CAFR 2012 Final with Opinion (2)

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• $6.5 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($3.9 million), general government($1.8 million)and culture and recreation($0.7 million). • $2.3 million was unspent by Mass Transit regarding the purchase of new buses because the federal grant that they received was lower than originally anticipated. • $1.9 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. $2.5 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, 2012 amounts to$918.4 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 Keohokalolc Highway; construction in progress as of the end of the current fiscal year increased by$13.3 million to reach a total of$28.9 million, which was transferred to Infrastructure. Construction continued on the Kaloko Housing Project and related wastewater treatment plant; construction in progress as of the end of the current fiscal year for both projects increased by$5.0 million to reach a total of$14.0 million,of which the portions relating to the completed phases were transferred to Building and Improvements. • Construction continued on the Honokaa large capacity cesspool project, construction in progress as of the end of the current fiscal year increased by$3.9 million to reach a total of $4.9 million. • Construction continued on the Makalei Fire Station; construction in progress as of the end of the current fiscal year had increased by$5.4 million to reach a total of$6.1 million. + Construction continued on the Panaewa Park New Covered Play Courts; construction in progress as of the end of the current fiscal year had reached $2.4 million, which was transferred to Buildings and Improvements. • Construction began on the Hawaiian Ocean View Estates (H.O.V.E.)Water Facilities Project; construction in progress as of the end of the current fiscal year had reached$6.0 million, which was transferred to Buildings and Improvements. • $31.8 million of dedicated roads were received by the County in the current fiscal year. 0 $6.3 million of sewer systems were dedicated to the County in the current fiscal year. - 23 -