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Cabarrus County, North Carolina
<br />Notes to the Financial Statements
<br />For the Year Ended June 30, 2010
<br />to providing annual appropriations for the facilities, the County periodically issues general obligation bonds to
<br />provide financing for new and restructured facilities. Of the 2003 Refunded general obligation bonds issued,
<br />$39,212 in debt is still outstanding. Of the 2006 General Obligation bonds issued, $2,848,125 in debt is still
<br />outstanding. In March 2005, the County issued installment financing for the up fit of the old school administration
<br />building which will house the new RCCC Business Center. The total financed cost of the up fit totaled $4,358,000.
<br />The County has leased this facility to RCCC for $1 per year. At fiscal year end $1,245,143 in debt is still
<br />outstanding. The County has an ongoing financial responsibility for the community college because of the statutory
<br />responsibilities to provide funding for the community college's facilities. The County contributed $1,798,496 to the
<br />community college for operating purposes during the fiscal year ended June 30, 2010. In addition, the County made
<br />debt service payments of $985,999 during the fiscal year on general obligation bonds and installment financing
<br />issued for community college capital facilities. The participating governments do not have any equity interest in the
<br />joint venture; therefore, no equity interest has been reflected in the County's financial statements at June 30, 2010.
<br />Complete financial statements for the community college may be obtained from the community college's
<br />administrative offices at 1 -85 at Jake Alexander Boulevard South, Salisbury, NC 28145.
<br />4. Jointly Governed Organization
<br />The County, in conjunction with eight other counties and fifty -four municipalities, established the Centralina Council
<br />of Governments (Council). The participating governments established the Council to coordinate various funding
<br />received from federal and state agencies. Each participating government appoints one member to the Council's
<br />governing board. The County paid membership fees of $41,096 to the Council during the fiscal year ended June
<br />30, 2010. Effective July 1, 2010, the County is no longer a member of this Council.
<br />The County in conjunction with the Cities of Concord and Kannapolis and the Towns of Harrisburg and Mount
<br />Pleasant organized the Water and Sewer Authority of Cabarrus County in order to operate and maintain a regional
<br />interceptor sewer system and wastewater treatment system. Although not a user of the wastewater treatment
<br />services, the County is a related party by virtue of joint governance of the Water and Sewer Authority of Cabarrus
<br />County.
<br />5. Other Employment Benefits
<br />The County and the Alliance have elected to provide death benefits to employees through the Death Benefit Plan
<br />for members of the Local Governmental Employee's Retirement System (Death Benefit Plan), a State administered
<br />plan funded on a one year -term cost basis. The beneficiaries of those employees who die in active service after
<br />one year of contributing membership in the System, or who die within 180 days after retirement or termination of
<br />service and have at least one year of contributing membership service in the System at the time of death are
<br />eligible for death benefits. Lump sum death benefit payments to beneficiaries are equal to the employee's 12
<br />highest months salary in a row during the 24 months prior to his /her death, but the benefit will be a minimum of
<br />$25,000 and will not exceed $50,000. Annually, the State sets the County's and the Alliance's monthly contribution
<br />rates for death benefits. Separate rates are set for employees not engaged in law enforcement and for law
<br />enforcement officers. Because the benefit payments are made by the Death Benefit Plan and not the County, the
<br />County and the Alliance do not determine the number of eligible participants. For the fiscal year ended June 30,
<br />2010, the County made contributions to the State for death benefits of $34,792 and the Alliance made no
<br />contribution. The County's required contributions for employees not engaged in law enforcement and for law
<br />enforcement officers represented .08 %, and .14% of covered payroll. The contributions to the Death Benefit Plan
<br />cannot be separated between the postemployment benefit amount and the other benefit amount.
<br />Effective July 1, 2004, pursuant to a new IRS regulation regarding Group Life Insurance benefits, the County is now
<br />required to include the amount of group life insurance coverage that exceeds $50,000 as a taxable fringe benefit.
<br />As a full -time employee participating in the NC Local Government Retirement System, an employee is eligible for a
<br />death benefit of $25,000 to $50,000 and an additional $20,000 the County provides for all employees who have
<br />been employed for at least one year. If an employee has purchased additional insurance through the County, this
<br />will also be included in the employees total life insurance fringe benefits. If this combined life insurance coverage
<br />exceeds the $50,000 limit, the excess amount is multiplied by a premium cost factor per $1,000 based on your age
<br />at December 31 provided by the IRS. This amount is then added to the employee's taxable wages on a calendar
<br />year basis.
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