HomeMy WebLinkAbout2013-COH - Comprehensive Annual Financial ReportCOMPREHENSIVE
ANNUAL FINANCIAL REPORT
Fiscal Year Ended June 30, 2013
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COUNTY OF HAWAII
Hilo, Hawane*
William P. Kenoi
Mayor
Walter Lau
Managing Director
Prepared by
The Department of Finance
Nancy E. Crawford
Director of Finance
COUNTY OF HAWAII
Comprehensive Annual Financial Report
For the Fiscal Year Ended June 30, 2013
Table of Contents
FINANCIAL SECTION
Report of Independent Auditors 13
Management's Discussion and Analysis 15
Basic Financial Statements:
Government -wide Financial Statements:
Statement of Net Position 28
Statement of Activities 30
Fund Financial Statements:
P- -age
INTRODUCTORY SECTION
32
Letter of Transmittal
1
GFOA Certificate of Achievement
S
Organization Chart
9
List of Elected Officials
10
List of Principal Officials
11
FINANCIAL SECTION
Report of Independent Auditors 13
Management's Discussion and Analysis 15
Basic Financial Statements:
Government -wide Financial Statements:
Statement of Net Position 28
Statement of Activities 30
Fund Financial Statements:
Balance Sheet - Governmental Funds
32
Reconciliation of the Governmental Funds Balance Sheet to the
Statement of Net Position
33
Statement of Revenues, Expenditures, and Changes in Fund Balances -
Governmental Funds
34
Reconciliation of the Change in Fund Balances of Governmental
Funds to the Statement of Activities
3�
Statement of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual (Budgetary Basis) - General Fund
38
Statement of Net Position - Proprietary Funds
42
Statement of Revenues, Expenses, and Changes in Fund Net Position -
Proprietary Funds
43
Statement of Cash Flows - Proprietary Funds
44
Statement of Fiduciary Net Position - Fiduciary Funds
45
Statement of Changes in Fiduciary Net Position - Fiduciary Funds
46
Notes to the Basic Financial Statements
47
Required Supplementary Information
91
FINANCIAL SECTION (Continued)
123
Table 2 - Changes in Net Position
Pan
Combining and Individual Nonmaj or Fund Statements and Schedules:
126
Combining Balance Sheet - Nonmaj or Governmental Funds
94
Combining Statement of Revenues, Expenditures, and Changes in Fund
128
Balances - Nonmajor Governmental Funds
98
Schedules of Revenues, Expenditures, and Changes in Fund Balances -
133
Budget and Actual (Budgetary Basis):
134
Highway Fund
101
Sewer Fund
102
Solid waste Fund
103
Cemetery Fund
104
Parking Meter Fund
105
Vehicle Disposal Fund
106
Bikeway Fund
107
Workforce Investment Act Fund
108
Golf Course Fund
109
Geothermal Relocation and Community Benefits Fund
110
Beautification Fund
111
Hawaii County Housing Agency
112
Park Dedication Fund
113
Combining Statement of Agency Funds Net Position - Agency Funds
114
Combining Statement of Changes in Assets and Liabilities - Agency Funds
116
Combining Statement of Private Purpose Trust Net Position - Private Purpose Trusts
120
Combining Statement of Changes in Net Position - Private Purpose Trusts
121
STATISTICAL SECTION
Table 1 - Net Position by Component
123
Table 2 - Changes in Net Position
124
Table 3 - Fund Balances, Governmental Funds
126
Table 4 - Changes in Fund Balance, Governmental Funds
127
Table 5 - Real Property Assessed Values by Classification and Tax Rates
128
Table 6 - Principal Taxpayers
132
Table 7 - Property Tax Levies and Collections
133
Table 8 - Ratios of Outstanding Debt by Type
134
Table 9 - Ratios of General Bonded Debt Outstanding
135
Table 10 - Legal Debt Margin Information
136
Table 11 - Demographic and Economic Statistics
137
Table 12 - Principal Employers, County of Hawaii
138
Table 13 - Full -Time Equivalent County Government Employees by Function
139
Table 14 - Operating Indicators by Function
140
Table 15 - Capital Asset Statistics by Functions
141
INTRODUCTORY SECTION
William P. Kenai
Mayor
December 24, 2013
County of Hawaii
Finance Department
25 Aupuni Street, Room 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, Hawai` i 96720
Nancy E. Crawford
Director
Deanna S. Sako
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, 2012 to June 30, 2013.
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 Hawai` i at June 30, 2013 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 multiyear basis.
Hawaii County is an equal opportunity provider and employer.
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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.
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 Hawai `i, 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, and Canada through the Kona
International Airport. Scheduled freight services are available between the islands by air
and sea transport. Communities on the island are linked by a network of State and
County maintained streets and highways.
The Big Island is the most diversified of the neighbor island economies. As a result it is
buffered to some extent when any one industry lags. Although the past few years proved
challenging to the island's economy, it appears that the County will continue on its steady
but slow road to improved financial health. This favorable outlook is supported by
positive trends in the following key areas of the island's economy.
For the fourth year in a row, the County's unemployment rate has served as a positive
indicator that the island's economy is on a course to recovery. The County's
unemployment rate for the current fiscal year ($.3%) was almost a full percent lower than
that of the prior year (9.2%).
Tourism — Tourism has always been the major industry on the island. In addition to the
mild climate and natural beauty it shares with other areas in the state, the County features
the Hawai` i Volcanoes National Park. A popular attraction, the park is the most visited
site in the state, with almost 3.7 million visitors in fiscal year 2013 representing an almost
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7% increase from the prior fiscal year. Another indication of the County's slowly
rebounding industry, is the fact that there was also a 7% increase in the total number of
visitors to the island from the prior fiscal year. More significantly, spending growth for
this sector has been almost constantly increasing since the beginning of 2010.
Construction -- 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.
Scientific research and Development — Due largely to its unique geographic
characteristics which has attracted scientists in fields of astronomy, meteorology,
volcanology, and agriculture/aquaculture, the County has benefited economically by the
significant investments made in scientific research. According to the First Hawaiian
Bank Economic Forecast, Mauna Idea observatories involve 11 facilities with an annual
budget of $75 million to support 527 county -based staff. Astronomy continues to be a
major factor in the success of the County's economy with an estimated nearly 500 new
jobs opening up through 2023 to meet the needs of the 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.
Major Initiatives
For the Year
During the year, the County focused on construction. projects relating to housing,
sanitation and public safety, and other issues affecting the quality of life in the County.
Public Safety — On November 17, 2012, the Hawaii Police Department gained
accreditation by the Commission on Accreditation for Law Enforcement Agencies
(GALEA) for the first time.
Housing — Construction on Na Kahua Hale 0 Ulu Wini ("Ulu Wini", formerly known as
Kaloko Housing Program) located in North Iona continued through fiscal year 2013.
During the year, 36 units were constructed with the remaining 20 slated for completion
next fiscal year. Ulu Wini provides transitional (short-term, less than two years) and
permanent rental housing for families with children earning below 50% of the County's
adjusted median income, with preference for those impacted by homelessness. Entire
build -out of the site will include 95 two-bedroom units, a community center complete
with meeting room administrative offices, a laundry facility and kitchen, an employment
training facility, a playground and a wastewater treatment plant. Families engaged at Ulu
Wini will be provided either transitional or rental housing, case management, mail and
computer access, and an array of on-site support services including employment and life
skills training, mental health services, counseling and childcare.
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Following the completion of Kamakoa Nui's four model homes in the prior fiscal year,
sales began strong with the first five homes sold before the end of fiscal year 2013.
Kamako a Nu i is a master planned community in Waiko to a. The first phase of
development includes the construction of 91 homes. The project is intended to serve the
local work force population with affordable homes for purchase near the largest employer
on the Big Island, the Kohala Coast hotels.
For the Future
Public Safety — Securing funding for the South Kona Police Station continues to remain a
goal of the Hawaii Police Department along with planning for a new station in the Puna
District to replace the soon to be retired Keaau Police Station.
The Police Department has also begun the process of procuring a modernized and fully
integrated Computer Aided Dispatch (CAD) and Records Management System (RMS) to
better serve the community. Additionally, the Police Department is one of several
County Departments working on modernizing the County's public safety radio system.
Public Works — Improvements on Kaiminani Road are focused on reconstructing the
roadway, retaining walls, and drainage. 80% of the $10 million construction cost is paid
by the Federal Highways Administration and was completed on November 30, 2013.
The first phase of Kona's $7.8 million Laaloa Avenue Extension project is taking place.
The project includes a 1,900 -foot connector road that will link Alii Drive with Kuakini
Highway. This is the first connector road to be built in decades along Alii Drive.
Construction is scheduled for completion in 2014.
Planning ---- The Planning Department's regulatory functions can be measured in terms of
volume and responsiveness. In order to have the ability to measure its responsiveness,
the Department is embarking on an effort to invest in the current tracking system to
generate performance reports that reflect categories of regulatory functions and
parameters.
Other Financial Information
Internal Vontrol
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.
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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.
Cash Management
Cash temporarily idle during the year was invested in savings accounts, money market
mutual funds, certificates of deposit, repurchase agreements, and agency notes. The
average yield on deposits and investments was .1 S%.
The County's policy is to minimize credit and market risks while maintaining a
competitive yield on its portfolio. Accordingly, with the exception of $264,173 held by a
rental management agent, deposits were either insured by federal depository insurance,
collateralized, or secured by irrevocable letters of credit. All collateral on deposit was
held for safe keeping with a County -designated agent in the County's name.
Financial Highlights
As a result of another year of declining property values which negatively impacted real
property tax revenues, the County was again faced with the dilemma of balancing its
budget. To avoid negatively impacting the local economy, the County worked diligently
to lower its operating costs while continuing to service the community and its people
rather than raise real property taxes.
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In an effort to lower its debt service costs, the County issued bonds to refund $52.9
million of various debt instruments, resulting in an estimated savings of approximately
$9.5 million in principal and interest payments.
The County continued the furloughs and pay reductions for both its HGEA and UPW
union employees from the prior year.
As part of the strategy for balancing the budget, the County also decided to temporarily
forgo the employer contributions relating to the pre -funding of its postemployment
benefits other than pensions that it had fully funded for four of the previous five fiscal
years.
Other Information
Independent Audit
The County Charter requires an annual audit by independent certified public accountants.
Accuity LLP 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 seven different bargaining units. Three bargaining
units have contracts that will expire on June 30, 2015. Three bargaining units have
contracts that will expire on June 30, 2017. The one remaining bargaining unit received
an interest arbitration decision in November 2013, however, the cost items associated
with that decision are currently subject to the approval of all legislative bodies. The
County anticipates this cost approval process will conclude on or about the end of the
2014 Legislative session (May 2014).
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, 2012. This was the twenty-fifth consecutive year that the government has
received this prestigious award. In order to be awarded a Certificate of Achievement, a
government must publish an easily readable and efficiently organized comprehensive
annual financial report. This report must satisfy both generally accepted accounting
principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe our
current Comprehensive Annual Financial Report continues to meet the Certificate of
Achievement Program's requirements, and we are submitting it to the GFOA to
determine its eligibility for another certificate.
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Acknowledgments
I 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 Hawai `i.
NANC CR.A.WF
Director of Finance
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I
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Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
County of Hawan
Hawaii
For its Comprehensive Annual.
Financial Report
for the Fiscal Year Ended
June 30, 2012
Executive Director/CEO
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County of Hawaii
Organization Chart
County Electorate
County Council F ' Mayor I Prosecuting Attorney
County Legislative Office of Management:
Clerk Auditor Managing Director
Departments under Agencies under Departments under
direct supervision of the direct supervision of the commissions and
Managing Director: Managing Director: administrative supervision
of the Mayor:
Corporation Counsel
Finance
Planning
Environmental Management
Research &Development
Public Works
Parks &Recreation
Information Technology
Civil Defense
Office of Aging
Mass Transit
Office of Housing &
Community Development
Human Resources
Police
Liquor Control
Fire
Water Supply
(semi -autonomous)
County of Hawaii
Elected Officials
June 30, 2013 -
Administrative Officers (Term: 2012-2016)
William P. Kenoi
Mitchell Roth
County Council (Term: 2012-2014)
J Yoshimoto
Karen Eoff
Brenda Ford
Greggor Hagan
Dru Mamo Kanuha
Zendo Kern
Dennis "Fresh" Gnishi
Valerie Poindexter
Margaret Wille
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Mayor
Prosecuting Attorney
Chair
Vice Chair
Member
Member
Member
Member
Member
Member
Member
Principal officials
June 30, 2013
County Clerk
Stewart Maeda
Legislative Auditor, Acting
Lane Shibata
Managing Director
Walter Lau
Deputy Managing Director
Randy Kurohara
Corporation Counsel
Lincoln Ashida
Director of Finance
Nancy E. Crawford
Planning Director
Duane Kanuha
Director of Personnel
Ronald Takahashi
Director of Research and Development
Laverne Omori
Chief of Police
Harry S. Kubojiri
Fire Chief
Darren Rosario
Director of Public Warps
Warren Lee
Director of Environmental Management Bobby Jean Leithead-Todd
Parrs and Recreation Director
Clayton Honma
Manager -Chief Engineer, Department of Water Supply
Quirino Antonio, Jr.
Civil Defense Administrator, Acting
Darryl Oliveira
Director of Liquor Control
Gerald Takase
Mass Transit Administrator
Tiffany Kai
Executive on Aging
Alan Parker
Administrator, Office of Housing and
Community Development
Stephen Arnett
Director of Information Technology, Acting
Donald F. Jacobs, Jr.
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FINANCIAL SECTION
C cuit
LLP
CERTIFIED PUBLIC ACCQUN A \'' S
Report of Independent Auditors
To the Chair and Members of the County Council
County of Hawaii
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business -type
activities, the discretely presented component unit, each major fund, and the aggregate remaining fund
information of the County of Hawaii, State of Hawaii (the "County") as of and for the year ended June 30,
2013, and the related notes to the financial statements, which collectively comprise the County's basic
financial statements as listed in the table of contents. We also have audited each fiduciary fund type of
the County as of and for the year ended June 30, 2013, as displayed in the County's basic financial
statements.
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.
Auditors' 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 Govemment 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 auditors' 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 auditors consider 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 presentation of the financial
statements.
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 as well as
each fiduciary fund type of the County, as of June 30, 2013, and the respective changes in financial
position, and, where applicable, cash flows thereof and the budgetary comparison for the general fund for
the year then ended in accordance with accounting principles generally accepted in the United States of
America.
W9 Pr:stiop SFRET.,-r, Sum. 1900
.alp. an independent member v!
BAKER T t L LY TriuITHON I : 8085313400 FAcsi m l tx: 808 731 3433
INTERNATIONAL
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Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's
discussion and analysis and schedule of funding progress for the EUTF information on pages 15 through
25 and 91 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, fund 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 fund 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 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 fund 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 Renortina Reauired bv Government r4uditina Standards
In accordance with Government auditing Standards, we have also issued our report dated December 24,
2013 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 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 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.
L Cf'
Honolulu, Hawaii
December 24, 2013
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MANAGEMENT'S DISCUSSION AND ANALYSIS
This section of the County of Hawai` is (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, 2013. we encourage readers to consider the information presented here in
conjunction with additional information that we have furnished in our letter of transmittal.
FINANCIAL HIGHLIGHTS
• The assets of the County exceeded its liabilities at the end of the fiscal year by $767.0 million
(net position). This amount includes $2.9 million in unrestricted net position, a decrease of
$36.9 million from the prior year.
• The County's total net position increased by $54.0 million during the fiscal year.
• As of the close of the current fiscal year, the County's governmental funds reported combined
ending fund balances of $195.3 million, an increase of $45.9 million from the prior year.
Approximately 42 percent of this total amount, $52.0 million, is available for spending at the
County's discretion (unrestricted fund balance).
• At the end of the current fiscal year, unrestricted fund balance for the general fund was $45.6
million, or 21 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,
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sanitation and general government. The business -type activities of the County include rental
housing for senior citizens and families.
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-maj or 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 nonmaj or 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
-16-
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.
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
nonmajor governmental funds and budgetary comparison schedules for the nonmajor special
revenue funds are presented immediately following the required supplementary information.
GOVERNMENT --WIDE FINANCIAL ANALYSIS
Condensed Statement of Net Position
June 30, 2013 and Zoll
Primary Government
Governmental Activities
Business -type
Activities
Total
2013
2012
2013
2012
2013
2012
Assets:
Current and other assets
$ 253,2141.)295
$ 252,075,426
$ 1,111,875
$ 1,036,087
$ 254,326,170
$ 253,111,513
Capital assets, net
1,00915857,355
917,24911P344
1,611,888
1,167,154
1,011,469,243
9185416,498
Total assets
1,263,071,650
1,169,324,770
2,7231.1763
2,203,241
11.2651.3951413
1,1715285011
Liabilities:
Long-term liabilities
outstanding
4611.19051.)296
438,814,811
11)296,633
851,306
463,201,929
439,666,117
Other liabilities
35,506,628
48,424,315
66,685
395,021
35,573,313
48,819,336
Total liabilities
497,411,924
487,239,126
1,363,318
1,246,327
498,775,242
488,485,453
Net position:
Net investment in
capital assets
699,326,156
5941)384524
315,255
315,848
699,641,411
594,700,372
Restricted
64,437,707
481)360,223
--
185,148
641.7437,707
48545,371
Unrestricted
1,8951.1863
391P3405897
1,04511P190
455,918
2,941,053
39,796,815
Total net position
$ 765,6591.1726
$ 6821085,644
$ 1,360,445
$ 956,914
$7671020,171
$683,042558
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 $757.0 million at the
close of the most recent fiscal year.
By far the largest portion of the County's net position (91 percent) 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 (8 percent) represents resources that are subject
to external restrictions on hove they may be used.
At the end of the current fiscal year, the County is able to report positive balances in all three
categories of net position, both for the government as a whole, as well as for its separate
governmental and business -type activities.
The County's net position increased by $84.0 million during the current fiscal year, which was
$8.3 million more than the increase during last fiscal year. Capital grants and contributions
increased by approximately $20.8 million relating mostly due to increases related to highways
and streets with reductions in those related to sanitation. The increase was offset and reduced by
a decrease in real property taxes of approximately $9.1 million.
The County's net capital assets increased by $93.1 million due to the large amount of capital
improvement projects done by the County during the current fiscal year and infrastructure related
assets that were contributed. See further discussion of the increase in capital assets on page 23.
The County's long-term liabilities outstanding increased by $23.5 million (5 percent) due
primarily to the increases resulting from the County's decision to forgo the employer
contributions relating to the pre -funding of its postemployment benefits other than pensions and
the issuance of new bonds. These increases were offset by principal payments on the General
Obligation Bonds and the State Revolving Fund loans from the prior year. See further discussion
of the increase in long-term debt outstanding on page 24.
-18-
Increase in net position 835745082 751)6481.7663 403531 13,280 83,977,613 75,661,943
Net position at beginning of year 682,085,644 606,4361>981 956,914 943,634 683,042558 607,380,615
Net position at end of year $ 765,659,726 $ 6821.10851.1644 $ 1,360,445 $ 956,914 $ 767,020,171 __F6_8_31P042558
Analysis of Changes in Net Position
Governmental activities. Governmental activities increased the County's net position by
$83.6 million or basically all of the total growth in net position of the County.
Total revenues increased by $8.3 million (2 percent). The combined total revenues for both the
Operating and Capital grants and contributions also increased by approximately $19.5 million,
which related mostly to increases in highways and streets projects being netted with decreases in
sanitation. This overall increase in grants and contributions revenue was offset by decreases in
the other revenue sources. The most significant decrease of $9.1 million was in real property
taxes, which was due to a slight decline in the value of net taxable real property as evidenced in
the accompanying statistical tables but is an improvement as compared to the decrease of $15.2
million experienced in the prior year.
Total expenses increased by only $347,055 (less than 0.5 percent).
BRE
Condensed Statement of Activities
For the
Fiscal Years
Ended June
30, 2013 and 2012
Primary Government
Governmental Activities
Business -type Activities
Total
2013
2012
2013 2012
2013
2012
Revenues:
Program revenues:
Charges for services
$ 34,930,495
$ 34,875,798
$ 432,057 $ 3931)464
$ 35,362552
$ 35,269,262
Operating grants and contributions
445410,353
45,767,655
123,800 131,227
44,534,153
45,89802
Capital grants and contributions
107584,670
86,754,033
- -
107584,670
867754,033
General revenues:
Property taxes
200,775,779
209,8941427
- -
200,7752779
209,894,427
Other taxes
28,206,334
291.7255,027
- -
28206,334
29,255,027
Grants and contributions, unrestricted
17,750,132
19,0741.7105
- -
17,750,132
19,074,105
Investment earnings (loss)
(81,020)
2307804
1,416 5,641
(79,604)
2367445
Other
2,320,838
15773258
342,275 -
2,663,113
1,773258
Total revenues
435,897,581
427,625,107
899,548 530,332
436,797,129
428,155,439
Expenses:
General government
55,616,102
56,115,599
- -
55,616,102
56,115,599
Public safety
151,975,049
1521J2884P979
- -
151,975,049
152,288,979
Highways and streets
42,219,903
427462,299
- -
42,2191.7903
42,462,299
Health, education and welfare
28,001,020
28,127,691
496,017 517,052
28,497,037
28,644,743
Culture and recreation
221)1212336
23,412,948
- -
22,121,336
23,412,948
Sanitation
38,505,086
35,049,546
- -
385051.$086
35,049546
Interest on long-term debt
13,885,003
14,519,382
- -
1305,003
14519,382
Total expenses
352,323,499
3511)9761.1444
4961.1017 517,052
352,819,516
352493,496
Increase in net position 835745082 751)6481.7663 403531 13,280 83,977,613 75,661,943
Net position at beginning of year 682,085,644 606,4361>981 956,914 943,634 683,042558 607,380,615
Net position at end of year $ 765,659,726 $ 6821.10851.1644 $ 1,360,445 $ 956,914 $ 767,020,171 __F6_8_31P042558
Analysis of Changes in Net Position
Governmental activities. Governmental activities increased the County's net position by
$83.6 million or basically all of the total growth in net position of the County.
Total revenues increased by $8.3 million (2 percent). The combined total revenues for both the
Operating and Capital grants and contributions also increased by approximately $19.5 million,
which related mostly to increases in highways and streets projects being netted with decreases in
sanitation. This overall increase in grants and contributions revenue was offset by decreases in
the other revenue sources. The most significant decrease of $9.1 million was in real property
taxes, which was due to a slight decline in the value of net taxable real property as evidenced in
the accompanying statistical tables but is an improvement as compared to the decrease of $15.2
million experienced in the prior year.
Total expenses increased by only $347,055 (less than 0.5 percent).
BRE
Expenses and Program Revenues — Governmental Activities
Year Ended June 30, 2013
Revenue by Source — Governmental Activities
V pa r F.n ri pa _Tll n p UN WIVA
—20—
AL vas a i as asv V.+ v as as v y vAhw %F
Investment loss,
Other, $2,320,838
Charges for services
g
$(81,020)
$34,930,495
Grants and contributions
not restricted to specific
rams$17,750,132
programs,
Operating grants and
contributions,
Other taxes, $28,206,334
•V;r_;
��:: `=- •��;:�--S; ;OM1
$44,410,353
Property taxes,
$200,775,779
Capital grants and
contributions,
$107,584,670
—20—
The charts above 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 (43 percent),
followed by general government (16 percent) and highways and streets (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 (46 percent), followed by capital
grants and contributions (25 percent) and operating grants and contributions (10 percent).
Business -type activities. Business -type activities increased the County's net position by
$403,531 versus an increase of only $13,280 in the prior year. Expenses for health, education and
welfare account for all of the $496,017 of expenses. Charges for services were $432,057,
operating grants and contributions were $123,800 and investment earnings were $1,416. Other
income of $342,275 was recognized due to the forgiveness of a lease payable, which accounts for
substantially all of the $369,000 increase in overall revenues. Expenses decreased $21,035 (4
percent) mostly due to decreases in general and administration expenses of $33,839.
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.
Governmental funds. 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 $195.3 million, an increase of $48.9 million in comparison with prior
year. Approximately 42 percent of this total amount ($82.0 million) constitutes unrestricted fund
balance. The unrestricted portion of the fund balance is comprised of (1) $41.6 million in
committed fund balance, (2) $31.7 million in assigned fund balance and (3) $8.7 million in
unassigned fund balance. The remainder of the fund balance is divided between $3.5 million in
nonspendable fund balance for inventory and $109.8 million in restricted fund balance.
Approximately 84% of the restricted fund balance is due to restrictions relating to highways,
streets and abandoned vehicles ($48.3 million), public safety radio system upgrade ($25.0
million), and debt service ($19.1 million).
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 $45.6 million, while total fund balance
increased to $53.9 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 21 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 $5.2 million during the current fiscal
year as compared to an increase of $4.1 million in the prior year. Ivey factors in this slight
increase ($1.1 million) over last year's increase are as follows:
A decrease of $8.4 million 05 percent) in transfers out to other funds, with the largest
reductions in the transfers to the debt service funds ($6.0 million) and to the Solid Waste
Fund ($2.4 million).
• The positive impact of the decrease in transfers out was mitigated by a decrease of $7.0
million (3 percent) in real property taxes, which was mostly due to lower collections resulting
from the slight decline in the value of net taxable real property as evidenced in the
accompanying statistical tables.
The fund balance of the County's capital projects fund increased by $53.5 million during the
current fiscal year. The increase is primarily due to the combined total of the fund's main
revenue sources of long-term debt financing, which consists of bond proceeds ($50.5 million),
premiums on the issuance of bonds ($10.1 million) and state revolving fund loan proceeds ($5.0
million); intergovernmental revenue ($11.2 million); settlement contributions ($12.5 million) and
transfers in ($3.5 million) being greater than capital and debt service expenditures ($39.5 million)
for the current fiscal year.
The debt service funds consist of the Bond Redemption Fund and the Interest Fund. These funds
have combined total fund balances of $19.1 million, all of which is restricted for the payment of
debt service. The net decrease in the combined fund balances during the current year in the debt
service funds was $7.0 million (27 percent).
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 $761,021, and $284,169 for the Ouli Ekahi Affordable Housing Project (Ouli
Ekahi). The total net position for Kulaimano increased by $643 and the net position for Ouli
Ekahi increased by $402,888. 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 $6.7 million increase in appropriations, most of which (60 percent) is due to increases in the
appropriations for capital outlays.
Differences between the final budget and the actual (budgetary basis) resulted in $242,000 more
revenues than expected and $21.8 million less expenditures than appropriated. This is primarily
due to the following factors:
• The positive variances in real property and public service company taxes of $3.7 million was
negated by an almost equal negative variance in intergovernmental revenues for both the
federal and state grants of $3.3 million.
• $5.5 million of the unspent appropriations is related to salaries and wages. The variance is
due primarily to unfilled vacancies and continued efforts by each department to control
payroll costs during the budget year due to the tough economic conditions facing the County.
The following functions are responsible for the majority of the variance: public safety ($3.5
million), general government ($1.2 million) and culture and recreation ($0.7 million).
$2.2 million is due to lower than anticipated payments needing to be made in pension related
payments. with each department increasing efforts to control costs, overtime was also
closely monitored and the corresponding pension expenditures were not incurred.
-22-
$3.5 million is due to the fact that the increase in health premiums for employees' was 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, 2013 amounts to $1,011 million (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 10
percent.
Major capital asset events during the current fiscal year included the following:
• Construction continued on the Ane Keohokalole Highway; additional construction costs of
$1.3 million were capitalized during the fiscal year.
• Construction continued on Na Kahua Hale 0 Ulu Wini Housing Project (formerly known as
Kaloko Housing Program) and related housing employment training facility; construction in
progress as of the end of the current fiscal year for both projects increased by $5.6 million to
reach a total of $6.7 million, of which the portions relating to the completed phases were
transferred to Building and Improvements.
• Construction continued on the Kalanianaole Sewer Interceptor Line Rehabilitation Phase 2;
construction in progress as of the end of the current fiscal year increased by $5.1 million to
reach a total of $5.3 million.
• Construction began on two Mamalahoa Highway Earthquake projects (MP 4.4 and 8.9);
construction in progress as of the end of the current fiscal year for both projects had reached
$3.9 million, which was transferred to Infrastructure.
• Construction began on the Edith Kanakaole Multi -Purpose Stadium Improvements;
construction in progress as of the end of the current fiscal year had reached $3.3 million,
which was transferred to Buildings and Improvements.
■ Construction began on the Kaiminani Drive Roadway Improvements Phase I; construction in
progress as of the end of the current fiscal year had reached $6.1 million.
• $68.5 million of dedicated roads were received by the County in the current fiscal year.
• $8.1 million of various other equipment and real property were dedicated and donated to the
County in the current fiscal year.
-23-
Capital Assets
(net of depreciation)
June 30, 2013 and 2012
Primary Government
Governmental Activities Business -type Activities Total
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 $313.3 million and State
Revolving Fund loans of $20.9 million. At the end of the current fiscal year, the County had total
bonded debt outstanding of $313.3 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 increased by $31.5 million (11.2 percent) during the current fiscal
year due to the issuance of new bonds totaling $50.5 million, which were offset by regularly
scheduled principal payments.
At the end of the fiscal year, the County maintained its "AA-" rating from Standard & Poor's and
Fitch and "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 $3.5 billion, which is in excess
of the County's outstanding general obligation debt. Currently the County's outstanding debt
represents 9 percent of our debt limitation.
Additional information 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 8.3 percent, which
represents almost a full percent decline from last year's rate for the same period of 9.2
percent.
• The number of visitors to the County for the current fiscal year was approximately 1.5
million, which represents an approximately 7 percent increase from the previous year's
count of 1.4 million. More importantly, visitors have been increasing their spending
almost constantly since the beginning of 2010 and the spending growth for this sector has
been even stronger than the actual arrivals.
• Astronomy continues to be a major factor in the success of the County's economy with
an estimated nearly 500 new jobs opening up through 2023 to meet the needs of the
-24-
2013
2012
2013
2012
2013
2012
Land and improvements
$ 163,565,168
$ 129,569,750
$ 753,877
$ 753,877
$ 164,319,045
$ 130,323,627
Infrastructure assets
274,969,315
246,938,042
-
-
274,969,315
246,938,042
Ground and site improvements
-
-
75,280
67,580
755280
67,584
Buildings and improvements
476,759,437
455,481,924
754,675
329,730
477,514,112
455,811,654
Easements
3,500,794
3232,428
-
-
3,500,794
3,232,428
Equipment
48,585,309
50,089,791
28,056
157967
487613,365
50,105,758
Construction work in progress
42,477,332
31,937,409
-
-
42,4771IP332
31,937,409
Total
$1,0491.1857,355
$ 917,2491)344
$ 1,611,888
$ 1,167,154
$1,011,469,243
$ 918,4161>498
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 $313.3 million and State
Revolving Fund loans of $20.9 million. At the end of the current fiscal year, the County had total
bonded debt outstanding of $313.3 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 increased by $31.5 million (11.2 percent) during the current fiscal
year due to the issuance of new bonds totaling $50.5 million, which were offset by regularly
scheduled principal payments.
At the end of the fiscal year, the County maintained its "AA-" rating from Standard & Poor's and
Fitch and "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 $3.5 billion, which is in excess
of the County's outstanding general obligation debt. Currently the County's outstanding debt
represents 9 percent of our debt limitation.
Additional information 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 8.3 percent, which
represents almost a full percent decline from last year's rate for the same period of 9.2
percent.
• The number of visitors to the County for the current fiscal year was approximately 1.5
million, which represents an approximately 7 percent increase from the previous year's
count of 1.4 million. More importantly, visitors have been increasing their spending
almost constantly since the beginning of 2010 and the spending growth for this sector has
been even stronger than the actual arrivals.
• Astronomy continues to be a major factor in the success of the County's economy with
an estimated nearly 500 new jobs opening up through 2023 to meet the needs of the
-24-
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-
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om
BASIC FINANCIAL STATEMENTS
-27-
COUNTY OF HAWAII
Statement of Net Position
June 34, 2413
Assets
Current assets:
Cash and cash equivalents (notes 3 and 14)
Restricted cash and cash equivalents (note 3 )
Investments (notes 3 and 14)
Restricted investments (note 3 )
Receivables, net (note 4)
Receivable from improvement district
(notes 4 and 10)
Internal balances (note 5 )
Inventories
Prepaid expenses
Real estate held for sale
Other
Total current assets
Investments (note 3 )
Restricted investments (note 3)
Restricted cash and cash equivalents (note 3)
Receivable from improvement district, excluding
current portion (notes 4 and 10)
Deferred charges
Capital assets (notes 6, 8 and 14):
Utility plant in service, net
Infrastructure assets, net
Ground and site improvements, net
Buildings and improvements, net
Equipment, net
Easements, net
Construction work in progress
Land and improvements
Total capital assets, net
Total noncurrent assets
Total assets
Primary Government
Governmental Business -type Component
Activities Activities Total Unit
$ 37,4445459 $ 8145157 $ 385254,616 $ 29,434,495
36,916,644
39,448
36,9565492
-
11,854,523
-
11,854,523
45,75%190
-
45,75 9,194
-
46521%906
4,979
46,224,885
71528,443
645414
-
64,414
-
(2%954)
29,954
-
-
3,492,464
-
3,4925464
152251218
-
1,541
19541
174,541
192487129
-
1,2085129
-
904,578
-
944,578
-
183,833,953
886,439
18457195992
38,3535897
34,918,751
199,434
35,118,181
-
33,17%660
-
33,179,664
-
-
26,446
269446
295745396
1,281,931
-
1,2817931
-
-
-
-
3,1371)633
-
-
-
255,152,015
274,969,315
-
27439699,315
-
-
75,284
755284
-
476,75%437
754,675
47755145112
-
48,585,309
285P456
489613,365
-
3,500,794
-
395445794
-
42,477,332
-
4254775332
11,7085146
163,5655168
753,877
1645319,445
45528,542
150095,857,355
156115888
1,011,469,243
271,38803
150793237,697
15837,724
1,481,475,421
277,1445692
1,263,471,654
23723,763
1,265,7959413
315,4545589
(Continued)
-28-
COUNTY OF HAWAII
Statement of Net Position
June 30, 2013
Liabilities
Current liabilities:
Accounts payable and accrued liabilities
Accrued payroll
Deferred revenue (note 7)
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)
Deferred revenue
Customers' deposits
Other (note 13 )
Total noncurrent liabilities
Total liabilities
Net Position
Net investment in capital assets
Restricted for:
Capital projects
Debt service (note 10)
Highways, streets and abandoned vehicles
Public access open space
Other
Unrestricted
Total net position
See accompanying notes to the basic financial statements.
(Concluded)
Primary Government
Governmental Business -type Component
$ 1.4,986,633
$ 49,289
$ 15,0355922
$ 25769,640
756535546
-
71653,546
150205654
3,440501.1
105
3,441,616
-
6,11%45 9
15,791
651355250
150299460
185854,249
405571
185894,820
21556,320
7,540,581
-
7,540,581
4035222
208,535
-
208,535
51,227
1,335,930
-
153359930
-
193,821
-
193,821
-
-
-
-
589,539
3,306,979
-
3,3065979
-
66,039,744
1075256
66,147,000
85420,062
33457035553
152565062
3355959,615
51,123,708
24,624,529
-
24,6245529
151475631
9,7955927
-
9,795,927
1775773
2,296,490
-
2,2965490
-
21,791,179
-
21,7915179
-
-
-
-
1,5835953
-
-
-
165459,048
3851603502
-
3851601502
-
43153725180
152565062
43256281242
7054925113
49754115924
1,3635318
49857755242
785912,175
69953265156
315,255
69956415411
22052835031
22,760,127
-
2257605127
-
19,126,622
-
195126,622
-
14583 85441
-
14583 8,441
-
4,192,817
-
451925817
-
3,51%700
-
355199700
-
1,895,863
150455190
259415053
1652591383
$ 76556595726
$ 153605445
$ 76750205171
$ 23655425414
-29-
COUNTY OF HAWAII
Statement of Activities
For the Fiscal Year Ended June 30, 2013
Functions/Proarams
Primary government:
Governmental activities:
General government
Public safety
Highways and streets
Health, education and welfare
Culture and recreation
Sanitation
Interest on long-term debt
Total governmental activities
Business -type activities:
Health, education and welfare
Total primary government
Component unit:
Water (note 14)
Program Revenues
Operating Capital
Charges for Grants and Grants and
Expenses Services Contributions Contributions
$ 555616,102
$ 15695,152 $
15159751049
55117,102
423219,903
105159,443
28,001,020
5709312
22,1213336
1,7949553
38,50506
15,5939933
1358855003
-
352,323,499 3459309495
1,9835060 $
19,664,648
2,073,483
19,562,429
59,213
1,067,520
5,217,111
25
97,316,020
3,194,290
640,400
1,216,824
441)410,353 10755845670
496,017 432,057 12300 -
$ 3525819,516 $ 359362,552 $ 4495345153 $ 1075584,670
$ 515575,668 $ 485406,240 $ - $ 155226,253
General revenues:
Taxes:
Property taxes, levied for general purposes
Public service company taxes
Public utility franchise taxes
Fuel taxes
Grants and contributions not restricted to specific programs
Investment earnings (loss)
Other
Total general revenues
Change in net position
Net position, beginning of year
Net position, end of year
See accompanying notes to the basic financial statements.
-30-
Net (Expense) Revenue and Changes in Net Position
Primary Government
Governmental Business -type Component
Activities Activities Total Unit
$ (4657205779) $
- $ (46,720,779) $ -
(127,193,274)
- (1275193,274) -
67,329,043
- 67,329,043 -
(4,673,989)
- (49,6739989) -
(19,627,170)
- (1956275170) -
(20,626,809)
- (2096265809) -
(13,885,003}
- _J1305100 -
(165,3973981) - (165,397,981) -
595840 5%840 -
(165,397,981} 59,840 165,3385141 -
12,056,825
200,775,779
-
20057755779
-
10,766,021
-
1057665021
-
11,087,369
-
1150875369
-
6,352,944
-
6,352,944
-
17,750,132
-
17,7509132
-
(81,020)
1,416
(799604)
231,984
25320,838
3425275
25663,113
-
248,972,063
3435691
249,315,754
231,984
835574,082
4035531
8359775613
12,288,809
6825085,644
956,914
6835042,558
224,25305
$ 765,659,726 $
1536051445
$7675020,171 $
2369542,414
MIE
COUNTY OF HAWAII
Governmental Funds
Balance Sheet
June 30, 2013
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
Real estate held for sale
Other
Total assets
Liabilities and Fund Balances
Liabilities:
Accounts payable
Accrued payroll
Due to other governmental funds (note 5)
Due to other nongovernmental funds (note 5)
Deferred revenue (note 7)
Other
Total liabilities
Fund balances:
Nonsp endab l e: Inventory
Restricted for:
Debt service (note 10)
Highways, streets and abandoned vehicles
Public access open space
Public safety radio system upgrade
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 and fund balances
See accompanying notes to the basic financial statements.
Other Total
Capital Governmental Governmental
General Proj ects Funds Funds
$ 937915443 $ 26,619,537 $ 37,950,123 $ 74,361,103
43,3045841
595679,192
22,7289091
1255712,124
245361,511
911,667
2,774,122
2810471300
150935757
7253732
2415289
25060,778
-
-
1,350
15350
10,7685812
556883423
157155371
18517206
35492,464
-
-
3,492464
-
1,20 8,129
-
1,208,129
3073135
-
5975443
904,578
33.119.963
S 94.832.680
$ 66.007.783
S 253„960.432
$ 2,457,715 $ 936045872 $ 2,924,046 $ 14,986,633
69637,658
-
150153888
7,653,546
548,747
1,001,980
510,051
250603778
31,304
-
-
31,304
263936,536
8525988
258791294
3036685818
23559,396
3025450
4451133
3,306,979
39,171,356
11,762,290
7,7742412
_ 58,708,058
3,492,464 - - 35492,464
19,126,622 199126,622
-
3355045647
14183 8441
48534308
4,192, 817
-
-
4,192, 817
-
25,000,000
-
255000,000
6715088
91568,558
258485612
131088,258
550165857
-
-
5,016,857
5,076,587
-
-
5,0765587
-
-
451765671
4,176,671
-
-
2,037,622
25037,622
-
-
1250215732
12,021,732
1,2521P921
-
-
152525921
-
9465490
25696,777
336435267
-
1,8665699
8409
1,951,508
-
256245050
-
236245050
719,163
236455626
402,091
357665880
21,650,000
-
-
2136505000
351825390
63914,320
-
10,0965710
8,694,320
-
-
856945320
53,948,607
83,070,390
5.8,233,377
_ 195,252,374
93.119.963
94.832.680
$ 66.007.789
S-25309601,432,
-32-
COUNTY OF HAWAII
Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position
June 30, 2013
Total fund balances - governmental funds $ 195,2521374
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
16335655168
Infrastructure assets, net
27459695315
Buildings and improvements, net
476,759,437
Equipment, net
48,585,309
Easements, net
3,500,794
Construction work in progress
4254775332
Total capital assets
(3851605502)
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 funds. Those liabilities consist of:
Bonds and loans payable, net of receivable
from improvement district
(3523,211,857)
Interest on long-term debt
(6,119,459)
Capital leases
(3,6325420)
Compensated absences
(3251655110)
Claims and judgments
(12,404,462)
Landfill costs payable
(21,985,000)
Other Postemployment Benefit Obligation (OPEB)
(3851605502)
Total long-term liabilities
Net position of governmental activities
See accompanying notes to the basic financial statements.
-33-
1,009,8575355
27,228,807
(4665678,810}
$ 765,659,726
COUNTY OF HAWAII
Governmental Funds
Statement of Revenues, Expenditures, and Changes in Fund Balances
For the Fiscal Year Ended June 30, 2013
Revenues
Property taxes
Public service company taxes
Fuel taxes
Public utility franchise taxes
Licenses and permits
Intergovernmental
Charges for services
Investment earnings (losses)
Settlement contributions
Other
Total revenues
Expenditures
Current:
General government
Public safety
Highways and streets
Health, education and welfare
Culture and recreation
Sanitation
Pension and retirement
contributions (note 13)
Employees' health insurance
Other
Debt service:
Principal
Interest
Capital outlay
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Capital
General Projects
Other Total
Governmental Governmental
Funds Funds
$201,2005542
$ -
$ -
$201,2009542
10,766,021
-
-
10,766,021
-
-
65352,944
61352,944
-
-
11,087,369
11,087,369
613927990
-
9,598,257
15,991,247
501421,639
115156,209
18933301
79,911,539
2,7825,119
-
145273,236
17,0555355
(3385974)
(2819305)
2,353
(6175926)
-
1255007000
-
1295005000
254705808
5785192
1,34%757
413985757
27356953145
23,9535096
60,997,607
358,645,848
3353345811
- 24,890
33,3599701
1005962,048
- 5,922,594
10691884,642
25756,175
- 15,167,091
1799237266
71)293,799
- 16,9041,896
249198,695
1554735939
- 862,797
169336,736
874,428
- 29011393
3096715821
255737,117
- 4,079,470
299816,587
231909,503
- 2,1015864
2690119367
2,1725038
- 8195487
299919525
4135716
- 255303,992
25,7175708
415116
- 145303,986
14,3455102
9,108,584
3954565179 -
4895649763
222,0735274
395456,179 115,292,460
376,821,913
51,621,871 (155503,083) (545294,853) (1891765065)
-34-
(Continued)
COUNTY OF HAWAII
Governmental Funds
Statement of Revenues, Expenditures, and Changes in Fund Balances
For the Fiscal Year Ended June 30, 2013
(Concluded)
Other Total
Capital Governmental Governmental
General Projects Funds Funds
Other Financing Sources (Uses)
Sale of assets
$ 15046
$ -
$ -
$ 1,046
Increase in capital leases (notes 8 and 10)
193065791
-
-
15306,791
State Revolving Fund loans (note 10)
-
4,991,351
-
4,991,351
Issuance of bonds (note 10)
-
5054805049
-
5094809049
Premium on bonds (note 10)
5,8715519
1050925820
11605,461
17,569,800
Refunding bonds (note 10)
39,48000
-
81029,843
47,509,843
Payment to refunded bond escrow
agent (note 10)
(455351,519)
-
-
(455,3519519)
Retirement of refunded debt (note 10)
-
-
(9,6359304)
(9,6355304)
Transfers in (note 5)
-
31)460,483
471895,968
51,356,451
Transfers out (note 5)
(4798955968)
-
(3,460,483)
5193565451}
Total other financing sources (uses)
(4695885131}
69,0245703
44,4351)485
669872,057
Net change in fund balances
51033,740
53,521,620
(91859,368)
48,695,992
Fund balances at beginning of year
481726,954
29,5485770
683092,745
146,368,469
Increase in reserve for inventories
1879913
-
-
1875913
Fund balances at end of year
$ 5339485607
$ 83,0709390
$ 5852335377
$195,252,374
See accompanying notes to the basic financial statements.
WRE
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, 2013
Net change in fund balances - total governmental funds $ 4856959992
Amounts reported for governmental activities in the statement of activities are
different because:
Capital outlays are reported as expenditures in governmental funds.
However, in the statement of activities, the cost of capital assets is
allocated over their estimated useful lives as depreciation expense. In
the current period, these amounts are:
Capital outlay 51556908
Dedicated and contributed property 763587,171
Depreciation expense and loss on disposals (35,548,168}
Excess of capital outlay over depreciation expense 9256085011
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, proceeds were received from:
General obligation bonds, net of refunding (45,0735574)
Premium on bond issuance (17556%800)
Deferred amount on refunding of bonds 682,146
State Revolving Fund loans, net of refunding (4,991,351)
Capital leases (1,3065791)
Total debt proceeds (68,2599370)
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, net of refunding 12001025
State Revolving Fund loan repayments/forgiveness 13,15904
Capital lease payments 13477,989
Total long-term debt repayment 26,717,708
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 decreased by
this amount this year. (301,574)
(Continued)
-36-
COUNTY OF HAWAII
Reconciliation of the Change in Fund Balances of Governmental Funds
to the Statement of Activities
For the Fiscal Year Ended June 30, 2013
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
Increase in Other Postemployment Benefit Obligation (OPEB)
Decrease in compensated absences
Increase in claims and judgments
Increase in landfill closurelpostclosure care costs
Amortization of premium from bond issuance
Amortization of deferred amount on refunding of bonds
Net increase in accrued interest
Net additional expenses
Change in net position of governmental activities
See accompanying notes to the basic financial statements.
-37-
$ 187,913
( 15, 8 20,170)
415,469
(119575355)
(561,000)
2,207,148
(277,496)
(81,194)
(Concluded)
(155886,685)
$ 831)5745082
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, 2013
Revenues:
Taxes and assessments:
Property taxes
Public service company taxes
Total taxes and assessments
Licenses and permits:
Nonbusiness licenses and permits
Business licenses
Street use
Total licenses and permits
Intergovernmental:
Federal:
Programs for the aged
Community development block grants
HOME program grant
Laval enforcement
Other
Total federal
State:
State General Fund - Act 185,
SLH 1990
Emergency medical services
Other
Total State
Total intergovernmental revenue
Charges for services:
General government
Culture and recreation
Highways and streets
Public safety
Total charges for services
Fines and forfeitures
Rents
Actual
Variance
Original Final (Budgetary
Positive
Budget Budget Basis)
__(Negative)
$ 19853005000 $ 198,5905000 $ 201,200,542 $ 21610,542
933775600
91P62700
10,7661P021
1,1385421
20756775600
208,2175600
211,966,563
3,748,963
7,4675544
2,8797200
258793200
397555144
8755944
1,522,102
115223102
.15090,342
(4315760)
1,510,000
15510,000
1,547,504
375504
5,911,302
5,9115302
65392,990
48108
2,013,996 250135996
- 2,5005p000
I ,050,279
2,285,050 29633,107
755645884 1250305710
1772985000
17,29800
14,358,592
1493583592
5,9305857
7,275,959
1 12, 123
5,3725021
5,372,021
151595400
1,159,400
824,000
82400
1 12, 123
1125123
7,4675544
75467,544
15388,600
1,3885600
1865080
186,080
-38-
133725809 (6415,187)
2,500,000 -
1,050,279 -
1,484,359 (1,148,748)
3,45 8,118 (3 75,210)
958651)565 _ (2,165,145)
17,298,000 -
149358,592 -
6,131,710 1,144,249)
37,788,302 (1,144,249}
47,653,867 35309,394
4,842,578
(5295443)
965,450
(1935950)
6945821
(129,179)
1145788
25665
6,617,637 (849,907)
l b I,U.i 1 (19,U49)
(Continued)
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, 2013
Revenues (continued):
Interest and penalties
Miscellaneous
Total revenues
Expenditures:
Current:
General government:
Finance
General government building
Legislative
Automotive equipment
Laval
Research and development
Planning and zoning
Mayor's office
Engineering
Information technology
Human resources
Public Works administration
Elections
Legislative auditor
Total general government
Public safety:
Police department
Fire department
Prosecuting attorney
Protective inspection
Liquor control
Flood control
Civil defense agency
Animal control
Total public safety
Highways and streets:
Mass transit
Actual Variance
Original Final (Budgetary Positive
Budget Budget _ Basis} (Negative)
$ 10000 $ 1001000 $ 352,948 $ 2525948
5,1321589 5,2073589 55108,145 995444
eIP7 7 n I c n A o "1 P7 n A A 1 f% P7 L "I PM c o A A A n 11 A rl A'7')
958335353
9,904,648
8,884,850
13019,798
4,94802
49821,192
45446,301
3745891
3,100,704
3,1315357
259955006
1365351
5,743,679
5,7409079
459485719
7915360
2,5325561
2,532,561
2,229,181
303,380
2,951,619
3,071,619
2,774,527
297,092
258475535
2,847,535
2075137
180,398
1,276,657
1,321,764
15173,120
148,644
1,237,009
1,2371009
1,160,370
765639
1,631,339
1,6311339
11>534,174
975165
113707,354
1,707,354
1,627,266
801)088
15215,174
1,218,774
191625601
569173
868,879
873,104
8375035
36,069
786,484
786,484
599,394
187,090
40015039
401X41)819
37,0399681
35785,138
53,948,484
54,280,705
5055655735
3,714,970
3733825687
37021304
35,935,154
157275150
7,8305753
8,169,766
6,5795553
1,590,213
139645771
2,092,271
158345010
258,261
1,469,102
1,7215402
1,557,798
1635604
3095000
309,000
306,550
251450
1,2315059
1,354,511
955,193
399,318
159829500
1,982,500
1,8705000
112,500
106,118,356
107,572,459
991>603,993
759685466
3,300,812 353005812
-39-
3,174,806 1265006
(Continued)
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, 2013
Expenditures (continued):
Current (continued):
Health, education and welfare:
Elderly activities
Office of aging
Education
Social programs
Cemeteries
Physical examination
Total health, education and welfare
Culture and recreation:
Community music
Organized recreation:
Maintenance
Recreation
Aquatics
Hoolulu park complex
Administration
Children's zoo
Summerllntersession
Culture and arts
Elderly activities administration
Total culture and recreation
Sanitation:
Environmental management
Pension and retirement contributions
Employees' health insurance
Other postemployment benefits
Other
Total current
Actual Variance
Original Final (Budgetary Positive
Budget Budget Basis) (Negative)
$ 3,353,637 $ 3,354,637 $ 3,076,479 $ 278,158
2,3235947
3,225,872
25435,632
790,240
585500
589500
4800
9,810
1,50000
1,50000
154555250
441750
3485944
3235944
2925016
315928
133,825
133,825
1285355
5,470
757185853
8,5963778
7,4365422
1,160,356
27106
240,386
198,212
42,174
7,129,510
7523651510
6,8655167
3713343
2,4685345
255205334
2,3855206
1351P128
2,260,033
2,236,033
2,107,883
128,150
9029602
9065602
888,845
17,757
1,5185575
1,432,575
11315,943
116,632
638,232
6405232
629,640
10,592
502,045
502,045
3355989
166,056
230,833
232,333
1985727
33,606
4995285
500,285
4331270
67,015
16,421,346
165447,335
15,35 8,882
1,0885453
11006,997
11006,997
872,536
134,461
27,3969238
27,3965238
25,1745814
252219424
27,4055000
27,40500
23,9125049
3,4929951
305000
305000
155833
145167
4525000
39861,152
2,021,046
1,840,106
234,328,641
236,4415590
214,610,062
21,831,528
-40-
(Continued)
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, 2013
Expenditures (continued):
Capital Outlay:
Community Development Block
grants (HUD)
HOME Program
Other
Total capital outlay
Total expenditures
Excess of revenues over expenditures
Other financing sources (uses):
Transfers out:
Housing Fund
Solid Waste Fund
Golf Course Fund
Sewer Connection Loan Fund
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 Budget w Basis) (Negative}
$ - $ 2157500 $ 2,57500 $ -
1,050,279 1,050,279 -
4005000 4005000 -
450259279 450255279 -
2345328,641 24054669869 21856355341 21,831.,528
(838,384)
(838,384)
(838,384)
(15,736,944)
(1597365944)
(151736,944)
(299,000)
(299,000)
(299,000)
(1 oo,00o)
(1009000)
(100,000)
(2509000)
(250,000)
(250,000)
(359669000)
(4,256,000)
(4,024,011)
-
(2509000)
(220,960)
(2509000)
(250,000)
(250,000)
(3592505229)
(359250,229}
(35,2509229)
(56,6905557} (575230,557) (567969,528)
(563690,557} (5732305557} (565969,528)
231,989
29,040
2615029
(18,003,150) (185255,450) 4,079,580 2253355030
4857265954 48,726,954 48,7261)954 -
$ 30,7235804 $ 305471,504 $ 5258069534 $ 22,335,030
-41-
COUNTY OF HAWAII
Proprietary Funds
Statement of Net Position
June 30'. 2013
Assets
Current assets:
Cash and cash equivalents (note 3 )
Restricted cash and cash equivalents (note 3)
Impre st fund (note 3 )
Receivables, net (note 4)
Internal balances, net (note 5)
Prepaid expenses
Total current assets
Noncurrent assets:
Restricted cash and cash equivalents (note 3)
Investments (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 developer
Security deposits payable from restricted assets
Deferred revenue (note 7)
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
See accompanying notes to the basic financial statements.
-42-
Business -type Activities -
Enterprise Funds
Kulaimano Quli Ekahi
Elderly Affordable
Housing Housing
Project Project Total
$ 550,325 $
25902 $
8105007
12,334
275114
39,448
50
100
150
310
45669
4,979
295954
-
29,954
15,501
-
1,501
594,474
291,565
8865039
- 26,406 26,406
1995430 - 1991430
511,000
515,727
1,026,727
15241,333
469,635
15710,968
1,115,825
(91982)
151255807
636,508
975,380
156119888
8351938
190015786
L837,724_
1,430,412
152935351
2,723,763
3,526
-
35526
-
7,729
75729
12,334
25,700
383,034
15232
373
105
15,791
-
15,791
24,071
169500
40,571
56,954
505302
107,256
8115037
445,025
152565062
8675991
4955327
1,3635318
(198,600)
5131855
3155255
7615021
284,169
150455190
$ 5625421
$ 798,024
$ 153605445
COUNTY OF HAWAII
Proprietary Funds
Statement of Revenues, Expenses, and Changes in Fund Net Position
For the Fiscal Year Ended June 30, 2013
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
Other income
Total nonoperating revenues (expenses)
Change in net position
Net position, beginning of year
Net position, end of year
See accompanying notes to the basic financial statements.
-43-
Business -type Activities -
Enterprise Funds
Kulaimano Ouli Ekahi
Elderly Affordable
Housing Housing
Proj ect Project Total
$ 121,731 $
30307
$ 4245798
12300
-
1235800
3,454
-
3,454
-
305
35805
248,985
306,872
5555857
39,957
845082
124,039
775049
855613
16202
435947
665590
110,537
341422
9,982
445404
1955375
246,267
4415642
535610
60,605
1145215
1,408
8
15416
(54,375)
-
(54,375)
-
342,275
342,275
(525967)
342,283
289,316
643
4025888
403,531
5615778
395,136
9565914
$ 5621421 $
7981024
$ 11)360,445
COUNTY OF 14AWAII
Proprietary Funds
Statement of Cash Flows
For the Fiscal Year Ended June 305 2013
See accompanying notes to the basic financial statements.
-44-
Business -type Activities -
Enterprise Funds
Kulaimano
Dull Ekahi
Elderly
Affordable
Housing
Housing
Project
Project
Total
Cash Flows from Operating Activities
Receipts from tenants
$ 1257842
$ 3055761
$ 4315603
Receipts from federal government - ffUD
12300
-
123,800
Payments to suppliers for goods and services
(160,738}
(237,901)
(398,639)
Net cash provided by operating activities
885904
671860
1563764
Cash Flows from Capital and Related Financing Activities
Principal paid on notes payable
(205182)
(16,905)
(37,087)
Issuance of bonds
531,124
-
8315124
Retirement of refunded debt
(831,124)
-
(8315124)
Interest paid on notes payable
(345600)
-
(345600)
Purchase of capital assets
(7,653)
(35055)
(10,708)
Other payments
(31,304)
-
(31,304)
Net cash used in capital and related financing activities
(939739)
(19,960)
(113,699}
Cash Flows from Investing Activities
Purchase of investments
(2005000)
-
(200,000)
Proceeds from maturities of investments
4005000
-
400,000
Interest on investments
35058
8
3,066
Net cash provided by investing activities
203,055
S
203,066
Net increase in cash and cash equivalents
1985223
47,905
246,131
Cash and cash equivalents at beginning of year (including
restricted cash and cash equivalents)
364,486
265,394
629,880
Cash and cash equivalents at end of year (including
restricted cash and cash equivalents)
$ 5623709
$ 313,302
$ 8761,011
Reconciliation of Operating Income to Net Cash
Provided by Operating Activities
Operating income
$ 53,610
$ 60,605
$ 114,215
Adjustments to reconcile operating income to net cash
provided by operating activities:
Depreciation expense
34,422
9,982
441404
Change in assets and liabilities:
Receivables, net
667
(790)
(123)
Prepaid expenses
120
-
120
Accounts and other payables
309
(316)
(7)
Deferred revenue
(224)
13621
1,545
Net cash provided by operating activities
$ 881904
$ 67,860
$ 156,764
Supplemental disclosure of cash flow information - Interest paid
$ 34,600
$ -
$ 3400
Noncash investing, capital and financing activities:
Net decrease in fair value of investments
$ 570
$ -
$ 570
Acquisition of housing project in exchange
for assumption of debt
$ -
$ 478,430
$ 47$,430
See accompanying notes to the basic financial statements.
-44-
COUNTY OF HAWAII
Fiduciary Funds
Statement of Fiduciary Net Position
June 30, 2013
Private -
Purpose Agency
Trusts Funds
Assets
Cash and cash equivalents (note 3) $ 1,741,254 $ 3,094,097
Investments (note 3) 3,030,761 1899525
Receivables:
Due from other agency funds - 25542
Other receivables 463 72,500
Total receivables 463 755042
Total assets 45772,478 $ 3,3585664
Liabilities
Due to other agency funds - 2,542
Accrued liabilities - 20%304
Advances payable - 2395724
Assets held for the benefit of improvement districts - 417,094
Total liabilities - $ 3,358,664
Net Position
Held in trust for other parties 457725478
Total net position $ 457725478
See accompanying notes to the basic financial statements.
-45-
COUNTY OF HAWAII
Fiduciary Funds
Statement of Changes in Fiduciary Net Position
For the Fiscal Year Ended June 30, 2013
See accompanying notes to the basic financial statements.
woll
Private -
Purpose
Trusts
Additions
Contributions:
Puna Geothermal Venture
$ 50,000
Investment earnings:
Net increase in fair value of investments
295957
Dividends
55,825
Interest
29100
Total additions
137,892
Deductions
Grant payments
290,734
Total deductions
290,734
Change in net position
(152,842)
Net position, beginning of year
45925,320
Net position, end of year
$ 49772,478
See accompanying notes to the basic financial statements.
woll
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2013
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 financial 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 .deporting 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 .deporting 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 by GASB Statement No. 61, defines component units as
legally separate organizations for which the elected officials of the primary government are
financially accountable or for which the primary government may determine, through exercise
of management's professional judgment, that the inclusion of 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 fiscally dependent on the primary
government and is either able to impose its will on that organization or there is a potential for
the organization to provide specific financial benefits to, or impose specific financial burdens
on, the primary government. A primary government has the ability to impose its will on 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 any one of three conditions exist: (1)
The primary government is legally entitled to or can otherwise access the organization's
-47-
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2013
resources; (2) The primary government is legally obligated or has otherwise assumed the
obligation to 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 Hawai` i (the primary government) and its
component unit, the Department of Water Supply (the Department). This component unit is
included in the County's reporting entity because of its financial relationship with the County.
Discretely Presented Component Unit The component unit column in the basic financial
statements includes the financial data of the Department, a legally independent agency of the
County that is accounted for as an enterprise fund. It is reported in a separate column to
emphasize that it is legally separate from the County. The members of the Water
Commission, the governing body of the Department, are appointed by the Mayor of the
County and confirmed by the County Council. The Department is granted corporate powers
by state statute and the County Charter. Although the County does not have the authority to
approve or modify the Department's operational and capital budgets, the County has issued
bonds on the Department's behalf that are general obligations of the County. Because the
County is obligated to repay these bonds in the event of default by the Department, the County
is financially accountable for the debts of the Department. See Note 14 for component unit
disclosures for the Department. Complete financial statements of the Department can be
obtained from the Department of Water Supply, 345 Kekuanaoa 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
-48-
�/ I/Ili_� ._:_ : 1
Notes to the Basic Financial Statements
June 30, 2013
grants column reflects capital -specific grants. The net cost (by function or business -type
activity) is normally covered by general revenues.
The government -wide focus is more on the sustainability of the County as an entity and the
change in aggregate financial position resulting from the activities of the fiscal period.
The fund financial statements' emphasis is on the major funds in either the governmental or
business -type categories. Nonmajor funds (by category) are summarized into a single column.
The governmental funds in the fund financial statements are presented on a current financial
resource 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 on a different measurement focus and basis of
accounting than the government -wide statements' governmental activities column, a
reconciliation is presented on the page following each statement, which briefly explains the
adjustments necessary to transform the fund based financial statements into the governmental
activities column of the government -wide presentation.
The County's fiduciary funds are presented in the fund financial statements by type (private
purpose and agency). Since by definition these assets are being held for the benefit of a third
party (private parties, state government, etc.) and cannot be used to address activities or
obligations of the government, these funds are not incorporated into the government -wide
statements.
Government -wide and fund financial statements --- The government -wide financial statements
(i.e., the statement of net position and the statement of changes in net position) 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. Governmental
activities, which normally are supported by taxes and intergovernmental revenues, are
reported separately from business -type activities, which rely to a significant extent on fees and
charges for support. Likewise, the primary government is reported separately from certain
legally separate component units for which the primary government is financially accountable.
The statement of activities demonstrates the degree to which the direct expenses of a given
function or segment are offset by program revenues. Direct expenses are those that are clearly
identifiable with a specific function or segment. Program revenues include (a) charges to
customers or applicants who purchase, use, or directly benefit from goods, services, or
privileges provided by a given function or segment and (b) grants and contributions that are
restricted to meeting the operational or capital requirements of a particular function or
-49-
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2013
segment. Taxes and other items not included among program revenues are reported instead as
general revenues.
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 funds — The financial transactions of the County are recorded in individual funds.
Each fund is accounted for by providing a separate set of self -balancing accounts that
comprises its assets, liabilities, 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's Discussion and
Analysis —for State and Local Governments, sets forth minimum criteria (percentage of the
assets, liabilities, revenues or expenditures/expenses of either fund category or the
governmental and enterprise combined) for the determination of major funds. The non -major
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 Fund — Used to account for the costs of constructing County capital
improvements financed with general obligation bond proceeds, federal and state grants,
and general and special revenue fund revenues. The capital projects fund is used to
account for financial resources to be used for the acquisition or construction of major
general government capital facilities and infrastructure (other than those financed by
proprietary funds and trust funds) when separate project centers are needed to control
Costs.
The County reports the following major proprietary funds:
Kulaimano Elderly Housing Project — Used to account for the operation of a rental
housing project for low-income senior citizens located north of Hilo.
Guli Ekahi Affordable Housing Project --- Used to account for the operation of a 33 -unit
single-family affordable rental housing project located in Waimea.
-50-
Notes to the Basic Financial Statements
June 30, 2013
The County reports the following fiduciary funds:
Private -Purpose Frust Funds — Used to account for funds received from geothermal
developers to mitigate the effects of geothermal energy development. Also used to
account for investment income on funds received from import businesses at the port of
Hilo and the related expenditures. to promote health and safety on the Island of Hawai-i.
Agency Funds — Used to account for assets held by the County for other governmental
units and individuals. The agency funds are custodial in nature and do not involve
measurement of results of operations. The County has the following agency funds:
• State weight Tax Fund
• Improvement District No. 18 Fund
• Improvement District 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.
-51-
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2013
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 unearned revenue in its fund financial statements (see Note 7). Unearned
revenues 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 liability for unearned revenue is removed from the combined
balance sheet 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; and (c) principal and interest on general long-term debt which are
recognized as expenditures when due.
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 Certified 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.
-52-
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2013
Cash and Investments
Cash and cash equivalents include cash on hand, amounts in demand deposits, 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. Valuations of certificates of deposits are based on cost, which
approximate fair market value, as they almost invariably are held to maturity. 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 I% 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.
Inventories
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 Hawai` i 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, 2013 of $671,088 are reflected as a restriction of general fund balance.
-53 -
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2013
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 estimated fair market value
at the date of donation.
The costs of normal maintenance and repairs that do not add to the value of the asset or
materially extend the life of the asset are not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are constructed.
Interest incurred during the construction phase of capital assets of business -type activities is
included as part of the capitalized value of the assets constructed.
Capital assets of the primary government and enterprise fund are depreciated using the
straight-line method over the following estimated useful lives of the assets:
Assets
Infrastructure
Buildings and improvements
Ground and site improvements
Equipment
Easements
Long-term obligations
Years
20 to 100 years
50 to 100 years
20 to 50 years
5 to 40 years
Dependent on terms of easement agreement
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
-54-
X191 II Wk wool a . FMA ■
Notes to the Basic Financial Statements
June 30, 2013
an employee can accumulate. Both compensatory time off and vacation credits are converted
to pay upon termination of employment.
A liability for these amounts is reported in the governmental funds only if they have matured,
for example, as a result of employee resignations and retirements. All vacation and
compensatory time off pay is accrued in the government -wide statement of net position along
with the estimated liability for social security and Medicare taxes and employers' retirement
contributions on those amounts.
Sick leave accumulates without limit. Sick leave can be taken only in the event of illness and
is not convertible to pay upon termination of employment; therefore there is no related
liability. However, a County employee who retires or leaves government service in good
standing with 60 days or more of unused sick leave is entitled to additional service credit in
the Employees' Retirement System of the State of Hawaii. Accumulated sick leave at
June 30, 2013 totaled $65,452,000 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 S). 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.
Retirement Plan Contributions
The County's contribution to the Employees' Retirement System of the State of Hawai` i
includes the normal cost plus the level annual payment required to amortize the unfunded
actuarial accrued liability. The County's policy is to fund its required contribution annually
(see Note 13).
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.
-55-
Notes to the Basic Financial Statements
June 30, 2013
Use of Estimates
The preparation of the basic financial statements in conformity with GAAP requires
management to make estimates and assumptions that affect the reported amounts of assets and
liabilities, as well as disclosure of contingent assets and liabilities at the date of the financial
statements, and the reported amounts of revenues, expenditures, and other financing sources
and uses during the reporting period. Actual results could differ from those estimates.
Fund Balances
When both restricted and unrestricted fund balances are available for use, it is the County's
policy to use restricted fund balance first, then unrestricted fund balance. Furthermore,
committed fund balances are reduced first, followed by assigned amounts, and then
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. 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 §2-19 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 Balance — Assigned fund balances are amounts that are constrained by the
County's intent as determined by the Mayor but are neither restricted nor committed.
The County's only assigned fund balances are in the General Fund and Capital Projects
Fund and the majority consists of the portion of fund balance that is intended to balance
the subsequent year's budget.
Well
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2013
Unassigned Fund Balance — This is the residual classification of the General Fund and the
Capital Projects Fund.
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 November 2010, GASB issued Statement No. 60, Accounting and Financial Reporting for
Service Concession Arrangements. The objective of this Statement is to improve financial
reporting by addressing issues related to service concession arrangements. The requirements
of this Statement were effective for financial statements for periods beginning after December
15, 2011 and did not have an impact on the County's financials for the year ending June 30,
2013.
In December 2010, GASB issued Statement No. 61, The Financial Reporting Entity:
Omnibus, an amendment of GASB Statements No. 14 and 34 amending the requirements of
Statement No. 14, The Financial Reporting Entity, and Statement No. 34, Basic Financial
Statements - and Management's Discussion and Analysis —for State and Local Governments.
This Statement improves the financial reporting for governmental entities, which is comprised
of the primary government and related entities (component units). The Statement amends the
criteria for inclusion of component units in the financial reporting entity. The provisions of
this statement were effective for the County for periods beginning after June 15, 2012 and did
not have an impact on the County's financials for the year ending June 30, 2013.
In December 2010, GASB issued 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 Certified Public Accountants)
Pronouncements. This Statement will make it easier for preparers of state and local
government financial statements to find relevant authoritative guidance from one single
source. The provisions for this Statement were effective for the County for periods beginning
after December 15, 2011 and did not have an impact on the County's financials for the year
ending June 30, 2013.
In June 2011, GASB issued Statement No. 63, Financial Reporting of Deferred Outflows of
Resources, Deferred Inflows of Resources, and Net Position. This Statement provides
financial reporting guidance for deferred outflows of resources, deferred inflows of resources,
and net position. The provisions for this Statement were effective for the County for periods
beginning after December 15, 2011. The County implemented this Statement in fiscal year
ended June 30, 2013.
-57-
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2013
In March 2012, GASB issued Statement No. 65, Items Previously Reported as Assets and
Liabilities. The objective of this Statement is to clarify the appropriate reporting of deferred
outflows and deferred inflows of resources to ensure consistency in financial reporting. The
provisions for this Statement are effective for the County for periods beginning after
December 15, 2012. The County has not yet determined the effect this Statement will have
on its financial statements.
In March 2012, GASB issued Statement No. 66, Technical Corrections -- 2012. The
objective of this Statement is to enhance usefulness of financial reports by resolving
conflicting accounting and financial reporting guidance that could diminish the consistency of
financial reporting. The provisions for this Statement are effective for the County for periods
beginning after December 15, 2012. The County has not yet determined the effect this
Statement will have on its financial statements.
In June 2012, GASB issued Statement No. 68, Accounting and Financial Reporting for
Pensions. The Statement revises and establishes new financial reporting requirements for
most governments that provide their employees with pension benefits. The requirements for
this Statement are effective for the County for periods beginning after June 15, 2014. The
County has not yet determined the effect this Statement will have on its financial statements.
In January 2013, GASB issued Statement No. 69, Government Combinations and Disposals
of Government operations. The objective of this Statement is to improve financial reporting
by addressing accounting and financial reporting for government combinations and disposals
of government operations. The requirements for this Statement are effective for the County
for periods beginning after December 15, 2013. The County has not yet determined the effect
this Statement will have on its financial statements.
In April 2013, GASB issued Statement No. 70, Accounting and Financial Reporting for
Nonexchange Financial Guarantees. The requirements of this Statement will enhance
comparability of financial statements among governments by requiring consistent reporting by
those governments that extend nonexchange financial guarantees and by those governments
that receive nonexchange financial guarantees. The requirements for this Statement are
effective for the County for periods beginning after June 15, 2013. The County has not yet
determined the effect this Statement will have on its financial statements.
In November 2013, GASB issued Statement No. 71, Pension Transition for Contributions
Made Subsequent to the Measurement Date. The objective of this Statement is to improve
accounting and financial reporting by addressing an issue in Statement No. 68, Accounting
and Financial Reporting for Pensions, concerning transition provisions related to certain
pension contributions made to defined benefit pension plans prior to implementation of that
Statement by employers and nonemployer contributing entities. The requirements for this
Statement are effective for the County for periods beginning after June 15, 2014. The County
has not yet determined the effect this Statement will have on its financial statements.
-58-
30I�li)��-01a��-01
Notes to the Basic Financial Statements
June 30, 2013
2. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
Annual Budget
The County follows these procedures in establishing its operating and capital budgets:
■ On or before March 1, the Mayor submits to the County Council proposed operating and
capital projects budgets for the fiscal year commencing the following July 1. The
operating budget includes proposed expenditures for the general fund and special
revenue funds, and the means of financing them. A project -length budget is submitted to
the County Council for the capital projects fund.
■ The Mayor submits to the County Council amendments to the proposed operating and
capital budgets within ten working days after the close of the state legislature, but not
later than May 5.
• The County Council conducts public hearings on the proposed operating and capital
budgets after March 1 but prior to the first reading on the budget bills, which must be
after May 5.
• On or before June 30, the County Council adopts the budgets. The legal level of
budgetary control is the department level because the Mayor can transfer funds from any
unencumbered appropriation to another within a department or agency without County
Council approval. During the year, the budget may be amended by action of the County
Council, except for appropriations required by law and appropriations for debt service,
which may not be decreased or deleted. Supplemental appropriations were made during
the 2012-2013 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 $6.7 million in the general fund and $2.4
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 and Park Dedication 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.
-59-
��1�► ► : I
Notes to the Basic Financial Statements
June 30, 2013
Formal budgetary integration is employed as a management control device during the
year for the General Fund, special revenue funds, and Capital Projects Fund. Formal
budgetary integration is not employed for debt service funds because effective budgetary
control is alternatively achieved through general obligation bond indenture provisions.
The accompanying statement of revenues, expenditures and changes in fund balances --
budget and actual (budgetary basis) for the General Fund presents a comparison of the
legally adopted budget with actual data on a budgetary basis. Accounting principles
applied for purposes of developing data on a budgetary basis differ significantly from
those used to present financial statements in 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, 2013:
Ending fund balance -- GAAP basis $5359489607
Encumbrance adjustments:
Beginning encumbrances and unexpended allotments 358379693
Ending encumbrances and unexpended allotments (3,182,390)
Other adjustments (1,79 3 76
Ending fund balance — Non -GAAP budgetary basis 52.806.534,
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.
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 3 0, 2013
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, 2013 was $155,705,150 for the primary government and
$4,835,351 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 $170,335,603 at June 30, 2013. Of that amount, $170,071,430
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 $264,173
represent deposits held by a management agent and were uncollateralized. Accordingly, these
deposits were exposed to custodial credit risk. Custodial credit risk is the risk that in the
event of a bank failure, the County's deposits may not be returned to it. For checking
accounts, time certificates of deposit, and repurchase agreements, the County requires, in
accordance with State statutes, that the depository banks pledge collateral based on the
available bank balances to limit its exposure to custodial credit risk. All securities pledged as
collateral are held by the County's fiscal agents in the name of the County. The County also
requires that no more than 60% of the County's total funds available for deposit may be
deposited in any one financial institution, in accordance with State statutes.
Investments
The County holds investments both for its own benefit and on behalf of some of the fiduciary
funds. The County's investments of funds not required for immediate payments are
predominately comprised of government sponsored securities (equivalent to the rating in U.S.
Treasuries), repurchase agreements and certificates of deposit, while the fiduciary funds also
hold equity securities.
1�
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2013
The County's investments and maturities at June 30, 2013 are as follows:
Investments --- Primary Government:
Certificates of deposit
Government sponsored securities
Investments -- Fiduciary Funds:
Government sponsored securities
Equity securities
Investments --- Agency Funds:
Government sponsored securities
1.741.3 43 _$ _ -- 1.741.3 43
1.289.418
189.525 w- $ 189,525
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 consists of U.S. government or agency
obligations, time certificates of deposit and repurchase agreements. These investments are
either insured by the FDIC, secured by collateral or carry a credit rating equivalent to U.S.
Treasuries.
Custodial 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, 2013,
investments were distributed as follows: Central Pacific Bank, 38.3%; FTN Financial, 15.8%;
Multi Bank Securities, 14.0%; Stifel Nicolaus, 9.7%; First Hawaiian Bank, 6.5%; Raymond
James, 4.8/0; Bank of Hawaii, 3.9%; Hawaii National Bank, 3.5%; Territorial Savings Bank,
3.5%.
-62-
Maturity
(in -years)
Fair Value
Less than 1
1 — 5
$ 80,5081706
$ 57,613,713
$2298945993
_ 45,402,848
--
45,402,848
125.911.554
$ 57,613,713
$68.2974841
1.741.3 43 _$ _ -- 1.741.3 43
1.289.418
189.525 w- $ 189,525
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 consists of U.S. government or agency
obligations, time certificates of deposit and repurchase agreements. These investments are
either insured by the FDIC, secured by collateral or carry a credit rating equivalent to U.S.
Treasuries.
Custodial 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, 2013,
investments were distributed as follows: Central Pacific Bank, 38.3%; FTN Financial, 15.8%;
Multi Bank Securities, 14.0%; Stifel Nicolaus, 9.7%; First Hawaiian Bank, 6.5%; Raymond
James, 4.8/0; Bank of Hawaii, 3.9%; Hawaii National Bank, 3.5%; Territorial Savings Bank,
3.5%.
-62-
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2013
Restricted Cash and Cash Equivalents and Investments
Cash and cash equivalents and investments classified as restricted assets for the primary
government at June 30, 2013 amounted to $115,921,348.
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 $75,092,166 at June 30, 2013.
Cash and investments in the Bond Redemption Fund and the Interest Fund are restricted to
debt service related payments and amounted to $19,418,552.
Cash in the Highway Fund, Bikeway Fund and Beautification Fund are restricted to costs
incurred relating to highways and streets and the beautification of such items and amounted to
$16,717,909.
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 of lands or property
entitlements for public outdoor recreation and education. Such amounts totaled $671,088 and
$3,955,779, respectively.
Tenant security deposits received by the County for the Rulaimano Elderly Housing Project
and the Guli Ekahi Affordable Housing Project are recorded as restricted assets. Such funds
amounted to $12,334 and $27,114, respectively, at June 30, 2013.
An operating reserve fund was established by the Guli 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 $26,406 at June
30, 2013.
63
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2013
4. RECEIVABLES
Receivables as of June 3 0, 2013, 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:
Net total receivables $35,130,323 $60600m.0-90 $4p4890493 46.219.906
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. At June
305 2013, the outstanding balance of $1,345,945 is reflected in the government -wide
statement of net position as a receivable (see Note 10).
Business -type activities:
Enterprise
Capital
Other
Accounts receivable:
General
Proj ects
Governmental
169
Gross receivables
Fund
Fund
Funds
Total
Real property taxes
$25,2139665
$ --
$ --
$251213,665
Accounts receivable:
Sewer
--
--
252155373
21218,373
Solid waste
--
--
2,2805764
212801764
Capital projects
--
9119667
--
9111667
Intergovernmental
10,768,512
5,688,423
1,715,371
18,172,606
Gross receivables
35595213477
61)6001)090
61>2141)508
459797,075
Less: allowance for
uncollectibles
(552,154
-
1 725 015)
(2,577.169)
Net total receivables $35,130,323 $60600m.0-90 $4p4890493 46.219.906
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. At June
305 2013, the outstanding balance of $1,345,945 is reflected in the government -wide
statement of net position as a receivable (see Note 10).
Business -type activities:
Enterprise
Funds
Accounts receivable:
Rent
$4,8 10
Other
169
Gross receivables
49979
Less: allowance for
uncollectibles
Net total receivables
LA -979
Notes to the Basic Financial Statements
June 30, 2013
5. INTERFUND RECEIVABLES AND PAYABLES
Interfund receivables and payables consist of the following at June 30, 2013:
Receivable Fund Payable Fund
General fund Capital projects fund
Other governmental funds
Capital projects fund
Other governmental funds
Total
Other governmental funds
Enterprise funds
General fund
Other governmental funds
General fund
Capital projects fund
Other governmental funds
Enterprise funds
General Fund
Amount
$ 870,680
223,077
1,093,757
456,714
269,018
725,732
92,033
131,300
17,956
241,289
$2o0604778
j-1350
$314304
The above interfund balances result from the time lag between the dates that interfund goods
and services are provided or reimbursable expenditures occur, transactions are recorded, and
payment between funds are made.
Transfers for the fiscal year ended June 30, 2013 consisted of the following:
Transfers out:
Other
General Governmental
Fund Funds Total
Transfers in:
Capital Projects Fund $ -- $3,460,483 $ 3,460,483
Other governmental funds 47,895,968 -- 47,895,968
47.895.968 3 460 483 510356451
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.
-65-
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 305 2013
6. CAPITAL ASSETS
Capital asset activity for the year ended June 30, 2013 for the County was as follows:
Balance Balance
July 1, Retirements/ June 3 0,
2012 Additions Transfers 2013
Governmental activities:
Capital assets not being depreciated:
Land and
improvements
$ 129,5695750
Easements
3,0125778
Construction work in
Equipment
progress
31,93 7,409
Total capital assets not
(76,4995,584)
being depreciated
164,519,937
Capital assets being depreciated:
Buildings and
(366,084)
improvements
527 813 137
Equipment
1201305,392
Easements
43%1300
Infrastructure
430,4832939
Total capital assets
being depreciated
1,079,041,768
Less accumulated depreciation for:
Buildings and
$ 33,995,418 $ -- $ 163,5655168
414,800 =- 3,427,578
38,704,214 (2821642291 42,477,332
73,114,432 (28,164,291) _ 209,470,078
30,391,984 (1,243,351) 5565961,770
653015956 (1,5221455) 125,0845893
-- -- 4399300
45.512,098 -- 476.996,037
83,206,038 (2,765,806) 1,.159,4822000
improvements
(72,331,213)
(75939,154)
685034
(80,2025333)
Equipment
(701215,601)
(75632,077)
15348,094
(76,4995,584)
Easements
(219,650)
(1465434)
--
(366,084)
Infrastructure
(183z545,89D
(18,480,825)
--_J202,026,722)
Total accumulated
depreciation
(3263312,36D
(34,198,490)
1,416,128
(359,094,723
Total capital assets
being depreciated,
net
752,729,407
49,007,548
(1,349,678
800,387,277
Governmental
activities capital
assets, net
$9171,249j44
122.121.980
($29,513.969}
1 00 857 355
IMOT611
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2013
Balance
Balance
July 1,
Retirements/
June 30,
2012
Additions Transfers
2013
Business -type activities:
Capital assets not being depreciated:
Land 753 877
-- --
$ 753,877
Capital assets being depreciated:
Buildings and
improvements 1,13 65008
457,179 --
1,5 93,187
Ground and site
improvements 2615000
11,850 --
272,850
Equipment _ 103,024
20,109 (5,352)
117,781
Total capital assets
being depreciated 12500,03.2
489,138 (52.3
1,983,818
Buildings and
improvements (8065278)
(32,234) --
(838,512)
Ground and site
improvements (193,420)
(4,150) --
(197,570)
Equipment X87,057
(8 020 5,352
(89,725)
Total accumulated
depreciation (1,086,755)
(44.,4 4 5,352
(1,125,807)
Total capital assets
being depreciated,
net 413,277
444,734 --
858,011
Business -type
activities capital
assets, net $1.167ol54
$4440234 --
$1o6111 888
The County received $12.5 million as a partial settlement from a developer that did not
complete the required infrastructure for their development. The funds are to be used by the
County to construct the roadway that was initially required of the developer. As of June 30,
2013, approximately $160,000 was expended and capitalized.
��
Mel 0ai 1�T, A I
Notes to the Basic Financial Statements
June 30, 2013
Depreciation expense was charged to functions/programs of the primary government as
follows:
Goverm -rental activities:
General government
$ 2,9749208
Public safety
2,9509175
Highways and streets
l%8889722
Sanitation
4,851,858
Health, education and welfare
198179852
Culture and recreation
1,715,675
Total depreciation expense — governmental activities
34.198.490
Business -type activities:
Kulaimano Elderly Housing Project
$34,422
Gull Ekahi Affordable Housing Project
9,982
Total depreciation expense — business -type activities
44404
7. DEFERRED REVENUE:
Deferred revenue consists of the following at June 30, 2013:
Governmental activities:
Real property taxes
Liquor control revenue
Sewer revenue
Housing revenue
Solid waste revenue
Intergovernmental
Total presented in
fund financial
statements
Less adjustments for
accrual of revenues
Total government -
wide financial
statements
Capital Other Total
General Projects Governmental Governmental
Fund Fund Funds Funds
$ 2498815442 $ -- $ -- $ 2458819442
198,310 -- -- 1989310
-- 1,3513064 1,3519064
�- -- 939174 939174
-- -- 194359056 154359056
1,856,784 852,988 -- 2.709,772
26,936,536 8525988 29879,294 3008,818
(24,361,511) (2,867,296) X27,228,807)
2.575.02552 8
EMR
1199 $ 3,4400011
kj
Notes to the Basic Financial Statements
June 30, 2013
Business -type activities:
Enterprise
Funds
Unearned rental income 1 fiO5
8. LEASES
The County leases machinery and equipment under noncancellable leases expiring at various
dates through February 2018. 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 $6,697,301 and $1,609,301, respectively,
and the related present value of the remaining obligations under the capital leases amounting
to $3,632,420 at June 30, 2013 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 July 2029. Expenditures for such operating leases were
$1,847,541 for the fiscal year ended June 30, 2013.
The future minimum payments under capital and operating leases at June 30, 2013 are as
follows:
9. SOLID WASTE LANDFILL CLOSURE AND POSTCLOSURE CARE COSTS
Hilo Landfill The County owns and operates a landfill located in the city of Hilo. State and
federal laws require the County to place covers on certain landfill sites and to monitor and
maintain the sites for thirty years after the facility is closed. Although the closure and
Capital
operating
Leases
Leases
Year Ending June 30:
2014
$15409,426
$194739506
2015
15105,824
193059269
2016
719,390
152515840
2017
4055355
9669758
2018
1355432
8999477
2019-2023
--
193429570
2024-2028
--
13 5, 8 83
2029-2030
--
16,422
Total minimum lease payments
35775,427
S7;39 1 725
Less amount representing
interest
(143,007)
Obligations under capital leases
3 632 420
9. SOLID WASTE LANDFILL CLOSURE AND POSTCLOSURE CARE COSTS
Hilo Landfill The County owns and operates a landfill located in the city of Hilo. State and
federal laws require the County to place covers on certain landfill sites and to monitor and
maintain the sites for thirty years after the facility is closed. Although the closure and
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2013
postclosure care costs will be paid near and after the date that the landfill stops accepting
waste, the County recognizes a portion of the closure and postclosure care costs in each
operating period. The liability for these costs is included in the government -wide statement of
net position. The amount recognized each year is based on the landfill capacity used as of the
statement of net position date. At June 30, 2013, the County recognized a liability of
$13,711,000, based on the use of 93% of the estimated capacity of the landfill. During the
fiscal year ended June 30, 2013, there were no expenditures incurred for the closure of the
landfill. The remaining $1,019,000 in estimated cost of closure and postclosure care will be
recognized as the remaining estimated capacity is used. The estimated remaining useful life
of the landfill is approximately two years. These amounts are based on what it would cost to
perform the required closure and postclosure care in 2013. Actual costs at that time may be
higher due to inflation, changes in technology, or changes in regulations.
Landfill capacity estimates are based on volumes going into the landfill subsequent to the last
available engineer's calculation. The volumes going into the landfill do not account for
decomposition, settlement, and corrosion; therefore the estimates are revised when new
engineering calculations, based on aerial photos and surveys, are available.
The County's permit to operate the landfill expired October 9, 1998. The County filed for an
extension which was approved by the State until permitted capacity is reached. In accordance
with state statute, the County is allowed to continue operations provided that the County acts
consistently with the permit previously granted and the extension application, plans,
specifications and all other information contained therein.
Kealakehe In October 1993, the County closed its Kealakehe landfill in Kona. Under state
and federal requirements, the County would have to monitor and maintain this site for ten
years from the closure date. However, the County anticipates monitoring and maintaining the
site for thirty years because there is presently a subterranean fire which requires active
management. The estimated cost of closure and postclosure is $16,300,000, based on what it
would cost to perform the required closure and postclosure care in 2013. Actual costs may be
higher due to inflation, changes in technology, or changes in regulations. Through
June 30, 2013, $8,026,000 was spent on closure and postclosure care of the landfill. The
remaining estimated liability of $8,274,000 is included in the government -wide statement of
net position. During the year ended June 30, 2013, $328,000 was spent on closure of the
landfill. The County is providing financial assurance for postclosure care and remediation
through self insurance as explained below.
aPu'uanahulu 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 Hawai` i. The present contract
calls for County employees to perform the daily operations of the landfill, and for 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
-70-
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2013
remediation, closure or postclosure care. Accordingly, no liability for this landfill is included
in the County's financial statements.
Financial Assurance For fiscal year 2013, the County has provided for financial resources
that will be available to provide for 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.
10. LUNG -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 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, 2013:
Bonds Issue Bond Balance Bond Balance Due Within
Authorized Amount July 1, 2012 Issues Retirements June 30, 2013 One Year
1993
Ref & PI
$86370,000
$ 5,945,000
$ --
($ 5,945,000)
$ --
$ ..-
2003
Series A
36,310,000
272070,000
--
(25,275,000)
1395,000
1,795,000
2004
Series A
30,0007000
232990,000
--
(21,100,000)
2;890,000
1,410,000
2004
Ref Series B
19,54500
8,870,000
--
(2,055,000)
6,815,000
2,1601000
2004
Ref Series C
5,050,140
1,678,768
--
(539,604)
1,139,164
558,052
2004
PI Series A
23761400
12952,523
--
(1,952,523)
--
--
2004
PI Series B
920,000
838,003
--
(838,003)
--
--
2006
Series A
25,000,000
20397500
--
(972,500)
19,825,000
1,0221500
2007
Series A
85,000,000
73570,000
--
(3,200,000)
70,37000
3,3601000
2007
Series B
20,820,000
15,470,000
--
(1,925,000)
13545,000
2,0001000
2007
Series C
10,787,388
9,991,704
--
(828,294)
9,1632410
860,904
2008
Series A
50,000,000
46,60000
--
(1,810,000)
441790,000
1,8851>000
2010
Series A
26,4931750
261493,750
--
--
26,493,750
--
2010
Series B
18,506,250
18,506,250
--
--
18,506,250
--
2013
Series A
58,509,892
--
585091892
--
58,509,892
1,6601929
2013
Series B
21,010,000
--
21,010,000
--
21,010,000
--
2013
Series C
18,470,00
--
18,470,000
--
18:470,000
--
515,9682820
281,773,498
97,989,892
(66,440,924)
313,322,466
16,712,385
Add unamortized
premium
25,152,930
51579,965
17,569,800
(2,207,148)
201942,617
1,453,119
Less deferred amount
on
refunding
(3,510,905
(1,184.914)
(6823146)
277,496
(1,589,564)
_ (306,272)
537.610.845
$286_L68.549
114.877.546
($68.370.576)
$332,675,519
$17.859.232
-71-
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2013
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.
General obligation bonds payable reported in the governmental activities section on the
government -vide statement of net position at June 30, 2013 are comprised of the following
individual issues:
Public improvement (PI) and/or refunding bonds:
2003 Series A at 2.5% to 5.125%, due through 2013
$ 197953000
2004 Series A at 3.25% to 5.25%, due through 2014
298903000
2004 Refunding Series B at 3.5% to 5.0%, due through 2015
6,8159000
2004 Refunding Series C at 3.25% to 3.7%, due through 2014
111399164
2006 Series A at 4.0% to 5.0%, due through 2026
19,8259000
2007 Series A at 4.0% to 5.0%, due through 2027
70,3709000
2007 Series B at 3.75% to 5.0%, due through 2018
13,545,000
2007 Series C at 4.0% to 5.0%, due through 2021
9,163,410
2008 Series A at 4.0% to 6.0%, due through 2028
44,7905000
2010 Series A at 1.7% to 5.0%, due through 2030
26,4935750
2010 Series B at 3.335% to 6.1%, due through 2030
18,506,250
2013 Series A at 2.0% to 5.0%, due through 2033
5$,509,892
2013 Series B at 3.0% to 5.0%, due through 2024
21,010,000
2013 Series C at 4.0% to 5.0%, due through 2025
18,470,000
Total general obligation bonds payable
$313J225466
Annual debt service requirements to maturity for the above general obligation bonds are as
follows:
-72-
Governmental Activities
Fiscal year ending June 30:
Principal
Interest
2014
$ 16,712,385
$ 14,551,304
2015
19,3965450
13,558,978
2016
19,6405854
12,6765441
2017
1850525456
1158119628
2018
18,937,148
10,918,429
2019-2023
96,093,588
415713,484
2024 —2028
91,965,835
19,591,208
2029 —2033
32,523,750
_31443,954
Total
313 322 466
$123x265426
-72-
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2013
Refunded Bonds
2013 Series A In fiscal year 2013, the County issued a mixture of refunding bonds,
$8,029,843 and new bonds, $50,480,049 as the 2013 Series A general obligation bond issue.
The refunding bonds have a true interest cost of 1.557% and were issued to current refund the
$8,029,843 of loans from the State water Pollution Control Revolving Fund (SRF) and
general obligation bonds previously issued on behalf of Improvement District No. 18.
The County's total debt service requirements over the next seventeen years will decrease by
$1,704,150 as a result of the refunding, and the net economic gain (difference between the
present values on the old and new debt) after taking into account all allocable costs of
issuance of the bonds was $1,515,044.
2013 Series B Also, in fiscal year 2013, the County issued $21,010,000 in refunding bonds as
the 2013 Series B general obligation bond issue. The refunding bonds have a true interest cost
of 1.539% and were issued to advance refund $23,550,000 of the total callable bonds
outstanding of the 2003 Series A general obligation bond issue.
The bonds refunded bore interest at rates ranging from 3.000% to 5.000%. The par amount of
$21,010,000 plus a premium of $3,215,925, minus $107,915 in underwriting fees, insurance
and other issuance costs resulted in net proceeds of $24,119,010. The net proceeds were used
to purchase U.S. government securities, which were deposited in an irrevocable trust
administered by an escrow agent and provided full payment on the outstanding 2003 Series A
refunded bonds on July 15, 2013. The bonds were considered defeased and are not included
in the government -wide statement of net position.
The County's total debt service requirements over the next eleven years will decrease by
$4,483,238 as a result of the refunding, and the net economic gain (difference between the
present values on the old and new debt) after taking into account all allocable costs of
issuance of the bonds was $4,053,240.
2013 Series C Also, in fiscal year 2013, the County issued $18,470,000 in refunding bonds
as the 2013 Series C general obligation bond issue. The refunding bonds have a true interest
cost of 1.827% and were issued to advance refund the $19,750,000 of callable bonds
outstanding of the 2004 Series A general obligation bond issue.
The bonds refunded bore interest at rates ranging from 4.000% to 5.000%. The par amount of
$18,470,000 plus a premium of $2,853,307, minus $100,798 in underwriting fees, insurance
and other issuance costs resulted in net proceeds of $21,232,509. The net proceeds were used
to purchase U.S. government securities, which were deposited in an irrevocable trust
administered by an escrow agent and will provide full payment on the outstanding 2004
Series A refunded bonds on July 15, 2014. The bonds were considered defeased and are not
included in the government -wide statement of net position.
-73-
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2013
The County's total debt service requirements over the next twelve years will decrease by
$3,321,754 as a result of the refunding, and the net present value savings was $2,995,797.
As of June 30, 2013, bonds and loans outstanding considered defeased amounted to
$4353109000.
Bond Premiums
At June 30, 2013, total unamortized bond premiums were $20,942,617, 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 $296.1 million in general obligation bonds
to finance specified capital improvement projects. At June 30, 2013, $151.1 million was not
yet issued.
Subsequent Events On July 24, 2013, the County Council authorized the issuance of
$1,169,000 in general obligation bonds for the County to finance specified capital
improvement projects. On September 19, 2013 these bonds were issued for Improvement
District No. 19. 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.
General Obligation Bond Anticipation Notes
The following is a summary of general obligation bond anticipation note transactions for the
County for the fiscal year ended June 30, 2013:
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 state to finance construction of wastewater projects. The County has eight projects
approved for funding with these loans.
-74-
Issue
Balance
Balance
Authorized
Amount
July 1,_2012 Issues
Retirements June 30, 2013
2012 Series B R-4
$ 10,000,000
$ 10,000,000 $ --
$ 10,000,000 $ --
2012 Series B R-5
15,000,000
15,000,000 --
15,000,000 --
2012 Series B R-6
8,000,000
8,000,000 --
8,000-000 --
$33000,000
$31GO0,000
$33000,MQ--
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 state to finance construction of wastewater projects. The County has eight projects
approved for funding with these loans.
-74-
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2013
The schedule below shoves the County's SRF transactions for the fiscal year ended June 30,
2013:
Interest
2014
$ 995,017
$ 1131581
2015
Loans
Approved
Loan Balance
Retirements
Loan Balance
Due Within
Authorized
Amount
July 1, 2012 Additions
1 Forgiveness
June 30;2013
One Year
Hilo WWTP
$12,7241>311
$ 805,882 $ --
($ 805,882)
$ --
$ --
Waiakea Mill
1,300,000
152,007 --
(80,004)
82,003
822003
Waiakea
Houselots
459,321
29,209 --
(29,209)
--
--
Waiakea
Houselots II
5,024,266
2,158,941 --
(2,158,941)
--
--
Ainako A&B
2,239,174
337,417 --
(337,417)
--
--
Ralanianaole
1,499,944
340,851 --
(340,851)
--
--
Ralanianaole RH
1,615,980
11)1191)567 --
(1,119,567)
--
--
Alii Drive A&B
3,210,243
4181)345 --
(418,345)
--
--
Alii Drive C&D
3,780,000
793,877 --
(793,877)
--
--
Alii Drive E&F
2,112,554
563,171 --
(563,171)
--
--
Waiaha Bay
3,597,893
819,045 --
(819,045)
--
--
Realakehe
1,300,071
161,712 --
(79,858)
81,854
8115854
Holualoa Bay
3,080,000
888,566 --
(888,566)
--
--
Paukaa CCs
2,143,448
898,384 --
(898,384)
--
Cesspool
Conversion
8,363,773
6,390,266 --
(426,092)
5,964,174
4281.)156
Pahoehoe
2,817,760
1,484,497 --
(1,484,497)
--
--
Honokaa LCC
4,811,709
2,776,904 670,009
(203,385)
3,243,528
86,151
Queen
Liliuokalani
10,186,277
8,901,985 --
(712,603)
851891.1382
238,239
Kalanianaole
8,621,409
-- __ 4,321,342
(1,000,000)
3,321,342
78,614
$78,988,233
$29.050.625
$2 0. 8 8 2.283
The loans bear interest at 0.50% to 2.50%, exclusive of a 0.25% to 1.0% loan fee, and require
payments through fiscal year 2032.
Debt service to maturity for disbursements to date on these projects are as follows:
Governmental Activities
Fiscal year ending June 30:
Principal
Interest
2014
$ 995,017
$ 1131581
2015
152441959
1465819
2016
152511145
1375516
2017
152575495
1285034
2018
152635750
118,631
2019-2023
65414,280
4495860
2024 —2028
598889281
209,172
2029 —2032
2,567,356
37,831
Total
$20.882.283
$143 41 444
-75-
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2013
Other General Long -Term Obligations
The following is a summary of other general long-term obligations transactions for the fiscal
year ended June 30, 2013:
Governmental activities:
Compensated absences
Claims and judgments
(see Note 12)
Capital leases
(see Note 8)
Landfill costs payable
(see Note 9)
Other post employment
benefit obligation
(see Note 13 )
Total
Balance
$79544,581
1214441462
July 1, 2012
Additions*
Payments
$32,580,579
$1450625,763
($14,478,232)
14,447,147
454549444
(2,492,689)
35843,618
153465791
(1,477,989)
21,424,444
888,949
(3275949)
Balance Due within
June 30, 2413 One Year
$32,165,110
$79544,581
1214441462
2,6485535
356325424
153355934
21,9855044
193,821
__22,344,332 29,712,044 _ (13,891,830) 382160,502 --
$94,595.636 46,424,54728 668 68 148.347.494L1.678.867
* 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, 2013 includes $15,732,747, which is
reserved for principal payments on general obligation bonds and $2,393,875, which is
reserved for 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 Kulaimano
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.
-76-
Notes to the Basic Financial Statements
June 30, 2013
The following is a summary of the Project's bond payable transactions for the fiscal year
ended June 30, 2013:
Balance at July 1, 2012
$851,306
Deductions
20 182
Balance converted to
425317
bond payable
831,124
Add interest payable
365278
to bond
3 984
Balance at June 30, 2013
835,108
Less current portion
(24,71)
Note payable, net of
current portion
811-1037
The following is a summary of the annual maturities for the enterprise fund bond payable:
Fiscal year ending June 30:
2014
2015
2016
2017
2018
2019-2023
2024 —2026
Total
Business-tvUe Activities
Principal
Interest
$ 245071
$ 455095
505187
425317
535043
395381
565061
365278
595251
325999
350,832
1085885
241,663
13,475
835.108 $318P430
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.
77-
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2013
The following is a summary of enterprise fund loan payable transactions for the fiscal year
ended June 30, 2013:
Loan assumption
$478,430
Deductions
06 905
Balance at June 30, 2013
461,525
Less current portion
(16,500)
Loan payable, net of
current portion
445 025
The following is a summary of the annual maturities for the enterprise fund loan payable:
Fiscal year ending June 30:
2014
2015
2016
2017
2018
2019-2023
2024 —2028
2029 —
203 3
2034 —
203 8
2039 —2041
Total
Special Assessment Bonds
Business-tvne Activities
Principal
$ 16,500
16,500
16,500
16,500
16,500
82,500
82,500
82,500
82,500
_ 49,x25
461 525
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 $1,345,945 at June 30, 2013.
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.
-78-
50 81IRM!
Notes to the Basic Financial Statements
June 30, 2013
The following is a summary of bond transactions for Improvement District No. 18,
Coastview/Wonderview Water Improvements, for the fiscal year ended June 30, 2013:
Balance at July 1, 2012 $2,790,526
Deductions (1,444,581
Balance at June 30, 2013 $193450945
The following is a summary of the annual maturities for the improvement district general
obligation bonds:
Fiscal year ending June 30:
2014
2015
2016
2017
2018
2019-2023
2024 — 202 8
Total
Principal
Interest
$ 645014
$ 69,406
665993
58,118
705111
54,929
735373
51,590
765788
48,096
4405999
1825,091
553,667
66.798
$1.345,945 531,028.
11. COMMITMENTS AND CONTINGENCIES
Contractual commitments — Contractual commitments for capital projects, expenses, and
supplies at June 30, 2013, except in the enterprise funds, are reflected in the balance sheets as
a part of the respective fund balance categories and are as follows:
General fund $ 311825390
Capital projects fund 29,304,525
Nonmajor funds 9,520,305
42.007.220
Contractual commitments for the enterprise funds were immaterial.
Intergovernmental revenues — The County has received federal and state grants for specific
purposes that are subject to review and audit by grantor agencies. Such audits could lead to
requests for reimbursement to the grantor agency for expenditures disallowed under terms of
the grants. In the opinion of management of the County, disallowed costs, if any, would not
be material.
Claims — Numerous claims and lawsuits have been filed against 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,
SWIME
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2013
the resolution of such matters will not have a material adverse affect on the financial
condition of the County.
ADA compliance — The County entered into two stipulated agreements (or Consent Decrees)
approved by the federal district court judges to implement provisions of the Americans with
Disabilities Act ("ADA"). With respect to the first stipulated agreement, filed on October 2,
1997, relating to curb cuts, the County, with the help of a consultant, surveyed 669
intersections, then ranked them in order of priority. A transition plan, along with a funding
commitment, was approved by the County Council. The total cost of all curb cuts was
estimated to be $6.2 million. The cost of the first phase of the plan was $3 million, to be used
in high priority areas such as government facilities, schools, and hospitals. The remaining
cost was intended to cover curb cuts at parks and in low-density single family residential
areas. All corrective action was to be completed by July 2005, with an estimated 682 ramps
to be completed. Funding allocated for this effort is $10.6 million. Since the proposed
timetable proved to be too ambitious, the parties amended the agreement to require
contracting by July 2005, rather than completion by that date. Pursuant to the April 2005
Stipulation of the Parties and Order of the Court, all curb ramps for 2005 and most curb
ramps for 2004 were deferred. In the first phase, construction of curb ramps commenced in
2000 and ended in 2004, whereby 229 curb ramps were completed. In the second phase, 153
proposed curb ramps were deferred and 161 curb ramps were to be constructed. As of May
219 20081 there were approximately 204 curb ramps (which included at least 151 of the 161
curb ramps that were required by the amended transition plan) installed in Hilo, Waikoloa
and Kona at a total cost of close to $4.8 million. In addition, the Department of Public Works
has developed and advertised Procedures for Requesting New Curb Ramps or Modifications
to Existing Curb Ramps ("Curb Ramp Request") within the County Streets, and the Curb
Ramp Request is available on the Department of Public Works web page. On September 20,
2012, the close-out order of the consent decree was filed, thus dismissing the curb ramp case
with prejudice, and a copy of "County of Hawaii's Accessibility Design Guidelines and
General Policies and Procedures, Curb Ramps within Public Rights -of -Way" (June 2012) was
attached as an exhibit to that order.
The second stipulated agreement, filed on June 4, 1998, relates to the Department of Parks
and Recreation (Parks). The agreement required Parks to establish practices, policies and
procedures regarding its programs, and prepare a transition plan by the middle of the year
2000. The self-evaluation and transition plan for programs, practices and procedures has
been completed and approved by the County Council. The cost impact of implementation is
not material because the necessary modifications are primarily procedural. The second part
of this stipulated agreement is the reevaluation of all County facilities, which was completed
and accepted by the County Council on June 30, 2000. Approximately 240 County facilities
were surveyed as part of this effort. The tentative completion date of all necessary repairs
and renovations was 12 years from the date the County Council accepted the self-evaluation.
The initial (1997-2000) estimated cost of the facilities repairs was $15.1 million, which
would have been spent over the 12 -year period. Funding allocated initially for facilities
1IF:111B
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2013
repairs was $17.5 million, with another $4 million of federal funding anticipated through
community development block grants over the next 2 years. Since 2000, Parks has requested
$2 to $3 million a year for the different park facilities' ADA projects. The Department of
Public works has requested an additional $2 million a year for the other County ADA
facilities' project. Because of the substantial hardships predominantly incurred in the funding
and cost aspects of the implementation of the Original Transition Plan, the learning curve
process, and the timing and scheduling of the different stages of work for each project, the
parties worked on a plan to implement the Transition Plan with the assistance of a federal
district court Monitor and an ADA Specialist, to obtain extensions on the initial deadlines for
completion that were set in the Original Transition Plan and to establish a Revised Transition
Plan to satisfy the requirements of the ADA. The County had spent $42.0 million for the
construction and design fees to complete 50 park facilities (some having multiple ADA work
being completed). There are four park facilities where construction has progressed; 29 park
facilities that must be completed; and Parks estimated costs for completion is $15.1 million as
of June 30, 2013. On March 23, 2012, the close-out of the consent decree was filed, whereby
the Court and parties established a reasonable four year timeline to complete the remaining
ADA work by December 31, 2016. In addition, the County's ADA coordinator (Equal
Opportunity Officer) has access to an identifiable account of at least $50,000 to handle
requests for reasonable accommodations for County departments; and the procedures for
these requests have been finalized and are available on the Human Resources Department's
Equal Opportunity and the ADA web page.
12. RISK MANAGEMENT
The County is exposed to various risks of losses related to torts; theft of, damage to, and
destruction of assets; errors and omissions; injuries to employees; and natural disasters. The
County maintains fire and commercial multiple peril insurance on County facilities, flood
insurance on selected structures, medical malpractice insurance for emergency medical
technicians, aviation liability for helicopter operations, liability coverage on transit buses and
privately owned police vehicles, and property damage coverage on County Police fleet
vehicles. The County maintains Fire and property coverage on several County Housing
projects (Kulaimano, Ouli Ekahi, and four model homes at Kamakoa Nui). There was no
reduction in insurance coverage during the year from coverage in the prior year. During the
past three fiscal years, the amount of settlements in cases covered by insurance has not
exceeded the insurance coverage. The County is substantially self-insured for the majority of
its vehicles as well as for all other perils including workers' compensation and general
liability. 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 reported (IBNR). Claim liabilities, including IBNR, are based on the
estimated ultimate cost of settling the claims, and include incremental costs for the hiring of
-81-
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2013
special counsel and expert witnesses. Maims 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, 2013, the amount
of this liability was $12,404,462. This is the County's best estimate based on available
information. Changes in the reported liability since July 1, 2011 are given below.
Balance at July 1, 2011
Incurred claims (including IBNR)*
Maim payments
Balance at June 30, 2012
Incurred claims (including IBNR)*
Claim payments
Balance at June 30, 2013
General
Workers'
Total
Liabilit
Compensation
Liabilily
$ 13,668,899
$ 95228,235
$ 1098979137
5989474
23,551,526
391509000
(1,302,957)
2 297 073
X3,600,030}
$ 9643,416
$ 954823691
$ 10,447,107
156259532
258249512
4,4509044
_(176,1)
(2,31
2 413 819
_ 9,990,643
12 404 462
*Net of new claims liability and existing claims resolved at less than previous estimate.
13. EMPLOYEE BENEFIT PLANS
Pension Pian
Plan description All eligible employees of the County are required by Chapter 88 of the
Hawaii Revised Statutes (HRS) to become members of the Employees' Retirement System
of the State of Hawaii (the ERS), a cost-sharing multiple -employer defined benefit pension
plan. The ERS provides retirement, survivor, and disability benefits with multiple benefit
structures known as the contributory, hybrid, and noncontributory plans. All contributions,
benefits, and eligibility requirements are established by Chapter 88, HRS, and can be
amended by legislative action.
The ERS regards the County, including its component unit, as one employer. Therefore,
separate information for the primary government and its component unit is not available. All
information given below on the pension plan is for the reporting entity as a whole, including
both the primary government and its component unit.
Employees covered by Social Security on June 30, 1984 were given the option of joining the
noncontributory plan or remaining in the contributory plan. All new employees hired after
June 30, 1984 and before July 1, 2006, who are covered by Social Security, were generally
required to join the noncontributory plan. Qualified employees in the contributory and
noncontributory plan were given the option of j oining the hybrid plan effective July 1, 2006,
or remaining in their existing plan. Starting July 1, 2006, all new employees covered by
Social Security are required to join the hybrid plan.
-82-
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2013
The three plans provide a monthly retirement allowance equal to the benefit multiplier
percentage (1.25% or 2.00%) multiplied by the average final compensation (AFC) multiplied
by years of credited service. 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, if the employee became
a member prior to January 1, 1971. The AFC for members hired on or after this date is based
on the three highest paid years of service, excluding the payment of salary in lieu of vacation.
For postretirement increases, every retiree's original retirement allowance is increased by
2.5% on 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.).
The following summarizes the three plan provisions relevant to the general employees of the
respective plan:
Contributory Plan General employees in the contributory plan are required to contribute
7.8% of their salary and are fully vested for benefits upon receiving 5 years of credited
service. The County may also make contributions for these members. Under the
contributory plan, employees may retire with full benefits at age 55 and 5 years of
credited service, or may retire early at any age with at least 25 years of credited service
and reduced benefits. The benefit multiplier is 2.0% for employees covered by Social
Security.
Police officers, fire fighters and certain other members that are not covered by Social
Security contribute 12.2% of their salary and receive a retirement benefit using the
benefit multiplier of 2.5% for qualified service, up to a maximum of 80% of AFC. These
members may retire at age 5 5 with 10 years of credited service or at any age with 25
years of credited service, provided the last 5 years of credited service is in any of the
qualified occupations.
.hybrid Plan General employees in the hybrid plan are required to contribute 6.0% of
their salary and are fully vested for benefits upon receiving 5 years of credited service.
The County may also make contributions for these members. Employees may retire with
full benefits at age 62 and 5 years of credited service or at age 55 and 30 years of
credited service, or may retire at age 55 and 20 years of credited service with reduced
benefits. The benefit multiplier used to calculate retirement benefits is 2.0%.
-83-
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2013
Noncontributory Plan General employees in the noncontributory plan are fully vested
upon receiving 10 years of credited service. The County is required to make all
contributions for these members. Employees may retire with full benefits at age 62 and
10 years of credited service or age 55 and 30 years of credited service or age 55 and 20
years of credited service with reduced benefits. The benefit multiplier used to calculate
retirement benefits is 1.25%.
The ERS funding policy provides for periodic employer contributions at actuarially
determined rates, expressed as a percentage of annual covered payroll, such that the employer
contributions, along with employee contributions and an actuarially determined rate of
investment return, are adequate to accumulate sufficient assets to pay benefits when due. The
funding method used to calculate the total employer contribution required is the entry age
normal actuarial cost method. Effective July 1, 2005, employer contribution rates are a fixed
percentage of compensation, including the normal cost plus amounts required to pay for the
unfunded actuarial accrued liability. Employers contributed 22.00% for police officers and
fire fighters, and 15.50% for all other employees. Employer rates are set by statute based on
the recommendation of the ERS actuary resulting from an experience study conducted every
five years.
The required pension contributions by the County for the years ended June 30, 2013, 2012,
and 2011 were $23,559,710, $21,832,179, and $21,435,798, respectively, which equal the
required contributions for each year. Measurement of assets and actuarial valuations are
made for the ERS as a whole and are not separately computed for individual participating
employers such as the County.
The ERS issues a CAFR that includes financial statements and required supplementary
information, which may be obtained by writing to the Employees' Retirement System of the
State of Hawaii, 201 Merchant Street, Suite 1400, Honolulu, Hawai` i 96813.
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. The EUTF was established on July 1, 2003 to design,
provide, and administer medical, prescription drug, dental, vision, chiropractic, dual -coverage
medical and prescription drug, and group life benefits.
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
9:E
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2013
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 -plaza. 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.
The County's annual other postemployment benefit (GPEB) cost is calculated based on the
annual required contribution (ARC) of the employer, which is an amount actuarially
determined in accordance with the parameters of Governmental Accounting Standards Board
Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment
.Benefits other than Pensions (GASB Statement No. 45). GASB Statement No. 45 addresses
the failure of previous financial reporting practices to measure and recognize the cost of
oPEB during the periods when employees render the services or to provide relevant
information about oPEB obligations and the extent to which progress is being made in
funding those obligations. The ARC represents a level of funding that, if paid on an ongoing
basis, is projected to cover normal cost each year and amortize any unfunded actuarial
liabilities (or funding excess) over a period not to exceed thirty (30) years. The current ARC
rate is 21.7% of annual covered payroll.
-85 -
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2013
The following section shows the County's Annual OPEB cost for the year ended June 30,
2013, the amount actually contributed to the plan, and changes in the net OPEB liability:
Annual required contribution
$293494,000
Interest on net OPEB obligation
135645000
Adjustment to annual required contribution
15346,000
Annual OPEB Cost
29,712,00o
Contributions made
135891,830
Increase in net OPEB liability
1598209170
Net OPEB liability -beginning of year
2293409332
Net OPEB liability -end of year
$3851605502
The above net OPEB liability at the end of the year is included in the Statement of Net
Position in the noncurrent other liability amount of $38,160,502.
The annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the
net OPEB (asset) liability for the year ended June 30, 2013 and the preceding two years were
as follows:
Fiscal Year
Percentage of Annual Net OPEB
OPEB Cost Obligation/
Ended
Annual OPEB Cost Contributed
Asset
June 30, 2011
$3439139000 89.1%
($120,768)
June 30, 2012
$36,191,000 37.9%
$22,340,332
June 30, 2013
$295712,000 46.8%
$38,160,502
The schedule of funding progress based on the actuarial valuation date of July 1, 2011, is as
follows:
Actuarial accrued liability
$394,6335000
Actuarial value of plan assets
6159075000
Unfunded actuarial accrued liability (UAAL)
$33257265000
Funded ratio
16%
Covered payroll (active plan members)
$130,1705000
UAAL as a percentage of covered payroll
255%
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts
and assumptions about the probability of occurrence of events far into the future. Examples
include assumptions about future employment, mortality, and the healthcare cost trend.
Amounts determined regarding the funded status of the plan and the annual required
contributions of the employer are subject to continual revision as actual results are compared
with past expectations and new estimates are made about the future.
-86-
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2013
The schedule of funding progress, presented as required supplementary information following
the notes to the financial statements, presents multiyear trend information that shows whether
the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial
accrued liabilities for benefits.
Projections of benefits for financial reporting purposes are based on the substantive plan (the
plan as understood by the employer and plan members) and include the types of benefits
provided at the time of each valuation and the historical pattern of sharing of benefit costs
between the employer and plan members to that point. The actuarial methods and
assumptions used include techniques that are designed to reduce short-term volatility in
actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term
perspective of the calculations.
In the July 1, 2011 actuarial valuation, the entry age normal cost actuarial cost method was
used. The actuarial assumptions included a 7.0% discount rate, which is based on the
County's anticipated funding level, and an annual healthcare cost trend rate of 8.0% initially,
reduced by decrements to an ultimate rate of 5.0% after nine years. The assumptions also
include a 3.5% increase in payroll and a 3.0% inflation rate. The UAAL is being amortized
as a level percentage of projected payroll on an open basis. The remaining amortization
period at July 1, 2011 for the UAAL balance varies depending on the date each portion was
established but is set to not exceed 30 years.
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 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.
-87-
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 303 2013
14. COMPONENT UNIT DISCLOSURES
Deposits and Investments
At June 30, 2013, cash, time certificates of deposit and money market funds of $32,004,491,
with bank balances of $32,4383987 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 $2,574,396 at June 303
2013. At June 30, 2013, the Department had no investments.
Capital Assets
The Department began operations as of January 1, 1950. At that date, the utility plant in
service was transferred to the Department from the County at the cost of the utility plant
assets acquired by the County for its water system from January 1, 1924 to
December 31, 1949, less accumulated depreciation. Acquisitions prior to 1924 and
acquisitions by gift or grant prior to 1950 are not included in utility plant. Additions to utility
plant since January 1, 1950 are stated at original cost and include contributions by
governmental agencies, private subdividers and customers at their cost or estimated cost.
Construction costs include amounts for contract work, engineering supervision and other
direct and indirect costs. Construction period interest is capitalized on utility plan constructed
with tax-exempt debt.
Depreciation on the Department's utility plant assets in service is computed using the
straight-line method over the estimated useful lives of the assets as follows:
Structures and improvements 40 to 50 years
Machinery and equipment 5 to 20 years
Water systems 10 to 40 years
The capital assets of the Department at June 30, 2013 were as follows:
Utility plant in service $442,2489055
Less: accumulated depreciation (187,096,040)
255,152,015
Land and rights 49528,502
Construction work in progress 11 708,146
Net capital assets $271.388.663
-88-
Notes to the Basic Financial Statements
June 30, 2013
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 $40,768,718 at
June 30, 2013.
General obligation bonds payable issued on behalf of the Department and other long-term
debt at June 30, 2013 are comprised of the following:
Public improvement bonds:
2004 Series D at 4.5%, due through 2039
2006 Series A at 4.0% to 5.0%, due through 2026
2008 Series A at 4.125%, due through 2043
2010 Series A at 3.33% to 6.1%, due through 2030
2010 Series B at 3.3 3 % to 6.1 %, due through 203 0
Total public improvement bonds
Public improvement refunding bonds:
2004 Series at 2.0% to 5.25%, due through 2015
2007 Series at 4.0% to 5.0%, due through 2021
Total public improvement refunding bonds
Revolving fund loans:
State revolving fund loans, interest up to 1.37%,
due through 2030
Total long-term debt
Add: Unamortized premium
Total
_89_
$ 232,191
19,825,000
140,217
8,831,250
_6168,750
35,197,408
95,836
4,886,590
4,982,426
12,911,310
53,091,144
588,884
53 680 028
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2013
At June 30, 2013, future principal payments for long-term debt are scheduled as follows:
Fiscal year ending June 30:
2014
$ 2,55600
2015
3,287,000
2016
3,348,000
2017
3,4565000
2018
3,5765000
2019-2023
1854745000
2024
—2028
145872,000
2029
—2033
35367,000
2034
—2038
90,000
2039
—2043
65.144
Total $53,0910144
Contributions in Aid of Construction
The Department recognized $15,226,253 of contributions in aid of construction for the fiscal
year ended June 30, 2013.
Commitments and Contingent Liabilities
Claims and judgments -- The Department maintains property, auto liability, and general
liability insurance policies. The Department remains self-insured for workers' compensation
and other perils. The liability at June 30, 2013 for workers' compensation claims of
$229,000 was estimated based on a combination of case-by-case review and the application
of historical experience to outstanding claims.
Construction contracts — The Department is obligated under construction contracts for the
utility plant and other projects. Such commitments approximated $15,708,000 at
June 30, 2013.
Post -Retirement Benefits
Effective July 1, 2007, the Department adopted the provisions of GASB Statement No. 45.
This statement addresses how state and local governments should account for and report their
costs and obligations related to postemployment benefits, healthcare, and other nonpension
benefits. The Department's annual required contribution for its postemployment benefit
obligation for the year ended June 30, 2013 was $1,834,000. The Department made
contributions of $1,834,000 during the year ended June 30, 2013 and recorded a
postemployment benefit asset of $3,000 at June 30, 2013.
IM
Required Supplementary Information
June 30, 2013
Schedule of Funding Progress for the EUTF
(In thousands)
Actuarial
Accrued
URAL as a
Actuarial Liability
Unfunded
Percentage
Actuarial Value of (AAL) —
AAL Funded
Covered of Covered
Valuation Assets Entry Age
(URAL) Ratio
Payroll Payroll
Date (a) (b)
(b -a) (alb)
(c) ((b-a)/c)
July 1, 2007 - $275X8 $275X8 -
July 1, 2009 $28,814 $439X5 $410,411 6.6%
July 1, 2011 $61,907 $394,633 $332,726 15.7%
-91-
$127,420 216.5%
$133,555 307.3%
$130,170 255.6%
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ILM
NONMAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
HIGHWAY FUND - Used to account for the costs of maintaining the County's highways and streets.
Financing is provided primarily by fuel, motor vehicle weight and public utility franchise taxes.
SEWER FUND - Used to account for costs of operating the County's various sewer systems. Financing is
provided by charges to users for sewer services.
SOLID WASTE FUND — Used to accumulate moneys for the operation, maintenance, and administration of
the County's solid waste management, collection and disposal systems. Financing is provided by tipping
fees at the landfills and by disposal permit fees.
CEMETERYFUND - Used to accumulate moneys to guarantee the future maintenance of County cemetery
sites. Financing is provided from the sale of burial lots in County cemeteries.
PARKING METER FUND - Used to account for the costs of maintaining County on -street and off-street
parking areas. Financing is provided by the proceeds from parking meters.
VEHICLE DISPOSAL FUND -- Used to accumulate moneys for the towing, removal, disposal and
recycling of abandoned or discarded automobiles and automobile parts. Financing is provided by annual
fees collected with motor vehicle registrations.
BIKEWA Y FUND - Used to accumulate moneys for the construction of bikeways within the County.
Financing is provided by bicycle license fees.
WORKFORCE INVESTMENT ACT FUND - Used to account for employment and training services
provided to economically disadvantaged adults, dislocated workers and youth. Financing is provided by
federal grants.
GOLF COURSE FUND - Used to account for the cost of operating the Hilo Municipal Golf Course.
Funding is provided from green fees and payments from restaurant and pro shop concessionaires.
GEOTHERMAL REL OCA TION AND COMMUNITY BENEFITS FUND - Used to account for the County's
share of geothermal resource royalties received from the operator of a geothermal power plant located in
the County. The funds are earmarked for a geothermal relocation program and to benefit the lower Puna
area.
BEA UTIR'ICATION 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.
HA WAH CO UNTY HO USING A GENCY - Used to account for Federal and County moneys used to provide
public housing assistance within the County.
PARK DEDICATION FUND - Used to account for moneys deposited with the County by subdividers to
provide land for parks and playgrounds in subdivisions.
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.
-93-
COUNTY OF HAWAII
Nonmajor Governmental Funds
Combining Balance Sheet
June 3 0, 2013
-94-
Special Revenue Funds
Solid
Parking
Highway
Sewer
waste
Cemetery Meter
Fund
Fund
Fund
Fund Fund
Assets
Cash and cash equivalents
$ 145771,554
$
3,961,$$$
$ 8,228,955
$ 975909 $ 203,787
Investments
-
-
-
- -
Imprest fund
-
400
250
- -
Receivables:
Due from other governments
119,153
-
154575205
- -
Due from other governmental funds
44,762
105764
1315299
- -
Due from other nongovernmental funds
-
1,350
-
- -
Trade, net of allowance for doubtful accounts
-
1,351,064
1,423,058
- -
Other
-
-
2355626
- -
163,915
153635178
352475188
- -
Total assets
$ 145935,469
$
553255466
$ 1154765393
$ 97,909 $ 203,787
Liabilities and Fund Balances
Liabilities:
Accounts payable
$ 1,296,911
$
2475592
$ 152195441
$ - $ -
Accrued payroll
415,794
1485796
2945618
- -
Due to other governmental funds
301,084
45984
235485
- -
Deferred revenue
-
1,351,064
114355056
- -
Other
1,903
515812
35279
-
Total liabilities
2,015,692
1,804,248
259751,879
- -
Fund balances:
Restricted for:
Debt service
-
-
-
- -
Highways, streets and abandoned vehicles
12,919,777
-
-
- -
Rental assistance and subsidy
-
-
-
- -
Committed to:
Sanitation
-
3,521,218
855009514
- -
Highways, streets and abandoned vehicles
-
-
-
- 203,787
Rental assistance and subsidy
-
-
-
- -
Cemetery
-
-
-
973909 -
Golf course
-
-
-
- -
Lower Puna area
-
-
-
- -
Parks and recreational projects
-
-
-
- -
Total fund balances
121919,777
3,521,218
835005514
975909 203,787
Total liabilities and fund balances
$ 14,935,469
$
5,3259466
$ 1194765393
$ 97,909 $ 203,787
-94-
Special Revenue Funds
Vehicle workforce Golf Geothermal Reloc. Beauti- Hawaii County Park
Disposal Bikeway Investment Course & community fication Housing Dedication
Fund Fund Act Fund Fund Benefits Fund Fund Agency Fund
$2,5259642 $ 704,983 $ - $ 339,336 $ 3,955,138 $ 1,241,372 $ 1,7415439 $ 16,376
- - - - - - 354001000 68,433
- 200 - - 200 -
- - 13 9,013 - - - - -
107 - - - - - 525577 -
$2,527,529 $ 704,983 $ 17806 $ 3441)430 $ 4,176,671 $ 1,241,372 $ 5,2925413 $ 845809
$ 25,876 $ 135903 $ - $ 1,971 $ - $ 131788 $ 1045564 $ -
85663 - - 357785 - - 1125232 -
- - 17806 2,492 - - - -
- - - - 935174 -
- - - - - - 965209 -
349539 135903 178,006 405248 - 135788 4065179 -
691,080 - - - 1,2275584 - -
- - - - - - 2,8483612 -
2,4925990 - - - - - - -
- - - - - - 2,037,622 -
304,182 - - - -
- - 4,176,671 - - -
- - - - - - - 841809
2,492,990 6915080 - 304,182 4,1765671 15227,584 458865234 845809
$2,527,529 $ 704,983 $ 1785006 $ 3445430 $ 4,176,671 $ 15241,372 $ 55292,413 $ 84,809
(Continued)
-95-
COUNTY OF HAWAII
Nonma j or Governmental Funds
Combining Balance Sheet
June 3 0, 2013
Assets
Cash and cash equivalents
Investments
Imprest fund
Receivables:
Due from other governments
Due from other governmental funds
Due from other nongovernmental funds
Trade, net of allowance for doubtful accounts
Other
Total assets
Liabilities and Fund Balances
Liabilities:
Accounts payable
Accrued payroll
Due to other governmental funds
Deferred revenue
Other
Total liabilities
Fund balances:
Restricted for:
Debt service
Highways, streets and abandoned vehicles
Rental assistance and subsidy
Committed to:
Sanitation
Highways, streets and abandoned vehicles
Rental assistance and subsidy
Cemetery
Golf course
Lower Puna area
Parks and recreational projects
Total fund balances
Total liabilities and fund balances
See accompanying independent auditors' report.
(Concluded)
Debt Service Fund Total
Bond Nonmaj or
Interest Redemption Governmental
$ 1585894 $ - $ 3779471273
2,306,911 16,952,747 2297289091
- - 2,850
- - 197155371
- - 2413289
- - 1,350
- 2,7749122
- 597,443
- 5,3295575
$ 2,924,046
1,015,888
510,051
2,879,294
717930 2209000 757745412
2,3935875 1657325747 19,126,622
- - 14, 83 8,441
2,8485612
- - 12,0215732
- - 256965777
- - 25037,622
- - 97,909
- - 304,182
- - 491765671
$ 2,465,805 $ 16,9521)747 $ 66,0075789
-96-
This page intentionally left blank.
-97-
COUNTY OF HAWAII
Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
For the Fiscal Year Ended June 34, 2413
Revenues
Fuel taxes
Public utility franchise taxes
Licenses and permits
Intergovernmental
Charges for services
Investment earnings (loss)
Other
Total revenues
Expenditures
Current:
General Government
Public safety
Highways and streets
Health, education and welfare
Culture and recreation
Sanitation
Pension and retirement contributions
Employees' health insurance
Other
Debt service:
Principal
Interest
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other Financing Sources (Uses)
Premium on bonds
Refunding bands
Refunding bands issuance costs
Retirement of refunded debt
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
51922,594-
Special Revenue Funds
15,4421P939
-
- - -
Solid
655415444
Parking
Highway
Sewer
waste
Cemetery
Meter
Fund
Fund
Fund
Fund
Fund
$ 653525944
$ -
$ -
$ -
$ -
1150875369
-
-
-
-
75247,674
-
-
-
-
574,037
-
1,4675524
-
-
-
6,944,712
6,5241495
-
16,991
393,843
39,189
249788
6,254
-
25,655,867
65943,941
796125843
6,254
161991
51922,594-
15,4421P939
-
- - -
-
655415444
2192429184 - -
1,713,563
6445971
1,132,511 - -
946,581
255,873
6145354 - -
407,397
132,842
276,216 - -
1,45503 - -
/G t,V-p..J,V 1 `t 1,-t7�t,VOV /G tl-p-P/G 5 1 VL - -
156225793 (550,785) (16,719,899) 6,254 16,991
1557365,944 - -
(3,460,483) - - - -
(3,4605483) - 1557369944 - -
(1,8375690) (5509785) (9829955) 6,254 165991
14,7575467 4,472,443 914835469 91,659 186,796
$ 12,9195777 $ 3,521,218 $ 8,544,514 $ 97,909 $ 203,787
-98-
Special Revenue Funds
Vehicle
workforce
Golf Geothermal Reloc.
Beauti-
Hawaii County
Park
Disposal
Bikeway Investment
Course & Community
fication
Housing
Dedication
Fund
Fund Act Fund
Fund Benefits Fund
Fund
Agency
Fund
-
369403
- -
-
871749
-
2,091,972
845280 -
- -
1745331
-
-
-
- 1,611,249
- -
-
141638J66
-
-
- -
831,038 -
-
-
-
-
- -
- -
-
4.329
(1-976)
2,0913972
841280
1,611,249 831,078
7615524
174,331
145766,618
_ 011976}
-
-
- -
245890
-
-
-
-
369403
- -
-
871749
-
-
-
-
1,611,249 -
-
-
155293,647
-
-
-
- 798,251
85246
56,300
-
-
2,0981169
-
- -
-
-
-
-
21,104
-
- 139,591
-
-
4675730
-
15,199
-
- 791)418
-
-
1905443
-
-
-
- 3,072
-
-
-
-
-
-
8,390
-
-
-
- -
-
-
15501
-
2,134,472
365403
1,611,249 190201332
331)136
1445049
159961,711
-
(425500)47,877
- (189,254)
728,388
30A2
_ (1,195,093)
„(15976)
-
-
- 2999000
-
-
8385384
-
-
-
- 2995000
-
-
83 813 84
-
(42,500)
475877
- 1095746
7281)388
30,282
(3569709)
(1,976)
2,5355490
643,03
- 1945436
39448,83
1,1975302
5,242,943
86,785
$ 2492,990
$ 691,080
$ - $ 3045182
$ 45176,671
$ 152275584
$ 4,8861)234
$ 84,809
(Continued)
_99_
COUNTY OF HAWAII
Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
For the Fiscal Year Ended June 30, 2013
Revenues
Fuel taxes
Public utility franchise taxes
Licenses and permits
Intergovernmental
Charges for services
Investment earnings (loss)
Other
Total revenues
Expenditures
Current:
General Government
Public safety
Highways and streets
Health, education and welfare
Culture and recreation
Sanitation
Pension and retirement contributions
Employees' health insurance
Other
Debt service:
Principal
Interest
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other Financing Sources (Uses)
Premium on bonds
Refunding bonds
Refunding bonds issuance costs
Retirement of refunded debt
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
See accompanying independent auditors' report.
(Concluded)
Debt Service Fund Total
Bond Nonmaj or
Interest Redemption Governmental
$ 6,3525944
11,087,369
- - 9,595,257
4425719 - 15533301
- - 145273,236
2,353
1,349,757
442,719 - 60,99707
- 24,890
- 5,9229594
- - 15,167,091
- - 16,9049596
- - 862,797
- - 29,801,393
- - 4,079,470
- - 251015864
- - 5195,487
24,2395719 25,303,992
7-_ _ 7- _ . _ . 7-_ - 7 - _ _ _ _ _ 7-- -7 _ _ _
(135508,205) (24,239,719} (549,2945853}
- 1,650,192
100,192
- 89,0295843
8,029,843
- (44,731 )
(44,731 )
- (9,635,304)
(9,635,304)
14,0635323 165958,317
475595,968
- -
(35460,483 }
2,13 5,760 2490149149 6850925745
$ 2,3935875 $ 1657325747 $ 5512335377
-100-
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, 2013
Revenues:
Taxes:
Fuel taxes
Public utility franchise taxes
Total taxes
Licenses and permits - motor vehicle weight taxes
Intergovernmental
Charges for services
Other
Total revenues
Expenditures:
Public safety - 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 uses:
Transfers out - Capital Projects Fund
Deficiency of revenues 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 _ Budget Basis) (Negative}
$ 7,660,000
$ 70000
$ 65352,944
$ (1,307,056)
105560,000
10,560,000
11,087,369
5275369
1852201000
18,2205000
17,440,313
(7795687)
71P090,000
750901000
75247,674
1575674
528,564
578,564
6195884
41,320
500,000
5001000
301,371
(198,629)
71,732
71,732
92,472
20,740
264105296
26,460,296
25,701,714
(758,582)
656245102
6,659,102
6,240,096
419,006
13,6975698
13,712,698
11,101,066
2,6119632
4,8455250
4,8455250
4,845,250
-
2,016,000
2,016,000
157125503
3035497
980,000
98051000
9499483
30,517
1,000,000
190005000
(1215137)
1,121,137
2951639050
29,2131050
24,7275261
494855789
(2,7525754)
(25752,754)
9745453
3,727,207
(35610,000)
(356105000)
(35460,483)
1495517
(6,362,754) (65362,754) (2,4865030) 3,8765724
V945713 $ V94,713 $ 125271,437 $ 358765724
- 101 -
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, 2013
See accompanying independent auditors' report.
-102-
Actual
Variance
Original
Final
(Budgetary
Positive
Budget
Budget
Basis}
(Negative)
Revenues:
Charges for services - sewer fees
$ 69966521.9
$ 6,966,21.9
$ 65904571.2
$ (615507)
Other
-
-
395189
395189
Total revenues
65966,219
6,966,219
65943,901
(225318)
Expenditures:
Sanitation
7!J07,239
75107,239
6,618,533
488,706
Pension and retirement contributions
6711471
671,471
603,946
679525
Employees' health insurance
340,610
340,61.0
2565735
83,875
Other
15201,829
1.,201.5829
345841
1,1.669988
Total expenditures
9,3219149
9,321.51.49
7,51.45055
1.,8075094
Deficiency of revenues under expenditures
(2,3541)930}
(2,354,930)
(570, 154)
157845776
Fund balance at beginning of year
4,072,003
45P0725003
4507203
-
Fund balance at end of year
$ 1,71.7,073
$ 1.,71.79073
$ 35501,849
$ 157845776
See accompanying independent auditors' report.
-102-
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, 2013
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
Deficiency of revenues and other
sources under expenditures
Fund balance at beginning of year
Fund balance at end of year
See accompanying independent auditors' report
-103-
Actual
Variance
Original
Final
(Budgetary
Positive
Bud et
Budget
Basis
(Negative)_
$ 130491200
$ 15049,200
$ 131014,219
$ (345981)
63392,400
653921400
69520,495
128,095
-
-
241788
24,788
7544100
7,441,600
75559,502
117,902
235130,400
235092,402
2157979773
1,294,629
15090,261
15140,261
191309548
9,713
62500
625,000
6149768
105232
555,000
542,998
270,208
272,790
25,40001
25,40001
23,813,297
1,587,364
(175959,061)
(17,959,061)
(165253,795)
1,7055266
15,736,944
15,736,944
15,7369944
-
(2,222,117)
(25222,117)
(5167851)
15705,266
954835469
9,4835469
9,483,469
-
$ 7,261,352
$ 7,261,352
$ 8,966,618
$ 1,705,266
-103-
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, 2013
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.
-104-
Actual
Variance
Original
Final
(Budgetary
Positive
Budget
Budget
Basis)
(Negative)
$ 101)000
$ 101000
$ 65250
$ (3,750)
105000
109000
-
10,000
-
-
65250
65250
91,659
91,659
915659
-
$ 91,659
$ 915659
$ 97,909
$ 6,250
-104-
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, 2013
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.
Actual Variance
Original Final (Budgetary Positive
Budget Budget Basis} a ative
$ - $ - $ 165991 $ 16,991
- - 16,991 165991
1565796 1869796 1865796 -
$ 1865796 $ 186,796 $ 2039787 $ 165991
-105-
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, 2013
See accompanying independent auditors' report.
-106-
Actual
Variance
Original
Final
(Budgetary
Positive
Bud et
Budget
Basis)
(Negative)
Revenues:
Licenses and permits - vehicle disposal fee
$ 2,030,364
$ 2,030,364
$ 2,091,972
$ 615608
Expenditures:
Sanitation
2,551,567
2,548,567
1,034,301
195145266
Pension and retirement contributions
2105
21,805
20,722
103
Employees' health insurance
1200
159000
14,954
46
Other
29000
200
-
25000
Total expenditures
255875372
255875372
150691977
1,5171>395
Excess (deficiency) of revenues
over (under) expenditures
(557,008)
(557,008)
1,021,995
1,5795003
Fund balance at beginning of year
2,535,490
2,535,490
2,535,490
-
Fund balance at end of year
$ 1,9785482
$ 159785482
$ 35557,485
$ 1,579,003
See accompanying independent auditors' report.
-106-
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, 2013
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' report.
Original
Actual
Variance
and Final
(Budgetary
Positive
Budget
_ Basis)
(Negative)
$ 20,000
$ 84,280
$ 64,280
171,000
255000
1.465000
(1.51.,000)
595280
2101280
643,203
643,203
-
$492,203
$702,483
$210,280
-107-
COUNTY OF HAWAII
Workforce Investment Act Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended June 30, 2013
Revenues - intergovernmental - federal grants
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)
$ - $ 115215232 $ 1,521,232 $ -
-108-
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, 2013
Revenues:
Charges for services
Other
Total revenues
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
See accompanying independent auditors' report.
-109-
Actual
Variance
Original
Final
(Budgetary
Positive
Budget
Budget
_ Basis)a
_ (L ative
$ 8405672
$ 8409672
$ 831,038
$ (9,634)
-
-
40
40
8405672
8405P672
831,078
(9,594)
865,653
8655653
7895497
765156
160,709
160,709
139,296
21,413
99,709
99,709
79,517
20,192
1301
1301
3,243
10,358
15139,672
1,139,672
130115553
128,119
(299,000)
(2995,000)
(180,475)
118,525
2991>000
2995000
2995000
-
-
1185525
1185525
194,436
194,436
194436
-
$ 1945436
$ 1945436
$ 3129961
$ 1185525
-109-
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, 2013
Revenues - other - geothermal royalties
Expenditures:
General government:
Legislative
Planning and zoning
Public safety - traffic
Highways and streets - mass transit
Culture and recreation - parks and recreation
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)
173000
$ 60051000 $ 6005000 $ 7613524
$ 161,524
24,890
245890 24,890 -
351,230
150515230 - 19051,230
80,000
805000 - 809000
173000
175000 - 179000
-110-
(7005000) 722,861 142201
COUNTY OF HAWAII
Beautification Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended June 30, 2013
Actual Variance
Original Final (Budgetary Positive
Budget Budget Basis) (N(Negative)
Revenues - licenses and permits - highway
beautification
$ 157,920
$ 1575920
$ 174,331
$ 16,411
Expenditures:
Highways and streets
96,620
168,620
129,909
38,711
Culture and recreation
615300
869300
635587
22,713
Total expenditures
157,920
2545920
1935496
61,424
Deficiency of revenues under expenditures
-
(97,000)
(19,165)
779835
Fund balance at beginning of year
191975302
1,197,302
111975302
-
Fund balance at end of year
$ 1,1975302
$ 1,100,302
$ 1511785137
$ 77,835
See accompanying independent auditors' report.
-III-
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, 2013
Actual Variance
Original Final (Budgetary Positive
Budget Budget Basis) (Negative}
Revenues:
Intergovernmental -
Federal - HUD - Voucher program
Other
Investment earnings
Resale of property
Other
Total revenues
Expenditures:
Health, education and welfare
Pension and retirement contributions
Employees' health insurance
Total expenditures
Deficiency of revenues under expenditures
Other financing sources:
Transfers in - General Fund
Deficiency of revenues and other
sources under expenditures
Fund balance at beginning of year
Fund balance at end of year
See accompanying independent auditors' report.
$ 15,659,252
$ 1536595252
$ 14,6131640
$ (11045,612)
295122
295122
24,526
(4,596)
600
6,000
41329
(1,671 )
-
-
124,027
124,027
-
-
96
96
1504,374
1556943374
141766,618
(927,756)
16,2095060
165209,060
15,310,585
8985475
530,834
530,834
4695133
61,701
225,182
225,182
1915646
33,536
1659655076
161965,076
151971,364
9935712
(1,270,702)
(132709702)
(1,204,746)
659956
83 8,3 84
838,384
838,384
-
(4325318)
(4325318)
(366,362)
655956
5,242,943
5,242,943
5,2425943
-
$ 43810,625
$ 458105625
$ 4,876,581
$ 655956
-112-
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, 2013
Revenues - investment earnings
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)
$ - $ - $ 18 $ 18
- - 18 18
861785 86,785 865785 -
$ 86,785 $ 86,785 $ 865803 $ 18
- 113 -
Assets
Cash and cash equivalents
Investments
Due from other agency funds
Other receivables
Total assets
Liabilities
COUNTY OF HAWAII
Agency Funds
Combining Statement of Agency Funds Net Position
June 30, 2013
Due to other agency funds $ - $ - $ - $ 15670 $ 872 $
Accrued liabilities 1,682,830 105687 - - 374,220 3815933
Advances payable - 115911 - 227,813 - -
Assets held for the benefit of
improvement districts - 1685933 2275419 - - -
Total liabilities $1,682,830 $ 1915531 $ 227,419 $ 229,483 $ 3755092 $ 3815933
See accompanying independent auditors' report.
-114-
Performance
State
Improvement
Improvement
and
Weight
District
District
Refundable
Payroll
Flexible
Tax
No. 18
Revolving
Deposits
Clearance
Spending
Fund
Fund
Fund
Fund
Fund
Account
$1,682,830
$ 183,262
$ 377894
$ 2295483
$ 3415667
$ 381,933
-
-
189,525
-
-
-
-
8,269
-
-
337425
-
$ I,682,830
$ 191,531
$ 227,419
$ 2295483
$ 3757092
$ 3815933
Due to other agency funds $ - $ - $ - $ 15670 $ 872 $
Accrued liabilities 1,682,830 105687 - - 374,220 3815933
Advances payable - 115911 - 227,813 - -
Assets held for the benefit of
improvement districts - 1685933 2275419 - - -
Total liabilities $1,682,830 $ 1915531 $ 227,419 $ 229,483 $ 3755092 $ 3815933
See accompanying independent auditors' report.
-114-
$ - $ - $ - $ - $ 25542
2471>247 1,250 954 183 2,6995304
- - - - 239,724
- - - 201)742 4179094
$ 2475247 $ 1,250 $ 954 $ 20,925 $ 353581664
-115-
Non -Profit
Organ and
Business
Lapsed
License
Tissue
Improvement
Warrants
Plates
Education
District
Fund
Fund
Fund
1 - Kailua
Total
$ 2345640
$ 15250
$ 954
$ 184
$ 31094,097
-
-
-
-
1895525
2,542
-
-
-
25542
$ - $ - $ - $ - $ 25542
2471>247 1,250 954 183 2,6995304
- - - - 239,724
- - - 201)742 4179094
$ 2475247 $ 1,250 $ 954 $ 20,925 $ 353581664
-115-
COUNTY OF HAWAII
Agency Funds
Combining Statement of Changes in Assets and Liabilities
For the Fiscal Year Ended June 30, 2013
- 116-
Balance
Balance
July 1,
June 30,
2012
Additions
Deductions
2013
State Weight Tax Fund
Assets
Cash and cash equivalents
$ 157557546
$
2394125342
$
23,4859058
$ 1,682,830
Liabilities
Vouchers payable
$ -
$
23,4755406
$
235475,406
$
-
Accrued liabilities
1
-
1
-
Accrued liabilities - due to State of Hawaii
15755,545
21.,504,223
21,576,938
196825830
Total liabilities
$ 15755,546
$
445979,629
$
45,052,345
$ 1.9682,830
Improvement District No. 18 Fund
Assets
Cash and cash equivalents
$ 1.7,532
$
31.5,224
$
149,494
$
183,262
Investments
1,45 81P449
-
1,45 8,449
-
Other receivables
811.46
3439770
343,647
8,269
Total assets
$ 15484, 127
$
6589994
$
1. 95 1,590
$
191.,531.
Liabilities
Vouchers Payable
$ -
$
1.53925773
$
1.,392,773
$
-
Accrued liabilities
1.05907
2965251.
296,471
1.05687
Advances payable
1451.83
1.15911.
14!) 183
1.1.591.1.
Assets held for the benefit
of improvement districts
1.,459,037
2799470
1.,569,574
1.685933
Total liabilities
$ 1 1491.27
$
159807405
$
352735001.
$
191,531.
Improvement District Revolving Fund
Assets
Cash and cash equivalents
$ 286,569
$
57
$
2481)732
$
37,894
Investments
-
1.89,525
-
1.895525
Total assets
$ 286,569
$
1.89,582
$
248,732
$
227941.9
Liabilities
Vouchers payable
$ -
$
5304
$
53,684
$
-
Assets held for the benefit
of improvement districts
286,569
1.57,466
21.6961.6
227741.9
Total liabilities
$ 286,569
$
21.191.50
$
2709300
$
227341.9
- 116-
COUNTY OF HAWAII
Agency Funds
Combining Statement of Changes in Assets and Liabilities
For the Fiscal Year Ended June 30, 2013
-117-
Balance
Balance
July 1,
June 30,
2012
Additions
Deductions
2013
Performance and Refundable
Deposits Fund
Assets
Cash and cash equivalents
$
522,542
$ 326,855
$ 619,914
$
229,483
Liabilities
Vouchers payable
$
-
$ 615,145
$ 6155145
$
-
Due to other agency funds
15920
151670
15920
15670
Advances payable
5205622
3255185
6175994
2275813
Total liabilities
$
5229542
$ 94200
$ 15235,059
$
2295483
Payroll Clearance Fund
Assets
Cash and cash equivalents
$
323,344
$ 21250587388
$ 212,040,065
$
3415667
Due from other non -agency funds
-
20805,478
20805,478
-
Other receivables
-
41,479
8,054
33,425
Total assets
$
323,344
$ 42039851345
$ 420,9331597
$
375,092
Liabilities
Vouchers payable
$
-
$ 1045907,344
$ 1045907,344
$
-
Due to other agency funds
326
872
326
872
Accrued liabilities
3231018
3821454,965
3825403,763
374,220
Total liabilities
$
323,344
$ 4875363,181
$ 487,311,433
$
375,092
Flexible Spending Account
Assets
Cash and cash equivalents
$
3655481
$ 3245846
$ 3085394
$
3815933
Liabilities
Accrued liabilities
$
3655481
$ 324,846
$ 308,394
$
381,933
-117-
COUNTY OF HAWAII
Agency Funds
Combining Statement of Changes in Assets and Liabilities
For the Fiscal Year Ended June 30, 2013
Balance Balance
July 1, June 30,
2012 Additions Deductions 2013
Lapsed Warrants Fund
Assets
Cash and cash equivalents
Due from other agency funds
Other receivables
Total assets
Vouchers payable
Accrued liabilities
Total liabilities
Non -Profit License Plates Fund
Assets
Cash and cash equivalents
Vouchers payable
Accrued liabilities:
Due to non-profit agency
Total liabilities
Organ and Tissue Education Fund
Assets
Cash and cash equivalents
Liabilities
Vouchers payable
Accrued liabilities - due to State of Hawaii
Total liabilities
$
2211496
$
13,396
$
252
$
2345640
21246
2,542
29246
25542
11,150
10,065
11,150
105065
$
234,892
$
265003
$
13,648
$
2479247
$
-
$
252
$
252
$
-
234,892
275175
145820
247,247
$
2345892
$
275427
$
155072
$
247,247
$ 15175 $ 4,750 $ 4,675 $ 15250
$ - $ 45650 $ 4,650 $ -
1,175 4,750 4,675 1,250
$ 15175 $ 9,400 $ 9,325 $ 15250
$ 923 $ 35547 $ 3,516 $ 954
$ - $ 35516 $ 3,516 $ -
923 35547 35516 954
$ 923 $ 7,063 $ 7,032 $ 954
-118-
COUNTY OF HAWAII
Agency Funds
Combining Statement of Changes in Assets and Liabilities
For the Fiscal Year Ended June 30, 2013
Business Improvement District 1-Kailua
Assets
Cash and cash equivalents
Other receivables -BID 1-Kailua Assessment
Other receivables
Total assets
Liabilities
Vouchers payable
Accrued liabilities - due to KVBID
Accrued liabilities
Assets held for the benefit
of improvement districts
Total liabilities
Total - All Agency Funds
Assets
Cash and cash equivalents
Investments
Due from other agency funds
Due from other non -agency funds
Other receivables -BID 1-Kailua Assessment
Other receivables
Total assets
Liabilities
Vouchers payable
Due to other agency funds
Accrued liabilities
Accrued liabilities - due to non-profit agency
Accrued liabilities - due to State of Hawaii
Accrued liabilities - due to KVBID
Advances payable
Assets held for the benefit
of improvement districts
Total liabilities
See accompanying independent auditors' report.
Balance Balance
July 1, June 30,
2012 Additions Deductions 2013
$ 25183
$ 7545248 $
756,247
$ 184
14,997
760,006
7545262
20,741
-
470
470
-
$ 175180
$ 1,5145724 $
1,510,979
$ 205925
1,756,468
215547,774
2155845454
$ -
$ 7559241 $
755,241
$ -
2,183
121
25183
121
-
62
-
62
145997 897,965 8929220 205742
$ 17,180 $ 156539389 $ 156495,644 $ 20,925
$ 3,496,791 $ 23752135653 $ 2371,6163,347 $ 3,0943097
154585449 1895525
1,458,449 1891525
21P246 25542
29246 25542
- 248055478
208,885,478 -
14,997 7605406
754,262 205741
$ 4,991,779 $ 4475446,988 $ 4499484,103 $ 3,358,664
$ -
$ 131,2085411
$ 131,248,011
$ -
2,246
21542
2,246
21542
9341299
3835143,299
38354235449
1,014,149
1,175
4,750
45675
1,254
1,756,468
215547,774
2155845454
1,6835784
2,183
121
25183
121
53405
3375496
6325177
239,724
$ 4,991,779 $ 537,498,494 $ 539,131,645 $ 3,3585664
- 119-
COUNTY OF HAWAII
Private Purpose Trusts
Combining Statement of Private Purpose Trust Net Position
June 30, 2013
Assets
Cash and cash equivalents
Investments
Other Receivable
Total assets
Net Position
Held in trust for other parties
Total net position
See accompanying independent auditors' report.
$ 291585043 $ . 296145435 $ 4,7725478
$ 25158,043 $ 2,614,435
$ 251581043 $ 2, 614,43 5
-120-
0 A P7P7n A P70
Shippers'
Total
Geothermal
Wharf
Private
Asset
Trust
Purpose
Fund
Fund
Trusts
$ 4165700
$ 1,324,554
$ 157415254
157415343
1,289,418
ern
35030,761
ern
$ 291585043 $ . 296145435 $ 4,7725478
$ 25158,043 $ 2,614,435
$ 251581043 $ 2, 614,43 5
-120-
0 A P7P7n A P70
COUNTY OF HAWAII
Private Purpose Trusts
Combining Statement of Changes in Private Purpose Trust Net Position
For the Fiscal Year Ended June 30, 2013
Shippers' Total
Geothermal Wharf Private
Asset Trust Purpose
Additions
Contributions:
Puna Geothermal Venture
Investment earnings:
Net increase (decrease) in fair value of
investments
Dividends
Interest
Total additions
Reductions
Grant payments
Total deductions
Change in net position
Net position, beginning of year
Net position, end of year
See accompanying independent auditors' report.
$ 507000 $
-
$ 50,000
(50,748)
80,715
29,967
-
55,825
55,825
459
15641
2,100
(289)
13 8,181
137M2
-
2901)734
290,734
-
290,734
290,734
(289)
rn r1 r% e%
(152,553)
� rr�� nA r%
(1529842)
A e%^ j- r%^^
:L,1 J ZS,V4.3 �i 2.501454-3--) �i 4,1 /ZL 415
-121 -
This page intentionally left blank.
-122-
STATISTICAL SECTION
(UNAUDITED)
Contents
Page
Financial Trends — These schedules contain trend information to help help the reader understand
how the County's financial performance and well-being have changed over time. 123
Revenue Capacity — These schedules contain information to help the reader assess the County's
most significant local revenue source, the property tax. 128
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. 134
Demographic and Economic Information — These schedules offer demographic and economic
indicators to help the reader understand the environment within which the County's financial
acitivities take place. 137
Operating Information — These schedules contain service and infrastructure data to help the
reader understand how the information in the County's financial report relates to the services
provided and the activities performed by the County. 139
au
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- 123-
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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,
-127-
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Revenues:
Property tax
$121,868
$131,087
$153,207
$181,446
$ 208,313
$ 225,858
$ 215,548
$ 216,511
$ 208,231
$ 201,201
Public service company tax
5,332
6,351
6,812
7,396
8,381
10,229
9,647
9,297
9,897
10,766
Fuel tax
7,552
7,581
7,857
8,471
7,888
7,662
7,406
7,603
8,293
6,353
Public utility franchise tax
5,373
6,017
7,329
8,520
9,027
11,118
8,963
9,416
11,065
11,087
Licenses and permits
11,840
14,442
16,544
16,269
15,918
14,972
14,725
15,097
15,790
15,991
Intergovernmental
58,559
73,372
69,637
63,599
72,601
70,869
77,614
93,748
100,867
79,912
Charges for services
14,467
18,149
19,852
21105
22,154
21,404
18,909
16,416
16,885
17,055
Investment earnings (loss)
1,806
3,104
5,223
10,291
12,144
8,914
2,253
510
406
(618)
Settlement contributions
-
-
-
-
-
-
-
-
-
12,500
Other
4,718
4,450
4,380
5,073
7,151
5,690
3,241
7,874
4,201
4,399
Total Revenues
231,515
264,553
290,841
322,750
363,577
376,716
3 58,3 06
376,472
375,635
358,646
Expenditures:
Current:
General government
23,070
26,183
31,153
37,652
42,991
45,882
40,586
34,251
35,088
33,360
Public safety
69,117
76,404
83,591
93,241
103,617
107,540
108,798
104,917
104,523
106,885
Highways and streets
9,542
9,787
12,608
14,033
19,529
17,159
20,222
17,114
17,338
17,923
Sanitation
1702
21,883
26,565
31,817
33,405
35,025
35,675
28,424
29,511
30,672
Health, education and welfare
19,047
19,870
19,050
21,470
24,609
24,596
25,519
26,847
23,749
24,199
Culture and recreation
13,169
13,982
14,731
17,118
18,179
18,853
17,266
16,001
16,763
16,337
Pension and retirement contributions
11,081
14,204
19,937
21,796
24,296
28,870
28,509
27,284
27,773
29,816
Employees' health insurance
14,256
16,168
16,133
16,941
18,089
19,119
23,573
25,212
25,902
26,011
Other postemployment benefits
-
-
-
-
13,629
14,950
15,700
171>307
-
-
Other
7,128
6,133
6,780
5,108
5,344
6,257
4,773
4,758
4,183
2,991
Debt service:
Principal
12,826
13,150
14,060
16,076
16,548
19,749
20,720
42,233
24,834
25,718
Interest
9,283
9,534
9,914
9,894
13,116
12,790
14,584
14,841
15,032
14,345
Capital outlay
23,474
32,816
30,588
52,285
70,156
89,368
100,653
87,782
71,220
48,565
Total Expenditures
229,595
260,114
285,110
337,431
403,508
440,158
456,578
446,971
395,916
376,822
Revenues over (under) Expenditures
1,920
4,439
5,731
(14,681)
(39,931)
(63,442)
(98,272)
(70,499)
(20,281)
(18,176)
Other Financing Sources (Uses):
Sale of assets
1,593
1,486
82
5
3,470
58
10
6
153
1
Capital leases
1,474
1,369
404
2,403
2,187
1,026
1,948
47
2,521
1,307
State Revolving Fund loans
-
11>504
25
6,255
1,916
280
6,811
9,257
4,569
4,991
Sale of bonds
1,725
30,000
25,000
85,000
-
50,000
-
45,000
-
50,480
Issuance of bond anticipation notes (SANS)
-
-
-
-
-
-
19,000
-
-
-
Refunding bonds
-
24,595
-
31,607
-
-
-
-
-
47,510
Premium on bonds
-
3,025
972
3,099
-
185
-
2,078
-
17,570
Refunding bonds/BANs issuance costs
-
(129)
-
(218)
-
-
(19)
-
-
-
Payment to refunded bond escrow agent
-
(25,885)
-
(32,699)
-
-
-
-
-
(45,352)
Retirement of refunded debt
-
-
-
-
-
-
-
-
-
(9,635)
Transfers in
39,440
42,119
45,691
59,139
64,929
56,697
61,495
56,099
59,971
51,356
Transfers out
(39,440)
(42,119)
(45,691)
(59,139)
(64,929)
(56,697)
(61,495)
(56,099)
(59,971)
(51,356)
Total other financing sources
4,792
35,965
26,483
95,452
7,573
51,549
27,750
56,388
7,243
66,872
Net change in fund balances
$ 6,712
$ 40,404
$ 32,214
$ 80,771
$ (32,358)
$ (11,893)
$ (70,522)
$ (14,111)
$ (13,038)
$ 48,696
Debt service as a percentage of
noncapital expenditures
10.8%
10.3%
9.7%
9.0%
9.3%
9.0%
10.4%
15.9%
12.3%
13.9%
Unaudited - see accompanying independent auditors' report,
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Taxpayer Business
Mauna Kea/Hapuna Beach Corps. Developer/Hotel
Hilton Land Investment 1 LLC Hotel
Hualalai Investors LLC
DeveloperlHotel
Orchid 09 LLC
Hotel
WB KD Acquisition LLC
Developer
Mauna Lani Resort Inc.
Developer/Hotel
Hilton Resorts Corp.
Timeshare
Target Coporation
Retailer
Kohanaiki Shores LLC
Developer
Ho Retail Properties
Devoloper
BP Bishop Estate
Developer
Mauna Kea Development Corp
HotelslDev.
WB Kukio Resorts LLC
Developer
Global Resort Partners
Hotel
Liliuokalani Trust Estate
Land Trust
FHR (ML) Hotel Holdings LLC
Hotel
1250 Oceanside Partners
Developer
Kaupulehu Makai Venture
Developer
RWH Inc.
Hotel
Table 6
COUNTY OF HAWAII
Principal Taxpayers
June 30, 2013 and 2004
Fiscal Year 2013
Fiscal Year 2004
Percentage
Percentage
2012
of Total
2003
of Total
Assessed
Assessed
Assessed
Assessed
Valuation
Rank
Valuation
Valuation
Rank
Valuation
$ 187,032,300
3
0.8%
$ -
-
203,948,300
1
0.9%
-
-
197,921,000
2
0.8%
-
-
115,055,200
5
0.5%
-
-
73,331,000
7
0.3%
-
-
95,267,000
6
0.4%
102,923,900
7
0.7%
1321459,000
4
0.6%
-
-
65,499,500
8
0.3%
-
-
65,342,600
9
0.3%
-
-
58,833,600
10
0.3%
-
-
-
-
4285030,800
1
2.7%
-
-
238,1411700
2
1.5%
-
-
1905704,200
3
1.2%
-
-
156,7325600
4
1.0%
-
-
143,313,700
5
0.9%
-
-
128967800
6
0.8%
-
-
7815283600
8
0.5%
-
-
7413963800
9
0.5%
-
-
54,723,400
10
0.4%
$1,194,689,500
5.2%
$ 1,596,1741300
10.2%
Note: Gross valuation at January 1, 2012: $23,527,568,906
Gross valuation at January 1, 2003: $15,605,696,000
Source: County of Hawaii, Department of Finance, Real Properly Tax Division
Unaudited - see accompanying independent auditors' report.
-132-
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IC
COUNTY OF HAWAII
Ratios of General Bonded Debt outstanding
Last Ten Fiscal Years
Debt
Applicable to
Fiscal Legal Debt
Year Margin (a)
Table 9
Percent of
Net Taxable
Property Per
Value (b) Capita (c)
2004
$ 17656931195
1.4%
$ 11082
2005
195,198,142
1.3%
11167
2006
2055219,940
1.2%
15199
2007
2815836,503
1.2%
1,633
2008
265,431,280
1.0%
1,510
2009
29695355925
1.0%
15667
2010
2779481,633
1.0%
15549
2011
305,615,691
1.2%
1,636
2012
317,699,844
1.3%
1,679
2013
3151,6769941
1.3%
NIA
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.
- 135-
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Table 11
COUNTY OF HAWAII
Demographic and Economic Statistics
Last Ten Fiscal Years
Fiscal
*Personal
*Per
Year
*Resident
Income
Capita
Ended
Population
(thousands
Personal
School
Unemployment
June 30,
as of July 1
of dollars)
Income
Enrollment
Rate
2003
158,442
$
398693362
$
24,421
29,635
4.6%
2004
1629852
$
4,2235829
$
25,937
29,827
3.9%
2005
1685237
$
4,6385838
$
27,573
303,262
3.3%
2006
173,536
$
5,0645624
$
29,185
303,539
3.0%
2007
177,733
$
5,5099169
$
301997
30,618
3.4%
2008
1813506
$
5,8999236
$
323502
30,408
5.7%
2009
1833629
$
5,517,497
$
303047
305138
9.9%
2010
1853,381
$
59717,885
$
305844
295741
10.0%
2011
1873229
$
651149237
$
323656
30,103
9.7%
2012
189,191
$
653189657
$
333398
30,314
8.3%
* Amounts reflect subsequent adjustments
Source: County of Hawaii, Department of Research and Development
Unaudited - see accompanying independent auditors' report.
-137-
Table 12
COUNTY OF HAWAII
Principal Employers, County of Hawaii
June 30, 2013 and 2004
NOTES:
(a) Data for Fiscal Year 2012 and Fiscal Year 2013 are unavailable.
Source: County of Hawaii, Department of Research and Development
Unaudited see accompanying independent auditors' report.
- 138-
2011 (a)
2004
Percentage
Percentage
of Total County
of Total County
Employer
Employees
Rank
Employment
Employees
Rank
Employment
State of Hawaii
7,962
1
10.1%
7,608
1
10.0%
County of Hawaii
2,630
2
3.3%
2,291
2
3.0%
United States Government
15429
3
1.8%
11)221
3
1.6%
Hilton Waikoloa Village
935
4
1.2%
100
4
1.4%
RTA Super Stores
750
5
0.9%
785
5
1.0%
Walmart
741
6
0.9%
-
-
Four Seasons Resort Hualalai
650
7
0.8%
557
8
0.7%
The Fairmont Orchid, Hawaii
616
8
0.8%
600
6
0.8%
Mauna Idea Beach Hotel
513
9
0.6%
556
9
0.7%
Mauna Lani Resort (Operations) Inc.
450
10
0.6%
-
-
Mauna Lani Bay Hotel
-
-
580
7
0.8%
Hapuna Beach Prince Hotel
-
-
542
10
0.7%
Total
163676
21.0%
15,840
20.7%
Total employee count
78,950
765200
NOTES:
(a) Data for Fiscal Year 2012 and Fiscal Year 2013 are unavailable.
Source: County of Hawaii, Department of Research and Development
Unaudited see accompanying independent auditors' report.
- 138-
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