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conditions, FY 2010 and FY 2011 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 11.3% Per Capita Personal Income, 2009 $34,083 Poverty, 2009 11.4% Source: U.S. Census Bureau, Bureau of Economic Analysis and Employment Security Commission Budget Highlights for the Upcoming Fiscal Year Ending June 30, 2012 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 FY12 budget, the County froze spending at FY 2011 levels and stayed on course with the five year financial plan. In effect the County adopted its FY12 budget of $214,872,987 at $20.6 million, or 8.74 %, less than the FY 2011 amended budget, maintaining the county's tax rate of $0.63 per $100 valuation. A decline in the tax base and the reduction of one -time revenue sources reduced available revenues. The county is still feeling the effects of closure of its largest taxpayer, Philip Morris. In addition, there are a number of property tax appeals that remain unsettled. One -time revenues, specifically grant funds like those from the America Recovery and Reinvestment Act (ARRA), represent the second largest decrease in available revenue. Expenditures were decreased to match available funds. There were some operational increases to the FY12 budget. Significant increases include the cost of adding 77 detention officers to staff the new jail facility. These positions were hired late FY 2011, the annualized salaries and benefits will the county expenditures by nearly $3m. The County's personnel management plan calls for cost of living adjustment (COLA) based on December CPI. For FY 2012 this increase is 1.5 %. The last significant increase was new debt service for the schools, which increased by $4.7m. Lastly, the county passed a '/4 cent sales tax referendum on May 17, 2011. This new sales tax, effective October 2011, is projected to generate $3 million in FY 2012 and an additional $1.6 million in FY 2013, its first full fiscal year of enactment. Collections will be used to pay school debt service. The new 1 /4 cent sales tax will position the County to replenish its capital reserve fund with revenues in excess of expenditures by FY2016. Business -type Activities: The Solid Waste Management (Landfill) Fund budget decreased 61.59% from FY2011 to FY2012 to $1,305,000. Prior to FY 2012, the Landfill and Waste Reduction programs constituted the Solid Waste Fund. Effective July 1, 2011, the Waste Reduction and Recycling programs were removed from Solid Waste Management Fund and transferred to the General Fund. There were revenue changes as well. Most significantly, the disposal tax on white goods declined by 14.2% and tipping fees budgeted decreased by 7.8 %, all primarily related to the current economic conditions. There is, however, a 1.63% increase in tire disposal fees. 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 Assistant Director of Finance, Cabarrus County, 65 Church Street SE, Concord, NC 28027, (704) 920 -2894. 24 Attachment number 1 1 -3 Page 144