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Operating grants and contributions experienced a $1,032,443 or 5.0% increase from FY 11 to FY 12.
<br />This increase was primarily due to additional funding from the federal government for Social Service
<br />Crisis Intervention and Medicaid transportation services.
<br />Capital grants and contributions experienced a net $1,430,325 or 263% increase. During FY 12 Cabarrus
<br />County received $1,713,555 of Lottery Proceeds for the payment of debt service for School Construction.
<br />Property tax revenue decreased $1,717,741 or by 1.3 %. This decrease is due to the slow economic
<br />recovery and the unfavorable settlement of several large business tax appeals.
<br />Local option sales tax increased $7,804,141 a 30.2% increase. In October 2011, the County enacted an
<br />additional ' / 4 cent sales tax. For 8 months of FY 12 this new tax generated $4,022,347 in revenues. FY
<br />12 also experienced less sales tax refunds to nonprofit businesses than in the prior FY11 year. FY12
<br />refunds were $3,806,580 compared to FY11 refunds of $6,983,645.
<br />General Government expenses increased $987,725 or 3.7% due to individual small personnel and
<br />operating increases including an increased contribution to the pension trust fund and an increase in
<br />unemployment compensation.
<br />Public Safety expenses increased $3,179,036 or 8.8% primarily due to the operations and staffing of a
<br />new Jail Housing Unit which opened during FY 11 and had a full year of operations in FY 12.
<br />Education expenses decreased $11,068,561 (13.3 %). During FY 11 two schools funded by COPS 2009
<br />were under construction and almost complete at June 30, 2011. The majority of expenses for the school
<br />COPS construction projects were experienced prior to June 30, 2011. Qualified School Construction
<br />Bond projects began in FY12 and will continue for two years. $5,817,525 has been expended to date for
<br />these projects.
<br />Business -type activities
<br />The County's Business -type activity, the Landfill, experienced a $59,300 (1.6 %) decrease in net assets.
<br />A transfer to the County Closure /Post Closure Liability reserve of $957,917 was made in FY 10 as
<br />estimated by the County's third party Engineers. No transfer was estimated and recommended by the
<br />Engineers in FY 11 or FY 12.
<br />Financial Analysis of the County's Funds
<br />As noted earlier, Cabarrus County uses fund accounting to ensure and demonstrate compliance with
<br />finance - related legal requirements. The County's four major funds, as defined by GAAP for the fiscal
<br />year ended June 30, 2012, were the General Fund, the Certificates of Participation 2009 Fund, the
<br />Qualified School Construction Bond Fund and the Landfill Fund, with the last fund being accounted for as
<br />an Enterprise Fund.
<br />Governmental Funds. The focus of Cabarrus County's governmental funds is to provide information on
<br />near -term inflows, outflows and balances of usable resources. Such information is useful in assessing
<br />Cabarrus County's financing requirements. Specifically, fund balance available for appropriation can be a
<br />useful measure of a government's net resources available for spending at the end of the fiscal year.
<br />The General Fund is the chief operating fund of Cabarrus County. As of June 30, 2012, Cabarrus
<br />County's total fund balance was $76,033,235 of which $63,143,734 was available for commitments,
<br />assignments and appropriations. The Governing Body of Cabarrus County has determined that the
<br />county should maintain an available fund balance of 15% of general fund expenditures in case of
<br />unforeseen needs or opportunities and to meet the cash flow needs of the County. The County currently
<br />has an available fund balance of 30.5% of general fund expenditures, while total fund balance represents
<br />36.7% of that same amount. Of the $63,143,734 available fund balance, the County has committed
<br />$6,606 (.01%) for General Government Tax Revaluation purposes, and has assigned $17,436,575
<br />(27.6°/x) for specific projects and obligations. Following the fund balance policy, $30,040,080 (47.6 %) of
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