COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED JUNE 30, 2008_part5 docx

GASTON COUNTY, NORTH CAROLINA

NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2008


B. Contingent Liabilities

At June 30, 2008, the County was a defendant to various lawsuits. In the opinion of the County’s
management and the County attorney, the ultimate resolution of these legal matters will not have
a material adverse effect on the County’s financial position.

C. Joint Ventures

The County, in conjunction with Lincoln and Cleveland Counties, participates in the
Gaston/Lincoln/Cleveland Area Mental Health/Developmental Disabilities/Substance Abuse
Authority - d/b/a “Pathways” (the “Authority”). The Board of Commissioners of each county
appoints one of its own members to the Authority’s board. Those board members, in turn,
appoint the additional members of the Authority’s board allotted to each county, nine from
Gaston County, four from Lincoln County, and five from Cleveland County, making a total of
twenty-one board members. The Authority provides a variety of services to citizens of the three
counties, including individual and group outpatient psychiatric services for adults and
adolescents, case management services, a community support program for formerly
institutionalized persons adjusting to a return to the community, a twenty-four hour crisis service
and a full range of mental retardation services for citizens of all ages. The County has an ongoing
financial responsibility to the Authority to supplement the federal and State funds, which
comprise the bulk of its budget. For the fiscal year ended June 30, 2008, the County contributed
$957,288 to the Authority, which represented approximately 2.01% of its total budget. The
County does not have an equity interest in the Authority; therefore, no equity interest has been
reflected in the financial statements. Complete financial statements for the Authority may be
obtained from its administrative offices at 2505 Court Drive, Gastonia, North Carolina 28054.

The County participates with the State of North Carolina and the Gaston County Board of
Education in a joint venture to operate Gaston College (the “College”), a part of the North
Carolina Community College System, which provides low-cost education to area citizens in a
variety of academic disciplines, often in conjunction with local industry. Each of the three
participants appoints four members of the thirteen-member board of trustees of the College. The
president of the College’s student government association serves as a non-voting, ex-officio
member of the board of trustees. The College is included as a component unit of the State of
North Carolina. The County has the responsibility for providing funding for the facilities of the
College and also provides some financial support for its operations. In addition to providing
annual appropriations for facilities, the County periodically issues general obligation bonds to
provide financing for new and restructured facilities. The County has an ongoing financial
responsibility for the College because of the statutory responsibilities to provide funding for the
College’s facilities. The County’s contributions for the College’s operating and capital
expenditures for the year ended June 30, 2008 were $3,697,000 and $1,006,260, respectively.
The participating governments do not have any equity interest in the joint venture; therefore, no
equity interest has been reflected in the County’s financial statements at June 30, 2008. Complete
financial statements for the College may be obtained at its administrative offices at 201 Highway
321 South, Dallas, North Carolina 28034.

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GASTON COUNTY, NORTH CAROLINA

NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2008


The County, in conjunction with Mecklenburg County, North Carolina, and York County, South

Carolina, participates in the Lake Wylie Marine Commission (the “LWMC”). The LWMC was
established by the 1987 session of the North Carolina General Assembly, Chapter 683 as
amended by Chapter 897, and the 1987 session of the South Carolina General Assembly, Act 176
as amended by Act 769, for the purpose of preserving and protecting property and wildlife and
promoting public safety in, on, and around Lake Wylie. The counties which fall within the
jurisdiction of the LWMC appoint its board members. Gaston County appoints three members,
Mecklenburg County appoints two, and York County appoints two. The primary sources of
revenue for the LWMC are the member assessments in equal amounts of $25,000 for each of the
three counties for the fiscal year ended June 30, 2008. The County has no equity interest in the
joint venture, so no equity interest has been reflected in the financial statements at June 30, 2008.
Complete financial statements for the Lake Wylie Marine Commission are available from the
Centralina Council of Governments, 1300 Baxter Street, Suite 450, P.O. Box 35008, Charlotte,
North Carolina 28235, which performs general and administrative services for the LWMC under
an administrative services contract.

The County also participates in the Mountain Island Lake Marine Commission (the “MILMC”) in
conjunction with Mecklenburg and Lincoln, two adjoining North Carolina counties. The MILMC
was established by the 1997 session of the North Carolina General Assembly, Chapter 257 for the
purpose of preserving and protecting property and wildlife and promoting public safety in, on and
around Mountain Island Lake. The counties which fall within the jurisdiction of the MILMC
appoint its board members. The County appoints three members, Mecklenburg County appoints
three and Lincoln County appoints one. The primary source of revenue for the MILMC is
member assessments, the County’s share of which was $21,811 for the fiscal year ended June 30,
2008. The County has no equity interest in the joint venture, so no equity interest has been
reflected in the financial statements at June 30, 2008. Complete financial statements for the
Mountain Island Lake Marine Commission are available from the Centralina Council of
Governments, 1300 Baxter Street, Suite 450, P.O. Box 35008, Charlotte, North Carolina 28235,
which performs general and administrative services for the MILMC under an administrative
services contract.

D. Related Organizations

The County Board of Commissioners appoints thirteen of the fourteen members of the board of
directors of CaroMont Health, Inc. (formerly Gaston Health Care, Inc.). CaroMont Health, Inc. is
a holding company which includes several operating companies providing health services to the
citizens of Gaston County and surrounding counties. The most significant of these companies is
Gaston Memorial Hospital, Inc. The County leases buildings and land to CaroMont Health, Inc.
for the Gaston Memorial Hospital for one dollar per year. The lease is for thirty years expiring on
April 29, 2035, with automatic one-year renewal provisions until terminated by either party.

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GASTON COUNTY, NORTH CAROLINA

NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2008


The County Board of Commissioners appoints the seven-member board of directors of the Gaston
County Industrial Facilities and Pollution Control Financing Authority (the “Authority”), which
was created in 1976 under the authority of North Carolina General Statute 159D. The Authority
is charged with the review of applications for the County’s allotment of industrial revenue bonds
and approves or denies the preliminary application. The Authority also makes recommendations
to the Board of Commissioners regarding each bond application and serves as agent for industrial
bond issues as specified under federal and State tax laws for tax-exempt industrial revenue bonds.

E. Other Post-Employment Benefits

Other Employment Benefits

The County has elected to provide death benefits to employees through the Death Benefit Plan for
Members of the Local Governmental Employees' Retirement System (Death Benefit Plan), a
multiple-employer, State-administered, cost-sharing plan funded on a one-year term cost basis.
The beneficiaries of those employees who die in active service after one year of contributing
membership in the System, or who die within 180 days after retirement or termination of service
and have at least one year of contributing membership service in the System at the time of death,
are eligible for death benefits. Lump-sum death benefit payments to beneficiaries are equal to the
employee’s 12 highest months' salary in a row during the 24 months prior to the employee’s
death, but the benefit will be a minimum of $25,000 and will not exceed $50,000. All death
benefit payments are made from the Death Benefit Plan. The County has no liability beyond the
payment of monthly contributions. Contributions are determined as a percentage of monthly
payroll, based upon rates established annually by the State. Separate rates are set for employees
not engaged in law enforcement and for law enforcement officers. Because the benefit payments
are made by the Death Benefit Plan and not by the County, the County does not determine the
number of eligible participants. For the fiscal year ended June 30, 2008, the County made
contributions to the State for death benefits of $63,864. The County’s required contributions for
employees not engaged in law enforcement and for law enforcement officers represented 0.08%
and 0.14% of covered payroll, respectively. The contributions to the Death Benefit Plan cannot
be separated between the post-employment benefit amount and the other benefit amount.

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GASTON COUNTY, NORTH CAROLINA

NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2008

F. Pension Plan Obligations

Local Governmental Employees’ Retirement System

Plan Description. The County contributes to the statewide Local Governmental Employees’
Retirement System (LGERS), a cost-sharing multiple-employer defined benefit pension plan
administered by the State of North Carolina. LGERS provides retirement and disability benefits
to plan members and beneficiaries. Article 3 of G.S. Chapter 128 assigns the authority to establish
and amend benefit provisions to the North Carolina General Assembly. The Local Governmental
Employees’ Retirement System is included in the Comprehensive Annual Financial Report
(CAFR) for the State of North Carolina. The State’s CAFR includes financial statements and
required supplementary information for LGERS. That report may be obtained by writing to the
Office of the State Controller, 1410 Mail Service Center, Raleigh, North Carolina 27699-1410.

Funding Policy. Plan members are required to contribute six percent of their annual covered
salary. The County is required to contribute at an actuarially determined rate. For the County,
the current rates for employees not engaged in law enforcement and for law enforcement officers
are 4.90% and 4.86%, respectively, of annual covered payroll. The contribution requirements of
members and of the County are established and may be amended by the North Carolina General
Assembly. The County’s contributions to LGERS for the years ended June 30, 2008, 2007 and
2006 were $2,922,469, $2,593,048, and $2,491,952, respectively. The contributions made by the
County equaled the required contributions for each year.

Law Enforcement Officers’ Special Separation Allowance

Plan Description. Gaston County administers a public employee retirement system (the
“Separation Allowance”), a single-employer defined benefit pension plan that provides retirement
benefits to the County’s qualified sworn law enforcement officers. The Separation Allowance is
equal to .85 percent of the annual equivalent of the base rate of compensation most recently
applicable to the officer for each year of creditable service. The retirement benefits are not

subject to any increases in salary or retirement allowances that may be authorized by the General
Assembly. Article 12D of G.S. Chapter 143 assigns the authority to establish and amend benefit
provisions to the North Carolina General Assembly.

All full-time County law enforcement officers are covered by the Separation Allowance. At
December 31, 2007, the Separation Allowance’s membership consisted of:


Retirees receiving benefits 27
Active plan members 234

Total 261



Separate financial statements were not issued for the plan.

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GASTON COUNTY, NORTH CAROLINA

NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2008


Summary of Significant Accounting Policies:

Basis of Accounting. The County has chosen to fund the Separation Allowance on a pay-as-you-
go basis. Pension expenditures will be made from the General Fund, which is maintained on the

modified accrual basis of accounting.

Method Used to Value Investments. Investments are reported at fair value. Short-term money
market debt instruments, deposits, and repurchase agreements are reported at cost or amortized
cost, which approximates fair value. Certain longer term United States Government and United
States Agency securities are valued at the last reported sales price.

Contributions. The County is required by Article 12D of G.S. Chapter 143 to provide these
retirement benefits and has chosen to fund the amounts necessary to cover the benefits earned by
making contributions based on actuarial valuations. For the current year, the County contributed
$357,326. There were no contributions made by employees. The County’s obligation to
contribute to this plan is established and may be amended by the North Carolina General
Assembly. Administration costs of the Separation Allowance are financed through investment
earnings.

The annual required contribution for the current year was determined as part of the December 31,
2006 actuarial valuation using the projected unit credit actuarial cost method. The actuarial
assumptions included (a) 7.25% investment rate of return and (b) projected salary increases
ranging from 4.5% to 12.3% per year. Both (a) and (b) included an inflation component of 3.75%.

The assumptions did not include post-retirement benefit increases. The actuarial value of assets
was determined using the market value of investments. The unfunded actuarial accrued liability
is being amortized as a level percentage of projected payroll on a closed basis. The remaining
amortization period at December 31, 2006 was 24 years.

The County’s annual pension cost and net pension obligation to the Separation Allowance for the
current year were as follows:

Annual required contribution 403,267$
Interest on net pension obligation 92,142

Adjustment to annual required contribution (78,096)

Annual pension cost 417,313
Contributions made 357,326

Increase in net pension obligation 59,987
Net pension obligation:
Beginning of year - July 1 1,270,924

End of year - June 30 1,330,911$



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GASTON COUNTY, NORTH CAROLINA

NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2008


Percentage Net Pension
Fiscal Year Annual Pension of APC Obligation
Ending
Cost (APC) Contributed End of Year
6/30/2006 418,975$ 77.23% 1,171,413$
6/30/2007 430,329 76.88% 1,270,924
6/30/2008 417,313 85.63% 1,330,911
Three-Year Trend Information

Funded Status and Funding Progress. As of December 31, 2006, the most recent actuarial
valuation date, the plan was 0.0 percent funded. The actuarial liability for benefits was
$4,255,753, and the actuarial value of assets was $-0-, resulting in an unfunded actuarial accrued
liability (UAAL) of $4,255,753.

The covered payroll (annual payroll of active employees covered by the plan) was $10,783,780
and the ratio of the UAAL to the covered payroll was 39.46 percent.

The Schedule of Funding Progress, presented as required supplementary information following
the notes to the financial statements, presents multi-year trend information about whether the
actuarial value of the plan assets are increasing or decreasing over time relative to the actuarial
accrued liability for benefits.

Supplemental Retirement Income Plan for Law Enforcement Officers

Plan Description. The County contributes to the Supplemental Retirement Income Plan (Plan), a
defined contribution pension plan administered by the Department of State Treasurer and a Board
of Trustees. The Plan provides retirement benefits to law enforcement officers employed by the
County. Article 5 of G.S. Chapter 135 assigns the authority to establish and amend benefit
provisions to the North Carolina General Assembly. The Supplemental Retirement Income Plan
for Law Enforcement Officers is included in the Comprehensive Annual Financial Report
(CAFR) for the State of North Carolina. The State’s CAFR includes the pension trust fund
financial statements for the Internal Revenue Code Section 401(k) plan that includes the
Supplemental Retirement Income Plan for Law Enforcement Officers. That report may be
obtained by writing to the Office of the State Controller, 1410 Mail Service Center, Raleigh,
North Carolina 27699-1410, or by calling (919) 981-5454.

Funding Policy. Article 12E of G.S. Chapter 143 requires the County to contribute each month an

amount equal to five percent of each officer’s salary, and all amounts contributed are vested
immediately. Also, the law enforcement officers may make voluntary contributions to the plan.
Contributions for the year ended June 30, 2008 were $795,244, which consisted of $579,906 from
the County and $215,338 from the law enforcement officers.

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GASTON COUNTY, NORTH CAROLINA

NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2008


Registers of Deeds’ Supplemental Pension Fund

Plan Description. The County also contributes to the Registers of Deeds’ Supplemental Pension
Fund ("Fund"), a non-contributory, defined contribution plan administered by the North Carolina
Department of State Treasurer. The Fund provides supplemental pension benefits to any county
Register of Deeds who is retired under the Local Government Employees’ Retirement System
(LGERS) or an equivalent locally sponsored plan. Article 3 of G.S. Chapter 161 assigns the
authority to establish and amend benefit provisions to the North Carolina General Assembly. The
Registered of Deeds’ Supplemental Pension Fund is included in the Comprehensive Annual
Financial Report (CAFR) for the State of North Carolina. The State’s CAFR includes financial
statements and required supplementary information for the Register of Deeds’ Supplemental
Pension Fund. That report may be obtained by writing to the Office of the State Controller, 1410
Mail Service Center, Raleigh, North Carolina 27699-1410, or by calling (919) 981-5454.

Funding Policy. On a monthly basis, the County remits to the Department of State Treasurer an
amount equal to four and one-half percent (4.5%) of the monthly receipts collected pursuant to

Article 1 of G.S. 161. Immediately following January 1 of each year, the Department of State
Treasurer divides ninety-three percent (93%) of the amount in the Fund at the end of the
preceding calendar year into equal shares to be disbursed as monthly benefits. The remaining
seven percent (7%) of the Fund’s assets may be used by the State Treasurer in administering the
Fund. For the fiscal year ended June 30, 2008, the County’s required and actual contributions
were $18,683.

Other Post-Employment Benefits

Plan Description. In accordance with a County resolution, the County provides healthcare
benefits to retirees of the County who participate in the North Carolina Local Governmental
Employees’ Retirement System (System) and have at least five years of creditable service with
the County. The County pays the full cost of coverage for these benefits. Also, retirees can
purchase coverage for their dependents at the County’s group rates. Currently 376 retirees are
eligible for post-retirement health benefits. For the fiscal year ended June 30, 2008, the County
made payments for post-retirement health benefit premiums of $1,339,181. The County obtains
healthcare coverage through self and private insurers.

Membership of the post-employment health benefit plan consisted of the following at December
31, 2007, the date of the latest actuarial valuation:

Retirees and dependents receiving benefits 376
Active members
1,454

Total 1,830



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GASTON COUNTY, NORTH CAROLINA

NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2008


Funding Policy. The County agrees to provide medical insurance to certain retired employees as
an extended benefit. Eligible retirees who elect this coverage will be enrolled in the group health
plan. For members that retire with at least 30 years of service or that retire with approved
disability retirement, the County pays 100% of the cost for pre-65 healthcare coverage for the
retiree. Years of service are considered years of creditable service with the Local Governmental
Employees’ Retirement System. Retirees will cease to be eligible for group health insurance at
age 65. The retiree will be responsible for paying the cost of dependent coverage if dependent
coverage is elected.

The current annual required contribution rate (ARC) is 11.2% of annual covered payroll. For
fiscal year 2008, the County contributed $1,609,315, or 2.9% of annual covered payroll.
Contributions by employees for the fiscal year ended June 30, 2008 were $-0 The County’s
obligation to contribute to the post-retirement benefit plan is established and may be amended by
the County.

Summary of Significant Accounting Policies

Benefit expenditures are made from the proprietary funds, which are reported on the full accrual
basis of accounting. No funds are set aside to pay benefits and administration costs. These
expenditures are paid as they come due.

Annual OPEB Cost and Net OPEB Obligation

The County’s annual OPEB cost (expense) is calculated based on the annual required
contribution of the employer (ARC), an amount actuarially determined in accordance with the
parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an
ongoing basis is projected to cover normal cost each year and amortize any unfunded actuarial
liabilities (or funding excess) over a period not to exceed thirty years. The following table shows
the components of the County’s annual OPEB cost for the year, the amount actually contributed
to the plan, and changes in the County’s net OPEB obligation for the post-retirement benefits:

Annual required contribution 6,291,340$
Contributions made
1,609,315

Increase (decrease) in net OPEB obligation 4,682,025
Net OPEB obligation:
Beginning of year - July 1
-

End of year - June 30
4,682,025$




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GASTON COUNTY, NORTH CAROLINA

NOTES TO BASIC FINANCIAL STATEMENTS

FOR THE YEAR ENDED JUNE 30, 2008


The County’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and
the net OPEB obligation for 2008 were as follows:

Ended Contribution Percentage of ARC Net OPEB
June 30
(ARC) Contributed Obligation
2008
6,291,340$

25.58%
4,682,025$


As of December 31, 2007, the most recent actuarial valuation date, the plan was not funded. The
actuarial accrued liability for benefits and, thus, the unfunded actuarial accrued liability (UAAL)
was $56,907,997. The covered payroll (annual payroll of active employees covered by the plan)
was $56,177,617, and the ratio of the UAAL to the covered payroll was 101.3%. Actuarial
valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions
about the probability of occurrence of events far into the future. Examples include assumptions
about future employment, mortality, and healthcare trends. Amounts determined regarding the
funded status of the plan and the annual required contributions of the employer are subject to
continual revision as actual results are compared with past expectations and new estimates are made
about the future. The Schedule of Funding Progress, presented as required supplementary
information following the notes to the financial statements, presents multi-year trend information
about whether the actuarial value of plan assets is increasing or decreasing over time relative to the
actuarial accrued liabilities for benefits.

Actuarial Methods and Assumptions

Projections of benefits for financial reporting purposes are based on the substantive plan (the plan
as understood by the employer and the plan members) and include the types of benefits provided at
the time of each valuation and the historical pattern of sharing of benefit costs between the
employer and plan members at that point. The actuarial methods and assumptions used include
techniques that are designed to reduce the effects of short-term volatility in actuarial accrued
liabilities and the actuarial value assets, consistent with the long-term perspective of the
calculations.

The annual required contribution for the current year was determined as part of the December 31,
2007 actuarial valuation using the projected unit credit actuarial cost method. The actuarial
assumptions included (a) 4.00% investment rate of return, which included an inflation component
of 3.75% and (b) a 11.00% - 5.00% medical cost trend rate with 2016 the year of ultimate trend
rate. The actuarial value of assets was determined using the market value of assets. The unfunded
actuarial accrued liability is being amortized as level percentage of pay on an open basis. The
remaining amortization period at December 31, 2007 was 28 years.



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GASTON COUNTY, NORTH CAROLINA

NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2008


G. Commitments

The County, through the Gaston County Water and Sewer District, has entered into an agreement
with the County of Mount Holly to reimburse the County of Mount Holly $308,764 for
construction costs incurred to provide treated water to East Gaston High and other properties.
The County has agreed to provide this funding in three equal annual payments beginning within
twelve months of completion of the project.

H. Claims and Judgments

At June 30, 2008, the County was a defendant to other various lawsuits. In the opinion of the
County’s management and the County attorney, the ultimate effect of these legal matters will not
have a material adverse effect on the County’s financial position.
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REQUIRED SUPPLEMENTAL FINANCIAL DATA


This section contains additional information required by generally
accepted accounting principles.


• Schedule of Funding Progress and Notes to the Required
Schedules for the Law Enforcement Officers' Special Separation
Allowance

• Schedule of Funding Progress and Notes to the Required Schedules
for Other Post Employment Benefits




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Schedule 1.A
GASTON COUNTY, NORTH CAROLINA
LAW ENFORCEMENT OFFICERS' SPECIAL SEPARATION ALLOWANCE
REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2008
Actuarial Accrued
Actuarial Liability (AAL) Unfunded UAAL as a
Actuarial Value of Projected Unit AAL Funded Covered % of Covered
Valuation Assets Credit (UAAL) Ratio Payroll Payroll
Date
(a) (b) (b-a) (a/b) (c) [(b-a)/c)]
12/31/07 -$ 4,255,753$ 4,255,753$ 0% 10,783,780$ 39.46%
12/31/06 - 3,710,336 3,710,336 0% 10,606,771 34.98%
12/31/05 - 3,584,703 3,584,703 0% 10,375,524 34.55%
12/31/04 - 3,635,290 3,635,290 0% 10,059,849 36.14%
12/31/03 - 3,692,247 3,692,247 0% 9,541,292 38.70%

12/31/02 - 3,465,738 3,465,738 0% 9,114,012 38.03%
12/31/01 - 3,309,408 3,309,408 0% 8,934,471 37.04%
Annual
Required Amount Percentage
Year Ended Contribution Contributed of ARC
June 30
(ARC) By Employer Contributed
2008 417,313$ 357,326$ 85.63%
2007 430,329 330,818 76.88%
2006 418,975 323,574 77.23%
Notes to the Required Schedules:
The information presented above was determined as part of the actuarial valuation at the dates indicated.
Additional information as of the latest valuation follows:
Valuation date 12/31/2006
Actuarial cost method Projected unit credit
Amortization method Level percent of pay closed
Remaining amortization period 24 years
Asset valuation method Market value
Actuarial assumptions:
Investment rate of return * 7.25% * Includes inflation at 3.75%
Projected salary increases * 4.5 - 12.3%
Cost of living adjustments N/A
Schedule of Employer Contributions
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Schedule 1.B
GASTON COUNTY, NORTH CAROLINA
OTHER POST-EMPLOYMENT BENEFITS
REQUIRED SUPPLEMENTARY INFORMATION

JUNE 30, 2008
Actuarial
Accrued UAAL as a
Actuarial
L
iabilit
y
(AAL)
-
Unfunded Percentage
Actuarial Value of Projected Unit AAL Funded Covered Covered
Valuation Assets Credit (UAAL) Ratio Payroll Payroll
Date
A B B - A A / B C (B - A) /C
12/31/05 -$ 47,921,142$ 47,921,142$ 0.00% 48,058,366$ 99.7%
12/31/07 - 56,907,997 56,907,997 0.00% 56,177,617 101.3%
Annual
Required Percentage
Year Ended Contribution of ARC
June 30
(ARC) Contributed
2008 6,291,340$ 0.00%
Notes to the Required Schedules:
The information presented above was determined as part of the actuarial valuation at the dates indicated.
Additional information as of the latest valuation follows:
Valuation date 12/31/2007
Actuarial cost method Projected unit credit
Amortization method Level percent of pay closed
Remaining amortization period 28 years
Asset valuation method Market value

Actuarial assumptions:
Investment rate of return * 4.00% * Includes inflation at 3.75%
Medical cost trend rate 5% - 11%
Year of Ultimate trend rate 2016
Schedule of Employer Contributions
Schedule of Funding Progress
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GENERAL FUND


The General Fund accounts for resources traditionally associated
with government that is not required to be accounted for in other
funds.



PUBLIC ASSISTANCE FUND


The Public Assistance Special Revenue Fund is used to account
for the activities of the Department of Social Services. The
transactions include proceeds of specific revenue sources (other
than special assessments, expendable trusts, or major capital

projects) that are legally restricted to expenditures for specified
purposes.


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Schedule 2
Page 1 of 15
GASTON COUNTY, NORTH CAROLINA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2008
WITH COMPARATIVE ACTUAL AMOUNTS FROM JUNE 30, 2007
2007
Final Variance
Budget
Actual Over/Under Actual
Revenues:
Ad Valorem Taxes:
Taxes 115,495,905$ 118,429,784$ 2,933,879$ 110,853,027$
Penalties and interest
1,227,000

1,112,033 (114,967) 1,274,128
Total
116,722,905
119,541,817 2,818,912 112,127,155
Other Taxes and Licenses:
One-cent tax 12,506,533 14,221,066 1,714,533 13,372,515
Half-cent sales tax 24,582,910 25,199,446 616,536 24,557,101
Real estate transfer taxes 1,100,000 903,780 (196,220) 1,119,318
Hotel occupancy tax 377,838 564,694 186,856 507,257
Gross receipts tax
-
- - (305)
Total
38,567,281
40,888,986 2,321,705 39,555,886
Restricted Intergovernmental Revenues:
Federal grants 438,563 431,543 (7,020) 199,421
State grants 2,906,874 3,289,579 382,705 3,083,564
State prisoner detention reimbursements 1,500,000 1,192,490 (307,510) 1,241,803
Federal prisoner detention reimbursements 300,000 635,922 335,922 379,036
Court facilities fees
435,000
479,926 44,926 451,897
Total
5,580,437
6,029,460 449,023 5,355,721
Fees, Licenses, and Permits:
Inspection fees 1,667,210 1,454,277 (212,933) 1,805,811
Register of Deeds' fees 1,389,914 1,238,535 (151,379) 1,423,796
DWI license revocations - 19,252 19,252 23,503

Other
718,041
1,095,582 377,541 751,031
Total
3,775,165
3,807,646 32,481 4,004,141
Sales and Services:
Medical transport fees 6,091,198 6,221,446 130,248 6,129,280
Library fees 59,862 66,601 6,739 67,759
Jail fees 210,000 217,989 7,989 197,134
Animal shelter fees 619,891 768,772 148,881 767,693
Municipal election fees 141,000 76,060 (64,940) 3,844
2008
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Schedule 2
Page 2 of 15
GASTON COUNTY, NORTH CAROLINA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2008
WITH COMPARATIVE ACTUAL AMOUNTS FROM JUNE 30, 2007
2007
Final Variance
Budget
Actual Over/Under Actual
2008
Central transportation fees 218,000 194,106 (23,894) 224,070

Recreation fees 20,149 101,892 81,743 80,710
Personal health fees 1,866,911 1,814,848 (52,063) 1,472,276
Environmental health fees 283,650 265,185 (18,465) 275,873
Family planning fees 626,940 547,791 (79,149) 564,725
Maternal and child health fees 4,177,069 3,924,745 (252,324) 3,542,512
Primary care fees 2,980 2,717 (263) 2,746
Gaston Family Health Service fees 4,877,306 3,430,020 (1,447,286) 4,261,968
Gynecological clinic fees 103,335 84,093 (19,242) 85,052
Gaston Medical 21,651 - (21,651) 21,651
Tap fees 213,000 118,435 (94,565) 216,458
Bessemer City public safety agreement 335,528 335,528 - 310,000
Miscellaneous
613,136
693,556 80,420 648,145
Total
20,481,606
18,863,784 (1,617,822) 18,871,896
Investment Earnings
1,003,932
2,106,685 1,102,753 2,482,778
Miscellaneous Revenues:
Sales of surplus property 20,000 346,604 326,604 38,948
Insurance settlements - 168,074 168,074 -
Other
255,918
1,084,176 828,258 672,845
Total
275,918
1,598,854 1,322,936 711,793
Total revenues

186,407,244
192,837,232 6,429,988 183,109,370
Expenditures:
General Government:
County Commissioners:
Salaries and employee benefits 280,925 274,536 6,389 256,847
Operating expenditures
312,155
215,251 96,904 194,442
Total
593,080
489,787 103,293 451,289
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