2005 CAFR Part 2 - Laserfiche WebLink

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COUNTY OF HAWAII Notes to the Basic Financial Statements June 30,2005 The deposits and investments include investments received by the Department that are refundable or restricted as to use,and is recorded as a restricted asset. Such funds amounted to$11,914,168 at June 30,2005. At June 30,2005,the Department's investment portfolio consists primarily of time certificates of deposit held by the County on behalf of the Department. 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 utility plant assets in service is computed using the straight- line method over the estimated usefial 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 30,2005 were as follows: Utility plant in service $269,379,520 Less: accumulated depreciation (123,642,024) 145,737,496 Land and rights 787,657 Construction in progress 40,640,738 Net capital assets 187.165.891 -77-