2013-COH - Comprehensive Annual Financial Report

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current observatories and the creation of new jobs with the development of the Thirty Meter Telescope (TMT) by the TMT Observatory Corporation. Permits have been issued for the TMT but a final appeal has been lodged with the courts. Once construction begins, it is anticipated that the construction and equipment costs will be $1.2 billion and the TMT will have an annual operational budget of $27 million. According to the First Hawaiian Bank Economic Forecast, Mauna Kea observatories involve 11 facilities with an annual budget of $75 million to support 527 county -based staff. The outlook for the construction industry based on building permits seems to be improving despite a few challenges that remain in the areas of the rising cost of materials and the workforce availability. Construction jobs have recovered by one-third of the decline experienced in recent years and private building permits are up 25% in the first part of 2013 compared to the same period the year before. Several large construction projects are on the horizon for each side of the island. The west side of the island saw the initial breaking ground on the $20 million Palamaui campus construction project for the Hawaii Community College and several substantial highway projects, which include includes the Hawaii Community College and the widening of the Queen Kaahumanu Highway ($75 million) and Phase III of the Saddle Road ($32 million). The east side includes the Mohouli Senior Housing Project ($30 million) and the Route 130 widening (expected to be $150 million). These factors were considered in preparing the County's budget for the 2014 fiscal year. At the end of the current fiscal year, unrestricted fund balance in the general fund was $45.6 million. The County has appropriated $21.7 million of this amount for spending in the 2014 fiscal year budget and it 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. -25-