2021-COH - DWS Financial Statements and Supplementary Information With Independent Auditor's Report

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County of Hawaii Department of Water Supply (A component unit of the County of Hawaii, State of Hawaii) MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) Fiscal Year Ended June 30, 2021 Financial Analysis (Continued) Other liabilities decreased by $0.03 million, or 0.04% in FY2021, due primarily to collective increases in accrued compensation, customers' deposits, accrued vacation, and net pension liability totaling $3.73 million offset by collective decreases in accounts and construction contracts payable, accrued interest payable, accrued workers' compensation, unearned revenue (non current) and net OPEB liability totaling $3.75 million. Deferred inflows of resources increased by $1.1 million, or 28.60%, in FY2021, due primarily to an increase in deferred inflows of resources related to OPEB of$2.0 million offset by a decrease in deferred inflows of resources related to pensions of$1.0 million. Net investment in capital assets increased by $1.2 million, or 0.52%, in FY2021, due primarily to an increase in net capital assets of $2.2 million, offset by an increase in long-term debt of $1.2 million. Total net position decreased $3.9 million, or 1.84%, in FY2021, due primarily to the results of operations of($3.9 million). In October 2020, the Water Board approved a 13% rate increase for water consumption and standby charges that became effective January 1, 2021. Total operating revenues increased by $1.4 million, or 2.95% in FY2021, due primarily to an increase in water consumption charges of $1.5 million and standby charges of $1.0 million offset by a decrease in power charges of $1.1 million. Operating expenses decreased by $0.7 million, or 0.91%, in FY2021, due primarily to a decrease in power and pumping of $1.4 million offset by increases in general and administrative and transmission and distribution expenses of$1.0 million. Nonoperating expenses increased by $0.05 million, or 2.67%, in FY2021, due primarily to a decrease in interest on long-term debt of$0.28 million offset by an increase in losses on disposal of property of$0.30 million. Contributions in aid of construction (CIRC) increased by $1.14 million, or 35.73%, in FY2021, due primarily to an increase in current year dedications of$0.16 million, the addition to CIAC of$1.60 million for Uplands Subd Ph II offset by decreases in external Federal funding of$0.11 million and CIAC-Facilities Charge of$0.31 million. Capital Assets and Debt Administration As of June 30, 2021, the Department had $302.5 million invested in capital assets, and $67.4 million of long-term debt outstanding. 10