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					       City of Jacksonville
    North Carolina



  Comprehensive Annual
       Financial Report
For The Fiscal Year Ended June 30, 2000




                Prepared By
        FINANCE DEPARTMENT

              Finance Director
           DEBRA H. BAILEY
INTRODUCTORY SECTION


 * Table of Contents

 * Letter of Transmittal

 * Certificate of Achievement for Excellence
   in Financial Reporting

 * City of Jacksonville - Organizational Chart

 * City of Jacksonville - List of Principal Officials
                           City of Jacksonville, North Carolina
                         Comprehensive Annual Financial Report
                         For the Fiscal Year Ended June 30, 2000

                                    Table of Contents

                                                                   Exhibit   Page
                                                                   Number    Number
INTRODUCTORY SECTION

 Letter of Transmittal                                                       1

 Certificate of Achievement for Excellence in
  Financial Reporting                                                        10

 Organizational Chart                                                        11

 List of Principal Officials                                                 12

FINANCIAL SECTION

 Report of Independent Auditors                                              14

 General Purpose Financial Statements:

    Combined Balance Sheet - All Fund Types and
    Account Groups                                                 A         17

    Combined Statement of Revenues, Expenditures,
    and Changes in Fund Balances - All Governmental
    Fund Types                                                     B         21

    Combined Statement of Revenues, Expenditures,
    and Changes in Fund Balances-Budget and Actual -
    General Fund                                                   C         22

    Combined Statement of Revenues, Expenses, and
    Changes in Retained Earnings/Fund Balances -
    All Proprietary Fund Types and Similar Trust Fund              D         23

    Combined Statement of Cash Flows - All Proprietary
    Fund Types and Nonexpendable Trust Fund                        E         24

    Law Enforcement Officers' Special Separation Allowance
    Statement of Changes in Plan Net Assets                        F         26
                                                             Statement/
                                                             Schedule     Page
                                                             Number       Number


    Notes to the Financial Statements                                     27

Required Supplemental Financial Data:

    Law Enforcement Officers' Special Separation Allowance
    Schedule of Funding Progress                             F-1          53

    Law Enforcement Officers' Special Separation Allowance
    Schedule of Employer Contributions                       F-2          54

Other Supplemental Financial Data:

  General Fund:

    Comparative Balance Sheets                               1            56

    Statement of Revenues, Expenditures, and Changes
    in Fund Balances - Budget and Actual                     2            57

  Special Revenue Funds:

    Combining Balance Sheet                                  3            65

    Combining Statement of Revenues, Expenditures and
    Changes in Fund Balances                                 4            67

    Community Development Grant Project Schedule of
    Revenues, Expenditures, and Changes in Fund
    Balances - Budget and Actual                             5            69

    Law Enforcement Block Grant Project Schedule of
    Revenues, Expenditures, and Changes in Fund
    Balances - Budget and Actual                             6            71

    COPS Grant Project Schedule of
    Revenues, Expenditures, and Changes in Fund
    Balances - Budget and Actual                             7            72

    School Resource Officer Program Grant Project
    Schedule of Revenues, Expenditures, and
    Changes in Fund Balances - Budget and Actual             8            73
                                                               Statement/
                                                               Schedule     Page
                                                               Number       Number

   E-911 Project Schedule of Revenues, Expenditures, and
   Changes in Fund Balances - Budget and Actual                9            74

   Highway Safety Grant Project Schedule of
   Revenues, Expenditures, and Changes in Fund
   Balances - Budget and Actual                                10           75

   HUD Disaster Recovery Grant Project
   Schedule of Revenues, Expenditures, and
   Changes in Fund Balances - Budget and Actual                11           76

   Affordable Home Ownership Grant Project Schedule of
   Revenues, Expenditures, and Changes in Fund
   Balances - Budget and Actual                                12           77

   Lead Base Paint Grant Project Schedule of
   Revenues, Expenditures, and Changes in Fund
   Balances - Budget and Actual                                13           78

   Emergency Relief Grant Project Schedule of
   Revenues, Expenditures, and Changes in Fund
   Balances - Budget and Actual                                14           79

Capital Project Funds:

   Combining Balance Sheet                                     15           83

   Combining Statement of Revenues, Expenditures and
   Changes in Fund Balances                                    16           87

   Northeast Creek Park Phase II Fund - Schedule of Revenues
   Expenditures, and Changes in Fund Balances -
   Budget and Actual                                           17           91

   Multi-Purpose Community Recreation Complex Fund -
   Schedule of Revenues, Expenditures, and Changes in
   Fund Balances - Budget and Actual                           18           92
                                                         Statement/
                                                         Schedule     Page
                                                         Number       Number

Street Improvements Fund - Schedule of Revenues,
Expenditures and Changes in Fund Balances -
Budget and Actual                                        19           93

Fire Station #4 - Schedule of Revenues,
Expenditures, and Changes in Fund Balances -
Budget and Actual                                        20           94

Trails and Greenways Fund - Schedule of Revenues,
Expenditures, and Changes in Fund Balances -
Budget and Actual                                        21           95

Demolition Fund - Schedule of Revenues,
Expenditures, and Changes in Fund Balances -
Budget and Actual                                        22           96

Country Club Park Fund - Schedule of Revenues,
Expenditures, and Changes in Fund Balances -
Budget and Actual                                        23           97

Richard Ray All America Park Fund - Schedule of
Revenues, Expenditures, and Changes in Fund Balances -
Budget and Actual                                        24           98

Memorial Garden Fund - Schedule of Revenues,
Expenditures, and Changes in Fund Balances -
Budget and Actual                                        25           99

Downtown Trail Fund - Schedule of Revenues,
Expenditures, and Changes in Fund Balances -
Budget and Actual                                        26           100

Chaney Creek Power Line Trail Fund - Schedule
of Revenues, Expenditures, and Changes in Fund
Balances - Budget and Actual                             27           101

Skateboard Park Fund - Schedule of Revenues,
Expenditures, and Changes in Fund Balances -
Budget and Actual                                        28           102

Kerr Street Park Fund - Schedule of Revenues,
Expenditures, and Changes in Fund Balances -
Budget and Actual                                        29           103
                                                Statement/
                                                Schedule     Page
                                                Number       Number

Wilson Bay Park Phase I Fund - Schedule of
Revenues, Expenditures, and Changes in Fund
Balances - Budget and Actual                    30           104

Northeast Creek Park Phase II Fund - Schedule
of Revenues, Expenditures, and Changes in
Fund Balances - Budget and Actual               31           105

Woodlands Park Fund - Schedule of Revenues,
Expenditures, and Changes in Fund Balances -
Budget and Actual                               32           106

Civic Facility Fund - Schedule of Revenues,
Expenditures, and Changes in Fund Balances -
Budget and Actual                               33           107

Downtown Riverfront Development Fund –
Schedule of Revenues, Expenditures, and
Changes in Fund Balances - Budget and Actual    34           108

Sunset/Country Club Annexation Fund –
Schedule of Revenues, Expenditures, and
Changes in Fund Balances - Budget and Actual    35           109

Rails to Trails Fund - Schedule of Revenues,
Expenditures, and Changes in Fund Balances -
Budget and Actual                               36           110

Northwoods Playground Fund - Schedule of
Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual                    37           111

Local Government Complex Fund – Schedule
of Revenues, Expenditures, and Changes in
Fund Balances - Budget and Actual               38           112

Sturgeon City Fund – Schedule
of Revenues, Expenditures, and Changes in
Fund Balances - Budget and Actual               39           113

City Compost Fund – Schedule
of Revenues, Expenditures, and Changes in
Fund Balances - Budget and Actual               40           114
                                                        Statement/
                                                        Schedule     Page
                                                        Number       Number

   Citywide Landscaping Fund – Schedule
   of Revenues, Expenditures, and Changes in
   Fund Balances - Budget and Actual                    41           115

   Jacksonville Business Park Fund – Schedule
   of Revenues, Expenditures, and Changes in
   Fund Balances - Budget and Actual                    42           116

   Capital Reserve Fund - Schedule of Revenues,
   Expenditures, and Changes in Fund Balances -
   Budget and Actual                                    43           117

Enterprise Funds:

   Combining Balance Sheet                              44           119

   Combining Statement of Revenues, Expenses,
   and Changes in Retained Earnings                     45           120

   Combining Statement of Cash Flows                    46           121

   Water and Sewer Fund - Schedule of Revenues and
   Expenditures - Budget and Actual (Non-GAAP)          47           123

   Solid Waste Fund - Schedule of Revenues
   and Expenditures - Budget and Actual (Non-GAAP)      48           126

   Water Capital Projects Fund - Schedule of Revenues
   and Expenditures - Budget and Actual (Non-GAAP)      49           127

   Sewer Capital Projects Fund - Schedule of Revenues
   and Expenditures - Budget and Actual (Non-GAAP)      50           128

   Water and Sewer Capital Reserve Fund - Schedule of
   Revenues and Expenditures - Budget and Actual
   (Non-GAAP)                                           51           129
                                                           Statement/
                                                           Schedule     Page
                                                           Number       Number

Internal Service Funds:

   Combining Balance Sheet                                 52           131

   Combining Statement of Revenues, Expenses, and
   Changes in Retained Earnings                            53           132

   Combining Statement of Cash Flows                       54           133

   Fleet Maintenance Fund - Schedule of Revenues and
   Expenditures - Budget and Actual (Non-GAAP)             55           134

   City Hall Maintenance Fund - Schedule of Revenues
   and Expenditures - Budget and Actual (Non-GAAP)         56           135

   Management Information Systems Fund - Schedule of
   Revenues Expenditures - Budget and Actual (Non-GAAP)    57           136

   Management Information Systems Capital Project Fund -
   Schedule of Revenues and Expenditures - Budget and
   Actual (Non-GAAP)                                       58           137

Trust and Agency Funds:

   Combining Balance Sheet                                 59           139

   Statement of Revenues, Expenses and Changes in
   Fund Balances - Nonexpendable Trust Funds               60           140
                                                        Statement/
                                                        Schedule     Page
                                                        Number       Number

General Fixed Assets Account Group:

   Comparative Schedules of General Fixed Assets -
   By Source                                            61           142

   Schedule of General Fixed Assets - By Function and
   Activity                                             62           143

   Schedule of Changes in General Fixed Assets - By
   Function and Activity                                63           145

Additional Financial Data:

   Schedule of Cash and Investment Balances             64           147

   Schedule of Ad Valorem Taxes Receivable              65           148

   Analysis of Current Tax Levy                         66           149
                                                                   Table    Page
                                                                   Number   Number

STATISTICAL SECTION

    General Governmental Expenditures by Function                  1        151

    General Governmental Revenues by Source                        2        151

    Property Tax Levies and Collections                            3        153

    Assessed Value of Taxable Property                             4        153

    Property Tax Rates - Direct and All Overlapping Governments    5        154

    Ratio of Net General Bonded Debt to Assessed Value and
    Net Bonded Debt Per Capita                                     6        155

    Computation of Legal Debt Margin                               7        155

    Ratio of Annual Debt Service Expenditures for General
    Bonded Debt to Total General Governmental Expenditures         8        156

    Computation of Direct and Overlapping Debt                     9        157

    Demographic Statistics                                         10       157

    Analysis of General Fund Balance                               11       158

    Analysis of General Fund Balance as a Percentage of
    Expenditures                                                   12       158

    Calculation of Debt Service Coverage - Water and Sewer Bonds   13       159

    Property Value, Construction, and Bank Deposits                14       159

    Schedule of Ten Largest Taxpayers                              15       161

    Schedule of Insurance in Force                                 16       162

    Miscellaneous Statistics                                       17       163
                                                                     Page
                                                                     Number

COMPLIANCE SECTION

    Independent Auditor’s Report on Compliance and on
    Internal Control over Financial Reporting Based on an
    Audit of Financial Statements Performed in accordance
     with Government Auditing Standards                              164

    Independent Auditor’s Report on Compliance with
    Requirements Applicable to Each Major Federal Program
    and Internal Control Over Compliance in Accordance with
    OMB Circular A-133 and the State Single Audit Implementation
    Act                                                              166

    Independent Auditor’s Report on Compliance with
    Requirements Applicable to Each Major State Program
    and Internal Control Over Compliance in Accordance with
    applicable sections of OMB Circular A-133 and the State Single
    Audit Implementation Act                                         168

    Schedule of Findings and Questioned Costs                        170

    Corrective Action Plan                                           173

    Summary Schedule of Prior Year Audit Findings                    174

    Schedule of Expenditures of Federal and State Awards             175
LETTER OF TRANSMITTAL


Honorable Mayor and Members of the City Council
Jacksonville, North Carolina

September 25, 2000

         We are pleased to present the comprehensive annual financial report of the City of Jacksonville
for the fiscal year ended June 30, 2000. The general purpose financial statements contained herein have
been audited by the independent certified public accounting firm of McGladrey & Pullen, LLP, and their
unqualified opinion is included in the financial section. This report has been prepared by the City, which
is responsible for both the accuracy of the data and the completeness and fairness of the presentation
including all disclosures. We believe the data is accurate in all material respects and is shown in a
manner designed to present fairly the financial position and results of operations of the various funds and
account groups of the City. All disclosures necessary to enable the reader to gain the maximum
understanding of the City's financial affairs have been included.

         The comprehensive annual financial report is presented in four sections: introductory, financial,
statistical, and compliance. The introductory section includes this transmittal letter, the government's
organizational chart, and a list of principal officials. The financial section includes the general purpose
financial statements and the combining and individual fund and account group financial statements and
schedules, as well as the auditors' report on the financial statements and schedules. The statistical section
includes selected financial and demographic information, much of which is presented on a multi- year
basis. Finally, the compliance section presents reports and schedules required by the Federal and State
Single Audit Act.

         The City is required to undergo an annual single audit in conformity with the provisions of the
Single Audit Act of 1984 and U.S. Office of Management and Budget Circular A-133, Audits of State
and Local Governments. Information related to this single audit, including the schedule of Federal and
State financial assistance, findings and recommendations, and auditors' reports on the internal control
structure and compliance, are included in the single audit section of this report.

        This report includes all funds and account groups of the City. The City provides a full range of
services. These services include police and fire protection, sanitation, the construction and maintenance
of streets, community development, planning and zoning, and parks and recreation. In addition to
general governmental activities, the City owns and operates a water and sewer system and separately
accounts for solid waste disposal costs; therefore, these latter activities are included in the reporting
entity.
ECONOMIC CONDITION AND OUTLOOK

         Jacksonville is located along the New River in Onslow County, which is in the southeastern part
of the State. Jacksonville, the county seat, is home of the Marine Corps Base, Camp Lejeune, and the
Marine Corps New River Air Station. The City is less than an hour away from two major seaports
(Wilmington and Morehead City) where large quantities of raw and finished products are exported and
imported. Flight service is provided through Albert J. Ellis Airport which is the 7th busiest airport in the
State. The City is easily accessed by US 258, I-40, NC 24 and US 17, which runs north and south along
the Atlantic coast. The community currently has a 3.8 percent unemployment rate as compared to a
statewide rate of 3.5 percent and a national average of 4.0 percent. The City annexed Camp Lejeune in
1990, resulting in an increased City population of approximately 46,435. In July 1999, the N.C. Office
of State Planning adjusted our population for decreases in Camp Lejeune barracks for a total population
of 73,988, making Jacksonville the tenth largest City in North Carolina.

        The City is governed by the Council-Manager form of government and has been since 1953. The
City Council consists of a mayor and six council members. Two councilmen and the mayor are elected-
at-large and four councilmen are elected by district for two year terms. The Mayor and Council make
appointments to various boards and commissions. Council appoints the City Manager and City Attorney.
 The City Manager serves as Chief Executive Officer and is responsible for enforcement of laws and
ordinances, delivery of services, planning and budgetary management.

       The City has been fortunate to continue experiencing conservative growth. Overall the value of
new construction was $49.6 million. The construction of department stores, apartments, residential
developments and office complexes is consistent with construction in previous years.

        All indications are that economic growth will continue to increase. While having a positive
impact, this growth also presents significant challenges for the City. If the present high level of services
is to be maintained, the City, in the future, will need to explore new methods of obtaining financial
resources.


MAJOR INITIATIVES

        FOR THE YEAR. In addition to day-to-day operations and on-going major projects, the City
faced some new challenges and initiated several major programs.

■   Onslow Water and Sewer Authority – The City in conjunction with Onslow County is forming
    the Onslow Water and Sewer Authority and all the final documents were submitted to Raleigh to
    get the final approvals. This will set up the mechanism for county-wide sewer with all interested
    parties at the table including the Camp Lejeune Marine Corps Base.

■   Sturgeon City Student Leadership Development Institute - Fifty-seven students became the
    first Fellows of the Institute during July 1999. Another 80 students participated during June
    2000. The Students learned leadership, self-esteem, civics, volunteer and meeting skills. The
    Institute is a direct result of the goal of helping to make leaving Jacksonville an option rather
    than a requirement after education.

■   Jacksonville-Onslow Sports Commission – Staffing was completed for the Sports Commission.
     The first director was hired and the City worked to help recruit a minor league football team to

                                                     2
    the area and assist a major bowling tournament that has produced about $10 million dollars in
    new funds within the area. The Sports Commission also assisted with a summer baseball
    tournament.

■   “R U OK” – Pronounced “Are You OK,” was implemented to provide telephonic ability to
    check on our senior citizens each day by automatically dialing their phone number at a specified
    time of day. If no one answers, a subsequent call is automatically made. If there is no response
    to that call, an officer is dispatched to check on the welfare of the citizen.

■   Country Club/Sunset Annexation – The subdivisions of Country Club Acres and Sunset Acres
    were annexed effective December 31, 1999. The City will begin installing sewer to this area
    over the next two years.

■   SafePlaces Program - In cooperation with the Jacksonville-Onslow Volunteer Center, the
    Onslow Youth Services Department and the City Fire Department, the first SafePlaces were
    established in the City of Jacksonville. Each fire station has been designated and staff were
    trained to help youth in trouble find solutions. Volunteers pick up the youth from the fire station
    and take them to Youth Services Department where they work with trained counselors. Several
    youth in trouble have been helped since the January kick-off of the program.

         FOR THE FUTURE. The Citizens of Jacksonville can look forward to continued improvement
in the quality of life and atmosphere of the City. Environmental clean-up and recreation are focal points
in many of the projects for the coming year.

■   Sturgeon City - Council has set aside $4M for this project. This initiative encompasses many
    different facets that are very exciting and project a very positive image of the real Jacksonville of
    the future. The project encompasses Ecosystem Restoration, Brownfield review of site, Wilson
    Bay initiative involving clean up and planting of bivalves, LWCF Recreation Grant for
    recreational development, Wetlands Restoration, and development of the concept of Sturgeon
    City.

■   Wilson Bay Initiative - New evidence of life has been found in Wilson Bay. The effort to plant
    shellfish to help cleanse the water column of the Bay has won much praise and has resulted in an
    exceptionally successful environmental volunteerism effort. More than 40,000 oysters were
    planted in the Bay this spring with more to follow this summer. Their effect has produced
    cleaner water. In addition, a three-month test of using aerators to help speed recovery of the
    bottom of the Bay is underway. Work is also progressing on long-term practices that would
    lessen the effects of runoff into the Bay.

■   Downtown Redevelopment – The City anticipates beginning the first phase of downtown
    redevelopment in fall of 2000. The first project is the Linear Parkway, a trail which will start at
    the old train depot and end at the waterfront. The plan calls for one-way roads on each side of a
    wide median which will be developed into a park, with benches and decorative lighting, and
    pedestrian/bicycle trails.

■   City Landscape Master Plan – The City is working to develop a City Landscape Master Plan.
    The City and landscape design representatives have been aggressively working on this project
    and are in the final stages of the design. A draft plan will be presented in August 2000.

■   Park and Recreation Initiatives – Several projects have been completed, such as improvements
    to Northwoods Parks Playground, Woodlands Park, and Kerr Street Park, as well as the new

                                                     3
    projects for Chaney Creek Power Line Trail and Skateboard Park. Northeast Creek Park Phase
    II and Wilson Bay Park Phase I are very near completion and the Richard Ray All American Park
    is under design. In addition, several new projects will be undertaken to improve or establish
    recreational facilities throughout the City.

       DEPARTMENT FOCUS. Each year the City selects a department to highlight for its efforts
and accomplishments. In 2000, the Finance Department has been selected for review.

        The mission of the Finance Department is “Manage City funds in accordance with the Local
Government Budget and Fiscal Control Act, applicable State and Federal regulations, and sound
principles of accounting and cash management.” This mission is vital to ensuring the City is fiscally
sound and financially prepared for the challenges that a growing community faces. Finance is a service
department that provides cash and asset management, accounts payable and purchasing, customer billing
and collections, contract review and grant monitoring, and budgeting services to the City.

CASH AND ASSET MANAGEMENT – The Finance Department invests City funds with the goal of
obtaining the best possible return on investment while minimizing risks. Our current cash and
investment portfolio is valued at $30.8 million and earned more than $1.6 million in interest or a rate of
return of 5.8%. This investment interest helps to fund City operations thereby helping to reduce the need
for a tax rate increase.

REIMBURSEMENT FROM FEMA FOR HURRICANE DAMAGE – For the past four years, Eastern
North Carolina has been dubbed "Hurricane Alley" due to hurricanes making landfall on the North
Carolina coast each year. A large portion of the Finance Department's time has been focused on the
reimbursement effort from the Federal Emergency Management Agency (FEMA).

Major efforts for reimbursement from FEMA this year were for Hurricanes Dennis and Floyd. The
Finance staff processed all the paperwork internally versus contracting with an outside agency in another
cost-saving effort. The department generated forms and processes to organize the massive amount of
paperwork required by FEMA which are now being used as an example for other cities to follow. The
City has incurred expenses in excess of $3 million from the past four hurricanes and has recovered over
$2.3 million (77%) from FEMA to date. We will continue to work diligently to recover as many funds
as possible to ensure a minimal burden on the City's taxpayers.

ACCOUNTS PAYABLE AND PURCHASING – The Accounts Payable division ensures that all
invoices are paid promptly and in accordance with local and state laws and regulations. The City uses
competitive bidding for all purchases. This division reviews all requisitions and price quotes to ensure
the City gets the best price available. Another responsibility of this division is to confirm local vendors
availability during emergencies. This ensures that Public Safety and Public Works have the materials
they need to protect citizens' lives and property during hurricanes.

CUSTOMER BILLING AND COLLECTIONS – This division processes over 12,000 water utility bills
and 3,000 accounts receivable bills monthly, as well as 3,500 privilege license renewals yearly.

The Collections division currently offers various payment options to the customers including the recently
implemented online payment option. This option allows the customer to visit the City's website and pay
their water utility bill by using a major credit card 24 hours a day, 7 days a week.

The newest challenge for this division is investigating centralized payments, where the customer can pay
all their utility bills from various vendors (cable, telephone, gas) on the City's website or in person at the
City office.


                                                      4
 GRANT MONITORING - The Finance Department is also responsible for complying with the eligibility
 requirements to ensure reimbursement from grants. Various departments apply for grant revenue from
 federal, state and local agencies to help defer the cost of programs and activities. The Finance
 Department does the reporting of expenses and compliance with grant requirements to the various grant
 agencies to ensure maximum revenue is realized in a timely manner. During the fiscal year, we
 administered 41 grants, fifteen of which were completed as of June 30, 2000, leaving 26 active grants in
 areas ranging from public safety to recreation. In addition, four grants are pending approval. They are
 the Gang Resistance Education and Training Grant, Land and Water Conservation Fund Grant, the
 Northeast Creek Water Access Grant, and the Sunset Acres/Country Club Acres Annexation
 (Water/Sewer) Grant.

 BUDGETING - To help the departments prepare for the annual budget process, our staff is responsible
 for compiling the necessary data which includes: the Budget Manual, new personnel information,
 supplemental programs and equipment forms, full-year estimate worksheets, and capital improvement
 summaries. The Finance Department is responsible for preparing the Final Budget Document that is
 ultimately forwarded to the Mayor and Council. In addition to budget preparation the Department is
 responsible for preparing and recording all budget amendments, both administrative and legislative, to
 the original budget.

 As evidenced later in this report the Finance Department and the City has received the Certificate of
 Achievement for Excellence in Financial Reporting from the Government Finance Officers Association
 of the United States and Canada for nine consecutive years. The certificate is the HIGHEST form of
 recognition in governmental accounting and financial reporting. This award is given to municipalities
 and government agencies that produce an easily readable and efficiently organized Comprehensive
 Annual Financial Report (CAFR), that conforms to program standards and satisfies generally accepted
 accounting principles and applicable legal requirements.



FINANCIAL INFORMATION

        Management of the City is responsible for establishing and maintaining an internal control structure
designed to ensure that the assets of the City are protected from loss, theft or misuse and to ensure that
adequate accounting data are compiled to allow for the preparation of financial statements in conformity
with generally accepted accounting principles. The internal control structure is designed to provide
reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance
recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the
valuation of costs and benefits requires estimates and judgments by management.

        All internal control evaluations occur within the above framework. We believe the City's internal
accounting controls adequately safeguard assets and provide reasonable assurance of proper recording of
financial transactions.

        Single Audit. As a recipient of federal and state awards, the City is also responsible for
ensuring that an adequate internal control system is in place to ensure compliance with applicable laws and
regulations related to those programs. The internal control system is evaluated periodically by management
to achieve these objectives.

        As a part of the City's single audit, described earlier, tests are made to determine the adequacy of
internal control, including that portion related to federal and state award programs, as well as to determine


                                                     5
that the government has complied with applicable laws and regulations. The results of the government's
single audit for the fiscal year ended June 30, 2000 provided no instances of material weakness in internal
control and no material instances of noncompliance with applicable laws and regulations.

       Budgeting Controls. In accordance with state law, the City's budget is prepared on the
modified accrual basis, and its accounting records are also maintained on that basis. Under modified accrual
accounting, revenues are recorded when they are both measurable and available. Expenditures are recorded
when a liability is incurred, except for interest on long-term debt and accrued vacation benefits.
Governmental fund types, such as the City's General Fund, Special Revenue Funds and Capital Project
Funds are reported on the modified accrual basis. The City's Enterprise Funds, Internal Service Funds,
Pension Trust Fund, and Revolving Loan Nonexpendable Trust Fund are reported on the accrual basis,
under which revenues are recorded when earned and expenses are recorded when incurred.

         The objective of these budgetary controls is to ensure compliance with legal provisions embodied in
the annual appropriated budget approved by the City's governing body. Activities of the General Fund and
Enterprise Funds are included in the annual appropriated budget. Project-length financial plans are adopted
for the Special Revenue Fund and Capital Projects Fund. The level of budgetary control (that is, the level at
which expenditures cannot legally exceed the appropriated amount) is established by functional level within
an individual fund, except for the Capital Projects Fund which is the fund level. The City Manager is
authorized by the budget ordinance to transfer appropriations between department levels within a fund up to
$5,000; however any revisions that exceed $5,000 at the functional level of the General Fund, Special
Revenue Fund, Enterprise Funds and the fund level of the Capital Projects Funds or revisions that alter total
 expenditures of any fund must be approved by the City Council. For internal accounting purposes,
budgetary control is maintained by object class (line item account). The City also maintains an
encumbrance accounting system as one technique of accomplishing budgetary control. Purchase orders that
would create an over encumbrance are not written until additional appropriations are available. Encumbered
amounts lapse at year end, except for encumbrances outstanding at June 30, 2000, which are reported as
reservations of fund balances.

        As demonstrated by the statements and schedules included in the financial section of this report, the
City continues to meet its responsibility for sound financial management. The following paragraphs analyze
the activities of the City's major funds. General Fund revenues totaled $23,638,942, a decrease
of .05 percent from the prior year. Revenues by source were as follows:
                                                                                         Percent
                                                            Percent        Increase    of Increase
           Revenue                         Amount           of Total      (Decrease)    (Decrease)
                                        ────────────        ───────      ────────────   ──────────
   Ad valorem taxes                     $ 8,204,862           34.71      $    315,873         4.00
   Other taxes and licenses                9,066,849          38.35           (79,057)       (0.86)
   Intergovernmental                       4,781,246          20.23          (157,347)       (3.19)
   Licenses, permits & fees                  460,378           1.95            52,957        13.00
   Sales and services                        285,138           1.21            21,858         8.30
   Investment earnings                       610,060           2.58          (138,294)      (18.48)
   Miscellaneous                             230,409            .97           (27,328)      (10.60)
                                        ────────────        ───────      ────────────   ──────────
   Totals                               $ 23,638,942         100.00      $    (11,338)        0.05
                                        ════════════        ═══════      ════════════   ══════════

         Ad valorem taxes continued to represent a major revenue source providing 34.71% of total revenues.
Current collections remain high at 96.8%, and the City's tax rate of $0.623 per $100 is well below the State's
legal limit of $1.50. Additional information concerning tax collection activity can be found in the statistical
section of this report.


                                                     6
         Other taxes and licenses provided 38.35% of total revenues and are comprised of local option sales
taxes, intangibles tax, privilege license taxes and cable TV franchise taxes. Privilege licenses and local
option sales taxes accounted for the growth in this revenue source in the past year, a reflection of increased
economic activity in the City.

       Intergovernmental revenues provided 20.23% of total revenues. The utility franchise tax and the
Powell Bill street aid allocation represent 73.83% of this category. Increasing pressure to reduce costs of
government at all levels will intensify management's search for creative revenue sources at the local level.

        The 18.48% decrease in investment earnings revenue is due to a much lower increase in the market
value of zero coupon bonds in FY 2000 than in FY 1999. The 10.60% decrease in miscellaneous revenue is
due to a lower occurrence of insurance claims from which the City was entitled to receive insurance
proceeds.

       General Fund expenditures were $22,106,659, up 11.04% over the preceding year. Broken down by
major function, expenditures were as follows:
                                                                                       Percent
                                                         Percent     Increase        of Increase
            Expenditures       Amount                   of Total     (Decrease)      (Decrease)
                             ───────────                ────────   ───────────        ────────
     General government      $ 5,385,533                   24.36   $   200,074            3.86
     Public works              3,322,706                   15.03       409,101           14.04
     Public safety             9,267,655                   41.92       864,289           10.29
     Environmental protection 2,071,908                     9.37       106,979            5.44
     Culture and recreation    1,062,805                    4.81        99,544           10.33
     Debt service                996,052                    4.51       518,642          108.64
                             ───────────                ────────   ───────────        ────────
       Totals                $22,106,659                  100.00   $ 2,198,629           11.04
                             ═══════════                ════════   ═══════════        ════════

         The 14.04% increase in Public Works expenditures is due to increases in salaries and benefits caused
by adding three new positions and reclassifying nine positions. They also had an increase in capital outlay
for the purchase of several vehicles and equipment.

        The 10.29% increase in Public Safety is due to an increase of maintenance and repair for fire
equipment and an increase in capital outlay expenditures for police vehicles. The police vehicles approved
in the FY 1999 budget were not delivered until FY 2000.

       The 10.33% increase in Cultural and Recreational expenditures is largely due to an increase in
maintenance and repair of buildings and equipment, purchase of needed supplies and an increase of salaries
and benefits due to additional positions.

        The 108.64% increase of debt service expenditures is due to the additional indebtedness related to
the construction of Fire Station #4, purchase of a fire pumper truck, police vehicles and equipment.

        General Fund Balance.                   Fund balance "unreserved/undesignated-available for
appropriation" portion of fund balance represents 19% of expenditures (including operating transfers) which
is consistent with recommendations of audit guidelines of the Local Government Commission. This
provides the City with 84 working days of expenditures.

        Enterprise Operations. The City's enterprise operations are comprised of two separate
and distinct activities: the Water and Sewer System, and Solid Waste Disposal. Charges generated through
water and sewer usage and tap fees increased by $663,684 (8.0 percent) from the preceding year due to an
increase in water customers.

                                                    7
        Fiduciary Fund. The City has a Pension Trust Fund to finance the Law Enforcement
Officers' Special Separation Allowance enacted by the State legislature and effective on January 1, 1987.
An actuarial study determined the funding required by the City to meet its future benefit obligations. At
December 31, 1999, the total estimated actuarial accrued liability was $767,213. One method of assessing
the financial strength of a pension fund is to compute the percentage of the actuarial accrued liability that
has been funded. This percentage at December 31, 1999 is 45.82%.

         Debt Administration. Under current State Statutes, the City's net debt may not exceed 8%
of total assessed value of real and personal property as certified by the county tax assessor. This provision
when compared to the net debt of the City ($3,924,375) is approximately .30 percent, and provides a legal
debt margin of $101,807,870. Debt per capita is $53.

         The long-term debt obligations of the City consist of the following:

                                                                                       Fleet
                                               Water/Sewer    General              Maintenance
                                                   Fund         Fund                   Fund_ _
  Total bonded debt (issued)                   $    100,000 $                      $
  Authorized and unissued bonds                 20,000,000
  Installment purchases                           6,278,072   3,903,475                   20,900
  Loans                                          21,460,953
  Gross issued and unissued debt                47,839,025    3,903,475                   20,900
    Less Authorized and unissued               (20,000,000)           0                        0
  Gross issued debt                            $27,839,025 $ 3,903,475             $      20,900


        The $28 million is being retired with revenues of the Water and Sewer Fund. The $3.9 million of
other debt service requirements of the City are adequately funded and anticipated increases in requirements
have been identified with additional funding already programmed into future annual budgets.

          Cash Management. Cash temporarily idle during the year was invested in obligations of the
U.S. Treasury, and commercial paper. The average yield on investments was 5.80 percent. The rate of
return on the City's investment performance mirrors the average yield rates of 5.70 percent for U.S. Treasury
bills in 2000. The City earned interest revenue of $1,648,224 on all investments for the year ended June 30,
2000.

         The City's investment policy is to minimize credit and market risks while maintaining a competitive
yield on its portfolio. Accordingly, deposits were either insured by federal depository insurance or
collateralized. All collateral on deposits was held either by the City, its agent or a financial institution's trust
department in the City's name. All investments were held in the City's name by the counterparty financial
institution's trust department. All investments held by the City during the year and at June 30, 2000, are
classified in the category of lowest credit risk as defined by the Governmental Accounting Standards Board.

         Risk Management. In recent years changes in the insurance industry have pushed the City out
of the commercial insurance market and into two self-funded risk financing insurance pools administered by
the North Carolina League of Municipalities. These pools provide coverage for property damage, general
liability (including auto and law enforcement officers), and workers' compensation. Employee health and
accident coverage is still provided by a commercial insurer. Major policies and their limits of coverage
include: public officials ($1 million) and law enforcement officers' liability ($2 million), vehicle liability
($2 million), public employee scheduled and blanket bonds ($400,000), boiler and machinery ($5 million),
general liability ($2 million), builders risk ($500,193), municipal, and computer equipment ($1.2 million),
and real and personal property ($78.8 million).

                                                       8
OTHER INFORMATION

        Independent Audit. State statute requires an annual audit by independent certified public
accountants. The accounting firm of McGladrey & Pullen, LLP, was selected by the City Council. In
addition to meeting the requirements set forth in State Statute, the audit also was designed to meet the
requirements of the federal Single Audit Act of 1984 and related OMB Circular A-133. The auditors' report
on the general purpose financial statements and combining and individual fund and account group
statements and schedules is included in the financial section of this report. The auditors' reports related
specifically to the single audit are included in the compliance section.

       Awards. The Government Finance Officers Association of the United States and Canada (GFOA)
awarded a Certificate of Achievement for Excellence in Financial Reporting to the City for its
comprehensive annual financial report (CAFR) for the fiscal year ended June 30, 1999. The Certificate of
Achievement is a prestigious national award recognizing conformance with the highest standards for
preparation of state and local government financial reports.

        In order to be awarded a Certificate of Achievement, a government unit must publish an easily
readable and efficiently organized comprehensive annual financial report, whose contents conform to
program standards. Such CAFR must satisfy both generally accepted accounting principles and applicable
legal requirements.

        A Certificate of Achievement is valid for a period of one year only. The City of Jacksonville has
received a Certificate of Achievement for the last nine consecutive years (fiscal years ended 1990-1991
through 1998-1999). We believe our current report continues to conform to the Certificate of Achievement
program requirements, and we are submitting it to GFOA.

        Acknowledgments. The preparation of the comprehensive annual financial report on a timely
basis was made possible by the dedicated service of the entire staff of the Finance Department, various
department heads and employees who assisted and contributed to its preparation, and our independent
auditors, McGladrey & Pullen, LLP. Each of them has our sincere thanks.

         In closing, without the resources and support furnished by the Mayor and City Council, preparation
of this report would not have been possible.

Sincerely,



J. Michael Moore                                       Debra H. Bailey
City Manager                                           Finance Director




                                                   9
Certificate of Achievement




          10
                            City of Jacksonville Organizational Chart

       Citizens of Jacksonville


       City Council (1)
                                  Attorney

       City Manager

             City Clerk
             Elections

             Public Safety

                                     Police
                                                  E-911
                                     Fire


             Public Services
                                         Streets
                                         General Maintenance
                                         Solid Waste (3)
                                         Engineering
                                         Environmental Protection
                                         City Hall Maintenance (2)
                                         Water Operations (3)
                                         Sewer Operations (3)
              Development Services

                                              Community Development
                                                                              Rental Rehabilitation
                                              Planning
                                                                  Administration
                                                                  Transportation
              Finance                         Inspections

              Human Resources

             Cultural and Recreational
                                              Recreation

             Fleet Maintenance (2)

             Management Information Systems (MIS) (2)

Legend:
(1) Elected Officials
(2) Internal Service Fund
(3) Enterprise Fund




                                                             11
             City of Jacksonville
               List of Principal Officials
                      June 30, 2000

Title                                        Name

Mayor                                        George Jones

Mayor, Pro-tem                               Ron Ellen

Council Member                               Elsie P. Smith

Council Member                               Jerome Willingham

Council Member                               Robert K. Sandy

Council Member                               Horace Mann

Council Member                               Fannie Coleman

City Manager                                 J. Michael Moore

Attorney                                     John T. Carter

City Clerk                                   Carmen K. Miracle

Development Services Director                vacant

Finance Director                             Debra H. Bailey

Fire Chief                                   Richard McIntyre

Human Resources Director                     Connie Hammond

Police Chief                                 Ken Bumgarner

Public Services Director                     vacant

Recreation Director                          Ken Hagan




                           12
FINANCIAL SECTION


* Report of Independent Auditors

* General Purpose Financial Statements
  (Combined Statements - Overview)

* Notes to the Financial Statements

* Required Supplemental Financial Data

* Combining and Individual Fund and Account
  Group - Statements and Schedules

* Additional Financial Data




                    13
Independent Auditors' Report




           14
Independent Auditors' Report (continued)




                 15
      GENERAL PURPOSE
   FINANCIAL STATEMENTS


The General Purpose Financial Statements provide a

summary overview of the financial position of all funds

and account groups as well as the operating results of

all funds. They also serve as a condensed introduction

to the more detailed statements and schedules that follow.




                            16
                                            City of Jacksonville, North Carolina
                                 Combined Balance Sheet - All Fund Types and Account Groups
                                                       June 30, 2000



                                                                                           Proprietary
                                                   Governmental Fund Types                 Fund Types
                                            ────────────────────────────────────     ───────────────────────
                                                           Special    Capital                      Internal
                                               General     Revenue    Projects       Enterprise    Service
                                            ───────────   ───────── ───────────      ─────────── ──────────
Assets and Other Debit

  Cash and investments                      $ 9,435,305   $ 367,455   $ 8,943,121    $ 7,875,481   $   349,939
  Taxes receivable (net)                        551,110
  Accounts receivable (net)                   2,701,420     154,825         62,703     1,297,107
  Notes receivable
  Due from other funds                          153,717       5,748         98,919        13,275         2,253
  Inventories                                     2,119                                  145,366        59,282
  Prepaid items                                   5,400       5,280                                        150
  Restricted assets                             701,797                 2,751,299
  Fixed Assets (net, where applicable,
    of accumulated depreciation)                                                      65,119,782       541,879
  Amount to be provided for the
    retirement of general long-term debt
                                            ───────────   ─────────   ───────────    ───────────   ──────────
  Total assets and other debit              $13,550,868   $ 533,308   $11,856,042    $74,451,011   $ 953,503
                                            ═══════════   ═════════   ═══════════    ═══════════   ══════════


 The accompanying notes are an integral part of the financial statements.




                                                 17
                                                                        Exhibit A




 Fiduciary         Account Groups
 Fund Type    ────────────────────────
──────────      General      General            Totals
                 Fixed      Long-Term        (Memorandum
  Trust         Assets        Debt              Only)
──────────    ───────────   ──────────      ────────────


$   392,702   $                $            $ 27,364,003
                                                 551,110
        860                                    4,216,915
    930,205                                      930,205
     97,031                                      370,943
                                                 206,767
                                                  10,830
                                               3,453,096

                  23,466,226                  89,127,887

                                4,643,138      4,643,138
──────────    ───────────      ──────────   ────────────
$1,420,798    $23,466,226      $4,643,138   $130,874,894
══════════    ═══════════      ══════════   ════════════

                                                           Continued on next page.




                                               18
                                          City of Jacksonville, North Carolina
                               Combined Balance Sheet - All Fund Types and Account Groups
                                                     June 30, 2000



                                                                                                Proprietary
                                                    Governmental Fund Types                     Fund Types
                                              ───────────────────────────────────         ───────────────────────
                                                            Special     Capital                         Internal
                                                General     Revenue     Projects          Enterprise    Service
                                              ─────────── ───────── ───────────           ───────────   ─────────

Liabilities, Equity and Other Credits

  Accounts payable and accrued liabilities   $ 1,333,534    $    67,935   $    119,341    $      550,048    $    27,082
  General obligation bonds payable-current                                                       100,000
  Installment purchases payable-current                                                          497,440          4,463
  Loans payable-current                                                                        1,351,345
  Due to other funds                              116,817       153,717         98,919
  Liabilities payable from
    restricted assets                                                           136,879
  Compensated absences payable                    273,969                                        99,898         17,235
  Customer deposits                                 7,149                                       282,442
  General obligation bonds payable-noncurrent
  Installment purchases payable-noncurrent                                                  5,780,632            16,437
  Loans payable- noncurrent                                                                20,109,608
  Deferred revenues                               773,065                                     130,647
                                              ───────────   ─────────     ───────────     ───────────       ─────────
  Total liabilities                             2,504,534     221,652         355,139      28,902,060          65,217
                                              ───────────   ─────────     ───────────     ───────────       ─────────

Equity and other credits:
  Investment in general fixed assets
  Contributed capital (net)                                                                   22,683,558        319,851
  Retained earnings unreserved                                                                22,865,393        568,435
  Fund balances:
    Reserved by state statute                   2,855,138
    Reserved by grantor
    Reserved for compensating balance              52,000
    Reserved for encumbrances                     519,276       137,407       1,471,774
    Reserved for inventories                        2,119
    Reserved for installment purchase             365,008
    Reserved for Powell Bill                      163,231                     1,735,406
    Reserved for prepaid items                      5,400         5,280
    Reserved for drug enforcement                 106,651
    Reserved for employees' pension
      benefit
    Unreserved:
      Designated for insurance                    322,877
      Designated for subsequent year's
        expenditures                            1,924,332     295,674       8,924,771
      Unreserved, undesignated (deficit)        4,730,302    (126,705)       (631,048)
                                              ───────────   ─────────     ───────────     ───────────      ──────────
    Total equity and other credits             11,046,334     311,656      11,500,903      45,548,951         888,286
                                              ───────────   ─────────     ───────────     ───────────      ──────────
Total liabilities, equity and other credits   $13,550,868   $ 533,308     $11,856,042     $74,451,011      $ 953,503
                                              ═══════════   ═════════     ═══════════     ═══════════      ══════════

The accompanying notes are an integral part of the financial statements.




                                                19
                                                                Exhibit A,
                                                                continued




 Fiduciary            Account Groups
Fund Types      ─────────────────────────
──────────        General       General           Totals
                   Fixed       Long-Term       (Memorandum
  Trust            Assets        Debt             Only)
──────────      ───────────    ──────────      ────────────



$    954,705     $             $               $   3,052,645
                                                     100,000
                                     879,290       1,381,193
                                                   1,351,345
        1,490                                        370,943

                                                      136,879
                                     739,663        1,130,765
                                                      289,591

                                   3,024,185      8,821,254
                                                 20,109,608
                                                    903,712
    ─────────   ───────────    ──────────      ────────────
      956,195                   4,643,138        37,647,935
    ─────────   ───────────    ──────────      ────────────


                 23,466,226                        23,466,226
                                                   23,003,409
                                                   23,433,828

                                                    2,855,138
      118,114                                         118,114
                                                       52,000
                                                    2,128,457
                                                        2,119
                                                      365,008
                                                    1,898,637
                                                       10,680
                                                      106,651

      346,489                                         346,489

                                                      322,877

                                                 11,144,777
                                                  3,972,549
──────────      ───────────    ──────────      ────────────
   464,603       23,466,226                      93,226,959
──────────      ───────────    ──────────      ────────────
$1,420,798      $23,466,226    $4,643,138      $130,874,894
══════════      ═══════════    ══════════      ════════════




                                                      20
                                         City of Jacksonville, North Carolina                    Exhibit B
                       Combined Statement of Revenues, Expenditures and Changes in Fund Balances
                                              All Governmental Fund Types
                                        For the Fiscal Year Ended June 30, 2000




                                                   Governmental Fund Types
                                             ──────────────────────────────────────               Totals
                                                            Special     Capital                (Memorandum
                                               General      Revenue     Projects                   Only)
                                             ───────────   ────────── ────────────             ───────────
Revenues:

  Ad valorem taxes                           $ 8,204,862    $               $                  $ 8,204,862
  Other taxes and licenses                     9,066,849                                         9,066,849
  Unrestricted intergovernmental revenues      2,168,580                                         2,168,580
  Restricted intergovernmental revenues        2,612,666        1,737,315          107,965       4,457,946
  Permits and fees                               460,378                                           460,378
  Sales and services                             285,138                                           285,138
  Investment earnings                            610,060        20,210              544,129      1,174,399
  Miscellaneous                                  230,409       113,426               17,581        361,416
                                             ───────────    ──────────          ───────────    ───────────
    Total revenues                            23,638,942     1,870,951              669,675     26,179,568
                                             ───────────    ──────────          ───────────    ───────────

Expenditures:

Current:
  General government                           5,385,533                                        5,385,533
  Public works                                 3,322,706                                        3,322,706
  Public safety                                9,267,655        1,050,286                      10,317,941
  Environmental protection                     2,071,908                                        2,071,908
  Cultural and recreational                    1,062,805                                        1,062,805
  Economic and physical development                             1,069,552                       1,069,552
  Capital outlay                                                                 2,477,422      2,477,422
Debt service:
  Principal retirement                           828,932                                           828,932
  Interest and fees                              167,120                                           167,120
                                             ───────────    ──────────          ───────────    ───────────
    Total expenditures                        22,106,659     2,119,838            2,477,422     26,703,919
                                             ───────────    ──────────          ───────────    ───────────

    Revenues over (under) expenditures         1,532,283      (248,887)          (1,807,747)      (524,351)
                                             ───────────    ──────────          ───────────    ───────────

Other financing sources (uses):

  Proceeds from borrowing                        685,947                          1,331,866      2,017,813
  Sales of general fixed assets                   93,224                                            93,224
  Operating transfers in                         469,068       265,396            2,640,030      3,374,494
  Operating transfers (out)                   (2,902,930)      (73,564)            (398,000)    (3,374,494)
                                             ───────────    ──────────          ───────────    ───────────
    Total other financing sources (uses)      (1,654,691)      191,832            3,573,896      2,111,037
                                             ───────────    ──────────          ───────────    ───────────

Excess of revenues and other sources
  over (under) expenditures and other uses      (122,408)      (57,055)           1,766,149      1,586,686
                                             ───────────    ──────────          ───────────    ───────────

Fund balances:

Beginning of year, July 1                     11,168,742       350,609            6,299,408     17,818,759
Residual equity transfers in                                    18,102            3,435,346      3,453,448
                                             ───────────    ──────────          ───────────    ───────────
End of year, June 30                         $11,046,334    $ 311,656           $11,500,903    $22,858,893
                                             ═══════════    ══════════          ═══════════    ═══════════

The accompanying notes are an integral part of the financial statements.




                                                 21
                          City of Jacksonville, North Carolina                    Exhibit C
        Combined Statement of Revenues, Expenditures and Changes in Fund Balances
                            Budget and Actual - General Fund
                         For the Fiscal Year Ended June 30, 2000



                                                          General Fund
                                             ─────────────────────────────────────────
                                                                            Variance
                                                                            Favorable
                                                Budget         Actual     (Unfavorable)
                                             ───────────    ───────────    ───────────
Revenues:

  Ad valorem taxes                           $ 8,151,234    $ 8,204,862    $    53,628
  Other taxes and licenses                     9,198,203      9,066,849       (131,354)
  Unrestricted intergovernmental revenues      1,949,564      2,168,580        219,016
  Restricted intergovernmental revenues        2,750,389      2,612,666       (137,723)
  Permits and fees                               327,550        460,378        132,828
  Sales and services                             252,385        285,138         32,753
  Investment earnings                            425,155        610,060        184,905
  Miscellaneous                                  144,340        230,409         86,069
                                             ───────────    ───────────    ───────────
    Total revenues                            23,198,820     23,638,942        440,122
                                             ───────────    ───────────    ───────────
Expenditures:

Current:
  General government                           5,878,855      5,385,533          493,322
  Public works                                 3,915,189      3,322,706          592,483
  Public safety                                9,789,374      9,267,655          521,719
  Environmental protection                     2,137,274      2,071,908           65,366
  Cultural and recreational                    1,140,339      1,062,805           77,534
Debt service:
  Principal retirement                           838,085        828,932          9,153
  Interest and fees                              153,870        167,120        (13,250)
                                             ───────────    ───────────    ───────────
    Total expenditures                        23,852,986     22,106,659      1,746,327
                                             ───────────    ───────────    ───────────
    Revenues over expenditures                  (654,166)     1,532,283      2,186,449
                                             ───────────    ───────────    ───────────
Other financing sources (uses):

  Appropriated fund balance                    2,306,833                       (2,306,833)
  Proceeds from borrowing                        704,400        685,947           (18,453)
  Sales of general fixed assets                   70,000         93,224            23,224
  Operating transfers in                         475,863        469,068            (6,795)
  Operating transfers (out)                   (2,902,930)    (2,902,930)
                                             ───────────    ───────────    ───────────
    Total other financing sources (uses)         654,166     (1,654,691)    (2,308,857)
                                             ───────────    ───────────    ───────────

Excess of revenues and other sources
  (under) expenditures and other uses        $         0       (122,408)   $ (122,408)
                                             ═══════════                   ═══════════
  Fund balances:

Beginning of year, July 1                                    11,168,742
                                                            ───────────
End of year, June 30                                        $11,046,334
                                                            ═══════════

The accompanying notes are an integral part of the financial statements.




                                        22
                                    City of Jacksonville, North Carolina                     Exhibit D
            Combined Statement of Revenues, Expenses and Changes in Retained Earnings/Fund Balances
                              All Proprietary Fund Types and Similar Trust Fund
                                   For the Fiscal Year Ended June 30, 2000



                                                            Proprietary           Fiduciary
                                                             Fund Types           Fund Types
                                                    ─────────────────────────     ───────────
                                                                                      Non-          Totals
                                                                     Internal      Expendable    (Memorandum
                                                     Enterprise       Service        Trust           Only)
                                                    ───────────    ───────────    ───────────    ───────────
Operating revenues:
  Charges for services                              $10,274,711    $ 1,361,166    $              $11,635,877
  Other operating revenues                                              28,676                        28,676
                                                    ───────────    ───────────    ───────────    ───────────
    Total operating revenues                         10,274,711      1,389,842                    11,664,553
                                                    ───────────    ───────────    ───────────    ───────────
Operating expenses:
  Solid Waste Fund                                    1,359,104                                    1,265,069
  Water/Sewer Administration                          1,142,160                                    1,142,160
  Water/Sewer Engineering                               132,024                                      132,024
  Water/Sewer Metering                                  270,323                                      266,302
  Water/Sewer Lines Maintenance                         647,570                                      617,130
  Water Supply                                          611,208                                      601,551
  Hurricane Irene                                           700                                          700
  Hurricane Dennis                                        7,032                                        7,032
  Hurricane Floyd                                       246,606                                      246,606
  Wastewater Treatment                                1,320,974                                    1,320,974
  Fleet Maintenance                                                    695,533                       695,533
  City Hall Maintenance                                                 69,549                        69,549
  Management Information Systems                                       474,252                       474,252
  Depreciation                                        3,457,903        297,372                     3,755,275
                                                    ───────────    ───────────    ───────────    ───────────
    Total operating expenses                          9,195,604      1,536,706                    10,732,310
                                                    ───────────    ───────────    ───────────    ───────────
      Operating income (loss)                         1,079,107       (146,864)                      932,243
                                                    ───────────    ───────────    ───────────    ───────────
Nonoperating revenues (expenses):
  Interest earned on investments                        438,067        21,080                        459,147
  FEMA                                                  247,080                                      247,080
  ICMA                                                    1,380                                        1,380
  Assessments collected                                  11,299                                       11,299
  Interest collected on assessments                       1,755                                        1,755
  Gain on sale of fixed assets                            8,859            278                         9,137
  Interest on long-term debt                         (1,156,202)        (1,045)                   (1,157,247)
                                                    ───────────    ───────────    ───────────    ───────────
    Total nonoperating revenues (expenses)             (447,762)        20,313                      (427,449)
                                                    ───────────    ───────────    ───────────    ───────────

  Net income (loss)                                     631,345      (126,551)                       504,794
  Add depreciation on contributed capital               120,722                                      120,722
                                                    ───────────    ───────────    ───────────    ───────────
Increase (decrease) in retained earnings                752,067       (126,551)                      625,516
Retained earnings/fund balances, July 1              25,548,672        694,986        136,216     26,379,874
Residual equity transfers (out)                      (3,435,346)                      (18,102)    (3,453,448)
                                                    ───────────    ───────────    ───────────    ───────────
Retained earnings/fund balances, June 30            $22,865,393    $   568,435    $   118,114    $23,551,942
                                                    ═══════════    ═══════════    ═══════════    ═══════════



The accompanying notes are an integral part of the financial statements.




                                               23
                              City of Jacksonville, North Carolina                                    Exhibit E
                                Combined Statement of Cash Flows
                      All Proprietary Fund Types and Nonexpendable Trust Fund
                             For the Fiscal Year Ended June 30, 2000

                                                                                  Fiduciary
                                                   Proprietary Fund Types         Fund Type
                                                   ────────────────────────      ─────────────         Totals
                                                                  Internal       Nonexpendable      (Memorandum
                                                   Enterprise     Service           Trust              Only)
                                                   ─────────── ───────────       ────────────       ────────────
Cash flows from operating activities:
  Cash received from customers                     $10,148,751   $               $                  $ 10,148,751
  Cash receipts from quasi-external operating
    transactions                                                     1,390,012           42,389         1,432,401
  Cash payments for quasi-external operating
    transactions                                                (1,253,767)                            (1,253,767)
  Cash paid for goods and services                  (3,673,670)                                        (3,673,670)
  Cash paid to employees                            (2,186,648)                                        (2,186,648)
  Customer deposits                                     24,915                                             24,915
                                                   ─────────── ───────────       ────────────         ───────────
    Net cash provided by operating activities        4,313,348     136,245             42,389           4,491,982
                                                   ─────────── ───────────       ────────────         ───────────

Cash flows from noncapital financing activities:
  Residual equity transfer (out)                    (3,435,346)                       (18,102)         (3,453,448)
                                                   ─────────── ───────────       ────────────         ───────────
    Net cash used for noncapital
      financing activities                          (3,435,346)                       (18,102)         (3,453,448)
                                                   ─────────── ───────────       ────────────         ───────────

Cash flows from capital and related financing
  activities:
  Principal paid on long-term debt                  (1,862,558)    (77,920)                            (1,940,478)
  Interest paid on long-term debt                   (1,156,202)     (1,045)                            (1,157,247)
  Contributed capital                                  224,813       1,480                                226,293
  Proceeds from borrowing                              105,600      23,500                                129,100
  Purchase of capital assets                          (877,859)   (131,879)                            (1,009,738)
  Proceeds from sale of assets                           8,859         278                                  9,137
  Assessments collected                                 11,299                                             11,299
  Interest collected on assessments                      1,755                                              1,755
  Refund from ICMA                                       1,380                                              1,380
  Proceeds from FEMA                                   247,080                                            247,080
                                                   ─────────── ───────────       ────────────         ───────────
    Net cash used for capital and
      related financing activities                  (3,295,833)   (185,586)                            (3,481,419)
                                                   ─────────── ───────────       ────────────         ───────────

Cash flows from investing activities:
  Interest earned on investment                        438,067        21,080                              459,147
                                                   ───────────   ───────────     ────────────         ───────────
    Net cash provided by
      investing activities                             438,067        21,080                              459,147
                                                   ───────────   ───────────     ────────────         ───────────
Net increase (decrease) in cash and
  cash equivalents                                  (1,979,764)    (28,261)            24,287          (1,983,738)
Cash and cash equivalents, July 1                    9,855,245     378,200            116,449          10,349,894
                                                   ─────────── ───────────       ────────────         ───────────
Cash and cash equivalents, June 30                 $ 7,875,481 $   349,939       $    140,736         $ 8,366,156
                                                   ═══════════ ═══════════       ════════════         ═══════════

Reconciliation to Exhibit A - Fiduciary Fund Types:
  Cash and investments
    Nonexpendable Trust Fund    $ 140,736
    Pension Trust                  251,966
                                ──────────
      Total                     $ 392,702
                                ══════════


The accompanying notes are an integral part of the financial statements.             Continued on next page.




                                                24
                                City of Jacksonville, North Carolina                               Exhibit E,
                                  Combined Statement of Cash Flows                                 continued
                        All Proprietary Fund Types and Nonexpendable Trust Fund
                               For the Fiscal Year Ended June 30, 2000



                                                                                   Fiduciary
                                                    Proprietary Fund Types         Fund Type
                                                   ────────────────────────      ────────────       Totals
                                                                 Internal        Nonexpendable   (Memorandum
                                                    Enterprise    Service            Trust           Only)
                                                   ──────────── ──────────       ────────────    ────────────


Reconciliation of Operating Income to Net
Cash Provided (Used) by Operating Activities:

Operating income (loss)                           $ 1,079,107      $ (146,864)   $               $    932,243
                                                  ────────────     ──────────    ────────────    ────────────

Adjustments to reconcile operating loss to
net cash provided by operating activities:
Depreciation                                          3,457,903       297,372                      3,755,275
Bad debt expense                                         53,875                                       53,875
Change in assets and liabilities:
  Increase (Decrease) in accrued vacation pay            (6,390)       (7,512)                        (13,902)
  (Increase) Decrease in prepaid expenses                   356          (120)                            236
  Increase (Decrease) in accounts payable              (154,525)          896         (32,199)       (185,828)
  (Increase) Decrease in inventories                    (15,933)       (7,467)                        (23,400)
  Increase (Decrease) in due to other funds                              (230)             70            (160)
  Increase (Decrease) in deferred revenues              (12,041)                                      (12,041)
  Increase (Decrease) in customer deposits               24,915                                        24,915
  (Increase) Decrease in accounts receivable           (110,026)          170             271        (109,585)
  (Increase) Decrease in due from other funds            (3,893)                          554          (3,339)
  (Increase) Decrease in notes receivable                                              73,693          73,693
                                                  ────────────     ──────────    ────────────    ────────────
    Total adjustments                                3,234,241        283,109          42,389       3,559,739
                                                  ────────────     ──────────    ────────────    ────────────
Net cash provided by operating activities         $ 4,313,348      $ 136,245     $     42,389    $ 4,491,982
                                                  ════════════     ══════════    ════════════    ════════════

Non-Cash Supplemental Disclosure
  Capital contributed by developers                $ 3,516,553     $        0    $          0    $ 3,516,553
                                                   ════════════    ══════════    ════════════    ════════════




The accompanying notes are an integral part of the financial statements.




                                                 25
                         City of Jacksonville, North Carolina              Exhibit F
                  Law Enforcement Officers' Special Separation Allowance
                        Statement of Changes in Plan Net Assets
                        For the Fiscal Year Ended June 30, 2000




    Additions:
      Employer contributions                               $    24,255
      Interest                                                  14,678
                                                           ───────────
      Total additions                                           38,933
                                                           ───────────

    Deductions:
      Benefits                                                  63,756
                                                           ───────────
        Total deductions                                        63,756
                                                           ───────────
        Net decrease                                           (24,823)

    Fund balance reserved for employees'
      pension benefit:
          Beginning of year                                    371,312
                                                           ───────────
          End of year                                      $   346,489
                                                           ═══════════




The accompanying notes are an integral part of the financial statements.




                                         26
                           City of Jacksonville, North Carolina
                           Notes to the Financial Statements
                            For the Fiscal Year Ended June 30, 2000


Note 1. Summary of Significant Accounting Policies

     The financial statements of City of Jacksonville have been prepared in conformity with generally
     accepted accounting principles (GAAP) as applied to government units. The Governmental
     Accounting Standards Board (GASB) is the accepted standard-setting body for establishing
     governmental accounting and financial reporting principles. The more significant of the City's
     accounting policies are described below.


     A. Reporting Entity

     The City is a municipal corporation governed by an elected mayor and a six-member council. As
     required by generally accepted accounting principles, these financial statements present the
     government and any component units for which the government is considered to be financially
     accountable. Based on this criteria no other entities have been included.


     B. Basis of Presentation - Fund Accounting

     The accounts of the City are organized and operated on the basis of funds and account groups.
     A fund is an independent fiscal and accounting entity with a self-balancing set of accounts
     comprised of assets, liabilities, fund equity, revenues, and expenditures or expenses as
     appropriate. Fund accounting segregates funds according to their intended purpose and is used to
     aid management in demonstrating compliance with finance-related legal and contractual
     provisions. The minimum number of funds are maintained consistent with legal and managerial
     requirements. Account groups are a reporting device to account for certain assets and liabilities
     of the Governmental funds not recorded directly in those funds.

     The City has the following fund categories (further divided by fund type) and account groups.

     Governmental Funds are used to account for the City's general governmental activities.
     Governmental Funds include the following fund types:

     General Fund - The General Fund is the general operating fund of the City. It is used to
     account for all financial resources except those required to be accounted for in another fund. The
     primary revenue sources are ad valorem taxes, and state-shared revenues. The primary
     expenditures are for public safety, sanitation, parks and recreation, streets and highways, and
     general government services.

     Special Revenue Funds - Special Revenue Funds are used to account for specific revenue
     sources (other than expendable trusts or major capital projects) that are legally restricted to
     expenditures for specified purposes. The City maintains ten Special Revenue funds: the
     Community Development Grant Fund, the Law Enforcement Block Grant Fund, the COPS Grant
     Fund, the School Resource Officer Grant Fund, the E-911 Fund, the Highway Safety Fund, the
     HUD Disaster Recovery Grant Fund, the Affordable Home Ownership Grant Fund, the Lead
     Based Paint Grant Fund and the Emergency Relief Fund.

                                           27
Capital Project Funds - Capital Project Funds are used to account for financial resources to be
used for the acquisition or construction of major capital facilities (other than those financed by
proprietary funds or trust funds). The City has 27 Capital Project funds within the Governmental
Fund types: the Northeast Creek Park Capital Project Fund, Multi-Purpose Recreation
Community Complex Capital Project Fund, Street Improvements Capital Project Fund, Fire
Station #4 Capital Project Fund, Trails and Greenways Capital Project Fund, Demolition Capital
Project Fund, Country Club Park Capital Project Fund, Richard Ray All America Park Capital
Project Fund, Memorial Garden Capital Project Fund, Downtown Trail Capital Project Fund,
Chaney Creek Power Line Trail Capital Project Fund, Skateboard Park Capital Project Fund,
Kerr Street Park Capital Project Fund, Wilson Bay Park Phase I Capital Project Fund, Northeast
Creek Park Phase II Capital Project Fund, Woodlands Park Capital Project Fund, Civic Facility
Capital Project Fund, Downtown Riverfront Development Capital Project Fund, Sunset/Country
Club Annexation Capital Project Fund, Rails to Trails Capital Project Fund, Northwoods
Playground Capital Project Fund, Local Government Complex Capital Project Fund, Sturgeon
City Capital Project Fund, City Compost Capital Project Fund, Citywide Landscaping Capital
Project Fund, Jacksonville Business Park Capital Project Fund and the Capital Reserve Fund.

Proprietary Funds include the following fund types:

Enterprise Funds - Enterprise Funds are used to account for operations (a) that are financed and
operated in a manner similar to private business enterprises (where the intent of the governing
body is that the costs--expenses, including depreciation--of providing goods or services to the
general public on a continuing basis be financed or recovered primarily through user charges); or
(b) where the governing body has decided that periodic determination of revenues earned,
expenses incurred, and/or the net income is appropriate for capital maintenance, public policy,
management control, accountability, or other purposes. City of Jacksonville has two Enterprise
Funds: the Water and Sewer Fund, and the Solid Waste Disposal Fund. The Water Capital
Projects Fund, Sewer Capital Projects Fund and the Water/Sewer Capital Reserve Fund are
consolidated with the Water and Sewer Fund (the operating fund) for financial reporting
purposes.

Internal Service Funds - The Internal Service Funds are used to account for the financing of
goods or services provided by one department or agency to other departments or agencies of the
City, on a cost-reimbursement basis. City of Jacksonville has three Internal Service Funds: the
Fleet Maintenance Fund, the City Hall Maintenance Fund and the Management Information
Systems Fund. The Management Information Systems Capital Project Fund is consolidated with
the Management Information Fund for financial reporting purposes.

Fiduciary Funds account for the assets held by the City in a trustee capacity or as an agent
for individuals, private organizations, other governmental units, and/or other funds. Fiduciary
Funds include the following funds:

Pension Trust Fund - The City has a Pension Trust Fund, the Special Separation Allowance
Fund, that accounts for the Law Enforcement Officers' Special Separation Allowance, a single-
employer, public employee retirement system.

Nonexpendable Trust Fund - The Nonexpendable Trust Fund accounts for the North Carolina
Housing Finance Agency's Rental Rehabilitation Revolving Loan Fund and the Community
Development loan program. The Community Development Grant Project Fund reflects transfers
to and from the Nonexpendable Trust Fund in carrying out its loan program. As the loans funded

                                        28
in part by Community Development are repaid to the Nonexpendable Trust Fund, the money is
paid to the Community Development Grant Project Fund and recorded as program income. In
turn, as Community Development Grant Project loans are made the money is paid to the
Nonexpendable Trust Fund to account for the repayments over the term of the loan. Interest
earned in the Nonexpendable Trust Fund is not considered revenue, rather, it is reflected as
interest payable to either the North Carolina Housing Finance Agency or the Community
Development Grant Project Fund.

Account Groups

General Fixed Assets Account Group - This group is established to account for all fixed assets
of the City other than those accounted for in the Proprietary or Trust Funds.

General Long-Term Debt Account Group - This group is established to account for all of the
City's long-term obligations except those accounted for in the Proprietary or Trust Funds.


C. Measurement Focus and Basis of Accounting

The accounting and financial reporting treatment applied to a fund is determined by its
measurement focus. All governmental funds are accounted for using a current financial resources
measurement focus. With this measurement focus, only current assets and current liabilities
generally are included on the balance sheet. Operating statements of these funds present
increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other
financing uses) in net current assets.

The Proprietary Funds, Nonexpendable Trust Fund, and Pension Trust Fund are accounted for on
a flow of economic resources measurement focus. With this measurement focus, all assets and
all liabilities associated with the operation of these funds are included on the balance sheet. Fund
equity of proprietary funds (i.e., net total assets) is segregated into contributed capital and
retained earning components. Operating statements for these funds present increases (e.g.
revenues) and decreases (e.g. expenses) in net total assets.

Basis of accounting determines when revenues and expenditures or expenses and the related
assets and liabilities are recognized in the accounts and reported in the financial statements.
Basis of accounting relates to the timing of measurements made, regardless of the measurement
focus applied.

All funds of the City are accounted for during the year on the modified accrual basis of
accounting in accordance with North Carolina General Statutes. The governmental fund types
are presented in the financial statements on this same basis. Under the modified accrual basis,
revenues are recognized in the accounting period in which they become susceptible to accrual
(i.e., when they are measurable and available) to pay liabilities of the current period.
Expenditures are recognized in the accounting period in which the related fund liabilities are
incurred, if measurable, except for unmatured principal and interest on general long-term debt
which are recognized when due and certain compensated absences and claims and judgments that
are recognized when the obligations are expected to be liquidated with expendable available
financial resources.

The City generally considers all revenues available if they are collected within 60 days after
year-end, except for property taxes. Ad valorem property taxes are not accrued as a revenue

                                         29
because the amount is not susceptible to accrual. At June 30, taxes receivable are materially past
due and are not considered to be an available resource to finance the operations of the current
year. Therefore, the net receivable amount is offset by a deferred revenue. Also, as of January 1,
1993, state law altered the procedures for the assessment and collection of property taxes on
registered motor vehicles in North Carolina. Effective with this change in the law, Onslow
County is responsible for billing and collecting the property taxes on all registered motor
vehicles on behalf of all municipalities and special tax districts in the county. For those motor
vehicles registered under the staggered system, property taxes are due the first day of the fourth
month after the vehicles are registered. The billed taxes are applicable to the fiscal year in which
they become due. Therefore, taxes for vehicles registered from March, 1999 through February,
2000 apply to the fiscal year ended June 30, 2000. Uncollected taxes that were billed during this
period are shown as a receivable on these financial statements. Those taxes for vehicles
registered from March 1 through the fiscal year-end apply to the fiscal year 2000-2001 and are
not shown as receivables at June 30, 2000. For those motor vehicles registered under the annual
system, taxes are due on May 1 of each year. For those vehicles registered and billed under the
annual system, uncollected taxes are reported as a receivable on the financial statements and are
offset by deferred revenues because the due date and the date upon which the interest begins to
accrue both were prior to June 30. The taxes for vehicles registered annually that have already
been collected as of year-end are also reflected as deferred revenues at June 30, 2000 because
they are intended to finance the City's operations during the 2000-2001 fiscal year.

Those revenues susceptible to accrual are sales taxes, collected and held by the State at year-end
on behalf of the City, sales and services and investment earnings. Expenditure-driven grants are
recognized as revenue when the qualifying expenditures have been incurred and all other grant
requirements have been satisfied. Other intergovernmental revenues are not susceptible to
accrual because generally they are not measurable and available until received in cash.

The Proprietary Funds, Nonexpendable Trust Fund, and Pension Trust Fund are presented in the
financial statements on the accrual basis of accounting. Under this basis, revenues are
recognized in the accounting period when earned and expenses are recognized in the period
when incurred. As permitted by generally accepted accounting principles, the City has elected to
apply only applicable FASB Statements and Interpretations issued before November 30, 1989 in
its accounting and reporting practices for its proprietary operations, Nonexpendable Trust Fund
and Pension Trust Fund.

The City reports deferred revenue on its combined balance sheet. Deferred revenues arise when
a potential revenue does not meet both the "measurable" and "available" criteria for recognition
in the current period. Deferred revenues also arise when resources are received by the City
before it has a legal claim to them, as when grant monies are received prior to the incurrence of
qualifying expenditures. In subsequent periods, when both revenue recognition criteria are met,
or when the City has a legal claim to the resources, the liability for deferred revenue is removed
from the combined balance sheet and revenue is recognized.


D. Budgetary Data

The City's budgets are adopted as required by State Statute. An annual budget ordinance is
adopted for the General Fund and operating Enterprise Funds. All annual appropriations lapse at
fiscal year-end. Grant project ordinances are adopted for the Special Revenue Fund and project
ordinances are adopted for the Capital Projects Fund and, as such, are not included on Exhibit C.
 The City's Internal Service Funds operate under an approved financial plan and not a budget

                                         30
ordinance. All budgets are prepared using the modified accrual basis of accounting, which is
consistent with the accounting system used to record transactions.

Expenditures may not legally exceed appropriations at the functional level for the General Fund,
Special Revenue Fund, Enterprise Funds, and at the fund level for the Capital Project Funds. A
function is a group of related activities aimed at accomplishing a major service, such as public
safety. The balances in the Capital Reserve Capital Project Fund will be appropriated and
transferred to another Capital Project Fund in accordance with the project ordinance adopted for
the reserve fund. The City Manager is authorized by the budget ordinance to transfer
appropriations between department levels within a fund up to $5,000; however, any revisions
that exceed the $5,000 at the functional level of the General Fund, Special Revenue Fund,
Enterprise Funds and the fund level for the Capital Project Funds or revisions that alter total
expenditures of any fund must be approved by the City Council. During the year, several
amendments to the original budget became necessary, the effects of which were not material.

A budget calendar is included in State law that prescribes the last day on which certain steps of
the budget procedures are to be performed. The following schedule lists the tasks to be
performed and the date by which each is required to be completed.

April 30        Each department head will transmit to the budget officer the departmental budget
                requests and revenue estimates for the budget year.
June 1          The budget and the budget message shall be submitted to the governing board.
                The public hearing on the budget should be scheduled at this time.
July 1          The budget ordinance shall be adopted by the governing board.

As required by North Carolina General Statutes, Chapter 159, Section 26(d) [hereinafter
references to the North Carolina General Statutes will be cited as G.S.], the City maintains
encumbrance accounts that are considered to be "budgetary accounts." Encumbrances
outstanding at year-end represent the estimated amounts of the expenditures ultimately to result
if unperformed contracts in process at year-end are completed. Encumbrances outstanding at
year-end do not constitute expenditures or liabilities. These encumbrances outstanding are
reported as "reserved for encumbrances" in the fund balance section of the balance sheet and will
be charged against the subsequent year's budget.

Deficit Fund Balances in Individual Funds

The City has fund balance deficits in individual funds as of June 30, 2000 as following:

         Capital Project Funds:

         Civic Facility                         $ 5,062
         Local Government Complex                57,697
         Sturgeon City Project                   24,543

The fund deficits will be eliminated in the Fiscal Year 2000-2001 through future revenues.




                                       31
E. Deposits and Investments

All deposits of the City are made in council-designated official depositories and are secured as
required by G.S. 159-31. The City may designate as an official depository any bank or savings
and loan association whose principal office is located in North Carolina. Also, the City may
establish time deposit accounts such as NOW and SuperNOW accounts, money market accounts,
and certificates of deposit.

State law [G.S. 159-30(c)] authorizes the City to invest in obligations of the United States or
obligations fully guaranteed both as to principal and interest by the United States; obligations of
the State of North Carolina; bonds and notes of any North Carolina local government or public
authority; obligations of certain non-guaranteed federal agencies; certain high quality issues of
commercial paper and bankers' acceptances; and the North Carolina Capital Management Trust,
an SEC registered (2a-7) money market mutual fund.

The City’s investments with a maturity of more than one year at acquisition and non-money
market investments are reported at fair value as determined by quoted market prices. The
NCCMT cash portfolio’s securities are valued at fair value, which is the NCCMT’s share price.
Money market investments that have a remaining maturity at the time of purchase of one year or
less and non-participating interest earnings and investment contracts are reported at amortized
cost.


F. Cash and Cash Equivalents

The City pools moneys from several funds, except the Pension Trust Fund, to facilitate
disbursement and investment and to maximize investment income. Therefore, all cash and
investments are essentially demand deposits and are considered cash and cash equivalents.


G. Restricted Assets

The unexpended Powell Bill revenue is classified as restricted assets for the General Fund and
Capital Projects Fund because its use is completely restricted by State law. Also, State and
Federal Drug Enforcement assets are recorded as restricted assets since their use is restricted by
law.

The unexpended installment note proceeds of the General Fund and Capital Projects Funds are
classified as restricted assets because their use is completely restricted to the purpose for which
the notes were originally issued.


H. Ad Valorem Taxes Receivable and Deferred Revenues

In accordance with State law [G.S. 105-347 and 159-13(a)], the City levies ad valorem taxes,
except for ad valorem taxes on certain vehicles, on July 1, the beginning of the fiscal year. These
taxes are due on September 1, the lien date; however, no interest or penalties are assessed until
the following January 6. The 1999 tax levy is based on the assessed values as of January 1,
1999.



                                        32
Privilege licenses collected prior to the fiscal year to which they apply are recorded as deferred
revenues. Also, the noncurrent portion of special assessments receivable is recorded as a
deferred revenue because the amount is not considered to be available at the end of the fiscal
year.


I. Allowances for Doubtful Accounts

All receivables that historically experience uncollectible accounts are shown net of an allowance
for doubtful accounts. This amount is estimated by analyzing the percentage of receivables that
were written off in prior years.


J. Inventory

The inventories of the City’s General Fund are valued at cost, using the average cost method.
The inventory of the General Fund consists of fuel held for consumption. The cost is recorded as
an expenditure when the inventory is consumed. The General Fund inventory reported on the
Combined Balance Sheet is offset by a fund balance reserve that indicates it does not constitute a
resource available for appropriation even though it is a component of net current assets.

The inventory of the Enterprise Fund and Internal Service Fund are valued at the lower of cost,
using the first-in, first-out method, or market. The inventory consists of materials and supplies
held for consumption. The cost is recorded as an expense when the inventory is consumed.


K. Fixed Assets

The City's general fixed assets that are purchased or constructed are recorded at original cost.
Donated assets are listed at market value at the time of donation. Public domain or infrastructure
general fixed assets are not capitalized because such assets are immovable and are of value only
to the City.

Enterprise Fund fixed assets are recorded at original cost at the time of acquisition. Plant assets
are depreciated on a straight-line basis. The value of asset additions acquired with grant funds
has been recorded in the appropriate contributed capital account of the Enterprise Funds.
Estimated useful lives for the major classifications of depreciable assets are as follows:
                     Buildings                       10 to 40 years
                     Improvements Other
                       than Buildings                10   to   40   years
                     Equipment                        3   to   10   years
                     Heavy Equipment                  5   to   10   years
                     Vehicles                         2   to   10   years

Internal Service Fund fixed assets are recorded at original cost at the time of acquisition. Plant
assets are depreciated on a straight-line basis. Estimated useful lives for the major
classifications of depreciable assets are as follows:

                     Buildings                       10 to 40 years
                     Equipment                        3 to 10 years
                     Vehicles                         2 to 10 years




                                        33
L. Long-Term Debt

Long-term debt for water and sewer and internal service activity purposes is carried in the Water
and Sewer Enterprise Fund and Management Information Systems Internal Service Fund rather
than the General Long-Term Debt Account Group. The debt service requirements are being met
by water and sewer and management information system revenues, but the City's taxing power is
pledged to make these payments if those revenues should be insufficient. Long-term debt for
general purposes is included in the General Long-Term Debt Account Group (e.g. general
obligation bonds, installment-purchase agreements). The debt service requirements for these
obligations are appropriated annually in the General Fund.


M. Fund Equity

Reservations or restrictions of equity represent amounts that are not appropriable or are legally
segregated for a specific purpose. Designations of equity represent tentative management plans
that are subject to change.

State law [G.S. 159-13(b)(16)] restricts appropriation of fund balance or fund equity to an
amount not to exceed the sum of cash and investments minus the sum of liabilities,
encumbrances, and deferred revenues arising from cash receipts as these amounts stand at the
close of the fiscal year preceding the budget year.

The Governmental Fund types classify fund balances as follows:

Reserved
Reserved by State statute - portion of fund balance, in addition to reserves for encumbrances
and reserves for prepaids and inventories, which is not available for appropriation under State
law [G.S. 159-13(b)(16)]. This amount is usually comprised of the receivable balances that are
not offset by deferred revenues.

Reserved by grantor - portion of total fund balance reserved to pay for grant eligible activities.

Reserved for compensating balance - portion of fund balance not available for appropriation
because it is part of an agreement for banking services in lieu of fees.

Reserved for encumbrances - portion of fund balance available to pay for commitments related
to purchase orders and contracts that remained unperformed at year-end.

Reserved for inventories - portion of fund balance not available for appropriation because it
represents the year-end balance of ending inventories, which are not expendable available
resources.

Reserved for installment purchase - portion of fund balance available for appropriation that
has been reserved for installment purchases not completed at year-end.

Reserved for Powell Bill - portion of total fund balance reserved to pay for street improvements.




                                        34
Reserved for prepaid items - portion of total fund balance that indicates that prepaid items do
not represent expendable available financial resources even though they are a component of net
current assets.

Reserved for drug enforcement - portion of total fund balance available for appropriation that
has been reserved for drug enforcement.

Reserved for employee’s pension benefit - portion of total fund balance available for
appropriation to pay retirement benefits when due.


Unreserved
Designated for insurance - portion of total fund balance available for appropriation that has
been designated for health insurance contingencies. This is based upon projections as calculated
by the carrier.

Designated for subsequent year's expenditures - portion of total fund balance available for
appropriation that has been designated for the adopted 2000-2001 budget ordinance.

Undesignated - portion of total fund balance available for appropriation that is uncommitted at
year-end.


N. Other Resources

The General Fund provides the basis of local resources for other governmental funds. These
transactions are recorded as "Operating transfers out" in the General Fund and "Operating
transfers in" in the receiving fund.


O. Compensated Absences

The vacation policy of the City provides for the accumulation of up to thirty days earned
vacation leave with such leave being fully vested when earned. The current portion of the
accumulated vacation pay and salary-related payments has been reported in the City's
governmental funds. The liability for accumulated earned vacation pay and the salary-related
payments not expected to be liquidated with expendable available financial resources are
reported in the general long-term debt account group. Vacation pay and salary-related payments
are accrued when incurred in the proprietary funds and reported as a fund liability. The City's
holiday leave policy for public safety employees provides for the unlimited accumulation of
earned holiday leave with such leave being fully vested when earned. The current portion of the
accumulated holiday leave and salary-related payments has been reported in the City's
governmental funds. The liability for accumulated earned holiday pay and the salary-related
payments not expected to be liquidated with expendable available financial resources are
reported in the general long-term debt account group.

The City's sick leave policy provides for an unlimited accumulation of earned sick leave. Sick
leave does not vest but any unused sick leave accumulated at the time of retirement may be used
in the determination of length of service for retirement benefit purposes. Since the City has no


                                       35
     obligation for the accumulated sick leave until it is taken, no accrual for sick leave has been
     made.


     P. Interfund Transactions

     During the course of normal operations, the City has numerous transactions between funds
     including expenditures and transfer of resources to provide services. The internal service funds
     record charges for service to all City departments and funds as operating revenue. Both
     governmental and proprietary funds record these payments to the internal service funds as
     operating expenses/expenditures. The General Fund provides administrative services to the
     enterprise funds. The amounts charged to a fund for these services are determined by the City
     Council at the time of the budget process and are treated as a reduction of expenditures in the
     General Fund and as an operating expense in the serviced fund.


     Q. Receivables and Payables

     Transactions between funds that are representative of lending/borrowing arrangements
     outstanding at the end of the fiscal year are referred to as "interfund receivables/payables." All
     other outstanding balances between funds are reported as "due to/from other funds."


     R. Totals (Memorandum Only) Columns

     The totals columns on the accompanying financial statements are captioned as "Totals
     (Memorandum Only)" because they do not represent consolidated financial information and are
     presented only to facilitate financial analysis. The columns do not present information that
     reflects financial position, results of operations, or cash flows in accordance with generally
     accepted accounting principles. Interfund eliminations have not been made in the aggregation of
     this data.


     S. Comparative Data and Reclassification

     Comparative total data for the prior year have been presented in selected sections of the
     accompanying financial statements in order to provide an understanding of the changes in the
     City's financial position and operations. Comparative totals have not been included on the
     statements where their inclusion would not provide enhanced understanding of the City's
     financial position and operations or would cause the statements to be unduly complex or difficult
     to understand. Also, certain amounts presented in the prior year's data have been reclassified to
     be consistent with the current year's presentation.


Note 2. Deposits and Investments

     Deposits

     All the City's deposits are either insured or collateralized by using one of two methods. Under
     the Dedicated Method, all deposits exceeding the federal depository insurance coverage are
     collateralized with securities held by the City's agents in the City's name. Under the Pooling

                                             36
        Method, which is a collateral pool, all uninsured deposits are collateralized with securities held
        by the State Treasurer's agent in the name of the State Treasurer. Since the State Treasurer is
        acting in a fiduciary capacity for the City, these deposits are considered to be held by the City's
        agents in the City's name. The amount of the pledged collateral is based on an approved
        averaging method for noninterest-bearing deposits and the actual current balance for interest-
        bearing deposits. Depositories using the Pooling Method report to the State Treasurer the
        adequacy of their pooled collateral covering uninsured deposits. The State Treasurer does not
        confirm this information with the City or with the escrow agent. Because of the inability to
        measure the exact amount of collateral pledged for the City under the Pooling Method, the
        potential exists for under collateralization, and this risk may increase in periods of high cash
        flows. However, the State Treasurer enforces strict standards of financial stability for each
        depository that collateralizes public deposits under the Pooling Method.

        At year-end, the City's deposits had a carrying amount of $2,395,101 which includes a $52,000
        compensating balance, and a bank balance of $2,713,418. Of the bank balance, $328,538 was
        covered by federal depository insurance and $2,384,880 in interest-bearing deposits were
        covered by collateral held under the Pooling Method.

        Investments

        The City's investments are categorized to give an indication of the level of custodial risk assumed
        by the entity at year-end. Column A includes investments that are insured or registered or for
        which the securities are held by the City or its agent in the City's name. Column B includes
        uninsured and unregistered investments for which the securities are held by the counterparty's
        trust department or agent in the City's name. Column C includes uninsured and unregistered
        investments for which the securities are held by the counterparty or by its trust department or
        agent, but not in the City's name. Investments in the North Carolina Capital Management Trust
        are exempt from risk categorization because the City does not own any identifiable securities but
        is a shareholder of a percentage of the fund.

        The fair values as reflected below were determined from information provided to the City by
        an investment banker.

                                                                             Reported         Fair
                              A                  B               C            Value           Value
Commercial Paper       $8,000,850        $                   $           $   8,000,850    $   8,071,000
U.S. Government
  Securities                4,795              1,425,267                     1,430,062        1,430,062
                       $8,005,645        $     1,425,267     $       0       9,430,912        9,501,062
North Carolina Capital
  Management Trust                                                         18,987,270       18,987,270
                                                                         $ 28,418,182     $ 28,488,332




                                                37
Note 3. Receivables
          A. Allowances for Doubtful Accounts
          The amounts shown in Exhibit A for receivables are net of the following allowances for doubtful
          accounts:
                 Funds                                      2000
                 ────────────────────────────           ─────────
                 General Fund
                    Taxes                                 $ 30,511
                    Accounts receivable                    501,762
                 Water and Sewer Fund                      319,136
                 Solid Waste Fund                           39,111
                 Total                                    $890,520

          The increase in the allowance for doubtful accounts in the General Fund accounts receivable
          arises from the probable uncollectibility of a claim against a former employee. The statute of
          limitations expired and the City filed a judgment; however, the perpetrator claims to own no
          property and have a limited income. Therefore the probability of recovering any of the funds is
          remote.

Note 4. Fixed Assets
          A. Changes in General Fixed Assets
          A summary of changes in general fixed assets follows:
                                   General                                                      General
                                Fixed Assets                                                  Fixed Assets
                               June 30, 1999     Additions    Retirements    Transfers      June 30, 2000
                               ─────────────   ───────────    ───────────    ──────────     ─────────────
Land                           $ 1,763,742     $              $              $              $    1,763,742
Buildings                         8,903,789         122,581                                      9,026,370
Equipment                         2,866,756         482,999        23,994                        3,325,761
Heavy Equipment                     840,987          60,959        12,720                          889,226
Vehicles                          5,682,979       1,288,174       340,719       260,048          6,890,482
Construction in progress            553,028       1,264,180                    (260,048)         1,557,160
Improvements other than
 buildings                           13,485                                                        13,485
                               ────────────    ───────────    ──────────     ──────────     ─────────────
  Total                        $ 20,624,766    $ 3,218,893    $ 377,433      $        0     $ 23,466,226
                               ════════════    ═══════════    ══════════     ══════════     ═════════════

  By function                      General                                                      General
                                Fixed Assets                                                  Fixed Assets
                               June 30, 1999     Additions    Retirements    Transfers      June 30, 2000
                               ─────────────   ───────────    ───────────    ──────────       ─────────────
General Government             $ 3,239,816     $     40,529   $     3,649    $              $    3,276,696
Public Works                      2,181,577         221,425        70,529                        2,332,473
Public Safety                     6,793,187       1,421,872       220,292       260,048          8,254,815
Environmental Protection          1,562,113         135,463        75,373                        1,622,203
Cultural and Recreational         6,184,040         131,859         4,595                        6,311,304
Economic Development                111,005           3,565         2,995                          111,575
Construction in Progress            553,028       1,264,180                    (260,048)         1,557,160
                               ────────────    ───────────    ───────────    ──────────       ────────────
  Total                        $ 20,624,766    $ 3,218,893    $   377,433    $        0       $ 23,466,226
                               ════════════    ═══════════    ═══════════    ══════════       ════════════

  Reconciliation of additions

Capital outlay expenditures                    $ 1,606,872
Capital projects (Exhibit "B")                   2,477,422
Capitalized interest                                20,250
Less infrastructure capital projects              (933,257)
Donated, court awarded property                     47,606
                                               ───────────
  Total                                        $ 3,218,893


                                                 38
                                              ═══════════
     B. Proprietary Fund Assets

     The fixed assets of the proprietary funds at June 30, 2000, are as follows:

                                              Fixed          Accumulated
     Water and Sewer Fund                    Assets         Depreciation              Net
     Land                                $   170,725        $                 $       170,725
     Buildings                            62,600,794            12,540,506         50,060,288
     Equipment                               647,226               454,096            193,130
     Heavy Equipment                         286,531               174,601            111,930
     Vehicles                                583,353               403,298            180,055
     Construction in progress                594,231                                  594,231
     Improvements other than
       buildings                          32,791,290         18,981,867         13,809,423
     Totals                              $97,674,150        $32,554,368       $ 65,119,782

                                             Fixed           Accumulated
     Fleet Maintenance                       Assets         Depreciation              Net
     Land                                $      2,758       $                 $         2,758
     Buildings                                244,312             133,414             110,898
     Equipment                                123,013              70,537              52,476
     Vehicles                                  84,572              57,251              27,321
     Totals                              $    454,656       $     261,202     $       193,453

                                              Fixed          Accumulated
     City Hall Maintenance                   Assets         Depreciation              Net
     Buildings                           $        2,650     $        2,541    $             109
     Totals                              $        2,650     $        2,541    $             109

     Management Information                   Fixed          Accumulated
     Systems                                 Assets         Depreciation              Net
     Vehicles                            $    17,877        $         5,363   $        12,514
     Equipment                             1,341,166              1,005,363           335,803
     Totals                              $ 1,359,043        $     1,010,726   $       348,317



Note 5. Pension Plan Obligation

     A. Local Governmental Employees' Retirement System

     Plan Description. City of Jacksonville 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, 3512 Bush Street, Raleigh, North
     Carolina 27609, or by calling (919) 981-5454.

     Funding Policy. Plan members are required to contribute six percent of their annual
     covered salary. The City is required to contribute at an actuarially determined rate. The current
     rate for employees not engaged in law enforcement and for law enforcement officers is 4.8% and

                                             39
4.49%, respectively, of annual covered payroll. The contribution requirements of members of
the City of Jacksonville are established and may be amended by the North Carolina General
Assembly. The City's contributions to LGERS for the years ended June 30, 2000, 1999, and
1998 were $575,600, $565,506, and $544,879, respectively. The contributions made by the City
equaled the required contributions for each year.


B. Law Enforcement Officers' Special Separation Allowance

Plan Description.

City of Jacksonville administers a public employee retirement system (the "Separation
Allowance"), a single-employer defined benefit pension plan provides retirement benefits to the
City'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. The Separation Allowance is reported in the City's
report as a pension trust fund and no stand-alone financial report is issued.

All full-time City law enforcement officers are covered by the Separation Allowance. At
December 31, 1999, the Separation Allowance's membership consisted of:

        Retirees receiving benefits                                     8
        Terminated plan members entitled to but
           not yet receiving benefits                                  0
        Active plan members                                          104
           Total                                                     112



Summary of Significant Accounting Policies:

Basis of Accounting. Financial statements for the Separation Allowance are prepared
using the accrual basis of accounting. Employer contributions to the plan are recognized when
due and when the City has made a formal commitment to provide the contributions. Benefits are
recognized when due and payable in accordance with the terms of the plan.

Method Used to Value Investments. Investments are reported at fair value.

Contributions.

The City 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 City contributed $24,255, or .76% of
annual covered payroll. There were no contributions made by employees. The City's obligation
to contribute to this plan is established and may be amended by the North Carolina General
Assembly.

The annual required contribution for the current year was determined as part of the December 31,
1999 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


                                       40
     ranging from 4.4% to 8.5% per year. Item (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 dollar amount on a closed basis. The remaining amortization period at
     December 31, 1999 was 20 years.

     Annual Pension Cost and Net Pension Obligation. The City's annual
     pension cost and net obligation to the Separation Allowance for the current year were as follows:

             Annual required contribution                            $ 72,776
             Interest on net pension obligation                        (3,584)
             Adjustment to annual required                              4,498
               contribution
             Annual pension cost                                        73,690
             Contributions made                                        (24,255)
             Increase in net pension
               obligation                                                49,435
             Net pension obligation beginning
               of year                                                 (49,435)
             Net pension obligation end of year                      $        0


                                  Three-Year Trend Information
             Fiscal          Annual Pension               Percentage of             Net Pension
           Year Ended          Cost (APC)                APC Contributed             Obligation
              6/30/98            $ 53,345                       128%                 $ (45,605)
              6/30/99            $ 68,946                       106%                 $ (49,435)
              6/30/00            $ 73,690                        33%                 $    -0-



     C. Supplemental Retirement Income Plan for Law Enforcement Officers

     Plan Description. The City 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 City. Article 5 of G.S.Chapter 135 assigns the authority to establish and amend
     benefit provisions to the North Carolina General Assembly.

     Funding Policy. Article 12E of G.S. Chapter 143 requires the City to contribute each
     month an amount equal to five percent (5%) 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, 2000 were $238,886, which consisted of
     $167,013 from the City and $71,873 from the law enforcement officers.


Note 6. Post-Employment Benefits

     At retirement, all employees have the option to purchase basic medical insurance at the City's
     group rate. The entire cost of this insurance is borne by the employees.

     The City 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

                                            41
     State administered 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 his/her death, but the benefit may
     not exceed $20,000. All death benefit payments are made from the Death Benefit Plan. The
     City 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 City, the City
     does not determine the number of eligible participants. For the fiscal year ended June 30, 2000,
     the City made contributions to the State for death benefits of $18,120. The City's required
     contributions for employees not engaged in law enforcement and for law enforcement officers
     represented .15% and .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.


Note 7. Commitments

     At June 30, 2000, the City had contractual commitments of approximately $1,086,395 for
     construction of additional water and sewer treatment facilities, $7,483 for acquisition of data
     processing equipment and $6,768 for solid waste services.


Note 8. Risk Management

     The City is exposed to various risks of loss related to torts; thefts of, damage to, and destruction
     of assets; errors and omissions; injuries to employees; and natural disasters. City of Jacksonville
     is a participant in (i.e. transfers risk to) two insurance pools administered by the North Carolina
     League of Municipalities. One pool (IRFFNC) provides coverage for property damage and
     general liability (including auto and law enforcement officers). Major policies and their limits of
     coverage include: public officials ($1 million) and law enforcement liability ($2 million),
     vehicle liability ($2 million), public employee scheduled and blanket bonds ($400,000), boiler
     and machinery ($5 million), general liability ($2 million), builders risk ($500,193), and
     municipal and computer equipment ($1.2 million), and property ($78.8 million). The other pool
     (NCRIMA) provides workers' compensation coverage up to statutory limits. The pools are
     reinsured through commercial companies for single occurrence losses in excess of $500,000 for
     general liability and property damage, and single occurrence losses of $300,000 for workers'
     compensation.

     The City has established a risk management program to account for and finance its uninsured
     risks of loss for health insurance. Under this program, the risk management program provides
     coverage up to a maximum of $70,000 for each individual claim.

     The City purchases commercial insurance for individual claims in excess of $70,000 and
     aggregate claims in excess of the total of the products of (a) expected net paid claims multiplied
     by (b) the actual number of contract types during the contract period multiplied by 120%.
     Settled claims have not exceeded this commercial coverage in any of the last three fiscal years.


                                              42
     The City participates in the program and makes payments to the risk management program based
     on actuarial estimates of the amounts needed to pay prior- and current-year claims and to
     establish a reserve for catastrophe losses. Amounts withheld from employees and the City's
     general funds are available to pay claims, claim reserves and administrative costs for the
     program.

     The claims liability of $202,900 reported in the General Fund at June 30, 2000 is based on the
     requirements of Governmental Accounting Standards Board Statement No. 10, which requires
     that a liability for claims be reported if information prior to the issuance of the financial
     statements indicates that it is probable that a liability has been incurred at the date of the financial
     statements and the amount of loss can be reasonably estimated. Changes in the reported liability
     since July 1, 1995 were as follows:

                                                 Current Year
                          Beginning of            Claims and                              Balance at
                           Fiscal Year            Changes in               Claim            Fiscal
                           Liability               Estimates              Payments         Year-End
          1995-1996        $      13,712         $     771,447        $     785,159       $          -0-
          1996-1997                 -0-              1,215,353            1,142,493                72,860
          1997-1998               72,860               899,775            1,041,786                69,151
          1998-1999               69,151             1,043,337            1,079,565                32,923
          1999-2000               32,923             1,277,966            1,107,989               202,900

     The City carries commercial insurance for all other risks of loss. Settled claims resulting from
     their risks have not exceeded commercial insurance coverage in any of the last three fiscal years.


Note 9. Claims and Judgments

     At June 30, 2000, the City was a defendant to various lawsuits. In the opinion of the City's
     management and the City attorney, the ultimate effect of these legal matters will not have a
     material adverse effect on the City's financial position.


Note 10. Long-Term Obligations

     A. Installment Purchases

     The City finances various property acquisitions under installment purchase agreements. Under
     these agreements, the assets acquired collateralize the debt. The financing contracts require
     principal payments with interest rates ranging from 3.75% to 5.75%. The installment purchase
     contracts payable at June 30, 2000, are comprised of the following individual contracts:


     Serviced by the General Fund:
                                                                                        Principal Balance
                                                                                          June 30, 2000
     $1,400,000 installment agreement – for the construction
       of the multi-purpose community recreation center with
       Southern Bank & Trust dated March 3, 1995; remaining
       balance payable in 117 monthly payments of $11,570
       including interest at 5.75%.                                                           $     1,039,361

     $289,625 installment agreement – for vehicles with
       Wachovia Leasing Corporation dated January 20, 1998;

                                               43
remaining balance payable in 7 monthly payments of
$8,541 including interest at 4.15%.                                     58,966


                                                                 Principal Balance
                                                                   June 30, 2000
  $312,444 installment agreement – for vehicles and
    equipment with Centura Municipal Finance dated
    November 17,1997; remaining balance payable in 28
    monthly payments of $5,927 including interest
    at 4.60%.                                                       $     156,864

  $200,574 installment agreement – for vehicles with
    Centura Municipal Finance dated June 8, 1998; remaining
    balance payable in 11 monthly payments of $5,922
    including interest at 4.24%.                                           63,785

  $196,164 installment agreement – for vehicles with BB&T
    dated January 21, 1999; remaining balance payable in
    41 monthly payments of $3,658 including interest
    at 4.03%.                                                             139,905

  $531,726 installment agreement – for vehicles with BB&T
    dated April 26, 1999; remaining balance payable in 22
    monthly payments of $15,640 including interest
    at 3.97%.                                                             316,781

  $440,802 installment agreement – for a fire truck with
    BB&T dated May 25, 1999 ; remaining balance payable in
    46 monthly payments of $8,225 including interest
    at 4.05%.                                                             342,835

  $374,400 installment agreement – for vehicles with BB&T
    dated December 15, 1999; remaining balance payable in
    52 monthly payments of $7,074 including interest
    at 4.58%.                                                             332,999

  $311,547 installment agreement – for police vehicles with
    BB&T dated December 15, 1999; remaining balance payable
    in 29 monthly payments of $9,243 including interest
    at 4.58%.                                                             253,300

  $1,331,866 installment agreement – for a fire station
    with BB&T dated March 8, 2000; remaining balance payable
    in 9 annual payments of $133,187 principal plus
    interest at 5.43%.                                                  1,198,679

  Total                                                             $   3,903,475


  The future minimum payments of the installment purchases
  payable as of June 30, 2000, including $749,616 of interest,
  are as follows:

  Year Ending June 30            General Long-Term Debt


       2001                           $ 1,059,292
       2002                               880,211
       2003                               619,858
       2004                               492,660
       2005                               336,496
     Thereafter                         1,264,574

                                 44
             Total                        $ 4,653,091




Serviced by the Water and Sewer Fund:
                                                                Principal Balance
                                                                   June 30, 2000
$8,000,000 installment agreement – for construction
  of waste water treatment facilities with Branch
  Banking & Trust Leasing Corporation dated
  June 17, 1996; due in semi-annual installments of
  $380,042 November 1, 1996 to May 1, 2011;
  interest ranging from 4.39 to 8.89%.                            $   6,184,148


$105,600 installment agreement – for vehicles with
  BB&T dated December 15, 1999; due in 52 monthly
  installments of $1,996 including interest
  at 4.58%.                                                              93,924

Total                                                             $   6,278,072


The future minimum payments of the installment purchases payable as
of June 30, 2000, including $2,186,840 of interest, are as follows:

Year Ending June 30
      2001                                    $   783,629
      2002                                        783,629
      2003                                        783,629
      2004                                        783,629
      2005                                        769,894
   Thereafter                                   4,560,502
      Total                                   $ 8,464,912


Serviced by the Fleet Maintenance Fund:
                                                                Principal Balance
                                                                  June 30, 2000
$23,500 installment agreement – for a vehicle with
  BB&T dated December 15, 1999; remaining balance
  payable in 52 monthly payments of $444 including
  interest at 4.58%                                              $         20,900


The future minimum payments of the installment purchases
payable as of June 30, 2000, including $2,198 of interest,
are as follows:

Year Ending June 30
      2001                                        $ 5,333
      2002                                          5,334

                                     45
     2003                                                      5,333
     2004                                                      5,334
     2005                                                      1,764
     Total                                                   $23,098

For all installment agreements, the items purchased serve as collateral for the debt.

B. Bonds Payable

The general obligation bonds issued to finance the construction of facilities utilized in the
operations of the water and sewer system, which are being retired by its resources, are reported as
long-term debt in the Water and Sewer Fund. All bonds are collateralized by the full faith, credit,
and taxing power of the City. Principal and interest requirements are appropriated when due.
General obligation bonds payable at June 30, 2000, are comprised of the following individual
issues:




Water and Sewer Fund:
                                                                            Principal Balance
                                                                               June 30, 2000
$1,500,000 Sanitary Sewer Bonds issued May 1, 1979
  with principal maturities due annually on May 1 and
  interest payable May 1 and November 1 as follows:                         $            100,000

Total                                                                       $            100,000

The future minimum payments of the bonds payable as of
June 30, 2000, including $6,200 of interest, are as follows:

Year Ending June 30
     2001                                 $106,200
     Total                                $106,200

The City has $20,000,000 of authorized but unissued general obligation debt for sewer purposes
at June 30, 2000.

The City had a legal debt margin of $101,807,870.


C. Loans Payable

Water and Sewer Fund:
                                                                            Principal Balance
                                                                              June 30, 2000
  $15,000,000 State Revolving Fund Loan due in
      annual installments of $750,000 May 1,
      2001 to May 1, 2017: interest at 3.57%                                      $ 12,000,000

  $5,000,000 State Bond Loan due in annual
      installments of $250,000 May 1, 2001 to
      May 1, 2017; interest at 5.85%                                                    4,000,000

  $2,836,415 Sanitary Sewer Revolving Loan
      due in annual installments of $141,820.75
      May 1, 2001 to May 1, 2017; interest at
      3.035%                                                                            2,410,953


                                         46
      $3,000,000 Sanitary Sewer Revolving Loan
          due in annual installments of $150,000
          May 1, 2001 to May 1, 2017; interest at
          3.035%                                                                             2,550,000

      $500,000 Jones-Onslow EMC loan – for development and
          infrastructure facilities dated March 5, 1999; due
          in 84 monthly payments of $5,592.38 beginning on
          September 13, 2000 with no interest.                                                  500,000

      Total                                                                              $ 21,460,953

      The future minimum payments of the loans payable as of
      June 30, 2000, including $6,807,888 of interest, are as
      follows:

              Year Ending June 30
                    2001                                $ 2,153,298
                    2002                                  2,114,751
                    2003                                  2,064,273
                    2004                                  2,014,395
                    2005                                  1,964,466
                 Thereafter                              17,957,658
                   Total                                $28,268,841



      D. Capitalization of Interest

      Interest costs incurred during the construction period of assets are capitalized as part of the cost
      of the related assets. Fire Station #4 is under construction with an outstanding loan balance of
      $1,198,679. $20,250 in interest was capitalized during the year ended June 30, 2000.


      E. Changes in General Long-Term Debt

      The following is a summary of changes in general long-term debt for the year ended June 30,
      2000:
                            General Long-                                             General Long-
                              Term Debt                                                 Term Debt
                            June 30, 1999           Additions     Retirements         June 30, 2000
Installment Purchases        $2,735,353          $2,017,813       $  849,691           $ 3,903,475
Vacation pay                    741,373                                1,710               739,663
                             ──────────          ──────────       ──────────           ───────────
  Total                      $3,476,726          $2,017,813       $ 851,401            $ 4,643,138
                             ══════════          ══════════       ══════════           ═══════════

                            General Long-                                             General Long-
                              Term Debt                                                 Term Debt
                            June 30, 1999           Additions     Retirements         June 30, 2000
By purpose
Fire equipment               $  432,577          $1,331,866       $  222,929           $ 1,541,514
Police equipment                789,544             311,547          408,258               692,833
Recreation                    1,116,677                               77,316             1,039,361
Sanitation equipment            396,555              374,400         141,178               629,767
Vacation pay                    741,373                                1,710               739,663
                             ──────────          ──────────       ──────────           ───────────
  Total                      $3,476,726          $2,017,813       $ 851,401            $ 4,643,138
                             ══════════          ══════════       ══════════           ═══════════


                                               47
Reconciliation
Current portion                                                                      $   879,290
Subsequent years                                                                       3,763,848
                                                                                     ───────────
                                                                                     $ 4,643,138
                                                                                     ═══════════


Note 11. Interfund Receivables and Payables
      The composition of interfund balances as of June 30, 2000, is as follows:

      Due to/from other funds:
          Receivable Fund               Payable Fund                            Amount
      ─────────────────────         ─────────────────────                     ─────────
      General                        Law Enforcement Grants                   $    56,889
      General                        Community Development                         10,625
      General                        Lead Based Paint                              85,323
      General                        HUD Disaster Recovery                            880
      Law Enforcement Grants         General                                        3,256
      Community Development          General                                        1,002
      Community Development          Revolving Loan Fund                            1,490
      Capital Reserve                Capital Projects                              98,919
      Water and Sewer Fund           General                                       13,275
          Receivable Fund               Payable Fund                            Amount
      ─────────────────────         ─────────────────────                     ─────────
      Fleet Maintenance              General                                  $   1,252
      City Hall Maintenance          General                                        250
      Management Information
        Systems                      General                                        751
      Separation Allowance           General                                     97,031
                                                                              ─────────
                                                           Total              $ 370,943
                                                                              ═════════



Note 12. Deferred Revenues
      The balance in deferred revenues at year-end is composed of the following elements:

                                                         General         Enterprise
                                                          Fund             Fund
                                                       ──────────         ─────────
      Prepaid taxes not yet earned                     $    71,869        $
      Taxes receivable (net)                               551,109
      Special assessments receivable                                          108,726
      Recreation fees not yet earned                          1,517
      Tree fund donations not yet
        earned, included in restricted
          assets                                            11,466
      Beirut memorial donations not
        yet earned, included in
          restricted assets                                   3,441
      PILOT revenues not yet earned                                               21,921
      Prepaid privilege license
        not yet earned                                    124,071
      Other advances not yet earned                         9,592
                                                       ──────────         ─────────
                                                       $ 773,065          $ 130,647
                                                       ══════════         ═════════




                                            48
Note 13. Proprietary Funds Contributed Capital

      Grants, entitlements, and shared revenues restricted for the acquisition or construction of
      capital assets are recorded as contributed capital. The City utilizes an option allowed under
      NCGA Statement 2 for the Combined Statement of Revenues, Expenses, and Changes in
      Retained Earnings/Fund Balances (Exhibit D) whereby it closes and/or charges depreciation
      recognized on assets acquired or constructed through grants, entitlements, or shared revenues to
      the contributed capital account rather than to retained earnings. The following is a summary of
      changes in contributed capital for the year ended June 30, 2000:
                                        Federal           State             Local          Total
                                     ────────────    ────────────      ────────────    ────────────
   Contributed Capital 7/1/99        $ 3,007,155     $ 2,696,129       $ 13,678,001    $ 19,381,285
   Add: Receipts restricted for
          sewer capital projects           52,005         111,255         3,579,586       3,742,846
   Less: Amortization                     (90,542)        (15,090)          (15,090)       (120,722)
                                     ────────────    ────────────      ────────────    ────────────
   Contributed Capital 6/30/00       $ 2,968,618     $ 2,792,294       $ 17,242,497    $ 23,003,409
                                     ════════════    ════════════      ════════════    ════════════




Note 14. Segment Information - Proprietary Funds

      The accompanying combined financial statements include two Enterprise Funds which
      provide water and sewer, and solid waste revenues. The City also maintains three
      Internal Service Funds which provide central garage services, building maintenance and
      data processing services.

      Segment information for the year ended June 30, 2000 is as follows:

                                             Water and                Solid Waste
   Enterprise Funds                          Sewer Fund                  Fund                Total
    Operating revenues            $            8,965,035          $    1,309,676          $ 10,274,711
    Depreciation                               3,457,903                                     3,457,903
    Operating income (loss)                    1,128,535                  (49,428)           1,079,107
    FEMA                                         210,077                   37,003              247,080
    Residual equity transfers (out)           (3,435,346)                                   (3,435,346)
    Purchase of capital assets                   877,859                                       877,859
    Net income (loss)                            632,130                      (785)            631,345
    Capital contributions (net)                3,620,644                                     3,620,644
    Fixed assets - net                        65,119,782                                    65,119,782
    Net working capital                        6,621,808                 210,588             6,832,396
    Total assets                              74,129,057                 321,954            74,451,011
    Bonds and other
      long-term liabilities                   26,403,227                                    26,403,227
    Total equity                              45,338,363                 210,588            45,548,951


                                                                           Management
                                        Fleet           City Hall         Information
                                     Maintenance       Maintenance          Systems
   Internal Service Funds               Fund              Fund               Fund             Total
    Operating revenues               $    719,985      $    85,775        $    584,082     $ 1,389,842
    Depreciation                           28,028              218             269,126         297,372
    Operating income (loss)                (3,576)          16,008            (159,296)       (146,864)
    Net income (loss)                       3,295           20,315            (150,161)       (126,551)

                                              49
    Fixed assets - net                   193,453              109           348,317          541,879
    Net working capital                  160,607           85,795           133,677          380,079
    Total assets                         369,285           86,783           497,435          935,503
    Bonds and other
      long-term liabilities               23,610            1,506             8,556           33,672
    Total equity                         330,450           84,398           473,438          888,286



Note 15. Intergovernmental Assistance Programs

     City of Jacksonville is an entitlement City for Community Development Block Grant funds. The
     City is required to administer the program and provide staff necessary to ensure compliance with
     Grant stipulations.


Note 16. Interfund Transfers

     Transfers of resources from a fund receiving revenue to the fund through which the resources are
     to be expended are recorded as operating transfers, and are reported as other financing sources
     (uses) in the Governmental funds and nonoperating revenues (expenses) in the Proprietary funds.
     Transfers within fund types have been eliminated.


     Interfund transfers for the year ended June 30, 2000 are as follows:
                                                                             Transfers
                                                                    From                    To
            General
              Capital Projects                              $    398,000           $ 2,637,534
              Special Revenue                                     71,068               265,396
            Special Revenue
              General                                            265,396                 71,068
              Capital Projects                                                            2,496
            Capital Projects
              General                                         2,637,534                 398,000
              Special Revenue                                     2,496
                                                            $ 3,374,494            $ 3,374,494



Note 17. Summary Disclosure of Significant Contingencies

     Audits of Federal and State Grants

     The City has received proceeds from several federal and State grants. Periodic audits of these
     grants are required and certain costs may be questioned as not being appropriate expenditures
     under the grant agreements. Federal and State financial assistance audits could result in the
     refund of grant money to the grantor agencies. Management believes that any required refunds
     from audit of other federal and State financial assistance will be immaterial. No provision has
     been made in the accompanying financial statements for the possible refund of grant money.


Note 18. Pending GASB Statements

     At June 30, 2000, the Governmental Accounting Standards Board (GASB) had issued three
     statements not yet implemented by City of Jacksonville. The statements which might impact
     City of Jacksonville are as follows:


                                            50
No. 33, “Accounting and Financial reporting for Nonexchange Transactions,” (issued in
December, 1998 and amended by GASB Statement No. 36, issued in April, 2000), will be
effective for the fiscal year ending after June 30, 2000. Statement No. 33 imposes new standards
for the timing of the recognition of revenue in certain nonexchange transactions. Nonexchange
transaction types affected are: derived tax revenues such as sales tax, imposed nonexchange
revenues such as property taxes, government-mandated nonexchange transactions such as
federal- or state-mandated programs and voluntary nonexchange transactions such as certain
grants or private contributions. Management of City of Jacksonville continues to study the
statement provisions, and has not yet determined what effect, if any, Statement No. 33 will have
on the financial condition or recognition and presentation of nonexchange transactions.

No. 34, “Basic Financial Statements - and Management Discussion and Analysis - For State and
Local Governments,” issued June, 1999, will be effective for City of Jacksonville, based on its
revenues, for the fiscal year ending June 30, 2003. Statement No. 34, summarized below,
imposes new standards for financial reporting. Management has not yet completed their
assessment of this statement; however, it will have a material effect on the overall financial
statement presentation for City of Jacksonville.

The new financial statement guidelines embodied in Statement No. 34 are the culmination of
many years of study and deliberation by the GASB.

Under GASB Statement No. 34, financial managers will be required to share their insights in
management’s discussion and analysis (MD&A) that gives readers an analysis of the
government’s overall financial position and results of the previous year’s operations.

Financial statements will be presented under a dual perspective--a government-wide perspective
(new) and a fund level perspective. For the first time, the annual report will include government-
wide financial statements prepared using full accrual accounting for all of the government’s
activities, not just those that cover costs by charging a fee for services, as was previously
required. Governments will report all capital assets, including infrastructure, in a government-
wide statement of net assets and will report depreciation expense, the cost of using up capital
assets, in the statement of activities. Infrastructure assets will be reported, but may not be
required to be depreciated under certain circumstances. The net assets of a government will be
broken down into three categories: invested in capital assets, net of related debt; restricted; and
unrestricted. A statement of activities will be presented in at least the same level of detail
provided in the governmental fund statements--generally, expenses and program revenues by
function. Program expenses will include all direct expenses; governments that allocate overhead
and other indirect expenses to individual programs will show the allocation in a separate column.
 Special and extraordinary items will be reported separately from other revenues and expenses.
This way, users will see if the government’s conventional, recurring revenues and expenses
balanced.

Statement 34 requires governments to continue to present fund level financial statements with
information about funds. The focus of these fund-based statements has been sharpened,
however, by requiring governments to report information about their most important or major
funds (those whose revenues, expenditures/expenses, assets or liabilities are at least ten (10%)
percent of the total for their fund category or type (governmental or enterprise) and at least five
(5%) percent of the aggregate amount for all governmental and enterprise funds), including a
government’s general fund. Fund-based statements for governmental activities (generally, those


                                        51
supported by tax revenues) will continue to report the flow of current financial resources
(generally, cash and other assets that can easily be converted to cash).

To help users understand and assess the relationship between fund-based and government-wide
financial statements, governments will present a summary reconciliation that will show the
interplay between the two types of statements.

Governments will continue to provide budgetary comparison information in their annual reports
as required supplementary information. An important change, however, is a requirement to add
the government’s original budget to the current comparison of final budget and actual results.




                                      52
       Required Supplemental
          Financial Data


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

Schedule of Funding Progress for the Law Enforcement
Officers' Special Separation Allowance

Schedule of Employer Contributions for the Law
Enforcement Officers' Special Separation Allowance

Notes to the Required Schedules for the Law
Enforcement Officers’ Special Separation Allowance




                             53
                       City of Jacksonville, North Carolina              Exhibit F-1
                Law Enforcement Officers' Special Separation Allowance
                        Required Supplementary Information
                           Schedule of Funding Progress


                         Actuarial
                          Accrued
                         Liability                                          UAAL
            Actuarial      (AAL)      Unfunded                             as a %
Actuarial   Value of     Projected      AAL        Funded     Covered     of Covered
Valuation    Assets     Unit Credit   (UAAL)       Ratio      Payroll      Payroll
  Date         (a)          (b)        (b-a)        (a/b)       (c)       ((b-a/c))
12/31/94    $227,862      $371,767    $143,905     61.29%   $2,369,419        6.07%
12/31/95     234,628       446,733     212,105     52.52     2,446,787        8.67
12/31/96     264,687       519,331     254,694     50.97     2,527,502       10.07
12/31/97     288,909       674,134     385,225     42.87     2,872,507       13.41
12/31/98     322,942       730,303     407,361     44.22     2,880,521       14.14
12/31/99     351,546       767,213     415,667     45.82     3,211,861       12.94




                                        54
                     City of Jacksonville, North Carolina                       Exhibit F-2
            Law Enforcement Officers' Special Separation Allowance
                      Required Supplementary Information
                      Schedule of Employer Contributions



            Year Ended            Annual Required            Percentage
             June 30,              Contributions            Contributed
                1992                  $26,541                  100%
                1993                   33,350                  126
                1994                   32,620                   98
                1995                   36,489                  112
                1996                   47,468                  130
                1997                   47,468                  111
                1998                   52,850                  129
                1999                   68,184                  107
                2000                   72,776                   33




Notes to the Required Schedules:
      The information presented in the required supplementary schedules
      was determined as part of the actuarial valuations at the dates
      indicated. Additional information as of the latest actuarial
      valuation follows.
        Valuation date                              12/31/99
        Actuarial cost method                       Projected unit credit
        Amortization method                         Level dollar amount closed
        Remaining amortization period               20 Years
        Asset valuation method                      Market value
        Actuarial assumptions:
          Investment rate of return                 7.25%
          Projected salary increases *              Ranging from 4.4% to 8.5%
        * Includes inflation at                     3.75%
          Cost-of-living adjustments                None




                                            55
            The General Fund


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




                             56
                            City of Jacksonville, North Carolina       Statement 1
                                        General Fund
                                 Comparative Balance Sheets
                                   June 30, 2000 and 1999


                                                           2000           1999
                                                       ───────────   ───────────
Assets
Current Assets:
  Cash and investments                                $ 9,435,305    $ 9,507,196
  Taxes receivable (net)                                  551,110        474,246
  Accounts receivable (net)                             2,701,420      3,027,800
  Due from other funds                                    153,717
  Interfund receivables                                                   60,732
  Inventories                                                2,119         1,371
  Prepaid items                                              5,400         3,847
                                                       ───────────   ───────────
  Total Current Assets                                  12,849,071    13,075,192
                                                       ───────────   ───────────
Restricted Assets:
  Cash and investments                                    701,797        730,743
                                                      ───────────    ───────────
  Total Restricted Assets                                 701,797        730,743
                                                      ───────────    ───────────
   Total Assets                                       $13,550,868    $13,805,935
                                                      ═══════════    ═══════════
Liabilities and Fund Balances
Current Liabilities:
  Accounts payable and accrued liabilities            $ 1,333,533    $ 1,221,679
  Due to other funds                                      116,818         87,126
  Compensated absences payable                            273,969        265,740
                                                      ───────────    ───────────
  Total Current Liabilities                             1,724,320      1,574,545
                                                      ───────────    ───────────
 Noncurrent Liabilities:
  Customer deposits                                         7,149         31,952
  Deferred revenue                                        773,065      1,030,696
                                                      ───────────    ───────────
  Total Noncurrent Liabilities                            780,214      1,062,648
                                                      ───────────    ───────────
   Total Liabilities                                    2,504,534      2,637,193
                                                      ───────────    ───────────
Fund Balances:
Fund Balance - Reserved:
  Reserved by state statute                             2,855,138      2,639,458
  Reserved for compensating balance                        52,000         52,000
  Reserved for unearned donations                                         15,338
  Reserved for encumbrances                               519,276        761,467
  Reserved for inventory                                    2,119          1,371
  Reserved for installment purchase                       365,008        531,726
  Reserved for Powell Bill                                163,231         28,406
  Reserved for prepaid items                                5,400          3,847
  Reserved for drug enforcement                           106,651        103,274
                                                      ───────────    ───────────
  Total Reserved                                        4,068,823      4,136,887
                                                      ───────────    ───────────
Fund Balance - Unreserved/Designated:
  Designated for insurance                                322,877        306,276
  Designated for subsequent year's expenditures         1,924,332      1,090,083
                                                      ───────────    ───────────
  Total Unreserved/designated                           2,247,209      1,396,359
                                                      ───────────    ───────────
  Undesignated                                          4,730,302      5,635,496
                                                      ───────────    ───────────
   Total Fund Balances                                 11,046,334     11,168,742
                                                      ───────────    ───────────
Total Liabilities and Fund Balances                   $13,550,868    $13,805,935
                                                      ═══════════    ═══════════




                                      57
                                  City of Jacksonville, North Carolina                 Statement 2
                                                 General Fund                            Page 1 of 7
                                    Statement of Revenues, Expenditures and
                                 Changes in Fund Balances - Budget and Actual
                                    For the Fiscal Year Ended June 30, 2000
                       With Comparative Totals for the Fiscal Year Ended June 30, 1999



                                                                   2000                            1999
                                                                                Variance
                                                                                Favorable
                                               Budget            Actual       (Unfavorable)      Actual
                                            ────────────      ────────────    ────────────    ────────────
Revenues
 Ad valorem taxes:
  Current year (net of discounts)           $  7,961,283      $  8,015,753    $     54,470    $  7,707,472
  Prior years                                    159,951           145,583         (14,368)        140,088
  Penalties and interest                          30,000            43,526          13,526          41,429
                                            ────────────      ────────────    ────────────    ────────────
    Total                                      8,151,234         8,204,862          53,628       7,888,989
                                            ────────────      ────────────    ────────────    ────────────

 Other taxes and licenses:
  CATV franchise tax                             245,000           258,925          13,925         242,305
  Privilege licenses                             345,452           104,425        (241,027)        596,001
  Intangibles tax                                186,826           186,665            (161)        185,939
  Local option sales tax                       3,116,821         3,149,399          32,578       2,992,178
  One-half cent sales tax (1983)               2,662,585         2,694,813          32,228       2,574,958
  One-half cent sales tax (1986)               2,641,519         2,672,622          31,103       2,554,525
                                            ────────────      ────────────    ────────────    ────────────
    Total                                      9,198,203         9,066,849        (131,354)      9,145,906
                                            ────────────      ────────────    ────────────    ────────────

 Unrestricted intergovernmental revenues:
  Inventory tax reimbursement                    285,174           283,596          (1,578)        283,981
  Senior citizens exemption                        7,157             7,157                          10,035
  Utility franchise tax                        1,272,575         1,498,650         226,075       1,332,747
  Beer and wine tax                              313,419           318,243           4,824         311,767
  Food stamp tax reimbursement                    37,000            37,067              67          37,185
  Payment in lieu of taxes (PILOT)                 2,634             2,420            (214)          1,870
  State Owned Buildings Fire Protection              967               967                             967
  ABC revenue                                     30,638            20,480         (10,158)         23,609
                                            ────────────      ────────────    ────────────    ────────────
     Total                                     1,949,564         2,168,580         219,016       2,002,161
                                            ────────────      ────────────    ────────────    ────────────

 Restricted intergovernmental revenues:
  State - mosquito control grant                     12,337                        (12,337)          13,695
  State - tree planting grant                                                                         1,300
  State - street-aid allocation                 2,031,253         2,031,253                       2,020,730
  State - C.A.M.A. Permits                            100               300            200              100
  State - 104F transportation grant               104,000           126,597         22,597          144,050
  State - Hurricane Bonnie (FEMA)                                    60,873         60,873          216,442
  State - Hurricane Fran (FEMA)                                      15,570         15,570          476,062
  State - Hurricane Dennis (FEMA)                 30,000             27,717         (2,283)
  State - Hurricane Floyd (FEMA)                 400,000            221,540       (178,460)
  State - Section 5305 grant                      20,000                           (20,000)         20,000
  State – GHSP 2000 grant                         44,000             35,592         (8,408)
  State – Bureau of Justice Vest grant             8,713              5,860         (2,853)
  State – Wellness Incentive grant                 6,000              6,000
  Local - mobile emission grant                                                                      8,600
  Local - video grant                                                                                6,940
  Local - juvenile transportation                  1,000             2,113           1,113           1,031
  Local - joint drug task force                   25,000            25,798             798          27,482
  Local – Dept of Social Serv Food                 5,000               134          (4,866)
  Local – City of Greenville                      51,200            42,825          (8,375)
  Local – Town of North Topsail                    5,000             3,708          (1,292)
  Local – EAP ongoing grant                        2,100             2,100
  Local – Eastern Carolina Council                 4,686             4,686
                                            ────────────      ────────────    ────────────    ────────────
     Total                                     2,750,389         2,612,666        (137,723)      2,936,432
                                            ────────────      ────────────    ────────────    ────────────




                                                58
                                      City of Jacksonville, North Carolina                   Statement 2
                                                 General Fund                                Page 2 of 7
                                    Statement of Revenues, Expenditures and
                                 Changes in Fund Balances - Budget and Actual
                                    For the Fiscal Year Ended June 30, 2000
                       With Comparative Totals for the Fiscal Year Ended June 30, 1999



                                                              2000                            1999
                                                                           Variance
                                                                           Favorable
                                              Budget          Actual     (Unfavorable)      Actual
                                           ────────────   ────────────   ────────────    ────────────
 Permits and fees:
  Dog pound fees                           $              $              $               $      8,440
  Taxi permits                                    6,000          8,601          2,601           8,039
  Development Review fees                        35,000         35,676            676          39,889
  Inspection fees                               286,550        416,101        129,551         351,053
                                           ────────────   ────────────   ────────────    ────────────
    Total                                       327,550        460,378        132,828         407,421
                                           ────────────   ────────────   ────────────    ────────────
 Sales and services:
  Utility patching service                      34,604          38,064          3,460          34,603
  Utility service fees                           8,300           8,300                          8,299
  Refuse collection fees                        37,000          41,655          4,655          41,272
  Space rent                                    15,345          15,345                         15,345
  Property lease                                                                                    2
  Recreation fees                               146,200        170,111         23,911         153,800
  Recreation concession                           3,379          2,755           (624)          3,004
  Xerox copy and map sales                        7,557          8,908          1,351           6,955
                                           ────────────   ────────────   ────────────    ────────────
    Total                                       252,385        285,138         32,753         263,280
                                           ────────────   ────────────   ────────────    ────────────

 Investment earnings:
  Investment earnings                           393,005        579,900        186,895         718,739
  Investment earnings - drug enforcement          2,150          3,429          1,279           2,551
  Investment earnings - Powell Bill              30,000         26,731         (3,269)         27,064
                                           ────────────   ────────────   ────────────    ────────────
    Total                                       425,155        610,060        184,905         748,354
                                           ────────────   ────────────   ────────────    ────────────

 Miscellaneous:
  Police court fees                              28,716         44,280         15,564           29,607
  Parking fines                                     250            326             76              336
  Program income - Powell Bill                    1,600         14,236         12,636            7,490
  Miscellaneous                                  62,323        113,513         51,190          162,974
  ICMA                                           14,451         14,451
  Worker’s compensation                          37,000         43,603          6,603          57,330
                                           ────────────   ────────────   ────────────    ────────────
    Total                                       144,340        230,409         86,069         257,737
                                           ────────────   ────────────   ────────────    ────────────
    Total revenues                           23,198,820     23,638,942        440,122      23,650,280
                                           ────────────   ────────────   ────────────    ────────────

Expenditures
 General government
  Mayor and council
   Salaries and employee benefits                               32,955                         38,755
   Operating expenses                                           40,441                         63,300
                                           ────────────   ────────────   ────────────    ────────────
    Total                                                       73,396                        102,055
                                           ────────────   ────────────   ────────────    ────────────
  City manager
   Salaries and employee benefits                              322,596                         309,877
   Operating expenses                                           41,170                          41,744
   Maintenance and repair                                           70
   Contracted services                                           3,654
   Capital outlay                                                                               2,061
                                           ────────────   ────────────   ────────────    ────────────
    Total                                                      367,490                        353,682
                                           ────────────   ────────────   ────────────    ────────────




                                                 59
                                     City of Jacksonville, North Carolina                    Statement 2
                                                 General Fund                                 Page 3 of 7
                                    Statement of Revenues, Expenditures and
                                 Changes in Fund Balances - Budget and Actual
                                    For the Fiscal Year Ended June 30, 2000
                       With Comparative Totals for the Fiscal Year Ended June 30, 1999

                                                              2000                             1999
                                                                           Variance
                                                                           Favorable
                                               Budget          Actual    (Unfavorable)      Actual
                                           ────────────   ────────────   ────────────    ────────────
Personnel
 Salaries and employee benefits            $              $    109,136   $               $       41,535
 Operating expenses                                             87,204                           71,881
 Maintenance and repair                                                                              12
 Contracted services                                             5,674                           14,636
 Capital outlay                                                  1,623
                                           ────────────   ────────────   ────────────    ────────────
  Total                                                        203,637                        128,064
                                           ────────────   ────────────   ────────────    ────────────
City clerk
 Salaries and employee benefits                                 59,091                           69,499
 Operating expenses                                             15,771                           17,677
 Maintenance and repair                                             70
 Contracted services                                             3,347
                                           ────────────   ────────────   ────────────    ────────────
  Total                                                         78,279                         87,176
                                           ────────────   ────────────   ────────────    ────────────
Elections
 Operating expenses                                              6,701
                                           ────────────   ────────────   ────────────    ────────────
  Total                                                          6,701
                                           ────────────   ────────────   ────────────    ────────────
Finance
 Salaries and employee benefits                                317,654                        270,767
 Operating expenses                                             74,207                         88,800
 Maintenance and repairs                                           798                            219
 Contracted services                                           142,048                        141,396
 Other departmental expenses                                   231,852                        214,532
 Capital outlay                                                 21,766                          5,958
                                           ────────────   ────────────   ────────────    ────────────
  Total                                                        788,325                        721,672
                                           ────────────   ────────────   ────────────    ────────────
Legal
 Operating expenses                                              6,006                          8,999
 Contracted services                                            72,487                         53,201
                                           ────────────   ────────────   ────────────    ────────────
  Total                                                         78,493                         62,200
                                           ────────────   ────────────   ────────────    ────────────
Planning
 Salaries and employee benefits                                266,749                        212,216
 Operating expenses                                             26,389                         28,995
 Contracted services                                             1,385                         21,163
 Capital outlay                                                  2,048                          2,431
                                           ────────────   ────────────   ────────────    ────────────
  Total                                                        296,571                        264,805
                                           ────────────   ────────────   ────────────    ────────────
Transportation
 Salaries and employee benefits                                 72,578                           66,869
 Operating expenses                                              5,465                            6,139
 Contracted services                                            34,615                          117,157
 Capital outlay                                                  1,875
                                           ────────────   ────────────   ────────────    ────────────
  Total                                                        114,533                        190,165
                                           ────────────   ────────────   ────────────    ────────────
Hurricane Bonnie
 Salaries and employee benefits                                                               237,303
 Operating expenses                                                                            11,044
 Maintenance and repair                                                                         6,425
 Contracted services                                                                          125,134
                                           ────────────   ────────────   ────────────    ────────────
  Total                                                                                       379,906
                                           ────────────   ────────────   ────────────    ────────────



                                                 60
                                    City of Jacksonville, North Carolina                               Statement 2
                                                General Fund                                             Page 4 of 7
                                   Statement of Revenues, Expenditures and
                                Changes in Fund Balances - Budget and Actual
                                   For the Fiscal Year Ended June 30, 2000
                      With Comparative Totals for the Fiscal Year Ended June 30, 1999

                                                                    2000                                  1999
                                                                                  Variable
                                                                                  Favorable
                                             Budget              Actual         (Unfavorable)            Actual
                                          ────────────       ────────────       ────────────           ────────────
 Hurricane Irene
  Salaries and employee benefits          $                  $     10,917       $                  $
  Operating expenses                                                  134
                                          ────────────       ────────────       ────────────       ────────────
   Total                                                           11,051
                                          ────────────       ────────────       ────────────       ────────────
 Hurricane Dennis
  Salaries and employee benefits                                   25,584
  Operating expenses                                                1,785
  Maintenance and repair                                               19
  Other department expenses                                         1,930
                                          ────────────       ────────────       ────────────       ────────────
   Total                                                           29,318
                                          ────────────       ────────────       ────────────       ────────────
 Hurricane Floyd
  Salaries and employee benefits                                     123,533
  Operating expenses                                                  13,336
  Maintenance and repair                                              37,030
  Other department expenses                                          140,852
                                              ────────────       ────────────       ────────────       ────────────
   Total                                                             314,751
                                              ────────────       ────────────       ────────────       ────────────
 Mutual Aide
  Salaries and employee benefits                                      53,739
  Operating expenses                                                   1,062
  Other department expenses                                               21
                                              ────────────       ────────────       ────────────       ────────────
   Total                                                              54,822
                                              ────────────       ────────────       ────────────       ────────────

 Non-departmental
  Salaries and employee benefits                                     16,585                                     33
  Operating expenses                                                160,272                                125,699
  Maintenance and repair                                             12,228                                 11,838
  Contracted service                                                  4,683                                 63,747
  Reserve for insurance deductible                                  234,685                                164,862
  Miscellaneous payments                                            311,615                                205,566
  Payment to Onslow County                                        2,214,879                              2,313,163
  Capital outlay                                                     13,219
  Bad debts                                                                                              10,826
                                          ────────────       ────────────       ────────────       ────────────
   Total                                                        2,968,166                             2,895,734
                                          ────────────       ────────────       ────────────       ────────────

   Total general government                  5,878,855          5,385,533            493,322          5,185,459
                                          ────────────       ────────────       ────────────       ────────────

Public works
 Inspections
  Salaries and employee benefits                                  398,985                               294,729
  Operating expenses                                               48,751                                58,278
  Contracted services                                                 229                                   911
  Capital outlay                                                   31,510                                27,454
                                          ────────────       ────────────       ────────────       ────────────
   Total                                                          479,475                               381,372
                                          ────────────       ────────────       ────────────       ────────────
 Administration
  Salaries and employee benefits                                   78,165                                80,673
  Operating expenses                                               10,122                                13,328
                                          ────────────       ────────────       ────────────       ────────────
   Total                                                           88,287                                94,001
                                          ────────────       ────────────       ────────────       ────────────


                                                   61
                                      City of Jacksonville, North Carolina                     Statement 2
                                                  General Fund                                  Page 5 of 7
                                     Statement of Revenues, Expenditures and
                                  Changes in Fund Balances - Budget and Actual
                                     For the Fiscal Year Ended June 30, 2000
                        With Comparative Totals for the Fiscal Year Ended June 30, 1999



                                                                2000                             1999
                                                                            Variance
                                                                             Favorable
                                               Budget          Actual      (Unfavorable)      Actual
                                            ────────────   ────────────    ────────────    ────────────
 Engineering
  Salaries and employee benefits            $              $     70,442    $               $       65,368
  Operating expenses                                             10,056                             9,773
  Contracted services                                             7,564
                                            ────────────   ────────────    ────────────    ────────────
   Total                                                         88,062                          75,141
                                            ────────────   ────────────    ────────────    ────────────
 Maintenance
  Salaries and employee benefits                                560,267                         521,424
  Operating expenses                                             95,308                          91,739
  Utilities                                                       8,490                           8,038
  Maintenance and repair                                         10,130                          16,665
  Contracted services                                             3,360                           1,250
  Capital outlay                                                106,729                          28,436
                                            ────────────   ────────────    ────────────    ────────────
   Total                                                        784,284                         667,552
                                            ────────────   ────────────    ────────────    ────────────
  Streets - Powell Bill
  Salaries and employee benefits                                734,095                           609,074
  Operating expenses                                            337,919                           274,461
  Maintenance and repair                                         17,685                            11,778
  Contracted services                                               415
  Capital outlay                                                 67,736                         153,081
                                            ────────────   ────────────    ────────────    ────────────
   Total                                                      1,157,850                       1,048,394
                                            ────────────   ────────────    ────────────    ────────────
Streets - non-Powell Bill
  Salaries and employee benefits                                271,348                         245,354
  Operating expenses                                            112,967                          92,200
  Utilities                                                       7,846                           7,461
  Maintenance and repair                                            810                           4,193
  Contracted services                                            36,218                           7,744
  Mosquito control                                               15,622                          18,258
  Street lighting                                               273,289                         269,504
  Capital outlay                                                  6,648                           2,431
                                            ────────────   ────────────    ────────────    ────────────
   Total                                                        724,748                         647,145
                                            ────────────   ────────────    ────────────    ────────────

   Total public works                          3,915,189      3,322,706         592,483       2,913,605
                                            ────────────   ────────────    ────────────    ────────────
Public safety
 Police
  Salaries and employee benefits                               4,430,962                        4,296,357
  Employer contribution to separation
   allowance trust fund                                          24,255                          72,776
  Operating expenses                                            587,171                         586,745
  Utilities                                                      27,448                          27,615
  Maintenance and repair                                         22,470                          23,309
  Contracted services                                            17,399                          28,933
  Drug enforcement                                               25,850                          16,741
  Capital outlay                                                943,512                         223,055
                                            ────────────   ────────────    ────────────    ────────────
   Total                                                      6,079,067                       5,275,531
                                            ────────────   ────────────    ────────────    ────────────




                                                  62
                                       City of Jacksonville, North Carolina                     Statement 2
                                                   General Fund                                  Page 6 of 7
                                      Statement of Revenues, Expenditures and
                                   Changes in Fund Balances - Budget and Actual
                                      For the Fiscal Year Ended June 30, 2000
                         With Comparative Totals for the Fiscal Year Ended June 30, 1999



                                                                 2000                             1999
                                                                             Variance
                                                                              Favorable
                                                Budget           Actual     (Unfavorable)      Actual
                                             ────────────    ────────────   ────────────    ────────────
 Animal control
  Salaries and employee benefits             $               $     2,807    $               $     25,949
  Operating expenses                                               1,091                             750
  Utilities                                                          323                           1,681
  Maintenance and repair                                                                           1,935
                                             ────────────    ────────────   ────────────    ────────────
   Total                                                            4,221                         30,315
                                             ────────────    ────────────   ────────────    ────────────

 Fire
  Salaries and employee benefits                                2,821,567                      2,740,317
  Operating expenses                                              204,176                        204,594
  Utilities                                                        35,696                         36,554
  Maintenance and repair                                           46,896                         23,711
  Contracted services                                              22,305                         27,731
  Capital outlay                                                   53,727                         64,613
                                             ────────────    ────────────   ────────────    ────────────
   Total                                                        3,184,367                      3,097,520
                                             ────────────    ────────────   ────────────    ────────────

   Total public safety                          9,789,374       9,267,655        521,719       8,403,366
                                             ────────────    ────────────   ────────────    ────────────

Environmental protection
 Sanitation
  Salaries and employee benefits                                1,010,907                        948,714
  Operating expenses                                              244,764                        218,229
  Utilities                                                         3,522                          3,200
  Maintenance and repair                                            7,503                          3,100
  Contracted services                                             669,749                        585,599
  Capital outlay                                                  135,463                        206,087
                                             ────────────    ────────────   ────────────    ────────────
   Total environmental protection               2,137,274       2,071,908         65,366       1,964,929
                                             ────────────    ────────────   ────────────    ────────────

Cultural and recreational
 Recreation
  Salaries and employee benefits                                 673,100                         624,005
  Operating expenses                                             197,108                         187,893
  Utilities                                                      114,212                         102,885
  Maintenance and repair                                          63,234                          34,349
  Contracted services                                              5,871                           3,801
  Non-capital equipment                                                                              580
  Capital outlay                                                    9,280                          9,748
                                             ────────────    ────────────   ────────────    ────────────
   Total cultural and recreational              1,140,339       1,062,805         77,534         963,261
                                             ────────────    ────────────   ────────────    ────────────

Debt service
 Principal retirements                            838,085         828,932          9,153         376,310
 Interest and fees                                153,870         167,120        (13,250)        101,100
                                             ────────────    ────────────   ────────────    ────────────
   Total debt service                             991,955         996,052         (4,097)        477,410
                                             ────────────    ────────────   ────────────    ────────────
   Total expenditures                          23,852,986      22,106,659      1,746,327      19,908,030
                                             ────────────    ────────────   ────────────    ────────────

   Revenues over (under) expenditures            (654,166)      1,532,283      2,186,449       3,742,250
                                             ────────────    ────────────   ────────────    ────────────



                                                   63
                                       City of Jacksonville, North Carolina                     Statement 2
                                                   General Fund                                     Page 7 of 7
                                      Statement of Revenues, Expenditures and
                                   Changes in Fund Balances - Budget and Actual
                                      For the Fiscal Year Ended June 30, 2000
                         With Comparative Totals for the Fiscal Year Ended June 30, 1999



                                                                    2000                              1999
                                                                                  Variance
                                                                                  Favorable
                                                  Budget            Actual      (Unfavorable)      Actual
                                               ────────────     ────────────    ────────────    ────────────

Other financing sources (uses):
  Appropriated fund balance                   $   2,306,833     $               $ (2,306,833)   $
  Proceeds from borrowing                           704,400          685,947         (18,453)          727,890
  Sales of general fixed assets                      70,000           89,024          19,024           106,572
  Sales of fixed assets Powell Bill                                    4,200           4,200
  Operating transfers in--
    From Special Revenue Fund                        71,069           71,068              (1)          141,656
    From Capital Project Fund                       398,000          398,000
    From Capital Reserve Fund                                                                            1,935
    From Enterprise Funds                               6,794                         (6,794)
  Operating transfers (out)--
    To Capital Projects Fund                     (2,637,534)      (2,637,534)                     (2,510,353)
    To Special Revenue Fund                        (265,396)        (265,396)                       (119,170)
                                               ────────────     ────────────    ────────────    ────────────
    Total other financing sources (uses)            654,166       (1,654,691)     (2,308,857)     (1,651,470)
                                               ────────────     ────────────    ────────────    ────────────

Excess of revenues and other sources
  over (under) expenditures and other uses    $          0          (122,408)   $   (122,408)        2,090,780
                                              ════════════                      ════════════
Fund balance:
  Beginning of year, July 1                                       11,168,742                       9,077,962
                                                                ────────────                    ────────────
  End of year, June 30                                          $ 11,046,334                    $ 11,168,742
                                                                ════════════                    ════════════




                                                   64
                 Special Revenue Funds

Special Revenue Funds account for the proceeds of special revenue
sources that are legally restricted to expenditure for specific purposes.

Individual Fund Descriptions:

Community Development Grant Fund - accounts for the revenues and
 expenditures of Community Development Block Grant programs.

Law Enforcement Block Grant Fund - accounts for the revenues and
 expenditures of the Law Enforcement Block Grant Program.

COPS Grant Fund - accounts for the revenues and expenditures of the
 COPS Grant Program.

School Resource Officer Grant Fund - accounts for the revenues and
 expenditures of the School Resource Officer Program.

E-911 Fund - accounts for the revenues and expenditures of the
 Enhanced E-911 Operation.

Highway Safety Grant Fund – accounts for the revenues and
 expenditures of the Governor's Highway Safety Grant Program.

HUD Disaster Recovery Grant (DRI) Fund - accounts for the
 revenues and expenditures of the HUD Disaster Recovery Grant
 Program.

Affordable Home Ownership Grant Fund - accounts for the revenues
 and expenditures of the Affordable Home Ownership Grant Program.

Lead Based Paint Grant Fund - accounts for the revenues and
 expenditures of the Lead Based Paint Grant Program.

Emergency Relief Grant Fund – accounts for the revenues and
 expenditures of the Emergency Relief Grant Program.




                                    65
                                           City of Jacksonville, North Carolina
                                                   Special Revenue Fund
                                                 Combining Balance Sheet
                                                     June 30, 2000
                                        With Comparative Totals for June 30, 1999


                                                                                       School
                                                            Law                        Resource
                                          Community      Enforcement      COPS         Officer
                                         Development       Block          Grant        Program       E-911
                                            Fund         Grant Fund       Fund          Fund         Fund
                                        ────────────    ───────────    ───────────   ──────────   ──────────

Assets
  Cash and investments                $       1,637     $   26,259     $     7,973   $   43,521   $   232,814
  Accounts receivable                        24,152                         42,614
  Due from other funds                        2,492                          2,004       1,252
  Prepaid items
                                      ────────────      ───────────    ───────────   ──────────   ──────────
     Total Assets                     $     28,281      $    26,259    $    52,591   $   44,773   $ 232,814
                                      ════════════      ═══════════    ═══════════   ══════════   ══════════

Liabilities and Fund Balances
  Accounts payable and
    accrued liabilities               $      17,656     $    1,544     $   11,196    $   6,270    $   25,387
  Due to other funds                         10,625         15,494         41,395
  Interfund payable
                                        ────────────    ───────────    ───────────   ──────────   ──────────
     Total Liabilities                        28,281         17,038         52,591        6,270       25,387
                                        ────────────    ───────────    ───────────   ──────────   ──────────

Fund Balance - Reserved:
  Reserved for encumbrances                  74,895          3,868            429           195
  Reserved for prepaid items
                                        ────────────    ───────────    ───────────   ──────────   ──────────
  Total Reserved                              74,895          3,868            429          195

  Unreserved/Designated
     Designated for subsequent year's
       expenditures                                          5,353           (429)       38,308       207,427
  Unreserved, undesignated                   (74,895)
                                        ────────────    ───────────    ───────────   ──────────   ──────────
    Total Fund Balance                                        9,221                      38,503      207,427
                                      ────────────      ───────────    ───────────   ──────────   ──────────
Total Liabilities and Fund Balances   $     28,281      $    26,259    $    52,591   $   44,773   $ 232,814
                                      ════════════      ═══════════    ═══════════   ══════════   ══════════




                                                 66
                                                                                          Statement 3




  Highway      HUD Disaster      Affordable     Lead Based                            Totals
  Safety      Recovery Grant   Home Ownership   Paint Grant    Emergency     June 30,       June 30,
   Fund           Fund              Fund           Fund         Relief         2000           1999
──────────     ───────────      ───────────     ──────────    ──────────    ──────────     ──────────


$   19,938    $                $     34,570     $             $      743    $  367,455     $  373,178
     1,059           1,640                           85,360                    154,825         82,707
                                                                                 5,748          5,122
      5,280                                                                      5,280          1,780
───────────   ───────────      ───────────      ──────────    ───────────   ──────────     ──────────
$    26,277   $     1,640      $    34,570      $   85,360    $       743   $ 533,308      $ 462,787
═══════════   ═══════════      ═══════════      ══════════    ═══════════   ══════════     ══════════



$     5,012   $        760     $         73     $        37   $             $    67,935    $   50,134
                       880                           85,323                     153,717         1,312
                                                                                               60,732
───────────    ───────────      ───────────     ──────────    ───────────   ──────────     ──────────
      5,012          1,640               73         85,360                     221,652        112,178
───────────    ───────────      ───────────     ──────────    ───────────   ──────────     ──────────


      6,210         26,860                           24,950                    137,407        336,477
      5,280                                                                      5,280          1,780
───────────    ───────────      ───────────     ──────────    ───────────   ──────────     ──────────
     11,490         26,860                          24,950                     142,687        338,257



      9,775                          34,497                          743       295,674        321,063
                   (26,860)                        (24,950)                   (126,705)      (308,711)
───────────    ───────────     ───────────      ──────────    ───────────   ──────────     ──────────
     21,265                         34,497                            743      311,656        350,609
───────────   ───────────      ───────────      ──────────    ───────────   ──────────     ──────────
$    26,277   $     1,640      $    34,570      $   85,360    $       743   $ 533,308      $ 462,787
═══════════   ═══════════      ═══════════      ══════════    ═══════════   ══════════     ══════════




                                                67
                                           City of Jacksonville, North Carolina
                                                 Special Revenue Fund
                     Combining Statement of Revenues, Expenditures and Changes in Fund Balances
                                       For the Fiscal Year Ended June 30, 2000
                           With Comparative Totals for the Fiscal Year Ended June 30, 1999
                                                                                   School
                                                            Law                    Resource
                                         Community       Enforcement     COPS      Officer
                                         Development       Block         Grant     Program        E-911
                                           Fund          Grant Fund      Fund       Fund          Fund
                                        ────────────    ───────────   ─────────── ──────────   ──────────
Revenues:
  Interest earned on investments       $         914    $          1,423    $              $     1,961   $      14,387
  Entitlement grant 1997                     200,009
  Entitlement grant 1998                     533,000
  Entitlement grant 1999                      14,776
  Lead based paint grant
  Law enforcement block grant                                    134,489
  COPS universal hiring grant                                                   235,100
  Onslow county board of education                                                             200,000
  Emergency relief
  Phone surcharge fee                                                                                           199,956
  HUD disaster recover grant
  Home ownership assistance
  Miscellaneous                                  625
  Program income                             102,763
                                       ────────────     ───────────         ─────────── ──────────       ──────────
    Total revenues                           852,087         135,912             235,100    201,961          214,343
                                        ────────────     ───────────         ─────────── ──────────       ──────────
Expenditures:
  Entitlement 1997                     $     213,763    $                   $              $             $
  Entitlement 1998                           631,513
  Entitlement 1999                            15,844
  Law enforcement block grant                                    167,963
  COPS grant project                                                            375,835
  School resource officer program                                                              210,970
  Emergency relief
  E-911                                                                                                        257,245
  HUD disaster recovery grant
  Home ownership assistance
  Lead based paint program
                                     ────────────        ───────────        ─────────── ──────────           ──────────
    Total expenditures                    861,120            167,963            375,835    210,970              257,245
                                     ────────────        ───────────        ─────────── ──────────           ──────────
  Revenues over (under) expenditures       (9,033)           (32,051)          (140,735)    (9,009)             (42,902)
                                     ────────────        ───────────        ─────────── ──────────           ──────────

Other financing sources (uses):
 Operating transfers in                                            8,411        163,935     58,200
 Operating transfers (out)                    (9,069)                           (31,586)   (39,482)
                                        ────────────     ───────────        ─────────── ──────────           ──────────
    Total other financing
      sources (uses)                          (9,069)          8,411            132,349        18,718
                                        ────────────     ───────────        ───────────    ──────────        ──────────

Excess of revenues and other
  sources over (under) expenditures
  and other uses                             (18,102)            (23,640)        (8,386)         9,709         (42,902)

Fund balances:
  Beginning of year, July 1                                       32,861          8,386         28,794         250,329
  Residual equity transfer in                18,102
                                       ────────────      ───────────        ───────────    ──────────     ──────────
  End of year, June 30                 $          0      $     9,221        $         0    $   38,503     $ 207,427
                                       ════════════      ═══════════        ═══════════    ══════════     ══════════

Note: Reconciliation of Operating Transfers in (out) to Exhibit B.

      Operating Transfers in--        $ 271,969                     Operating Transfers (out)--          $     80,137
       Less Transfers within                                         Less Transfers within
        the Special Revenue Funds        (6,573)                      the Special Revenue Funds             (6,573)
                                      ─────────                                                          ─────────
      Operating Transfers in                                        Operating Transfers (out)
       Exhibit B                      $ 265,396                      Exhibit B                           $ 73,564
                                      ═════════                                                          ═════════


                                                            68
                                                                                        Statement 4




  Highway     HUD Disaster     Affordable                                          Totals
  Safety       Recovery      Home Ownership   Lead Based     Emergency      June 30,      June 30,
Grant Fund    Grant Fund         Fund         Paint Fund    Relief Fund      2000           1999
──────────    ───────────     ───────────     ──────────    ───────────   ───────────   ───────────

$             $              $      1,525     $             $             $    20,210     $     21,394
                                                                              200,009          322,559
                                                                              533,000
                                                                               14,776
                                                  116,506                     116,506
    24,688                                                                    159,177
                                                                              235,100          151,690
                                                                              200,000          262,010
                                                                  4,473         4,473
                                                                              199,956          199,114
                    1,940                                                       1,940
                                   72,378                                      72,378          64,731
                                                      390                       1,015           9,228
                                    9,648                                     112,411         136,446
──────────    ───────────     ───────────     ──────────    ───────────   ───────────     ───────────
    24,688          1,940          83,551        116,896          4,473     1,870,951       1,167,172
──────────    ───────────     ───────────     ──────────    ───────────   ───────────     ───────────

                                                                              213,763          450,345
                                                                              631,513
                                                                               15,844
    38,273                                                                    206,236           37,621
                                                                              375,835          523,516
                                                                              210,970          202,390
                                                                  3,730         3,730
                                                                              257,245          111,263
                    1,940                                                       1,940
                                   79,293                                      79,293          99,742
                                                 123,469                      123,469          12,027
──────────    ───────────     ───────────     ──────────    ───────────   ───────────     ───────────
    38,273          1,940          79,293        123,469          3,730     2,119,838       1,436,904
──────────    ───────────     ───────────     ──────────    ───────────   ───────────     ───────────
   (13,585)                         4,258         (6,573)           743      (248,887)       (269,732)
──────────    ───────────     ───────────     ──────────    ───────────   ───────────     ───────────


    34,850                                         6,573                      271,969         149,616
                                                                              (80,137)       (172,481)
──────────    ───────────     ───────────     ──────────    ───────────   ───────────     ───────────

    34,850                                         6,573                      191,832         (22,865)
──────────    ───────────     ───────────     ──────────    ───────────   ───────────     ───────────



    21,265                          4,258                           743       (57,055)        (292,597)


                                   30,239                                     350,609         632,330
                                                                               18,102          10,876
──────────    ───────────    ───────────      ──────────    ───────────   ───────────     ───────────
$   21,265    $         0    $    34,497      $        0    $       743   $   311,656     $   350,609
══════════    ═══════════    ═══════════      ══════════    ═══════════   ═══════════     ═══════════




                                                     69
                                       City of Jacksonville, North Carolina                   Schedule 5
                                             Special Revenue Fund
                                       Community Development Grant Project
                                      Schedule of Revenues, Expenditures and
                                   Changes in Fund Balances - Budget and Actual
                             From Inception and for the Fiscal Year Ended June 30, 2000


                                                 Project                        Actual
                                               Authorization    Prior Years   Current Year   Total to Date
                                               ────────────    ────────────   ────────────    ────────────
Revenues:
  Entitlement Grant 1997
    Entitlement Grant 1997                     $    586,000    $    385,991   $    200,009   $     586,000
    Program income                                  335,570         220,562         12,393         232,955
                                               ────────────    ────────────    ───────────    ────────────
      Total                                         921,570         606,553        212,402         818,955
                                               ────────────    ────────────    ───────────    ────────────
  Entitlement Grant 1998
    Entitlement Grant 1998                          533,000                        533,000         533,000
    Program income                                  106,917                         90,995          90,995
    Interest income                                                                    914             914
                                               ────────────    ────────────    ───────────    ────────────
      Total                                         639,917                        624,909         624,909
                                               ────────────    ────────────    ───────────    ────────────
  Entitlement Grant 1999
    Entitlement Grant 1999                          537,000                        14,776          14,776
    Program income                                   86,000
                                               ────────────    ────────────    ───────────    ────────────
      Total                                         623,000                         14,776          14,776
                                               ────────────    ────────────    ───────────    ────────────
Total revenues                                    2,184,487         606,553        852,087       1,458,640
                                               ────────────    ────────────    ───────────    ────────────

Expenditures:
  Entitlement Grant 1997
   Administration                                   177,007         123,130         24,052         147,182
   Home ownership assistance                          5,014           5,014                          5,014
   Housing rehabilitation                             1,958           1,958                          1,958
   Temporary relocation                               1,898           1,898                          1,898
   Emergency rehabilitation                          16,331           8,735            662           9,397
   Clearance                                         82,894          74,037          7,537          81,574
   Sybill Street project                                 23              22                             22
   Downtown strategic plan                            4,166           4,165                          4,165
   Acquisition of property                           77,439           8,813        68,626           77,439
   Commercial rehabilitation                         56,029          49,267         6,763           56,030
   City school project                              302,660         197,284        90,788          288,072
   Rehabilitation planning                          169,960         142,858        15,335          158,193
   Capital outlay                                     7,211           7,211                          7,211
                                               ────────────    ────────────    ───────────    ────────────
     Total                                          902,590         624,392        213,763         838,155
                                               ────────────    ────────────    ───────────    ────────────
  Entitlement Grant 1998
   Administration                                   108,454                        87,986          87,986
   Clearance                                         64,924                        99,379          99,379
   Water sewer improvements                           2,884                         2,884           2,884
   Acquisition of property                           10,000                         6,592           6,592
   Commercial rehabilitation                              1
   City school project                              346,053                        378,167         378,167
   Rehabilitation planning                           96,060                         52,939          52,939
   Capital outlay                                     3,566                          3,566           3,566
                                               ────────────    ────────────    ───────────    ────────────
     Total                                          631,942                        631,513         631,513
                                               ────────────    ────────────    ───────────    ────────────




                                                    70
                                    City of Jacksonville, North Carolina                      Schedule 5
                                          Special Revenue Fund                                Continued
                                    Community Development Grant Project
                                   Schedule of Revenues, Expenditures and
                                Changes in Fund Balances - Budget and Actual
                          From Inception and for the Fiscal Year Ended June 30, 2000


                                               Project                         Actual
                                             Authorization    Prior Years    Current Year    Total to Date
                                             ────────────    ────────────    ────────────     ────────────
  Entitlement Grant 1999
   Administration                            $    124,600    $               $        976    $         976
   Home ownership assistance                        5,000
   Housing rehabilitation                          73,323
   Neighborhood facility                           70,000
   Clearance                                       72,000
   Water sewer improvements                         2,600
   Acquisition of property                         11,724
   City school project                            181,425                          14,793           14,793
   Rehabilitation planning                         82,328                              75               75
                                             ────────────    ────────────     ───────────     ────────────
     Total                                        623,000                          15,844           15,844
                                             ────────────    ────────────     ───────────     ────────────
Total expenditures                              2,157,532         624,392         861,120        1,485,512
                                             ────────────    ────────────    ────────────     ────────────
      Excess of revenues over
        (under) expenditures                       26,955         (17,839)         (9,033)         (26,872)
                                             ────────────    ────────────    ────────────     ────────────
Other financing (uses):
  Operating transfers (out)--
    To Street Improvements capital project         (2,496)                         (2,496)          (2,496)
    To Georgetown Park capital project               (380)           (379)                            (379)
    To Lead Based Paint Grant                     (24,079)        (12,027)         (6,573)         (18,600)
                                             ────────────    ────────────    ────────────     ────────────
    Total other financing (uses)                  (26,955)        (12,406)         (9,069)         (21,475)
                                             ────────────    ────────────    ────────────     ────────────
    Excess of revenues (under)
      expenditures and other uses            $          0    $    (30,245)        (18,102)   $    (48,347)
                                             ════════════    ────────────                    ────────────
Fund balances:
  Residual equity transfer in--
    From Nonexpendable Trust Fund                                  30,245          18,102          48,347
                                                             ────────────    ────────────    ────────────
  End of year, June 30                                       $          0    $          0    $          0
                                                             ════════════    ════════════    ════════════




                                                  71
                                     City of Jacksonville, North Carolina                        Schedule 6
                                             Special Revenue Fund
                                        Law Enforcement Block Grant Project
                                      Schedule of Revenues, Expenditures and
                                   Changes in Fund Balances - Budget and Actual
                             From Inception and for the Fiscal Year Ended June 30, 2000


                                                   Project                          Actual
                                                 Authorization      Prior Years   Current Year    Total to Date
                                                 ────────────      ────────────   ────────────     ────────────
Revenues:
  1998 Grant
   Law Enforcement Block Grant                   $     50,090      $     69,080   $    (18,990)    $     50,090
   Investment earnings                                  2,520             3,119           (598)           2,521
                                                 ────────────      ────────────   ────────────     ────────────
    Total                                              52,610            72,199        (19,588)          52,611
                                                 ────────────      ────────────   ────────────     ────────────
  1999 Grant
   Law Enforcement Block Grant                         77,782                           77,782           77,782
   Investment earnings                                  1,600                            1,667            1,667
                                                 ────────────      ────────────   ────────────     ────────────
    Total                                              79,382                           79,449           79,449
                                                 ────────────      ────────────   ────────────     ────────────
  2000 Grant
   Law Enforcement Block Grant                            75,697                        75,697           75,697
   Investment earnings                                                                     354              354
                                                 ────────────      ────────────   ────────────     ────────────
    Total                                              75,697                           76,051           76,051
                                                 ────────────      ────────────   ────────────     ────────────
Total revenues                                        207,689            72,199        135,912          208,111
                                                 ────────────      ────────────   ────────────     ────────────
Expenditures:
  1998 Grant
   Operating expenditures                                                47,896            750           48,646
   Capital outlay                                                         7,760                           7,760
                                                 ────────────      ────────────   ────────────     ────────────
    Total                                              60,286            55,656            750           56,406
                                                 ────────────      ────────────   ────────────     ────────────
  1999 Grant
   Capital outlay                                                                       83,263           83,263
                                                 ────────────      ────────────   ────────────     ────────────
    Total                                              88,024                           83,263           83,263
                                                 ────────────      ────────────   ────────────     ────────────
  2000 Grant
   Capital outlay                                                                       83,950           83,950
                                                 ────────────      ────────────   ────────────     ────────────
    Total                                              84,108                           83,950           83,950
                                                 ────────────      ────────────   ────────────     ────────────
Total expenditures                                    232,418            55,656        167,963          223,619
                                                 ────────────      ────────────   ────────────     ────────────
      Excess of revenues over
        (under) expenditures                          (24,729)           16,543        (32,051)         (15,508)
                                                 ────────────      ────────────   ────────────     ────────────
Other financing sources:
  Operating transfers in--
    From General Fund                                  24,729            16,318          8,411           24,729
                                                 ────────────      ────────────   ────────────     ────────────
    Total other financing sources                      24,729            16,318          8,411           24,729
                                                 ────────────      ────────────   ────────────     ────────────
    Excess of revenues and other sources
      over (under) expenditures and
      other uses                                 $          0      $     32,861        (23,640)    $      9,221
                                                 ════════════      ────────────   ────────────     ════════════
Fund balances:
   Beginning of year, July 1                                                            32,861
                                                                   ────────────   ────────────
   End of year, June 30                                            $     32,861   $      9,221
                                                                   ════════════   ════════════




                                                     72
                                    City of Jacksonville, North Carolina                      Schedule 7
                                            Special Revenue Fund
                                             COPS Grant Project
                                    Schedule of Revenues, Expenditures and
                                 Changes in Fund Balances - Budget and Actual
                           From Inception and for the Fiscal Year Ended June 30, 2000


                                               Project                         Actual
                                             Authorization    Prior Years    Current Year    Total to Date
                                             ────────────    ────────────    ────────────     ────────────
Revenues:
 COPS
  COPS universal hiring grant                $    671,992    $    151,690    $   168,484     $     320,174
  Investment earnings                              11,300           6,467                            6,467
                                             ────────────    ────────────    ────────────     ────────────
    Total                                         683,292         158,157         168,484          326,641
                                             ────────────    ────────────    ────────────     ────────────
 Troops to Cops
  Troops to Cops grant                             67,697                          66,616           66,616
                                             ────────────    ────────────    ────────────     ────────────
    Total                                          67,697                          66,616           66,616
                                             ────────────    ────────────    ────────────     ────────────
Total revenues                                    750,989         158,157         235,100          393,257
                                             ────────────    ────────────    ────────────     ────────────
Expenditures:
 COPS
  Salaries and employee benefits                                  216,236         301,203          517,439
  Operating expenditures                                           44,025          26,030           70,055
  Capital outlay                                                  269,326         (18,014)         251,312
                                             ────────────    ────────────    ────────────     ────────────
     Total                                      1,190,950         529,587         309,219          838,806
                                             ────────────    ────────────    ────────────     ────────────
 Troops to Cops
  Operating expenditures                                                           48,030           48,030
  Capital outlay                                                                   18,586           18,586
                                             ────────────    ────────────    ────────────     ────────────
     Total                                         67,697                          66,616           66,616
                                             ────────────    ────────────    ────────────     ────────────
Total expenditures                              1,258,647                         375,835          905,422
                                             ────────────    ────────────    ────────────     ────────────
      Excess of revenues (under)
        expenditures                             (507,658)       (371,430)       (140,735)        (512,165)
                                             ────────────    ────────────    ────────────     ────────────
Other financing sources (uses):
  Installment purchase proceeds                  220,286         200,574                          200,574
  Operating transfers in--
    From General Fund                             374,762         210,827        163,935          374,762
  Operating transfers (out)--
    To General Fund                               (87,390)        (31,585)        (31,586)         (63,171)
                                             ────────────    ────────────    ────────────     ────────────
    Total other financing sources                 507,658         379,816         132,349          512,165
                                             ────────────    ────────────    ────────────     ────────────
Excess of revenues and other sources
  over (under) expenditures and other uses   $          0           8,386          (8,386)   $          0
                                             ════════════    ────────────    ────────────    ════════════

Fund balances:
   Beginning of year, July 1                                                        8,386
                                                             ────────────    ────────────
   End of year, June 30                                      $      8,386    $          0
                                                             ════════════    ════════════




                                                  73
                                    City of Jacksonville, North Carolina                     Schedule 8
                                            Special Revenue Fund
                                     School Resource Officer Grant Project
                                    Schedule of Revenues, Expenditures and
                                 Changes in Fund Balances - Budget and Actual
                          From Inception and for the Fiscal Year Ended June 30, 2000


                                               Project                         Actual
                                             Authorization    Prior Years    Current Year    Total to Date
                                             ────────────    ────────────    ────────────     ────────────
Revenues:
  Onslow county board of education           $    470,217    $    270,216    $    200,000    $     470,216
  Investment earnings                               4,100           2,247           1,961            4,208
                                             ────────────    ────────────    ────────────     ────────────
    Total revenues                                474,317         272,463         201,961          474,424
                                             ────────────    ────────────    ────────────     ────────────

Expenditures:
  Salaries and employee benefits                                  197,874        198,512           396,386
  Operating expenditures                                           11,278         12,458            23,736
  Capital outlay                                                    2,280                            2,280
                                             ────────────    ────────────    ────────────     ────────────
    Total expenditures                            460,419         211,432         210,970          422,402
                                             ────────────    ────────────    ────────────     ────────────

      Excess of revenues over
        (under) expenditures                       13,898          61,031          (9,009)          52,022
                                             ────────────    ────────────    ────────────     ────────────
Other financing sources (uses):
  Operating transfers in--
    From General Fund                              65,445           7,245         58,200           65,445
  Operating transfers (out)--
    To General Fund                               (79,343)        (39,482)        (39,482)         (78,964)
                                             ────────────    ────────────    ────────────     ────────────
    Total other financing sources (uses)          (13,898)        (32,237)         18,718          (13,519)
                                             ────────────    ────────────    ────────────     ────────────
Excess of revenues and other sources
  over expenditures and other uses           $          0          28,794           9,709    $     38,503
                                             ════════════    ────────────    ────────────    ════════════
Fund balances:
   Beginning of year, July 1                                                       28,794
                                                             ────────────    ────────────
   End of year, June 30                                      $     28,794    $     38,503
                                                             ════════════    ════════════




                                                  74
                                    City of Jacksonville, North Carolina                     Schedule 9
                                            Special Revenue Fund
                                                   E-911
                                    Schedule of Revenues, Expenditures and
                                 Changes in Fund Balances - Budget and Actual
                           From Inception and for the Fiscal Year Ended June 30, 2000


                                               Project                         Actual
                                             Authorization    Prior Years    Current Year    Total to Date
                                             ────────────    ────────────    ────────────     ────────────
Revenues:
  Interest earned on investments             $     37,533    $     22,950    $    14,387      $     37,337
  Phone surcharge fee                             614,311         390,075        199,956           590,031
  Miscellaneous                                     9,228           9,228                            9,228
                                             ────────────    ────────────    ────────────     ────────────
    Total revenues                                661,072         422,253         214,343          636,596
                                             ────────────    ────────────    ────────────     ────────────

Expenditures:
  Other departmental expenditures                                 196,666         234,837          431,503
  Capital outlay                                                    5,750          22,408           28,158
                                             ────────────    ────────────    ────────────     ────────────
    Total expenditures                            519,894         202,416         257,245          459,661
                                             ────────────    ────────────    ────────────     ────────────

      Excess of revenues over
        (under) expenditures                      141,178         219,837         (42,902)         176,935
                                             ────────────    ────────────    ────────────     ────────────
Other financing (uses):
  Operating transfers (out)--
    To General Fund                              (141,178)       (141,178)                        (141,178)
                                             ────────────    ────────────    ────────────     ────────────
    Total other financing (uses)                 (141,178)       (141,178)                        (141,178)
                                             ────────────    ────────────    ────────────     ────────────
Excess of revenues and other sources
  over (under) expenditures and other uses   $          0         78,659         (42,902)         (35,757)
                                             ════════════
Fund balances:
   Beginning of year, July 1                                                      250,329
   Residual equity transfer in                                    171,670                         171,670
                                                             ────────────    ────────────    ────────────
    End of year, June 30                                     $    250,329    $    207,427    $    207,427
                                                             ════════════    ════════════    ════════════




                                                  75
                                     City of Jacksonville, North Carolina                    Schedule 10
                                             Special Revenue Fund
                                          Highway Safety Grant Project
                                     Schedule of Revenues, Expenditures and
                                  Changes in Fund Balances - Budget and Actual
                           From Inception and for the Fiscal Year Ended June 30, 2000


                                                Project                        Actual
                                              Authorization    Prior Years   Current Year    Total to Date
                                              ────────────    ────────────   ────────────     ────────────
Revenues:
  Highway Safety grant                        $    118,550    $              $    24,688     $     24,688
  Investment earnings                                  440
                                              ────────────    ────────────   ────────────     ────────────
    Total revenues                                 118,990                         24,688           24,688
                                              ────────────    ────────────   ────────────     ────────────

Expenditures:
  Operating expenditures                                                           20,296           20,296
  Capital outlay                                                                   17,977           17,977
                                              ────────────    ────────────   ────────────     ────────────
    Total expenditures                             153,840                         38,273           38,273
                                              ────────────    ────────────   ────────────     ────────────

      Excess of revenues (under)
        expenditures                               (34,850)                       (13,585)         (13,585)
                                              ────────────    ────────────   ────────────     ────────────
Other financing sources:
  Operating transfers in--
    From General Fund                               34,850                         34,850           34,850
                                              ────────────    ────────────   ────────────     ────────────
    Total other financing sources                   34,850                         34,850           34,850
                                              ────────────    ────────────   ────────────     ────────────
Excess of revenues and other sources
  over expenditures and other uses            $          0    $          0         21,265    $     21,265
                                              ════════════    ════════════   ────────────    ════════════
Fund balances:
   Beginning of year, July 1
                                                                             ────────────
   End of year, June 30                                                      $     21,265
                                                                             ════════════




                                                   76
                                   City of Jacksonville, North Carolina                    Schedule 11
                                           Special Revenue Fund
                                     HUD Disaster Recovery Grant Project
                                    Schedule of Revenues, Expenditures and
                                 Changes in Fund Balances - Budget and Actual
                           From Inception and for the Fiscal Year Ended June 30, 2000


                                               Project                        Actual
                                             Authorization    Prior Years   Current Year   Total to Date
                                             ────────────    ────────────   ────────────    ────────────
Revenues:
  HUD disaster recovery grant               $    308,188     $      1,293   $      1,940    $      3,233
                                            ────────────     ────────────   ────────────    ────────────
    Total revenues                               308,188            1,293          1,940           3,233
                                            ────────────     ────────────   ────────────    ────────────

Expenditures:
  Administration                                                   1,293                           1,293
  Clearance                                                                        1,640           1,640
  Housing rehabilitation                                                             300             300
                                             ────────────    ────────────   ────────────    ────────────
    Total expenditures                            308,188           1,293          1,940           3,233
                                             ────────────    ────────────   ────────────    ────────────

Excess of revenues over
  (under)expenditures                        $          0    $          0   $          0   $          0
                                             ════════════    ════════════   ════════════   ════════════




                                                  77
                                    City of Jacksonville, North Carolina                     Schedule 12
                                            Special Revenue Fund
                                   Affordable Home Ownership Grant Project
                                     Schedule of Revenues, Expenditures and
                                  Changes in Fund Balances - Budget and Actual
                            From Inception and for the Fiscal Year Ended June 30, 2000


                                                Project                         Actual
                                              Authorization    Prior Years    Current Year   Total to Date
                                              ────────────    ────────────    ────────────    ────────────
Revenues:
 Home HM9901
  Interest earned on investments             $       3,100    $      1,331    $      1,525   $       2,856
  Program Income                                    15,698           8,000           9,648          17,648
  Home ownership assistance                        150,000          64,731          72,378         137,109
                                              ────────────    ────────────    ────────────    ────────────
    Total                                          168,798          74,062          83,551         157,613
                                              ────────────    ────────────    ────────────    ────────────
 Home HM0001
  Home ownership assistance                        150,000
                                              ────────────    ────────────    ────────────    ────────────
    Total                                          150,000
                                              ────────────    ────────────    ────────────    ────────────
Total revenues                                     318,798          74,062          83,551         157,613
                                              ────────────    ────────────    ────────────    ────────────

Expenditures:
 Home HM9901
  Administration                                                     8,277          13,257          21,534
  Home ownership assistance                                         91,465          66,036         157,501
                                              ────────────    ────────────    ────────────    ────────────
    Total                                          224,718          99,742          79,293         179,035
                                              ────────────    ────────────    ────────────    ────────────
 Home HM0001
  Administration
  Home ownership assistance
                                              ────────────    ────────────    ────────────    ────────────
    Total                                          150,000
                                              ────────────    ────────────    ────────────    ────────────
Total expenditures                                 374,718          99,742          79,293         179,035
                                              ────────────    ────────────    ────────────    ────────────

      Excess of revenues over
        (under) expenditures                       (55,920)        (25,680)          4,258         (21,422)
                                              ────────────    ────────────    ────────────    ────────────
Other financing sources:
  Operating transfers in--
    From General Fund                               37,500          37,500                          37,500
    From Home Program Grant                          7,052           7,051                           7,051
    From Home Buyer Assistance Grant                11,368          11,368                          11,368
                                              ────────────    ────────────    ────────────    ────────────
      Total other financing sources                 55,920          55,919                          55,919
                                              ────────────    ────────────    ────────────    ────────────
Excess of revenues and other sources
  over expenditures and other uses           $          0           30,239          4,258    $     34,497
                                             ════════════     ────────────                   ════════════

Fund balances:
   Beginning of year, July 1                                                        30,239
                                                              ────────────    ────────────
     End of year, June 30                                     $     30,239    $     34,497
                                                              ════════════    ════════════




                                                   78
                                    City of Jacksonville, North Carolina                      Schedule 13
                                            Special Revenue Fund
                                        Lead Base Paint Grant Project
                                     Schedule of Revenues, Expenditures and
                                  Changes in Fund Balances - Budget and Actual
                            From Inception and for the Fiscal Year Ended June 30, 2000


                                                Project                         Actual
                                              Authorization    Prior Years    Current Year    Total to Date
                                              ────────────    ────────────    ────────────     ────────────
Revenues:
 Lead base paint grant                       $     186,000    $               $    116,506    $     116,506
 Miscellaneous                                         390                             390              390
                                              ────────────    ────────────    ────────────     ────────────
    Total revenues                                 186,390                         116,896          116,896
                                              ────────────    ────────────    ────────────     ────────────

Expenditures:
  Lead base paint program                                            9,490        123,469           132,959
  Capital outlay                                                     2,537                            2,537
                                              ────────────    ────────────    ────────────     ────────────
    Total expenditures                             204,990          12,027         123,469          135,496
                                              ────────────    ────────────    ────────────     ────────────

      Excess of revenues (under)
        expenditures                               (18,600)        (12,027)         (6,573)         (18,600)
                                              ────────────    ────────────    ────────────     ────────────
Other financing sources:
  Operating transfers in--
    From Community Development Grant                18,600          12,027           6,573           18,600
                                              ────────────    ────────────    ────────────     ────────────
    Total other financing sources                   18,600          12,027           6,573           18,600
                                              ────────────    ────────────    ────────────     ────────────
Excess of revenues and other sources
  over expenditures and other uses           $          0     $          0    $          0    $          0
                                             ════════════     ════════════    ════════════    ════════════




                                                   79
                                    City of Jacksonville, North Carolina                     Schedule 14
                                             Special Revenue Fund
                                               Emergency Relief
                                    Schedule of Revenues, Expenditures and
                                 Changes in Fund Balances - Budget and Actual
                          From Inception and for the Fiscal Year Ended June 30, 2000


                                               Project                        Actual
                                             Authorization    Prior Years   Current Year     Total to Date
                                             ────────────    ────────────   ────────────      ────────────
Revenues:
 Emergency relief                            $     10,000    $              $      4,473     $      4,473
                                             ────────────    ────────────   ────────────     ────────────
    Total revenues                                 10,000                          4,473            4,473
                                             ────────────    ────────────   ────────────     ────────────

Expenditures:
  Salaries and employee benefits                                                   3,730             3,730
                                             ────────────    ────────────   ────────────      ────────────
    Total expenditures                             10,000                          3,730             3,730
                                             ────────────    ────────────   ────────────      ────────────

Excess of revenues over
  expenditures                               $          0    $          0              743   $        743
                                             ════════════    ════════════                    ════════════

Fund balances:
   Beginning of year, July 1
                                                                            ────────────
     End of year, June 30                                                   $        743
                                                                            ════════════




                                                  80
                    Capital Project Funds

 Capital Project Funds account for funds to be used for the acquisition or
  construction of major capital facilities.
Individual Fund Descriptions:
Northeast Creek Park Capital Project Fund - accounts for funds
 used in the construction of Northeast Creek Park.
Multi-Purpose Community Recreation Complex Capital Project Fund -
 accounts for funds used in the construction of the Community Center.
Street Improvements Capital Project Fund - accounts for funds used in the
 rehabilitation of streets primarily funded by Powell Bill revenues.
Fire Station #4 Capital Project Fund - accounts for funds used in the
 construction of Fire Station #4.
Trails and Greenways Capital Project Fund - accounts for funds used in the
 construction of trails throughout the City.
Demolition Capital Project Fund - accounts for funds dedicated for the
 demolition of unsuitable housing.
Country Club Park Capital Project Fund - accounts for funds used in
 the construction of the Country Club Park.
Richard Ray All America Park Capital Project Fund - accounts for funds
used in the construction of the Richard Ray All America Park.
Memorial Garden Capital Project Fund - accounts for funds used in the
construction of the Memorial Garden.
Downtown Trail Capital Project Fund - accounts for funds used in the
 construction of the Downtown Trail.
Chaney Creek Power Line Trail Capital Project Fund - accounts for
 funds used in the construction of the Chaney Creek Power Line Trail.



                                    81
                   Capital Project Funds
                                 (Continued)


Skateboard Park Capital Project Fund - accounts for funds used in
 the construction of the Skateboard Park.
Kerr Street Park Capital Project Fund - accounts for funds used in
 the construction of the Kerr Street Park.
Wilson Bay Park Phase I Capital Project Fund - accounts for funds
used in the construction of the Wilson Bay Park.
Northeast Creek Park Phase II Capital Project Fund - accounts for
 funds used in the construction of the Northeast Creek Park.
Woodlands Park Capital Project Fund - accounts for funds used in
the construction of the Woodlands Park.
Civic Facility Capital Project Fund - accounts for funds used in the
 construction of the Civic Facility.
Downtown Riverfront Development Capital Project Fund - accounts
 for funds used in the revitalization of the downtown area.
Sunset/Country Club Annexation Capital Project Fund - accounts for funds
 used in the annexation of Sunset Acres and Country Club Acres subdivisions.
Rails to Trails Capital Project Fund - accounts for funds used in the conversion
 of railroad tracks to recreation trails.
Northwoods Playground Capital Project Fund - accounts for funds used in the
 construction of the Northwoods Playground.
Local Government Complex Capital Project Fund - accounts for funds used in
 the design and construction of the joint City/County Local Government Complex.    ─


Sturgeon City Capital Project Fund - accounts for funds used in the construction
 of Sturgeon City.
City Compost Capital Project Fund - accounts for funds used in the construction
 of the City compost facility.


                                  82
                    Capital Project Funds
                                  (Continued)



Citywide Landscaping Capital Project Fund - accounts for funds used in
 Citywide landscaping projects.
Jacksonville Business Park Capital Project Fund - accounts for funds used in the
 development of the Jacksonville Business Park.
Capital Reserve Fund - accounts for funds to be used for future capital needs.




                                   83
                                   City of Jacksonville, North Carolina
                                           Capital Project Funds
                                          Combining Balance Sheet
                                               June 30, 2000
                                 With Comparative Totals for June 30, 1999



                                                 Multi-
                                                Purpose
                                               Recreation
                                     Northeast Community     Street             Fire       Trails and
                                    Creek Park  Complex   Improvements       Station #4    Greenways    Demolition
                                    ───────── ────────── ────────────        ───────────   ──────────   ──────────
Assets
Current Assets:
  Cash and investments              $    546    $   57,061   $       3,241   $    88,419   $   9,785    $   5,507
  Accounts receivable                                                              9,572                      492
  Due from other funds
                                    ─────────   ──────────   ────────────    ───────────   ──────────   ──────────
  Total Current Assets                    546       57,061          3,241         97,991        9,785        5,999
                                    ─────────   ──────────   ────────────    ───────────   ──────────   ──────────

Restricted Assets:
  Cash and investments                                          1,644,044        907,255
                                    ─────────   ──────────   ────────────    ───────────   ──────────   ──────────
  Total Restricted Assets                                       1,644,044        907,255
                                    ─────────   ──────────   ────────────    ───────────   ──────────   ──────────
    Total Assets                    $     546   $   57,061   $ 1,647,285     $ 1,005,246   $    9,785   $    5,999
                                    ═════════   ══════════   ════════════    ═══════════   ══════════   ══════════

Liabilities and Fund Balances
Current Liabilities:
  Accounts payable                  $           $            $               $    53,266   $            $
  Due to other funds
                                    ─────────   ──────────   ────────────    ───────────   ──────────   ──────────
  Total Current Liabilities                                                       53,266
                                    ─────────   ──────────   ────────────    ───────────   ──────────   ──────────

Current Liabilities to be paid
from restricted assets:
  Accounts payable                                                136,879
                                    ─────────   ──────────   ────────────    ───────────   ──────────   ──────────
  Total Restricted Liabilities                                    136,879
                                    ─────────   ──────────   ────────────    ───────────   ──────────   ──────────
    Total Liabilities                                             136,879         53,266
                                    ─────────   ──────────   ────────────    ───────────   ──────────   ──────────

Fund Balances:
  Reserved for encumbrances                          7,050                       738,627       7,956        4,000
  Reserved for Powell Bill                                       1,510,406
  Unreserved, designated for
   subsequent year's expenditures         546       50,011                       213,353       1,829        1,999
  Unreserved, undesignated
                                    ─────────   ──────────   ────────────    ───────────   ──────────   ──────────
        Total Fund Balances               546       57,061      1,510,406        951,980        9,785        5,999
                                    ─────────   ──────────   ────────────    ───────────   ──────────   ──────────
Total Liabilities and
  Fund Balances                     $     546   $   57,061   $ 1,647,285     $ 1,005,246   $    9,785   $    5,999
                                    ═════════   ══════════   ════════════    ═══════════   ══════════   ══════════




                                                    84
                                                                                              Statement 15




             Richard Ray                 Chaney Creek                                   Wilson         Northeast
  Country    All America     Downtown     Power Line     Skateboard    Kerr Street    Bay Park        Creek Park
 Club Park      Park          Trail         Trail           Park          Park         Phase I         Phase II
──────────   ──────────    ───────────   ───────────    ────────────   ───────────   ───────────      ───────────


$   75,000   $   319,359   $    17,993   $    17,908    $     5,656    $   12,972    $       24,409   $    23,313
                                              30,000

──────────   ──────────    ───────────   ───────────    ───────────    ──────────    ───────────      ───────────
    75,000      319,359         17,993        47,908          5,656        12,972         24,409           23,313
──────────   ──────────    ───────────   ───────────    ───────────    ──────────    ───────────      ───────────



──────────   ──────────    ───────────   ───────────    ───────────    ──────────    ───────────      ───────────

──────────   ──────────    ───────────   ───────────    ───────────    ──────────    ───────────      ───────────
$   75,000   $ 319,359     $    17,993   $    47,908    $     5,656    $   12,972    $    24,409      $    23,313
══════════   ══════════    ═══════════   ═══════════    ═══════════    ══════════    ═══════════      ═══════════



$            $     8,503   $    15,951   $    37,552    $              $             $                $

──────────   ──────────    ───────────   ───────────    ───────────    ──────────    ───────────      ───────────
                  8,503         15,951        37,552
──────────   ──────────    ───────────   ───────────    ───────────    ──────────    ───────────      ───────────




──────────   ──────────    ───────────   ───────────    ───────────    ──────────    ───────────      ───────────

──────────   ──────────    ───────────   ───────────    ───────────    ──────────    ───────────      ───────────
                  8,503         15,951        37,552
──────────   ──────────    ───────────   ───────────    ───────────    ──────────    ───────────      ───────────


                  79,946                       3,241                        6,689            12,664        21,184


    75,000       230,910         2,042         7,115          5,656         6,283            11,745         2,129

──────────   ──────────    ───────────   ───────────    ───────────    ──────────    ───────────      ───────────
    75,000      310,856          2,042        10,356          5,656        12,972         24,409           23,313
──────────   ──────────    ───────────   ───────────    ───────────    ──────────    ───────────      ───────────

$   75,000   $ 319,359     $    17,993   $    47,908    $     5,656    $   12,972    $    24,409      $    23,313
══════════   ══════════    ═══════════   ═══════════    ═══════════    ══════════    ═══════════      ═══════════


                                                                                         Continued on next page.




                                                   85
                                   City of Jacksonville, North Carolina
                                           Capital Project Funds
                                    Combining Balance Sheet (Continued)
                                               June 30, 2000
                                 With Comparative Totals for June 30, 1999




                                                                 Downtown
                                     Woodlands       Civic      Riverfront  Rails to       Northwoods   Local Govt
                                       Park        Facility     Development  Trails        Playground     Complex
                                    ───────────   ──────────    ────────── ──────────      ──────────   ──────────
Assets
Current Assets:
  Cash and investments              $   20,524    $       667   $    2,532   $   331,826   $   4,934    $       748
  Accounts receivable                                  14,271        8,368
  Due from other funds
                                    ───────────   ──────────    ──────────   ──────────    ──────────   ──────────
  Total Current Assets                   20,524       14,938        10,900      331,826         4,934          748
                                    ───────────   ──────────    ──────────   ──────────    ──────────   ──────────

Restricted Assets:
  Cash and investments
                                    ───────────   ──────────    ──────────   ──────────    ──────────   ──────────
  Total Restricted Assets
                                    ───────────   ──────────    ──────────   ──────────    ──────────   ──────────
    Total Assets                    $    20,524   $   14,938    $   10,900   $ 331,826     $    4,934   $      748
                                    ═══════════   ══════════    ══════════   ══════════    ══════════   ══════════

Liabilities and Fund Balances
Current Liabilities:
  Accounts payable                  $             $             $            $             $            $    3,976
  Due to other funds                                  20,000                                                54,469
                                    ───────────   ──────────    ──────────   ──────────    ──────────   ──────────
  Total Current Liabilities                           20,000                                                58,445
                                    ───────────   ──────────    ──────────   ──────────    ──────────   ──────────

Current Liabilities to be paid
from restricted assets:
  Accounts payable
                                    ───────────   ──────────    ──────────   ──────────    ──────────   ──────────
  Total Restricted Liabilities
                                    ───────────   ──────────    ──────────   ──────────    ──────────   ──────────
    Total Liabilities                                 20,000                                                58,445
                                    ───────────   ──────────    ──────────   ──────────    ──────────   ──────────

Fund Balances:
  Reserved for encumbrances              1,271         35,667       34,435                                  387,544
  Reserved for Powell Bill
  Unreserved, designated for
   subsequent year’s expenditures        19,253                            331,826              4,934
  Unreserved, undesignated                           (40,729)   (23,535)                                  (445,241)
                                    ───────────   ────────── ────────── ──────────         ──────────   ──────────
Total Fund Balances                      20,524       (5,062)    10,900    331,826              4,934      (57,697)
                                    ───────────   ────────── ────────── ──────────         ──────────   ──────────
Total Liabilities and
  Fund Balances                     $    20,524   $   14,938    $   10,900   $ 331,826     $    4,934   $      748
                                    ═══════════   ══════════    ══════════   ══════════    ══════════   ══════════




                                                      86
                                                                                               Statement 15,
                                                                                               continued.




                                                                                  Totals
 Sturgeon                                Jacksonville                   ────────────────────────
   City         City        Citywide       Business       Capital        June 30,      June 30,
 Project       Compost     Landscaping       Park       Reserve Fund       2000          1999
──────────   ──────────    ───────────   ────────────   ────────────    ─────────── ───────────


$            $   140,000   $    34,500   $    25,000    $   7,721,221   $ 8,943,121     $ 4,722,690
                                                                             62,703             817
                                                              98,919         98,919
──────────   ──────────    ───────────   ────────────   ────────────    ───────────     ───────────
                140,000         34,500         25,000      7,820,140      9,104,743       4,723,507
──────────   ──────────    ───────────   ────────────   ────────────    ───────────     ───────────


                                              200,000                     2,751,299       1,813,833
──────────   ──────────    ───────────   ────────────   ────────────    ───────────     ───────────
                                              200,000                     2,751,299       1,813,833
──────────   ──────────    ───────────   ────────────   ────────────    ───────────     ───────────
$        0   $ 140,000     $    34,500   $    225,000   $ 7,820,140     $11,856,042     $ 6,537,340
══════════   ══════════    ═══════════   ════════════   ════════════    ═══════════     ═══════════



$       93   $             $             $              $               $   119,341     $     125,569
    24,450                                                                   98,919
──────────   ──────────    ───────────   ────────────   ────────────    ───────────     ───────────
    24,543                                                                  218,260         125,569
──────────   ──────────    ───────────   ────────────   ────────────    ───────────     ───────────



                                                                            136,879         112,363
──────────   ──────────    ───────────   ────────────   ────────────    ───────────     ───────────
                                                                            136,879         112,363
──────────   ──────────    ───────────   ────────────   ────────────    ───────────     ───────────
    24,543                                                                  355,139         237,932
──────────   ──────────    ───────────   ────────────   ────────────    ───────────     ───────────


    97,000                      34,500                                      1,471,774         646,967
                                              225,000                       1,735,406       1,521,542

              140,000                                       7,820,140     8,924,771   4,237,454
  (121,543)                                                                (631,048)   (106,555)
────────── ──────────      ───────────   ────────────   ────────────    ─────────── ───────────
   (24,543)   140,000           34,500        225,000      7,820,140     11,500,903   6,299,408
────────── ──────────      ───────────   ────────────   ────────────    ─────────── ───────────

$        0   $ 140,000     $    34,500   $    225,000   $ 7,820,140     $11,856,042     $ 6,537,340
══════════   ══════════    ═══════════   ════════════   ════════════    ═══════════     ═══════════




                                                   87
                                   City of Jacksonville, North Carolina
                                          Capital Projects Funds
                            Combining Statement of Revenues, Expenditures and
                                         Changes in Fund Balances
                                 For the Fiscal Year Ended June 30, 2000
                     With Comparative Totals for the Fiscal Year Ended June 30, 1999




                                             Multi-Purpose
                                              Community                   Fire
                                  Northeast   Recreation     Street     Station                    Trails and
                                 Creek Park    Complex     Improvements    #4                       Greenways     Demolition
                                 ─────────── ────────── ─────────── ────────────                   ──────────     ─────────
Revenues:
  Investment earnings            $              $               $     111,688    $       21,160    $             $
  Water access grant
  Historic Waterfront grant
  DEHNR National Trail grant
  Recreation Part F grant
  Contribution
  Miscellaneous revenues                                                                6,244           5,830
                                 ───────────      ──────────    ───────────      ────────────      ──────────     ─────────
    Total revenues                                                  111,688            27,404           5,830
                                 ───────────      ──────────    ───────────      ────────────      ──────────     ─────────

Expenditures:
  Capital outlay:
    Other improvements                 8,334         114,247        664,001              704,168        5,876       176,737
                                 ───────────      ──────────    ───────────          ───────────   ──────────     ─────────
    Total expenditures                 8,334         114,247        664,001              704,168        5,876       176,737
                                 ───────────      ──────────    ───────────          ───────────   ──────────     ─────────

  Revenues over (under)
    expenditures                      (8,334)  (114,247)   (552,313)                    (676,764)       (46) (176,737)
                                 ─────────── ────────── ───────────                  ─────────── ────────── ─────────

 Other financing sources:
   Proceeds from borrowing                                                             1,331,866
   Operating transfers in                            115,000     766,177                                        120,000
   Operating transfers (out)                         (25,000)   (225,000)                              (8,000)
                                 ───────────      ────────── ───────────             ───────────   ────────── ─────────
    Total other financing
      sources (uses)                                  90,000        541,177            1,331,866       (8,000)  120,000
                                 ───────────      ──────────    ───────────          ───────────   ────────── ─────────

Excess of revenues and other
  sources over (under)
  expenditures and other uses         (8,334)        (24,247)         (11,136)           655,102       (8,046)       (56,737)
Fund balances:
  Beginning of year, July 1            8,880         81,308         1,521,542           296,878        17,831         62,736
  Residual equity transfers in
                                 ───────────    ──────────      ───────────          ───────────   ──────────    ─────────
  End of year, June 30           $       546    $   57,061      $ 1,510,406          $   951,980   $    9,785    $   5,999
                                 ═══════════    ══════════      ═══════════          ═══════════   ══════════    ═════════




Note: Reconciliation of Operating Transfers in (out) to Exhibit B.

      Operating Transfers in --      $3,027,574                     Operating Transfers (out) --          $     785,544
       Less Transfers within                                         Less Transfers within
        the Capital Project Funds      (387,544)                      the Capital Project Funds             (387,544)
                                     ──────────                                                           ──────────
      Operating Transfers in                                        Operating Transfers (out)
        Exhibit B                    $2,640,030                       Exhibit B                          $ 398,000
                                     ══════════                                                          ══════════




                                                      88
                                                                                                          Statement 16




             Richard Ray                              Chaney Creek                                 Wilson           Northeast
Country Club All America Memorial         Downtown     Power Line Skateboard           Kerr Street Bay Park         Creek Park
   Park         Park      Garden           Trail          Trail      Park                  Park    Phase I          Phase II
─────────── ─────────── ─────────        ──────────    ────────── ──────────           ────────── ─────────         ─────────

$             $               $          $            $                 $              $              $             $
                                                                                                           52,500

                                                               30,000

                       205                                                                                                  950

───────────   ─────────── ─────────      ──────────   ──────────        ──────────     ──────────     ─────────     ─────────
                      205                                 30,000                                         52,500           950
───────────   ─────────── ─────────      ──────────   ──────────        ──────────     ──────────     ─────────     ─────────



                  201,265                    15,958       39,644           109,212         25,961        75,491        37,637
───────────   ─────────── ─────────      ──────────   ──────────        ──────────     ──────────     ─────────     ─────────
                  201,265                    15,958       39,644           109,212         25,961        75,491        37,637
───────────   ─────────── ─────────      ──────────   ──────────        ──────────     ──────────     ─────────     ─────────


                 (201,060)                  (15,958)    (9,644)  (109,212)                (25,961)  (22,991)  (36,687)
───────────   ─────────── ─────────      ────────── ────────── ──────────              ────────── ───────── ─────────



                                        18,000                 12,500        25,000                        30,000
                                (44)
───────────   ─────────── ───────── ──────────        ──────────        ──────────     ──────────     ─────────     ─────────

                                (44)    18,000            12,500            25,000                       30,000
───────────   ─────────── ───────── ──────────        ──────────        ──────────     ──────────     ─────────     ─────────



                  (201,060)       (44)        2,042            2,856        (84,212)       (25,961)         7,009       (36,687)

     75,000        511,916         44                          7,500         89,868         38,933         17,400        60,000

───────────   ─────────── ─────────      ──────────   ──────────        ──────────     ──────────     ─────────     ─────────
$    75,000   $   310,856 $       0      $    2,042   $   10,356        $    5,656     $   12,972     $ 24,409      $ 23,313
═══════════   ═══════════ ═════════      ══════════   ══════════        ══════════     ══════════     ═════════     ═════════




                                                                                           Continued on next page.




                                                          89
                                   City of Jacksonville, North Carolina
                                          Capital Projects Funds
                            Combining Statement of Revenues, Expenditures and
                                   Changes in Fund Balances (Continued)
                                 For the Fiscal Year Ended June 30, 2000
                     With Comparative Totals for the Fiscal Year Ended June 30, 1999




                                                                  Downtown    Sunset/
                                   Woodlands       Civic         Riverfront   Country      Rails to      Northwoods
                                     Park         Facility       Development Club Annex     Trails       Playground
                                  ──────────     ──────────      ────────── ──────────     ─────────     ──────────
Revenues:
  Investment earnings             $              $               $            $            $    15,826   $
  Water Access grant
  Historic Waterfront grant                                          25,465
  DEHNR National Trail grant
  Recreation grant
  Contribution                                                                                                4,000
  Miscellaneous revenues
                                  ──────────     ──────────      ──────────   ──────────   ─────────     ──────────
    Total revenues                                                   25,465                   15,826          4,000
                                  ──────────     ──────────      ──────────   ──────────   ─────────     ──────────

Expenditures:
  Capital outlay:
    Other improvements               111,018          5,062          45,465       23,040                     24,066
                                  ──────────     ──────────      ──────────   ──────────   ─────────     ──────────
    Total expenditures               111,018          5,062          45,465       23,040                     24,066
                                  ──────────     ──────────      ──────────   ──────────   ─────────     ──────────

  Revenues over (under)
    expenditures                    (111,018)    (5,062)            (20,000)   (23,040)   15,826            (20,066)
                                  ────────── ──────────          ────────── ────────── ─────────         ──────────

Other financing sources (uses):
  Proceeds from borrowing
  Operating transfers in               75,000                        30,900       23,040       316,000       25,000
  Operating transfers (out)                        (140,000)
                                  ──────────     ──────────      ──────────   ──────────   ─────────     ──────────
    Total other financing
      sources (uses)                  75,000       (140,000)         30,900       23,040     316,000         25,000
                                  ──────────     ──────────      ──────────   ──────────   ─────────     ─────────

Excess of revenues and other
  sources over (under)
  expenditures and other uses         (36,018)       (145,062)       10,900                    331,826        4,934
Fund balances:
  Beginning of year, July 1            56,542         140,000
  Residual equity transfers in
                                  ──────────     ──────────      ──────────   ──────────   ─────────     ──────────
    End of year, June 30          $   20,524     $   (5,062)     $   10,900   $        0   $ 331,826     $    4,934
                                  ══════════     ══════════      ══════════   ══════════   ═════════     ══════════




                                                         90
                                                                                                      Statement 16,
                                                                                                      continued.




                                                                                                     Totals
                                                           Jacksonville                   ─────────────────────────
Local Govt      Sturgeon         City         Citywide       Business       Capital         June 30,       June 30,
 Complex          City          Compost     Landscaping        Park       Reserve Fund        2000           1999
──────────     ──────────     ──────────    ────────────   ────────────   ────────────    ──────────── ───────────

$              $              $             $              $              $    395,455    $    544,129    $    231,263
                                                                                                52,500          52,456
                                                                                                25,465
                                                                                                30,000         17,500
                                                                                                              250,000
                                                                                    352          5,507          4,140
                                                                                                12,074         17,736
──────────     ──────────     ──────────    ────────────   ────────────   ────────────    ────────────    ───────────
                                                                               395,807         669,675        573,095
──────────     ──────────     ──────────    ────────────   ────────────   ────────────    ────────────    ───────────



    57,697         24,543                          8,000                                     2,477,422      2,264,749
──────────     ──────────     ──────────    ────────────   ────────────   ────────────    ────────────    ───────────
    57,697         24,543                          8,000                                     2,477,422      2,264,749
──────────     ──────────     ──────────    ────────────   ────────────   ────────────    ────────────    ───────────


   (57,697)   (24,543)                            (8,000)                      395,807      (1,807,747) (1,691,654)
────────── ────────── ──────────            ──────────── ────────────     ────────────    ──────────── ───────────


                                                                                             1,331,866     440,802
                                  140,000         42,500        225,000      1,063,457       3,027,574   2,899,369
                                                                              (387,500)       (785,544)   (390,572)
──────────     ──────────     ──────────    ────────────   ────────────   ────────────    ──────────── ───────────

                                 140,000          42,500        225,000        675,957       3,573,896      2,949,599
──────────     ──────────     ──────────    ────────────   ────────────   ────────────    ────────────    ───────────



    (57,697)       (24,543)       140,000         34,500        225,000       1,071,764       1,766,149       1,257,945

                                                                             3,313,030       6,299,408      2,341,463
                                                                             3,435,346       3,435,346      2,700,000
────────── ────────── ──────────            ────────────   ────────────   ────────────    ────────────    ───────────
$ (57,697) $ (24,543) $ 140,000             $     34,500   $    225,000   $ 7,820,140     $ 11,500,903    $ 6,299,408
══════════ ══════════ ══════════            ════════════   ════════════   ════════════    ════════════    ═══════════




                                                           91
                                   City of Jacksonville, North Carolina                          Schedule 17
                                Northeast Creek Park Capital Project Fund
                                  Schedule of Revenues, Expenditures and
                               Changes in Fund Balances - Budget and Actual
                         From Inception and for the Fiscal Year Ended June 30, 2000



                                                                                    Actual
                                                                   ────────────────────────────────────────
                                                  Project
                                               Authorization    Prior Years     Current Year     Total to Date
                                               ────────────    ────────────     ────────────     ────────────
Revenues:
  Public Access grant                         $      29,629    $     29,629     $                $     29,629
  Water Access grant                                 52,500          52,456                            52,456
  Contribution - Jaycees                             17,922          17,923                            17,923
                                               ────────────    ────────────      ────────────    ────────────
    Total revenues                                  100,051         100,008                           100,008
                                               ────────────    ────────────      ────────────    ────────────

Expenditures:
  Capital outlay:
    Other improvements                                              173,818             8,334         182,152
                                               ────────────    ────────────      ────────────    ────────────
    Total expenditures                              182,741         173,818             8,334         182,152
                                               ────────────    ────────────      ────────────    ────────────

    Revenues (under) expenditures                   (82,690)        (73,810)           (8,334)        (82,144)
                                               ────────────    ────────────      ────────────    ────────────

Other financing sources (uses):
  Operating transfers in--
    From General Fund                               105,190           105,190                         105,190
    From Capital Reserve Fund                        17,500            17,500                          17,500
  Operating transfers (out)--
    To Capital Reserve Fund                         (40,000)        (40,000)                          (40,000)
                                               ────────────    ────────────      ────────────    ────────────
    Total other financing sources                    82,690          82,690                            82,690
                                               ────────────    ────────────      ────────────    ────────────

  Increase (decrease) in fund balance          $          0    $      8,880           (8,334)    $        546
                                               ════════════    ────────────                      ════════════
Fund Balance:
   Beginning of year, July 1                                                           8,880
                                                               ────────────     ────────────
   End of year, June 30                                        $      8,880     $        546
                                                               ════════════     ════════════




                                                    92
                                   City of Jacksonville, North Carolina                          Schedule 18
                        Multi-Purpose Community Recreation Complex Capital Project Fund
                                  Schedule of Revenues, Expenditures and
                               Changes in Fund Balances - Budget and Actual
                         From Inception and for the Fiscal Year Ended June 30, 2000



                                                                                    Actual
                                                                   ────────────────────────────────────────
                                                  Project
                                               Authorization    Prior Years     Current Year     Total to Date
                                               ────────────    ────────────     ────────────     ────────────
Revenues:
  Investment earnings                         $     271,786    $    271,786     $                $    271,786
  Contributions                                      25,220          25,220                            25,220
  Miscellaneous                                       1,995           1,995                             1,995
                                               ────────────    ────────────      ────────────    ────────────
    Total revenues                                  299,001         299,001                           299,001
                                               ────────────    ────────────      ────────────    ────────────
Expenditures:
  Capital outlay:
    Other improvements                                            3,944,175           114,247       4,058,422
                                               ────────────    ────────────      ────────────    ────────────
    Total expenditures                            4,115,483       3,944,175           114,247       4,058,422
                                               ────────────    ────────────      ────────────    ────────────

    Revenues (under) expenditures                (3,816,482)     (3,645,174)         (114,247)     (3,759,421)
                                               ────────────    ────────────      ────────────    ────────────

Other financing sources (uses):
  Proceeds from borrowing                         1,400,000         1,400,000                        1,400,000
  Operating transfers in--
    From General Fund                             1,470,000         1,470,000                        1,470,000
    From Capital Reserve Fund                       994,102           879,102        115,000           994,102
  Operating transfers (out)--
    To General Fund                                 (47,620)        (22,620)          (25,000)        (47,620)
                                               ────────────    ────────────      ────────────    ────────────
    Total other financing sources                 3,816,482       3,726,482            90,000       3,816,482
                                               ────────────    ────────────      ────────────    ────────────

  Increase (decrease) in fund balance         $          0     $     81,308          (24,247)    $     57,061
                                              ════════════     ────────────                      ════════════
Fund Balance:
   Beginning of year, July 1                                                          81,308
                                                               ────────────     ────────────
   End of year, June 30                                        $     81,308     $     57,061
                                                               ════════════     ════════════




                                                    93
                                    City of Jacksonville, North Carolina                      Schedule 19
                                  Street Improvements Capital Project Fund
                                   Schedule of Revenues, Expenditures and
                                Changes in Fund Balances - Budget and Actual
                          From Inception and for the Fiscal Year Ended June 30, 2000



                                                                                 Actual
                                                                ────────────────────────────────────────
                                               Project
                                            Authorization    Prior Years     Current Year     Total to Date
                                            ────────────    ────────────     ────────────     ────────────
Revenues:
  Investment earnings                      $     636,983    $    552,447     $    111,688     $    664,135
  Contribution                                   321,000         321,000                           321,000
  Miscellaneous                                    8,741           8,741                             8,741
                                            ────────────    ────────────      ────────────    ────────────
    Total revenues                               966,724         882,188           111,688         993,876
                                            ────────────    ────────────      ────────────    ────────────

Expenditures:
  Capital outlay:
    Other improvements                                         8,610,657           664,001       9,274,658
                                            ────────────    ────────────      ────────────    ────────────
    Total expenditures                        10,757,912       8,610,657           664,001       9,274,658
                                            ────────────    ────────────      ────────────    ────────────

    Revenues (under) expenditures             (9,791,188)     (7,728,469)         (552,313)     (8,280,782)
                                            ────────────    ────────────      ────────────    ────────────

Other financing sources:
  Operating transfers in--
    From General Fund                          9,661,484         8,897,803        763,681         9,661,484
    From Capital Reserve Fund                    352,208           352,208                          352,208
    From Special Revenue Fund                      2,496                             2,496            2,496
  Operating transfers (out)--
    To General Fund                             (225,000)                         (225,000)       (225,000)
                                            ────────────    ────────────      ────────────    ────────────
    Total other financing sources              9,791,188       9,250,011           541,177       9,791,188
                                            ────────────    ────────────      ────────────    ────────────

  Increase (decrease) in fund balance      $          0     $ 1,521,542           (11,136)    $ 1,510,406
                                           ════════════     ────────────                      ════════════
Fund Balance:
   Beginning of year, July 1                                                    1,521,542
                                                            ────────────     ────────────
   End of year, June 30                                     $ 1,521,542      $ 1,510,406
                                                            ════════════     ════════════




                                                 94
                                       City of Jacksonville, North Carolina                    Schedule 20
                                       Fire Station #4 Capital Project Fund
                                      Schedule of Revenues, Expenditures and
                                   Changes in Fund Balances - Budget and Actual
                             From Inception and for the Fiscal Year Ended June 30, 2000



                                                                                 Actual
                                                               ──────────────────────────────────────────
                                                  Project
                                               Authorization    Prior Years    Current Year    Total to Date
                                               ────────────    ────────────    ────────────     ────────────
Revenues:
  Investment earnings                         $      33,657    $    22,664     $     21,160    $      43,824
  Miscellaneous                                       6,244                           6,244            6,244
                                               ────────────    ────────────    ────────────     ────────────
    Total revenues                                   39,901          22,664          27,404           50,068
                                               ────────────    ────────────    ────────────     ────────────

Expenditures:
  Capital outlay:
    Other improvements                                              374,588         704,168        1,078,756
                                               ────────────    ────────────    ────────────     ────────────
    Total expenditures                            2,020,569         374,588         704,168        1,078,756
                                               ────────────    ────────────    ────────────     ────────────

    Revenues (under) expenditures                (1,980,668)       (351,924)       (676,764)      (1,028,688)
                                               ────────────    ────────────    ────────────     ────────────

Other financing sources:
  Installment purchase proceeds                   1,772,668         440,802        1,331,866       1,772,668
  Operating transfers in--
    From Capital Reserve Fund                       208,000         208,000                          208,000
                                               ────────────    ────────────    ────────────     ────────────
    Total other financing sources                 1,980,668         648,802       1,331,866        1,980,668
                                               ────────────    ────────────    ────────────     ────────────

  Increase in fund balance                    $          0     $    296,878         655,102    $    951,980
                                              ════════════     ────────────                    ════════════

Fund Balance:
   Beginning of year, July 1                                                        296,878
                                                               ────────────    ────────────
   End of year, June 30                                        $    296,878    $    951,980
                                                               ════════════    ════════════




                                                    95
                                    City of Jacksonville, North Carolina                    Schedule 21
                                  Trails and Greenways Capital Project Fund
                                   Schedule of Revenues, Expenditures and
                                Changes in Fund Balances - Budget and Actual
                          From Inception and for the Fiscal Year Ended June 30, 2000



                                                                              Actual
                                                            ──────────────────────────────────────────
                                               Project
                                            Authorization    Prior Years    Current Year    Total to Date
                                            ────────────    ────────────    ────────────     ────────────
Revenues:
  Adopt a Trail grant                      $       2,750    $      2,750    $               $       2,750
  DEHNR National Trail grant                      14,831          14,831                           14,831
  Contribution                                     2,700           2,700                            2,700
  Miscellaneous                                   13,727           7,700           5,830           13,530
                                            ────────────    ────────────    ────────────     ────────────
    Total revenues                                34,008          27,981           5,830           33,811
                                            ────────────    ────────────    ────────────     ────────────

Expenditures:
  Capital outlay:
    Other improvements                                            60,150           5,876           66,026
                                            ────────────    ────────────    ────────────     ────────────
    Total expenditures                            76,008          60,150           5,876           66,026
                                            ────────────    ────────────    ────────────     ────────────

    Revenues (under) expenditures                (42,000)        (32,169)            (46)         (32,215)
                                            ────────────    ────────────    ────────────     ────────────

Other financing sources (uses):
  Operating transfers in--
    From General Fund                             24,000          24,000                          24,000
    From Western Blvd. Capital Project            26,000          26,000                          26,000
  Operating transfers (out)--
    To General Fund                               (8,000)                         (8,000)          (8,000)
                                            ────────────    ────────────    ────────────     ────────────
    Total other financing sources (uses)          42,000          50,000          (8,000)          42,000
                                            ────────────    ────────────    ────────────     ────────────

  Increase (decrease) in fund balance      $          0     $     17,831         (8,046)    $      9,785
                                           ════════════     ────────────                    ════════════
Fund Balance:
   Beginning of year, July 1                                                      17,831
                                                            ────────────    ────────────
   End of year, June 30                                     $     17,831    $      9,785
                                                            ════════════    ════════════




                                                 96
                                       City of Jacksonville, North Carolina                    Schedule 22
                                         Demolition Capital Project Fund
                                      Schedule of Revenues, Expenditures and
                                   Changes in Fund Balances - Budget and Actual
                             From Inception and for the Fiscal Year Ended June 30, 2000



                                                                                 Actual
                                                               ──────────────────────────────────────────
                                                  Project
                                               Authorization    Prior Years    Current Year    Total to Date
                                               ────────────    ────────────    ────────────     ────────────
Revenues:
  Miscellaneous                               $      2,420     $      2,420    $               $      2,420
                                              ────────────     ────────────    ────────────    ────────────
    Total revenues                                   2,420            2,420                           2,420
                                              ────────────     ────────────    ────────────    ────────────

Expenditures:
  Capital outlay:
    Other improvements                                               72,684         176,737          249,421
                                               ────────────    ────────────    ────────────     ────────────
    Total expenditures                              255,420          72,684         176,737          249,421
                                               ────────────    ────────────    ────────────     ────────────

    Revenues (under) expenditures                  (253,000)        (70,264)       (176,737)        (247,001)
                                               ────────────    ────────────    ────────────     ────────────

Other financing sources:
  Operating transfers in--
    From General Fund                               133,000         133,000                          133,000
    From Capital Reserve                            120,000                         120,000          120,000
                                               ────────────    ────────────    ────────────     ────────────
    Total other financing sources                   253,000         133,000         120,000          253,000
                                               ────────────    ────────────    ────────────     ────────────

  Increase (decrease) in fund balance         $          0     $     62,736         (56,737)   $      5,999
                                              ════════════     ────────────                    ════════════
Fund Balance:
   Beginning of year, July 1                                                         62,736
                                                               ────────────    ────────────
   End of year, June 30                                        $     62,736    $      5,999
                                                               ════════════    ════════════




                                                    97
                                       City of Jacksonville, North Carolina                  Schedule 23
                                             Country Club Park Fund
                                      Schedule of Revenues, Expenditures and
                                   Changes in Fund Balances - Budget and Actual
                             From Inception and for the Fiscal Year Ended June 30, 2000



                                                                                 Actual
                                                               ──────────────────────────────────────────
                                                  Project
                                               Authorization    Prior Years   Current Year   Total to Date
                                               ────────────    ────────────   ────────────    ────────────
Revenues:

    Total revenues                             $          0    $          0   $          0   $          0
                                               ────────────    ────────────   ────────────   ────────────

Expenditures:
  Capital outlay:
    Other improvements
                                               ────────────    ────────────   ────────────    ────────────
    Total expenditures                               75,000
                                               ────────────    ────────────   ────────────    ────────────

    Revenues (under) expenditures                   (75,000)
                                               ────────────    ────────────   ────────────    ────────────

Other financing sources:
  Operating transfers in--
    From Capital Reserve Fund                        75,000          75,000                         75,000
                                               ────────────    ────────────   ────────────    ────────────
    Total other financing sources                    75,000          75,000                         75,000
                                               ────────────    ────────────   ────────────    ────────────

  Increase in fund balance                    $          0     $     75,000                  $     75,000
                                              ════════════     ────────────                  ════════════

Fund Balance:
   Beginning of year, July 1                                                        75,000
                                                               ────────────   ────────────
   End of year, June 30                                        $     75,000   $     75,000
                                                               ════════════   ════════════




                                                    98
                                       City of Jacksonville, North Carolina                   Schedule 24
                                Richard Ray All America Park Capital Project Fund
                                      Schedule of Revenues, Expenditures and
                                   Changes in Fund Balances - Budget and Actual
                             From Inception and for the Fiscal Year Ended June 30, 2000



                                                                                 Actual
                                                               ──────────────────────────────────────────
                                                  Project
                                               Authorization    Prior Years   Current Year    Total to Date
                                               ────────────    ────────────   ────────────     ────────────
Revenues:
  Recreation grant                            $     250,000    $    250,000   $               $     250,000
  Contribution                                       50,000          49,380           205            49,585
  Miscellaneous revenue                              14,369          14,368                          14,368
                                               ────────────    ────────────   ────────────     ────────────
    Total revenues                                  314,369         313,748            205          313,953
                                               ────────────    ────────────   ────────────     ────────────


Expenditures:
  Capital outlay:
    Other improvements                                               51,832        201,265          253,097
                                               ────────────    ────────────   ────────────     ────────────
    Total expenditures                              564,369          51,832        201,265          253,097
                                               ────────────    ────────────   ────────────     ────────────

    Revenues over (under) expenditures             (250,000)        261,916       (201,060)          60,856
                                               ────────────    ────────────   ────────────     ────────────

Other financing sources:
  Operating transfers in--
    From General Fund                               250,000         250,000                         250,000
                                               ────────────    ────────────   ────────────     ────────────
    Total other financing sources                   250,000         250,000                         250,000
                                               ────────────    ────────────   ────────────     ────────────

  Increase (decrease) in fund balance         $          0          511,916       (201,060)    $    310,856
                                              ════════════     ────────────                    ════════════
Fund Balance:
   Beginning of year, July 1                                                       511,916
                                                               ────────────   ────────────
   End of year, June 30                                        $    511,916   $    310,856
                                                               ════════════   ════════════




                                                    99
                                    City of Jacksonville, North Carolina                    Schedule 25
                                    Memorial Garden Capital Project Fund
                                   Schedule of Revenues, Expenditures and
                                Changes in Fund Balances - Budget and Actual
                          From Inception and for the Fiscal Year Ended June 30, 2000



                                                                              Actual
                                                            ──────────────────────────────────────────
                                               Project
                                            Authorization    Prior Years    Current Year    Total to Date
                                            ────────────    ────────────    ────────────     ────────────
Revenues:

    Total revenues                          $          0    $          0    $          0    $          0
                                            ────────────    ────────────    ────────────    ────────────

Expenditures:
  Capital outlay:
    Other improvements                                            21,156                           21,156
                                            ────────────    ────────────    ────────────     ────────────
    Total expenditures                            21,157          21,156                           21,156
                                            ────────────    ────────────    ────────────     ────────────

    Revenues (under) expenditures                (21,157)        (21,156)                         (21,156)
                                            ────────────    ────────────    ────────────     ────────────

Other financing sources (uses):
  Operating transfers in--
    From General Fund                             21,200          21,200                          21,200
  Operating transfers (out)--
    To Capital Reserve                               (43)                            (44)             (44)
                                            ────────────    ────────────    ────────────     ────────────
    Total other financing sources (uses)          21,157          21,200             (44)          21,156
                                            ────────────    ────────────    ────────────     ────────────

  Increase (decrease) in fund balance      $          0               44            (44)    $          0
                                           ════════════     ────────────                    ════════════
Fund Balance:
   Beginning of year, July 1                                                          44
                                                            ────────────    ────────────
   End of year, June 30                                     $         44    $          0
                                                            ════════════    ════════════




                                                100
                                       City of Jacksonville, North Carolina                    Schedule 26
                                        Downtown Trail Capital Project Fund
                                      Schedule of Revenues, Expenditures and
                                   Changes in Fund Balances - Budget and Actual
                             From Inception and for the Fiscal Year Ended June 30, 2000



                                                                                 Actual
                                                               ──────────────────────────────────────────
                                                  Project
                                               Authorization    Prior Years    Current Year    Total to Date
                                               ────────────    ────────────    ────────────     ────────────
Revenues:
  DEHNR National Trail grant                  $     17,500     $     17,500    $               $     17,500
                                              ────────────     ────────────    ────────────    ────────────
    Total revenues                                  17,500           17,500                          17,500
                                              ────────────     ────────────    ────────────    ────────────

Expenditures:
  Capital outlay:
    Other improvements                                               35,000          15,958           50,958
                                               ────────────    ────────────    ────────────     ────────────
    Total expenditures                               53,000          35,000          15,958           50,958
                                               ────────────    ────────────    ────────────     ────────────

    Revenues (under) expenditures                   (35,500)        (17,500)        (15,958)         (33,458)
                                               ────────────    ────────────    ────────────     ────────────

Other financing sources:
  Operating transfers in--
    From General Fund                                25,500          17,500           8,000           25,500
    From Capital Reserve                             10,000                          10,000           10,000
                                               ────────────    ────────────    ────────────     ────────────
    Total other financing sources                    35,500          17,500          18,000           35,500
                                               ────────────    ────────────    ────────────     ────────────

  Increase in fund balance                    $          0     $          0          2,042     $      2,042
                                              ════════════     ════════════                    ════════════
Fund Balance:
   Beginning of year, July 1
                                                                               ────────────
   End of year, June 30                                                        $      2,042
                                                                               ════════════




                                                   101
                                       City of Jacksonville, North Carolina                   Schedule 27
                                Chaney Creek Power Line Trail Capital Project Fund
                                      Schedule of Revenues, Expenditures and
                                   Changes in Fund Balances - Budget and Actual
                             From Inception and for the Fiscal Year Ended June 30, 2000



                                                                                 Actual
                                                               ──────────────────────────────────────────
                                                  Project
                                               Authorization    Prior Years   Current Year    Total to Date
                                               ────────────    ────────────   ────────────     ────────────
Revenues:
  DEHNR National trail grant                  $     30,000     $              $     30,000    $     30,000
                                              ────────────     ────────────   ────────────    ────────────
    Total revenues                                  30,000                          30,000          30,000
                                              ────────────     ────────────   ────────────    ────────────

Expenditures:
  Capital outlay:
    Other improvements                                                              39,644           39,644
                                               ────────────    ────────────   ────────────     ────────────
    Total expenditures                               50,000                         39,644           39,644
                                               ────────────    ────────────   ────────────     ────────────

    Revenues (under) expenditures                   (20,000)                        (9,644)          (9,644)
                                               ────────────    ────────────   ────────────     ────────────

Other financing sources:
  Operating transfers in--
    From General Fund                                 7,500           7,500                           7,500
    From Capital Reserve                             12,500                         12,500           12,500
                                               ────────────    ────────────   ────────────     ────────────
    Total other financing sources                    20,000           7,500         12,500           20,000
                                               ────────────    ────────────   ────────────     ────────────

  Increase in fund balance                    $          0            7,500         2,856     $     10,356
                                              ════════════     ────────────                   ════════════
Fund Balance:
   Beginning of year, July 1                                                         7,500
                                                               ────────────   ────────────
   End of year, June 30                                        $      7,500   $     10,356
                                                               ════════════   ════════════




                                                   102
                                    City of Jacksonville, North Carolina                    Schedule 28
                                    Skateboard Park Capital Project Fund
                                   Schedule of Revenues, Expenditures and
                                Changes in Fund Balances - Budget and Actual
                          From Inception and for the Fiscal Year Ended June 30, 2000



                                                                              Actual
                                                            ──────────────────────────────────────────
                                               Project
                                            Authorization    Prior Years    Current Year    Total to Date
                                            ────────────    ────────────    ────────────     ────────────
Revenues:

    Total revenues                          $          0    $          0    $          0    $          0
                                            ────────────    ────────────    ────────────    ────────────

Expenditures:
  Capital outlay:
    Other improvements                                               132         109,212          109,344
                                            ────────────    ────────────    ────────────     ────────────
    Total expenditures                           115,000             132         109,212          109,344
                                            ────────────    ────────────    ────────────     ────────────

    Revenues (under) expenditures               (115,000)           (132)       (109,212)        (109,344)
                                            ────────────    ────────────    ────────────     ────────────

Other financing sources:
  Operating transfers in--
    From Capital Reserve Fund                     90,000          90,000                           90,000
    From General Fund                             25,000                          25,000           25,000
                                            ────────────    ────────────    ────────────     ────────────
    Total other financing sources                115,000          90,000          25,000          115,000
                                            ────────────    ────────────    ────────────     ────────────

  Increase (decrease) in fund balance      $          0           89,868         (84,212)   $      5,656
                                           ════════════     ────────────                    ════════════
Fund Balance:
   Beginning of year, July 1                                                      89,868
                                                            ────────────    ────────────
   End of year, June 30                                     $     89,868    $      5,656
                                                            ════════════    ════════════




                                                103
                                    City of Jacksonville, North Carolina                    Schedule 29
                                   Kerr Street Park Capital Project Fund
                                   Schedule of Revenues, Expenditures and
                                Changes in Fund Balances - Budget and Actual
                          From Inception and for the Fiscal Year Ended June 30, 2000



                                                                              Actual
                                                            ──────────────────────────────────────────
                                               Project
                                            Authorization    Prior Years    Current Year    Total to Date
                                            ────────────    ────────────    ────────────     ────────────
Revenues:

    Total revenues                          $          0               0    $          0    $          0
                                            ────────────    ────────────    ────────────    ────────────

Expenditures:
  Capital outlay:
    Other improvements                                           107,918          25,961          133,879
                                            ────────────    ────────────    ────────────     ────────────
    Total expenditures                           146,851         107,918          25,961          133,879
                                            ────────────    ────────────    ────────────     ────────────

    Revenues (under) expenditures               (146,851)       (107,918)        (25,961)        (133,879)
                                            ────────────    ────────────    ────────────     ────────────

Other financing sources:
  Operating transfers in--
    From Capital Reserve Fund                    146,851         146,851                          146,851
                                            ────────────    ────────────    ────────────     ────────────
    Total other financing sources                146,851         146,851                          146,851
                                            ────────────    ────────────    ────────────     ────────────

  Increase (decrease) in fund balance      $          0           38,933         (25,961)   $     12,972
                                           ════════════     ────────────                    ════════════
Fund Balance:
   Beginning of year, July 1                                                      38,933
                                                            ────────────    ────────────
   End of year, June 30                                     $     38,933    $     12,972
                                                            ════════════    ════════════




                                                104
                                       City of Jacksonville, North Carolina                    Schedule 30
                                   Wilson Bay Park Phase I Capital Project Fund
                                      Schedule of Revenues, Expenditures and
                                   Changes in Fund Balances - Budget and Actual
                             From Inception and for the Fiscal Year Ended June 30, 2000



                                                                                 Actual
                                                               ──────────────────────────────────────────
                                                  Project
                                               Authorization    Prior Years    Current Year    Total to Date
                                               ────────────    ────────────    ────────────     ────────────
Revenues:
  Water Access grant                          $     52,500     $               $     52,500    $     52,500
                                              ────────────     ────────────    ────────────    ────────────
    Total revenues                                  52,500                           52,500          52,500
                                              ────────────     ────────────    ────────────    ────────────

Expenditures:
  Capital outlay:
    Other improvements                                                  100          75,491           75,591
                                               ────────────    ────────────    ────────────     ────────────
    Total expenditures                              100,000             100          75,491           75,591
                                               ────────────    ────────────    ────────────     ────────────

    Revenues (under) expenditures                   (47,500)           (100)        (22,991)         (23,091)
                                               ────────────    ────────────    ────────────     ────────────

Other financing sources:
  Operating transfers in--
    From Capital Reserve Fund                        47,500          17,500          30,000           47,500
                                               ────────────    ────────────    ────────────     ────────────
    Total other financing sources                    47,500          17,500          30,000           47,500
                                               ────────────    ────────────    ────────────     ────────────

  Increase in fund balance                    $          0           17,400          7,009     $     24,409
                                              ════════════     ────────────                    ════════════
Fund Balance:
   Beginning of year, July 1                                                         17,400
                                                               ────────────    ────────────
   End of year, June 30                                        $     17,400    $     24,409
                                                               ════════════    ════════════




                                                   105
                                    City of Jacksonville, North Carolina                  Schedule 31
                                Northeast Creek II Park Capital Project Fund
                                   Schedule of Revenues, Expenditures and
                                Changes in Fund Balances - Budget and Actual
                          From Inception and for the Fiscal Year Ended June 30, 2000



                                                                              Actual
                                                            ──────────────────────────────────────────
                                               Project
                                            Authorization    Prior Years   Current Year   Total to Date
                                            ────────────    ────────────   ────────────   ─────────────
Revenues:
  Contributions                            $                $              $       950    $         950
                                           ────────────     ────────────   ────────────   ─────────────
    Total revenues                                                                 950              950
                                            ────────────    ────────────   ────────────   ─────────────

Expenditures:
  Capital outlay:
    Other improvements                                                           37,637          37,637
                                            ────────────    ────────────   ────────────   ─────────────
    Total expenditures                            60,000                         37,637          37,637
                                            ────────────    ────────────   ────────────   ─────────────

    Revenues (under) expenditures                (60,000)                       (36,687)      (36,687)
                                            ────────────    ────────────   ──────────── ─────────────

Other financing sources:
  Operating transfers in--
    From Capital Reserve Fund                     60,000          60,000                         60,000
                                            ────────────    ────────────   ────────────   ─────────────
    Total other financing sources                 60,000          60,000                         60,000
                                            ────────────    ────────────   ────────────   ─────────────

  Increase (decrease) in fund balance      $          0           60,000       (36,687) $      23,313
                                           ════════════     ────────────                ═════════════
Fund Balance:
   Beginning of year, July 1                                                     60,000
                                                            ────────────   ────────────
   End of year, June 30                                     $     60,000   $     23,313
                                                            ════════════   ════════════




                                                106
                                    City of Jacksonville, North Carolina                   Schedule 32
                                    Woodlands Park Capital Project Fund
                                   Schedule of Revenues, Expenditures and
                                Changes in Fund Balances - Budget and Actual
                          From Inception and for the Fiscal Year Ended June 30, 2000



                                                                              Actual
                                                            ──────────────────────────────────────────
                                               Project
                                            Authorization    Prior Years    Current Year   Total to Date
                                            ────────────    ────────────    ────────────   ─────────────
Revenues:
    Total revenues                          $          0    $          0    $          0   $           0
                                            ────────────    ────────────    ────────────   ─────────────


Expenditures:
  Capital outlay:
    Other improvements                                            13,458         111,018         124,476
                                            ────────────    ────────────    ────────────   ─────────────
    Total expenditures                           145,000          13,458         111,018         124,476
                                            ────────────    ────────────    ────────────   ─────────────

    Revenues (under) expenditures               (145,000)        (13,458)       (111,018)     (124,476)
                                            ────────────    ────────────    ──────────── ─────────────

Other financing sources:
  Operating transfers in--
    From Capital Reserve Fund                    145,000          70,000          75,000         145,000
                                            ────────────    ────────────    ────────────   ─────────────
    Total other financing sources                145,000          70,000          75,000         145,000
                                            ────────────    ────────────    ────────────   ─────────────

  Increase (decrease) in fund balance      $          0           56,542         (36,018) $      20,524
                                           ════════════     ────────────                  ═════════════
Fund Balance:
   Beginning of year, July 1                                                      56,542
                                                            ────────────    ────────────
   End of year, June 30                                     $     56,542    $     20,524
                                                            ════════════    ════════════




                                                107
                                    City of Jacksonville, North Carolina                    Schedule 33
                                    Civic Facility Capital Project Fund
                                   Schedule of Revenues, Expenditures and
                                Changes in Fund Balances - Budget and Actual
                          From Inception and for the Fiscal Year Ended June 30, 2000



                                                                              Actual
                                                            ──────────────────────────────────────────
                                               Project
                                            Authorization    Prior Years    Current Year    Total to Date
                                            ────────────    ────────────    ────────────    ─────────────
Revenues:
    Total revenues                          $          0    $          0    $          0    $           0
                                            ────────────    ────────────    ────────────    ─────────────


Expenditures:
  Capital outlay:
    Other improvements                                             5,000           5,062           10,062
                                            ────────────    ────────────    ────────────    ─────────────
    Total expenditures                        10,005,000           5,000           5,062           10,062
                                            ────────────    ────────────    ────────────    ─────────────

    Revenues (under) expenditures            (10,005,000)         (5,000)         (5,062)      (10,062)
                                            ────────────    ────────────    ──────────── ─────────────

Other financing sources (uses):
  Installment purchase proceeds              10,000,000
  Operating transfers in--
    From General Fund                            145,000         145,000
  Operating transfers (out)--
    To General Fund                             (140,000)                       (140,000)     (140,000)
                                            ────────────    ────────────    ──────────── ─────────────
    Total other financing sources (uses)      10,005,000         145,000        (140,000)        5,000
                                            ────────────    ────────────    ──────────── ─────────────

  Increase (decrease) in fund balance      $          0     $    140,000    $   (145,062) $      (5,062)
                                           ════════════     ────────────                  ═════════════
Fund Balance:
   Beginning of year, July 1                                                     140,000
                                                            ────────────    ────────────
   End of year, June 30                                     $    140,000    $     (5,062)
                                                            ════════════    ════════════




                                                108
                                     City of Jacksonville, North Carolina                 Schedule 34
                            Downtown Riverfront Development Capital Project Fund
                                   Schedule of Revenues, Expenditures and
                                Changes in Fund Balances - Budget and Actual
                         From Inception and for the Fiscal Year Ended June 30, 2000



                                                                              Actual
                                                            ──────────────────────────────────────────
                                               Project
                                            Authorization    Prior Years   Current Year   Total to Date
                                            ────────────    ────────────   ────────────   ─────────────
Revenues:
  Historic Waterfront grant                 $     50,000    $              $     25,465   $      25,465
                                            ────────────    ────────────   ────────────   ─────────────
    Total revenues                                50,000                         25,465          25,465
                                            ────────────    ────────────   ────────────   ─────────────

Expenditures:
  Capital outlay:
    Other improvements                                                           45,465          45,465
                                            ────────────    ────────────   ────────────   ─────────────
    Total expenditures                            80,900                         45,465          45,465
                                            ────────────    ────────────   ────────────   ─────────────

    Revenues (under) expenditures                (30,900)                       (20,000)      (20,000)
                                            ────────────    ────────────   ──────────── ─────────────

Other financing sources:
  Operating transfers in--
    From General Fund                             30,900                         30,900          30,900
                                            ────────────    ────────────   ────────────   ─────────────
    Total other financing sources                 30,900                         30,900          30,900
                                            ────────────    ────────────   ────────────   ─────────────

  Increase in fund balance                  $          0    $          0   $     10,900   $      10,900
                                            ════════════    ════════════   ════════════   ═════════════




                                                 109
                                     City of Jacksonville, North Carolina                 Schedule 35
                         Sunset/Country Club Acres Annexation Capital Project Fund
                                   Schedule of Revenues, Expenditures and
                                Changes in Fund Balances - Budget and Actual
                         From Inception and for the Fiscal Year Ended June 30, 2000



                                                                              Actual
                                                            ──────────────────────────────────────────
                                               Project
                                            Authorization    Prior Years   Current Year   Total to Date
                                            ────────────    ────────────   ────────────   ─────────────
Revenues:
    Total revenues                          $          0    $          0   $          0   $           0
                                            ────────────    ────────────   ────────────   ─────────────


Expenditures:
  Capital outlay:
    Other improvements                                                           23,040          23,040
                                            ────────────    ────────────   ────────────   ─────────────
    Total expenditures                            23,040                         23,040          23,040
                                            ────────────    ────────────   ────────────   ─────────────

    Revenues (under) expenditures                (23,040)                       (23,040)      (23,040)
                                            ────────────    ────────────   ──────────── ─────────────

Other financing sources:
  Operating transfers in--
    From General Fund                             23,040                         23,040          23,040
                                            ────────────    ────────────   ────────────   ─────────────
    Total other financing sources                 23,040                         23,040          23,040
                                            ────────────    ────────────   ────────────   ─────────────

  Increase in fund balance                  $          0    $          0   $          0   $           0
                                            ════════════    ════════════   ════════════   ═════════════




                                                 110
                                       City of Jacksonville, North Carolina                  Schedule 36
                                       Rails to Trails Capital Project Fund
                                      Schedule of Revenues, Expenditures and
                                   Changes in Fund Balances - Budget and Actual
                             From Inception and for the Fiscal Year Ended June 30, 2000



                                                                                 Actual
                                                               ──────────────────────────────────────────
                                                  Project
                                               Authorization    Prior Years   Current Year   Total to Date
                                               ────────────    ────────────   ────────────   ─────────────
Revenues:
  NC Transportation Enhancement grant         $   1,264,000    $              $              $
  Investment earnings                                12,000                         15,826          15,826
                                               ────────────    ────────────   ────────────   ─────────────
    Total revenues                                1,276,000                         15,826          15,826
                                               ────────────    ────────────   ────────────   ─────────────

Expenditures:
  Capital outlay:
    Other improvements
                                               ────────────    ────────────   ────────────   ─────────────
    Total expenditures                            1,592,000
                                               ────────────    ────────────   ────────────   ─────────────

    Revenues over (under) expenditures             (316,000)                        15,826          15,826
                                               ────────────    ────────────   ────────────   ─────────────

Other financing sources:
  Operating transfers in--
    From General Fund                               316,000                        316,000         316,000
                                               ────────────    ────────────   ────────────   ─────────────
    Total other financing sources                   316,000                        316,000         316,000
                                               ────────────    ────────────   ────────────   ─────────────

  Increase in fund balance                    $          0     $          0   $    331,826   $     331,826
                                              ════════════     ════════════   ════════════   ═════════════




                                                   111
                                       City of Jacksonville, North Carolina                  Schedule 37
                                    Northwoods Playground Capital Project Fund
                                      Schedule of Revenues, Expenditures and
                                   Changes in Fund Balances - Budget and Actual
                             From Inception and for the Fiscal Year Ended June 30, 2000



                                                                                 Actual
                                                               ──────────────────────────────────────────
                                                  Project
                                               Authorization    Prior Years   Current Year   Total to Date
                                               ────────────    ────────────   ────────────   ─────────────
Revenues:
  Contribution                                 $      4,000    $              $      4,000   $       4,000
                                               ────────────    ────────────   ────────────   ─────────────
    Total revenues                                    4,000                          4,000           4,000
                                               ────────────    ────────────   ────────────   ─────────────

Expenditures:
  Capital outlay:
    Other improvements                                                              24,066          24,066
                                               ────────────    ────────────   ────────────   ─────────────
    Total expenditures                               29,000                         24,066          24,066
                                               ────────────    ────────────   ────────────   ─────────────

    Revenues (under) expenditures                   (25,000)                       (20,066)      (20,066)
                                               ────────────    ────────────   ──────────── ─────────────

Other financing sources:
  Operating transfers in--
    From Capital Reserve                             25,000                         25,000          25,000
                                               ────────────    ────────────   ────────────   ─────────────
    Total other financing sources                    25,000                         25,000          25,000
                                               ────────────    ────────────   ────────────   ─────────────

  Increase in fund balance                    $          0     $          0   $      4,934   $       4,934
                                              ════════════     ════════════   ════════════   ═════════════




                                                   112
                                     City of Jacksonville, North Carolina                 Schedule 38
                                Local Government Complex Capital Project Fund
                                    Schedule of Revenues, Expenditures and
                                 Changes in Fund Balances - Budget and Actual
                         From Inception and for the Fiscal Year Ended June 30, 2000



                                                                              Actual
                                                            ──────────────────────────────────────────
                                               Project
                                            Authorization    Prior Years   Current Year   Total to Date
                                            ────────────    ────────────   ────────────   ─────────────
Revenues:
    Total revenues                          $          0    $          0   $          0   $           0
                                            ────────────    ────────────   ────────────   ─────────────


Expenditures:
  Capital outlay:
    Other improvements                                                           57,697          57,697
                                            ────────────    ────────────   ────────────   ─────────────
    Total expenditures                         5,000,000                         57,697          57,697
                                            ────────────    ────────────   ────────────   ─────────────

    Revenues (under) expenditures             (5,000,000)                       (57,697)      (57,697)
                                            ────────────    ────────────   ──────────── ─────────────

Other financing sources:
  Installment purchase proceeds                5,000,000
                                            ────────────    ────────────   ────────────   ─────────────
    Total other financing sources              5,000,000
                                            ────────────    ────────────   ────────────   ─────────────

  (Decrease) in fund balance                $          0    $          0   $    (57,697) $    (57,697)
                                            ════════════    ════════════   ════════════ ═════════════




                                                 113
                                    City of Jacksonville, North Carolina                  Schedule 39
                                     Sturgeon City Capital Project Fund
                                   Schedule of Revenues, Expenditures and
                                Changes in Fund Balances - Budget and Actual
                         From Inception and for the Fiscal Year Ended June 30, 2000



                                                                              Actual
                                                            ──────────────────────────────────────────
                                               Project
                                            Authorization    Prior Years   Current Year   Total to Date
                                            ────────────    ────────────   ────────────   ─────────────
Revenues:
    Total revenues                          $          0    $          0   $          0   $           0
                                            ────────────    ────────────   ────────────   ─────────────


Expenditures:
  Capital outlay:
    Other improvements                                                           24,543          24,543
                                            ────────────    ────────────   ────────────   ─────────────
    Total expenditures                         4,000,000                         24,543          24,543
                                            ────────────    ────────────   ────────────   ─────────────

    Revenues (under) expenditures             (4,000,000)                       (24,543)      (24,543)
                                            ────────────    ────────────   ──────────── ─────────────

Other financing sources:
  Installment purchase proceeds                4,000,000
                                            ────────────    ────────────   ────────────   ─────────────
    Total other financing sources              4,000,000
                                            ────────────    ────────────   ────────────   ─────────────

  (Decrease) in fund balance                $          0    $          0   $    (24,543) $    (24,543)
                                            ════════════    ════════════   ════════════ ═════════════




                                                 114
                                    City of Jacksonville, North Carolina                  Schedule 40
                                      City Compost Capital Project Fund
                                   Schedule of Revenues, Expenditures and
                                Changes in Fund Balances - Budget and Actual
                         From Inception and for the Fiscal Year Ended June 30, 2000



                                                                              Actual
                                                            ──────────────────────────────────────────
                                               Project
                                            Authorization    Prior Years   Current Year   Total to Date
                                            ────────────    ────────────   ────────────   ─────────────
Revenues:
    Total revenues                          $          0    $          0   $          0   $           0
                                            ────────────    ────────────   ────────────   ─────────────


Expenditures:
  Capital outlay:
    Other improvements
                                            ────────────    ────────────   ────────────   ─────────────
    Total expenditures                           140,000
                                            ────────────    ────────────   ────────────   ─────────────

    Revenues (under) expenditures               (140,000)
                                            ────────────    ────────────   ────────────   ─────────────

Other financing sources:
  Operating transfers in--
    From General Fund                            140,000                        140,000         140,000
                                            ────────────    ────────────   ────────────   ─────────────
    Total other financing sources                140,000                        140,000         140,000
                                            ────────────    ────────────   ────────────   ─────────────

  Increase in fund balance                  $          0    $          0   $    140,000   $     140,000
                                            ════════════    ════════════   ════════════   ═════════════




                                                 115
                                     City of Jacksonville, North Carolina                 Schedule 41
                                  Citywide Landscaping Capital Project Fund
                                    Schedule of Revenues, Expenditures and
                                Changes in Fund Balances - Budget and Actual
                         From Inception and for the Fiscal Year Ended June 30, 2000



                                                                              Actual
                                                            ──────────────────────────────────────────
                                               Project
                                            Authorization    Prior Years   Current Year   Total to Date
                                            ────────────    ────────────   ────────────   ─────────────
Revenues:
    Total revenues                          $          0    $          0   $          0   $           0
                                            ────────────    ────────────   ────────────   ─────────────


Expenditures:
  Capital outlay:
    Other improvements                                                            8,000           8,000
                                            ────────────    ────────────   ────────────   ─────────────
    Total expenditures                            42,500                          8,000           8,000
                                            ────────────    ────────────   ────────────   ─────────────

    Revenues (under) expenditures                (42,500)                        (8,000)       (8,000)
                                            ────────────    ────────────   ──────────── ─────────────

Other financing sources:
  Operating transfers in--
    From General Fund                             42,500                         42,500          42,500
                                            ────────────    ────────────   ────────────   ─────────────
    Total other financing sources                 42,500                         42,500          42,500
                                            ────────────    ────────────   ────────────   ─────────────

  Increase in fund balance                  $          0    $          0   $     34,500   $      34,500
                                            ════════════    ════════════   ════════════   ═════════════




                                                 116
                                    City of Jacksonville, North Carolina                  Schedule 42
                              Jacksonville Business Park Capital Project Fund
                                   Schedule of Revenues, Expenditures and
                                Changes in Fund Balances - Budget and Actual
                         From Inception and for the Fiscal Year Ended June 30, 2000



                                                                              Actual
                                                            ──────────────────────────────────────────
                                               Project
                                            Authorization    Prior Years   Current Year   Total to Date
                                            ────────────    ────────────   ────────────   ─────────────
Revenues:
    Total revenues                          $          0    $          0   $          0   $           0
                                            ────────────    ────────────   ────────────   ─────────────


Expenditures:
  Capital outlay:
    Other improvements
                                            ────────────    ────────────   ────────────   ─────────────
    Total expenditures                           225,000
                                            ────────────    ────────────   ────────────   ─────────────

    Revenues (under) expenditures               (225,000)
                                            ────────────    ────────────   ────────────   ─────────────

Other financing sources:
  Operating transfers in--
    From General Fund                            225,000                        225,000         225,000
                                            ────────────    ────────────   ────────────   ─────────────
    Total other financing sources                225,000                        225,000         225,000
                                            ────────────    ────────────   ────────────   ─────────────

  Increase in fund balance                  $          0    $          0   $    225,000   $     225,000
                                            ════════════    ════════════   ════════════   ═════════════




                                                 117
                                    City of Jacksonville, North Carolina                          Schedule 43
                                               Capital Reserve Fund
                                      Schedule of Revenues, Expenditures and
                                   Changes in Fund Balances - Budget and Actual
                             From Inception and for the Fiscal Year Ended June 30, 2000



                                                                                  Actual
                                                                ──────────────────────────────────────────
                                                  Project
                                               Authorization     Prior Years      Current Year      Total to Date
                                               ────────────     ────────────      ────────────      ────────────
Revenues:
  Investment earnings                         $     634,121     $     265,496     $     395,455     $     660,951
  Investment earnings-Powell Bill                    28,736            28,636                              28,636
  Contribution - Onslow County
    Board of Education                               56,109           55,709               352            56,061
                                               ────────────     ────────────      ────────────      ────────────
    Total revenues                                  718,966          349,841           395,807           745,648
                                               ────────────     ────────────      ────────────      ────────────

Expenditures:
  Initiatives FY ’99                              1,039,740
  Reserve for debt retirement                     6,752,644
  Reserve for recreation                              1,075
                                               ────────────     ────────────      ────────────      ────────────
    Total expenditures                            7,793,459
                                               ────────────     ────────────      ────────────      ────────────

    Revenues over (under) expenditures           (7,074,493)         349,841           395,807           745,648
                                               ────────────     ────────────      ────────────      ────────────

Other financing sources (uses):
  Operating transfers in--
    From General Fund                              3,475,943         2,412,530        1,063,413         3,475,943
    From Capital Project Funds                        44,331            44,286               44            44,330
  Operating transfers (out)--
    To Multi-purpose recreation complex
      capital project                             (1,189,102)       (1,074,102)        (115,000)        (1,189,102)
    To Street improvements                          (352,208)         (352,208)                           (352,208)
    To Wooten Park                                   (55,000)          (55,000)                            (55,000)
    To Northwoods Park                               (41,158)          (41,158)                            (41,158)
    To General Fund                                 (151,308)         (151,308)                           (151,308)
    To Northeast Creek Park                          (17,500)          (17,500)                            (17,500)
    To Fire station #4                              (208,000)         (208,000)                           (208,000)
    To Kerr Street Park                             (146,851)         (146,851)                           (146,851)
    To Wilson Bay Park                               (47,500)          (17,500)         (30,000)           (47,500)
    To Woodlands Park                               (145,000)          (70,000)         (75,000)          (145,000)
    To Northeast Creek Park II                       (60,000)          (60,000)                            (60,000)
    To Demolition                                   (120,000)                          (120,000)          (120,000)
    To Northwoods Playground                         (25,000)                           (25,000)           (25,000)
    To Downtown Trail                                (10,000)                           (10,000)           (10,000)
    To Chaney Creek Power Line                       (12,500)                           (12,500)           (12,500)
  Residual equity transfers in--
    From Water/Sewer Fund                         5,435,346        2,000,000          3,435,346        5,435,346
    From Water/Sewer Capital Reserve                700,000          700,000                             700,000
                                               ────────────     ────────────      ────────────      ────────────
    Total other financing sources                 7,074,493        2,963,189         4,111,303         7,074,492
                                               ────────────     ────────────      ────────────      ────────────

  Increase in fund balance                    $          0         3,313,030          4,507,110     $ 7,820,140
                                              ════════════      ────────────                        ════════════
Fund Balance:
   Beginning of year, July 1                                                         3,313,030
                                                                ────────────      ────────────
   End of year, June 30                                         $ 3,313,030       $ 7,820,140
                                                                ════════════      ════════════




                                                    118
                     Enterprise Funds

The Enterprise Funds are used to account for operations in the
City of Jacksonville that are financed through user charges.
Individual Fund Descriptions:
Water and Sewer Fund - accounts for water and sewer
operations.
Solid Waste Fund - accounts for solid waste disposal
 (county tipping fee) and recycling.
Water Capital Projects Fund - accounts for funds used
in the construction of water facilities.
Sewer Capital Projects Fund - accounts for funds used
 in the construction of sewer facilities.
Water and Sewer Capital Reserve Fund - accounts for funds
to be used for future capital needs.




                                119
                                      City of Jacksonville, North Carolina                Statement 44
                                                Enterprise Funds
                                             Combining Balance Sheet
                                                  June 30, 2000
                                    With Comparative Totals for June 30, 1999


                                                                                      Totals
                                                                        ───────────────────────────────
                                          Water and    Solid Waste        June 30,             June 30,
                                         Sewer Fund       Fund              2000                 1999
                                       ────────────   ────────────      ─────────────        ────────────
Assets
Current Assets:
  Cash and investments                $   7,643,586   $   231,895      $    7,875,481         $  9,855,245
  Accounts receivable (net)               1,207,048        90,059           1,297,107            1,240,956
  Due from other funds                       13,275                            13,275                9,382
  Inventories                               145,366                           145,366              129,433
  Prepaid expenses                                                                                     356
                                       ────────────   ────────────      ─────────────         ────────────
  Total Current Assets                    9,009,275        321,954          9,331,229           11,235,372
                                       ────────────   ────────────      ─────────────         ────────────
Fixed Assets:
  Fixed assets (net)                    65,119,782                         65,119,782           64,183,273
                                      ────────────    ────────────      ─────────────         ────────────
    Total Assets                      $ 74,129,057    $    321,954      $ 74,451,011          $ 75,418,645
                                      ════════════    ════════════      ═════════════         ════════════

Liabilities and Fund Equity
Current Liabilities:
  Accounts payable and accrued
    liabilities                       $     438,682   $    111,366      $       550,048       $   704,573
  General obligation bonds
    payable-current                         100,000                             100,000            100,000
  Installment purchases
    payable-current                         497,440                           497,440              459,062
  Loans payable-current                   1,351,345                         1,351,345            1,291,821
                                       ────────────   ────────────      ─────────────         ────────────
  Total Current Liabilities               2,387,467        111,366          2,498,833            2,555,456
                                       ────────────   ────────────      ─────────────         ────────────

Noncurrent Liabilities:
  Compensated absences payable              99,898                               99,898           106,288
  Customer deposits                        282,442                              282,442           257,527
  General obligation bonds
    payable-noncurrent                                                                            100,000
  Installment purchases
    payable-noncurrent                    5,780,632                         5,780,632            6,184,147
  Loans payable-noncurrent               20,109,608                        20,109,608           21,460,953
  Deferred revenue                          130,647                           130,647              142,688
                                       ────────────   ────────────      ─────────────         ────────────
  Total Noncurrent Liabilities           26,403,227                        26,403,227           28,251,603
                                       ────────────   ────────────      ─────────────         ────────────
    Total Liabilities                    28,790,694        111,366         28,902,060           30,807,059
                                       ────────────   ────────────      ─────────────         ────────────

Fund Equity
Contributed Capital:
  Local                                 16,923,897             230         16,924,127           13,359,630
  Federal                                2,968,618                          2,698,618            3,007,155
  State                                  2,790,813                          2,790,813            2,696,129
                                      ────────────    ────────────      ─────────────         ────────────
    Total Contributed Capital           22,683,328             230         22,683,558           19,062,914
Retained earnings                       22,655,035         210,358         22,865,393           25,548,672
                                      ────────────    ────────────      ─────────────         ────────────
    Total Fund Equity                   45,338,363         210,588         45,548,951           44,611,586
                                      ────────────    ────────────      ─────────────         ────────────
Total Liabilities and Fund Equity     $ 74,129,057    $    321,954      $ 74,451,011          $ 75,418,645
                                      ════════════    ════════════      ═════════════         ════════════




                                               120
                                    City of Jacksonville, North Carolina                  Statement        45
                                              Enterprise Funds
                  Combining Statement of Revenues, Expenses and Changes in Retained Earnings
                                  For the Fiscal Year Ended June 30, 2000
                       With Comparative Totals for the Fiscal Year Ended June 30, 1999




                                                                                      Totals

                                             Water and      Solid Waste      June 30,         June 30,
                                            Sewer Fund         Fund            2000            1999
                                           ────────────    ────────────    ────────────     ────────────
Operating revenues:
  Charges for services                     $ 8,965,035     $ 1,309,676     $ 10,274,711    $ 9,522,543
                                           ────────────    ────────────    ────────────    ────────────
    Total operating revenues                  8,965,035       1,309,676      10,274,711       9,522,543
                                           ────────────    ────────────    ────────────    ────────────
Operating expenses:
  Solid Waste Fund                                            1,359,104      1,359,104         1,265,069
  Water/Sewer Administration                 1,142,160                       1,142,160         1,020,304
  Water/Sewer Engineering                      132,024                         132,024           238,963
  Water/Sewer Metering                         270,323                         270,323           266,302
  Water/Sewer Lines Maintenance                647,570                         647,570           617,130
  Water Supply                                 611,208                         611,208           601,551
  Water/Sewer Hurricane Bonnie                                                                    30,590
  Water/Sewer Hurricane Irene                       700                             700
  Water/Sewer Hurricane Dennis                    7,032                           7,032
  Water/Sewer Hurricane Floyd                   246,606                         246,606
  Wastewater Treatment                        1,320,974                       1,320,974       1,460,916
  Depreciation                                3,457,903                       3,457,903       3,400,034
                                           ────────────    ────────────    ────────────    ────────────
    Total operating expenses                  7,836,500       1,359,104       9,195,604       8,900,859
                                           ────────────    ────────────    ────────────    ────────────
      Operating income (loss)                 1,128,535         (49,428)      1,079,107        621,684
                                           ────────────    ────────────    ────────────    ────────────
Nonoperating revenues (expenses):
  Investment earnings                           426,427         11,640          438,067         499,978
  FEMA                                          210,077         37,003          247,080          29,504
  ICMA                                            1,380                           1,380
  Assessments collected                          11,299                          11,299          11,599
  Interest collected on assessments               1,755                           1,755           8,569
  Gain on sale of fixed assets                    8,859                           8,859           7,847
  Interest on long-term debt                 (1,156,202)                     (1,156,202)     (1,232,620)
                                           ────────────    ────────────    ────────────    ────────────
    Total nonoperating revenues
      (expenses)                               (496,405)         48,643        (447,762)       (675,123)
                                           ────────────    ────────────    ────────────    ────────────

Net income (loss)                              632,130             (785)       631,345          (53,439)
Add depreciation on contributed
  capital                                       120,722                         120,722         120,723
                                           ────────────    ────────────    ────────────    ────────────

Increase (decrease) in retained earnings        752,852            (785)        752,067           67,284
Retained earnings:
  Beginning of year, July 1                  25,337,529        211,143       25,548,672      28,181,388
  Residual equity transfers (out)            (3,435,346)                     (3,435,346)     (2,700,000)
                                           ────────────    ────────────    ────────────    ────────────

  End of year, June 30                     $ 22,655,035    $    210,358    $ 22,865,393    $ 25,548,672
                                           ════════════    ════════════    ════════════    ════════════




                                                 121
                                     City of Jacksonville, North Carolina                   Statement 46
                                                Enterprise Funds
                                        Combining Statement of Cash Flows
                                      For the Fiscal Year Ended June 30, 2000
                            With Comparative Totals for the Fiscal Year Ended June 30, 1999



                                                                                       Totals
                                                                             ────────────────────────────
                                              Water and      Solid Waste      June 30,       June 30,
                                              Sewer Fund        Fund            2000            1999
                                             ────────────    ───────────     ─────────────    ────────────

Cash flows from operating activities:
  Cash received from customers               $  8,839,064    $ 1,309,687    $ 10,148,751    $  9,670,118
  Cash paid for goods and services             (2,367,082)    (1,306,588)     (3,673,670)     (3,074,897)
  Cash paid to employees                       (2,138,948)       (47,700)     (2,186,648)     (2,315,148)
  Customer deposits                                24,915                         24,915          28,755
                                             ────────────    ───────────    ────────────    ────────────
    Net cash provided (used) for
      operating activities                      4,357,949        (44,601)      4,313,348       4,308,828
                                             ────────────    ───────────    ────────────    ────────────


Cash flows from noncapital financing
  activities:
  Residual equity transfer out                 (3,435,346)                    (3,435,346)     (2,700,000)
                                             ────────────    ───────────    ────────────    ────────────
    Net cash provided (used) by
      noncapital financing activities          (3,435,346)                    (3,435,346)     (2,700,000)
                                             ────────────    ───────────    ────────────    ────────────

Cash flows from capital and related
  financing activities:
  Principal paid on long-term debt             (1,862,558)                    (1,862,558)       (1,836,501)
  Interest paid on long-term debt              (1,156,202)                    (1,156,202)       (1,232,620)
  Contributed capital                             224,813                        224,813            25,000
  Proceeds from borrowing                         105,600                        105,600           500,000
  Purchase of capital assets                     (877,859)                      (877,859)       (1,249,838)
  Proceeds from sale of assets                      8,859                          8,859             7,016
  Assessments collected                            11,299                         11,299            11,599
  Interest collected on assessments                 1,755                          1,755             8,569
  Refund from ICMA                                  1,380                          1,380
  Proceeds from FEMA                              210,077         37,003         247,080          29,504
                                             ────────────    ───────────    ────────────    ────────────
    Net cash used for capital and
      related financing activities             (3,332,836)        37,003      (3,295,833)     (3,737,271)
                                             ────────────    ───────────    ────────────    ────────────

Cash flows from investing activities:
  Interest earned on investments                  426,427         11,640         438,067         499,978
                                             ────────────    ───────────    ────────────    ────────────
   Net cash provided by
     investing activities                         426,427         11,640         438,067         499,978
                                             ────────────    ───────────    ────────────    ────────────

  Net(decrease) in cash and
    cash equivalents                           (1,983,806)         4,042      (1,979,764)     (1,628,465)
  Cash and cash equivalents, July 1             9,627,392        227,853       9,855,245      11,483,710
                                             ────────────    ───────────    ────────────    ────────────
  Cash and cash equivalents, June 30         $ 7,643,586     $   231,895    $ 7,875,481     $ 9,855,245
                                             ════════════    ═══════════    ════════════    ════════════


                                                                              Continued on next page.




                                                 122
                                    City of Jacksonville, North Carolina              Statement 46,
                                              Enterprise Funds                        continued.
                                      Combining Statement of Cash Flows
                                    For the Fiscal Year Ended June 30, 2000
                          With Comparative Totals for the Fiscal Year Ended June 30, 1999



                                                                                      Totals
                                                                           ───────────────────────────
                                            Water and      Solid Waste       June 30,          June 30,
                                            Sewer Fund        Fund             2000              1999
                                           ────────────    ───────────     ────────────      ────────────
Reconciliation of Operating Income
  to Net Cash Provided (Used) for
  Operating Activities:

Operating income (loss)                    $ 1,128,535     $   (49,428)    $ 1,079,107      $    621,684
                                           ────────────    ───────────     ────────────     ────────────

Adjustments to reconcile operating
  loss to net cash provided by
  (used) in operating activities:
Depreciation                                  3,457,903                       3,457,903        3,400,034
Bad debt expense                                 49,611          4,264           53,875           25,113
Change in assets and liabilities:
  Increase (Decrease) in accrued
    vacation pay                                 (6,390)                         (6,390)           1,488
  (Increase) Decrease in prepaid
    expenses                                         356                            356             (246)
  Increase (Decrease) in accounts
    payable                                    (155,077)           552         (154,525)          74,944
  (Increase) Decrease in inventories            (15,933)                        (15,933)          16,276
  Increase (Decrease) in due to
    other funds                                                                                   (6,795)
  Increase (Decrease) in deferred
    revenues                                    (12,041)                        (12,041)         (23,297)
  Increase (Decrease) in customer
    deposits                                     24,915                          24,915           28,755
 (Increase) Decrease in accounts
    receivable                                 (110,037)            11         (110,026)         180,254
  (Increase) Decrease in due from
    other funds                                  (3,893)                         (3,893)          (9,382)
                                           ────────────    ───────────     ────────────     ────────────
    Total adjustments                         3,229,414          4,827        3,234,241        3,687,144
                                           ────────────    ───────────     ────────────     ────────────
Net cash provided (used) for
  operating activities                     $ 4,357,949     $   (44,601)    $ 4,313,348      $ 4,308,828
                                           ════════════    ═══════════     ════════════     ════════════

Non-Cash Supplemental Disclosure
  Capital contributed by developers        $ 3,516,553     $         0     $          0     $ 3,516,553
                                           ════════════    ═══════════     ════════════     ════════════




                                               123
                                   City of Jacksonville, North Carolina                        Schedule 47
                                            Water and Sewer Fund                                   Page 1 of 3
                                   Schedule of Revenues and Expenditures--
                                         Budget and Actual (Non-GAAP)
                                   For the Fiscal Year Ended June 30, 2000
                   With Comparative Actual Amounts for the Fiscal Year Ended June 30, 1999

                                                             2000                      1999
                                          ───────────────────────────────────────    ───────────
                                                                       Variance
                                                                       Favorable
                                             Budget        Actual    (Unfavorable)      Actual
                                          ───────────   ───────────   ───────────    ───────────
Revenues
Operating revenues:
  Charges for sales and services:
  Water sales                             $ 1,870,000   $ 1,893,296   $    23,296    $ 1,776,671
  Water tap fees                                6,000         4,977        (1,023)         7,101
  Water facility fees                         121,000       245,005       124,005        107,522
  Sewer sales                               2,656,000     2,660,993         4,993      2,612,939
  Sewer tap fees                                3,000         2,557          (443)         1,781
  Sewer facility fees                         490,217       746,031       255,814        323,803
  Late penalty charges                         50,000        61,055        11,055         96,976
  New account service charges                  34,000        38,880         4,880         34,580
  Interest collected on tap fees                  300                        (300)
  Onslow County Leachate                       82,500        52,757       (29,743)        62,115
  Land application user charge              2,928,000     3,053,759       125,759      3,060,936
  Land application late fee                    25,000        34,129         9,129         27,115
  Miscellaneous operating revenue              97,216       171,596        74,380        189,812
                                          ───────────   ───────────   ───────────    ───────────
    Total                                   8,363,233     8,965,035       601,802      8,301,351
                                          ───────────   ───────────   ───────────    ───────────
Nonoperating revenues:
  Interest earned on investments              318,000       426,427        108,427       490,510
  FEMA                                        268,000       210,077       (57,923)        29,504
  ICMA                                                        1,380         1,380
  Assessments collected                        10,000        11,299         1,299         11,599
  Interest collected on assessments             1,000         1,755           755          8,569
  Gain on sale of fixed assets                                8,859         8,859          7,847
                                          ───────────   ───────────   ───────────    ───────────
    Total                                     597,000       659,797        62,797        548,029
                                          ───────────   ───────────   ───────────    ───────────
  Total revenues                            8,960,233     9,624,832       664,599      8,849,380
                                          ═══════════   ═══════════   ═══════════    ═══════════
Expenditures
Water/Sewer operations
 Administration
  Salaries and employee benefits                            567,243                      582,657
  Supplies                                                   18,892                       20,757
  Postage                                                    40,160                       25,294
  Insurance                                                     161                          192
  Maintenance and repair                                                                      40
  Contracted Services-Data Processing                       347,779                      321,798
  Contracted services                                        53,310                       23,814
  Other departmental expenditures                            65,004                       25,793
  Bad debt expense                                           49,611                       19,959
                                          ───────────   ───────────   ───────────    ───────────
    Total                                                 1,142,160                    1,020,304
                                          ───────────   ───────────   ───────────    ───────────
 Engineering
  Salaries and employee benefits                            106,430                      163,823
  Supplies                                                    2,178                        1,899
  Insurance                                                   1,678                        1,558
  Maintenance and repair                                                                  49,610
  Contracted services                                         7,563                        1,292
  Other departmental expenditures                            14,175                       20,781
                                          ───────────   ───────────   ───────────    ───────────
  Total                                                     132,024                      238,963
                                          ───────────   ───────────   ───────────    ───────────
 Metering distribution
  Salaries and employee benefits                            208,969                      207,494
  Supplies                                                   45,573                       38,807
  Insurance                                                   2,305                        2,453
  Maintenance and repair                                         76                           48
  Contracted services                                           441                        2,736
  Other departmental expenditures                            12,959                       14,764
                                          ───────────   ───────────   ───────────    ───────────
  Total                                                     270,323                      266,302
                                          ───────────   ───────────   ───────────    ───────────



                                                 124
                               City of Jacksonville, North Carolina                      Schedule 47
                                      Water and Sewer Fund                                 Page 2 of 3
                                Schedule of Revenues and Expenditures--
                                   Budget and Actual (Non-GAAP)
                              For the Fiscal Year Ended June 30, 2000
               With Comparative Actual Amounts for the Fiscal Year Ended June 30, 1999


                                                             2000                      1999
                                         ───────────────────────────────────────    ───────────
                                                                      Variance
                                                                      Favorable
                                            Budget        Actual    (Unfavorable)     Actual
                                         ───────────   ───────────   ───────────    ───────────

 Lines maintenance
  Salaries and employee benefits        $              $   423,894   $              $   401,216
  Supplies                                                  67,383                       64,676
  Insurance                                                  4,113                        3,778
  Utilities                                                    652                          647
  Maintenance and repair                                     4,104                        1,512
  Contracted services                                       76,309                       62,077
  Other departmental expenditures                           71,115                       83,224
                                         ───────────   ───────────   ───────────    ───────────
  Total                                                    647,570                      617,130
                                         ───────────   ───────────   ───────────    ───────────
  Total Water/Sewer operations             3,075,414     2,192,077       883,337      2,142,699
                                         ───────────   ───────────   ───────────    ───────────

 Water supply
  Salaries and employee benefits                           291,740                      285,619
  Supplies                                                  16,918                       14,457
  Insurance                                                  5,583                        5,500
  Utilities                                                231,469                      232,423
  Maintenance and repair                                    43,659                       37,646
  Contracted services                                        8,718                       12,124
  Other departmental expenditures                           13,121                       13,782
                                         ───────────   ───────────   ───────────    ───────────
  Total water supply                         649,644       611,208        38,436        601,551
                                         ───────────   ───────────   ───────────    ───────────
 Hurricane Bonnie
  Salaries and employee benefits                                                         19,982
  Maintenance and repair                                                                 10,139
  Other departmental expenditures                                                           469
                                         ───────────   ───────────   ───────────    ───────────
  Total Hurricane Bonnie                                                                 30,590
                                         ───────────   ───────────   ───────────    ───────────
Hurricane Irene
  Salaries and employee benefits                               700
                                         ───────────   ───────────   ───────────    ───────────
  Total Hurricane Irene                        5,000           700         4,300
                                         ───────────   ───────────   ───────────    ───────────
Hurricane Dennis
  Salaries and employee benefits                             6,554
  Maintenance and repair                                       300
  Other departmental expenditures                              178
                                         ───────────   ───────────   ───────────    ───────────
  Total Hurricane Dennis                       8,000         7,032           968
                                         ───────────   ───────────   ───────────    ───────────
Hurricane Floyd
  Salaries and employee benefits                            17,778
  Maintenance and repair                                   196,162
  Other departmental expenditures                           32,666
                                         ───────────   ───────────   ───────────    ───────────
  Total Hurricane Floyd                      290,580       246,606        43,974
                                         ───────────   ───────────   ───────────    ───────────




                                                125
                               City of Jacksonville, North Carolina                                   Schedule 47
                                      Water and Sewer Fund                                              Page 3 of 3
                                Schedule of Revenues and Expenditures--
                                   Budget and Actual (Non-GAAP)
                              For the Fiscal Year Ended June 30, 2000
               With Comparative Actual Amounts for the Fiscal Year Ended June 30, 1999

                                                           2000                                  1999
                                         ───────────────────────────────────────               ───────────
                                                                      Variance
                                                                      Favorable
                                            Budget        Actual    (Unfavorable)                Actual
                                         ───────────   ───────────   ───────────               ───────────
Wastewater treatment
  Salaries and employee benefits         $                 $   509,250       $                 $   612,521
  Supplies                                                      87,031                              94,175
  Insurance                                                     30,417                              13,048
  Utilities                                                    473,630                             505,788
  Maintenance and repair                                       135,061                             147,834
  Contracted services                                           31,865                              40,672
  Other departmental expenditures                               53,720                              46,878
                                         ───────────       ───────────       ───────────       ───────────
  Total wastewater treatment               1,428,871         1,320,974           107,897         1,460,916
                                         ───────────       ───────────       ───────────       ───────────
Total                                      5,457,509         4,378,597         1,078,912         4,235,756
                                         ───────────       ───────────       ───────────       ───────────
Budgetary appropriations:
  Interest paid                               1,252,810        1,156,202             96,608        1,232,620
  Debt principal                              1,915,482        1,862,558             52,924        1,836,501
  Increase (decrease) in inventory                                15,933            (15,933)         (16,276)
  (Increase) decrease in accrued
    vacation pay                                                    6,390            (6,390)          (1,488)
  Increase (decrease) in prepaid
    expenditures                                                     (356)              356              246
  Proceeds from borrowing                    (1,545,906)                         (1,545,906)
  Appropriated retained earnings             (1,655,329)                         (1,655,329)
  Operating transfers in--
    From water/sewer capital projects        (1,935,346)       (1,935,346)                          (500,000)
  Operating transfers (out)--
    To water/sewer capital projects           2,231,623           685,717         1,545,906          911,737
    To General Fund                               5,166                               5,166
  Residual equity transfers (in)—
    From water/sewer Capital Reserve           (500,000)         (500,000)
  Residual equity transfers (out)—
    To General Fund Capital Reserve        3,435,346         3,435,346                           2,000,000
  Capital outlay                             298,878           206,309            92,569           350,033
                                         ───────────       ───────────       ───────────       ───────────
  Total budgetary appropriations           3,502,724         4,932,753        (1,430,029)        5,813,373
                                         ───────────       ───────────       ───────────       ───────────
Total expenditures                       $ 8,960,233       $ 9,311,350       $ (351,117)       $10,049,129
                                         ═══════════       ═══════════       ═══════════       ═══════════
Reconciliation of modified accrual basis to full accrual basis:
Total revenues                                             $ 9,624,832                         $ 8,849,380
Total expenditures                                           9,311,350                          10,049,129
                                                           ───────────                         ───────────
Excess of revenues over expenditures                           313,482                          (1,199,749)
Budgetary appropriations (above):
Payment of debt principal                                    1,862,558                           1,836,501
Increase (decrease) in inventory                                15,933                             (16,276)
(Increase) decrease in accrued vacation pay                      6,390                              (1,488)
Increase (decrease) in prepaid expenditures                       (356)                                246
Capital outlay                                                 206,309                             350,033
Operating transfers                                         (1,249,629)                            411,737
Residual equity transfers                                    2,935,346                           2,000,000
                                                           ───────────                         ───────────
  Total budgetary appropriations                             3,776,551                           4,580,753

Depreciation (Statement 45)                                  (3,457,903)                         (3,400,034)
                                                           ───────────                         ───────────
Net income (loss) (Statement 45)                           $    632,130                        $    (19,030)
                                                           ═══════════                         ═══════════

Note: Prepared on the budgetary basis, which is modified accrual.


                                                   126
                               City of Jacksonville, North Carolina                        Schedule 48
                                         Solid Waste Fund
                                Schedule of Revenues and Expenditures--
                                   Budget and Actual (Non-GAAP)
                              For the Fiscal Year Ended June 30, 2000
             With Comparative Actual Amounts for the Fiscal Year Ended June 30, 1999


                                                             2000                        1999
                                          ───────────────────────────────────────      ───────────
                                                                       Variance
                                                                       Favorable
                                             Budget       Actual    (Unfavorable)        Actual
                                          ───────────   ───────────   ───────────      ───────────
Revenues:
Operating revenues:
  Charges for sales and services:
  Commercial fees                         $   694,000    $   784,466    $    90,466    $   718,232
  Commercial pickups                           36,000         42,179          6,179         41,254
  Residential fees                            420,000        464,446         44,446        429,763
  Recycling                                       875            212           (663)           734
  Other operating revenues                     23,000         18,373         (4,627)        31,209
                                          ───────────    ───────────    ───────────    ───────────
    Total operating revenues                1,173,875      1,309,676        135,801      1,221,192
                                          ───────────    ───────────    ───────────    ───────────
Nonoperating revenues:
  Interest earned on investments                8,000         11,640          3,640          9,468
  FEMA                                                        37,003         37,003
                                          ───────────    ───────────    ───────────    ───────────
    Total nonoperating revenues                 8,000         48,643         40,643          9,468
                                          ───────────    ───────────    ───────────    ───────────
    Total revenues                          1,181,875      1,358,319        176,444      1,230,660
                                          ═══════════    ═══════════    ═══════════    ═══════════
Expenditures:
  Salaries and employee benefits                              47,700                        51,385
  Other departmental expenditures                              5,416                         3,729
  Contracted services-landfill                             1,301,724                     1,204,801
  Bad debt                                                     4,264                         5,154
                                          ───────────    ───────────    ───────────    ───────────
    Total                                   1,391,214      1,359,104         32,110      1,265,069
                                          ───────────    ───────────    ───────────    ───────────
Budgetary appropriations:
  Operating transfers out—
    To General Fund                             1,628                         1,628
  Appropriated retained earnings             (210,967)                     (210,967)
                                          ───────────    ───────────    ───────────    ───────────
  Total budgetary appropriations             (209,339)                     (209,339)
                                          ───────────    ───────────    ───────────    ───────────
Total expenditures                        $ 1,181,875    $ 1,359,104    $ (177,229)    $ 1,265,069
                                          ═══════════    ═══════════    ═══════════    ═══════════

Reconciliation of modified accrual basis to full accrual basis:

Total revenues                                           $ 1,358,319                   $ 1,230,660
Total expenditures                                         1,359,104                     1,265,069
                                                         ───────────                   ───────────
Excess of revenues (under) expenditures                         (785)                      (34,409)

Net loss (Statement 45)                                  $      (785)                  $   (34,409)
                                                         ═══════════                   ═══════════

Note: Prepared on the budgetary basis, which is modified accrual.




                                                 127
                                  City of Jacksonville, North Carolina                       Schedule 49
                                        Water Capital Projects Fund
                                   Schedule of Revenues and Expenditures--
                                       Budget and Actual (Non-GAAP)
                         From Inception and for the Fiscal Year Ended June 30, 2000



                                                                             Actual
                                                            ────────────────────────────────────────
                                              Project
                                           Authorization    Prior Years    Current Year    Total to Date
                                           ────────────    ────────────    ────────────    ────────────
Revenues:
  Contributions                           $    163,041     $     48,000    $    115,041    $    163,041
                                          ────────────     ────────────    ────────────    ────────────
    Total revenues                             163,041           48,000         115,041         163,041
                                          ────────────     ────────────    ────────────    ────────────

Expenditures:
  New wells                                   1,570,000      1,185,185                        1,185,185
  Jacksonville High School                       48,000         36,087                           36,087
  Water tank painting                           595,200        418,500                          418,500
  Regional water supply study                   190,041         69,327           88,263         157,590
  Water line replacements                     1,021,104        321,979                          321,979
  Lejeune Boulevard water                       148,500
  Perimeter property water lines                166,000         30,440          31,001          61,441
  Fire Protection water improvements             75,000
  Million Gallon Water Tank                     250,000
                                           ────────────    ────────────    ────────────    ────────────
    Total expenditures                        4,063,845       2,061,518         119,264       2,180,782
                                           ────────────    ────────────    ────────────    ────────────

  Revenues (under) expenditures              (3,900,804)     (2,013,518)         (4,223)     (2,017,741)
                                           ────────────    ────────────    ────────────    ────────────

Other financing sources (uses):
 Proceeds from borrowing                         49,000          49,000                          49,000
  Operating transfers in--
    From Water and Sewer Fund                 3,900,804       3,525,804         375,000       3,900,804
  Operating transfers (out)--
    To Water and Sewer Fund                     (49,000)        (49,000)                        (49,000)
                                           ────────────    ────────────    ────────────    ────────────
    Total other financing sources             3,900,804       3,525,804         375,000       3,900,804
                                           ────────────    ────────────    ────────────    ────────────

Excess of revenues and other
  sources over expenditures
  and other uses                          $          0     $ 1,512,286     $    370,777    $ 1,883,063
                                          ════════════     ════════════    ════════════    ════════════




                                                   128
                                   City of Jacksonville, North Carolina                              Schedule 50
                                        Sewer Capital Projects Fund
                                   Schedule of Revenues and Expenditures--
                                       Budget and Actual (Non-GAAP)
                         From Inception and for the Fiscal Year Ended June 30, 2000


                                                                                 Actual
                                                                ────────────────────────────────────────
                                              Project
                                           Authorization     Prior Years      Current Year      Total to Date
                                           ────────────     ────────────      ────────────      ────────────
Revenues:
  Investment earnings                     $   1,386,389     $  1,386,389      $                 $  1,386,389
  FEMA                                          865,608          865,608                             865,608
  State clean water bond grant                  748,669           10,366             109,775         120,141
  Contribution                                  103,000          103,000                             103,000
  Miscellaneous revenue                         115,878          115,878                             115,878
  Land application charges                   12,550,014       12,451,519                          12,451,519
  State grant-$706,580                          706,580          706,580                             706,580
                                           ────────────     ────────────      ────────────      ────────────
    Total revenues                           16,476,138       15,639,340           109,775        15,749,115
                                           ────────────     ────────────      ────────────      ────────────

Expenditures:
  New wastewater treatment                    50,827,182        50,236,947          319,480         50,556,427
  Sewer line replacements                      2,101,708           371,329                             371,329
  Perimeter property sewer                       918,000           476,730             9,103           485,833
  Utilities operation center                   2,014,654            10,870                              10,870
  Jacksonville High/Middle
    School sewer                                 78,000              74,394                            74,394
  Wilson Bay Restoration                        798,014              61,821         129,562           191,383
  Sunset/Country Club Annex                   1,720,906             119,276          94,142           213,418
  Jacksonville Business Park                    166,260
                                           ────────────     ────────────      ────────────      ────────────
    Total expenditures                       58,624,724       51,351,367           552,287        51,903,654
                                           ────────────     ────────────      ────────────      ────────────
    Revenues (under) expenditures           (42,148,586)     (35,712,027)         (442,512)      (36,154,539)
                                           ────────────     ────────────      ────────────      ────────────

Other financing sources (uses):
  Proceeds from borrowing
    N.C. water pollution control
      revolving loan program -federal         12,495,000         12,495,000                         12,495,000
    N.C. water pollution control
      revolving loan match - State             2,505,000         2,505,000                           2,505,000
    State revolving loan-$2,836,415            2,836,415         2,836,415                           2,836,415
    State revolving loan-$3,000,000            3,000,000         3,000,000                           3,000,000
    State bond loan-$5,000,000                 5,000,000         5,000,000                           5,000,000
    Installment purchases                     10,451,000         8,451,000                           8,451,000
  Operating transfers in--
    From Water and Sewer Fund                 13,568,006        11,711,383           310,717        12,022,100
    From General Fund                            582,324           582,324                             582,324
  Operating transfers (out)--
    To W/S Capital Reserve Fund               (1,370,034)       (1,390,034)                         (1,370,034)
    To Water and Sewer Fund                   (7,833,084)       (5,897,737)       (1,935,346)       (7,833,083)
    To General Fund                             (482,324)         (482,324)                           (482,324)
  Residual equity transfers in--
    From W/S Capital Reserve Fund           1,196,283          1,082,000             114,283       1,196,283
    From General Fund                         200,000            200,000                             200,000
                                          ───────────       ────────────      ────────────      ────────────
    Total other financing sources (uses) 42,148,586           40,113,027        (1,510,346)       38,602,681
                                          ───────────       ────────────      ────────────      ────────────
Excess of revenues and other
  sources over (under) expenditures
  and other uses                        $           0       $ 4,401,000       $ (1,952,858)     $ 2,448,142
                                        ════════════        ════════════      ════════════      ════════════


 Note: The residual equity transfer, and operating transfers from the General Fund and the land
       application charges are reflected as an addition to local contributed capital in the
       Water/Sewer Fund; the operating transfers to the General Fund are reflected as a reduction
       to local contributed capital.




                                                    129
                                    City of Jacksonville, North Carolina                     Schedule 51
                                     Water/Sewer Capital Reserve Fund
                                  Schedule of Revenues and Expenditures--
                                      Budget and Actual (Non-GAAP)
                         From Inception and for the Fiscal Year Ended June 30, 2000



                                                                                Actual
                                                              ──────────────────────────────────────────
                                                 Project
                                              Authorization    Prior Years    Current Year    Total to Date
                                              ────────────    ────────────    ────────────     ────────────
Revenues:
  Interest on investments                    $    419,591     $    406,334    $      9,906     $    416,240
                                             ────────────     ────────────    ────────────     ────────────
    Total revenues                                419,591          406,334           9,906          416,240
                                             ────────────     ────────────    ────────────     ────────────

Expenditures:
  Water supply and distribution                     43,497
                                              ────────────    ────────────    ────────────     ────────────
    Total expenditures                              43,497
                                              ────────────    ────────────    ────────────     ────────────

    Revenues over (under) expenditures             376,094         406,334           9,906          416,240
                                              ────────────    ────────────    ────────────     ────────────

Other financing sources (uses):
  Operating transfers in--
    From Water and Sewer Fund                      881,931         881,931                          881,931
    From Water Capital Projects                     12,757          12,756                           12,756
    From Sewer Capital Projects                  1,417,301       1,417,301                        1,417,301
    Residual Equity transfers (out)--
      To Water Capital Projects                   (239,000)       (239,000)                        (239,000)
      To Sewer Capital Projects                 (1,249,083)     (1,134,800)       (114,283)      (1,249,083)
      To Water and Sewer Fund                     (500,000)                       (500,000)        (500,000)
      To General Capital Reserve Fund             (700,000)       (700,000)                        (700,000)
                                              ────────────    ────────────    ────────────     ────────────
    Total other financing sources (uses)          (376,094)        238,188        (614,283)        (376,095)
                                              ────────────    ────────────    ────────────     ────────────
Excess of revenues and other
  sources over (under) expenditures
  and other uses                             $          0     $    644,522    $   (604,377)    $     40,145
                                             ════════════     ════════════    ════════════     ════════════




                                                  130
                Internal Service Funds

The Internal Service Funds are used to account for services
provided to other user departments.

Individual Fund Descriptions:
Fleet Maintenance Internal Service Fund - accounts for fleet
 management operations provided to City departments.
City Hall Maintenance Internal Service Fund - accounts for
 building maintenance operations provided to City departments.
Management Information Systems Internal Service Fund - accounts
 for data processing operations provided to City departments.
Management Information Systems Capital Project Fund - accounts
 for funds used in obtaining new hardware and software for data
 processing.




                                131
                                   City of Jacksonville, North Carolina                          Statement 52
                                          Internal Service Funds
                                          Combining Balance Sheet
                                               June 30, 2000
                                 With Comparative Totals for June 30, 1999


                                                                  Management                      Totals
                                       Fleet       City Hall     Information         June 30,          June 30,
                                    Maintenance   Maintenance      Systems             2000              1999
                                     ─────────    ──────────      ───────────        ──────────        ──────────
Assets
Current Assets:
  Cash and Cash Equivalents         $ 115,298     $     86,424   $    148,217    $    349,939        $   378,200
  Accounts receivable (net)                                                                                  170
  Due from other funds                   1,252             250             751        2,253                2,024
  Inventories                           59,282                                       59,282               51,816
  Prepaid items                                                          150            150                   30
                                     ─────────    ──────────      ──────────     ──────────           ──────────
  Total current assets                 175,832        86,674         149,118        411,624              432,240
                                     ─────────    ──────────      ──────────     ──────────           ──────────
Fixed Assets:
  Fixed assets (net)                  193,453            109         348,317        541,879             707,397
                                    ─────────     ──────────      ──────────     ──────────          ──────────
    Total Assets                    $ 369,285     $   86,783      $ 497,435      $ 953,503           $1,139,637
                                    ═════════     ══════════      ══════════     ══════════          ══════════

Liabilities and Fund Equity
Current Liabilities:
  Accounts payable and
    accrued liabilities             $    10,762   $        879   $      15,441   $     27,082            $    26,189
  Current portion of
    long-term debt                       4,463                                        4,463               75,344
                                     ─────────    ──────────         ─────────   ──────────           ──────────
  Total Current Liabilities             15,225           879            15,441       31,545              101,533
                                     ─────────    ──────────         ─────────   ──────────           ──────────


Noncurrent Liabilities:
  Compensated absences payable            7,173          1,506           8,556          17,235                24,747
  Noncurrent portion of
    long-term debt                      16,437                                       16,437
                                     ─────────    ──────────         ─────────   ──────────           ──────────
  Total Noncurrent Liabilities          23,610         1,506             8,556       33,672               24,747
                                     ─────────    ──────────         ─────────   ──────────           ──────────
    Total Liabilities                   38,835         2,385            23,997       65,217              126,280
                                     ─────────    ──────────         ─────────   ──────────           ──────────
Fund Equity
Contributed Capital:
  Local contributed capital             316,700                          1,671      318,371                  318,371
  State contributed capital                                              1,480        1,480
                                    ─────────     ──────────         ─────────   ──────────          ──────────
    Total Contributed Capital         316,700                            3,151      319,851             318,371
Retained earnings                      13,750         84,398           470,287      568,435             694,986
                                    ─────────     ──────────         ─────────   ──────────          ──────────
    Total Fund Equity                 330,450         84,398           473,438      888,286           1,013,357
                                    ─────────     ──────────         ─────────   ──────────          ──────────
Total Liabilities and Fund Equity   $ 369,285     $   86,783         $ 497,435   $ 953,503           $1,139,637
                                    ═════════     ══════════         ═════════   ══════════          ══════════




                                                  132
                                       City of Jacksonville, North Carolina             Statement 53
                                               Internal Service Funds
                      Combining Statement of Revenues, Expenses and Changes in Retained Earnings
                                      For the Fiscal Year Ended June 30, 2000
                           With Comparative Totals for the Fiscal Year Ended June 30, 1999



                                                                     Management             Totals
                                          Fleet        City Hall    Information    June 30,      June 30,
                                       Maintenance    Maintenance     Systems        2000          1999
                                        ─────────     ───────────   ──────────    ──────────     ──────────
Operating revenues:
  Charges to other funds               $ 695,760      $    85,775   $  579,631    $1,361,166    $1,224,986
  Miscellaneous revenue                   24,225                         4,451        28,676        23,209
                                       ─────────      ───────────   ──────────    ──────────    ──────────
    Total operating revenues             719,985           85,775      584,082     1,389,842     1,248,195
                                       ─────────      ───────────   ──────────    ──────────    ──────────
Operating expenses:
  Operations                              695,533          69,549      474,252     1,239,334     1,065,271
  Depreciation                             28,028             218      269,126       297,372       267,062
                                        ─────────     ───────────   ──────────    ──────────    ──────────
    Total operating expenses              723,561          69,767      743,378     1,536,706     1,332,333
                                        ─────────     ───────────   ──────────    ──────────    ──────────
      Operating income (loss)              (3,576)         16,008     (159,296)     (146,864)      (84,138)
                                        ─────────     ───────────   ──────────    ──────────    ──────────
Nonoperating revenues (expenses):
  Investment earnings                      7,422            4,307        9,351        21,080        17,807
  Gain(loss) on sale of fixed assets                                       278           278         1,345
  Interest on long-term debt                 (551)                        (494)       (1,045)       (6,154)
                                        ─────────     ───────────   ──────────    ──────────    ──────────
    Total nonoperating revenues             6,871           4,307        9,135        20,313        12,998
                                        ─────────     ───────────   ──────────    ──────────    ──────────
Net income (loss)                           3,295          20,315     (150,161)     (126,551)      (71,140)
Retained earnings:
  Beginning of year, July 1               10,455           64,083      620,448       694,986       766,126
                                       ─────────      ───────────   ──────────    ──────────    ──────────
  End of year, June 30                 $ 13,750       $    84,398   $ 470,287     $ 568,435     $ 694,986
                                       ═════════      ═══════════   ══════════    ══════════    ══════════




                                                     133
                                      City of Jacksonville, North Carolina                Statement 54
                                            Internal Service Funds
                                        Combining Statement of Cash Flows
                                     For the Fiscal Year Ended June 30, 2000
                          With Comparative Totals for the Fiscal Year Ended June 30, 1999



                                                                         Management                 Totals
                                               Fleet       City Hall    Information     June 30,        June 30,
                                            Maintenance   Maintenance     Systems        2000             1999
                                            ─────────     ─────────      ─────────    ───────────    ────────────
Cash flows from operating activities:
  Cash receipts from quasi-external
    operating transactions                  $ 720,155     $   85,775    $ 584,082     $ 1,390,012   $ 1,250,621
  Cash payments for quasi-external
    operating transactions                   (708,895)      (72,017)      (472,855)    (1,253,767) (1,074,197)
                                            ─────────     ─────────      ─────────    ─────────── ───────────
    Net cash provided (used) for
      operating activities                     11,260        13,758        111,227        136,245        176,424
                                            ─────────     ─────────      ─────────    ───────────    ───────────

Cash flows from capital and related
  financing activities:
  Principal paid on long-term debt             (2,600)                    (75,320)       (77,920)       (96,038)
  Interest paid on long-term debt                (551)                       (494)        (1,045)        (6,154)
  Contributed capital                                                       1,480          1,480
  Purchase of capital assets                 (22,690)                    (109,189)      (131,879)      (138,683)
  Proceeds from sale of assets                                                278            278            224
  Proceeds from borrowing                     23,500                                      23,500
  Interfund transfers                                                                                     (2,024)
                                            ─────────     ─────────      ─────────    ───────────    ───────────
    Net cash (used) for capital and
      related financing activities             (2,341)                    (183,245)      (185,586)   (242,675)
                                            ─────────     ─────────      ─────────    ─────────── ───────────

Cash flows from investing activities:
  Interest earned on investments                7,422         4,307          9,351         21,080         17,807
                                            ─────────     ─────────      ─────────    ───────────    ───────────
    Net cash provided by
      investing activities                      7,422         4,307          9,351         21,080         17,807
                                            ─────────     ─────────      ─────────    ───────────    ───────────

  Net increase (decrease) in cash and
    cash equivalents                           16,341        18,065        (62,667)       (28,261)    (48,444)
  Cash and cash equivalents, July 1            98,957        68,359        210,884        378,200     426,644
                                            ─────────     ─────────      ─────────    ─────────── ───────────
  Cash and cash equivalents, June 30        $ 115,298     $ 86,424       $ 148,217    $   349,939 $   378,200
                                            ═════════     ═════════      ═════════    ═══════════ ═══════════

Reconciliation of Operating Income (Loss)
to Net Cash Provided (Used) for Operating
Activities:

Operating Income (Loss)                     $ (3,576)     $ 16,008      $(159,296)    $ (146,864) $   (84,138)
                                            ─────────     ─────────     ─────────     ─────────── ───────────
Adjustments to reconcile operating
income to net cash provided (used)
for operating activities:
Depreciation                                  28,028             218      269,126        297,372        267,062
Change in assets and liabilities:
  Increase (Decrease) accrued vacation         (6,565)          (240)        (707)         (7,512)        114
  (Increase) Decrease prepaid expenses                                       (120)           (120)        (30)
  Increase (Decrease) accounts payable            635         (2,162)       2,423             896      (1,918)
  (Increase) Decrease in inventories           (7,467)                                     (7,467)     (5,356)
  Increase (Decrease) due to other funds           35            (66)        (199)           (230)     (1,735)
  (Increase) Decrease accounts receivable         170                                         170       2,425
                                            ─────────     ─────────      ─────────    ─────────── ───────────
    Total adjustments                          14,836        (2,250)       270,523        283,109     260,562
                                            ─────────     ─────────      ─────────    ─────────── ───────────
Net cash provided (used) for operating
  activities                                $ 11,260      $ 13,758      $ 111,227     $   136,245   $   176,424
                                            ═════════     ═════════     ═════════     ═══════════   ═══════════




                                                   134
                                       City of Jacksonville, North Carolina              Schedule 55
                                      Fleet Maintenance Internal Service Fund
                                      Schedule of Revenues and Expenditures--
                                           Budget and Actual (Non-GAAP)
                                      For the Fiscal Year Ended June 30, 2000
                      With Comparative Actual Amounts for the Fiscal Year Ended June 30, 1999




                                                                     2000                          1999
                                                ───────────────────────────────────────        ───────────
                                                                             Variance
                                                                             Favorable
                                                  Budget         Actual    (Unfavorable)          Actual
                                                ───────────   ───────────   ───────────        ───────────
Revenues:
  Charges for services                          $     794,329    $   695,760    $   (98,569)   $   588,720
  Gain (loss) on sale of fixed assets                                                                  673
  Other operating revenues                                            24,225         24,225         20,246
  Investment earnings                                                  7,422          7,422          1,631
                                                ───────────      ───────────    ───────────    ───────────
    Total revenues                                  794,329          727,407        (66,922)       611,270
                                                ═══════════      ═══════════    ═══════════    ═══════════

Expenditures:
  Salaries and employee benefits                                     217,270                       214,018
  Other departmental expenditures                                     13,575                        24,428
  Fuel                                                                 4,981                         3,794
  Automotive maintenance and repair                                  437,402                       317,255
  Contracted Services                                                 19,233                        10,309
  Utilities                                                            3,072                         3,317
                                                ───────────      ───────────    ───────────    ───────────
    Total                                           789,007          695,533         93,474        573,121
                                                ───────────      ───────────    ───────────    ───────────
Budgetary appropriations:
  Proceeds from borrowing
    installment purchase                              (23,500)       (23,500)
  Interest paid                                         1,079            551            528
  Debt principal                                        4,243          2,600          1,643
  Increase (decrease) in inventory                                     7,467         (7,467)         5,356
  (Increase) decrease in accrued vacation pay                          6,565         (6,565)        (4,066)
  Capital outlay                                     23,500           22,690            810          9,424
                                                ───────────      ───────────    ───────────    ───────────
  Total budgetary appropriations                      5,322           16,373        (11,051)        10,714
                                                ───────────      ───────────    ───────────    ───────────
Total expenditures                              $   794,329      $   711,906    $    82,423    $   583,835
                                                ═══════════      ═══════════    ═══════════    ═══════════

Reconciliation of modified accrual basis to full accrual basis:

Total revenues                                                   $   727,407                   $   611,270
Total expenditures                                                   711,906                       583,835
                                                                 ───────────                   ───────────
Excess of revenues over expenditures                                  15,501                        27,435

Budgetary appropriations (above):
Payment of debt principal                                              2,600
Proceeds from borrowing                                              (23,500)
Increase (decrease) in inventory                                       7,467                         5,356
(Increase) decrease in accrued vacation pay                            6,565                        (4,066)
Capital outlay                                                        22,690                         9,424
                                                                 ───────────                   ───────────
Total budgetary appropriations                                        15,822                        10,714

Depreciation   (Statement 53)                                        (28,028)                      (30,924)
                                                                 ───────────                   ───────────
Net income (Statement 53)                                        $     3,295                   $     7,225
                                                                 ═══════════                   ═══════════

Note: Prepared on the budgetary basis, which is modified accrual.




                                                135
                                       City of Jacksonville, North Carolina              Schedule 56
                                    City Hall Maintenance Internal Service Fund
                                        Schedule of Revenues and Expenditures--
                                           Budget and Actual (Non-GAAP)
                                      For the Fiscal Year Ended June 30, 2000
                      With Comparative Actual Amounts for the Fiscal Year Ended June 30, 1999




                                                                     2000                        1999
                                                ───────────────────────────────────────      ───────────
                                                                             Variance
                                                                             Favorable
                                                    Budget         Actual (Unfavorable)           Actual
                                                ───────────   ───────────   ───────────      ───────────
Revenues:
  Charges for services                          $     85,775   $    85,775    $              $    99,936
  Investment earnings                                                4,307          4,307          3,125
                                                ───────────    ───────────    ───────────    ───────────
    Total revenues                                   85,775         90,082          4,307        103,061
                                                ═══════════    ═══════════    ═══════════    ═══════════

Expenditures:
  Salaries and employee benefits                                    27,646                        26,617
  Utilities                                                         28,570                        26,305
  Maintenance and repair                                             3,119                        27,241
  Contracted services                                                  775                         1,380
  Other departmental expenditures                                    9,439                         8,808
                                                ───────────    ───────────    ───────────    ───────────
    Total                                            87,198         69,549         17,649         90,351
                                                ───────────    ───────────    ───────────    ───────────
Budgetary appropriations:
  (Increase) decrease in accrued
    vacation pay                                                       240           (240)            11
  Appropriated retained earnings                     (1,423)                       (1,423)
                                                ───────────    ───────────    ───────────    ───────────
  Total budgetary appropriations                     (1,423)           240         (1,663)            11
                                                ───────────    ───────────    ───────────    ───────────
Total expenditures                              $    85,775    $    69,789    $    15,986    $    90,362
                                                ═══════════    ═══════════    ═══════════    ═══════════

Reconciliation of modified accrual basis to full accrual basis:

Total revenues                                                 $    90,082                   $   103,061
Total expenditures                                                  69,789                        90,362
                                                               ───────────                   ───────────
Excess of revenues over expenditures                                20,293                        12,699

Budgetary appropriations (above):
(Increase) decrease in accrued vacation pay                            240                            11
                                                               ───────────                   ───────────
Total budgetary appropriations                                         240                            11

Depreciation   (Statement 53)                                         (218)                         (218)
                                                               ───────────                   ───────────
Net income (Statement 53)                                      $    20,315                   $    12,492
                                                               ═══════════                   ═══════════

Note: Prepared on the budgetary basis, which is modified accrual.




                                                136
                                         City of Jacksonville, North Carolina              Schedule 57
                                 Management Information Systems Internal Service Fund
                                        Schedule of Revenues and Expenditures--
                                           Budget and Actual (Non-GAAP)
                                      For the Fiscal Year Ended June 30, 2000
                        With Comparative Actual Amounts for the Fiscal Year Ended June 30, 1999




                                                                     2000                          1999
                                                ───────────────────────────────────────         ───────────
                                                                             Variance
                                                                             Favorable
                                                    Budget         Actual (Unfavorable)            Actual
                                                ───────────   ───────────   ───────────        ────────────
Revenues:
  Charges for services                          $     579,631    $   579,631    $              $    536,330
  Gain (loss) on sale of fixed assets                                    278           278              672
  Other operating revenues                                             4,451         4,451            2,963
  Investment earnings                                                  9,351         9,351           13,051
                                                ───────────      ───────────    ──────────      ───────────
    Total revenues                                  579,631          593,711        14,080          553,016
                                                ═══════════      ═══════════    ══════════      ═══════════

Expenditures:
  Salaries and employee benefits                                     181,098                        203,392
  Fuel                                                                    81                             20
  Maintenance and repair                                              12,060                         11,842
  Contracted services                                                 20,747                         13,310
  Other departmental expenditures                                    260,266                        173,235
                                                ───────────      ───────────    ───────────     ───────────
    Total                                           534,832          474,252         60,580         401,799
                                                ───────────      ───────────    ───────────     ───────────
Budgetary appropriations:
  Interest paid                                         5,386            494          4,892          6,154
  Debt principal                                       91,414         75,320         16,094         96,038
  Proceeds from borrowing
    installment purchase                              (89,000)                      (89,000)
  (Increase) decrease in accrued
    vacation pay                                                         707           (707)         3,941
  Increase (decrease) in prepaid expense                                 120           (120)            30
  Appropriated retained earnings                   (117,803)                        117,803
  Capital outlay                                    154,802           69,585         85,217         93,168
                                                ───────────      ───────────    ───────────    ───────────
  Total budgetary appropriations                     44,799          146,226       (101,427)       199,331
                                                ───────────      ───────────    ───────────    ───────────
Total expenditures                              $   579,631      $   620,478    $   (40,847)   $   601,130
                                                ═══════════      ═══════════    ═══════════    ═══════════

Reconciliation of modified accrual basis to full accrual basis:

Total revenues                                                   $   593,711                   $    553,016
Total expenditures                                                   620,478                        601,130
                                                                 ───────────                    ───────────
Excess of revenues (under)expenditures                               (26,767)                       (48,114)

Budgetary appropriations (above):
Payment of debt principal                                             75,320                         96,038
(Increase) decrease in accrued vacation pay                              707                          3,941
Increase (decrease) in prepaid expense                                   120                             30
Capital outlay                                                        69,585                         93,168
                                                                 ───────────                    ───────────
Total budgetary appropriations                                       145,732                        193,177

Depreciation   (Statement 53)                                       (269,126)                     (235,920)
                                                                 ───────────                   ───────────
Net (loss) (Statement 53)                                        $ (150,161)                   $   (90,857)
                                                                 ═══════════                   ═══════════

Note: Prepared on the budgetary basis, which is modified accrual.




                                                137
                                    City of Jacksonville, North Carolina                       Schedule 58
                            Management Information Systems Capital Projects Fund
                                   Schedule of Revenues, Expenditures and
                           Changes in Fund Balances - Budget and Actual - (Non-GAAP)
                          From Inception and for the Fiscal Year Ended June 30, 2000



                                                                              Actual
                                                             ────────────────────────────────────────
                                            Project
                                         Authorization    Prior Years     Current Year     Total to Date
                                         ────────────    ────────────     ────────────      ────────────
Revenues:
  Investment earnings                   $      45,597    $       41,604   $       3,172    $      44,776
  Meta data grant                               1,480                             1,480            1,480
                                         ────────────    ────────────      ────────────     ────────────
    Total revenues                             47,077          41,604             4,652           46,256
                                         ────────────    ────────────      ────────────     ────────────


Expenditures:
  Capital outlay:
    Computer upgrade                                        1,020,886            39,579        1,060,465
                                         ────────────    ────────────      ────────────     ────────────
    Total expenditures                      1,102,576       1,020,886            39,579        1,060,465
                                         ────────────    ────────────      ────────────     ────────────

    Revenues (under) expenditures          (1,055,499)       (979,282)          (34,927)      (1,014,209)
                                         ────────────    ────────────      ────────────     ────────────

Other financing sources:
  Proceeds from borrowing                    444,842            444,842                           444,842
  Operating transfers in--
    From Management Information
      Systems Fund                            610,657         610,657                            610,657
                                         ────────────    ────────────      ────────────     ────────────
    Total other financing sources           1,055,499       1,055,499                          1,055,499
                                         ────────────    ────────────      ────────────     ────────────
Excess of revenues and other
  sources over (under) expenditures
  and other uses                        $          0     $     76,217     $    (34,927)    $     41,290
                                        ════════════     ════════════     ════════════     ════════════




                                                138
                         Trust Funds

Trust Funds are used to account for assets held by the City in a trustee
capacity.
Individual Fund Descriptions:

Nonexpendable Trust Fund
 Revolving Loan Fund - accounts for the North Carolina
  Housing Finance Agency's Rental Rehabilitation Revolving
  Loan Fund and the Community Development Loan Program.
Pension Trust Fund
 Special Separation Allowance - accounts for the
  accumulation of resources for special separation
  benefit payments to qualified law enforcement
  officers.




                               139
                                  City of Jacksonville, North Carolina                       Statement 59
                                              Trust Funds
                                         Combining Balance Sheet
                                              June 30, 2000
                                With Comparative Totals for June 30, 1999



                                        Nonexpendable     Pension
                                           Trust           Trust               Totals
                                       ───────────── ────────────      ──────────────────────────
                                                        Special
                                         Revolving     Separation        June 30,      June 30,
                                         Loan Fund      Allowance          2000          1999
                                       ────────────   ────────────     ────────────   ────────────
Assets
  Cash and investments                $    140,736      $   251,966    $    392,702   $   416,796
  Accounts receivable (net)                    860                              860         1,131
  Notes receivable                         930,205                          930,205     1,003,898
  Due from other funds                                        97,031         97,031        73,330
                                      ────────────      ────────────   ────────────   ───────────
  Total Assets                        $ 1,071,801       $    348,997   $ 1,420,798    $ 1,495,155
                                      ════════════      ════════════   ════════════   ═══════════

Liabilities and Fund Balances
Liabilities:
  Accounts payable                    $     952,197     $     2,508    $    954,705   $   986,207
  Due to other funds                          1,490                           1,490         1,420
                                       ────────────     ────────────   ────────────   ───────────
  Total Liabilities                         953,687            2,508        956,195       987,627
                                       ────────────     ────────────   ────────────   ───────────
Fund Balances:
  Reserved by Grantor                      118,114                          118,114       136,216
  Reserved for employees'
    pension benefit                                          346,489        346,489       371,312
                                      ────────────      ────────────   ────────────   ───────────
  Total Fund Balances                      118,114           346,489        464,603       507,528
                                      ────────────      ────────────   ────────────   ───────────
Total Liabilities and Fund Balances   $ 1,071,801       $    348,997   $ 1,420,798    $ 1,495,155
                                      ════════════      ════════════   ════════════   ═══════════




                                                  140
                               City of Jacksonville, North Carolina               Statement 60
                                    Nonexpendable Trust Fund
                           Statement of Revenues, Expenses and Changes
                                         in Fund Balances
                             For the Fiscal Year Ended June 30, 2000
                  With Comparative Totals for the Fiscal Year Ended June 30, 1999



                                             2000            1999
                                         Nonexpendable   Nonexpendable
                                           Trust Fund      Trust Fund
                                         ────────────     ───────────
Operating revenues:
  Investment earnings                    $                $
                                         ────────────     ───────────
    Total operating revenues
                                         ────────────     ───────────
Operating expenses:

  Benefits
                                         ────────────     ───────────
    Total operating expenses
                                         ────────────     ───────────
      Operating (loss)
                                         ────────────     ───────────
Operating transfers:
  Operating transfers in--
    From General Fund
                                         ────────────     ───────────
    Total operating transfers
                                         ────────────     ───────────
Net income
Fund balances:
  Beginning of year, July 1                   136,216        147,092
  Residual equity transfer (out)              (18,102)       (10,876)
                                         ────────────    ───────────
  End of year, June 30                   $    118,114    $   136,216
                                         ════════════    ═══════════




                                               141
             General Fixed Assets
               Account Group

The General Fixed Assets Account Group accounts for fixed
assets other than those accounted for in the Proprietary and
and Nonexpendable Trust Funds.




                          142
                 City of Jacksonville, North Carolina               Schedule 61
     General Fixed Assets Account Group
              Comparative Schedules of General Fixed Assets
                               By Source
                        June 30, 2000 and 1999



                                                     2000          1999
                                                 ───────────   ───────────
General fixed assets:
  Land                                           $ 1,763,742   $ 1,763,742
  Buildings                                        9,026,370     8,903,789
  Equipment                                        3,276,374     2,818,141
  Heavy equipment                                    889,226       840,987
  Vehicles                                         6,890,482     5,682,979
  Weapons                                             49,387        48,615
  Improvements other than buildings                   13,485        13,485
  Construction in progress                         1,557,160       553,028
                                                 ───────────   ───────────
Total general fixed assets                       $23,466,226   $20,624,766
                                                 ═══════════   ═══════════
Investment in general fixed assets by source:
  General Fund                                   $15,853,857   $12,991,171
  Capital Project funds                            6,424,587     6,281,757
  Special Revenue Fund                               848,824       640,083
  Donations, court awards, etc.                      338,958       711,755
                                                 ───────────   ───────────
Total investment in general fixed assets         $23,466,226   $20,624,766
                                                 ═══════════   ═══════════




                                           143
                                         City of Jacksonville, North Carolina
                                          General Fixed Assets Account Group
                             Schedule of General Fixed Assets - By Function and Activity
                                                     June 30, 2000



                                                                              Heavy
                                      Land       Buildings     Equipment     Equipment      Vehicles
                                  ───────────   ───────────   ───────────   ───────────    ───────────
General government:
  Mayor and Council              $              $             $     5,134   $              $
  City Manager                                                      6,990
  Personnel                                                         3,661
  City Clerk                                                        4,475
  Finance                                                          89,113
  Planning                                                         91,508                         26,258
  Transportation                                                    9,602
  Other-Unclassified                1,120,692     1,830,307        88,956
                                  ───────────   ───────────   ───────────   ───────────    ───────────
    Total general government        1,120,692     1,830,307       299,439                       26,258
                                  ───────────   ───────────   ───────────   ───────────    ───────────
Public works:
  Inspections                                                      27,770                         95,275
  Public Works                                                      3,819                         12,191
  Engineering                                                      14,158                          7,958
  Maintenance                         38,503         16,907       113,202       109,775          243,174
  Streets Powell Bill                 67,500        106,441       157,769       508,208          672,179
  Streets Non-Powell Bill                            23,916        57,682        56,046
                                  ───────────   ───────────   ───────────   ───────────    ───────────
    Total public works                106,003       147,264       374,400       674,029      1,030,777
                                  ───────────   ───────────   ───────────   ───────────    ───────────
Public safety:
  Police                              22,500        508,669     1,784,328        8,885         2,482,418
  Animal Control                                     23,696         2,182
  Fire                                 27,000       722,696       587,377        23,804      1,998,388
                                  ───────────   ───────────   ───────────   ───────────    ───────────
    Total public safety                49,500     1,255,061     2,373,887        32,689      4,480,806
                                  ───────────   ───────────   ───────────   ───────────    ───────────
Environmental protection:
  Sanitation                                         49,879        69,391       182,508      1,320,425
                                  ───────────   ───────────   ───────────   ───────────    ───────────
Cultural and recreational:
  Recreation                          487,547     5,661,816       142,575                       19,366
                                  ───────────   ───────────   ───────────   ───────────    ───────────
Economic development:
  Economic Development                               82,043        16,682                       12,850
                                  ───────────   ───────────   ───────────   ───────────    ───────────
Construction in progress
                                  ───────────   ───────────   ───────────   ───────────    ───────────
    Total general fixed assets    $ 1,763,742   $ 9,026,370   $ 3,276,374   $   889,226    $ 6,890,482
                                  ═══════════   ═══════════   ═══════════   ═══════════    ═══════════




                                                    144
                                                                    Schedule 62




              Improvements other   Construction
  Weapons        than buildings    in Progress          Total
───────────      ───────────        ───────────       ───────────

$                $                 $              $     5,134
                                                        6,990
                                                        3,661
                                                        4,475
                                                       89,113
                                                      117,766
                                                        9,602
                                                    3,039,955
───────────      ───────────       ───────────    ───────────
                                                    3,276,696
───────────      ───────────       ───────────    ───────────

                                                      123,045
                                                       16,010
                                                       22,116
                                                      521,561
                                                    1,512,097
                                                      137,644
───────────      ───────────       ───────────    ───────────
                                                    2,332,473
───────────      ───────────       ───────────    ───────────

     49,387           13,485                        4,869,672
                                                       25,878
                                                    3,359,265
───────────      ───────────       ───────────    ───────────
     49,387           13,485                        8,254,815
───────────      ───────────       ───────────    ───────────

                                                    1,622,203
───────────      ───────────       ───────────    ───────────

                                                    6,311,304
───────────      ───────────       ───────────    ───────────

                                                      111,575
───────────      ───────────       ───────────    ───────────
                                     1,557,160      1,557,160
───────────      ───────────       ───────────    ───────────
$    49,387      $    13,485       $ 1,557,160    $23,466,226
═══════════      ═══════════       ═══════════    ═══════════




                                           145
                                City of Jacksonville, North Carolina                          Schedule 63
                                 General Fixed Assets Account Group
               Schedule of Changes in General Fixed Assets - By Function and Activity
                               For the Fiscal Year Ended June 30, 2000


                                 General Fixed                                                 General Fixed
                                    Assets                                                         Assets
                                     1999         Additions       Deductions    Transfers           2000
                                  ───────────    ───────────     ───────────   ───────────      ───────────
General Government:
  Mayor and Council              $      5,134    $               $             $                $     5,134
  City Manager                          9,807                                       (2,817)           6,990
  Personnel                             2,038            1,623                                        3,661
  City Clerk                            6,153                         1,678                           4,475
  Finance                              66,502         21,765          1,971          2,817           89,113
  Planning                            115,718          2,048                                        117,766
  Transportation                        7,727          1,875                                          9,602
  Other-Unclassified                3,026,737         13,218                                      3,039,955
                                  ───────────    ───────────     ───────────   ───────────      ───────────
    Total General Government        3,239,816         40,529           3,649                      3,276,696
                                  ───────────    ───────────     ───────────   ───────────      ───────────
Public Works:
  Inspections                         109,445           31,510        17,910                        123,045
  Public Works                         16,010                                                        16,010
  Engineering                          28,387                          6,271                         22,116
  Maintenance                         435,375        106,729          20,543                        521,561
  Streets Powell Bill               1,467,286         67,738          22,927                      1,512,097
  Streets Non-Powell Bill             125,074         15,448           2,878                        137,644
                                  ───────────    ───────────     ───────────   ───────────      ───────────
    Total Public Works              2,181,577        221,425          70,529                      2,332,473
                                  ───────────    ───────────     ───────────   ───────────      ───────────
Public Safety:
  Police                            3,867,562        1,185,886       170,519       (13,257)       4,869,672
  Animal Control                       44,308                         18,430                         25,878
  Fire                              2,881,317        235,986          31,343       273,305        3,359,265
                                  ───────────    ───────────     ───────────   ───────────      ───────────
    Total Public Safety             6,793,187      1,421,872         220,292       260,048        8,254,815
                                  ───────────    ───────────     ───────────   ───────────      ───────────
Environmental Protection:
  Sanitation                        1,562,113        135,463          75,373                      1,622,203
                                  ───────────    ───────────     ───────────   ───────────      ───────────
Cultural and Recreational:
  Recreation                        6,184,040        131,859           4,595                      6,311,304
                                  ───────────    ───────────     ───────────   ───────────      ───────────
Economic Development:
  Economic Development                111,005          3,565           2,995                        111,575
                                  ───────────    ───────────     ───────────   ───────────      ───────────
Construction in progress              553,028      1,264,180                      (260,048)       1,557,160
                                  ───────────    ───────────     ───────────   ───────────      ───────────
    Total general fixed assets    $20,624,766    $ 3,218,893     $   377,433   $         0      $23,466,226
                                  ═══════════    ═══════════     ═══════════   ═══════════      ═══════════




                                                 146
             Additional Financial Data



This section contains the following:

 Additional information on property taxes, interfund
 transfers, and cash and investments.


  Schedule of Cash and Investment Balances

  Schedule of Ad Valorem Taxes Receivable

  Analysis of Current Tax Levy




                                147
                           City of Jacksonville, North Carolina                  Schedule 64
                         Schedule of Cash and Investment Balances
                                     June 30, 2000
                                                 Amounts
                                               Presented on            Cost            Fair
                                                Statements             Value           Value
Cash:
  On hand                                      $       3,816    $        3,816   $       3,816
  In time deposits
    Certificates of deposit                           52,000            52,000           52,000 (a)
  NOW, SuperNOW, and money market                  2,343,101         2,343,101        2,343,101
    Total cash                                     2,398,917         2,398,917        2,398,917

Other Investments:
  North Carolina Capital Management Trust     18,987,270            18,987,270   18,987,270
  United States Treasury Bonds
      (Zero Coupon)                            1,425,267               298,062       1,425,267
    [Held by bank's trust department
    in book entry form]
  U.S. Government Agencies (GNMA)
    [Registered in the City's name and held
    by the City's trust department in the
    City's name]                                   4,795                 4,795           4,795
  Centric Cap. Corp. Commercial Paper
    [Held by City's agent in the City's name] 4,000,370             4,000,370        4,045,000
  Montauk Funding Commercial Paper
    [Held by City's agent in the City's name] 4,000,480              4,000,480        4,026,000
  Total other investments                          28,418,182       27,290,977       28,488,332
  Total cash and investments                   $30,817,099      $29,689,894      $30,887,249
Distribution by Funds:
  General:
    Unrestricted                                                $ 9,435,305
    Restricted                                                      701,797      $10,137,102
  Special Revenue                                                                       367,455
  Capital Projects:
    Unrestricted                                                    8,943,121
    Restricted                                                      2,751,299        11,694,420
  Internal Service                                                                     349,939
  Trust                                                                                392,702
  Enterprise                                                                          7,875,481
          Total                                                                  $30,817,099

(a) Note: $52,000 Certificate of Deposit is a compensating balance requirement and is
          non-interest bearing.




                                         148
                           City of Jacksonville, North Carolina                          Schedule 65
                          Schedule of Ad Valorem Taxes Receivable
                                      June 30, 2000


                             Uncollected                                             Uncollected
                               Balance                                Collections      Balance
Fiscal Year                 June 30, 1999            Additions        and Credits   June 30, 2000
1999-2000                       $               $    8,289,972    $    8,027,020    $     262,952
1998-99                             234,993                              152,335           82,658
1997-98                              67,242                                9,435           57,807
1996-97                              38,860                                2,678           36,182
1995-96                              34,200                                1,961           32,239
1994-95                              38,748                                1,489           37,259
1993-94                              30,982                                  594           30,388
1992-93                              10,914                                  553           10,361
1991-92                              14,486                                  614           13,872
1990-91                              18,258                                  356           17,902
1989-90                              11,561                               11,561
                                $   500,244         $ 8,289,972       $ 8,208,596    $    581,620

Less allowance for uncollected
  ad valorem taxes receivable                                                              30,511
Ad valorem taxes receivable - net                                                    $    551,109
Reconcilement with revenues:
Taxes - ad valorem - general fund                   $ 8,161,336
Penalties and interest                                   43,526       $ 8,204,862
Reconciling items:
  Discoveries and abatements - Net                                                         24,644
  Taxes Written Off                                                                        11,334
  Interest collected                                                                      (32,244)
Total collections and credits                                                        $ 8,208,596




                                              149
                             City of Jacksonville, North Carolina                     Schedule 66
                                  Analysis of Current Tax Levy
                             For the Fiscal Year Ended June 30, 2000



                                                                                Total Levy

                                                                          Property
                                           City-Wide                      Excluding
                                                                         Registered     Registered
                              Property                      Total           Motor          Motor
                             Valuation           Rate        Levy         Vehicles       Vehicles


Original Levy:
  Property taxed at
    current year’s rate    $ 1,235,868,700      0.623   $   7,699,462    $ 7,026,405    $       673,057
  Registered motor
    vehicles taxed at
    prior year’s rate            64,431,021     0.623         401,405                           401,405
 Penalties                                                     10,809         10,809
                             1,300,299,721                  8,111,676      7,037,214         1,074,462

Discoveries:
  Current year taxes             42,709,358     0.623        266,080         252,184             13,896
  Prior year taxes                                            43,649          37,352              6,297
  Penalties                                                    1,615           1,615
     Total                        42,709,358                 311,344         291,151              20,193

Abatements                       (21,356,020)                (133,048)       (30,974)           (102,074)

Total Property
  Valuation                $ 1,321,653,059

Net Levy                                                    8,289,972       7,297,391           992,581

Less Uncollected tax at June 30, 2000
  (Schedule 66)                                              (262,952)        (77,242)          (185,710)

Current year’s taxes collected                          $   8,027,020     $ 7,220,149       $   806,871

Percent current year collected                                 96.83%          98.94%             81.29%




                                                150
                   Statistical Section


Schedules presented in the Statistical Section differ from
financial statements because they usually cover more than one
fiscal year and may present nonaccounting data. The
Statistical Section reflects social and economic data, financial
trends and the fiscal capacity of the City.




                                 151
                                 City of Jacksonville, North Carolina
                            General Governmental Expenditures by Function (1)
                                        Last Ten Fiscal Years
                                             (Unaudited)




Fiscal
Year                                                                         Cultural
Ended             General         Public         Public     Environmental      and
June 30         Government         Works         Safety       Protection    Recreational


1991             2,068,008       1,488,286     5,862,964      1,421,899           755,794
1992             2,472,645       1,613,409     6,051,160      1,166,624           815,338
1993             1,963,572       1,797,211     6,561,087      1,734,049           927,771
1994             2,385,579       1,717,419     7,141,091      1,476,617           982,200
1995             2,576,363       1,822,247     8,087,848      1,524,311         1,030,239
1996             3,090,364       1,989,981     7,681,503      1,925,139         1,071,742
1997             5,766,278       2,243,082     8,439,047      1,675,729         1,002,446
1998             4,609,698       3,124,355     8,830,933      1,851,046           869,696
1999             5,185,459       2,913,605     9,278,156      1,964,929           963,261
2000             5,385,533       3,322,706    10,317,941      2,071,908         1,062,805

Note:
(1) Includes General, Special Revenue, and Capital Projects Funds.




                                 City of Jacksonville, North Carolina
                              General Governmental Revenues by Source (1)
                                        Last Ten Fiscal Years
                                             (Unaudited)




Fiscal                                       Unrestricted     Restricted
Year                Ad            Other      Intergovern-    Intergovern-
Ended             Valorem       Taxes and       mental          mental          Investment
June 30            Taxes         Licenses      Revenues        Revenues          Earnings


1991             5,358,770       3,873,125     1,688,544      1,945,472           234,700
1992             5,470,595       5,077,077     2,001,580      2,110,269           206,981
1993             5,683,989       5,299,703     2,291,528      2,393,062           332,845
1994             5,941,965       6,080,492     2,318,788      2,648,015           259,055
1995             6,142,993       6,754,606     2,320,841      2,899,008           595,106
1996             6,089,020       7,042,622     1,929,958      2,920,690           574,136
1997             6,370,411       8,312,650     2,005,469      3,874,191           546,340
1998             6,846,310       8,572,170     1,830,693      3,000,556           596,095
1999             7,888,989       9,145,906     2,002,161      4,256,492         1,001,011
2000             8,204,862       9,066,849     2,168,580      4,457,946         1,174,399

Note:
(1) Includes General, Special Revenue, and Capital Projects Funds.




                                               152
                                                       Table 1




 Economic      Debt          Capital
Development   Service        Projects      Total


   238,865      619,092         72,493    12,527,401
   219,120      426,321        269,220    13,033,837
   224,649      533,843        545,241    14,287,423
   568,751      536,334      1,479,569    16,287,560
   670,999      418,663      1,586,998    17,717,668
   671,690      457,567      3,140,767    20,028,753
   577,522      207,432      3,509,118    23,420,654
   652,713      278,791      1,043,906    21,261,138
   562,114      477,410      2,264,749    23,609,683
 1,069,552      996,052      2,477,422    26,703,919




                                                       Table 2




   Sales      Permits
    and         and
  Services     Fees       Miscellaneous    Total


   138,053       69,077         57,190    13,364,931
   157,581       88,697         81,335    15,194,115
   173,672      103,048        195,744    16,473,591
   158,512      107,468        100,229    17,614,524
   172,913      155,078        191,037    19,231,582
   201,753      208,589        203,859    19,170,627
   189,294      175,231        994,014    22,467,600
   218,180      231,909        306,012    21,601,925
   263,280      407,421        425,287    25,390,547
   285,138      460,378        361,416    26,179,568




                            153
                              City of Jacksonville, North Carolina
                               Property Tax Levies and Collections
                                     Last Ten Fiscal Years
                                          (Unaudited)




Fiscal                                         (1)
Year                             (1)         Current       Percent        Delinquent
Ended               Tax          Total         Tax         of Levy           Tax
June 30            Year        Tax Levy    Collections    Collected       Collections


1991               1990        5,387,991     5,191,018           96.3        148,447
1992               1991        5,487,966     5,269,205           96.0        181,534
1993               1992        5,687,205     5,476,830           96.3        170,291
1994               1993        5,901,203     5,672,046           96.1        227,440
1995               1994        6,141,991     5,915,034           96.3        190,970
1996               1995        6,064,988     5,909,862           97.4        145,638
1997               1996        6,402,043     6,216,007           97.1        125,934
1998               1997        6,861,287     6,662,127           97.1        148,118
1999               1998        7,948,057     7,713,064           97.0        140,088
2000               1999        8,289,972     8,027,020           96.8        145,583

Note: Collections do not include interest.
(1) Provided by the Onslow County Tax Administrator/Collector.




                              City of Jacksonville, North Carolina                      Table 4
                               Assessed Value of Taxable Property
                                     Last Ten Fiscal Years
                                          (Unaudited)




                                                              (1)
Fiscal                                                      Public            (1)
Year                            (1)            (1)          Service          Total
Ended                           Real        Personal        Company         Assessed
June 30                       Property      Property        Property          Value


1991                         738,802,198    88,686,159     29,101,553     856,589,910
1992                         710,616,672   131,772,779     29,111,594     871,501,045
1993                         848,105,899   126,774,696     35,696,291   1,010,576,886
1994                         860,558,189   152,505,661     34,872,922   1,047,936,772
1995                         875,581,449   166,968,905     34,688,553   1,077,238,907
1996                         892,165,024   161,293,615     36,704,260   1,090,162,899
1997                         919,781,889   192,066,760     33,631,855   1,145,480,504
1998                         950,987,667   242,675,849     37,320,076   1,230,983,592
1999                         978,181,554   252,110,765     39,221,550   1,269,513,869
2000                       1,012,113,560   274,200,749     35,338,750   1,321,653,059

Note: Assessed valuations are established by the Board of County Commissioners at 100
percent of estimated market value. A revaluation of real property is required by the
North Carolina General Statutes at least every eight years. The last revaluation was
completed in the tax year 1992 (Fiscal Year 1993).
(1) Provided by the Onslow County Tax Administrator/Collector.




                                             154
                                                                                  Table 3




                                 Percent of        (1)       Percent of
                     (1)         Total Tax     Outstanding   Delinquent
                  Total Tax      Collections    Delinquent    Taxes to
                 Collections      to Levy         Taxes       Tax Levy


                  5,339,465           99.1         349,655          6.5
                  5,450,739           99.3         385,877          7.0
                  5,647,121           99.3         420,982          7.4
                  5,899,486           99.9         420,293          7.1
                  6,106,004           98.5         438,352          7.1
                  6,055,500           99.8         370,363          6.1
                  6,341,941           99.1         411,959          6.4
                  6,810,245           99.2         438,151          6.4
                  7,853,152           98.8         500,244          6.4
                  8,172,603           98.6         581,620          7.0




                               City of Jacksonville, North Carolina               Table 5
                    Property Tax Rates - Direct and All Overlapping Governments
                                 (Per $100 of Assessed Value)
                                     Last Ten Fiscal Years
                                          (Unaudited)




Fiscal                            Name of Government
Year
Ended                             City of       Onslow
June 30                        Jacksonville     County         Total


1991                                0.610         0.605         1.215
1992                                0.610         0.605         1.215
1993                                0.553         0.540         1.093
1994                                0.553         0.540         1.093
1995                                0.553         0.575         1.128
1996                                0.553         0.615         1.168
1997                                0.553         0.644         1.197
1998                                0.553         0.694         1.247
1999                                0.623         0.694         1.317
2000                                0.623         0.694         1.317

Note: Property was reevaluated in tax year 1992 (Fiscal Year 1993
(see Table 4 note).




                                                155
                                 City of Jacksonville, North Carolina
          Ratio of Net General Bonded Debt to Assessed Value and Net Bonded Debt Per Capita
                                        Last Ten Fiscal Years
                                             (Unaudited)




                                                                Less Debt
Fiscal                                          Gross            Payable               Net
Year                                 (1)       General            From                General
Ended                              Assessed     Bonded          Enterprise            Bonded
June 30                             Value        Debt            Revenues              Debt


1991                           856,589,910      1,500,000         1,500,000                  0
1992                           871,501,045      1,275,000         1,275,000                  0
1993                         1,010,576,886      1,050,000         1,050,000                  0
1994                         1,047,936,772        825,000           825,000                  0
1995                         1,077,238,907        600,000           600,000                  0
1996                         1,090,162,899        500,000           500,000                  0
1997                         1,145,480,504        400,000           400,000                  0
1998                         1,230,983,592        300,000           300,000                  0
1999                         1,269,513,869        200,000           200,000                  0
2000                         1,321,653,059        100,000           100,000                  0

Note:
(1) Provided by the Onslow County Tax Administrator/Collector.
(2) N.C. State Data Center - LINC
(3) Annexation of Camp Lejeune, Collins Heights and Georgetown.
(4) Revised by the Census due to miscounts made at Camp Lejeune during the 1990 Census.
(5) Revised by the N.C. Office of State Planning for an increase in Camp Lejeune barracks.



                                  City of Jacksonville, North Carolina                           Table 7
                                    Computation of Legal Debt Margin
                                            June 30, 2000
                                             (Unaudited)




Assessed Value                                                         $1,321,653,059
                                                                                x0.08
Debt limit (8 percent of assessed value)                               $ 105,732,245

Amount of debt applicable to debt limit:

Gross Debt:

   Total bonded debt (issued)                         $      100,000
   Authorized and unissued bonds                          20,000,000
   Installment purchases                                  10,202,447
   Loans                                                  21,460,953

       Gross debt                                         51,763,400

Statutory Deductions:
   Water/Sewer bonds (issued)                                100,000
   Water/Sewer bonds (authorized/unissued)                20,000,000
   Water/Sewer installment purchases                       6,278,072
   Water/Sewer loans                                      21,460,953          47,839,025

Total amount of debt applicable
 to debt limit (net debt)                             $ 3,924,375

Legal debt margin                                                      $     101,807,870




                                                156
                                                                                          Table 6




                                                 Net
                Ratio of                       General
               Net Bonded                      Bonded
                Debt to                         Debt
                Assessed         (2)             Per
                 Value        Population       Capita


                  0.00         78,092 (3)          0
                  0.00         78,797              0
                  0.00         72,157 (4)          0
                  0.00         78,250 (5)          0
                  0.00         75,211              0
                  0.00         75,069              0
                  0.00         75,527              0
                  0.00         73,800              0
                  0.00         74,141              0
                  0.00         73,988              0




                        City of Jacksonville, North Carolina                          Table 8
          Ratio of Annual Debt Service Expenditures for General Bonded Debt
                     to Total General Governmental Expenditures
                              Last Ten Fiscal Years
                                   (Unaudited)



                                                             (1)
Fiscal                                        (2)           Total          Ratio of
Year                                         Total         General      Debt Service to
Ended                         Interest        Debt       Governmental    Total General
June 30         Principal     on Bonds      Service      Expenditures    Expenditures


1991              225,000        94,718      319,718      12,527,401          2.55
1992              225,000        83,079      308,079      13,033,837          2.36
1993              225,000        71,312      296,312      14,277,423          2.08
1994              225,000        59,436      284,436      16,287,560          1.75
1995              225,000        47,749      272,749      17,717,668          1.54
1996              100,000        35,858      135,858      20,028,753           .68
1997              100,000        30,100      130,100      23,420,684           .56
1998              100,000        24,600      124,600      21,261,138           .59
1999              100,000        18,600      118,600      23,609,683           .50
2000              100,000         6,200      106,200      26,703,919           .40

Note:
(1) Includes General, Special Revenue and Capital Projects funds.
(2) Total debt service payments made from enterprise fund revenues.




                                             157
                                       City of Jacksonville, North Carolina                                       Table 9
                                     Computation of Direct and Overlapping Debt
                                                June 30, 2000
                                                 (Unaudited)




                            Gross                                   Net                (2)
                           General                                General           Percentage                   Amount
                          Obligation                             Obligation         Applicable                 Applicable
                          Bonded Debt                 (1)        Bonded Debt            to                         to
                          Outstanding              Exclusions    Outstanding           City                       City


Direct:

  City of Jacksonville    $      100,000       $     100,000     $           0             100.0%          $           0

Overlapping:

  Onslow County               39,608,800            1,908,800        37,700,000            31.91               12,030,070

Totals                    $39,708,800          $ 2,008,800       $37,700,000                               $12,030,070


Note:
(1) Exclusions represent general obligation bonds of the City and County issued for water and
      sewer utility purposes which are payable from enterprise fund revenues.
(2) The percentage of overlapping debt is based on the June 30, 2000 assessed valuation of the
      County of Onslow ($4,142,260,575) as compared to the June 30, 2000 assessed valuation of the
      City of Jacksonville ($1,321,653,059).



                                       City of Jacksonville, North Carolina                                     Table 10
                                              Demographic Statistics
                                               Last Ten Fiscal Years
                                                    (Unaudited)



Fiscal                                 (2)
Year                                   Per                (1)                 (4)                 (2)
Ended                (1)              Capita            Median               School           Unemployment
June 30           Population          Income              Age              Enrollment        Rate Percentage


1991                78,092     (3)     13,368              24.46                  18,872            5.20
1992                78,797             12,782              24.54                  18,239            5.80
1993                72,157     (5)     13,168              24.61                  18,601            5.80
1994                78,250     (6)     13,548              24.74                  20,098            4.80
1995                75,211             14,831              25.28                  20,381            4.30
1996                75,069             15,424              25.11                  24,596            3.60
1997                75,527             16,130              25.25     (8)          24,492            3.10
1998                73,800     (7)     16,900 (8)          25.42     (8)          25,343            3.60
1999                74,141             18,157 (8)          25.25     (8)          25,313            3.30
2000                73,988                *   (9)          25.19     (8)          25,453            3.80

Note:
(1) Office of State Planning - State Demographer
(2) Employment Security Commission of North Carolina
(3) Annexation of Camp Lejeune, Collins Heights and Georgetown
(4) Onslow County Board of Education
(5) Revised by the Census due to miscounts made at Camp Lejeune during the 1990 Census
(6) Revised by the N.C. Office of State Planning for an increase in Camp Lejeune barracks
(7) Revised by the N. C. Office of State Planning for a decrease in Camp Lejeune barracks
(8) State Library of North Carolina - Woods and Poole Annual County Profile
(9) Data for current fiscal year not presently available




                                                         158
                          City of Jacksonville, North Carolina                      Table 11
                            Analysis of General Fund Balance
                                 Last Ten Fiscal Years
                                      (Unaudited)




Fiscal
Year
Ended                                 Unreserved      Unreserved
June 30                  Reserved     Designated     Undesignated        Total


1991                     1,502,382      1,058,634         647,945       3,208,961
1992                     1,754,335        975,395       1,605,430       4,335,160
1993                     1,690,463        929,595       3,023,610       5,643,668
1994                     2,539,676      1,374,353       3,269,363       7,183,392
1995                     2,484,903        537,057       4,795,080       7,817,040
1996                     3,363,195      1,025,781       2,384,597       6,773,573
1997                     3,570,822      1,608,442       3,027,420       8,206,684
1998                     3,607,140        823,287       4,647,535       9,077,962
1999                     4,136,887      1,396,359       5,635,496      11,168,742
2000                     4,068,823      2,247,209       4,730,302      11,046,334




                          City of Jacksonville, North Carolina                      Table 12
                            Analysis of General Fund Balance
                            As a Percentage of Expenditures
                                 Last Ten Fiscal Years
                                      (Unaudited)



                                                 Fund Balance
Fiscal
Year                                    Percent         Percent      Percent of Total
Ended     General Fund   Percent      Unreserved      Unreserved     Fund Balance To
June 30   Expenditures   Reserved     Designated     Undesignated   Total Expenditures


1991        12,216,043       12.3              8.7           5.3            26.3
1992        12,545,497       14.0              7.8          12.8            34.6
1993        13,517,533       12.5              6.9          22.4            41.8
1994        13,902,029       18.3              9.9          23.5            51.7
1995        15,201,354       16.3              3.5          31.5            51.4
1996        16,006,272       21.0              6.4          14.9            42.3
1997        19,311,571       18.5              8.3          15.7            42.5
1998        19,440,218       18.6              4.2          23.9            46.7
1999        19,908,030       20.8              7.0          28.3            56.1
2000        22,106,659       18.4             10.2          21.4            50.0




                                        159
                              City of Jacksonville, North Carolina
                              Calculation of Debt Service Coverage
                                     Water and Sewer Bonds
                                     Last Ten Fiscal Years
                                          (Unaudited)



                                                                                     Net
Fiscal                                                         (2)                 Revenue
Year                                           (1)            Direct              Available
Ended                                         Gross          Operating             for Debt
June 30                                      Revenue         Expenses              Service


1991                                         5,286,411(3)     2,234,713           3,051,698
1992                                         5,655,317(3)     2,396,960           3,258,357
1993                                         5,808,600(3)     2,518,107           3,290,493
1994                                         5,665,877(3)     2,769,296           2,896,581
1995                                         5,930,526(3)     2,755,467           3,175,059
1996                                         6,138,090(3)     2,975,545           3,162,545
1997                                         5,903,656        3,738,808           2,164,848
1998                                         5,508,218        3,844,712           1,653,506
1999                                         8,849,380        4,235,756           4,613,624
2000                                         9,624,832        4,378,597           5,246,235

Note:
(1) Total revenues including interest and other nonoperating revenues.
(2) Total operating expenses exclusive of depreciation.
(3) Total debt service requirement divided by net revenue available for debt service.




                              City of Jacksonville, North Carolina
                           Property Value, Construction and Bank Deposits
                                     Last Ten Fiscal Years
                                          (Unaudited)


                                                       (1)
                                                   Construction

Fiscal                          Nonresidential                      Residential
Year
Ended                       Number of                       Number of
June 30                       Units          Value            Units               Value


1991                           142          5,464,934             263         5,373,268
1992                           177          4,056,955             328         9,747,838
1993                           264         14,106,539             376        11,145,775
1994                           177          8,211,861             353        13,965,731
1995                           174         24,139,559             333        12,240,013
1996                            59         33,299,013             198        12,240,013
1997                            45         13,373,540             270        16,929,318
1998                           174         27,273,084             492        24,946,169
1999                            32         31,153,008             356        18,077,939
2000                            73         21,959,288             524        27,642,169

Note:
(1) Inspections Division, City of Jacksonville.
(2) Derived from N.C. State Banking Association.
(3) Provided by the Onslow County Tax Administrator/Collector.
*     Data for current fiscal year not presently available.




                                             160
                                                          Table 13




            Bonded Debt Service Requirements      (3)

Principal        Interest       Total          Coverage


  225,000          94,718       319,718           9.54
  225,000          83,079       308,079          10.58
  225,000          71,312       296,312          11.10
  225,000          59,436       284,436          10.18
  100,000          47,749       272,749          11.64
  100,000          35,858       135,858          23.28
  100,000          30,100       130,100          16.64
  100,000          24,600       124,600          13.27
  100,000          18,600       118,600          38.90
  100,000           6,200       106,200          49.40




                                                          Table 14




                (2)               (3)
               Bank             Property
              Deposits           Value


            436,074,000       856,589,910
            431,110,000       871,501,045
            432,464,000     1,010,516,886
            452,504,000     1,047,936,772
            469,720,000     1,077,238,907
            462,873,000     1,090,162,899
            499,301,000     1,145,480,504
            523,629,000     1,230,983,592
            530,674,000     1,269,513,869
                 *          1,321,653,059




                               161
                                 City of Jacksonville, North Carolina                        Table 15
                                   Schedule of Ten Largest Taxpayers
                                            June 30, 2000
(Unaudited)




                                                                                Percentage
                                                                                 of Total
                                       Type of                     Assessed      Assessed
          Company                      Business                    Valuation     Valuation


Crown America Acquisition LP      Commercial Real Estate       $   20,675,643         1.56%
Carolina Telephone & Telegraph    Public Utility                   13,489,637         1.02
Bailey & Associates Inc.          Developer                        12,463,215         0.94
United Dominion Realty Trust      Property Mgt./Real Estate        10,943,841         0.83
Jones-Onslow EMC                  Public Utility                   10,693,775         0.81
Lowes Investment Corp.            Real Estate                       8,720,520         0.66
Wal-Mart Stores Inc. 6573         Retail Chain                      8,450,802         0.64
New River Associates LLC.         Property Management               8,091,322         0.61
Carolina Power & Light Co.        Public Utility                    7,827,717         0.60
John T. Eagan, Jr.                Property Management               7,179,275         0.54

                                                                $ 108,535,747         8.21%


Source:   Onslow County Tax Administrator/Collector




                                               162
                                  City of Jacksonville, North Carolina                          Table 16
                                     Schedule of Insurance in Force
                                             June 30, 2000
                                              (Unaudited)



Type of                  Details                                                   Expiration    Annual
Coverage                 of Coverage                          Agency                 Date        Premium


Health Insurance                                            City of Jacksonville    06/30/01    $224.87 per
                                                            and BC BS**                          month per
                                                                                                 employee

Life Insurance        1 ½ x salary for all employees'       Medical Life           06/30/01     $.29 per
                      coverage (Max. $50,000)                                                     $1,000

Public Officials      $3,000,000 annual aggregate           IRFFNC                 07/01/01        *
 Liability            $10,000 deductible-Public Officials

Law Enforcement       $3,000,000 aggregate                  IRFFNC                  07/01/01       *
 Liability            $2,000,000 each occurrence/person
                      $10,000 deductible-Law Enforcement

General Liability     $2,000,000 each occurrence            IRFFNC                 07/01/01        *
 with Broad Form      $5,000 deductible
 Endorsement

Auto Liability        $2,000,000 each occurrence            IRFFNC                 07/01/01        *
                      $2,500 deductible

Auto-Comp &           As scheduled $1,000 deductible        IRFFNC                  07/01/01       *
 Collision            for large vehicles, $500 deductible
                      for autos/pickups

Impounded Auto        $100,000 coverage $1,000 deductible   IRFFNC                 07/01/01        *
 Collision            deductible for large vehicles,$500
                      deductible for autos/pickups

Impounded Auto        $100,000 coverage $1,000 deductible   IRFFNC                 07/01/01        *
 Comprehensive        for large vehicles, $500 deductible
                      for auto/pickups

Property -            $78,796,755 cause of loss-special     IRFFNC                  07/01/01       *
 Blanket Coverage     $2,500 deductible

Municipal Equipment   $1,175,198 special coverage           IRFFNC                  07/01/01       *
                      $2,500 deductible

Boiler and            $5,000,000 maximum                    IRFFNC                 07/01/01        *
 machinery            $2,500 deductible

Builders Risk         $500,193 special                      IRFFNC                  07/01/01       *
                      $2,500 deductible

Public Employee       $300,000 scheduled no deductible      IRFFNC                 07/01/01        *
 bonds                $100,000 blanket $250 deductible

Workers'              $25,000 deductible per individual     IRFFNC                  06/30/01    $186,062
 Compensation         per incident


* The Interlocal Risk Financing Fund of North Carolina (IRFFNC) is a "pooled insurance plan" created by
  the North Carolina League of Municipalities. Membership is restricted to North Carolina Municipalities
  and premiums are determined annually on a fiscal year basis. The City's premium for coverage provided
  under this plan was $189,026 for the fiscal year ended June 30, 2000.

** Blue Cross/Blue Shield of North Carolina (BC BS) provides contracted third-party claims administration.




                                                   163
                                City of Jacksonville, North Carolina                     Table 17
                                      Miscellaneous Statistics
                                          June 30, 2000
                                           (Unaudited)




Population                                                        73,988

Date of incorporation                                            Original - December 13, 1842
                                                                 Reincorporated - January 27, 1849

Form of government                                                Council/Manager

Area                                                             43.07 square miles

Miles of streets                                                 157.42
Miles of sidewalks                                                28.45
Number of street lights                                          2,163

Fire Protection
  Number of stations                                             4
  Number of firefighters and officers                            67

Police Protection
  Number of stations                                             1
  Number of police officers                                      100

Water and Sewer Department
  Number of utility accounts                                     12,521
  Average daily consumption - water                              4.0 mgd
  Average daily flow - sewer                                     4.9 mgd
  Miles of distribution lines - water                            190
  Miles of distribution lines - sewer                            175
  Number of fire hydrants                                        1,702

Parks and Recreation
  Number of major parks                                          14
  Number of athletic fields                                      16
  Number of recreation centers                                    7
  Total parks and recreation area                                265 acres

Employees
  Full time                                                       402
  Part time                                                        69




                                                164

				
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