2014-COH - Comprehensive Annual Financial Report

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the value of net taxable real property and building tax rates as evidenced in the accompanying statistical tables. • The positive impact of the increase in revenues was offset by increases of $20.3 million (9 percent) in expenditures and $7.6 million (16 percent) in transfers out. $8.6 million of the total increase in expenditures is due to increases in salaries and wages from the prior year and $7.2 million in associated employee benefits. The fund balance of the County's capital projects fund increased by $5.4 million (7 percent) during the current fiscal year. The increase is primarily due to the combined total of the fund's main revenue sources of long-term debt financing, which consists of state revolving fund loan proceeds ($3.1 million); intergovernmental revenue ($8.8 million); private contributions ($21.2 million); real estate sales ($3.5 million) and transfers in ($5.9 million) being greater than capital expenditures ($37.7 million) for the current fiscal year. The debt service funds consist of the Bond Redemption Fund and the Interest Fund. These funds have combined total fund balances of $23.6 million, all of which is restricted for the payment of debt service. The net increase in the combined fund balances during the current year in the debt service funds was $4.4 million (23 percent). Proprietary funds. The County's proprietary finds provide the same type of information found in the government -wide financial statements, but in more detail. Unrestricted net position of the Kulaimano Elderly Housing Project (Kulaimano) at the end of the year amounted to $759,878, and $333,872 for the Ouli Ekahi Affordable Housing Project (Ouli Ekahi). The total net position for Kulaimano decreased by $5,886 and the net position for Ouli Ekahi increased by $108,040. Other factors concerning the finances of these two funds have already been addressed in the discussion of the County's business -type activities. GENERAL FUND BUDGETARY HIGHLIGHTS Differences between the original budget and the final amended budget were primarily the result of a $7.3 million increase in appropriations, the most significant single reason (46 percent) due to an increase in the appropriations for capital outlays. Differences between the final budget and the actual (budgetary basis) resulted in approximately $536,000 less revenues than expected and $20.8 million less expenditures than appropriated. This is primarily due to the following factors: • The positive variances in real property and public service company taxes of $4.1 million was negated by an almost equal negative variance in intergovernmental revenues for both the federal and state grants of $3.0 million and in total charges for services of $1.2 million. • $3.2 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 ($1.3 million) and general government ($1.3 million). • $2.1 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. • $2.7 million is due to the fact that the increase in health premiums for employees' was Iower than originally anticipated. -23-