$
345,894
$
$
4,293
$
48,528
$
275,110
$
694,527
$
2,614,024
$
366,455
$
45,458,579
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, 2003
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
$
$
Sheriff
Safety
Total
Register
County
Emergency
Special
of Deeds
Facilities
Telephone
Revenue Funds
REVENUES
Law Enforcement Service District taxes
$
-
-
11,390,346
$
-
$
$
-
-
Additional one-half cent sales tax
-
-
-
-
Intergovernmental
-
2,878,641
-
-
-
9,368,247
-
-
-
-
188,760
Interest earned on investments
-
Other
Total Revenues
-
-
-
Charges for services
27,272,168
-
Transit one-half cent sales tax
12,015,143
-
$
-
$
-
$
-
$
11,390,346
-
-
-
27,272,168
-
-
-
-
-
-
12,015,143
-
-
-
-
-
92,815
808,787
63,579
10,958
-
39,075
1,089
-
-
-
-
427,821
12,871,194
12,054,218
$
-
560,727
27,272,168
-
239,061
11,401,304
$
-
721,988
181,579
199,331
809,876
181,579
292,146
856,974
423,786
211,000
-
-
-
114,701
-
3,794,722
2,614,024
721,988
3,898,428
-
2,614,024
10,371,810
211,000
68,857,318
EXPENDITURES
Land Use and Environmental Services
-
Detention and Court Support Services
-
6,120,279
-
Business Partners
-
-
-
-
-
-
-
-
-
-
-
-
-
11,882,895
27,775,263
-
-
-
-
-
-
-
390,294
-
-
-
-
39,658,158
1,352,843
390,294
7,401,039
Debt Service
Principal
-
1,352,843
-
-
-
-
-
-
-
-
-
Interest
-
657,468
-
-
-
-
-
-
-
-
-
6,767,829
1,784,719
-
-
34,150
-
-
-
6,767,829
9,915,309
(6,340,008)
2,955,885
Capital Outlay
Total Expenditures
REVENUES OVER (UNDER) EXPENDITURES
11,882,895
27,775,263
(481,591)
34,150
(503,095)
12,020,068
657,468
516,365
-
198,261
9,301,324
-
198,261
58,761,126
12,739
10,096,192
856,974
423,786
390,294
516,365
(47,098)
(242,207)
(98,148)
205,623
2,614,024
-
OTHER FINANCING SOURCES
-
Capitalized lease
-
Transfers from other funds
104,260
2,920,658
Total Financing Sources
-
2,920,658
104,260
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
104,260
147,437
-
-
-
-
3,068,095
-
147,437
-
-
-
-
3,172,355
(47,098)
(94,770)
(98,148)
12,739
13,268,547
EXCESS (DEFICIENCY) OF REVENUES
AND OTHER FINANCING SOURCES
OVER (UNDER) EXPENDITURES
(3,419,350)
FUND BALANCES - BEGINNING OF YEAR
FUND BALANCES (DEFICITS) - END OF YEAR
3,060,145
11,367,120
$
7,947,770
(481,591)
6,191,519
$
9,251,664
(503,095)
262,230
$
(219,361)
12,020,068
7,258,613
$
6,755,518
2,410,146
$
14,430,214
51,391
$
4,293
142,347
$
47,577
205,623
363,115
$
264,967
2,614,024
317,690
$
523,313
$
2,614,024
$
12,739
28,364,171
$
41,632,718
C-5
MECKLENBURG COUNTY, NORTH CAROLINA
COMBINING BALANCE SHEET
CAPITAL PROJECTS FUNDS
JUNE 30, 2003
1986
1989A
1989B
1990
1991B
1993
Public
Public
Public
Public
Public
Public
Improvement
Improvement
Improvement
Improvement
Improvement
Improvement
$
$
$
$
$
$ 1,555,429
ASSETS
Cash and Investments
Accounts receivable
135,523
-
16,126
-
442,255
-
18,842
-
8,920
-
-
Advances to other
governmental agencies
TOTAL ASSETS
$
135,523
$
16,126
$
-
$
442,255
$
18,842
$
-
$
8,920
$ 1,555,429
LIABILITIES AND
FUND BALANCES (DEFICITS)
Liabilities:
Accounts payable and
accrued liabilities
$
-
$
-
$
-
$
155,819
Due to other funds
-
-
-
-
-
-
Deferred revenue
-
-
-
-
-
-
-
-
-
-
-
155,819
Total Liabilities
Fund Balances (Deficits):
Reserved for encumbrances
-
-
6,555
12,039
8,630
72,260
Reserved by State statute
-
-
-
-
-
-
Unreserved:
Designated
135,523
Undesignated
Total Fund Balances (Deficits)
TOTAL LIABILITIES AND
FUND BALANCES (DEFICITS)
16,126
135,523
$
135,523
435,700
16,126
$
16,126
6,803
442,255
$
442,255
$
290
1,327,350
-
-
18,842
8,920
1,399,610
8,920
$ 1,555,429
18,842
$
-
(Continued)
C-5
MECKLENBURG COUNTY, NORTH CAROLINA
COMBINING BALANCE SHEET
CAPITAL PROJECTS FUNDS
JUNE 30, 2003
(CONTINUED)
1994
1996A
1998A
1998B
2000A
2000B
Public
Public
Public
Public
Public
Public
Improvement
Improvement
Improvement
Improvement
Improvement
Improvement
$
$
$ 3,211,728
$ 12,365,046
$
ASSETS
Cash and Investments
Accounts receivable
203,982
-
16,219
$
-
3,350,297
-
-
-
1,603
-
Advances to other
governmental agencies
TOTAL ASSETS
$
203,982
$
16,219
$
3,350,297
-
$
396,817
$ 3,211,728
$ 12,365,046
$
1,603
$
$
$
622
LIABILITIES AND
FUND BALANCES (DEFICITS)
Liabilities:
Accounts payable and
accrued liabilities
$
-
$
53,060
235,387
Due to other funds
-
-
-
-
-
Deferred revenue
-
-
-
-
-
-
-
396,817
53,060
235,387
4,020
3,125
383,210
477,473
2,375,767
-
-
Total Liabilities
622
Fund Balances (Deficits):
Reserved for encumbrances
Reserved by State statute
-
-
-
-
-
Unreserved:
Designated
199,962
Undesignated
Total Fund Balances (Deficits)
TOTAL LIABILITIES AND
FUND BALANCES (DEFICITS)
13,094
203,982
$
203,982
2,570,270
-
-
16,219
$
16,219
$
2,681,195
-
9,753,892
981
-
2,953,480
3,158,668
12,129,659
3,350,297
$ 3,211,728
$ 12,365,046
981
$
1,603
(Continued)
C-5
MECKLENBURG COUNTY, NORTH CAROLINA
COMBINING BALANCE SHEET
CAPITAL PROJECTS FUNDS
JUNE 30, 2003
(CONTINUED)
2000C
2000D
2000E
2001D
2002A
2002B
Variable
Public
Variable
Public
Public
Public
Rate
Improvement
Rate
Improvement
Improvement
Improvement
ASSETS
Cash and Investments
$
Accounts receivable
7,783
$ 11,455,407
-
$
-
73,977
$
-
423,067
$
-
14,375,369
$
-
27,235,980
-
Advances to other
governmental agencies
TOTAL ASSETS
-
-
-
-
$
7,783
$ 11,455,407
$
73,977
$
$
1,500
$
$
-
$
423,067
$
14,375,369
423,324
$
27,659,304
$
410,745
LIABILITIES AND
FUND BALANCES (DEFICITS)
Liabilities:
Accounts payable and
accrued liabilities
1,486,356
-
$
-
Due to other funds
-
-
-
-
-
Deferred revenue
-
-
-
-
-
-
-
-
410,745
-
1,840,682
-
423,324
Total Liabilities
1,500
1,486,356
-
Fund Balances (Deficits):
Reserved for encumbrances
-
Reserved by State statute
-
533,196
73,977
-
377,543
-
-
-
45,524
-
-
Unreserved:
Designated
6,283
Undesignated
-
Total Fund Balances (Deficits)
9,435,855
-
6,283
9,969,051
7,783
$ 11,455,407
73,977
14,375,369
24,984,553
-
423,067
-
14,375,369
27,248,559
TOTAL LIABILITIES AND
FUND BALANCES (DEFICITS)
$
$
73,977
$
423,067
$
14,375,369
$
27,659,304
(Continued)
C-5
MECKLENBURG COUNTY, NORTH CAROLINA
COMBINING BALANCE SHEET
CAPITAL PROJECTS FUNDS
JUNE 30, 2003
(CONCLUDED)
Other
Total
Variable
2003B
Certificates of
Capital
Capital
Rate
Participation
Funding
Projects
ASSETS
Cash and Investments
$
Accounts receivable
15,916,692
$ 17,895,729
4,234
-
-
-
$
643,571
$ 109,353,545
3,989,262
3,993,496
Advances to other
governmental agencies
TOTAL ASSETS
$
15,920,926
$
6,682,114
-
423,324
$ 17,895,729
$ 4,632,833
$ 113,770,365
$
$ 3,022,303
$
LIABILITIES AND
FUND BALANCES (DEFICITS)
Liabilities:
Accounts payable and
accrued liabilities
836,612
13,281,335
Due to other funds
-
-
2,456,800
Deferred revenue
-
-
243,773
243,773
5,722,876
15,981,908
Total Liabilities
6,682,114
836,612
2,456,800
Fund Balances (Deficits):
Reserved for encumbrances
-
Reserved by State statute
4,234
176,182
-
343,054
6,687,713
3,989,262
4,416,820
Unreserved:
Designated
9,234,578
Undesignated
-
Total Fund Balances (Deficits)
16,882,935
-
9,238,812
17,059,117
15,920,926
$ 17,895,729
-
92,106,283
(5,422,359)
(5,422,359)
(1,090,043)
97,788,457
TOTAL LIABILITIES AND
FUND BALANCES (DEFICITS)
$
$ 4,632,833
$ 113,770,365
C-6
MECKLENBURG COUNTY, NORTH CAROLINA
CAPITAL PROJECTS FUNDS
COMBINING SCHEDULE OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES (DEFICITS)
FOR THE YEAR ENDED JUNE 30, 2003
1986
1989A
1989B
1990
1991B
1993
1994
Public
Public
Public
Public
Public
Public
Public
Improvement
Project Authorization
$
Improvement
Improvement
39,000,000
$ 7,200,000
Prior Years' Revenues
39,000,000
7,200,000
37,800,000
Prior Years' Expenditures
38,864,477
7,183,874
37,357,019
135,523
16,126
442,981
Fund Balances (Deficits) - Beginning of Year
$
37,800,000
Improvement
$
Improvement
Improvement
53,000,000
$ 18,400,000
$ 196,215,000
83,384,000
53,000,000
18,400,000
196,215,000
83,365,158
52,978,430
16,629,938
196,011,018
18,842
21,570
1,770,062
203,982
83,384,000
Improvement
$
REVENUES
Intergovernmental
Federal
-
-
-
-
-
-
-
State
-
-
-
-
-
-
-
Other
Total Revenues
-
-
-
-
-
-
-
-
-
-
-
-
-
-
EXPENDITURES
Management Services
County Buildings
-
-
-
-
-
Land
-
-
-
-
-
370,452
-
-
-
Land Use and Environmental Services
Clean Water Management
-
-
-
-
-
-
-
Historic Preservation
-
-
-
-
-
-
-
Community Services
Community Development
-
-
-
-
-
-
-
Park and Recreational Facilities
-
-
726
-
12,650
-
-
Library Facilities
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Detention and Court Support Services
Jail/Detention Facilities
Business Partners
Community College Facilities
-
-
-
-
-
-
-
School Facilities
-
-
-
-
-
-
-
-
-
726
-
12,650
370,452
-
-
-
(726)
-
(12,650)
(370,452)
-
Total Expenditures
REVENUES OVER (UNDER)
EXPENDITURES
OTHER FINANCING SOURCES
Bonds issued
-
-
-
-
-
-
-
Certificates of participation issued
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Total Other Financing Sources
FUND BALANCES (DEFICITS) END OF YEAR
$
135,523
$
16,126
$
442,255
$
18,842
$
8,920
$
1,399,610
$
203,982
(Continued)
C-6
MECKLENBURG COUNTY, NORTH CAROLINA
CAPITAL PROJECTS FUNDS
COMBINING SCHEDULE OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES (DEFICITS)
FOR THE YEAR ENDED JUNE 30, 2003
(CONTINUED)
1996A
1998A
1998B
1998C
2000A
2000B
2000C
Public
Public
Public
Variable
Public
Public
Variable
Improvement
Project Authorization
$
Improvement
Improvement
257,050,000
$
Improvement
50,000,000
$
34,000,000
Improvement
$
20,000,000
Rate
$ 31,000,000
Prior Years' Revenues
22,000,000
31,000,000
257,050,000
50,000,000
34,000,000
20,000,000
50,000,000
Prior Years' Expenditures
21,907,974
26,166,159
253,224,568
42,463,560
19,512,846
19,934,237
48,859,263
92,026
4,833,841
3,825,432
7,536,440
14,487,154
65,763
1,140,737
Fund Balances (Deficits) - Beginning of Year
$
Rate
22,000,000
$
50,000,000
REVENUES
Intergovernmental
Federal
-
-
-
-
-
-
-
State
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Other
Total Revenues
EXPENDITURES
Management Services
County Buildings
55,736
-
-
-
-
-
-
-
-
-
-
-
Clean Water Management
-
-
-
-
-
-
-
Historic Preservation
-
-
-
-
-
-
-
-
-
-
-
-
Land
644,685
1,335,855
Land Use and Environmental Services
Community Services
Community Development
-
Park and Recreational Facilities
-
-
Library Facilities
-
-
20,071
-
Community College Facilities
-
-
46,323
School Facilities
-
-
(20,417)
7,536,440
1,235,676
640,858
-
882,966
-
-
-
135,557
-
-
-
-
3,117
64,782
33,555
-
-
-
-
-
-
1,100,899
Detention and Court Support Services
Jail/Detention Facilities
Business Partners
Total Expenditures
-
75,807
1,880,361
666,764
7,536,440
2,357,495
64,782
1,134,454
(75,807)
(1,880,361)
(666,764)
(7,536,440)
(2,357,495)
(64,782)
(1,134,454)
REVENUES OVER (UNDER)
EXPENDITURES
OTHER FINANCING SOURCES
Bonds issued
-
-
-
-
-
-
-
Certificates of participation issued
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Total Other Financing Sources
FUND BALANCES (DEFICITS) END OF YEAR
$
16,219
$
2,953,480
$
3,158,668
$
-
$
12,129,659
$
981
$
6,283
(Continued)
C-6
MECKLENBURG COUNTY, NORTH CAROLINA
CAPITAL PROJECTS FUNDS
COMBINING SCHEDULE OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES (DEFICITS)
FOR THE YEAR ENDED JUNE 30, 2003
(CONTINUED)
Project Authorization
$
Prior Years' Revenues
2000D
2000E
2001A
2001D
2002A
Public
Variable
Public
Public
Public
Public
Improvement
Rate
Improvement
Improvement
Improvement
Improvement
100,000,000
$
50,000,000
$
105,000,000
$
56,000,000
2002B
$ 14,400,000
$
139,000,000
100,000,000
50,000,000
105,000,000
56,000,000
-
Prior Years' Expenditures
82,323,621
49,690,230
97,582,755
54,639,922
-
23,386,201
-
Fund Balances (Deficits) - Beginning of Year
17,676,379
309,770
7,417,245
1,360,078
-
(23,386,201)
REVENUES
Intergovernmental
Federal
-
-
-
-
-
-
State
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
36,166
24,631
1,136,660
-
-
-
-
36,636,465
-
-
-
-
-
-
-
-
-
-
-
Other
Total Revenues
EXPENDITURES
Management Services
County Buildings
650,198
Land
-
Land Use and Environmental Services
Clean Water Management
-
Historic Preservation
2,254,340
235,793
Community Services
Community Development
Park and Recreational Facilities
Library Facilities
-
-
-
94,115
-
-
3,852,755
-
-
-
-
-
-
-
-
-
-
-
-
7,576,676
-
-
40,530,164
900,845
-
-
2,485,275
Detention and Court Support Services
Jail/Detention Facilities
-
Business Partners
Community College Facilities
855,920
School Facilities
-
-
Total Expenditures
7,417,245
-
-
7,707,328
235,793
7,417,245
937,011
24,631
88,365,240
(7,707,328)
(235,793)
(7,417,245)
(937,011)
(24,631)
(88,365,240)
REVENUES OVER (UNDER)
EXPENDITURES
OTHER FINANCING SOURCES
Bonds issued
-
-
-
Certificates of participation issued
-
-
-
-
-
-
Total Other Financing Sources
-
-
14,400,000
139,000,000
-
-
14,400,000
139,000,000
FUND BALANCES (DEFICITS) END OF YEAR
$
9,969,051
$
73,977
$
-
$
423,067
$ 14,375,369
$
27,248,559
(Continued)
C-6
MECKLENBURG COUNTY, NORTH CAROLINA
CAPITAL PROJECTS FUNDS
COMBINING SCHEDULE OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES (DEFICITS)
FOR THE YEAR ENDED JUNE 30, 2003
(CONCLUDED)
2002C
2003B
Variable
Public
Rate
Project Authorization
$
Prior Years' Revenues
Improvement
25,000,000
$
-
Prior Years' Expenditures
Fund Balances (Deficits) - Beginning of Year
Certificates of
40,000,000
Participation
$
59,420,000
Other
Total
Capital
Capital
Funding
$
Projects
78,857,764
$
1,566,726,764
-
54,000,000
115,121,328
1,379,170,328
7,994,960
-
32,510,266
116,602,906
1,329,189,382
(7,994,960)
-
21,489,734
(1,481,578)
49,980,946
REVENUES
Intergovernmental
Federal
-
-
-
275,730
275,730
State
-
-
-
14,695,526
14,695,526
-
-
-
1,022,634
1,022,634
-
-
-
15,993,890
15,993,890
County Buildings
-
-
-
2,109
4,256,492
Land
-
-
-
-
36,636,465
Other
Total Revenues
EXPENDITURES
Management Services
Land Use and Environmental Services
Clean Water Management
-
-
-
104,083
104,083
Historic Preservation
-
-
-
74,556
2,564,689
Community Services
Community Development
-
-
Park and Recreational Facilities
-
-
190,897
Library Facilities
-
-
2,692,136
Detention and Court Support Services
-
108,849
108,849
325,140
6,769,148
-
7,781,347
-
Jail/Detention Facilities
-
-
-
43,958
165,483
Business Partners
Community College Facilities
-
School Facilities
Total Expenditures
-
-
-
15,896,164
17,005,040
30,761,188
6,967,584
14,943,660
117,723,659
17,005,040
30,761,188
9,850,617
15,602,355
192,006,379
(17,005,040)
(30,761,188)
(9,850,617)
25,000,000
40,000,000
REVENUES OVER (UNDER)
EXPENDITURES
391,535
(176,012,489)
OTHER FINANCING SOURCES
Bonds issued
Certificates of participation issued
-
Total Other Financing Sources
-
-
25,000,000
40,000,000
-
218,400,000
5,420,000
-
5,420,000
5,420,000
-
223,820,000
FUND BALANCES (DEFICITS) END OF YEAR
$
-
$
9,238,812
$
17,059,117
$
(1,090,043)
$
97,788,457
D-1
MECKLENBURG COUNTY, NORTH CAROLINA
COMBINING STATEMENT OF NET ASSETS
AGENCY FIDUCIARY FUNDS
JUNE 30, 2003
Municipalities'
Taxes
Employees'
Insurance
Fee Collection
for State
2,301,398
2,301,398
$ 3,685,585
8,512
3,694,097
$ 1,863,324
1,863,324
55,917
2,245,481
2,301,398
3,694,097
3,694,097
11,150
1,852,174
1,863,324
Food and
Beverage
Tax
Other
Total
ASSETS
Cash and investments
Accounts receivable
TOTAL ASSETS
$
$
7,445
7,445
$ 328,246
328,246
7,445
7,445
328,246
328,246
$
8,185,998
8,512
8,194,510
LIABILITIES
Accounts payable and accrued liabilities
Due to other governmental agencies
TOTAL LIABILITIES
4,089,410
4,105,100
8,194,510
NET ASSETS
Net Assets
$
-
$
-
$
-
$
-
$
-
$
-
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, 2003
Project
Authorization
Actual
Prior Year
Current Year
Variance
Total to Date
Favorable
Community Development Block Grant
Block Grant #01-C-0803
REVENUES
Grant Proceeds
$
Mecklenburg County
Total Revenues
400,000
$
-
$
71,266
$
71,266
$
328,734
17,500
-
-
-
17,500
417,500
-
71,266
71,266
346,234
EXPENDITURES
Rehabilitation
317,500
-
65,026
65,026
252,474
Relocation
60,000
-
2,690
2,690
57,310
Administration
40,000
-
3,550
3,550
36,450
417,500
-
71,266
71,266
346,234
-
$
-
$
-
58,357
$
58,357
$
1,643
Total Expenditures
REVENUES OVER EXPENDITURES
$
-
$
-
$
60,000
$
-
Charlotte-Mecklenburg Regional Home Consortium
REVENUES
Grant Proceeds
$
EXPENDITURES
Constructions
REVENUES OVER EXPENDITURES
60,000
$
-
$
-
58,357
-
-
58,357
$
-
1,643
$
-
$
36,027
North Carolina Clean Water Management Trust
Lower McAlpine Creek Greenway Project 1998B-702
REVENUES
Grant Proceeds
$
209,000
$
107,344
$
65,629
$ 172,973
65,629
172,973
EXPENDITURES
Construction
REVENUES OVER EXPENDITURES
209,000
$
-
107,344
$
-
-
$
-
36,027
$
-
Storm Water Project 1998B-002
REVENUES
Grant Proceeds
$
940,000
$
171,567
$ 126,926
$ 298,493
171,567
126,926
298,493
$
641,507
EXPENDITURES
Construction
REVENUES OVER EXPENDITURES
940,000
$
-
$
-
-
FUND BALANCE -BEGINNING OF YEAR
FUND BALANCE -END OF YEAR
$
-
$
-
641,507
$
-
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, 2003
Budget
Actual
REVENUES
General property tax - current
$ 1,931,563
Charges for services
Other
Total Revenues
$
-
-
188,760
9,700
239,061
1,941,263
427,821
EXPENDITURES
Capital outlay
9,376,990
6,767,829
Total Expenditures
9,376,990
6,767,829
REVENUES UNDER EXPENDITURES
(7,435,727)
(6,340,008)
7,018,659
2,920,658
OTHER FINANCING SOURCES
Operating transfer from General Fund
Appropriated fund balance
417,068
Total Other Financing Sources
-
7,435,727
2,920,658
REVENUES AND OTHER
FINANCING SOURCES UNDER EXPENDITURES
$
-
(3,419,350)
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
11,367,120
$
7,947,770
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, 2003
Budget
Actual
REVENUES
Intergovernmental
Federal
$
2,084,093
$ 1,471,735
State
2,437,323
517,122
Local
1,015,381
889,784
8,288,872
9,368,247
Charges for services
Interest earned on investments
-
Other
Total Revenues
63,579
443,215
560,727
14,268,884
12,871,194
12,684,637
6,120,279
2,038,924
1,784,719
1,352,843
1,352,843
EXPENDITURES
Land Use and Environmental Services
Storm Water Services
Capital Outlay
Debt Service
Principal retirement - bonds
Interest
Total Expenditures
657,468
657,468
16,733,872
9,915,309
(2,464,988)
2,955,885
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES:
Transfer from other fund
126,987
Capitalized lease
-
Appropriated fund balance
2,338,001
Total Other Financing Sources
2,464,988
104,260
104,260
REVENUES AND OTHER FINANCING
SOURCES OVER EXPENDITURES
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
$
-
3,060,145
6,191,519
$ 9,251,664
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, 2003
Budget
Actual
$ 11,580,860
$ 11,390,346
REVENUES
Law Enforcement Service District taxes
Interest earned on investments
Total Revenues
90,000
10,958
11,670,860
11,401,304
EXPENDITURES
Business Partners:
Law Enforcement Services
Total Expenditures
REVENUES UNDER EXPENDITURES
11,891,718
11,882,895
11,891,718
11,882,895
(220,858)
(481,591)
OTHER FINANCING SOURCES
Appropriated fund balance
220,858
-
REVENUES AND OTHER FINANCING
SOURCES UNDER EXPENDITURES
$
-
(481,591)
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE (DEFICIT) - END OF YEAR
262,230
$
(219,361)
F-4
MECKLENBURG COUNTY, NORTH CAROLINA
STATEMENT 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, 2003
Budget
Actual
$ 29,300,000
$ 27,272,168
29,300,000
27,775,263
REVENUES
Transit one-half cent sales tax
EXPENDITURES
Business Partners
REVENUES UNDER EXPENDITURES
$
-
(503,095)
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
7,258,613
$
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, 2003
Actual
Project
Prior
Current
Total
Authorization
Years'
Year
to Date
$ 2,842,095
$ 2,842,095
500,785
1,970,952
REVENUES
Additional one-half cent sales tax
Interest earned on investments
Other
Total Revenues
$
12,015,143
$
39,075
53,680
14,857,238
2,010,027
-
53,680
3,342,880
4,866,727
12,054,218
16,920,945
1,962,131
1,075,832
34,150
1,109,982
1,380,749
3,790,895
12,020,068
15,810,963
(1,380,749)
(1,380,749)
EXPENDITURES
Capital outlay
REVENUES OVER EXPENDITURES
OTHER FINANCING USES
Operating transfer to other funds
-
(1,380,749)
REVENUES OVER EXPENDITURES
AND OTHER FINANCING USES
$
-
$ 2,410,146
12,020,068
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE -END OF YEAR
2,410,146
$
14,430,214
$
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, 2003
Budget
Actual
REVENUES
Intergovernmental - State
$
Interest earned on investment
1,555,352
$ 808,787
-
Total Revenues
1,089
1,555,352
809,876
1,606,212
856,974
EXPENDITURES
Land Use and Environmental Services
REVENUES UNDER EXPENDITURES
(50,860)
(47,098)
50,860
-
-
(47,098)
OTHER FINANCING SOURCES
Appropriated fund balance
REVENUES AND OTHER FINANCING
SOURCES UNDER EXPENDITURES
$
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
51,391
$
4,293
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, 2003
Budget
Actual
REVENUES
Other
$
509,906
$
181,579
EXPENDITURES
Land Use and Environmental Services
799,690
423,786
(289,784)
(242,207)
Transfer from other fund
147,437
147,437
Appropriated fund balance
142,347
REVENUES UNDER EXPENDITURES
OTHER FINANCING SOURCES
Total Other Financing Sources
-
289,784
147,437
REVENUES AND OTHER FINANCING
SOURCES UNDER EXPENDITURES
$
-
(94,770)
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
142,347
$
47,577
F-8
MECKLENBURG COUNTY, NORTH CAROLINA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL - SHERIFF'S SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 30, 2003
Budget
Actual
REVENUES
Licenses and Permits
$
Other
Total Revenues
EXPENDITURES
Detention and Court Support Services
REVENUES UNDER EXPENDITURES
19,565
$
92,815
164,278
199,331
183,843
292,146
546,957
390,294
(363,114)
(98,148)
363,114
-
OTHER FINANCING SOURCES
Appropriated fund balance
REVENUES AND OTHER FINANCING
SOURCES UNDER EXPENDITURES
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
$
-
(98,148)
363,115
$ 264,967
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, 2003
Budget
Actual
REVENUES
Charges for services
$
650,000
$
721,988
EXPENDITURES
Capital outlay
REVENUES OVER (UNDER) EXPENDITURES
967,689
516,365
(317,689)
205,623
OTHER FINANCING SOURCES
Appropriated fund balance
Total Other Financing Sources
317,689
-
317,689
-
REVENUES AND OTHER FINANCING
SOURCES OVER EXPENDITURES
$
-
205,623
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
317,690
$
523,313
F - 10
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, 2003
Budget
Actual
REVENUES
Intergovernmental - City
$
211,000
$
211,000
EXPENDITURES
Capital outlay
REVENUES OVER EXPENDITURES
211,000
$
198,261
-
12,739
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
$
12,739
G-1
MECKLENBURG COUNTY, NORTH CAROLINA
STATEMENT OF REVENUES AND EXPENSES - BUDGET (MODIFIED ACCRUAL BASIS) AND ACTUAL
SOLID WASTE OPERATING FUND
FOR THE YEAR ENDED JUNE 30, 2003
Budget
Actual
$ 10,273,549
$ 10,347,962
228,992
763,252
10,502,541
11,111,214
Operating Revenues
Charges for services
Other
Total Operating Revenues
Operating Expenses
Personal services and employee benefits
3,206,323
3,075,184
Utilities
109,800
119,961
Supplies
374,215
399,266
Maintenance and repairs
490,099
362,561
Rental and occupancy charges
126,502
116,869
3,004,871
2,651,383
Contractual services
Final development and postclosure costs
Total Operating Expenses
Operating Income
491,668
491,668
7,803,478
7,216,892
2,699,063
3,894,322
Non-operating Revenues (Expenses)
Grant revenue
-
785,158
Interest Income
200,000
173,055
Interest expense
(828,345)
(739,220)
Transfer from other funds
1,052,500
Transfer to other funds
Capital outlay
(147,437)
(353,573)
Total Non-operating Revenues (Expenses)
Net income - Modified accrual basis
-
(2,152,437)
-
(2,081,855)
$
71,556
617,208
3,965,878
Reconciliation to full accrual basis
Depreciation
(1,033,214)
Landfill final development and postclosure care costs
(805,000)
Transfer to landfill reserve fund
(1,200,000)
Loss on sale of capital assets
(1,425)
Amortization of refunding amount
(100,325)
Other
(250,762)
Net Income - Full Accrual Basis
$
575,152
G-2
MECKLENBURG COUNTY, NORTH CAROLINA
LANDFILL CONSTRUCTION, FINAL DEVELOPMENT AND POSTCLOSURE RESERVE FUND
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF REVENUES AND EXPENDITURES
BUDGET AND ACTUAL (NON-GAAP)
FROM INCEPTION AND FOR THE YEAR ENDED JUNE 30, 2003
Project
Authorization
REVENUES
Interest earned on investments
$ 583,910
EXPENDITURES
Landfill construction
Final development and postclosure costs
Total expenditures
Actual
Current
Year
Prior
Years'
$
725,451
$
40,428
Total to
Date
$
765,879
1,739,673
3,373,910
5,113,583
486,221
1,749,502
2,235,723
295,982
622,752
918,734
782,203
2,372,254
3,154,457
REVENUES UNDER EXPENDITURES
(4,529,673)
(1,510,272)
(878,306)
(2,388,578)
OTHER FINANCING SOURCES
Operating transfer from Solid Waste
Enterprise Fund
4,529,673
3,329,673
1,200,000
4,529,673
$ 1,819,401
$ 321,694
$ 2,141,095
EXCESS OF REVENUES OVER
EXPENDITURES AND OTHER FINANCING
SOURCES
$
-
STATISTICAL
MECKLENBURG COUNTY
TABLES in this section provide trends, statistical and demographic
information about the County.
STATISTICAL
MECKLENBURG COUNTY
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
2003
2002
$
4,030,103
$ 38,725,174
-
-
$
42,004,729
$
3,256,165
16,384,192
$
912,818
Health
Detention and
and
Community
Court Support
Human
Business
Interest on
Long-term
Solid Waste
Total
Services
Services
Services
Services
Partners
Debt
Operations
Expenses
$ 43,001,664
$ 66,611,979
$ 88,349,286
$ 272,484,306
$ 562,530,240
$ 61,918,860
$ 10,279,190
42,826,310
31,032,651
82,703,642
270,190,779
554,898,570
55,236,067
9,131,738
$
1,151,186,967
1,105,321,496
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
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
$
7,268,133
14,381,221
Total
Miscellaneous
$
Revenues
1,510,628
$ 1,039,984,162
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
2003
$3,956,605
Management
Services
2002
41,515,761
Policy
Development
and
Management
Support Services
Financial
Services
Land Use
and
Environmental
Services
$35,273,845
$5,117,608
$44,749,116
Financial
Services
Customer
Satisfaction
and
Communications
6,321,146
Corporate
Support Services
906,866
Regulatory
and
Operational
Services
Community
Services
Detention
and
Court Support
Services
Health
and
Human Services
Business
Partners
Capital
Outlay
Debt
Service
Totals
$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
Community
Services
Detention
and
Court Support
Services
Health
and
Human Services
Business
Partners
Capital
Outlay
Debt
Service
Totals
50,947,149
29,274,220
74,084,024
Community
Services
Public Safety
and Court
Support Services
Health
and
Human Services
Government
Relations
269,324,679
346,405,695
303,927,878
141,061,309
Capital
Outlay
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
Human
Services
Education
General
Government
Supportive
Court
Services
NonDepartmental
Capital
Outlay
Debt
Service
Totals
1995
16,548,212
35,521,914
34,152,254
24,775,820
6,101,051
183,594,583
139,640,201
40,239,419
117,164,961
62,619,907
660,358,322
1994
17,234,541
29,959,447
31,680,425
24,971,495
4,809,836
163,993,990
128,566,969
40,026,230
97,039,207
53,774,154
592,056,294
Notes:
Includes General, Special Revenue and Capital Projects Funds.
Mecklenburg County used a core business classification for years 1996 to 2001.
TABLE 2
MECKLENBURG COUNTY, NORTH CAROLINA
GENERAL GOVERNMENTAL REVENUES BY SOURCE (1)
LAST TEN FISCAL YEARS
Fiscal Year
Ended
June 30,
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
Licenses
and
Permits
Taxes and
Assessments
$
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
387,219,650
$
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
8,060,009
Charges
for
Services
Intergovernmental
$
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
92,083,722
Notes:
(1) Includes General, Special Revenue and Capital Projects Funds.
(2) Includes interest earned on investments, administrative charges and other.
$
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
27,125,607
Other (2)
$
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
15,627,900
Totals
$ 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
530,116,888
TABLE 3
MECKLENBURG COUNTY, NORTH CAROLINA
GENERAL FUND TAX REVENUE BY SOURCE
LAST TEN FISCAL YEARS
Fiscal Year
Ended
June 30,
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
General
Property (1)
Total
$
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
387,219,650
$
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
307,755,503
Sales
$
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
66,445,318
Intangibles(2)
$
1,118,174
12,077,176
Room
Occupancy
$
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
905,732
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.
1,739,114
1,655,111
1,681,005
-
Other
$
21,493
72,858
68,679
90,893
38,235
71,537
48,376
35,213
33,066
35,921
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
2003
2002
563,710,798
96.49%
$ 12,296,776
2002
2001
567,874,819
551,873,811
97.18
2001
2000
469,522,916
456,774,995
2000
1999
440,731,629
1999
1998
1998
Total Tax
Levy
$
584,218,432
Current Tax
Collections
$
Total Tax
Collections
576,007,574
98.59%
9,178,893
561,052,704
98.80
97.28
8,411,914
465,186,909
429,493,650
97.45
8,173,138
392,471,397
381,520,070
97.21
1997
349,395,228
340,196,430
1997
1996
332,781,981
1996
1995
1995
1994
Outstanding
Delinquent
Taxes
$
Percent of
Delinquent
Taxes to
Tax Levy
34,153,457
5.85%
28,478,381
5.01
99.08
23,146,475
4.93
437,666,788
99.30
21,676,929
4.92
7,330,924
388,850,994
99.08
21,200,392
5.40
97.37
6,769,605
346,966,035
99.30
19,733,333
5.65
324,375,218
97.47
5,642,197
330,017,415
99.17
18,737,412
5.63
336,708,024
329,841,306
97.96
5,377,387
335,218,693
99.56
17,092,527
5.08
1994
328,591,611
321,860,507
97.95
4,003,664
325,864,171
99.17
16,089,085
4.90
1993
311,312,041
305,965,766
98.28
3,286,408
309,252,174
99.34
13,925,841
4.47
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
FOR THE YEAR ENDED JUNE 30, 2003
Tax
Year
Fiscal Year
Ended
June 30,
Assessed
Valuation (1)
CountyWide Rate
Levy
2002
2003
$ 69,505,170,341
$ .8397
$ 584,218,432
2001
2002
67,895,358,854
.8397
567,874,819
551,873,811
16,001,008
9,507,239
2000
2001
64,210,268,149
.73
469,522,916
463,918,796
5,604,120
1,471,840
1999
2000
60,401,969,125
.73
440,731,629
437,924,352
2,807,277
613,900
1998
1999
57,080,405,642 (3)
.685
392,471,397
391,196,216
1,275,181
265,416
1997
1998
47,876,894,849
.73
349,395,228
348,512,886
882,342
1996
1997
45,407,072,470
.73
332,781,981
332,079,709
1995
1996
41,830,623,848
.8050
336,708,024
1994
1995
40,860,606,101
.8050
1993
1994
38,536,917,481
.8095
Notes:
(1)
(2)
(3)
(4)
Collections and
Credits to
June 30, 2002
$
-
Taxes
Receivable
July 1, 2002
$
$ 563,710,798
Writeoffs (2)
$
-
$ 20,507,634
-
Less:
Bankruptcies (4)
$20,507,634
6,493,769
-
6,493,769
1,052,805
3,079,475
-
3,079,475
776,932
1,416,445
-
1,416,445
-
1,009,765
-
1,009,765
159,453
-
722,889
388,133
334,756
702,272
125,893
-
576,379
344,479
231,900
336,147,919
560,105
72,471
-
487,634
343,111
144,523
328,591,611
327,321,371
1,270,240
56,976
-
1,213,264
278,075
935,189
311,312,041
310,915,334
396,707
23,588
-
373,119
293,209
79,910
$ 4,113,608,078
$ 3,499,890,394
29,499,252
$ 576,007,574
$ 35,880,373
$ 1,647,007
$ 34,233,366
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.
$ 1,829,737
$
Net
Taxes
Receivable
June 30, 2003
-
$
-
Collections
and Credits
Taxes
Receivable
June 30, 2003
TABLE 6
MECKLENBURG COUNTY, NORTH CAROLINA
ANALYSIS OF CURRENT TAX LEVY
JUNE 30, 2003
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
Discoveries:
Prior year taxes
Penalties
Total
Rebates
Total net property valuation
Net levy
Total Levy
Property
Excluding
Registered
Registered
Motor
Motor
Vehicles
Vehicles
Property
Valuation
Rate
Amount
of Levy
$ 62,977,052,553
$ .8397
$ 528,818,311
3,762,966,536
.8397
31,597,630
-
31,597,630
2,498,151,363
.8397
20,976,977
-
20,976,977
69,238,170,452
$ 528,818,311
$
-
581,392,918
528,818,311
2,065,330
760,185
3,163,711
1,010,355
-
266,999,889
2,825,515
4,174,066
-
(351,752,274)
(2,953,664)
(1,790,277)
266,999,889
-
Various
52,574,607
(1,163,387)
$ 69,153,418,067
581,264,769
531,202,100
51,411,220
Uncollected taxes at
June 30, 2003
20,507,633
13,725,874
6,781,759
Current year's taxes
collected
$ 560,757,136
$ 517,476,226
$ 44,629,461
Current net levy collection
percentage
96.47%
97.42%
86.81%
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
2003
$ 53,292.3
$ 12,890.8
$ 3,434.3
2002
51,009.3
12,870.0
2001
48,090.1
2000
Less
Elderly
Exemptions
$
Total
Assessed
Valuation (2)
(112.3)
69,505.1
4,063.4
(47.4)
67,895.3
12,341.0
3,828.0
(48.9)
64,210.2
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
1994
28,354.5
6,591.7
3,629.9
(39.2)
38,536.9
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. The last revaluation was completed for fiscal year 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
2003
Charlotte
Cornelius
Davidson
Mint Hill
Pineville
$ .8397
$ .467
$ .29
$ .355
$ .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
1994
.8095
.428
.2825
.20
.39
.16
.135
.20
(1) Revaluation
Source (other than Mecklenburg County): North Carolina Tax Research Division
Huntersville
$ .312
Matthews
TABLE 9
MECKLENBURG COUNTY, NORTH CAROLINA
PROPERTY TAX LEVIES - DIRECT AND OVERLAPPING GOVERNMENTS
LAST TEN FISCAL YEARS
Fiscal Year
Ended
June 30,
2003
Mecklenburg
County
$
584,218,432
Charlotte (2)
$
237,794,566
Cornelius
$
6,945,258
Davidson
$
2,609,484
Huntersville
$
8,590,399
Matthews
$
6,964,701
Mint Hill
$
3,690,644
Pineville
$
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
1994
311,312,041 (1)
111,911,072
1,124,488
478,689
1,477,405
1,813,327
914,339
1,052,773
(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, 2003
Public Improvements Refunding Bonds 1986
Public Improvements Refunding Bonds 1993
Public Improvements 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
Due
Serially
Average
Interest
Original
Balance
Issue Date
To
Rate
Issue
July 1, 2002
July 1, 1986
October 1, 1993
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
2004
2012
2011
2013
2013
2013
2015
2016
2016
2018
2010
2010
2020
2010
2020
2018
2021
2013
2021
2005
2018
2020
2022
2020
2023
2011
7.1686
4.6630
4.6679
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
$
102,300,000
272,295,000
18,400,000
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
$ 2,272,765,000
$
1,410,000
168,340,000
12,400,000
4,400,000
16,575,000
169,425,000
50,000,000
25,950,000
214,550,000
50,000,000
27,200,000
16,000,000
50,000,000
94,000,000
50,000,000
105,000,000
25,000,000
144,820,000
56,000,000
30,195,000
$ 1,311,265,000
The bonds are recorded as follows:
Governmental activities
Business-type activities
Sold
$
$
14,400,000
139,000,000
25,000,000
193,000,000
40,000,000
12,160,000
423,560,000
Retired
$
1,410,000
19,140,000
12,400,000
2,200,000
1,050,000
10,950,000
1,500,000
12,500,000
3,400,000
2,000,000
6,000,000
5,000,000
4,555,000
2,200,000
13,485,000
495,000
$ 98,285,000
Balance
Interest
Paid In
June 30, 2003
Current Year
$
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
$ 1,624,650,804
11,889,196
$ 1,636,540,000
$
78,938
7,899,290
299,895
237,600
805,575
8,235,425
608,493
1,145,800
9,472,200
630,630
1,360,000
800,000
636,849
4,600,000
650,959
4,865,000
325,479
7,914,263
2,755,200
1,509,750
269,500
2,822,750
265,072
132,658
87,654
$ 58,408,980
TABLE 11
MECKLENBURG COUNTY, NORTH CAROLINA
SCHEDULE OF CERTIFICATES OF PARTICIPATION PAYABLE
June 30, 2003
Certificates of Participation
2000 Certificates
2001 Certificates
2002 Certificates
Issue Date
April 1, 2000
November 1, 2001
August 1, 2002
Due Serially
To
2020
2021
2009
Average
Interest
Rate
variable
variable
variable
Original
Issue
Balance
July 1, 2002
$ 25,000,000
29,000,000
5,420,000
$ 59,420,000
$ 22,500,000
29,000,000
$ 51,500,000
Issued
Retired
Balance
June 30,2003
Interest Paid
Current Year
5,420,000
$ 5,420,000
$ 1,250,000
1,450,000
$ 2,700,000
$ 21,250,000
27,550,000
5,420,000
$ 54,220,000
$
$
$
289,986
368,703
52,633
711,323
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
$
69,505,170,341
Gross
Bonded Debt
2003
773,299
$
1,636,540,000
2002
746,427
67,895,358,854
1,311,265,000
2001
720,490
64,210,268,149
2000
695,454
1999
Payable from
Enterprise
Fund
$
11,889,196
Net Bonded
Debt
$
Percent of
Net Bonded
Debt to
Assessed Value
Net Bonded
Debt Per
Capita
1,624,650,804
2.34 %
$ 2,101
14,391,837
1,296,873,163
1.91
1,737
1,333,610,000
17,061,296
1,316,548,704
2.05
1,827
60,401,969,125
1,123,385,000
19,334,255
1,104,050,745
1.83
1,588
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
1994
585,041
38,536,917,481
671,520,000
53,560,364
617,959,636
1.59
1,056
TABLE 13
MECKLENBURG COUNTY, NORTH CAROLINA
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
GENERAL OBLIGATION BONDS
FOR THE YEAR ENDED JUNE 30, 2003
Assessed
Valuation (1)
Percent of
Assessed
Valuation to
Countywide
Total
Pro Rata
Share of
Countywide
Debt
Municipalities'
Debt (2)
Total
Overlapping
Debt
$ 1,207,602,866
$ 925,335,000
$ 2,132,937,866
2,800,000
59,915,246
Mecklenburg County:
Charlotte
$ 50,919,607,339
Cornelius
2,409,681,107
3.49
0.58 57,115,246
Davidson
737,676,698
1.07
0.64 17,510,978
-
17,510,978
Huntersville
2,789,295,142
4.04
0.42 66,116,216
-
66,116,216
Matthews
2,201,249,453
3.19
3.18 52,205,626
5,850,000
58,055,626
Mint Hill
1,288,322,669
1.87
1.63 30,603,298
7,450,000
38,053,298
Pineville
864,635,943
1.25
1.25 20,456,750
385,000
20,841,750
7,793,834,358
11.30
184,929,020
Unincorporated
Areas
Countywide Totals
$69,004,302,709
73.79 %
100.00%
$1,636,540,000
-
$941,820,000
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.
184,929,020
$2,578,360,000
TABLE 14
MECKLENBURG COUNTY, NORTH CAROLINA
COMPUTATION OF LEGAL DEBT MARGIN
JUNE 30, 2003
Assessed Value
$ 69,505,170,341
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
5,560,413,627
$ 1,636,540,000
544,300,000
2,180,840,000
$ 3,379,573,627
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
2003
$ 85,933,382
2002
Ratio of Debt
Service to Total
Expenditures
Other
Total Debt
Service
Total
Expenditures (2)
$ 59,115,495
$ 2,803,365
$ 147,852,242
$ 1,267,306,693
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
1994
28,332,357
22,443,046
1,233,686
52,009,089
592,056,294
8.79
Notes:
(1) General obligation bond debt service reported in the Enterprise Fund has been excluded.
(2) Includes General, Special Revenue, and Capital Projects Funds.
11.66 %
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
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
1994
8,476
89,130
TABLE 17
MECKLENBURG COUNTY, NORTH CAROLINA
DEMOGRAPHIC STATISTICS
LAST TEN YEARS
Year
Population
Per Capita
Income
Median
Age
School
Enrollment
2003
773,299
N/A
N/A
109,605
5.7% (1)
2002
746,427
23,201
33.4
106,192
5.9
2001
720,490
23,250
33.3
103,086
4.1
2000
695,454
22,684
33.1
100,368
2.4
1999
677,051
21,783
34.3
98,542
1.9
1998
658,649
20,997
33.8
95,797
2.4
1997
640,247
20,099
33.6
92,994
2.6
1996
621,845
18,705
33.3
88,854
3.0
1995
603,443
17,736
33.1
85,240
3.1
1994
585,041
19,656
33.0
82,069
3.5
Note (1)
Monthly average - January through June
Sources:
Charlotte Chamber of Commerce
N.C. Office Of State Planning
Charlotte-Mecklenburg Schools
Unemployment
Rate
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
2003
4,300
$ 732.7
14,327
$ 1,512.5
N/A
$ 28,513.6
$ 41,103.9
$ (112.3)
2002
4,396
825.6
14,780
1,739.5
N/A
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)
1994
5,131
444.2
6,315
622.1
9,018,918
17,150.3
21,425.8
(39.2)
Notes: (1) Provided by Chamber of Commerce.
TABLE 19
MECKLENBURG COUNTY, NORTH CAROLINA
PRINCIPAL TAXPAYERS
JUNE 30, 2003
Firm
Enterprise
Assessed
Valuation
$ 2,037,549,565
Percentage
of Total
Assessed
Valuation
Duke Energy
Utility
Bank of America
Financial Services
799,647,210
1.15
Wachovia Corporation
Financial Services
779,378,607
1.12
BellSouth Telecommunications
Utility
538,364,830
0.77
USAirways, Incorporated
Transportation
512,625,023
0.74
Childress Klein
Property Management and Development
343,150,993
0.49
Piedmont Natural Gas Company, Inc.
Utility
254,211,332
0.36
Carolina Stadium/Panthers
Football Stadium
173,714,733
0.25
General Tire
Manufacturing
144,050,076
0.21
Charlotte Gateway
Residential
129,232,180
0.19
$5,711,924,549
2.93 %
8.22 %
TABLE 20
MECKLENBURG COUNTY, NORTH CAROLINA
MISCELLANEOUS STATISTICS
JUNE 30, 2003
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
1762
County Manager
541 square miles
2,044
1,010
44
20
630
9
6
1,499
819
144
7,122
109,605
18,627
123
5
4
23
Approximately 1.6 million
4,053
457