AG 2012 12 17 - Laserfiche WebLink

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FY 2011 and FY 2012 have created fiscal challenges. Overall, the County has a fiscally strong bottom line, with a balanced diverse economy, and commitment to conservatism and strategic focus in its approach to evaluating both revenue and expenditures for fiscal solutions. The following key economic indicators reflect the current dynamics facing the County. Indicator Cabarrus County Population, 2010 178,011 Population, 2000 Census 131,063 Population Change 2000 - 2010 35.8% Unemployment, Annual Average 2011 10.1% Per Capita Personal Income, 2010 $33,926 Poverty, 2010 12.5% Source: U.S. Census Bureau, Bureau of Economic Analysis and Employment Security Commission Budget Highlights for the Upcoming Fiscal Year Ending June 30, 2013 Governmental Activities: The County's conservative financial management practices have positioned it to sustain services while keeping expenditures flat over the next five years. The County's five year financial plan freezes expenditures through 2016 and maintains a healthy fund balance. In developing the FY13 budget, the County was faced with a 12.3% reduction in tax values due to the recession and revaluation. The County adopted its FY13 budget of $ 211,408,859 at 21.6 %, less than the FY 2012 amended budget. FY13 was a revaluation year and the revenue neutral tax rate was .72. The County's 2013 budget is based on a tax rate of $0.70 per $100 valuation (up from $0.63 per $100 in FY 2011). A decline in the tax base and the reduction of one -time revenue sources reduced available revenues. Sales tax revenues and motor vehicle valuations have increased to help offset the reduction in property taxes. The County budgeted $7,307,518 in lottery proceeds for debt service payments, an increase of $5,593,963. Due to debt reductions in FY 2012, the debt service for FY 2013 declined by $13 million. There were some operational increases to the FY13 budget. Beginning in 2013, the County will begin paying towards its obligation to the City of Kannapolis $1,400,000 which is for 50 % of the debt service on the improvements to the City of Kannapolis infrastructure and the construction of a new facility for the Cabarrus Health Alliance. The 2013 budget adds a crime scene officer for the Sheriff's Department. Lastly, the county passed a ' / 4 cent sales tax referendum on May 17, 2011. This new sales tax, effective October 2011 generated $ 4,022,347 in FY 2012, a 32% increase over the 2012 budget and 1% more than the FY 2013 budget, (its first full fiscal year of enactment). Collections will be used to pay school debt service. Business -type Activities: The Landfill Fund budget decreased 12% from FY2012 to FY2013 to $1,148,000. Prior to FY 2012, the Landfill and Waste Reduction and Recycling programs constituted the Landfill Fund. Effective July 1, 2011, the Waste Reduction and Recycling programs were removed from the Landfill Fund and transferred to the General Fund. There were revenue changes as well. Most significantly tipping fees budgeted decreased by 16 %, all primarily related to the current economic conditions. Requests 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 Finance Department, Cabarrus County, 65 Church Street SE, Concord, NC 28027, (704) 920 -2104. 24 Attachment number 1 1 -3 Page 278