CAFR 2012 Final with Opinion (2)

Home

• 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. The development of the TMT atop Mauna Kea is progressing as it is in its final stages of approval. It is projected that construction will span over nine years resulting in 300 construction jobs and 140 full- time permanent jobs with an annual estimated budget of$26 million. The current annual operating cost of the observatories that sit atop Mauna Kea is approximately$75.3 million,which includes the employment of over 500 county based workers. • The construction industry continues to serve as the lagging sector of the economy but there are recent signs that this may change soon. Although, construction jobs remain below that of peak times, private building permits which serve as a better indicator of the future shows encouraging results. • Several industries in the County will reap the benefits from UH-Hilo's June groundbreaking for Phase I of the University Village Student Housing Project. At an estimated $32 million, the project will house just over 300 students and sit on a 33 acre parcel fronting the University main entrance. • The County's agriculture sector generally offers a positive economic view this year, which is most evident in the macadamia and coffee production. In West Hawaii,the forecasted nut production is expected to increase by about 15%with levels in East Hawaii remaining the same as last year. Prices overall are anticipated to remain consistently strong at levels comparable to last year or possibly even higher. Coffee production on the island overall is expected to increase by 10% and prices are expected to remain stable. These factors were considered in preparing the County's budget for the 2013 fiscal year. At the end of the current fiscal year, unrestricted fund balance in the general fund was $41.7 million. The County has appropriated$18.0 million of this amount for spending in the 2013 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 -