mecklenburg
mecklenburg county
north carolina
county
2002
Comprehensive Annual Financial Report
For the Fiscal Year Ended June 30, 2002
Vision Statement
To be the best local government service provider.
Mission Statement
To serve Mecklenburg County residents by helping improve their lives and community.
www.charmeck.org/departments
(select “finance - county”)
mecklenburg county
north carolina
Comprehensive Annual Financial Report
For the Fiscal Year Ended June 30, 2002
J. Harry Weatherly, Jr.
Director of Finance
Prepared by the Finance Department
Table of Contents
INTRODUCTION
Letter of Transmittal
Board of County Commissioners
Organization Chart
Five Year Trends
Facts and Information
GFOA Certificate of Achievement
i
vi
vii
viii
xi
xxiii
FINANCIAL
Independent Auditors’ Report
1
Management’s Discussion and Analysis
3
Basic Financial Statements
Government-wide Financial Statements
Statement of Net Assets (Deficit)
Statement of Activities
Fund Financial Statements
Governmental Funds
Balance Sheet
Statement of Revenues, Expenditures and Changes in
Fund Balances (Deficit)
Reconciliation of the Statement of Revenues, Expenditures
and Changes in Fund Balances (Deficit) 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
Separation Allowance for Law Enforcement Officers – Schedule of
Employer Contributions
12
13
14
15
16
17
20
21
22
23
24
51
52
Table of Contents
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
Capital Projects Funds
Combining Balance Sheet
Combining Schedule of Revenues, Expenditures and Changes
in Fund Balances
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
53
54
55
56
57
58
62
66
67
68
69
70
71
72
73
74
75
76
Table of Contents
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
77
78
STATISTICAL
Government-wide Information
Government-wide Expenses by Function
Government-wide Revenues
Fund Information
General Governmental Expenditures by Function
General Governmental Revenues by Source
General Fund Tax Revenues by Source
Property Tax Levies, Tax Collections and Credits
Tax Revenue
Analysis of Current Tax Levy
Assessed and Estimated Actual Value of Taxable Property
Property Tax Rates Per $100 Assessed Valuation – Direct and
Overlapping Governments
Property Tax Levies – Direct and Overlapping Governments
Schedule of Bonds Payable
Ratio of Net Bonded Debt to Assessed Valuation and Net
Bonded Debt Per Capita
Computation of Direct and Overlapping Debt – General Obligation Bonds
Computation of Legal Debt Margin
Ratio of Annual Debt Service Expenditures for General Obligation Bonded
Debt to Total General Governmental Expenditures
Special Assessments Billings and Collections
Demographic Statistics
Construction, Bank Deposits and Property Value
Principal Taxpayers
Miscellaneous Statistics
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
mecklenburg
introduction
county
2002
The Introduction provides background and general information about
the County.
Letter of Transmittal
Mecklenburg County
J. Harry Weatherly, Jr.
Director of Finance
October 2, 2002
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,
2002 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, the basic financial statements and the
accompanying notes to the financial statements. Also included are required supplemental information presenting
certain disclosures and combining and individual fund statements of a more detailed nature. New this year is the
narrative introduction, overview and analysis of the County’s financial condition, described as Management’s
Discussion and Analysis, which follows the independent auditors’ report.
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.
i
Letter of Transmittal
The County provides a full range of services, which can be grouped into four broad categories: Health and Human
Services includes social services, health and mental health services; Detention and Court Support Services includes
activities of the Sheriff’s department and court services; Land Use and Environmental Services includes regulation of
land use and development, code enforcement, property assessment, air and water quality, solid waste disposal, and
sanitation of food and lodging establishments; and Community Services includes park and recreation facilities,
election related services and services provided by Cooperative Extension and the Women’s Commission.
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
Fiscal year 2002 marked the second year of Priority 2005, the Board’s strategy for service delivery to the residents of
the County to create a community that is safe, healthy, livable, prosperous, well-governed, and unified. To improve
service delivery and allow the organization to function more efficiently, County departments are organized into eight
core service areas: Management Services, Financial Services, Customer Satisfaction and Communication, Land Use
and Environmental Services, Detention and Court Support Services, Health and Human Services, Community
Services and Business Partners.
Highlighted below are accomplishments and completed projects towards the Priority 2005 goals:
•
Land Use and Environmental Service:
Water and Land Resources completed the floodplain buyout project that removed 135 families from
floodplain areas and restored approximately 35 acres of urban floodplain to open space/greenway buffers
along County creeks.
Solid Waste Disposal completed construction on the second cell of the Foxhole Landfill adding
approximately 28 acres of lined area to the landfill, ensuring available disposal capacity through 2007.
Environmental Health won a NACO award for the health and sanitation training video “Grime & Punishment”
for restaurant employees to reduce the risk of foodborne illness.
• Health and Human Services:
Area Mental Health opened a new supervised apartment, constructed with grant funds that totaled
$400,000, to serve eight consumers with severe and persistent mental illness.
A worksite health program, Health Directions, was created to help companies improve the health of their
employees by focusing on health behaviors such as exercise, diet, tobacco use, and weight, with the goal of
reducing premature deaths from lifestyle choices.
Social Services, through the Work First program, placed over 12,000 individuals in the community
workforce.
The Senior Nutrition Program implemented a frozen meal pilot program that provides five frozen meals
weekly to homebound seniors to help them remain independent in their homes.
Social Services implemented Make the Grade, an educational achievement program for children in Social
Services custody, that resulted in the participants increasing their end of grade reading test scores by 7%.
• Detention and Court Support Services:
Court Services established a Misdemeanor Court to improve the processing of offenders awaiting trial in jail
and thereby reduce/manage the pre-trial jail population.
The 900-bed Jail Central expansion was completed and opened in April, 2002.
Court Services Structured Day Program has been successful 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.
•
Community Services
Park and Recreation opened the first of five spraygrounds for children at Veterans Park.
Land acquisitions totalling 1,203 acres will be used for parks, greenways and watershed protection.
Cooperative Extension in cooperation with Park and Recreation completed the first year of an Americorp
Project for 300 youths at various community sites and day camps.
Economic Factors Affecting Financial Condition
Individuals and businesses continue to be attracted to our rapidly growing region. 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 six million
people live within a 100-mile radius of Mecklenburg County. Over half of the nation’s metropolitan markets with
ii
Letter of Transmittal
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 has become 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 2001 Million Dollar Directory, 708 corporations are headquartered in Mecklenburg
County. Fortune 500 service and industrial companies are represented with over 300 offices in the area, including five
headquartered in the County – Duke Energy, Goodrich, Inc., Nucor, Sonic Automotive, and SPX. Major corporations
operating within the County include IBM, AT&T, and Travelers Insurance. In 2001, business growth included
approximately 897 new or expanded businesses in the County, creating over 9,500 new jobs and representing
approximately $1.2 billion in capital investments.
The County is the second largest financial center in the United States, and serves as headquarters for financial
institutions with assets of approximately $950 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 24 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 representative offices offering investment banking, foreign currency exchange,
multi-currency loans, trade financing, letters of credit, money transfers and cash management. In addition, 347
mortgage and commercial finance institutions operate in the County. Employment in the financial sector is estimated
to exceed 25,000. Also located in the County is a branch of the United States Small Business Administration that is
active in arranging loans for smaller businesses.
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, six
commercial television stations, one public television station, 26 radio stations, a newspaper with an average daily
circulation of over 240,000, and eight weekly newspapers.
Although distribution and finance are the primary areas of activity and growth, and tourism is an expanding industry,
manufacturing continues to be important to the County. Important industries include textiles, food products, printed
and published material, machinery and chemicals. The region has approximately 3,900 manufacturing firms that
employ more than 234,000 workers. Tourism has generated numerous jobs, accounting for 13% of the County’s
employment. This growth results from the numerous events at the Convention Center and visitors attracted by the
sporting events in the area, such as the Carolina Panthers, a National Football League franchise.
Overall, growth is expected to continue at a steady pace, and to continue to exceed the national average. Over the
last ten years employment has grown at a rate approximating 1.9% per year, and this growth is anticipated to
continue. Unemployment is expected to remain near or below the national average. As of June, 2002, the unemployment rate for Mecklenburg County was 5.9%, compared to 6.5% for the state and 5.9% nationally.
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. 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 eleven-member advisory group, nine appointed by the Board and two appointed by
the Board of Education. The CCBAC reviews, evaluates and prioritizes requests and recommends a capital
improvement program to the Board in the spring of odd-numbered years. In June, the Board adopts the capital
improvements program and needed referendums are held in the fall. Bond sales are then scheduled to meet the cash
needs of capital projects. Based on the report of the CCBAC and after review of capital needs, a school bond
referendum in the amount of $224 million was approved by the Board of County Commissioners for November, 2002.
A bond sale was held in November, 2001. The County issued $56 million in general obligation bonds for the
acquisition of land for future use and for park and recreation facilities. Also, in November, 2001, the County issued
$29 million in certificates of participation for school facilities and a recreation center.
iii
Letter of Transmittal
Financial Information
County management is responsible for establishing and maintaining a comprehensive internal control framework
designed to ensure that the assets of the County are protected from loss, theft or misuse, and that accounting data
are compiled to allow for the preparation of financial statements in conformity with generally accepted accounting
principles. The internal control framework is designed to provide reasonable, but not absolute, assurance that these
objectives are met. The concept of reasonable assurance recognizes that: 1) the cost of a control should not exceed
the benefits thereof; and 2) the evaluation of costs and benefits requires estimates and 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
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 investment 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. This year’s investment earnings represented 2.10 cents on the property tax rate with
the average interest on the investment portfolio yielding 3.19% at year-end. The average yields on six- and twelvemonth Treasury constant maturities were 1.75% and 2.06%, respectively, at year-end. The County’s average return
earned during the year was 3.61% which exceeded the 2.55% 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 $275,000 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, 2002, reserves specifically designated for Mecklenburg County were
iv
Mecklenburg County, North Carolina
Board of County Commissioners
H. Parks Helms
Chairman
Becky Carney
Vice Chairman
Darrel Williams
District 3
Dumont Clarke
District 4
Harry L. Jones, Sr.
County Manager
Jim Puckett
District 1
Tom Cox, Jr.
At-Large
Ruth Samuelson
District 5
Bill James
District 6
J. Harry Weatherly, Jr.
Director of Finance
Sarah A. Heasley, Deputy Director of Finance
Wanda F. Reeves, Financial Planning & Reporting Analyst III
Gail M. Murchison, Financial Planning & Reporting Analyst III
Alan R. McBrayer, Financial Planning & Reporting Analyst II
Terri H. Peters, Financial Planning & Reporting Analyst I
Kenneth Myers, Financial Planning & Reporting Analyst I
Ana M. Cutajar, Grants Administrator
Gary L. Porter, Investment Officer
Linda T. Stiwalt,Administrative Assistant II
vi
Norman A. Mitchell, Sr.
District 2
Mecklenburg County Organization Chart
THE PEOPLE OF MECKLENBURG COUNTY
BOARD OF COUNTY COMMISSIONERS
COUNTY MANAGER
MANAGEMENT SERVICES
County Commissioners
Manager’s Office
Clerk to the Board
Internal Audit
Budget
County Attorney
Human Resources
Information Services and
Technology
Real Estate Services
General Services
LAND USE AND
ENVIRONMENTAL SERVICES
Administration
Code Enforcement
Property Assessment and Land
Records
Environmental Protection
Environmental Health
Register of Deeds
FINANCIAL SERVICES
Finance
Tax Collection
CUSTOMER SATISFACTION AND
COMMUNICATION
Public Service and Information
Office of Minority Affairs
COMMUNITY SERVICES
Public Libraries
Park and Recreation
Cooperative Extension Service
Women’s Commission
Elections
Community Development
DETENTION AND COURT
SUPPORT SERVICES
Court Services
Medical Examiner
Sheriff’s Office/Jail
HEALTH AND HUMAN SERVICES
Mental Health/DD/SAS
Social Services
Public Health Services
Veterans Services
BUSINESS PARTNERS
Emergency Medical Services
Charlotte-Mecklenburg Board of Education
Central Piedmont Community College
City/Towns
State Legislature
Charlotte-Mecklenburg Hospital Authority
City/County Joint Departments
WTVI
Historic Landmarks Commission
vii
Facts and Information
COUNTY ADMINISTRATION AND OPERATIONS
The nine-member Board of County Commissioners (the Board) holds regular business sessions on the first and third
Tuesday of each month and conducts a Public Policy Workshop on the second Tuesday of each month. All meetings
of the Board are open to the public. Major duties of the Board include:
Assessing and assigning priorities to the needs of the County, and establishing programs and
services to meet those needs.
Adopting an annual balanced budget to fund County programs and services.
Establishing the annual County property tax rate.
Appointing officials, including members of County boards and commissions, and certain County employees.
Regulating land use and zoning outside the jurisdiction of municipalities.
Enacting policies concerning the operation of the County.
Enacting local ordinances.
Calling bond referendums, entering into contracts and establishing new programs and departments.
Day to day operations of the County are the responsibility of the County Manager. In this capacity he is assisted by a
staff that includes a Deputy County Manager, two Assistant County Managers, an Executive Assistant, and 23
Department Heads. Major duties of the County Manager include:
Supervising and coordinating activities of County Departments.
Implementing all orders and policies of the Board.
Attending all Board meetings and making recommendations on appropriate matters of business.
Recommending an annual budget and advising the Board on the financial condition of the County.
Presenting, with recommendations, the Capital Improvements Program.
Appointing various employees.
Representing the County in business with other agencies and performing other duties assigned by the
Board.
To provide services mandated by State statutes and to meet the needs identified by the Board, the County had 4,181
full time employees and 434 part-time or seasonal employees at June 30, 2002, who are distributed between the core
service areas as follows:
Exhibit 1
NUMBER OF EMPLOYEES
Mecklenburg County
June 30,
2002
Management Services
Full-Time
Other
Financial Services
Full-Time
Customer Satisfaction and Communications
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
283
29
87
11
552
26
404
312
1,116
40
1,728
27
4,181
434
4,615
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 1998. 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 will be 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 2002, the County's total exempted or reduced
assessments were approximately $5.9 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
Union
Wake
Valuation
$ 9,206,642,916
10,303,652,171
13,997,817,798
11,035,053,139
11,174,633,378
12,692,423,333
9,184,450,568
19,089,466,058
24,031,317,880
9,842,139,418
31,329,443,704
10,399,941,916
67,328,056,027
16,517,985,089
9,080,939,063
8,197,355,654
9,525,585,673
63,246,361,518
Levy
$ 39,433,995
60,917,068
88,188,041
61,796,298
55,314,436
117,251,848
48,677,588
141,348,359
154,467,556
89,501,500
210,347,177
48,879,727
560,269,373
113,213,997
73,394,214
39,623,741
44,817,881
356,709,479
Revaluation
2001
1999
1998
1999
1999
1996
2001
2001
2001
1997
1996
1999
1998
1999
2001
2001
2000
2000
Tax Rate
$.42
.5925
.63
.56
.495
.925
.53
.729
.64
.9183
.6742
.47
.8397
.69
.805
.48
.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, 2001, 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, as well as pre-hospital emergency services
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.
Pre-hospital emergency services are provided through a contract with the Mecklenburg Emergency Medical Services
Agency (the “Medic Agency”). The Medic Agency is a separate governmental agency governed by its own Board of
Commissioners which is appointed by the Board. The Medic Agency, which receives an operating allocation from the
County, is reported as a component unit in the County’s basic financial statements.
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, supervises and coordinates the delivery of the County’s substance abuse, mental health and
developmental disabilities services and programs. A wide range of prevention, treatment and rehabilitation services
are available in all three areas. Area Mental Health oversees the County’s contracts with the Carolinas HealthCare
System for the provision of mental health services through Behavioral Health Center Randolph, where inpatient and
outpatient treatment and education services are available. The County also provides services for the severe and
persistently mentally ill through its Adult Mental Health Case Management Services.
County residents with developmental disabilities, including mental retardation, autism, cerebral palsy and epilepsy,
receive services at the Carlton Watkins Center. Children and adults are served through a wide range of services
contracted for by the County with numerous private agencies. Detoxification and residential services are provided at
the Samuel Billings Center to people experiencing problems resulting from the use of alcohol and other drugs. Area
Mental Health monitors contracts for services to help drug abusers deal with the physical and psychological problems
associated with addiction and also provides education services for the prevention of drug abuse.
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. Jail Central, located in downtown
xiii
Facts and Information
Charlotte, is a pre-trial facility with 1904 beds, 900 of which were added when the jail expansion opened in April,
2002. The Work Release Restitution Center, also located in downtown Charlotte, has 150 beds.
LAND USE AND ENVIRONMENTAL SERVICES
This core service area includes the Land Use and Environmental Services Agency and the Register of Deeds. The
services provided by the Land Use and Environmental Services Agency include listing and appraising all real and
personal property in the County and regulating the development of land and construction of residential, commercial
and industrial facilities. Other services offered are regulating solid waste disposal, sanitation of food and lodging
establishments, vector control, 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 Library, 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 parkland 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 439,000 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 approximately 180 miles from the Atlantic coast,
390 miles southwest of Washington, and 250 miles northeast of Atlanta. Mecklenburg's topography varies from a
mean sea level measurement of 840 feet at the northern end to 532 feet at the southern boundary. The County has a
landmass of 541 square miles which excludes approximately 26.5 square miles of water resources provided by Lake
Wylie, Mountain Island Lake, Lake Norman, and the Catawba River. Mountain Island Lake is the primary source of
usable water for the County. The lakes, all part of the Catawba River Basin, are utilized in the production of electricity
and provide recreational areas for the County.
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
2002
2001
2000
1999
1998
746,427
720,490
695,454
677,051
658,649
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 1998 through 2001,
gross sales are reported based on point of sale, while sales for year 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.
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 2002, current assessments
totaled $67.9 billion. During fiscal years 1998 through 2002, the total general tax levy increased from $340.2 million
to $567.9 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 2001-02
Firm
Duke Energy
Bank of America
Wachovia Corporation
BellSouth Telecommunications
USAirways, Incorporated
Childress Klein
Piedmont Natural Gas
Continental General Tire
Carolina Stadium
International Business
Machines Corporation
Type of
Enterprise
Assessed
Value
Tax Levy
Utility
Financial Services
Financial Services
Utility
Transportation
Property Management
aaand Development
Utility
Manufacturing
Football Stadium
$2,303,998,735
781,560,194
720,987,644
604,268,098
620,080,260
$21,546,941
6,610,293
6,578,945
5,362,429
5,206,813
363,635,566
275,619,158
139,984,627
176,619,677
3,061,976
2,358,683
1,175,451
1,483,076
Computer Technology
100,443,058
853,742
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. Twenty-five 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 16th worldwide in aircraft movements and 21st nationally in
passengers. It is also the 14th busiest in the U.S. based on operations. The airport is served by twenty passenger
carriers, including USAirways, Delta, United, Northwest, American, Continental, British Airways, 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 540 non-stop flights daily serving more than 140 U.S.
cities and nine foreign countries. An estimated total of 19.4 million passengers traveled through the airport in 2001,
while over 195,000 tons of domestic and international cargo were handled in 2001. Although construction of the 26gate regional airline concourse was recently completed, continued expansion of the airport is underway with the
acquisition of land for future construction of another runway and construction to expand the international concourse
from four 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, 2001.
Exhibit 10
CORPORATIONS LISTED IN
Million Dollar Directory
Classification
of Corporations
Services
Wholesale Trade
Manufacturing
Retail Trade
Construction
Finance, Insurance, Real Estate
Transportation, Communication, Utilities
Mining
Agriculture
TOTAL
Number
of
Corporations
155
150
129
78
77
77
37
3
2
708
Exhibit 11 presents the unemployment rate history for the County for the calendar years 1998 through 2001 and the
average of the first six months of calendar year 2002. Until 2002, the County experienced favorable unemployment
rates when compared to the United States, but recently the local rate is matching the U.S. rate.
New workers entering the labor force averaged 15,000 annually, over the last five years, as reported by the Charlotte
Chamber of Commerce.
Exhibit 11
xvii
Facts and Information
Exhibit 12 presents the firms employing over 1000 persons in the County as of June 30, 2002.
Exhibit 12
Employers of 1000 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*
Solectron Technology Inc.
United States Postal Service
University of North Carolina at Charlotte*
Wal-Mart Stores/Sam’s
Winn-Dixie Charlotte, Inc.
1,000 to 1,499
Employees
Allen Tate Company*
Allstate Insurance Company
Bi-Lo Food Stores
The Charlotte Observer
Continental General Tire, Inc.*
EDS
J. A. Jones Services*
Lance, Inc.*
Rea Construction Company*
Sprint PCS
T. J. Maxx
United Parcel Service
Vanguard Group
Yellow Freight System
*Headquartered in the County.
xviii
Facts and Information
Source: Charlotte Chamber of Commerce.
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 $1.4 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 2002 was $214,662.
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
2001
2000
1999
1998
1997
Number of Units
Number
Building
Permits
Residential
NonResidential
19,174
18,937
19,323
17,845
15,635
$1,640.2
1,641.0
1,313.7
1,362.5
1,036.1
$1,104.5
1,670.6
1,044.2
1,005.3
836.2
Total
$2,744.7
3,311.6
2,357.9
2,367.8
1,872.3
Source: Land Use and Environmental Services. Compiled by
Charlotte Chamber of Commerce
Calendar
Year
SingleFamily
MultiFamily
Total
2001
2000
1999
1998
1997
10,061
9,398
9,755
8,663
6,916
4,718
5,370
4,210
4,206
3,405
14,779
14,768
13,965
12,869
10,321
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 26th largest school system
in the nation, based on student enrollment as cited by the National Center for Education Statistics. Exhibit 15 details
the enrollment in the Charlotte-Mecklenburg Schools for the last five years.
Exhibit 15
CHARLOTTE-MECKLENBURG SCHOOL ENROLLMENT
Percent Number
Average Daily Memberships (ADM)
Number
ADM
of
Year
K-5
6-8 9-12 Special
Total Enrolled
Enroll. Schools
2001-02
2000-01
1999-00
1998-99
1997-98
52,259
51,583
50,819
49,904
48,641
24,373
23,469
22,338
21,428
20,720
25,687
24,126
23,186
23,575
22,639
2,163
2,115
2,194
2,121
2,037
104,482 106,192
101,293 103,086
98,537 100,368
97,028 98,542
94,037 95,797
98.4
98.3
98.2
98.5
98.2
144
143
143
142
138
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 2001-2002 school budget was approximately $817 million: 55% provided by the State,
33% by the County (mostly through property taxes), 5% by the federal government and 7% 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 2001-2002 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 2001-2002 school year, the Board of Education operated 86 elementary schools, 27 middle schools and 15
high schools. There is also a center for students who are mentally disabled, a school for teenage parents, an evening
school which includes an extended day program for ninth through twelfth grade dropouts or potential dropouts, a
school for artistically talented students, three middle and three high school programs for students excluded from
regular school settings for exhibiting inappropriate behavior, a program for the emotionally handicapped, three preschool programs for four-year-olds with a total enrollment of 3,068, a school 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 2002 current dollars using the
Implicit Price Deflator Index.
Exhibit 16
Mecklenburg County also has eight 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 2001-2002 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
eight charter schools with an enrollment of 1,510. 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 2002
Fall 2001
Students
Faculty1
Students
Faculty1
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
18,308
15,531
1,610
1,672
1,595
505
450
846
296
265
230
191
86
1,050
1,543
94
156
122
24
48
32
15
60
22
18
6
90
6
86
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 $14,240,054 from the County in fiscal
year 2002. Funding is used for operating expenses, salary supplements for professional and clerical employees and
xx
Facts and Information
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 incurs the debt service on those bonds.
The medical facilities located in the County and their respective licensed bed capacities as of the last date of
available date, June 30, 2001, are shown in Exhibit 18.
Exhibit 18
Hospital
1
Carolinas Medical Center
2
Presbyterian Hospital
1
Mercy Hospital
2
Presbyterian Orthopedic Hospital
1
Charlotte Institute of Rehabilitation
1
University Hospital
2
Presbyterian Matthews
1
Mercy Hospital, South
1
Carolinas Medical Center’s Center for Mental Health
1
Mercy Horizons
1
Part of Carolinas HealthCare System.
2
Part of Novant Health, Inc.
Number of
Licensed Beds
777
581
305
168
133
130
102
97
66
11
Source: Charlotte Chamber of Commerce.
In addition, as of February 2002, the date of last report, 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, Verizon
Wireless Amphitheater, Cricket Arena, 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 123 parks or one of its five public golf courses. 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 owned 73,250 seat Ericsson Stadium. 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 the third largest single-day sporting event
in the country. The County and surrounding areas are also home to the Charlotte Knights, a class AAA professional
xxi
Facts and Information
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 Tournament Players Club at Piper
Glen annually hosts the World Seniors Invitational, a Senior PGA Tour Event.
SUMMARY
Despite recent economic challenges, Mecklenburg County continues to grow and prosper. The expanding business
sector has created prosperity, which draws more people and businesses to the area. The climate, diversity of
industries, cultural opportunities and recreational activities create a desirable environment for the residents of the
County.
xxii
GFOA Certificate of Achievement
To be awarded a Certificate of
Achievement, a government must
publish an easily readable and
efficiently organized comprehensive
annual 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
Program s requirements and we are
submitting it to GFOA to determine
its eligibility for another certificate.
xxiii
Academy of Technology Lobby
Cordelia Park
Swimming Pool
Marshall Park
Davidson
Cornelius
Huntersville
Charlotte
Mint
Hill
Pineville
Matthews
mecklenburg
financial section
county
2002
The Financial Section constitutes the core of the report. The independent auditors’ report covers the basic financial statements and the notes
to the statements. New this year is Management’s Discussion and
Analysis which 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, 2002. The information complements the data presented in the basic financial
statements. Its purpose, along with the material in the Transmittal Letter in the Introduction, is to enhance the
reader’s understanding of the County’s financial performance.
HIGHLIGHTS OF THE YEAR
On the Statement of Net Assets (Deficit), liabilities exceed assets reflecting the County’s legal responsibility to
issue 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, 2002, the Statement of Activities reflects a use of net assets in the amount of $94.9
million primarily due to capital projects spending.
The governmental funds total fund balance decreased $192.4 million from the prior year resulting in a total
ending fund balance of $256.3 million of which 51.9% is available for future years’ spending as unreserved fund
balance.
The unreserved fund balance of the General Fund at June 30, 2002 is $107.6 million, which represents 11.3% of
total General Fund expenditures or 1.36 months of operating balances, a very adequate balance. Of the
unreserved fund balance, $28.5 million, is designated for the 2002-2003 budget year (2.8% of adopted General
Fund budget), $1.7 million is designated for specific projects, and $77.4 million is undesignated.
OVERVIEW
The basic financial statements consist of three components: 1) government-wide financial statements, 2) fund
financial statements, and 3) notes to the financial statements. Several schedules of required supplementary
information, as well as combining and other individual fund schedules required by State statute, follow the notes to
the financial statements.
REPORTING THE COUNTY AS A WHOLE
Government-wide financial statements consist of the Statement of Net Assets (Deficit) and the Statement of
Activities. Both of these statements provide data about the County’s financial activities as a whole and present a
longer-term view of the County’s finances. These statements use the accrual basis of accounting, which is similar to
the accounting used by most private-sector businesses. All of the current year’s revenues and expenses are taken
into account regardless of when cash is received or paid. The Statement of Net Assets (Deficit) presents assets less
liabilities equal net assets, thus presenting the County’s financial position at the end of the fiscal year, while the
Statement of Activities presents information showing how the County’s net assets changed during the fiscal year,
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:
Governmental activities – those activities supported primarily by taxes and intergovernmental revenues. The
following eight core service areas comprise the County’s governmental activities: Management Services,
Financial Services, Customer Satisfaction and Communication, Land Use and Environmental Services,
Detention and Court Support Services, Health and Human Services, Community Services, and Business
Partners.
Business-type activities – those activities that recover a significant portion of their costs through user fees and
charges. The Solid Waste Enterprise Fund is the County’s only business-type activity.
Component Units – these are separate organizations for which the County provides financial support and/or
appoints their governing board. The Public Library of Charlotte and Mecklenburg County, the Mecklenburg
County Alcoholic Beverage Control Board and the Mecklenburg Emergency Medical Services Agency are each
component units of the County.
The government-wide statements follow the Auditors’ Opinion.
3
Management’s Discussion and Analysis
REPORTING THE COUNTY’S SIGNIFICANT FUNDS
Funds are sets of self-balancing accounts that reflect the assets, liabilities, fund balance/retained earnings, revenues
and expenditures/expenses of resources that are segregated for specific activities or for compliance with legal
provisions. The funds used by the County can be divided into three categories:
Governmental funds – Most of the County’s services are reported in governmental funds, which focuses 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 consist of the General Fund; nine 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-six 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 2002B 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.
Proprietary funds – The Solid Waste Enterprise Fund is the County’s only proprietary fund and is presented in
the business-type activities column of the government-wide financial statements, because it operates similar to a
private business enterprise.
Fiduciary funds – The County holds certain resources for the benefit of parties outside the government, which
are accounted for as agency funds. Since the resources of these funds are not available to finance County
programs, the funds are not included in the government-wide financial statements.
NOTES TO THE FINANCIAL STATEMENTS
The information reported in the notes to the financial statements provides additional disclosures necessary to a
complete understanding of the data presented in the government-wide and fund financial statements.
OTHER FINANCIAL INFORMATION
In addition to the basic financial statements and accompanying notes, the report also presents certain required
supplementary information concerning the Law Enforcement Special Separation Allowance. Required supplementary
information follows the Notes to the Financial Statements.
Following the required supplementary information are the combining schedules for the nonmajor governmental funds
and the fiduciary funds. These are followed by the budget/actual schedules for the Special Revenue Funds, the
Enterprise Fund, the Grants Project Fund, as well as the Landfill Construction, Final Development and Postclosure
Reserve Fund.
4
Management’s Discussion and Analysis
GOVERNMENT-WIDE FINANCIAL ANALYSIS
This is the County’s first year reporting under the guidelines of GASB Statement 34. As allowed by GASB, the
County has not restated prior year data for purposes of providing comparative data for the Management’s Discussion
and Analysis, as certain of the data is unavailable. In future years, comparative analysis of government-wide data will
be presented.
The following summarizes Net Assets (Deficit) at June 30, 2002:
NET ASSETS (DEFICIT)
Government-wide
Activities
Assets
Current and other assets
Capital assets, net
Total Assets
Business-type
Activities
Total Primary
Government
$ 360,058,627
561,439,458
921,498,085
$ 13,917,699
38,887,882
52,805,581
76,590,620
398,992
76,989,612
88,629,145
1,291,636,706
1,456,856,471
2,735,846
13,391,757
16,526,595
91,364,991
1,305.028,463
1,473,383,066
128,024,766
90,060,935
(753,444,087)
24,238,063
12,040,923
152,262,829
90,060,935
(741,403,164)
Total Net Assets (Deficit) $ (535,358,386)
$36,278,986
$ (499,079,400)
Liabilities
Current and other
liabilities
Long-term liabilities
Due within one year
Due after one year
Total Liabilities
Net Assets (Deficit)
Invested in capital assets,
net of related debt
Restricted
Unrestricted (Deficit)
$
373,976,326
600,327,340
974,303,666
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 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 $846,197,939 at June 30, 2002, is recorded to long-term liabilities with no offsetting capital
assets recorded, as the assets are the property of the agencies. The proceeds from this debt is 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. Net Assets of $152.3 million 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 $90.1 million of County net assets 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, 2002, for both governmental and
business-type activities.
CHANGES IN NET ASSETS (DEFICIT)
Governmental
Activities
REVENUES
Program Revenues:
Charges for services
Operating grants and
contributions
Capital grants and
contributions
General Revenues:
Property taxes
Sales taxes
Other taxes
Investment income
Other
TOTAL REVENUES
EXPENSES
Program Expenses:
Management Services
Financial Services
Customer Satisfaction
and Communications
Land Use and Environmental Services
Community Services
Detention and Court
Support Services
Health and Human
Services
Business Partners
Interest expense
Solid Waste Operations
TOTAL EXPENSES
INCREASE (DECREASE) IN NET
ASSETS (DEFICIT) BEFORE
ALLOCATIONS
Allocations
INCREASE (DECREASE) IN
NET ASSETS
NET ASSETS (DEFICIT)
– Beginning of year
NET ASSETS (DEFICIT)
– End of year
$
91,921,934
Business-type
Activities
$
9,328,159
Total Primary
Government
$ 101,250,093
179,062,472
-
179,062,472
779,440
-
779,440
582,211,378
143,533,620
21,574,284
13,735,418
2,225,759
1,035,044,305
645,803
191,166
10,165,128
582,211,378
143,533,620
21,574,284
14,381,221
2,416,925
1,045,209,433
42,004,729
16,384,192
-
42,004,729
16,384,192
912,818
-
912,818
42,826,310
31,032,651
-
42,826,310
31,032,651
82,703,642
-
82,703,642
270,190,779
554,898,570
55,236,067
______-_____
1,096,189,758
9,131,738
9,131,738
270,190,779
554,898,570
55,236,067
9,131,738
1,105,321,496
(61,145,453)
(34,801,113)
1,033,390
________
(60,112,063)
(34,801,113)
(95,946,566)
1,033,390
(94,913,176)
(439,411,820)
35,245,596
(404,166,224)
$(535,358,386)
$36,278,986
$(499,079,400)
GOVERNMENTAL-TYPE ACTIVITIES
Program revenues covered 24.8% of County expenses while general revenues covered 69.6% of expenses. The
remaining 5.6% represents a use of net assets, primarily for school capital expenditures. Taxes and assessment
revenues increased 21.0% as a result of the tax rate increase, an increased assessed valuation, and diligent
collection practices by the Office of the Tax Collector. The County’s strategy to secure a maximum amount of grant
funds provided by state and federal agencies has resulted in the County covering 16.4% of its governmental
6
Management’s Discussion and Analysis
operations with grant dollars. Charges to users of County services generated revenues that supported 8.4% of
County governmental operations. Of the $91.9 million generated from governmental activities charges for services,
44% came from Land Use and Environmental Services, primarily code enforcement and licenses and permits, as a
result of fee increases and continued construction growth in the county.
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 $10 per
dwelling and landfill tipping fees, disposal fees and recycling sales. The business-type activity contributed 7% to the
primary government’s net assets, and generated income of $1.0 million, which 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 available for spending at the
end of the year. The County’s governmental fund types include the General Fund, Special Revenue Funds and
Capital Projects Funds.
At June 30, 2002, the governmental funds reported combined ending fund balances of $256.3 million. Approximately
$133.2 million of this total is unreserved fund balance, which is available for future year’s spending. The County has
designated $98.7 million of the unreserved fund balance for specific uses in the next fiscal year, leaving $34.5 million
undesignated and available for appropriation in the subsequent fiscal year. The remaining $123.2 million is reserved
for encumbrances ($27.1 million) and reserved by State Statute ($96.1 million). The General Fund, which is the
County’s primary operating fund, had a fund balance of $177.9 million, of which $10.3 million is reserved for
encumbrances, $60.0 million is reserved by State statute, and $107.6 is unreserved. Of the General Fund’s $107.6
unreserved fund balance, $30.2 million is designated for particular purposes, including $28.5 million for the 20022003 budget year, and $77.4 million is undesignated.
Revenues for governmental funds, excluding bond fund proceeds of the Capital Projects Funds, increased $84.8
million, or 9.1% over fiscal 2001:
• The 20.6% increase in property taxes resulted from the 10.97 cent increase in the tax rate per $100 of
assessed valuation, growth in the assessed valuation base, and aggressive audits and collections. For
2002, the County’s total tax collections represented 98.8% of the current year’s tax levy. Current year
collections represented 97.2% of the current year levy.
• Total intergovernmental revenues decreased 7.2% from
Exhibit 1
the prior year as a result of $6.8 million withheld by the
Grant Programs
State due to its budget problems and the completion of
Program
Revenue
the federally funded Storm Water Hazard Mitigation
Number
(Millions)
Category
Program. State and federal grant funds support 171
service programs of varying size and complexity to
Social Services
54
$ 90.8
help accommodate service needs of County residents
Mental Health
46
25.4
while minimizing local costs. Two programs provide
Health
37
5.4
State assistance to counties for school capital outlay
53.7
Other
036
needs. Grant programs are summarized in Exhibit 1.
Total
173
$175.3
•
Sales tax revenues for the County totaled $143.5
million, which represents a 1.4% drop from the prior
year as a result of the slowdown in the economy.
Sales tax revenues include the ½ cent sales tax for transit of $27.7 million that is recorded to a special
revenue fund.
• Charges for Services increased 30.6% from the prior year due to the combined effect of rate increases for
code enforcement and the strong construction environment the County continues to experience.
7
Management’s Discussion and Analysis
•
Interest earned on investments dropped $15.4 million from the prior year due to the impact of the economic
situation on the investment market combined with a drop in available balances to invest which countered
the sound investment practices and maximization of invested balances by the County.
The composition of the County’s revenue dollar is illustrated in Exhibit 2.
Governmental funds expenditures, exclusive of Capital Projects, increased $104.2 million (9.0%) over those of last
year. Exhibit 3 graphically illustrates the County’s expenditure dollar.
About one-third of the County’s expenditure dollar was for Health and Human Services programs. Expenditures in
this area increased $4.08 million (1.5%) over the prior fiscal year. The Department of Social Services, Area Mental
Health and the Health Department experienced increased caseloads because of the softening economy. The
Department of Social Services expanded its Work First program; Area Mental Health helped house 80 individuals
with severe mental illness and built and opened a new supervised apartment for eight clients with severe mental
illness; while the Health Department expanded programs to improve the health of Mecklenburg County residents,
such as Health Connections and Healthy Directions, pediatric dental care, mammogram screenings, and education
programs regarding West Nile virus, bioterrorism and communicable diseases.
General debt service increased 16.5% from the prior year as a result of the issuance of bonds, primarily for school
capital needs.
Expenditures for Land Use and Environmental Services, including Storm Water Services, remained comparable to
last year. Storm Water Services expenditures decreased with the completion of the flood plain buyout project which
restored approximately 35 acres of urban floodplain to open spaces and greenways.
Educational expenditures are included in the Business Partners core service. Expenditures for education were 37%
of the County’s total governmental expenditures, totaling $355.8 million. Debt service for bonds issued for
educational facilities is included in this amount. Of the total education expenditures, $267.0 million was for the
Charlotte-Mecklenburg Board of Education current operating and capital funding, along with $66.3 million for debt
service. This amount provided funding to address continued enrollment growth and equity issues. Central Piedmont
Community College current funding was $14.2 million, as well as $8.3 million for debt service.
8
Management’s Discussion and Analysis
For fiscal 2002, the County spent $303.9 million for capital projects. More than half of this was for construction,
renovations and improvements to school facilities. Acquisitions of park and greenway land were the major land and
park and recreation expenditures. Construction was completed on the 900-bed expansion of Jail Central, which
opened in April, 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. Adjustments to the County’s original budget fall into the first two categories. Overall
the increase to budgeted revenues totaled $5.1 million as a result of $8.9 million increase to intergovernmental
revenues, primarily from federal and state sources, and $1.1 increase to miscellaneous revenues from revisions of
estimates for funds received. These adjustments were offset by reductions in fee estimates for charges for services
of $5.6 million, primarily for Health and Human Services as the result of outsourcing services. The net increase in
budgeted revenues was spread throughout the County’s operations along with adjustments resulting from changes in
spending patterns.
Sales tax revenue fell below budget as a result of lower than expected sales tax growth due to the sluggish economy
and a change in distribution method from point of sale to point of delivery. Intergovernmental 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 and reimbursement funds which were withheld by the State in the amount of $6.8
million. Interest income was also less than budgeted because of the down turn in the investment market.
Significant efforts to control spending were implemented during the last half of fiscal year 2002 because the State
withheld the inventory tax reimbursements to counties to affect the State’s revenue shortfall. These spending
controls, including a hiring freeze, resulted in actual expenditures at 4% below budget, which is slightly higher than
the 3% under budget that the County has previously achieved.
CAPITAL ASSETS
The County’s investment in capital assets, net of accumulated depreciation, for governmental and business-type
activities at June 30, 2002 totals $600.3 million. Capital assets include land, land improvements, buildings and
improvements, vehicles and heavy equipment, furniture, machinery, and other equipment, and construction in
progress. Capital assets are reported in the government-wide financial statements and in the enterprise fund
financial statements. Governmental funds treat capital acquisitions as expenditures in the period in which they are
purchased. The investment in capital assets, net of accumulated depreciation, increased 18.2% from last year for
governmental activities and 7.8% for business-type activities. The increase in governmental activities assets results
from completion of construction projects which transferred $68.9 million from construction in progress to buildings;
from land and land improvement purchases totaling $66.2 million, and various furniture, equipment and vehicle
purchases totaling $8.3 million. The increase in business-type activities (enterprise fund) reflects the normal
purchase of equipment for the solid waste operation.
9
Management’s Discussion and Analysis
CAPITAL ASSETS, NET OF ACCUMULATED DEPRECIATION
Description
Land
Construction in progress
Land Improvements
Buildings and Improvements
Vehicles and Heavy Equipment
Furniture, Machinery and
Equipment
Total
Governmental
Activities
Business-type
Activities
Total
$262,466,534
42,615,910
4,544,773
232,649,915
7,405,916
$28,063,049
2,490,940
6,472,763
1,861,130
$290,529,583
42,615,910
7,035,713
239,122,678
9,267,046
11,756,410
$561,439,458
_____-____
$38,887,882
_11,756,410
$600,327,340
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, 2002,
general obligation bonds consist of:
GENERAL OBLIGATION BONDS
Description
Public Improvement Bonds
Governmental
Activities
Business-type
Activities
Total
$1,296,873,163
$14,391,837
$1,311,265,000
The County debt policy provides guidelines, parameters, and procedural requirements for the issuance and
management of debt. Some of the standards used in managing debt include debt per capita, debt as a percentage of
assessed valuation and debt service as a percentage of the operational budget.
Exhibit 4 shows the County’s net per capita outstanding bonded debt to be $1,737, a 5% decrease from the prior year
reflecting the population increase and the small decline in debt from the prior year. The County’s outstanding debt is
1.91% of assessed valuation, well below the 8% of assessed valuation legal debt limit of over $5.4 billion. See
Exhibit 5.
Exhibit 4
Bonded Debt Outstanding per Capita
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 $56.0 million in fixed rate general obligation bonds in November, 2001 at a net interest rate of
4.31%. The County also sold $29.0 million of variable rate certificates of participation on November 16, 2001 to
finance school and park and recreation facilities. To further reduce borrowing costs, the County issued $33.6 million
in fixed rate General Obligation Refunding Bonds at an average interest rate of 2.40%. This issue refinanced $33.9
million of 1992 general obligation bonds that had average interest rates of 5.83%. This refinancing will save the
County approximately $.48 million annually in debt service costs through fiscal year 2005. This is a total savings of
$1.36 million, at net present value.
OUTLOOK FOR THE NEXT YEAR
The State of North Carolina is experiencing a major revenue shortfall, the repercussions of which affect the County.
The State budget eliminates reimbursements due to counties and municipalities, resulting in a loss of $24.7 million to
the County. The 2002-2003 budget for the County “escrowed” this amount in restricted contingency pending a
decision by the State.
The 2002-2003 budget approved for the County totals $1.066 billion, a 3.6% increase over the fiscal 2002 amended
budget.
The General Fund budget, $1.004 billion, represents 94.2% of this total budget. Intergovernmental
revenues, fees and charges, and other sources will contribute $326 million to the overall budget with the remaining
$740 million funded from property taxes, which will remain at the current 83.97 cents per $100 of assessed valuation.
The current tax rate generates increased tax revenues due to the expanding tax base. Most of the increase will be
used to pay debt service, cover mandated social services expenditures and provide needed funding to the CharlotteMecklenburg Schools. Thus the budget for 2002-2003 also includes $12 million in cuts to County services, including
the elimination of more than 300 mostly vacant positions. The County has a hiring freeze on all vacant positions.
Fiscal year 2002-2003 will challenge County services and staff to meet the needs of a growing community by finding
new and creative ways of providing services with diminished resources.
To meet the facilities needs for the continuing growth in the population, Mecklenburg County sold $153.4 million fixed
rate and $25 million variable rate bonds on July 16, 2002, consisting of $14.4 million to be used for parking facilities,
$85 million for school facilities, $60 million for land acquisitions for future use and $19 million to be used for
community college, court and park facilities. Additionally, the Board of County Commissioners has approved a school
bond referendum in the amount of $224.0 million for November, 2002 to fund new school construction and major
renovations of existing school buildings.
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
MECKLENBURG COUNTY, NORTH CAROLINA
STATEMENT OF NET ASSETS (DEFICIT)
JUNE 30, 2002
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
Total
ASSETS
Cash and investments
$
Receivables, net
258,647,588
$
99,858,402
Due from component units
681,215
470,176
Due from other governmental agencies
-
-
Advances to other government agencies
-
1,030,629
Prepaid expenses
Inventories
Restricted assets
12,896,840
-
$
271,544,428
$
100,539,617
1,157,212
190,197
470,176
-
-
326,699
1,030,629
-
2,871,023
4,551,443
-
$
3,409,769
15,510
-
-
-
-
-
-
-
-
51,832
-
51,832
-
-
339,644
339,644
-
-
28,063,049
290,529,583
11,124,024
-
4,393,468
42,615,910
2,053,228
-
69,960
-
423,715
$
135,494
73,366
4,977,286
-
Capital assets
Land
262,466,534
Construction in progress
42,615,910
-
Other capital assets, net of
accumulated depreciation
256,357,014
10,824,833
267,181,847
29,010,642
4,194,875
10,653,081
TOTAL ASSETS
921,498,085
52,805,581
974,303,666
44,285,717
11,752,835
23,592,440
74,042,478
398,992
74,441,470
219,538
836,123
4,234,619
LIABILITIES
Accounts payable and other
accrued liabilities
Deferred revenue
2,548,142
-
2,548,142
-
-
-
Long-term liabilities
Due within one year
Due in more than one year
TOTAL LIABILITIES
88,629,145
2,735,846
91,364,991
1,740,784
1,291,636,706
13,391,757
1,305,028,463
2,672,359
711,109
1,456,856,471
16,526,595
1,473,383,066
4,632,681
1,547,232
5,724,973
128,024,766
24,238,063
152,262,829
39,539,670
4,194,875
13,626,155
-
113,447
1,376,907
NET ASSETS
Invested in capital assets, net of
related debt
Restricted
for Capital projects
61,696,764
-
61,696,764
by law for specific purposes
28,364,171
-
28,364,171
Unrestricted (deficit)
TOTAL NET ASSETS (DEFICIT)
$
(753,444,087)
(535,358,386)
$
12,040,923
36,278,986
(741,403,164)
$ (499,079,400)
The accompanying notes are an integral part of this statement.
369,682
$
(256,316)
39,653,036
6,010,728
$ 10,205,603
4,241,312
$ 17,867,467
MECKLENBURG COUNTY, NORTH CAROLINA
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2002
Program Revenues
Functions/Programs
Primary Government
Governmental activities
Management Services
Financial Services
Customer Satisfaction and Communication
Land Use and Environmental Services
Community Services
Detention and Court Support Services
Health and Human Services
Business Partners
Interest on long-term debt
General purpose
Public schools
Total Governmental Activities
$
Business-type activities
Solid Waste Enterprise Fund
Total Primary Government
Component Units
Public Library of Charlotte and
Mecklenburg County
Mecklenburg Emergency Medical
Services Agency
Mecklenburg County Alcoholic
Beverage Control Board
Total Component Units
Charges for
Services
Expenses
42,004,729
16,384,192
912,818
42,826,310
31,032,651
82,703,642
270,190,779
554,898,570
$
1,606,517
443,938
12,318
40,725,734
3,119,345
21,478,200
20,853,459
3,682,423
34,756,244
20,479,823
1,096,189,758
91,921,934
9,131,738
9,328,159
$
1,105,321,496
$
101,250,093
$
27,890,973
$
1,805,259
20,474,671
$
45,395,476
93,761,120
Operating
Grants and
Contributions
$
47,835,168
59,701,180
Capital
Grants and
Contributions
$
179,062,472
598,463
180,977
779,440
-
-
$ 179,062,472
$
779,440
$
$
2,342,450
10,060,753
$
2,411,974
146,512
6,205,499
2,412,876
3,885,799
134,440,545
29,559,267
Net (Expense) Revenue and Changes in Net Assets
Primary Government
Component Units
1,364,419
-
$
1,364,419
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
Allocations
ABC Board
Library
Emergency Medical Services
Other Governments
Total General Revenues and Allocations
Change in Net Assets
Net Assets (Deficit), beginning of year
Net Assets (Deficit), end of year
-
$
2,342,450
Governmental
Activities
$
(37,986,238)
(15,793,742)
(900,500)
4,703,386
(25,319,453)
(57,339,643)
(114,896,775)
(521,656,880)
(34,756,244)
(20,479,823)
(824,425,912)
(824,425,912)
Business-type
Activities
$
-
196,421
196,421
Public Library
of Charlotte and
Mecklenburg
County
Total
$
(37,986,238)
(15,793,742)
(900,500)
4,703,386
(25,319,453)
(57,339,643)
(114,896,775)
(521,656,880)
(34,756,244)
(20,479,823)
(824,425,912)
196,421
(824,229,491)
-
-
-
-
-
-
-
-
-
571,543,862
10,667,516
143,533,620
11,329,770
10,244,514
13,735,418
349,509
1,876,250
(22,962,020)
(11,839,093)
728,479,346
(95,946,566)
(439,411,820)
$ (535,358,386)
The accompanying notes are an integral part of this statement.
645,803
191,166
836,969
1,033,390
35,245,596
$ 36,278,986
$
$
$
-
-
-
-
-
-
-
-
-
-
-
-
(10,413,918)
(22,378,845)
$
-
Mecklenburg
County Alcoholic
Beverage
Control Board
-
(22,378,845)
571,543,862
10,667,516
143,533,620
11,329,770
10,244,514
14,381,221
540,675
1,876,250
(22,962,020)
(11,839,093)
729,316,315
(94,913,176)
(404,166,224)
$ (499,079,400)
-
Mecklenburg
Emergency
Medical Services
Agency
(10,413,918)
28,553
486,695
38,351
204,641
23,196,376
23,711,624
1,332,779
38,320,257
39,653,036
11,869,093
12,112,085
1,698,167
8,507,436
10,205,603
$
2,439,692
2,439,692
63,156
153,137
(1,876,250)
(2,073,750)
(3,733,707)
(1,294,015)
19,161,482
$ 17,867,467
MECKLENBURG COUNTY, NORTH CAROLINA
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2002
2002B Public
Improvement
Nonmajor
Total
Capital Projects
Governmental
Governmental
Fund
Funds
Funds
General
ASSETS
Cash and investments
$ 176,690,678
Interest receivable
Accounts receivable
Accounts receivable - clinics
Less allowance for doubtful accounts
$
-
Less allowance for uncollectible taxes
Advances to other governmental agencies
2,424,673
-
13,502,293
69,593,603
1,245,003
-
-
-
-
1,245,003
(552,500)
29,499,252
-
450,988
29,950,240
(7,200,000)
-
(134,000)
(7,334,000)
-
614,897
1,030,629
-
21,838,780
21,838,780
-
TOTAL ASSETS
258,647,588
56,091,310
Due from other funds
Inventory
$
70,714
415,732
Due from component units
81,956,910
-
(552,500)
Taxes receivable
$
2,353,959
470,176
-
-
51,832
-
-
$ 259,065,442
$
-
$
$ 10,300,022
470,176
51,832
$ 118,300,582
377,366,024
LIABILITIES AND FUND BALANCES
Liabilities
Accounts payable and accrued liabilities
56,338,370
Due to other funds
Deferred revenue
Total Liabilities
-
$
13,086,179
24,756,794
7,404,086
74,042,478
8,752,601
21,838,780
-
412,577
25,169,371
81,095,164
23,386,201
16,569,264
121,050,629
Reserved for encumbrances
10,336,702
2,715,301
14,062,917
27,114,920
Reserved by State Statute
60,023,680
36,026,684
96,050,364
Fund Balances
-
Unreserved, reported in
General Fund
107,609,896
Special Revenue Funds
-
Capital Projects Funds
-
Total Fund Balances (deficit)
-
-
-
177,970,278
107,609,896
13,366,089
13,366,089
(26,101,502)
38,275,628
12,174,126
(23,386,201)
101,731,318
256,315,395
TOTAL LIABILITIES AND
FUND BALANCES
$ 259,065,442
$
-
$ 118,300,582
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.
561,439,458
Other long term assets are not available for current year
expenditures and, therefore, deferred in the funds.
27,152,612
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.
(1,380,265,851)
$
(535,358,386)
MECKLENBURG COUNTY, NORTH CAROLINA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (DEFICIT)
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2002
2002B Public
Improvement
Nonmajor
Total
Capital Projects
Governmental
Governmental
Fund
Funds
Funds
General
REVENUES
Taxes
$ 674,644,847
$
-
$
1,931,563
$
676,576,410
Law Enforcement Service District Taxes
-
-
10,667,516
10,667,516
Transit One-Half Cent Sales Tax
-
-
27,726,072
27,726,072
Licenses and permits
18,834,892
-
168,008,030
-
22,997,411
191,005,441
Charges for services
62,592,646
-
7,451,698
70,044,344
Interest earned on investments
13,346,137
-
389,281
13,735,418
Administrative charges
3,957,040
-
Other
5,042,278
-
1,425,580
6,467,858
946,425,870
-
72,589,121
1,019,014,991
41,515,761
-
-
41,515,761
6,321,146
-
-
6,321,146
906,866
-
-
Land Use and Environmental Services
39,195,370
-
Community Services
29,274,220
-
Detention and Court Support Services
73,865,260
-
Health and Human Services
269,324,679
-
Business Partners
306,643,268
-
Principal payments
75,427,084
-
-
Interest and fiscal charges
65,634,225
-
-
Intergovernmental
Total Revenues
-
18,834,892
-
3,957,040
EXPENDITURES
Current
Management Services
Financial Services
Customer Satisfaction and Communications
906,866
11,751,779
50,947,149
-
29,274,220
218,764
74,084,024
-
269,324,679
39,762,427
346,405,695
Debt Service
Capital Outlay
-
Total Expenditures
75,427,084
65,634,225
21,490,356
282,437,522
303,927,878
908,107,879
21,490,356
334,170,492
1,263,768,727
38,317,991
(21,490,356)
(261,581,371)
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
(244,753,736)
OTHER FINANCING SOURCES (USES)
Transfers in
-
Transfers out
Distribution from ABC Board
-
7,452,795
7,452,795
(7,452,795)
-
-
(7,452,795)
1,876,250
-
-
1,876,250
Allocations to component units
Library
(22,962,020)
-
-
(22,962,020)
Emergency Medical Services
(11,839,093)
-
-
(11,839,093)
Capital leases
Proceeds from sale of refunding bonds
Payment to refunded bond escrow agent
Proceeds from other financing agreements
Total Other Financing Sources (Uses)
NET CHANGE IN FUND BALANCES
FUND BALANCES (DEFICIT)-BEGINNING OF YEAR
FUND BALANCES (DEFICIT)-END OF YEAR
246,670
-
-
246,670
30,531,136
-
-
30,531,136
-
(30,531,136)
(30,531,136)
-
(40,130,988)
(1,812,997)
85,000,000
-
92,452,795
52,321,807
(169,128,576)
(192,431,929)
(21,490,356)
179,783,275
$ 177,970,278
-
$
(1,895,845)
270,859,894
(23,386,201)
$ 101,731,318
The accompanying notes are an integral part of this statement.
85,000,000
448,747,324
$
256,315,395
MECKLENBURG COUNTY, NORTH CAROLINA
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES (DEFICIT) OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2002
Net change in fund balances - total governmental funds
$ (192,431,929)
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.
108,792,837
Depreciation expense is reported in the Statement of Activities, but not in the fund
statements.
(18,351,039)
Record loss on disposal of assets.
(4,081,202)
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
(115,531,136)
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.
(246,669)
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.
109,644,134
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.
18,224,170
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.
(1,965,732)
Change in net assets of governmental activities
The accompanying notes are an integral part of this statement.
$
(95,946,566)
MECKLENBURG COUNTY, NORTH CAROLINA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL - GENERAL FUND
FOR THE YEAR ENDED JUNE 30, 2002
(CONTINUED)
Variance from
Budgeted Amounts
Original
Final
Actual
Final Budget-
Amounts
Positive/(Negative)
EXPENDITURES
Current
Management Services
County Commissioners
$
Manager's Office
381,799
$
370,421
$
341,961
$
(28,460)
1,426,793
1,866,893
1,802,601
(64,292)
Clerk to the Board
243,111
247,311
226,666
(20,645)
Internal Audit
472,944
477,144
430,825
(46,319)
Budget
707,787
711,956
596,938
(115,018)
County Attorney
539,833
552,233
549,724
(2,509)
2,786,322
2,844,352
2,675,862
(168,490)
12,250,389
13,056,773
12,991,068
(65,705)
1,107,658
1,188,208
944,213
(243,995)
General Services
13,053,464
13,084,440
12,671,968
(412,472)
Nondepartmental
2,238,016
3,687,486
3,346,697
Human Resources
Information Services and Technology
Real Estate Services
Capital leases
-
Total Management Services
-
(340,789)
4,937,238
4,937,238
3,428,544
35,208,116
38,087,217
41,515,761
2,573,291
2,823,055
2,487,983
Financial Services
Finance
(335,072)
Debt Service
Principal retirement - bonds
35,345,149
35,553,317
35,553,317
-
Interest and fiscal charges
22,980,572
30,897,404
30,877,981
(19,423)
Payment to City of Charlotte
694,213
694,213
694,213
3,278,443
3,278,443
3,138,950
(139,493)
64,871,668
73,246,432
72,752,444
(493,988)
Public Service and Information
918,072
922,272
819,029
(103,243)
Office of Minority Affairs
276,738
276,738
87,837
(188,901)
1,194,810
1,199,010
906,866
(292,144)
(2,064,983)
Tax Collector
Total Financial Services
-
Customer Satisfaction and Communications
Total Customer Satisfaction and Communications
Land Use and Environmental Services
26,546,758
25,044,495
22,979,512
Property Assessment and Land Records
Code Enforcement
7,567,831
7,063,154
6,097,969
(965,185)
Environmental Protection
4,160,237
6,063,471
4,203,773
(1,859,698)
Environmental Health
2,795,509
2,774,507
2,627,703
(146,804)
Register of Deeds
3,140,702
3,673,502
3,286,413
(387,089)
44,211,037
44,619,129
39,195,370
(5,423,759)
Total Land Use and Environmental Services
Community Services
Park and Recreation
27,186,738
27,983,746
24,511,375
(3,472,371)
Cooperative Extension Service
2,123,689
882,191
666,220
(215,971)
Elections
4,062,756
3,250,691
2,266,099
(984,592)
Women's Commission
911,286
1,794,333
1,553,724
(240,609)
Community Development
374,140
394,140
276,802
(117,338)
34,658,609
34,305,101
29,274,220
(5,030,881)
5,902,271
4,989,021
4,104,593
(884,428)
720,386
750,566
548,452
(202,114)
72,418,712
73,416,313
69,212,215
(4,204,098)
79,041,369
79,155,900
73,865,260
(5,290,640)
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.
MECKLENBURG COUNTY, NORTH CAROLINA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL - GENERAL FUND
FOR THE YEAR ENDED JUNE 30, 2002
(CONTINUED)
Variance from
Budgeted Amounts
Original
Final
Actual
Final Budget-
Amounts
Positive/(Negative)
EXPENDITURES
Current
Management Services
County Commissioners
$
Manager's Office
381,799
$
370,421
$
341,961
$
(28,460)
1,426,793
1,866,893
1,802,601
(64,292)
Clerk to the Board
243,111
247,311
226,666
(20,645)
Internal Audit
472,944
477,144
430,825
(46,319)
Budget
707,787
711,956
596,938
(115,018)
County Attorney
539,833
552,233
549,724
(2,509)
2,786,322
2,844,352
2,675,862
(168,490)
12,250,389
13,056,773
12,991,068
(65,705)
1,107,658
1,188,208
944,213
(243,995)
General Services
13,053,464
13,084,440
12,671,968
(412,472)
Nondepartmental
2,238,016
3,687,486
3,346,697
Human Resources
Information Services and Technology
Real Estate Services
Capital leases
-
Total Management Services
-
(340,789)
4,937,238
4,937,238
3,428,544
35,208,116
38,087,217
41,515,761
2,573,291
2,823,055
2,487,983
Financial Services
Finance
(335,072)
Debt Service
Principal retirement - bonds
35,345,149
35,553,317
35,553,317
-
Interest and fiscal charges
22,980,572
30,897,404
30,877,981
(19,423)
Payment to City of Charlotte
694,213
694,213
694,213
3,278,443
3,278,443
3,138,950
(139,493)
64,871,668
73,246,432
72,752,444
(493,988)
Public Service and Information
918,072
922,272
819,029
(103,243)
Office of Minority Affairs
276,738
276,738
87,837
(188,901)
1,194,810
1,199,010
906,866
(292,144)
(2,064,983)
Tax Collector
Total Financial Services
-
Customer Satisfaction and Communications
Total Customer Satisfaction and Communications
Land Use and Environmental Services
26,546,758
25,044,495
22,979,512
Property Assessment and Land Records
Code Enforcement
7,567,831
7,063,154
6,097,969
(965,185)
Environmental Protection
4,160,237
6,063,471
4,203,773
(1,859,698)
Environmental Health
2,795,509
2,774,507
2,627,703
(146,804)
Register of Deeds
3,140,702
3,673,502
3,286,413
(387,089)
44,211,037
44,619,129
39,195,370
(5,423,759)
Total Land Use and Environmental Services
Community Services
Park and Recreation
27,186,738
27,983,746
24,511,375
(3,472,371)
Cooperative Extension Service
2,123,689
882,191
666,220
(215,971)
Elections
4,062,756
3,250,691
2,266,099
(984,592)
Women's Commission
911,286
1,794,333
1,553,724
(240,609)
Community Development
374,140
394,140
276,802
(117,338)
34,658,609
34,305,101
29,274,220
(5,030,881)
5,902,271
4,989,021
4,104,593
(884,428)
720,386
750,566
548,452
(202,114)
72,418,712
73,416,313
69,212,215
(4,204,098)
79,041,369
79,155,900
73,865,260
(5,290,640)
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.
MECKLENBURG COUNTY, NORTH CAROLINA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL - GENERAL FUND
FOR THE YEAR ENDED JUNE 30, 2002
(CONCLUDED)
Variance from
Budgeted Amounts
Original
Final
Actual
Final Budget-
Amounts
Positive/(Negative)
Health and Human Services
Emergency Medical Services
$
10,955
$
10,955
$
10,955
$
-
Veterans Services
369,521
405,688
398,826
(6,862)
Outside Agencies-Human Services
643,777
643,777
597,513
(46,264)
Public Health
Public Health Services
Public Health-CHS Contract
Behavioral Health Interventions
2,446,923
3,413,213
2,786,685
(626,528)
18,370,380
17,456,059
16,945,148
(510,911)
2,762,144
2,714,743
2,143,194
(571,549)
(255,437)
Mental Health
5,689,811
5,183,236
4,927,799
Child and Adolescent Services
Infant and Toddler Preschool Services
17,712,487
23,528,632
23,466,844
(61,788)
Adult Services
30,588,863
19,414,086
16,888,178
(2,525,908)
Centralized Services
13,878,609
13,908,512
13,460,953
(447,559)
Developmental Disabilities Services
9,796,102
16,640,945
14,691,938
(1,949,007)
Administrative Services
6,340,706
5,688,201
5,374,066
(314,135)
Social Services
Administration
8,288,582
9,082,098
8,186,268
(895,830)
Grants
33,756,020
35,467,071
32,843,189
(2,623,882)
Day Care Operations
55,069,655
55,416,513
53,114,367
(2,302,146)
Services for Adults
22,381,067
23,720,090
21,237,167
(2,482,923)
Economic Services
21,495,895
19,990,447
18,877,318
(1,113,129)
Youth and Family Services
36,585,889
34,767,393
33,374,271
(1,393,122)
286,187,386
287,451,659
269,324,679
(18,126,980)
462,950
462,950
462,950
265,866,303
265,866,293
262,988,951
7,431,000
3,966,153
3,966,153
-
33,949,701
33,949,701
33,905,174
(44,527)
Total Health and Human Services
Business Partners
City-County Departments
-
Board of Education:
Current
Capital Outlay
(2,877,342)
Debt Service
Principal retirement - bonds
Principal retirement - certificates of
participation
1,250,000
1,250,000
1,250,000
-
39,384,894
31,184,894
31,177,862
(7,032)
14,741,494
14,391,494
14,240,054
(151,440)
Principal retirement - bonds
4,692,913
4,718,593
4,718,593
Interest
3,750,007
3,724,327
3,578,382
(145,945)
17,925,000
17,925,000
17,732,355
(192,645)
2,349,769
2,374,769
2,349,161
(25,608)
140,438
190,438
172,385
(18,053)
5,586,463
5,536,463
4,731,259
(805,204)
Total Business Partners
397,530,932
385,541,075
381,273,279
(4,267,796)
Total Expenditures
942,903,927
943,605,523
908,107,879
(35,497,644)
15,365,417
21,867,247
38,317,991
16,450,744
Interest
Central Piedmont Community College
Current
Debt Service
Hospitals
WTVI
Historic Landmarks Commission
Outside Agencies - Other
Excess of Revenues over Expenditures
-
OTHER FINANCING SOURCES (USES)
Transfers in
126,183
Transfers out
241,898
-
Distribution from ABC Board
2,137,500
-
(7,452,795)
(7,452,795)
2,137,500
1,876,250
(241,898)
(261,250)
Allocations to component units
Library
(23,103,819)
(23,578,862)
(22,962,020)
616,842
Emergency Medical Services
(12,000,000)
(11,970,000)
(11,839,093)
130,907
Capital leases
-
-
246,670
246,670
Proceeds from sale of refunding bonds
-
-
30,531,136
30,531,136
-
(30,531,136)
(30,531,136)
Payment to refunded bond escrow agent
-
Appropriated fund balance
Total other financing uses
NET CHANGE IN FUND BALANCE
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
$
17,474,719
18,755,012
(15,365,417)
-
(21,867,247)
-
$
(40,130,988)
(1,812,997)
179,783,275
$ 177,970,278
The accompanying notes are an integral part of this statement.
(18,755,012)
(18,263,741)
$ (1,812,997)
MECKLENBURG COUNTY, NORTH CAROLINA
STATEMENT OF NET ASSETS
PROPRIETARY FUND
JUNE 30, 2002
Business
Type Activities
Solid Waste
Enterprise Fund
ASSETS
Current Assets
Cash and investments
$ 12,896,840
Interest receivable
131,307
Accounts receivable
549,908
Total Current Assets
13,578,055
Restricted cash and investments
339,644
Capital assets
Land
28,063,049
Land improvements
2,825,531
Buildings
8,975,544
Vehicles and heavy equipment
3,807,357
Furniture, machinery and equipment
Total capital assets
71,268
43,742,749
Less accumulated depreciation
(4,854,867)
Total Capital assets, net of accumulated depreciation
38,887,882
TOTAL ASSETS
52,805,581
LIABILITIES
Current Liabilities
Accounts payable and accrued liabilities
Compensated absences
398,992
17,512
Capital leases
316,018
Bonds payable
2,402,316
Total Current Liabilities
3,134,838
Long-term Liabilities
Compensated absences
324,563
Landfil development and post
closure care costs
1,135,709
Capital leases
945,202
Bonds payable
10,986,283
Total Non-current Liabilities
13,391,757
TOTAL LIABILITIES
16,526,595
NET ASSETS
Invested in capital assets, net of related debt
Unrestricted
24,238,063
12,040,923
TOTAL NET ASSETS
The accompanying notes are an integral part of this statement.
$ 36,278,986
MECKLENBURG COUNTY, NORTH CAROLINA
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS
PROPRIETARY FUND
FOR THE YEAR ENDED JUNE 30, 2002
Business
Type Activities
Solid Waste
Enterprise Fund
OPERATING REVENUES
Charges for services
$
Recycling sales
7,678,782
1,641,379
Other
7,998
Total Operating Revenues
9,328,159
OPERATING EXPENSES
Personal services and employee benefits
2,896,345
Utilities
79,070
Supplies
427,452
Depreciation
929,769
Maintenance and repairs
365,745
Rental and occupancy charges
124,395
Contractual services
3,181,259
Final development and postclosure costs
195,151
Total Operating Expenses
8,199,186
OPERATING INCOME
1,128,973
NON-OPERATING REVENUES (EXPENSES)
Interest income
645,803
Interest expense
(827,864)
Loss on disposal of capital assets
(4,363)
Amortization of refunding amount
(100,325)
Other
191,166
Total Non-operating Expenses
(95,583)
CHANGE IN NET ASSETS
1,033,390
NET ASSETS - BEGINNING OF YEAR
NET ASSETS - END OF YEAR
35,245,596
$ 36,278,986
The accompanying notes are an integral part of this statement.
MECKLENBURG COUNTY, NORTH CAROLINA
STATEMENT OF CASH FLOWS
PROPRIETARY FUND
FOR THE YEAR ENDED JUNE 30, 2002
Business
Type Activities
Solid Waste
Enterprise Fund
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from users
$ 10,987,795
Cash paid to suppliers
(5,234,204)
Cash paid to employees
Net cash provided by operating activities
(2,884,446)
2,869,145
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Principal payments - bonds
(2,483,068)
Principal payments - capital leases
(174,425)
Interest paid
(827,864)
Proceeds from disposals of assets
30,000
Acquisition of capital assets
(3,052,326)
Net cash used by capital and related financing activities
(6,507,683)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received
617,121
Net cash provided by investing activities
617,121
DECREASE IN CASH AND INVESTMENTS
(3,021,417)
CASH AND INVESTMENTS - BEGINNING OF YEAR
16,257,901
CASH AND INVESTMENTS - END OF YEAR
$ 13,236,484
Reconciliation of Operating Income to Net Cash Provided by
Operating Activities
Operating Income
1,128,973
Adjustments to reconcile operating income to net cash
provided by operating activities:
Depreciation
929,769
Decrease in accounts receivable
1,659,636
Decrease in accounts payable
(993,851)
Landfill final development and postclosure care costs
134,627
Increase in compensated absences
9,991
Total adjustments
Net cash provided by operating activities
1,740,172
$
2,869,145
$
100,325
Noncash investing, capital, and financing activities
Amortization of refunding amount
Asset addition under capital lease
The accompanying notes are an integral part of this statement.
737,942
MECKLENBURG COUNTY, NORTH CAROLINA
STATEMENT OF NET ASSETS
FIDUCIARY FUNDS
JUNE 30, 2002
Agency Funds
ASSETS
Cash and investments
Accounts receivable
TOTAL ASSETS
$ 7,120,419
733
7,121,152
LIABILITIES
Accounts payable and accrued liabilities
Due to other governmental agencies
TOTAL LIABILITIES
3,520,406
3,600,746
7,121,152
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, 2002
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 emphasize they are legally separate from
the County.
The Public Library of Charlotte and Mecklenburg County (Library) is a public library formed in 1902 by an act
of the General Assembly of North Carolina. Six of the seven members of the Library Board of Trustees are
appointed by the County and one is appointed by the Charlotte-Mecklenburg Board of Education. The
County has budgetary approval over its annual allocation to the Library for current operating purposes. The
Library is not empowered to issue long-term debt; therefore, capital assets of the Library are financed
principally by general obligation bonds 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 Healthcare and one by the County. The County has budgetary approval over its 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, 2002
(b) Government-wide Financial Statements
The Statement of Net Assets (Deficit) and the Statement of Activities comprise the government-wide
financial statements. These statements present information on all the non-fiduciary activities of the primary
government and its discretely presented component units. For the most part, the effect of interfund activity
has been eliminated from the statements. The primary government consists of governmental activities,
which are generally supported by taxes and intergovernmental revenues and business-type activities which
charge for the services provided. Component units, which are legally separate entities for which the primary
government is financially accountable, are also categorized as governmental or business-type activities and
are reported separately on the government-wide financial statements.
The Statement of Net Assets (Deficit) presents the difference between assets and liabilities at the end of the
fiscal year, June 30, 2002. 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, which 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, the proprietary fund, and the agency fiduciary funds 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
other revenues are recorded as revenues when received in cash, because they are generally not
measurable until actually received.
MECKLENBURG COUNTY, NORTH CAROLINA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2002
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.
2002B Public Improvement Capital Projects Fund – This Capital Projects Fund accounts for financial
resources to be used for the acquisition or construction of major capital facilities for school and community
college facilities, 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:
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 2002B 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).
Fiduciary Funds - The agency fiduciary funds account for assets held by the County as agent for
individuals, private organizations or other governmental units. These funds are custodial in nature and
do not involve measurement or operating results.
The County has elected to apply only applicable Financial Accounting Standards Board Statements and
Interpretations issued before November 30, 1989 in both the government-wide and proprietary fund financial
statements.
The County has eliminated the effect of interfund activity from the government-wide financial statements.
The only exceptions are charges between the Solid Waste Enterprise Fund and the General Fund.
Elimination of these charges would distort the direct costs and program revenues reported for the various
functions involved.
The Solid Waste Enterprise Fund, a proprietary type fund, distinguishes between operating revenues and
expenses and non-operating revenues and expenses. The principal operating revenues of the Solid Waste
Enterprise Fund are landfill tipping fees, charges for recycling services and proceeds from the sale of
recycled items. Operating expenses consist of cost for services provided, administrative costs and
depreciation of assets. All other revenues and expenses are classified as non-operating.
The County has implemented GASB Statement No. 34, Basic Financial Statements – and Management’s
Discussion and Analysis – for State and Local Governments, and related standards. These new standards
provide for significant changes in terminology and presentation and for the inclusion of Management’s
Discussion and Analysis, which is required supplementary information.
(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
MECKLENBURG COUNTY, NORTH CAROLINA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2002
most are controlled at the category level. The annual budget is prepared on the modified accrual basis of
accounting as required by the statutes. Budget preparations begin with the Board of County Commissioners’
annual strategic planning conference in January. Department budgets are prepared and combined into a
county-wide budget between February and April. Public hearings are held in May and the budget is adopted
by vote of the County Commissioners prior to July 1, to comply with the North Carolina General Statutes.
The County Manager is authorized to transfer budgeted amounts within any fund. However, any revisions
that alter the total budget of any fund must be approved by the Board of County Commissioners. Except for
certain continuing grants, any remaining annual appropriations lapse at each fiscal year-end.
The Statement of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual presents the
adopted and final budget and actual amounts for the General Fund. Capital lease amounts are approved by
the Board of County Commissioners as needed and the amount budgeted for capital leases annually is the
related debt service for the year.
Additionally, the Board of County Commissioners approves annual budgets for all the Special Revenue
Funds except the One-half Cent Sales Tax Special Revenue Fund. During the year, the Board of County
Commissioners also approved amendments for these funds as follows:
Special Revenue Funds
Original
Budget
Amendments
Final Budget
June 30, 2002
$61,579,147
$7,332,690
$68,911,837
Of the total amendments for Special Revenue Funds, $6,769,178 relates to Expendable Trust Funds that
were converted to Special Revenue Funds after the original budget was adopted, to comply with the
requirements of GASB Statement 34.
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
$1,826,240
150,000
$1,976,240
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 investment pool is maintained and used for all available funds except funds held by others. A
portion of the County’s self-insurance funds in the amount of $4,553,105 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; proceeds of $21,830,680 from certificates of participation, are held by a trustee; and $67,762
of proceeds from an equipment financing are held by an escrow agent.
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
MECKLENBURG COUNTY, NORTH CAROLINA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2002
Commission, a Division of the State Treasurer’s Office. The County may also establish time deposits in the
form of NOW accounts, SUPERNOW and money market accounts and certificates of deposit. Primary
banking services for the County are provided through a two-year contract, currently with First Citizens Bank
of North Carolina. All moneys are deposited in an interest-bearing depository checking account. At yearend, the cash balance of County deposits was $30,148,939 and the bank balance was $48,884,762.
Included in these amounts is a money market account in the amount of $24,031,137 with First Union
National Bank. Also included are $13,165,254 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 standards of
financial stability for each depository. Of the bank balance, $479,354 was covered by federal depository
insurance and $48,405,408 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, 2002,
the carrying amount of the Library’s bank deposits was $1,157,212 and the bank balance was $1,635,125 of
which $542,241 was covered by federal depository insurance, $381,435 was covered by collateral held
under the dedicated method and $711,449 was covered by the pooling method. Investments of $314,004
consist of one certificate of deposit having original maturity of six months with an interest rate of 2%. At
June 30, 2002, the carrying amount of the ABC Board’s bank deposits was $3,409,769 and the bank
balance was $5,308,615. Of the bank balance at June 30, 2002, $512,253 was covered by federal
depository insurance and the remaining $4,796,362 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. At June 30, 2002, the Medic Agency’s deposits had a carrying value of $1,714,739 and a
bank balance of $2,187,922 of which $200,000 was covered by federal depository insurance and
$1,987,922 was covered by collateral.
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
MECKLENBURG COUNTY, NORTH CAROLINA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2002
categorization because a third-party custodian takes delivery of investment securities and neither the County
nor the Medic Agency own identifiable securities, but are shareholders of the fund.
As of June 30, 2002, investments outstanding for the County were as follows:
Type of Investments
U.S. Government Agencies
Banker’ Acceptances
Category 1
Reported Value
Fair Value
$160,067,328
4,972,500
$160,067,328
4,972,500
$160,067,328
4,972,500
$165,039,828
165,039,828
52,501,202
165,039,828
52,501,202
$217,541,030
$217,541,030
N. C. Capital Management Trust
TOTAL
All securities owned by the County at June 30, 2002, 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 5, 2002. These investments are
stated at fair value on the County’s financial statements.
As of June 30, 2002, the Medic Agency’s investments outstanding were as follows:
Type of Investments
Reported Value
Fair Value
N. C. Capital Management Trust
$1,156,284
$1,156,284
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 2002, the County realized a gain in the amount of $813,117 from the sale of investments. 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 2002 for the
County was $1,214,908. 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 $217,030.
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.
MECKLENBURG COUNTY, NORTH CAROLINA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2002
(g) Capital Assets
Capital assets, which include land, land improvements, buildings and improvements, vehicles and heavy
equipment, and furniture, machinery and equipment, are reported in the applicable governmental or
business-type activities column in the government-wide financial statements and in the proprietary fund
financial statements. Capital assets are defined as assets with an initial, individual purchase price of $5,000
or more and an estimated useful life of two years or more. Such assets are recorded at historical cost or
estimated historical cost if the asset is purchased or constructed. Contributed capital assets are recorded at
the estimated fair market value at the time received. The County owns only limited infrastructure assets,
which are considered to be park improvements, a part of land improvements. Park improvements acquired
during fiscal year 2002 have been included in capital assets. Park improvements added prior to fiscal year
2002 will be shown in a subsequent 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, 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
(h)
40 years
5-10 years
3 years
Compensated Absences
For the County, Library and Medic Agency, the maximum amount of vacation that can be transferred to the
next calendar year is 240 hours. Accrued vacation beyond the maximum will be converted to sick leave as
of the last pay period ending on or before December 31 each year. Vacation leave is earned based on years
of service and is fully vested when earned. All unused accumulated vacation up to 240 yours 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. Accumulated earned vacation at June 30, 2002 was $429,860.
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. Since the ABC Board has no obligation for accumulated
sick leave until it is actually taken or until an individual retires or dies, no accrual for sick leave has been
made. The related expense is considered to be immaterial at June 30, 2002.
MECKLENBURG COUNTY, NORTH CAROLINA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2002
(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 fiscal year preceding the budget year.
•
Designated for management services, financial services, customer satisfaction and communications,
land use and environmental services, community services, detention and court support services, health
and human services and business partners – These represent amounts approved by the Board of
County Commissioners which are restricted to expenditures for the stated core services 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.
•
Undesignated – This represents the amount of fund balance available for future appropriations.
The following table presents the reservations and designations of fund balances at June 30, 2002:
Major Funds
2002B
General
Capital Projects
Fund
Fund
Fund Balance:
Reserved for encumbrances
Reserved by State Statute
Designations:
Management Services
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
Total Fund Balance
Nonmajor Funds
Special
Capital
Revenue
Projects
Funds
Funds
$10,336,702
60,023,680
$2,715,301
-
$ 2,731,483
12,266,599
$11,331,434
23,760,085
150,136
2,438
676,886
107,717
805,756
28,500,000
77,366,963
(26,101,502)
500,231
337,442
10,773,241
1,755,175
56,833,331
(18,557,703)
$177,970,278
$(23,386,201)
$28,364,171
$ 73,367,147)
MECKLENBURG COUNTY, NORTH CAROLINA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2002
(k)
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 is 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
provided by the following table 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, 2002, the balance of the County's ADM allocation account was $5,092,497.
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, 2002, the County's disbursing account had a
balance of $1,447,899 for which the total project authorizations were $56,128,264. 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.
(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 will be 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
MECKLENBURG COUNTY, NORTH CAROLINA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2002
expenditures are made. During fiscal year 2001-02, the County expended $19,433,365 and recognized
$17,865,884 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:
2002
Medicaid
Temporary Assistance to Needy Families
Domiciliary Care
Aid to the Blind
Low Income Energy Assistance
Refugee Assistance
Adoption Assistance
Foster Care
TOTAL
$357,650,099
16,054,645
3,261,546
138,736
780,856
126,755
1,596,120
1,879,073
$381,487,830))
(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.
The balances in deferred revenue at June 30, 2002 are composed of the following:
Government-wide
Statements
Governmental
Activities
Governmental Fund
Statements
Taxes receivable(net)
Prepaid taxes not yet earned
Grants
$
902,301))))))))
1,645,841))))))))
$22,623,572))))))))
899,958))))))))
1,645,841))))))))
TOTAL
$2,548,142))))))))
$25,169,371))))))))
For the Medic Agency, the balances in deferred revenues at June 30, 2002, are composed of gross
ambulance billings for services performed prior to June 30, 2002, that were not collected within 60 days after
the period end.
(p) Deficit Fund Equity
Within the nonmajor governmental funds, the 2002B Public Improvement Capital Project Fund has a deficit
undesignated fund balance of $26,101,502 and a deficit fund balance of $23,386,201. Also, the 2002C
Variable Rate Capital Project Fund has a deficit fund balance of $7,994,960. These deficits will be
eliminated in fiscal year 2003 when the County issues debt authorized for the projects. The Other Capital
Funding Capital Project Fund has a deficit undesignated fund balance of $5,562,743 and a deficit fund
MECKLENBURG COUNTY, NORTH CAROLINA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2002
balance of $1,481,578 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, 2002:
Governmental
Activities
General Fund
Nonmajor Funds
3.
Businesstype
Activities
Total
Receivables
$47,057,829)
27,617,065)
29,950,240)
(7,334,000)
1,245,003)
(552,500)
2,555,980)
General
State and Federal Government
Taxes
Less allowance for doubtful accounts
Clinic billings
Less allowance for doubtful accounts
Interest
$ 46,496,316)
9,594,994)
29,499,252)
(7,200,000)
1,245,003)
(552,500)
2,353,959)
$
11,605))))))
18,022,071))))))
450,988))))))
(134,000))))))
70,714))))))
$549,908)
131,307)
Total Receivables
$81,437,024)
$18,421,378))))))
$681,215))))))
$100,539,617)
Property Tax
The County's property tax levied effective for fiscal year 2001-02, was based on the assessed values listed as
of January 1, 2001, 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, 2001. The property tax rate
for the 2002 fiscal year was $.8397 per $100 valuation. A revaluation of all real property is required to be
performed at least every eight 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 values as of
January 1, 2001. 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, 2001 through February, 2002 apply to the fiscal year ended June 30, 2002.
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.
MECKLENBURG COUNTY, NORTH CAROLINA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2002
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, 2002 because they are intended to finance the County’s operations
during the 2003 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.
5.
Capital Assets
Primary Government
Balance
July 1, 2001
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
Total Business-type activities capital assets, net
Additions
Deletions
Balance
June 30, 2002
$204,232,675)
81,593,436)
285,826,111)
$ 61,466,794)
29,887,581)
91,354,375)
$ (3,232,935)
(68,865,107)
(72,098,042)
$262,466,534)
42,615,910)
305,082,444)
7,808,661)
281,570,371)
19,530,659)
23,906,198)
332,815,889)
4,794,276)
73,189,380)
2,173,042)
6,146,871)
86,303,569)
(99,455)
(1,916,234)
(1,161,361)
(3,177,050)
12,602,937)
354,660,296)
19,787,467)
28,891,708)
415,942,408)
(6,822,929)
(110,866,656)
(11,820,012)
(14,053,541)
(143,563,138)
189,252,751
(1,235,235)
(11,179,867)
(2,172,035)
( 3,763,902)
(18,351,039)
67,952,530)
36,142)
1,610,496)
682,145)
2,328,783)
(848,267)
(8,058,164)
(122,010,381)
(12,381,551)
(17,135,298)
(159,586,394)
256,357,014)
$ 475,078,862
$159,306,905)
$(72,946,309)
$561,439,458)
$ 27,724,043
2,524,124
30,248,167
$
339,006)
__ ___-____)
339,006)
$
(2,524,124)
(2,524,124)
$ 28,063,049)
-__ _)
28,063,049)
145,546
6,451,420
3,260,391
71,268
9,928,625
2,679,985)
2,524,124)
776,054)
-___)
5,980,163)
(229,088)
-____
(229,088)
2,825,531)
8,975,544)
3,807,357)
71,268)
15,679,700)
(2,086,815)
(1,961,736)
(71,268)
(4,119,819)
5,808,806
(334,591)
(415,966)
(179,212)
- ___
( 929,769)
5,050,394)
194,721
-_ __
194,721
(34,367)
(334,591)
(2,502,781)
(1,946,227)
___ ( 71,268)
(4,854,867)
10,824,833)
$ 36,056,973
$ 5,389,400)
$(2,558,491)
$ 38,887,882)
MECKLENBURG COUNTY, NORTH CAROLINA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2002
Depreciation expense was charged to the programs of the County as follows:
Governmental Activities:
Management Services
Financial Services
Land Use and Environmental Services
Community Services
Detention and Court Support Services
Health and Human Services
Business Partners
Total Governmental Activities
Business-type activities:
Solid Waste Enterprise Fund
$ 3,587,929
7,907
763,164
2,465,472
8,126,841
1,068,924
2,330,802
18,351,039
929,769
Total depreciation expense
$19,280,808
Amounts expended and estimated costs to complete the County's construction-in-progress are as follows:
Project
Estimated
Project
Authorization
Expended to
June 30, 2002
Costs to
Complete
Required
Future
Financing
Court Parking Deck
Park and Recreational Facilities
School Facilities
Courthouse
$ 24,400,000
11,500,000
50,000,000
90,500,000
$
677,316
7,018,520
32,050,177
2,869,897
$ 23,722,684
4,481,480
17,949,823
87,630,103
$
-
TOTAL
$176,400,000
$42,615,910
$133,784,090
$
-
Activity in the Library’s Capital assets for the year ended June 30, 2002 is as follows:
Balance
July 1, 2001
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
$ 10,474,710)
834,382)
11,309,099)
Additions
$
649,307
1,218,846
1,868,153
$
Deletions
Balance
June 30, 2002
-
$ 11,124,024)
2,053,228)
13,177,252)
33,635,976)
4,672,931)
768,972)
39,077,879)
246,721
94,944
2,300,000
2,641,665
(221,933)
(221,993)
33,660,764)
4,767,875)
3,068,972)
41,497,611)
(6,956,239)
(4,505,756)
(112,142)
(11,574,137)
27,503,742)
(837,696)
(89,035)
(76,724)
(1,003,455)
1,638,210
90,623)
90,623)
(131,310)
(7,703,312)
(4,594,791)
(188,866)
(12,486,969)
29,010,642)
$ 38,812,841)
$ 3,506,363
$ (131,310)
$ 42,187,894)
MECKLENBURG COUNTY, NORTH CAROLINA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2002
Activity in the Medic Agency’s capital assets for the year ended June 30, 2002 is as follows:
Balance
July 1, 2001
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
$ 3,515,965)
1,103,464)
959,497)
709,046)
2,785,962)
9,073,934)
(2,409,480)
(921,503)
(527,036)
(330,801)
(740,718)
(4,929,538)
$ 4,144,393)
Additions
$
Deletions
Balance
June 30, 2002
465,449)
204,971)
112,287)
534,476)
15,197)
1,332,381)
$ (361,147)))
(715,227)
(402,191)
(166,175)
_ (15,593)
(1,660,333)
$ 3,620,267)
593,208)
669,593)
1,077,347)
2,785,567)
8,745,982)
(528,663)
(115,411)
(125,624)
(218,269)
(278,557)
(1,266,524)
361,147)))
699,849)
402,191
166,175
15,593)))
1,644,955)))
(2,576,996)
(337,065)
(250,469)
(382,895)
(1,003,682)
(4,551,107)
$ (15,378)))
$ 4,194,875)
$
65,857)
The Medic Agency raised its capitalization limit from $3,000 to $5,000 effective July 1, 2001; therefore, $1,236,250 of
previously capitalized assets is included in deletions as a result of this change.
Activity in the ABC Board’s capital assets for the year ended June 30, 2002 is as follows:
July 1, 2001
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
Deletions
June 30, 2002
$ 4,101,930)
475,415)
4,577,345)
$ 291,538)
1,495,795)
1,787,333)
$
(1,901,250)
(1,901,250)
$ 4,393,468)
69,960)
4,463,428)
10,197,796)
595,991)
2,789,639)
13,583,426)
1,544,583)
140,753)
251,461)
1,936,797)
(70,823)
(161,739)
(232,562)
11,742,379)
665,921)
2,879,361)
15,287,661)
(2,276,465)
(416,475)
(1,364,960)
(4,057,900)
9,525,526)
(367,719)
(108,533)
(306,468)
(782,720)
1,154,077)
69,234)
136,806)
206,040)
(26,522)
(2,644,184)
(455,774)
(1,534,622)
(4,634,580)
10,653,081
$14,102,871)
$2,941,410)
$(1,927,772)
$ 15,116,509
Interfund Receivables and Payables
Governmental Funds interfund receivables and payables of $21,838,780 at June 30, 2002 consists of
$13,086,179 due to various nonmajor capital projects funds from the 2002B Public Improvement Capital
Projects Fund and $8,752,601 due to various nonmajor capital projects funds from other nonmajor capital
projects funds. These balances represent lending/borrowing arrangements resulting from the timing of
expenditures versus the receipt of bond proceeds. The $470,176 in the General Fund due from component
units is a result of payments made by the ABC Board prior to year-end but not received by the County until after
year-end.
MECKLENBURG COUNTY, NORTH CAROLINA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2002
7.
Accounts Payable and Accrued Liabilities
The components of accounts payable and accrued liabilities at June 30, 2002 for the governmental activities
and the business-type activities as reported in the Statement of Net Assets (Deficit) are the following:
Governmental Activities
2002B 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
$39,752,031
2,853,462
12,310,529
1,422,348
$10,300,022
- ___
$7,404,086
-____
$398,992
-___
$57,855,131)))))))
2,853,462)))))))
12,310,529)))))))
1,422,348)))))))
$56,338,370
$10,300,022
$7,404,086
$398,992
$74,441,470)))))))
Long-Term Debt
General Obligation Bonds
The County issues general obligation bonds to provide for the acquisition and construction of major capital
facilities. General obligation bonds are direct obligations and pledge the full faith and credit of the County. The
County consolidates all debt issues, including schools, into the Public Improvement category. Repayment of
general obligation bonds is funded from general property tax revenues. The general obligation bonded debt
associated with the Solid Waste Enterprise Fund is reported in that fund and will be repaid from revenues
generated by solid waste fees and charges.
General obligation bonds outstanding at June 30, 2002:
Issue Date
Refunding Bonds 1986
Refunding Bonds 1993
Public Improvements 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
TOTAL
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
Due
Average
Serially Interest
Rate
To
2004
2012
2011
2013
2013
2013
2015
2016
2016
2018
2010
2010
2020
2010
2020
2018
2021
2013
2021
2013
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
Original
Issue
$ 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
Balance
June 30, 2002
$
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
$1,849,205,000 $1,311,265,000
MECKLENBURG COUNTY, NORTH CAROLINA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2002
The bonds are recorded as follows:
Governmental Activities
Business-type Activities (Solid Waste Enterprise Fund)
$1,296,873,163
14,391,837
TOTAL
$1,311,265,000
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, 2002 was $1,003,238.
In fiscal year 2002, the County issued $33,595,000 General Obligation Refunding Bonds at a net interest cost
of 2.40%. The purpose was to refund and redeem $33,925,000 of the principal amount outstanding of the
Refunding 1992 Bonds and 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 March 1, 2002 and the applicable
liabilities have been removed from the governmental activities and the business-type activities Solid Waste
Enterprise Fund. The refunding transaction will result in annual debt service savings of approximately $478,000
with net present value savings of $1,360,432.
General obligation bonds are due serially and mature during the fiscal years 2004 to 2021 at average interest
rates at date of issuance ranging from 2.40% to 7.17%. The effective rate of interest paid on the average
principal balance of outstanding bonds during the year was 4.23%.
The County has issued $225,000,000 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 2002 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 required for these bonds through
maturity would be $386,000,000.
Issue
1996C
1998C
2000C
2000E
2001B
Balance
June 30, 2002
Agreement Expiration
$50,000,000
50,000,000
50,000,000
50,000,000
25,000,000
August 1, 2002
February 1, 2003
January 26, 2005
November 1, 2003
May 15, 2004
Fees Paid
Fiscal Year 2002
$143,565000
25,000000
82,805000
75,908000
66,411000
Interest Rate
June 30, 2002
1.15%
1.22%
1.25%
1.30%
1.30%
The County is subject to the Local Government Bond Act of North Carolina which limits the amount of net
bonded debt (exclusive of funding and refunding bonds, bonds issued for water, gas, or electric power
purposes, and bonds issued for certain other specified purposes) the County may have outstanding to 8% of
the appraised value of property subject to taxation. At June 30, 2002, such statutory limit for the County was
$5,431,628,708 providing a legal debt margin of $3,388,663,708.
MECKLENBURG COUNTY, NORTH CAROLINA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2002
The following schedule shows annual requirements to amortize all bonded debt outstanding as of June 30,
2002. Interest on the variable rate bonds has been estimated using the rate in effect at June 30, 2002.
Governmental Activities
Year
2002-2003
2003-2004
2004-2005
2005-2006
2006-2007
2007-2012
2012-2017
2017-2021
Total
Business-Type Activities
Principal
Interest
Principal
82,942,359
84,388,739
85,729,279
88,957,933
88,835,376
457,897,490
301,921,987
106,200,000
$1,296,873,163
$ 53,973,643
50,146,572
46,230,024
42,323,224
38,186,760
124,620,292
32,655,577
3,383,848
$391,519,940
$ 2,502,641)
2,456,261)
2,330,721)
1,822,067)
1,269,624)
3,982,510)
28,013)
- __
$14,391,837
$
Amortization
Interest
$
100,325
100,325
100,325
100,325
100,325
501,613
$1,003,238
$690,348
576,316
462,875
360,738
282,364
586,554
2,342
$2,961,537
As of June 30, 2002, $717,300,000 general obligation bonds were authorized but unissued.
Certificates of Participation
The Mecklenburg County Public Facilities Corporation sold certificates of participation in the amount of
$29,000,000 on November 16, 2001, to provide funding for school and park and recreation facilities. Interest on
these certificates is variable rate. At June 30, 2002, the interest rate was 1.25% and the outstanding principal
balance was $29,000,000. The maximum interest, which cannot exceed 12%, required for these certificates
through maturity would be $33,616,800.
At June 30, 2002, the interest rate on the certificates of participation issued in 2000 for school facilities was
1.25% and the outstanding principal balance was $22,500,000. The maximum interest, which cannot exceed
12%, required for these certificates through maturity would be $24,975,000.
Annual principal requirements to maturity are presented in the following table:
Fiscal Year
2002-03
2003-04
2004-05
2005-06
Fiscal Year
Principal
$2,700,000
2,700,000
2,700,000
2,700,000
2006-07
2007-12
2012-17
2017-22
Principal
$ 2,700,000
13,500,000
13,500,000
11,000,000
Changes in Long-Term Liabilities
The following presents the changes in long-term liabilities for the year ended June 20, 2002:
Balance
July 1, 2001
Governmental activities:
General obligation bonds
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
Reductions
Balance
June 30, 2002
Due within
One Year
$1,316,548,704 $ 86,531,136
15,077,792
246,669
15,923,275
15,603,920
23,750,000
29,000,000
866,677
223,201
$(106,206,677)
(2,187,457)
( 13,861,389)
(1,250,000)
______-_____
$1,296,873,163
13,137,004
17,665,806
51,500,000
1,089,878
$82,942,359
2,064,912
921,874
2,700,000
_____-____
1,372,166,448
131,604,926
(123,505,523)
1,380,265,851
88,629,145
15,957,733
697,703
332,084
3,063,864
737,942
227,798
(5,632,998)
(174,425)
(217,807)
13,388,599
1,261,220
342,075
2,402,316
316,018
17,512
1,001,082
134,627
______-_____
1,135,709
_____-____
17,988,602
4,164,231
(6,025,230)
16,127,603
2,735,846
$1,390,155,050 $135,769,157
$(129,530,753)
$1,396,393,454
$91,364,991
MECKLENBURG COUNTY, NORTH CAROLINA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2002
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, 2002, for the Library:
Balance
July 1, 2001
Additions))
Reductions))
Balance
June 30, 2002
Due within
One Year
$ 550,937
1,537,727
$2,300,000
1,647,106
$
(202,713)
(1,419,914)
$2,648,224))))
1,764,919))))
$ 190,784))
1,550,000))
$2,088,664
$3,947,106
$(1,622,627)
$4,413,143))))
$1,740,784))
Governmental activities:
Capital leases
Compensated absences
Total Government-wide
The $711,109 of long-term liabilities due within one year for the Medic Agency represents compensated
absences at June 30, 2002.
The following presents the changes in long-term liabilities for the year ended June 30, 2002, for the ABC Board:
Balance
July 1, 2002
Note payable
9.
$
-
-
Additions
Reductions
Balance
June 30, 2002
Due Within
One Year
$1,500,000
$(9,646)
$1,490,354
$113,447
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 value of
capitalized leases recorded in the governmental activities, capital assets – furniture, machinery, and equipment,
of the government-wide statements is $11,815,134 and the net book value of those assets recorded in the
Enterprise Fund, capital assets – vehicles and heavy equipment, is $1,159,359.
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, 2002, future minimum lease payments due under
capital leases and operating leases with initial or remaining non-cancelable lease terms in excess of one year
are as follows:
Year Ending June 30,
2003
2004
2005
2006
2007
2008-2012
Less: amount
representing interest
Capital Leases
Governmental
Solid Waste
Activities
Enterprise Fund
$2,788,568)0
2,441,395)0
2,150,089)0
1,945,921)0
1,774,901)0
5,233,330)0
16,334,204)))
$ 364,893 00
353,498 00
341,285 00
160,1720 0
156,925 00
1,376,773))))
(3,197,200)0
(115,553))))
$13,137,0040
$1,261,220 00
Operating
Leases
$173,068)
123,246)
39,212)
$335,526
MECKLENBURG COUNTY, NORTH CAROLINA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2002
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, 2002:
Year Ending
June 30,
Capital
Leases
2003
2004
2005
2006
2007
Thereafter
$344,899
336,987
328,492
320,289
312,085
2,133,970
$609,600
443,797
364,193
268,166
227,312
1,910,747
3,776,722
$3,823,815
Less: Amount
representing interest
Operating
Leases
(1,128,498)
$2,648,224
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
$318,467. 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 store properties and equipment leased, with lease terms extending
to October 15, 2021, at June 30, 2002, are summarized as follows:
Year Ending
June 30,
Operating
Leases
2003
2004
2005
2006
2007
Thereafter
$509,455
360,762
241,749
113,360
81,212
1,082,828
$2,389,366
For the year ended June 30, 2002, rent expense for operating leases for the County was $737,345, for the
Library was $716,000, for the Medic Agency was $396,149 for the ABC Board was $414,775.
MECKLENBURG COUNTY, NORTH CAROLINA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2002
10. Transfers, Allocations and Distributions
The following summarizes interfund transfers for the year ended June 30, 2002:
General Fund
Transfers to:
General Fund
Non-major governmental funds
TOTAL
$7,452,795
$7,452,795
Transfers from:
Nonmajor
Governmental Funds
$(7,452,795)
$(7,452,795)
Total
$(7,452,795)
7,452,795)
$
-
Specifically, the funds were transferred from the General Fund to the Capital Reserve Special Revenue Fund.
The County allocated $22,962,020 to the Library for operating expenditures. The County also allocated
$11,839,093 to the Medic Agency. The amount reported as expenditures for the County does not match the
Library's revenue as a result of timing differences and the amount reported as expenditures for the County does
not match the Medic Agency revenue as a result of $30,000 the County retained to cover Medic expenditures
and Medic reported as revenue received.
The County received a distribution of $1,876,250 from the ABC Board.
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 2002 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, 2002,
2001 and 2000 were $7,793,764, $7,244,931, and $6,825,806, respectively. The contributions made by the
County equaled the required contributions for the year.
The Library, Medic Agency and ABC Board also participate in the North Carolina Local Governmental
Employees' Retirement System described above, which is the same plan in which the County participates. The
Library’s contributions to LGERS for the years ended June 30, 2002, 2001, and 2000 were $651,879, $587,851,
and $591,242, respectively. The rate for fiscal year 2002 for employees is 4.88% of covered payroll. The Medic
Agency’s contributions to LGERS for the year ended June 30, 2002, 2001 and 2000 were $517,760, $483,282
and $414,063, respectively, and the rate for fiscal year 2002 for employees is 4.84% of covered payroll. The
ABC Board’s contributions to LGERS for the years ended June 30, 2002, 2001, and 2000 were $246,666,
$230,639, and $226,086, 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.
MECKLENBURG COUNTY, NORTH CAROLINA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2002
(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, 2001, the Separation Allowance’s membership consisted of:
Retirees receiving benefits
Active plan members
Total
County
ABC Board
21
300
2
12
321
14
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 $213,236 for the fiscal
year ended June 30, 2002, 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 $36,758 for the fiscal year ended June 30, 2002. 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,
2001, 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, 2001,
was 29 years.
The County’s annual pension cost and net pension obligation to the Separation Allowance for the current year
were as follows:
Annual required contribution
Interest on net pension obligation
Adjustment to annual required contribution
Annual pension cost
Contributions made
Increase in net pension obligation
Net pension obligation beginning of year
$ 419,239
62,834
(45,636)
436,437
(213,236)
223,201
866,677
Net pension obligation end of year
$1,089,878
MECKLENBURG COUNTY, NORTH CAROLINA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2002
Three-Year Trend Information:
Fiscal Year
Ended
2002
2001
2000
Annual Pension
Cost (APC)
$436,437))))))))))
325,339))))))))))
306,195))))))))))
Percentage of APC Contributed
48.86%
64.06)
72.08)
Net Pension
Obligation
End of Year
$1,089,878))))
866,677))))
749,737))))
(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, 2002 was $632,333. Contributions for the ABC Board for the year
ended June 30, 2002, were $86,842, which consisted of $66,168 from the ABC Board and $20,674 from the law
enforcement officers’ voluntary contributions. The ABC Board’s required plus voluntary contributions and the
officers’ voluntary contributions represented 10.4% and 3.3%, respectively, of covered payroll for the year
ended June 30, 2002.
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
$4,523,205 for June 30, 2002 and $4,163,945 for June 30, 2001. Total contributions for the years ended June
30, 2002 and 2001 were $514,549 and $469,357, respectively, which consisted of $375,660 for 2002 and
$334,291 for 2001 from the ABC Board and $139,189 for 2002 and $135,066 for 2001 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 8.3% and 3.1%, respectively, for 2002 and 8%
and 3.2%, respectively, for 2001.
(d) Register of Deeds Supplemental Pension Fund
The County also contributes to the Registers of Deeds’ Supplemental Pension Fund (Fund), a noncontributory,
defined contribution plan administered by the North Carolina Department of State Treasurer. The Fund
provides supplemental pension benefits to any county register of deeds who is retired under the Local
Governmental Employees’ Retirement System or an equivalent locally sponsored plan. Article 3 of N.C.G.S.
Chapter 161 assigns the authority to establish and amend benefit provisions to the North Carolina General
Assembly.
On a monthly basis, the County remits to the Department of State Treasurer an amount equal to 4.5% of the
monthly receipts collected pursuant to Article 1 of N.C.G.S. 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, 2002, the County’s required and actual contributions were $203,470.
MECKLENBURG COUNTY, NORTH CAROLINA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2002
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, 2002, the County's expense for
this benefit was $1,157,059 and the number of retirees taking advantage of this benefit was 558. The cost of
benefits for the Library recognized as an expenditure for the fiscal year ended June 30, 2002 was $74,699 for
the 29 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 has 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 multiple-employer, Stateadministered, 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. The County has no 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, 2002, the County made contributions to the State for death benefits of $153,089. The County's
required contributions for covered employees represented .14% of covered payroll for law enforcement officers
and .09% of covered payroll for employees not engaged in law enforcement.
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
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.
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,
2002, 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
MECKLENBURG COUNTY, NORTH CAROLINA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2002
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 $275,000
are insured. Police Professional Liability exposures over $1,000,000 are insured up to $4,000,000. 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:
2002
2001
Accounts payable and accrued liabilities - beginning of fiscal year
Additions
Payments
$11,312,598)
2,111,731)
(1,113,800)
$10,400,993)
2,530,018)
(1,618,413)
Accounts payable and accrued liabilities - end of fiscal year
$12,310,529)
$11,312,598)
The Library acquires its risk management services through the City of Charlotte's Risk Management Division.
The Library has commercial general liability and auto insurance 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 $4,155,659, 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 $275,000 are insured. There have been no significant reductions in coverage or
claims exceeding coverage over the past three years.
The ABC Board is exposed to various risks of loss related to torts; theft of, damage to, and destruction of
assets; errors and omissions; injuries to employees; and natural disasters. The ABC Board has property,
general liability, auto liability, workers’ compensation, and employee health coverage. The ABC Board also has
liquor legal liability, public official liability and law enforcement 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 $35,000 per employee per year with any amounts above this
maximum covered by a stop loss insurance policy.
15.
Closure and Postclosure Care Costs – U.S.521 Landfill
State and federal laws require the County to place a final cover on its U.S.521 Landfill Facility when it stops
accepting waste and to perform certain maintenance and monitoring functions at the site for 25 years after
closure. Although closure and postclosure care costs will only be paid near or after the date the landfill stops
accepting waste, the County reports a portion of these costs as an operating expense each fiscal year based
on the landfill capacity used as of the balance sheet date. The accrued landfill development and postclosure
care costs totals $1,135,709 and has two components. The cumulative amount reported, based on the use of
18% of the total estimated capacity of the landfill, for closure and postclosure care costs is $1,015,444. The
County will recognize the remaining estimated cost of closure and postclosure care of $5.7 million as the
remaining estimated capacity is filled. This amount is based on the current costs to perform closure and
postclosure care in 2002. 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.
MECKLENBURG COUNTY, NORTH CAROLINA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2002
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, 2002 is $120,264. The County will recognize the remaining estimated cost of future use development
of $1,793,027 million as the remaining capacity is filled. These funds are held in investments with a cost of
$120,264 (market value, $120,264) 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, 2002, 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 $49,980,946 at June 30, 2002, 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 practices, are not in litigation and
there have been no class action threats. Although the outcome of the above claims and the ultimate
amount of compensation or penalties which might be awarded are not presently determinable, in the
opinion of County management and the County Attorney, the results of the claims and resolution of legal
actions will not have a materially adverse impact on the financial position of the County.
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 $119,966 to COG during fiscal year
2002.
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 $14,240,054 for operations and $10,580,629 for capital purposes
during fiscal year 2002, and made debt service payments of $8,296,975 in fiscal year 2002 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
MECKLENBURG COUNTY, NORTH CAROLINA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2002
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 appropriate to support the activities of the Commission. The County provided $18,513 to the
Commission in fiscal year 2002. 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, 2002. 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 $23,330 to the Commission in fiscal year 2002. 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,
2002. 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 $19,690 to the Commission in fiscal year 2002. 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, 2002. Complete financial statements for the Commission may be obtained
from the following address:
Mountain Island Marine Commission
P.O. Box 35008
Charlotte, NC 28235
19.
Conduit Debt Obligation
In February 1996, 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 $15,900,000 at
June 30, 2002 are not reported as liabilities in the accompanying financial statements.
In December 2001, Mecklenburg 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, 2002 are not reported as
liabilities in the accompanying financial statements.
MECKLENBURG COUNTY, NORTH CAROLINA
NOTES TO THE BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2002
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 facilities for the purpose of providing
employment or increasing below-average manufacturing wages. Any financing that occurs is an obligation of
the corporation, not an obligation of either the County or this Authority. Companies pay application fees which
provide operating funds for the Authority.
21.
Subsequent Event
The County issued general obligation bonds on July 16, 2002. Proceeds from the $14,400,000 Public
Improvement Bonds, Series 2002A, will be used for parking facilities. Proceeds from the $139,000,000 Public
Improvement Bonds, Series 2002B, will be used for the following: $60,000,000 for school facilities, $8,000,000
for community college facilities, $3,000,000 for court facilities, $60,000,000 for land purchases, and $8,000,000
for park and recreation facilities. The interest rates on the bonds were 3.949% and 4.207%, respectively. The
County also issued $25,000,000 of variable rate bonds to be used for school facilities. All the bonds issued will
mature between 2004 and 2020.
MECKLENBURG COUNTY, NORTH CAROLINA
SEPARATION ALLOWANCE FOR LAW ENFORCEMENT OFFICERS
REQUIRED SUPPLEMENTARY INFORMATION
ANALYSIS OF FUNDING PROGRESS
LAST TEN FISCAL YEARS
Actuarial
Accrued
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)
-
$ 3,867,434
$3,867,434
$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
1992
-
2,320,490
2,320,490
0.00
14,936,987
15.54
2001
$
0.00 %
UAAL as a
% of Covered
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
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%.
12/31/2001
Projected unit credit
Level percent of pay closed
29 years
Market value
7.25%
5.9% - 9.8%
None
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
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.
MECKLENBURG COUNTY, NORTH CAROLINA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2002
Special
Total Nonmajor
Revenue
Capital Projects
Governmental
Funds
Funds
Funds
ASSETS
Cash and investments
$ 17,803,347
Accrued interest receivable
70,714
Accounts receivable
Less allowance for uncollectable taxes
Advances to other governmental agencies
Due from other funds
64,153,563
$
-
9,735,875
Taxes receivable
TOTAL ASSETS
$
81,956,910
70,714
3,766,418
13,502,293
450,988
-
450,988
(134,000)
-
(134,000)
3,210
611,687
614,897
2,456,800
19,381,980
21,838,780
$ 118,300,582
$ 30,386,934
$
87,913,648
$
$
5,704,767
LIABILITIES AND FUND BALANCES
Liabilities
Accounts payable and other accrued liabilities
Due to other funds
Deferred revenue
Total Liabilities
1,699,319
-
8,752,601
$
7,404,086
8,752,601
323,444
89,133
412,577
2,022,763
14,546,501
16,569,264
Fund Balances
Reserved for encumbrances
Reserved by state statute
2,731,483
11,331,434
14,062,917
12,266,599
23,760,085
36,026,684
10,773,241
56,833,331
67,606,572
Unreserved:
Designated for capital projects
Designated for land use and environmental services
Designated for detention and court support services
Undesignated
Total Fund Balances
TOTAL LIABILITIES AND FUND BALANCES
500,231
-
337,442
-
1,755,175
(18,557,703)
28,364,171
$ 30,386,934
$
500,231
337,442
(16,802,528)
73,367,147
101,731,318
87,913,648
$ 118,300,582
MECKLENBURG COUNTY, NORTH CAROLINA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2002
Special
Total Nonmajor
Revenue
Capital Projects
Governmental
Funds
Funds
Funds
REVENUES
General property tax - current
$
1,931,563
Law Enforcement Service District taxes
10,667,516
Transit one-half cent sales tax
27,726,072
$
-
27,726,072
4,393,143
Charges for services
7,451,698
-
389,281
-
Other
Total Revenues
1,931,563
10,667,516
Intergovernmental
Interest earned on investments
$
18,604,268
22,997,411
7,451,698
389,281
1,380,605
44,975
1,425,580
53,939,878
18,649,243
72,589,121
EXPENDITURES
Land Use & Environmental Services
11,751,779
-
Detention & Court Support Services
218,764
-
218,764
39,762,427
-
39,762,427
Business Partners
Capital Outlay
Total Expenditures
REVENUES UNDER EXPENDITURES
11,751,779
7,683,463
274,754,059
282,437,522
59,416,433
274,754,059
334,170,492
(5,476,555)
(256,104,816)
(261,581,371)
56,000,000
56,000,000
29,000,000
29,000,000
OTHER FINANCING SOURCES
Proceeds from bond sales
-
Proceeds from certificates of participation
Operating transfers from the General Fund
Total Other Financing Sources
NET CHANGE IN FUND BALANCE
FUND BALANCES - BEGINNING OF FISCAL YEAR
FUND BALANCES - END OF FISCAL YEAR
7,452,795
-
7,452,795
7,452,795
29,000,000
92,452,795
1,976,240
(227,104,816)
(169,128,576)
26,387,931
244,471,963
270,859,894
17,367,147
$ 101,731,318
$ 28,364,171
$
MECKLENBURG COUNTY, NORTH CAROLINA
COMBINING BALANCE SHEET
SPECIAL REVENUE FUNDS
JUNE 30, 2002
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
$
$
Total
Sheriff
Register
Special
of Deeds
Revenue Funds
ASSETS
Cash and investments
$ 10,436,782
Accrued interest receivable
Accounts receivable
Taxes receivable
Less allowance for uncollectible taxes
Due from other funds
Advance to other governmental agencies
TOTAL ASSETS
3,829,897
34
42,773
2,364
2,465,657
263,666
$
2,677
-
$
-
-
2,385,447
$
24,699
7,258,613
50,860
$
531
134,754
$
-
-
-
8,827
384,251
-
450,988
-
-
-
-
-
-
-
(134,000)
-
-
-
-
-
2,456,800
-
-
-
-
-
-
-
3,210
-
-
-
-
-
-
-
$
6,338,327
$
$
$
146,808
$
583,331
$
7,258,613
$
2,410,146
$
317,690
$
-
414
-
$ 12,899,190
$
-
17,803,347
70,714
9,735,875
450,988
(134,000)
2,456,800
3,210
51,391
$
143,581
$
384,665
$
317,690
$
30,386,934
-
$
1,234
$
21,550
$
-
$
1,699,319
LIABILITIES AND FUND BALANCES
Liabilities
Accounts payable and accrued liabilities
1,529,727
Deferred revenue - taxes
-
-
Deferred revenue - other
2,343
-
Total Liabilities
-
$
321,101
-
1,532,070
146,808
321,101
516,918
2,187,467
-
2,462,408
2,508,430
2,677
-
$
-
$
-
-
-
-
-
-
-
-
-
-
-
-
-
1,234
21,550
1,839
25,259
8,827
414
321,101
2,343
-
2,022,763
-
12,266,599
Fund Balances
Reserved for encumbrances
Reserved by State Statute
7,258,613
24,699
531
-
2,731,483
Unreserved:
Designated for capital projects
8,387,794
-
-
-
2,385,447
-
-
-
-
-
-
50,860
-
-
-
-
-
-
-
-
-
-
-
-
317,690
10,773,241
Designated for land use and
environmental services
-
131,681
500,231
Designated for detention and
court support services
Undesignated
Total Fund Balances
-
-
11,367,120
1,495,622
259,553
6,191,519
262,230
7,258,613
2,410,146
51,391
-
337,442
-
142,347
337,442
-
363,115
1,755,175
317,690
28,364,171
TOTAL LIABILITIES AND
FUND BALANCES
$ 12,899,190
$
6,338,327
$
583,331
$
7,258,613
$
2,410,146
$
51,391
$
143,581
$
384,665
$
317,690
$
30,386,934
MECKLENBURG COUNTY, NORTH CAROLINA
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUNDS
FOR THE YEAR ENDED JUNE 30, 2002
Law
Transit
Additional
Capital
Storm Water
Enforcement
One-Half Cent
One-Half Cent
Scrap Tire
Discarded
Total
Reserve
Management
Service District
Sales Tax
Sales Tax
Disposal
White Goods
Sheriff
Register
Special
of Deeds
Revenue Funds
REVENUES
General property taxes-current
$
1,931,563
Law Enforcement Service District taxes
-
Transit one-half cent sales tax
-
Intergovernmental
-
Charges for services
Interest earned on investments
Other
Total Revenues
$
-
$
-
$
$
-
$
-
27,726,072
215,142
7,316,100
-
-
3,482,290
135,598
10,667,516
-
-
-
-
-
-
-
-
$
-
$
1,931,563
-
10,667,516
-
-
-
-
27,726,072
-
-
-
4,393,143
-
-
-
-
7,451,698
-
-
-
695,711
17,006
-
126,250
4,926
59,221
327,710
-
-
23,750
-
2,126,382
11,367,199
150,000
$
-
241,099
27,726,072
-
-
10,899,664
$
-
329,270
322,964
700,637
329,270
322,964
810,349
244,911
$
389,281
317,690
1,380,605
317,690
53,939,878
EXPENDITURES
Land Use and Environmental Services
-
Detention and Court Support Services
-
-
Business Partners
-
-
Capital Outlay
Total Expenditures
REVENUES OVER (UNDER) EXPENDITURES
10,696,519
7,683,463
-
-
-
-
-
-
-
-
28,089,715
-
10,696,519
(5,557,081)
-
11,672,712
-
7,683,463
-
-
11,672,712
670,680
-
28,089,715
(773,048)
-
-
(363,643)
150,000
-
-
218,764
-
11,751,779
-
218,764
-
-
39,762,427
-
-
7,683,463
-
59,416,433
810,349
244,911
218,764
(109,712)
84,359
104,200
317,690
(5,476,555)
OTHER FINANCING SOURCES
Operating transfer from the General Fund
7,452,795
-
-
-
-
-
-
-
-
7,452,795
EXCESS (DEFICIENCY) OF REVENUES
AND OTHER FINANCING SOURCES
OVER (UNDER) EXPENDITURES
FUND BALANCES - BEGINNING OF YEAR
FUND BALANCES -END OF YEAR
1,895,714
670,680
9,471,406
$ 11,367,120
(773,048)
5,520,839
$
6,191,519
(363,643)
1,035,278
$
262,230
150,000
7,622,256
$
7,258,613
(109,712)
2,260,146
$
2,410,146
84,359
161,103
$
51,391
104,200
57,988
$
142,347
317,690
258,915
$
363,115
$
1,976,240
-
26,387,931
317,690
$ 28,364,171
MECKLENBURG COUNTY, NORTH CAROLINA
COMBINING BALANCE SHEET
CAPITAL PROJECTS FUNDS
JUNE 30, 2002
1986
1989A
1989B
1990
1991B
1993
Public
Public
Public
Public
Public
Public
Improvement
Improvement
Improvement
Improvement
Improvement
Improvement
$
$
$
$
$
$ 1,770,062
ASSETS
Cash and Investments
Accounts receivable
135,523
-
16,126
-
442,981
-
18,842
-
21,570
-
-
Advances to other
governmental agencies
Due from other funds
TOTAL ASSETS
$
135,523
$
-
16,126
$
-
$
442,981
$
-
-
18,842
$
21,570
-
$
$ 1,770,062
LIABILITIES AND
FUND BALANCES (DEFICITS)
Liabilities:
Accounts payable and
accrued liabilities
$
Due to other funds
-
$
-
Deferred revenue
Total Liabilities
-
-
$
-
-
-
$
-
-
-
-
-
-
-
-
-
-
-
-
-
Fund Balances (Deficits):
Reserved for encumbrances
-
-
7,281
12,039
21,280
3,300
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
442,981
$
442,981
$
290
1,766,762
-
-
18,842
21,570
1,770,062
21,570
$ 1,770,062
18,842
$
-
(Continued)
MECKLENBURG COUNTY, NORTH CAROLINA
COMBINING BALANCE SHEET
CAPITAL PROJECTS FUNDS
JUNE 30, 2002
(CONTINUED)
1994
1996A
1998A
1998B
1998C
2000A
Public
Public
Public
Public
Variable
Public
Improvement
Improvement
Improvement
Improvement
Rate
Improvement
$
$
ASSETS
Cash and Investments
Accounts receivable
203,982
92,026
$
5,034,458
-
-
-
-
-
-
-
-
-
$ 3,489,501
$
-
1,974,443
$ 14,574,854
-
-
-
-
Advances to other
governmental agencies
Due from other funds
TOTAL ASSETS
$
203,982
$
92,026
$
5,034,458
$
-
$
200,617
427,411
-
5,792,843
$ 3,916,912
$
7,767,286
$
$
230,846
$ 14,574,854
LIABILITIES AND
FUND BALANCES (DEFICITS)
Liabilities:
Accounts payable and
accrued liabilities
$
-
91,480
Due to other funds
-
-
-
-
-
Deferred revenue
-
-
-
-
-
-
-
4,965
8,620
-
-
Total Liabilities
200,617
91,480
1,550,114
641,337
230,846
$
87,700
87,700
Fund Balances (Deficits):
Reserved for encumbrances
Reserved by State statute
-
-
427,411
5,792,843
2,756,684
1,743,597
1,036,245
-
Unreserved:
Designated
199,017
Undesignated
83,406
-
Total Fund Balances (Deficits)
3,283,727
-
203,982
-
92,026
-
4,833,841
3,825,432
5,034,458
$ 3,916,912
-
13,450,909
-
7,536,440
14,487,154
7,767,286
$ 14,574,854
TOTAL LIABILITIES AND
FUND BALANCES (DEFICITS)
$
203,982
$
92,026
$
$
(Continued)
MECKLENBURG COUNTY, NORTH CAROLINA
COMBINING BALANCE SHEET
CAPITAL PROJECTS FUNDS
JUNE 30, 2002
(CONTINUED)
2000B
2000C
2000D
2000E
2001A
Public
Variable
Public
Variable
Public
2001D
Public
Improvement
Rate
Improvement
Rate
Improvement
Improvement
$ 155,912
$ 1,088,398
$ 309,770
$ 6,750,002
$ 1,523,750
ASSETS
Cash and Investments
Accounts receivable
-
$
-
4,698,358
-
-
-
-
-
-
62,599
-
Advances to other
governmental agencies
-
Due from other funds
TOTAL ASSETS
121,677
-
-
12,984,493
604,644
-
$ 155,912
$ 1,210,075
$ 17,682,851
$ 309,770
$ 7,417,245
$ 1,523,750
$
$
$
$
$
$
LIABILITIES AND
FUND BALANCES (DEFICITS)
Liabilities:
Accounts payable and
accrued liabilities
90,149
69,338
6,472
-
-
163,672
Due to other funds
-
-
-
-
-
Deferred revenue
-
-
-
-
-
90,149
69,338
6,472
-
-
163,672
-
1,206,021
Total Liabilities
-
Fund Balances (Deficits):
Reserved for encumbrances
Reserved by State statute
64,360
-
-
916,001
304,377
121,677
12,984,493
-
1,019,060
3,775,885
5,393
667,243
-
Unreserved:
Designated
Undesignated
Total Fund Balances (Deficits)
1,403
-
-
-
-
6,750,002
-
154,057
-
65,763
1,140,737
17,676,379
309,770
7,417,245
1,360,078
$ 155,912
$ 1,210,075
$ 17,682,851
$ 309,770
$ 7,417,245
$ 1,523,750
TOTAL LIABILITIES AND
FUND BALANCES (DEFICITS)
(Continued)
MECKLENBURG COUNTY, NORTH CAROLINA
COMBINING BALANCE SHEET
CAPITAL PROJECTS FUNDS
JUNE 30, 2002
(CONCLUDED)
2002C
2003A
Other
Total
Variable
Public
Certificates of
Capital
Capital
Rate
Improvement
Participation
Funding
Projects
ASSETS
Cash and Investments
$
Accounts receivable
-
$
-
-
$ 21,700,254
-
-
$
152,751
$
3,766,418
64,153,563
3,766,418
Advances to other
governmental agencies
Due from other funds
TOTAL ASSETS
$
-
-
-
-
-
-
-
-
611,687
19,381,980
$
-
$ 21,700,254
$ 3,919,169
$
$
-
$
$ 2,351,856
$
87,913,648
LIABILITIES AND
FUND BALANCES (DEFICITS)
Liabilities:
Accounts payable and
accrued liabilities
$
Due to other funds
2,202,117
5,792,843
Deferred revenue
-
-
Total Liabilities
-
7,994,960
-
210,520
210,520
2,959,758
5,704,767
8,752,601
89,133
89,133
5,400,747
14,546,501
Fund Balances (Deficits):
Reserved for encumbrances
-
Reserved by State statute
-
5,000,000
-
240,747
-
314,747
11,331,434
3,766,418
23,760,085
Unreserved:
Designated
-
Undesignated
-
(7,994,960)
Total Fund Balances (Deficits)
(5,000,000)
(7,994,960)
21,248,987
-
-
21,489,734
-
$ 21,700,254
-
56,833,331
(5,562,743)
(18,557,703)
(1,481,578)
73,367,147
TOTAL LIABILITIES AND
FUND BALANCES (DEFICITS)
$
-
$
$ 3,919,169
$
87,913,648
MECKLENBURG COUNTY, NORTH CAROLINA
CAPITAL PROJECTS FUNDS
COMBINING SCHEDULE OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2002
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
37,323,492
135,523
16,126
476,508
Fund Balance - 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
83,335,259
52,839,224
16,564,374
196,010,999
48,741
160,776
1,835,626
204,001
83,384,000
Improvement
$
REVENUES
Intergovernmental
Federal
-
-
-
-
-
-
-
State
-
-
-
-
-
-
-
Local
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
County Buildings
-
-
-
-
-
65,564
-
Land
-
-
-
-
-
-
-
Other
Total Revenues
EXPENDITURES
Management Services
Land Use & Environmental Services
Community Development
-
-
22,365
-
-
-
-
Clean Water Management
-
-
-
-
-
-
-
Historic Preservation
-
-
-
-
-
-
-
Community Services
Park and Recreational Facilities
-
-
11,162
29,899
Library Facilities
-
-
-
-
139,206
-
-
-
-
19
-
-
-
-
-
-
-
Detention & Court Support Services
Jail/Detention Facilities
Business Partners
Community College Facilities
-
-
-
-
-
-
-
School Facilities
-
-
-
-
-
-
-
-
-
33,527
29,899
139,206
65,564
19
-
-
(33,527)
(29,899)
(139,206)
(65,564)
(19)
Total Expenditures
REVENUES OVER (UNDER)
EXPENDITURES
OTHER FINANCING SOURCES
Proceeds from bond sales
-
-
-
-
-
-
-
Proceeds from certificates of participation
-
-
-
-
-
-
-
Total Other Financing Sources
-
-
-
-
-
-
-
FUND BALANCE (DEFICIT) END OF YEAR
$
135,523
$
16,126
$
442,981
$
18,842
$
21,570
$
1,770,062
$
203,982
(Continued)
MECKLENBURG COUNTY, NORTH CAROLINA
CAPITAL PROJECTS FUNDS
COMBINING SCHEDULE OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2002
(CONTINUED)
1996A
1996B
1998A
1998B
1998C
2000A
2000B
Public
Public
Public
Public
Variable
Public
Public
Improvement
Project Authorization
$
22,000,000
Improvement
$
Improvement
225,895,000
$ 31,000,000
Improvement
$
257,050,000
Rate
$
Improvement
50,000,000
$
34,000,000
Improvement
$
20,000,000
Prior Years' Revenues
22,000,000
225,895,000
31,000,000
257,050,000
50,000,000
34,000,000
20,000,000
Prior Years' Expenditures
21,745,122
225,894,165
19,406,685
249,634,751
39,159,768
15,077,670
17,294,387
254,878
835
11,593,315
7,415,249
10,840,232
18,922,330
2,705,613
Fund Balance - Beginning of Year
REVENUES
Intergovernmental
Federal
-
-
-
-
-
-
-
State
-
-
-
-
-
-
-
Local
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
45,855
-
-
-
-
-
-
-
-
-
-
Community Development
-
-
-
-
-
-
-
Clean Water Management
-
-
-
-
-
-
-
Historic Preservation
-
-
-
-
-
-
24,866
Other
Total Revenues
EXPENDITURES
Management Services
County Buildings
Land
820,698
451,567
-
Land Use & Environmental Services
Community Services
Park and Recreational Facilities
82,667
Library Facilities
-
-
5,938,776
664,779
-
-
3,382,949
-
-
514,030
-
-
86,630
-
-
835
-
34,330
-
-
402,037
Community College Facilities
-
-
-
1,894,032
School Facilities
-
-
-
628,969
3,303,792
Detention & Court Support Services
Jail/Detention Facilities
2,614,984
Business Partners
Total Expenditures
-
-
-
162,852
835
6,759,474
3,589,817
3,303,792
4,435,176
2,639,850
(162,852)
(835)
(6,759,474)
(3,589,817)
(3,303,792)
(4,435,176)
(2,639,850)
REVENUES OVER (UNDER)
EXPENDITURES
OTHER FINANCING SOURCES
Proceeds from bond sales
-
-
-
-
-
-
-
Proceeds from certificates of participation
-
-
-
-
-
-
-
Total Other Financing Sources
-
-
-
-
-
-
-
FUND BALANCE (DEFICIT) END OF YEAR
$
92,026
$
-
$
4,833,841
$
3,825,432
$
7,536,440
$
14,487,154
$
65,763
(Continued)
MECKLENBURG COUNTY, NORTH CAROLINA
CAPITAL PROJECTS FUNDS
COMBINING SCHEDULE OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2002
(CONTINUED)
Project Authorization
$
2000C
2000D
2000E
2001A
2001B
Variable
Public
Variable
Public
Variable
Public
Rate
Improvement
Rate
Improvement
Rate
Improvement
50,000,000
$ 105,000,000
Prior Years' Revenues
50,000,000
100,000,000
50,000,000
105,000,000
25,000,000
-
Prior Years' Expenditures
43,802,308
55,693,599
48,633,564
585,632
236,276
-
6,197,692
44,306,401
1,366,436
104,414,368
24,763,724
-
Fund Balance - Beginning of Year
50,000,000
$
100,000,000
$
$
2001D
25,000,000
$
56,000,000
REVENUES
Intergovernmental
Federal
-
-
-
-
-
-
State
-
-
-
-
-
-
Local
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Other
Total Revenues
EXPENDITURES
Management Services
County Buildings
-
-
-
-
Land
-
1,074,248
-
-
-
-
-
Community Development
-
-
-
-
-
-
Clean Water Management
-
-
-
-
-
-
Historic Preservation
-
67,229
-
-
-
-
965,612
49,963,832
Land Use & Environmental Services
1,056,666
Community Services
Park and Recreational Facilities
Library Facilities
-
-
-
1,807,586
-
-
-
-
4,676,090
-
3,249,369
-
-
-
-
-
-
-
Detention & Court Support Services
Jail/Detention Facilities
Business Partners
Community College Facilities
-
7,101,974
-
1,234,623
School Facilities
-
17,420,959
-
95,762,500
24,763,724
Total Expenditures
-
5,056,955
26,630,022
1,056,666
96,997,123
24,763,724
54,639,922
(5,056,955)
(26,630,022)
(1,056,666)
(96,997,123)
(24,763,724)
(54,639,922)
REVENUES OVER (UNDER)
EXPENDITURES
OTHER FINANCING SOURCES
Proceeds from bond sales
-
-
-
-
-
Proceeds from certificates of participation
-
-
-
-
-
Total Other Financing Sources
-
-
-
-
-
56,000,000
56,000,000
FUND BALANCE (DEFICIT) END OF YEAR
$
1,140,737
$
17,676,379
$
309,770
$
7,417,245
$
-
$
1,360,078
(Continued)
MECKLENBURG COUNTY, NORTH CAROLINA
CAPITAL PROJECTS FUNDS
COMBINING SCHEDULE OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2002
(CONCLUDED)
2002A
2002C
2003A
School
Other
Total
Public
Variable
Public
Certificates of
Capital
Capital
Improvement
Project Authorization
$ 14,400,000
Rate
$
Improvement
25,000,000
$
5,000,000
Participation
$
Funding
Funds
50,000,000
$ 78,857,764
$ 1,634,201,764
Prior Years' Revenues
-
-
-
25,000,000
96,472,085
1,526,416,085
Prior Years' Expenditures
-
-
-
19,186,924
93,471,572
1,281,944,122
Fund Balance - Beginning of Year
-
-
-
5,813,076
3,000,513
244,471,963
REVENUES
Intergovernmental
Federal
-
-
-
-
537,606
537,606
State
-
-
-
-
18,005,139
18,005,139
Local
-
-
-
-
61,523
61,523
-
-
-
-
44,975
44,975
-
-
-
-
18,649,243
18,649,243
County Buildings
-
-
-
-
198
Land
-
-
-
-
-
Other
Total Revenues
EXPENDITURES
Management Services
2,458,130
49,963,832
Land Use & Environmental Services
Community Development
-
-
-
-
67,157
89,522
Clean Water Management
-
-
-
-
344,693
344,693
Historic Preservation
-
-
-
-
9,142
1,157,903
Park and Recreational Facilities
-
-
-
142,858
16,388,040
Library Facilities
-
-
-
-
-
-
-
-
-
-
Community Services
354,023
-
2,322,451
Detention & Court Support Services
Jail/Detention Facilities
2,853,161
9,240,511
Business Partners
Community College Facilities
-
School Facilities
-
7,994,960
-
12,969,319
19,714,125
182,558,348
-
7,994,960
-
13,323,342
23,131,334
274,754,059
-
(7,994,960)
-
(13,323,342)
(4,482,091)
(256,104,816)
Total Expenditures
-
-
10,230,629
REVENUES OVER (UNDER)
EXPENDITURES
OTHER FINANCING SOURCES
Proceeds from bond sales
-
-
-
-
56,000,000
Proceeds from certificates of participation
-
-
-
29,000,000
-
-
29,000,000
Total Other Financing Sources
-
-
-
29,000,000
-
85,000,000
FUND BALANCE (DEFICIT) END OF YEAR
$
-
$
(7,994,960)
$
-
$
21,489,734
$ (1,481,578)
$
73,367,147
MECKLENBURG COUNTY, NORTH CAROLINA
COMBINING STATEMENT OF NET ASSETS
AGENCY FIDUCIARY FUNDS
JUNE 30, 2002
Municipalities'
Taxes
Employees'
Insurance
Fee Collection
for State
Food and
Beverage
Tax
Other
Total
$ 2,163,901
2,163,901
$ 3,111,748
3,111,748
$ 1,436,845
1,436,845
$ 27,718
27,718
$ 380,207
733
380,940
$ 7,120,419
733
7,121,152
2,163,901
2,163,901
3,111,748
3,111,748
1,436,845
1,436,845
27,718
27,718
380,940
380,940
3,520,406
3,600,746
7,121,152
ASSETS
Cash and investments
Accounts receivable
TOTAL ASSETS
LIABILITIES
Accounts payable and accrued liabilities
Due to other governmental agencies
TOTAL LIABILITIES
NET ASSETS
Net Assets
$
-
$
-
$
-
$
-
$
-
$
-
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, 2002
Project
Actual
Authorization
Prior Year
Variance
Current Year
Total to Date
Favorable
REVENUES
Community Development Block Grant
Block Grant #98-C-0457
Grant Proceeds
$
Mecklenburg County
Total Revenues
400,000
-
$ 400,000
26,770
$
400,000
-
$
26,770
26,770
$
-
426,770
400,000
26,770
426,770
-
422,770
396,000
26,770
422,770
-
4,000
4,000
-
4,000
-
426,770
400,000
26,770
426,770
-
EXPENDITURES
Relocation
Administration
Total Expenditures
REVENUES OVER EXPENDITURES
$
-
$
-
$
-
$
132,000
$
65,334
$
$
-
$
-
66,666
$ 132,000
$
-
65,334
66,666
132,000
-
-
REVENUES
City-County Low Income Housing
EXPENDITURES
Constructions
REVENUES OVER EXPENDITURES
132,000
$
-
$
FUND BALANCE -BEGINNING OF FISCAL YEAR
FUND BALANCE -END OF FISCAL YEAR
$
-
$
-
$
-
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, 2002
Budget
Actual
REVENUES
General property tax - current
$ 1,931,563
Charges for services
-
Other
Total Revenues
$
1,931,563
135,598
9,700
59,221
1,941,263
2,126,382
EXPENDITURES
Capital outlay
9,376,990
7,683,463
Total Expenditures
9,376,990
7,683,463
REVENUES UNDER EXPENDITURES
(7,435,727)
(5,557,081)
7,018,659
7,452,795
OTHER FINANCING SOURCES
Operating transfer from General Fund
Appropriated fund balance
417,068
Total Other Financing Sources
7,435,727
7,452,795
EXCESS OF REVENUES AND OTHER
FINANCING SOURCES OVER EXPENDITURES
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
$
-
1,895,714
9,471,406
$ 11,367,120
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, 2002
Budget
Actual
REVENUES
Intergovernmental
Federal
4,118,339
$ 3,215,207
State
$
1,163,006
265,683
Local
215,381
1,400
7,011,972
7,316,100
Charges for services
Interest earned on investments
-
Other
Total Revenues
241,099
860,307
327,710
13,369,005
11,367,199
13,662,336
8,649,126
1,354,848
1,354,848
EXPENDITURES
Land Use and Environmental Services
Storm Water Services
Debt Service
Principal retirement - bonds
Interest
Total Expenditures
692,545
692,545
15,709,729
10,696,519
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
(2,340,724)
670,680
OTHER FINANCING SOURCES:
Appropriated fund balance
2,340,724
-
EXCESS OF REVENUES AND OTHER
FINANCING SOURCES OVER EXPENDITURES
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
$
-
670,680
5,520,839
$ 6,191,519
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, 2002
Budget
Actual
$ 10,584,084
$ 10,667,516
227,049
215,142
REVENUES
Law Enforcement Service District taxes
Intergovernmental - State
Interest earned on investments
Total Revenues
20,000
17,006
10,831,133
10,899,664
EXPENDITURES
Business Partners:
Law Enforcement Services
Total Expenditures
REVENUES UNDER EXPENDITURES
11,672,712
11,672,712
11,672,712
11,672,712
(841,579)
(773,048)
OTHER FINANCING SOURCES
Appropriated fund balance
Total Other Financing Sources
841,579
-
841,579
-
DEFICIENCY OF REVENUES AND OTHER
FINANCING SOURCES UNDER EXPENDITURES
$
-
(773,048)
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
1,035,278
$
262,230
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
TRANSIT ONE-HALF CENT SALES TAX SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 30, 2002
Budget
Actual
$ 30,028,299
$ 27,726,072
30,028,299
28,089,715
REVENUES
Transit one-half cent sales tax
EXPENDITURES
Business Partners
DEFICIENCY OF REVENUES UNDER
EXPENDITURES
$
-
(363,643)
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
7,622,256
$
7,258,613
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, 2002
Actual
Project
Prior
Current
Total
Authorization
Years'
Year
to Date
$ 2,842,095
$ 2,842,095
500,785
1,844,702
126,250
29,930
23,750
53,680
3,342,880
4,716,727
150,000
4,866,727
1,962,131
1,075,832
1,380,749
3,640,895
(1,380,749)
(1,380,749)
REVENUES
Additional one-half cent sales tax
Interest earned on investments
Other
Total Revenues
$
-
$
2,842,095
1,970,952
EXPENDITURES
Capital outlay
REVENUES OVER EXPENDITURES
-
1,075,832
150,000
3,790,895
OTHER FINANCING USES
Operating transfer to other funds
-
(1,380,749)
EXCESS OF REVENUES OVER EXPENDITURES
AND OTHER FINANCING USES
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE -END OF YEAR
$
-
$ 2,260,146
150,000
2,260,146
$ 2,410,146
$
2,410,146
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, 2002
Budget
Actual
$ 695,711
$ 695,711
REVENUES
Intergovernmental - State
Interest earned on investment
Total Revenues
4,394
4,926
700,105
700,637
837,283
810,349
(137,178)
(109,712)
EXPENDITURES
Land Use and Environmental Services
REVENUES UNDER EXPENDITURES
OTHER FINANCING SOURCES
Appropriated fund balance
137,178
-
DEFICIENCY OF REVENUES AND OTHER
FINANCING SOURCES UNDER EXPENDITURES
$
-
(109,712)
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
161,103
$
51,391
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, 2002
Budget
Actual
$ 329,270
$ 329,270
387,257
244,911
(57,987)
84,359
57,987
-
-
84,359
REVENUES
Other
EXPENDITURES
Land Use and Environmental Services
REVENUES OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES
Appropriated fund balance
EXCESS OF REVENUES AND OTHER
FINANCING SOURCES OVER EXPENDITURES
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
$
57,988
$ 142,347
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, 2002
Budget
Actual
REVENUES
Licenses and Permits
$ 77,747
Other
Total Revenues
EXPENDITURES
Detention and Court Support Services
REVENUES OVER (UNDER) EXPENDITURES
$
77,746
245,217
245,218
322,964
322,964
581,878
218,764
(258,914)
104,200
OTHER FINANCING SOURCES
Appropriated fund balance
258,914
-
EXCESS OF REVENUES AND OTHER
FINANCING SOURCES OVER EXPENDITURES
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
$
-
104,200
258,915
$ 363,115
MECKLENBURG COUNTY, NORTH CAROLINA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL - REGISTER OF DEEDS SPECIAL REVENUE FUND
FROM INCEPTION TO JUNE 30, 2002
Budget
Actual
$ 317,689
$ 317,690
317,689
-
REVENUES
Charges for services
EXPENDITURES
Land Use and Environmental Services:
Capital outlay
REVENUES OVER EXPENDITURES
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
$
-
317,690
$ 317,690
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, 2002
Budget
Actual
Operating Revenues
Charges for services
$
Recycling sales
7,037,390
$
4,157,932
Other
1,641,379
-
Total Operating Revenues
7,678,782
7,998
11,195,322
9,328,159
3,090,759
2,896,345
Operating Expenses
Personal services and employee benefits
Utilities
158,850
79,070
Supplies
385,040
427,452
Maintenance and repairs
425,153
365,745
Rental and occupancy charges
Contractual services
Final development and postclosure costs
133,574
124,395
2,121,807
3,181,259
-
Total Operating Expenses
Operating Income
134,627
6,315,183
7,208,893
4,880,139
2,119,266
Non-operating Revenues (Expenses)
Interest Income
160,000
525,232
Interest expense
(836,679)
(827,864)
(1,300,000)
(685,683)
Transfer to landfill reserve fund
Capital outlay
Total Non-operating Revenues (Expenses)
Net income - Modified accrual basis
$
(468,997)
(63,711)
(2,445,676)
(1,052,026)
2,434,463
1,067,240
Reconciliation to full accrual basis
Depreciation
(929,769)
Capital outlay
63,711
Transfer to landfill reserve fund
685,683
Loss on sale of capital assets
(4,363)
Amortization of refunding amount
(100,325)
Other
Net Income - Full Accrual Basis
191,166
$
973,343
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, 2002
Project
Authorization
REVENUES
Interest earned on investments
$ 583,910
Prior
Years'
Total to
Date
604,880
$ 120,571
1,739,673
2,173,910
3,913,583
1,653,494
1,653,494
486,221
96,008
582,229
486,221
1,749,502
2,235,723
REVENUES UNDER EXPENDITURES
(3,329,673)
(1,048,614)
(461,658)
(1,510,272)
OTHER FINANCING SOURCES
Operating transfers from landfill fund
3,329,673
2,643,990
685,683
3,329,673
$ 1,595,376
$ 224,025
$ 1,819,401
EXPENDITURES
Landfill construction
Final development and postclosure costs
Total expenditures
EXCESS OF REVENUES OVER
EXPENDITURES AND OTHER FINANCING
SOURCES
$
-
$
Actual
Current
Year
$
725,451
mecklenburg
statistical
county
2002
The tables in this section provide trends, statistical and demographic
information about the County.
TABLE A
MECKLENBURG COUNTY, NORTH CAROLINA
GOVERNMENT-WIDE EXPENSES BY FUNCTION
Fiscal Year
Customer
Land Use
Satisfaction
and
Health
Detention and
and
Interest on
Ended
Management
Financial
and
Environmental
Community
Court Support
Human
Business
Long-term
Solid Waste
Total
June 30,
Services
Services
Communication
Services
Services
Services
Services
Partners
Debt
Operations
Expenses
2002
$ 42,004,729
$ 16,384,192
$ 42,826,310
$ 31,032,651
$ 82,703,642
$ 270,190,779
$ 554,898,570
$ 55,236,067
$
912,818
$
9,131,738
$ 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
and
Investment
June 30,
Services
Contributions
Contributions
Taxes
Distributions
Earnings
Miscellaneous
Revenues
2002
$ 101,250,093
$ 179,062,472
$ 582,211,378
$ 165,107,904
$ 14,381,221
$ 2,416,925
$ 1,045,209,433
$
779,440
Other Taxes
Total
TABLE 1
MECKLENBURG COUNTY, NORTH CAROLINA
GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION
LAST TEN FISCAL YEARS
Fiscal Year
Ended
June 30,
Management
Services
2002
$41,515,761
Policy
Development
and
Management
Support Services
Financial
Services
Customer
Satisfaction
and
Communications
Land Use
and
Environmental
Services
Community
Services
Detention
and
Court Support
Services
Health
and
Human Services
Business
Partners
Capital
Outlay
Debt
Service
Totals
$6,321,146
$906,866
$50,947,149
$29,274,220
$74,084,024
$269,324,679
$346,405,695
$303,927,878
$ 141,061,309
$1,263,768,727
Corporate
Support Services
Regulatory
and
Operational
Services
Community
Services
Public Safety
and Court
Support Services
Health
and
Human Services
Government
Relations
Capital
Outlay
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
1993
16,281,819
25,365,297
32,209,302
22,369,043
4,390,360
146,422,810
122,141,119
26,830,591
80,290,733
51,755,427
528,056,501
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,
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
Licenses
and
Permits
Taxes and
Assessments
$
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
339,415,288
$
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
6,323,261
Charges
for
Services
Intergovernmental
$
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
75,092,565
Notes:
(1) Includes General, Special Revenue and Capital Projects Funds.
(2) Includes interest earned on investments, administrative charges and other.
$
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
24,312,213
Other (2)
$
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
14,574,839
Totals
$ 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
459,718,166
TABLE 3
MECKLENBURG COUNTY, NORTH CAROLINA
GENERAL FUND TAX REVENUE BY SOURCE
LAST TEN FISCAL YEARS
Fiscal Year
Ended
June 30,
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
General
Property (1)
Total
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
339,415,288
$
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
280,024,373
Sales
$
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
46,964,636
Intangibles(2)
$
1,118,174
12,077,176
11,522,655
Room
Occupancy
$
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
790,242
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.
1,655,111
1,681,005
-
Other
$
72,858
68,679
90,893
38,235
71,537
48,376
35,213
33,066
35,921
113,382
TABLE 4
MECKLENBURG COUNTY, NORTH CAROLINA
PROPERTY TAX LEVIES, TAX COLLECTIONS AND CREDITS
LAST TEN FISCAL YEARS
Fiscal Year
Ended
June 30,
Tax
Year
2002
2001
2001
2000
2000
Total Tax
Levy
$
567,874,819
Current Tax
Collections
$
Percent
of Levy
Collected
551,873,811
97.18%
469,522,916
456,774,995
97.28
1999
440,731,629
429,493,650
1999
1998
392,471,397
1998
1997
1997
Delinquent
Tax
Collections
561,052,704
98.80%
9,178,893
$
8,411,914
465,186,909
97.45
8,173,138
381,520,070
97.21
349,395,228
340,196,430
1996
332,781,981
1996
1995
1995
Outstanding
Delinquent
Taxes
$
Percent of
Delinquent
Taxes to
Tax Levy
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
1994
1993
311,312,041
305,965,766
98.28
3,286,408
309,252,174
99.34
13,925,841
4.47
1993
1992
281,752,163
277,695,755
98.56
3,475,983
281,171,738
99.79
12,314,910
4.37
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.
$
Total Tax
Collections
Percent of
Total Tax
Collections
to Tax Levy
TABLE 5
MECKLENBURG COUNTY, NORTH CAROLINA
TAX REVENUE
FOR THE YEAR ENDED JUNE 30, 2002
Tax
Year
Assessed
Valuation (1)
CountyWide Rate
2001
2002
$67,895,358,854
$ .8397
2000
2001
64,210,268,149
.73
469,522,916
456,774,995
12,747,921
7,143,801
1999
2000
60,401,969,125
.73
440,731,629
435,976,042
4,755,587
1,156,527
1998
1999
57,080,405,642 (3)
.685
392,471,397
390,073,894
2,397,503
402,220
1997
1998
47,876,894,849
.73
349,395,228
348,329,041
1,066,187
183,845
-
882,342
388,133
494,209
1996
1997
45,407,072,470
.73
332,781,981
331,979,897
802,084
99,812
-
702,272
344,479
357,793
1995
1996
41,830,623,848
.8050
336,708,024
336,067,114
640,910
80,805
-
560,105
343,111
216,994
1994
1995
40,860,606,101
.8050
328,591,611
327,264,797
1,326,814
56,574
-
1,270,240
278,075
992,165
1993
1994
38,536,917,481
.8095
311,312,041
310,883,970
428,071
31,364
-
396,707
293,209
103,498
1992
1993
37,083,600,937
.76
281,752,163
280,497,622
1,254,541
-
23,945
1,230,596
626,136
626,136
$ 3,811,141,809
$ 3,217,847,372
$ 25,419,618
$ 561,052,704
$ 2,742,481
$ 2,273,143
$ 28,478,381
Notes:
(1)
(2)
(3)
(4)
Levy
$
567,874,819
Collections and
Credits to
June 30, 2001
Taxes
Receivable
July 1, 2001
$
$
-
-
Collections
and Credits
$ 551,873,811
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.
Writeoffs (2)
Taxes
Receivable
June 30, 2002
$
-
$ 16,001,008
-
Net
Taxes
Receivable
June 30, 2002
Fiscal Year
Ended
June 30,
Less:
Bankruptcies (4)
-
$ 16,001,008
5,604,120
-
5,604,120
791,783
2,807,277
-
2,807,277
720,102
1,275,181
$ 29,499,252
$
1,275,181
TABLE 6
MECKLENBURG COUNTY, NORTH CAROLINA
ANALYSIS OF CURRENT TAX LEVY
JUNE 30, 2002
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
$ 61,211,637,374
$ .8397
$ 513,994,119
3,769,021,505
.8397
31,648,474
-
31,648,474
2,473,720,589
.73
18,058,160
-
18,058,160
67,454,379,468
$ 513,994,119
$
-
563,700,753
513,994,119
3,163,711
1,010,355
3,163,711
1,010,355
-
440,979,386
4,174,066
4,174,066
-
(656,402,618)
(5,431,013)
(4,274,746)
440,979,386
-
Various
49,706,634
(1,156,267)
$ 67,238,956,236
562,443,806
513,893,439
48,550,367
Uncollected taxes at
June 30, 2002
16,001,008
9,336,793
6,664,215
Current year's taxes
collected
$ 546,442,798
$ 504,556,646
$ 41,886,152
Current net levy collection
percentage
97.16%
98.18%
86.27%
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
2002
$ 51,009.3
$ 12,870.0
$ 4,063.4
2001
48,090.1
12,341.0
2000
44,993.6
1999
Less
Elderly
Exemptions
$
Total
Assessed
Valuation (2)
(47.4)
67,895.3
3,828.0
(48.9)
64,210.2
11,735.6
3,723.3
(50.6)
60,401.9
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
1993
28,053.8
5,468.4
3,603.2
(41.8)
37,083.6
Notes:
(1) Assessed valuations are established by the Board of County Commissioners
at 100% of estimated market value for real property and 100% of actual value
for all other property. A revaluation of real property is required by North Carolina General Statutes at least every eight years. 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
2002
$ .8397
2001
Charlotte
Cornelius
Davidson
Huntersville
Matthews
Mint Hill
Pineville
$ .25
$ .21
$ .467
$ .26
$ .335
$ .26
$ .27
.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
1993
.76
.436
.34
.20
.39
.16
.15
.20
(1) Revaluation
Source (other than Mecklenburg County): North Carolina Tax Research Division
TABLE 9
MECKLENBURG COUNTY, NORTH CAROLINA
PROPERTY TAX LEVIES - DIRECT AND OVERLAPPING GOVERNMENTS
LAST TEN FISCAL YEARS
Fiscal Year
Ended
June 30,
2002
Mecklenburg
County
$
567,874,819
Charlotte (2)
$
233,912,755
Cornelius
$
6,055,480
Davidson
$
2,349,932
Huntersville
$
6,484,401
Matthews
$
5,846,635
Mint Hill
$
2,933,058
Pineville
$
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
1993
281,752,163 (1)
110,615,409
1,271,177
497,504
645,118
1,734,293
930,143
996,487
(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, 2002
Public Improvements Refunding Bonds 1986
Public Improvements Refunding Bonds 1992
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
Due
Serially
Average
Interest
Original
Balance
Issue Date
To
Rate
Issue
July 1, 2001
July 1, 1986
March 1, 1992
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
2004
2005
2012
2011
2013
2013
2013
2015
2016
2016
2018
2010
2010
2020
2010
2020
2018
2021
2013
2021
2005
7.1686
5.6017
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
$
102,300,000
164,240,000
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
$ 2,013,445,000
$
2,145,000
45,090,000
185,570,000
13,150,000
7,600,000
17,625,000
180,375,000
50,000,000
27,400,000
226,600,000
50,000,000
30,600,000
18,000,000
50,000,000
100,000,000
50,000,000
105,000,000
25,000,000
149,455,000
-
$ 1,333,610,000
The bonds are recorded as follows:
Governmental activities
Business-type activities
Sold
$
56,000,000
33,595,000
$ 89,595,000
Retired
$
735,000
45,090,000
17,230,000
750,000
3,200,000
1,050,000
10,950,000
1,450,000
12,050,000
3,400,000
2,000,000
6,000,000
4,635,000
3,400,000
$ 111,940,000
Balance
Interest
Paid In
June 30, 2002
Current Year
$
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
$ 1,296,873,163
14,391,837
$ 1,311,265,000
$
133,313
1,630,393
8,605,720
614,050
410,400
854,925
8,750,075
877,739
1,208,150
9,990,350
919,986
1,530,000
900,000
889,384
4,885,000
938,904
4,459,583
469,452
7,424,691
411,438
$ 55,903,553
TABLE 11
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
$
67,895,358,854
Gross
Bonded Debt
2002
746,427
$
1,311,265,000
2001
720,490
64,210,268,149
1,333,610,000
2000
695,454
60,401,969,125
1999
677,051
1998
Payable from
Enterprise
Fund
$
14,391,837
Net Bonded
Debt
$
Percent of
Net Bonded
Debt to
Assessed Value
Net Bonded
Debt Per
Capita
1,296,873,163
1.91 %
$ 1,737
17,061,296
1,316,548,704
2.05
1,827
1,123,385,000
19,334,255
1,104,050,745
1.83
1,588
57,080,405,642
1,080,980,000
21,527,489
1,059,452,511
1.86
1,565
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
1993
566,639
37,083,600,937
458,740,000
54,264,669
404,475,331
1.09
714
TABLE 12
MECKLENBURG COUNTY, NORTH CAROLINA
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
GENERAL OBLIGATION BONDS
FOR THE YEAR ENDED JUNE 30, 2002
Assessed
Valuation (1)
Percent of
Assessed
Valuation to
Countywide
Total
Pro Rata
Share of
Countywide
Debt
Municipalities'
Debt (2)
Total
Overlapping
Debt
$ 975,450,032
$ 881,585,000
$ 1,857,035,032
2,900,000
48,269,769
Mecklenburg County:
Charlotte
$ 50,088,384,347
Cornelius
2,329,030,450
3.46
0.58 45,369,769
Davidson
704,025,458
1.05
0.64 13,768,283
-
13,768,283
Huntersville
2,494,000,332
3.70
0.42 48,516,805
-
48,516,805
Matthews
2,173,468,566
3.23
3.18 42,353,860
6,250,000
48,603,860
Mint Hill
1,173,223,217
1.74
1.63 22,816,011
7,975,000
30,791,011
Pineville
844,517,852
1.25
1.25 16,390,813
490,000
16,880,813
7,521,405,805
11.18
146,599,427
Unincorporated
Areas
Countywide Totals
$67,328,056,027
74.39 %
100.00%
$1,311,265,000
-
$899,200,000
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, 2001, net of releases made by that date.
(2) Provided by Department of State Treasurer.
146,599,427
$2,210,465,000
TABLE 13
MECKLENBURG COUNTY, NORTH CAROLINA
COMPUTATION OF LEGAL DEBT MARGIN
JUNE 30, 2002
Assessed Value
$ 67,895,358,854
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
5,431,628,708
$ 1,311,265,000
717,300,000
2,028,565,000
$ 3,403,063,708
TABLE 14
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
2002
$ 76,781,933
2001
Ratio of Debt
Service to Total
Expenditures
Other
Total Debt
Service
Total
Expenditures (2)
$ 55,746,111
$ 10,580,658
$ 143,108,702
$ 1,263,768,727
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
1993
25,096,521
24,711,261
419,502
50,227,284
528,056,501
9.51
Notes:
(1) General obligation bond debt service reported in the Enterprise Fund has been excluded.
(2) Includes General, Special Revenue, and Capital Projects Funds.
11.32 %
TABLE 15
MECKLENBURG COUNTY, NORTH CAROLINA
SPECIAL ASSESSMENTS BILLINGS AND COLLECTIONS
LAST TEN FISCAL YEARS
Fiscal Year
Ended
June 30,
Special
Assessments
Billings
Special
Assessments
Collected
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
1993
12,828
14,865
TABLE 16
MECKLENBURG COUNTY, NORTH CAROLINA
DEMOGRAPHIC STATISTICS
LAST TEN YEARS
Year
Population
Per Capita
Income
Median
Age
School
Enrollment
2002
746,427
N/A
N/A
106,192
5.9% (1)
2001
720,490
$23,250
N/A
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
1993
566,639
18,692
32.7
79,543
4.3
Note (1)
Monthly average - January through June
Sources:
Charlotte Chamber of Commerce
N.C. Office Of State Planning
Charlotte-Mecklenburg Schools
Unemployment
Rate
TABLE 17
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)
Commercial
Residential
Exempt
$ 28,409.8
$ 39,560.7
$ (48.4)
2002
4,396
$ 825.6
14,780
$ 1,739.5
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)
1993
5,313
392.6
5,109
514.1
7,558,341
17,776.5
19,348.9
(41.8)
Notes: (1) Provided by Chamber of Commerce.
N/A
Assessed Valuation (in millions)
TABLE 18
MECKLENBURG COUNTY, NORTH CAROLINA
PRINCIPAL TAXPAYERS
JUNE 30, 2002
Firm
Enterprise
Assessed
Valuation
$ 2,303,998,735
Percentage
of Total
Assessed
Valuation
Duke Energy
Utility
Bank of America
Financial Services
781,560,194
1.15
Wachovia Corporation
Financial Services
720,987,644
1.06
BellSouth Telecommunications
Utility
604,268,098
0.89
USAirways, Incorporated
Transportation
620,080,260
0.91
Childress Klein
Property Management and Development
275,619,158
0.41
Piedmont Natural Gas Company, Inc.
Utility
363,635,566
0.54
Continental General Tire
Manufacturing
100,443,058
0.15
Carolina Stadium
Football Stadium
176,619,677
0.26
International Business Machines
Computer Technology
139,984,627
0.21
$6,087,197,017
3.39 %
8.96 %
TABLE 19
MECKLENBURG COUNTY, NORTH CAROLINA
MISCELLANEOUS STATISTICS
JUNE 30, 2002
Date of Establishment
Form of Government
Area
Number of Street Lights (1)
Miles of Streets:
City-maintained
State-maintained
Non-maintained
Fire Protection:
Volunteer fire stations
Volunteer firemen
Fire Marshall and Assistants
Police:
Stations
Officers
Patrol Units
Public Education:
Schools
Teachers (full-time)
Students
Building Permits Issued (2)
Recreation and Culture:
Parks and Greenways
Golf Courses
Historic Sites
Libraries
Total volumes
Employees:
Full-time Permanent
Other
Notes:
(1) Includes City of Charlotte only
(2) Calendar Year 2001
1762
County Manager
541 square miles
54,051
2,001
1,010
44
20
620
9
1
1,503
815
144
6,799
106,192
19,174
123
5
4
23
Approximately 1.6 million
4,181
434