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Government -Wide Financial Analysis
<br />Cabarrus County's Net Assets
<br />Figure 2
<br />Governmental Business -type
<br />Net assets
<br />Invested in capital assets, net
<br />of related debt
<br />Restricted
<br />Unrestricted
<br />Total net assets
<br />108,911,093 108,046,560 4,048,802 4,174,313 112,959,895
<br />57,497,847 59,101,722
<br />57,497,847
<br />(245,337,483) (215,569,630) (286,743) 604,100 (245,624,226) (214,965,530)
<br />$ (78,928,543) $ (48,421,348) $3,762,059 $4,778,413 $ (75,166,484) $ (43,642,935)
<br />112,220,873
<br />59,101,722
<br />While total net assets are often considered a useful indicator of a government's financial position, it does
<br />not adequately reflect the County's position. In accordance with the North Carolina General Statutes, the
<br />County is the issuer and payer of debt for capital purposes for the Cabarrus County Schools, Kannapolis
<br />City Schools and the Rowan - Cabarrus Community College. This debt, which totals $309,119,032 at June
<br />30, 2010 and totaled $239,638,170 at June 30, 2009, is recorded in long -term liabilities with no offsetting
<br />capital assets recorded, as the assets are owned by the agencies. The agencies use the debt proceeds
<br />to acquire or construct capital assets. The effect of this accounting distorts net assets of the County,
<br />creating a large deficit in unrestricted net assets. Net Assets of $114,387,033 at June 30, 2010 and
<br />$112,220,873 at June 30, 2009 are invested in capital assets, net of any related outstanding debt of those
<br />assets. Capital assets include land, buildings, vehicles, equipment and other machinery used in providing
<br />services to residents. Also, net assets of $57,497,847 at June 30, 2010 and $59,101,722 at June 30,
<br />2009 are reserved by law for specific purposes. The net increase in the deficit unrestricted net assets,
<br />resulted from the issuance of debt and the decrease in County capital assets net of accumulated
<br />depreciation. Net assets do not present the County's position regarding spending, this amount is
<br />presented in the governmental funds statements.
<br />Several particular aspects of the County's financial operations positively influenced the total unrestricted
<br />governmental net assets:
<br />• Continued diligence in the collection of property taxes by maintaining a collection percentage of
<br />97.45 %, higher than the statewide average of 97.42 %.
<br />• Continued low cost of debt due to the County's high bond rating and the prevailing interest rate
<br />environment.
<br />• The State of North Carolina assumed 100% of the County's Medicaid Assistance payments and
<br />effective July 1, 2009.
<br />• General Fund County revenues at June 30, 2010 were $5,139,663 over budget. This is primarily
<br />due to a higher than expected property tax collection rate and sales tax revenue continuing to
<br />grow for Cabarrus County even in harsh economic times.
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<br />Activities
<br />Activities
<br />Total
<br />2010
<br />2009
<br />2010
<br />2009
<br />2010
<br />2009
<br />Current and other assets
<br />$168,703,222
<br />$153,931,615
<br />$ 3,952,249
<br />$ 5,554,390
<br />$172,655,471
<br />$159,486,005
<br />Capital assets
<br />219,001,854
<br />191,822,673
<br />4,048,802
<br />4,174,313
<br />223,050,656
<br />195,996,986
<br />Total assets
<br />387,705,076
<br />345,754,288
<br />8,001,051
<br />9,728,703
<br />395,706,127
<br />355,482,991
<br />Long -term liabilities outstanding
<br />415,686,826
<br />342,061,599
<br />1,578,667
<br />2,694,908
<br />417,265,493
<br />344,756,507
<br />Other liabilities
<br />50,946,793
<br />52,114,037
<br />2,660,325
<br />2,255,382
<br />53,607,118
<br />54,369,419
<br />Total liabilities
<br />466,633,619
<br />394,175,636
<br />4,238,992
<br />4,950,290
<br />470,872,611
<br />399,125,926
<br />Net assets
<br />Invested in capital assets, net
<br />of related debt
<br />Restricted
<br />Unrestricted
<br />Total net assets
<br />108,911,093 108,046,560 4,048,802 4,174,313 112,959,895
<br />57,497,847 59,101,722
<br />57,497,847
<br />(245,337,483) (215,569,630) (286,743) 604,100 (245,624,226) (214,965,530)
<br />$ (78,928,543) $ (48,421,348) $3,762,059 $4,778,413 $ (75,166,484) $ (43,642,935)
<br />112,220,873
<br />59,101,722
<br />While total net assets are often considered a useful indicator of a government's financial position, it does
<br />not adequately reflect the County's position. In accordance with the North Carolina General Statutes, the
<br />County is the issuer and payer of debt for capital purposes for the Cabarrus County Schools, Kannapolis
<br />City Schools and the Rowan - Cabarrus Community College. This debt, which totals $309,119,032 at June
<br />30, 2010 and totaled $239,638,170 at June 30, 2009, is recorded in long -term liabilities with no offsetting
<br />capital assets recorded, as the assets are owned by the agencies. The agencies use the debt proceeds
<br />to acquire or construct capital assets. The effect of this accounting distorts net assets of the County,
<br />creating a large deficit in unrestricted net assets. Net Assets of $114,387,033 at June 30, 2010 and
<br />$112,220,873 at June 30, 2009 are invested in capital assets, net of any related outstanding debt of those
<br />assets. Capital assets include land, buildings, vehicles, equipment and other machinery used in providing
<br />services to residents. Also, net assets of $57,497,847 at June 30, 2010 and $59,101,722 at June 30,
<br />2009 are reserved by law for specific purposes. The net increase in the deficit unrestricted net assets,
<br />resulted from the issuance of debt and the decrease in County capital assets net of accumulated
<br />depreciation. Net assets do not present the County's position regarding spending, this amount is
<br />presented in the governmental funds statements.
<br />Several particular aspects of the County's financial operations positively influenced the total unrestricted
<br />governmental net assets:
<br />• Continued diligence in the collection of property taxes by maintaining a collection percentage of
<br />97.45 %, higher than the statewide average of 97.42 %.
<br />• Continued low cost of debt due to the County's high bond rating and the prevailing interest rate
<br />environment.
<br />• The State of North Carolina assumed 100% of the County's Medicaid Assistance payments and
<br />effective July 1, 2009.
<br />• General Fund County revenues at June 30, 2010 were $5,139,663 over budget. This is primarily
<br />due to a higher than expected property tax collection rate and sales tax revenue continuing to
<br />grow for Cabarrus County even in harsh economic times.
<br />18
<br />G -2 Page 504
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