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Cabarrus County, North Carolina
<br />Notes to the Financial Statements
<br />For the Year Ended June 30, 2012
<br />the possession of an outside party. The County's formal policy indicates that the County shall utilize a third
<br />party custodial agent for book entry transactions, all of which shall be a trust department authorized to do trust
<br />work in North Carolina who has an account with the Federal Reserve. Certificated securities shall be in the
<br />custody of the designated investment officer.
<br />Concentration of Credit Risk. With the exception of U.S. Treasury securities and agencies and authorized
<br />pools, Cabarrus County's investment policy does not allow for an investment in any one issuer in excess of 35%
<br />of the County's total investments. These investments are 10% of the County's total investments.
<br />At June 30, 2012, the Cabarrus Health Alliance investments consisted of $3,695,253 in the North Carolina
<br />Capital Management Trust's Cash Portfolio, which carried a credit rating of AAAm by Standard and Poor's. The
<br />Alliance has no policy on credit risk, custodial credit risk or interest rate risk.
<br />Investment T
<br />Fair Value
<br />Less Than 1
<br />Year
<br />2 -3 Years 4 -7 Years
<br />NC Capital Management Trust
<br />- Cash Portfolio $ 3,695,253
<br />$ 3,695,253
<br />C. Property Tax - Use -Value Assessment on Certain Lands
<br />In accordance with North Carolina general statutes, agriculture, horticulture, and forestland may be taxed by the
<br />County at present -use value as opposed to market value. When the property loses its eligibility for use -value
<br />taxation, the property tax is recomputed at market value for the current year and the three preceding fiscal years
<br />along with accrued interest from the original due date. This tax is immediately due and payable. The amounts
<br />shown in the table are property taxes that could become due if present use -value eligibility is lost. These
<br />amounts have not been recorded in the financial statements.
<br />Year Levied
<br />Tax
<br />Interest
<br />Total
<br />2008
<br />$ 6,863,263
<br />$ 2,247,719
<br />$ 9,110,982
<br />2009
<br />7,126,992
<br />1,692,661
<br />8,819,653
<br />2010
<br />7,387,280
<br />1,089,624
<br />8,476,904
<br />2011
<br />7,627,445
<br />438,578
<br />8,066,023
<br />Total
<br />$ 29,004,980
<br />$ 5,468,582
<br />$ 34,473,562
<br />D. Receivables
<br />1. Notes Receivable
<br />On May 22, 2007 Midland Volunteer Fire and Rescue agreed to pay $900,000 over a 10 year period at zero
<br />interest for the construction of a new fire station. The first payment of $3,000 was due on July 1, 2007 and
<br />payable each month through June 1, 2012. Beginning July 1, 2012 payments of $6,000 will be payable each
<br />month through June 1, 2017. A final balloon payment of $360,000 is due on July 1, 2017 for total payments of
<br />$900,000. The unpaid balance of the note at June 30, 2012 was $720,000. The note receivable is being
<br />reported in the Capital Reserve Capital Projects Fund.
<br />51 Attachment number 1
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