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Government-Wide Financial Analysis
<br />Cabarrus County's Net Assets
<br />Figure 2
<br /> Governmental Business-type
<br /> Activities Activities Total
<br /> 2009 2008 2009 2008 2009 2008
<br />Current and other assets $153,931,615 $151,973,399 $5,554,390 $5,809,134 $159,486,005 $157,782,533
<br />Capital assets 191,822,673 154,870,423 4,174,313 3,856,424 195,996,986 158,726,847
<br />Total assets 345,754,288 306,843,822 9,728,703 9,665,558 355
<br />482
<br />991 316
<br />509
<br />380
<br /> ,
<br />, ,
<br />,
<br />Long-term liabilities outstan 342,061,599 297,065,644 2,694,908 4,569,742 344,756,507 301,635,386
<br />Other liabilities 52,114,037 53,877,966 2,255,382 282,043 54,369,419 54,160,009
<br />Total liabilities 394,175,636 350,943,610 4,950,290 4,851,785 399,125,926 355,795,395
<br />
<br />Net assets
<br />Invested in capital assets, n et
<br />of related debt 108,046,560 91,564,956 4,174,313 3,856,424 112,220,873 95,421,380
<br />Restricted 59,101,722 73,845,715 - - 59,101,722 73,845,715
<br />Unrestricted (215,569,630) (209,510,459) 604,100 957,349 (214,965,530) (208,553,110)
<br />Total net assets $ (48,421,348) $ (44,099,788) $4,778,413 $ 4,813,773 $ (43,642,935) $ (39,286,015)
<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 $239,638,170 at June
<br />30, 2009 and totaled $254,994,303 at June 30, 2008, 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 is to distort net assets of the County,
<br />creating a large deficit in unrestricted net assets. Net Assets of $112,220,873 at June 30, 2009 and
<br />$95,421,380 at June 30, 2008 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 $59,101,722 at June 30, 2009 and $73,845,715 at June 30,
<br />2008 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 />98.06%, higher than the statewide average of 97.64%.
<br />• County property which had been for sale for numerous years was sold during fiscal year 2009 for
<br />approximately $1 million.
<br />• Continued low cost of debt due to the County's high bond rating and the prevailing interest rate
<br />environment.
<br />The State of North Carolina assumed 50% of the County's Medicaid Assistance payments and
<br />effective July 1, 2009; the state will assume 100%.
<br />~g Attachment number 3
<br />G-$ Page 290
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