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County of Hawaii
<br />Department of Water Supply
<br />(A component unit of the County of Hawaii, State of Hawaii)
<br />MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued)
<br />June 30, 2020 and 2019
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<br />Financial Analysis (Continued)
<br />Long-term debt decreased by $4.2 million, or 5.93%, in FY2020, due primarily to bond and loan
<br />repayments of $5.7 million, offset by loan proceeds of $1.7 million. During FY2019, long term debt
<br />decreased by $3.9 million, or 5.23%, due primarily to bond and loan repayments of $5.5 million
<br />and loan forgiveness of $0.6 million, offset by loan proceeds of $2.5 million.
<br />
<br />Other liabilities increased by $1.4 million, or 1.84% in FY2020, due primarily to an increase in
<br />accounts and construction contracts payable of $2.9 million, offset by a decrease of net pension
<br />iability of $1.5 million. In FY2019, other liabilities increased $4.3 million, or 6.12%, due primarily
<br />to an increase in net pension liability of $5.1 million, offset by a decrease of net OPEB liability of
<br />$0.8 million.
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<br />Deferred inflows of resources increased by $1.4 million, or 55.47%, in FY2020, due primarily to
<br />an increase in deferred inflows of resources for pensions of $1.5 million. In FY2019, deferred
<br />inflows of resources increased by $0.4 million, or 16.40%, due primarily to a decrease in deferred
<br />inflows of resources for pensions of $0.5 million, offset by an increase in deferred inflows of
<br />resources for OPEB of $0.9 million.
<br />
<br />Net investment in capital assets increased by $9.1 million, or 4.03%, in FY2020, due primarily to
<br />an increase in net capital assets of $5.0 million, and a reduction in long term debt of $4.2 million.
<br />In FY2019, net investment in capital assets decreased by $2.6 million, or 1.14%, due primarily to
<br />a reduction in net capital assets of $6.5 million, offset by a reduction in long term debt of $3.9
<br />million.
<br />
<br />Total net position decreased $6.6 million, or 2.94%, in FY2020, due primarily to the results of
<br />operations of ($6.5 million). In FY2019, total net position decreased by $5.5 million, or 2.40%, due
<br />primarily to the results of operations of ($5.5 million).
<br />
<br />Operating expenses decreased by $0.5 million, or 0.91 %, in FY2020, due primarily to a decrease
<br />in employee benefits of $0.6 million. In FY2019, operating expenses increased by $2.8 million, or
<br />4.96%, due primarily to an increase in purchased power of $1.6 million.
<br />
<br />Non-operating expenses decreased by $0.4 million, or 16.42%, in FY2020, due primarily to
<br />decreases in interest on long term debt of $0.2 million and losses on disposal of property of $0.2
<br />million. In FY2019, non-operating expenses decreased by $1.4 million, or 38.39%, due primarily
<br />to Kapoho lava flow infrastructure losses incurred in the prior year of $1.5 million.
<br />
<br />Contributions in aid of construction decreased by $1.8 million, or 36.36%, in FY2020, due primarily
<br />to prior year dedications exceeding current year's by $1.4 million, and loan forgiveness of $0.6
<br />million in the prior year. In FY2019, contributions in aid of construction decreased by $3.1 million,
<br />or 38.05%, due primarily to generators valued at $0.5 million and State of Hawaii construction
<br />funding of $0.6 million received in the prior year but not in FY2019.
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