Annual Comprehensive Financial Report 2022

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amount of transfers-in matched more closely with the actual expenditures incurred for principal and interest payments. Proprietary funds. The County's proprietary funds provide the same type of information found in the government-wide financial statements,but in more detail. Unrestricted net position of the Kulaimano Elderly Housing Project(Kulaimano) at the end of the year amounted to $391,695, and$611,703 for the Ouli Ekahi Affordable Housing Project(Ouli Ekahi). Unrestricted net position for Kulaimano increased by $122,346 and unrestricted net position for Ouli Ekahi decreased by$3,522. Other factors concerning the finances of these two funds have already been addressed in the discussion of the County's business-type activities. GENERAL FUND BUDGETARY HIGHLIGHTS Differences between the original budget and the final amended budget were primarily the result of a$77.9 million increase in appropriations for expenditures and other financing uses, the most significant reasons were due to $50.1 million of additional grant appropriations from the federal government relating to mass transit($18.5 million)from the Federal Transit Administration and the Community Development Block Grant funding from the U.S. Department of Housing and Urban Development($31.1 million). Differences between the final budget and the actual(budgetary basis)resulted in approximately $15.6 million less revenues than expected and$42.5 million less expenditures than appropriated. This is primarily due to the following factors: • Although revenue generated from taxes exceeded the budget by$32.2 million,revenue from grants and other sources fell short of the budget by$16.6 million. • Approximately$16.5 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 total variance in expenditures: public safety ($13.7 million)and highways and streets ($9.0 million). 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, 2022 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 3 percent. Major capital asset events during the current fiscal year included the following: • Construction continued on the Hawaii County Radio System Upgrade project; construction in progress as of the end of the current fiscal year had reached$18.2 million with$2.4 million coming from the current fiscal year. • Construction continued on the Hilo Wastewater Treatment Plan Upgrade project; construction in progress as of the end of the current fiscal year had reached$2.4 million with$1.9 million coming from the current fiscal year. - 25 -