2015-COH - Comprehensive Annual Financial Report

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modernization project is budgeted at $60-70 million and the State plans on completing the design phase shortly and beginning construction by the summer. The outlook for the construction industry based on building permits seems to be improving despite conflicting information being provided by the continual decline in recorded construction jobs. Total number of building permits authorized in June 2015 was up by 56.0 percent compared to the same month a year ago and total value of building permit authorized was up by 11.0 percent for the same period. According to the Economic Forecast by First Hawaiian Bank, private building permits are up from less than $30 million per month in 2010 to more than $60 million per month in 2015. Several large construction projects and exciting changes are in store for the citizens on each side of the island. In addition to the Kona airport construction scheduled to begin by summer, the east side of the island is anxiously awaiting the changes being brought on by the new management of the Naniloa property by Hilton, through its Doubletree brand. A new airport fire station of about $20 million is slated for Hilo, in addition to the construction project already in the design phase for the Kona airport. There is also much single-family residential construction activity planned for the Hilo side including the 56 lots of Hilo Hillside Estates, 37 lots of Punahou Mauka Estates, 19 lots of Lake View Estates and a 49 lot subdivision being developed on land below the Hilo Municipal Golf Course. These factors were considered in preparing the County's budget for the 2016 fiscal year. At the end of the current fiscal year, unrestricted fund balance in the general fund was $44.0 million. The County has appropriated $25.9 million of this amount for spending in the 2016 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. -24-