2014-COH - Comprehensive Annual Financial Report

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construction and equipment costs will approximate $1.2 billion and once it becomes operational in 2021, the TMT will have an annual operational budget of $27 million. The outlook for the construction industry based on building permits seems to be improving despite a few challenges that remain in the areas of the rising cost of materials and the workforce availability. According to the Economic Forecast by First Hawaiian Bank, private building permits are up to about $60 million per month and single-family quarterly building permits have increased from $10$13 million per month in 2011 to $20 million per month earlier this year. Several large construction projects are on the horizon for each side of the island. The west side of the island is experiencing increased activity in residential construction with several projects moving forward due to the resolution of issues surrounding the infrastructure at Hokulia. Construction also continued with the Hawaii Community College's Palama Nui campus and several substantial highway projects, which include includes the Hawaii Community College and the widening of the Queen Kaahumanu Highway ($75 million) and completion of Phase III of the Saddle Road ($32 million). A large portion of the east side construction activity focuses on the Hilo harbor where construction has begun on the new inter -island cargo facility and another $47 million is anticipated to be spent on Phase II and Ill, which does not include the $5 million to be spent on demolition of part of the Pier I to allow larger ships access to the port. These factors were considered in preparing the County's budget for the 2015 fiscal year. At the end of the current fiscal year, unrestricted fund balance in the general fund was $46.3 million. The County has appropriated $25.5 million of this amount for spending in the 2015 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. -26-