HomeMy WebLinkAboutComprehensive Annual Financial Report 2020County of Hawaii
State of Hawaii
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Comprehensive Annual Financial Report
For the Fiscal Year
July 1, 2019 to June 30, 2020
COMPREHENSIVE
ANNUAL FINANCIAL REPORT
Fiscal Year Ended June 30, 2020
vrV v y �r J
COUNTY OF HAWAII
Hilo, Hawaii
Harry Kim
Mayor
Roy Takemoto
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, 2020
Table of Contents
FINANCIAL SECTION
Report of Independent Auditors
Management's Discussion and Analysis 14
Basic Financial Statements:
Government -wide Financial Statements:
Statement of Net Position 26
Statement of Activities 28
Fund Financial Statements:
Ling
INTRODUCTORY SECTION
30
Letter of Transmittal
GFOA Certificate of Achievement
7
Organization Chart
8
List of Elected Officials
9
List of Principal Officials
10
FINANCIAL SECTION
Report of Independent Auditors
Management's Discussion and Analysis 14
Basic Financial Statements:
Government -wide Financial Statements:
Statement of Net Position 26
Statement of Activities 28
Fund Financial Statements:
Balance Sheet - Governmental Funds
30
Reconciliation of the Governmental Funds Balance Sheet to the
Statement of Net Position
31
Statement of Revenues, Expenditures, and Changes in Fund Balances -
Governmental Funds
32
Reconciliation of the Change in Fund Balances of Governmental
Funds to the Statement of Activities
34
Statement of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual (Budgetary Basis) - General Fund
36
Statement of Net Position - Proprietary Funds
40
Statement of Revenues, Expenses, and Changes in Fund Net Position -
Proprietary Funds
41
Statement of Cash Flows - Proprietary Funds
42
Statement of Fiduciary Net Position - Fiduciary Funds
43
Statement of Changes in Fiduciary Net Position - Fiduciary Funds
44
Notes to the Basic Financial Statements
45
Required Supplementary Information
103
FINANCIAL SECTION (Continued)
147
Table 2 - Changes in Net Position
Page
Combining and Individual Nonmajor Fund Statements and Schedules:
150
Combining Balance Sheet - Nonmajor Governmental Funds
114
Combining Statement of Revenues, Expenditures, and Changes in Fund
152
Balances - Nonmajor Governmental Funds
118
Schedules of Revenues, Expenditures, and Changes in Fund Balances -
157
Budget and Actual (Budgetary Basis):
158
Highway Fund
121
Sewer Fund
122
Solid Waste Fund
123
Cemetery Fund
124
Parking Meter Fund
125
Vehicle Disposal Fund
126
Bikeway Fund
127
Workforce Investment Act Fund
128
Golf Course Fund
129
Geothermal Relocation and Community Benefits Fund
130
Beautification Fund
131
Hawaii County Housing Agency
132
Park Dedication Fund
133
Short-term Vacation Rental Enforcement Fund
134
General Excise Tax Fund
135
Combining Statement of Agency Funds Net Position - Agency Funds
136
Combining Statement of Changes in Assets and Liabilities - Agency Funds
138
Combining Statement of Private Purpose Trust Net Position - Private Purpose Trusts
144
Combining Statement of Changes in Net Position - Private Purpose Trusts
145
STATISTICAL SECTION
Table 1 - Net Position by Component
147
Table 2 - Changes in Net Position
148
Table 3 - Fund Balances, Governmental Funds
150
Table 4 - Changes in Fund Balance, Governmental Funds
151
Table 5 - Real Property Assessed Values by Classification and Tax Rates
152
Table 6 - Principal Taxpayers
156
Table 7 - Property Tax Levies and Collections
157
Table 8 - Ratios of Outstanding Debt by Type
158
Table 9 - Ratios of General Bonded Debt Outstanding
159
Table 10 - Legal Debt Margin Information
160
Table 11 - Demographic and Economic Statistics
161
Table 12 - Principal Employers, County of Hawaii
162
Table 13 - Full -Time Equivalent County Government Employees by Function
163
Table 14 - Operating Indicators by Function
164
Table 15 - Capital Asset Statistics by Functions
165
INTRODUCTORY SECTION
Mitchell D. Roth
Mayor
December 30, 2020
County of Hawaii
Finance Department
25 Aupuni Street, Suite 2103 • Hilo, Hawaii 96720
(808) 961-8234 . Fax (808) 961-8569
The Honorable Mayor and Members of the Council
County of Hawaii
25 Aupuni Street
Hilo, Hawaii 96720
Deanna S. Sako
Director
Steven A. Hunt
Deputy Director
We transmit herewith the Comprehensive Annual Financial Report for the County of Hawaii,
State of Hawaii (the County), for the fiscal year July 1, 2019 to June 30, 2020.
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, 2020 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 Hawaii, including its component unit, the
Department of Water Supply, established by the County Charter as a semi -autonomous body of
the County government. This component unit is included in the County's reporting entity
because of its financial relationship with the County.
Hawaii County is an equal opportunity provider and employer.
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 Hawaii, 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 &•eight 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 lags. Although the unemployment rate for the County for
the current fiscal year is at approximately 13.2 percent, it preliminarily decreased to 9.8 percent
as of November 2020, which is according to the State of Hawaii Department of Labor and
Industrial Relations Office of Labor and Statistics.
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.
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.
Then as the County was beginning to recover, COVID-19 began to spread throughout the world
and on January 30, 2020 the World Health Organization declared a Public Health Emergency of
International Concern. The County, as well as the rest of our nation, was challenged to balance
decreasing revenues from all major sources with increasing expenditures incurred in response to
dealing with the public health crisis facing the community. In order to aid the state and local
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governments in their struggle, the federal government passed the Coronavirus Aid, Relief and
Economic Security Act ("CARES Act"), which awarded the County with $80 million to address
medical, public health, economic support and other emergency response costs resulting from
COVID-19.
Major Initiatives
For the Year
Public Safety — The Hawai' i Police Department faced significant challenges during fiscal year
2020, one of which was the COVID 19 pandemic, which brought about some unique challenges
and responsibilities for the police department.
The Hawaii Fire Department had a number of significant accomplishments throughout fiscal
year 2019-20. By hosting multiple overlapping recruit classes, the Department achieved nearly
full staffing for the first time in a number of years. From the onset of the COVID-19 pandemic,
the Hawaii Fire Department led the County's prevention and education task force, which
established and implemented safety protocols to keep the local businesses open, while
simultaneously reducing the COVID-19 risk to the community.
Public Works — With a project cost of $14 million, the Prosecuting Attorney's Office at the West
Hawaii Civic Center was completed. With the recent opening of the judiciary building in
Kailua-Kona, it was convenient to have the Prosecuting Attorney's office nearby to reduce the
traveling time.
The Highways division started the process of implementing Geographic Information Systems
(GIS) to improve data collection and workflow processes throughout operations. The program
integrates with public safety and civil defense departments, and provides for better overall
coordination between agencies.
Culture and Recreation — Parks and Recreation opened Kuawa Street park fields for use. The
park includes a baseball/softball and multipurpose field. The Department provided response to
the COVID-19 pandemic by developing policy and rules for safe facility use and the
development and implementation of modified programs, such as the emergency meal plan for
our elderly and Summer Fun programs for our youth.
For the Future
Public Safety -- With the acquisition of equipment, the Police Department plans to implement the
Department's Body Worn Camera (BWC) program in the upcoming fiscal year FY 21. The
Department will continue to strive towards the construction of a combined Fire and Police
Dispatch Center, which is currently in the bid proposal phase.
-3-
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
project is expected to be complete during the second quarter of 2021.
Originally built in 1937, AIN Drive culvert is being demolished due to being structurally
deficient. The new properly -sized structure will provide a wider stream flow opening, a
longer span and wider lane bridge with wider shoulders for pedestrians and bicyclists while
reducing area flood hazards. With an estimated cost of $8.97 million, the new bridge will
feature two 16 -foot wide travel lanes, two 7 -foot wide sidewalks, and new guardrails.
Culture and Recreation - The Department will continue to provide emergency meals, modified
programs, recreational opportunities and continue the maintenance and sanitization operations,
while adhering to government proclamations and guidelines as the pandemic continues.
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.
Financial Highlights
Total revenues increased by $68.0 million from the prior year, which was mostly due to property
taxes increasing by approximately $17.5 million. Most notably, there were increases in the value
of net taxable buildings of $1.0 billion, with the largest increase occurring in the residential class
of $832 million. Second, there was an increase of $23.0 million from the prior year in revenues
from the general excise tax surcharge. The surcharge was in effect for 12 months in the current
fiscal year as compared to only 6 months in the prior year and the rate also doubled in the last 6
months of the current fiscal year from 0.25% to 0.50%. With a 13.0 percent ($68.0 million)
increase in revenues that was offset by a 6.0 percent ($33.2 million) increase in expenses, the
County experienced an increase in net position of $23.0 million, which represented a 296.1%
($34.8 million) increase over the prior year's decrease in net position.
The County's net investment in capital assets increased by $25.5 million from the prior year,
which represented a 2.9 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 all have contracts
that expire on June 30, 2021.
Certificate of Achievement
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
Hawaii for its Comprehensive Annual Financial Report for the fiscal year ended June 30, 2019.
This was the thirty second 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.
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
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, 2019
Executive DirectorrCE0
M
County of Hawaii
Organization Chart
County Council
County I I Legislative
Clerk Auditor
Departments under
direct supervision of the
Managing Director:
Corporation Counsel
Finance
Planning
Environmental Management
Research & Development
Public Works
Parks & Recreation
Information Technology
County Electorate
Mayor ' Prosecuting Attorney
Office of M,an,a,gement
Managing Director
Agencies under
direct supervision of the
Managing Director:
Civil Defense
Office of Aging
Mass Transit
Office of Housing &
Community Development
Departments under
commissions and
administrative supervision
of the Mayor:
Human Resources
Police
Liquor Control
Fire
Water Supply
(semi -autonomous)
County of Hawaii
Elected Officials
June 30, 2020
Administrative Officers (Term: 2016-2020)
Harry Kim
Mitchell Roth
County Council (Term: 2018-2020)
Aaron S.Y. Chung
Karen Eoff
Maile "Medeiros" David
Matt Kaneali`i-Kleinfelder
Ashley L. Kierkiewicz
Susan L. K. Leeloy
Valerie T. Poindexter
Herbert M. "Tim" Richards, III
Rebecca Villegas
Mayor
Prosecuting Attorney
Chair
Vice Chair
Member
Member
Member
Member
Member
Member
Member
Principal Officials
June 30, 2020
County Clerk
Jon Henricks
Legislative Auditor
Bonnie Nims
Managing Director
Roy Takemoto
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 Walt jen
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
William Farr III
Administrator, Office of Housing and
Community Development
Duane Hosaka
Director of Information Technology
Julie Ung
ow
FINANCIAL SECTION
N&K CPAs, Inc.
ACCOUNTANTS I CONSULTANTS
INDEPENDENT AUDITOR'S REPORT
To the Chair and Members of the County Council
County of Hawai'i
Report on the Financial Statements
999 BISHOP STREET, SUITE 2200
HONOLULU, HAWAII 96813
T (808) 524-2255 F (808) 523-2090
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, 2020, 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.
WE
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 Hawai'i, State of Hawai'i, as of June 30, 2020, 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 14 through 24), schedule of changes in the net
OPEB liability and related ratios (pages 103 through 105), schedule of contributions (OPEB)
(pages 106 through 108), schedule of the County's and Department's proportionate share of the
net pension liability (ERS) (page 109), schedule of the employer pension contributions (ERS)
(pages 110 through 111), and schedule of changes in total pension liability (page 112), 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
Eva
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, 2020, 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.
/1/4�- )(/ 0004s-, IPMOC.
Honolulu, Hawai'i
December 30, 2020
-d39
This section of the County of Hawai`i's (the 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, 2020. We encourage readers to consider the information presented here in
conjunction with additional information that we have furnished in our letter of transmittal.
FINANCIAL IIIGHLIGHTS
• The assets of the County exceeded its liabilities at the end of the fiscal year by $153.0 million
(net position). This amount includes a negative balance of $834.5 million in unrestricted net
position, a decrease of $13.6 million from the prior year, which is explained in the sections
below. This amounts also includes $206.9 million and $21.4 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 $251.0 million, an increase of $26.6 million from the prior year.
Approximately 40 percent of this total amount, $88.9 million, is available for spending at the
County's discretion (unrestricted fimd balance).
• At the end of the current f iscal year, unrestricted fund balance for the general f and was $61.4
million, or 72 percent of total general fund expenditures.
OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an introduction to the County's basic financial
statements. The County's basic financial statements comprise three components: (1)
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
The 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 on 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 statement 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 earned 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, culture and recreation,
sanitation and general government. The business -type activities of the County include rental
housing for senior citizens and families.
-14-
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.
Fund Financial Statements
The fund financial statements 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 fund 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 funds 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 from 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 nonma jor 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 statements, only in more detail. The
County maintains only one type of proprietary funds, enterprise funds. Enterprise funds
are used to report the same functions presented as business -type activities in the government -
wide financial statements. The County uses enterprise funds to account for the operations of
the Kulaimano Elderly Housing Project and the Ouli Ekahi Affordable Housing Project.
_15-
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 statements provide additional information that is essential to a full
understanding of the data provided in the government -wide and fund financial statements.
Other Supplementary 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
nonma jor governmental funds and budgetary comparison schedules for the nonma jor special
revenue funds are presented immediately following the required supplementary information.
GOVERNMENT -WIDE FINANCIAL ANALYSIS
Condensed Statement of Net Position
June 30, 2020 and 2019
,Trimary Government
Governmental Activities Business -type Activities Total
201 29.1.4 20 2019 22_2_0 20119
Assets:
Current and other assets S 401,959,382 S 351,300,809 S 1,347,120 S 1,300,216 S 403,306,502 S 352,601,025
Capital assets, net 1,360,608,411 1,328,138,639 1,917,893 1,365,554 1,362,526,304 1,329,504,193
Total assets 1,762,567,793 1,679,439,448 3,265,013 2,665,770 1,765,832,806 1,682,105,218
Deferred Outflows
Of Resources: 206,923,055* 213,039,853* -- 206,923,055 213,039,853
Total Assets and Deferred
,!,,
Outflows of Resources .. µw,1,969,490,848 µµµµµw1,892,479,301.. - µµµµµwww_2665 _,_770 972 755,861 1,895,145,071
Liabilities:
Long-term liabilities
outstanding 1,675,729,743 1,677,521,661* 582,961 697,777 1,676,312,704 1,678,219,438
Other liabilities 121,977,885 69,882,208 69,134 83,015 122,047,019 69 965,223
Total liabilities 1,797,707,628 1,747,403,869 652,095 780,792 1,798,359,723 1,748,184,661
Deferred Inflows
Of Resources: 21,372,121 16,970,935 21,372,121 16,970,935
Total Liabilities and
Deferred Inflows
Of Resources R„_1,819,079,749 w 1,764,374,804 652,095 780,792 1,819,731,844 1,765,155,596
Net position:
Net investment in
capital assets 891,782,081 866,986,564 1,334,932 667,777 893,107,013 867,654,341
Restricted 94,431,592 83,230,067 -- 94,431,592 83,230,067
Unrestricted _5835,802,5742* _5822,102,1342 1,277,986 1,217,201 _5834,524,5882 820,894,933
Total net position 5 150,411,099 5 128,104,497 $ 2,612,918 $1,884,978 $153,024,017 S129�89,475
*See explanation on page 17.
-16-
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 $153.0 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 on how they may be used.
At the end of the current f iscal 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 increased by $23.0 million from the prior year, which was an increase
of $34.7 million (297%) from the decrease that was experienced last fiscal year. The main
reasons for the large increase in the current year's increase over last year's decrease, was due to
several increases in revenue sources. Property taxes increased in the current fiscal year by $17.5
million due to a $1.0 billion increase in the assessed value of the net taxable buildings. Revenues
from the general excise tax surcharge increased by $23.0 million from the prior year due to fact
that the surcharge was in effect for 12 months in the current fiscal year and also doubled in the
last 6 months.
The County's net capital assets increased by $33.0 million (2 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 24.
The County's long-term liabilities outstanding decreased by $1.9 million (0.1 percent) due
primarily to principal payments of bonds and SRF loans and amortization of related bond
premiums totaling $30.5 million that were offset by a $32.6 million increase in the County's net
pension liability. The remaining decrease in this category is comprised of net changes in the
other long-term liability balances, of which most notable is the $6.4 million increase in other
post -employment benefit obligation and a $17.6 million decrease in landfill closure payable due
to current year payments. See further discussion of the increase in long-term debt outstanding on
page 25.
-f7-
Condensed Statements of Activities
For the Fiscal Years Ended June 30, 2020 and 2019
Revenues:
Program revenues;
Charges for services
Operating grants and contributions
Capital grants and contributions
General revenues:
Property taxes
Other taxes
Grants and contributions, unrestricted
Investment earnings
Other
Transfers
Total revenues and transfers
Expenses:
General government
Public safety
Highways and streets
Health, education and welfsare
Culture and recreation
Sanitation
Interest on long-term debt
Total expenses
Increase (Decrease) in net position
Net position at beginning of year
Net position at end of year
S 150,411,099 S 128,104,497 S 2,612,918 S 1,884,978 S 153,024,017 S 129,989,475
Analysis of Changes in Net Position
Governmental activities. Governmental activities increased the County's net position by $22.3
million, which represented all of the total decrease in net position of the County.
The primary reasons for the $68.0 million (13 percent) increase in total revenues was due to a
$1.0 billion increase in the assessed value of the net taxable buildings, with the most notable
increase of $832 million occurring in the residential class. With no changes in the tax rates from
the prior year, the increase in real property tax revenues of $17.5 million was attributable solely
to increases in the assessed values of land and buildings. Revenues from the general excise tax
surcharge increased by $23.0 million from the prior year due to fact that the surcharge was in
effect for 12 months in the current fiscal year and also doubled in the last 6 months from 0.25% to
0.50%.
Total expenses increased by $33.2 million, which represented a 6 percent change from the prior
year. There were the typical increases in salaries and wages and related employment benef it costs
across all functions in the current fiscal year, including approximately $3.0 million of
expenditures incurred by the County in responding to the COVID-19 pandemic.
_19-
Primary Government
Governmental Activities
Business -type Activities s
Total
2020
2019
2M
2019
24
M2
S 56,476,328
S 55,359,674
S 482,150
S 510,352
S 56,958,478
S 55,870,026
75,553,629
64,285,842
269,273
261,848
75,822,902
64,547,690
43,498,993
28,375,566
43,498,993
28,375,566
333,515,661
315,969,118
-
333,545,661
315,969,118
73,873,234
47,796,847
73,873,234
47,796,847
16,530,357
19,748,211
-
-
16,530,357
19,748,211
3,220,862
3,420,693
5,193
8,234
3,226,055
3,428,927
2,127,119
1,848,245
-
2,127,149
1,848,245
(616,776)
-
616,776
-
604,179,407
536,804,196
1,373,392
780,434
605,552,799
537,584,630
86,747,456
88,660,088
-
86,747,456
88,660,088
274,259,439
248,141,465
274,259,439
248,111,465
67,161,387
62,066,700
-
-
67,161,387
62,066,700
37,042,326
37,919,675
645,452
609,486
37,687,778
38,529,161
33,613,224
35,908,061
-
33,613,224
35,908,061
68,870,497
62,775,074
-
68,870,497
62,775,074
14,178,476
13,277,652
14,178,476
13,277,652
581,872,805
548,748,715
645,452
609,486
582,518,257
549,328,201
22,306,602
(11,914,519)
727,940
170,948
23,034,542
(11,743,571)
128,104,497
140,019, 016
1,884,978
1,714,030
129,989,475
141, 733,046
S 150,411,099 S 128,104,497 S 2,612,918 S 1,884,978 S 153,024,017 S 129,989,475
Analysis of Changes in Net Position
Governmental activities. Governmental activities increased the County's net position by $22.3
million, which represented all of the total decrease in net position of the County.
The primary reasons for the $68.0 million (13 percent) increase in total revenues was due to a
$1.0 billion increase in the assessed value of the net taxable buildings, with the most notable
increase of $832 million occurring in the residential class. With no changes in the tax rates from
the prior year, the increase in real property tax revenues of $17.5 million was attributable solely
to increases in the assessed values of land and buildings. Revenues from the general excise tax
surcharge increased by $23.0 million from the prior year due to fact that the surcharge was in
effect for 12 months in the current fiscal year and also doubled in the last 6 months from 0.25% to
0.50%.
Total expenses increased by $33.2 million, which represented a 6 percent change from the prior
year. There were the typical increases in salaries and wages and related employment benef it costs
across all functions in the current fiscal year, including approximately $3.0 million of
expenditures incurred by the County in responding to the COVID-19 pandemic.
_19-
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 (47 percent),
followed by general government (15 percent) and sanitation (12 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 (55 percent), followed by operating grants
and contributions (12 percent) and other taxes (12 percent).
Expenses and Program Revenues — Governmental Activities
Year Ended June 30, 2020
$300,000,000
$250,000,000
S200,0130,000
$150,000,000
$100,000,000
$50,000,000
$0
0�\o�
11 Z41
Revenue by Source — Governmental Activities
Year Ended June 30, 2020
Investment earnings, .....—
$3,220,862
Grants and contributions
not restricted to specific
programs, $16,530,357
Othertaxes, $73,873,234
Property taxes,
$333,515,661.
Other, $2,127,119 /— Charges for services,
�.... / $56,476,328
Operating grants and
contributions,
$75.553,629
Capital grants and
contributions,
$43,498,993
Business -type activities. Business -type activities increased the County's net position by
$727,940 versus an increase of $170,948 in the prior year. Expenses for health, education and
welfare account for all of the $645,452 of expenses which represents a 6 percent increase from
the prior year, due to increases in repairs and maintenance and administrative charges. Charges
for services were $482,150 and operating grants and contributions were $269,273, which were
comparable to the prior year.
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.
Governmenlalfunds. 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$251.0 million, an increase of $26.6 million (12 percent) in comparison
with prior year. Approximately 35 percent of this total amount ($88.9 million) constitutes
unrestricted fund balance. The unrestricted portion of the fund balance is comprised of (1) $60.5
million in committed fund balance, (2) $46.0 million in assigned fund balance, and (3) negative
$17.6 million in unassigned fund balance. The remainder of the fund balance is divided between
$8.2 million in nonspendable fund balance for inventory and $154.0 million in restricted fund
balance. Approximately 74 percent of the total restricted fund balance is due to restrictions
relating to highways, streets and abandoned vehicles ($75.7 million) and debt service ($38.8
million). $15.5 million of the fund balance restricted for highways, streets and abandoned
vehicles was due to the General Excise Tax fund that was created in the prior year, which
accounts for the general excise tax surcharge that became effective in fiscal year 2019. The fund
balance of the General Excise Tax Fund increased by $9.5 million due to the fact that the
surcharge was in effect for a full 12 months in fiscal year 2020 and doubled during the last 6
months.
The general fund is the chief operating fund of the County. At the end of the current fiscal year,
unrestricted fund balance of the general fund was $61.4 million, while total fund balance
increased to $84.9 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 17 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 $8.7 million during the current fiscal
year as compared to an increase of $15.1 million in the prior year. Key factors in this decrease
($6.4 million) over last year's increase are as follows:
A positive increase of $14.3 million (5 percent) in real property tax revenues and $9.2 million
(15 percent) in intergovernmental revenues. As explained previously, the increase in real
property tax revenues is due to an increase (5%) in the value of net taxable real property as
evidenced in the accompanying statistical tables. $5.1 million was also received from the
State to reimburse the County for costs incurred in connection with the situation on Mauna
Kea.
The positive impact of the increase in revenues was offset by increases of $33.6 million (10
percent) in expenditures. $6.8 million of the total increase in expenditures is due to increases
in salaries and wages from the prior year and $7.9 million in associated employee and retiree
benefits. The County also faced the continuation of funding costs related to emergency
protective measures resulting from the COVID-19 pandemic as opposed to the lava eruption
and hurricanes in the prior years.
The fiend balance of the County's capital projects fund decreased by $5.3 million (10 percent)
during the current fiscal year. The decrease is primarily due to an increase of $21.8 million in
expenditures from the prior year. See discussion regarding construction activity during the
current year in the capital asset section below. The increase in expenditures were offset by an
other financing source of $30.3 million related to the bond anticipation notes (BANs) that were
issued in the prior year and considered a current liability because the legal steps regarding the
issuance of the bonds to pay off these notes were not completed at the time the audited financial
statements were issued. The legal steps will be completed prior to the issuance of this year's
financials. There was also an increase in transfers in from the General Excise Tax (GET) fiend of
$8.6 million as a direct result of increases to the surcharge revenue in the GET fiend.
The debt service funds consist of the Bond Redemption Fund and the Interest Fund. These funds
have combined total fiend balances of $38.8 million, all of which is restricted for the payment of
debt service. The net increase in the combined fund balances during the current year in the debt
service funds was $5.6 million, which was a 17 percent change from the prior year and due to an
increase of transfers in of $3.8 million.
Proprietaryfunds. The County's proprietary fiends 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 amounted to $668,562, and $609,424 for the Ouli Ekahi Affordable Housing Project (Ouli
Ekahi). The total net position for Kulaimano increased by $130,526 and the net position for Ouli
Ekahi increased by $597,414. 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 f inal amended budget were primarily the result
of a $42.1 million increase in appropriations, the most significant reasons were due to $16.9
million in increases in the grant appropriations from the State relating to the County's response to
the situation at Mauna Kea and relating to the County's share of the State's allocation of federal
fiends received under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Differences between the final budget and the actual (budgetary basis) resulted in approximately
$18.8 million less revenues than expected and $27.1 million less expenditures than appropriated.
This is primarily due to the following factors:
• The negative variance of $18.8 million in revenues is comprised mostly of $11.8 million from
intergovernmental revenues, of which $3.2 million was unrecognized in the General Fund
relating to the State's Transient Accommodations Tax (TAT) grant and $3.7 million from
various federal capital grants related to Section 5309.
_21 -
• $13.4 million of the 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 ($8.3
million) and general government ($3.4 million).
• $7.2 million is due to lower than anticipated payments needing to be made in retirement
related payments. With each department increasing of sorts to control costs, overtime was
also closely monitored and the corresponding pension expenditures were not incurred.
• $2.8 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 business -type
activities as of June 30, 2020 amounts to $1.4 billion (net of accumulated depreciation). This
investment in capital assets includes land and improvements, buildings and improvements,
equipment, easements, and infrastructure assets, which consists of primarily roads and bridges.
The total increase in the County's investment in capital assets for the current fiscal year was 2
percent.
Major capital asset events during the current fiscal year included the following:
• Construction continued on the Kalaniana`ole Avenue Reconstruction; construction in
progress as of the end of the current fiscal year had reached $6.1 million with $2.6 million
coming from the current fiscal year.
• Construction continued on the Mamalahoa Highway Widening; construction in progress as of
the end of the current fiscal year had reached $13.9 million with $5.9 million coming from
the current fiscal year.
• Construction continued on the Office of the Prosecuting Attorney; construction in progress as
of the end of the current fiscal year had reached $14.5 million with $7.4 million coming from
the current fiscal year.
• Construction continued on the Hawaii County Radio System Upgrade project; construction
in progress as of the current fiscal year had reached $12.9 million with $0.8 million coming
from the current fiscal year.
• Construction continued on the Hawaiian Ocean View Estates Transfer Station; constructions
in progress as of the end of the current fiscal year had reached $2.1 million with $1.9 million
coming from the current fiscal year; project was transferred to Buildings.
• Construction continued on the Kealakehe Wastewater Treatment Plant R -I Upgrade project;
construction in progress as of the end of the current fiscal year had reached $6.9 million, with
$2.4 million coming from the current fiscal year.
• Construction continued on the Lono Kona Subdivision Sewer Improvements project;
construction in progress as of the end of the current fiscal year had reached $8.4 million with
$7.1 million coming from the current fiscal year; project was transferred to Buildings.
• $20.7 million of dedicated roads were received by the County in the current fiscal year.
-22-
Capita Assets
(net of depreciation)
June 30, 2020 and 2019
Additional information on 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 $359.2 million, State
Revolving Fund loans of $37.4 million and Bond Anticipation Notes of $30.0 million. At the end
of the current fiscal year, the County had total bonded debt outstanding of $359.2 million. This
entire amount 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 $23.2 million (6 percent) during the current fiscal
year due to the retirement of that amount of bonds.
At the end of the fiscal year, the County held an "AA" rating from Standard & Poor's, an "AA+"
rating from Fitch and an "Aa2" rating from Moody's for general obligation debt.
State statutes limit the amount of general obligation debt the County may issue up 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 $5.0 billion, which is in excess
of the County's outstanding general obligation debt. Currently the County's outstanding debt
represents 6 percent of our debt limitation.
Additional information on 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 13.2
percent, which is 9 percent higher than at the end of the prior fiscal year. This increase is
a result of the current COVID-19 pandemic that is plaguing the world.
• The number of domestic and international visitors to the County for the current fiscal
year was approximately 1.29 million, with an approximately 23 percent decrease from the
previous year's count of 1.67 million.
-23-
Primary Government
Governmental Activities
Business -type Activities
Total
2020
W12
2020
2019
2020
2019
Land and improvements
5 278,888,359
5 263,470,308
5 753,877
5 753,877
S 279,642,236
S 264,224,195
Infrastructure assets
296,257,213
312,878,757
-
296,257,213
312,878,757
Ground and site improvements
-
44,852
49,199
44,852
49,199
Buildings and improvements
635,602,987
627,746,572
1,032,447
538,410
636,635,434
628,284,982
Easements
11,116,725
6,250,078
11,116,725
6,250,078
Equipment
58,412,276
59,337,103
86,717
24,068
58,498,993
59,361,171
Construction work in progress
80,330,851
58,455,811
-
-
80,330,851
58,455,811
Total
$1,360,608,411
$1,328,138,639
S 1,917,893
S 1,365,554
51,362,526,304
$1,329,504,193
Additional information on 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 $359.2 million, State
Revolving Fund loans of $37.4 million and Bond Anticipation Notes of $30.0 million. At the end
of the current fiscal year, the County had total bonded debt outstanding of $359.2 million. This
entire amount 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 $23.2 million (6 percent) during the current fiscal
year due to the retirement of that amount of bonds.
At the end of the fiscal year, the County held an "AA" rating from Standard & Poor's, an "AA+"
rating from Fitch and an "Aa2" rating from Moody's for general obligation debt.
State statutes limit the amount of general obligation debt the County may issue up 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 $5.0 billion, which is in excess
of the County's outstanding general obligation debt. Currently the County's outstanding debt
represents 6 percent of our debt limitation.
Additional information on 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 13.2
percent, which is 9 percent higher than at the end of the prior fiscal year. This increase is
a result of the current COVID-19 pandemic that is plaguing the world.
• The number of domestic and international visitors to the County for the current fiscal
year was approximately 1.29 million, with an approximately 23 percent decrease from the
previous year's count of 1.67 million.
-23-
With the COV1D-19 pandemic plaguing not only our nation but the entire world, the
County is preparing to deal with the fiscal and economic impact that will continue to
impact our island beyond the upcoming fiscal year of 2021. Concerns in the area of
increasing unemployment, ability of businesses to continue to operate, fulfilling the basic
needs of the island citizens and working to protect the population will impact the budget.
The County administration will continue to monitor the effects of the pandemic and plan
accordingly to prepare for the tough decisions that will need to be made regarding the
health and safety of the people.
These factors were considered in preparing the County's budget for the 2021 fiscal year.
At the end of the current fiscal year, unrestricted fund balance in the general fund was $61.4
million. The County has appropriated $30.5 million of this amount for spending in the 2021
fiscal year budget and the majority is included in the assigned portion of the 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 finances. Questions concerning any of the information
provided in this report or requests for additional information should be addressed to the Director
of Finance, County of Hawaii, 25 Aupuni Street, Suite 2103, Hilo, Hawaii 96720.
-24-
BASIC FINANCIAL STATEMENTS
-25-
COUNTY OF HAWAII
Statement of Net Position
June 30, 2020
Primary Government
Governmental Business -type Component
Activities Activities Total Unit
Assets
Current assets:
Cash and cash equivalents (notes 3 and 14)
S 118,630,879
S 1,222,541
S 119,853,420
S 19,663,1 15
Restricted cash and cash equivalents (note 3)
115,097,008
42,988
115,139,996
Investments (note 3)
28,245,013
-
28,245,013
7,000,000
Restricted investments (note 3)
31,185,737
31,185,737
-
Receivables, net (note 4)
83,047,819
10,771
83,058,590
8,525,253
Receivable from improvement district
(notes 4 and 10)
112,317
-
112,387
-
lntemal balances (note 5)
4,000
(4,000)
-
-
Inventories
8,187,482
-
8,187,482
1,537,355
Prepaid expenses
49,343
2,133
51,476
45,116
Other
1,541,638
_ -
1,541,638
-
Total current assets
386,101,236
1,274,433
387375669
,. „ 36,770,839
Investments (note 3)
14,083,348
-
14,083,348
15,000,000
Restricted cash and cash equivalents (note 3 and 14)
72,687
72,687
888,225
Receivable from improvement district, excluding
current portion (notes 4 and 10)
1,774,798
-
1,774,798
Capital assets (notes 6, 8 and 14 )'
Utility plant in service, net
-
239,507,889
Infrastructure assets, net
296,257,213
-
296,257,213
-
Ground and site improvements, net
-
44,852
44,852
-
Buildings and improvements, net
635,602,987
1,032,447
636,635,434
Equipment, net
58,412,276
86,717
58,498,993
-
Easements, net
11,116,725
11,116,725
-
Preliminary survey and investigation charges
-
-
6,417,849
Land and improvements
278,888,359
753,877
279,642,236
5,261,319
Construction work in progress
80,,330,8..51
5 0_ 0Q
Total capital assets, net
1,360,608,411
___..80�,3..�3...0�,8.5...8 ..
1,917,893
1.362526,304
301,507,,1,8..7
Total noncurrent assets
1,3376,466,557
1,990,580
1 378 45-,57 37
_31r7,395ALZ
Total assets
1,762,567,793
3,265 013
1,765,832,806,
,,...35A.l 6.251
Deferred Outflows of Resources
Deferred loss on refunding
5,291,893
-
5,291,893
-
Deferred outflow related to pensions and other
post employment benefits (notes 13 and 14)
201,631,162
_ m w
201 6� 31 I„a62_
�, 9
Total deferred outflows of resources
206,923,05_5
_
206_923x,055_JQ,QQ3,Q
Total Assets and Deferred Outflows of Resources
11,969,490,848
3,265 013
1,972755,,861„,,,
_364 2 9.320
(Continued)
COUNTY OF HAWAII
Statement of Net Position
Liabilities
Current liabilities:
Accounts payable and accrued liabilities
Accrued payroll
Advance collections - intergovernmental
Interest due on long-term debt
Bonds and loans payable, current portion net
(notes 10 and 14)
Compensated absences, current portion (note 10)
Claims and judgments, current portion
(notes 10. 12 and 14)
Capital leases, current portion (notes 8 and 10)
Landfill costs payable, current portion
(notes 9 and 10)
Customers' deposits
Other
Total current liabilities
Noncurrent liabilities:
Bonds and loans payable, net
(notes 10 and 14)
Compensated absences (note 10)
Claims and judgments (notes 10. 12 and 14)
Capital leases (notes 8 and 10)
Landfill costs payable (notes 9 and 10)
Unearned revenue, noncurrent
Customers' deposits
Net pension liability (notes 13 and 14)
Net OPEB liability (notes 13 and 14)
Other
Total noncurrent liabilities
Total liabilities
Deferred Inflows of Resources
Deferred inflows related to pensions and other
post employment benefits (notes 13 and 14)
Deferred inflows - other
Total Deferred Inflows of Resources
Total Liabilities and Deferred
Inflows of Resources
Net Position
Net investment in capital assets
Restricted for:
Debt service (note 10)
Highways, streets and abandoned vehicles
Public access open space
Other
Unrestricted
Total net position
See accompany mg notes to the basic f inanciai statements.
June 30, 2020
(Concluded)
_ Primary Government
Governmental Business -type Component
Activities Activities Total Unit
S 20,780,557 S 59,765 S 20,840,322 S 6.033,555
11,388,603 11.388.603 1.740,978
79,615.161 1,809 79.616,970
6.176,903 7,560 6.184,463 545.682,
62,144,108 86,452 62.230.560 5.828,067
10,950,611 - 10.950.611 524,869
4,375.447 - 4,375,447 147.642
3,665..315 3.665.315 -
1,505.257 - 1.505.257 ~
- - 230.525
7,398.010 - 7,398_O I _
_.......___ _ _ _..._.._. ~5 -2 55,5,58 ..,-.......1..5,.9.�.1.,3I.8
7, 7 155. 86
417,662,152
496,509
418.158.661
60,605.626
34,542,088
34,542.088
1,285,023
23,433,979
-
23.433.979
512.358
7,105,794
7.105,794
-
11,849,743
11,849,743
-
~
-
1.583.953
~
-
-
15,865,108
669,239,185
669,239,185
32,029,248
407,266,249
407,266.249
16.079,747
18.608,466
w
1�8 608,466
_
1.589,707,656
496,509
1,590,204165„
_IZ9,53
1,79.."..628
w-652,095
1,798,359 723„
14�.017..38A.
19,305,022
-
19,305.022
3.848.277
2,067,099
~
_w 2.967 099
__62,8_49
21,372...121
1,819,079,749 652095w, 1„819,,731,,,,844- _.,,14( 93.507,
891,782.081 1.334,932 893.117,013 235,961.719
38,846,557 - 38.846.557 -
36,899.769 - 36,899,769 -
14,341,394 - 14,341,394 -
4,343,872 - 4,343,872
_835,802,574)1, 2__77,986 (834,524.588)
S 150,411,099 S 2,612,918 S 153,024,017 3351
COUNTY OF HAWAII
Statement of Activities
For the Fiscal Year Ended June 30, 2020
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
Transfers
Total general revenues and transfers
Change in net position
Net position, beginning of year
Net position, end of year
See accompanying notes to the basic financial statements.
.218.
Program Revenues
Operating
Capital
Charges for
Grants and
Grants and
Functions/Programs
Expengeg
Services
Contributions
Contributions
Primary government:
Governmental activities:
General government
S 86,747,456
S 4,320,738
S 6,638,918
S 4,398,247
Public safety
274,259,439
5,917,482
35,447,400
2,264,898
Highways and streets
67,161,387
16,585,633
6,789,686
35,949,579
Health, education and welfare
37,042,326
2,522,672
25,885,494
224,641
Culture and recreation
33,613,224
1,451,429
26,029
661,628
Sanitation
68,870,497
25,678,374
766,102
-
Interest on long-term debt
14,178,476
-
-
Total governmental activities
581,872,805
56,476,328
75,553,629
43,498,993
Business -type activities:
Health, education and welfare
645,452
482,150
2692273
-
Total primary government
S 582,518,257
S 56,958,478
S 75,822902
S 43 498,993
Component unit:
Water (note 14)
S 60,324,787
S 49,753,448
S
S 3,202,379
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
Transfers
Total general revenues and transfers
Change in net position
Net position, beginning of year
Net position, end of year
See accompanying notes to the basic financial statements.
.218.
Net (Expense) Revenue and Changes in Net Position
Primary Government
Governmental Business -type Component
Activities Activities Total Unit
$ (71,389,553) $
- $(71,389,553) $
(230,629,659)
(230,629,659) -
(7,836,489)
(7,836,489) -
(8,409,519)
- (8,409,519)
(31,474,138)
- (31,474,138) -
(42,426,021)
- (42,426,021)
__14,178.476)
- J14,178,476)
(406,343,855) - (406,343,855)
- 105,971 105,971 -
(406,343,855) 105,971 (406,237,884) -
- - 7,368,960
333,515,661
-
333,515,661
-
8,862,416
-
8,862,416
-
9,364,818
-
9,364,811
-
20,108,062
-
20,108,062
-
35,537,945
35,537,945
-
16,530,357
-
16,530,357
-
3,220,862
5,193
3,226,055
775,456
2,127,119
-
2,127,119
-
(616,776)
616,776
-
428.650.457
621,969
429,272,426
775,456
22,306,602
727,940
23,034,542
(6,593,504)
128,104,497
1,884,978
129,989,475
223,929.317
$ 150,411,099 $ 2,612,918 $153,024,017 $ 217,335,813
.29'.
COUNTY OF HAWAII
Governmental Funds
Balance Sheet
June 30, 2020
Assets
Cash and cash equivalents (note 3)
Investments (note 3)
Receivables, net (note 4)
Due from other governmental funds (note 5 )
Due from other nongovernmental funds (note 5 )
Receivables from other governments (note 4 )
Inventories
Other
Total assets
Liabilities, Deferred Inflows and Fund Balances
Liabilities:
Accounts payable
Accrued payroll
Due to other governmental funds (note 5)
Advance collections -intergovernmental
Other
"Cotal liabilities
Deferred Inflows of Resources:
Unavailable revenue (note 7)
Fund balances:
Nonspendable: Inventory
Restricted for:
Debt service (note 10)
Highways, streets and abandoned vehicles
Public access open space
Other
Committed to:
Budget stabilization
Disaster and emergencies
Lower Puna area
Rental assistance and subsidy
Sanitation
Self insurance
Highways, streets and abandoned vehicles
Parks and recreational projects
Zoning change impact mitigation (fair share)
Other
Assigned to:
Subsequent year's budget
Other
Unassigned
Total fund balances
Total liabilities, deferred inflows, and fund balances
See accompanying notes to the basic financial statements,
Other Total
Capital Governmental Governmental
General Projects Funds Funds
$102,634,030 $ 51,548,355 $ 79,545,502 $233,727,887
42,315,624
- 31,198,474
73,514,098
28,435,750
- 2,614,255
31,050,005
2,175,623
6,723,688 2,418,607
11,317,918
-
- 4,000
4,000
26,460,253
6,842,866 18,694,695
51,997,814
8,187,482
-
8,187,482
635,899
797,666157 4,16
1,590,981
S21Q, §44.01 S. Q== S.111.02,242 LU 11241$5
$ 6,245,867 $ 10,577,451 $ 3,957,239 $ 20,780,557
9,608,455
-
1,780,148
11,388,603
2,192,921
595,690
8,529,307
11,317,918
74,474,520
4,548,959
591,682
79,615,161
2,960,981
379,375
676,305
4 016,661
95,482,744
16,101,475
,)„5,514
_J27,LL8,9Q0
330,502,849 ..e. 2,1-29,9¢ --33,232-,2,451
8,187,482
-
-
8,187,482
-
38,846,557
38,846,557
-
38,770,075
36,899,769
75,669,844
14,341,394
-
-
14,341,394
956,286
20,771,160
3,387,586
25,115,032
7,212,340
-
7,212,340
6,534,823
-
-
6,534,823
-
-
4,274,235
4,274,235
-
-
1,267,826
1,267,826
-
20,286,433
20,286,433
260,890
-
-
260,890
-
1,054,149
11,066,016
12,120,165
-
2,091,494
61,068
2,152,562
-
3,960,058
-
3,960,058
510,163
1,636,871
279,342
2,426,376
30,548,282
-
30,548,282
15,444,635
-
-
15,444,635
862,773
118,472.7007
_17,609,934)
84,8.59=068
8)1,1 QQ
Ll lz .8 2
_25L.,Q1%QQ0
S219
WI L2 244
X411 a2Q 1$5
IM
COUNTY OF HAWAII
Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position
June 30, 2020
Total fund balances -governmental funds S 251,039,000
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
278,888,359
Infrastructure assets, net
2969257,213
Buildings and improvements, net
635,602,987
Equipment, net
58,412,276
Easements, net
119116,725
Construction work in progress
80,330,851
Total capital assets, net
(19,341,349)
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
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)
Some liabilities are not due and payable in the current period and
therefore are not reported in the finds. Those liabilities consist of:
Bonds and loans payable, net of receivable
from improvement district
(477,919,145)
Interest due on long-term debt
(6,176,903)
Capital leases
(10, 771,109)
Compensated absences
(45,492,699)
Claims and judgments
(27,809,426)
Landfill costs payable
(13,355,000)
Pollution remediation
(19,341,349)
Underground storage tank liability
(1,775,000)
Other Postemployment Benefit Obligation (OPEB)
(407,266,249)
Net pension obligation
(669,239,185)
Total long-term liabilities
Unamortized gain on refunding
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 find statements
Net position of governmental activities
See accompanying notes to the basic financial statements.
-31 -
1,360,608,411
206,923,055
31,165,186
(1,679,146,065)
(873,466)
(19,305,022 )
S 150,411,099
COUNTY OF HAWAII
Governmental Funds
Statement of Revenues, Expenditures, and Changes in Fund Balances
For the Fiscal Year Ended June 30, 2020
Expenditures
Current:
General government
46,746,254
mm 636.800
Other
Total
144.581.068
- 10.339.473
Capital
Governmental
Governmental
23.563.5*4
General
Pro'eects _
Funds _ m
m. Funds
Revenues
Culture and recreation
21,365.678
- 1.167.748
22.533.426
Property taxes
$ 327,886.496
$ -
$ -
$ 327.886.496
Public service company taxes
8,862,416
-
8.862.446
Fuel taxes
-
Employees' health insurance
20.408.062
20.408.062
Public utility franchise taxes
-
-
9.364.814
9.364.811
Licenses and permits
8,709,346
1.981.836
16.445.710
25.165.056
General excise tax surcharge
-
35.537.945
35.537.945
Intergovernmental
69,657.109
18.280.246
25.694.656
113.632.011
Charges for services
5,771.752
-
24.307.960
30.079.712
Investment earnings
3.414.245
12,052
54.843
3.481.140
Other
1,979.0811.161.762
_.�..
1,033 028
�. �w,....ms.._...._.
„ _ 4.173 871
Total revenues
426,,280.445
19.4544.060
_ 132 547.015
7 81 520
Expenditures
Current:
General government
46,746,254
mm 636.800
47.383.054
Public safety
144.581.068
- 10.339.473
154.920.541
Highways and streets
4.398,831
23.563.5*4
27.962.345
1.1calth. education and welfare
7,808.415
- 23.434.152
30.942.567
Culture and recreation
21,365.678
- 1.167.748
22.533.426
Sanitation
1,160.585
- 42.607.378
43.757.963
Pension and retirement
contributions (note 13)
53,800.205
8.012.517
61.812.722
Employees' health insurance
15,768.473
- 3.078.292
18.846.465
Other postemployment benefits
41.604.474
-
41.604.474
Other
6,759.950
1.981.836
8.741.786
Debt service:
Principal
1,526,641
27.695.246
29.224.857
Interest
87.597
- 18.501,939
18.589.536
Capital outlay
8.1e78,884
_..... _
71.357.563 -
. .........
79 �
Total expenditures
353,776.755
7le357 563 160 718.865
m_m......_
585.853 183
Excess (deficiency) of revenues
over (under) expenditures
72,503.690
(51.903,503) (28.471.8503
63
(Continued)
COUNTY OF HAWAII
Governmental Funds
Statement of Revenues, Expenditures, and Changes in Fund Balances
For the Fiscal Year Ended June 30, 2020
(Concluded)
Other
Total
Capital
Governmental
Governmental
General
Pro'ects
Funds
Funds
Other Financing Sources (Uses)
Sale of assets
$ 10,288
$ -
$ -
$ 10,288
Increase in capital leases (notes 8 and 10)
1,502,463
-
1,318,960
2,821,423
State Revolving Fund loans (note 10)
-
174,021
-
174,021
Rec lass of debt from current to
long-term
30,278,868
30,278,868
Transfers in (note 5)
-
16,119,391
74,079,574
90,198,965
Transfers out (note 5)
(66,235,767)
-
(23,963,198)
(90,198,965)
Total other financing sources (uses)
)
(64,723,016)
46,572,280
_51,435,336_4
33,284,600
Net change in fund balances
7,780,674
(5,331,223)
23,263,486
25,712,937
Fund balances at beginning of year
76,188,742
55,142,323
93,105,346
224,436,411
Increase in reserve for inventories
889,652-
_.� ...._- -�.. ,.w
........_ ._....__............__..
889,652
__
Fund balances at end of year
$ 84,859,068
$ 49,811,100
$116,368,832
$ 251,039,000
See accompanying notes to the basic financial
statements.
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, 2020
Net change in fund balances - total governmental funds
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:
$ 25.712.937
Capital outlay 59.865.516
Dedicated and contributed property 21,564.947
Depreciation expense and loss on disposals (48.960.691)
Excess of capital outlay over depreciation expense -. 32.469.772
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:
Reclass of notes payable to long-term debt (note 10) (30.000.000)
State Revolving Fund loans (174.021)
Capital leases (2.821.423)
. ............ .
Total debt proceeds (32.995.444)
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 23.092.308
State Revolving Fund loan repayments/forgiveness 2.499.903
Capital lease payments 3,629.646
Total long-term debt repayment29.22@.857
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 "deferred" in the governmental funds. Unearned revenues increased by
this amount this year. 1,994.423
(Continued)
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, 2020
(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
$ 889.652
Increase in compensated absences
(3.079,986)
Decrease in claims and judgments
3.675,057
Decrease in landfill closure/postclosure care costs
17.660.000
Increase in pollution remediation costs
(6,900.616)
Increase in underground storage tank liability
(1.775.000)
Amortization of premium from bond issuance
4,800,919
Amortization of deferred loss on refunding
(705,654)
Amortization of gain on refunding
102,761
Net increase in accrued interest
(65.834)
Net decrease to expenses related to Other Postemployment
Benefit Obligation
8.196.912
Net increase to expenses related to pension and salaries and wages
(56.895,154)
Net additional expenses
(34.096.943)
Change in net position of governmental activities
$ 22.306.602
See accompanying notes to the basic financial statements.
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, 2020
(Continued)
=36-
Actual
Variance
Original
Final
(Budgetai),
Positive
Budget
___Budget_
Basis)
(Negative)
Revenues:
Taxes and assessments:
Property taxes
$ 330,700,000
$ 330,700,000
$327,886,496
$ (2,813,504)
Public service company taxes
p Y
8,........0,00,
_ _.m._ _._. ,000
8,862,416
22,416
Total taxes and assessments
339,540,000
339,540,000
336,748,912
(2,791,088)
Licenses and permits:
Nonbusiness licenses and permits
4,321,305
4,321,305
3,864,032
(457,273)
Business licenses
2,095,329
2,095,329
1,788,744
(306,585)
Street use
3,064,450
3,064,450
3,056,570
(7,880)
rota licenses andermits
p
9,481,084
9,481,084
....................................�
8,709,346
_
7
�am5..7.1.,738)
Intergovcrnmental:
Federal:
Programs for the aged
2,629,032
2,649,032
2,622,502
(26,530)
Community development block grants
2,773,136
2,773,836
Law enforcement
3,420,535
5,451,959
3,738,790
(1,713,169)
Other
5,227,662
32,380,019
28,361,651
X3,948,368)
Total federal
11,277,229
43,184,146
37,496,079
(5,688,067)
State:
State General Fund - Act 185,
SLH 1990
19,188,000
19,188,000
15,965,000
(3,193,000)
Emergency medical services
16,830,274
20,800,957
20,800,957
-
Other
,7
.__....._ _
,.......
11 F353.2423,242
_. (2_948,073)
Total State
44,741,639
48,419,199
56,841,073)
Total intergovernmental revenue
g
56,01,868
97,744,41 8
8,915,27
5 8
mm _m
11,
829,140)
Charges for services:
General government
5,090,354
5,090,354
4,11 Q410
(978,944)
Culture and recreation
1,826,600
1,826,600
857,530
(969,070)
Highways and streets
1,212,000
1,212,000
912,874
(299,826)
Public safety
_ 116,768
111,768
84,596
(27,172)
Total charges for services
g
,24
80 ,.,
.......... ,�
_.._......_._�.__ 7
� ,
5,966.410
2,274,382)..... _...M.M._.._...._,_...
(
an or enures
2,380,300
_....._.m�.
2,3100,,300
., 3 .-
736,782
— ............7.._._
.1es
xI8573,58) m.
Rents
189,500
189,500
201,281
11,781
(Continued)
=36-
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, 2020
(Continued)
am
Actual
Variance
Original
Final
(Budgetary
Positive
Budget
Bud&et
�Bas,i„s,�
egaLive).
Revenues (continued):
Interest and penalties
S 2,000,000
S 2,000,000
S 3,098.836
S.(,Q98..,836
Miscellaneous
5,036,424
5,442,924
� 4762 186
-_w,w, (68,0„„738)
Total revenues
_. 422,816,898
_ 464,948,948
446,839 0388-8R-917)
�_
Expenditures:
Current:
General government:
Finance
21,757,329
13,440,887
10,947,086
2.493,801
General government building
5,740,454
6,792.505
6,194,027
598.478
Legislative
4,679,766
3,835,666
3,368,266
467,400
Automotive equipment
4,844,900
3,943,850
3,775,499
168,351
Law
3,168,392
3,189,892
2.583,480
536,412
Research and development
2,768,686
2,949,786
2,566,838
382,948
Planning and zoning
4,204,467
4,320,287
4,024,717
295,570
Mayor's office
1.806,707
1,906,707
1,740,796
165,911
Engineering
1.779,186
1,602,886
1,141,715
460.471
Information technology
3,413.388
3,425.388
2,740,480
684,908
Human resources
2,229,859
2,232,234
1,697,250
534,984
Public works administration
1,596,193
1.616,443
1,444,937
171,506
Elections
980,672
1,184,860
927,959
246.901
Legislative auditor
875,846
875,846
--629562
24628
Total general government
59,845,145,
51,236,537
43 782,612
7.453.925
Public safety:
Police department
70.068.506
73,289,204
68,005,801
5,284,803
Fire department
43,791,397
53,627,243
50,193,520
3,433,723
Prosecuting attorney
10,830,841
12,368,437
9,894,982
2,473,455
Protective inspection
4,197,497
4,234,747
3.727,510
507,237
Liquor control
2,044.329
2,249,709
1,832,366
417,343
Flood control
330,000
330,000
324,840
5,860
Civil defense agency
2,401,659
2,656,910
2,099,210
557,700
Disaster Response
16,896,732
15,458,424
1,438.308
Animal control
2,185,706
21185,706
2081 627,,
IOA,Q9
Total public safety
_ 135,829,935
167,838,684.
153.617 58014.221.�,10„�„
Highways and streets:
Mass transit
3,358,000
17,092,500
13,4211.422
3.671_ 0738
(Continued)
am
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, 2020
Sanitation:
Environmental management
1,182,880
1,197,8801
Actual
Variance
Pension and retirement contributions
Original
Final
(Budgetary
Positive
Employees' health insurance
BudgetBudget„�
18,495,5261
Basis ....._
(lve ative
Expenditures (continued):
41,676,474
41,6
w„76,474 41.604..474
____v000
Current (continued):
_ 11,262,824
9,737,238
4.335.2609
Health, education and welfare:
366,233,189
_403,458,090
357 754.169
Elderly activities
S 5,008,686
S 5,030,586
S 3,994,505
S 1,036,081
Office of aging
4,101,071
4,126,714
3,591,532
535,182
Education
58,500
58,500
32,511
25,989
Social programs
1,500,000
1,500,000
1,499,945
55
Cemeteries
420,087
440,687
394,995
45,692
Physical
sica examination
825
.. w133,�
133,825
._��....__.
133,825
Total health, education and welfare
11,222,169
_ 11,290,312
_9647.313
-JA-42.299
Culture and recreation:
Community music
273,536
301,005
235,058
65,947
Organized recreation:
Maintenance
10,773,178
11,192,978
10,573,079
539,899
Recreation
3,284,584
3,399,634
3,028,018
371,616
Aquatics
2,563,447
2,427,297
2,052,276
375,021
Hoolulu park complex
1,008,526
1,049,526
1,005,824
44,402
Administration
2,337,703
2,426,441
2,076,461
349,980
Children's zoo
810,740
827,740
809,314
18,426
Summer/Intersession
532,093
538,093
331,521
206,572
Culture and arts
301,143
308,643
227,663
80,980
Fadministration
Elderly activities
666 2,154
...._._
� __.. 668,844m,..�
559,7 38.
........_.
) .09. (..Q.6
Total culture and recreation
22,547,104
23,060,201
20898252
_)..61 949
Sanitation:
Environmental management
1,182,880
1,197,8801
153,224�b56
Pension and retirement contributions
60,813,132
61,832,734
53,562,227
_ 8-2 7
Employees' health insurance
18,495,526
18,495,5261
5,731 805
, 2,763 721
Other postemployment benefits
41,676,474
41,6
w„76,474 41.604..474
____v000
Other
_ 11,262,824
9,737,238
4.335.2609
Total current
366,233,189
_403,458,090
357 754.169
(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, 2020
Expenditures (continued):
Capital Outlay:
Community Development Block
grants (HUD)
HOME Program
Total capital outlay
Total expenditures
Fxcess of revenues over expenditures
Other financing sources (uses):
Transfers out:
Housing Fund
Solid Waste Fund
Sewer Fund
Golf Course Fund
Capital Project I and
Disaster/Emergency Fund
Public Access, Open Space, and Natural
Resources Preservation Fund
Public Access, Open Space, and Natural
Resources Preservation Maintenance Fund
Budget Stabilization Fund
Debt Service Fund
Total transfers out
Total other financing uses
Excess (deficiency) of revenues and other
sources over (under) expenditures and other uses
Fund balance at beginning of year
Fund balance at end of year
See accompanying notes to the basic financial statements,
(Concluded)
Actual Variance
Original Final (Budgetary Positive
Budget m _ _ Budges ___Basis) _ _jNegative
$ 150,000
$ 4.56609
$ 4,401,567
$ 164,602
50,000
130,000
50,300
79,700
200,000
4,696,169
4.45d.867
244,302
366.43
08,154,259
4..... ,....
362,206,036
...... _ �....._
.
45,948223
. ...
56,383,
5667 7946 9
,
3,93322,99955
___..._
27.138.306
(2,283,619)
(2,289,619)
(1,517,810)
771,809
(19,862,687)
(19,862,687)
(19,862,687)
-
(2,586,419)
(2,586,419)
(2.586,419)
-
(650.205)
(1,000,205)
(1.000,205)
-
-
(54,980)
(54,980)
-
(250,000)
(250,000)
(250.000)
-
(6,614,000)
(6,614,000)
(6.557,730)
56,270
(826,750)
(826,750)
(262,526)
564,224
(250,000)
(250,000)
(250.000)
-
(44.879,547)
(44,879.547)
X44,879,547)
-
_(78,,203.227)
(78,614,207)
(77,221,904)
1,392,303
578,203,227)
578 614,207)
577,221 N904)
1,392,303
(21,819,518)
(21,819,5!8)
6,711,091
28,530,609
76,188,742
76,188,742
76.d88,742
-
$ 54,369,224
$ 54,369,224
$ 82.899,833
$28,530,609
-39-
COUNTY OF HAWAII
Proprietary Funds
Statement of Net Position
June 30. 2020
Assets
Current assets:
Cash and cash equivalents (note 3)
Restricted cash and cash equivalents (note 3)
Imprest fund (note 3)
Receivables, net (note 4)
Prepaid expenses
Total current assets
Noncurrent assets:
Restricted cash and cash equivalents (note 3)
Capital assets (note 6):
Land and site improvements
Buildings and equipment
Less accumulated depreciation
Total capital assets
Total noncurrent assets
Total assets
Liabilities
Current liabilities:
Accounts payable
Due to other governmental funds (note 5)
Security deposits payable from restricted assets
Deterred revenue
Interest payable
Notes payable, current portion (note 10)
Total current liabilities
Noncurrent liabilities:
Notes payable (note 10)
Total liabilities
Net Position
Net investment in capital assets
Unrestricted
Total net position
Sec accompanying notes to the basic financial statements.
EM
Business -type Activities -
Enterprise Funds
Kulaimano
Ouli Ekahi
1,242,864
Elderly
Affordable
(1,250,891$
Housing
Housing
502,973
P__ _ rojectProject
1.917.893
Total
S 680,115
S 542,276 S
1,222,391
13,758
29,230
42,988
50
100
150
2,142
8,629
10,771
--2,1.33
__.� _
2 133
698,898
580,2351,278.433
7,560
72,687 72,687
511,000
515,727
1,026,727
1,242,864
1,024,144
2,267,008
(1,250,891$
124.958){11375842)
502,973
1,414.920
1.917.893
502,973
1,487.607
1,990,580
_ 1.201,171
2,067,842
_m3�269�0a.3
3,977
14,180
18,157
4,000
-
4,000
13,758
27,850
41,608
341
1,468
1,809
7,560
-
7,560
69,952
16 500
86 452,
99,588
59,998
159,586
393,736 _
102 773
_ 496 509
493,324
162,771
656 095
39,285
1.295,647
1,334.932
668,562
609,4241
277 9K
S 707,847 S
1,905,071
S 2,612.918
COUNTY OF HAWAII
Proprietary Funds
Statement of Revenues. Expenses, and Changes in Fund Net Position
For the Fiscal Year Ended June 30, 2020
Operating revenues:
Rental receipts from tenants
Rental subsidy from federal government& HUD
Laundry receipts
Other
Total operating revenues
Operating expenses:
Utilities
General and administration
Maintenance and repairs
Depreciation (note 6)
Total operating expenses
Operating income
Nonoperating revenues (expenses):
Investment income
Interest expense
(Loss) on disposal of assets
Total nonoperating revenues (expenses)
Capital contributions
Transfers
Change in net position
Net position, beginning of year
Net position, end of year
See accompanying notes to the basic financial statements.
Business -type Activities -
Enterprise Funds
Kulaimano
Ouli Ekahi
Elderly
Affordable
Housing
Housing
Project
Projekt _
Total
$ 138,212
$ 337.100 $
475.312
269.273
-
269.273
3,123
-
3,123
2&22
3.493
3.715
410,830
340,593 __751.423
40,217
51.209
91.426
176,018
91,254
267.272
78.367
116.384
194.751
42,068
20,387
62,455
336,670
279.234
615,904
74.160
61,359
135,519
5,174
19
5.193
(24.614)
_
(24.614)
(4,934)
-
(4.934)
mm 24,374
19
24.355)
80,740
536.036
616.776
130.526
597.414
727.940
.577,321
11.307.657
1,884,978
$ 707,847
$ 1,905.071 $
2.612.918
COUNTY OF HAWAII
Proprietary Funds
Statement of Cash Flows
For the Fiscal Year Ended June 30, 2020
orm
Business -type Activities -
Enterprise Funds
Kulaimano
Ouli Ekahi
Elderly
Affordable
Housing
Housing
Project _
_ Pro'ectptal,__
Cash Flows from Operating Activities
Receipts from tenants
$
141,602
$ 338,130
$ 479,732
Receipts from federal government - HUD
269,273
-
269,273
Payments to suppliers f'or goods and services
w__...._
(307,746)
S260
8 0�50),304l
6
Net cash provided by operating activities
103,129
77,826
180 955
Cash Flows from Capital and Related Financing Activities
Principal paid on notes payable
(66,186)
(48,630)
(114,816)
Interest paid on notes payable
(25,869)
(25,869)
Purchase of capital assets
715)
(2,237)
(2 952)
Net cash used in capital and related financing activities
P g
(92,77..
0)
(50.867
_�...)
Cash Flows from Investing Activities
Proceeds from maturities of investments
1,600,000
-
1,600,000
Purchase of investments
(1,600,000)
-
(1,600,000)
Interest on investments
5,376
19
Net cash provided by investing activities
5,376
19
5 395
Net increase (decrease) in cash and cash equivalents
15,735
26,978
42,713
Cash and cash equivalents at beginning of year (including
restricted cash and cash equivalents)
678,188
__www 617,3851,295
503
Cash and cash equivalents at end of year (including
restricted cash and cash equivalents)
$
693,923
$ 6
LL338,216
Reconciliation of Operating Income to Net Cash
Provided by Operating Activities
Operating income
$
74,160
$ 61,359
$ 135,589
Adjustments to reconcile operating income to net cash
provided by operating activities:
Depreciation expense
42,068
20,387
62,455
Change in assets and liabilities:
Receivables, net
(1,984)
(3,035)
(5,019)
Prepaid expenses
(74)
-
(74)
Accounts and other payables
(10,999)
(1,457)
(12,456)
Deferred revenue
------ AID
_._5_72.
530
Net cash provided by operating activities
$
103,129
$ 77,826
$ 180,955
Supplemental Disclosure of Noncash Capital and Related
Financing Activities
Capital contributions
$
80,740
$ 536,036
$ 616,776
Sec accompanying notes to the basic financial statements..
orm
COUNTY OF HAWAII
Fiduciary Funds
Statement of Fiduciary Net Position
June 30, 2020
Liabilities
Vouchers payable 2,258
Due to other agency funds 15.396
Accrued liabilities - 3.047.776
Advances payable 232.203
Assets held for the benefit of improvement districts- 1.602.835
Total liabilities - _ $ 4,900.468
Net Position
Held in trust for other parties 4.77_7.542
Total net position $ 4.777.542
See accompanying notes to the basic financial statements.
tM
Private -
Purpose
Agency
TrustsFunds
Assets
Cash and cash equivalents (note 3)
S 2.581.795
S 4.530.870
Investments (note 3)
2,192.849
285.468
Receivables:
Due from other agency funds
-
15.396
Other receivables
2,898
68734
Total receivables
2.898
84.430
Total assets
4.777,542
$ 4.900.468
Liabilities
Vouchers payable 2,258
Due to other agency funds 15.396
Accrued liabilities - 3.047.776
Advances payable 232.203
Assets held for the benefit of improvement districts- 1.602.835
Total liabilities - _ $ 4,900.468
Net Position
Held in trust for other parties 4.77_7.542
Total net position $ 4.777.542
See accompanying notes to the basic financial statements.
tM
COUNTY OF HAWAII
Fiduciary Funds
Statement of Changes in Fiduciary Net Position
For the Fiscal Year Ended June 30, 2020
MM
Private -
Purpose
Trusts
Additions
Contributions:
Puna Geothermal Venture
$ 50,000
Investment earnings:
Net increase in fair value of investments
77,308
Dividends and interest
- 69,292
Total additions
196,600
��..�,v�,....0
Deductions
Grant payments
45,724
Investment Fees
14,27_3
Total deductions
59,997
Change in net position
136,603
Net position, beginning of year
4,640.939
Net position, end of year
$ 4,777,542
See accompanying notes to the basic financial statements.
MM
CK�li3,� r•K�7 �ap:� O1
Notes to the Basic Financial Statements
June 30, 2020
The accounting policies of the County of Hawaii (the County) conform to U.S. generally accepted
accounting principles (GAAP) as applicable to local governmental units. The following notes to
the basic f inancial statements 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 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.
Primary Government The County operates under the Mayor -Council form of government
under a charter that became effective on 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 (the 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 or public corporations with
overlapping authority.
GASB Statement No. 14, as amended, defines component units as legally separate
organizations for which the elected off icials of the primary government are f inancially
accountable or for which the primary government may determine, through exercise of
management's professional judgment, that the inclusion of an 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 an
organization's governing board or if the organization is f iscally 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 an
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 anyone of three conditions exist: (])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
-45-
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2020
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 f'or as an enterprise find. 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 f'or component unit
disclosures for the Department. Complete financial statements of the Department can be
obtained from the Department of Water Supply, 345 Kektjanao`a Street, Suite 20, Hilo,
Hawaii 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
program 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
nonnally covered by general revenues.
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2020
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. Nonma jor 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 fiords are not incorporated into the government -wide
statements.
Government -wide and fund fr,nancia! statementsa- The government -wide f inancial
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 fi-om 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.
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2020
Separate financial statements are provided for governmental funds, proprietary funds, and
fiduciary funds, even though the latter are excluded from the government -wide financial
statements. Major individual governmental funds and major individual enterprise funds are
reported as separate columns in the fund financial statements.
Activities in fundsa- 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 expenditures/expenses. The various funds are reported by
generic classification within the financial statements.
GASB Statement No. 34, Basic Financial Statements „,. and Management& Discussion and
Analysise- for State and Local Governments, sets forth minimum criteria (percentage of the
assets, deferred outflows of resources, liabilities, deferred inflows of resources, revenues or
expenditures/expenses of either fund category or the governmental and enterprise combined)
for the determination of major funds. The nonma jor 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. It is used
to account for all activities of the general government, except those required to be
accounted for in other funds.
Capital Projects Funda, 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:
Kula `imano Elderly Housing Project — Used to account for the operation of a rental
housing project for low-income senior citizens located north of Hilo.
Osdi Ekaki Affordable Housing Projecta- Used to account for the operation of a 33 -unit
single-family affordable rental housing project located in Waimea.
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COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2020
The County reports the following fiduciary funds:
Private -Purpose Trust Funds — Used to account for funds received from geothermal
developers to mitigate the effects of geothennal 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 fiends 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 1-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.
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COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2020
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 on 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 meet 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 remediationa
The County applies all applicable GASB pronouncements, including the adoption of GASB
Statement No. 62, Codification of Accounting and Financial Reporting Guidance Contained
in Pre -November 30, 1989 FASB (Financial Accounting Standards Board) and AICPA
(American Institute of Certijied Public Accountants) 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.
4
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2020
Cash and Investments
Cash and cash equivalents include cash on hand, amounts in demand deposits and savings
accounts, and short-term 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 Mac) 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 1 each year on assessed valuation as of
January 1. The taxes become 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 1% per month and penalties of up to 10% of the amount due. Assessments are
based on 100% 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 Zone Exemptiona- 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,
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COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2020
automatically renewable indef initely. 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
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-term 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 Hawaii
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 Hawaii 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 1 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 milback calculation of current plus
two yeas taxes plus penalties and interest.
Commercial Agricultural Use Dedication Section 19-60 of the Hawai` i 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
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COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2020
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 the
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 Januaiy 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,
2020 is as follows:
Tax Abatement Program
Enterprise Zone
Historic Residential Dedication
Low and Moderate Income Housing
Agricultural Use Programs
Solar Water Heater Credit
Inventories
Amount of Taxes Abated - as defined by GASB 77
$3,638
$241000
$828,907
$28,819,799
$14,035
Inventories consist of materials and supplies and are reported as expenditures at the time of
purchase (purchase method). 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, 2020 of $956,286 are reflected as a restriction of general fund balance.
- 53 =
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2020
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 fiend are depreciated using the
straight-line method over the following estimated useful lives of the assets:
Assets
Infrastructure
Buildings and improvements
Ground and site improvements
Equipment
Easements
Years
20 to 100 years
50 to 100 years
20 to 50 years
5 to 40 years
Dependent on terms 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 fixture
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
postemployment 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
postemployment benefits (OPEB).
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COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2020
Long-term Obligations
The County reports long-term debt of governmental 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 offpay 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 Hawaii. Accumulated sick leave at
June 30, 2020 totaled $78,613,000 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
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COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2020
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 Postemployment Benefits (OPEB)
For the purposes of measuring the net OPEB liability, deferred outflows or resources and
deferred inflows of resources related to OPEB, and OPEB expense, information about the
f iduciary 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 f inancial 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
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COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2020
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 determines that such use is
necessary to prevent a reduction in the level of public services.
Assigned Fund Balancee- 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 f and 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.
7-
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2020
Net Position
When 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 May 2020, GASB issued Statement No. 95, Postponement of the Effective Dates of Certain
Authoritative Guidance. The primary objective of this Statement is to provide temporary
relief to governments and other stakeholders in connection with the COVID-19 pandemic.
This Statement postponed the effective dates of the following Statements that may have an
impact on the County's financial statements:
In January 2017, GASB issued Statement No. 84, Fiduciary 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, 2019, as postponed by
GASB 95. The County has not yet determined the effect this Statement will have on its
financial statements.
In August 2018, GASB 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, 2019, as postponed by
GASB 95. The County has not yet determined the effect this Statement will have on its
financial statements.
In January 2020, GASB issued Statement No. 92, Omnibus 2020. The objective of this
Statement are to enhance comparability in accounting and f inancial reporting and to
improve the consistency of authoritative literature. The requirements of this Statement
relating to leases, reinsurance recoveries, and derivative instruments are effective upon
issuance. The other requirements are either effective for f iscal years or reporting periods
beginning after June 15, 2021. The County has not yet determined the effect these
requirements 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 f inancial statement users by improving accounting and
financial reporting for leases by governments. The requirements of this Statement are
effective for reporting periods beginning after June 15, 2021. The County has not yet
determined the effect this Statement will have on its financial statements.
mom
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2020
In June 2018, GASB issued Statement No. 89, Accounting for Interest Cost Incurred Before
the End of a Construction 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, 2020, as postponed by GASB 95. 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 effiect this Statement will have on
its financial statements.
In March 2020, GASB issued Statement No. 93, Replacement of Interbank Offered Rates.
The objective of this Statement are to address accounting and financial reporting implications
resulting from the replacement on an interbank offered rate (IBOR). The requirements of this
Statement are effective beginning with reporting periods that begin after December 31, 2021.
The County has not yet determined the effect this Statement will have on its financial
statements.
In March 2020, GASB issued Statement No. 94, Public -Private and Public -Public
Partnerships and Availability Payment Arrangements. The objective of this Statement is to
improve financial reporting by addressing issues related to public-private and public -public
partnership arrangements. The requirements of this Statement are effective for fiscal years
beginning after June 15, 2022. The County has not yet determined the effect this Statement
will have on its financial statements.
In May 2020, GASB issued Statement No. 96, Subscription -Based Information Technology
Arrangements. The objective of this Statement is to provide uniform guidance for accounting
and financial reporting for transactions that meet the definition of a subscription -based
information technology arrangement. The requirements of this Statement are effective for
fiscal years beginning after June 15, 2022. The County has not yet determined the effect this
Statement will have on its financial statements.
In June 2020, GASB issued Statement No. 97, Certain Component Unit Criteria, and
Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred
Compensation Planse- An Amendment of GASB Statements No. 14 and No. 84, and a
Supersession of GASB Statement No. 32. The primary objective of this Statement is to create
more consistent financial reporting of defined contribution pension plans, defined contribution
OPEB plans and other employee benefit plans, while mitigating associated costs. The
requirements of this Statement are effective for reporting periods beginning after June 15,
2021. The County has not yet determined the effiect this Statement will have on its financial
statements.
_59-
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2020
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 S.
• The County Council conducts public hearings on the proposed operating and capital
budgets after March 1 but prior to the first reading on the budget bills, which must be
after May S.
• 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 2019-20 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 $42A million in the general fund and $3.8
million in the special revenue funds. Legally adopted budgets include the General Fund,
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 -Tenn 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.
N -IM
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2020
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 ofrevenues, 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 conformity 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, 2020:
Ending fund balance GAAP basis $84,859,068
Encumbrance adjustments:
Beginning encumbrances and unexpended allotments 1,156,030
Ending encumbrances and unexpended allotments (1,589,411)
Other adjustments (1,525,854)
Ending fund balance .- Non -GAAP budgetary basis
3. 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
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.
-61-
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2020
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, 2020 was $297,816,686 for the primary government and
$7,362,914 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 $319,384,870 at June 30, 2020. Of that amount, $317,951,440
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 $1,433,430
represent deposits held by a management agent and were uncol lateral i zed. 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.
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2020
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. An 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 1 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 $11,149,082 and certificates of deposits of
$63,048,130: Valued using quoted prices at the end of the fiscal year for identical or
similar assets in markets that are not active (Level 2).
Equity securities of $1,795,203: Valued using quoted prices in active markets for
identical assets or liabilities that a government can access at the measurement date (Level
I ).
-63-
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2020
The County's investments and maturities at June 30, 2020 are as follows:
Investments — Primary Government:
Certificates of deposit
Government sponsored securities
Investments -. Private -Purpose Trusts:
Government sponsored securities
Equity securities
Investments — Agency Funds:
Certificates of deposit
Government sponsored securities
Maturitv (in years
Fair Value Less than 1 1 — 5
$ 62,797,882 $ 56,419,890 $ 6,377,992
10.,7d6 216 3,010,860 7,705,356
L_13.5 4. 8 StU13.3 4B
$ 397,646 $ -- $ 397,646
11795,203, , 11795 203 --
$ 250,248 $ 250,248 $ --
35,220 µm 35,220
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 L.S. Treasuries.
Custodial Risk: 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 name.
Concentration of Credit 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 from a number of banks
and broker-dealers both located locally and on the mainland. As of June 30, 2020,
investments were distributed as follows: FTN Financial, 0.9%; Multi Bank Securities, 7.1%;
First Hawaiian Bank, 30.4%; Raymond James, 2.0%; Stifel Nicolaus & Company, 3.1%; Bank
of Hawaii, 18.8%; Territorial Savings 12.2%; US Bank, 2.5% and Central Pacific Bank,
23.0%.
ME
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2020
Restricted Cash and Cash Equivalents and Investments
Cash and cash equivalents and investments classified as restricted assets for the primary
government at June 30, 2020 amounted to $146,398,420.
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 $48,023,575 at June 30, 2020.
Cash and investments in the Bond Redemption Fund and the Interest Fund are restricted to
debt service related payments and amounted to $39,094,547.
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 $25,773,612.
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 $4,298,639.
The restricted cash 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 $956,286 and $28,136,086, 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 $13,758 and $29,230, respectively, at June 30, 2020.
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 $72,687 at June
30, 2020.
-65-
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2020
4. RECEIVABLES
Receivables as of June 30, 2020, 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:
Real property taxes
Accounts receivable:
Sewer
Solid waste
Intergovernmental
Gross receivables
Less: allowance for
uncollectibles
Net total receivables
Other
Governmental
Funds
2,465,560
929,591
A&694,695
22,089,846
Total
$36,233,872
2,465,560
929,591
51,997, 814
91,626,837
(780,896 18,579,018)
During fiscal year 2005, the County issued $3,887,493 in general obligation bonds on behalf
of Improvement District No. 18, an agency fund. On 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, 2020, the outstanding balance for both Improvement Districts of $1,887,115 is reflected in
the government -wide statement of net position as a receivable (see Note 10).
Business -type activities:
Capital
General
Projects
FRO
Fund
$36,233,872
$ --
26,460 253
.6,842,866
62,694,425
6,842,866
..L,M)
_m_ .....
S-5141.69-fiad,
( 6.852)
Other
Governmental
Funds
2,465,560
929,591
A&694,695
22,089,846
Total
$36,233,872
2,465,560
929,591
51,997, 814
91,626,837
(780,896 18,579,018)
During fiscal year 2005, the County issued $3,887,493 in general obligation bonds on behalf
of Improvement District No. 18, an agency fund. On 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, 2020, the outstanding balance for both Improvement Districts of $1,887,115 is reflected in
the government -wide statement of net position as a receivable (see Note 10).
Business -type activities:
EM
Enterprise
Funds
Accounts receivable:
Rent
$17,277
Other
346
Gross receivables
17,623
Less: allowance for
uncollectibles
( 6.852)
Net total receivables
19.M.
EM
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2020
5. INTERFUND RECEIVABLES AND PAYABLES
Interfund receivables and payables consist of the following at June 30, 2020:
Receivable Fund
General fund
Capital projects fund
Other governmental funds
Total
Other governmental funds
Payable Fund AmP,4111
Capital projects fund $ 590,169
Other governmental funds --195.454
2,195,623
Other governmental funds 6,723,688
General fund 2,192,921
Capital projects fund 5,52&
Other governmental funds „220 165
2,413,607,
Enterprise funds _00
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 f iscal year ended June 30, 2020 consisted of the following:
General
Fund
Transfers in:
Capital Projects Fund $ 54,980
Other governmental funds66,1(30,787
;x.70
Transfers out:
Capital Other
Projects Governmental
Fund Funds
$16,064,411
--2.&9&787
11-21%111"
Total
$16,149,391
74,079,574
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.
EM
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2020
6. CAPITAL ASSETS
Capital asset activity for the year ended June 30, 2020 for the County was as follows:
Balance Balance
July 1, Retirements/ June 30,
2019 Additions Transfers 2020
Governmental activities:
Capital assets not being depreciated:
Land and
improvements $ 263,470,318 $ 15,41e,041 $ -- $ 278,888,359
Easements 6,232,881 4,866,505 -- 11,099,386
Construction work in
progress
58,455,811
42 822,755
(20,947,715)
80,330,850
Total capital assets not
being depreciated
328,159.010
63,107,301
_(20,947,705)
_370,308.596
Capital assets being depreciated:
Buildings and
improvements
768,798,968
21,165,414
(86,003)
789,878,379
Equipment
164,575,138
8,533,727
(3,782,993)
169,325,872
Easements
456,497
142
--
456,639
Infrastructure
653,3451967
9,571,594
446,497
662 471 064
Total capital assets
being depreciated
1,587,176,570
39,270,877
(4,315,493)
1,622.131,954
Less accumulated depreciation for:
Buildings and
improvements
(141,052,396)
(13,231,151)
8,055
(164,275,392)
Equipment
(105,238,035)
(9,247,966)
3,572,405
(100,913,596)
Easements
(439,300)
-
--
(439,300)
Infrastructure
_(340.46-7,210)
_,(25,,833,054)
86.403
_(366.M,850j
Total accumulated
depreciation
_(587,196.940)
_(48 312.1U 11
3,666.973
_(631,842,139
Total capital assets
being depreciated,
net
999,979,629
„(9.041.294)
„ (648,520)
,990,289,805
Governmental
activities capital
assets, net
M
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2020
Balance
Retirements/ June 30,
Additions Transfers 2020
I 1 $ 753,877
536,037 -- 2,129,224
-- -- 272,850
83,691 ,(65,816) 137,784
619,728 (65,816) 2,539,858
(42,000)
Balance
(4,347)
July I,
_.016,108)
2019
Business -type activities:
,60,882 _ (1,375,842)
Capital assets not being depreciated:
Land
$ 753,877
Capital assets being depreciated:
Buildings and
improvements
1,593,187
Ground and site
improvements
272,850
Equipment
119,909
Total capital assets
being depreciated
1,985,946
Less accumulated depreciation for:
Buildings and
improvements
(1,054,777)
Ground and site
improvements
(223,651)
Equipment
_ (95,841,)
Total accumulated
Depreciation
_(1,374,269)
Total capital assets
being depreciated,
net
611,677
Business -type
activities capital
assets, net
ILWOM
Balance
Retirements/ June 30,
Additions Transfers 2020
I 1 $ 753,877
536,037 -- 2,129,224
-- -- 272,850
83,691 ,(65,816) 137,784
619,728 (65,816) 2,539,858
(42,000)
-- (1,096,777)
(4,347)
-- (227,998)
_.016,108)
60,882—�51.067)
(62,455)
,60,882 _ (1,375,842)
557,273
—(4,934) 4 934 1,164.01 6
']I
1-(4,934,) tI.9i7M3
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2020
Depreciation expense was charged to functions/programs of the primary government as
follows:
Governmental activities:
General government
$ 2,659,290
Public safety
4,563,086
Highways and streets
27,668,832
Sanitation
7,587,474
Health, education and welfare
2,255,247
Culture and recreation
3,578,242
Total depreciation expense,- governmental activities
Malin
Business -type activities:
-- --
Kula`imano Elderly Housing Project
$42,068
Ouli Ekahi Affordable Housing Project„20„137
115,182
Total depreciation expensea- business -type activities
7. DEFERRED INFLOW OF RESOURCES
Deferred inflow of resources consists of the following at June 30, 2020:
Governmental activities:
Real property taxes
Liquor control revenue
Sewer revenue
Housing revenue
Solid waste revenue
Total presented in
fund financial
statements
Add deferred inflows
of resources related
to pensions & OPEB
Less adjustments for
accrual of revenues
Total government -
wide financial
statements
Capital
Other
Total
General Projects
Governmental
Governmental
Fund Fund
Funds
Funds
$ 30,350,593 $ --
$ --
$ 30,350,593
152,256 --
--
152,256
-- --
1,723,643
1,723,643
-- --
115,182
115,182
890,611
890,611,
30,502,849 --
2,729,436
33,232,285
19,305,022 --
--
19,305,022
_J28 435,7501 - , �- - _i2229AM
S-ZI.3Z2«l21 . ,,,, x,. ...m._. .... J
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2020
8. LEASES
The County leases machinery and equipment under noncancellable leases expiring at various
dates through May 2025. These capital leases are financed from 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 $19,426,559 and $3,347,907, respectively,
and the related present value of the remaining obligations under the capital leases amounting
to $10,771,109 at June 30, 2020 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 8774,357 for the fiscal year ended June 30, 2020.
The fixture minimum payments under capital and operating leases at June 30, 2020 are as
follows:
Obligations under capital leases 1„ „09
9. SOLID WASTE LANDFILL CLOSURE AND POSTCLOSURE CARE COSTS
Hilo Landfill In December 2019, the County closed its landfill located in the city of Hilo.
Under state and federal requirements, the County would have to monitor and maintain this site
for thirty years from the closure date. The estimated cost of closure and postclosure is
$25,823,000, based on what it would cost to perform the required closure and postclosure care
in 2020. Actual costs may be higher due to inflation, changes in technology, or changes in
regulations. Through June 30, 2020, $20,716,000 was spent on closure and postclosure care
of the landfill. The remaining estimated liability of $5,107,000 is included in the government -
wide statement of net position. During the year ended June 30, 2020, $19,800,000 was spent
-71-
Capital
Operating
Leases
Lgass
Year Ending June 30:
2021
$3,909,435
$ 1,769,251
2022
3,078,528
1,564,197
2023
2,551,669
884,563
2024
1,312,657
597,981
2025
410,489
138,917
2026& 2030
--
62,796
203d- 2035
--
902
2036-2040
--
900
2041 -2045
-•
900
2046-2049
31
Total minimum lease payments
11 ,162,778
5143$
Less amount representing interest
_49( 1.669)
Obligations under capital leases 1„ „09
9. SOLID WASTE LANDFILL CLOSURE AND POSTCLOSURE CARE COSTS
Hilo Landfill In December 2019, the County closed its landfill located in the city of Hilo.
Under state and federal requirements, the County would have to monitor and maintain this site
for thirty years from the closure date. The estimated cost of closure and postclosure is
$25,823,000, based on what it would cost to perform the required closure and postclosure care
in 2020. Actual costs may be higher due to inflation, changes in technology, or changes in
regulations. Through June 30, 2020, $20,716,000 was spent on closure and postclosure care
of the landfill. The remaining estimated liability of $5,107,000 is included in the government -
wide statement of net position. During the year ended June 30, 2020, $19,800,000 was spent
-71-
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2020
on closure of the landfill. The County is providing financial assurance for postclosure care
and remediation through self insurance as explained below.
Kealakelte 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 $17,250,000, based on what it
would cost to perform the required closure and postclosure care in 2020. Actual costs may be
higher due to inflation, changes in technology, or changes in regulations. Through
June 30, 2020, $9,002,000 was spent on closure and postclosure care of the landfill.
The remaining estimated liability of $8,248,000 is included in the government -wide statement
of net position. During the year ended June 30, 2020, $114,000 was spent on closure of the
landfill. The County is providing financial assurance for postclosure care and remediation
through self insurance as explained below.
Pu'uanalwulu In May 1993, the County contracted with a private company to construct and
operate a new landfill on County land at Pu'uanahulu in West Hawaii. The present contract
calls for County employees to perform the daily operations of the landfill, and f'or the private
company to retain the overall management as well as perform all construction work on the
landfill cells. Under the terms of the contract, the County has no responsibility for
remediation, closure or postclosure care. Accordingly, no liability for this landfill is included
in the County's financial statements.
Financial Assurance For fiscal year 2020, the County has provided for financial resources
that will be available to provide f'or closure, postclosure care and remediation or containment
of environmental hazards at the above landfills, except Pu`uanahulu. The Environmental
Protection Agency's financial assurance rules include a local government financial test
consisting of a financial component, a public notice component, and a recordkeeping
component. Local governments are required to satisfy each of the three components to pass
the annual test. Management believes that the County has satisfied each of the components of
the local government financial assurance requirements.
In fiscal year 2013, the County closed its two metal salvage facilities located near the Hilo and
Kealakehe Transfer Stations. State law requires the County to perform necessary closure
activities, including, but not limited to, the removal of all remaining solid waste and
performing appropriate site assessments and remedial activities. The estimated liability of
approximately $19,341,000 for the remediation costs associated with these closures is
included in the County's financial statements and is based on closure plans prepared by a
science and engineering consultant contracted by the County, and the current value of costs
expected to be incurred. The liability could change over time due to inflation or deflation,
changes in technology, or changes in laws and regulations governing the remediation effort.
San
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2020
The County currently maintains and utilizes 7 underground fuel storage tanks to fuel both
official and private vehicles that are used for County business. The tanks range in size from
1,000 to 8,000 gallons. The estimated liability of $1,775,000 for the cost to check for ground
contamination and potential cleanup is included in the County's financial statements.
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 frill 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, 2020:
Bonds
Issue
Bond Balance
Bond Balance
Due Within
Authorized
Amount
July 1 2019 Issues
Retirements
June 30 2Q20
Qu Year
2007 Series C
S 10,787,388
S 2,344,659 S
(S )
S 2,344,659
S 1,144,611
2010Series A
26,493,750
1,455,000
- (10155,000)
--
2010Series B
1&506,250
14,190,000
(978,750)
13,211,250
1.023,750
2013Series A
58,509,892
4,375,126
(2,323,814)
2,050,312
2,445,048
2013 Series B
21,010,000
11,655,000
-• (2,145,000)
9,510,000
2,235,000
2013 Series C
1 &470,000
11,980,000
-• (1,805,000)
10,175,000
1,875,000
2013 PISeries A
1,169,000
1,080,564
(23,649)
1,056,915
24,300
2016 Series A
99,620,000
99,620,000
99,620,000
4.160,000
2016 Series B
13,497,500
11,257.500
(1,187,500)
10,070,000
1,240,000
2016 Series C
44,835,000
41,290,000
(3,725,000)
37,565,000
3,915,000
2016 Series D
28,860,000
28,860,000
(2,280,000)
26.580,000
2,400,000
2016 Series E
19,061,250
19,061(1250
--
19,0610250
1,545,000
2016 Series F
10,040,000
3,390,000
(3,390,000)
--
2017 Series A
90,000,000
87,315,000
(2,820,000)
84.495,000
2,965,000
2017 Series C
2,083,779
1,066,347
(1,066,347)--
2017 Series D
_A3.471.QQQ
41425A00 ..........-.
4421
506,418,809
382,415,446
(23,200,060)
359,215,386
24,992,709
Add unamortized
premium
87,,$53,$9
_58ft24.081 .,,..,...
,. _14 L91
__51223.162
4J52,4-34
S124i2222 2(!8
?440,432.122
mmmm
9$
522255)143
=73-
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2020
General obligation bonds payable reported in the governmental activities section on the
government -wide statement of net position at June 30, 2020 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 B at 3.335% to 6.1 %, due through 2030
13,211,250
2013 Series A at 2.0% to 5.0%, due through 2020
2,051,312
2013 Series B at 3.0% to 5.0%, due through 2023
9,510,000
2013 Series C at 4.0% to 5.0%, due through 2024
10,175,000
2013 PI Series A at 2.75%, due through 2048
1,056,915
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
10,070,000
2016 Refunding Series C at 5.0%, due through 2027
37,565,000
2016 Refunding Series D at 5.0%, due through 2028
26,580,000
2016 Refunding Series E at 2.0% to 5.0%, due through 2029
19,061,250
2017 Series A at 5.0%, due through 2037
84,495,000
2017 Refunding Series D at 3.0% to 5.0%, due through 2032
4475000
Total general obligation bonds payable U59. 70a"
Annual debt service requirements to maturity for the above general obligation bonds are as
follows:
Fiscal year ending June 30:
2021
2022
2023
2024
2025
2026n-2030
2031 2035
2036n-2040
2041-2045
2046-2049
Total
Refunded Bonds
Governmental Activities
Principal
Interest ""',
$ 24,992,709
$ 16,351,526
26,406,084
15,111,597
26,457,546
13,836,161
27,753,775
12,539,036
26,482,300
11,233,098
119,736,472
37,979,465
78,303,373
15,197,060
28,662,834
1,764,938
220,848
42,941
199475
1 I A 53
$354
24
In periods prior to the year ended June 30, 2020, 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
June 30, 2020, approximately $61.1 million of bonds outstanding were considered defeased.
-74-
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2020
Bond Premiums
At June 30, 2020, total unamortized bond premiums were $53,223,162, 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 $646.1 million in general obligation bonds
to finance both specified and unspecified capital improvement projects. At June 30, 2020,
$301.4 million was not yet issued.
Subsequent Events On November 4, 2020, the County issued a total of $77,13 5,000 in
general obligation bonds. The interest rates range from 0.34 to 5.0%. The bonds are due
through 2040. The bonds were authorized as noted above. The proceeds from these
bonds were used to retire the previously issued Bond Anticipation Notes (BANs) that
were considered a liability at the governmental fund level.
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 June
30, 2020:
State Revolving Fund Loans
The County has obtained loans to assist in financing mandated wastewater projects from 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
Issue
Balance
Balance
Note No,
Amount
July 1. 2019
�i�es
Retirement
June 30, 2020
Series E. Note R -I
S 6,000,000
S 6,000,000
S -
(S 6,000,000)
S --
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
500,000
500,000
--
(500,000)
-
Series E, Note R-10
6,000,000
-
6,000,000
6,000,000
Series E. Note R-10
6,000,000
6,000,000
--
6,000,000
Series E. Note R-12
6,000,000
-
6,000,000
6,000,000
Series E, Note R-13
6,000,000
6,000,000
-
6,000,000
Series E. Note R-14
4,000,000
-
4,000,000
--
4,000,000
Series E, Note R-15
500,000
--
500,000
500,000
Series E. Note R-16
500,000
500,000
-
500,000
Series E, Note R-17
500,000
500,000
-•
500,000
Series E, Note R-18
,.„...... 00.000
-
500.000
000
mm000
LIMAZZM—A-3-0,0602=1L3U00.0Q�(,
State Revolving Fund Loans
The County has obtained loans to assist in financing mandated wastewater projects from 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
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2020
state to finance construction of wastewater projects. The County has eleven projects approved
for funding with these loans.
The County's State Revolving Fund Loans are direct borrowings of the County for which its
fit,ll faith and credit are pledged. The State Revolving Fund Loans are secured by the gross
revenues of the County.
The schedule below shows the County's SRF transactions for the f iscal year ended June 30,
2020:
Loans
Approved
Loan Balance
Retirements!
Loan Balance
Due Within
Authorized
Amount
July.-I—M9 AMWQns
For ivg eness
June 30„ 2020
One Year
Cesspool
12,816,084
710,930
8,377,655
276,703
2.096.965
Conversion
$ 8.363,773
$ 3,362,875 $ -
$ (441,144)
$ 2,921,731
$ 443,418
Flonoka'a LCC
4,513,158
2,329,811 --
(181,085)
2,148,726
181,988
Queen
Lili-uokalati
9,421,732
5,534,023
(490,712)
5,043,311
493,161
Kalamanaole
7,847,045
5,142,509
(355,560)
4,786,949
357,334
Kealakehe
WWTPALI
21,162,934
14,128,775 --
(866,599)
13,262,176
868,898
North Kona
2,690.404
1,616,102
(79,449)
1,536,653
80,046
Kealakehe
Eflluent Reuse
8,677,918
1,833,484 --
(85,354)
1,748,130
86,458
SH Landfill
Closure
21,209.015
448,092 174,021
622,113
29,046
Kealakehe Scrap
Metal
_ $,5 14
_-.247.92-3 .d..-. ....... .,..a, .., _.
_., ....._
�7 921
---- 2 711?
g 2
1 4z1
512-M,9 3,1
UIJkIZL2
— �,ZSZ,Z4.I;
The remaining loans bear interest at 0.25% to 0.50% exclusive of a 0.25% to 0.75% loan fee,
and require payments through fiscal year 2040.
Debt service to maturity for disbursements to date on these projects are as follows:
Fiscal year ending June 30:
2021
2022
2023
2024
2025
20262030
203ti 2035
2036n-2040
Total
_..... Governmental Activities
,..........�.�.,,�.�......_M...m_..�
Principal
al
....__..
Interest
$ 2,787,701
$ 293,892
2,801,418
272,134
2,815,303
250,178
2,829,211
228,170
2,843,375
205,877
12,816,084
710,930
8,377,655
276,703
2.096.965
47.724
-70=
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2020
Other General Long -Term Obligations
The following is a summary of other general long-term obligations transactions for the fiscal
year ended June 30, 2020:
Governmental activities:
Compensated absences
Claims and judgments
(see Note 12)
Capital leases
(see Note 8)
Landfill costs payable
(see Note 9)
Pollution remediation
(see Note 9)
Underground Storage
Tank (see Note 9)
Total
Balance Balance Due Within
July i . 2019 Additions* Payments June 30, 2020 One Year
$42,412,713 $15,834,465 $(12,754,479) $45,492,699 $10,950,611
31,484,483 4,400,261 (8,075,3118) 27,809,426 4,375,447
11,579,332 2,821,423 (3,629,646) 10,771,109 3,665,365
31,015,000 2,259,489 (19,919,489) 13,355,000 1,505,257
12,440,733 8,556,351 (1,655,735) 19,341,349 3,381,349
-- 1 775 000 -- 1775,000
;64iz:4$2 0,03440 111$.«544.x$3 77 78
* 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, 2020 includes $33,715,214, which is
reserved for principal payments on general obligation bonds and $5,131,343, which is
reserved f'or the payment of interest on the bonds.
Enterprise Fund Notes, Bond 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
payments of $7,826 on the old notes at 5.547% interest. Under this payment schedule, the
Project will make contributions through 2025 of the bonds 2032 maturity date.
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2020
The following is a summary of the Project's bond payable transactions for the fiscal year
ended June 30, 2020:
Balance at July 1, 2019
$ 529,874
Deductions
(66,186)
Balance at June 30, 2020
463,688
Less current portion6(
9.952 )
Note payable, net of
9,009
current portion
47.3
The following is a summary of the annual maturities for the enterprise fund bond payable:
Fiscal year ending June 30:
2021
2022
2023
2024
2025
2026
Total
Business-tvne Activities
Principal
hpr_est
$ 69,952
$ 21 097
73,932
17,905
78,139
13,580
82,586
9,009
87,285
4,178
71.794
$463.6ffi &_x,957
On October 29, 2012, the County assumed the loan of its lessee Ouli Ekahi Partnership with
the Hawaii Housing Finance and Development Corporation in the amount of $478,430. The
loan is non-interest bearing and matures on February 27, 2041. In exchange, the County
assumed 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, 2020:
Balance at July 1, 2019
$167,903
Deductions
_(4&630)
Balance at June 30, 2020
119,273
Less current portion
_ (16,500)
Loan payable, net of
current portion
�, 1
mum
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2020
The following is a summary of the annual maturities for the enterprise fund loan payable:
Fiscal year ending June 30
2021
2022
2023
2024
2025
2026a-2028
Total
Special Assessment Bonds
Business -type Activities
Principal
$ 16,500
16,500
16,500
16,500
16,500
36,773
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 $830,200 at June 30, 2020.
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
$1,056,915 at June 30, 2020.
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, 2020:
Balance at July 1, 2019 $1,994,867
Deductions (107,752)
Balance at June 30, 2020 i.
-79-
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2020
The following is a summary of the annual maturities for the improvement district general
obligation bonds:
Fiscal year ending June 30:
Principal,
Interest
2021
$ 112,3d7
$ 65,336
2022
11 x,083
60,466
2023
122,057
55,382
2024
127,2511
50,074
2025
132,673
44,532
2026a-2030
494,204
142,528
203d— 2035
168,374
96,136
2036a-2040
192,834
71,339
2041-2045
220,848
42,940
2046a-2049
_.__....199.474
It ,153
Total .. _ 63910
11. COMMITMENTS AND CONTINGENCIES
Contractual commitments — Contractual commitments for capital projects, expenses, and
supplies at June 30, 2020, except in the enterprise funds, are reflected in the balance sheets as
a pati of the respective fund balance categories and are as follows:
General fund $ 15,444,635
Capital projects fiord 145,749,348
Nonmajor funds 12. 120,942
Contractual commitments for the enterprise hands 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 the 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.
- 80
Iceill
Notes to the Basic Financial Statements
June 30, 2020
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 f'or
programs, practices and procedures was completed and approved by the County Council. The
cost impact of implementation is not material because the necessary modifications were
primarily procedural. The second part of this stipulated agreement required the reevaluation
of all County facilities, which was completed and accepted by the County Council on June 30,
2000. Approximately 240 County facilities were surveyed as part of this effort. The tentative
completion date of all necessary modifications and renovations was 12 years from the date the
County Council accepted the self-evaluation. The initial (1997-2000) estimated cost of the
modifications necessary to provide equal access to these facilities was $15.1 million, which
would have been spent over the 12 -year period. Funding allocated by the County over the
initial few years for facilities modifications was $17.5 million, with another $4 million of
federal funding provided through community development block grants overthe next 2 years.
The Department of Public Works requested an additional $2 million a year f'or non -Parks &
Recreation County facilities' ADA renovation projects. Because of severe disparities that
surfaced between the original ADA projects' scoping and construction estimates and actual
scopes and costs, as well as time/delivery issues that came into play because of necessary
pennits 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 improvement/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 (Francis Wong Stadium at
Ho'olulu Complex) that was reintroduced into the transition plan via the court, 19 have been
completed, 1 has been permanently omitted due to lava inundation, 1 1 are in design and
permitting or are having the bid documents finalized, and 5 have either been awarded, in
process of construction or construction is set to begin in fiscal year 2021. The County has
encumbered or spent more than $19M on these remaining 35 projects to date. The County
had spent $42.0 million for construction and design consultant costs to complete the 50 park
facilities (some having multiple ADA work being completed) prior to the development of the
modified four year plan. Additionally, the County's ADA coordinator (Equal Opportunity
Officer) has access to an operational account of at least $50,000 to handle requests for
reasonable accommodations for County departments; and the procedures f'or these requests
have been finalized and are available on the Department of Human Resources' web page
under the heading "Procedure f'or Requesting Modifications to County of Hawaii Facilities,
Programs, or Set -vices". Also, Parks has a Recreation Specialist who reviews and investigates
IWilila WK" :I:p:W
Notes to the Basic Financial Statements
June 30, 2020
requests for reasonable accommodations, and recommends specific actions on those requests,
amongst other duties.
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 from
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 claims management and safety/risk control to protect the public and
employees and to mitigate loss costs. The liability for claims and judgments is reported on 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 amount of that loss
can be reasonably estimated. These losses include an estimate of claims that have been
incurred but not repotted (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, 2020, the amount
of this liability was $27,809,426. This is the County's best estimate based on available
information. Changes in the reported liability since July 1, 2018 are given below.
Balance at July 1, 2018
Incurred claims (including IBNR)*
Claim payments
Balance at June 30, 2019
Incurred claims (including IBNR)*
Claim payments
Balance at June 30, 2020
General
Workers'
Total
Liabili1y
Compensation
Liabili
..4.x,,.3
IL 1 _.�..._
14,188,499
3,060,489
17,188,988
1®f 9.932)
.._(3,639.982)
_(3.839.9641
...._ = ..9
115AI& U9
3- X1.4 ,.
736,444
3,664,1 V
4,400,264
_0.164.614(4,920,704)
_f8,0753d8)
I—M402.M_
L14.441.4,4
__...
*Net of new claims liability and existing claims resolved at less than previous estimate.
=$2=
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2020
13. EMPLOYEE BENEFIT PLANS
Pensionsa- Employees' Retirement System of the State of Hawaii
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 terms,
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: http://ers.ehawaii.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
h ired 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 employeewas hired priorto 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 2.5%
each July 1 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 determined 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.
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
-83-
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2020
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 up to age 18. if there is no spouse/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 Ju1X 1,
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 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 spouselreciprocal 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 1 year of service. Ordinary death benefits consist of a lump sum payment of the
-84-
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2020
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.
Contributo!y Plan for Employees Hired After June 30, 2012
Retirement Benefitsn- 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 f'or ordinary disability. Ordinary disability benefits are
1.75% of average final compensation f'or 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 f br contributory plan members hired June 30, 2012 and prior.
,Hybrid Plan for Employees Hired Prior to July I , 2012
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.
-85-
COUNTY OF HAWAPI
Notes to the Basic Financial Statements
June 30, 2020
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 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 lump 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 f or 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.
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 benef its 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 time 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 amended
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 o f compensation, including the
normal cost plus amounts required to pay for the unfunded actuarial accrued liabilities. The
contribution rates for fiscal year 2020 were 36.00% for police and firefighters and 22.0% for
all other employees. Contributions to the pension plan from the County for the year ended
June 30, 2020, 2019, and 2018 were $52,778,035, $44,853,953, and $41,562,933,
respectively.
-86-
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2020
The employer 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 members hired after June 30, 2012 are required to contribute
8.0% of their salary.
Pension liabilities, pension expense, and deferred ou l-ows of resources and deferred
inflows of resources related to pensionsa- At June 30, 2020, the County reported a liability of
$668,213,164 for its proportionate share of the net pension liability. The net pension liability
was measured as of June 30, 2019, and the total pension liability used to calculate the net
pension liability was determined 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, 2019, the
County's proportion was 4.72%, which was a decrease of .05% from its proportion measured
as of June 30, 2018.
For the year ended June 30, 2020, the County recognized pension expense of $109,621,758.
At June 30, 2020, the County reported deferred outflows of resources and deferred inflows of
resources related to pensions from the following sources:
$52,778,035 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, 2021.
- 97
Deferred
Deferred
Outflows
Inflows of
of Resources
Resources
Differences between expected and actual experience
$ 32,494,705
$ 563,501
Net difference between projected and actual investment
earnings on pension plan investments
--
1,753,675
Changes in assumptions
46,055,421
513,885
Changes in proportion and differences between employer
contributions and proportionate share of contributions
11,940,916
13,860,078
County contributions subsequent to the measurement date
52,778,035
,m o_
Total
U43.26JQ11
1.L4,91.L39
$52,778,035 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, 2021.
- 97
COUNTY OF HAWAII
Notes to the Basic Financial Statements
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:
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% - 7.00%, including inflation
Investment rate of return 7.00% per annum, including inflation
Cost of living adjustments 2.50%11.50%
Mortality rates used in the actuarial valuation as of June 30, 2019 were based on the
following:
Active membersn- Multiples of the RP 2014 mortality table for active employees based
on the occupation of the member.
Healthy retireesn- The 2019 Public Retirees of Hawaii mortality table, generational
projection using the BB projection table from the year2019 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 2019. Minimum
mortality rate of 3.5% f'or males and 2.5% f'or females.
The actuarial assumptions used in the June 30, 2019 valuation were based on the results of an
actuarial experience study as of June 30, 2018, with most assumptions based on the period
fi-om July I, 2013, through June 30, 2018. The major changes to assumptions resulting from
the 2018 actuarial experience study were (1) to update the base mortality tables with client -
specific mortality tables developed using the actual mortality experience of non -disabled
retirees in ERS and (2) to update pre -retirement mortality tables for active employees to the
recently published Pub -2010 mortality tables for active employees, by job classification.
-88-
Net Deferred
Outflows of
Fiscal Year Ending June 30,
„- �$Qurces
2021
S 42,180,334
2022
19,859,728
2023
6,457,817
2024
4,791,456
2025
m510,,568
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% - 7.00%, including inflation
Investment rate of return 7.00% per annum, including inflation
Cost of living adjustments 2.50%11.50%
Mortality rates used in the actuarial valuation as of June 30, 2019 were based on the
following:
Active membersn- Multiples of the RP 2014 mortality table for active employees based
on the occupation of the member.
Healthy retireesn- The 2019 Public Retirees of Hawaii mortality table, generational
projection using the BB projection table from the year2019 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 2019. Minimum
mortality rate of 3.5% f'or males and 2.5% f'or females.
The actuarial assumptions used in the June 30, 2019 valuation were based on the results of an
actuarial experience study as of June 30, 2018, with most assumptions based on the period
fi-om July I, 2013, through June 30, 2018. The major changes to assumptions resulting from
the 2018 actuarial experience study were (1) to update the base mortality tables with client -
specific mortality tables developed using the actual mortality experience of non -disabled
retirees in ERS and (2) to update pre -retirement mortality tables for active employees to the
recently published Pub -2010 mortality tables for active employees, by job classification.
-88-
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2020
The long-term expected rate of return on pension plan investments was determined using a
"top down approach" 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 nominal real rates of return by the target asset allocation
percentage.
The target allocation and best estimates of geometric rates of return for each major asset class
are summarized in the following table:
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 assumed that employee contributions will be made at the current
contribution rate and that contributions fi-om 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 -tern 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 ofthe net pension liability to changes in the
discount ratea- 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 1 -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%)
County's proportionate share of
the net pension liability 1__069,211M.
EM
Long -Tenn
Long -Tenn
Strategic Allocation
Target
Expected Rate of
Expected Real
Risk -Based Classes
Allocation
Return*
Rate of Return
Broad growth
63.00%
7.65%
5.40%
Crisis risk offset
20.00%
5.15%
2.90%
Real return
10.00%
4.55%
2.30%
Principal protection
7.00%
3.00%
0.75%
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 assumed that employee contributions will be made at the current
contribution rate and that contributions fi-om 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 -tern 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 ofthe net pension liability to changes in the
discount ratea- 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 1 -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%)
County's proportionate share of
the net pension liability 1__069,211M.
EM
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2020
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, 2020, the annual amount payable to the ERS
totaled $4,620,657, which represents the employer contribution for the second half of the
month of June 2020, as required by HRS, and the excess pension cost under Act 153/SLH 2-
12 REFER HRS Section 88-100 for fiscal year ended June 30, 2020.
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 Hawaii Bandsmen Pension
System) who are or were ineligible for benefits under ERS and whose employment began
before June 1, 1990. Under HRS 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 minimum 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 July 1, 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 pensionsa- At June 30, 2020, the County reported a liability of
$1,026,021. The total pension liability was measured as of June 30, 2020 based on an
actuarial valuation as of July 1, 2019.
For the year ended June 30, 2020, the County recognized pension payments of $49,612 and
pension expense of $123,892.
Actuarial assumptions — The total pension liability in the June 30, 2020 actuarial report was
determined using the following actuarial assumptions, applied to all periods included in the
measurement:
Inflation 2.50%
Salary increases 3.50%, including inflation
The discount rate used to measure the County's total pension liability was 2.45% 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".
10M
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2020
The following presents the County's total pension liability calculated using the discount rate
of 2.45%, as well as what the County's total pension liability would be if it were calculated
using a discount rate that is 1 -percentage -point lower (1.45%) or I -percentage -point higher
(3.45%) than the current rate:
1 % Decrease Current Discount 1% Increase
(1.45%) Rate (2.45%) (3.45%)
County's total pension liability 1,92!M1, 1901,510
Schedule of Changes in Total Pension Liability
Measurement year ending June 30, 2.020
Total Pension Liability
Service cost $ 7,577
Interest 29,250
Changes of assumptions 87,065
Benefit payments 49 612
Net Change in Total Pension Liability 74,280
Total Pension Liability — Beginning 951 741
Total Pension Liability — Ending 5 1-02 021
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.
Benet 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.
The following table provides a summary of the number of employees covered by the benefit
terms as of July 1, 2019.
Inactive employees or beneficiaries currently receiving benefits 1,693
Inactive employees entitled but not yet receiving benefit payments 229
Active employees 2,406
m
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2020
Contributions - The County's contribution levels are established by Chapter 87A of the HRS.
The county was required to contribute 100% oftheARC starting in fiscal year 2019. The
ARC represents a level of funding that is sufficient to cover, 1) the normal cost, which is the
cost of the other postem ployment 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, 2020,
contributions to the OPEB Plan from the County totaled $41,604,474 which resulted in an
average contribution rate of approximately 22.0% of covered -employee payroll.
Subsequent Events On July 13, 2020, to address the budget shortfalls resulting from the
COV1D-19 pandemic, the Governor of the State of Hawaii approved an emergency
proclamation that suspended the law requiring employers to pay the OPEB pre -funding in
fiscal year 2021.
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 premium 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
postemployment 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 premium. 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 premium. 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 on 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.
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2020
Net OPEB liabilitya The County's net OPEB liability was measured as of July 1, 2019, 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, 2019, and the reporting date, June 30, 2020, that are expected to have a significant effect on
the net OPEB liability.
Actuarial assumptions ••- The total OPEB liability in the July 1, 2019 actuarial valuation was
determined using the following actuarial assumptions, applied to all periods included in the
measurement, unless otherwise specified:
Inflation
Salary increases
Payroll growth rate
Investment rate of return
Healthcare cost trend rates
PPO
'TIV, C�:
Part B & base monthly
contribution
Dental
Vision
Life insurance
2.50%
3.50% - 7.00%, including inflation
3.50%
7.00%
Initial rates of 8.00%; declining to a rate of 4.86% after
12 years
Initial rate of 8.00%; declining to a rate of 4.86% after
12 years
Initial rates of 5.00%; declining to a rate of 4.70%
after 11 years
Initial rates of 5.00% for the first two years; followed
by 4.00%
Initial rates of 0.00% for the first two years; followed
by 2.50%
0.00%
Mortality rates used in the actuarial valuation as of July 1, 2019 were based on the following:
Active members --- Multiples of the Pub -2010, Employee Tables for active employees
based on the occupation of the member.
Healthy retirees - The 2019 Public Retirees of Hawaii mortality table, generational
projection using the BB projection table from the year 2019 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 2019. Minimum
mortality rate of 3.5% for males and 2.5% for females.
= 93
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2020
The actuarial assumptions used in the July 1, 2019 valuation were based on the experience
study covering the five year period ending June 30, 2018 as conducted for the Hawaii
Employees' Retirement System (ERS).
The long-term expected rate of return on OPEB 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:
Discount ratee- The discount rate used to measure the total OPEB liability was 7.00%. The
projection of cash flows used to determine the discount rate assumed that the County will fund
the recommended 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 long-term expected rate of return on OPEB plan investments was
applied to all periods of projected benefit payments to determine the total OPEB liability.
101
Long -Tenn
Strategic Allocation
Target
Expected Real
(Risk -Based Classes)
Allocation_
Rate of Return
International Equity
17.00%
6.90%
U.S. Equity
15.00%
5.35%
Private Equity
10.00%
8.80%
Core Real Estate
10.00%
3.90%
Trend Following
9.00%
3.25%
U.S. Microcap
7.00%
7.30%
Global Options
7.00%
4.75%
Private Credit
6.00%
5.60%
Long Treasuries
6.00%
2.00%
Alternative Risk
Premium
5.00%
2.75%
TIPS
5.00%
1.20%
Core Bonds
_3.00%
1.50%
100.00%
Discount ratee- The discount rate used to measure the total OPEB liability was 7.00%. The
projection of cash flows used to determine the discount rate assumed that the County will fund
the recommended 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 long-term expected rate of return on OPEB plan investments was
applied to all periods of projected benefit payments to determine the total OPEB liability.
101
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2020
Changes in the Net OPEB Liability:
The following schedule presents the changes in the net OPEB liability for the fiscal year
ending June 30, 2020:
Sensitivity of the net OPEB liability to changes in the discount rates The following presents
the net OPEB liability of the County, as well as what the County's net OPEB liability would
be if it were calculated using a discount rate that is 1 -percentage -point lower (6.00%) or I -
percentage -point higher (8.00%) than the current discount rate:
I% Decrease Current Discount 1% Increase
(6.00%) Rate (7.00%) (8.00%)
County's net OPEB liability
Sensitivity of the net OPEB liability to changes in the healthcare cost trend rates - The
following presents the net OPEB liability of the County, as well as what the County's net
OPEB liability would be if it were calculated using a healthcare cost trend rate that is I -
percentage -point lower or 1 -percentage -point higher than the current healthcare cost trend
rate:
Current
Healthcare Cost
I% Decrease Trend Rate I% Increase
County's net OPEB liability
Increase (Decrease)
Total OPEB
Plan Fiduciary
NetOPEB
Liability
Net Position
Liability
(a)
(b)
(a) -(b)
Balance at June 30, 2019
551,431=353
$__150.,,596.543
$ 400,834,810
Changes for the fiscal year:
Service cost
12,402,599
--
12,402,599
Interest on the total OPER liability
38,381,475
--
38,381,475
Employer contributions
--
39,770,000
(39,770,000)
Net investment income
--
7,187,610
(7,187,610)
Benefit payments
(18,651,726)
(18,651,726)
--
Administrative expense
_-
(49,623)
49,623
Difference between expected
and actual experience
9,224,217
--
9,224,217
Changes of assumptions
1,862,836
--
1,862,836
Other
......_......w..w .
8 5, 31701
J8 53d,701)
Net changes
$ 43,219,401
36,787,962
6,434,439
Balance at June 30, 2020
594
Sensitivity of the net OPEB liability to changes in the discount rates The following presents
the net OPEB liability of the County, as well as what the County's net OPEB liability would
be if it were calculated using a discount rate that is 1 -percentage -point lower (6.00%) or I -
percentage -point higher (8.00%) than the current discount rate:
I% Decrease Current Discount 1% Increase
(6.00%) Rate (7.00%) (8.00%)
County's net OPEB liability
Sensitivity of the net OPEB liability to changes in the healthcare cost trend rates - The
following presents the net OPEB liability of the County, as well as what the County's net
OPEB liability would be if it were calculated using a healthcare cost trend rate that is I -
percentage -point lower or 1 -percentage -point higher than the current healthcare cost trend
rate:
Current
Healthcare Cost
I% Decrease Trend Rate I% Increase
County's net OPEB liability
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2020
For the year ended June 30, 2020, the County recognized OPEB expense of $33,407,562. At
June 30, 2020, the County reported deferred outflows of resources and deferred inflows of
resources related to pensions from the following sources:
Difference between expected and actual experience
Changes of assumptions
Net difference between projected and actual earnings on
OPEB plan investments
Deferred
Deferred
Outflows
Inflows of
of Resources
Resources
$ 7,885,842
$ 2,613,883
6,737,018
--
2,134,751 -•
County contributions subsequent to the measurement date „41, 604,474
Total„32.,1.13$3
$41,604,474 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 OPEB liability in the fiscal year ended June 30, 2021.
Other amounts reported as deferred outflows of resources and deferred inflows of resources
related to pensions will be recognized in pension expense as follows:
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.hawaii.gov or by contacting them at P.O. Box 2121, Honolulu, HI 96805-2121.
Deferred Compensation Plan
County employees are permitted to participate in a deferred compensation plan of the State of
Hawaii, adopted pursuant to Internal Revenue Code (IRC) section 457. The plan permits
eligible employees to defer a portion of their salary until future years by contributing to a fund
M
Net deferred
outflows of
Fiscal Year EndingJune 30.
resources
2021
$ 2,384,727
2022
2,384,728
2023
2,919,876
2024
2,942,608
2025
2,076,702
Thereafter
l 435 0 7
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.hawaii.gov or by contacting them at P.O. Box 2121, Honolulu, HI 96805-2121.
Deferred Compensation Plan
County employees are permitted to participate in a deferred compensation plan of the State of
Hawaii, adopted pursuant to Internal Revenue Code (IRC) section 457. The plan permits
eligible employees to defer a portion of their salary until future years by contributing to a fund
M
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2020
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, 2020, the carrying amount of cash, time certificates of deposit and money market
funds of $42,551,340, with bank balances of $43,261,291 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, 2020.
At June 30, 2019, the Department had $22,000,000 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.
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
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2020
The capital assets of the Department at June 30, 2020 were as follows:
Utility plant in service $516,049,178
Less: accumulated depreciation _(276,541,289)
239,507,889
Preliminary survey and investigation charges 6,417,849
Construction work in progress 50,320,430
Land and rights 5,261,319
Net capital assets j3S ,5_Q7 U
Long Term Debt
The County has issued general obligation bonds on behalf of the Department. The
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 $22,198,633 at June
30, 2020.
General obligation bonds payable issued on behalf of the Department and other long-term debt
at June 30, 2020 are comprised of the following:
Public improvement bonds:
2008 Series A at 4.125%, due through 2043
2010 Series B at 3.33% to 6.1 %, due through 2030
Total public improvement bonds
Public improvement refunding bonds:
2007 Series C at 4.0% to 5.0%, due through 2021
2016 Series B at 3.0% to 5.0%, due through 2026
2016 Series E at 2.0% to 5.0%, due through 2029
Revolving fund loans:
State revolving fund loans, interest up to 1.37%,
due through 2038
Total long-term debt
Add: Unamortized premium
Total
_98a
$ 120,792
4,403,750
4,524,542
1,250,341
10,070,000
6,353,750
42,909,5 25
65,108,158
1.325,535
$66A316-93
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2020
At June 30, 2020, future principal and interest payments for long-term debt are scheduled as
follows:
Fiscal year ending June 30:
Principal
Interest
Total
2021
$ 5,828,067
$ 1,635,044
$ 7,463,d11
2022
5,950,883
1,427,219
7,378,102
2023
4,937,015
1,235,745
6,da72,760
2024
5,085,892
1,069,450
6,x165,342
2025
5,232,673
903,665
6,136,338
2026a-2030
22,303,427
2,421,375
24,724,802
2034 —2035
11,1 60,520
655,105
11 ig16,625
2036a-2040
4,586,971
93,748
4,680,719
2041-2044
22.710
1,895
24.605
Total
$65,0
9.443,246,
Contributions in Aid of Construction
The Department recognized $3,202,379 of contributions in aid of construction for the fiscal
year ended June 30, 2020.
Commitments and Contingent Liabilities
Claims and judgmentsa 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, 2020 for workers' compensation claims of $660,000
was estimated based on a combination of case-by-case review and the application of historical
experience to outstanding claims.
Construction contractsxr The Department is obligated under construction contracts for the
utility plant and other projects. Such commitments approximated $42,807,730 at
June 30, 2020.
Pension Plan
Pension liabilities, pension expense, and deferred outflows of resources and deferred
inflows of resources related to pensions — At June 30, 2020, the Department reported a
liability of $32,029,248 for its proportionate share of the net pension liability. The net pension
liability was measured as of June 30, 2019, 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.
_99-
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2020
At June 30, 2019, the Department's proportion was .23%, which decreased by 0.02% from its
proportion measured as of June 30, 2018.
For the year ended June 30, 2020, the Department recognized pension expense of $4,855,184.
At June 30, 2020, the Department reported deferred outflows of resources and deferred
inflows of resources related to pensions from the following sources:
The $2,258,593 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, 2021.
Other amounts reported as deferred outflows of resources and deferred inflows of resources
related to pensions will be recognized in pension expense as follows:
Deferred
Deferred
Outflows
Outflows
Inflows of
Fiscal Year Ending June 30,
of Resources
Resources
Differences between expected and actual experience
$ 560,393
$ 64,d04
Net difference between projected and actual investment
306,430
2024
earnings on pension plan investments
--
87,92d
Changes in assumptions
2,110,671
--
Changes in proportion and differences between employer
contributions and proportionate share of contributions
2,442,051
2,602,620
Department contributions subsequent to the measurement date
2,258,593,
--
Total
The $2,258,593 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, 2021.
Other amounts reported as deferred outflows of resources and deferred inflows of resources
related to pensions will be recognized in pension expense as follows:
i li
Sensitivity of the Department's proportionate share of the net pension liability to changes in
the discount ratea- The following presents the Department's proportionate share of the net
pension liability calculated using the discount rate of 7.00%, as well as what its proportionate
9111I11e
Net Deferred
Outflows
(Inflows) of
Fiscal Year Ending June 30,
Resources
2021
$ 1,458,414
2022
888,038
2023
306,430
2024
( 81,909)
2025141
2.503
i li
Sensitivity of the Department's proportionate share of the net pension liability to changes in
the discount ratea- The following presents the Department's proportionate share of the net
pension liability calculated using the discount rate of 7.00%, as well as what its proportionate
9111I11e
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2020
share of the net pension liability would be if it were calculated using a discount rate that is 1 -
percentage -point lower (6.00%) or 1 -percentage -point higher (8.00%) than the current rate:
1% Decrease Current Discount 1% Increase
(6.00%) Rate (7.00%) (8.00%)
Department's proportionate
share of the net pension liability ............ ..........0 _
02
Pension plan fiduciary net positionz--,,, 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, 2020, the annual amount payable to the ERS
totaled $239,615, which represents the employer contribution for the month of June 2020, as
required by HRS.
Post -Retirement Benefits Other than Pensions (OPEB)
Net OPEB liability, OPEB expense, and deferred ouyl ows of resources and deferred inflows
of resources related to OPEB — At June 30, 2020, the Department reported a net OPEB
liability of $16,079,747. The net OPEB liability was measured as of July I, 2019, and the
total OPEB liability used to calculate the net OPEB liability was determined by an actuarial
valuation as of that date. For the year ended June 30, 2020, the Department recognized OPEB
expense of $1 p229,776.
At June 30, 2020, 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
Difference between expected and actual experience $ -- $ 1,093,632
Changes of assumptions 418,394
Net difference between projected and actual earnings on OPEB
plan investments 255,967 --
Employer contributions subsequent to the measurement date 1 977,000 --
Total ,. . L) = ..
$1,977,000 reported as deferred outflows of resources related to the Department's
contributions to the OPEB plan subsequent to the measurement date will be recognized as a
reduction of the net OPEB liability in the fiscal year ended June 30, 2021.
MMM
COUNTY OF HAWAII
Notes to the Basic Financial Statements
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:
Sensitivity of the net OPEB liability to changes in the discount rale The following presents
the net OPEB liability of the Department, as well as what the Department's net OPEB 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:
1 % Decrease Current Discount I% Increase
(6.00%) Rate (7.00%) (8.00%)
Department's net OPEB liability 7 ,m J 7 1 „
Sensitivity of the net OPEB liability to changes in the healthcare cost trend rates — The
following presents the net OPEB liability of the Department, as well as what the Department's
net OPEB liability would be if it were calculated using a healthcare cost trend rate that is 1 -
percentage -point lower or 1 -percentage -point higher than the current healthcare cost trend
rate:
Current
Healthcare Cost
1 % Decrease Trend Rate I% Increase
Department's net OPEB liability ?mmNNNdW�H ��77 7
.ma2.ddvxmWdiii
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.hawaii.gov or by contacting them at P.O. Box 2121, Honolulu, HI 96805-2121.
MIM
Net Deferred
Inflows of
Fiscal Year Ending June 30,
Resources
2021
$ 106,916
2022
106,918
2023
47,201
2024
44,770
2025
98,134
Thereafter
15,332
Sensitivity of the net OPEB liability to changes in the discount rale The following presents
the net OPEB liability of the Department, as well as what the Department's net OPEB 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:
1 % Decrease Current Discount I% Increase
(6.00%) Rate (7.00%) (8.00%)
Department's net OPEB liability 7 ,m J 7 1 „
Sensitivity of the net OPEB liability to changes in the healthcare cost trend rates — The
following presents the net OPEB liability of the Department, as well as what the Department's
net OPEB liability would be if it were calculated using a healthcare cost trend rate that is 1 -
percentage -point lower or 1 -percentage -point higher than the current healthcare cost trend
rate:
Current
Healthcare Cost
1 % Decrease Trend Rate I% Increase
Department's net OPEB liability ?mmNNNdW�H ��77 7
.ma2.ddvxmWdiii
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.hawaii.gov or by contacting them at P.O. Box 2121, Honolulu, HI 96805-2121.
MIM
COUNTY OF HAWAII
Required Supplementary Information
June 30, 2020
Schedule of Changes in the Net OPEB Liability and Related Ratios
Last 10 Fiscal Years*
Net OPEB liability
Plan fiduciary net position as a percentage of
the total OPEB liability
Covered -employee payroll
Net OPEB liability as a percentage of
Covered -employee payroll
- 103 =
$ 407,266,249 $ 16,079,747
31.5% 54.9%
$ 185,575,775 $ 10,264,425
219.5% 156.7%
2020
County
Department
Total OPEB Liability
Service Cost
$ 12,402,599
$ 746,672
Interest on the total OPEB liability
38,381,475
2,349,959
Benefit payments
(118,6511,726)
(1,012,084)
Difference between expected and actual
experience
9,224,217
(3114,598)
Change in assumptions
1.862 836
137,542
Net change in total OPEB liability
43,219,401
1,907,491
Total OPEB liability - Beginning
551,434,353
33,703,543
Total OPEB liability - Ending
$ 594,650,754
$ 35,614,034
Plan fiduciary net position
Contributions - employer
$ 39,770,000
$1 f990,000
Net investment income
7,1187,610
764,696
Benefit payments
(18,654,726)
(1,012,084)
Administrative expense
(49,623)
(5,493)
Other
8,534,701
5,2,,371
Net change in plan fiduciary net position
36,787,962
2,259,490
Plan fiduciary net position - Beginning
150,596,543
17,271,797
Plan fiduciary net position - Ending
$ 187,384,505
$ 19,534,287
Net OPEB liability
Plan fiduciary net position as a percentage of
the total OPEB liability
Covered -employee payroll
Net OPEB liability as a percentage of
Covered -employee payroll
- 103 =
$ 407,266,249 $ 16,079,747
31.5% 54.9%
$ 185,575,775 $ 10,264,425
219.5% 156.7%
COUNTY OF HAWAII
Required Supplementary Information
June 30, 2020
Net OPEB liability
Plan fiduciary net position as a percentage of
the total OPEB liability
Covered -employee payroll
Net OPEB liability as a percentage of
Covered -employee payroll
uJIM
$ 400,834,810 $ 16,431,746
27.3% 51.3%
$ 178,889,344 $ 10,212,595
224.1% 160.9%
X1.2
Coun ty
Department
Total OPEB 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
7,240,956
_432,23,3
Net change in total OPEB liability
33,656,439
1,193,988
Total OPEB liability - Beginning
__511,7_74,2_14
_,32„9,5.5.5
Total OPEB liabilitya Ending
$ 551,431,353
$ 33,703,543
Plan fiduciary net position
Contributions - employer
$ 32,829,013
$1,936,548
Net investment income
9,474,156
1,11 1,306
Benefit payments
(17,998,013)
(1,016,548)
Administrative expense
_i2%,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 OPEB liability
Plan fiduciary net position as a percentage of
the total OPEB liability
Covered -employee payroll
Net OPEB liability as a percentage of
Covered -employee payroll
uJIM
$ 400,834,810 $ 16,431,746
27.3% 51.3%
$ 178,889,344 $ 10,212,595
224.1% 160.9%
COUNTY OF HAWAII
Required Supplementary Information
June 30, 2020
Net OPEB liability $ 391*454,300 $ 1-,265,728
Plan fiduciary net position as a percentage of
the total OPEB liability
Covered -employee payroll
Net OPEB liability as a percentage of
Covered -employee payroll
24.4% 46.9%
$ 172,678,405 $ 9,791,32
226.70% 176.34%
* This schedule is intended to present information for 10 years, as of the measurement date of the
collective net OPEB liability for each respective fiscal year. Additional years will be built
prospectively as information becomes available.
See accompanying notes to required supplementary information
-105-
2018
County
Department
Total OPEB Liability
Service Cost
$
11,757,502
$ 687,414
Interest on the total OPEB liability
34,046,407
2,135,490
Benefit payments
—DUM4
987)
(953,288.)
Net change in total OPEB liability
28,748,922
1,869,616
Total OPEB liability - Beginning
489,025,992
30,639,939
Total OPEB 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
(1 ,1,054,987)
(953,288)
Administrative expense
(23,228)
(2,782)
Other
266,457
16.370
Net change in plan fiduciary net position
22,112,934
2,194,034
Plan fiduciary net position - Beginning
104,201,680
13,069,793
Plan fiduciary net position - Ending
$
126,320,614
$ 15,243,827
Net OPEB liability $ 391*454,300 $ 1-,265,728
Plan fiduciary net position as a percentage of
the total OPEB liability
Covered -employee payroll
Net OPEB liability as a percentage of
Covered -employee payroll
24.4% 46.9%
$ 172,678,405 $ 9,791,32
226.70% 176.34%
* This schedule is intended to present information for 10 years, as of the measurement date of the
collective net OPEB liability for each respective fiscal year. Additional years will be built
prospectively as information becomes available.
See accompanying notes to required supplementary information
-105-
COUNTY OF HAWAII
Required Supplementary Information
June 30, 2020
Schedule of Contributions (OPEB) Last 10 Fiscal Years
See accompanying notes to required supplementary information
-106-
COUNTY OF HAWAII
Required Supplementary Information
June 30, 2020
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 EUTF is
performed as of July 1 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, 2020:
Actuarial valuation date July 1,(2018
Actuarial cost method Entry Age Normal
Amortization method Level percent, closed
Equivalent single amortization period 19.3 and 17.9 for the County and Department,
respectively
Asset valuation method Smoothed
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 10.00%; declining to a rate of
4.86% after 13 years
HMO
Initial rate of 10.00%; declining to a rate of
4.86% after 13 years
Part B
Initial rate of 4.00% and 5.00%; declining to a
rate of 4.70% after 12 years
Dental
5.00% for the first 3 years; then 4.00% for all
future years
Vision
0.00% for the first 3 years; then 2.50% for all
future years
Life Insurance
0.00%
-107-
COUNTY OF HAWAII
Required Supplementary Information
June 30, 2020
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 utilizing scale
BB to project generational mortality improvement
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).
-108-
COUNTY OF HAWAII
Required Supplementary Information
June 30, 2020
Schedule of the 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
Liability$%)
Liabili$
Payroll
Payroll
Liability
June 30, 2019
4.7%
$668,213,164
$172,4 97,101
388.1%
54.9%
June 30, 2018
4.8%
$635,693,501
$168,484,880
377.3%
55.5%
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
$149,760,347
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
$129,163,763
292.0%
58.0%
Department:
Proportionate
Share of the
Plan
Department's
Department's
Net Pension
Fiduciary Net
Proportion of
Proportionate
Liability as a
Position as a
the Net
Share of the
Department's
%age of
%age of the
Measurement
Pension
Net Pension
Covered
Covered
Total Pension
Period Ended
Liability(%)
Liability ($)
Pa roy 11�
Payroll
Liabili
June 30, 2019
0.2%
$ 32,029,248
$10,318,136
310.4%
54.9%
June 30, 2018
0.3%
$ 33,522,053
$ 9,742,400
3444%
55.5%
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&%
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 information 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 information
COUNTY OF HAWAII
Required Supplementary information
June 30, 2020
Schedule of the Employer Pension Contributions (ERS)
Last Ten Fiscal Years
County:
Actual
County
Contributions
Statutorily
Contributions
Contribution
as a %age of
Fiscal Year
Required
Recognized
Deficiency
County's
Covered
Ended
Contribution
n
by the Plan
(Excess)
Covered
overed Pa
we. , F��mm. _.....
Payroll
June 3-0,20-2 0
$ 52,778,035
$ 52,778,035
$ --
$
180,285,326
29.3%
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
$ --
$
156,556,514
21.7%
June 30, 2015
$ 31,456,148
$ 31,456,148
$ --
$
149,760,317
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
$ --
$
129,163,763
18.4%
June 30, 2012
$ 20,884,021
$ 20,884,021
$ --
$
123,218,017
16.9%
June 30, 2014
$ 21,424,642
$ 21,424,642
$ --
$
126,714,584
16.9%
Department:
Actual
County
Contributions
Statutorily
Contributions
Contribution
as a %age of
Fiscal Year
Required
Recognized
Deficiency
County's
Covered
Ended
Contribution
.....-.
ee. by the Plan
(Excess)
....��_...m..e�
Covered Payroll
..._ Payro" „
June 30, 2020
$ 2,258,593
$ 2,258,593
$ --
$ 10,439,473
21 �%
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%
See accompanying notes to required supplementary information
- 110-
COUNTY OF HAWAII
Required Supplementary Information
June 30, 2020
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.
Amounts 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 modif ied 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.
-III-
COUNTY OF HAWAII
Required Supplementary Information
June 30, 2020
Schedule of Changes in Total Pension Liability (Bandsmen Pension)
Last Ten Fiscal Years*
Measurement year ending 2020 2019 2018
June 30,
Total Pension Liability
Service Cost
Interest on the Total
Pension Liability
Differences between
expected and actual
experience
Assumption Changes
Benefit Payments
Net Change in Total
Pension Liability
Total Pension Liabilitya-
Beginning
Total Pension Liability –
Ending
Covered Payroll
Total Pension Liability as
a Percentage of Covered
Employee Payroll
$ 7,577
$ 7,392
$ --
$ 16,416
29,250
38,149
--
36,289
--
(89,947)
--
--
87,065
(44,293)
--
(1 43,807)
_A49,6d2)
—L47 532)
(58,808)
03,347)
74,280
(136,231)
(58,808)
(114,449)
95d,74d
1,087,972
I.IE46,-780
1.261,229
$19.2U 1
!=V 41
I L01.272
$ 26,349
$ 26,349
$ 49,505
$ 49,505
3,894.0%
3,612.1%
2,197.7%
2,346.5%
* This schedule is intended to present information 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
= 112-
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 landf ills 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 onrstreet 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 kes
collected with motor vehicle registrations.
BIKEWA Y FUND - Used to accumulate moneys f'or 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 f or the cost of operating the Hilo Municipal Golf Course.
Funding is provided froom 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 to®ted in the
County. The funds are earmarked fora geothermal relocation program and to benef it the lower Puna area.
BEAUTIFICATION 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 f'or parks and playgrounds in subdivisions.
GENERAL EXCISE TAX FUND Used to account for moneys collected from the Fneral 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 blank.
-113-
COUNTY OF HAWAII
Nonmajor Governmental Funds
Combining Balance Sheet
June 30, 2020
1114
Special Revenue Funds
Solid
Parking Vehicle
Highway
Sewer
Waste
Cemetery
Meter Disposal
Fund
FundFund
Fund
Fund Fund
Assets
Cash and cash equivalents
$ 183,171,640
$18,358,492
$12,912,585
$ 161,909
$ 3181,650 $ I1�D00,536
Investments
-
-
- -
Imprest find
-
00
250
-
Receivables:
Due from other governments
3,698,708
248,983
435,683
-
- -
Due from other governmental funds
499,206
73,151
68,655
-
- 1,058
Due from other nongovernmental funds
-
4,000
-
-
- -
7rade, netof allowance lordoubtful accounts
-
1,723,643
890,612
- mm
Other
-
-
-
-
- -
4,197,914
2,049,777
1,394,950
-
- 1,058
Total assets
$ 22,369,554
$13,408,669
$14,307,785
$ 161,909
$ 314,650 $11,001,594
Liabilities, Deferred Inflows and Fund Balances
Liabilities:
Accounts payable
$ 602,041
$ 293,235
$ 2,589,059
$ -
$ - $ 193,122
Accrued payroll
764,063
212,376
461,540
- 5,919
Due to other governmental funds
533,293
475,199
779,085
- 51,187
Advance Collections -Intergovernmental
149,254
11,998
-
- -
Other
1,040
63,275
-
- -
Totalliabilities2,049,691
1,044,085
3,771$682
-
- 250,228
Deferred Inflows of Resources
Unavailable Revenue
-
1,723,643890,611
....
-
- ................
Fund balances:
Restricted for:
Debt service
-
-
-
Highways, streets and abandoned vehicles
20,389,863
Housing and rental assistance
-
-
-
Committed to:
Sanitation
10,640,941
9,645,492
- -
Highways, streets and abandoned vehicles
-
-
-
314,650 10,758,366
Rental assistance and subsidy
-
- -
Cemetery
161,909
Golf Course
-
-
-
-
Lower Puna area
-
-
-
-
Parks and recreational projects-
...... ---- ___�
......-______ -
-
------
..........._______.
-
------
Tota and balances
20,389,863
10,640,941
m„ 9,645,492
161 P09
314,650 10,758,366
w ,www
Total liabilities, deferred inflows
and fund balances
$ 22,369,554
$18,408,669
$14,307,785
$ 168,909
$ 314,650 $11 0I 94
1114
Special Revenue Funds
S 724 $ _ $ 5,455 $ $ 2,175 $ 142,268 $ -
- - 53,357 - 211,186 -
213,093 81,531 44,295 -
- 430,430 -
- - - 363,279
724 _ 2,13,093 58,812 83,706 1,191,458
5_,.l 8Z
660,161 - 384,597 -
- - - 1,652,453 -
- 1,267,826 -
- - 117,433 -
- _ - 4,274,235 - - -
61
660,161 117,433 4,274,235 384597 2,920 279 61068
$ 660,885 $ 213,093 $ 176,245 $ 4,274,235 $ 468 303 $ 4 226 919 $ 61,068
(Continued)
wasro«a
Golf
C,4xhemvI Retoe.
Beauti-
Hawaii County
Park
Bikeway
Innovation @
Course
& Community
fication
Housing
Dedication
Fundo
Ac, Fuad
Fund
Benefits Fund
Fund
AQency
Fund
$ 633,885
$
$ 170,869
$ 4,274,235
$ 468,303
$ 3,855,753
$ 48,238
-
-
-
-
-
-
12,737
-
2,000
-
-
800
-
-
174,100
-
-
-
107,772
-
27,000
-
3,046
p
144,804
-
38,993
330
117 790
93
27,000
213,093
3,376
-
-
370,366
93
$ 660,885
$ 213,093
$ 176,245
$ 4,274,235
$ 468,303
$ 4,226,919
$ 61.068
S 724 $ _ $ 5,455 $ $ 2,175 $ 142,268 $ -
- - 53,357 - 211,186 -
213,093 81,531 44,295 -
- 430,430 -
- - - 363,279
724 _ 2,13,093 58,812 83,706 1,191,458
5_,.l 8Z
660,161 - 384,597 -
- - - 1,652,453 -
- 1,267,826 -
- - 117,433 -
- _ - 4,274,235 - - -
61
660,161 117,433 4,274,235 384597 2,920 279 61068
$ 660,885 $ 213,093 $ 176,245 $ 4,274,235 $ 468 303 $ 4 226 919 $ 61,068
(Continued)
COUNTY OF HAWAII
Nonma jor Governmental Funds
Combining Balance Sheet
June 30, 2020
(Concluded)
See accompanying independent auditors' report.
u
Special Revenue Funds
Debt Service Fund
Total
General
Short -tern
Bond
Nonma jor
Excise
Vacation Rental
Interest
Redemption
Governmental
Tax Fun -.
Enlorcement.. Fund
Fund
_ ._._ _......
_ Fund
Assets
Cash and cash equivalents
$ 6,499,784
$ 1,762,364
$2,794,332
$ 5,184,477
$ 79,542,052
Investments
-
-
2,400,000
28,785,737
31,198,474
Imprest fund
-
-
-
-
3,450
Receivables:
Due from other governments
14,029,449
-
-
-
18,694,695
Due from other governmental funds
1,601,687
-
-
-
2,418,607
Due from other nongovernmental funds
-
-
-
-
4,000
Trade, net of allowance for doubtful accounts
-
-
-
-
2,614,255
Other
-
210
15,638,136
—1,762,364
2 i 0
Total assets
$22,130,920
$.
$5 194,542
$33 900 214
$ 1$13
Liabilities, Deferred Inflows and Fund Balances
Liabilities:
Accounts payable
$ 196,940
$ 2,220
$ -
$ -
$ 3,957,239
Accrued payroll
57,960
13,747
-
-
1,780,148
Due to other governmental funds
6,340,360
11,264
-
-
8,529,307
Advance Collections -Intergovernmental
-
-
-
591,682
Other
512
63,,199-
185 000
Total liabilities
6,595,772
_ 27 238
_63,199
_.__L85 000
,15 MS -
Deferred Inflows of Resources
Unavailable Revenue
-
-
?,.Z29"
Fund balances:
Restricted for:
Debt service
-
-
5,131,343
33,715,214
38,846,557
Highways, streets and abandoned vehicles
15,535,148
-
-
-
36,899,769
Housing and rental assistance
-
1,735,133
-
-
3,387,586
Committed to:
Sanitation
-
-
-
20,286,433
Highways, streets and abandoned vehicles
_
-
-
I I JD66,016
Rental assistance and subsidy
-
-
1,267,826
Cemetery
-
-
-
-
161,909
Golf Course
-
-
-
117,433
Lower Puna area
-
-
-
-
4,274,235
Parks and recreational projects
®�
Total fund balances
15,535,148
1,735,133
5,131,34333
,715 284
116 368,!j-3Z-
3 -Total
Totalliabilities, deferred inflows
and fiord balances
$22,130,920
$ 1,762,364
$5,194542
j_
JIM00 214
134 2„949
See accompanying independent auditors' report.
u
This page intentionally left blank.
- 117-
COUNTY OF HAWAII
Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
For the Fiscal Year Ended June 30, 2020
sm
Special Revenue Funds
Solid
Parking
Highway
Sewer
Waste
Cemetery Meter
Fund
Fund
Fund
Fund Fund
Revenues
Fuel taxes
$ 20,108,062
Public utility franchise taxes
9,364,811
-
-
- -
Licenses and permits
12,042,878
-
-
- -
General excise tax surcharge
-
-
-
- -
Intergovernmental
1,956,861
76,073
690,029
- -
Charges forservices
-
10,186,681
13,507,604
- 15,591
Investment earnings (loss)
-
-
-
-
Other
307,763
8,272
146 997
9 500 -
Total revenues
43,780,375
_10,271 026
14 344 630
9 500 15,591
Expenditures
Current:
General Government
342,834
-
-
- -
Public safety
10,339,473
-
-
Highways and streets
17,962,409
Health, education and welfare
-
-
-
- -
Culture and recreation
-
-
-
- -
Sanitation
-
10,058,737
30,896,540
- -
Pension and retirement contributions
3,514,100
984,783
2,102,574
- -
Employees' health insurance
1,361,056
317,356
823,923
- -
Other
1,032,145
458,024
471,087
- -
Debt service:
Principal
510,902
181,466
1,365,448
- -
Interest
59,675
. 21,188
1392250
Total expenditures
35,122,594
12,0210654
35,798,822
-�Yµ -mM
Excess (deficiency) of revenues
over (under) expenditures
8,657,781
51,750,828
A21,454,192)
9,500 15,591
Other Financing Sources (Uses)
Transfers in
-
2,586,419
19,862,687
- -
Increases in capital leases
179,377
1,139,583
-
- -
Transfers out
(3,373,356
-
-
- -
Total other financing sources (uses)
L3,1933979)
3,7262002
_ 19,862,687
Net change in fund balances
5,463,802
1,975,174
(1,591,505)
9,500 15,591
Fund balances at beginning of year
14�
8,665,767
1.,1.,236,997
.
.. _ ..152 9 ,40 299,059
Fund balances at end of year
$$ 20
$10,6
$ 9,645,492
$ 161(909 $ 314,650
sm
(Continued)
-119w
Special Revenue Funds
Vehicle
woikforce
Golf
Geothermal Reloe,
Beauti-
Hawaii County
Park
Disposal
Bikeway
Innovation &
Course
& Community
fication
Housing
Dedication
Fund
Fund
,ODPon. Act Fund
Fund
Benefits Fund
Fund
_Agency_
Fund
2,364,625
52,914
-
-
-
197,043
-
-
-
798,629
-
-
-
21,832,097
-
4,957
-
-
593,127
-
-
-
-
-
-
-
-
-
-
3,811
772
3,461
-
-
-
-
-
557,035
-
2,373,043
52,914
798,629
593,127
-
197,043
22,392,943
772
-
43,123
-
-
-
138,082
-
-
-
798,629
-
-
22,335,523
-
-
-
-
1,027,701
-
140,047
-
-
1,652,101
-
-
-
-
-
-
26,229
-
-
262,404
-
844,952
-
11,325
-
-
120,979
-
361,792
-
-
-
-
5,536
-
-
-
-
37,278
-
-
7,911
-
-
-
4,940
-
315
1,689655
43,123
7,98,,,629
1,453,302
-
278129
23,556,029
-
6�
9,791_
-
A860,175
^ 81 086
(1,163,086
772
-
-
1,000,205
-
-
1,517,810
-
(298,787)
-
-
-
-
-
-
_y31,055)
(298,787)
-
1,000,205.
-
1,517,810
_131,055)
384,601
9,791
_
140,030
-
(81,086)
354,724
(30,283)
10,366,765
650370
-
122,597)
4,274,235
465,683
_. 2,565,5_55.91,351
$ 10,7LII 66
$ 660 161
$ -
$ 117 433
$ 4,274,235
$ 384,597
$ 2z9204279
$ 61,068
(Continued)
-119w
Revenues
Fuel taxes
Public utility franchise taxes
Licenses and permits
General excise tax surcharge
Intergovernmental
Charges for services
Investment earnings (loss)
Other
Total revenues
COUNTY OF HAWAII
Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
For the Fiscal Year Ended June 30, 2020
(Concluded)
Special Revenue Funds
Debt Service Fund
Total
General
Short-term
Bond
Nonma jor
Excise
Vacation Rental
Interest Redemption
Governmental
Tax Fund
Enfbrcement Fund
Fund Fund
Funds
$ -
$ -
$ - $ -
$ 20,188,062
-
-
-
9,364,801
-
1,788,250
- -
16,445,710
35,537,945
-
-
35,537,945
-
-
340,967 -
25,694,656
-
-
- -
24,307,960
-
-
50,260 -
54,843
1,033,028
35,537,945
1,788,250
391,227 -
132,547,015
Expenditures
29,744,044
Current:
29,753,967
General Government
-
Public safety
-
Highways and streets
5,419,900
Health, education and welfare
-
Culture and recreation
,260,000)
Sanitation
-
Pension and retirement contributions
268,781
Employees' health insurance
80,253
Other
15,044
Debt service:
293,966 - - 636,800
- - - 10,339,473
23,563,504
23,134,152
- - - 1,167,748
- - - 42,607,378
8,694 - - 8,012,507
1,608 - - 3,078,292
- - mm 1,981,836
Prncpal - -
Interest - -
Total expenditures 5,783,978 304 268
Excess (deficiency) of revenues
29,744,044
over (under) expenditures
29,753,967
Other Financing Sources (Uses)
1,316,960
Transfers in
-
Increases in capital leases
-
Transfers out
20,260,000
Total other financing sources (uses)20(
,260,000)
Net change in fund balances
9,493,967
Fund balances at beginning of year
6,041,181
Fund balances at end of year
$15,535,148
See accompanying independent auditors' report.
25,592,211 27,695, 216
18,276,271 - 18,501,939
18,276,271 25,592,211 160,718, 865
1,483,982 Sl7 8) (25,592,21.1) _(28,171,850)
- 19,368,409
29,744,044
74,079,574
- -
-
1,316,960
- -
-
.....(23963,198)
19,368,409
29,744,044
51,435,336
1,483,982 1,483,365
4,151,833
23,263,486
251,151 3 647,978
29,563,381
93,105,346
$ 1,735,133 $ 5,131,343
$33�
$$ 116,368,832
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, 2020
Revenues:
Taxes:
Fuel taxes
Public utility franchise taxes
Total taxes
Licenses and permits - motor vehicle weight taxes
Intergovernmental
Charges fbr services
Other
Total revenues
Expenditures:
General government - engineering
Public safety - police traff is enfbrcement
Public safety0 protective inspection
Public safety0 traffic engineering
Highways and streets
Highways and streets - mass transit
Pension and retirement contributions
Employees' health insurance
Other
Total expenditures
Excess (deficiency) of revenues over (under)
expenditures
Other financing sources (uses) - transfers in (out) -
Transfers out - Capital Projects Fund
Deficiency of revenues and other sources
under expenditures and other uses
Fund balance at beginning of year
Fund balance at end of year
See accompanying independent auditors' report.
Actual Variance
Original Final (Budgetary Positive
Budget Bu et
__Basis _ (Negative)
$23,209,658 $ 23,209,658 $ 20,108,062 $ (3,101,596)
8,000,000
8,000,000
9,364,811
1,364,811
31,209,658
31,209,658
29,472,873
(l(A36,785)
12,000,000
12,000,000
12,042,878
42,878
1,375,000
1,375,000
2,106,115
730,105
410,000
410,000
205,065
(204,935)
130,000
135,000
102,698
(32,302)
45,124,658
45,129,658
43,929,629
(1(200,029)
894,248
1,386,779
598,667
788,112
1,318,815
1,318,805
1,185,130
133,685
41,700
49,169
45,166
4,003
9,938,757
10,788,757
9,443,179
1,345,578
16,956,293
16,661,293
12,6019629
4,059,464
7,447,185
7,447,185
7,398,172
49,013
3,609,000
3,759,000
3,461,985
297,015
1,700,000
1,550,000
1,348,434
2019566
2,022,000
1,822,000
923,502
898,488
43,927,998
44,782,998
37,006,074
7,776,924
1,196,660
346,660
6,923,555
6,576,895
(3,900,000)
(3,900,000)
(3,373,356)
526,644
(2,703,340)
(3,553,340)
3,550,199
7,103,539
14,856,061
14,856,061
14,856,061
-
$12,152,721 $
11 1802,721
$ 18,406,260
$ 7,103,539
COUNTY OF HAWAII
Sewer Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended June 30, 2020
Actual Variance
Original Final (Budgetary Positive
Budget Budget Basis)_ (Negative)
Revenues:
Intergovernmental $ - $ - $ 76,073 $ 76,073
Charges for services - sewer fees 9,562,200 9,562,200 10,186,681 624,481
Other - 8,272 8,272
Total revenues 9,562,200 9,562,200 10,271,026 708,826
Expenditures:
Sanitation
13,243,750
13,243,750
11,656,721
1,587,029
Pension and retirement contributions
1,236,673
1,236,673
979,136
257,537
Employees' health insurance
584,832
554,832
316,213
238,619
Other
681,000
711,600
303,468
408,132
Total expenditures
15,746,255
15,746,855
13,255,538
2,491,317
Deficiency of revenues under expenditures
(6,184,055)
(6,184,655)
(2,984,512)
3,200,143
Other financing sources:
Transfers in - General Fund
2,586,419
2,586,419
2,586,419
-
Excess (deficiency) of revenues and other
sources over (under) expenditures
(3,597,636)
(3,598,236)
(398,093)
3,200,143
Fund balance at beginning of year
8,665,767
8,665,767
8,665,767
Fund balance at end of year
$ 5,068,131
$ 5,067,531
$ 8,267,674
$ 3,200,143
See accompanying independent auditors' report
(
COUNTY OF HAWAII
Solid Waste Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended June 30, 2020
Revenues:
Intergovernmental
Charges for services - tipping fees
Other
Total revenues
Expenditures:
Sanitation
Pension and retirement contributions
Employees' health insurance
Other
Total expenditures
Deficiency of revenues under expenditures
Other financing sources:
Transfers in - General Fund
Excess (deficiency) of revenues and other
sources over(under)expenditures
Fund balance at beginning of year
Fund balance at end of year
See accompanying independent auditors' report
Original Final
Budget Bud et_
$ 729,883 $ 729,883
12,118,000 12,118,000
226,104 226,104
13,073,987 13,073, 987
32,968,214
32,998,214
2,119,967
2,119,967
854,400
854,400
791,950
761,950
36,734,531
36,734,531
(23,660,544)
(23,660,544)
19,862,687 19,862,687
(3,797,857)
(3,797,857)
11,236,997
11,236,997
$7,439,140
$ 7,439,140
Actual
Variance
(Budgetary
Positive
Basis)_
_(Negative)_
$ 616,470
$ (113,413)
13,507,604
1,389,604
146,997
(79,107)
14,271,071
1,197,084
31,141,638
2,082,732
821,014
494,882
34,540,266
(20,269 ,195 )
1,856,576
37,235
33,386
267,068
2,194,265
3,391,349
19,862,687 -
(406,508) 3,391,349
11,236,997 -
$10,830,489 $ 3,391,349
COUNTY OF HAWAII
Cemetery Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended June 30, 2020
Revenues -other - sale of cemetery plots
Expenditures - health, education and welfare
Excess of revenues over expenditures
Fund balance at beginning of year
Fund balance at end of year
See accompanying independent auditors' report.
Actual
Variance
Original
Final
(Budgetary
Positive
Budget_
Budget
_ Basis
(Negative)_
$ 10,000
$ 10,000
$ 9,500
$ (500)
10,000
10,000
10,000
-
9,500
9,500
152,409
152,409
152,409
-
$ 152,409
$ 152,409
$ 161,909
$ 9,500
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, 2020
Revenues - Charges for services - highways and streets
Excess of revenues over expenditures
Fund balance at beginning of year
Fund balance at end of year
See accompanying independent auditors' report.
Original Final
Budget Budget
Actual
Variance
(Budgetary
Positive
Basis)_(Negative)_
$ - $ $ 15,591 $ 15,591
- mm 15,591 15,591
299,059 299,059 299,059
$299,059 $ 299,059 $ 314,650 $ 15,591
125-
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, 2020
Actual Variance
Original Final (Budgetary Positive
Budget __Budget _Basis)_ (Negative)_
Revenues:
Licenses and permits - vehicle disposal fee
$ 2,300,000
$ 2,300,000
$ 2,364,625 $
64,625
Charges for services - towing charges
2,000
2,000
4,957
2,957
Miscellaneous
21,200
21,200
3,460
(17,740)
Total revenues
2,323,200
2,323,200
2,373,042
49,842
Expenditures:
Sanitation
2,901,510
2,901,510
1,367,489
1,534,021
Pension and retirement contributions
37,600
37,600
26,426
11,174
Employees' health insurance
25,000
25,000
11,494
13,506
Other
8,500
8,500
-
8,500
Total expenditures
2,972,610
2,972,610
1,405,409
1,567,201
Excess (deficiency) of revenues
$9,302,355
$ 9,302,355
$ 11,035,612
$ 1,500,829
over (under) expenditures
(649,410)
(649,410)
967,633
1,617,043
Other financing (uses) - transfers (out) -
Transfers out - Serial Bond Redemption Fund
(325,000)
(325,000)
(247,352)
77,648
Transfers out - Interest Fund
(90,000)
(90,000)
(51,434)
38,566
Deficiency of revenues and other sources
under expenditures and other uses
(1,064,410)
(1,064,410)
668,847
1,500,829
Fund balance at beginning of year
10,366,765
10,366,765
10,366,765
-
Fund balance at end of year
$9,302,355
$ 9,302,355
$ 11,035,612
$ 1,500,829
See accompanying independent auditors' report.
1Z6-
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, 2020
Revenues - licenses and permits - bicycle tax
Expenditures - highways and streets
Excess (deficiency) of revenues over (under)
expenditures
Fund balance at beginning of year
Fund balance at end of year
See accompanying independent auditors' repot.
Actual
Original Final (Budgetary
Budget Budget Basis_
$ 73,000 $ 73,000 $ 52,914
226,000 226,000 28,000
(153,000) (153,000) 24,914
650,370 650,370 650,370
$497,370 $497,370 $675,284
Elm
Variance
Positive
Ne ative
$ (20,086)
198,000
177,914
$177,914
COUNTY OF HAWAII
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 30, 2020
See accompanying independent auditors' report.
129
Actual
Variance
Original Final
(Budgetary
Positive
BudgetBudget
Basis
_(Negative)—
Ne ativeRevenues
Revenues - intergovernmental
$ - $ 1,216,978
$ 531,206
$ (687,772)
Expenditures;
Health, education and welfare
- 1,216,978
543,175
675,803
Pension and retirement contributions
- -
(10,569)
11,569
Employees' health insurance
- -
400)
400
Total expenditures
- 1,218,978
531,206
687,772
Excess of revenues over expenditures
Fund balance at beginning of year
-
-
-
Fund balance at end of year
$ - $ -
$ -
$ -
See accompanying independent auditors' report.
129
COUNTY OF HAWAII
Golf Course Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended June 30, 2020
Actual Variance
Original Final (Budgetary Positive
Budget Budget Basis) —(Negative)_
Revenues:
Charges for services $ 852,277 $ 502,277 $ 593,127 $ 90,850
Expenditures:
Culture and recreation
Pension and retirement contributions
Employees' health insurance
Other
Total expenditures
Deficiency of revenues under expenditures
Other financing sources:
Transfers in - General Fund
Excess of revenues and other sources
over expenditures
Fund balance at beginning of year
Fund balance at end of year
1,093,604
1,118,380
1,067,178
51,202
260,102
262,302
261,468
834
118,000
120,600
120,504
96
30,776
1,200
-
1,200
1,502,482
1,502,482
1,449,150
53,332
(650,205)
(1,000,205)
(856,023)
144,182
650,205 1,000,205 1,000,205
144,182 144,182
(22,597) (22,597) (22,597) -
$ (22,597) $ (22,597) $ 121,585 $ 144,182
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
is resulting in the negatvie fund balance shown above.
COUNTY OF HAWAII
Geothermal Relocation and Community Benefits Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended June 30, 2020
Revenues
Miscellaneous:
Geothermal royalties
Expenditures:
General government:
Planning and zoning
Excess (deficiency) of revenues over
(under) expenditures
Fund balance at beginning of year
Fund balance at end of year
See accompanying independent auditors' report.
Actual Variance
Original Final (Budgetary Positive
Budget _Bud et Basis) 1 e ative
$ 300,000 $ 300,000 $ $ (300,000)
700,000 700,000 - 700,000
(400,000) (400,000) - 400,000
4,274,235 4,274,235 4,274,235
$3,874,235 $ 3,874,235 $ 4,274,235 $ 400,000
COUNTY OF HAWAII
Beautification Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended lune 30, 2020
See accompanying independent auditors' report.
Actual
Variance
Original
Final
(Budgetary
Positive
Budget_
Bud et
Basis
(Negative)
Revenues - licenses and permits - highway
beautification
$ 191,000
$ 191,000
$ 197,043
$ 6,043
Expenditures:
Highways and streets
236,300
236,300
138,614
97,686
Culture and recreation
157,650
157,650
38,493
119,157
Total expenditures
393,950
393,950
177,107
216,843
Deficiency of revenues under expenditures
(202,950)
(202,950)
19,936
222,886
Fund balance at beginning of year
465,683
465,683
465,683
-
Fund balance at end of year
$ 262,733
$ 262,733
$ 485,619
$222,886
See accompanying independent auditors' report.
COUNTY OF HAWAII
Hawaii County Housing Agency
Schedule of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended June 30, 2020
Expenditures:
Health, education and welfare
23,337,190
25,057,129
Actual
Variance
Pension and retirement contributions
Original
Final
(Budgetary
Positive
Employees' health insurance
Budd
_ Budget
_ Basis)
(Negative)_
Total expenditures
24,651,115
26,371,054
Revenues:
2,382,479
Deficiency of revenues under expenditures
(2,283,619)
(2,374,551)
Intergovernmental -
1,195,712
Other financing sources - transfers in -
Federal - HUD - Voucher program
$ 20,783,442
$ 22,412,449
$ 22,248,891
$ (163,558)
Investment earnings
1,620
1,620
3,811
2,191
Resale of property
-
-
40,000
40,000
Other
1,582,434
1,582,434
517,034
(1,065,400)
Total revenues
22,367,496
23,996,503
22,809,736
(1,186,767)
Expenditures:
Health, education and welfare
23,337,190
25,057,129
22,791,508
2,265,621
Pension and retirement contributions
901,575
901,575
835,833
65,742
Employees' health insurance
412,350
412,350
361,234
51,116
Total expenditures
24,651,115
26,371,054
23,988,575
2,382,479
Deficiency of revenues under expenditures
(2,283,619)
(2,374,551)
(1,178,839)
1,195,712
Other financing sources - transfers in -
Transfers in - General Fund
2,283,619
2,289,619
1,517,810
(771,809)
Excess (deficiency) of revenues and other sources
over (under) expenditures
-
(84,932)
338,971
423,903
Fund balance at beginning of year
2,565,555
2,565,555
2,565,555
-
Fund balance at end of year $
2,565,555
$ 2,480,623
$ 2,904,526
$ 423,903
See accompanying independent auditors' report.
COUNTY OF HAWAII
Park Dedication Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended June 30, 2020
Revenues - investment earnings
Excess of revenues over expenditures
Other financing (uses) - transfers (out) -
Transfers out - Serial Bond Redemption Fund
Deficiency of revenues and other sources
under expenditures and other uses
Fund balance at beginning of year
Fund balance at end of year
See accompanying independent auditors' report.
Actual Variance
Original Final (Budgetary Positive
Budget Bu et Basis�.-..
(Negative)_
$ 802 $ 802
- 802 802
(32,000) (31,055) 945
- (32,000) (30,253) 1,747
91,351 91,351 91,351 -
$ 91,351 $ 59,351 $ 61,098 $ 1,747
= 133
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 lune 30, 2020
Revenues - GET surcharge
Expenditures:
Highways and streets - mass transit
Pension and retirement contributions
Employees' health insurance
Other
Total expenditures
Excess (deficiency) of revenues over (under)
expenditures
Other financing sources (uses) - transfers in (out) -
Transfers out - Capital Projects Fund
Transfers out - Serial Bond Redemption Fund
Transfers out - Interest Fund
Deficiency of revenues and other sources
under expenditures and other uses
Fund balance at beginning of year
Fund balance at end of year
See accompanying independent auditors' report
= 134-
Actual
Variance
Original
Final
(Budgetary
Positive
Budget_Bud
q
_ Basis)
(Negative)
$ 32,000,000
32,000,000
37,948,026
5,948,026
11,235,956
11,235,956
5,096,020
6,139,936
325,000
325,000
257,178
67,822
120,000
120,000
76,853
43,147
59,044
59,044
14,988
44,056
11,740,000
11,740,000
5,445,039
6,294,961
20,260,000
20,260,000
32,502,987
12,242,987
(12,660,000)
(12,660,000)
(12,660,000)
-
(5,600,000)
(5,600,000)
(5,600,000)
-
(2,000,000)
(2,000,000)
(2,000,000)
-
-
-
12,242,987
12,242,987
6,041,181
6,041,181
6,041,181
-
$ 6,041,181
$ 6,041,181
$ 18,284,168
$ 12,242,987
= 134-
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, 2020
Revenues:
Licenses - ST vacation rental fees
Fines and forfeitures
Total revenues
Expenditures:
General government:
ST vacation rental enforcement
Pension and retirement contributions
Employees' health insurance
Other
Total expenditures
Excess (deficiency) of revenues over
(under) expenditures
Fund balance at beginning of year
Fund balance at end of year
See accompanying independent auditors' report_
Actual Variance
Original Final (Budgetary Positive
Budget Budget_ Basis _ _(Negative)_
$800,000 $ 800,000
45,850 45,850
845,850 845,850
$ 1,788,250 $ 988,250
- (45,850)
1,788,250 942,400
672,850
672,850
361,044
311,806
91,900
91,900
6,065
85,835
65,500
65,500
626
64,874
15,600
15,600
-
15,600
845,850
845,850
367,735
478,115
-
1,420,515
1,420,515
251,151
251,151
251,151
-
$251,151
$ 251,151
$1,671,666
$ 1,420,515
Assets
Cash and cash equivalents
Investments
Due from other agency funds
Other receivables
Total assets
Liabilities
Vouchers payable
Due to other agency funds
Accrued liabilities
Advances payable
Assets held for the benefit of
improvement districts
Total liabilities
COUNTY OF HAWAII
Agency Funds
Combining Statement of Agency Funds Net Position
June 30, 2020
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
$2,107,133 $ 508,920 $ 397,109 $ 276,264 $ 148,336 $ 216,43d
- - 250,248 - 35,220 -
5,931 6,476 28 257 232
$2,107,133 $ 514,851 $ 653,833 $ 276,292 $ 183,813 $ 216,663
- - - - - 8,400
2,107,133 7,195 5,606 - - 104
- 13,075 10,969 - - 208,159
See accompanying independent auditors' report.
- 494,581 637,258 276,292 183,813 -
107�133 $ 514,851 $ 653,833 $ 276,292e $ 183,813$ 216,663
- 136
Non -Profit
Organ and
Business
Payroll Flexible Lapsed License
Tissue
Improvement
Clearance Spending Warrants Plates
Education
District
Fund Account Fund Fund
Fund
1 - Kailua Total
114,205 $ 380,702 $ 365,298 $ 11,355 $ 4,793 $ 324 $ 4,530,870
- - 285,468
- - 15,396 - - - 15,396
7,093 37,826 - 10,891 68,734
$ 121,298 $ 380,702 $ 419,520 $ 11,355 $ 4,793 $ 11,215 $ 4,900,468
2,258 $ - $ $ $ - $ - $ 2,258
6,856 - - 140 - - 15,396
112,184 380,702 418,520 11,215 4,793 324 3,047,776
- - - - 232,203
- - - - 10,891 1,602,835
$ 121,298'--i- "
380,702$ 419,520 $ 11,355 $ 4,793 $ 11,215 $ 4,900,468
MMM
- 438
COUNTY OF HAWAII
Agency Funds
Combining Statement of Changes in Assets and Liabilities
For the Fiscal Year Ended June
30, 2020
Balance
Balance
July 1,
June 30,
2019
Addifigm
Deductions
2020
State Weight Tax Fund
Assets
Cash and cash equivalents
$1,775,915
$ 24,623,876
$
24,292,658
$2,107,133
Liabilities
Vouchers payable
$
$ 24,152,768
$
24,162,768
$ -
Due to other agency funds
8
-
8
-
Accrued liabilities - due to State of Hawaii 1,775,907
24,625,294
24,294,068
2,107,133
Total liabilities
$1,775,915
$ 48,778,062
$
48,446,844
$2,107,133
Improvement District No. 18 Fund
Assets,
Cash and cash equivalents
$ 515,498
$ 153,882
$
160,460
$ 508,920
Other receivables
6,182
155,780
156,034
5,931
Total assets
$ 521,680
$ 309,662
$
316,491
$ 514,851
Liabilities
Vouchers Payable
$ -
$ 410
$
410
$ -
Due to other non -agency funds
1,341
1,264
1,341
1,264
Accrued liabilities
6,182
122,106
122,357
5,934
Advances payable
15,224
-
2,149
13,075
Assets held for the benefit
of improvement districts
498,933
122,358
126,710
494,581
Total liabilities
$ 521,680
$ 246,138
$
252,967
$ 514,854
- 438
COUNTY OF HAWAII
Agency Funds
Combining Statement of Changes in Assets and Liabilities
For the Fiscal Year Ended June 30, 2020
-139-
Balance
Balance
July 1,
June 30,
2019
Additions
Deductions
2020
Improvement District No. 19 Fund
Assets
Cash and cash equivalents
$
364,999
$
99,459
$
67,349
$
397,109
Investments
250,060
188
-
250,248
Due from other non -agency funds
14,227
-
14,227
Other receivables
8,281
69,338
71,143
6,476
Total assets
$
637,567
$
168,985
$
152,719
$
653,833
Liabilities
Vouchers Payable
$
-
$
2,296
S
2,296
$
-
Due to other non -agency funds
1,769
1,673
1,769
1,673
Accrued liabilities
5,754
66,795
68,616
3,933
Advances payable
9,880
10,969
9,880
10,969
Assets held for the benefit
of improvement districts
620,164
74,466
57,372
637,258
Total liabilities
$
637,567
$
156,199
S
139,933
S
653,833
Improvement District No. 20 Fund
Assets
Cash and cash equivalents
$
14,746
$
263,748
$
2,230
$
276,264
Investments
225,000
-
225,000
-
Other receivables
579
28
579
28
Total assets
$
240,325
$
263,776
S
227,809
$
276,292
Liabilities
Vouchers Payable
$
75,000
$
-
$
75,000
$
-
Advances payable
2,148
-
2,148
-
Assets held for the benefit
of improvement districts
163,177
113,197
82
276,292
Total liabilities
S
240,325
$
113,197
S
77,230
$
276,292
-139-
COUNTY OF HAWAII
Agency Funds
Combining Statement of Changes in Assets and Liabilities
For the Fiscal Year Ended June 30, 2020
Improvement District Revolving Fund
Mn
Cash and cash equivalents
Investments
Other receivables
Total assets
Liabilities
Assets held for the benefit
of improvement districts
Performance and Refundable
Deposits Fund
Assets
Cash and cash equivalents
Due from other non -agency funds
Liabilities
Vouchers payable
Due to other agency funds
Due to other non -agency fiends
Advances payable
Total liabilities
Balance Balance
July I, June 30,
2019 Additions Deductions 2020
$ 10,478 $ 137,858 $ $ 148,336
169,949 134,729 35,220
519 257 519 257
$ 180,946 $ 138,115 $ 135,248 $ 183,813
$ 180,946 $ 2,867 $ $ 183,813
$ 332,554 $
432,555
$
548,678
$ 216,431
$
75,487
$
75,255
232
$ 332,554 $
508,042
$
623,933
$ 216,663
$ - $ 539,689 $ 539,689 $ -
5,850 8,400 5,850 8,400
104 - 104
326,704 423,493 542,038 208,159
$ 332,554 $ 971,686 $ 1,087,577 $ 216,663
-140-
COUNTY OF HAWAII
Agency Funds
Combining Statement of Changes in Assets and Liabilities
For the Fiscal Year Ended June 30, 2020
Liabilities
Balance
Balance
July 1,
Vouchers payable
June 30,
1,315
2019
Additions
Deductions
2020
Payroll Clearance Fund
Due to other agency finds
1,224
Assets
1,224
6,856
Due to other non -agency funds
Cash and cash equivalents
$ 554,271
$ 331,599,469
$ 332,039,535
$ 114,205
Due from other non -agency finds
-
317,794,554
317,790,666
3,888
Other receivables
3,205
-
-
3,205
Total assets
$ 557,476
$ 649,394,023
$ 649,830,201
$ 121,298
Liabilities
Vouchers payable
$
1,315
$
163,576,141
$ 163,575,198
$
2,258
Due to other agency finds
1,224
6,856
1,224
6,856
Due to other non -agency funds
-
2,176
-
2,176
Accrued liabilities
554,937
363,283,873
363,728,802
110,008
Total liabilities
$
557,476
$ 526,869,046
$ 527 305,224
$
121,298
Flexible Spending Account
Assets
Cash and cash equivalents
$
382,314
$
433,474
$ 435,086
$
380,702
Liabilities
Accrued liabilities
$
382,314
$
433,474
$ 435,086
$
380,702
Lapsed Warrants Fund
Assets
Cash and cash equivalents
$
346,242
$
20,884
$ 1,828
$
365,298
Due from other agency finds
7,242
15,396
7,242
15,396
Due from other non -agency finds
13,429
37,826
13,429
37,826
Total assets
$
366,913
$
74,106
$ 22,499
$
418,520
Liabilities
Vouchers payable
$
-
$
1,603
$ 1,603
$
-
Accrued liabilities
366,913
65,436
13,829
418,520
Total liabilities
$
366,913
$
67,039
$ 15,432
$
418,520
Sim
COUNTY OF HAWAII
Agency Funds
Combining Statement of Changes in Assets and Liabilities
For the Fiscal Year Ended June 30, 2020
Non -Profit License Plates Fund
Assets
Cash and cash equivalents
Liabilities
Vouchers payable
Due to other agency funds
Accrued liabilities;
Due to non-profit agency
Total liabilities
Balance Balance
July I, June 30,
2019 Additions Deductions 2020
$ 18,580 $ 69,210 $ 76,435 $ 11,355
$ $ 75,925 $ 75,925 $
160 140 160 140
18,420 69,070 76,275 11,215
$ 18,580 $ 145,135 $ 152,360 $ 11,355
Organ and Tissue Education Fund
Assets
Cash and cash equivalents $ 2,001 $ 12,066 $ 9,274 $ 4,793
Liabilities
Vouchers payable $ - $ 9,226 $ 9,226 $ -
Accrued liabilities - due to State of Hawaii 2,001 12,066 9,274 4,793
Total liabilities $ 2,001 $ 21,292 $ 18,500 $ 4,793
Business Improvement District 1-Kailua
Assets
Cash and cash equivalents
Other receivables - BID I-Kailua Assessment
Due from other non -agency funds
Total assets
Liabilities
Vouchers payable
Accrued liabilities - due to KVBID
Accrued liabilities
Assets held for the benefit
of improvement districts
Total liabilities
$ 944 $ 1,105,434 $ 1,106,054 $ 324
6,048 1,243,001 1,238,158 10,891
121,914 121,914 -
$ 6,992 $ 2,480,349 $ 2,476,126 $ 11,215
$ - $ 1,102,066
944 324
8
$ 1,102,066 $ -
944 324
8
6,048 834,478 829,635 10,891
$ 6,992 $ 1,936,876 $ 1,932,653 $ 11,215
COUNTY OF HAWAII
Agency Funds
Combining Statement of Changes in Assets and Liabilities
For the Fiscal Year Ended June 30, 2020
Balance Balance
July 1, June 30,
2019 Additions Deductions 2020
Total - All Agency Funds
Assets
Cash and cash equivalents
$4,318,542
$ 358,961,915
$ 358,749,587
$4,530,870
Investments
645,009
188
359,729
285,468
Due from other agency funds
7,242
15,396
7,242
15,396
Due from other non -agency funds
27,656
318,029,781
318,015,491
41,946
Other receivables - BID I-Kailua Assessment
6,048
1,243,001
1,238,158
10,891
Other receivables
18,766
225,403
228,272
15,897
Total assets
$5,023,263
$ 678,475,684
$ 678,598,479
$4,900,468
Liabilities
Vouchers payable
$ 76,315
$ 189,460,124
$ 189,534,181
$ 2,258
Due to other agency funds
7,242
15,396
7,242
15,396
Due to other non -agency funds
3,110
5,217
3,110
5,217
Accrued liabilities
1,316,100
363,971,692
364,368,698
919,094
Accrued liabilities -due to non-profit agency
18,420
69,070
76,275
11,215
Accrued liabilities - due to State of Hawaii
1,777,908
24,637,360
24,303,342
2,11 1,926
Accrued liabilities - due to KVBID
944
324
944
324
Advances payable
353,956
434,462
556,215
232,203
Assets held for the benefit
of improvement districts
1,469,268
1,147,366
1,013,799
1,602,835
Total liabilities
$5,023,263
$ 579,741,011
$ 579,863,806
$ 4,900,468
See accompanying independent auditors' report.
MM
COUNTY OF HAWAII
Private Purpose Trusts
Combining Statement of Private Purpose Trust Net Position
Assets
Cash and cash equivalents
Investments
Interest receivable
Total assets
Net Position
Held in trust fbr other parties
Total net position
See accompanying independent auditors' report.
June 30, 2020
$ 2,218 870 $ 2,558672 $ 4,777 542
$ 212181870 $ 21558,672 $ 4,777 542
9M
Shippers'
Total
Geothermal
Wharf
Private
Asset
Trust
Purpose
Fund
Fund
Trusts
$ 1,818,326
$ 763,469
$ 2,5819795
397,646
1,795,203
2,192,849
2,898
-
2,898
$ 2,216,870
$ 2,558,672
$ 417772542
$ 2,218 870 $ 2,558672 $ 4,777 542
$ 212181870 $ 21558,672 $ 4,777 542
9M
COUNTY OF HAWAII
Private Purpose Trusts
Combining Statement of Changes in Private Purpose Trust Net Position
For the Fiscal Year Ended June 30, 2020
Shippers' Total
Geothermal Wharf Private
Asset Trust Purpose
Fund Fund Trusts
Additions
Contributions:
Puna Geothermal Venture
Investment earnings;
Net increase (decrease) in fair value of
investments
Dividends
Interest
Total additions
Deductions
Grant payments
Investment Fees
Total deductions
Change in net position
Net position, beginning of year
Net position, end of year
See accompanying independent auditors' report.
$ 50,000
$
$ 50,000
11,651
65,657
77,308
-
44,643
44,643
21,998
2,650
24,649
83,649
112,950
196,600
45,724
45,724
14,273
14,273
-
59,997
59,997
83,649
52,954
136,603
2,135,221
.21505,718
_4,640,939
$ 2,218,870
$ 2,558,672
$ 4,777,542
This page intentionally left blank.
-146-
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.
147
Revenue Capacity — These schedules contain information to help the reader assess the County's
most significant local revenue source, the property tax.
152
Debt Capacity-- -,, 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.
158
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.
161
Operating Information These schedules contain service and infi-astructure 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.
163
Governmental activities
Net investment in capital assets
Restricted
Unrestricted"'
Total governmental activities net position
Business -type activities
Net investment in capital assets
Restricted
Unrestricted
Total business -type activities net position
Primary government
Net investment in capital assets
Restricted
Unrestricted
Total primary government net position
COUNTY OF HAWAII
Net Position by Component
Last Ten Fiscal Years
2011 2012 2013, as 2014 2015 2016,as 2017, as 2018 2019 2020
restated restated restated
S514,309,238 S594,384,524 S699,326,156 S734,889,023 S748,754,727 5824,846,090 S835,787,961 5840,099,433 S866,986,564 S891,782,081
51,840,697 48,360,223 64,437,707 89,620,936 74,813,856 74,694,901 70,439,580 91,458,455 83,230,067 94,431,592
40,287,046 39,340,897 181,055 (18,007,624) (351,386,671) (403,934,491) (745,796,790) (741,538,872) (822,112,134) (835,802L574)
S606,436 281 S682,085,644 _5763,944,918 5806,50231 35 5472,181,912 S495,606 500 5160,430,751 S140 0, 19,016 5128,104,497 5150,411,099
S 308,966 S 315,848 S 315,255 S 368,849 S 428,815 S 481,039 S 524,292 S 595,538 $ 667,777 $ 1,334,932
185,087 185,148 - - - - - -
449,581 455,918 I 45,190 1,093,750 1,040,216 1,036,870 1,022,523 1,118,492 1,217,201 1,277,986
$ 943,634 S 956,914 S 1,360,445 S 1,462,599 S 1,469,031 S 1,517,909 S 1,546,815 S 1,714,030 S 1,884,978 S 2,612,918
S514,618,204
S594,700,372
S699,641,411
S735,257,872
S749,183,542
S825,327,129
S836,312,253
S840,694,971
S867,654,341
S893,117,013
52,025,784
48,545,371
64,437,707
89,620,936
74,813,856
74,694,901
70,439,580
91,458,455
83,230,067
94,431,592
40,736,627
39,796,815
11226,245
(16,913,874)
(350,346,455)
(402,897,621)
(744,774,267)
(790,420,380)
(820,894,933)
(834,524,588)
5607 3, 801615
S683042558
57651305 363
S807.964.934
S473,.6&943
S497Z124j409
S161,977,566
S141733046
S129,989,475
S153,1�4 017
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 Pensions — an amendment of GASB Statement No. 27 and
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 not been adjusted for the implementation of GASB Statement No. 75, Accountingand Financial Reporting for Posiemployment Benefits Other Than Pensions.
ITx
COUNTY OF HAWAPI
Changes in Net Position
Last Ten Fiscal Years
2011 2012 2013, as 2014 2015 2016, as 2017 2018 2019 2020
restated restated
Program Revenues
Governmental activities
Charges I b r services -
372,599
393,464
432,057
468,018
453,304
457,842
469,082
503,597
510,352
482,150
General government
$ 1,856,795
$ 2,306,855
$ 1,695,152
$ 2,495,917
$ 2,246,106
$ 2,659,984
$ 2,791,430
$ 2,334,119
$ 2,149,353
$ 4,320,738
Public safiery
4,447,120
5,136,278
5,117,102
5,562,424
5,926,316
5,594,344
5,739,064
6,114,204
6,220,940
5,917,482
Highways and streets
9,800,983
10,544,711
10,159,443
13,901,679
16,043,045
16,965,449
16,712,641
17,295,316
17,870,107
16,585,633
Health, education and welfare
424,107
454,913
570,312
559,381
548,781
523,824
1,305,662
923,654
1,320,363
2,522,672
Culture and recreation
1,626,178
1„601,195
1,794,553
1,954,213
2,150,900
1,951,553
1,844,380
1,999,177
1,940,302
1,451,429
Sanitation
15,889,364
14,831,846
15,593,933
16,426,521
17,816,818
19,011,328
20,896,167
21,910,253
25,858,609
25,678,374
Operating grants and contributions
50,820,951
45„767,655
44,410,353
42,957,370
47,406,704
47,234,458
52,897,945
57,600,066
64,285,842
75,553,629
Capital grants and contributions
38,810,806
86,754,033
107,584,670
62,370,497
29,621,907
60,230,846
14,784,692
31,530,719
28,375,566
43,498,993
Total governmental adivitesProgram revenues
123,676,304
167,397,486
186,925,518
146,228,002
121,760,577
154,171,786
116,971,981
139,707,508
148,021,082
175,528,950
Business -type activities:
Charges for services:
Health, education and welfare
372,599
393,464
432,057
468,018
453,304
457,842
469,082
503,597
510,352
482,150
i Operating grants and contributions
133,215
131,227
123,800
127,119
113,642
133,932
132,435
224,921
261,848
269,273
�. Capital grants and contributions
34,812,165
42,462,299
42,219,903
38,670,145
45,989,038
45,255,305
51,368,841
-
62,066,700
616,776
4" Totalbusiness-typeactividesprogram revenues
00
505,814
524,691
555.857
595,137
566,946
591,774
601,517
728,518
772,200
1,368,199
I Total primary grovemment program revenues
$ 124,182,118
$ 167,922,177
$ 187,481,375
$ 146,823,139
S 122,327,523
$ 154,763,560
S 117,573,498
S 140,436,026
$ 148,793,282
$ 176,897,149
Expenses
Governmental activities:
General government
$ 53,439,428
$ 56,115,599
$ 55,616,102
$ 59,448,042
$ 69,859,089
$ 65,064,440
$ 72,836,020
$ 75,740,262
S 88,660,088
$ 86,747,456
Public safety
154,008,027
152,288,979
151,975,049
163,889,113
175,104,223
187,160,903
229,507,091
245,139,168
248,111,465
274,259,439
Highways and streets
34,812,165
42,462,299
42,219,903
38,670,145
45,989,038
45,255,305
51,368,841
54,728,332
62,066,700
67,161,387
Health, education and welfare
30,336,420
28,127,691
28,001,020
28,343,056
34,304,166
39,722,480
40,299,077
35,597,718
37,919,675
37,042,326
Culture and recreation
22,167,818
23,412,948
22,121,336
25,590,117
32,225,574
27,315,451
35,213,973
35,834,512
35,908,061
33,613,224
Sanitation
35,604,394
35,049,546
38,505,086
48,721,810
41,467,081
48,521,434
56,605,864
55,025,011
62,775,074
68,870,497
Internal activity
-
-
-
-
-
-
-
-
--
616,776
Interest on long-term debt
15,176,682
14, 519,382
14, 301,921
12,911,436
12,362,411
11,162,756
13,385,794
15,493,678
13,277,652
14,178,476
Total governmental activities expenses
345,544,934
351,976,444
352,740,417
377,573,719
411,311,582
424,202,769
499,216,660
517,558,681
548,718,715
582,489,581
Business -type activities
Health, education and welfare
550,801
517,052
496,017
494,722
561,813
544,808
573,854
566,864
609,486
645,452
Total business -type activities expenses
550,801
517,052
496,017
494,722
561,813
544,808
573,854
566,864
609,486
645,452
Total primaiy government expenses
$ 346,095,735
$ 352,493,496
$ 353,236,434
$ 378.068,441
$ 411,873,395
$ 424,747,577
$ 499,790,514
S 518,125,545
$ 549,328,201
S 583,135,033
Net Expense
Governmental activities
$(221,868,630)
S(184,578,958)
$(165,814,899)
$(231,345,717)
$(289,551,005)
$(270,030,983)
$(382,244,679)
$(377,851,173)
$(400,697,633)
$(406,960,631)
Business -type activities
(44,987)
7.639
59,840
100,415
5,133
46,966
27,663
161,654
162,714
722,747
Total primatygovernment net expense $(221,913,617) $(184,571,319) $(165,755,059) $(231,245,302) $(289,545,872) $(269,984,017) $(382,217,016) $(377,689,519) 400,534,919) 406,237,884)
Continued next page.
General Revenues and Other Changes in Net Position
Tablet
Governmental activities:
General revenues
Property taxes
S 225,055,099
S 209,894,427
S 200,775,779
S 221,260,681
S 237,217,225
$ 248,353,113
S 268,869,322
$ 304,294,883
$ 315,969,118
$ 333,515,661
Public seivice company taxes
9,296,852
9,896,715
10,766,021
10,380,341
10,385,654
9,800,948
8,423,340
7,611,856
8,493,409
8,862,416
Public utility franchise taxes
9,415,624
11,065,112
11,087,369
10.792,967
10,824,278
9,004,330
7,950,750
8,331,390
9,441,986
9,364,811
Fuel taxes
7,603,501
8,293,200
6,352.944
7,373,475
7,632,973
7,933,810
8,288,676
13,342,416
17,343,326
20,108,062
General excase tax surcharge
_
-
-
-
-
-
12,518,126
35,537,945
Giants and contributions not restricted to
specific programs
19,533,165
19,074,105
17,750,132
17,705,917
19,506,423
19,557,513
19,810,090
19,678,289
19,748,211
16,530,357
Investment earnings (loss)
609,617
230,804
(81.020)
815,606
671,363
316,593
661,184
1,841,356
3,420,693
3,220,862
Other
5,973,275
1,773,258
2,320,838
5,574,147
8,364,894
12,081,055
7,092,071
2,339,248
1,848,245
2,127,119
Total governmental activities
277,487,133
260,227,621
248,972,063
273903,134
294,602,810
307,047,362
321,095,433
357,439,438
388,783,114
429,267,233
Business -type activities:
General revenues
investment earnings
2,997
5,641
1,416
1,739
1,299
1,912
1,243
5,561
8,234
5,193
Other
-
342,275
-
-
-
-
-
-
Total business -type activities
2,997
5,641
343,691
1,739
1,299
1,912
1,243
5,561
8,234
5,193
Total primary government
$ 277,490,130
$ 260,233,262
$ 249,315.754
$ 273,904,873
$ 294,604,109
$ 307,049,274
S 321,096,676
S 357,444,999
S 388,791,348
S 429272,426
Changes In Net Position
Governmental activities
S 55,618,503
$ 75,648,663
$ 83,157,164
$ 42,557,417
S 5,051,805
S 37,016,379
$ (61,149,246)
$ (20,411,735)
$ (11,914,519)
$ 22,306,602
Business -type activities
(41,990)
13,280
403,531
102,154
6,432
48,878
28,906
167,215
170,948
727,940
ToWpumuygovemmentchangesinnet position $ 55,576,513 $ 75,661,943 $ 83,560,695 $ 42,659,571 $ 5,058,237 S 37,065,257 S (6 .12Q340) S (20,244,521) S (11,743,571) S 23,034,542
Unaudited - see accompanying independent auditors' teport.
COUNTY OF HAWAII
Fund Balances, Governmental Funds
(Modified accrual basis of accounting)
Last Ten Fiscal Years
Unaudited - see accompanying independent auditors' report.
' Amount for fiscal year 2014 has been changed for consistency
2011
2012
2013
2014_
2015
2016
2017
2018
2019
2020
General Fund:
Nonspendable
S 2,835,361
S 3,304,551
S 3,492,464
S 3,794,963
S 3,573,745
S 5,774,378
S 5,561,433
S 6,714,871
S 7,297,830
S 8,187,482
Restricted
4,296,363
3,693,958
4,863,905
5,459,350
4,554,871
9,022,303
15,112,054
16,800,709
26,442,653
15,297,680
Committed
8,756,426
11,710,875
12,065,528
12,794,782
12,925,579
13,537,067
14,013,997
14,533,506
16,210,151
14,518,216
Assigned
17,960,596
21,840,843
24,832,390
31,673,075
30,933,049
25,518,510
13,059,474
19,876,560
23,117,329
45,992,917
Unassigned
10,809,404
8,176,727
8,694,320
1,824,889
164,148
-
3,114,478
3,119,779
862,773
Total general Hand
44,658,150
48,726,954
53,948,607
55,547,059
52,151,392
53,852,258
47,746,958
61,040,124
76,188,742
84,859,068
All other Government Funds:
Restricted
77,739,628
71,033,712
104,886,880
107,165,275
82,232,158
92,746,678
70,397,886
108,275,893
101,546,715
138,675,147
Committed
40,148,878
36,866,120
29,502,567
38,029,424
41,125,668
41,258,644
39,299,995
40,851,304
44,167,734
45,977,492
Assigned'
-
-
6,914,320
5,216,981
-
3,968,524
4,009,520
3,039,319
2,555,817
-
Unassigned
(3,609.332)
(10,258,317)
-
(14,958,045)
-
-
(35,855)
(22,597)
(18,472,707)
Total of other governmental funds
114,279,174
97,641,515
141,303,767
150,411,680
108,399,781
137,973,846
113,707,401
152,130,661
148,247,669
166,179,932
Total Fund Balances
S 158,937,324
S 146,368,469
S 195,252,374
$205,958,739
S 160,551,173
S 191,826,104
S 161,454,359
$213,170,785
S224,436,411
$251,039,000
Unaudited - see accompanying independent auditors' report.
' Amount for fiscal year 2014 has been changed for consistency
Table 4
COUNTY OF HAWAII
Changes in Fund Balances, Governmental Funds
(Modified accrual basis of accounting)
Last Ten Fiscal Years
(Amounts in thousands)
Unaudited - see accompanying independent auditors' report.
' Amount for fiscal year 2014 has been changed fur consistency
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Revenues:
Property tax
5216,511
5208,231
5201,201
5223,482
5236,190
5249,054
S266,517
5301,699
5313,631
5327,886
Public service company tax
9,297
9,897
10,766
10,380
10,386
9,801
8,423
7,612
8,494
8,862
Fuel tax
7,603
8,293
6,353
7,373
7,633
7,934
8,289
13,342
17,343
20,108
Public utility fianchise tax
9,416
11,065
11,087
10,793
10,824
9,004
7,951
8,331
9,442
9,365
Licenses and permits
15,097
15,790
15,991
19,618
22,046
22,432
22,932
24,066
24,653
25,155
General excise tax surcharge
12,518
35,538
Intergovernmental
93,748
100,867
79,912
75,257
86,272
85,173
79,220
90,025
101,627
113,632
Charges for services
16,416
16,885
17,055
19,392
20,357
21,672
21,708
23,553
27,516
30,080
Investment earnings (loss)'
510
406
(618)
1,704
716
614
632
1,592
4,148
3,481
Settlement contributions
-
12,500
-
-
-
Other
7,874
4 201
4,399
30,084
9,769
16,132
11,791
4,832
4,643
4,174
Total Revenues
376,472
375,635
358,646
398,083
404,193
421,816
427,463
475,052
524,015
578,281
Expenditures:
Current:
General government
34,251
35,088
33,360
36,679
40,805
40,488
40,819
41,571
41,800
47,383
Public safety
104,917
104,523
106,885
111,221
122,819
127,451
136,163
137,718
145,094
154,921
Highways and stress
17,114
17,338
17,923
20,270
20,984
22,479
20,329
21,401
27,448
27,962
Sanitation
28,424
29,511
30,672
29,949
31,464
34,015
38,671
39,352
43,815
43,758
Health, education and welfare
26,847
23,749
24,199
23,070
24,540
25,380
30,535
29,876
31,109
30,943
Culture and recreation
16,001
16,763
16,337
18,334
20,056
21,561
21,196
21,324
22,022
22,533
Pension and retirement contributions
27,284
27,773
29,816
33,032
38,485
41,359
43,718
49,494
53,137
61,813
Employees' health insurance
25,212
25,902
26,011
26,786
27,731
30,112
32,147
33,802
17,522
18,846
Other postemployment benefits
17,307
3,170
4,532
7,180
11,495
14,831
39,637
41,604
Other
4,758
4,183
2,991
3,238
4,686
3,931
3,839
4,622
4,314
8,742
Debt service:
Principal
42,233
24,834
25,718
19,013
22,004
22,432
22,032
86,906
30,577
29,222
Interest
14,841
15,032
14,345
14,644
13,871
12,974
17,289
17,739
19,223
18,590
Capital outlay
87,782
71,220
48,565
51,369
79,398
144,288
111,109
41,924
51,897
mm 79,536
Total Expenditures
446,971
395,916
376,822
390,775
451.375
w533,650
529,342
540,560
527,595
585,853
Revenues over (under) Expenditures
(70,499)
(20,281)
(18,176)
7,308
(47,182)
(111,834)
(101,879)
(65,508)
(3,580)
(7,5721
Other Financing Sources (Uses):
Sale ofassets
6
153
1
10
25
66
21
23
47
10
Capital leases
47
2.521
1,307
14
1,971
3,389
3,769
3,809
6,777
2,822
State Revolving Fund loans
9,257
4,569
4,991
3,072
7,317
8,130
5,154
7,439
174
Saleofbonds
45,000
50,480
130,136
107,116
Issuance of bond anticipation notes (BANS)
-
59,800
Refimdingbonds
47,510
106,254
-
48,784
Premium on bonds
2,078
17,570
23,174
5,998
Refunding bonds/BANs issuance costs
(508)
(276)
Payment to refimded bond escrow agent
(45,352)
(128,920)
(54,537)
Retirement of refimded debt
(9,635)
Redass ofdebt from current to long-term
-
30,279
Transfers in
56,099
59,971
51,356
61,238
59,394
57,412
66,864
75,711
77,240
90,199
Transfers out
_156.0991
559�971�
151356
612381„
�59394Z
157,41
mm 66,864„
S75r711)
w 77,2401
190,11991.
Total other financing sources
56,388
7,243
66,872
�w3,096
1,996
140,908
71,720
116,071
14,263
33,285
Net change in fund balances
SL14,11 [I
SS13,0381
.1 48,696
S 10,404
S 545,186
S 29,074
S 5330 1591
S 50 563
S 10 683
S 25,713
Debt service as a percentage of
noncapital expenditures
15,9%
12.3%
13.9%
10.0%
9.3%
9.1%
9.4%
20.9%
10.5%
91%
Unaudited - see accompanying independent auditors' report.
' Amount for fiscal year 2014 has been changed fur consistency
Table 5
COUNTY OF HAWAII
Real Property Assessed Values by Classification and Tax Rates
Last Ten Fiscal Years
(Values in Thousands)
Value of
Building
Value of
Land
Value of
Fiscal Class of Net Taxable
Tax Rates
Net Taxable
Tax Rates
Net Taxable
Year Property Building
Per$1000
Land
Per $1000
Real Property
2011 Residential
$3,040,977
$ 9.10
$3,787,185
$ 9.10
$6,828,162
Apartment
2,660,600
9.85
1,144,873
9.85
3,805,473
Hotel and Resort
820,418
9.85
690,834
9.85
1,511,252
Commercial
713,161
9.10
908,741
9.10
1,621,902
Industrial
454,868
9.10
594,589
9.10
1,049,457
Agricultural & Native Forest
2,232,765
8.35
2,860,494
8.35
5,093,259
Conservation
48,766
9.85
341,496
9.85
390,262
Homeowners
2,479,437
5.55
2,573,527
5.55
5,052,964
Aff&dable Rental Housing
108,290
5.55
57,821
5.55
166,111
$12,559,282
$12,959,560
$25,518,842
Fiscal year 2011 total direct rate $8.39
2012 Residential
$2,849,965
$ 9.10
$3,549,133
$ 9.10
$6,399,098
Apartment
2,772,190
9.85
1,147,288
9.85
3,919,478
Hotel and Resort
771,971
9.85
601,800
9.85
1,373,771
Commercial
676,465
9.10
837,094
9.10
1,513,559
Industrial
446,247
9.10
563,710
9.10
1,009,957
Agricultural & Native Forest
2,023,285
8.35
2,571,826
8.35
4,595,111
Conservation
44,874
9.85
323,210
9.85
368,084
Homeowners
2,480,038
5.55
2,524,611
5.55
5,004,649
Affordable Rental Housing
142,899
5.55
79,498
5.55
222,397
$12,207,934
$12,198,170
$24,406,104
Fiscal year 2012 total direct rate $8.52
Continued next page.
Table 5
Fiscal year 2013 total direct rate $8.37
2014 Residential
Value of
Building
Value of
Land
Value of
Fiscal Class of
Net Taxable
Tax Rates
Net Taxable
Tax Rates
Net Taxable
Year Property
Building
Per $1000
Land
Per $1000
Real Property
2013 Residential
$2,872,890
$ 9.10
$3,534,961
$ 9.10
$6,407,851
Apartment
2,403,216
9.85
1,069,999
9.85
3,473,215
Hotel and Resort
711,884
9.85
506,998
9.85
1,218,882
Commercial
661,323
9.10
806,131
9.10
1,467,454
Industrial
472,242
9.10
463,832
9.10
936,074
Agricultural & Native Forest
2,067,097
8.35
2,425,798
8.35
4,492,895
Conservation
41,505
9.85
287,375
9.85
328,880
Homeowners
2,525,018
5.55
2,502,822
5.55
5,027,840
Affordable Rental Housing
110,208
5.55
64,270
5.55
174,478
$11,865,383
$11,662,186
$23,527,569
Fiscal year 2013 total direct rate $8.37
2014 Residential
$2,961,309
$ 10.05
$3,470,148
$ 10.05
$6,431,457
Apartment
2,431, 314
10.85
1,077,153
10.85
3,508,467
Hotel and Resort
669,850
10.85
477,981
10.85
1,147,831
Commercial
648,273
10.05
766,029
10.05
1,414,302
Industrial
470,992
10.05
443,702
10.05
914,694
Agricultural & Native Forest
2,105,481
9.25
2,365,245
9.25
4,470,726
Conservation
36,902
10.85
255,602
10.85
292,504
Homeowners
2,645,121
6.15
2,537,128
6.15
5,182,249
Affordable Rental Housing
115,384
6.15
64,662
6.15
180,046
$12,084,626
$11,457,650
$23,542,276
Fiscal year 2014 total direct rate $9.23
2015 Residential
$3,234,567
$ 10.05
$3,741,337
$ 10.05
$6,975,904
Apartment
2,748,462
10.85
1,059,415
10.85
3,807,877
Hotel and Resort
715,560
10.85
591,128
10.85
1,306,688
Commercial
693,488
10.05
759,340
10.05
1,452,828
Industrial
493,660
10.05
522,006
10.05
1,015,666
Agricultural & Native Forest
2,277,788
9.25
2,416,357
9.25
4,694,145
Conservation
41,991
10.85
238,545
10.85
280,536
Homeowners
2,885,636
6.15
2,607,830
6.15
5,493,466
Affordable Rental Housing
109,462
6.15
61,478
6.15
170,940
$13,200,614
$11,997,436
$25,198,050
Fiscal year 2015 total direct rate $9.26
Continued next page.
Table 5
Value of Building Value of Land Value of
Fiscal Class of Net Taxable Tax Rates Net Taxable Tax Rates Net Taxable
Year Proper Building Per $1000 Land Per $1000 Real Property
2016 Residential
Apartment
Hotel and Resort
Commercial
Industrial
Agricultural & Native Forest
Conservation
Homeowners
Affordable Rental Housing
016 total direct rate $9.25
2017 Residential
Apartment
Hotel and Resort
Commercial
Industrial
Agricultural & Native Forest
Conservation
Homeowners
Affordable Rental Housing
2018 Residential
Apartment
Hotel and Resort
Commercial
Industrial
Agricultural & Native Forest
Conservation
Homeowners
Affordable Rental Housing
Continued next page.
$3,480,591
$ 10.05
$4,199,462
$ 10.05
$7,680,053
2,944,454
10.85
1,102,944
10.85
4,047,398
704,372
10.85
456,088
10.85
1,160,460
691,810
10.05
718,840
10.05
1,410,650
487,990
10.05
519,955
10.05
1,007,945
2,358,086
9.25
2,540,590
9.25
4,898,676
45,651
10.85
242,363
10.85
288,014
2,965,718
6.15
2,727,912
6.15
5,693,630
132,752
6.15
73,267
6.15
206,019
$13,811,424
$12,581,421
$26,392,845
$4,117,521
$ 10.05
$4,395,220
$ 10.05
$8,512,741
3,287,877
10.85
1,077,230
10.85
4,365,107
751,005
10.85
470,390
10.85
1,221,394
741,099
10.05
736,639
10.05
1,477,738
504,084
10.05
519,750
10.05
1,023,834
2,746,489
9.25
2,636,805
9.25
5,383,295
52,668
10.85
249,458
10.85
302,126
3,323,185
6.15
2,842,257
6.15
6,165,441
147,676
6.15
74,531
6.15
222,207
$15,671,603
$13,002,281
$28,673,884
Fiscal year 2017
total direct rate $9.21
$4,468,601
$ 11.10
$4,539,015
$ 11.10
$9,007,616
3,593,358
11.70
1,080,647
11.70
4,674,005
786,420
11.55
511,659
11.55
1,298,079
799,591
10.70
749,661
10.70
1,549,252
526,130
10.70
550,670
10.70
1,076,800
2,877,993
9.35
2,696,501
9.35
5,574,494
53,807
11.55
275,149
11.55
328,956
3,706,817
6.15
2,980,148
6.15
6,686,965
171,631
6.15
88,857
6.15
260,488
$16,984,348
$13,472,307
$30,456,655
Fiscal year 2018
total direct rate $9.93
Table 5
Value of
Building
Value of
Land
Value of
Fiscal Class of Net Taxable
Tax Rates
Net Taxable
Tax Rates
Net Taxable
Year Property Building
Per $1000
Land
Per $1000
Real Property
2019 Residential
Apartment
Hotel and Resort
Commercial
Industrial
Agricultural & Native Forest
Conservation
Homeowners
Affordable Rental Housing
2020 Residential
Apartment
Hotel and Resort
Commercial
Industrial
Agricultural & Native Forest
Conservation
Homeowners
Affordable Rental Housing
$4,787,668
$ 11.10
$4,686,016
$ 11.10
$9,473,684
3,659,492
11.70
1,059,752
11.70
4,719,244
825,366
11.55
539,060
11.55
1,364,426
816,696
10.70
756,976
10.70
1,573,672
551,480
10.70
558,490
10.70
1,109,970
2,980,022
9.35
2,888,344
9.35
5,868,366
56,722
11.55
283,118
11.55
339,840
4,142,156
6.15
3,179,725
6.15
7,321,881
168,101
6.15
86,808
6.15
254,909
$17,987,703
$14,038,289
$32,025,992
Fiscal year 2019 total direct rate $9.88
$5,619,312
$ 11.10
$5,261,866
$ 11.10
$10,881,178
3,796,518
11.70
991,947
11.70
4,788,465
819,804
11.55
522,042
11.55
1,341,847
812,096
10.70
785,018
10.70
1,597,114
560,205
10.70
583,820
10.70
1,144,025
2,587,703
9.35
2,503,492
9.35
5,091,195
58,382
11.55
291,080
11.55
349,462
4,600,974
6.15
3,355,127
6.15
7,956,101
196,741
6.15
97,347
6.15
294,088
$19,051,735
$14,391,739
$33,443,474
Fiscal year 2020
total direct rate $9.85
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 property tax rates in the County of Hawaii.
The improved residential and unimproved residential classes were combined into a single class beginning with the fiscal
years ending lune 30, 2009.
Unaudited - see accompanying independent auditors' report.
Table(b
COUNTY OF HAWAII
Principal Taxpayers
June 30, 2020 and 2010
Note: Gross valuation at January 1, 2019: $33,443,473,564
Gross valuation at January 1, 2010: $25,518,842,894
Source: County ofHawai`i, Department of Finance, Real Property Tax Division
Unaudited - see accompanying independent auditors' report.
Fiscal Year 2020
Fiscal Year 2010
Percentage
Percentage
2019
of Total
2010
of Total
Assessed
Assessed
Assessed
Assessed
Taxnaver
Business
Valuation
Rank
Valuation
Valuation
Rank
Valuation
Kohanaiki Shores LLC
Developer
$ 296,443,500
1
0.9%
$ 76,408,900
8
0.3%
Hilton Resorts Corp.
Timeshare
282,291,400
2
0.8%
87,810,800
7
0.3%
Mauna Kea/Hapuna Beach Corps.
Developer/Hotel
175,119,000
3
0.5%
-
-
Hualalai Investors LLC
Developer/Hotel
171,644,400
4
0.5%
216,994,300
3
0.9%
Hilton Land Investment I LLC
Hotel
149,255,700
5
0.5%
224,278,600
2
0.9%
DHL Mahi Opco LLC
Developer/Hotel
135,621,100
6
0.4%
MAPS Orchid Hotel LLC
Hotel
127,282,600
7
0.4%
SMG I Hotel Waikoloa LLC
Hotel
72,098,100
8
0.2%
Raptor Residence LLC
Residential
74,278,800
9
0.2%
Target Corporation
Retailer
66,098,500
10
0.2%
Mauna Kea Development Corp
Hotels/Dev.
262,023,800
1
1.0%
Orchid 09 LLC
Hotel
135,642,700
4
0.5%
WB KD Acquisition LLC
Developer
113,006,000
5
0.4%
Mauna Lani Resort Inc.
Developer/Hotel
103,201,700
6
0.4%
Kona Village Investors LLC
Hotel
64,233,600
9
0.3%
BRE/Waikoloa LLC
Hotel
59,705,400
10
0.2%
$115501132,100
4.6%
$ 1,343,305,800
5.2%
Note: Gross valuation at January 1, 2019: $33,443,473,564
Gross valuation at January 1, 2010: $25,518,842,894
Source: County ofHawai`i, Department of Finance, Real Property Tax Division
Unaudited - see accompanying independent auditors' report.
COUNTY OF HAWAII
Property Tax Levies and Collections
Last Ten Fiscal Years
Table 7
*Outstanding
* Amounts reflect subsequent adjustments
Source: County of Hawaii, Department of Finance, Real Property Tax Division
Unaudited - see accompanying independent auditors' report.
*Total
Delinquent
*Current
*Current
*Percent
*Delinquent
*Total
Collections as
*Outstanding
Taxes as
Fiscal
Tax
Tax
of Levy
Tax
Tax
Percent of
Delinquent
Percent of
Year
Levy
Collections
Collected
Collections
Collections
Current Lew
Taxes
Current Lew
2011
215,729,273
208,106,918
96%
7,192,505
215,299,423
100%
429,850
00/0
2012
204,868,717
198,274,186
97%
6,185,183
204,459,369
100%
409,348
0%
2013
197,043,064
191,154,491
97%
5,438,095
196,592,586
100%
450,478
0%
2014
217,269,825
211,711,407
97%
5,053,752
216,765,159
100%
504,666
0%
2015
233,255,919
227,211,277
97%
5,377,279
232,588,556
100%
667,363
0%
2016
244,067,210
237,882,513
97%
5,400,924
243,283,437
100%
783,773
0%
2017
266,398,351
259,074,405
97%
6,314,281
265,388,686
100%
1,009,665
0%
2018
302,488,275
292,626,959
97%
7,446,243
300,073,202
99%
2,415,073
1%
2019
316,411,763
308,509,000
98%
3,811,110
312,320,110
99%
4,091,653
1%
2020
329,582,761
322,150,258
98%
-
322,150,258
98%
7,432,503
2%
* Amounts reflect subsequent adjustments
Source: County of Hawaii, Department of Finance, Real Property Tax Division
Unaudited - see accompanying independent auditors' report.
tit
COUNTY OF HAWAH
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Business -Type
Governmental Activities Activities
Component
Unit
General State Total General State
Fiscal Obligation Revolving Capital Bonds/Notes Primary Obligation Revolving
Year Bonds(c) Fund Loans Leases Payable Government (a)i Bonds Fund Loans
Total Primary Government
Percentage
of Personal Per
income (b) Capita
Table 8
Total Primary Government
and Comnonent Unit
Percentage
of Personal Per
Income(b) Capita
2011
306,079,506
36,555,264
3,057,082
884,232
346,576,084
44,673,293
18,012,314
5.67%
1,851
6.69%
2,186
2012
286,168,549
29,050,626
3,803,618
851,306
319,874,099
42,481,176
17,872,813
5.06%
1,691
6.02%
2,010
2013
332,675,519
20,882,283
3,632,420
1,296,633
358,486,855
40,179,834
12,911,310
5.48%
1,879
6.29%
2,157
2014
318,138,520
22,928,638
2,308,241
1,208,300
344,583,699
38,644,257
13,658,717
5.09%
1,774
5.86%
2,044
2015
297,957,249
21,552,213
2,981,709
1,111,392
323,602,563
36,383,553
12,591,409
4.58%
1,647
5.27%
1,897
2016
413,986,312
27,463,251
4,916,178
1,014,014
447,379,755
34,407,006
25,528,470
5.87%
2,254
6.66%
2,556
2017
391,580,924
32,625,277
6,565,580
924,649
431,696,430
29,861,558
33,756,825
5.36%
2,154
6.15%
2,472
2018
471,743,088
35,647,870
8,112,577
807,005
516,310,540
29,163,790
45,359,733
6.05%
2,569
6.93%
2,940
2019
440,439,527
39,693,594
11,579,332
697,777
492,410,230
24,769,159
44,326,655
5.79%
2,444
6.39%
2,786
2020
412,438,548
37,367,712
10,771,109
582,961
461,160,330
22,198,633
42,909,525
N/A
N/A
N/A
N/A
NOTES;
(a) Includes governmental activities and business -type activities.
(b) See Table 11 fbr 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 auditors' report.
Table 9
COUNTY OF HAWAII
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years
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.
- 159-
Debt
Percent of
Applicable to
Net Taxable
Fiscal
Legal Debt
Property
Per
Year
Margin (a)
Value (b)
Capita (c)
2014
305,615,691
1.2%
1,636
2012
317,699,844
1.3%
1,679
2013
315,676,941
1.3%
1,654
2014
298,709,020
1.3%
1,538
2015
312,632,049
1.2%
1,592
2016
362,963,1 13
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%
2,110
2020
315,676,941
0.9%
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.
- 159-
Table 10
COUNTY OF HAWAVI
Legal Debt Margin Information
Last Ten Fiscal Years
(Amounts in thousands)
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Debt limit (a) 53,827,826
53,660,916
53,529,135
53,531,341
53,779,708
53,958,927
54,301,083
54,568,498
S 4,803,899 S
5,016,521
Debt applicable to limit 315,616
317,700
315,677
298,709
312,632
362,963.
405,488
414,446
425,154
315,677
Legal debt margin (b) 53,5112,210
53,343,216
53,213,458
53,232,632
53,467,076
53,595,964
53,895,595
54,154,052
S 4,378,745 S 4,700,844
Debt applicable to the limit
as a percentage of debt limit 8.25%
8.68%
8.94%
8.46%
8.27%
9.17%
9,43%
9.07%
8.85%
6.29%
' NOTES:
(a) State finance statutes limit the County's outstanding general debt to no more than 15 percent of the net assessed value of property. See Table
5 fbr net assessed value of property.
(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 legal debt
limit from the legal debt limit.
Legal Debt Margin Calculation for Fiscal Year 2020
Net assessed value 533,443,474
Debt limit (15% of net assessed value) S 5,016,521
Debt applicable to limit 315,677
Legal debt margin S 4,700,844
Unaudited -see accompanying independent auditors' report.
Table 1
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
2010
185,381
$
5,717,885
$
30,844
29,741
10.0%
2011
187,229
$
6,1 14,237
$
32,656
30,103
9.7%
2012
189,191
$
6,3M,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%
2016
198,449
$
7,619,924
$
38,392
29,753
4.7%
2017
200,381
$
8,053,011
$
40,188
29,666
3.5%
2018
201,509
$
8,509,388
$
42,228
29,601
3.7%
2019
201,513
$
8,781,599
$
43,578
29,609
4.2%
* Amounts reflect subsequent adjustments
Source: County of Hawaii, Department of Research and Development, Bureau of Economic Analysis,
State of Hawaii Department of Labor, State of Hawaii DOE and University of Hawaii Hilo
Unaudited - see accompanying independent auditors' report.
Table 12
COUNTYmFMAWAI'I
Principal Employers, County of Hawaii
June 30, 2020 and 2010
-162-
2020
2011
Percentage
Percentage
of Total County
of Total County
Employer
Employees
Rank Employment
Employees
Rank
Employment
State of Hawai'i
11,000
1 15.2%
8,063
1
10.7%
County of Hawai'i
2,700
2 3.7%
2,663
2
3.5%
Four Seasons Resort Hualalai
1,300
3 1.8%
550
8
0.7%
United States Government
1,300
4 1.8%
1,421
3
1.9%
Mauna Kea and Hapuna Prince Resorts
and Mauna Kea Services
1,100
5 1.5%
Hilton Waikoloa Village
920
6 1.3%
881
4
1.2%
KTA Super Stores
850
7 1.2%
700
6
0.9%
The Fairmont Orchid, Hawai'i
700
8 1.0%
618
7
0.8%
Waikoloa Beach Marriott Resort & Spa
313
9 0.4%
Securitas Security Services, USA Inc
296
10 0.4%
Wal-Mart
770
5
1.0%
Mauna Kea Beach Hotel
550
9
0.7%
Mauna Lani Resort (Operations), Inc.
529
10
0.7%
Total
20,479
28.3%
16,745
22.1%
Total employee count
72,450
75,150
Source: County of Hawai'i, Department
of Research and Development
State of Hawaii, Hawai'i Workforce Infonet: https.•IAvww.hiwi. org
United State Department ojLabor, Bureau ojLabor Statistics: https:✓1wwwbls.govdregions✓west✓news-release
Pacy1c Business News, "Employers, Big Island"
Issue date: 10111612020
-162-
COUNTY OF HAWAII
Full -Time Equivalent County Government Employees by Function
Last Ten Fiscal Years
Total 2,390.45 2,319.18 2,357.51 2,390.47 2,422.28 2 425.09 2,479.41 2,456.72 2491.71 2,570.99
Source: County of Hawaii, Department of Finance
Unaudited - see accompanying independent auditors report
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Function
General government:
County Council
9.00
9.00
9.00
9.00
9.00
9.00
9.00
8.00
9.00
9.00
County Clerk
53.00
54.00
52.50
46.40
53.16
54.56
54.16
51.16
52.68
52.56
Legislative Auditor
5.00
4.75
3.75
5.00
5.00
5.00
5.00
4.00
5.00
5.00
Mayor
21.99
18.50
16.00
18.75
19.47
17.48
16.99
16.99
18.74
17.00
Corporation Counsel
29.00
29.00
27.00
28.00
25.00
23.00
26.00
26.00
26.00
25.00
Finance
121.89
123.35
131.37
134.98
134.49
131.49
151.00
153.49
152.46
133.00
Human Resources
25.49
25.48
24.00
24.49
25.49
25.49
25.49
23.49
24.80
23.00
Planning
49.49
48.00
50.00
51.00
50.00
53.00
56.00
53.00
60.00
66.00
Research & Development
14.00
12.00
12.00
11.49
14.49
16.00
14.49
12.00
14.00
14.00
Information Technology
16.00
16.00
16.00
22.00
19.00
19.00
21.00
20.00
18.00
17.00
Public Works Admin & Building
158.84
155.48
155.50
162.49
164.28
167.49
172.49
167.75
170.49
195.00
Public Safety:
Police
565.99
541.25
548.98
567.23
564.50
564.75
572.00
550.50
553.00
559.25
Fire
414.08
391.28
418.57
429.57
436.57
433.07
434.58
425.57
441.07
460.57
Liquor Control
14.00
15.00
14.00
14.00
13.00
16.00
17.00
17.00
15.50
15.00
Civil Defense
7.00
7.00
7.00
7.00
7.00
7.00
7.00
7.00
7.00
8.00
Prosecuting Attorney
99.00
91.49
99.49
98.97
105.97
108.97
108.97
111)49
11000
102.49
Highways and Streets:
Mass Transit
7.00
7.00
8.00
11.00
11.00
12.00
10.00
12.00
13.00
16.00
Traffic and Highways
176.48
178.48
17648
173.48
17548
175:48
17748
18748
189:48
188:00
Sanitation:
Administration
18.49
17.00
17.00
19.49
19.49
17.98
19.98
18.98
19.00
18.98
Sewer
47.49
47.49
46.00
44.49
47.49
46.49
45.49
48.49
47.49
52.97
Vehicle Disposal
2.00
2.00
4.00
1.00
2.00
2.00
2.00
3.00
2.00
2.48
Solid Waste
95.00
99.00
98.00
103.50
103.00
104.00
102.00
103.00
101.00
110.00
Health, Education and Welfare:
Housing
47.48
43.48
41.00
43.00
46.00
46.00
47.00
48.00
48.00
50.00
Aging
12.00
13.00
11.00
12.00
9.00
13.00
15.00
16.00
14.50
15.50
Culture and Recreation
380.74
370.15
370.87
352.14
362.40
356.84
369.29
372.33
378.50
415.19
Total 2,390.45 2,319.18 2,357.51 2,390.47 2,422.28 2 425.09 2,479.41 2,456.72 2491.71 2,570.99
Source: County of Hawaii, Department of Finance
Unaudited - see accompanying independent auditors report
Function
Public Safety:
Police:
DUI arrests
Traffic citations issued
Fire:
Fire responses
Emergency medical/rescue responses
Inspections - Occupancy/Fire Protective Equipment
Sanitation:
Refuse disposed (tons per year)
Highways and Streets:
In-house street resurfacing (miles)
Parks and Recreation:
Pavilion permits issued
Camping permits issued
Rounds of golf
Zoo attendance
Transit:
Bus passengers
Public Works--
Building
orks:Building permits issued
Electrical permits issued
Plumbing permits issued
Sign permits issued
Source: County ofHawai`i, Individual Departments
Unaudited - see accompanying independent auditors' report.
Table 14
COUNTY OF HAWAII
Operating Indicators by Function
Last Ten Fiscal Years
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
1,468
1,403
1,176
1,351
1,035
1,113
1,083
1,170
1,081
952
61,947
60,967
49,292
63,921
60,016
67,289
69,611
68,535
37,305
34,454
731
684
654
671
700
700
731
811
832
881
15,726
16,361
16,454
15,968
18,750
17,834
17,178
18,005
17,884
18,048
3,021
2,050
1,463
1,687
1,262
1,000
1,298
951
597
699
166,455
152,949
153,581
166,890
179,033
188,758
195,162
224,196
223,823
207,172
18
20
20
17
6
21
24
13
36
0
4,667
2,805
2,775
2,708
2,482
2,552
2,513
2,417
1,951
1,259
4,019
4,450
5,175
4,261
6,207
6,688
7,345
8,394
6,910
5,769
83,358
72,162
71,352
71,568
65,093
57,325
58,874
58,504
57,488
48,704
172,677
213,537
245,715
220,323
214,249
251,436
264,415
269,453
283,807
208,384
1,149,042
1,315,222
1,269,550
920,280
944,738
874,424
766,472
742,250
511,412
416,747
3,039
3,258
4,754
4,797
5,494
4,833
3,214
3,672
4,009
3,245
3,821
4,080
5,137
5,313
5,645
4,232
3,509
4,077
3,766
3,919
2,071
1,749
2,001
1,664
1,897
1,819
1,801
1,914
1,891
1,998
58
55
52
57
44
47
39
45
51
35
Table 15
COUNTY OF HAWAII
Capital Asset Statistics by Functions
Last Ten Fiscal Years
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Function
8
8
Public Safety_
8
8
Police:
7
8
Stations
8
10
Substations
10
10
Fire stations
20
2
Highways and Streets:
21
21
County streets (miles)
946
954
Streetlights
9,864
9,883
Parks and Recreation:
991
990
Parks
143
144
Gyms and recreation centers
61
62
Sanitation:
11,310
11,331
Sanitary sewers (miles)
111*
112*
*GIS database utilucd bcgmnmg FY 2068
147
151
Source. County of Hawaii, Department
of Research and Development
Unaudited - see accompanying independent auditots' report.
62
8
8
8
8
8
8
7
7
8
8
8
10
10
10
11
7
20
21
21
21
21
21
20
20
945
961
956
956
991
990
1,000
1,002
9,939
10,165
10,366
10,655
10,771
11,310
11,331
11,472
145
145
146
147
151
151
151
151
62
62
62
62
65
65
65
65
112•
105•
105•
105*
105*
105•
105•
106*