|
County of Hawaii
<br />Department of Water Supply
<br />(A component unit of the County of Hawaii, State of Hawaii)
<br />NOTES TO FINANCIAL STATEMENTS
<br />June 30, 2017
<br />NOTE E - LONG-TERM OBLIGATIONS (Continued)
<br />securities, which were deposited in an irrevocable trust administered by an escrow agent to
<br />provide for the future debt service payment on the refunded bonds. As a result, the 2006
<br />Series A, 2007 Series A, 2008 Series A, and 2010 Series A were considered defeased and
<br />were removed from the County's financial statements in 2016.
<br />The Department has a 50% proportionate share of the 2016 Series B refunding bonds and
<br />the 2006 Series A bonds. The Department also has a 25% proportionate share of the 2016
<br />Series E refunding bonds and 2010 Series A bonds. The Department's proportionate share
<br />of the net proceeds from the 2016 Series B and 2016 Series E refunding bonds was
<br />$21,778,750 which was used to advance refund the Department's proportionate share of the
<br />2006 Series A bonds and 2010 Series A bonds amounting to $15,425,000 and $6,220,000,
<br />respectively. These bonds were defeased and removed from the Department's 2016
<br />financial statements.
<br />The Department's total debt service requirement over the next ten to thirteen years will
<br />decrease by $3,002,238 as a result of the refunding and the net economic gain (difference
<br />between the present values of the debt service payments on the old and new debt) was
<br />$2,647,988. At June 30, 2017, the Department's proportionate share of defeased bonds was
<br />$6,220,000.
<br />Other Long-term Obligations - The following is a summary of other long-term obligations
<br />transactions for the fiscal year ended June 30, 2017:
<br />Balance
<br />July 1, 2016 Deductions Balance Due Within
<br />(as restated) Additions and Payments June 30, 2017 One Year
<br />Accrued workers'
<br />compensation $ 362,000 $ 347,621 $ (126,621) $ 583,000 $ 130,417
<br />Accrued vacation 1,676,081 747,130 (741,229) 1,681,982 555,054
<br />Customers' deposits 17,170,200 936,050 (1,019,611) 17,086,639 165,350
<br />Total $ 19,208,281 $ 2,030,801 $ (1,887,461) $ 19,351,621 $ 850,821
<br />NOTE F - EMPLOYEE BENEFITS
<br />Pension Plan
<br />Plan Description - Generally, all full-time employees of the State and counties are required
<br />to be members of the ERS, a cost-sharing multiple -employer defined benefit pension plan
<br />that administers the State's pension benefits program. Benefits, eligibility, and contribution
<br />requirements are governed by HRS Chapter 88 and can be amended through legislation.
<br />The ERS issues publicly available annual financial reports that can be obtained at ERS'
<br />website: http://ers.ehawaii.gov/.
<br />Benefits Provided - The ERS Pension Trust is comprised of three pension classes for
<br />membership purposes and considered to be a single plan for accounting purposes since all
<br />assets of the ERS may legally be used to pay the benefits of any of the ERS members or
<br />beneficiaries. The ERS provides retirement, disability and death benefits with three
<br />25
<br />
|