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Cabarrus County, North Carolina Notes to the Financial Statements For the Fiscal Year Ended June 30, 2009 To the Cabarrus Arena and Events Center Special Revenue Fund from the General Fund for the operations of the facility. 600,000 To the Capital Reserve Special Revenue Fund from the General Fund for future school projects. 7,896,584 To the Capital Reserve Special Revenue Fund from the General Fund to fulfill the 15% Fund Balance policy. 4,307,062 To the Small Projects Special Revenue Fund from the Capital Reserve Special Revenue Fund for the development of an incubator farm. 400.000 Total $ 29.233.852 M. Supplemental and Additional Supplemental One-Half of One Percent Local Government Sales and Use Tax State law (Chapter 105, Articles 40 and 42, of the North Carolina General Statutes) requires the County to use a portion of the proceeds of its supplemental and additional supplemental sales taxes, or local option sales taxes, for public school capital outlays or to retire public school indebtedness. During the fiscal year ended June 30, 2009, the County reported these local option sales taxes within its General Fund. The County expended the restricted portion of these taxes for public school capital outlays. N. Public School Building Capital Fund The Public School Building Capital Fund is funded using a portion of the corporate income taxes which are imposed on corporations doing business in the State. Each calendar quarter, the Department of Revenue shall remit to the State Treasurer for credit in the fund, an amount equal to the applicable fraction provided by the following table of the net collections of corporate income taxes received during the previous quarter minus $2.5 million, which it deposits into the Critical School Facilities Needs Fund. Period Fraction Prior to 10/1 /97 Two thirty-first (2/31) 10/1/97 to 9/30/98 One-fifteenth (1/15) 10/1/98 to 9/30/99 Two twenty-ninths (2/29) 10/1/99 to 9/30/00 One fourteenth (1/14) After 9/30/00 Five sixty-ninths (5/69) The corporate income taxes deposited into the Fund are allocated to the County on the basis of its average daily membership (ADM) as determined by the North Carolina State Board of Education. The Office of State Budget and Management established and maintains an ADM allocation account for the County. At June 30, 2009 the balance of the County's ADM allocation account was $2,935,785. The County must match this balance on the basis of one dollar for every three dollars of state funds for financing the school unit's facilities capital needs. The local school technology plan does not require a County match. After approving a school capital project authorized by the Act, the Office of State Budget and Management will transfer funds from the County's ADM allocation account to its disbursing account maintained with the State Treasurer. At that time, the ADM allocation transferred is considered to be "available" and is recognized in the Public School Building Capital Fund as intergovernmental revenue. At June 30, 2009 the County's disbursing account had a $519,885 balance. 62 Attachment number 3 G-8 Page 336