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City of Charlotte, North Carolina Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2008

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City of Charlotte, North Carolina Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2008 City of Charlotte, North Carolina Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 2008 Mayor: Pat McCrory Mayor Pro Tem: Susan Burgess City Council: Michael Barnes Patsy Kinsey Nancy G. Carter John Lassiter Warren Cooksey James Mitchell, Jr. Andy Dulin Edwin Peacock Anthony Foxx Warren Turner City Manager: W. Curtis Walton, Jr. Prepared by the City of Charlotte Finance Department Greg C. Gaskins, Director of Finance Teresa T. Smith, Financial Reporting Manager CITY OF CHARLOTTE, NORTH CAROLINA TABLE OF CONTENTS Page INTRODUCTORY SECTION Letter of Transmittal ....................................................................................................................................... 1 Certificate of Achievement for Excellence in Financial Reporting ............................................................... 13 Organizational Chart .................................................................................................................................... 14 FINANCIAL SECTION Independent Auditors’ Report ...................................................................................................................... 15 Management’s Discussion and Analysis ..................................................................................................... 17 Basic Financial Statements: Government-wide Financial Statements: Statement of Net Assets ................................................................................................................. 29 Statement of Activities .................................................................................................................... 30 Fund Financial Statements: Balance Sheet – Governmental Funds .......................................................................................... 32 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Assets .................................................................................................... 33 Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds ................................................................................... 34 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities................................ 35 Statement of Budgetary Comparison – General Fund ................................................................... 36 Reconciliation of the Statement of Budgetary Comparison to the Statement of Revenues, Expenditures and Changes in Fund Balances – General Fund ............................ 37 Statement of Net Assets – Proprietary Funds ................................................................................ 38 Statement of Revenues, Expenses and Changes in Fund Net Assets – Proprietary Funds ..................................................................................................................... 42 Statement of Cash Flows – Proprietary Funds............................................................................... 44 Statement of Fiduciary Net Assets – Fiduciary Funds ................................................................... 48 Statement of Changes in Fiduciary Net Assets – Fiduciary Funds ................................................ 49 Index to the Notes to the Financial Statements .................................................................................... 50 Notes to the Financial Statements ........................................................................................................ 52 CITY OF CHARLOTTE, NORTH CAROLINA TABLE OF CONTENTS-(Continued) Page FINANCIAL SECTION (continued) Combining and Individual Fund Statements and Schedules: Nonmajor Governmental Funds: Description .................................................................................................................................... 113 Combining Balance Sheet ............................................................................................................ 116 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ....................................................................................................................... 118 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual (Non-GAAP Basis) – Special Revenue Funds (Budgeted Annually) .......................... 120 Schedule of Expenditures Compared with Authorizations: Public Safety Grants Fund ..................................................................................................... 124 Neighborhood Development Fund ......................................................................................... 125 Employment and Training Fund ............................................................................................. 126 Emergency Communications Fund ........................................................................................ 127 Debt Service and Capital Projects Funds: Description .................................................................................................................................... 129 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual (Non-GAAP Basis) – Debt Service Fund .................................................................... 130 Schedule of Expenditures and Encumbrances Compared with Authorizations – Capital Projects Fund ............................................................................................................. 132 Enterprise Funds: Description .................................................................................................................................... 135 Water and Sewer: Schedule of Revenues, Expenditures and Transfers – Budget and Actual (Non-GAAP Basis): Operating Fund ................................................................................................................ 137 Debt Service Fund ........................................................................................................... 138 Schedule of Reconciliation of Budgetary (Non-GAAP Basis) to Full Accrual Basis .............. 139 Schedule of Expenditures and Encumbrances Compared with Authorizations – Capital Projects Fund ...................................................................................................... 140 CITY OF CHARLOTTE, NORTH CAROLINA TABLE OF CONTENTS-(Continued) Page FINANCIAL SECTION (continued) Combining and Individual Fund Statements and Schedules (continued): Enterprise Funds (continued): Storm Water: Schedule of Revenues, Expenditures and Transfers – Budget and Actual (Non-GAAP Basis): Operating Fund ................................................................................................................ 143 Debt Service Fund ........................................................................................................... 144 Schedule of Reconciliation of Budgetary (Non-GAAP Basis) to Full Accrual Basis .............. 145 Schedule of Expenditures and Encumbrances Compared with Authorizations – Capital Projects Fund ...................................................................................................... 146 Airport: Schedule of Revenues, Expenditures and Transfers – Budget and Actual (Non-GAAP Basis): Operating Fund ................................................................................................................ 149 Debt Service Fund ........................................................................................................... 150 Schedule of Reconciliation of Budgetary (Non-GAAP Basis) to Full Accrual Basis .............. 151 Schedule of Expenditures and Encumbrances Compared with Authorizations – Capital Projects Fund ...................................................................................................... 152 Public Transit: Schedule of Revenues, Expenditures and Transfers – Budget and Actual (Non-GAAP Basis): Operating Fund ................................................................................................................ 155 Debt Service Fund ........................................................................................................... 156 Schedule of Reconciliation of Budgetary (Non-GAAP Basis) to Full Accrual Basis .............. 157 Schedule of Expenditures and Encumbrances Compared with Authorizations – Capital Projects Fund ...................................................................................................... 158 Internal Service Funds: Description .................................................................................................................................... 161 Combining Statement of Net Assets ............................................................................................ 162 Combining Statement of Revenues, Expenses and Changes in Fund Net Assets ...................... 163 Combining Statement of Cash Flows ........................................................................................... 164 CITY OF CHARLOTTE, NORTH CAROLINA TABLE OF CONTENTS-(Continued) Page STATISTICAL SECTION Description ............................................................................................................................................... 165 Government-wide Information: Net Assets By Component .................................................................................................................
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