HomeMy WebLinkAboutComprehensive Annual Financial Report 2019 COMPREHENSIVE
ANNUAL FINANCIAL REPORT
Fiscal Year Ended June 30, 2019
COUNTY OF HAWAII
Hilo, Hawaii
Harry Kim
Mayor
Wilfred Okabe
Managing Director
Prepared by
The Department of Finance
Deanna Sako
Director of Finance
COUNTY OF HAWAII
Comprehensive Annual Financial Report
For the Fiscal Year Ended June 30, 2019
Table of Contents
Page
INTRODUCTORY SECTION
Letter of Transmittal I
GFOA Certificate of Achievement 8
Organization Chart 9
List of Elected Officials 10
List of Principal Officials 11
FINANCIAL SECTION
Report of Independent Auditors 13
Management's Discussion and Analysis 16
Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Position 28
Statement of Activities 30
Fund Financial Statements:
Balance Sheet-Governmental Funds 32
Reconciliation of the Governmental Funds Balance Sheet to tile
Statement of Net Position 33
Statement of Revenues, Expenditures, and Changes in Fund Balances -
Governmental Funds 34
Reconciliation of the Change in Fund Balances of Governmental
Funds to the Statement of Activities 36
Statement of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual (Budgetary Basis)-General Fund 38
Statement of Net Position - Proprietary Funds 42
Statement of Revenues, Expenses,and Changes in Fund Net Position-
Proprietary Funds 43
Statement of Cash Flows- Proprietary Funds 44
Statement of Fiduciary Net Position - Fiduciary Funds 45
Statement of Changes in Fiduciary Net Position - Fiduciary Funds 46
Notes to the Basic Financial Statements 47
Required Supplementary Information 106
FINANCIAL SECTION (Continued)
Paye
Combining and Individual Nonmajor Fund Statements and Schedules:
Combining Balance Sheet-NonmaJor Governmental Funds 116
Combining Statement of Revenues, Expenditures, and Changes in Fund
Balances-Nonmajor Governmental Funds 120
Schedules of Revenues, Expenditures, and Changes in Fund Balances -
Budget and Actual (Budgetary Basis):
Highway Fund 123
Sewer Fund 124
Solid Waste Fund 125
Cemetery Fund 126
Parking Meter Fund 127
Vehicle Disposal Fund 128
Bikeway Fund 129
Workforce Investment Act Fund 130
Golf Course Fund 131
Geothermal Relocation and Community Benefits Fund 132
Beautification Fund 133
Hawaii County Housing Agency 134
Park Dedication Fund 135
Short-term Vacation Rental Enforcement Fund 136
General Excise Tax Fund 137
Combining Statement of Agency Funds Net Position-Agency Funds 138
Combining Statement of Changes in Assets and Liabilities-Agency Funds 140
Combining Statement of Private Purpose Trust Net Position- Private Purpose Trusts 146
Combining Statement of Changes in Net Position - Private Purpose Trusts 147
STATISTICAL SECTION
Table I -Net Position by Component 149
Table 2 -Changes in Net Position 150
Table 3 - Fund Balances, Governmental Funds 152
Table 4-Changes in Fund Balance,Governmental Funds 153
Table 5 -Real Property Assessed Values by Classification and Tax Rates 154
Table 6 - Principal Taxpayers 158
Table 7 - Property Tax Levies and Collections 159
Table 8 -Ratios of Outstanding Debt by Type 160
Table 9 - Ratios of General Bonded Debt Outstanding 161
Table 10 - Legal Debt Margin Information 162
Table I I -Demographic and Economic Statistics 163
Table 12 - Principal Employers, County of Hawaii 164
Table 13 -Full-Time Equivalent County Government Employees by Function 165
Table 14 - Operating Indicators by Function 166
Table 15 - Capital Asset Statistics by Functions 167
INTRODUCTORY SECTION
Harry Kirn Deanna S. Sako
Mayor Director
Steven A. Hunt
Deputy Director
County of Hawaii
Finance Department
25 Aupuiii Street,Suite 2103 • Hilo,Hawail 96720
(808)961-8234 • Fax (808)961-8569
December 30, 2019
The Honorable Mayor and Members of the Council
County of Hawaii
25 Aupuni Street
Hilo, Hawaii 96720
We transmit herewith the Comprehensive Annual Financial Report for the County of Hawaii,
State of Hawaii (the County), for the fiscal year July 1, 2018 to June 30, 2019.
This report was prepared by the County's Department of Finance. The accuracy of the financial
statements and the completeness and fairness of their presentation are the responsibility of the
County government. We believe the enclosed data are complete and accurate in all material
respects and are reported in a manner designed to present fairly the financial position and results
of operations of the various funds of the County. All disclosures necessary to convey the
maximum understanding of the County's financial activities have been included. Management's
discussion and analysis is also included to aid users of the financial statements.
This report presents the financial position of the County of Hawaii at June 30, 2019 and results
of operations for the fiscal year then ended. The report is divided into three sections:
• The Introductory Section includes this transmittal letter, a Certificate of Achievement for
Excellence in Financial Reporting, the County of Hawai'i's organization chart and lists of
elected and principal officials.
• The Financial Section contains management's discussion and analysis, the basic financial
statements, related notes, the combining and individual fund budgetary financial statements,
and the independent auditors' report,
• The Statistical Section includes selected financial and demographic information, generally
presented on a multi-year basis.
This report includes all funds of the County of Hawai'i, including its component unit, the
Department of Water Supply, established by the County Charter as a semi-autonomous body of
the County goverment. This component unit is included in the County's reporting entity
because of its financial relationship with the County.
Hawai'i County is an equal opportunity provider and employer.
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The County provides a full range of municipal services. These include police and fire protection;
emergency medical care; public prosecutor; culture and recreation; sanitation; social services;
water; planning and zoning; construction and maintenance of highways, streets and
infrastructure; real property assessment and tax collection; and general administrative services.
However, the County does not provide such other traditional services as public education,
hospitals and courts. These services are provided by the State government,
The County consists of the island of Hawai'i, 4,028 square miles in size. It is twice as large as
the combined area of all the other inhabited islands in the Hawaiian Archipelago. Since there is
no other local or municipal government within the County, there are no overlapping taxes and no
overlapping debt. The County has an elected mayor and a nine-member council,
Economic Condition and Outlook
The island of Hawaii, commonly known as the Big Island, is located 214 miles from Honolulu,
the state capital; 2,200 miles from the west coast of the continental United States; and 4,000
miles from Japan. The city of Hilo on the east side of the island serves as the county seat as well
as the transportation and financial center for the Big Island. Hilo's infrastructure includes Hilo
Harbor, a deep-water port, and Hilo International Airport, which is capable of handling fully-
loaded wide-bodied aircraft. Kailua-Kona and South Kohala, major tourist destination areas on
the west side of the Big Island, are served by flights from the United States mainland, Canada
and now Japan through the Kona International Airport. Scheduled freight services are available
between the islands by air and sea transport. Communities on the island are linked by a network
of State and County maintained streets and highways.
The Big Island is the most diversified of the neighbor island economies. As a result it is buffered
to some extent when any one industry tags. Although the unemployment rate for the County for
the current fiscal year is at approximately 3.7 percent, which is 0.7 percent higher than at the end
of the prior fiscal year, this is only the first increase in unemployment since 2009, when the rate
was 11.5 percent,
Although the past few years proved challenging to the island's economy, it appears that the
County will continue on its steady but slow road to improved financial health. This favorable
outlook is supported by positive trends in the following key areas of the island's economy.
Tourism has always been one of the major industries on the island. In fiscal year 2019, the
County suffered from two natural disasters, Hurricane Lane and a volcanic eruption in the
community of Puna, which took a toll on the island's visitor industry. Even with the halting of
volcanic activity during the fiscal year, efforts continue within the County and impacted
community to deal with the devastation and devise plans for recovery. Despite sensational
headlines that described the island as being covered with molten lava, the island has remained
open for business.
In addition to the mild climate and natural beauty it shares with other areas in the state, the
County features the Hawaii Volcanoes National Park, in addition to four other national parks
that focus on Hawaiian culture and history.
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In January 2020, the elegant Mauna Lam, Auberge Resorts Collection will open its doors and
welcome guests to visit their luxurious rooms, five restaurants and lounges, three pools and spa.
The Fairmont Orchid serves as home to the iawe wood honey, which is one of the rarest types
of honey in the world. The hotel maintains four beehives that serve as home to over 80,000
honeybees and are open to guests.
Major Initiatives
For the Year
Public Safety-,With the volcanic eruption in the lower Puna region endangering both lives and
property, the Hawaii County Civil Defense Agency (Agency), along with many of the
departments throughout the County, faced many challenges but worked tirelessly to keep the
community safe.
The Hawaii Police Department had a challenging year in FY 19, as the onset of the fiscal year
saw the department addressing the devastation caused by the lava eruption in the populated
Leilani Estates, Pohoiki, Kapoho, and 'Opihik56 areas. The department also began its quest for
reaccreditation through the Commission for Accreditation on Law Enforcement Agencies
(CaleaV) during this fiscal year, having undertaken a"mock" reaccreditation to prepare for a site
visit expected at the onset of FY 20.
The Fire Department has increased its efficiency as a result of acquiring necessary equipment
and training through legislative measures and grant awards received that provided the department
with critical funding. These legislative measures and grants provided direct benefit to our
community with 1) alternative funded apparatus, hazardous materials detection equipment,
Rescue Water Craft Program expansion, and training; 2) improved emergency communications
with the completion of the implementation of a new Computer Aided Dispatch system and smart
phone dispatching program for the Volunteer Division; 3) expansion of our community outreach
which included the implementation of an opioid awareness campaign, the launch of a mobile app
cardiac arrest notification to the general public for CPR assistance, and; 4) implementation of the
Paradise Park Advanced Life Support ambulance unit.
Public Works.- Over the past fiscal year the Department of Public Works (DPW) completed the
Kawailani/'Iwalani Intersection Improvement Project which involved grading, paving, installing
drainage improvements, water mains, retaining walls, street lighting and traffic signal systems.
This project had a total cost of approximately $20 million.
Culture and Recreation —Parks and Recreation opened the Gilbert Kahele Recreation Area
Cabins for lodging. There are seven cabins, each containing two rooms, a kitchenette, electric
range, shower and lavatory. The Department also continued to provide emergency sheltering
through the end of the lava event in Puna and completed multiple restoration and repair projects
for damages sustained from both lava.and hurricane events.
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For tits Future
Public Safety -®A high priority for the department to seek funding to implement a body worn
camera system to assist our officers in the field was achieved as the budget for FY 20 approved
in June 2019 authorized funding for the purchase of the cameras as well as for hiring personnel
to oversee the project. Additionally, and again working with the Fire Department and
Department of Public Works, we continue to press forward for a combined Fire and Police
Dispatch Center and hope it can be realized as a Capital Improvement Project during the
upcoming Fiscal Year. The department continues to seek funding to perform necessary repairs
and maintenance to the Public Safety Complex, which is the main police facility for the
department, as well as a co-located site (partnering with the Fire Department) to serve as the
main Puna District Station in the Kea'au area, in lieu of the current Pahoa substation, which is
overcrowded and not centrally located.
The Fire Department continues to build towards being the leader of all hazard mitigation
response and prevention. Utilizing innovative approaches, the department shall 1) institute a
succession plan for critical chief officer positions; 2) implement a grant writing and oversight
to to effectively continue its success in receiving grant awards; 3) continue the expansion of
its Community Paramedicine Program, 4) continue the expansion of its Ocean Safety Rescue
Water Craft program, and 5) increase the emergency communication and interface between
public safety organizations with the relocation of its emergency dispatch center to a public safety
co-located dispatch center site.
Public Works®DPW is currently working on the following County and Statewide
Transportation Improvement Program (STIP) projects:
• The Kalaniana'ole Avenue Reconstruction project (Kanoelehua Avenue to Kuhio Street) is
valued at $18.4 million, The project is in collaboration with the State Department of
Transportation (DOT) and includes multi-use accessibility and the enhancement of roadway
capacity, operations and safety for motorists, bicyclists and pedestrians. The work involves
the widening of Kalaniana'ole Avenue to add for a concrete curb, gutter and sidewalk, a
paved shoulder, bicycle lanes, utility relocation and the installation of a new waterline.
• The Mamalahoa Highway Widening project is valued at $19,6 million and started in fiscal
year 2017. The project will construct turning lanes at side intersections. The work will
include grading, paving, retaining walls and installing pavement markings and signs.
Completion of the project is currently slated for the end of fiscal year 2020.
Culture and Recreation -The Department will continue to provide a wide array of services and
programs for ages ranging from youth to elderly, while continuing to implement essential repairs
and improvements to facilities, with the ADA transition plan and FEMA projects taking
precedence. Parks and Recreation also anticipates the opening of the Kuawa Street new fields
which consists of both a multipurpose and baseball field.
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Other Financial Information
Internal Control
The management of the County is responsible for establishing and maintaining an internal
control structure designed to ensure that the assets of the County are protected from loss, theft or
misuse and to ensure that adequate accounting data are compiled to allow for 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.
Budgetary Control
The County maintains budgetary controls to ensure that legal provisions of the annual budget are
complied with and that those expenditures do not exceed budgeted amounts.
Activities of the general fund and special revenue funds are included in the annual appropriated
operating budget. Project-length financial plans are adopted for the capital projects fund.
Budgetary control is established at the department level.
Formal budgetary integration is employed as a management control device for the general fund,
special revenue funds, and the capital projects fund. Budgetary control for the debt service fund
is achieved through general obligation bond indenture provisions.
The basis of accounting used for the budgets of the general and special revenue funds differs
from generally accepted accounting principles. Intergovernmental revenues are recognized when
awarded by the granting agency, encumbrances and unexpended allotments are treated as
expenditures for purposes of determining legal compliance with the annual budget, all leases are
treated as operating leases, and accounts payable are not accrued.
The County also maintains an encumbrance accounting system as one technique of
accomplishing budgetary control. Encumbrances outstanding at fiscal year end are included in
the various fund balance categories based on whether the resources are restricted, committed or
assigned and do not constitute expenditures or liabilities because they will be honored during the
following year. As demonstrated by the statements and schedules included in the financial
section of this report, the County continues to meet its responsibility for sound financial
management.
,Significant Accounting Policies
The County has implemented Governmental Accounting Standards Board Statement No. 14, The
Financial Reporting Entity(GASB Statement No, 14), Statement No. 39, Determining Whether
Certain Organizations Are Component Units (GASB Statement No. 39) and Statement No. 61,
The Financial Reporting Entity. Omnibus an amendment of GASB Statements No. 14 and 34
(GASB Statement No. 61). All organizations, activities or functions that meet the criteria in
GASB Statement No. 14, No. 39 and No. 61 for inclusion in the reporting entity are included in
the County's basic financial statements. For further discussion on other significant accounting
policies, refer to the notes to the basic financial statements.
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Financial High ligh is
Total revenues increased by$39.7 million from the prior year, which was mostly due to property
taxes increasing by approximately $11.7 million. Most notably, there were increases in the value
of net taxable real property of$634.9 million in the homeowners class, which increased by 9.0
percent from the prior year, and $466.1 million in the residential class. Second,there was an
$18.5 million increase in Other Taxes in General Revenues resulting from the newly assessed
general excise tax surcharge. With an 8.0 percent($39.7 million) increase in revenues that was
offset by a 6.0 percent($31.2 million) increase in expenses, the County experienced a decrease
in net position of$11.7 million, which represented a 42.0% ($8.5 million) decrease over the prior
year's decrease in net position. These results are prior to the impact of the prior year's
cumulative effect of an accounting change related to the reporting of the County's liability
related to Other Postemployment Benefits (OPEB).
The County's net investment in capital assets increased by $27.0 million from the prior year,
which represented a 3.2 percent increase. New and continued construction projects in the areas
of highways and streets and sanitation accounted for the majority of the increase.
Other Information
Independent Audit
The County Charter requires an annual audit by independent certified public accountants. N&K
CPAs Inc. was selected in accordance with the County Charter and the procurement provisions
of the Hawaii Revised Statutes (HRS) and Hawaii Administrative Rules (HAR)to perform the
audit,
Employee Union Contracts
County employees are members of eight different bargaining units, of which five have contracts
that expire on June 30, 2021 and negotiations have either just concluded or are still ongoing for
the remaining three that have expired.
Certificate ofAchievement
The Government Finance Officers Association of the United States and Canada (GFOA)
awarded a Certificate of Achievement for Excellence in Financial Reporting to the County of
Hawai'i for its Comprehensive Annual Financial Report for the fiscal year ended June 30, 2018.
This was the thirty first consecutive year that the government has received this prestigious
award. In order to be awarded a Certificate of Achievement, a government must publish an
easily readable and efficiently organized comprehensive annual financial report. This report
must satisfy both generally accepted accounting principles and applicable legal requirements,
A Certificate of Achievement is valid for a period of one year only. We believe our current
Comprehensive Annual Financial Report continues to meet the Certificate of Achievement
Program's requirements, and we are submitting it to the GFOA to determine its eligibility for
another certificate.
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Acknowledgments
The preparation of this report was made possible by the efficient and dedicated services of the
entire staff of the Department of Finance and fiscal personnel in other departments. I am grateful
for their help in preparing this report. I also thank the Mayor and the members of the County
Council for their interest and support in assuring the continuing sound financial condition of the
County of Hawaii.
Deanna Sako
Director of Finance
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Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
County of Hawaii
Hawaii
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
June 30, 2018
Christopher P. Morrill
Executive Director/CEO
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County of Hawaii
Organization Chart
County Electorate
County Council Mayor Prosecuting Attorney
County Legislative Office of Management;
Clerk Auditor Managing Director
Departments under Agencies under Departments under
direct Supervision of the direct supervision of the commissions and
Managing Director: Managing Director: administrative Supervision
of the Mayor:
Corporation Counsel Civil Defense Human Resources
Finance Office of Aging Police
Planning Mass Transit Liquor Control
Environmental Management Office of Housing& Fire
Research & Development Community Development Water Supply
Public Works (semi-autonomous)
Parks &Recreation
Information Technology
County of Hawaii
Elected Officials
June 30, 2019
Administrative Officers (Term: 2016-2020)
Harry Kim Mayor
Mitchell Roth Prosecuting Attorney
County Council (Term: 2018-2020)
Aaron S.Y. Chung Chair
Karen Eoff Vice Chair
Maile "Medeiros" David Member
Matt Kaneali'i-Kleinfelder Member
Ashley L. Kierkiewicz Member
Susan L K. Leeloy Member
Valerie T. Poindexter Member
Herbert M. "Tim" Richards, III Member
Rebecca Villegas Member
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Principal Officials
June 30, 2019
County Clerk Jon Henricks
Legislative Auditor Bonnie Nims
Managing Director Wilfred Okabe
Deputy Managing Director Barbara Kossow
Corporation Counsel Joseph Kamelamela
Director of Finance Deanna Sako
Planning Director Michael Yee
Director of Personnel William Brilhante Jr.
Director of Research and Development Diane Ley
Chief of Police Paul Ferreira
Fire Chief Darren Rosario
Director of Public Works David Yamamoto
Director of Environmental Management William Kucharski
Parks and Recreation Director Roxcie Waltjen
Manager-Chief Engineer, Department of Water Supply Keith Okamoto
Civil Defense Administrator Talmadge Magno
Director of Liquor Control Gerald Takase
Mass Transit Administrator Brenda Carreira
Executive on Aging Christian Alameda
Administrator, Office of Housing and
Community Development Neil Gyotoku
Director of Information Technology Julie Ung
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FINANCIAL SECTION
AMERICAN SAVINGS BANK TOWER
1001 BISHOP STREET,SUITE 1700
N&K CPAs, Inc. HONOLULU, HAWAII 96813-3696
ACCOUNTANTS I CONSULTANTS T(808) 524-2255 F (808) 523-2090
INDEPENDENT AUDITOR'S REPORT
To the Chair and Members of the County Council
County of Hawaii
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the
business-type activities, the discretely presented component unit, each major fund, and the
aggregate remaining fund information of the County of Hawaii, State of Hawaii (County), as of
and for the fiscal year ended June 30, 2019, and the related notes to the financial statements,
which collectively comprise the County's basic financial statements as listed in the table of
contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements
in accordance with accounting principles generally accepted in the United States of America; this
includes the design, implementation, and maintenance of internal control relevant to the
preparation and fair presentation of financial statements that are free from material misstatement,
whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United States
of America and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Those standards require that
we plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor's
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the entity's preparation and fair presentation of the financial
statements in order to design audit procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the effectiveness of the entity's internal control.
Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of significant accounting estimates made by
management, as well as evaluating the overall financial statement presentation of the financial
statements.
N&K CPAs, Inc.
ACCOUNTANTS I CONSULTANTS
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects,
the respective financial position of the governmental activities, the business-type activities, the
discretely presented component unit, each major fund, and the aggregate remaining fund
information of the County of Hawaii, State of Hawaii, as of June 30, 2019, and the respective
changes in financial position and, where applicable, cash flows thereof and the budgetary
comparison for the general fund for the fiscal year then ended in accordance with accounting
principles generally accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management's discussion and analysis (pages 16 through 26), schedule of changes in the net
OPEB liability and related ratios (pages 106 through 107), schedule of contributions (OPEB)
(pages 108 through 110), schedule of the County's and Department's proportionate share of the
net pension liability (ERS) (page 111), schedule of the employer pension contributions (ERS)
(pages 112 through 113), and schedule of changes in total pension liability (page 114), be
presented to supplement the basic financial statements. Such information, although not a part of
the basic financial statements, is required by the Governmental Accounting Standards Board who
considers it to be an essential part of financial reporting for placing the basic financial statements
in an appropriate operational, economic, or historical context. We have applied certain limited
procedures to the required supplementary information in accordance with auditing standards
generally accepted in the United States of America, which consisted of inquiries of management
about the methods of preparing the information and comparing the information for consistency
with management's responses to our inquiries, the basic financial statements, and other
knowledge we obtained during our audit of the basic financial statements. We do not express an
opinion or provide any assurance on the information because the limited procedures do not
provide us with sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the County's basic financial statements. The introductory section, combining
and individual nonmajor fund financial statements and budgetary comparison schedules, and
statistical section are presented for purposes of additional analysis and are not a required part of
the basic financial statements.
The combining and individual nonmajor fund financial statements and budgetary comparison
schedules are the responsibility of management and were derived from and relate directly to the
underlying accounting and other records used to prepare the basic financial statements. Such
information has been subjected to the auditing procedures applied in the audit of the basic
financial statements and certain additional procedures, including comparing and reconciling such
N&K CPAs, Inc.
ACCOUNTANTS I CONSULTANTS
information directly to the underlying accounting and other records used to prepare the basic
financial statements or to the basic financial statements themselves, and other additional
procedures in accordance with auditing standards generally accepted in the United States of
America. In our opinion, the combining and individual nonmajor fund financial statements and
budgetary comparison schedules are fairly stated, in all material respects, in relation to the basic
financial statements as a whole.
The introductory and statistical sections have not been subjected to the auditing procedures
applied in the audit of the basic financial statements, and accordingly, we do not express an
opinion or provide any assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
December 30, 2019, on our consideration of the County's internal control over financial reporting
and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant
agreements and other matters. The purpose of that report is solely to describe the scope of our
testing of internal control over financial reporting and compliance and the results of that testing,
and not to provide an opinion on the effectiveness of the County's internal control over financial
reporting or on compliance. That report is an integral part of an audit performed in accordance
with Government Auditing Standards in considering the County's internal control over financial
reporting and compliance.
N&K CPAs, Inc.
Honolulu, Hawaii
December 30, 2019
MANAGEMENT'S DISCUSSION AND ANALYSIS
This section of the County of Hawaii's (tile County)Comprehensive Annual Financial Report
presents a narrative overview and analysis of the financial activities of the County for the fiscal
year ended June 30, 2019. We encourage readers to consider the information presented here in
conjunction with additional information that we have furnished in Our letter oftranst-nittal.
FINANCIAL HIGHLIGHTS
• The assets of tile County exceeded its liabilities at the end of the fiscal year by$130.0 million
(net position). This amount includes a negative balance of$820.9 million in unrestricted net
position, a decrease of$30.5 million from the prior year, which is explained in the sections
below. This amounts also includes $213.0 million and $17.0 million in deferred outflows and
inflows of resources, respectively.
• As of the close of the Current fiscal year,the County's governmental funds reported combined
ending fund balances of$224.4 million, all increase of$11.2 million from the prior year.
Approximately 40 percent of this total amount, $89.1 million, is available for spending at the
County's discretion (unrestricted fund balance).
• At the end of the current fiscal year, unrestricted fund balance for the general fund was $42.4
million, or 13 percent of total general fund expenditures,
OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as all introduction to the County's basic financial
statements. The County's basic financial statements comprise three components: (I)
Government-wide financial statements, (2)Fund financial statements, and (3)Notes to the basic
financial statements. This report also contains both required and other supplementary
information in addition to the basic financial statements themselves.
Government-wide Financial Statements
Tile government-wide financial statements are designed to provide readers with a broad overview
of the County's finances, in a manner similar to a private-sector business.
The statement of net position presents information oil all of the County's assets and liabilities,
with the difference between the two reported as net position. Over time, increases or decreases in
net position may serve as a useful indicator of whether or not the financial Position Of the County
is improving or deteriorating.
The statement of activities presents information showing how the County's net position changed
during the most recent fiscal year. All changes in net position are reported as soon as the
underlying event giving rise to the change Occurs, regardless of the timing of related cash flows,
Thus, revenues and expenses are reported in this staternent for some items that will only result in
cash flows in future fiscal periods, Such as revenues pertaining to uncollected taxes and expenses
pertaining to carried but unused vacation and sick leave.
Both of the government-wide financial statements distinguish functions of the County that are
principally supported by taxes and intergovernmental revenues(governmental activities) from
other functions that are intended to recover all or a significant portion of their costs through User
fees and charges(business-type activities), The governmental activities of the County include
public safety, highways and streets, health, education and welfare, el,jiture and recreation,
sanitation and general government. Tile business-type activities Of tile County include rental
housing for senior citizens and families,
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._„ m,_ ..w r_ m i
The government-wide financial statements include not only the County itself(known as the
primary government), but also the Department of Water Supply, a legally separate entity that the
County is financially accountable for. Financial information for this component unit is reported
separately from the financial information presented for the primary government itself.
Pend Financial Statements
The fund financial staternents are designed to report information about groupings of related
accounts which are used to maintain control over resources that have been segregated for specific
activities or objectives. The County, like other state and local governments, uses fivad accounting
to ensure and demonstrate compliance with finance-related legal requirements, All of the funds
of the County can be divided into the following three categories: governmental funds,
proprietary funds, and fiduciary funds.
Governmental funds. Governmental funds are used to account for essentially the same
functions reported as governmental activities in the government-wide financial statements --
i.e., most of the County's basic services are reported in governmental funds, These
statements, however, focus on (1) how cash and other financial assets can readily be
converted to available resources and(2)the balances left at year-end that are available for
spending. Such information may be useful in determining what financial resources are
available in the near future to finance the County's programs.
Because the focus of governmental funds is narrower than that of the government-wide
financial statements, it is useful to compare the information presented for governmental
funds with similar information presented for governmental activities in the government-wide
financial statements, By doing so, readers may better understand the long-term impact of the
government's near-term financing decisions. Both the governmental funds balance sheet
and the governmental funds statement of revenues, expenditures, and changes in fund
balances provide a reconciliation to facilitate this comparison between governmental funds
and governmental activities.
The County maintains several individual governmental fiords organized according to their
type(general, special revenue, debt service,and capital projects). Information is presented
separately in the governmental funds balance sheet and in the governmental funds statement
of revenues, expenditures, and changes in fund balances for the general fund and capital
projects fund, which are considered to be major funds. Data frorn the remaining
governmental funds are combined into a single, aggregated presentation. Individual fund
data for each of the non-major governmental funds is provided in the form of combining
statements elsewhere in this report.
The County adopts an annual appropriated budget for its general fund and special revenue
funds. A budgetary comparison statement has been provided for these funds to demonstrate
compliance with this budget. The budgetary comparison statement for the general fund is
located in the basic financial statements, whereas the budgetary comparison schedules for
the nonmajor special revenue funds are presented elsewhere in this report.
Proprietary funds. Proprietary funds are generally used to account for services for which
the County charges outside customers. Proprietary funds provide the same type of
information as shown in the government-wide financial state►nents, only in more detail. The
County maintains only one type of proprietary funds, enterprise funds. Enterprise funds
are used to report the sarne functions presented as business-type activities in the government-
wide financial state►nents. The County uses enterprise finds to account for the operations of
the ICulai►nano Elderly Housing Project and the Ouli Ekahi Affordable Housing Project.
- 17 -
Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of
parties outside the County. The private-purpose trusts and the agency funds are reported
under the fiduciary funds. Since the resources of these funds are not available to Support the
County's own programs, they are not reflected in the government-wide financial statements,
The accounting used for fiduciary funds is much like that used for proprietary funds.
Notes to the Basic Financial Statements
The notes to the basic financial staternents provide additional information that is essential to a full
understanding of the data provided in the government-wide and fund financial statements.
Other Supplementa, Information
In addition to the basic financial statements and accompanying notes, this report also presents
certain required supplementary information, which is presented immediately following the notes
to the basic financial statements. The combining statements referred to earlier in connection with
nonmajor governmental funds and budgetary comparison schedules for the nortmajor special
revenue funds are presented immediately following the required supplementary information.
GOVERNMEN r T-WIDE FINANCIAL ANALYSIS
Condensed Statement of Net Position
June 30,2019 and 2018
Primary Government
Governmental Activities Total
2019 2018 a 19 2018 2019 2018
Assets:
Current and other assets $ 351,300,809 $ 298,905,875 $ 1,300,216 $ 1,182,749 $ 352,601,025 $ 300,088,624
Capital assets,net 1,328,138,639 1,3 13,094,090 1,365,554 1,402,543 1,329,504,193 13 14,496,633
Total assets 1,679,439,448 1,611,999,965 2,665,770 2,585,292 1,682,105,218 1,614,585,217
Deferred Outflows,
Of Resources: 213,039,853* 225,708,726* -- 213,039,853 225,708,726
Total Assets and Deferred
Outflows of Resources 1,892,479,301 1,837,708,691 2,665,770 2,585,292 1,895,145,071 1,840,293,983
Liabilities:
Long-term liabilities
outstanding 1,677,521,661* 1,621,452,640* 697,777 807,005 1,678,219,438 1,622,259,645
Other liabilities 69,882,208 58,373,270 83,00 64,257 69,965,223 58,437,527
Total liabilities 1,747,403,869 1,679,825,910 780,792 871,262 1,748,184,661 1,680,697,172
Deferred Inflows
Of Resources: 16,970,935 17,863,765 -- 16,970,935 17,863,765
Total Liabilities and
Deferred Inflows
Of Resources 1,764,374,804 1,697,689,675 780,192 871,262 1,765,155,596 1,698,560,937
Net position:
Net investment in
capital assets 866,986,564 840,099,433 667,777 595,538 867,654,341 840,694,971
Restricted 83,230,067 91,458,455 -- — 83,230,067 91,458,455
Unrestricted (822,112,134)* (791,538,872)* 1,217,201 1,118,492 (820,894,933) (790,420,380)
Total net position $ 128,104,497 $ 140,019,016 $ 1,884,978 $ 1,714,030 $129,989,475 $141,733,046
*See explanation on page 20.
Analysis of Net Position
As noted earlier, net position may serve over time as a useful indicator of a government's
financial position. In the case Of the County, assets exceeded liabilities by$130.0 million at the
close of the most recent fiscal year.
By far the largest portion of the County's net position reflects its investment in capital assets
(e.g., land, buildings, infrastructure, and equipment) less any related debt used to acquire those
assets that is still outstanding. The County uses these capital assets to provide services to
citizens; consequently, these assets are not available for future spending. Although the County's
investment in its capital assets is reported net of related debt, it Should be noted that the resources
needed to repay this debt must be provided from other sources, since the capital assets themselves
cannot be used to liquidate these liabilities.
An additional portion of the County's net position represents resources that are subject to external
restrictions oil flow they may be used.
At the end of the current fiscal year, the County is able to report positive balances in two of its
three categories of net position, both for the government as a whole, as well as for its separate
governmental activities. All three categories of net position are positive for its business-type
activities.
The County's net position decreased by $11.7 million from the prior year, which was an increase
of$282.5 million (96%) frorn the decrease that was experienced last fiscal year. The main
reasons for the large increase in the current year' decrease over last year's decrease, was due to a
prior period adjustment of$274.0 million in the prior year, which was the result of tile County's
implementation of GASB Statement 75,Accounting and Financial Reporlingfor Postemployinent
Benefits Other Than Pensions. Under this new accounting standard the County's financials at the
government-wide level now reflect their net liability, expense, deferred inflows and outflows
relating to Other Postemployrnent benefits.
The County's net capital assets increased by $15.0 million (I percent) due to the large amount of
capital improvement projects done by the County during the current fiscal year and infrastructure
related assets that were contributed. See further discussion of the increase in capital assets on
page 23.
The County's long-term liabilities Outstanding increased by$56.1 million (3 percent)due
primarily to the issuance of$7.4 million State Revolving Fund (SRF) loans and $30.0 million in
bond anticipation notes, which were offset by$28.4 in retirements of bonds and SRF loans; a
$13.3 million increase in the liability related to claims and judgments against the County due to
the settlement of one case in particular; a $9.4 million increase in the County's liability relating to
the pre-funding of its posternployrnent benefits other than pensions; and a $25.8 million increase
ill the County's net Pension liability. See further discussion of the increase in long-term debt
outstanding on page 25.
- 19 -
Condensed Statements of Activities
For the Fiscal Years Ended June 30,2019 avid 2018
Primary Government
--governmental Activities Business-type Activities Total
2019 201$ 2019 Z-OA 2-Q12 2018
18
Revenues.
Prograrn revenues:
Charges for services $ 55,359,674 50,576,723 $ 510,352 503,597 55,870,026 $ 51,080,320
Operating grants and contributions 64,285,842 57,600,066 261,848 224,921 64,547,690 57,600,066
Capital grants and contributions 28,375,566 31,530,719 - 28,375,566 31,530,719
General revenues:
Property taxes 315,969,118 304,294,883 - 315,969,118 304,294,883
Other taxes 47,796,847 29,285,662 - 47,796,847 29,285,662
Grants and contributions,unrestricted 19,748,211 19,678,289 - - 19,7418,211 19,678,289
Investment earnings 3,420,693 1,84 1,356 8,234 5,561 3,428,927 1,846,917
Other 1,848,245 2,339,248 - - 1,848,245 2,339,248
497,146,946 780,435 734,059 537,584,630 97,881,025
Total revenues 536,804,196
Expenses:
General government 88,660,088 75,740,262 - 88,660,098 75,740,262
Public surety 248,111,465 245,139,168 248,111,465 245,139,168
Highways and streets 62,066,700 54,728,332 - 62,066,700 54,728,332
Health,education and welfare 37,919,675 35,597,718 609,486 566,864 38,529,161 36,164,582
Culture and recreation 35,908,061 35,834,512 - - 35,908,061 35,834,512
Sanitation 62,775,074 55,025,011 - 62,775,074 55,025,011
Interest on long-term debt 13,277,652 15,493,678 - 13,277,652 15,493,678
Total expenses --548,718,715 517,558,681 609,487 566,864 549,328,201 518,125,545
Increase(Decrease)in net position (11,914,519) (20,411,735) 170,948 167,2715 (11,743,571) 0,244,520)
Net position at beginning of year 140,019,016 434,457,254 1,714,030 1,546,815 1 11,73 3,04 6 43 6,004,069
Prior period adjustment (274,026,503) - - -- (274,026,503)
Net position at beginning ol'year,
as restated 140,019,016 160,430,751* 1,714,030 1,546,815 141,733,046 161,977,566
Net position at end of year 128,104,497 $ 140,019,016 1,884,978 $ 1,714,030 $ 129,989,475 $ 141,733,046
*Due to the implementation of GASB 75, a prior period adjustment to governmental
activities of$274,026,503 is reflected ill June 2018. The restated beginning balance for
fiscal year 2018 is $160,430,751 for governmental activities. See Note I for details.
Analysis of Changes in Net Position
Governmental activities. Governmental activities decreased the County's net position by$11,9
million, which represented all of the total decrease in net position of the County.
Tile primary reasons for the $39,7 million (8 percent) increase in total revenues was due to
property taxes increasing by approximately$11.7 million, which was due to increases in the value
of net taxable real property, of which the most notable was a $634.9 million increase in the
homeowners class that represented all 9 percent increase frorn the prior year, and then followed
by a $466.1 million increase in tile residential class(5 percent increase). Other taxes in General
Revenues increased by approximately$18.5 million, which related the newly assessed general
excise tax surcharge that was restricted to uses relating to the highways and streets projects.
Total expenses increased by $31.2 million, which represented a 6 percent change from the prior
year. There were the typical increases ill salaries and wages and related employment benefit costs
across all functions in the Current fiscal year.
_ 20 -
The charts below illustrate the County's governmental expenses and revenues by function, and its
revenues by source. As shown, public safety is the largest function in expense(45 percent),
followed by general government(16 percent)and sanitation (I I percent). General revenues such
as property and other taxes are not shown by program, but are effectively used to Support
program activities countywide. For governmental activities overall, without regard to programs,
property taxes are the largest single Source of funds(59 percent), followed by operating grants
and contributions (12 percent)and charges for services(10 percent).
Expenses and Program Revenues—Governmental Activities
Year Ended June 30,2019
$300,000,000
$250,000,000
EpenmWN.pa m revenues
$200,000,000
$150,000,000 L.
$100,0()0,000
$50,000,000
$0
%Aa os Cs'
\0
"Id
".63
Revenue by Source—Governmental Activities
Year Ended June 30,2019
Investment earnings, Other, $1,848,245 Charges for services,
$3,420,693 $55,359,674
Grants and contributions------ V,7777,' a,11,
not restricted to specific 6ii
3",
programs, $19,748,211
R;
Other taxes, $47,796,847 Operating grants and
N
contributions,
$64,285,842
vii
Capital grants and
F contributions,
$28,375,566
I .
Property taxes,
$315,969,118
- 21
Business-type activities. Business-type activities increased the County's net position by
$170,948 versus an increase of$167,215 in the prior year. Expenses for health, education and
welfare account for all of the $609,486 of expenses which represents a 7 percent increase from
the prior year. Approximately$24,000 or 4% of the current year expenditures were incurred as a
result of additional cleaning and maintenance for one of the units. Charges for services were
$510,352 and investment earnings were $8,234, which were comparable to the prior year.
Operating grants and contributions increased by$36,927 (16 percent)to $261,848 as a result of
the County increasing tile minimum rent which thereby increased the rent subsidies from the US
Department of Housing and Urban Development.
FINANCIAL ANALYSIS OF THE COUNTY'S FUNDS
As noted earlier, the County uses fund accounting to ensure and demonstrate compliance with
finance-related legal requirements.
Governnientalfunds. The focus of the County's governmental funds is to provide information
on near-term inflows, outflows, and balances of spendable resources. Such information is useful
in assessing the County's financing requirements. In particular, unrestricted fund balance may
serve as a useful measure of a government's net resources available for spending at the end of the
fiscal year.
As of the end of the current fiscal year,the County's governmental funds reported combined
ending fund balances of$224.4 million, an increase of$11.3 million (5 percent) in comparison
with prior year. Approximately 40 percent of this total amount($89.1 million)constitutes
unrestricted fund balance. The unrestricted portion of the fund balance is comprised of(1) $60.4
million in committed fund balance,(2) $25.7 million in assigned fund balance, and (3) $11
million in unassigned fund balance. The remainder of tile fund balance is divided between $7.3
million in nonspendable fund balance for inventory and $128.0 million in restricted fund balance.
Approximately 62 percent of the total restricted fund balance is due to restrictions relating to
highways, streets and abandoned vehicles ($46.6 million) and debt service($33.2 million). $6,0
million of tile fund balance restricted for highways, streets and abandoned vehicles was due to the
newly created General Excise Tax fund, which accounts for tile general excise tax surcharge that
became effective in fiscal year 2019.
The general fund is the chief operating fund of the County. At the end Of tile Current fiscal year,
unrestricted fund balance of the general fund was $42.4 million, while total fund balance
increased to $76.2 million. As a measure of the general fund's liquidity, it may be useful to
compare both unrestricted fund balance and total fund balance to total fund expenditures.
Unrestricted fund balance represents 13 percent of total general fund expenditures, while total
fund balance represents 24 percent of that same amount.
The fund balance of the County's general fund increased by$15.1 million during the current
fiscal year as compared to an increase of$13.3 million in the prior year. Key factors in this
increase($1.8 million) over last year's increase are as follows:
0 A positive increase of$11.9 million(4 percent) in real property tax revenues and $2,9 million
(5 percent) in intergovernmental revenues. As explained previously, the increase in real
property tax revenues is due to a slight increase(5%) in the value of net taxable real property
as evidenced in the accompanying statistical tables.
- 22 -
The positive impact of the increase in revenues was offset by increases of$15.8 million (5
percent) in expenditures. $5.6 million of the total increase in expenditures is due to increases
in salaries and wages frorn the prior year and $11.5 million in associated employee and
retiree benefits, The County also faced the continuation of the natural disaster relating to the
lava eruption and incurred expenditures for emergency protective measures and recovery
related to a hurricane.
The fund balance of the County's capital projects fund decreased by $18.1 million (25 percent)
during the Current fiscal year. The decrease is primarily due to the recognition of$30.0 million in
bond anticipation notes (BANs)that were issued in the Current year to fund expenditures incurred
during the fiscal year as a current liability instead of another financing Source because the legal
steps regarding the issuance of the bonds to pay off these notes have not been completed at the
time the audited financial staternents are being issued. This was partially offset by the issuance of
$7.4 million in SRF loans and $4.1 million in transfers frorn the newly created General Excise
Tax Fund.
The debt service funds consist of the Bond Redemption Fund and the Interest Fund. These funds
have combined total fund balances of$33.2 million, all of which is restricted for the payment of
debt service. The net decrease in the combined fund balances during the current year in the debt
service funds was just $0.2 million, which was less than a I% change from the prior year,
Proprietaryfitn(Is. The County's proprietary funds provide the same type of information found
in the government-wide financial statements, but in more detail.
Unrestricted net position of the Kulaimano Elderly Housing Project(KUlaimano)at the end of the
year arnounted to $638,675, and $578,526 for the 01,11i Ekahi Affordable Housing Project(Ouli
Ekahi). The total net position for Kulaimano increased by $82,117 and the net position for OLIH
Ekahi increased by $88,831. Other factors concerning the finances of these two funds have
already been addressed in the discussion of the County's business-type activities.
GENERAL FUND BUDGETARY HIGHLIGHTS
Differences between the original budget and the final amended budget were primarily the result
of a $55.2 million increase in appropriations,the most significant reasons were due to $42.0
million in increases in the grant appropriations from the State relating to the response and
recovery efforts for the lava disaster.
Differences between the final budget and the actual (budgetary basis) resulted in approximately
$5.7 million less revenues than expected and $27.8 million less expenditures than appropriated,
This is primarily due to the following factors:
0 The negative variance of$5.7 million in revenues is comprised mostly of$5.5 million frorn
intergovernmental revenues, of which $2.2 million was unrecognized in the General Fund of
the State's grant relating to the lava recovery efforts and was instead recognized in the
respective funds that incurred the actual costs,
0 $6,9 million Of tile unspent appropriations is related to salaries and wages and the various
countywide expenditure accounts relating to salaries and wages. The variance is due
primarily to unfilled vacancies and continued efforts by each department to control payroll
costs during the budget year due to the tough economic conditions facing the County. The
following functions are responsible for the majority of the variance: public safety($3.3
million) and general government($2.6 million),
- 23 -
0 $2.9 million is due to lower than anticipated payments needing to be made in retirement
related payments. With each department increasing efforts to control costs, overtime was
also closely monitored and the corresponding pension expenditures were not incurred,
0 $1.3 million is due to the fact that the increase in health premiums for employees were lower
than originally anticipated.
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital assets. The County's investment in capital assets for its governmental and bLISilleSS-type
activities as Of June 30, 2019 arnounts to $1.3 billion (net of accumulated depreciation). This
investment in capital assets includes land and improvements, buildings and i in prove rnents,
equipment,easements, and infrastructure assets, which consists of primarily roads and bridges.
The total increase in the COL111ty'S investment in capital assets for the current fiscal year was I
percent.
Major capital asset events during the current fiscal year included the following:
0 Construction Continued on the Kalaniana'ole Avenue Reconstruction; construction in
progress as of the end of the current fiscal year had reached $3.5 million with $2.3 million
coming from the Current fiscal year,
0 Construction Continued on the Marnalahoa Highway Widening; construction in progress as of
the end of the Current fiscal year had reached $8.0 million with $6.5 million corning from the
Current fiscal year.
0 Construction Continued oil the Office of tile Prosecuting Attorney; construction in progress as
of the end of the Current fiscal year had reached $7.1 million with $6.2 million coming frorn
the current fiscal year,
0 Construction continued on the Hawai'i County Radio Systern Upgrade project; construction
in progress as of the current fiscal year had reached $12.1 million with $1.4 million corning
from the Current fiscal year.
0 Construction continued on the Kawailani Street Improvements('1walani to Pohakulani);
construction in progress as of the end of the current fiscal year had reached $19.2 million
with $8,9 million corning from the current fiscal year; project was transferred to
Infrastructure,
0 Construction Continued on the Kealakehe Wastewater Treatment Plant R-1 Upgrade project;
construction in progress as of tile end of tile Current fiscal year had reached $4.4 million, with
$2.6 million coming from the Current fiscal year,
0 $8.2 million of dedicated roads were received by the County in the current fiscal year.
- 24 -
Capital Assets
(net of depreciation)
June 30,2019 and 2018
Primary Government
Governmental Activities Business-type Activities Total
2019 20-1-8 Lo 19 2018 2019 2018
Land and improvements 263,470,318 $256,390,951 $ 753,877 $ 753,877 $ 264,224,195 $257,144,828
Infrastructure assets 3 12,87 8,757 309,295,827 - 312,878,757 309,295,827
Ground and site improvements - 49,199 53,546 49,199 53,546
Buildings and improvements 627,746,572 631,727,813 538,410 574,454 628,284,982 632,302,267
Easements 6,250,078 6,169,006 - - 6,250,078 6,169,006
Equipment 59,337,103 58,918,798 24,068 20,666 59,361,171 58,939,464
Construction work in progress 58,455,811 50,591,695 - - 58,455,811 50,591,695
$1,32.8,138,639— $1,313,094,090 $ 1,365,554 --�1,40-2,543 T,329,504,193 $1,314,496,633
Total $I
Additional information oil the County's capital assets can be found in note 6 to the basic financial
statements.
Long-term debt. Long-term debt is primarily comprised of bonds of$382.4 million, State
Revolving Fund loans of$39.7 million and Bond Anticipation Notes of$30,0, At the end of the
current fiscal year, the County had total bonded debt Outstanding of$382.4 million, This entire
arnount was comprised of general obligation bonds which are backed by the full faith and credit
of the County.
The County's total bonded debt decreased by$25.0 million (6 percent)during the current fiscal
year due to the retirerrient of$25.0 of bonds.
At the end of the fiscal year, the County held all "AA+"rating from Fitch and ail "Aa2" rating
from Moody's for general obligation debt.
State statutes limit the arnOLmt of general obligation debt the County may issue Lip to 15 percent
of the total assessed value of all county real property as established for tax purposes on the last
tax assessment rolls. The current debt limitation for the County is$4.8 billion, which is in excess
of the County's outstanding general obligation debt. Currently the County's Outstanding debt
represents 9 percent Of Our debt limitation.
Additional information oil the County's long-term debt can be found in note 10 to the basic
financial statements.
ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES
• The unemployment rate for the County for the current fiscal year is at approximately 3.7
percent, which is 0.7 percent higher than at the end of the prior fiscal year, This is the
first increase in unemployment since 2009, when the rate was 11.5 percent.
• The number of domestic and international visitors to the County for the Current fiscal
year was approximately 1.67 million,with an approximately 35 percent decrease from the
previous year's count of 2,60 million.
These factors were considered in preparing the County's budget for the 2020 fiscal year.
- 25 -
At the end ofthe current fiscal year, unrestricted fund balance inthe general 0/ndwas $42.4
million. The County has appropriated $21.8 million of this arnount for spending in the 2020
fiscal year budget and the majority is included in the assigned portion ofthe fund balance.
REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the County's finances for all
those with an interest in the government's Oomouem. Questions concerning any ofthe infbrmation
provided in this report orrequests for additional iofbrmotiun should be addressed tothe Director
of Finance, County of8av/ui`i. 25 /\opuni Street, Suite 2103, Hilo, Qov/ui'i 96720.
- 26 -
BASIC FINANCIAL STATEM-F.NTS
- 27 -
COUNTY OF HAWAII
Statement of Net Position
June 30,2019
Primary Government
Crovernrnental Business-type Component
Activities Activities Total Unit
Assets
Current assets:
Cash and cash equivalents(notes 3 and 14) 95,429,774 S 1,180,315 S 96,610,089 $ 20,115,848
Restricted cash and cash equivalents(note 3) 105,817,735 42,514 105,860,249 -
Investments(note 3) 3,227,607 - 3,227,607 13,000,000
Restricted investments(note 3) 32,897,286 32,897,286 -
Receivables,net(note 4) 73,134,050 6,154 73,140,204 10,838,992
Receivable from improvement district
(notes 4 and 10) 107,752 - 107,752 -
Internal balances(note 5) 3,500 (3,500)
Inventories 7,297,830 7,297,830 1,531,48
Prepaid expenses 80,420 2,059 82,479 55,968
Other 1,806,244 -
,
1,806244
........... ..........
Total current assets 3 19,802,198 1,227,542 321,029,740 45,542,289
Investments(note 3) 13,877,211 13,877,211 17,000,000
Restricted investments(note 3) 15,734,285 15,734,285 -
Restricted cash and cash equivalents(note 3 and 14) - 72,674 72,674 888,225
Receivable Irom improvement district,excluding
current portion(notes 4 and 10) 1,887,1 15 - 1,887,115 -
Capital assets(notes 6,8 and 14):
Utility plant in service,net - - 245,904,985
Infrastructure assets,net 312,878,757 312,878,757 -
Ground and site improvements,net - 49,199 49,199
Buildings and improvements,net 627,746,572 538,410 628,284,982
Equipment,net 59,337,103 24,068 59,361,171
Easements,net 6,250,078 6,250,078 -
Preliminary survey and investigation charges - - 6,140,398
Land and improvements 263,470,318 753,877 264,224,'195 5,204,598
Construction work in progress 58,455,811 - 58,455,811 39,306,088
Total capital assets,net 1,328,138,639 1,365,554 1,329,504,193 296,556,069
...............-
Total noncurrent assets 1,359,637,250 1,438,228 1,361,075,478 314,444,294
---................ ---.......... ..........-
Total assets 1,679,439,448 2,665,770 1,682,105,218 359,986,583
..........
Deferred Outflows of Resources
Deferred loss on refunding 5,997,547 5,997,547 -
Deferrcd outflow related to pensions and other
post employment benefits(notes 13 and 14) 207,042,306 207,042,306 12,278,889''
. ....... ..... . ........w-..
.....--" -
Total deterred outflows of resources 3,039,853 213,039,853 12,278,899
Total Assets and Deferred Outflows of Resources 1,892,479,301 2,665,770 1,895,145,071372,265,472
- ------------ --- -
(Continued)
-28-
COUNTY OF I IAWAII
Statement of Net Position
June 30,2019
(Concluded)
Primary Government
7�oernrnental Business-type Component
Activities Activities Total Unit
Liabilities
Current liabilities:
Accounts payable and accrued liabilities 6 21,126,698 72,921 21,199,619 $ 3,099,214
Accrued payroll 10,773,598 10,773,598 1,582,476
Advance collections-intergovernmental 26,514,196 1,279 26,515,475 -
Interest due on long-term debt 6,111,069 8,815 6,119,884 605,077
Bonds and loans payable,current portion net
(notes 10 and 14) 60,998,287 102,520 61,100,807 5,613,168
Compensated absences,current portion(note 10) 10,626,781 - 10,626,781 563,533
Claims and Judginents,current portion
(notes 10, 12 and 14) 4,495,902 4,495,902 174,262
Capital leases,current portion(notes 8 and 10) 3,359,810 3,359,810 -
Landfill costs payable,current portion
(notes 9 and 10) 359,009 359,009
Customers'deposits - - 200,460
Other 9,305,885 9,305,885 -
Total current liabilities 153,671,235 185,535 153,856,770 11,838,190
Noncurrent liabilities:
Bonds and loans payable,net
(notes 10 and 14) 449,134,834 595,257 449,730,091 65,009,512
Compensated absences(note 10) 31,785,932 - 31,785,932 1,144,142
Claims and judgments(notes 10, 12 and 14) 26,988,591 26„988,581 604,738
Capital leases(notes 8 and 10) 8,219,522 8,219,522
Landfill costs payable(notes 9 and 10) 30,655,991 30,655,991 -
Unearned revenue,noncurrent 1,583,953
Customers'deposits - - 15,686,076
Net pension liability(notes 13 and 14) 636,645,242 636,645,242 33,522,053
Net OPEB liability(notes 13 and 14) 400,834,810 400,834,810 16,431,746
Other 9,467,722 9,467,722 -
...........
Total noncurrent liabilities 1,593,732,634 595,257 1,594,327,891 133,982,220
Total liabilities 1,747,403,869 780,792 1,748,184,661 145,820,410
Deferred Inflows of Resources
Deferred inflows related to pensions and other
post employment benefits(notes 13 and 14) 15,043,306 15,043,306 2,446,102
Deferred inflows-other 1,927,6291,927,629 69,643
-- - ------- .......J.... ” """
Total Deferred Inflows of"Resources - 16,970,935 1515,745
Total Liabilities and Deferred
Inflows of Resources 1,764,374,804 780,792 1,765,155,596 148,336,155
Net Position
Net investment in capital assets 866,986,564 667,777 867,654,341 226,821,614
Restricted for:
Debt service(note tO) 33,211,359 - 33,211,359 -
Highways,streets and abandoned vehicles 22,013,295 22,013,295
Public access open space 25,642,884 25,642,884
Other 2,362,529 2,362,529
Unrestricted ��l122,112,134) 1.217,20�1 (820,894,933)
Total net position $ 128,104,497 1,884,978 $ 129,989,475 223,929,317
See accompanying notes io die basic firnmcial statex�nwnN.
-29-
COUNTY OF HAWAII
Statement of Activities
For the Fiscal Year Ended June 30,2019
Program Revenues
Operating Capital
Charges for Grants and Grants and
Functions/ProaigExpenses Services Contributions Contributions
Primary government:
Governmental activities:
General government $ 88,660,088 S 2,149,353 $ 2,778,017 S 3,020,117
Public safety 248,111,465 6,220,940 31,223,536 -
I-fighways and streets 62,066,700 17,870,107 3,542,629 24,433,469
I-lealth,education and welfare 37,919,675 1,320,363 25,761,236 103,488
Culture and recreation 35,908,061 1,940,302 68,355 100,000
Sanitation 62,775,074 25,858,609 912,069 718,492
Interest on long-term debt 13,277,652 - - -
Total governmental activities 548,718,715 55,359,674 64,285,842 28,375,566
Business-type activities:
Health,education and welfare 609,486 510,352 261,848
Total primary government $ 549,328,201 S 55,870,026 S 64,547,690 28,375,566
Component unit:
Water(note 14) 61,23 1,713 $ 49,871,792 5,031,723
General revenues:
Taxes:
Property taxes, levied for general purposes
Public service company taxes
Franchise taxes
fuel taxes
General excise tax surcharge
Grants and contributions not restricted to specific programs
Investment earnings(expense)
Miscellaneous
,'otal general revenues
Change in net position
Net position,beginning of year,as previously stated
Prior period adjustment
Net position,beginning of year,as restated
Net position,end ol'year
See accompanying notes to the basic financial statements.
_30-
on losiCon
Primary Government
Governmental 8ueinoSS-type Component
Activities Activities Total Unil
� (80,712,601) $ (80,7 12,601) � ~
(210,668.989) - (210,666'989) -
(16,320.495) - (]6'228495) -
(10,73450) - <10J34,5888 -
O3,799,404 - (33,799404) -
p5,285,904 - (35.2&5,9&4) -
3 �_ _([3,277�52�
(400697,633) - (480697'633) -
_______�_ ___|6�Tl4 }6�7�4
(400,697,633) |t2Jl4 191) ___
___ _
' - -
_ __ ____ _____ ___ 811 _
315,969,118 ' 3|5`969'l\8 '
0'493,409 - 8,493.409 -
9,441,986 - 9,441,986 -
17,343'328 - 17,343,326 -
12,518.120 - 12'518.126 -
19J48,211 ' 19,748,211 -
3,420,693 8,234 3,428,927 824J15
____|�4�J�� __ - _ lJ�8�45
___3��783�l4 ____1��3� _3��7Yl�4� ____—&��Jl�
(\L9|4,5\9) 170,940 (1L743,571) (5,503,483)
__-���8\�|� __l7l4�30 _[4lJ33�4� __-I27�9l�63
� 537
�������. �������� �������' ����������
___140�19,Dl6 __1|714,030 _141733,846 __229,432,800
COUNTY OF HAWAII
Governmental Funds
Balance Sheet
June 30,2019
Other Total
Capital Governmental Governmental
General PELlq!s Funds Funds
Assets
Cash and cash equivalents(note 3) 57,325,947 $75,150,316 $ 68,771,246 $201,247,509
Investments(note 3) 27,688,091 16,731,545 21,316,753 65,736,389
Receivables,net(note 4) 25,930,167 3,184,086 297114,253
Due from other governmental funds(note 5) 2,626,633 2,710,225 655,795 5,992,653
Due from other nongovernmental funds(note 5) - - 3,500 3,500
Receivables from other governments(note 4) 22,463,558 7,913,199 13,643,040 44,019,797
Inventories 7,297,830 - - 7,297,830
Other 933,307 842,666 110,691 1,886,664
Total assets "ZUJ.0 ilujAzau LUI&I5 Uu398=3
Liabilities,Deferred Inflows and Fund Balances
Liabilities:
Accounts payable $ 6,517,652 10,33 1,741 S 4,277,305 21,126,698
Accrued payroll 9,342,094 1,431,504 10,773,598
Due to other governmental funds(note 5) 567,900 444,296 4,980,457 5,992,653
Advance collections-intergovernmental 19,729,975 6,772,223 11,998 26,514,196
Bond anticipation note payable(note 10) -
.30,000,000 30,000,000
Other 4,061,374 657,368 637,905 5,356,647
Total liabilities 402-189-95 —48,2-Q5-�Z.� i U.12.1.0 --22763222
Deferred Inflows of Resources:
Unavailable revenue(note 7) 27 8-57796 .__..3,,240,m596 31,098,392
Fund balances:
Nonspendable: Inventory 7,297,830 - 7,297,830
Restricted for:
Debt service(note 10) - 33,21 1,359 33,211,359
Highways,streets and abandoned vehicles - 24,543,005 22,013,295 46,556,300
Public access open space 25,642,884 - - 25,642,884
Other 799,769 20,216,296 1,562,760 22,578,825
Committed to:
Budget stabilization 6,887,961 - - 6,887,961
Disaster and emergencies 6,393,483 - 6,393,483
Lower Puna area - 4,274,235 4,274,235
Rental assistance and subsidy 1,253,946 1,253,946
Sanitation - 19,902,764 19,902,764
Self insurance 2,348,835 - 2,348,835
Highways,streets and abandoned vehicles - 1,111,518 10,665,824 11,777,342
Parks and recreational projects 1,993,896 91,351 2,085,247
Zoning change impact mitigation(fair share) - 3,187,594 - 3,187,594
Other 580,872 1,534,197 152,409 2,267,478
Assigned to:
Subsequent year's budget 21,819,518 - - 21,819,518
Other 1,297,811 2,555,817 - 3,853,628
Unassigned 3,119,779 .............. �22,597 9
) __�10 7,182
... ...........----
Total fund balances 70-188-742 55 14-2 323 _........93.,1..05M346 224436 411
4—
Total liabilities,deferred inflows, and fund balancesLUJZ�15X-3 UU,3AZd%U LWJJU..LU L35 I W
See accompanying notes to the basic financial statements,
-32 -
COUNTY OF HAWAII
Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position
June 30,2019
Total fund balances-governmental funds S 224,436,411
Amounts reported for governmental activities in the statement of
net position are different because:
Capital assets used in governmental activities are not financial
resources and therefore are not reported in the funds. These assets
consist of:
Land and improvements 263,470,3 18
Infrastructure assets, net 312,878,757
Buildings and improvements,net 627,746,572
Equipment,net 59,337,103
Easements,net 6,250,078
Construction work in progress 58,455,811
Total capital assets,net 1,328,138,639
Deferred amounts on refunding and pension are reported as deferred
outflows of resources in the government-wide Financial statements but are not
are not reported in the governmental fund statements 213,039,853
Some of the County's revenues will be collected after year-end but are
not available soon enough to pay for the current period's expenditures
and therefore are deferred(unearned)in the funds.(note 7) 29,170,763
Some liabilities are not due and payable in the current period and
therefore are not reported in the funds. Those liabilities consist of:
Bonds and loans payable, net of receivable
from improvement district (478,138,254)
Interest due on long-term debt (6,111,069)
Capital leases (11,579,332)
Compensated absences (42,412,713)
Claims and judgments (31,484,483)
Landfill costs payable (31,015,000)
Pollution remediation (12,440,733)
Other Postemployrnent Benefit Obligation(OPEB) (400,834,810)
Net pension obligation �,645,2�42)
Total long-term liabilities (1,650,661,636)
Unamortized gain on refunding (976,227)
Deferred amounts related to pension are reported as deferred
inflows of resources in the government-wide Financial statements but are not
are not reported in the governmental fund statements �]_5,1913,306)
Net position of governmental activities S. 128,104,497
See accompanying notes to the basic financial statements.
- 33 -
COUNTY Ol-'I--IAWAII
Governmental Funds
Statement or Revenues, Expenditures,and Changes in Fund Balances
For the Fiscal Year Ended June 30,2019
Other Total
I:�`apital Governmenud Governmental
General,.,_,,_, Projects Funds Funds
----------- ......
Revenues
Property taxes $ 3 13,63 1,189 $ S 3 13,63 1,189
Public service company taxes 8,493,409 8,493,409
Fuel taxes - 17,343,326 17,343,326
Public utility franchise taxes - 9,441,986 9,441,986
Licenses and permits 9,189,121 15,464,184 24,653,305
General excise tax surcharge - 12,518,126 12,518,126
Intergovernmental 60,455,809 15,683,014 25,487,990 101,626,813
Charges for services 3,913,656 - 23,602,635 27,516,291
Investment earnings 3,746,161 336,984 64,351 4,147,496
Other2,506,791 310,798 1,825,038 4,642,627
................ --..........
Total revenues 401,936,136 16,330,796 105,74 7,636 524,014,568
Expenditures
Current:
General government 41,689,635 110,097 41,799,732
Public safety 136,790,449 8,303,956 145,094,405
Highways and streets 2,352,035 25,096,477 27,448,512
Health,education and welfare 9,050,340 22,058,457 31,108,797
Culture and recreation 20,828,166 1,193,509 22,021,675
Sanitation 1,151,340 42,663,206 43,814,546
Pension and retirement
contributions(note 13) 46,874,702 6,262,215 53,136,917
Employees'health insurance 14,762,682 2,759,188 17,521,870
Other posternployment benefits 39,636,911 - 39,636,911
Other 2,896,079 1,417,756 4,313,835
Debt service:
Principal 1,431,798 29,145,553 30,577,351
Interest 85,555 278,868 18,858,175 19,222,598
Capital outlay 2,633,012 49,264,384 51,897,396
Total expenditures 320,182,704 49,543,252 157,868,589 527,594,545
Excess(deficiency)orrevenues
over(under)expenditures 81,753,432 _m_j33,212,456 52,120,953) (3,579,977)
(Continued)
-34-
COUNTY OF HAWAII
Governmental Funds
Statement of'Revenues, Expenditures,and Changes in Fund 13,,flances
For the Fiscal Year Ended June 30,2019
(Concluded)
Other Total
Capital Governmental Governmental
General_ Funds Funds
Other Financing Sources(Uses)
Sale of assets 46,712 46,712
Increase in capital leases(notes 8 and 10) 2,382,911 m 4,393,725 6,776,636
State Revolving Fund loans(note 10) - 7,439,296 7,439,296
Transfers in(note 5) 7,625,045 69,615,396 77,240,441
Transfers out(note 5) tL9�,017,396 - (7,623,045J 177,240,44 1)
Total other financing sources(uses) 6( 7,187,773 15,064,341 66,386,076 14,262,644
Net change in fund balances 14,565,659 (18,148,115) 14,265,123 10,682,667
Fund balances at beginning of year 61,040,124 73,290,438 78,840,223 213,170,785
Increase in reserve for inventories 582,959 - - 582,959
Fund balances at end of year $76,188,742 $ 55,142,323 $93,105,346 $ 224,436,411
See accompanying notes to the basic financial statements,
-35 -
COUNTY OF HAWAII
Reconciliation of the Change in Fund Balances of Governmental Funds
to the Statement of Activities
For the Fiscal Year Ended June 30,2019
Net change in fund balances-total governmental funds 10,682,667
Amounts reported for governmental activities in the statement of activities are
different because:
Capital outlays are reported as expenditures in governmental funds.
However, in the statement of activities,the cost of capital assets is
allocated over their estimated useful lives as depreciation expense. In
the current period,these amounts are:
Capital outlay 53,654,696
Dedicated and contributed property 9,007,217
Depreciation expense and loss on disposals J47,617,365)
Excess of capital outlay over depreciation expense 15,044,548
Borrowings provide current financial resources to governmental funds;
however, issuing debt increases long-term liabilities in the statement
of net position. In the current period,assets financed through:
State Revolving Fund loans (7,439,296)
Capital leases (6,7761636)
Total debt proceeds (14,215,932)
Repayment of'long-term debt is reported as an expenditure in governmental
funds, but the repayment reduces long-term liabilities in the statement of
net position. In the Current year,these amounts consist of:
Bond principal retirement 24,900,698
State Revolving Fund loan repayments/forgiveness 3,393,572
Capital lease payments 3,309,881
Total long-term debt repayment 31,604,151
Because some revenues will not be collected for several months after the
County's fiscal year end,they are not considered"available"revenues and
are"deterred" in the governmental funds. Unearned revenues increased by
this amount this year, 789,431
(Continued)
-36-
COUNTY OF HAWAII
Reconciliation of the Change in Fund Balances of Governmental Funds
to the Statement of Activities
For the Fiscal Year Ended June 30,2019
(Concluded)
Some items reported in the statement of activities do not involve current
Financial resources and therefore are not reported as expenditures in
governmental funds. These activities are:
Increase in inventories 582,959
Increase in compensated absences (1,275,734)
Increase in claims and judgments (13,349,074)
Increase in landfill closure/postclosure care costs (1,008,000)
Decrease in pollution remediation costs 703,526
Amortization ofpremiUM from bond issuance 6,299,484
Amortization of'deferred loss on refunding (794,937)
Amortization ofgain on refunding 102,761
Net decrease in accrued interest 337,638
Net decrease to expenses related to Other Postemployment
Benefit Obligation 1,050,927
Net increase to expenses related to pension and salaries and wages (48,468,934)
Net additional expenses ......�55,819,384)
Change in net position®f governmental activities
See accompanying notes to the basic financial statements,
-37-
COUNTY OFFIAWAI I
General Fund
Statement ol'Revenues,Expenditures,and Changes in Fund Balance-
Budget and Actual(Budgetary Basis)
For the Fiscal Year Ended June 30,2019
Actual Variance
Original Final (Budgetary Positive
Budt
Budget Ba s i s) �ative)
Revenues:
'Faxes and assessments:
Properly taxes $ 317,000,000 $ 313,100,000 313,631,l 89 $ 531,189
Public service company taxes 8,840,000 8,840,000 8,493,409
.-
Total taxes and assessments 325,840,000 321,940,000 322,124,598 184,598
Licenses and permits:
Nonbusiness licenses and permits 4,252,620 4,252,620 4,135,116 (117,504)
Business licenses 2,067,101 2,067,101 1,841,249 (225,852)
Street use 3,042,000 3,042,000 32212,756 170,756
Total licenses and permits 9,361,721 9,361,721 9,189,121 (172,600)
Intergovernmental:
Federal:
Programs for the aged 2,499,718 2,507,883 1,570,260 (937,623)
Community development block grants - 2,766,347 2,766,347
Law enforcement 3,446,808 4,405,901 3,079,344 (1,326,557)
Other 3,465,047 6,728,844 7,005,613 276,769
- -...............
Total federal 9,411,573 16,408,975 14,42 1564 (1,987,411)
---------- .........
State:
State General Fund-Act 185,
SLH 1990 19,158,000 19,158,000 19,158,000
Emergency medical services 16,830,274 19,509,182 19,509,182
Other 6,930,908 54,458,681 50,927,082 (3,531.599)
"Total State 42,919,182 93,125,863 89,594,264 (3,53 1,599)
Total intergovernmental revenue 52,330,755 109,534,838 104,0 l 5,828 (5,519,010)
Charges for services:
General government 4,660,883 4,660,883 4,586,432 (74,451)
Culture and recreation 1,830,900 1,830,900 1,298,306 (532,594)
Highways and streets 1,212,000 1,212,000 957,931 (254,069)
Public safety 111,768 111,768115,337 3,569
..........--................
Total charges for services 7,815,551 7,815,551 6,958,006 5 4
... ............
Fines and forfeitures 2,310,300 2,310,300 1,203,014 (1,107,286)
................ ..............
Rents 208,500 208,500208,812 312
.. ............
(Continued)
,38..
COUNTY OF HAWAII
General Fund
Statement of Revenues,Expenditures,and Changes in Fund Balance-
Budget and Actual(Budgetary Basis)
For the Fiscal Year Ended June 30,2019
Actual Variance
Original Final (Budgetary Positive
Budget Bu Basis)
................. et....02..................
Revenues(continued):
Interest and penalties $ 1,000,000 $ 1,000,000 $ 3,149,645 2,149,645
Miscellaneous 4,858,196 5,360,418 5,017,664 2±L75,
jt
Total revenues 403,725,023 457,53 1,328 451,866,688 (5,664,640)
Expenditures:
Current:
General government:
Finance 13,266,249 13,268,008 11,065,118 2,202,890
General government building 5,430,344 5,710,344 5,309,814 400,530
Legislative 3,979,893 3,711,659 3,400,145 311,514
Automotive equipment 4,812,108 4,820,108 4,405,972 414,136
Law 2,993,817 2,993,817 2,716,360 277,457
Research and development 2,761,610 3,870,356 3,586,094 284,262
Planning and zoning 4,338,087 4,353,087 3,409,121 943,966
Mayor's office 1,753,712 7,499,914 7,353,582 146,332
Engineering 1,807,685 1,496,685 1,296,585 200,100
Information technology 2,897,640 2,987,535 2,762,331 225,204
Human resources 2,119,860 2,119,940 1,920,550 199,390
Public works administration 2,118,316 2,261,316 2,122,635 138,681
Elections 1,121,204 1,121,204 1,022,663 98,541
Legislative auditor 786,540 786,540 577,835 208,705
Total general government 50,187,065 57,000,513 50,948,805 6,051,708
Public safety:
Police department 67,294,563 67,985,533 64,978,267 3,007,266
Fire department 48,263,603 50,813,298 49,658,431 1,154,867
Prosecuting attorney 10,453,416 10,924,130 9,903,681 1,020,449
Protective inspection 3,613,314 3,613,314 3,115,134 498,180
Liquor control 2,052,601 2,115,927 1,840,998 274,929
Flood control 330,000 330,000 330,000 -
Civil defense agency 2,212,631 2,447,381 1,608,366 839,015
Animal control 2,185,706 2,185,706 2,081,625 104,081
Total public safety 136,405,834 140,415,289 133,516,502 6,898,787
Highways and streets:
Mass transit 6,474,785 2,712,640 1,925,834 786,806
(Continued)
-39 -
COUNTY OF HAWAII
General Fund
Statement of'Revenues,Expenditures,and Changes in Fund Balance-
Budget and Actual(Budgetary Basis)
For the Fiscal Year Ended June 30,2019
Actual Variance
Original Final (Budgetary Positive
Budget Budget_ Basis) N egoflve)
Expenditures(continued):
Current(continued):
Flealth,education and welfare:
Elderly activities S 4,306,190 5,069,658 $ 4,398,743 $ 670,915
Office of aging 3,970,588 3,979,588 2,328,226 1,651,362
Education 58,500 58,500 51,876 6,624
Social programs 1,500,002 1,500,002 1,464,296 35,706
Cemeteries 422,542 433,122 394,113 39,009
Physical examination 133,826 133,826 133,825 1
.................................
Total health,education and welfare 10,391,648 11,174,696 8,771,079 2,403,617
Culture and recreation:
Community music 291,629 292,629 221,784 70,845
Organized recreation:
Maintenance 10,386,359 10,395,926 9,841,719 554,207
Recreation 3,217,707 3,259,957 3,188,105 71,852
Aquatics 2,544,791 2,517,391 2,249,402 267,989
I-loolum park complex 1,036,098 1,037,914 1,022,404 15,510
Administration 2,008,737 1,849,877 1,695,635 154,242
Children's zoo 829,333 829,333 780,861 48,472
Summer/I ntersess ion 505,018 511,768 433,039 78,729
Culture and arts 299,354 301,854 234,283 67,571
Elderly activities administration710,474 722,024 622,572 99,452
.......................... ........................................
Total culture and recreation 21,829,500 21,718,673 20,289,804 1,428,869
Sanitation:
Environmental management 1,212,065 1,212,065 1,150,320 61,745
Pension and retirement contributions 49,981,132 50,302,288 47,318,710 2,983,578
Employees'health insurance 16,000,000 16,000,000 14,704,495 1,295,505
......................................................................
Other postemployment benefits 39,806,000 39,806,000 39,650,111 155,889
Other 5,160,500 46,268,100 42,212,481 4,055,619
Total current337,448,529 386,610,264 360,488,141 26,122,123
................................ ......................................
(Continued)
- 4o
COUNTY OpHAWAII
General Fund
Statement of Revenues,Expenditures,and Changes in Fund Balance-
Budget and Actual(Budgetary Basis)
For the Fiscal Year Ended June 3O,2O)9
(Concluded)
Actual 9nhuncc
Original Final (Budgetary Positive
BuqgSt BudL?,et Basis) (Negative)
Expenditures(continued):
Capital Outlay:
Community Development Block
grants(HUD) 150,000 $ 3,016,347 2'820,994 0 195.353
HOME Program 50.000 532.731 454,571 78,160
Other - _ 1�25,000 - _ 1,425,000
Total capital outlay 200,000 4,974,070 -__3,275,565 _-1,698,513
Total expenditures _337,648,529 391,584,342 _363,76I,706 _27,820,636
Excess myrevenues over expenditures 66,076,494 65,946,986 08,102,982 _22�55,996
Other financing sources(uaea):
Transfers out:
Housing Fund (2'012,389) (1.978.639) (1,256,200) 722.439
Solid Waste Fund (19,201.770) (19,281,770) (19,201,770) -
Sewer Fund (2,987,914) (2�87,914) (2,987,914) -
Golf Course Fund (580,360) (760,308) (760308) -
Capital Project Fund - (2'000) (2.000) -
Self Insurance Fund - (1^000,000) (1,000,000) '
Di Fund C250,000 (250,000) (250,000) -
Public Access,Open Space,and Natural
Resources Preservation Fund (0,340.000) (6,292,000) (6.272,624) 19,376
Public Access,Open Space,and Natural
Resources Preservation Maintenance Fund (792,500) (786,500) (707.135) 79.365
Budget Stabilization Fund (250.008) (250.000) (250.000) '
Debt Service Fund _{49�O3�00 __{49�0�l�� _!��K��30) _____�_
Tou|transfers out ....0.Lj9_L,q4.12) (82,794,321) _(��99J4l) 82l�8o
Total other financing uses _�Ui421§42) __JqJ94��l _|Ql9?3JNA� �J�8V
Excess(drbcicooy)ofrevenues and other
sources over(under)expenditures and other uses (15,422.155) (16.847.335) 6.129.041 32.977.170
Fund balance atbeginning ofyear ���4&��� __�LD4O��� _—N�}#}]24 -
Fund balance atend ofyear
See accompanying notes tothe basic Fi^oociu|statements
COUNTY OF HAWAII
Proprietary Funds
Statement o[Net Position
June 30,2019
Business-type Activities-
Enterprise Funds
Kulaimano Ouli Ekahi
Elderly Affordable
I-Iousing I-IOUSing
_!!Eqj.ect mm Protect Total
Assets
Current assets:
Cash and cash equivalents(note 3) S 665,123 $ 515,042 $ 1,180,165
Restricted cash and cash equivalents(note 3) 13,015 29,499 42,514
Imprest fund(note 3) 50 100 150
Receivables,net(note 4) 360 5,794 6,154
Prepaid expenses 2,059 - 2,059
Total current assets 680,607 550,435 1,231,042
Noncurrent assets:
Restricted cash and cash equivalents(note 3) - 72,674 72,674
Capital assets(note 6):
Land and site improvements 511,000 515,727 1,026,727
Buildings and equipment 1,224,273 488,823 1,713,096
Less accumulated depreciation 5 3 (107,516) 74,22 69)
Total capital assets 468,520 897,034 1,365,554
Total noncurrent assets 468,520 969,708 1,438,228
Total assets 1,149,1271,520,143 2,669,270
............
Liabilities
Current liabilities:
Accounts payable 16,219 15,637 31,856
Due to other governmental funds(note 5) 3,500 - 3,500
Security deposits payable from restricted assets 13,015 28,050 41,065
Deferred revenue 383 896 1,279
Interest payable 8,815 - 8,815
Notes payable, current portion(note 10) 66,186 36,334 102,520
Total current liabilities 108,118 80,917 189,035
Noncurrent liabilities:
Notes payable(note 10) 463,688 131,569 595,257
Total liabilities 571,806 212,486 784,292
Net Position
Net investment in capital assets (61,354) 729,131 667,777
Unrestricted 638,675 578,526 1,217,201
Total net position $ w 577.321 S 1,307,657 $ 1,884,978
See accompanying notes to the basic financial surternents,
-42.
COON'TY OF HAWAII
Proprietary Funds
8tatemco/of Revenues,Expenses,and Changes inFund Net Position
J�'vthe Fiscal Year Ended June 3U,20|8
Business-type Activities-
Enterprise F d
�v\�imunn 0uli5kuhi
Elderly AO'onduh\c
Housing Housing
Operating revenues:
Rental receipts from tenants 139,374 $ 333.709 $ 473.083
Rental subsidy from fled*m\government-8QQ 261.848 - 281,840
Laundry receipts 3.870 - 3,070
Other 266 I3,933 34,199
Totn\operating revenues __-404,558 367,642 772,200
Qpnrobug expenses:
Utilities 38,09 50.686 94,758
General and administration 159`979 104,593 264,572
Maintenance and repairs 87.409 108.514 167.923
Depreciation(note 8) 34,397 15,639` 50\036
?otm|operating expenses 290,455 __-278,832 577,287
Operodngiocomc __-�O��o3 88,810 __-194,9/13'
Nomnpeoningrevenues(expcoscs):
Investment income 0,213 Z) 0.234
Interest expense (28,345) - (28'345)
(Los$oodisposal nfaosets 3,0�Q -_ ____[}�54)
Totaluouop*r�in#�vcouco(expcnsox) |�3��� _____-21 ___�I����
Change innet position 82,117 88.831 170,948
Net position, beginning of year __-49��O4 __|�|&��� __�7l���
Notpnaidou'endo[year
See accompanying notes totile basic financial statements,
-4]^
..........................
COUNTY OF HAWAII
Proprietary Funds
Statement ofCash Flows
For the Fiscal Year Ended June 30,2019
BUSiness-type Activities-
Enterprise Funds
Kulaimano Ouli Ekahi
Elderly Affordable
I lousing FIOUSing
llrojLc� ect Total
___L_
Cash Flows from Operating Activities
Receipts from tenants $ 138,702 S 364,751 $ 503,453
Receipts from federal government-HUD 261,848 - 261,848
Payments to suppliers lor goods and services (2,18,484) __IZ52,082) _
Net cash provided by operating activities 152,066 112,669 264,735
Cash Flows from Capital and Related Financing Activities
Principal paid on notes payable (62,622) (46,606) (109,228)
Interest paid oil notes payable (29,533) (29,533)
Purchase of capital assets -(-1 62.02) 6,902)
Net cash used in capital and related financing activities -0-9.8j.5.7-) (.4-7.239.6.) ..�Jj�,6�6.1)
Cash Flows from Investing Activities
Proceeds from maturities ofinvestments 1,600,000 - 1,600,000
Purchase of investments (1,600,000) - (1,600,000)
Interest oil investments 8,131 21 8,152
Net cash provided by investing activities 8,131 21 8,152
Net increase(decrease) in cash and cash equivalents 51,840 65,384 117,224
Cash and cash equivalents at beginning of year(including
restricted cash and cash equivalents) 626,348 551,931 1,178,279
Cash and cash equivalents at end of year(including
restricted cash and cash equivalents) 6M 188 $ 617,315 $ 1,295,503
Reconciliation of Operating Income to Net Cash
Provided by Operating Activities
Operating income $ 106,103 88,810 $ 194,913
Adjustments to reconcile operating income to net cash
provided by operating activities:
Depreciation expense 34,397 15,639 50,036
Change in assets arid liabilities:
Receivables,net (13) (756) (769)
Prepaid expenses (191) - (191)
Accounts and other payables 11,686 9,198 20,884
Deferred revenue 94 13 J8
_____L222)
Net cash provided by operating activities 152,066 S 112,669 264,735
See accompanying notes to the basic financial statements,
44 -
COUNTY OF FIAWAII
Fiduciary Funds
Statement of Fiduciary Net Position
June 30,2019
Private-
Purpose Agency
Trusts Funds
Assets
Cash and cash equivalents(note 3) $ 1,009,484 S 4,318,542
Investments(note 3) 3,625,610 645,009
Receivables:
Due from other agency funds - 7,242
Other receivables 5,845 52,470
Total receivables 5,84559,712
...............,--..............
Total assets 4,640,939 $ 5,023,263
Liabilities
Vouchers payable - 76,315
Due to other agency funds - 7,242
Accrued liabilities - 3,116,482
Advances payable - 353,956
Assets held for the benefit of improvement districts - 1,469,268
Total liabilities - $ 5,023,263
Net Position
Held in trust for other parties 4,640,9391,
Total net position S 4,640,939
See.accompanying notes to the basic financial statements,
-45 -
COUNTY OF HAWAII
Fiduciary Funds
Statement of Changes in Fiduciary Net Position
For the Fiscal Year Ended June 30,2019
Private-
Purpose
TrUAS
.................................................................
Additions
Contributions:
Puna Geothermal Venture $ 50,000
Investment earnings:
Net increase in fair value of investments 105,684
Dividends and interest 71,056
---------------—
Total additions 226,740
Deductions
Claims Consultant 293,760
Grant payments 94,418
Investment Fees 13,495
Total deductions 401,673
Change in net position (174,933)
Net position,beginning of year 4,815,872
Net position,end or year $ 4,640,939
See accompanying notes to the basic financial statements,
-46.
COUNTY OF HAWAI'l
Notes to the Basic Financial Statements
June 30, 2019
The accounting policies of the County of Hawaii (tile County)conform to U.S. generally accepted
accounting principles(GAAP) as applicable to local governmental units. The following notes to
the basic financial staternents are an integral part of the County's Comprehensive Annual Financial
Report(CAFR).
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Financial Reporting Entity
The County has implemented Governmental Accounting Standards Board Statement No. 14,
The Financial Reporting Entity(GASB Statement No. 14), Statement No. 39, Determining
Whether Certain Orgonizations Are Component Units (GASB Statement No. 39) and
Statement No. 61, The Financial Reporting Entity: Omnibus an amendment ref GASB
Statements No. 14 and 34(GASB Statement No. 61). All organizations, activities or functions
that meet the criteria in GASB Statement No. 14,No. 39 and No. 61 for inclusion in the
reporting entity are included ill the County's basic financial statements.
Primary Government The County operates under the Mayor-Council form of government
under a charter that became effective oil January 2, 1969, and was amended in 1979, 1982,
1990 and 2000. The County's operations are organized by the following functions: general
government; public safety; highways and streets; sanitation; health,education and welfare;
Culture and recreation; pension and retirement contributions; health fund; miscellaneous;
capital outlay; and debt service, The State of Hawaii (tile State) assumes full responsibility
for several major functions Usually performed by local governments, including education,
welfare, health and judicial functions. There are no separate city, county or township
governments nor any school districts, special districts, authorities 01-public corporations with
overlapping authority,
GASB Statement No. 14, as amended, defines component units as legally separate
organizations for which the elected officials of the primary government are financially
accountable or for which the primary government may determine, through exercise of
management's professional judgment, that the inclusion of all organization that does not meet
the financial accountability criteria is necessary in order to prevent the reporting entity's
financial statements from being misleading. "Financial accountability" is the level of
accountability that exists if a primary government appoints a voting majority of all
organization's governing board or if the organization is fiscally dependent on the primary
government and is either able to impose its will on that organization or there is a potential for
the organization to provide specific financial benefits to, or impose specific financial burdens
on, the primary government. A primary government has the ability to impose its will on all
organization if it can significantly influence the programs, projects, activities or level of
services performed or provided by the organization. An organization has a financial benefit or
burden relationship with the primary government if any one of three conditions exist: (1)The
primary government is legally entitled to or can otherwise access the organization's resources;
(2)The primary government is legally obligated or has otherwise assumed the obligation to
- 47 -
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2019
finance the deficits of, or provide financial support to, the organization; or(3)The primary
government is obligated in some manner for the debt of the organization.
As required by GAAP as set forth in GASB Statement No. 14,No. 39 and No. 61,these basic
financial statements present the County of Hawaii (the primary government)and its
component unit,the Department of Water Supply(the Department). This component unit is
included in the County's reporting entity because of its financial relationship with the County.
Discretely Presented Component Unit The component unit column in the basic financial
statements includes the financial data of the Department,a legally independent agency of the
County that is accounted for as an enterprise fund. It is reported in a separate column to
emphasize that it is legally separate from the County. The members of the Water Board,the
governing body of the Department, are appointed by the Mayor of the County and confirmed
by the County Council. The Department is granted corporate powers by state statute and the
County Charter. Although the County does not have the authority to approve or modify the
Department's operational and capital budgets,the County has issued bonds on the
Department's behalf that are general obligations of the County. Because the County is
obligated to repay these bonds in the event of default by the Department, the County is
financially accountable for the debts of the Department. See Note 14 for component unit
disclosures for the Department. Complete financial statements of the Department can be
obtained from the Department of Water Supply, 345 KekEianad'a Street, Suite 20, Hilo,
Hawai'i 96720.
Basic Financial Statements
The basic financial statements include both government-wide(based on the County as a
whole)and fund financial statements. Both the government-wide and fund financial
statements(within the basic financial statements)categorize primary activities as either
governmental or business-type. In the government-wide statement of net position, both the
governmental and business-type activities columns(a)are presented on a consolidated basis
by column, (b)and are reflected, on a full accrual, economic resource basis, which
incorporates long-term assets and receivables as well as long-term debt and obligations.
The government-wide statement of activities reflects both the gross and net costs per
functional category(general government, public safety, highways and streets,etc.)which are
otherwise being supported by general government revenues(property taxes, certain
intergovernmental revenues, etc.). The statement of activities reduces gross expenses
(including depreciation) by related program revenues, operating and capital grants. The
prograrn revenues must be directly associated with the function (general government, public
safety, highways and streets, etc.)or a business-type activity. The operating grants include
operating-specific and discretionary (either operating or capital) grants while the capital grants
column reflects capital-specific grants. The net cost(by function or business-type activity) is
normally covered by general revenues.
_ 48 -
COUNTY OF HAWAII
Notes tote Basic Financial Statements
June 30, 2019
The government-wide focus is more on the sustainability of the County as an entity and the
change in aggregate financial position resulting from the activities of the fiscal period.
The fund financial statements' emphasis is on the major funds in either the governmental or
business-type categories. Nonmajor funds(by category)are summarized into a single column.
The governmental funds in the fund financial statements are presented using the current
financial resource focus and modified accrual basis of accounting. This is the manner in
which these funds are normally budgeted. This presentation is deemed most appropriate to(a)
demonstrate legal and covenant compliance, (b)demonstrate the source and use of liquid
resources, and (c)demonstrate how the County's actual experience conforms to the budget
fiscal plan. Since the governmental fund statements are presented using a different
measurement focus and basis of accounting than the government-wide statements'
governmental activities column, a reconciliation is presented on the page following each
statement, which briefly explains the adjustments necessary to transform the fund based
financial statements into the governmental activities column of the government-wide
presentation.
The County's fiduciary funds are presented in the fund financial statements by type(private
purpose and agency). Since by definition these assets are being held for the benefit of a third
party(private parties, state government, etc.)and cannot be used to address activities or
obligations of the government,these funds are not incorporated into the government-wide
statements.
Government-witle antIfund financial statements—The government-wide financial
statements(i.e., the statement of net position and the statement of activities)report
information on all of the nonfiduciary activities of the primary government and its component
unit. The effect of interfund activity has been removed from these statements during the
process of incorporating fund data but interfund services provided and used have not been
eliminated in the process of consolidation. Governmental activities, which normally are
supported by taxes and intergovernmental revenues, are reported separately from business-
type activities, which rely to a significant extent on fees and charges for support. Likewise,
the primary government is reported separately from certain legally separate component units
for which the primary government is financially accountable.
The statement of activities demonstrates the degree to which the direct expenses of a given
function or segment are offset by program revenues. Direct expenses are those that are clearly
identifiable with a specific function or segment. Program revenues include(a)charges to
customers or applicants who purchase, use, or directly benefit from goods, services, or
privileges provided by a given function or segment and(b)grants and contributions that are
restricted to meeting the operational or capital requirements of a particular function or
segment. Taxes and other items not included among program revenues are reported instead as
general revenues.
- 49 ®
COUNTY OF HAWAVI
Notes tathe Basic Financial Statements
June 30, 2019
Separate financial statements are provided for governmental funds, proprietary funds, and
fiduciary funds, even though the latter are excluded from the govemment-wide financial
statements. Major individual governmental funds and major individual enterprise funds are
reported as separate columns in the fund financial statements.
Activities in funds—The financial transactions of the County are recorded in individual funds.
Each fund is accounted for by providing a separate set of self-balancing accounts that
comprises its assets, deferred outflows of resources, liabilities, deferred inflows of resources,
reserves, fund equity, revenues and expend itures/expenses. The various funds are reported by
generic classification within the financial statements.
GASB Statement No. 34,Basic FinancialStalenients and Managetneill's Discussion and
Analysis for®Stale and Local Governments, sets forth minimum criteria(percentage of the
assets, deferred outflows of resources, liabilities, deferred inflows of resources, revenues or
expend itures/expenses of either fund category or the governmental and enterprise combined)
for the determination of major funds. The nonmajor funds are combined in a column in the
fund financial statements and detailed in the combining section.
The County reports the following major governmental funds:
General Fund—The general fund is the general operating fund of the County. Itisused
to account for all activities of the general government, except those required to be
accounted for in other funds.
Capital Projects Fund—Used to account for the costs of constructing County capital
improvements financed with general obligation bond proceeds, federal and state grants,
and general and special revenue fund revenues. The capital projects fund is used to
account for financial resources to be used for the acquisition or construction of major
general government capital facilities and infrastructure(other than those financed by
proprietary funds and trust funds)when separate project centers are needed to control
costs.
The County reports the following major proprietary funds:
rrla'inran®Elderly Housing Project—Used to account for the operation of a rental
housing project for low-income senior citizens located north of Hilo.
Ouli EkahiAffordable Housing Project—Used to account for the operation of a 33-unit
single-family affordable rental housing project located in Waimea.
- 50 -
COUNTY OF HAWAII
Notes tote Basic Financial Statements
June 30, 2019
The County reports the following fiduciary funds:
Private-Purpose Trust Funds—Used to account for funds received from geothen-nal
developers to mitigate the effects of geothermal energy development. Also used to
account for investment income on funds received from import businesses at the port of
Hilo and the related expenditures to promote health and safety on the Island of Hawaii.
Agency Funds—Used to account for assets held by the County for other governmental
units and individuals. The agency funds are custodial in nature and do not involve
measurement of results of operations. The County has the following agency funds:
• State Weight Tax Fund
• Improvement District No. 18 Fund
• Improvement District No. 19 Fund
• Improvement District No. 20 Fund
• Improvement District Revolving Fund
• Performance and Refundable Deposits Fund
• Payroll Clearance Fund
• Flexible Spending Account
• Lapsed Warrants Fund
• Non-Profit License Plates Fund
• Organ and Tissue Education Fund
• Business Improvement District I-Kailua
Basis of Accounting
Basis of accounting refers to the period in which revenues and expenditures(or expenses)are
recognized in the accounts and reported in the basic financial statements. Basis of accounting
relates to the timing of the measurements made, regardless of the measurement focus applied.
The government-wide financial statements and the proprietary, fiduciary and component unit
fund financial statements are presented on an accrual basis of accounting. The governmental
funds in the fund financial statements are presented on a modified accrual basis.
Accrual Basis- Revenues are recognized when earned and expenses are recognized when the
related obligation is incurred.
Modified Accrual Basis- Revenues are recorded when susceptible to accrual (that is, both
measurable and available). "Measurable" means the amounts are determinable. "Available"
means the amounts are collectible within the current period or soon enough thereafter(one
year for intergovernmental revenues)to be used to pay liabilities of the current period.
- 5I -
COUNTY OF HAWAVI
Notes tote Basic Financial Statements
June 30, 2019
Licenses and permits, charges for current services, fines and forfeitures, penalties and
miscellaneous revenues are recorded as revenues when received in cash because they are
generally not measurable until actually received. Real property taxes and State Revolving
Fund loan proceeds are considered available when collected.
In applying the susceptible to accrual concept to intergovernmental revenues,the legal and
contractual requirements of the numerous individual programs are used as guidance. There
are essentially two types of these revenues. In one, monies must be expended oil the specific
purpose or project before any amounts will be paid to the County; therefore, revenues are
recognized based upon the expenditures recorded. Most construction grants and many
operating grants fall into this category. In the other, monies are virtually unrestricted as to
purpose of expenditure and are usually revocable only for failure to comply with prescribed
compliance requirements. These resources are reflected as revenues at the time of receipt or
earlier if the susceptible to accrual criteria are met.
The County reports deferred inflow of resources in its fund financial statements(see Note 7).
Deferred inflows of resources arise when potential revenue does not rneet both the
"measurable" and "available" criteria for recognition in the current period. In subsequent
periods, when both revenue recognition criteria are met, the deferred inflow is removed from
the fund financial statements and revenue is recognized.
Expenditures are recognized under the modified accrual basis of accounting in the accounting
period in which the fund liability is incurred. Exceptions to this general rule include:
(a)accumulated compensated absences and claims and judgments which are recognized as
expenditures when paid; (b) liabilities related to municipal solid waste landfill closure and
postclosure care costs; (c) principal and interest on general long-term debt which are
recognized as expenditures when due; and (d) liabilities relating to pollution remediation .
The County applies all applicable GASB pronouncements, including the adoption of GASB
Statement No. 62, Codification ofAccounling and Financial Reporting Guidance Contained
in Pre-November 30, 1989 FASB (Financial Accounting Standards Board) and AICPA
(American Inslittile of Certified Public Accowilants) Pronouncements.
Encumbrances
The general, special revenue, and capital projects funds follow encumbrance accounting under
which purchase orders, contracts and other commitments are recorded as an obligation of fund
balance and provide authority for the carryover of appropriations to the subsequent year in
order to complete these transactions. Encumbrances outstanding at year-end are included in
the respective fund balance categories as appropriate and do not constitute expenditures or
liabilities because the commitments will be honored during the subsequent year.
- 52 -
COUNTY OF HAWAPI
Notes tote Basic Financial Statements
June 30, 2019
Cash and Investments
Cash and cash equivalents include cash on hand,amounts in demand deposits and savings
accounts, and short-tenn investments with a maturity date of three months or less from the
date acquired by the County.
Investments consist of certificates of deposit, repurchase agreements, and securities with
original maturities exceeding three months. These include participating investment contracts
(U.S. government sponsored agency issues and negotiable certificates of deposit)as well as
nonparticipating investment contracts(time certificates of deposit and repurchase agreements).
Both categories of investments are stated at fair value(see Note 3). Valuations of investments
in government sponsored enterprises such as Federal National Mortgage Association (Fannie
Mae)and Federal Home Loan Mortgage Corporation(Freddie Mae)are based on quoted
market rates. Investments also consist of equity securities in the fiduciary fund financial
statements. These investments are stated at fair value based on closing quoted prices.
Real Property Taxes
The County's real property taxes are levied on July I each year on assessed valuation as of
January 1. The taxes becorne a lien on the property assessed as of the levy date. Taxes are
due and payable in two equal annual installments on August 20 and February 20. Accordingly,
real property taxes receivable as of June 30 are delinquent. Each delinquent installment bears
interest at I% per month and penalties of up to 10%of the amount due. Assessments are
based on 1009,'o of estimated fair market values prior to the application of exemptions or
preferential assessments.
The County provides real property tax abatement under five programs , Enterprise Zone,
Historic Residential Dedication, Low and Moderate Income Housing, Agricultural Use
Programs, and Solar Water Heater Credit:
Enterprise one Exemption - Section 19-89.3 of the Hawaii County Code provides buildings
or other like structures which are built as a result of new construction by a qualified business
within an enterprise zone to be exempt except for the minimum tax from real property taxes
for a period of three years. The purpose of this program is to stimulate business and industrial
growth. A qualified business in an enterprise zone must satisfy the requirements of Chapter 31
of the Hawaii County Code and section 208E, Hawaii Revised Statutes.
Historic Residential Dedication Exemption Section 19-89.1 of the Hawaii County Code
and Rule 36 of the Rules and Regulations of the Director of Finance provides an exemption to
encourage the preservation of residential structures that have been placed on the Hawaii
Register of Historic Places after January 1, 1977. The property owner must provide visual
access on a year-round basis or open the property to the public for twelve days per year. The
owner certifies the current level of taxation is a material factor which threatens the continued
existence of the historic status. This dedication is for a minimum period of ten years,
- 53 -
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2019
automatically renewable indefinitely. Cancellation of the dedication by either the owner or
the Director of Finance may only be made upon five years' written advance notice and no
earlier than the end of the fifth tax year. Any person who becomes an owner of the dedicated
real property shall be subject to the restrictions and retroactive tax assessment provisions. If
the dedication is approved, the exemption based upon the dedication shall be effective July I
of the tax year following the approval of the dedication. The dedicated exempt property or
portion of the property approved shall be subject to the minimum tax provisions of Section 19-
90(e) of the Hawaii County Code. If there is a breach in the agreement,the property would be
subject to roll back taxes, including penalty and interest.
Low and Moderate-Income Housing Exemption—Section 19-87 of the Hawaii County Code
and Rule 37 of the Rules and Regulations of the Director of Finance provides an exemption
for a housing project which is owned and operated by a nonprofit or limited distribution
mortgagor or by a qualified entity from taxation. Must participate in long-ten-n housing
project that have regulatory agreements mandating rent levels,occupancy of the project is
limited to the elderly, handicapped, low or moderate income families. Applicants must submit
an application form along with a copy of the recorded regulatory agreement. The exemption
is equal to 100%of the assessed value for the portion of the real property that is dedicated as
low- and moderate-income rentals. If the entire property is dedicated, then the net taxable is
zero but the property is still subject to the minimum tax per Section 19-90(e)of the Hawai'i
County Code. The exemption shall continue so long as the rental housing project is owned
and operated by a nonprofit or limited mortgagor. If the rental units do not comply with the
regulatory conditions, the property would be subject to roll back taxes, including penalty and
interest.
Non Dedicated Agricultural Use Assessment—Section 19-57 of the Hawai'i County Code
and Rule 34 of the Rules and Regulations of the Director of Finance reduces assessments to
encourage local agricultural production as well as the preservation of agricultural lands that
could otherwise be further developed, by valuing these lands at the at two times the dedicate
agricultural use value as opposed to the market value. Unlike the Dedicated Agricultural Use
program, the zoning for this program must be agricultural. An application form must be filed
along with a plot plan and provide details as to what agricultural activities is conducted on the
property. Upon review and approval, the application is effective as of January I for the
following tax year. Renewal of the application shall be in such form and at such time as
requested by the director. Valuation consideration is given to the type of agricultural activity.
Any breach to the terms of would result in an immediate rollback calculation of current plus
two yeas taxes plus penalties and interest.
CommercialAgricuftural Use Dedication -- Section 19-60 of the Hawaii County Code and
Rule 31 of the Rules and Regulations of the Director of Finance provides reduced assessments
to encourage local agricultural production as well as the preservation of agricultural lands that
could otherwise be further developed, by valuing the dedicated lands at the agricultural use
value as opposed to the market value. An application form must be filed along with a plot
plan and provide details as to what agricultural activities is conducted on the property. Upon
- 54 -
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2019
review and approval,the owner is required to record the dedication at the Bureau of
Conveyances. There is Currently only one available dedication length which is a 10 year
period, however, previously there was a 20 year dedication. This dedication does not
automatically renew. Valuation consideration is given to the type of agricultural activity.
Any breach to the terms of the recorded dedication would result in the cancellation of tile
dedication, or portion thereof, and the immediate rollback calculation of taxes plus penalties
and interest.
Solar Water Heater Credit- Section 19-104 of the Hawaii County Code provides a one time
tax credit per tax map key for up to $300 for the owner of real property who installs a solar
water heater on the owner's property on or after January 1, 2008. This program was created
with the purpose of providing an incentive to support renewable energy. The owner must
apply for the credit.
Information relevant to the disclosure of these programs for the fiscal year ended June 30,
2019 is as follows:
Tax Abatement Program Amount of Taxes Abated -as defined by GASB 77
Enterprise Zone $1,240.75
Historic Residential Dedication $219,565.30
Low and Moderate Income Housing $698,031.86
Agricultural Use Programs $30,370,074.48
Solar Water Heater Credit $25,121.77
Inventories
Inventories consist of materials and supplies and are reported as expenditures at the time of
purchase(purchase rnethod). Police and fire department inventories are stated using the first
in, first out(FIFO) method, Other inventories are stated at average cost,
Liquor Control
Section 281 of the Hawaii Revised Statutes requires that liquor license revenues collected be
used only for costs and expenses directly relating to operational and administrative costs
actually incurred by the liquor commission collecting such fees. The unexpended fees at
June 30, 2019 of$799,769 are reflected as a restriction of general fund balance.
- 55 -
COUNTY OF HAWAVI
Notes tote Basic Financial Statements
June 30, 2019
Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure assets(e.g., roads,
bridges, curbs and gutters, streets and sidewalks, drainage systems, lighting systems, and
similar items), are reported in the applicable governmental or business-type activities columns
in the government-wide financial statements. Capital assets are defined by the County as
assets with an initial, individual cost of more than $1,000 and an estimated useful life in
excess of one year. Such assets are recorded at historical cost or estimated historical cost if
purchased or constructed. Donated capital assets are recorded at acquisition value if available
or if not, at estimated fair market value at the date of donation.
The costs of normal maintenance and repairs that do not add to the value of the asset or
materially extend the life of the asset are not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are constructed.
Interest incurred during the construction phase of capital assets of business-type activities is
included as part of the capitalized value of the assets constructed.
Capital assets of the primary government and enterprise fund are depreciated using the
straight-line method over the following estimated useful lives of the assets:
Assets Years
Infrastructure 20 to 100 years
Buildings and improvements 50 to 100 years
Ground and site improvements 20 to 50 years
Equipment 5 to 40 years
Easements Dependent on to of easement agreement
Deferred Outflows of Resources and Deferred Inflows of Resources
Deferred outflows of resources represent a consumption of net position that applies to a future
period and will not be recognized as an outflow of resources (expense or expenditure) until
that time. The County has three items that qualifies for reporting in this category. The County
reports the deferred loss on refunding and deferred outflow related to both pensions and other
posternployrnent benefits (OPEB) as a deferred outflow of resources in its statement of net
position.
Deferred inflows of resources represent an acquisition of net position that applies to a future
period and will not be recognized as an inflow of resources(revenue)until that time. Property
taxes, fees and other non-exchange transactions received in the current fiscal year for the
ensuing fiscal year are reported as deferred inflows of resources. These amounts are deferred
and recognized as an inflow of resources in the period that the amounts become available.
The County also reports deferred inflows of resources related to both pensions and other
posternployrnent benefits (OPE ).
- 56 -
COUNTY OF HAWAVI
Notes to the Basic Financial Statements
June 30, 2019
Long-term Obligations
The County reports long-term debt of goverm-nental funds at face value on the government-
wide statement of net position. Certain other governmental fund obligations not expected to
be financed with current available resources are also reported on the government-wide
statement of net position. Long-term debt and other obligations financed by the proprietary
funds are reported as liabilities in those funds.
Compensated Absences
Employees earn vacation credit at the rate of one and three-quarter working days for each
month of service. Up to ninety days of vacation leave credits can be accumulated per
employee. In addition,employees who work overtime can elect to take compensatory time off
instead of overtime pay. The time off is earned at the rate of one-and-a-half hours for each
hour of overtime worked. There is no statutory limit to the amount of compensatory time off
an employee can accumulate. Both compensatory time off and vacation credits are converted
to pay upon termination of employment.
A liability for these amounts is reported in the governmental funds only if they have matured,
for example, as a result of employee resignations and retirements. All vacation and
compensatory time off pay is accrued in the government-wide statement of net position along
with the estimated liability for social security and Medicare taxes and employers' retirement
contributions on those amounts.
Sick leave accumulates without limit. Sick leave can be taken only in the event of illness and
is not convertible to pay upon termination of employment; therefore there is no related
liability. However, a County employee who retires or leaves government service in good
standing with 60 days or more of unused sick leave is entitled to additional service credit in
the Employees' Retirement System of the State of Hawai'i. Accumulated sick leave at
June 30, 2019 totaled $77,168,000 for the primary government.
Leases
Leases transferring substantially all of the risks and benefits of ownership are recorded as
capital leases-, other leases are operating leases(see Note 8). Capital leases are recorded as
capital asset additions at their estimated fair value at the inception of the lease and the related
present value of the future minimum lease obligations is recorded as long-term debt.
Operating lease expenditures and expenses are recognized when the lease obligation is paid.
Pensions
For purposes of measuring the net pension liability, deferred outflows of resources and
deferred inflows of resources related to pensions, and pension expense, information about the
fiduciary net position of the Employees' Retirement System of the State of Hawaii (ERS)and
- 57 -
COUNTY OF HAWAII
Notes tote Basic Financial Statements
June 30,2019
additions to and deductions from ERS's fiduciary net position have been determined on the
same basis as they are reported by ERS. For this purpose, benefit payments(including
refunds of employee contributions)are recognized when due and payable in accordance with
the benefit terms. Investments are reported at fair value.
Other Postemptoy ment Benefits(OPEB)
For the purposes of measuring the net OPE B liability, deferred outflows or resources and
deferred inflows of resources related to OPEB, and OPEB expense, information about the
fiduciary net position of the Hawaii Employer-Union Health Benefits Trust Fund ("EUTF")
and additions to/deductions from EUTF's fiduciary net position have been determined on the
same basis as they are reported for EUTF. For this purpose, EUTF recognizes benefit
payments when due and payable in accordance with the benefit terms. Investments are
reported at fair value, except for investments in commingled and money market funds, which
are reported at net asset value(NAV). The NAV is based on the fair value of the underlying
assets held by the respective fund less its liabilities.
Operating Revenues and Expenses
Revenues and expenses are distinguished between operating and nonoperating items for the
proprietary funds. Operating revenues generally result from providing services in connection
with the proprietary funds' principal ongoing operations. The principal operating revenues of
the proprietary funds are fees charged to residents for rent and rental subsidies received from
the federal government.
Operating expenses include the costs associated with providing housing for tenants, such as
utilities, lease rent, and maintenance and repairs; administrative expenses; and depreciation on
capital assets. All revenues and expenses not meeting these definitions are reported as
nonoperating revenues and expenses.
Use of Estimates
The preparation of the basic financial statements in accordance with GAAP requires
management to make estimates and assumptions that affect the reported amounts of assets,
deferred outflows of resources, liabilities, and deferred inflows of resources,as well as
disclosure of contingent assets and liabilities at the date of the financial statements, and the
reported amounts of revenues, expenditures,and other financing sources and uses during the
reporting period. Actual results could differ from those estimates.
Fund Balances
When both restricted and unrestricted fund balances are available for use, it is the County's
policy to use restricted fund balance first, then unrestricted fund balance. Furthermore,
committed fund balances are reduced first, followed by assigned amounts, and then
- 58 -
COUNTY OF HAWAII
Notes tate Basic Financial Statements
June 30, 2019
unassigned amounts when expenditures are incurred for purposes for which amounts in any of
those unrestricted fund balance classifications can be used.
The County reports the following classifications:
Nonspendable Fund Balance—Nonspendable fund balances are amounts that cannot be
spent because they are either not in spendable form, or, for legal or contractual reasons,
must be kept intact. The County has inventory included in their nonspendable fund
balance.
Restricted Fund Balance Constraints placed on the use of these resources are either
externally imposed by creditors(Such as through debt covenants), grantors, contributors
or other governments or are imposed by law(under the Hawaii Revised Statutes or
County of Hawaii Charter).
Committed Fund Balance - Committed Fund Balances are amounts that can only be used
for specific purposes as a result of constraints imposed by the County Council via
ordinances and the County Code and can only be undone via the same manner. The
committed fund balance of the General Fund includes the portion of fund balance
committed to budget stabilization. The budget stabilization portion is authorized under
County Code §2-219 to §2-223 and additions are made via the County budget or
subsequent budget amendments. The fund balance may only be used when there is a
reduction in budgeted revenue and the director of finance detennines that such use is
necessary to prevent a reduction in the level of public services.
Assigned Fund Balance—Assigned fund balances are amounts that are constrained by the
County's intent as determined by the Mayor but are neither restricted nor committed.
The County's only assigned fund balances are in the General Fund and Capital Projects
Fund and the majority consists of the portion of fund balance that is intended to balance
the subsequent year's budget, which is conveyed by the Mayor via his approval of
allotment requests and his approval of the current year's fund balance amount to be
included in the submittal for next year's annual budget ordinance.
Unassigned Fund Balance— This is the residual classification of the General Fund. The
General Fund is the only fund that could potentially report a positive unassigned fund
balance.
The category of Other for the Restricted, Committed and Assigned fund balances on the
Governmental Funds Balance Sheet include funds restricted for the purposes of housing and
rental assistance; parks and recreation projects; general and public safety facilities; liquor
control;taxicab investigations; special duty officers and sewer loan programs.
- 59 -
COUNTY OF HAWAVI
Notes tote Basic Financial Statements
June 30, 2019
Net Position
'✓hen both restricted and unrestricted net position are available for use, it is the County's
policy to use restricted net position first, and then unrestricted net position.
New Accounting Pronouncements
In November 2016, GASB issued Statement No. 83, Certain Asset Retirement Obligations.
This Statement addresses accounting and financial reporting for certain asset retirement
obligations ("ARC)s"). An ARO is a legally enforceable liability associated with the retirement
of a tangible capital asset. A government that has legal obligations to perform future asset
retirement activities related to its tangible capital assets should recognize a liability based on
the guidance in this Statement. The requirements of this Statement are effective for reporting
periods beginning after June 15, 2018. Management has determined that this Statement does
not have a material impact on the County's financial statements.
In January 2017,GASB issued Statement No. 84,Fiduciaty Activities. The principal
objective of this Statement is to enhance the consistency and comparability fiduciary activity
reporting by state and local governments. The requirements of this Statement are effective for
reporting periods beginning after December 15, 2018. The County has not yet determined the
effect this Statement will have on its financial statements.
In June 2017,GASB issued Statement No. 87,Leases. The objective of this Statement is to
better meet the information needs of financial statement users by improving accounting and
financial reporting for leases by governments. The requirements of this Statement are
effective for reporting periods beginning after December 15,2019. The County has not yet
determined the effect this Statement will have on its financial statements.
In March 2018, GASB issued Statement No. 88, Certain Disclosures Related to Debt,
including Direct Borrowings and Direct Placements. The objective of this Statement is to
improve the information that is disclosed in notes to government financial statements, related
to debt, including direct borrowings and direct placements. The requirements of this
Statement are effective for reporting periods beginning after June 15, 2018. The County
implemented these requirements for the fiscal year ended June 30, 2019.
In June 2018,GASB issued Statement No. 89,Accounting.for Interest Cost Incurred Before
the End qfaConstruction Period The objectives of this Statement are(])to enhance the
relevance and comparability of information about capital assets and the cost of borrowing for
a reporting period and(2)to simplify accounting for interest cost incurred before the end of a
construction period. The requirements of this Statement are effective for reporting periods
beginning after December 15, 2019. The County has not yet determined the effect this
Statement will have on its financial statements.
- 60 ®
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2019
In August 2018, GAS13 issued Statement No. 90,Majority Equity Interests-An Amendment of
GASB Statements No. 14 and No. 61. The objectives of this Statement are to improve the
consistency and comparability of reporting a government's majority equity interest in a legally
separate organization and to improve the relevance of financial statement information for
certain component units. The requirements of this Statement are effective for reporting
periods beginning after December 15, 2018. The County has not yet determined the effect this
Statement will have on its financial statements.
In May 2019, GASB issued Statement No. 91, Conduit Debt Obligations. The objectives of
this Statement are to provide a single method of reporting conduit debt obligations by issuers.
The requirements of this Statement are effective for reporting periods beginning after
December 15, 2020. The County has not yet determined the effect this Statement will have on
its financial statements.
2. STEWARDSHIP,COMPLIANCE AND ACCOUNTABILITY
Annual Budget
The County follows these procedures in establishing its operating and capital budgets:
• On or before March 1, the Mayor submits to the County Council proposed operating and
capital projects budgets for the fiscal year commencing the following July 1. The
operating budget includes proposed expenditures for the general fund and special revenue
funds, and the means of financing them. A project-length budget is submitted to the
County Council for the capital projects fund.
• The Mayor submits to the County Council amendments to the proposed operating and
capital budgets within ten working days after the close of the state legislature, but not
later than May 5.
• The County Council conducts public hearings on the proposed operating and capital
budgets after March I but prior to the first reading on the budget bills, which must be
after May 5.
• On or before June 30,the County Council adopts the budgets. The legal level of
budgetary control is the department level because the Mayor can transfer funds from any
unencumbered appropriation to another within a department or agency without County
Council approval. During the year,the budget may be amended by action of the County
Council, except for appropriations required by law and appropriations for debt service,
which may not be decreased or deleted. Supplemental appropriations were made during
the 2016-2017 fiscal year to recognize revenue from sources not anticipated at the time of
the original budget and to establish the authorization for such funds to be expended.
Such supplemental appropriations totaled $7.7 million in the general fund and $3.3
million in the special revenue funds. Legally adopted budgets include the General Fund,
- 61 -
COUNTY OF HAWAVI
Notes tote Basic Financial Statements
June 30, 2019
Highway Fund, Sewer Fund, Solid Waste Fund,Cemetery Fund, Parking Meter Fund,
Vehicle Disposal Fund, Bikeway Fund, Workforce Investment Act Fund, Golf Course
Fund, Geothermal Relocation and Community Benefits Fund, Beautification Fund,
Hawaii County Housing Agency Fund, Park Dedication Fund, General Excise Tax Fund,
and Short-Term Vacation Rental Enforcement Fund.
• Appropriations for the operating budget lapse at the end of the fiscal year to the extent
that they have not been expended or encumbered. Appropriations for capital
expenditures that are not encumbered lapse at the end of two fiscal years following the
fiscal year that the appropriation was made.
• Formal budgetary integration is employed as a management control device during the
year for the General Fund, special revenue funds, and Capital Projects Fund. Formal
budgetary integration is not employed for debt service funds because effective budgetary
control is alternatively achieved through general obligation bond indenture provisions.
• The accompanying statement of revenues, expenditures and changes in fund balances
budget and actual (budgetary basis)for the General Fund presents a comparison of the
legally adopted budget with actual data on a budgetary basis. Accounting principles
applied for purposes of developing data on a budgetary basis differ significantly from
those used to present financial statements in conforillity with GAAP. On the budgetary
basis, intergovernmental revenues are recognized when awarded by the granting agency,
encumbrances and unexpended allotments are treated as expenditures, accounts payable
are not accrued, and all leases are treated as operating leases. In preparing the financial
statements on a GAAP basis, accounts payable are accrued and treated as a reduction of
encumbrances for balance sheet presentation.
Budget to GAAP Reconciliation
The following is a summary of the adjustments necessary to convert fund balances of the
County's General Fund from a GAAP basis to a budgetary basis at June 30, 2019:
Ending fund balance—GAAP basis $76,188,742
Encumbrance adjustments:
Beginning encumbrances and unexpended allotments 1,915,855
Ending encumbrances and unexpended allotments (1,156,030)
Other adjustments —(EI88.602)
Ending fund balance—Non-GAAP budgetary basis $67,1()9,9()5
® CASH AND INVESTMENTS
The Director of Finance is responsible for the safekeeping of all monies paid to the County.
The Director of Finance invests any monies of the County which in the Director's judgment
are in excess of the amounts necessary for meeting the day-to-day operating needs of the
- 62 -
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2019
County. Under Section 46-50 of the Hawaii Revised Statutes, legally authorized investments
include obligations of or guaranteed by the U.S. government, obligations of the State,
federally insured savings and checking accounts,time certificates of deposit, and repurchase
agreements with federally insured financial institutions.
Cash
The County maintains a number of checking and savings accounts for various funds and with
various financial institutions. Bank deposits are under the custody of the Director of Finance.
For financial statement reporting purposes, cash and short-term investments consist of cash
and money market accounts. Cash and short-term investments also include repurchase
agreements, certificates of deposit,and government sponsored securities with original
maturities of three months or less.
The carrying amount of the County's deposits(cash,time certificates of deposit, and money
market accounts)as of June 30, 2019 was $243,317,332 for the primary government and
$5,803,086 for the fiduciary funds.
Information relating to bank balance, insurance and collateral of cash deposits is determined
on a county-wide basis. Total bank balances of deposits for the primary government and
fiduciary funds amounted to $257,028,236 at June 30,2019. Of that amount, $255,767,477
represents bank balances covered by federal deposit insurance or by collateral held by the
County's fiscal agents in the name of the County. The remaining bank balances of$1,260,759
represent deposits held by a management agent and were unco I lateral ized. Accordingly,these
deposits were exposed to custodial credit risk. Custodial credit risk is the risk that in the event
of a bank failure,the County's deposits may not be returned to it. For checking and savings
accounts,time certificates of deposit, and repurchase agreements,the County requires, in
accordance with State statutes,that the depository banks pledge collateral based on the
available bank balances for the protection of the funds deposited. All securities pledged as
collateral are held by the County's fiscal agents in the name of the County. The County also
requires that no more than 60% of the County's total funds available for deposit may be
deposited in any one financial institution, in accordance with State statutes.
Investments
The County holds investments both for its own benefit and on behalf of some of the fiduciary
funds. The County's investments of funds not required for immediate payments are
predominately comprised of government sponsored securities(equivalent to the rating in U.S.
Treasuries), repurchase agreements and certificates of deposit, while the fiduciary funds also
hold equity securities.
- 63 -
COUNTY OF HAWAPI
Notes tote Basic Financial Statements
June 30,2019
The framework for measuring fair value provides a fair value hierarchy that prioritizes the
inputs to valuation techniques used to measure fair value. The hierarchy gives the highest
priority to unadjusted quoted prices in active markets for identical assets or liabilities(level I)
and the lowest priority to unobservable inputs (level 3), The three levels of the fair value
hierarchy are described as follows:
Level I —Inputs are quoted prices(unadjusted) in active markets for identical assets or
liabilities that a government can access at the measurement date. Ali active market is a
market in which transactions for the asset or liability take place with sufficient frequency
and volume to provide pricing information on an ongoing basis.
Level 2—Inputs other than quoted prices included within level I that are observable for
an asset or liability, either directly or indirectly. If the asset or liability has a specified
(contractual)term, a level 2 input must be observable for most of the full term of the asset
or liability. Level 2 inputs include:
• Quoted prices for similar assets or liabilities in active markets,
® Quoted prices for identical assets or liabilities in markets that are not active,
• Inputs other than quoted prices that are observable for the asset or liability,
• Inputs that are derived principally from or corroborated by observable market
data by correlation or other means.
Level 3 —Inputs are unobservable for an asset or liability.
Following is a description of the valuation techniques used by the County to measure fair
value:
Government sponsored securities of$27,002,280 and certificates of deposits of
$41,296,655: Valued using quoted prices for identical or similar assets in markets that are
not active(Level 2).
Equity securities of$1,708,073: Valued using quoted prices in active markets for
identical assets or liabilities that a government can access at the measurement date(Level
I
- 64 -
COUNTY OF HAWAVI
Notes to the Basic Financial Statements
June 30, 2019
The County's investments and maturities at June 30, 2019 are as follows:
Maturity in ears
Fair Value Less than 1 1 —5
Investments- Primary Government:
Certificates of deposit $ 40,821,595 $ 33,137,273 $ 7,684,322
Government sponsored securities 24,914,794 2987620 21,92�71 74
$ 65,736,389 $36,124,893 $29,�6;I11_,496
Investments— Private-Purpose Trusts:
Government sponsored securities $ 1,917,537 $ $ 1,917,537
Equity securities 1..,,70,8,073 _j,708,073
$ 1,917,537
Investments Agency Funds:
Certificates of deposit $ 475,060 $ 225,000 $ 250,060
Government sponsored securities 169,949 - 169,949
$ 6411909 $ 2125,000 $ 420,009
Interest Rate Risk: The County minimizes its exposure to interest rate risk by limiting the
maturities of investments to five years or less in compliance with state statute, The County's
policy is to hold investments until maturity and does not engage in trading for capital gains.
Credit Risk: The County's investment portfolio primarily consists of U,S. government or
agency obligations, bonds of government sponsored enterprises,time certificates of deposit
and repurchase agreements. These investments are either insured by the FDIC, secured by
collateral or carry a credit rating equivalent to U.S. Treasuries,
Custodial Ri.sk: Custodial risk is the risk of loss from the failure of the counterparty, which is
defined as any entity that obtained an investment on behalf of the County. All of the County's
deposits including repurchase agreements are secured by collateral which is kept by a third
party custodian. Broker-dealers utilized by the County are members of the Securities Investor
Protection Corporation, and all investment securities are held in the County's narne.
Coticentralion ql'Cretlil Risk: State law limits deposits to no more than 60% of the total in
any one depository. The County seeks to further diversify its portfolio by purchasing from
different issuers, by purchasing different types of investments and by purchasing investments
at different maturities. The County also purchases its investments frorn a number of banks
and broker-dealers both located locally and on the mainland. As of June 30, 2019,
investments were distributed as follows: FTN Financial, 3.2%; Multi Bank Securities, 113%;
First Hawaiian Batik, 17.9%; Raymond Jarnes, 3.2%; Stifel Nicolaus& Company, 3.5%; Batik
of Hawaii, 20.7%; Territorial Savings 17.4%; US Bank, 6.3% and Central Pacific Bank,
16.5%.
- 65 -
COUNTY OAWAPI
Notes tothe Basic Financial Statements
June 30, 2019
Restricted Cash and Cash Equivalents and Investments
Cash and cash equivalents and investments classified as restricted assets for the primary
government at June 30, 2019 amounted to $154,564,494.
Construction related contributions restricted to various capital improvement projects and fuel
tax funds received are recorded as restricted assets in the Capital Projects Fund. Such funds
totaled $78,305,698 at June 30, 2019.
Cash and investments in the Bond Redemption Fund and the Interest Fund are restricted to
debt service related payments and amounted to $33,451,486.
Cash in the Highway Fund, Bikeway Fund, General Excise Tax and Beautification Fund are
restricted to costs incurred relating to highways and streets and the beautification of such
items and amounted to $14,227,015.
Cash in the Hawaii County Housing Agency and Short-term Vacation Rental Enforcement
Fund classified as restricted to provide public housing assistance and housing rules
enforcement amounted to $1,833,970.
The restricted cash and investments in the General Fund was comprised of cash restricted to
costs incurred to administer the liquor commission and cash restricted to the acquisition and
maintenance of lands or property entitlements for public outdoor recreation and education.
Such amounts totaled $799,769 and $25,831,368, respectively.
Tenant security deposits received by the County for the Kula'imano Elderly Housing Project
and the Ouli Ekahi Affordable Housing Project are recorded as restricted assets. Such funds
amounted to$13,015 and $29,499, respectively, at June 30, 2019.
An operating reserve fund was established by the Ouli Ekahi Affordable Housing Project
pursuant to an agreement with the Hawaii Housing Finance and Development Corporation,
who are the holders of the project's note. This restricted reserve amounted to $72,674 at June
30, 2019.
- 66 -
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30,2019
4, GENA LETS
Receivables as of June 30, 2019, for the County's individual major funds and other funds in
the aggregate, including the applicable allowances for uncollectible accounts, are as follows:
Governmental activities:
Capital Other
General Projects Governmental
Fund Fund Funds Total
Real property taxes $30,604,707 $ $ $30,604,707
Accounts receivable:
Sewer 2,307,228 2,307,228
Solid waste 1,632,145 1,632,145
Intergovernmental 22,463,58 58 7,91�31 99 13643,040 44,019797
_ -_
Gross receivables 53,068,265 7,913,199 17,582,413 78,563,877
Less: allowance for
uncollectibles 1104
,5408 ,8
) — (755,2871 -(L42-927)
Net total receivables $41,39—M 2 6S -7 _6 JJ_ 5_Q
3,_ &=Zalj!�L S2L_.!,Q_
During fiscal year 2005, the County issued $3,887,493 in general obligation bonds on behalf
of Improvement District No. 18, an agency fund. Oil February 12, 2013 bonds were issued to
refund the outstanding principal balance of$1,345,945 for the Improvement District. During
fiscal year 2014 and 2015, the County also issued $448,669 and $720,331, respectively, in
general obligation bonds on behalf of Improvement District No. 19, an agency fund. At June
30, 2019,the outstanding balance for both Improvement Districts of$1,994,867 is reflected in
the government-wide statement of net position as a receivable(see Note 10).
Business-type activities:
Enterprise
Funds
Accounts receivable:
Rent $19,332
Other ---1,059
Gross receivables 20,391
Less: allowance for
uncollectibles 14 237
Net total receivables S 6
- 67 -
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2019
® INTERFUND RECEIVABLES AND PAVABLES
Interfund receivables and payables consist of the following at June 30, 2019:
Receivable Fund Payable Fund Amount
General fund Capital projects fund 444,296
Other governmental funds 2,1 82 337
2,626,633
Capital projects fund General fund 50,622
Other governmental funds 2,659,603
2,710,225
Other governmental funds General fund 517,278
Other governmental funds 138.517
655,795
Total $5,992,6513,
Other governmental funds Enterprise funds $3,500
The above interfund balances result from the time lag between the dates that interfund goods
and services are provided or reimbursable expenditures occur,transactions are recorded,and
payment between funds are made.
Transfers for the fiscal year ended June 30, 2019 consisted of the following:
Transfers out:
Capital Other
General Projects Governmental
Fund FundFunds Total
----------
Transfers in:
Capital Projects Fund $ 2,000 $ $7,623,045 $ 7,625,045
Other governmental funds 69,6_I5396 .................................... ................................ _._6 ,6
$69,617,396
$762 ,045 $77,24®,414111
The interfund transfers noted above include transfers from the General Fund to provide
support for various County programs and to provide resources for the payment of debt
services. In addition, some of the other governmental funds have made transfers to the capital
projects fund for the construction of various projects.
- 6 ®
COUNTY OF HAWAII
Notes tote Basic Financial Statements
June 30, 2019
6. CAPITAL ASSETS
Capital asset activity for the year ended June 30,2019 for the County was as follows:
Balance Balance
July 1, Retirements/ June 30,
2018 Additions Transfers 2019
Governmental activities:
Capital assets not being depreciated:
Land and
improvements $ 256,390,951 $ 7,079,367 $ 263,470,318
Easements 6,151,809 81,072 6,232,881
Construction work in
progress 50,591,695 37,263,612 (29,399,496) .........................5 8..A.5.511.1.
........ ...
Total capital assets not
being depreciated 313,134A55 44424-051 -122129 496) ______.3- aj..L,,01_0
Capital assets being depreciated:
Buildings and
improvements 759,868,720 8,940,248 (10,000) 768,798,968
Equipment 159,929,306 10,255,404 (5,609,572) 164,575,138
Easements 456,497 -- 456,497
Infrastructure 624904-261 284-41 706 653,345,967
Total capital assets
being depreciated 1,545,158,784 47�637 358 (5,619,572) 1,587,176,570
Less accumulated depreciation for:
Buildings and
improvements (128,140,907) (12,917,110) 5,621 (141,052,396)
Equipment (101,010,508) (9,210,180) 4,982,653 (105,238,035)
Easements (439,300) -- -- (439,300)
Infrastructure _4
-1115&084 3_) 8,776 40,467,21 0)
Total accumulated
depreciation (545,199,149) 146,986,066)6 6) 4,988,274 (587,196,941)
Total capital assets
being depreciated,
net
999959„63S _6�51 Z92 (631,298) 999,979,629
Governmental
activities capital
assets, net $1,31.3,094,090 45,92511- ($30,030,17914) 3 8,639
- 69 ®
COUNTY OF HAWAVI
Notes to the Basic Financial Statements
June 30, 2019
Balance Balance
July 1, Retirements/ June 30,
2018 Additions Transfers 2019
Business-type activities:
Capital assets not being depreciated:
Land $ �753877 $ $
$�753 877
Capital assets being depreciated:
Buildings and
improvements 1,593,187 1,593,187
Ground and site
improvements 272,850 272,850
Equipment 13-6877 1-6902 (33,870) 1199 09
_1
Total capital assets
being depreciated 2,002,914 -------------16,902 (33,870) 1,985,946
Less accumulated depreciation for:
Buildings and
improvements (1,018,733) (36,044) (1,054,777)
Ground and site
improvements (219,304) (4,347) (223,651)
Equipment ®(116,211) (9,645) 8�41
30,015 5J
Total accumulated
Depreciation (1,I54-248) (50,036) 30,015 (1,374,269)
.
Total capital assets
being depreciated,
net 648,666 --ill 134 855 611,677
Business-type
activities capital
assets,net $1,402,543 $(11,134) $-11-855) fl365,554:
- 70 ®
COUNTY OF HAWAII
Notes tote Basic Financial Statements
June 30, 2019
Depreciation expense was charged to functions/programs of the primary government as
follows:
Governmental activities:
General government $ 2,779,771
Public safety 4,487,723
Highways and streets 26,661,952
Sanitation 7,321,874
Health, education and welfare 2,216,007
Culture and recreation 3,518,739
Total depreciation expense governmental activities $46,96,066
Business-type activities:
Kula'imano Elderly Housing Project $34,397
Ouli Ekahi Affordable Housing Project 15,639
Total depreciation expense business-type activities
7. DEFERRED INFLOW OF RESOURCES
Deferred inflow of resources consists of the following at June 30, 2019:
Governmental activities®
Capital and Other Total
General Projects Redemption Governmental Governmental
Fund Fund Fund Funds Funds
Real property taxes $ 27,663,902 $ $ $ $ 27,663,902
Liquor control revenue 193,894 193,894
Sewer revenue 1,626,672 1,626,722
Housing revenue 56,510 56,510
Solid waste revenue 1,557,414 1,5 7,118
Total presented in
fund financial
statements 27,857,796 3,240,596 31,098,392
Add deferred inflows
of resources related
to pensions & OPEB 15,043,306 15,043,306
Less adjustments for
accrual of revenues -.(21910,1-67) 13240,596) (29,,170,763„1
Total government-
wide financial
statements $ 16,970,935 $__ $
$ 16,970,935
- 71
COUNTY OF HAWAII
Notes tote Basic Financial Statements
June 30,2019
8. LEASES
The County leases machinery and equipment under noricancellable leases expiring at various
dates through December 2024, These capital leases are financed frown the resources of various
funds.
The estimated value of the leased machinery and equipment at the inception of the capital
leases and accumulated depreciation, amounting to $18,276,001 and $2,573,568, respectively,
and the related present value of the remaining obligations under the capital leases arnounting
to $11,579,332 at June 30, 2019 are included in capital assets and long-term debt, respectively.
The County also leases land, office facilities and other equipment under noncancellable
operating leases expiring through August 2045. Expenditures for such operating leases were
$1,997,965 for the fiscal year ended June 30, 2019.
The future rnininILIM payments under capital and operating leases at June 30, 2019 are as
follows:
Capital Operating
Leases Leases
Year Ending June 30:
2020 $3,641,620 $ 1,349,940
2021 3,311,866 1,238,527
2022 2,480,959 1,147,339
2023 1,954,921 478,101
2024 719,071 194,509
2025 -2029 117,129 200,072
2030 -2034 2,166
2035 -2039 900
2040 -2044 900
2045 -2048 195
Total minimurn lease payments 12,225,556 _14&L2_,6A9
Less amount representing
interest (6 234
Obligations under capital leases ILL21-3z
- 72 -
COUNTY OF HAWAVI
Notes to the Basic Financial Statements
June 30,2019
® SOLID WASTE LANDFILL CLOSURE AND POSTCLOSURE CARE COSTS
Hilo LandfIll The County owns and operates a landfill located in the city of Hilo. State and
federal laws require the County to place covers on certain landfill sites and to monitor and
maintain the sites for thirty years after the facility is closed. Although the closure and
postclosure care costs will be paid near and after the date that the landfill stops accepting
waste, the County recognizes a portion of the closure and postclosure care costs in each
operating period. The liability for these costs is included in the government-wide statement of
net position. The amount recognized each year is based on the landfill capacity used as of the
statement of net position date. At June 30, 2019,the County recognized a liability of
$22,753,000, based on the use of 98% of the estimated capacity of the landfill. During the
fiscal year ended June 30, 2019,there was $127,000 in expenditures incurred for the closure
of the landfill. The remaining$457,000 in estimated cost of closure and postclosure care will
be recognized as the remaining estimated capacity is used. The estimated remaining useful
life of the landfill is approximately less than one year. These amounts are based on what it
would cost to perform the required closure and postclosure care in 2019. Actual costs at that
time may be higher due to inflation, changes in technology, or changes in regulations.
Landfill capacity estimates are based on volumes going into the landfill subsequent to the last
available engineer's calculation. The volumes going into the landfill do not account for
decomposition, settlement, and corrosion;therefore the estimates are revised when new
engineering calculations, based on aerial photos and surveys, are available.
The County's permit to operate the landfill expired October 9, 1998. The County filed for an
extension which was approved by the State until pen-nitted capacity is reached. In accordance
with state statute, the County is allowed to continue operations provided that the County acts
consistently with the pen-nit previously granted and the extension application, plans,
specifications and all other information contained therein.
Kealakehe In October 1993, the County closed its Kealakehe landfill in Kona. Under state
and federal requirements,the County would have to monitor and maintain this site for ten
years from the closure date. However,the County anticipates monitoring and maintaining the
site for thirty years because there is presently a subterranean fire which requires active
management. The estimated cost of closure and postclosure is$17,150,000, based on what it
would cost to perform the required closure and postclosure care in 2019. Actual costs may be
higher due to inflation, changes in technology, or changes in regulations. Through
June 30, 2019, $8,888,000 was spent on closure and postclosure care of the landfill.
- 73 -
COUNTY OF BAWAI`I
Notes to the Basic Financial Statements
June 3O, 2U\9
The remaining estimated liability of$8,262,000 is included in the government-wide staternent
of net position. During the year ended June]0,2O|9, $55,0OQwas spent mnclosure ofthe
landfill. The County is providing financial assurance for postclosure care and remediation
through self insurance aeexplained below.
Pu^uanahulu In May 1993, the County contracted with aprivate company loconstruct and
operate anew landfill mnCounty land ot Pu'uanahu(uinWest Bavvmi^i. The present contract
calls for County employees 10perform the daily operations ofthe landfill, and for tile private
company to retain the overall management as well as perform all construction work on the
landfill cells. Under the terms ofthe contract,the County has noresponsibility for
remediation,closure or postclosure care. Accordingly, no liability for this landfill is included
inthe County's financial statements.
FinamcialAuuuxance For fiscal year 2O\9,the County has provided for financial resources
that will be available to provide for closure, pou1oiomure care and remediation or containment
ofenvironmental hazards at the above landfills,except Pu^uauubu|u. The Environmental
Protection Agency's financial assurance rules include a local government financial test
consisting ofa financial component,upublic notice component, and orecomdkeeping
component. Local governments are required to satisfy each ofthe three components twpass
the annual test. Management believes that the County has satisfied each of the components of
the local government financial assurance requirements.
lnfiscal year 2O\3, the County closed its two metal salvage facilities located near the Hilo and
Keu\akeheTranmfer Stations. State law requires the County to perform necessary closure
activities, including, but not limited to,the moonava\ of all remaining solid waste and
performing appropriate site assessments and remedial activities. The estimated liability of
approximately $\2,44l,OOQfor the remediation costs associated with these c\oauncm is
included inthe County's financial statements and isbased onclosure plans prepared by
science and engineering consultant contracted 6vthe County, and tile current value ofcosts
expected tobeincurred. The liability could change over time due toinflation ordeflation,
changes in technology, or changes in laws and regulations governing the rernediation effort.
- 74 -
COUNTY OF HAWAPI
Notes to the Basic Financial Statements
June 309 2019
10. LONG-TERM DEBT
General Obligation Bonds
The County issues general obligation bonds to provide funds for the acquisition and
construction of major capital facilities. These bonds have been issued by the County for the
primary government,component unit activities(see Note 14)and an improvement district,
The County's general obligation bonds are an absolute and unconditional general obligation of
the County for which its full faith and credit are pledged. The principal and interest payments
on the bonds are a first charge on the general fund of the County.
The 2010 Series B bonds were issued as bonds designated as"Recovery Zone Economic
Development Bonds" under the American Recovery and Reinvestment Act of 2009. The
County will receive a cash subsidy payment from the United States Treasury equal to 45% of
the interest payable on the Series B bonds.
The following is a summary of general obligation bond transactions reported in the
governmental activities section of the government-wide statement of net position for the
County for the fiscal year ended June 30, 2019:
Bonds Issue Bond Balance Bond Balance Due Within
Authorized Amount July 1 2018 Issues aRetirements June 30 2019 One Year
2007 Series C $ 10,787,388 $ 2,344,659 $ ($ _-) $ 2,344,659 $
2008 Series A 50,000,000 2,395,000 (2,395,000)
2010 Series A 26,493,750 2,842,500 (1,387,500) 1,455,000 1,455,000
2010 Series B 18,506,250 15,123,750 (933,750) 14,190,000 978,750
2013 Series A 58,509,892 6,587,504 (2,212,378) 4,375,126 2,323,814
2013 Series B 21,010,000 13,705,000 (2,050,000) 11,655,000 2,145,000
2013 Series C 18,470,000 13,710,000 (1,730,000) 11,980,000 1,805,000
2013 PI Series A 1,169,000 1,103,581 (23,017) 1,080,564 23,650
2016 Series A 99,620,000 99,620,000 99,620,000
2016 Series B 13,497,500 12,397,500 (1,140,000) 11,257,500 1,187,500
2016 Series C 44,835,000 44,835,000 (3,545,000) 41,290,000 3,725,000
2016 Series D 28,860,000 28,860,000 28,860,000 2,280,000
2016 Series E 19,061,250 19,061,250 19,061,250
2016 Series F 10,040,000 6,735,000 (3,345,000) 3,390,000 3390,000
2017 Series A 90,000,000 90,000,000 (2,685,000) 87,315,000 2,820,000
2017 Series B 2,540,000 2,540,000 (2,540,000)
2017 Series C 2,083,779 2,083,779 (1,017,432) 1,066,347 1,066,347
2017 Series D 43 4_75 000 434-75000 9,475I004
558,958,809 407,419,523 (25,004,077) 382,415,446 23,200,061
Add unamonized
premium 88,430599 64.3-23565 JkJS�9_48411 52-98322
L8_024_OL
$1A 7.339-40 $4'7 G.74JJ)89 ..................... Q 1 ' 8.3
$414QAA�27 $18II �49 83
- 75 -
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2019
General obligation bonds payable reported in the governmental activities section on the
government-wide statement of net position at June 30, 2019 are comprised of the following
individual issues:
Public improvement(PI)and/or refunding bonds:
2007 Series C at 4,0%to 5.0%, due through 2021 2,344,659
2010 Series A at 4.0%to 5.0%, due through 2020 1,455,000
2010 Series B at 3.335%to 6.1%, due through 2030 14,190,000
2013 Series A at 2.0%to 5.0%, due through 2020 4,375,126
2013 Series B at 3.0%to 5.0%, due through 2023 11,655,000
2013 Series C at 4.0%to 5.0%, due through 2024 11,980,000
2013 PI Series A at 2.75%, due through 2048 1,080,564
2016 Series A at 3.0%to 5.0%, due through 2035 99,620,000
2016 Refunding Series B at 3.0%to 5.0%, due through 2026 11,257,500
2016 Refunding Series C at 5.0%, due through 2027 41,290,000
2016 Refunding Series D at 5.0%, due through 2028 28,860,000
2016 Refunding Series E at 2.0%to 5.0%, due through 2029 19,061,250
2016 Taxable Series F at 1.2%to 1.55%, due through 2019 3,390,000
2017 Series A at 5.0%, due through 2037 87,315,000
2017 Refunding Series C at 4.0%to 5.0%, due through 2019 1,066,347
2017 Refunding Series D at 3.0% to 5.0%, due through 2032 43,475,000
Total general obligation bonds payable 32 5 446
6
�
Annual debt service requirements to maturity for the above general obligation bonds are as
follows:
Governmental Activities
Fiscal year ending June 30: Prnj6pal Interest
2020 $ 23,200,061 $ 17,468,593
2021 24,992,709 16,351,526
2022 26,406,084 15,111,597
2023 26,457,516 13,836,161
2024 27,753,775 12,539,036
2025 —2029 127,101,502 43,797,305
2030—2034 83,075,117 18,963,368
2035 —2039 42,967,673 3,381,770
2040—2044 214,937 48,933
2045 - 2049 246,072 --- 1,7279
Total $3,82,415,446 5141,515,156$
- 76 -
COUNTY OF HAWAVI
Notes tote Basic Financial Statements
June 30,2019
Refunded Bonds
In periods prior to the year ended June 30, 2019,the County defeased certain general
obligation bonds by placing the proceeds of new bonds in irrevocable trusts to provide for all
future debt service payments on the old bonds. Accordingly,the trust account assets and the
liability for the defeased bonds are not included in the County's financial statements. As of
Julie 30, 2019,approximately $61.1 million of bonds outstanding were considered defeased.
Bond Premiums
At June 30, 2019,total unamortized bond premiums were$58,024,081, which are being
amortized over the remaining life of the respective bond issues.
Bonds Authorized and Unissued
The County Council has authorized the issuance of$574.1 million in general obligation bonds
to finance both specified and unspecified capital improvement projects. At June 30, 2019,
$198.4 million was not yet issued,
General Obligation Bond Anticipation Notes
The following is a summary of general obligation bond anticipation note transactions reported
in the government-wide statement of net position for the County for the fiscal year ended Julie
30, 2019:
Issue Balance Balance
Note No. Amount July 1,2018 Issues Retirements June 3-0 2019
Series F,Note R-I $ 6,000,000 $ 6,000,000 $ 6,000,000
Series E,Note R-2 6,000,000 6,000,000 6,000,000
Series E,Note R-3 6,000,000 6,000,000 6,000,000
Series E,Note R-4 6,000,000 6,000,000 6,000,000
Series E,Note R-5 4,000,000 4,000,000 4,000,000
Series E,Note R-6 500.000 500,000 500,000
Series E,Note R-7 500,000 500,000 500,000
Series E,Note R-8 500,000 500,000 500,000
Series E,Note R-9 5-00000 ------------ 500,000 500-000
$_30MIM UQA00.000
State Revolving Fund Loans
The County has obtained loans to assist in financing mandated wastewater projects frorn the
State Water Pollution Control Revolving Fund (SRF). The purpose of this revolving fund is to
provide low-interest, long-term loans and other financial assistance to the four counties in the
state to finance construction of wastewater projects. The County has eleven projects approved
for funding with these loans.
- 77 -
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2019
The County's State Revolving Fund Loans are direct borrowings of the County for which its
full faith and credit are pledged. The State Revolving Fund Loans are secured by the gross
revenues of the County.
Tile schedule below shows the County's SRF transactions for the fiscal year ended June 30,
2019:
Loans Approved Loan Balance Retirements Loan Balance Due Within
Authorize—mzArno—unt Ld Y-1_zo_13 Additions FoMLivBess June 30 Z-012 Que Year
Cesspool
Conversion $8,363,773 $ 3,801,856 (438,981) 31362,875 $ 441,145
lionoka'a LCC; 4,513,158 2,509,993 (180,182) 2,329,811 181,085
Queen
Lili'uokalani 9,421,732 6,022,288 (488,265) 5,534,023 490,712
Kalaniana'ole 7,847,045 5,496,764 (354,255) 5,142,509 355,560
Kealakehe
WWTPALJ 21,162,934 14,994,362 (865,587) 14,128,775 866,599
North Kona 3,454,500 1,655,604 -- (39,502) 1,616,102 79,449
Kealakehe
Effluent Reuse 6,158,687 718,911 2,141,373 (1,026,800) 1,833,484 85,354
SH Landfill
Closure 678,370 448,092 -- 448,092 --
Kealakehe Scrap
Metal 5��11 0 -- —�297 923 —1297 22a
16IJ 82-LO Ia2-6AI.BIQ ilAI9196 10-ULM) SaM93.59-4 S._ a4
The reinaining loans bear interest at 0.25%to 0,50% exclusive of a 0.25%to 0,75% loan fee,
and require payrnents through fiscal year 2040.
Debt service to maturity for disbursements to date on these projects are as follows:
Governmental Activities
Fiscal year ending June 30: Principal Interest
2020 $ 2,499,904 $ 310,707
2021 2,779,577 292,172
2022 2,793,212 270,495
2023 2,807,014 248,622
2024 2,820,840 226,696
2025 —2029 13,166,146 833,667
2030 -2034 9,377,695 324,258
2035 —2039 3,287,484 70,937
2040 ---16 1x722 809
Total W,69
=�3 5
- 78 -
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2019
Other General Long-Term Obligations
The following is a summary of other general long-term obligations transactions for the fiscal
year ended June 30, 2019:
Balance Balance Due Within
July_L_2QII Additions* Payments June 30,2019 One Year
Governmental activities:
Compensated absences $41,136,979 $15,862,555 $(14,586,821) $42,412,713 $10,626,781
Claims and judgments
(see Note 12) 18,135,409 17,188,988 (3,839,914) 31,484,483 4,495,902
Capital leases
(see Note 8) 8,112,577 6,776,636 (3,309,881) 11,579,332 3,359,810
Landfill costs payable
(see Note 9) 30,007,000 1,190,373 (182,373) 31,015,000 359,009
Pollution remediation
(see Note 9) 13,144,259 1,914,583 (2,618,109) 12,440,733 3,949,238
Other post employment
benefit obligation
(see Note 13) 391.454,300 9380510 4008.34810 -
Total a5$
==01 99 §24 �1231 IL $(24,537,098) L572 ,M
- U $22, 74
790, 0
� ,X -11111 1 ��=—
Net of new claims liability and existing claims resolved at less than previous estimate.
Historically, the County's general fund has been used to liquidate the majority of other long-
term liabilities, including the other post employment benefit obligation and the compensated
absences since most employees are paid by the general fund.
Fund Balances- Debt Service Funds
The fund balance in the debt service funds at June 30, 2019 includes $29,563,381, which is
reserved for principal payments on general obligation bonds and $3,647,978, which is
reserved for the payment of interest on the bonds,
Enterprise Fund Notes, on and Loan Payable
On February 12, 2013,the County issued general obligation bonds on behalf of Kula'imano
Elderly Housing Project(Project)to pay off its two notes payable to the U.S. Department of
Agriculture, Farmers Home Administration with principal and interest balances aggregating
$835,108. The Project is responsible for the debt service payment related to their portion of
the bonds, which is also secured with the County's general obligation pledge. Because the
Project is responsible for only a portion of the total bonds issued, it was decided that the
Project would continue to make bond payments equivalent to its previous monthly installment
- 79 -
COUNTY OF HAWAII
Notes tart asic Financial Statements
June 30, 2019
payments of$7,826 oil the old notes at 5.547% interest. Under this payment schedule,the
Project will make contributions through 2025 of the bonds 2032 maturity date.
The following is a summary of the Project's bond payable transactions for the fiscal year
ended June 30, 2019:
Balance at July 1, 2018 $ 592,496
Deductions --(62,�622
Balance at June 30, 2019 529,874
Less current portion �18 6
Note payable, net of
Current portion $ 46,,3,,688
The following is a summary of the annual maturities for the enterprise fund bond payable:
Business-type Activities
Fiscal year ending June 30: Principal Interest
2020 $ 66,186 $ 25,869
2021 69,952 21,997
2022 73,932 17,905
2023 78,139 13,580
2024 82,586 9,009
2025 -2026 �159079 4,466
Total $5291,874 $912,$26
On October 29, 2012,the County assumed the loan of its lessee Ouli Ekahi Partnership with
the Hawai'i Housing Finance and Development Corporation in the amount of$478,430. Tile
loan is non-interest bearing and matures on February 27, 2041. In exchange,the County
assurned ownership of the Ouli Ekahi project which consists of a 33 single family affordable
rental housing project,
The following is a summary of enterprise fund loan payable transactions for the fiscal year
ended June 30, 2019:
Balance at July 1, 2018 $214,509
Deductions —146.,6U6
Balance at June 30, 2019 167,903
Less current portion {36,334)
Loan payable, net of
Current portion -$ 13i
— L
- 80 -
COUNTY OF HAWAII
Notes tote Basic Financial Statements
June 30, 2019
The following is a summary of the annual maturities for the enterprise fund loan payable:
Business-type Activities
Fiscal year ending June 30: Principal
2020 36,334
2021 16,500
2022 16,500
2023 16,500
2024 16,500
2025—2028 65,569
Total $167,903
Special Assessment Bonds
The County has issued general obligation bonds on behalf of Improvement District No. 18 for
water improvements(see Note 4). These bonds were then refunded by a portion of the 2013
Series A Bonds that were issued. The Improvement District is responsible for the payment of
the debt service on these bonds, but the County remains liable because they are general
obligations of the County. The improvement district's share of the refunded bonds matures
annually through 2027 and bear interest at the previous rates of 4.375%to 4,75%. Total
general obligation bonds payable included in the government-wide statement of net position
were $914,303 at June 30, 2019.
The County has also issued general obligation bonds on behalf of Improvement District No. 19
for water improvements(see Note 4). The Improvement District is responsible for the payment
of the debt service on these bonds, but the County remains liable because they are general
obligations of the County. The improvement district's share of the refunded bonds matures
annually through 2048 and bear interest at the previous rates of 2.75%, Total general
obligation bonds payable included in the government-wide statement of net position were
$1,080,564 at June 30, 2019.
The bonds are secured by a first lien on the land benefited by the improvements, and are to be
repaid from the annual assessments levied against the owners of the land. The County acts as
an agent for the property owners within the improvement districts to collect assessments
receivable, forward payments to bond-paying agents at appropriate dates and, if required,
administer foreclosure proceedings.
The following is a summary of bond transactions for Improvement District No. 18,
Coastview/Wonderview Water Improvements, and No. 19, Kona Ocean View Properties
Subdivision for the fiscal year ended June 30, 2019:
Balance at July 1, 2018 $2,098,246
Deductions 103,379
Balance at June 30, 2019 $1,994_,867
- 81 -
COUNTY OF HAWAII
Notes tote Basic Financial Statements
June 30, 2019
The following is a Summary of the annual maturities for the improvement district general
obligation bonds:
Fiscal year ending June 30: Principal Interest
2020 $ 107,752 $ 70,001
2021 112,317 65,336
2022 117,083 60,466
2023 122,057 55,382
2024 127,251 50,074
2025 2029 595,857 165,142
2030 -,2034 163,868 100,704
2035 .-.. 2039 187,673 76,571
2040- 2044 214,937 48,932
2045 -- 2049 �246 072
Total $1,994,,867 $ 709A$9
11. COMMITMENTS AND CONTINGENCIES
Coatractual commitments—Contractual commitments for capital projects, expenses, and
supplies at June 30, 2019, except in the enterprise funds, are reflected in the balance sheets as
a part of the respective fund balance categories and are as follows:
General fund $ 1,156,030
Capital projects fund 171,679,938
Nonmajor funds 9,262,355
$ 182,098.323
Contractual commitments for the enterprise funds were immaterial.
Intergovernmental revenues—The County has received federal and state grants for specific
purposes that are subject to review and audit by grantor agencies. Such audits could lead to
requests for reimbursement to the grantor agency for expenditures disallowed under terms of
the grants. In the opinion of management of the County, disallowed costs, if any, would not
be material,
Claims—Numerous claims and lawsuits have been filed against tile County in the normal
course of its operations. A liability for probable losses is included on the government-wide
statement of net position(see Note 12). Although the outcome of the various claims and
lawsuits is not presently determinable, in the opinion of the County's Corporation Counsel,
the resolution Of Such matters will not have a material adverse effect on the financial condition
of the County.
- 82 -
COUNTY OF HAWAII
Notes tote Basic Financial Statements
June 30, 2019
ADA compliance—The County entered into a Stipulated agreement, filed on June 4, 1998,
which relates to the Department of Parks and Recreation (Parks), The agreement required
Parks to establish practices, policies and procedures regarding its programs, and prepare a
transition plan by the middle of the year 2000. The self-evaluation and transition plan for
programs, practices and procedures has been completed and approved by the County Council.
The cost impact of implementation is not material because the necessary modifications are
primarily procedural. The second part of this stipulated agreement is the reevaluation of all
County facilities, which was completed and accepted by the Count)/ Council on June 30,
2000. Approximately 240 County facilities were surveyed as part of this effort. 'file tentative
completion date of all necessary repairs and renovations was 12 years from the date the
County Council accepted the self-evaluation. The initial (1997-2000)estimated cost of the
facilities repairs was $15.1 million, which would have been spent over the 12-year period.
Funding allocated initially for facilities repairs was $17.5 million, with another$4 million of
federal funding anticipated through community development block grants over the next 2
years. Tile Department of Public Works has requested an additional $2 million a year for the
other County ADA facilities' project. Because of severe disparities that surfaced between the
original ADA projects' scoping and construction estimates and actual scopes and costs, as
well as tune/delivery issues that came into play because of necessary permits and reviews, and
design professionals' costs that weren't factored into the effort, the County sought relief from
the Court in the form of both a time extension and reprioritization of sites. As a result, the
County obtained approval of a modified 4-year plan wherein accessibility improvements at the
then remaining 35 park sites were required to be completed by December 31, 2016. The
County is engaged in ongoing quarterly briefings with the federal magistrate judge assigned to
this case and has proposed a completion date, for all remaining projects, of the end of calendar
year 2021. The balance of the unimproved sites would be deferred indefinitely pending
separate irnprovement/enhancement projects that Would inherently trigger accessibility
improvements due to the nature of each project's scoping and applicable ADA requirements.
Of the 35 park sites requiring accessibility improvements under the modified 4-year plan Plus
an additional park site(Dr. Francis Wong Stadium at Ho'olulu Complex)that was
reintroduced into the transition plan via the court, 19 have been completed, I has been
permanently omitted due to lava inundation, and 16 are in design and permitting. The County
has encumbered or spent more than $17.6M on these projects. The County had spent$42.0
million for the construction and design fees to complete 50 park facilities(some having
multiple ADA work being completed) prior to the development of the modified four year
plan. In addition, the County's ADA coordinator(Equal Opportunity Officer) has access to an
identifiable account of at least$50,000 to handle requests for reasonable accommodations for
County departments; and the procedures for these requests have been finalized and are
available oil the Human Resources Department's Equal Opportunity and the ADA web page.
Also, Parks has a Recreation Specialist who reviews and investigates requests for reasonable
accommodations, and recommends specific actions on those requests.
- 83 -
COUNTY OF HAWAII
Notes tot Basic Financial Statements
June 30, 2019
12. RISK MANAGEMENT
The County is exposed to various risks of losses related to torts; theft, damage, and destruction
of assets; errors and omissions; work-related injuries to employees; and natural disasters. The
County obtains property insurance (including coverage on a high deductible basis for natural
disasters of hurricane, flood and earthquake). It purchases flood insurance on selected
structures, medical malpractice for emergency medical services, aviation liability for
helicopter operations, retired senior volunteers liability coverage, auto liability for mass transit
buses and subsidized police vehicles, and auto physical damage coverage on police fleet
vehicles and the Kohala Ranch fire truck. The County ensures property insurance is obtained
on housing projects. There was no reduction in insurance coverage during the year frorn
coverage in the prior year, The County is substantially self-insured for general liability and
auto liability as well as for all other exposures including workers' compensation. As such,
emphasis is placed on clairris managernent and safety/risk control to protect the public and
employees and to mitigate loss costs. The liability for claims and judgments is reported oil the
government-wide statement of net position and the majority will be liquidated from the
County's general fund.
Liabilities are reported when it is probable that a loss has occurred and the arnount of that loss
can be reasonably estimated. These losses include an estimate of claims that have been
incurred but not reported (IBNR). Claim liabilities, including IBNR, are based on the
estimated ultimate cost of settling the claims, and include incremental costs for the hiring of
special counsel and expert witnesses. Claims liabilities are estimated by a case-by-case
review of all claims and the application of historical experience to outstanding claims.
Estimates of IBNR are based on historical experience. The liability for claims and judgments
is reported on the government-wide statement of net position. At June 30, 2019,the amount
of this liability was$31,484,483. This is the County's best estimate based on available
information. Changes in the reported liability since July 1, 2017 are given below.
General Workers' Total
Ljgb Compensation Liability
Balance at July 1, 2017 $, 2,,,294,1202 $ 1414 1_,491 $=jAL15fiJJ
Incurred claims(including IBNR)* (177,100) 7,727,357 7,550,257
Claire payments (219,379) (3,631,162)�11 6 Q --(3850,541)
Balance at June 30, 2018 $ 1,1397,72.3 $ 16,237,686 $-J-118,115 135,409
Incurred claims(including IBNR)* 14,128,499 3,060,489 17,188,988
Claim payments (199,932) (3,639,982) (3,839,914)
Balance at June 30, 2019 $ 15,826,290 $ 15,65,$,193 $ 3,IA84,483
*Net of new claims liability and existing claims resolved at less than previous estimate.
- 84 -
COUNTY 1,..®F HAWAPI
Notes tote Basic Financial Statements
June 30, 2019
13. EMPLOYEE BENEFIT PLANS
Pensions—Employees' Retirement System oft a State of Hawai'i
Pension Plan Description -All eligible employees of the State and counties are provided with
pensions through a cost-sharing multiple-employer defined benefit pension plan administered
by the Employees' Retirement System of the State of Hawaii (ERS), Benefit tenris,
eligibility, and contribution requirements are established by HRS Chapter 88 and can be
amended through legislation, The ERS issues a publicly available financial report that can be
obtained at ERS's website: littp://ers.eliawaii.gov/.
Benefits Provided -The ERS provides retirement, disability, and death benefits that are
covered by the provisions of the noncontributory, contributory, and hybrid retirement plans.
The three plans provide a monthly retirement allowance equal to the benefit multiplier
(generally 1.25% or 2%) multiplied by the average final compensation multiplied by years of
credited service. The benefit multiplier decreased by 0.25%for new hybrid and contributory
plan members hired after June 30, 2012. Average final compensation is based on the five
highest paid years of service excluding the payment of salary in lieu of vacation for members
hired after June 30, 2012. For those hired between January 1, 1971 and June 30, 2012, AFC is
based on the three highest paid years of service excluding the payment of salary in lieu of
vacation, If the employee was hired prior to January 1, 1971,the AFC is the average salary
earned during the five highest paid years of service, including the payment of salary in lieu of
vacation, or three highest paid years of service, excluding the payment of salary in lieu of
vacation.
For members hired before July 1, 2012,the original retirement allowance is increased by 15%
each July I following the calendar year of retirement. This cumulative benefit is not
compounded and increases each year by 2.5% of the original retirement allowance without a
ceiling(2.5%of the original retirement allowance the first year, 5.0%the second year, 7.5%
the third year, etc.). For members hired after June 30, 2012 the post-retirement annuity
increase was decreased to 1.5% per year.
Retirement benefits for certain groups, such as police officers, firefighters, some investigators,
sewer workers,judges, and elected officials, vary from general employees.
Noncontributory Plan
Retirement Benefits-General employees' retirement benefits are deten-nined as 1.25%of
average final compensation multiplied by the years of credited service. Employees with
10 years of credited service are eligible to retire at age 62, Employees with 30 years of
credited service are eligible to retire at age 55.
- 85 -
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2019
Disability Benefits- Members are eligible for service-related disability benefits
regardless of length of service and receive a lifetime pension of 35% of their average
final compensation. Ten years of credited service is required for ordinary disability.
Ordinary disability benefits are determined in the same manner as retirement benefits but
are payable immediately, without an actuarial reduction, and at a minimum of 12.5% of
average final compensation.
Death Benefits- For service-connected deaths,the surviving spouse/reciprocal
beneficiary receives a monthly benefit of 30%of the average final compensation until
remarriage or re-entry into a new reciprocal beneficiary relationship. Additional benefits
are payable to surviving dependent children tip to age 18. If there is no SPOLIse/reciprocal
beneficiary or dependent children, no benefit is payable.
Ten years of credited service is required for ordinary death benefits. For ordinary death
benefits, the surviving spouse/reciprocal beneficiary (until remarriage/reentry into a new
reciprocal beneficiary relationship)and dependent children (up to age 18)receive a
benefit equal to a percentage of member's accrued maximum allowance unreduced for
age or, if the member was eligible for retirement at the time of death,the surviving
spouse/reciprocal beneficiary receives 100%joint and survivor lifetime pension.
Contributory Plan for Employees Hired Prior to Julyjl,, 2012
stirs ent
2-00It22-
etirement Beriefits-General employees' retirement benefits are determined as 2% of
average Final compensation multiplied by the years of credited service. General
employees with 5 years of credited service are eligible to retire at age 55.
Police and firefighters' retirement benefits are determined as 2.5%of average final
compensation for each year of service up to a maximum of 80%. Police and firefighters
with 10 years of credited service are eligible to retire at age 55.
Disability Benefits- Members are eligible for service-related disability benefits
regardless of length of service and receive a lifetime pension of 50% of their average
final compensation. Ten years of credited service is required for ordinary disability.
Ordinary disability benefits are determined as 1.75% of average final compensation
multiplied by the years of credit services and are payable immediately, Without an
actuarial reduction,and at a minimum of 30%of average final compensation.
Death Benefits- For service-connected deaths,the surviving spouse/reciprocal
beneficiary receives a lump sum payment of the member's contributions and accrued
interest plus a monthly benefit of 50% of the average final compensation until remarriage
or re-entry into a new reciprocal beneficiary relationship. If there is no surviving
spouse/reciprocal beneficiary, surviving children (up to age 18)or dependent parents are
eligible for the monthly benefit. If there is no spouse/reciprocal beneficiary or dependent
children/parents, the ordinary death benefit is payable to tile designated beneficiary.
- 86 -
COUNTY OF HAWAVI
Notes to the Basic Financial Statements
June 30, 2019
Ordinary death benefits are available to employees who were active at time of death with
at least I year of service. Ordinary death benefits consist of a lump sum payment of the
member's contributions and accrued interest plus a percentage of the salary earned in the
12 months preceding death, or 50%Joint and Survivor lifetime pension if the member
was not eligible for retirement at the time of death but was credited with at least 10 years
of service and designated one beneficiary, or 100%Joint and Survivor lifetime pension if
the member was eligible for retirement at the time of death and designated one
beneficiary.
Contributory Plan for Employees Hired After June 30,2012
Retirement Benefits—General employees' retirement benefits are determined as 1.75%
of average final compensation multiplied by the years of credited service. General
employees with 10 years of credited service are eligible to retire at age 60.
Police and firefighters' retirement benefits are determined as 2.25% of average final
compensation for each year of service up to a maximum of 80%. Police and firefighters
with 10 years of credited service are eligible to retire at age 60.
Disability and Death Benefits - Members are eligible for service-related disability
benefits regardless of length of service and receive a lifetime pension of 50% of their
average final compensation plus refund of contributions and accrued interest, Ten years
of credited service is required for ordinary disability. Ordinary disability benefits are
1.75% of average final compensation for each year of service for police and firefighters
and are payable immediately, without an actuarial reduction, at a minimum of 30% of
average final compensation.
Death benefits for contributory plan members hired after June 30, 2012 are generally the
same as those for contributory plan members hired June 30, 2012 and prior.
Bybrid Plan for Ern lo ees Hired Prior to July 1, 201 2
Retirement Benefits-General employees' retirement benefits are determined as 2% of
average final compensation multiplied by the years of credited service. General
employees with 5 years of credited service are eligible to retire at age 62, General
employees with 30 years of credited service are eligible to retire at age 55,
Disability Benefits- Members are eligible for service-related disability benefits
regardless of length of service and receive a lifetime pension of 35%of their average
final compensation plus refund of their contributions and accrued interest, Ten years of
credited service is required for ordinary disability. Ordinary disability benefits are
determined in the same manner as retirement benefits but are payable immediately,
without an actuarial reduction, and at a minimum of 25% of average final compensation,
- 87 -
COUNTY OF HAWAII
Notes tote Basic Financial Statements
June 30, 2019
Death Benefits- For serviee-connected deaths,the surviving spouse/reciprocal
beneficiary receives a lump sum payment of the member's contributions and accrued
interest plus a monthly benefit of 50% of the average final compensation until remarriage
or re-entry into a new reciprocal beneficiary relationship, If there is no surviving
spouse/reciprocal beneficiary, surviving children (LIP to age 18)or dependent parents are
eligible for the monthly benefit. If there is no spouse/reciprocal beneficiary or dependent
children/parents,the ordinary death benefit is payable to the designated beneficiary.
Ordinary death benefits are available to employees who were active at time of death with
at least 5 years of service, Ordinary death benefits consist of a lurnp sum payment of the
member's contributions and accrued interest multiplied by 150%, or 50%Joint and
Survivor lifetime pension if the member was not eligible for retirement at the time of
death but was credited with at least 10 years of service and designated one beneficiary, or
100%Joint and Survivor lifetime pension if the member was eligible for retirement at the
tirne of death and designated one beneficiary.
Hybrid Plan for Employees Hired After June 30, 2012
Retirement Benefits-General employees' retirement benefits are determined as 1.75% of
average final compensation multiplied by the years of credited service. General
employees with 10 years of credited service are eligible to retire at age 65. Employees
with 30 years of credited service are eligible to retire at age 60. Sewer workers, water
safety officers, and EMTs may retire with 25 years of credited service at age 55.
Disability and Death Benefits - Provisions for disability and death benefits generally
remain the same except for ordinary death benefits. Ordinary death benefits are available
to employees who were active at time of death with at least 10 years of service. Ordinary
death benefits consist of a lump sum payment of the member's contributions and accrued
interest multiplied by 120%, or 50% Joint and Survivor lifetime pension if the member
was not eligible for retirement at the tirne of death and designated one beneficiary,or
100/®Joint and Survivor lifetime pension if the member was eligible for retirement at the
time of death and designated one beneficiary.
Contributions-Contributions are established by HRS Chapter 88 and may be arnended
through legislation, The employer rate is set by statute based on the recommendations of the
ERS actuary resulting from an experience study conducted every five years. Since July 1,
2005, the employer contribution rate is a fixed percentage of compensation, including the
normal Cost Plus arnounts required to pay for the unfunded actuarial accrued liabilities. The
contribution rates for fiscal year 2019 were 31.00% for police and firefighters and 19.0% for
all other employees. Contributions to the pension plan from the County for the year ended
June 30, 2019, 2018, and 2017 were $44,853,953, $41,562,933,and $36,157,981,
respectively.
- 88 -
COUNTY OF HAWAII
Notes taste Basic Financial Statements
June 30, 2019
The ernployer is required to make all contributions for members in the noncontributory plan.
For contributory plan employees hired prior to July 1, 2012, general employees are required to
contribute 7.8% of their salary and police and firefighters are required to contribute 12.2% of
their salary. For contributory plan employees hired after June 30, 2012, general employees are
required to contribute 9.8%of their salary and police and firefighters are required to contribute
14.2% of their salary. Hybrid plan members hired prior July 1, 2012 are required to contribute
6.0% of their salary. Hybrid plan mernbers hired after June 30, 2012 are required to contribute
8.0% of their salary.
Pension liabilities,pension expense, and deferred outflows of resources and deferred
inflows of resources related to pensions—At June 30, 2019, the County reported a liability of
$635,693,501 for its proportionate share of the net pension liability. The net pension liability
was measured as of June 30, 2018, and the total pension liability used to calculate the net
pension liability was deten-nined by an actuarial valuation as of that date. The County's
proportion of the net pension liability was based on the actual employer contributions to the
pension plan relative to the contributions of all participating employers. At June 30, 2018,the
County's proportion was 4.77%, which was an increase of.06%from its proportion measured
as of June 30, 2017.
For the year ended June 30,2019, the County recognized pension expense of$93,523,335. At
June 30, 2019,the County reported deferred outflows of resources and deferred inflows of
resources related to pensions from the following sources:
Deferred Deferred
Outflows Inflows of
of Resources Re,slquxges
Differences between expected and actual experience $ 23,304,996 $ 2,516,117
Net difference between projected and actual investment
earnings on pension plan investments -- 3,832,259
Changes in assumptions 73,900,841 --
Changes in proportion and differences between employer
contributions and proportionate share of contributions 19,019,804 3,852,069
County contributions subsequent to the measurement date 44,,853,953 _7
Total $161,079,594 $ 10 2 Q.„4,15
$44,853,953 reported as deferred outflows of resources related to the County's contributions
to the pension plan subsequent to the measurement date will be recognized as a reduction of
the net pension liability in the fiscal year ended June 30, 2020.
- 89 -
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30,2019
Other arnounts reported as deferred outflows of resources and deferred inflows of resources
related to pensions will be recognized in pension expense as follows:
Net Deferred
Outflows
(Inflows) of
Fiscal Year EndinZ June 30 Resources
2020 $ 46,567,986
2021 39,388,678
2022 16,439,932
2023 2,659,286
2024 ——— 969.314
$ 106,025,196
Actuarial assumptions—The total pension liability in the June 30,2018 actuarial valuation
was determined using the following actuarial assumptions, applied to all periods included in
the measurement:
Inflation 150%
Payroll growth rate 3.50% per annum
Salary increases 3.50%- 7.00%, including inflation
Investment rate of return 7.00% per annum, including inflation
Cost of living adjustments 2.50%/ 1.50%
Mortality rates used in the actuarial valuation as of June 30, 2018 were based on the
following:
Active mernbers—Multiples of the RP 2014 mortality table for active employees based
on the Occupation of the member.
Healthy retirees—The 2016 Public Retirees of Hawaii mortality table, generational
projection using the BB projection table from the year 2016 and with multipliers based on
plan and group experience.
Disabled retirees— Base Table for healthy retiree's occupation, set forward 5 years,
generational projection using the BB projection table from the year 2016. Minimum
mortality rate of 3.5%for males and 2.5%for females.
The actuarial assumptions used in the June 30, 2018 valuation were based on the results of an
actuarial experience study for the five-year period ending June 30,2015. The major changes
to assumptions resulting from the 2015 actuarial experience study were(I) a decrease in the
investment return assumption from 7.65% to 7.00% and (2)the mortality assumptions were
modified to assume longer life expectancies as well as to reflect continuous mortality
improvement. ERS updates their experience studies every five years.
- 90 -
COUNTY OF HAWAII
Notes tote Basic Financial Statements
June 30, 2019
The long-term expected rate of return on pension plan investments was determined using a
building-block method in which best-estimate ranges of expected future real rates of return
(expected returns, net of pension plan investment expense and inflation)are developed for
each major asset class. These ranges are combined to produce the long-term expected rate of
return by weighting the expected future real rates of return by the target asset allocation
percentage and by adding expected inflation.
The target allocation and best estimates of geometric rates of return for each major asset class
are summarized in the following table:
Long-Te rrn Long-Term
Strategic Allocation Target Expected Rate of Expected Real
(Risk-Based Classes) Allocation Return* Rate of Return
Broad growth 63.00% 7.10% 4.85%
Crisis risk offset 20.00% 4.60% 2.351®
Real return 10.00% 4.10% 1.85%
Principal protection 7.00% 2.50% 0.25%
100.00®/
*Uses an expected inflation rate of 2.25%
Discount rate—The discount rate used to measure the total pension liability was 7,00%, which
was the same rate used at the prior measurement date. The projection of cash flows used to
determine the discount rate assurned that employee contributions will be made at the current
contribution rate and that contributions from the County will be made at statutorily required
rates, actuarially determined. Based on those assumptions,the pension plan's fiduciary net
position was projected to be available to make all projected future benefit payments Of Current
active and inactive employees. Therefore,the long-term expected rate of return on pension
plan investments was applied to all periods of projected benefit payments to determine the
total pension liability.
Sensitivity of the County's proportionate share of the net pension liability to changes in the
discount rate—The following presents the County's proportionate share of the net pension
liability calculated using the discount rate of 7.00%, as well as what the County's
proportionate share of the net pension liability would be if it were calculated using a discount
rate that is I-percentage-point lower(6.00%) or 1-percentage-point higher(8.00%) than the
current rate:
I% Decrease Current Discount I% Increase
(6M%) Rate(7.00%) (8.00%)
County's proportionate share of
the net pension liability $ $39,348,453 $ 635,693,501 $ 407,81 1,298
- 91
COUNTY OF HAWAII
Notes tote Basic Financial Statements
June 30, 2019
Pension plan fiduciary net position—Detailed information about the pension plan's fiduciary
net position is available in the separately issued ERS Comprehensive Annual Financial Report
that includes financial statements and required supplementary information.
Payables to the pension plan—At June 30, 2019, the annual amount payable to the ERS
totaled $4,683,177, which represents the employer contribution for the second half of the
month of June 2019,as required by HRS, and the excess pension cost under Act 153/SLH 2-
12 REFER FIRS Section 88-100 for fiscal year ended June 30, 2019.
Other Pension Plans- County of Hawaii Bandsmen Pension System
The County also sponsors a nonqualified, governmental single employer defined benefit
pension plan for members of the County Band (County of Hawai'i Bandsmen Pension
System) who are or were ineligible for benefits under ERS and whose employment began
before June 1, 1990. Under FIRS Chapter 88,the County Pension provides retirement benefits
that are computed based on the average annual salary during the last 10 years of employment
with a rninirnurn pension amount of$50 per month. There are no assets accumulated in a trust
for the payment of benefits.
As of the valuation date of June 30, 2019,there were 21 inactive employees or beneficiaries
receiving benefits; 12 inactive employees not yet receiving benefit payments; and 4 active
members.
Pension liabilities,pension expense, and deferred outflows of resources and deferred
inflows of resources related to pensions—At June 30, 2019, the County reported a liability of
$951,741. The total pension liability was measured as of June 30, 2019 based on all actuarial
valuation as of June 30, 2019.
For the year ended June 30, 2019, the County recognized pension payments of$47,532 and a
negative pension expense of$88,699.
Actuarial assumptions—The total pension liability in the June 30, 2019 actuarial valuation
was determined using the following actuarial assumptions, applied to all periods included in
the measurement:
Inflation 2.50%
Payroll growth rate 3.50% per annum
Salary increases 3.50%, including inflation
Cost of living adjustments 2.50%
- 92 -
COUNTY OF HAWAVI
Notes tote Basic Financial Statements
June 30, 2019
The discount rate used to measure the County's total pension liability was 3.13% based on the
daily municipal bond rate closest to but not later than the measurement date of the Fidelity
"20-Year Municipal GO AA Index".
The following presents the County's total pension liability calculated using the discount rate
of 3.13%, as well as what the County's total pension liability would be if it were calculated
using a discount rate that is I-percentage-point lower(2.13%)or 1-percentage-point higher
(4.13%)than the current rate:
I% Decrease Current Discount I% Increase
(2.13%) Rate(3.13%) (4.13%)
County's total pension liability $ 11,0$,7,041 $ 91,741. 840,468
Schedule of Changes in Total Pension Liability
Measurement year ending June 30, 2019
Total Pension Liability
Service cost $ 7,392
Interest 38,149
Differences between expected and actual
experience (89,947)
Changes of assumptions (44,293)
Benefit payments (47
,532)
Net Change in Total Pension Liability (136,231)
Total Pension Liability—Beginning1 087 972
to Pension Liability—Ending $ 951,741
Post-Retirement Benefits
In addition to providing pension benefits,the County is required by state statute(HRS Chapter
87A)to contribute to the Hawaii Employer-Union Health Benefits Trust Fund(the EUTF).
The EUTF is an agent, multiple-employer defined benefit plan providing certain healthcare
and life insurance benefits to all qualified retirees, active employees,their dependents and
their beneficiaries.
Bene
its Provided—Chapter 87A of the HRS grants the authority to establish and amend the
benefit terms to the board of trustees of the EUTF. The EUTF currently provides medical,
prescription drug, dental,vision, chiropractic, supplemental medical and prescription drug,
and group life insurance benefits for retirees and their dependents.
- 93 -
COUNTY OF HAWAII
Notes tate Basic Financial Statements
June 30,2019
The following table provides a summary of the number of employees covered by the benefit
terms as of July 1, 2018.
Inactive employees or beneficiaries currently receiving benefits 1,641
Inactive employees entitled but not yet receiving benefit payments 217
Active employees aim
4,246
Conn-ibulions - The County's contribution levels are established by Chapter 87A of the HRS.
The county was required to contribute 100% of the ARC starting in fiscal year 2019. The
ARC represents a level of funding that is sufficient to cover, I)the normal cost,which is the
cost of the other postemployment benefits attributable to the current year of service; and 2)an
amortization payment, which is a catch-up payment for past service costs to fund the unfunded
actuarial accrued liability over the next thirty years. For the fiscal year ended June 30, 2019,
contributions to the OPER Plan frorn the County totaled $39,770,000 which resulted in an
average contribution rate of approximately 22.1% of covered-ernployee payroll.
For employees hired prior to July 1, 1996,the County pays the entire monthly healthcare
premium for employees retiring with 10 or more years of credited service, and 50% of the
monthly prerniurn for employees retiring with fewer than 10 years of credited service. The
current(pay-as-you-go) premium costs are paid by the respective funds but the net other
postemployrnent benefit obligation is paid by the General Fund.
For employees hired after June 30, 1996, and who retire with fewer than 10 years of service,
the County makes no contributions. For those retiring with at least 10 years but fewer than 15
years of service, the County pays 50%of the retired employees' monthly Medicare or non-
Medicare premiurn. For employees hired after June 30, 1996,and who retire with at least 15
years but fewer than 25 years of service,the County pays 75%of the retired employees'
monthly Medicare or non-Medicare prennium. For those retiring with over 25 years of service,
the County pays the entire healthcare premium.
For employees hired after June 30, 2001, and who retire with fewer than 10 years of service,
the County makes no contributions. For those retiring with at least 10 years but fewer than 15
years of service, the County pays 50%of the retired employees' monthly Medicare or non-
Medicare premium based oil the self-plan. For employees hired after June 30, 2001, and who
retire with at least 15 years but fewer than 25 years of service,the County pays 75% of the
retired employees' monthly Medicare or non-Medicare premium; for those retiring with over
25 years of service, the County pays the entire healthcare premium.
For active employees,the employee's contributions are based upon negotiated collective
bargaining agreements. Employer contributions for employees not covered by collective
bargaining agreements and for retirees are prescribed by the HRS.
- 94 -
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2019
Net OPEB liability—The County's net OPEB liability was measured as of July 1, 2018, and
the total OPEB liability used to calculate the net OPEB liability was determined by an
actuarial valuation as of that date. There were no changes between the measurement date,July
1, 2018, and the reporting date,June 30, 2019,that are expected to have a significant effect on
the net OPEB liability.
Actuarial assumptions—The total OPEB liability in the July 1, 2018 actuarial valuation was
determined using the following actuarial assumptions, applied to all periods included in the
measurement, unless otherwise specified:
Inflation 150%
Salary increases 3.50% - 7.00%, including inflation
Investment rate of return 7.00%
Healthcare cost trend rates
PPO Initial rates of 6.60%; 6.6%and 9.00%; declining to a
rate of 4.86%after 14 years
1-IMO Initial rate of 9.00%; declining to a rate of 4.86% after
14 years
Part B & base monthly Initial rates of 2.00% and 5.00%; declining to a rate of
contribution 4,70%after 14 years
Dental 3.50%
Vision 150%
Life insurance 0,00%
Mortality rates used in the actuarial valuation as of July 1, 2018 were based on the following:
Active members—Multiples of the RP 2014 mortality table for active employees with
generational projection using the BB projection table from the year 2014 based on the
occupation of the member.
Healthy retirees—The 2016 Public Retirees of Hawaii mortality table, generational
projection using the BB projection table from the year 2016 and with multipliers based on
plan and group experience.
Disabled retirees—Base Table for healthy retirees' occupation, set forward 5 years,
generational projection using the BB projection table from the year 2016. Minimum
mortality rate of 3.5% for males and 2.5% for females.
The actuarial assumptions used in the July 1, 2018 valuation were based on the results of an
actuarial experience study for the five-year period ending June 30, 2015.
- 95 -
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2019
Tile long-term expected rate of return on OPER plan investments was determined using a
building-block method in which best-estimate ranges of expected future real rates of return
(expected returns, net of pension plan investment expense and inflation)are developed for
each major asset class. These ranges are combined to produce the long-term expected rate of
return by weighting the expected future real rates of return by the target asset allocation
percentage and by adding expected inflation.
The target allocation and best estimates of arithmetic rates of return for each major asset class
are summarized in the following table:
Long-Term
Strategic Allocation Target Expected Real
(Risk-Based Classes) Allocation Rate of Return
International Equity 17.00% 6.50%
U.S. Equity 15.00% 5.05%
Private Equity 10.00% 8.65%
Core Real Estate 10.00% 4.10%
Trend Following 9.00% 3.00%
U.S. Microcap 7.00% 7M%
Global Options 7.00% 4.50%
Private Credit 6.00% 5.25%
Long Treasuries 6.00% 1.90%
Alternative Risk
Premium 5.00% 2.45%
TIPS 5.00% 0.75%
Core Bonds 3.00% 1.30%
REITS 0.00% OM%
100.00%
Discount rate—The discount rate used to measure the total OPER liability was 7.00%. The
projection of cash flows used to determine the discount rate assumed that the County will fund
the recornmended actuarially determined contribution, which is based on layered, closed
amortization periods. Based on those assumptions,the OPEB plan's fiduciary net position is
projected to be available to make all projected future benefit payments of current plan
members. Therefore,the longterm expected rate of return on OPER plan investments was
applied to all periods of projected benefit payments to determine the total OPER liability.
- 96 -
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2019
Changes in the Net OPEB Liability:
The following schedule presents the changes in the net OPER liability for the fiscal year
ending June 3 0, 2019:
Increase(Decrease)
Total OPER Plan Fiduciary Net OPER
Liability Net Position Liability
(a) (b) (a)-(b)
Balance at June 30, 2018 517,774,914 $_126,320,614 $ 391,454,300
Changes for the fiscal year:
Service cost 12,056,311 12,056,311
Interest on the total OPER liability 36,036,284 36,036,284
Employer contributions 32,829,013 (32,829,013)
Net investment income 9,474,156 (9,474,156)
Benefit payments (17,998,013) (17,998,013)
Administrative expense (29,227) 29,227
Difference between expected
and actual experience (3,679,099) (3,679,099)
Changes of assumptions 7-240-956 7,240
,956
Net changes 33,656,439 $ 24,275,929 $ 9,380,510
Balance at June 30, 2019 $ 551,43 1,353 $ 15,4,596,54;,3 _$ 400,
,,5 834, 10
Sensitivity of the net OPEB liability to changes in the discount rate—Tile following presents
the net OPER liability of the County, as well as what the County's net OPER liability would
be if it were calculated using a discount rate that is I-percentage-point lower(6.00%)or I-
percentage-point higher(8.00%)than the current discount rate:
I% Decrease Current Discount I% Increase
(6.00%) Rate(7.00%) (8.00%)
County's net OPER liability $ 492,405,286 $ 400.,V4,8101 $ 329,31 1,3_21
Sensitivity of the net OPEB liability to changes in the healthcare cost trend rates—The
following presents the net OPER liability of the County, as well as what the County's net
OPER liability would be if it were calculated using a healthcare cost trend rate that is 1-
percentage-point lower(6.0000)or 1-percentage-point higher(8.00%)than the current
discount rate:
Current
Healthcare Cost
I% Decrease Trend Rate 1% Increase
County's net OPER liability $ 325,648,863 $ 4001,,,$34,810 $ 498,683„,746
- 97 -
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30,2019
For the year ended June 30,2019, the County recognized OPER expense of$38,719,073. At
June 30, 2019, the County reported deferred Outflows of resources and deferred inflows of
resources related to pensions from the following Sources:
Deferred Deferred
Outflows Inflows of
of Resources Resources
Net difference between expected and actual experience $ $ 3,146,491
Changes of assumptions 6,192,712
Net difference between projected and actual earnings oil
OPER plan investments 1,696,370
County contributions subsequent to the measurement date 39,770,000
Total 45,)62,712
$39,770,000 reported as deferred outflows of resources related to the County's contributions
to the OPEB, plan subsequent to the measurement date will be recognized as a reduction of the
net OPER liability in the fiscal year ended June 30, 2020.
Other amounts reported as deferred Outflows of resources and deferred inflows of resources
related to pensions will be recognized in pension expense as follows:
Net deferred
(Outflows) inflows
Fiscal YeaLlEndingjune 30g of resources
2020 $ 42,244
2021 42,244
2022 42,243
2023 (492,905)
2024 (515,636)
Thereafter --1468,04-1
$ tj,349,
The EUTF issues a publicly available financial report that includes financial statements and
required supplementary information, which is available on-line at their web-site
www.eutf.haLNaii.,govor by contacting thern at P.O. Box 2121, Honolulu, HI 96805-212L
Deferred Compensation Plan
County employees are permitted to participate in a deferred compensation plan of the State of
Hawai'i, adopted pursuant to Internal Revenue Code(IRC) section 457. The plan permits
eligible employees to defer a portion of their salary until ftitLire years by contributing to a fund
- c98 -
COUNTY OF HAWAPI
Notes tote Basic Financial Statements
June 30,2019
managed by a plan administrator. The deferred compensation amounts are not available to
employees until termination, retirement, death, or unforeseeable emergency.
All plan assets are held in a trust fund to protect them from claims of general creditors and
from diversion to any uses other than paying benefits to participants and beneficiaries. The
County has no responsibility for loss due to the investment or failure of investment of funds
and assets in the plans, but does have the duty of due care that would be required of an
ordinary prudent investor. Therefore, the deferred compensation plan assets are not reported
in the accompanying basic financial statements.
14. COMPONENT UNIT DISCLOSURES
Deposits and Investments
At June 30, 2019, the carrying amount of cash, time certificates of deposit and money market
funds of$51,004,073, with bank balances of$52,005,269 were held by the County on behalf
of the Department. These balances were fully insured or collateralized with securities held by
the County's agent in the County's name.
The deposits and investments include cash received by the Department that is restricted as to
use and is recorded as a restricted asset. Such funds amounted to $888,225 at June 30, 2019.
At June 30, 2019,the Department had $30,000,000 in investments.
Capital Assets
The Department began operations as of January 1, 1950. At that date,the utility plant in
service was transferred to the Department from the County at the cost of the utility plant assets
acquired by the County for its water system from January 1, 1924 to December 31, 1949, less
accumulated depreciation. Acquisitions prior to 1924 and acquisitions by gift or grant prior to
1950 are not included in utility plant. Additions to utility plant since January 1, 1950 are
stated at original cost and include contributions by governmental agencies, private subdividers
and customers at their cost or estimated cost. Construction costs include amounts for contract
work, engineering supervision and other direct and indirect costs. Construction period interest
is capitalized on utility plan constructed with tax-exempt debt.
Depreciation on the Department's utility plant assets in service is computed using the
straight-line method over the estimated useful lives of the assets as follows:
Structures and improvements 40 to 50 years
Machinery and equipment 5 to 25 years
Water systems 10 to 40 years
_ 99 -
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2019
The capital assets of the Department at June 30, 2019 were as follows:
Utility plant in service $508,026,103
Less: accumulated depreciation _(2�6�21 1_l8
245,904,985
Preliminary survey and investigation charges 6,140,398
Construction work in progress 39,306,088
Land and rights 5,204,598
Net capital assets $2 ,556
_ fl69
Long-Term Debt
The County has issued general obligation bonds on behalf of the Department, Tile
Department is responsible for the payment of the debt service on these bonds, but the County
remains liable because they are general obligations of the County. The Department has
recorded a liability for these general obligation bonds,which amounted to $24,769,159 at June
30, 2019.
General obligation bonds payable issued on behalf of the Department and other long-term debt
at June 30, 2019 are comprised of the following:
Public improvement bonds:
2008 Series A at 4.125%,due through 2043 $ 123,915
2010 Series A at 4.0%to 5.0%, due through 2020 485,000
2010 Series B at 3.33%to 6.1%, due through 2030 �4 730,000
Total public improvement bonds 5,338,915
Public improvement refunding bonds:
2007 Series C at 4.0%to 5.0%, due through 2021 1,250,341
2016 Series B at 3.0%to 5.0%, due through 2026 11,257,500
2016 Series E at 2.0%to 5.0%, due through 2029 6,353,750
2017 Series C at 4.0%to 5.0%, due through 2019 568,653
Revolving fund loans:
State revolving fund loans, interest up to 137%,
due through 2038 44,326.655
Total long-term debt 69,095,814
Add: Unamortized premium
Total $70,O22,690
- 100 -
COUNTY OF HAWAVI
Notes tote Basic Financial Statements
June 30, 2019
At June 30, 2019, future principal and interest payments for long-term debt are scheduled as
follows:
Fiscal year ending June 30: Principal Interest Total
2020 $ 5,613,168 1,819,523 $ 7,432,691
2021 5,743,903 1,618,528 7,362,431
2022 5,866,037 1,411,385 7,277,422
2023 4,851,284 1,220,797 6,072,081
2024 4,999,266 1,055,397 6,054,663
2025—2029 23,230,779 2,991,555 26,222,334
2030—2034 12,708,112 827,439 13,535,551
2035—2039 6,053,548 156,326 6,209,874
2040-2044 29,717 3,121 32,838
Total $64,095„$14 $11,104,071 $80,199,885
Contributions in Aid of Construction
The Department recognized $5,031,723 of contributions in aid of construction for the fiscal
year ended June 30, 2019.
Commitments and Contingent Liabilities
Claims and judgments—The Department maintains property,auto liability,and general
liability insurance policies. The Department remains self-insured for workers' compensation
and other perils. The liability at June 30, 2019 for workers' compensation claims of$779,000
was estimated based on a combination of case-by-case review and the application of historical
experience to outstanding claims.
Construction contracts—The Department is obligated under construction contracts for the
utility plant and other projects. Such commitments approximated $43,754,063 at
June 30, 2019.
Pension Plan
Pension liabilities,pension expense, and deferred out os of resources and deferred
inflows of resources related to pensions—At June 30,2019,the Department reported a
liability of$33,522,053 for its proportionate share of the net pension liability. The net pension
liability was measured as of June 30, 2018,and the total pension liability used to calculate the
net pension liability was determined by an actuarial valuation as of that date. The
Department's proportion of the net pension liability was based on a projection of the employer
contributions to the pension plan relative to projected contributions of all participating
employers.
- 101
COUNTY OF HAWAVI
Notes to the Basic Financial Statements
June 30, 2019
At June 30, 2018,theDepartment's proportion was .25%, which increased by 0.03% from its
proportion measured as of June 30, 2017.
For the year ended June 30, 2018,the Department recognized pension expense of$5,162,420.
At June 30, 2019,the Department reported deferred outflows of resources and deferred
inflows of resources related to pensions from the following sources:
Deferred Deferred
Outflows Inflows of
of Resources Resources
Differences between expected and actual experience $ 604,656 $ 210,052
Net difference between projected and actual investment
earnings on pension plan investments -- 173,185
Changes in assumptions 3,614,219 --
Changes in proportion and differences between employer
contributions and proportionate share of contributions 3,752,674 868,357
Department contributions subsequent to the measurement date 1.950,328 ®-
Total L22LI,837 ` 1,;51,59-4
The $1,950,328 reported as deferred outflows of resources related to the Department's
contributions to the pension plan subsequent to the measurement date will be recognized as a
reduction of the net pension liability in the fiscal year ended June 30, 2020.
Other amounts reported as deferred outflows of resources and deferred inflows of resources
related to pensions will be recognized in pension expense as follows:
Net Deferred
Outflows
(Inflows)of
Fiscal Year Fndin June 304 Resources
2020 $ 2,516,812
2021 1,959,638
2022 1,299,979
2023 664,488
2024 2794038
$ ,71.9,95.
Sensitivity of theDepartment's proportionate.share of lite net pension liability to changes in
the discount rate..--The following presents theDepartment's proportionate share of the net
pension liability calculated using the discount rate of 7.00%, as well as what its proportionate
- 102 -
COUNTY OF HAWAII
Notes tate Basic Financial Statements
June 30, 2019
share of the net pension liability would be if it were calculated using a discount rate that is 1-
percentage-point
-percentage-point lower(6.00%)or 1-percentage-point higher(8.00%)than the current rate:
I% Decrease Current Discount I% Increase
(6.00%) Rate(7.00%) (8.00%)
Department's proportionate
share of the net pension liability $ 43,590,009 $ 3,3,522,05 $..,25,,,222,572
Pension planfiduciary net position—Detailed information about the pension plan's fiduciary
net position is available in the separately issued ERS Comprehensive Annual Financial Report
that includes financial statements and required supplementary information.
Payables to the pension plait—At June 30, 2019,the annual amount payable to the ERS
totaled $106,258, which represents the employer contribution for the month of June 2019, as
required by HRS.
Post-Retirement Benefits Other than Pensions(OPEB)
Net OPEB liability, OPEB expense, and deferred out 7ows of resources and deferred inflows
of resources related to OPEB—At June 30, 2019,the Department reported a net OPEB
liability of$16,431,746. The net OPE B liability was measured as of July 1, 2018, and the
total OPE B liability used to calculate the net OPE B liability was determined by an actuarial
valuation as of that date. For the year ended June 30,2019, the Department recognized OPEB
expense of$1,691,200.
At June 30,2019,the Department reported deferred outflows of resources and deferred
inflows of resources related to pensions from the following sources:
Deferred Deferred
Outflows Inflows of
of Resources Resources
Net difference between expected and actual experience $ $ 1,005,637
Changes of assumptions 367,012
Net difference between projected and actual earnings on OPEB
plan investments 188,871
Employer contributions subsequent to the measurement date 1,990,000
Total $ 2,357,012 $ 1,194,508
$1,990,000 reported as deferred outflows of resources related to the Department's
contributions to the OPER plan subsequent to the measurement date will be recognized as a
reduction of the net OPE B liability in the fiscal year ended June 30, 2020.
- 103 -
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30,2019
Other amounts reported as deferred outflows of reSOLirces and deferred inflows of resources
related to pensions will be recognized in pension expense as follows:
Net Deferred
Outflows
(Inflows) of
Fiscal Year Ending June 30 Resources
2020 $ (175,635)
2021 (175,635)
2022 (175,637)
2023 (115,920)
2024 (113,489)
Thereafter (71,1 f3 D
S 027,490),
Sensitivity of the net OPEB liability to changes in the discount rate—The following presents
the net OPER liability of the Department, as well as what the Department's net OPER liability
would be if it were calculated using a discount rate that is I-percentage-point lower(6.00%)or
1-percentage-paint higher(8,00%) than the current discount rate:
I% Decrease Current Discount 1% Increase
(6.00%) Rate(7.00%) (8,00%)
Department's net OPER liability E4,,,191,806
Sensitivity of the net OPEB liability to changes in the healthcare cost trend rates—The
following presents the net OPER liability of the Department, as well as what the Department's
net OPER liability would be if it were calculated using a healthcare cost trend rate that is 1-
percentage-point
-percentage-point lower(6,00%)or I-percentage-point higher(8.00%)than the current
discount rate:
Current
Healthcare Cost
I% Decrease Trend Rate I% Increase
Department's net OPER liability iJ=UjA.743 $_ ,
The EUTF issues a publicly available financial report that includes financial staternents and
required supplementary information, which is available on-line at their web-site
www.eLltf.haAqjj4gy or by contacting them at P.O. Box 2121, 1-101101LIlLi, HI 96805-2121.
- 104 -
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30,2019
Prior Period Adjustment
The financial statements of the Department for the fiscal year ended June 30, 2018 contained
an error related to capital assessment fees, which were recorded incorrectly as a liability.
These balances should have been treated as an exchange-type transaction where revenues are
recorded when measurable and probable of collection.
An adjustment was made to reduce non-current customer deposits and increase unrestricted
net position by $1,641,537 as of June 30, 2018. Beginning net position as of July 1, 2017 was
also increased by $1,641,537.
- 105 -
COUNTY OF HAWAII
Required Supplementary Information
June 30, 2019
Schedule of Changes in the Net OPER Liability and Related Ratios
Last 10 Fiscal Years*
2019
Counly RoUtment
Total OPER Liability
Service Cost $ 12,056,311 $ 698,126
Interest on the total OPEB liability 36,036,284 2,264,524
Benefit payments (17,998,013) (1,016,548)
Difference between expected and actual
experience (3,679,099) (1,184,347)
Change in assumptions 432233
Net change in total OPER liability 33,656,439 1,193,988
Total OPER liability- Beginning 517,774,914 32,5 09,555
Total OPER liability- Ending $ 551,43 1,353 $ 33,703,543
Plan fiduciary net position
Contributions - employer $ 32,829,013 $1,936,548
Net investment income 9,474,156 1,111,306
Benefit payments (17,998,013) (1,016,548)
Administrative expense ----.L29.,2-27� (3.336
Net change in plan fiduciary net position 24,275,929 2,027,970
Plan fiduciary net position - Beginning 126,320,614 15,243,827
Plan fiduciary net position - Ending $ 150,596,543 $ 17,271,797
Net OPER liability $ 400,834,810 $ 16,431,746
Plan fiduciary net position as a percentage of
the total OPER liability 27,3% 51.3%
Covered-employee payroll $ 174,190,644 $ 10,212,595
Net OPER liability as a percentage of
Covered-employee payroll 230.1% 160,9%
- 106 -
COUNTY OF HAWAII
Required Supplementary Information
June 30, 2019
2018
Coun_q Department
Total OPER Liability
Service Cost $ 11,757,502 687,414
Interest on the total OPE B liability 34,046,407 2,135,490
Benefit payments (17,054M7) (953,288)
Net change in total OPER liability 28,748,922 1,869,616
Total OPE B liability- Beginning 489,025,99230,6399939
Total OPER liability- Ending $ 517,774,914 $ 32,509,555
Plan fiduciary net position
Contributions-employer $ 28,549,987 $1,867,788
Net investment income 10,380,705 1,245,946
Benefit payments (17,054,987) (953,288)
Administrative expense (23,228) (2,782)
Other 266,457 16,370
Net change in plan fiduciary net position 22,118,934 2,174,034
Plan fiduciary net position - Beginning 104,201,680 13,069,793
Plan fiduciary net position - Ending $ 126,320,614 $ 15,243,827
Net OPER liability $ 391,454,300 $ 17,265,728
Plan fiduciary net position as a percentage of
the total OPER liability 24.4% 46.9"//o
Covered-employee payroll $ 168,570,640 $ 9,791,132
Net OPER liability as a percentage of
Covered-employee payroll 232.22% 176.34%
This schedule is intended to present information for 10 years, as of the measurement date of the
collective net OPER liability for each respective fiscal year. Additional years will be built
prospectively as infon-nation becomes available.
See accompanying notes to required supplementary information
- 107 -
COUNTY OF HAWAII
Required Supplementary Information
June 30, 2019
Schedule of Contributions (OPEB) Last 10 Fiscal Years
C o u n..q.
............. ......................................................
Contributions Contributions
in Relation to as a%age
Actuarially the Actuarially Contribution Covered- of Covered-
Fiscal Year Deten-nined Determined Deficiency Employee Employee
Ended Contribution Contribution (Excess) -011 P roll
.................--................................................ 4X - �
June 30, 2019 $ 39,770,000 $ 39,770,000 $ 179,777,415 22.1%
.....................................--.............................................................................................................................. ... ... ..............
June 30, 2018 $ 37,748,000 $ 32,829,013 $ 4,918,987 $ 174,190,644 18.8%
.................................................. ............................
June 30, 2017 $ 36,472,000 $ 28,549,987 $ 7,922,013 $ 168,570,640 16.9%
........................... ............................................. ....................................
June 30, 2016 $ 33,614,000 $ 22,747,340 $ 10,866,660 $ 159,744,324 14.2%
-.................................................................... ...................................... — ....................................................
June 30, 2015 $ 32,478,000 $ 18,657,000 $ 13,821,000 $ 152,490,296 12.2%
........................................................................... - I ............................................................... ...............................
June 30, 2014 $ 30,526,000 $ 17,453,000 $ 13,073,000 $ 139,423,481 12.5%
. ... .............................................................
June 30, 2013 $ 29,494,000 $ 13,892,000 $ 15,602,000 $ 130,803,306 10.6%
............................................................................... ...........................................
June 30, 2012 $ 36,193,000 $ 13,730,000 $22,463,000 $ 124,452,126 11.0%
........................................................................................................................................................................... .....................................................
June 30, 2011 $ 34,969,000 $ 31,104,000 $ 3,865,000 $ 127,859,606 24.P,o
WWm
..................................................................................... ....................--- -- ---..................................
June 30, 2010 $ 25,046,000 $ 28,182,000 ($ 3,136,000) $ 133,555,000 21.1%
......................... -------------------
_.P5!:jK!!pent.:...........................................................................................................................- ........-------------------------------------------------------------- .......................................................
Contributions Contributions
in Relation to as a%age
Actuarially the Actuarially Contribution Covered- of Covered-
Fiscal Year Determined Deten-nined Deficiency Employee Employee
Enc!50 !g2n.t..r.i.b.ution Contribution (Excess) P ,
............................... .................................... .......... ....................a�.Eol.................
June 30, 2019 $ 1,990,000 $ 1,990,000 $ -- $10,829,700 18.4%
...................................-----------------------------------------------------------------
........................................................................................ ..................... ............
June 3-02-2-0-1-8 $ 1,933,000 $ 1,936,548 ($ 3,548) $10,212,595 Mo%
1,867,000 $ 1,867,788 ($ 788) $ 9,791 132 19.1%
------ ----------- ..............................................................----------------------------..........................................2 ------------------------------
p 30, 2017 $
........2.0.1_
....... ... ... . .....................
June""30 2"0""1 6...............$ 1,"91""4","0"00 $ 1,913,204 $ 796 _______$_9,464,649_
9,464,649 --------2-0---.-2---%-----------
-.1—— I —.....—.I............... ...........................--...............-- -------------------------------------------------_____________.._______._.w_.._.. ..-.., . ................................................
June 30, 2015 $ 1,850,000 $ 1,848,389 $ 1,611 $ 9,426,509 19.6%
————————————————————————————— ------------———————n-———————— ————————————————————————————————--------------------------........................................................................................................................
June 30, 2014 $ 1,899,000 $ 1,900,758 ($ 1,758) $ 8,6355402 22.0%
—————————————————————————————r-------------———————n—_————————_______.._________.____-a_- .._a.__.__ ..........................................................................................................................................................
June 30, 2013 $ 1,834,000 $ 1,833,733 $ 267 $ 7,966,529 23.0%
........................................................... ............................................................................................................................................................................-... ......
June 30, 2012 $ 2,400,000 $ 2,401,487 ($ 1,487) $ 8,182,968 29.40!�o.
-.-........................................ .... ................----------------_..........._............m
----------------------------------------------------------------------------------------------------------------------- ---------------- - ----
� June 30, 2011 $ 2,319,000 $ 2,067,678 $ 251,322 $ 8,056,398 25JO/0
...........................---........................................................................
June30, 2010 $ 1,607,000 $ 1,963,719 ($ 356,719) � $9,459,759 2U%
.............-—............................................................................I......................................................................................................................
See accompanying notes to required supplementary information
- 108 -
COUNTY OF HAWAII
Required Supplementary Information
June 30, 2019
Note—Significant Methods and Assumptions
Beginning July 1, 2017, an actuarial valuation of the County's and Department's liability
associated with other postemployment benefits other than pension provided through the EUT F is
performed as of July I of each year.
The following summarizes the significant methods and assumptions used to determine the
actuarially determined contribution for the fiscal year ended June 30, 2019:
Actuarial valuation date July 1, 2017
Actuarial cost method Entry Age Normal
Amortization method Level percent,closed
Equivalent single amortization period 20.2 and 18.9 for the County and Department,
respectively
Asset valuation method Market
Inflation rate 2.50%
Investment rate of return 7.00%
Payroll growth 3.50%
Salary increases 3.50%to 7.00% including inflation
Healthcare cost trend rates
PPO Initial rates of 6.60%, 6.60% and 9.00%;
declining to a rate of 4.86%after 14 years
HMO Initial rate of 9.00%; declining to a rate of 4.86%
after 14 years
Part B Initial rate of 2.00% and 5.00%; declining to a
rate of 4.70%after 14 years
Dental 3.50%
Vision 2.50%
Life Insurance 0.00%
- 109 -
COUNTY OF HAWAII
Required Supplementary Information
June 30, 2019
Demographic assumptions Based on the experience study covering the five
year period ending June 30,2015 conducted for
the Hawaii Employees' Retirement System
Mortality System-specific mortality tables
Participation rates 98% healthcare participation assumption for
retirees that receive 100%of the Base Monthly
Compensation. Healthcare participation rates of
25%, 65%, and 90% for retirees that receive 0%,
50%, or 75%of the base monthly contribution,
respectively. 100% for life insurance and 98%
for Medicare Part B.
There were no other factors that significantly affected trends in the amounts reported in the
schedule of changes in the net OPEB liability and related ratios or the schedule of contributions
(OPEB).
COUNTY OF HAWAII
Required Supplementary Information
June 30, 2019
Schedule oft e County's and Department's Proportionate Share
of the Net Pension Liability (ERS)
Last 10 Fiscal Years
County:
Proportionate
Share of the Plan
County's County's Net Pension Fiduciary Net
Proportion of Proportionate Liability as a Position as a
the Net Share of the County's %age of %age of the
Measurement Pension Net Pension Covered Covered Total Pension
Period Ended Liabil P
........... roll ge.Liabitity",
_"Pay
eO O4
------- --------- -------
June 30, 2018 4.8% $635,693,501 $168,484,880 377.3% 55.48%
June 30, 2017 4.7% $609,904,199 $163,626,447 372.7% 54.8%
June 30, 2016 4.6% $618,129,088 $156,556,514 394.8% 51.2%
June 30, 2015 4.4% $382,070,813 $149,760,317 255.1% 62.4%
June 30, 2014 4.0% $322,626,262 $137,669,418 234.3% 63.9%
June 30, 2013 4.2% $377,065,856 $129,153,763 292.0% 58.0%
Department:
Proportionate
Share of the Plan
Department's Department's Net Pension Fiduciary Net
Proportion of Proportionate Liability as a Position as a
the Net Share of the Department's %age of %age of the
Measurement Pension Net Pension Covered Covered Total Pension
Period Ended Liability(%) Liability($) Payroll Payroll Liability �
June 30, 2018 0.3% $ 33,522,053 $ 9,742,400 344.1% 55.48%
June 30, 2017 0.2% $ 28,365,453 $ 9,358,187 303.1% 54.8%
June 30, 2016 0.2% $ 29,247,607 $ 9,046,930 323.3% 51.2%
June 30, 2015 0.2% $ 18,940,065 $ 9,012,196 210.2% 62.4%
June 30, 2014 0.3% $ 20,526,993 $ 8,272,307 248.1% 63.9%
June 30, 2013 0.2% $ 18,469,400 $ 7,640,477 241.7% 58.0%
* This schedule is intended to present infon-nation for 10 years, as of the measurement date of the
collective net pension liability for each respective fiscal year. Additional years will be built
prospectively as information becomes available.
See accompanying notes to required supplementary infon-nation
- 111 -
COUNTY OF HAWAII
Required Supplementary Information
June 30, 2019
Schedule of the Employer Pension Contributions( )
Last Ten Fiscal Years
County:
Actual
County Contributions
Statutorily Contributions Contribution as a%age of
Fiscal Year Required Recognized Deficiency County's Covered
,,,E,,n,d,,,e,d, Co'ntri,bution _'_by__t,,he_,P1Ja,n----—-----–_(Excess)..............—,Covered Pavr1oll Pa roll
June 30, 2019 $ 44,853,953 $ 44,853,953 $ $ 172,197,101 26.0%
June 30, 2018 $ 41,562,933 $ 41,562,933 $ $ 168,484,880 24.7%
June 30, 2017 $ 36,157,981 $ 36,157,981 $ $ 163,626,447 22.1%
June 30, 2016 $ 34,013,001 $ 34,013,001 $ $ 156,556,5 14 21.7%
June 30, 2015 $ 31,456,148 $ 31,456,148 $ $ 149,760,3 17 21.0%
June 30, 2014 $ 26,503,830 $ 26,503,830 $ $ 137,669,418 19.3%
June 30, 2013 $ 23,763,101 $ 23,763,101 $ $ 129,153,763 18.4%
June 30, 2012 $ 20,884,021 $ 20,884,021 $ $ 123,218,017 16.9%
June 30, 2011 $ 21,424,642 $ 21,424,642 $ $ 126,714,584 16.9%
June 30, 2010 $ 22,120,137 $ 22,120,137 $ $ 132,253,481 16.7%
Department:
Actual
County Contributions
Statutorily Contributions Contribution as a%age of
Fiscal Year Required Recognized Deficiency County's Covered
Ended Contribution the Plan (Excess) Covered Payroll Payroll
------....................................
June 30, 2019 $ 1,950,358 $ 1,950,358 $ $ 10,318,136 18.9%
June 30, 2018 $ 1,757,461 $ 1,757,461 $ $ 9,742,400 18.0%
June 30, 2017 $ 1,603,278 $ 1,603,278 $ $ 9,358,187 17.1%
June 30, 2016 $ 1,553,128 $ 1,553,128 $ $ 9,046,930 17.2%
June 30, 2015 $ 1,520,994 $ 1,520,994 $ $ 9,012,196 16.9%
June 30, 2014 $ 1,664,580 $ 1,664,580 $ $ 8,272,307 20.1%
June 30, 2013 $ 1,214,933 $ 1,214,933 $ $ 7,640,477 15.9%
June 30, 2012 $ 1,210,106 $ 1,210,106 $ $ 7,849,473 15.4%
June 30, 2011 $ 1,197,031 $ 1,197,031 $ $ 7,726,278 15.5%
June 30, 2010 $ 1,417,853 $ 1,417,853 $ $ 9,076,143 15.6%
See accompanying notes to required supplementary information
- 112 -
COUNTY OF HAWAII
Required Supplementary Information
June 30, 2019
Note—Changes of Assumptions
There were no changes of assumptions or other inputs that significantly affected the measurement
of the total pension liability since the measurement period ended June 30, 2016.
Arnounts reported in the schedule of the proportionate share of the net pension liability as of the
measurement period ended June 30, 2016(fiscal year ended June 30, 2017)were significantly
impacted by the following changes of actuarial assumptions:
The investment return assumption decreased from 7.65%to 7.00%.
Mortality assumptions were modified to assume longer life expectancies as well as to reflect
continuous mortality improvement.
Prior to the measurement period ended June 30, 2016(fiscal year ended June 30, 2017), there were
no other factors, including the use of different assumptions that significantly affect trends reported
in these schedules.
113 -
COUNTY OF HAWAII
Required Supplementary Information
June 30, 2019
Schedule of Changes in Total Pension Liability(Bandsmen Pension)
Last Ten Fiscal Years*
Measurement year ending 2019 2018 2017
June 30,
Total Pension Liability
Service Cost $ 7,392 $ $ 16,416
Interest on the Total
Pension Liability 38,149 36,289
Differences between
expected and actual
experience (89,947) --
Assumption Changes (44,293) (113,807)
Benefit Payments --(41.532) --(58,808) —(51347)
Net Change in Total
Pension Liability (136,231) (58,808) (114,449)
Total Pension Liability—
e innin
eginning 1,087,972 1,146,780- 1,261,229
Total Pension Liability—
n in
nding $ 951,741 $ 1,0187,97-2 $ 1,1146,7180
Covered Employee
Payroll $ 26,349 $ 49,505 $ 49,505
Total Pension Liability as
a Percentage of Covered
Employee Payroll 3,612.1% 2,197.7% 2,316.5%
This schedule is intended to present infon-nation for 10 years, as of the measurement date of the
total pension liability for each respective fiscal year. Additional years will be built prospectively
as information becomes available.
See accompanying notes to required supplementary information
- 114 -
NONMAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
HIGHWAY FUND- Used to account for the costs of maintaining the County's highways and streets.
Financing is provided primarily by fuel,motor vehicle weight and public utility franchise taxes.
SEWER FUND-Used to account for costs of operating the County's various sewer systems. Financing is
provided by charges to users for sewer services.
SOLID WASTE FUND Used to accumulate moneys for the operation, maintenance,and administration of
the County's solid waste management,collection and disposal systems. Financing is provided by tipping
fees at the landfills and by disposal permit fees.
CEMETERY FUND- Used to accumulate moneys to guarantee the future maintenance of County cemetery
sites, Financing is provided from the sale of burial lots in County cemeteries.
PARKING METER FUND-Used to account for the costs of maintaining County on-street and off-street
parking areas. Financing is provided by the proceeds from parking meters.
VEHICLE DISPOSAL FUND- Used to accumulate moneys for the towing, removal, disposal and recycling
of abandoned or discarded automobiles and automobile parts. Financing is provided by annual fees
collected with motor vehicle registrations,
BIKEWAY FUND- Used to accumulate moneys for the construction of bikeways within the County.
Financing is provided by bicycle license fees,
WORKFORCE INVESTMENT ACT FUND-Used to account for employment and training services
provided to economically disadvantaged adults, dislocated workers and youth. Financing is provided by
federal grants.
GOLF COURSE FUND- Used to account for the cost of operating the Hilo Municipal Golf Course.
Funding is provided from green fees and payments from restaurant and pro shop concessionaires.
GEOTHERMAL RELOCATION AND COMMUNITY BENEFITS FUND- Used to account for the County's
share of geothermal resource royalties received from the operator of a geothermal power plant located in the
County, The funds are earmarked for a geothermal relocation program and to benefit the lower Puna area,
BEA UTIFICA TION FUND- Used to accumulate moneys for the beautification of highways and disposal of
abandoned vehicles within the County. Financing is provided by assessments on vehicle registrations.
HAWAII COUNTY HOUSING AGENCY-Used to account for Federal and County moneys used to provide
public housing assistance within the County.
PARK DEDICATION FUND-Used to account for moneys deposited with the County by subdividers to
provide land for parks and playgrounds in subdivisions,
GENERAL EXCISE TAX FUND Used to account for moneys collected from the general excise tax
surcharge.
SHORT-TERM VACATION RENTAL ENFORCEMENT FUND Used to account for cost of enforcing
County's short-term vacation rental enforcement laws. Financing is provided by all fees and fines collected
in connection with the law,
DEBT SERVICE FUND
INTEREST FUND- Used to accumulate moneys for payment of interest on general obligation bonds.
Moneys required to service interest maturities are transferred annually from the General Fund.
BOND REDEMPTION FUND-Used to accumulate moneys for the payment of general obligation bonds.
Moneys required to retire the bonds are transferred from the General Fund one year in advance of maturity.
This page intentionally left blatik,
- 115 -
COUNTY OFHAWAII
Nuomu 'wrGwverummnka) Fuudm
Combining Balance Sheet
June 3Q,2O|g
Special RFunds
Solid
Highway Sewer Waste Cemetery h1utcr
Fund PoudFund Food Fund
Am*mtm
Cash and cash equivalents $i3'O89'770 $ 9,448,479 $14,363.536 $152,409 $299,059
Investments - - - - ^
[napres1fbnd - 400 250 - -
Receivables:
Due from other governments 3.940,401 172`918 541,470 - -
Due from other governmental funds 377,964 86,086 52,373 - -
Due from other nongovernmental funds - 3,500 - - -
Trade,net mf allowance Iordoubtful accounts - 1,626,672 1,557`414 - -
Real estate held for sale - - - - -
Other ' - - - -
4,326,365 1,889,168 2,151,257
Total assets $17,416,135 $11,338,047 $16,515,043 $152,409 $299,059
Liabilities,Deferred Inflows and Fund Balances
Liabilities:
Accounts payable $ 1`161,355 $ 262.101 $ 2,477,330 $ -
Accrued payroll 589,841 210.327 404,034 - -
Due toother governmental funds 888,050 484'752 827,239 - -
Advance Col cutiooa-Intergovernmental - - 11,998 - -
Other 2880,428 31
- -
Total liabilities 2,560,074 1,045,6083,720,632
Deferred Inflows of Resources
Unavailable Revenue - 1,626,672 1,557,414
Fund balances:
Restricted for:
Debt service -
Highways,streets and abandoned vehicles 14.856,081
Housing and rental assistance - - - - -
Committed to:
Sanitation - 8,665,767 11,236i997 - -
Highways,streets and abandoned vehicles - - - ' 299,059
Rental assistance and subsidy - - - - -
Cemetery - - - 152,409 -
Lower Puna area - ' ' - '
Parks and recreational projects ' - - - -
Unassigned - _ -
Total fund 6mlanceo14,856,0618,665,76711,236,997 152,409 299,059
'Total liabilities,deferred inflows
and fund 6a|uncee $l65l5O43
����� ����� ����� $152,409 $299,059
Special Revenue Funds
Vehicle Workforce Golf Geothermal Rekix Beauti- H',I\Qii COUnty Park
Disposal Bikeway Innovition& Course &Community fication Housing Dedication
Fund Fund oj,pal, n tfmFund Bnefits I'Mid Fund Al engFund
.......................
$10,623,273 $650,370 $ 28,068 $4,274,235 $ 486,875 $2,868,787 $ 29,438
- - - - 61,727
2,000 - 800 -
194,949 - - 143,324
- - 139,356
38,991 1,,995 61,447 M
233,940 �,995 344,127 186
.. . .. ........... ------. .........
$10,623,273 $650,370 $ 233,940 $ 32,063 $4,274,235 $ 486,875 $ 3,213,714 $ 91,351
$ 196,737 $ $ 1,997 $ 2,760 2,367 $ 69,811
6,356 - 51,900 - 155,160
53,415 231,943 - 18,825 57,459
---------------__ - - - - ------------- --30-9,2.19
256,508 233,940 54,660 21,192 591,649
- - 56,5 10
........................... ................ . .. ...................
650,370 465,683
- - 1,311,609
10,366,765 -
1,253,946
4,274,235 -
- - 91,351
_597 -
10,366,765 650,370 2L59J7 4,274,235 465,683 2,565,555 91,351
$10,623,273 $650,370 233,940 $ 32,063 $4,274,235 $ 486,875 $ 3,213,714 $ 91,351
(Continued)
117 -
COUNTY OF HAWAII
Nonmajor Governmental Funds
Combining Balance Sheet
June 30,2019
(Concluded)
Special Revenue Funds Debt Service Fund Total
General Short-term Bond Nortmajor
Excise Vacation Rental Interest Redemption Governmental
Tax Fund Enl'orcernent Fund Fund Fund Funds
Assets
Cash and cash equivalents $ S 257,037 $3,703,121 $ 8,493,339 S 68,767,796
Investments 21,255,026 21,316,753
Imprest fund - 3,450
Receivables:
Due from other governments 8,641,986 - - 13,643,040
Due from other governmental funds - - 16 655,795
Due from other nongovernmental funds - - - 3,500
Trade,net of allowance lot doubtful accounts - - - 3,184,086
Real estate field for sale - - - -
Other - 8,072 - 110,691
8,641,986 8,072 16 17,597,112
Total assets $8,641,986 $ 257,037 $3,71 1,193 $29,748,381 $107,685,111
Liabilities,Defer-red Inflows and Fund Balances
Liabilities:
Accounts payable $ 102,847 $ - $ $ - $ 4,277,305
Accrued payroll - 5,886 - 1,431,504
Due to other governmental funds 2,497,958 - 16 - 4,980,457
Advance Collections-Intergovernmental - - - 11,998
Other 63,199 185,000 637,905
Total liabilities 2,600,805 5,886 63,215 185,000 11,339,169
Deferred Inflows of Resources
Unavailable Revenue - - - 31240,596
Fund balances:
Restricted for:
Debt service - 3,647,978 29,563,381 33,211,359
Highways,streets and abandoned vehicles 6,041,181 - - - 22,013,295
Housing and rental assistance - 251,151 - - 1,562,760
Committed to:
Sanitation - - - 19,902,764
Highways,streets and abandoned vehicles - - - 10,665,824
Rental assistance and subsidy - - - - 1,253,946
Cemetery - - - - 152,409
Lower Puna area - - - - 4,2741,235
Parks and recreational projects - - - - 91,351
Unassigned - - - - (22,597)
Total fund balances 6,041,181 251,151 3,647,978 29,563,381 93,105,346
Total liabilities,deferred inflows
and fund balances $8,641,986 $ 257,037 $3,711,193 $29,748,381 $107,685,111
See accompanying independent auditors'report.
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- 119 -
COUNTY 0yHAWAII
Nunmm 'or Governmental Foods
Combining Statement of Revenues, Expenditures,and Changes in Fund Balances
For the Fiscal Year Ended June 3O,20l0
Special Revenue Funds
Solid Parking
Highway Sewer Waste Cemetery Meter
FundFond Fund Fund Fund
Revenues
Poe| toxms S 17,343,326 $ S - S -
Public utility franchise taxes 9,441,986 - - - -
Licenses and permits 12.499,695
General excise tax surcharge - - - - -
Intergovernmental 2,803,419 155,529 756,540 - -
Charges for services - 7,780,531 15,143,943 - 20,294
Investment earnings(loss) - - - - -
Other 929,727 1,491 187,612 10,580 -
Total revenues 43,018,153 7,945,551 16,000,095 10l500 20,294
Expenditures
Current:
General Government 91^509 - - - -
Public safety 8,303,956
Highways and streets 22,441,306 - - - -
Health,education and welfare -
Culture and recreation - - - - --'
Sanitation - 8,999,605 31,972,519 - -
Pension and retirement contributions 2,655,1 16 844,757 1,701,234 - -
Employees' health insurance 1,198`162 297'319 802,836 ' -
Other 911,503 181,097 324,356 - '
Debt service:
Principal 713,726 8,056 1,115,904 - -
Interest 66J251,123121 - -
Total expenditures 36,382,003 10\332,757 36,118,204 -
Excess(defioiency)otrevenues
over(umder)expenditures 6,636J5OK��OB 20,294
Other Financing Sources (Uses)
Transfers in ' 2,987,014 19'281,770
|nu/ouyca in capital |eumcm 1,356,644 - 2,036.761 - -
Transfers out -- - -
__
Tota} other financing sources(umea) 2,907,914 22,218,531
Net change iofund balances 4.474,749 600,700 2,180,342 10,500 20,294
Fund balances e1beginning ofyear 10i381,312 8,065,059 9,048,655 141,909 278,765
Fund balances a1end m[year $ 14,856,061 $ 8,665,767 $ U,236,997 $ 152,409 $299,050
- \2Q -
Special Revenue Funds
Vehicle Wolkfolce Golf Gewhermal Reloc. Beauti- Hawaii County Park
Disposal Bikeway Innovation& Course &Commurmy fication Housing Dedication
Fund Fund Fund Benefits Fund Fund ne Fund
2,444,784 45,952 203,753
689,797 - 20,724,490
6,130 643,737 - -
_ - - 2,817 2,809
35,978 - - 2,052 657,678 -
2,486,892 45,952 689,797 643,737 2,052 203,753 21,384,985 2,809
46,832 - 236,394 -
- 686,989 - - 21,371,468
- 1,109,748 83,761 -
1,691,082 - - - -
28,795 2,808 231,567 717,677
13,339 - 112,525 335,007
32,230 8,168
- 5,097 58
1,733,216 46,832 689,797 1,491,167 320,155 22,432,378
753,676 __C8§JO __( 47,!3JO 2,052 (116,402) (1,047,32J3 2,809
760,368 1,256,200
100,320 -
860,688 1,256,200
753,676 (880) 13,258 2,052 (116,402) 208,807 2,809
9,613,089 651,250 __X5,855) 4,272,183 582,085 2,356,748 88,542
$ 10,366,765 $ 650,370 _(22IL97) 4,274,235 $ 465,683 $ 2,565,555 91,351
(Continued)
121
COUNTY OF HAWAII
Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
For the Fiscal Year Ended June 30,2019
(Concluded)
Special Revenue Funds Debt Service Fund Total
General Sha_rt-tcrin Bond Nonmajor
Excise Vacation Rental Interest Redemption Governmental
Tax Fund Enforcement Fund Fund Fund Funds
Revenues
Fuel taxes $ $ $ $ $ 17,343,326
Public utility franchise taxes 9,441,986
Licenses and permits 270,000 - 15,464,184
General excise tax surcharge 12,518,126 - - 12,518,126
Intergovernmental - 358,215 - 25,487,990
Charges for services - - 23,602,635
Investment earnings(loss) 58,725 - 64,351
Other - - - 1,825,038
Total revenues 12,518,126 270,000 416,940 105,747,636
Expenditures
Cur-rent:
General Government 18,588 110,097
Public safety - - 8,303,956
Highways and streets 2,371,945 25,096,477
Health,education and welfare 22,058,457
Culture and recreation - 1,193,509
Sanitation - - 42,663,206
Pension and retirement contributions - 261 6,262,215
Employees'health insurance - - 2,759,188
Other 1,417,756
Debt service:
Principal - 27,267,469 29,145,553
Interest - 18,663,737 - 18,858,175
Total expenditures 2,371,945 18,849 18,663,737 27,267,469 157,869,589
Excess(deficiency)of revenues
over(under)expenditures 10,146,181 251,151 (18,246,79T) (52,120,953)
Other Financing Sources(Uses)
Transfers in - - 19,137,824 26,191,320 69,615,396
Increases in capital leases - - - 4,393,725
Transfers out (4,105,000 - )?-L,04
Total other financing sources(uses) f4,105,00B 19,137,824 26,191,320 66,386,076
Net change in fund balances 6,041,181 251,151 891,027 (1,076,149) 14,265,123
Fund balances at beginning of year - - 2,756,951 30,639,530 78,840,223
Fund balances at end of year $ 6,041,181 $ 251,151 $ 3,647,978 $29,563,381 $ 93,105,346
See accompanying independent auditors'report.
- 122 -
COUNTY OF HAWAII
Highway Fund
Schedule of Revenues, Expenditures,and Changes in Fund Balance-
Budget and Actual(Budgetary Basis)
For the Fiscal Year Ended June 30,2019
Actual Variance
Original Final (Budgetary Positive
Bud et Buda. Basis} Ng -vJ
Revenues:
Taxes:
Fuel taxes $ 17,151,903 $ 17,151,903 $ 17,343,326 $ 191,423
Public utility franchise taxes 7,800,000 7,800,000 9,441,986 1,641,986
Total taxes 24,951,903 24,951,903 26,785,312 1,833,409
Licenses and permits- motor vehicle weight taxes 11,700,000 11,700,000 12,499,695 799,695
Intergovernmental 1,600,000 1,600,000 2,730,191 1,130,191
Charges for services 500,000 500,000 362,247 (137,753)
Other 85,000 85,000 567,480 482,480
Total revenues 38,836,903 38,836,903 42,944,925 4,108,022
Expenditures:
General government-engineering 88,248 88,248 80,911 7,3337
Public safety-protective inspection 5,300 5,300 3,173 2,127
Public safety-traffic engineering 9,232,362 9,645,362 8,547,224 1,098,138
Highways and streets 14,485,993 14,072,993 13,102,862 970,131
Highways and streets-mass transit 9,200,000 9,200,000 9,009,763 190,237
Pension and retirement contributions 2,575,000 2,800,000 2,655,422 144,578
Employees' health insurance 1,400,000 1,275,000 1,194,841 80,159
Other 1,350,000 1,250,000 1,094,279 155,721
Total expenditures 38,336,903 38,336,903 35,688,475 2,648,428
Excess(deficiency)of revenues over(under)
expenditures 500,000 500,000 7,256,450 6,756,450
Other financing sources(uses)-transfers in(out)-
Transfers in-General Fund - - - -
Transfers out-Capital Projects Fund (3,700,000) (4,044,823) (3,862,868) 181,955
Deficiency of revenues and other Sources
under expenditures and other uses (3,200,000) (3,544,823) 3,393,582 6,938,405
Fund balance at beginning of year 10,381,312 10,381,312 10,381,312 -
Fund balance at end of year $ 7,181,312 S 6,836,489 $ 13,774,894 $ 6,938,405
See accompanying independent auditors'report.
® 123 -
COUNTY OF HAWAII
Sewer Fund
Schedule of Revenues, Expenditures,and Changes in Fund Balance-
Budget and Actual(Budgetary (iasis)
For the Fiscal Year Ended June 30,2019
Actual Variance
Original Final (Budgetary Positive
E3udget Budget
Basis) e itjyq
Revenues:
intergovernmental $ - $ - $ 155,529 $ 155,529
Charges for services- sewer fees 7,739,200 7,739,200 7,788,531 49,331
Other - - 1,491 1,491
Total revenues 7,739,200 7,739,200 7,945,551 206,351
Expenditures:
Sanitation 10,862,820 10,862,820 8,733,011 2,129,809
Pension and retirement contributions 1,002,300 1,002,300 838,412 163,888
Employees'health insurance 443,500 423,500 295,229 128,271
Other 580,000 600,000 438,287 161,713
Total expenditures 12,888,620 12,888,620 10,304,939 2,583,681
Deficiency of revenues under expenditures (5,149,420) (5,149,420) (2,359,388) 2,790,032
Other financing sources:
Transfers in-General Fund 2,987,914 2,987,914 2,987,914 -
Excess (deficiency)of revenues and other
sources over(under)expenditures (2,161,506) (2,161,506) 628,526 2,790,032
Fund balance at beginning of year 8,065,059 8,065,059 8,065,059 -
Fund balance at end of year $ 5,903,553 $ 5,903,553 $ 8,693,585 $ 2,790,032
See accompanying independent auditors'report.
- 124 -
COUNTY OF HAWAII
Solid Waste Food
Schedule ofRevenues, Expenditures,and Changes inFund Balance~
Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended June 30,2019
Actual Variance
Original Boo\ (Budgetary Positive
�udQc ��Bud�� B i s) ative)
Revenues:
Intergovernmental $ 564,029 $ 729,883 $ 686,138 $ (43,745)
Charges for services -t[pping fees 11,620,000 11^620,080 15,14I943 3,523,943
Other 226,104 226,104 107012
zzzz� .
Total revenues 12,410,133 12,575z487 16z017z693 3,441,706
44} 7O6
Expenditures:
Sanitation 32,723,086 32,918,940 31,200'361 1,7/8`579
Pension and retirement contributions 1,820,669 1,020,669 1,778,967 49,702
Employees'health insurance 854,400 854`400 799,196 55,204
Other 671,000 641,000 345,675 295z325
Total expenditures 36,077,155 36,243,009 34J24J99 2J18,810
UcfioicncyoCrevenues under expenditures (23,667,022) (23,667,022) (10,106,506) 5,560^516
Other financing Sources:
Transfers |n-General Fund 10281770 19201770 Q -
z ���- z �-�_ � �-�_
Excess(defi6ency)mfrevenues and other
sources over(uodor)expenditures (4,385,252) (4,385,252) 1,175,264 5,560,516
Fund balance u1beginning ofyear 9,048,655 9,040,655 9,040,655 -
Fund balance ut end ofyear $4,663,403 $4,663, �403 $10,223,919 $5,560,516
$5,S6O,5|6
See accnmpooyingindependent auditors'report
COUNTY OF I-
Cemetery Fund
Schedule of Revenues, Expenditures,and Changes in Fund Balance-
Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended June 30,2019
Actual Variance
Original Final (Budgetary Positive
budget jj�et � jj�sis {Negative
Revenues- other- sale ofcemetery plots $ 10,000 10,000 S 10,500 500
Expenditures-health,education and welfare 10,000 10,000 - 10,000
Excess of revenues over expenditures - - 10,500 10,500
Fund balance at beginning of year 141,909 141,909 141,909 -
Fund balance at end of year $ 141,909 $ 141,909 $ 152,409 $ 10,500
See accompanying independent auditors'report.
- 126 -
COUNTY OF HAWAII
Parking Meter Fund
Schedule of Revenues, Expenditures,and Changes in Fund Balance-
Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended June 30,2019
Actual Variance
Original Final (Budgetary Positive
_jj�et B�et Basis_s� (Negative)
Revenues-Charges for services-highways and streets $ $ $ 20,294 $ 20,294
Excess of revenues over expenditures 20,294 20,294
Fund balance at beginning of year 278,765 278,765 278,765 -
Fund balance at end of year $ 278,765 278,765 $ 299,059 $ 20,294
See accompanying independent auditors'report.
- 127 -
COUNTY OF HAWAII
Vehicle Disposal Fund
Schedule of Revenues, Expenditures,and Changes in Fund Balance-
Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended June 30,2019
Actual Variance
Original Final (Budgetary Positive
j�et q2ketBasis) Ne
Revenues:
Licenses and permits-vehicle disposal fee $2,280,000 $ 2,280,000 $ 2,444,784 $ 164,784
Charges for services-towing charges 1,800 1,800 6,131 4,331
Miscellaneous 20,800 20,800 35,977 15,177
Total revenues 2,302,600 2,302,600 2,486,892 184,292
Expenditures:
Sanitation 3,165,780 3,165,780 1,727,886 1,437,894
Pension and retirement contributions 33,000 33,000 28,367 4,633
Employees'health insurance 28,000 28,000 13,123 14,877
Other 2,000 2,000 - 2,000
Total expenditures 3,228,780 3,228,780 1,769,376 1,459,404
Excess (deficiency)of revenues
over(under)expenditures (926,180) (926,180) 717,516 1,643,696
Other financing(uses)-transfers(out)-
Transfers out-Serial Bond Redemption Fund (150,000) (150,000) - (150,000)
Transfers Out- Interest Fund (75,000) (75,000) - (75,000)
Deficiency of revenues and other sources (1,151,180) (1,151,180) 717,516 1,868,696
Linder expenditures and other uses
Fund balance at beginning of year 9,613,089 9,613,089 9,613,089 -
Fund balance at end of year $8,461,909 $ 8,461,909 S 10,330,605 $ 1,868,696
See accompanying independent auditors'report,
- 128 -
COUNTY OF HAWAII
Bikeway Fund
Schedule of Revenues, Expenditures,and Changes in Fund Balance-
Budget and Actual(Budgetary Basis)
For the Fiscal Year Ended June 30,2019
Actual Variance
Original Final (Budgetary Positive
Budget q24get Plsijs (Negative)
Revenues- licenses and permits-bicycle tax $ 73,000 $ 73,000 $ 45,952 $ (27,048)
Expenditures-highways and streets 226,000 226,000 55,574 170,426
Excess(deficiency)of revenues OVU(Linder)
expenditures (153,000) (153,000) (9,622) 143,378
Fund balance at beginning of year 651,250 651,250 651,250 -
Fund balance at end of year $498,250 $498,250 $641,628 $143,378
See accompanying independent auditors'report.
- 129 -
COUNTY OFHAWAII
Workforce Innovation & Opportunity Act Fund
Schedule of Revenues, Expenditures,and Changes in Fund Balance
Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended June 3O'2Olq
&rioul Variance
Original Final (Budgetary Positive
0u�et B�et § i
R±vcouey- intergovcmnocnto| $ ' $ 1,062,610 $ 1.804,441 S (58,169)
Expenditures:
Health,education and welfare - 1,047,963 909,704 58,169
Pension and retirement contributions - 14,377 14'377 -
Employees'health insurance - 270270 -
Total expenditures - 1,062,610 1,004,441 50,169
Excess mfrevenues over expenditures - - - '
Fund balance utbeginning ofyear ' ' - -
Fund balance otend ofyear 0 -
===== ===== ===== =====
See accompanying independent auditors'report.
- |30 -
COUNTY DFHAWAII
Golf Course Fund
Schedule of Revenues, Expenditures,and Changes in Fund Balance-
Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended June 30,Z8|g
Actual Variance
Original Final (Budgetary Positive
��e ��et Di
Revenues:
Charges for services 785'600 662.560 $ 643'737 $ (18,832)
Expenditures:
Culture and recreation 1,066.983 1,881,983 1,045,455 36,528
Pension and retirement contributions 231,234 231,747 231`214 533
Employees'health insurance 118'000 117`487 112'192 5,295
Other 6,000 8,880 - 6,000
Total expenditures 1,422,21/ 1,4]7,2[7 1,308,861 48,356
Dcficieouyofrevenues under expenditures (636,617) (774,648) (745,124) 29,524
Other financing sources:
Transfersin 500368 760368 760368 -
z ���- ���-
Bxcc000frevcnueauudotbcranurocm
over expenditures (56,249) (14'280) 15,244 29,524
Fund balance ut beginning ofyear -
Fund balance atend nfyear $ 8 $ $ 29,524
See accompanying independent auditors'report.
Note: "Fund balance at beginning of year" in the above schedule is on the modified accrual and not budgetary basis,which
iaresulting inthe ucgu|viofund balance shown above.
COUNTY OF HAWAII
Geothermal Relocation and Community Benefits Fund
Schedule mfRevenues, Expenditures,and Changes inFund Balance'
Budget and Actual(Budgetary Basis)
For the Fiscal Year Ended June]O,20lg
Actual Variance
Original Final (Budgetary Positive
Revenues
Miscellaneous:
Geothermal royalties $ 608'000 $ 600,000 & 2'052 $ (597,448)
Expenditures:
General government:
Planning and zoning 1,000,080 1,000,000 - __ 1,000,000
Excess(dcfioieouy)of revenues over
(under)expenditures (400,088) (400,000) 2,052 402,052
Fund balance u1beginning ufyear 4,272,183 4272]8] 4272]83 -
Fund balance mtend ofyear $ 3,872,183 $3,872,183 $ 4�274���235 $ 402,052
See accompanying independent auditors'report.
- |32 -
COUNTY OF HAWAII
Beautification Fund
Schedule of Revenues, Expenditures,and Changes in Fund Balance-
Budget and Actual(Budgetary Basis)
For the Fiscal Year Ended June 30,2019
Actual Variance
Original Final (Budgetary Positive
Budget ..Budget Basis) Ne atiyej
Revenues- licenses and pen-nits-highway
beautification $ 191,000 $ 191,000 $ 203,753 $ 12,753
Expenditures:
Highways and streets 236,300 236,300 236,300 -
Culture and recreation 157,650 157,650 107,715 49,935
Total expenditures 393,950 393,950 344,015 49,935
Deficiency of revenues under expenditures (202,950) (202,950) (140,262) 62,688
Fund balance at beginning of year 582,085 582,085 582,085 -
Fund balance at end of year 379,135 379,135 $ 441,823 62,688
See accompanying independent auditors'report.
- 133 -
COUNTY OF HAWAII
Hawaii County Musing Agency
Schedule of Revenues, Expenditures,and Changes in Fund Balance-
Budget and Actual(Budgetary(iasis)
For the Fiscal Year Ended June 30,2019
Actual Variance
Original Final (Budgetary Positive
laud et . AqdZet Basis ative
Revenues:
intergovernmental -
Federal -HUD-Voucher prograrn $ 20,734,644 20,957,937 20,576,134 $ (381,803)
Other - 141,430 141,430
Investment earnings 1,613 1,613 2,817 1,204
Resale of property - - 137,500 137,500
Other 1,398,837 1,398,837 520,178 (878,659)
Total revenues 22,135,094 22,358,387 21,378,059 (980,328)
Expenditures:
Health,education and welfare 23,006,369 23,229,662 21,568,793 1,660,869
Pension and retirement contributions 811,588 811,588 718,491 93,097
Employees' health insurance 364,160 364,160 332,684 31,476
Total expenditures 24,182,1 17 24,405,410 22,619,968 1,785,442
Deficiency of revenues under expenditures (2,047,023) (2,047,023) (1,241,909) 805,114
Other financing sources-transfers in-
Transfers in -General Fund 2,012,389 2,012,389 1,256,200 (756,189)
Excess(deficiency)of revenues and other sources
over(under)expenditures (34,634) (34,634) 14,291 48,925
Fund balance at beginning of year 2,356,748 2,356,748 2,356,748 -
Fund balance at end of year $ 2,322,114 2,322,114 $ 2,371,039 S 48,925
See accompanying independent auditors'report,
- 134 -
COUNTY OF HAWAII
Pal-k Dedication Fund
Schedule of Revenues, Expenditures,and Changes in Fund Balance-
Budget and Actual(Budgetary Basis)
For the Fiscal Year Ended June 30,2019
Actual Variance
Original Final (Budgetary Positive
Budget _J�u�et basis _(N�gative)
.
Revenues- investment earnings $ $ 988 S 988
Excess of revenues over expenditures - 988 988
Fund balance at beginning of year 88,542 88,542 88,542
Fund balance at end of year $ 88,542 $ 88,542 $ 89,530 988
See accompanying independent auditors'report.
- 135 -
COUNTY OF HAWAII
Short-Term Vacation Rental Enforcement Fund
Schedule of Revenues, Expenditures,and Changes in Fund Balance-
Budget and Actual(Budgetary Basis)
For the Fiscal Year Ended June 30,2019
Actual Variance
Original Final (Budgetary Positive
Budget Budget Basis (Negative}__
Revenues- ST vacation rental fees $ - $ 800,000 $270,000 $ (530,000)
Expenditures:
General government:
ST vacation rental enforcement - 800,000 12,963 787,037
Excess(deficiency)of revenues over
(under)expenditures - - 257,037 257,037
Fund balance at beginning of year - - -
Fund balance at end of year $ - S $257,037 $ 257,037
See accompanying independent auditors'report.
- 136-
COUNTY OF HAWAII
General Excise Tax Fund
Schedule of Revenues, Expenditures,and Changes in Fund Balance-
Budget and Actual(Budgetary Basis)
For the Fiscal Year Ended June 30,2019
Actual Variance
Original Final (Budgetary Positive
Budget Budget Basis_ (Negative)
Revenues-GET surcharge 10,000,000 10,108,045 108,045
Expenditures-mass transit 5,895,000 2,792,321 (3,102,679)
Excess(deficiency)of revenues over(under)
expenditures 4,105,000 7,315,724 3,210,724
Other financing sources(uses)-transfers in(out)-
Transfers out-Capital Projects Fund (4,105,000) (4,105,000) -
Deficiency of revenues and other sources
under expenditures and other uses 3,210,724 3,210,724
Fund balance at beginning of year - -
FUnd balance at end of year $ $ 3,210,724 3,210,724
See accompanying independent auditors'report.
- 137 -
COUNTY OF HAWAII
Agency Funds
Combining Statement of Agency Funds Net Position
June 30,2019
Performance
State Improvement Improvement Improvement Improvement and
Weight District District District District Refundable
Tax No. 18 No. 19 No.20 Revolving Deposits
Fund Fund Fund Fund Fund Fund
Assets
Cash and cash equivalents $1,775,915 $ 515,498 $ 364,999 $ 14,746 $ 10,478 $ 332,554
Investments - 250,060 225,000 169,949 -
Due from other agency funds - - - -
Other receivables 6,182 22,508 579 519
Total assets -TI-,775,915 $ 521,680 $ 637,567 240,325 --$ 180,946 332,554
Liabilities
Vouchers payable $ - $ - $ - 75,000 $ - $ -
Due to other agency funds 8 - - - 5,850
Accrued liabilities 1,775,907 7,523 7,523 - -
Advances payable - 15,224 9,880 2,148 - 326,704
Assets held for the benefit of
improvement districts 498,933 620,164 163,177 180,946_ -
Total liabilities $1,775,915 $ 521,680 -f--673-7,567 $ 240,325 $ 180,946 -F73-32,594
See accompanying independent auditors'report.
- 138 -
Non-Profit Organ and Business
Payroll Flexible Lapsed License Tissue Improvement
Clearance Spending Warrants Plates Education District
Fund Account Fund Fund Fund I Kailua Total
554,271 $ 382,314 $ 346,242 $ 18,580 $ 2,001 $ 944 $ 4,318,542
- - - - - - 645,009
- 7,242 - 7,242
3,205 - 13,429 - - 6,048 52,470
557,476 382,314 $ 366,913 _18,580 _$-2,001 $ 6,992 $ 5,023,263
1,315 $ - $ - $ $ - 76,315
1,224 - - 160 - 7,242
554,937 382,314 366,913 18,420 2,001 944 3,116,482
- - - - - - 353,956
- - - - - 6,048 1,469,268
557,476 $ 382,314 $ 366,913 18,580 $ 2,001 $ 6,992 $ 5,023,263
- 139 -
COUNTY OF HAWAII
Agency Funds
Combining Statement of Changes in Assets and Liabilities
For the Fiscal Year Ended June 30, 2019
Balance Balance
July 1, June 30,
2018 Additions Deductions 2019
State Weight Tax Fund
Assets
Cash and cash equivalents $2,142,521 $ 25,338,870 $ 25,705,476 $ 1,775,915
Liabilities
Vouchers payable $ - $ 25,454,627 $ 25,454,627 $ -
Due to other agency funds 91 8 91 8
Accrued liabilities-due to State of Hawaii 2,142,430 25,338,862 25,705,385 1,775,907
Total liabilities $2,142,521 $ 50,793,497 $ 51,160,103 $ 1,775,915
Improvement District o. 18 and
Assets
Cash and cash equivalents $ 541,229 $ 120,102 $ 145,833 $ 515,498
Other receivables 4,168 122,123 120,109 6,182
Total assets $ 545,397 $ 242,225 $ 265,942 $ 521,680
Liabilities
Vouchers Payable $ - $ 287 $ 287 $ -
Due to other non-agency funds 1,514 1,341 1,514 1,341
Accrued liabilities 4,168 100,938 98,924 6,182
Advances payable 12,136 3,088 - 15,224
Assets held for the benefit
of improvement districts 527,579 98,916 127,562 498,933
Total liabilities $ 545,397 $ 204,570 $ 228,287 $ 521,680
- 140 -
COUNTY OF HAWAII
Agency Funds
Combining Statement of Changes in Assets and Liabilities
For the Fiscal Year Ended June 30, 2019
Balance Balance
July 1, June 30,
2018 Additions Deductions 2019
Improvement District o. 19 Fund
Assets
Cash and cash equivalents $ 316,273 $ 120,036 $ 71,310 $ 364,999
Investments 246,928 3,132 - 250,060
Due from other non-agency funds - 14,227 - 14,227
Other receivables 3,741 117,601 113,061 8,281
Total assets $ 566,942 $ 254,996 $ 184,371 $ 637,567
Liabilities
Vouchers Payable $ - $ 2,338 $ 2,338 $ -
Due to other non-agency funds 1,440 1,769 1,440 1,769
Accrued liabilities 3,741 115,074 113,061 5,754
Advances payable 8,595 1,285 - 9,880
Assets held for the benefit
of improvement districts 553,166 124,410 57,412 620,164
Total liabilities $ 566,942 $ 244,876 $ 174,251 $ 637,567
Improvement District No.20 Fund
Assets
Cash and cash equivalents $ - $ 21,148 $ 6,402 $ 14,746
Investments - 225,000 225,000
Other receivables - 579 - 579
Total assets $ - $ 246,727 $ 6,402 $ 240,325
Liabilities
Vouchers Payable $ - $ 75,000 $ - $ 75,000
Advances payable - 2,148 - 2,148
Assets held for the benefit
of improvement districts - 169,579 6,402 163,177
Total liabilities $ - $ 246,727 $ 6,402 $ 240,325
- 141 -
COUNTY OF HAWAII
Agency Funds
Combining Statement of Changes in Assets and Liabilities
For the Fiscal Year Ended June 30, 2019
Balance Balance
July 1, June 30,
2018 Additions Deductions 2019
Improvement District Revolving Fund
Assets
Cash and cash equivalents $ 7,857 $ 2,621 $ $ 10,478
Investments 166,070 3,879 169,949
Other receivables 250 519 250 519
Total assets $ 174,177 $ 7,019 $ 250 180,946
Liabilities
Assets held for the benefit
of improvement districts $ 174,177 $ 6,769 $ - $ 180,946
Performance and Refundable
Deposits Fund
Assets
Cash and cash equivalents $ 318,770 $ 520,639 $ 506,855 $ 332,554
Liabilities
Vouchers payable $ - $ 493,717 $ 493,717 $ -
Due to other agency funds 5,625 5,850 5,625 5,850
Advances payable 313,145 514,464 500,905 326,704
Total liabilities $ 318,770 $ 1,014,031 $ 1,000,247 $ 332,554
Payroll Clearance Fund
Assets
Cash and cash equivalents $ 590,494 $327,357,238 327,393,461 $ 554,271
Due from other non-agency funds 2,709 308,914,919 308,917,628 -
Other receivables 5,118 3,966 5,879 3,205
Total assets $ 598,321 $636,276,123 $636,3 16,968 $ 557,476
Liabilities
Vouchers payable $ - $ 144,404,453 $ 144,403,138 $ 1,315
Due to other agency funds 1,554 1,224 1,554 1,224
Due to other non-agency funds 964 - 964 -
Accrued liabilities 595,803 348,961,605 349,002,471 554,937
Total liabilities $ 598,321 $493,367,282 $493,408,127 $ 557,476
- 142 -
COUNTY OF HAWAII
Agency Funds
Combining Statement of Changes in Assets and Liabilities
For the Fiscal Year Ended June 30, 2019
Balance Balance
July 1, June 30,
2018 Additions Deductions 2019
Flexible Spending Account
Assets
Cash and cash equivalents $ 370,548 $ 411,784 $ 400,018 $ 382,314
Liabilities
Accrued liabilities $ 370,548 $ 411,784 $ 400,018 $ 382,314
Lapsed Warrants Fund
Assets
Cash and cash equivalents $ 334,401 $ 12,841 $ 1,000 $ 346,242
Due frorn other agency funds 7,270 7,242 7,270 7,242
Other receivables 5,323 13,429 5,323 13,429
Total assets $ 346,994 $ 33,512 $ 13,593 $ 366,913
Liabilities
Vouchers payable $ - $ 1,001 $ 1,001 $ -
Accrued liabilities 346,994 33,184 13,265 366,913
Total liabilities $ 346,994 $ 34,185 $ 14,266 $ 366,913
Non-Profit License Plates Fund
Assets
Cash and cash equivalents $ 13,775 $ 79,535 $ 74,730 $ 18,580
Liabilities
Vouchers payable $ - $ 83,605 $ 83,605 $ -
Due to other agency funds - 160 - 160
Accrued liabilities:
Due to non-profit agency 13,775 79,375 74,730 18,420
Total liabilities $ 13,775 $ 163,140 $ 158,335 $ 18,580
- 143 -
COUNTY OF HAWAII
Agency Funds
Cornbining Statement of Changes in Assets and Liabilities
For the Fiscal Year Ended June 30, 2019
Balance Balance
July 1, June 30,
2018 Additions Deductions 2019
Organ and Tissue Education Fund
Assets
Cash and cash equivalents $ 1,392 $ 6,248 $ 5,639 $ 2,001
Liabilities
Vouchers payable $ - $ 5,569 $ 5,569 $ -
Accrued liabilities -due to State of Hawaii 1,392 6,248 5,639 2,001
Total liabilities $ 1,392 $ 11,817 $ 11,208 $ 2,001
Business Improvement District 1-Kailua
Assets
Cash and cash equivalents $ 301 $ 823,343 $ 822,700 $ 944
Other receivables-BID I-Kailua Assessment 5,700 825,410 825,062 6,048
Due from other non-agency funds - 7,558 7,558 -
Total assets $ 6,001 $ 1,656,311 $ 1,655,320 $ 6,992
Liabilities
Vouchers payable $ - $ 821,612 $ 821,612 $ -
Accrued liabilities -due to KVBID 237 944 237 944
Accrued liabilities 64 45 109 -
Assets held for the benefit
of improvement districts 5,700 821,654 821,306 6,048
Total liabilities $ 6,001 $ 1,644,255 $ 1,643,264 $ 6,992
- 144 -
COUNTY OF HAWAII
Agency Funds
Combining Statement ofChanges inAssets and Liabilities
For the Fiscal Year Ended June 3O, 20|9
Balance Balance
July 1, June 30,
2018 Additions Deductions 2,0,19
][otal-AlNAgmocy Funds
Assets
Cash and cash equivalents $4,637`561 $354,814,405 $355,|33,424 $4,318,542
Investments 412,998 232,011 ' 645,009
Due from other agency funds 7,270 7,242 7,270 7,242
Due from other non-agency funds 2,709 308,930,704 300'925,186 14,227
Otburroceivob|em- BlD ]-Koi|uoAameommcot 5,700 825,410 825,062 6,040
Other receivables 18,600 258217 244,622 32,195
Total assets $5004838 $665073989 $665,135,564 $5023263
����
Liabilities
Vouchers payable $ - $ |7|,342,2O9 $ l7\`265,894 $ 76,315
Due toother agency funds 7,270 7,242 7,270 7,242
Due iOother non-agency funds 3,918 3,118 3.910 3,110
Accrued liabilities 1,321,318 349,622,630 349`027,848 1,316,100
Accrued UubiUdcs-duutunon-profitageocy 13,775 79,375 74,730 10,420
Accrued liabilities-due kzState ofHawaii 2,143,822 25,345,110 25"711,024 1,777,908
Accrued liabilities-due 0oK\/BID 237 944 337 944
Advances payable 333,876 520,405 500,905 353,956
Aayeia held for the benefit
ofimprovement districts 1,260,622 1,221,328 l812682 1,469,268
Total liabilities $5084030 $548143933 $54820450Q $5023263
����
See accompanying independent auditors'report.
- 145 -
COUNTY OF HAWAII
Private Purpose Trusts
Combining Statement of Private Purpose Trust Net Position
June 30, 2019
Shippers' Total
Geothermal Wharf Private
Asset Trust Purpose
Assets Fund Fund Trusts
Cash and cash equivalents S 211,839 S 797,645 S 1,009,484
Investments 1,917,537 1,708,073 3,625,610
Interest receivable 5,845 - 5,845
'Total assets $ 2,135,221 $ 2,505,718 $ 4,640,939
Net Position
Field in trust for other parties $ 2,135,221 $ 2,505,718 $ 4,640,939
Total net position $ 2,135,221 $ 2,505,718 $ 4,640,939
See accompanying independent auditors"report.
- 146 -
COUNTY OF HAWAII
Private Purpose Trusts
Combining Statement of Changes in Private Purpose Trust Net Position
For the Fiscal Year Ended June 30,2019
Shippers' Total
Geothermal Wharf Private
Asset Trust Purpose
Fund Fund Trusts
Additions
Contributions.
Puna Geothermal Venture $ 50,000 $ - $ 50,000
Investment earnings:
Net increase(decrease) in fair value of
investments 33,501 72,183 105,684
Dividends - 40,875 40,875
Interest 28,663 1,518 30,181
Total additions 112,164 114,576 226,740
Deductions
Claims payment 293,760 - 293,760
Grant payments - 94,418 94,418
Investment Fees 13,495 13,495
Total deductions293,760 107,913 401,673
...........
Change in net position (181,596) 6,663 (174,933)
Net position, beginning of year 2,316,817 2,499,055 4,815,872
Net position,end of year $ 2,135,221 $ 2,505,718 $ 4,640,939
See accompanying independent auditors'report.
147 -
This page intendonafly left blank.
- 148 -
STATISTICAL SECTION
(UNAUDITED)
Contents Page
Financial Trends—These schedules contain trend information to help the reader understand how
the County's financial performance and well-being have changed over time, 149
Revenue Capacity These schedules contain information to help the reader assess the County's
most significant local revenue source,the property tax. 154
Debt Capacio) - These schedules present information to help the reader assess the affordability of
the County's current levels of outstanding debt and the County's ability to issue additional debt in
the future, 160
Demographic and Economic Information--These schedules offer demographic and economic
indicators to help the reader understand the environment within which the County's financial
activities take place. 163
Operating Information These schedules contain service and infrastructure data to help the
reader understand how the information in the County's financial report relates to the services
provided and the activities performed by the County. 165
COUNTY OF HAWAFI
Net Position by Component
Last Ten Fiscal Years
201116 _2(Tl�..... 0�13,a 20-14 0 1�5 � -_2016,as _2(
2010
restated_ restated rt
Governmental activities
Net investment in capital assets $469,235,881 $514,309,238 $594,384,524 $699,326,156 $734,889,023 $748,754,727 $824,846,090 $83f
Restricted 43,958,660 51,840,697 48,360,223 64,437,707 89,620,936 74,813,856 74,694,901 7C
Unrestricted"' 37,623,937 40,287,046 39,340.897 181,055 8,007,624) 351-186, 71) _(403,934,491) (74f
Total governmental activities net position $550,818,478 $606 4;36,981 _T6_E�085644 $763.944,918 —$806,-502,3-35 $472,181,912 $495,606,500 $16C
Business-type activities
Net investment in capital assets $ 303,244 $ 308,966 $ 315,848 315,255 $ 368,849 $ 428,815 $ 481,039 $
Restricted 184,914 185,087 185,148 - - -
Unrestricted 497,466 449.581 455,918 1,045,190 1,093,750 1,040,216 1,036,8701
'rota)business-type activities net position $ 985,624 3,63494 _956914 -T-1 360-44-5 --i 1,462,599 _'$_I_4_69,031 --i 1517,909_
--f—I
Primary government
Net investment in capital assets $469,539,125 $514,618,204 $594,700,372 $699,641,41 1 $735,257.,872 $749,183,542 $825,327,129 $836
Restricted 44,143,574 52,025,784 48,545,371 64,437,707 89,620,936 74,813,856 74,694,901 70
Unrestricted 38,121,403 40,736,627 39,796,815 1,226,245 (16,913,874) (350,346,45 r) 02„897 2�1) (744
Total primary government net position $55 l,804,102 $607,380,6T5—_T6TT0_T_558 _$_765,305363_—$-80-7,964,934 -T47-3,650,943 $497,124,409 $1 61
Unaudited-see accompanying independent auditors'report.
Balances prior to FY 2015 have not been adjusted for the implementation of GASB Statement No.68,Accounting and Financial Reporting for Pensionsan amendment of GASB
GASB Statement No 71,Pension Transition for Contributions Made Subsequent to the Measurement Date-an amendment of GASB Statement No.68
Balances prior to FY 2017 have riot been adjusted for the implementation ol'GASB Statement No,75,Accowifing and Financial Rejwrfingjbr Posieniployment Benefits Oiher Tha
COUNTY OF HAWAII
Changes in Net Position
Last Ten Fiscal Years
6,,s, i TM
2440 2011
77
012 ]R)13,a 2044 2015
e.tateq
Program Revenues
Governmental activities:
Charges for services:
General government $ 4,3 1 5,849 $ p,856,795 $ 2,306,855 $ 1,695, 52 $ 2,495,917 $ 2,246,l06 $ 2,659,984 $ 2,7a
Public safety 4,449,519 4,447,120 5,136,278 5,l 17,102. 5,562,424 5,926,3 l 6 5,594,344 5,7'
1-1)gh ways wid streets 9,351,219 9,800,983 10,544,711 10,159,443 13,901,679 16,043,045 16,965,449 16,7E
ficallh,education and welftire 713,774 424,1107 454,913 570,362 559,38t 548,786 523,824 1,30:
Culture and recreation 1,609,041 1,626,178 1,601,195 1,794,553 1,954,213 2,150,900 1,951,553 1,&
Sannabon 64,934,570 35,88f9,364 14,831,846 15,593,933 36,426,521 17,816,818 19,01 1,328 20,8'
Operating giants and contributions 49,571,173 50,820,951 45,767,655 44,410,353 42,957,370 47,406,704 47,234,458 52,84
Capital grams and contributions 13,532,669 38,810,806 86,754,033 107,584,670 62,370,497 29,621,907 60,230 846 14,7E
Toial�,',.0VeMfaCVflal aCfiVHeS PFOtITarn rMaUeS _._98,4'77,814m 123,676,:104 (;�,3TTiM 86,925,518mmµ146,228,002 121,760,577 154,l 7l,786 116,91
Business-type activities
Charges for services:
Health,education and well'are 337,982 372,599 393,464 432,057 468,018 453,304 457,842 4(-,
Operating giants and contributions 136,802133,215 131,227 123,800 127,1 19 l 13,642 133,932 l3
Total buskness-type acuvaies program revellUT4
es � ,T87'-TO f,,TfT 2T(", 1 8.5 7 595,137 566,946 591,774 6C
Total prinriary W!overnrnent program revemies $ 98,952,598 124,182,6 18 $ 167,922,17 7 $ 187,481,375 $ W,823,D9 $ 122,327,523 $ 154,763,560 $ 3 17,.5°7
Expenses
Governmental activities:
General government $ 65,552,278 $ 53,439,428 56,115,599 $ 55,616,102 59,448,042 69,859,089 $ 65,064,440 $ 72,83
Public safety 148,115,428 154,008,027 152,288,979 15 1,975,049 163,889,143 675,104,273 387,960,903 229,50
Highways and streets 38,075,835 34,812,165 42,462,299 42,219,903 38,670,145 45,989,038 45,255,305 51,36
Health,education and welfare 30,528,977 30,336,420 28,127,691 28,001,020 28,343,056 34,304,166 39,722,480 40,29
Culture and recreation 14,739,755 22,167,818 23,412,948 22,121,336 25,590,117 32,225,574 27,315,451 35,21
Sanitation 27,527,841 35,604,394 35,049,546 38,505,086 48,721,810 41,467,081 48,52 l,434 56,60
Interest on long-terin debt 94,124,398 20,398 15,176,682 14,519,382 14,301,92 t 12,911,436 12,362,411 11,162,756 13,38
Total governmental activities expenses 13w38,660,512 345,544,934 351,976,444 352,740,417 377,573,719 411,311,582 424,202,769 499,26
Business-type activtfies:
Health,education and welfare 590,131 550,801 517,052 496,017 494,722 561,813 544,808 57
550,801 517,052 496,667 561,813 544,808 57ToW business-type activities expenses :590,136
Total primary government expenses 339,250,643 346,095,735 $352,493,496 353,236,434 $378',668,446 $4l 1,873,395 $424,747,577 $499,79
Net Expense
Go%ernmernal activities ${240,182,698) $(221,868,630) $(184,578,958) $(165,814,899) $(231,345,717) $(289,551,005) $(270,030,983) $(382,24
Business-type activities (115,347')5,347) (44,987) 7,639 59,840 100,415 5,133 46,966 2
_$(.59T5,F5_,8 T2-) 9 4 CT-- _s(3T2,,_2'f
Total primary government net expense $(240,�T.8,TT45T ,-8 ,) 7)
Conihnwd next page
GeneraI Revenues and Other Changes in Net Position
Governmental activities:
General revenues:
Property taxes $218,037,567 $225,055,099 $209,894,427 200,775,779 $221,260,681 237,2 17,225 $248,353,113 268,86
Public service company taxes 9,647,055 9,296,852 9,896,7 t 5 10,766,026 10,380,341 10,385,654 9,800,948 8,42
Public utility franchise taxes 8,963,041 9,495,624 91,065,112 9 1,087,369 10,792,967 10,824,278 9,004,330 7,95
Fuel taxes 7,405,996 7,603,501 8,293,200 6,352,944 7,373,475 7,632,973 7,933,810 8,28
General excise tax surcharge - - - - -
Grants and contributions not restricted to
specific programs 7,500,,038 19,533,165 19,074,105 17,750,132 97,705,967 19,506,423 19,557,513 19,81
Investment earnings(loss) 2,187,266 609,617 230,804 (81,020) 815,606 671,363 316,593 66
Other 1,779,223 5,973,275 6,773,258 2,320,838 5,574,147 8,364,894 _62,08t,055_ 7,09
Total goverrurnental activities _i67,526,186 .77,487,133 260,227,621 248,972,063 273,903,1 34 294,602,810 307,047,3,62 321,09
Business-type activities:
General revenues:
investment earnings 1,403 2,997 5,641 1,416 1,739 1,299 1,912
Other - - - 342,275 - - -
Total business-type activities 1,403 2,997 5,641 343,691 1,739 6,2991,912
Total primary government265,521,589 277,490,130 $260,233,262 249,315,754 $273,904,873 2'94,604,109367,64 1� THT,09
Changes In Net Position
Governmental activities $ 25,337,488 55,618,503 $ 75,648,663 83,157,164 $ 42,557,417 $ 5,051,805 $ 37,016,379 $ (61,14
Business-type;activities (113,944) __ (41,990) 13,280 403,531 102,154 6,432 48,878 2
...........
Total pt itnary government changes tn net posmon $ 25,223,544 $ 55,576,513 $ 75,666,943 83,560,695 $ 42,659,571 $ 5,058,237 $ 37,065,257 $ (61,12
Unaudaed-see accompanying independent audiiors'repon.
COUNTY OF HAWAVI
Fund Balances,Governmental Funds
(Modified accrual basis of accounting)
Last Ten Fiscal Years
2010 2011 2012 2013 2014 2015 2016 2017
General Fund:
Reserved $ 8,088,347 $ $ $
Unreserved 31,430,570
Nonspenclable - 2,835,361 3,304,551 3,492,464 3,794,963 3,573,745 5,774,378 5,561,433
Restricted - 4,296,363 3,693,958 4,863,905 5,459,350 4,554,871 9,022,303 15,112,054
Committed - 8,756,426 11,710,875 12,065,528 12,794,782 12,925,579 13,537,067 14,013,997
Assigned - 17,960,596 21,840,843 24,832,390 31,673,075 30,933,049 25,518,510 13,059,474
Unassigned - 10,809,404 8,176,727 8,694,320 1,824,889 164,148
- --'�8,72(054 53,948,607 55,547,059 52,151,392 53,i52,2
Total general fund 39,518,917 44,658,150 58 17,746,958
All other Government Funds:
Reserved I06.555,618 -
Unreserved,reported in:
Special revenue fund 29,436,463
Capital projects fund (3,290,813) - -
Restricted - 77,739,628 71,033,712 104,886,880 107,165,275 82,232,158 92,746,678 70,397,886
Committed - 40,148,878 36,866,120 29,502,567 38,029,424 41,125,668 41,258,644 39,299,995
Assigned' - - - 6,914,320 5,216,981 - 3,968,524 4,009,520
Unassigned - (3,609,332) (10,258,317) (14,958,045) - -
Total of other governmental funds 132.701,268 114,279,174 97,641,515 141,303,767 150,411,680 108,399,781 137,973,846 l 13,707,401
Total Fund Balances 172,220.185 158,937,324 $146,368,469 $195,252,374 $205,958,739 $160,551,173 $191,826,104 161,454,359
Unaudited-see accompanying independent audatirs'report,
NOTE GASB 54 was Rrnpegnented in 201 l Except for the unassiVied category,conversion of prior year data to new categories is not possible at this firne.
'AfflOurit for fiscal year 2014 hies been changed for consistency
Fable 4
COUNJY OFHAWAl'I
Changes in Fund Bahmm,GovernmegnW Funds
(Modified accrual basis of accounting}
Last Ten Fiscal Years
(Amounts in thousands)
Fi t 2O12 2()fl 3 2614 20152016 2007 2018 2019
. ............................
Revenues
Property tax $215,548 $216,511 $208,231 $201.201 $223,482 $236,190 $249,054 $266,517 530t,699 $31.1,631
Public service company tax 9,647 9,297 9,897 t0,766 10,380 10,386 9,801 8,423 7,612 8,494
Fuel tax 7,406 7,603 8,293 6,353 7,373 7,633 7,934 8,289 13,342 17,341
Public uadity[rancluse tax 8,963 9:416 11,065 11,087 10,793 10,824 9,004 7,951 8,331 9,442
Licenses and permus 14,725 05,097 15,790 05,991 tl9,618 22,046 22,432 22,932 24,066 24,653
General excise tax surcharge 12,518
intergovernmental 77,614 93,748 [00,867 79,912 75,257 86,272 85,173 79,220 90,025 101,627
Clunges for services 18,909 16,416 16,895 17,0,55 19,392 20,357 21,672 21,708 23,553 27,516
Investment carnings(loss)' 2,253 510 406 (618) 1,704 716 684 632 1,592 4,148
Settlement contributions 12,500 - -
Caner 3,241 7,874 t,201 4,399 30,084 9,769 16,132 11,791 4,832 4.64.3
Total Revenues 358,306376,472 375,635 358,646 398,083 404,193 420,M 427,463 475,052 524,0 15
..................... .......
Expenditures:
Current:
General governincrit 40,586 34,25 N 35,088 33,360 36,679 40,805 40,488 '10,819 41.571 41,800
Public safety 108,798 104,917 104,523 106,895 111,221 122,819 127,451 136,163 137,719 1,15,094
Highways and streets 20,222 17,l H 17,338 17,923 20,270 20,984 22,479 20,329 21,40 1 27,448
Sanitation 35,675 28,424 29,511 30,672 29,949 31,464 34,015 38,670 39,352 43.;015
Heafth,education and welfare 25,519 26,847 23,749 24,9879 23,070 24,540 25,380 30,535 29,876 31,909
Culture and recreation 17,266 16,008 t6,763 16,337 18,334 20,056 21,561 21,196 21,324 22,022
Pension and retirement contributions 28,509 27,284 27,773 29,866 33,032 38,485 41,359 43,718 49,494 53,137
Employees'health insurance 23,573 25,212 25,902 26,011 26,786 27,731 30,112 32,147 33,802 17,522
Odier postemployment berieflu; 15,700 17,307 3,170 4,532 7,180 11,495 14,831 39,637
Other 4,773 4,758 4,1553 2,998 3,238 4,686 3,931 3,839 4,622 4,314
Debt service:
Principal 20,720 42,233 24,834 25,7[8 09,003 22,004 22,432 22,032 86,906 30,577
Interest 14,584 t4,841 15,032 14,34.5 14,644 13,871 82,974 17,289 17,739 19,213
Capital ouiliI5 100,653 87,782 71,220 48,565 51,36'9 79,398 144,288 111,109 41,924 51,897
---- . ... ........-- ---... ..........
Total Expenditures 456,578446......,971 395,916 376,822 390,775 451,375 533,650 529,342 540,560 527,595
........... --- ....... -------
Revenues over(undcr)Expenditums (98,272) (70"499) (20,281) 8,176) 7,308 (47,08'2,) (111,834) 0 V,879) (65,Y78) (3,580)
Wier Financing Sources(Uses):
Sale of'assets 10 6 1.53, 1 to 25 66 21 23 47
Capital leases 1,948 47 2,521 1,307 14 1,971 3,389 3,769 3,909 6,777
State Revok,ing,Fund loans 6,811 9,257 4,569 4,991 3,072 - 7,317 8,130 5,154 7,439
We cif bonds 45,000 50,480 130,136 107,116
ismince of bond ankipafiott notes(BANs) 09,000 - 59,800
Refunding bonds 47,5 00 106,254 88,784
Premium on bonds - 2,078 t7,570 23,174 5,998
Refundint,l,botids/BANs issuance costs (19) (508) (276)
Papnew to refunded bond escrow agent (45,352) 128,920) (54,537)
Retirement ofmfi,inded debt - (9,635) - -
Trimsfers in 61,495 56,099 59,971 51,356 61,238 59,394 57,412 66,864 75,711 77,240
Transfers out (60,495) (56,099) (59,971) (51,356) (6 1,238) (59,394) ("1'7,402) (66,864) (75,701) (77,20)
----------
Total other financing soinces 27,750 56,388 7,243 66,872 3,096 1,996 140,908 '71,720 ➢16,071 14,263
..........
Net change in fund balances $(70,522) Wj i I) S(1:;1,038) $ 48,696 $ 10,404 S(45,186') $ 29,074 $(30,15x9) S 50,563 S 10.683
Debt sen ice as a percentq,,,e of'
noncapiml expendihRres 10 WN0 03.9% 82:3'. 03 9'o W.V. 93% 9 1% 414'",6 20.9', 10,51.
Unaudifed see accompanying mdependent auditors`report
Amount for fiscal year 2014 has been changed for consistency
COUNTY OF HAWAPI
Real Property Assessed Values by Classilication and Tax Rates
Last Ten Fiscal Years
(Values in Thousands)
Value of Building Value of Land
Fiscal Class of Net Taxable Tax Rates Net Taxable Tax Rates N
Year Pro Per$1000 Rc
2010 Residential $2,447,576 $7.10 $3,804,696 $8.10
Apartment 3,602,514 8.10 1,546,866 8.10
Hotel and Resort 1,390,884 9.00 1,177,796 9.00
Commercial 733,260 9.00 928,999 9.00
Industrial 453,406 9.00 593,224 9.00
Agricultural&Native Forest 2,272,248 635 3,625,585 835
Conservation 46,321 8.55 337,860 8.55
Homeowners 2,388,048 5.55 2,686,692 5.55
Affordable Rental Housing 67,746 5.55 47,703 5.55
$13,402,003 $14,749,421 -$
Fiscal year 2010 total direct rate$7.75
2011 Residential $3,040,977 $9.10 $3,787,185 $9.10
Apartment 2,660,600 9.85 1,144,873 9.85
Hotel and Resort 820,418 9.85 690,834 9.85
Commercial 713,161 9.10 908,741 9.10
Industrial 454,868 9.10 594,589 9.10
Agricultural&Native Forest 2,232,765 8.35 2,860,494 8.35
Conservation 48,766 9.85 341,496 9.85
Homeowners 2,479,437 5.55 2,573,527 5.55
Affordable Rental Housing 108,290 5.55 57,821 5.55
$12,559,282 -$12,959,560 -$
Fiscal year 2011 total direct rate$8.39
Continued next page.
Value of Building Value of Land
Fiscal Class of Net Taxable Tax Rates Net"taxable Tax Rates N
Year Pro Per$1000 Re.
2012 Residential $2,849,965 $9.10 $3,549,133 $9.10
Apartment 2,772,190 9.85 1,147,288 9.85
Hotel and Resort 771,971 9.85 601,800 9.85
Commercial 676,465 910 837,094 9.10
Industrial 446,247 9,10 563,710 9.10
Agricultural&Native Forest 2,023,285 835 2,571,826 8.35
Conservation 44,874 9.85 323,210 9.85
Homeowners 2,480,038 5.55 2,524,611 5.55
Affordable Rental Housing 142,899 5.55 79,498 5.55
$12,207,934 $12,198,170 -$
Fiscal year 2012 total direct rate$8.52
2013 Residential $2,872,890 $9.10 $3,534,961 $9.10
Apartment 2,403,216 9.85 1,069,999 9.85
Hotel and Resort 711,884 9.85 506,998 9.85
Commercial 661,323 9.10 806,131 910
Industrial 472,242 9.10 463,832 9.10
Agricultural &Native Forest 2,067,097 8.35 2,425,798 8.35
Conservation 41,505 9.85 287,375 9.85
Homeowners 2,525,018 5.55 2,502,822 5.55
Affordable Rental Housing 110,208 5.55 64,270 5.55
$11,865,383 $11,662,186
Fiscal year 2013 total direct rate$8.3)7
2014 Residential $2,961,309 $ 10.05 $3,470,148 10.05
Apartment 2,431,314 10.85 1,077,153 10.85
Hotel and Resort 669,850 10.85 477,981 10.85
Commercial 648,273 10.05 766,029 10.05
Industrial 470,992 10.05 443,702 10.05
Agricultural &Native Forest 2,105,481 9.25 2,365,245 9.25
Conservation 36,902 10.85 255,602 10.85
Homeowners 2,645,121 6.15 2,537,128 6.15
Affordable Rental Housing 115,384 6.15 64,662 6.15
$12,084,626 $11,457,650
Fiscal year 2014 total direct rate$9.23
Continued next page.
Value of Building Value of Land
Fiscal Class of Net Taxable Tax Rates Net Taxable Tax Rates
Year Pr Per$1000 R,(
2015 Residential $3,234,567 $ 10.05 $3,741,337 $ 10.05
Apartment 2,748,462 10.85 1,059,415 10.85
Hotel and Resort 715,560 10.85 591,128 10.85
Commercial 693,488 10.05 759,340 10.05
Industrial 493,660 10.05 522,006 10.05
Agricultural&Native Forest 2,277,788 9.25 2,416,357 9.25
Conservation 41,991 10.85 238,545 10.85
Homeowners 2,885,636 6,15 2,607,830 6.15
Affordable Rental Housing 109,462 6.15 61,478 6.15
$13,200,614 $11,997,436
Fiscal year 2015 total direct rate$9.26
2016 Residential $3,480,591 $ 10.05 $4,199,462 $ 10.05
Apartment 2,944,454 10.85 1,102,944 10.85
Hotel and Resort 704,372 10.85 456,088 10.85
Commercial 691,810 10.05 718,840 10,05
all
Industrial 487,990 10.05 519,955 10.05
Agricultural&Native Forest 2,358,086 9.25 2,540,590 9.25
Conservation 45,651 10.85 242,363 10.85
Homeowners 2,965,718 6.15 2,727,912 6.15
Affordable Rental Housing 132,752 6.15 73,267 6.15
$13,811,424 $12,581,421 $
Fiscal year 2016 total direct rate$9.25
2017 Residential $4,117,521 $ 10.05 $4,395,220 $ 10.05
Apartment 3,287,877 10,85 1,077,230 10.85
Hotel and Resort 751,005 10.85 470,390 10.85
Commercial 741,099 10.05 736,6339 10.05
Industrial 504,084 10.05 519,750 10.05
Agricultural&Native Forest 2,746,489 9.25 2,636,805 925
Conservation 52,668 10.85 249,458 10.85
Homeowners 3,323,185 6.15 2,842,257 6 15
Affordable Rental Housing 147,676 6.15 74,531 6.15
$15,671,603 $13,002,281
Fiscal year 2017 total direct rate$9.21
Continued next page.
Value of Building Value of Land
Fiscal Class of Net Taxable Tax Rates Net Taxable Tax Rates
Year Proioert- B ulilldint-,, Per$1000 Land Per$1000 R
2018 Residential $4,468,601 $ 11.10 $4,539,015 $ 11.10
Apartment 3,593,358 11.70 1,080,647 11.70
Hotel and Resort 786,420 11.55 511,659 11.55
Commercial 799,591 10.70 749,661 10.70
Industrial 526,130 10.70 550,670 10.70
Agricultural&Native Forest 2,877,993 9.35 2,696,501 9.35
Conservation 53,807 11.55 275,149 11.55
Homeowners 3,706,817 6.15 2,980,148 6.15
Affordable Rental Housing 171,631 6.15 88,857 6.15
$16,984,348 $13,472,307
Fiscal year 2018 total direct rate$9.93
2019 Residential $4,787,668 $ 11.10 $4,686,016 $ 11.10
Apartment 3,659,492 11.70 1,059,752 11.70
Hotel and Resort 825,366 11.55 539,060 11.55
Commercial 816,696 10.70 756,976 10.70
Industrial 551,480 10.70 558,490 10.70
Agricultural&Native Forest 2,980,022 9.35 2,888,344 9.35
Conservation 56,722 11.55 283,118 11.55
Homeowners 4,142,156 6.15 3,179,725 6.15
Affordable Rental Housing 168,101 6.15 86,808 6.15
$17,987,703 -$14,038,289
Fiscal year 2019 total direct rate$9.88
Source: County of Hawaii, Department of Finance, Real Property Tax Division
NOTES: Assessed value is at 100%of market value.
Property is reassessed annually.
The County Council sets the tax rates annually.
There are no overlapping properly tax rates in the County of Hawaii.
The improved residential and unimproved residential classes were combined into a single class beginning w
years ending June 30,2009.
Unaudited-see accompanying independent auditors'report.
Table 6
COUNTY OF HAWAII
Principal Taxpayers
June 30,2019 and 2010
Fiscal Year 2019 Fiscal Year 2010
Percentage Percentage
2018 of Total 2009 of Total
Assessed Assessed Assessed Assessed
jaxpUer Business Valuation Rank Valuation Valuation Rank Valuation
Kohanaiki Shores LLC Developer 377,529,200 1 1,2% $
Mauna Kea/1-lapuna Beach Corps, Developer/Hotel 167,947,800 4 0.5% - -
Hualalai Investors LLC Developer/hotel 173,204,200 3 U% 227,679,700 3 0.8%
Hilton Resorts Corp. Timeshare 286,084,400 2 0,9% 114,478,900 7 0,4%
MAPS Orchid Hotel LLC Hotel 126,941,500 7 0.4% - -
Mauna Lam Resort Inc, Developer/1-lotel - - 101,612,800 6 0A%
Raptor Residence LLC Residential 75,269,600 8 02% 69,833,600 9 02%
Target Corporation Retailer 67,028,600 10 V% - -
SMG I Hotel Waikoloa LLC Hotel 72,712,700 9 0.2% -
Hilton Land Investment I LLC Hotel 150,166,200 5 0.5% 237,983,900 2 0.8°,''O
1250 Oceanside Partners Developer - - -
Mauna Kea Development Corp. Hotels/Dev, - - 259,905,800 1 0.9"/o
DHL Mahi Opeo LLC Developer/1-lotel 135,411,300 6 0.4% -
WB KD Acquisition LLC Developer - - 187,819,800 4 0.7/o
WB-LCP Orchid Owner LLC Hotel - 135,679,800 5 0.5%
Kona Coast Resort Ltd Condo/Time Share - 73,824,400 8 0.3%
BRE/Waikoloa LLC Hotel - 65,000,600 10 0.2�,�
---1L/-/-0
$1,632,295,500 5.0% 5 1,473,819,300 5.2%
Note: Gross valuation at,lanuary 1,2017: $32,025,991,419
Gross valuation at January 1,2008: $28,153,504,064
SOW-Ce.- County of Hawaii, Department of Finance, Real Property Tax Division
Unaudited-see accompanying independent auditors'report.
-
158 -
COUNTY OF HAWAII
Property Tax Levies and Collections
Last Ten Fiscal Years
*OU
*Total De
*Current *Current *Percent *Delinquent *Total Collections as *Outstanding T
Fiscal 'Fax 'Fax of Levy Tax Tax Percent of Delinquent Pe
Year Leyy Collections Collected ColleCollections Collections C
--- - Lurrent Levy Taxes Cun
2010 215,262,172 207,501,307 96% 7,3365,872 214,867,179 100% 3394,993
2011 215,729,273 208,106,918 96% 7,168,539 215,275,457 100% 453,816
2012 204,868,717 198,274,186 97% 6,148,568 204,422,754 100% 445,963
2013 197,043,064 191,154,491 97% 5,392,085 196,546,576 100% 496,498
2014 217,269,825 211,711,407 97% 4,966,790 216,678,197 100% 591,628
2015 233,255,919 227,211,277 97% 5,297,669 232,508,946 100% 746,973
2016 244,067,210 237,882,513 97% 5,275,111 243,157,624 100% 909,586
2017 266,398,351 259,074,405 97% 5,853,697 264,928,102 99% 1,470,250
2018 302,488,275 292,626,959 97% 5,897,841 298,524,800 99% 3,963,475
2019 316,411,763 16,411,763 308,509,000 98% - 308,509,000 98% 7,902,763
Amounts reflect subsequent adjustments
Source: County of Hawaii,Department of Finance,Real Property Tax Division
Unaudited-see accompanying independent auditors'report.
COUNTY OF HAWAII
Ratios of Outstanding Debt by Type
Last'ren Fiscal Years
Business-Type Component
Governmental Activities Activities Unit Total Primary Goverr
_Gel.ral —State — — Total General State Percentage
Fiscal Obligation Revolving Capital Bonds/Notes Primary Obligation Revolving of Personal I
Year Bonds(c) Fund Loans Leases Payable Government(a) Bonds Fund Loans Income(b)
_Cap
2010 277,700,110 30,469,767 4,552,290 916,117 313,638,284 31,730,311 11,984,221 5.49%
2011 306,079,506 36,555,264 3,057,082 884,232 346,576,084 44,673,293 18,012,314 5.67%
2012 286,168,549 29,050,626 3,803,618 851,306 319,874,099 42,481,176 17,872,813 5.06/®
2013 332,675,519 20,882,283 3,632,420 1,296,633 358,486,855 40,179,834 12,911,310 5.48%
2014 318,138,520 22,928,638 2,308,241 1,208,300 344,583,699 38,644,257 13,658,717 5.09%
2015 297,957,249 21,552,213 2,981,709 1,111,392 323,602,563 36,383,553 12,591,409 4.580/6
2016 413,986,312 27,463,251 4,916,178 1,014,014 447,379,755 34,407,006 25,528,470 5,87%
2017 391,580,924 32,625,277 6,565,580 924,649 431,696,430 29,861,558 33,756,825 5.36%
2018 471,743,088 35,647,870 8,112,577 807,005 516,310,540 29,163,790 45,359,733 6,05%
2019 440,439,527 39,693,594 11,579,332 697,777 492,410,230 24,769,159 44,326,655 N/A N
NOTES:
(a)Includes governmental activities and business-type activities.
(b)See Table I I for personal income and population data.
(c)Amounts have been changed for consistency.
Details regarding the County's outstanding debt can be found in the notes to the basic financial statements.
Unaudited-see accompanying independent aeditors'report
Table 9
COUNTY OF HAWAII
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years
Debt Percent of
Applicable to Net Taxable
Fiscal Legal Debt Property Per
Year Margin (a) Value(b) Capita(c)
2010 277,481,633 1.0% 1,549
2011 305,615,691 1.2% 1,636
2012 317,699,844 1.3% 1,679
2013 315,676,941 1.30,0 1,654
2014 298,709,020 1.3/0 1,538
2015 312,632,049 1.2% 1,592
2016 362,963,113 1.4% 1,829
2017 405,488,342 1.4% 2,024
2018 414,446,063 1.4% 2,062
2019 425,153,552 1.3% N/A
NOTES:
(a) See Table 10 for debt applicable to legal debt margin.
(b) See Table 5 for net taxable property values.
(c) See Table 11 for population data.
Details regarding the County's outstanding debt can be found in the
notes to the basic financial statements.
Unaudited-see accompanying independent auditors"report.
- 161 ®
COUNTY OF HAWAN
Legal Debt Margin Information
Last Ten Fiscal Years
(Amounts in thousands)
2010 2011 2012 2013 2014 2015 2016 2017
Debt limit(a) $4,222,714 $3.827,826 $3,660,916 $3,529,135 $3,531,341 $3,779,708 $3,958,927 $4,301,083
Debt applicable to limit 277,482. 315,616 317,700 315,677 298,709 312,632 362,963 405,488
—i3 —�3
--i3,232,632 467,076 $3,595,964 895,595
—i3,512,210 3,343,216 3
Legal debt margin(b) --i3,945.232 213,458
Debt applicable to the limit
as a percentage of debt limit 6.57°,3 8.25%% 8.6896 8.940NO 8A60/b 8.2 7 0/,,� 9.17% 9.43%
NOTES:
(a)State finance statutes firnit the County's outstanding general debt to no more than 15 percent of the net assessed value of property. See Table 5 for net assesse
(b)The legal debt margin is the County's available borrowing authority under state finance statutes and is calculated by subtracting the net debt applicable to the
limit from the legal debt limit.
Legal Debt Margin Calcul
Net assessed value
Debt limit(15%of net assessed
Debt applicable to limit
Legal debt margin
Unaudited-see accompanying independem auditors'report,
Table 11
COUNTY OF HAWAII
Demographic and Economic Statistics
Last Ten Fiscal Years
Fiscal *Personal *Per
Year *Resident Income Capita
Ended Population (thousands Personal School Unemployment
June 30, as of July I of dollars) Income Enrollment Rate
2009 183,629 $ 5,517,497 $ 30,047 30,138 9,9%
2010 185,381 $ 5,717,885 $ 30,844 29,741 10,0%
2011 187,229 $ 6,114,237 $ 32,656 30,103 9.7%
2012 189,191 $ 6,318,657 $ 33,398 30,314 8.3%
2013 190,821 $ 6,544,583 $ 34,297 33,948 6.6%
2014 194,190 $ 6,771,329 $ 34,870 29,985 6.5%
2015 196,428 $ 7,067,347 $ 35,979 29,865 5.2/0
2016 198,449 $ 7,618,924 $ 38,392 29,753 4.7%
2017 200,381 $ 8,053,011 $ 40,188 29,666 3,5%
2018 200,983 $ 8,531,484 $ 42,449 29,601 3.7%
Amounts reflect subsequent adjustments
Source: County of Hawaii, Department of Research and Development, Bureau of Econornic Analysis,
State of Hawaii Department of Labor, State of Hawaii DOE and University of Hawaii Hilo
Unaudited-see accompanying independent auditors'report.
- 163 -
Table 12
COUNTY OF HAWAIl
Principal Employers,County of Hawaii
June 30,2019 and 2010
2019 2010
Percentage Percentage
of Total County of Total County
Em2loyer Employees Rank Employment Employees Rank Employment
State of Hawaii 13,500 1 18.706 8,115 1 9.4%'
County of Hawaii 2,700 2 3.7,,o 2,745 2 32%
United States Government 1,300 4 1.84,0 1,364 3 1.6%
Four Seasons Resort Hualalai 1,300 3 1.8% 562 9 0.70,o
Mauna Kea and Hapuna Prince Resorts
and Mauna Kea Services 1,012 5 1.4%
Hilton Waikoloa Village 921 6 1.3% 984 4 -
KTA Super Stores 850 7 1.2% 800 6 1.1�"o
The Fairmont Orchid, Hawaii 600 8 0.8% 577 8 0.9°6
Mauna Lani Resort(Operations), Inc. - - 685 7 0.84 0
Hapuna Beach Prince Hotel - 487 10 0.6%
Waikoloa Beach Marriott Resort& Spa 320 9 0.4% - -
North Hawaii Community Hospital 313 10 0,4% - -
Wal-Mart - - 852 5 1.00,E
Total 22,816 31.5% 17,171 19'90/„
Total employee count 72,050 86,325
Source: County of Hawai'i, Department of Research and Development
Unaudited-see accompanying independent atiditors'report.
- 164 -
COUNTY OF HAWAN
Full-Time Equivalent County Government Employees by Function
Last Ten Fiscal Years
2010 2011 7..012 2013 2014 2015 2016 2017 2018
Function
General government:
County Council 9.00 9.00 9.00 9.00 9.00 9.00 9.00 9.00 8.(
County Clerk 56.08 53.00 54.00 52.50 46.40 53.16 54.56 54.16 51.1
Legislative Auditor 5.00 5.00 4.75 175 5.00 5.00 5.00 5.00 4.(
Mayor 19,00 21.99 18.50 16.00 18.75 19.47 17,48 16.99 16.5
Corporation Counsel 32.00 29.00 29.00 27.00 28.00 25.00 23,00 26.00 26.(
Finance 12189 121.89 123.35 131.37 134.98 134.49 131,49 151.00 153.4
Human Resources 27.98 25.49 25.48 24.00 24.49 25.49 25.49 25.49 23.4
Planning 49.00 49.49 48.00 50.00 51.00 50.00 53,00 56,00 53,(
Research&Development 14,00 14.00 12.00 1100 11,49 14.49 16.00 14.49 12.(
Information Technology 15,48 1&00 16,00 16.00 22.00 19.00 19.00 21.00 20.0
Public Works Admin&Building 16199 158.84 155.48 155,50 162.49 164.28 167.49 17149 167.7
Public Safety:
Police 558.32 565.99 541.25 548.98 567,23 564.50 564.75 572,00 550.5
Fire 411,53 414.08 391.28 418.57 429,57 436.57 43107 434.58 425.5
Liquor Control 14,00 14.00 15.00 14.00 14.00 13.00 16.00 17,00 17.0
Civil Defense 7,00 7.00 7.00 TOO 7.00 7.00 TOO 7.00 7.(
Prosecuting Attorney 98,24 99.00 91.49 99.49 98.97 105.97 108.97 108.97 111.4
Highways and Streets:
Mass Transit 7.00 7.00 7.00 8.00 11.00 11.00 12.00 10.00 12.0
Traffic and Highways 174,48 176,48 178.48 176,48 173.48 175.48 175.48 177.48 187.4
Sanitation:
Administration 16,98 18.49 17.00 17.00 19,49 19.49 17.98 19.98 18,9
Sewer 44.98 47.49 47.49 46.00 44,49 47.49 46.49 45.49 48.4
Vehicle Disposal 100 2.00 2.00 4.00 Loo 100 2.00 2.00 10
Solid Waste 93,00 95.00 99.00 98,00 103.50 10100 104.00 102.00 103.0
Health,Education and Welfare:
Housing 47.44 47.48 43.48 41.00 43,00 46.00 46,00 47,00 48.0
Aging 11.00 1100 13,00 11,00 1100 9.00 13,00 15.00 16.0
Culture and Recreation 379.50 380,74 370.15 370.87 352.14 362.40 356,84 369.29 372.3
Total _1374789 2,390.45 2319.18 2,35751 2,390.47 2,42128 2,425,(19 2,47941 2,4563
Source: County of Flawai'i.Department of Finance
Unaudked-screaccornpanying,indqwndent auditors'repon
COUNTY OF HAWAVI
Operating Indicators by Function
Last Ten Fiscal Years
2010 2011 2012 2013 2014 2.015 2016
Function
Public Safety:
Police:
DUI arrests 1,452 1,468 1,403 1.170 1,351 1,035 1,113
Traffic citations issued 61883 61,947 60,967 49.292 63,921 60,016 67.289
Fire:
Fire responses 889 731 684 654 671 700 700
Emergency medical/rescue responses 15,308 15,726 16,361 16A54 15,968 18,750 17,834
Inspections-Occupancy/Fire Protective Equipment 1.579 3,021 2,050 1,463 1,687 1,262 1,000
Sanitation:
Refuse disposed(tons per year) 154,914 166,455 152,949 153,581 166,890 179,033 188,758
Highways and Streets:
In-house street resurfacing(miles) 23 18 20 20 17 6 21
Parks and Recreation:
Pavilion permits issued 2.340 4,667 2,805 1775 2,708 2,482 2,552
Camping permits issued 4.290 4,019 4.450 5.175 4,261 6.207 6.688
Rounds of golf 80.407 83.358 72,162 71.352 71,568 65,093 57,325
Zoo attendance 172.737 172,677 213,53-7 245.715 220,323 214,249 251,436
Transit:
Bus passengers 1,060.057 1,149,042 1,315,222 1.269,550 920.280 944,738 874,424
Public Works:
Building permits issued 3.234 3,039 3,258 4,754 4,797 5,494 4,833
Electrical permits issued 3,602 3,821 4,080 5.137 5,313 5,645 4,232
Plumbing permits issued 2,638 2,071 1,749 2.001 1,664 1.897 1,819
Sign permits issued 62 58 55 52 57 44 47
Source: County of Hawai*i.Individual Departments
Unaudited-see accompanying independent auditors'report
COUNTY OF FIAWAPI
Capital Asset Statistics by Functions
Last Ten Fiscal Years
2010 2011 2012 2013 2014 2015 2016 2(
Function
Public Safety:
Police:
Stations 8 8 8 8 8 8 8
Substations 10 10 10 8 8 8 10
Fire stations 20 20 20 20 21 21 21
Highways and Streets:
County streets(miles) 944 946 954 945 961 956 956
Streetlights 9,592 9,864 9,883 9,939 10,165 10,366 10,655 1
Parks and Recreation:
Parks 143 143 144 145 145 146 147
Gyrns and recreation centers 61 61 62 62 62 62 62
Sanitation:
sarlitary sewers(miles) III* 111* 112* 112* 105* 105 105*
*GtS database utilized beginning FY 2008
Source: County of Flawai'i,Department ol"Research and Development
(Jriaudited-see accompanying independent auditors'report..