HomeMy WebLinkAbout2017-COH - Comprehensive Annual Financial ReportEvil ff -r # ,r.
• r r • n by
The Department of Finance
Collins f
Director of Finance
Page
INTRODUCTORY SECTION
Letter of Transmittal I
GFOA Certificate of Achievement 8
Organization Chart 9
List of Elected Officials 10
List of Principal Officials I I
Report of Independent Auditors 13
Management's Discussion and Analysis 16
Basic Financial Statements:
Government -wide Financial Statements:
Statement of Net Position 28
Statement of Activities 30
Fund Financial Statements:
Balance Sheet - Governmental Funds
32
Reconciliation of the Governmental Funds Balance Sheet to the
Statement of Net Position
33
Statement of Revenues, Expenditures, and Changes in Fund Balances -
Governmental Funds
34
Reconciliation of the Change in Fund Balances of Governmental
Funds to the Statement of Activities
36
Statement of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual (Budgetary Basis) - General Fund
38
Statement of Net Position - Proprietary Funds
42
Statement of Revenues, Expenses, and Changes in Fund Net Position -
Proprietary Funds
43
Statement of Cash Flows - Proprietary Funds
44
Statement of Fiduciary Net Position - Fiduciary Funds
45
Statement of Changes in Fiduciary Net Position - Fiduciary Funds
46
Notes to the Basic Financial Statements
47
Required Supplementary Information
103
FINANCIAL SECTION (Continued)
139
Table 2 - Changes in Net Position
Pa
Combining and Individual Nonmajor Fund Statements and Schedules:
142
Combining Balance Sheet - Nonmajor Governmental Funds
110
Combining Statement of Revenues, Expenditures, and Changes in Fund
144
Balances - Nonmajor Governmental Funds
114
Schedules of Revenues, Expenditures, and Changes in Fund Balances -
149
Budget and Actual (Budgetary Basis):
150
Highway Fund
117
Sewer Fund
118
Solid Waste Fund
119
Cemetery Fund
120
Parking Meter Fund
121
Vehicle Disposal Fund
122
Bikeway Fund
123
Workforce Investment Act Fund
124
Golf Course Fund
125
Geothermal Relocation and Community Benefits Fund
126
Beautification Fund
127
Hawaii County Housing Agency
128
Park Dedication Fund
129
Combining Statement of Agency Funds Net Position - Agency Funds
130
Combining Statement of Changes in Assets and Liabilities - Agency Funds
132
Combining Statement of Private Purpose Trust Net Position - Private Purpose Trusts
136
Combining Statement of Changes in Net Position - Private Purpose Trusts
137
Table I - Net Position by Component
139
Table 2 - Changes in Net Position
140
Table 3 - Fund Balances, Governmental Funds
142
Table 4 - Changes in Fund Balance, Governmental Funds
143
Table 5 - Real Property Assessed Values by Classification and Tax Rates
144
Table 6 - Principal Taxpayers
148
Table 7 - Property Tax Levies and Collections
149
Table 8 - Ratios of Outstanding Debt by Type
150
Table 9 - Ratios of General Bonded Debt Outstanding
151
Table 10 - Legal Debt Margin Information
152
Table I I - Demographic and Economic Statistics
153
Table 12 - Principal Employers, County of Hawaii
154
Table 13 - Full -Time Equivalent County Government Employees by Function
155
Table 14 - Operating Indicators by Function
156
Table 15 - Capital Asset Statistics by Functions
157
INTRODUCTORY SECTION
M
County of Hawai"i
$7
Finance Department
25 Aupuni Street, Suite 2103 o Hilo, Hawai'i96711
(808)961-8234 * Fax(808)961-8569
The Honorable Mayor and Members of the Council
County of Hawaii
25 Aupuni Street
Hilo, Hawaii 96720
W - I PIRI
State of Hawai'i (the County), for the fiscal year July 1, 2016 to June 30, 2017.
This report was prepared by the County's Department of Finance. The accuracy of the financial
statements and the completeness and fairness of their presentation are the responsibility of the
County government. We believe the enclosed data are complete and accurate in all material
resjtects and are -MCorted in a manner designed to %resent fairlip the financial #i osition and results
of operations of the various funds of the County. All disclosures necessary to convey the
maximum understanding of the County's financial activities have been included. Management's
discussion and analysis is also included to aid users of the financial statements.
This report presents the financial position of the County of Hawaii at June 30, 2017 and results
of operations for the fiscal year then ended. The report is divided into three sections:
10 The Introductory Section includes this transmittal letter, a Certificate of Achievement for
Excellence in Financial Reporting, the County of Hawai'i's organization chart and lists of
elected and principal officials.
The Financial Section contains management's discussion and analysis, the basic financial
statements, related notes, the combining and individual fund budgetary financial statements,
and the independent auditors' report.
the County government, This component unit is included in the County's reporting entity
because of its financial relationship with the County.
- I -
La
Deanna S. Sako
Director
Nancy Crawford
Dep 4ty Director
County of Hawai"i
$7
Finance Department
25 Aupuni Street, Suite 2103 o Hilo, Hawai'i96711
(808)961-8234 * Fax(808)961-8569
The Honorable Mayor and Members of the Council
County of Hawaii
25 Aupuni Street
Hilo, Hawaii 96720
W - I PIRI
State of Hawai'i (the County), for the fiscal year July 1, 2016 to June 30, 2017.
This report was prepared by the County's Department of Finance. The accuracy of the financial
statements and the completeness and fairness of their presentation are the responsibility of the
County government. We believe the enclosed data are complete and accurate in all material
resjtects and are -MCorted in a manner designed to %resent fairlip the financial #i osition and results
of operations of the various funds of the County. All disclosures necessary to convey the
maximum understanding of the County's financial activities have been included. Management's
discussion and analysis is also included to aid users of the financial statements.
This report presents the financial position of the County of Hawaii at June 30, 2017 and results
of operations for the fiscal year then ended. The report is divided into three sections:
10 The Introductory Section includes this transmittal letter, a Certificate of Achievement for
Excellence in Financial Reporting, the County of Hawai'i's organization chart and lists of
elected and principal officials.
The Financial Section contains management's discussion and analysis, the basic financial
statements, related notes, the combining and individual fund budgetary financial statements,
and the independent auditors' report.
the County government, This component unit is included in the County's reporting entity
because of its financial relationship with the County.
- I -
The County provides a full range of municipal services. These include police and fire protectio'71
emergency medical care; public prosecutor; culture and recreation; sanitation; social services;
water; planning and zoning; construction and maintenance of highways, streets and
infrastructure; real property assessment and tax collection; and general administrative services.
However, the County does not provide such other traditional services as public education,
hospitals and courts, These services are provided by the State government.
The County consists of the island of Hawai'i, 4,028 square miles in size. It is twice as large as
's
the combined area of all the other inhabited islands in the Hawaiian Archipelago. Since there i
overlapping debt. The County has an elected mayor and a nine -member council.
� 2 -
The $75 million improvements at the Kona International Airport include a centralized security
area, a six -lane passenger screening checkpoint building and new restrooms, The expansion i�
anticipated to be completed by February 2019.
Major Initiatives
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and to improve responses and services to the community, such as 1) an online training and
records management system, which is training software that allows all personnel to complete
,fidactic based training directly from the stations' computers and maintain training records, 2) a
riew Computer Aided Dispatch (CAD) software and Emergency Dispatch Center Console
upgrades to provide the most current CAD service and, 3) the implementation *.n
the
W,epartment's intranet which enables direct sharing of critical information amongst personnel
within the department.
Public Works — Over the past fiscal year the Department of Public Works (DPW) completed
majM r projects in our community including:
The Kapi'olani Steet project, valued at $14.1 million, was completed in August, 2016. The extension
provides an alternate emergency evacuation route and improves traffic flow on Kilauea Avenue,
Kino'ole Street, and the surrounding streets, The project involved the construction of concrete curbs,
gutters and sidewalks; drainage improvements, utility installation, and relocation; traffic signals at
two intersections and a concrete bridge across Waifikea Stream.
The Mdmalahoa Highway Bypass Road and Nap6'opo'o Road Intersection Improvement project,
valued at $30 million, was completed in November, 2016. This project involved the construction of a
two-lane roadway from Haleki'i Street 2.2 miles to the vicinity of the Nap6'opo'o Road/Mamalahoa
Highway intersection, The project included two travel lanes, paved shoulders, and traffic signals at
the Nap6'opo'o intersection, driveway tie-ins, water utilities, and drainage improvements, The
b ass road mitigates traffic cqn V',�. e rt i an
such congested areas as Honalo, Kainaliu and Konawaena schools.
The Komohana Street Reconstruction (Waidnuenue Avenue to K5k5au Street), valued at $4,6 million,
was completed in May 2017. The project involved the reconstruction of approximately 4000 feet of
roadway, traffic signal upgrades, pavement striping, and replacing utility valves and boxes. The
project was completed in May 2017.
all
The management of the County is responsible for establishing and maintaining an internal
control structure designed to ensure that the assets of the County are protected from loss, theft or
misuse and to ensure that adequate accounting data are compiled to allow for preparation of
financial statements in conformity with generally accepted accounting principles. The internal
control structure is designed to provide reasonable, but not absolute, assurance that these
objectives are met. The concept of reasonable assurance recognizes that (1) the cost of a control
should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits
I equires estimates and judgments by management.
The County maintains budgetary controls to ensure that legal provisions of the annual budget are
complied with and that those expenditures do not exceed budgeted amounts.
Activities of the general fund and special revenue funds are included in the annual appropriated
operating budget. Project -length financial plans are adopted for the capital projects fund.
Budgetary control is established at the department level.
Formal budgetary integration is employed as a management control device for the general fund,
special revenue funds, and the capital projects fund. Budgetary control for the debt service fund
is achieved through general obligation bond indenture provisions.
The basis of accounting used for the budgets of the general and special revenue funds differs
from generally accepted accounting principles, Intergovernmental revenues are recognized when
awarded by the granting agency, encumbrances and unexpended allotments are treated as
treated as operating leases, and accounts payable are not accrued.
The County also maintains an encumbrance accounting system as one technique of
accomplishing budgetary control. Encumbrances outstanding at fiscal year end are included in
the various fund balance categories based on whether the resources are restricted, committed or
assigned and do not constitute expenditures or liabilities because they will be honored during the
following year. As demonstrated by the statements and schedules included in the financial
section of this report, the County continues to meet its responsibility for sound financial
management,
Significant Accounting Policies
The County has implemented Governmental Accounting Standards Board Statement No. 14,
Financial Reporting Entity (GASB Statement No. 14), Statement No. 39, Determining Wnhethe
Certain Organizations Are Component Units (GASB Statement No. 3 9) and Statement No. 6 1,
The Financial Reporting Entity.- Omnibus an amendment of GASB Statements No. 14 and 34
(GASB Statement No. 61). All organizations, activities or functions that meet the criteria in
GASB Statement No. 14, No. 39 and No. 61 for inclusion in the reporting entity are included i
the County's basic financial statements. For further discussion on other significant I
accounting
policies, refer to the notes to the basic financial statements.
-5 -
AcknoWedgments
The preparation of this report was made possible by the efficient and dedicated services of the
entire staff of the Department of Finance and fiscal personnel in other departments. I am grateful
for their help in preparing this report. I also thank the Mayor and the members of the County
Council for their interest and support in assuring the continuing sound financial condition of the
County of Hawai'i.
-7-
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• i'ili'i i.i •, non V w0
Financial]Certificate of
Achievemen
ifor Excellenc
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i 4 11tMOMMITAPFUMMI
Financial Report
for the -d
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Executive Director/CEO
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County of Hawaii
,, ,rganization Char)
County Council ayor
County Legislative
Clerk Auditor
Prosecuting Attorney
of M
Office gf Mana Eement.
Managing Director
Departments under
Agencies under
Departments under
direct supervision of the
direct supervision of the
commissions and
Managing Director:
Managing Director:
administrative supervision
of the Mayor:
Corporation Counsel
Civil Defense
Human Resources
Finance
Office of Aging
Police
Planning
Mass Transit
Liquor Control
Environmental Management
Office of Housing &
Fire
Research & Development
Community Development
Water Supply
Public Works
(semi -autonomous)
Parks & Recreation
Information Technology
Administrative Officers (Term: 2016-2020)
Harry Kim Mayor
Mitchell Roth Prosecuting Attorney
Cgply Council (Term: 2016-2018)
Valerie Poindexter
Chair
Karen Eoff
Vice Chair
Aaron S.Y. Chung
Member
Maile "Medeiros" David
Member
Dru Mamo K
Member
Susan L. K. Leeloy
Member
Eileen O'Hara
Member
Herbert M. Richards, III
Member
Jennifer Ruggles
Member
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County Clerk
Stewart Maeda
Legislative Auditor
Bonnie Nims
Managing Director
Wilfred Okabe
Deputy Managing Director
Barbara Kossow
Corporation Counsel
Joseph Kamelamela
Director of Finance
Collins Tomei
Planning Director
Michael Yee
Director of Personnel
Sharon Kamahele-Toriano
Director of Research and Development
Diane Ley
Chief of Police
Paul Ferreira
Fire Chief
Darren Rosario
Director of Public Works
Frank Demarco
Director of Environmental Management
William Kucharski
Parks and Recreation Director
Charmaine Kamaka
Manager -Chief Engineer, Department of Water Supply
Keith Okamoto
Civil Defense Administrator
Talmadge Magno
Director of Liquor Control
Gerald Takase
Mass Transit Administrator
Tiffany Kai
Executive on Aging
Christian Alameda
Administrator, Office of Housing and
Community Development
Neil Gyotoku
Director of Information Technology
Julie Ung
FINANCIAL SECTION
To the Chair and Members of the County Council
County of Hawai'i
AMERICAN SAVINGS BANK TOWER
1001 BISHOP STREET, SUITE 1700
HONOLULU, HAWAII 96813-3696
T (808) 524-2255 F (808) 523-2090
We have audited the accompanying financial statements of the governmental activities, the
business -type activities, the discretely presented component unit, each major fund, and the
aggregate remaining fund information of the County of Hawai'i, State of Hawal'i (County), as of
and for the fiscal year ended June 30, 2017, and the related notes to the financial statements,
which collectively comprise the County's basic financial statements as listed in the tabl-
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nance of in�e
includes the design, implementation, and maintenance of internal control relevant to t
whether due to fraud or error.
Our responsibility is to express opinions on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United States
of America and the standards applicable to financial audits contained in Govemment Auditing
Standards, issued by the Comptroller General of the United States. Those standards require that
we plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free from material misstatement,
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor's
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor
I I 11-7X-741 IIMWE I 1107UW1 EPIC
management, as well as evaluating the overall financial statement presentation of the financial
statements.
N&K CPAs, lnc,
ACCOUNTANTS I CONSULTANTS
ITAITT17,lff,77M
basis for our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects,
the respective financial position of the •• activities, the business -type activities, the
discretely presented component unit, each major fund, and the aggregate remaining fund
information of the County of Hawai'i, State of Hawai'i, as of June 30, 2017, and the respective
changes in financial position and, where applicable, cash flows thereof and the budgetary
comparison for the general fund for the fiscal year then ended in accordance with accounting
principles generally accepted in the United States of America.
Emphasis • Matter
Adoption • New Accounting Principles
As discussed in Note 1 (page 61) to the financial statements, the County adopted new accounting
'4160T., �Uk4
to the employees of state and local governmental employers as well as extending the approach to
accounting and financial reporting for pensions that were not within the scope of GASB Statement
No, 68, Accounting and Financial Reporting for Pensions. Our opinion is not modified with respect
to this matter.
Other Matters
Required Supplementary Information
.......... .
ICK CPAs, Inc.
ACCOUNTANTS I CONSULTANTS
agreements and other matters. The purpose of that report is solely to describe the scope of our
testing of internal control over financial reporting and compliance and the results of that testing,
and not to provide an opinion on the effectiveness of the County's internal control over financial
reporting or on compliance. That report is an integral part of an audit performed in accordance
with Government Auditing Standards in considering the County's internal control over financial
reporting and compliance.
We
prenensive 77nnuarTmanclaf =po
The assets of the County exceeded its liabilities at the end of the fiscal year by $436.0 million
(net position). This amount includes a negative balance of $470.7 million in unrestricted net
position, a decrease of $82.3 million from the prior year, which is explained in the sections
below.
As of the close of tile current fiscal year, the County's governmental funds reported combined
ending fund balances of $161.5 million, a decrease of $30.4 million from the prior year,
Approximately 44 percent of this total amount, $70.4 million, is available for spending at the
County's discretion (unrestricted fund balance),
At the end of the current fiscal year, unrestricted fund balance for the general fund was $27.1
million, or 9 percent of total general fund expenditures,
financial statements, This report also contains both required and other supplementary
informatiF n in addition to the basic financial statements themselves.
3
of the County's finances, in a manner similar to a private -sector business,
The statement of net position presents information on all of the County's assets and liabilities,
with the difference between the two reported as net position. Over time, increases or decreases in
net %osition map serve as a useful indicator of whether or not the financial (woon of the Coun[W
is improving or deteriorating.
The statement of activities presents information showing how the County's net position changed
during the most recent fiscal year. All changes in net position are reported as soon as the
underlying event giving rise to the change occurs, regardless of the timing of related cash flows.
Thus, revenues and wuenses are reforted in this statement for some items that will onlki result in
cash flows in future fiscal periods, such as revenues pertaining to uncollected taxes and expenses
pertaining to earned but unused vacation and sick leave.
Both of the government -wide financial statements distinguish functions of the County that are
principally supported by taxes and intergovernmental revenues (governmental activities) from
other functions that are intended to recover all or a significant portion of their costs through user
fees and charges (business -type activities). The governmental activities of the County include
public safety, highways and streets, health, education and welfare, culture and recreation,
sanitation and general government. The business -type activities of the County include rental
housing for senior citizens and families.
Fund Financial Statements
The fund financial statements are designed to report information about groupings of related
activities or objectives. The County, like other state and local governments, uses fund accounting
to ensure and demonstrate compliance with finance -related legal requirements, All of the funds
of the County can be divided into the following three categories: governmental funds,
proprietary funds, and fiduciary funds.
Governmental funds. Governmental funds are used to account for essentially the same
functions reported as governmental activities in the government -wide financial statements —
i.e., most of the County's basic services are reported in governmental funds. These
statements, however, focus on (1) how cash and other financial assets can readily be
converted to available resources and (2) the balances left at year-end that are available for
spendinY. Such information may be useful in determining what financial resources are
?vailable in the near future to finance the County's programs.
!NEW. 10MUM 11011-11"1411W W11 111101,11
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financial statements. By doing so, readers may better understand the long-term impact of the
government's near-term financing decisions. Both the governmental funds balance sheet
and the governmental funds statement of revenues, expenditures, and changes in fund
balances provide a reconciliation to facilitate this comparison between governmental funds
9nd governmental activities.
The County maintains several individual governmental funds organized according to their
type (general, special revenue, debt service, and capital projects). Information is presented
separately in the governmental funds balance sheet and in the governmental funds statement
of revenues, expenditures, and changes in fund balances for the general fund and capital
projects fund, which are considered to be major funds. Data from the remaining
governmental funds are combined into a single, aggregated presentation. Individual fund
data for each of the non -major governmental funds is provided in the form of combining
statements elsewhere in this report.
The County adopts an annual appropriated budget for its general fund and special revenue
funds. A budgetary comparison statement has been provided for these funds to demonstrate
compliance with this budget. The budgetary comparison statement for the general fund is
located in the basic financial statements, whereas the budgetary comparison schedules for
the nonmajor special revenue funds are presented elsewhere in this report.
Proprietary funds. Proprietary funds are generally used to account for services for which
the County charges outside customers, Proprietary funds provide the same type of
information as shown in the government -wide financial statements, only in more detail. The
County maintains only one type of proprietary funds, enterprise funds. Enterprise funds
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Condensed Statement of Net Position
June 30, 2017 and 2016
outstanding
1,291,082,705
994,872,052
Primary Government
1,014,014
1,292,007,354
995,886,066
Governmental Activities
18,825,301
53,737,158
Total
56,533
48,912,145
53,793,691
NIL-4
1,339,908,006
1,048,609,210
1,011,493
MiLlll
1,340,919,499
ZQL7
tggtated
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221
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Assets:
S 495,606,500 $ 1,546,815
Of Resources:
14,250,500
__18,166,919
--
Current and other assets
$ 234,095,834
S 263,573,114
1,109,367
S 1,093,403
$ 235,205,201
$ 264,666,517
Capital assets, net
1,301,647,095
1,233,637,293
1,448,941
1,495,053
1,303 096 036
235,132,346
Total assets
1,535,742,929
...1,497,210,407
2,558,308
2,588,456
1,53 8,301,237
1,499,798,863
Deferred Outflows
1,077,846,676
Of Resources:
252,872,831
75 172,222
252,_ 872,831
75,17_ 2,222
Total Assets and Deferred
Outflows of Resources
1,788,615,760
1,572,382,629
2,558,308
2,588,456
1,791,174,068
1,574,971,085
outstanding
1,291,082,705
994,872,052
924,649
1,014,014
1,292,007,354
995,886,066
Other liabilities
18,825,301
53,737,158
86,844
56,533
48,912,145
53,793,691
Total liabilities
1,339,908,006
1,048,609,210
1,011,493
1,070,547
1,340,919,499
1,049,679,757
Deferred Inflows
_(EI,934,491) 022,523
L_
1,036,870 (EL747,7641
897,62�1)
(j�
Total net position
$ 434,457,254
S 495,606,500 $ 1,546,815
Of Resources:
14,250,500
__18,166,919
--
14.,250,500
28,166,919
Total Liabilities and
Deferred Inflows
Of Resources
1,354,158,506
1,076,776,129
1,011,493
1,070,547
1,355,169,999
1,077,846,676
Net position:
Net investment in
capital assets
835,787,961
824,846,090 524,292
481,039 836,312,253
825,327,129
Restricted
70,439,580
74,694,901
— 70,439,580
74,694,901
Unrestricted
(471,770,287)
_(EI,934,491) 022,523
L_
1,036,870 (EL747,7641
897,62�1)
(j�
Total net position
$ 434,457,254
S 495,606,500 $ 1,546,815
S 1,517,909 $436,004,069
.1417,124,411
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Condensed Statements of Activities
For the Fiscal Years Deded June 30,2017 and 2016
Revenues:
Program revenues:
Charges for services
Operating grants and contributions
Capital grants and contributions
General revenues:
Property taxes
Other taxes
Grants and contributions, unrestricted
Investment earnings
Other
Expenses:
General government
Public safety
Highways and streets
Health, education and welfare
Culture and recreation
Sanitation
Interest on long-term debt
Total expenses
Increase (Decrease) in net position (61,149,246) 37,016,379 28,906 48,878 (61,120,340) 37,065,257
Net position at beginning of year 495,606,500 472,181,912 1,517,909 1,469,031 497,124,409 473,650,943
Cumulative effect of accounting change - (13,591,791) - - (13,591,791)
Net position at beginning of year,
as restated 495,606,500 458,590,121 1,517,909 1,469,031 497,124,409 460,059,152
Net position at end of year S 434,457,254 S 495,606,500 $ 1,546,815 $ 1,517,909 $ 436,004,069 $ 497,124,409
W_116HIMEM ON
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to decreases in highways and streets projects, and was offset by a $20.5 million increase in
property taxes. The increase in property taxes was due to increases in the value of net taxable
real property, of which the most notable was an $832.7 million increase in the residential classes
that represented an I I percent increase from the prior year.
Primary Government
Governmental Activities
Business -type Activities
Total
2Q17
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re tate
fated
$ 49,289,344
S 46,706,482
$ 469,082 $ 457,842
$ 49,758,426
$ 47,164,324
52,897,945
47,234,458
132,435 133,932
53,030,380
47,368,390
14,784,692
60,230,846
- -
14,784,692
60,230,846
268,869,322
248,353,113
268,869,322
248,353,113
24,662,766
26,739,088
24,662,766
26,739,088
19,810,090
19,557,513
19,810,090
19,557,513
661,184
316,593
1,243 1,912
662,427
318,505
7,092,071
12,081,055
- -
7,092,071
12,081,055
_743_8,067,414
46_1,219,148
6-02,760 5-93,686
-43-8,670,174
4_61,812,834
72,836,020
65,064,440
-
72,836,020
65,064,440
229,507,091
187,160,903
229,507,091
187,160,903
51,368,841
45,255,305
51,368,841
45,255,305
40,299,077
39,722,480
573,854 544,808
40,872,931
40,267,288
35,213,973
27,315,451
35,213,973
27,315,451
56,605,864
48,521,434
56,605,864
48,521,434
13,385,794
11,162,756
13,385,794
11,162,756
_4_99,_216,660
4_24,202,769
5-73,854 5-44,808
499,790,514 --72-4,747,577
Increase (Decrease) in net position (61,149,246) 37,016,379 28,906 48,878 (61,120,340) 37,065,257
Net position at beginning of year 495,606,500 472,181,912 1,517,909 1,469,031 497,124,409 473,650,943
Cumulative effect of accounting change - (13,591,791) - - (13,591,791)
Net position at beginning of year,
as restated 495,606,500 458,590,121 1,517,909 1,469,031 497,124,409 460,059,152
Net position at end of year S 434,457,254 S 495,606,500 $ 1,546,815 $ 1,517,909 $ 436,004,069 $ 497,124,409
W_116HIMEM ON
A_A r
J"M jv"ppxm I JWJ
to decreases in highways and streets projects, and was offset by a $20.5 million increase in
property taxes. The increase in property taxes was due to increases in the value of net taxable
real property, of which the most notable was an $832.7 million increase in the residential classes
that represented an I I percent increase from the prior year.
followed by general government (15 percent) and sanitation (11 percent). General revenues su
as property and other taxes are not shown by program, but are effectively used to support
program activities countywide. For governmental activities overall, without regard to program
property taxes are the largest single source of funds (61 percent), followed by capital grants an
contributions (12 percent) and charges for services (I I percent).
Expenses and Program Revenues — Governmental Activities
Year Ended June 30, 2017 1
$250,000,000
$200,000,0D0
$150,000,000
$100,000,000
$50,000,000
go
Revenue by Source — Governmental Activities
Year Ended June 30, 2017
41:1
11-1
06'
``CI
Revenue by Source — Governmental Activities
Year Ended June 30, 2017
versus an increase of $48,878 in the prior year. Expenses for health, education and welfare
account for all of the $573,854 of expenses which represents a 5 percent increase from the prior
year. Charges for services were $469,082, operating grants and contributions were $132,435 and
investment earnings were $1,243, which were all comparable to the prior year,
finance -related legal requirements.
Governnientalfunds. The focus of the County's governmental funds is to provide information
on near-term inflows, outflows, and balances of spendable resources. Such information is useful
in assessing the County's financing requirements. In particular, unrestricted fund balance may
fiscal year.
As of the end of the current fiscal year, the County's governmental funds reported combined
ending fund balances of $161.5 million, a decrease of $30.4 million (16 percent) in comparison
with prior year. Approximately 44 percent of this total amount ($70.4 million) constitutes
unrestricted fund balance, The unrestricted portion of the fund balance is comprised of (1) $533
million in committed fund balance and (2) $17.1 million in assigned fund balance. The remainder
of the fund balance is divided between $5.6 million in nonspendable fund balance for inventory
and $85.5 million in restricted fund balance. Approximately 64 percent of the total restricted
fund balance is due to restrictions relating to highways, streets and abandoned vehicles ($28.3
million) and debt service ($26.8 million).
The general fund is the chief operating fund of the County. At the end of the current fiscal year,
unrestricted fund balance of the general fund was $27, 1 million, while total fund balance
,tecreased to $473 million. As a measure of the general fund's liquidity, it may be useful to
compare both unrestricted fund balance and total fund balance to total fund expenditures.
Unrestricted fund balance reyeresents 9 yercent *-f total, -,eneral fund e
balance represents 16 percent of that same amount.
year as compared to an increase of $1.7 million in the prior year. Key factors in this decrease
($7,8 million) over last year's increase are as follows:
A positive increase of $17.5 million (7 percent) in real property tax revenues and $3.2 million
(6 percent) in intergovernmental revenues, As explained previously, the increase in real
property tax revenues is due to a slight increase in the value of net taxable real property as
evidenced in the accompanying statistical tables.
The positive impact of the increase in revenues was offset by increases of $17.3 million (6
percent) in expenditures. $7.5 million of the total increase in expenditures is due to increases
in salaries and wages from the prior year and $7,9 million in associated employee benefits.
The fund balance of the County's capital projects fund decreased by $24.3 million (34 percent)
during the current fiscal year. The decrease is primarily due to the fact that the $105A million of
expenditures for various construction projects were only partially offset by the issuance of $8.1
million in SRF loans and $59.8 million in BANs.
The debt service funds consist of the Bond Redemption Fund and the Interest Fund. These fun&
have combined total fund balances of $26.8 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 $3.3 million (I percent).
Proprietaryfunds. The County's proprietary funds provide the same type of information fbi.M,4�
in the government -wide financial statements, but in more detail.
year amounted to $575,54 1, and $446,982 for the Ouli Ekahi Affordable Housing Project (Ouli
Ekahi). The total net position for Kulaimano decreased by $26,177 and the net position for Ouli
Ekahi increased by $55,083, Other factors concerning the finances of these two funds have
already been addressed in the discussion of the County's business -type activities.
715311; 111 111 lid
This is primarily due to the following factors:
* The negative variance of $10.3 million in revenues is comprised mostly of $1.9 million from
real property and public service company taxes, $5.2 million in intergovernmental revenues
for both the federal and state grants and $1.7 million in total charges for services.
* $6.5 million of the unspent appropriations is related to salaries and wages and tile various
countywide expenditure accounts relating 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 ($3.5
million) and general government ($2.1 million).
* $3.8 million is due to lower than anticipated payments needing to be made in retirement
related payments, With each department increasing efforts to control costs, overtime was
also closely monitored and the corresponding pension expenditures were not incurred.
* $1.2 million is due to the fact that the increase in health premiums for employees' was lower
than originally anticipated.
Capital assets. The County's investment in capital assets for its governmental and business-ty-p;
activities as of June 30, 2017 amounts to $1.3 billion (net of accumulated depreciation). This
investment in capital assets includes land and improvements, buildings and improvements,
equipment, casements, 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 6
percent.
Major capital asset events during the current fiscal year included the following:
a Construction continued on the Hokulia Bypass; construction in progress as of tile end of tile
current fiscal year had reached $25.1 million with $7.2 million coming from the current fiscal
year; the project was transferred to Infrastructure.
0 Construction continued on the Mass Transit agency baseyard and maintenance facility;
construction in progress as of the end of the current fiscal year had reached $9.8 million with
$5.8 million coming from the current fiscal year.
0 Construction continued on the Pahoa Park expansion project; construction in progress as of
the end of the current fiscal year had reached $24.4 million with $3.8 million of it coming,
from the current fiscal year; project was transferred to Buildings,
0 Construction continued on the Hilo Municipal Golf Course new clubhouse project;
construction in progress as of the end of the current fiscal year had reached $18.4 million
with $8.7 million coming from the current fiscal year; the project was transferred to
Buildings.
0 Construction continued on the Waimea District Park phase 1; construction in progress as of
the end of the current fiscal year had reached $19,5 million with $11.8 coming from the
current fiscal year; project was transferred to Buildings.
0 Construction continued on the H6naunau Rodeo Arena Improvements; construction in
progress as of the current fiscal year had reached $4.9 million with $3.1 million coming from
the current fiscal year; the project was transferred to Buildings,
a Construction continued on the Haihai Fire Station; construction in progress as of the end of
the current fiscal year had reached $9.2 million with $6.9 million coming from the current
fiscal year,
0 Construction continued on the Kuawa Soccer Field Development Project; construction in
progress as of the current fiscal year had reached $3.4 million with $2.9 million coming from
the current fiscal year.
0 Construction continued on the Kukuihaele Park Improvements; construction in progress as of
the current fiscal year had reached $3.9 million with $3.7 million coming from the current
fiscal year.
0 Construction continued on the Mauna Kea Recreation Area Improvements; construction in
progress as of the current fiscal year had reached $10.2 million with $7.8 million coming
from the current fiscal year.
0 Construction continued on the Kealakehe Wastewater Treatment Plant; construction in
progress as of the current fiscal year had reached $14,8 million with $4.1 million coming
from the current fiscal year; project was transferred to Buildings.
0 Construction began on the Kawailani Street Improvements ('Iwalani to Pohakulani);
construction in progress as of the end of the current fiscal year had reached $3.2 million.
0 $1.2 million of dedicated roads were received by the County in the current fiscal year.
Capital Assets
(net of depreciation)
it Tc P, Mi. 2 $ 17 ?_Uj;L2ftL�,
Additional information on the County's capital assets can be found in note 6 to the basic financial
statements.
Long-term debt. Long-term debt is primarily comprised of bonds of $338.5 million, State
Revolving Fund loans of $32.6 million and Bond Anticipation Notes of $59.8 million. At the end
of the current fiscal year, the County had total bonded debt outstanding of $338,5 million. This
entire amount was comprised of general obligation bonds which are backed by the full faith and
credit of the County.
The County's total bonded debt decreased by $18.1 million (5 percent) during the current fiscal
year due to the regularly scheduled principal payments.
At the end of the fiscal year, the County held an "AA+" rating from Fitch and an "Aa2" rating
from Moody's for general obligation debt.
State statutes limit the amount of general obligation debt the County may issue up to 15 percent
of the total assessed value of all county real property as established for tax purposes on the last
tax assessment rolls. The current debt limitation for the County is $4.3 billion, which is in excess
of the County's outstanding general obligation debt. Currently the County's outstanding debt
represents 9 percent of our debt limitation.
Additional information on the County's long-term debt can be found in note 10 to the basic
financial statements.
The unemployment rate for the County for the current fiscal year is at approximately 34
percent, which represents a percentage point decline from last year's rate for the same
period of 4.0 percent, a two percent decline from two years ago and an even larger
decline from the high of 11.0 percent in 2011,
0 The number of domestic and international visitors to the County for the current fiscal
year was approximately 1.65 million, with an approximately 9 percent increase from tile
previous year's count of 1.51 million, For tile most part, the County is less dependent on
tourism than the other islands in the State, but the Kona airport terminal modernization
project is budgeted at $60-70 million.
Primary Government
Governmental Activities
_Business -type Activities
Total
2017
2016
2017
2M
2_Q 17
201
Land and improvements
$ 239,187,891
$ 233,498,340
$ 753,877
$ 753,877
$ 239,941,768
$ 234,252,217
Infrastructure assets
328,917,985
307,227,977
-
-
328,917,985
307,227,977
Ground and site improvements
-
-
57,893
62,240
57,893
62,240
Buildings and improvements
597,987,986
504,617,544
610,498
646,540
598,598,484
505264,084
Easements
4,244,255
4,170,517
-
-
4,244,255
4,170,517
Equipment
60,190,776
59,910,752
26,673
32,396
60,217,449
59,943,148
Construction work in progress
71,118,202
124,212,163
_1
-T-1,495,053
71,118,202
124,212,163
Total
$1,233,637,293
1,44-8,941
$1,303,096,036
$1,235,132,346
Additional information on the County's capital assets can be found in note 6 to the basic financial
statements.
Long-term debt. Long-term debt is primarily comprised of bonds of $338.5 million, State
Revolving Fund loans of $32.6 million and Bond Anticipation Notes of $59.8 million. At the end
of the current fiscal year, the County had total bonded debt outstanding of $338,5 million. This
entire amount was comprised of general obligation bonds which are backed by the full faith and
credit of the County.
The County's total bonded debt decreased by $18.1 million (5 percent) during the current fiscal
year due to the regularly scheduled principal payments.
At the end of the fiscal year, the County held an "AA+" rating from Fitch and an "Aa2" rating
from Moody's for general obligation debt.
State statutes limit the amount of general obligation debt the County may issue up to 15 percent
of the total assessed value of all county real property as established for tax purposes on the last
tax assessment rolls. The current debt limitation for the County is $4.3 billion, which is in excess
of the County's outstanding general obligation debt. Currently the County's outstanding debt
represents 9 percent of our debt limitation.
Additional information on the County's long-term debt can be found in note 10 to the basic
financial statements.
The unemployment rate for the County for the current fiscal year is at approximately 34
percent, which represents a percentage point decline from last year's rate for the same
period of 4.0 percent, a two percent decline from two years ago and an even larger
decline from the high of 11.0 percent in 2011,
0 The number of domestic and international visitors to the County for the current fiscal
year was approximately 1.65 million, with an approximately 9 percent increase from tile
previous year's count of 1.51 million, For tile most part, the County is less dependent on
tourism than the other islands in the State, but the Kona airport terminal modernization
project is budgeted at $60-70 million.
BASIC FINANCIAL STATEMENl I
COUNTY OF HAWAII
Statement of Net Position
Assets
Current assets:
Cash and cash equivalents (notes 3 and 14)
Restricted cash and cash equivalents (note 3)
Investments (note 3)
Restricted investments (note 3)
Receivables, net (note 4)
Receivable from improvement district
(notes 4 and 10)
Internal balances (note 5)
Inventories
Prepaid expenses
Real estate held for sale
Other
Total current assets
Investments (note 3)
Restricted investments (note 3)
Restricted cash and cash equivalents (note 3 and 14)
Receivable from improvement district, excluding
current portion (notes 4 and 10)
Capital assets (notes 6, 8 and 14):
Utility plant in service, net
Infrastructure assets, net
Ground and site improvements, net
Buildings and improvements, net
Equipment, net
Easements, net
Preliminary survey and investigation charges
Construction work in progress
Land and improvements
Total capital assets, net
Total noncurrent assets
Total assets
Deferred Outflows of Resourcesu
Deferred loss on refnding
Deferred outflow related to pensions (notes 13 and 14)
Total deferred outflows of resources
Total Assets and Deferred Outflows of Resources
MEME
Primary Government
_Eovernmental Business -type Component
Activities Activities Total Unit
$ 72,208,295 $ 790,911 $ 72,999,206 $ 24,522,616
31,638,458
41,350
31,679,808
-
3,761,249
3,761 „249
199,994
3,961,243
5,000,000
53,691,590
-
53,691,590
-
47,712,126
4,027
47,716,153
7,931,767
99,189
-
99,189
-
1,350
(1,350)
-
-
5,561,433
-
5,561,433
1,540,784
-
1,791
1,791
207,196
402,551
-
402,551
-
669,391
-
669,391
-
215,745,632
1,036,723
216,782,355
39,202,363
10,673,703
-
10,673,703
20,000,000
5,578,253
-
5,578,253
-
-
72,644
72,644
888,225
2,098,246 2,098,246
MOM
328,917,985
-
328,917,985
-
57,893
57,893
-
597,987,986
610,498
598,598,484
-
60,190,776
26,673
60,217,449
-
4,244,255
-
4,244,255
-
®
5,337,002
71,118,202
-
71,118,202
29,979,075
239,187,891753,877
239,941,768
4,898,583
1,301,647,095
1,448,941
1,303,096,036
300,890,633
,997,297
L1,3 19
1,521,585
1,321,518,882
321,778,858
1,535,742,929
2,558,308
1,538,301,237
360,981,221
7,444,852
-
7,444,852
-
_145,427,979
-
245,427,979
11,855,347
252!872,831
-
252,872,831
11,855,347
1,788,615,760
2,558,308
1,791,174,068
372,836,568
(Continued)
IMM
COUNTY OF HAWAII
Statement of Net Position
June 30, 2017
12M=41 1
FITTMT�T, ��
Deferred inflows related to pensions (notes 13 and 14)
Primary Government
12,583,038
Governmental
Business -type
1,667,462
Component
1,667 462
Activities
Activities
Total
Unit
Liabilities
2,525,446
Total Liabilities and Deferred
Current liabilities:
Inflows of Resources
11354,158,506
1,011,493
Accounts payable and accrued liabilities
$ 24,540,365
$ 75,057
$ 24,615,422
S 3,638,562
Accrued payroll
10,021,844
-
10,021,844
1,352,376
Advance collections - intergovernmental
4,692,131
660
4,692,791
-
Interest due on long-term debt
5,603,828
11,127
5,614,955
690,864
Bonds and loans payable, current portion net
-
Debt service (note 10)
26,805,689
-
(notes 10 and 14)
88,273,136
94,434
88,367,570
3,964,472
Compensated absences, current portion (note 10)
9,813,735
-
9,813,735
555,054
Claims and judgments, current portion
-
Other
1,939,641
(notes 10, 12 and 14)
2,923,529
-
2,923,529
130,417
Capital leases, current portion (notes 8 and 10)
1,989,281
-
1,989,281
-
Landfill costs payable, current portion
LS248,898,221
See accompanying notes to the basic financial statements
(notes 9 and 10)
195,405
-
195,405
-
Customers' deposits
-
-
165,350
Other
10,831,898
10 831,898
-
Total current liabilities
158,885 52
,I
181278
,
159,06§ 30
_,4
_j 0,497095
Noncurrent liabilities:
Bonds and loans payable, net
(notes 10 and 14)
395,733,065
830,215
396,563,280
61,583,439
Compensated absences (note 10)
29,672,167
-
29,672,167
1,126,928
Claims and judgments (notes 10, 12 and 14)
11,512,164
11,512,164
452,583
Capital leases (notes 8 and 10)
4,576,299
4,576,299
-
Landfill costs payable (notes 9 and 10)
29,327,595
29,327,595
-
Unearned revenue, noncurrent
-
-
1,583,953
Customers' deposits
-
16,921,289
Net pension liability (notes 13 and 14)
619,275,868
619,275,868
29,247,607
Other (note 13)
90,925,696
-
90,925,696
-
Total noncurrent liabilities
1,181,022,854
—830,215
1,181,853,069
110,915,799
Total liabilities
1,339 908,006
1,011,493
1,340,919,499
121,412,894
FITTMT�T, ��
Deferred inflows related to pensions (notes 13 and 14)
12,583,038
12,583,038
2,442,214
Deferred inflows - other
1,667,462
1,667 462
83,232
Total Deferred Inflows of Resources
14,250,500
14,250,500
2,525,446
Total Liabilities and Deferred
Inflows of Resources
11354,158,506
1,011,493
1,355,169,999
123,938,340
Net Position
Net investment in capital assets
835,787,961
524,292
836,312,253
236,230,947
Restricted for:
Capital projects
18,928,452
-
18,928,452
-
Debt service (note 10)
26,805,689
-
26,805,689
-
Highways, streets and abandoned vehicles
8,079,232
-
8,079,232
-
Public access open space
14,686,566
14,686,566
-
Other
1,939,641
1,939,641
-
Unrestricted
_(411,770,287) _1,022,523
_27Q,747,764
12,667,281
Total net position
$ 434,457,254 1
1,546,815
$ 436,004,069
LS248,898,221
See accompanying notes to the basic financial statements
-29-
COUNTY OF HAWAII
Statement of Activities
For the Fiscal Year Ended June 30, 2017
General revenues:
Taxes:
Property taxes, levied for general purposes
Public service company taxes
Public utility franchise taxes
Fuel taxes
Grants and contributions not restricted to specific programs
Investment earnings
Other
Total general revenues
Change in net position
Net position, beginning of year, as previously stated
Cumulative effect of accounting change
Prior period adjustment
Net position, beginning of year, as restated
Net position, end of year
See accompanying notes to the basic financial statements,
ProRrarn Revenues
Operating
Capital
Charges for
Grants and
Grants and
FuncjjgHjTrAjMM
!"WCnses
Services
�ontrihutions
Contriutiojns
Primary government:
Governmental activities:
General government
S 72,836,020
$ 2,791,430
S 2,291,764
$ 7,331,999
Public safety
229,507,091
5,739,064
25,504,660
-
Hi hways
Highways and streets
51,368,841
16,712,641
1,143,412
5,879,014
Health, education and welfare
40,299,077
1,305,662
23,175,661
-
Culture and recreation
35,213,973
1,844,380
380,140
511,410
Sanitation
56,605,864
20,896,167
402,308
1,062,269
Interest on long-term debt
13,385,794
Total governmental activities
499,216,660
49,289,344
52,897,945
14,784,692
Business -type activities:
Health, education and welfare
573,854
469,082
132,435
-
Total primary government
$ 499,790,514
$ 49,758,426
� 53,030,380
S 14,784,692
Component unit:
Water (note 14)
$ 55,802,437
S 47,146,550
$
$ 9,310,212
General revenues:
Taxes:
Property taxes, levied for general purposes
Public service company taxes
Public utility franchise taxes
Fuel taxes
Grants and contributions not restricted to specific programs
Investment earnings
Other
Total general revenues
Change in net position
Net position, beginning of year, as previously stated
Cumulative effect of accounting change
Prior period adjustment
Net position, beginning of year, as restated
Net position, end of year
See accompanying notes to the basic financial statements,
Net (Expense) Revenue and Changes in Net Position
Primary Government
Governmental Business -type Component
Ac- w V ie _Activim* TQLat Unit
- --
$ (60,420,827) $
- $ (60,420,827) $
(198,263,367)
- (198,263,367) -
(27,633,774)
- (27,633,774) -
(15,817,754)
- (15,817,754) -
(32,478,043)
- (32,478,043) -
(34,245,120)
- (34,245,120) -
(13,385,79D ----
—(13—,385—,794)
(382,244,679) - (382,244,679)
27,663 27,663
_244,679) 27,66312�2217,016�
— _
654,325
268,869,322
-
268,869,322
8,423,340
-
8,423,340
7,950,750
-
7,950,750
8,288,676
8,288,676
19,810,090
-
19,810,090
-
661,184
1,243
662,427
428,771
__.LI�92,071
-
7,092,071
-
321.,095,433
1,243
321,096,676
428,771
(61,149,246)
28,906
(61,120,340)
1,083,096
510I032,175
1,517,909
511,550,084
247,783,630
(14,425,675)
-
(14,425,675)
(417,718)
449,220
.... 495606,500
1,517,909
497,124,409
247,815,132
434,457,254
$ 1,546,815
$436,004,069
248,898,228
Assets
Cash and cash equivalents (note 3)
Investments (note 3)
Receivables, net (note 4)
Due from other governmental funds (note 5)
Due from other nongovernmental funds (note 5)
Receivables from other governments (note 4)
Inventories
Real estate held for sale
Other
Total assets
Liabilities, Deferred Inflows and Fund Balances
Liabilities:
Accounts payable
Accrued payroll
Due to other governmental funds (note 5)
Advance collections -intergovernmental
Other
Total liabilities
Deferred Inflows of Resourccs:
Unavailable revenue (note 7)
Fund balances:
Non5pendable: Inventory
Restricted for:
Debt service (note 10)
Highways, streets and abandoned vehicles
Public access open space
Other
Committed to:
Budget stabilization
Disaster and emergencies
Lower Puna area
Rental assistance and subsidy
Sanitation
Self insurance
Highways, streets and abandoned vehicles
Parks and recreational projects
Zoning change impact mitigation (fair share)
Other
Assigned to:
Subsequent year's budget
Other
Total fund balances
Total liabilities, deferred inflows, and fund balances
See accompanying notes to the basic financial statements.
COUNTY OF HAWAII
Governmental Funds
Balance Sheet
June 30, 2017
Bond Other Total
Capital Redemption Governmental Governmental
General E12jects Fund Funds Funds
S 22,415,846 $ 23,085,974 $ 10,118,703 S 48,226,230 S 103,846,753
24,677,293
34,694,844
14,272,000
60,658
73,704,795
23,028,721
790,665
-
2,496,666
26,316,052
1,907,254
940,274
389,994
3,237,522
-
-
1,350
1,350
13,586,271
5,813,197
1,996,606
21,396,074
5,561,433
-
-
5,561,433
-
402,551
402,551
404,803
264,588
L.UMMAI
669,391
U121WIL
=J31.221
S 5,835,106
$ 14,446,264
S
4,258,995
S 24,540,365
8,746,199
-
1,275,645
10,021,844
541,460
478,843
2,217,219
3,237,522
901,294
3,540,569
250,268
4,692,131
3,114,421
348,004
185,000
319,708
3,967,133
19 1-38480
jLL1 3.680
— — — i 8 5 0_QQ21
8-35
46.458.995
24 69-6 M,
_-2-12-6-3E
27,222,567
5,561,433
-
5,561,433
-
24,205,703
2,599,986
26,805,689
20,209,784
8,079,232
28,289,016
14,686,566
-
-
14,686,566
425,488
13,789,028
1,514,153
15,728,669
6,231,235
-
-
6,231,235
5,777,352
5,777,352
4,087,297
4,087,297
1,219,449
1,219,449
16,474,899
16,474,899
1,311,907
-
-
1,311,907
1,192,820
-
8,721,604
9,914,424
2,312,652
-
88,426
2,401,078
-
3,795,198
-
-
3,795,198
693,503
1,202,272
-
205,378
2,101,153
11,668,006
-
-
-
11,668,006
1,391,468
4,009,520
-
5,400,988
COUNTY OF HAWAII
Reconciliation of the Governmental Funds .Balance Sheet to the Statement of Net Position
June 30, 2017
Total fund balances n governmental funds 161,454,359
Amounts reported for governmental activities in the statement of
net position are different because:
Capital assets used in governmental activities are not financial
resources and therefore are not reporled in the funds. These assets
consist of:
Land and improvements
239,187,891
Infrastructure assets, net
328,917,985
Buildings and improvements, net
597,987,986
Equipment, net
60,190,776
Easements, net
4,244,255
Construction work in progress
71,118,202
Total capital assets, net
(15,542,639)
Deferred amounts on refunding and pension deferred
are not reported in the governmental fund statements
r
from improvement district
(481,808,766)
Interest due on long-term debt
(5,603,828)
Capital leases
(6,565,580)
Compensated absences
(39,485,902)
Claims and judgments
(14,435,693)
Landfill costs payable
(29,523,000)
Pollution remediation
(15,542,639)
Other Postemployment Benefit Obligation (OPER)
(82,247,822)
Net pension obligation
(619,275,868
Total long-term liabilities
Deferred amounts related to pension are reported a
reportedare riot tal fund state
See accompanying notes to the basic financial statements.
99 M f.
NOWNIAM,
COUNTY OF HAWAII
Governmental Funds
Statement of Revenues, Expenditures, and Changes in Fund Balances
For the Fiscal Year Ended June 30, 2017
Expenditures
Current
General government
Public safety
Highways and streets
Health, education and welfare
Culture and recreation
Sanitation
Pension and retirement
contributions (note 13)
Employees' health insurance
Other postemployment benefits
Other
Debt service:
Principal
Interest
Capital outlay
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
39,678,100
1,141,202
Bond
Other
Total
136,162,496
2,779,964
Capital Redemption
Governmental
Governmental
22,853,246
General
__Erojects Fund
Funds
Funds
Revenues
37,586,518
38,671,469
38,440,865
5,277,117
Property taxes
$266,517,397
$ $
32,146,661
$266,517,397
Public service company taxes
8,423,340
2,424,887
1,414,468
8,423,340
Fuel taxes
-
22,031,791
8,288,676
8,288,676
Public utility franchise taxes
-
- -
7,950,750
7,950,750
Licenses and permits
8,607,841
14,323,738
22,931,579
Intergovernmental
53,304,066
4,137,353
21,778,885
79,220,304
Charges for services
4,016,376
- -
17,691,787
21,708,163
Investment earnings
682,414
(54,058) -
3,846
632,202
Other
2,562,990
5,112,451 -
4,115,316
11,790,757
Total revenues
344,114,424
9,195,746 -
74,152,998
427,463,168
Expenditures
Current
General government
Public safety
Highways and streets
Health, education and welfare
Culture and recreation
Sanitation
Pension and retirement
contributions (note 13)
Employees' health insurance
Other postemployment benefits
Other
Debt service:
Principal
Interest
Capital outlay
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
39,678,100
1,141,202
40,819,302
128,710,633
7,451,863
136,162,496
2,779,964
17,549,162
20,329,126
7,681,600
22,853,246
30,534,846
20,131,837
1,063,973
21,195,810
1,084,951
37,586,518
38,671,469
38,440,865
5,277,117
43,717,982
29,741,108
2,405,553
32,146,661
11,495,000
11,495,000
2,424,887
1,414,468
3,839,355
1,484,566
19,911,790 635,435
22,031,791
91,229
17,197,798
17,289,027
5,680,863 105,428,028
- -
111,108,891
289,425,603 105,428,028
19,911,790 114576,335
529,341,756
COUNTY OF HAWAII
Governmental Funds
Statement of Revenues, Expenditures, and Changes in Fund Balances
For the Fiscal Year Ended June 30, 2017
Other Financing Sources (Uses)
Sale of assets
State Revolving Fund loans (note 10)
Issuance of Bond Anticipation Notes
Transfers in (note 5)
Transfers out (note 5)
Total other financing sources (uses)
Net change in fund balances
Fund balances at beginning of year
Decrease in reserve for inventories
Fund balances at end of year
MMMMMI
Bond Other Total
Capital Redemption Governmental Governmental
General Projects Fund Funds _ Funds
$ 20,851 $ $ - 5 - S 20,851
2,309,039 - 1,460,364 3,769,403
- 8,129,534 - - 8,129,534
- 59,800,000 - - 59,800,000
- 3,997,524 23,730,661 39,135,706 66,863,891
_jg,911,06J6 - -952,82J5 630l)
_Lq
(60,5$1,176} 71,927,058 23,730,661 36,643,245 71,719,788
(5,892,355) (24,305,224) 3,818,871 (3,780,092) (30,158,800)
53,852,258 70,816,498 20,386,832 46,770,516 191,826,104
212,945) - - - 12,945)
_ _ _ (L__
$ 47,746,958 $ 46,511,274 S 24,205,703 $42,990,424 $161,454,359
TrIMMIUR M=
COUNTY OF HAWAII
to the Statement of Activities
For the Fiscal Year Ended June 30, 2017
Net change in fund balances - total governmental funds
Amounts reported for governmental activities in the statement of activities are
different because:
Capital outlays are reported as expenditures in governmental funds.
However, in the statement of activities, the cost of capital assets is
allocated over their estimated useful lives as depreciation expense. In
the current period, these amounts are:
Capital outlay 109,612,683
Dedicated and contributed property 4,239,151
Depreciation expense and loss on disposals (45,842,032
Excess of capital outlay over depreciation expense 68,009,802
Borrowings provide current financial resources to governmental funds;
however, issuing debt increases long-term liabilities in the statement
of net position. In the current period, assets financed through:
Bond anticipation notes (59,800,000)
State Revolving Fund loans (8,129,534)
Capital leases _�3,769,403)
Total debt proceeds (71,698,937)
funds, but the repayment reduces long-term liabilities in the statement of
net position. In the current year, these amounts consist of:
Bond principal retirement 17,979,082
State Revolving Fund loan repayments/forgiveness 2,967,508
Capital lease payments 2J20,001
Total long-term debt repayment 23,066,591
Because some revenues will not be collected for several months after the
County's fiscal year end, they are not considered "available" revenues and
are "deferred" in the governmental funds. Unearned revenues increased by
this amount this year, 2,467,004
situ "1 -1
WW
financial resources and therefore are not reported as expenditures in
governmental funds. These activities are:
OMOPU MT I I
(net of intergovernmental transfer to reduce liability)
Increase in compensated absences
Increase in claims and judgments
Increase in landfill closure/postclosure care costs
Decrease in pollution remediation costs
Amortization of premium from bond issuance
Amortization of deferred loss on refunding
Net decrease in accrued interest
II
MMZx,�
MEW,
(5,237,965)
(1,578,097)
(576,197)
(6,890,000)
871,471
4,331,131
(762,997)
436,884
__(43,216,191)
COUNTY OF HAWAII
General Fund
Statement of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended June 30, 2017
MIMME
Actual
Variance
Original
Final
(Budgetary
Positive
_BudtSL_
Pudget_Bsis�e
_ S�L �tivc
Revenues:
Taxes and assessments:
Property taxes
$ 266,500,000
$ 266,500,000
$ 266,517,397
$ 17,397
Public service company taxes
10,340,000
10,340,000
8,423,340
916,660
Total taxes and assessments
276,840,000
276,840,000
74,94(,7L7899,26J3
Licenses and permits:
Nonbusiness licenses and permits
3,835,624
3,835,624
3,630,757
(204,867)
Business licenses
2,133,433
2,133,433
1,934,489
(198,944)
Street use
2,905,000
2,905,000
3,042,595
137,595
Total licenses and permits
8,874,057
8,874,057
8,607,841
(266,216)
Intergovernmental:
Federal:
Programs for the aged
2,280,336
2,280,336
1,383,990
(896,346)
Community development block grants
-
2,500,000
2,500,000
Law enforcement
3,378,117
3,809,914
1,714,111
(2,095,803)
Other
3,031,636
4,628,129
4,683,475
55,346
Total federal
8,690,089
13,218,379
10,281,576
936,803
State:
State General Fund - Act 185,
SLH 1990
19,158,000
19,158,000
19,158,000
-
Emergency medical services
14,358,592
15,667,628
16,536,274
868,646
Other
6,779,412
8,361,575
5,249,197j
12,37J8
Total State
40,296,004
43,187,203
40,943,471
__(Z,243,73J2
Total intergovernmental revenue
48,986,093
56,405,582
_51,225 047
180,535
Charges for services:
General government
5,553,907
5,553,907
4,153,855
(1,400,052)
Culture and recreation
1,451,400
1,491,400
1,258,808
(232,592)
Flighways and streets
1,264,000
1,264,000
1,210,281
(53,719)
Public safety
111,368
111,368
116,115
4,747
Total charges for services
8,380,675
8,420,675
6,739,059
L!168l,61J6
Fines and forfeitures
2,069,500
2,069,500
1,21L,045
__(858,455}
Rents
207,500
207,500
208,652
1,152
MIMME
COUNTY OF HAWAII
General Fund
Statement of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended June 30, 2017
ME=
N&A,
Actual
Variance
Original
Final
(Budgetary
Positive
Bud et
.. Budget
Basis)
(Ne ative)
Revenues (continued):
Interest and penalties
S 800,000
S 800,000
S 654,579
(145,421
Miscellaneous
5
, 174,43 3
5,274,433
5,016,183
Total revenues
351,332,258
358,891,747
348 603,1438,60J4
Expenditures:
Current:
General government:
Finance
12,359,293
12,359,293
10,454,350
1,904,943
General government building
5,334,997
5,281,550
4,693,345
588,205
Legislative
4,261,915
3,452,215
3,206,920
245,295
Automotive equipment
4,720,717
4,720,717
3,912,183
808,534
Law
2,729,370
2,729,370
2,410,627
318,743
Research and development
3,565,557
3,766,758
3,106,152
660,606
Planning and zoning
3,923,315
3,923,315
3,620,608
302,707
Mayor's office
1,581,838
1,741,838
1,674,214
67,624
Engineering
1,673,406
1,673,406
1,335,557
337,849
Information technology
2,590,390
2,590,390
2,484,190
106,200
Human resources
2,006,658
2,006,658
1,741,145
265,513
Public works administration
1,737,538
1,790,485
1,693,319
97,166
Elections
1,058,525
1,058,525
881,796
176,729
Legislative auditor
757,084
757,084
578,907
178,177
Total general government
48,300,603
47,851,604
41,793,313
6,058,291
Public safety:
Police department
65,098,683
65,314,785
60,278,989
5,035,796
Fire department
47,215,247
50,149,225
48,363,288
1,785,937
Prosecuting attorney
9,213,045
9,891,075
8,168,304
1,722,771
Protective inspection
3,429,595
3,454,595
2,985,601
468,994
Liquor control
2,123,128
2,286,645
2,068,447
218,198
Flood control
330,000
330,000
245,260
84,740
Civil defense agency
1,417,473
1,617,473
1,419,315
198,158
Animal control
2,081,625
2,081,625
2,081,625
--
Total public safety
130,908,796
135,125,423
125,610,829
9,514,594
Highways and streets:
Mass transit
5,510,898
5,519,398
4,352,382
1,167,016
ME=
N&A,
COUNTY OF HAWAII
General Fund
Statement of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended June 30, 2017
2=
sm
Actual
Variance
Original
Final
(Budgetary
Positive
Budget_
Budget_
Basis)
_(Negative)
Expenditures (continued):
Current (continued):
Health, education and welfare:
Elderly activities
$ 3,848,900
S 3,889,118
$ 3,222,318
S 666,800
Office of aging
2,900,343
3,909,603
3,009,860
899,743
Education
58,500
58,500
30,276
28,224
Social programs
1,500,000
1,500,000
1,468,750
31,250
Cemeteries
403,322
403,322
373,241
30,081
Physical examination
133,826
133,826
133,825
1
Total health, education and welfare
8,844,891
9,894,369
8,238,270
1,656,099
Culture and recreation:
Community music
283,210
283,210
198,157
85,053
Organized recreation:
Maintenance
9,928,290
10,058,372
9,589,792
468,580
Recreation
3,013,150
3,045,216
2,722,601
322,615
Aquatics
2,496,791
2,496,791
2,161,183
335,608
Hoolulu park complex
1,035,811
1,030,811
978,248
52,563
Administration
2,030,972
2,231,051
2,068,885
162,166
Children's zoo
787,084
787,084
741,316
45,768
Summer/Intersession
508,098
514,099
363,378
150,721
Culture and arts
315,277
332,104
306,241
25,863
Elderly activities administration
626,254
698,832
646,304
52,528
Total culture and recreation
21,024,937
21,477,570
19,776,105
1,701,465
Sanitation:
Environmental management
1,179,769
1,179,769
1,051,099
128,670
Pension and retirement contributions
41,281,132
41,281,132
37,505,237
3,775,895
Employees' health insurance
31,000,000
31,000,000
29,717,016
1,282,984
Other postemployment benefits
11,495,000
11,495,000
11,495,000
-
Other
4,603,500
4,238,550
2,631,967
1,606,583
Total current
304,149,526
309,062,815
282,171,218
26,891,597
2=
sm
COUNTY OF HAWAII
General Fund
2,750,000
Statement of Revenues, Expenditures, and Changes in Fund Balance -
$ 125,211
Budget and Actual (Budgetary Basis)
100,000
For the Fiscal Year Ended June 30, 2017
100,000
(Concluded)
Actual
Variance
Original Final (Budgetary
Positive
Bud et . --12AEet Basis)
(Negative)
Expenditures (continued):
Capital Outlay:
Community Development Block
grants (HUD)
HOME Program
Other
Total capital outlay
Total expenditures
Excess of revenues over expenditures
Other financing sources (uses):
Transfers out:
Housing Fund
Solid Waste Fund
Sewer Fund
Golf Course Fund
Capital Project Fund
Highway Fund
Disaster/Emergency Fund
Public Access, Open Space, and Natural
Resources Preservation Fund
Public Access, Open Space, and Natural
Resources Preservation Maintenance Fund
Budget Stabilization Fund
Debt Service Fund
Total transfers out
Total other financing uses
Excess (deficiency) of revenues and other
sources over (under) expenditures and other uses
Fund balance at beginning of year
Fund balance at end of year
See accompanying notes to the basic financial statements.
S 150,000
2,750,000
S 2,624,789
$ 125,211
100,000
100,000
-
100,000
j45,560
45,568
250,000
2,850,000
2,579,221
270,779,
304,399,526
311,912,815
284,750,439
27,162,376
46,932,732
46,978,932
63,852,704
16,873,772
(1,810,896)
(1,822,396)
(1,572,396)
250,000
(18,679,575)
(18,679,575)
(18,679,575)
-
(2,120,785)
(2,120,785)
(2,120,785)
-
(477,519)
(477,519)
(477,519)
-
(44,700)
(44,700)
-
(10,000)
(10,000)
-
(250,000)
(250,000)
(250,000)
-
(5,330,000)
(5,406,000)
(5,330,348)
75,652
(666,250) (675,750) (666,293) 9,457
(250,000) (250,000) (250,000) -
(43,858,131 (A1858,13Jl (43,85$,13 1) -
(73,443,156) (73,594,856 259,74J7 335,109
_C71,443,156 594,856 (73,259,747) 335,109
(26,510,424) (26,615,924) (9,407,043) 17,208,881
53,852,258 53,852,258 53,852,258 -
$ 27,341,834 S 27,236,334 $ 44,445,215 $ 17,208,881
COUNTY OF HAWAII
Proprietary Funds
Statement of Net Position
June 30, 2017
Assets
Cur -rent assets:
Cash and cash equivalents (note 3)
Restricted cash and cash equivalents (note 3)
Investments (note 3)
Imprest fund (note 3)
Receivables, net (note 4)
Prepaid expenses
Total current assets
Noncurrent assets:
Restricted cash and cash equivalents (note 3)
Capital assets (note 6):
Land and site improvements
Buildings and equipment
Less accumulated depreciation
Total capital assets
Total noncurrent assets
Total assets
Liabilities
Current liabilities:
Accounts payable
Internal Balances (note 5)
Security deposits payable from restricted assets
Deferred revenue
Interest payable
Notes payable, current portion (note 10)
Total current liabilities
Noncurrent liabilities:
Notes payable (note 10)
Total liabilities
Net Position
Net investment in capital assets
Unrestricted
UMMMMM=
See accornpanying notes to the basic financial statements.
Business -type Activities®
29,487
,e Fund,-
Ente!!!!! rise Funds
Kulaimano
Ouli Ekahi
Elderly
Affordable
Housing
Housing
Enect
Project Total
S 391,881 $ 398,880 $ 790,761
11,863
29,487
41,350
199,994
-
199,994
50
100
ISO
127
3,900
4,027
1,791
-
1,791
605,706
432,367
1,038,073
72,644 72,644
511,000
515,727
1,026,727
1,243,908
487,229
1,731,137
_L1,232, L 18J
�6,005
308923
__._j
LL
121,990
926,951
1,448,941
521,990
999,595
1,521,585
1,127,696
1,431,962
2,559,658
5,424
29,720
35,144
1,350
-
1,350
11,863
28,050
39,913
401
259
660
11,127
-
11,127
59,251
35,183
94,434
89,416
93,212
182,628
592,496
237,719
830,215
6 81 �91 2
330,931
1,012,843
(129,757)
654,049
524,292
575,541
446,982
1,022,523
S 445,784
1,101,031
$ 1,546,815
COUNTY OF HAWAII
Proprietary Funds
Statement of Revenues, Expenses, and Changes in Fund Net Position
For the Fiscal Year Ended June 30, 2017
Operating revenues:
Rental receipts from tenants
Rental subsidy from federal government - HUD
Laundry receipts
Other
Total operating revenues
Operating expenses:
LIfifities
General and administration
Maintenance and repairs
Depreciation (note 6)
Total operating expenses
Operating income
Nonoperating revenues (expenses):
Investment income
Interest expense
Total nonoperating revenues (expenses)
Change in net position
Net position, beginning of year
Net position, end of year
See accompanying notes to the basic financial statements,
Business -type Activities -
Enterprise Funds
Kulaimano Ouli Ekahi
Elderly Affordable
Housing 11ousing
Project E!qject Total
S 121,995 $ 333,540 $ 455,535
132,435
132,435
3,284
-
3,284
- 574
9,689
10,263
258,288
343,229
601,517
34,570
54,779
89,349
126,713
109,403
236,116
53,505
106,754
160,259
35,687
17,228
52,915
250,475
288,164
538,639
7,813
55,065
62,878
1,225
18
1,243
35,215
-(35,2'15
_1.33,99J0
18
SI3,972
(26,177)
55,083
28,906
471,961
1,045,948
1,517,909
S 445,784 S
1,101,031
$ 1,546,815
COUNTY OF HAWAII
Proprietary Funds
Statement of Cash Flows
For the Fiscal Year Ended June 30, 2017
See accompanying notes to the basic financial statements
Business -type Activities -
Enterprise Funds
Kulaimano
Ouli Ekahi
Elderly
Affordable
Housing
Housing
EIRLect
EE9ject
Total
Cash Flows from Operating Activities
Receipts from tenants
$ 125,904
$ 344,244
$ 470,148
Receipts from federal government - HUD
132,435
132,435
Payments to suppliers for goods and services
(213,544)
243,023)
6 (±L,567
... j
Net cash provided by operating activities
44,795
101,221
146,016
Cash Flows from Capital and Related Financing Activities
Principal paid on notes payable
(56,061)
(33,304)
(89,365)
Interest paid on notes payable
(36,279)
(36,279)
Purchase of capital assets
(5,960)
L84J3
±6,803)
Net cash used in capital and related Financing activities
(98,300
(L4,l4J7
(132,447)
Cash Flows from Investing Activities
Proceeds from maturities of investments
200,000
200,000
Purchase of investments
(200,000)
(200,000)
Interest on investments
1.267
18
1,285
Net cash provided by investing activities
1,267
18
-1,285
Net increase (decrease) in cash and cash equivalents
(52,238)
67,092
14,854
Cash and cash equivalents at beginning of year (including
restricted cash and cash equivalents)
456,032
434,019
890,051
Cash and cash equivalents at end of year (including
restricted cash and cash equivalents)
$ 403,794
$ 501,111
$ 904,905
Reconciliation of Operating Income to Net Cash
Provided by Operating Activities
Operating income
$ 7,813
$ 55,065
$ 62,878
Adjustments to reconcile operating income to net cash
provided by operating activities:
Depreciation expense
35,687
17,228
52,915
Change in assets and liabilities:
Receivables, net
(116)
(959)
(1,075)
Prepaid expenses
(77)
(77)
Accounts and other payables
1,241
30,570
31,811
Deferred revenue
247
(68J3
4 _L3
Net cash provided by operating activities
$1 44,795
$ .. 101,221
$ 146,016
Supplemental disclosure of cash flow information - Interest paid
$ 36,279
$
$ 36,279
Noncash investing, capital and financing activities:
Net decrease in fair value of investments
(6)
$
(6)
See accompanying notes to the basic financial statements
COUNTY OF HAWAII
MHMM��
Statement of Fiduciary Net Position
June 30, 2017
Liabilities
Due to other agency funds 3,623
Accrued liabilities 3,199,643
Advances payable 381,679
Assets held for the benefit of improvement districts 1,132,906
Total liabilities 4,717,851
Net Position
Held in trust for other parties 4,778,336
Total net position 4,778,336
See accompanying notes to the basic financial statements
Private -
Purpose
Agency
Trusts
Funds
Assets
Cash and cash equivalents (note 3)
$ 1,688,045
$ 3,843,924
Investments (note 3)
3,090,291
420,930
Receivables:
Due from other agency funds
-
3,623
Other receivables
449,374
Total receivables
-
452.997
Total assets
4,778,336
4,717,851
Liabilities
Due to other agency funds 3,623
Accrued liabilities 3,199,643
Advances payable 381,679
Assets held for the benefit of improvement districts 1,132,906
Total liabilities 4,717,851
Net Position
Held in trust for other parties 4,778,336
Total net position 4,778,336
See accompanying notes to the basic financial statements
COUNTY OF HAWAII
Fiduciary Funds
Statement of Changes in Fiduciary Net Position
For the Fiscal Year Ended June 30, 2017
See accompanying notes to the basic financial statements
Private -
Purpose
Trusts
Additions
Contributions:
Puna Geothermal Venture
$ 50,000
Investment earnings:
Net increase in fair value of investments
59,624
Dividends and interest
53,869
Total additions
163,493
Deductions
Claims Consultant
1,526
Grant payments
125,794
Investment Fees
13,144
Total deductions
140,464
Change in net position
23,029
Net position, beginning of year
4,755,307
Net position, end of year
$ 4,778,336
See accompanying notes to the basic financial statements
accounting principles (GAAP) as applicable to local governmental units. The following notes to
Fk-nV_Q&
Report (CAFR).
VAL, arg IF
'Morgatsmillml
Prinzary Goveninjent The County operates under the Mayor -Council form of government
under a charter that became effective on January 2, 1969, and was amended in 1979, 1982,
1990 and 2000. The County's operations are organized by the following functions: general
government; public safety; highways and streets; sanitation; health, education and welfare;
culture and recreation; pension and retirement contributions; health fund; miscellaneous;
capital outlay; and debt service. The State of Hawai'i (the State) assumes full responsibility
for several major functions usually performed by local governments, including education,
welfare, health and judicial functions. There are no separate city, county or township
governments nor any school districts, special districts, authorities or public corporations with
overlapping authority,
GASB Statement No. 14, as arnended, defines component units as legally separate
organizations for which the elected officials of the primary government are financially
accountable or for which the primary government may determine, through exercise of
amfagruma'sr J# nrlo-e
r -d at, un(V t
the financial accountability criteria is necessary in order to prevent the reporting entity's
financial statements from being misleading. "Financial accountability" is the level of
accountability that exists if a primary government appoints a voting majority of an
organization's governing board or if the organization is fiscally dependent on the primary
government and is either able to impose its will on that organization or there is a potential for
on, the primary government. A primary government has the ability to impose its will on an
organization if it can significantly influence the programs, projects, activities or level of
services performed or provided by the organization. An organization has a financial benefit or
HIM MM1110111011
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As required by GAAP as set forth in GASB Statement No. 14, No. 3 9 and No. 6 1, these basic
financial statements present the County of Hawai'i (tile primary government) and its
component unit, the Department of Water Supply (tile Department). This component unit is
included in the County's rei)ortinLy entitv because of its financial relationshit) with the Countv,
by the County Council. The Department is granted corporate powers by state statute and the
County Charter. Although the County does not have the authority to approve or modify the
Department's operational and capital budgets, the County has issued bonds on the
Department's behalf that are general obligations of the County. Because tile County is
obligated to repay these bonds in the event of default by the Department, the County is
financially accountable for the debts of the Department. See Note 14 for component unit
disclosures for the Department. Complete financial statements of the Department can be
obtained from the Department of Water Supply, 345 Kekfiana6'a Street, Suite 20, Hilo,
Hawai'i 96720.
10.0fa-stTirl".
The government -wide statement of activities reflects both the gross and net costs per
functional category (general government, public safety, highways and streets, etc.) which are
otherwise being supported by general government revenues (property taxes, certain
intergovernmental revenues, etc.). The statement of activities reduces gross expenses
(including depreciation) by related program revenues, operating and capital grants. The
program revenues must be directly associated with the function (general government, public
safety, highways and streets, etc.) or a business -type activity. The operating grants include
column reflects capital -specific grants. The net cost (by function or business -type activity) is
normally covered by general revenues.
KR M 62:�:41 �
The governmental funds in the fund financial statements are presented using the current
financial resource focus and modified accrual basis of accounting. This is the manner in
which these funds are normally budgeted. This presentation is deemed most appropriate to (a)
demonstrate legal and covenant compliance, (b) demonstrate the source and use of liquid
resources, and (c) demonstrate how tile County's actual experience conforms to the budget
fiscal plan. Since the governmental fund statements are presented using a different
measurement focus and basis of accounting than the government -wide statements'
governmental activities column, a reconciliation is presented on tile page following each
statement, which briefly explains the adjustments necessary to transform the fund based
financial statements into the governmental activities column of the government -wide
presentation.
The County's fiduciary filrids are presented in the fund financial statements by type (private
purpose and agency). Since by definition these assets are being held for the benefit of a third
party (private parties, state government, etc.) and cannot be used to address activities or
obligations of the government, these funds are not incorporated into the government -wide
state.ttetts,
Goveritniew-ivide andfundfinancial statements — The government -wide financial
statements (i.e., the statement of net position and tile statement of activities) report
information on all of the nonfiduciary activities of the primary government and its component
unit. The effect of interfund activity has been removed from these statements during tile
process of incorporating fund data but interfund services provided and used have not been
eliminated in the process of consolidation. Governmental activities, which non-nally are
supported by taxes and intergovernmental revenues, are reported separately from business -
type activities, which rely to a significant extent on fees and charges for support. Likewise,
the primary government is reported separately from certain legally separate component units
for which the primary government is financially accountable.
The statement of activities demonstrates the degree to which the direct expenses of a given
function or segment are offset by program revenues. Direct expenses are those that are clearly
identifiable with a specific function or segment. Program revenues include (a) charges to
customers or applicants who purchase, use, or directly benefit from goods, services, or
privileges provided by a given function or segment and (b) grants and contributions that are
restricted to meeting the operational or capital requirements of a particular function or
segment. Taxes and other items not included among program revenues are reported instead as
general revenues,
MORWO 1000 0111140109 ERION61"M it
11000
I a- - �__ 0 r" 9 .11 1
reported as separate columns in the fund financial statements.
Activities infunds - The financial transactions of the County are recorded in individual funds.
Each fund is accounted for by providing a separate set of self -balancing accounts that
comprises its assets, deferred outflows of resources, liabilities, deferred inflows of resources,
reserves, fund equity, revenues and expenditures/expenses. The various funds are reported by
generic classification within the financial statements,
GASB Statement No. 34, Basic Financial Statements - and Management's Discussion and
Analysis -Jbi- State and Local Govei-nnients, sets forth minimum criteria (percentage of the
assets, deferred outflows of resources, liabties, deferred inflows of resources, revenues or
expenditures/expenses of either fund category or the governmental and enterprise combined)
for the determination of major funds. The nonmajor funds are combined in a column in the
fund financial statements and detailed in the combining section.
General Fund - The general fund is tile general operating fund of the County. It is uN&4
to account for all activities of the general government, except those required to be
accounted for in other funds.
and general and special revenue fund revenues. The capital projects fund is used to
account for financial resources to be used for the acquisition or construction of major
general government capital facilities and infrastructure (other than those financed by
proprietary funds and trust funds) when separate project centers are needed to control
costs.
Bond Redeniption Fund -Used to accumulate moneys for the payment of general
obligation bonds. Moneys required to retire the bonds are transferred from the General
Fund one year in advance of maturity,
11111 ii J 111 11
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housing project for low-income senior citizens located north of Hilo.
I I g I I I &OJ r44 4 a Inw. I r! 14 a I a I L
Private -Purpose Trust Funds — Used to account for funds received from geothermal
developers to mitigate the effects of geothen-nal energy development. Also used to
account for investment income on funds received from im ort businesses at t e nort 01
• State Weight Tax Fund
• Improvement District No. 18 Fund
• Improvement District No. 19 Fund
• Improvement District Revolving Fund
• Performance and Refundable Deposits Fund
• Payroll Clearance Fund
• Flexible Spending Account
• Lapsed Warrants Fund
• Non -Profit License Plates Fund
• Organ and Tissue Education Fund
• Business Improvement District I -Kailua
, regdj'IEJC�� IPLI
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fund financial statements are presented on an accrual basis of accounting. The governmental
funds in the fund financial statements are presented on a modified accrual basis.
related obligation is incurred.
Mod�fled Accrual Basis - Revenues are recorded when susceptible to accrual (that is, both
measurable and available), "Measurable" means the amounts are deter -minable. "Available"
means the amounts are collectible within the current period or soon enough thereafter (one
year for intergovernmental revenues) to be used to pay liabilities of the current period.
In applying the susceptible to accrual concept to intergovernmental revenues, the legal and
contractual requirements of the numerous individual programs are used as guidance. There
are essentially two types of these revenues. In one, monies must be expended on the specific
purpose or project before any amounts will be paid to the County; therefore, revenues are
recognized based upon the expenditures recorded. Most construction grants and many
*perating grants fall into this category, In the other, monies are virtually unrestricted as to
L *urpose of expenditure and are usually revocable only for failure to comply with prescribed
compliance requirements. These resources are reflected as revenues at the time of receipt or
earlier if the susceptible to accrual criteria are met.
The County reports deferred inflow of resources in its fund financial statements (see Note 7).
Deferred inflows of resources arise when potential revenue does not meet both the
"measurable" and "available" criteria for recognition in the current period. In subsequent
periods when both revenuere_c�ition criteria are met, the deferred inflow is removed from
the fund financial statements and revenue is recognized.
Expenditures are recognized under the modified accrual basis of accounting in the accounting
period in which the fund liability is incurred. Exceptions to this general rule include:
(a) accumulated compensated absences and claims and judgments which are recognized as
expenditures when paid; (b) liabilities related to municipal solid waste landfill closure and
postclosure care costs; (c) principal and interest on general long-term debt which are
recognized as expenditures when due; and (d) liabilities relating to pollution remediation .
The County applies all applicable GASB pronouncements, including the adoption of GASB
State e t o. 62, Codi cation ofAccounh I n and Financial R t' G 'd
i Zua��=nce �Contaii�ied
MUM "R Wf
Encumbrances
I Ir"M111111 - a 1 11 W, 11 1 1 -
balance and provide authority for the carryover of appropriations to the subsequent year in
order to complete these transactions. Encumbrances outstanding at year-end are included in
the respective fund balance categories as appropriate and do not constitute expenditures or
liabilities because the commitments will be honored during the subsequent year.
COUNTY OF HAWAI'l
Notes to the Basic Financial Statemeni
June 30, 2017
Cash and Investments
Cash and cash equivalents include cash on hand, amounts in demand deposits and savings
accounts, and short-term investments with a maturity date of three months or less from the
date acquired by the County.
Roth categories of investments are stated at fair value (see Note 3). Valuations of investments,
in government sponsored enterprises such as Federal National Mortgage Association (Fannie
Mae) and Federal Home Loan Mortgage Corporation (Freddie Mae) are based on quoted
market rates. Valuations of certificates of deposits are based on cost, which approximate fair
value, as they almost invariably are held to maturity. Investments also consist of equity
securities in the fiduciary fund financial statements. These investments are stated at fair value
based on closing quoted prices.
interest at I o per month and penalties of up to 10% of the amount due. Assessments are
based on 100% of estimated fair market values prior to the application of exemptions or
preferential assessments,
The County provides real property tax abatement under five programs — Enterprise Zone,
Historic Residential Dedication, Low and Moderate Income Housing, Agricultural Use
Programs, and Solar Water Heater Credit:
Enterprise Zone Exemption - Section 19-89.3 of the Hawai'i County Code provides buildings
or other like structures which are built as a result of new construction by a qualified business
within an enterprise zone to be exempt except for the minimum tax from real property taxes
for a period of three years. The purpose of this program is to stimulate business and industrial
of the Hawai'i County Code and section 208E, Hawaii Revised Statutes.
Historic Residential Dedication Exemption —Section 19-89.1 of the Hawai'i County Code
and Rule 36 of the Rules and Re I tions ofthe Director of Finance Drovides an exeMDtion to
=2
Notes to the Basic Financial Statements
owner certifies the current level of taxation is a material factor which threatens the continued
existence of the historic status. This dedication is for a minimum period of ten years,
automatically renewable indefinitely, Cancellation of the dedication by either the owner or
the Director of Finance may only be rnade upon five years' written advance notice and no
earlier than the end of the fifth tax year, Any person who becomes an owner of die dedicated
real property shall be subject to the restrictions and retroactive tax assessment provisions. If
the dedication is approved, tile exemption based upon the dedication shall be effective July I
of the tax year following the approval of the dedication, The dedicated exempt property or
subject to roll back taxes, including penalty and interest.
Lo;v and Moderate -Income Housing Evemption — Section 19-87 of the Hawai'i County Code
and Rule 37 of the Rules and Regulations of the Director of Finance provides an exemption
for a housing project which is owned and operated by a nonprofit or limited distribution
mortgagor or by a qualified entity from taxation. Must participate in long-term housing
project that have regulatory agreements mandating rent levels, occupancy of the project is
limited to the elderl handica . ed, low or moderate income families, Applicants must submit
an application form along with a copy of the recorded regulatory agreement. The exemption
is equal to 100% of the assessed value for the portion of the real property that is dedicated as
low- and moderate -income rentals, If the entire property is dedicated, then the net taxable is
zero but the property is still subject to the minimum tax per Section 19-90(e) of the Hawai'i
County Code. The exemption shall continue so long as the rental housing project is owned
and operated by a nonprofit or limited mortgagor, If the rental units do not comply with the
regulatory conditions, the property would be subject to roll back taxes, including penalty and
interest.
Non Dedicated Agricultural Use Assessment — Section 19-57 of the Hawai'i County Code
and Rule 34 of the Rules and Regulations of the Director of Finance reduces assessments to
encourage local agricultural production as well as the preservation of agricultural lands that
could otherwise be further developed, by valuing these lands at the at two times tile dedicate
agricultural use value as opposed to the market value, Unlike the Dedicated Agricultural Use
program, the zoning for this program must be agricultural. An application form must be filed
aw
property, Upon review and approval, the application is effective as of January I for the
following tax year, Renewal of the application shall be in such form and at such time as
requested by the director. Valuation consideration is given to the type of agricultural activity.
Any breach to the terms of would result in an immediate rollback calculation of current plus
two yeas taxes plus penalties and interest.
WE
MMUM=1
bridges, curbs and gutters, streets and sidewalks, drainage systems, lighting systems, and
similar items, are rev e__ -t, I n�
orted in the a%licabl governmental or business Re activities cc urn
in the government -wide financial statements. Capital assets are defined by the County as
assets with an initial, individual cost of more than $1,000 and an estimated useful life in
excess of one year. Such assets are recorded at historical cost or estimated historical cost if
purchased or constructed, Donated capital assets are recorded at acquisition value if available
or if not, at estimated fair market value at the date of donation.
materially extend the life of the asset are not capitalized.
included as part of the capitalized value of the assets constructed,
Capital assets of the primary government and enterprise fund are depreciated using the
straight-line method over the following estimated useful lives of the assets:
Assets Years
Infrastructure 20 to 100 years
Buildings and improvements 50 to 100 years
Ground and site improvements 20 to 50 years
Equipment 5 to 40 years
Easements Dependent on terms of easement agreement
Va"M
.07METOM—MMUTT's ITY FUSTIFUces represeni "itilsirrip 111TI + . I I , C
period and will not be recognized as an outflow of resources (expense or expenditure) until
that time. The County has two items that qualifies for reporting in this category, The County
reports the deferred loss on refunding and deferred outflow related to pensions as a deferred
outflow of resources in its statement of net position.
iaxes, fees and other non-exchange -transac,ti..ons received in the current fiscal year for the
ensuing, fiscal e nows of resources. These amounts are deferred
FOUNMINVIRTWOMY",
M
The County reports long-term debt of governmental funds at face value on the government -
wide statement of net position. Certain other governmental fund obligations not expected to
be financed with current available resources are also reported on the government -wide
statement of net position, Long-term debt and other obligations financed by the proprietary
funX s are reported as liabilities in those funds.
Compensated Absences
Employees earn vacation credit at the rate of one and three-quarter working days for each
month of service. Up to ninety days of vacation leave credits can be accumulated per
employee. In addition, employees who work overtime can elect to take compensatory time o
instead of overtime pay, The time off is earned at the rate of one -and -a -half hours for each
hour of overtime worked. There is no statutory limit to the amount of compensatory time o
an employee can accumulate. Both compensatory time off and vacation credits are converte
to pay upon termination of employment.
A liability for these amounts is reported in the governmental funds only if they have matured
for example, as a result of employee resignations and retirements. All vacation and
compensatory time off pay is accrued in the government -wide statement of net position alon
with the estimated liability for social security and Medicare taxes and employers' retirement
contributions on those amounts.
Sick leave accumulates without limit. Sick leave can be taken only in the event of illness and
is not convertible to pay upon termination of employment; therefore there is no related
liability. However, a County employee who retires or leaves government service in good
standing with 60 days or more of unused sick leave is entitled to additional service credit in
the Employees' Retirement System of the State of Hawaii. Accumulated sick leave at
June 30, 2017 totaled $77,165,000 for the primary government.
Leases transferring substantially all of the risks and benefits of ownership are recorded as
capital leases; other leases are operating leases (see Note 8). Capital leases are recorded as
I Uri ri "11
additions to and deductions from ERS's fiduciary net position have been determined on the
same basis as they are reported by ERS. For this purpose, benefit payments (including
&--�M43 w4m= 1-4m 2ad
the benefit terms. Investments are reported at fair value.
Revenues and expenses are distinguished between operating and nonoperating items for the
proprietary funds. Operating revenues generally result from providing services in connection
with the proprietary funds' principal ongoing operations. The principal operating revenues of
the proprietary funds are fees charged to residents for rent and rental subsidies received from
the federal government.
Operating expenses include the costs associated with providing housing for tenants, such as
utilities, le?se reyt, aid- imiitex9ace ?jid re?airs; ai-Laihuistrative ey.7,esses; a -M deprecia"-f, o%
capital assets. All revenues and expenses not meeting these definitions are reported as
nonoperating revenues and expenses.
M MM 8-0MIM=
The preparation of the basic financial statements in conformity with GAAP requires
management to make estimates and assumptions that affect the reported amounts of assets,
deferred outflows of resources, liabilities, and deferred inflows of resources, as well as
disclosure of contingent assets and liabilities at the date of the financial statements, and the
the
reporting period. Actual results could differ from those estimates.
When both restricted and unrestricted fund balances are available for use, it is the County's
�,olicy to use restricted fund balance first, then unrestricted fund balance. Furthermore,
committed fund balances are reduced first, followed by assigned amounts, and then
, _g j jbij ey.g 1 r r *urn,#.Re.-; ficr w�iclf awowtts iv avv of
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must be kept intact. The County has inventory included in their nonspendable fund
balance.
Restricted Fund Balance — Constraints placed on the use of these resources are either
I osed bv creditors (sucV as t.tiouah debt cou-waqfts grantors. contri�=
I".
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or other governments or are imposed by law (under the Hawai'i Revised Statutes or
County of Hawai'i Charter).
for specific purposes as a result of constraints imposed by the County Council via
ordinances and the County Code and can only be undone via the same manner. The
committed fund balance of the General Fund includes the portion of fund balance
committed to budget stabilization. The budget stabilization portion is authorized under
County Code §2-219 to §2-223 and additions are made via the County budget or
subsequent budget amendments. The fund balance may only be used when there is a
reduction in budgeted revenue and the director of finance determines that such use is
necessary to prevent a reduction in the level of public services.
Assi ed Fund Balance —Assigned fund balances are amounts that are c lie
MA
ltnassigned Fund Balance — This is the residual classification of the General Fund. The
General Fund is the only fund that could potentially report a positive unassigned fund
balance.
11M) I IMMOM 11,12,03,119 1101101MIA viel-111141 I a if &I ML, I I un I wo no I I I r.!&14 d I
New Accounting Pronouncements
In June 2015, GASB issued Statement No. 73,Accounting and Financial Reportingfor
Pensions and Related Assets That Are Not within the Scope of GASB Statement 68, and
Amendments to Certain Provisions of GASB Statements 67 and 68. The objectives of this
Statement include imv,,rovin , the usefulness of information for decisions made b1i the variom
users of the general purpose external financial reports of governments whose employees —
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In June 2015, GASB issued Statement No. 74, Financial Refrtingfor Postemployment
Benefit Plans Other Than Pension Plans. The objective of this Statement is to improve the
usefulness of information about postemployment benefits other than pensions (other
�*Sr' iAclvfe,f ix tke gener%Lyv-**se exterA,91 fix,?;kriQ1 re-1)*As
of state and local governmental OPEB plans for making decisions and assessing
accountability. The requirements of this Statement are effective for the County for periods
beginning after June 15, 2016 and did not have an impact on the County's financials for the
year ending June 30, 2017.
In June 2015, GASB issued Statement No. 75,Accounting and Financial Reportingfor
Posteniployinent Benefits Other Than Pensions. The primary objective of this Statement is to
improve accounting and financial reporting by state and local governments for
postemployment benefits other than pensions (other postemployment benefits or OPEB). Th,;
requirements of this Statement are effective for the County for periods beginning after June
15, 2017. The County has not yet detertnined the effect this Statement will have on its
financial statements.
In December 2015, GASB issued Statement No. 78, Pensions Provided through Certain
Multiple-Einployer Defined Benefit Pension Plans. The objective of this Statement is to
address a practice issue regarding, the scox,)e and aw
, ghcabihty of Statement No. 68, Accounting
andFinancial Reportingfor Pensions. The requirements of this Statement are effective for
reporting periods beginning after December 15, 2015 and did not have an impact on the
County's financials for the year ending June 30, 2017.
In January 2016, GASB issued Statement No. 80, Blending Requirementsfor Certain
Component Units. The objective of this Statement is to improve financial reporting by
clarifying the financial statement presentation requirements for certain component units. The
requirements of this Statement are effective for reporting periods beginning after June 15,
In March 2016, GASB issued Statement No. 8 1, Irrevocable Split -Interest Agreements. The
objective of this Statement is to improve accounting and financial reporting for irrevocable
split -interest agreement by providing recognition and measurement guidance for situations in
which a government is a beneficiary of the agreement. The requirements of this Statement are
effective for financial statements for periods beginning after December 15, 2016 and did not
have an impact on the County's financials for the year ending June 30, 2017.
In March 2016, GASB issued Statement No. 82, Pension Issues. The objective of this
Statement is to improve consistency in the application of pension accounting and financial
reporting requirements by addressing certain issues that have been raised with respect to
previously issued Statements. The requirements of this Statement are effective for reporting
EM
Notes to the Basic Financial Statements
P 1711ifliii
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employer's most recent fiscal year-end is effective in the first reporting period in which the
measurement date of the pension liability is on or after June 15, 2017. The County
implemented these requirements as of and for the fiscal year ended June 30, 2017.
In November 2016, GAS13 issued Statement No. 83, Cenain Asset Retirement Obligations.
7,k*ut
asset retirement obligations (AROs), The requirements of this Statement are effective for
reporting periods beginning after June 15, 2018. The County has not yet determined the effect
this Statement will have on its financial statements.
In January 2017, GAS13 issued Statement No. 84, Fiduciary Activities. The principal
objective of this Statement is to enhance the consistency and comparability fiduciary activity
reporting by state and local governments. The requirements of this Statement are effective for
reporting periods beginning after December 15, 2018, The County has not yet determined the
effect this Statement will have on its financial statements.
In March 2017, GASB issued Statement No. 85, Omnibus 2017. The objective of this
Statement is to improve consistency in accounting and financial reporting by addressing
practice issues that have been identified during implementation and application of certain
GASB Statements. The requirements of this Statement are effective for reporting periods
beginning after June 15, 2017. Tile County has not yet determined the effect this Statement
will have on its financial statements.
In May 2017, GASB issued Statement No. 86, Cenain Debt Extinguishment Issues. The
,14 WRK
certain debt extinguishments and to enhance the decision -usefulness of that information. The
requirements of this Statement are effective for reporting periods beginning after June 15,
2017. The County has not yet determined the effect this Statement will have on its financial
statemetts.
, # I
The County and Department have adopted certain requirements of GASB Statement No. 82,
Pension Issues an amendment of GASB Statements No, 67, No, 68, and No. 73 (GAS13S 82),
which are effective for reporting periods beginning after June 15, 2016. The adoption of
. . . . . . . . . . . .
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MUM 1161104AIMI I I I I MKO Igor, lag F#
Wq RVILM1411 "MM
that they have not been expended or encumbered. Appropriations for capital
fiscal year that the appropriation was made.
Formal budgetary integration is employed as a management control device during the
year for the General Fund, special revenue funds, and Capital Projects Fund. Formal
-Imi"W" I Iwo -,
Elm
COUNTY OF HAWAVI
Notes to the Basic Financial Statements
1191MMMM
The accompanying statement of revenues, expenditures and changes in fund balances —
budget and actual (budgetary basis) for the General Fund presents a comparison of the
legally adopted budget with actual data on a budgetary basis. Accounting principles
zpplied for purposes of developing data on a budgetary basis differ significantly from
those used to present financial statements in conformity with GAAP. On the budgetary
basis, inter vernmental revenue are reco nized when awardid bi the iraiti _jcv_
we - gj ig
Ppr -my-,
are not accrued, and all leases are treated as operating leases, In preparing the financial
statements on a GAAP basis, accounts payable are accrued and treated as a reduction of
encumbrances for balance sheet presentation.
Ending fund balance — GAAP basis $47,746,958
Encumbrance adjustments:
Beginning encumbrances and unexpended allotments 3,291,302
Ending encumbrances and unexpended allotments (1,203,398)
Other adjustments (5.38M47)
Ending fund balance — Non -GAAP budgetary basis 44A45.215
3. CASH AND INVESTMENTS
The Director of Finance is responsible for the safekeeping of all monies paid to the County.
The Director of Finance invests any monies of the County which in the Director's judgment
are in excess of the amounts necessary for meeting the day-to-day operating needs of the
County. Under Section 46-50 of the Hawai'i Revised Statutes, legally authorized investments
include obligations of or guaranteed by the U.S. government, obligations of the State,
federally insured savings and checking accounts, time certificates of deposit, and repurchase
agreements with federally insured financial institutions.
fx-sa
various financial institutions. Bank deposits are under the custody of the Director of Finance.
For financial statement reporting purposes, cash and short-term investments consist of cash
and money market accounts, Cash and short-term investments also include repurchase
agreements, certificates of deposit, and government sponsored securities with original
maturities of three months or less.
,n, I - 411101 t T-aeyosi casn, Mile ce ica eposit, ano money
market accounts) as of June 30, 2017 was $162,729,005 for the primary government and
$5,784,904 for the fiduciary funds.
Information relating to bank balance, insurance and collateral of cash deposits is determined
on a county -wide basis. Total bank balances of deposits for tile primary government and
fiduciary funds amounted to $177,731,495 at June 30, 2017. Of that amount, $177,322,265
represents bank balances covered by federal deposit insurance or by collateral held by the
County's fiscal agents in the name of the County. The remaining bank balances of $409,230
represent deposits held by a management agent and were uncollateralized. Accordingly, these
deposits were exposed to custodial credit risk. Custodial credit risk is the risk that in tile event
of a bank failure, the County's deposits may not be returned to it. For checking and savings
accounts, time certificates of deposit, and repurchase agreements, the County requires, in
accordance with State statutes, that the depository banks pledge collateral based on tile
available bank balances for the protection of the funds deposited. All securities pledged as
collateral are held by the County's fiscal agents in the name of the County. The County also
requires that no more than 60% of the County's total funds available for deposit may be
deposited in any one financial institution, in accordance with State statutes.
MTN 70M�
funds. The County's investments of funds not required for immediate payments are
predominately comprised of government sponsored securities (equivalent to the rating in U.S.
Treasuries, re!��ase &W� I www4moraiin k W,.I*
hold equity securities.
The framework for measuring fair value provides a fair value hierarchy that prioritizes the
inputs to valuation techniques used to measure fair value. The hierarchy gives tile highest
priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1)
and the lowest priority to unobservable inputs (level 3). The three levels of the fair value
hierarchy are described as follows:
Level I — Inputs are quoted prices (unadjusted) in active markets for identical assets or
liabilities that a government can access at the measurement date, An active market is a
market in which transactions for the asset orifiabbility takeiJace w th suffieRvit freauetcv
111MV
*r liability. Level 2 inputs include:
MW
* Quoted prices for identical assets or liabilities in markets that are not active,
* Inputs other than quoted prices that are observable for the asset or liability,
* Inputs that are derived principally from or corroborated by observable markel
data by correlation or other means.
Government sponsored securities of $17,638,965 and certificates of deposits of
$58,230,282: Valued using quoted prices for identical or similar assets in markets that are
not active (Level 2).
Equity securities of $1,546,763: Valued using quoted prices in active markets for
identical assets or liabilities that a government can access at the measurement date (Level
_MM77wl
Certificates of deposit
Government sponsored securities
Investments — Private -Purpose Trus'"
Government sponsored securitie
Equity securities I
Investments — Agency Funds:
Certificates of deposit
Government sponsored securities
..........
MaturibL(LinXears]
Fair Value Less than 1 1 —5
$ 252,935
167,995
$ 42030
iI 0 1 1
QW -ROM 16111111161IM"O' 1 01,1011111101-
1111 6111CIIIIIICHL UJIL FLI K; &C,
and repurchase agreements. These investments are either insured by the FDIC, secured by
collateral or carry a credit rating equivalent to U.S. Treasuries.
am
COUNTY OF HAWAII
[Votes to the Basic Financial Statements
June 30, 2017
Cash in the Hawaii County Housing Agency is restricted to providing public housing
assistance and amounted to $1,885,925.
The restricted cash and investments in the General Fund was comprised of cash restricted to
costs incurred to administer the liquor commission and cash restricted to the acquisition and
maintenance of lands or property entitlements for public outdoor recreation and education.
Such amounts totaled $425,488 and $14,876,589, respectively.
Tenant security deposits received by the County for the Kula'imano Elderly Housing Project
and the Ouli Ekahi Affordable Housing Project are recorded as restricted assets. Such funds
amounted to $11,863 and $29,487, respectively, at June 30, 2017.
An operating reserve fund was established by the Ouli Ekahi Affordable Housing Project
pursuant to an agreement with the Hawai'i Housing Finance and Development Corporation,
who are the holders of tire project's note. This restricted reserve amounted to $72,644 at June
30,2017.
INA
Sewer
Solid waste
Capital projects
Intergovernmental
Gross receivables
Less: allowance for
uncollectibles
Vet totaLreceiva
General
Fund
$25,670,969
Capital Other
Projects Governmental
Fund Funds Total
$ — $ -- $25,670,969
790,665
13,586,271 5 813 197
39,257,240 6,603,862
-(2AA2 248 -
1,975,876
1,975,8
1,339,556
1,339,5m.
--
790,6
1,996.606
,I
21-396012
5,312,038
51,173,1
the govemment-wide statement of net position as a receivable (see Note 10).
M3MM-EM=
I".
Enterprise
Fund.q
Accounts receivable:
Rent
$11,733
Other
701
Gross receivables
12,434
Less: allowance for
uncollectibles
—IL407
Net total receivables
L=AM2
I".
! ► 4 . 4 r 4 `kl "1
Receivable
:1" .I L,
14 r
i
r r x i
Payable Fund
Amount
Capital projects fund
$ 478,843
Other governmental funds
1,428.411
1,907,254
General fund
338,999
Other governmental funds
601,275
940,274
General fund
202,461
Other governmental funds
187,533
Enterprise
r• r, r ,.
6.
r *rrr
•x 4 r;r r
payment between fundsmade.
Transfers for the fiscal year ended June 30, 2017 consisted of the following:
Transfers out:
Other
General
Governmental
Fund
Funds
Total
Transfers in:
Capital Projects Fund
$ 44,699
$3,952,825
$ 3,997,524
Bond redemption fund
23,730,661
--
23,730,661
Other governmental funds
394135,706
-.-
U.2=
39.135,706
$ 863°$91
r � r r • * � +r'
!N
6. CAPITAL ASSETS
Capital asset activity for the year ended June 30, 2017 for the County was as follows:
Balance Balance
July 1, Retirements/ June 30,
2016 Additions 'Transfers 2017
Governmental activities:
Capital assets not being depreciated:
Land and
improvements
$ 233,498,340
$ 5,689,551
$ --
$ 239,187,891
Easements
4,170,517
56,541
-®
4,227,058
Construction work in
progress
124,2131,63
95.642x05
X148.736,0191
71.118,202
Total capital assets not
being depreciated
361.881 020
101.388„150
148 736 019
314.533 15i
Capital assets being depreciated:
Buildings and
improvements
610,381,599
103,966,870
(304,439)
714,044,030
Equipment
152,329,637
10,369,924
(7,089,789)
155,609,772
Easements
439,300
17,197
--
456,497
Infrastructure
572,990x504
46.845„712
619.836,216
Total capital assets
being depreciated
1,336,141,040161,199,703
(7,394,2281
1 489 946,515
Less accumulated depreciation
for:
Buildings and
improvements
(105,764,055)
(10,399,070)
107,081
(116,056,044)
Equipment
(92,418,885)
(9,455,080)
6,454,969
(95,418,996)
Easements
(439,300)
--
--
(439,300)
Infrastructure
1265,762*527)X25.155„7041
-
x(290.918,2311
Total accumulated
depreciation
1464,384,7671
(4,009 54i
6.562 050
f.502,832x71i
Total capital assets
being depreciated,
net
871"756x,273
116.189,840
(832.1781
9 7 113,944
Governmental
activities capital
assets, net
3,63 X93
X49 )
1 .64 ,095
COUNTY OF HAWAII
Notes to the Basic Financial Statements
Balance
Retirements/ June 30,
Additions "transfers 2017
$ $ $ �753 877
1,593,187
272,850
6,803 --(2-629) 137,950
6,803 --Q-629 2,003,987
(36,042)
Balance
(4,347)
July 1,
I2 526
2016
Business -type activities:
3,629 (1,308 ,923
Capital assets not being depreciated:
Land
$ 753 �877
Capital assets being depreciated:
Buildings and
improvements
1,593,187
Ground and site
improvements
272,850
Equipment
1�34776
Total capital assets
being depreciated
2 �00O 813
Less accumulated depreciation for:
Buildings and
improvements
(946,647)
Ground and site
improvements
(210,610)
Equipment
(102 380,)
Total accumulated
Depreciation
(1,259.637)
Total capital assets
being depreciated,
net
741 176
Business -type
activities capital
assets, net
SIM=
Balance
Retirements/ June 30,
Additions "transfers 2017
$ $ $ �753 877
1,593,187
272,850
6,803 --(2-629) 137,950
6,803 --Q-629 2,003,987
(36,042)
(982,689)
(4,347)
(214,957)
I2 526
�3629 _(,LLI.277)
_J522_915
3,629 (1,308 ,923
=1=4�kj
�W $
MT-ZMI"
Depreciation expense was charged to functions/programs of the primary government as
follows:
Redemption Governmental
Governmental activities:
Fund Funds
General government
$ 2,893,703
Public safety
4,489,032
Highways and streets
27,064,560
Sanitation
5,803,169
Health, education and welfare
2,074,356
Culture and recreation
_2,685.034
Total depreciation expense — governmental activities
$UMQU-5A
Business -type activities:
Kula'imano Elderly Housing Project
$35,687
Ouli Ekahi Affordable Housing Project
17,228
Total depreciation expense — business -type activities=U12J1_
7. DEFERRED INFLOW OF RESOURCES
Deferred inflow of resources consists of the following at June 30, 2017:
Governmental activities:
Real property taxes
Sewer revenue
Housing revenue
Solid waste revenue
Total presented in
fund financial
statements
Add deferred inflows
of resources related
to pensions
Less adjustments for
accrual of revenues
Total government -
wide financial
staternents
Capital
General Projects
Fund Fund
$ 24,505,648 $
190,535
24,696,183
Bond Other
Total
Redemption Governmental
Governmental
Fund Funds
Funds
$ $
$ 24,505,648
-
190,535
1,235,896
1,235,896
29,718
29,718
12,583,038 12,583,038
(23,028,721)-- 25J55 �105
JZJZ6,384) _(L —
—I-- - W„250-5
dates through February 2022. These capital leases are financed from the resources of various
The County also leases land, office facilities and other equipment under noncancellable
operating leases expiring through August 2045. Expenditures for such operating leases were
$1,941,297 for the fiscal year ended June 30, 2017.
Tile future minimum payments under capital and operating leases o¢June 3D,20l7are uo
Hilo LaitdJ711 The County owns and operates a landfill located in the city of Hilo. State and
federal laws require the County to place covers on certain landfill sites and to monitor and
maintain the sites for thirty years after the facility is closed. Although the closure and
postclosure care costs will be paid near and after the date that the landfill stops accepting
waste, the County recognizes a portion of the closure and postclosure care costs in each
operating period. The liability for these costs is included in the govemment-wide statement of
net position, The amount recognized each year is based on the landfill capacity used as of the
Capital
Operating
Leases
Leases
Year Ending June 3O:
2018
$2,106,484
$1.734,554
2019
1,819,727
738`079
2020
1,513,150
611,071
2021
1,146,408
484,670
2022
236,936
374'651
2023-2027
—
710,256
2028-2032
—
32'480
2033-2037
—
900
2038-2042
—
gOO
2043-2047
_—
____-570
Total minimum lease payments
�,��2,705
SMS. III
Less amount representing
interest
_CZjljI 2 5)
Obligations under capital leases
Hilo LaitdJ711 The County owns and operates a landfill located in the city of Hilo. State and
federal laws require the County to place covers on certain landfill sites and to monitor and
maintain the sites for thirty years after the facility is closed. Although the closure and
postclosure care costs will be paid near and after the date that the landfill stops accepting
waste, the County recognizes a portion of the closure and postclosure care costs in each
operating period. The liability for these costs is included in the govemment-wide statement of
net position, The amount recognized each year is based on the landfill capacity used as of the
UMMEMIM
statement of net position date, At June 30, 2017, the County recognized a liability of
$21,321,000, based on the use of 95% of the estimated capacity of the landfill. During the
fiscal year ended June 30, 2017, there was $215,000 in expenditures incurred for the closure
of the landfill. The remaining $1,194,000 in estimated cost of closure and postclosure care
will be recognized as the remaining estimated capacity is used. The estimated remaining
useful life of the landfill is approximately one year. These amounts are based on what it
would cost to perform the required closure and postclosure care in 2017. Actual costs at that
time may be higher due to inflation, changes in technology, or changes in regulations.
Lat-].Wat"�q A&-t-Vort1w g*41�u
available engineer's calculation. The volumes going into the landfill do not account for
decomposition, settlement, and corrosion; therefore the estimates are revised when new
engineering calculations, based on aerial photos and surveys, are available.
The County's permit to operate the landfill expired October 9, 1998. The County filed for an
extension which was approved by the State until permitted capacity is reached. In accordance
I @A
company to retain the overall management as well as perform all construction work on the
landfill cells. Under the terrns of the contract, the County has no responsibility for
remediation closure or Aostclosure care. Accordingj�o a i j for this landfill is included
-no-�
in the County's financial statements.
um��
FinancialAssurance For fiscal year 2017, the County has provided for financial resources
that will be available to provide for closure, postclosure care and remediation or containment
of environmental hazards at the above landfills, except Pu'uanahulu. The Environmental
Protection Agency's financial assurance rules include a local government financial test
consisting of a financial component, a public notice component, and a recordkeeping
component. Local governments are required to satisfy each of the three components to pass
the annual test. Management believes that the County has satisfied each of the components of
the local government financial assurance requirements.
AT ZTIM r Jose I sarrage facu neTTMEMI 7
Kealakelle Transfer Stations, State law requires tile County to perform necessary closure
activities, including, but not limited to, the removal of all remaining solid waste and
performing appropriate site assessments and remedial activities. The estimated liability
($15,542,639) for the remediation costs associated with these closures is included in the
County's financial statements and is based on closure plans prepared by a science and
engineering consultant contracted by the County, and the current value of costs expected to be
incurred. Tile liability could change over time due to inflation or deflation, changes in
technology, or changes in laws and regulations governing the remediation effort.
Zmmm��,-=
-H.-M-n-H
The 2010 Series B bonds were issued as bonds designated as "Recovery Zone Economic
Development Bonds" under the American Recovery and Reinvestment Act of 2009. The
Wk4voxv�i'4.0 ;t2
the interest payable on the Series B bonds.
The following is a summary of general obligation bond transactions reported in the
County for tile fiscal year ended June 30, 2017:
COUNTY OF HAWAII
9MMERIM
Jill I ligplipplipi lll��
,111CHL API IML PlUbILIU11 UL JLHIC, )V, 4v 1 dic CV1111plibvt 'W1 LIIC lujiv
- te
individual issues:
Public improvement (Pl) and/or refunding bonds:
Bonds
Issue
Bond Balance
$ 4,055,000
Bond Balance
Due Within
4,950,000
Authorized
Amount
_20-
Lull Ilk IMIl
(s
Retirements
une 30_2017
L-
Qnc car
2006
Series A
$ 25,000,000
S 1,180,000 S
f5 1,180,000)
16,020,000
$
2007
Series A
85,000,000
7,920,000
(3,865,000)
4,055,000
4,055,000
2007
Series B
20,820,000
7,250,000
(2,300,000)
4,950,000
2,415.000
2007
Series C
10,787,388
6,473,085
(968,517)
5,504,568
1,007,649
2008
Series A
50,000,000
6,835,000
(2,160,000)
4,675.000
2,280,000
2010
Series A
26,493,750
5,448,750
(1,271,250)
4,177.500
1,335M0
2010
Series B
18.506,250
16,878,750
(858,750)
16,020,000
896,250
2013
Series A
58,509,892
53,092,192
(2,003,939)
51,088,253
2J015,749
2013
Series B
21,010,000
17,515,000
(1,860,000)
15,655,000
1,950,000
2013
Series C
18,470,000
16,950,000
(1,585,000)
15,365,000
1,655,000
2013
P1 Series A
1,169,000
1,147,782
(21,801)
1,125,981
22,401
2016
Series A
99,620,000
99,620,000
99,620,000
--
2016
2016
Series B
13,497,500
13,497,500
13,497,500
1,100,000
2016
Series C
44,835,000
44,835,000
44,835,000
2016
Series D
28,860,000
28,860,000
28,860,000
2016
Series E
19,061,250
19,061,250
19,061,250
--
2016
2016
Series F
10 —0000
--j!M—OU
---10&4-0-000
—1105-000
551,680,030
356,604,309
(18,074,257)
338,530,052
22,127,049
Add
unamonized
premium�14O
57,382 .003
(4.331.1311 �11 I
—_D_Q5L87241L
8.994
--_
W-0-19AM5
SAjl2AAjL2
_LW
5391 MLAM21—
ULbAA-41
Jill I ligplipplipi lll��
,111CHL API IML PlUbILIU11 UL JLHIC, )V, 4v 1 dic CV1111plibvt 'W1 LIIC lujiv
- te
individual issues:
Public improvement (Pl) and/or refunding bonds:
2007
Series A at 4.0% to 5.0%, due through 2017
$ 4,055,000
2007
Series B at 3.75% to 5.0%, due through 2018
4,950,000
2007
Series C at 4.0% to 5.0%, due through 2021
5,504,568
2008
Series A at 4.0% to 6.0%, due through 2018
4,675,000
2010
Series A at 4.0% to 5.0%, due through 2020
4,177,500
2010
Series B at 3.33 5% to 6.1due through 203 0
16,020,000
2013
Series A at 2.0% to 5.0%, due through 2032
51,088,253
2013
Series B at 3.0% to 5.0%, due through 2023
15,655,000
2013
Series C at 4.0% to 5.0%, due through 2024
15,365,000
2013
PI Series A at 2.75%, due through 2048
1,125,981
2016
Series A at 3.0% to 5.0%, due through 2035
99,620,000
2016
Refunding Series B at 3.0% to 5.0%, due through 2026
13,497,500
2016
Refunding Series C at 5,0%, due through 2027
44,835,000
2016
Refunding Series D at 5.0%, due through 2028
28,860,000
2016
Refunding Series E at 2.0% to 5.0%, due through 2029
19,061,250
2016
Taxable Series F at 1.2% to 1,55%, due through 2019
10.04Q&00
Notes to the Basic Financial Statements
Annual debt service requirements to maturity for the above general obligation bonds are as
follows:
In periods prior to the year ended June 30, 2017, the County defeased certain general
obligation bonds by placing the proceeds of ".. bonds a to provide for
all
future debt servi ts on the old bonds. Accordin91 -he
a ' 1, N�l 111 0
amortizedover " life of the respective bond issues.
fMM
CouncilThe County oN the issuance $487.9 million in general obligationbonds
to finance both specified and unspecified capital improvement projects. At June 30, 2017,
$233.2 millionissued,
Suhseqitent Events On July 6, 2017, the County issued a total of $139,895,000 in
general obligation bonds, The interest rates range from 3.0% to 5.0%. The bonds are due
through 2037. The bonds were authorized as noted above.
Governmental Activities
Fiscal year ending June 30:
Principal
Interest
2018
$ 22,127,049
$ 14,976,644
2019
22,353,209
14,427,860
2020
20,409,410
13,558,568
2021
22,027,709
12,598,376
2022
23,106,084
11,518,385
2023 —2027
114,033,221
40,833,056
2028— 2032
76,581,464
16,293,935
2033 —2037
37,352,761
2,825,693
2038 —2042
203,585
60,439
2043 —2047
233,161
30,457
2048 —2049
102,399
2.835
Total
$338.530.052
$127126.248
In periods prior to the year ended June 30, 2017, the County defeased certain general
obligation bonds by placing the proceeds of ".. bonds a to provide for
all
future debt servi ts on the old bonds. Accordin91 -he
a ' 1, N�l 111 0
amortizedover " life of the respective bond issues.
fMM
CouncilThe County oN the issuance $487.9 million in general obligationbonds
to finance both specified and unspecified capital improvement projects. At June 30, 2017,
$233.2 millionissued,
Suhseqitent Events On July 6, 2017, the County issued a total of $139,895,000 in
general obligation bonds, The interest rates range from 3.0% to 5.0%. The bonds are due
through 2037. The bonds were authorized as noted above.
these bonds, but the County remains liable because they are general obligations of the
in the government -wide statement of net assets for the County for the fiscal year ended June
30, 2017:
The County has obtained loans to assist in financing mandated wastewater projects from the
State Water Pollution Control Revolving Fund (SRF). The purpose of this revolving fund is to
provide low-interest, long-term loans and other financial assistance to the four counties in the
state to finance construction of wastewater projects, The County has nine projects approved
for funding with these loans.
WEN
Issue Balance
Balance
N_Qte �
&mqunt Jkly 1 2016
bsues
Retirements
JVne 30 2017
Series c`Note x'|
S /5,0000 $ —
S 15.000,000
$(/5,00000)
$ —
Series C.Note R'z
8.000.000 —
0.800,000
(8.000.000)
—
Series C.Note R-3
2,000,000 —
2,0O ,08
(2,000,000)
—
Series C.Note n4
5`800.000 —
5.000.000
(5.000,000)
—
Series C.Note m-5
5.000.000 —
5,000.000
—
5.000.000
Series CNote R,6
5.000,008 —
5.000,000
—
5.000,000
Series C,Note n-7
/.800.090 —
1.000.000
—
1.000.000
Series C,Note m -m
/.000,000 —
/.000,000
—
1.000.000
Series C.Note R -e
}.00u.Ooo —
/.004.000
—
1,000.080
Series C.Note R'/n
/.Ono,OOO —
1.000,000
—
1.000.000
Series C,Note a'|`
500,000 —
500,0 00
—
500,000
Series C.NomR-|z
500,808 —
580/00
—
500,000
Series C.Note R'|3
10,000.000 —
10.000.000
(10.000.000)
—
Series C.Note R'/^
4,800,000
4,800,00
(4`800,000)
—
Series C.Note n-15
/5.000`000 —
15.000.000
—
/5.008.008
Series C,Note R-|*
8.000.000 —
0.000.008
—
8.000,000
Series C, Note a'\7
2.000.000 —
2.008.000
—
2.080.000
Series C,Note 8-|o
5,000.080 —
5.000.008
—
5.008.O8O
Series [, Note R'|9
18.000.000 —
10,008.000
—
10.000,008
Series C.Note R -2o
__6JK8UU0
ELUM-LDO
Mim-M
Law—M
The County has obtained loans to assist in financing mandated wastewater projects from the
State Water Pollution Control Revolving Fund (SRF). The purpose of this revolving fund is to
provide low-interest, long-term loans and other financial assistance to the four counties in the
state to finance construction of wastewater projects, The County has nine projects approved
for funding with these loans.
WEN
COUNTY OF HAWAPI
Notes to the Basic Financial Statements
HIMMMOPM5
The schedule below shows the County's SRF transactions for the fiscal year ended June 30,
2017:
Loans
Approved
Loan Balance
Principal
Interest
Loan Balance
Due Within
6uthInzed
Amount
July 1 2016
Additions
2020
&ne 30, 2017
Qne Year
Cesspool
2,194,763
193,098
2022
2,204,141
176,651
2023 —2027
Conversion
$ 8,363,773
S 4,673,319
S
(434,669)
4,238,650
S 436,794
Honoka'a LCC
4,513,158
2,867,665
579
(178,389)
2,689.276
179,284
Queen
Lili'uokalani
9,421,732
6,991,527
(483,407)
6,508,120
485,832
Kalaniana'ole
8,621,409
5,613,236
(317,125)
5,296.111
319,718
Kealakehe
WWTPAU
20,339,870
7,317,504
5,821,440
(519,118)
12,619,826
686,465
North Kona
3,454,500
-
1,958,708
(1,034,800)
923,908
-
Kcalakchc
Effluent Reuse
_-1111544
-
149,386
349.386
gk7
1214kI25-1
$-LU.9-UA
WkLm
UZA=r
UJ 07 093
The rernaining loans bear interest at 0.25% to 0.5% exclusive of a 0.25% to 0.75% loan fee,
and require payments through fiscal year 2039.
!ARE
Governinental Activities
Fiscal year ending June 30:
Principal
Interest
2018
$ 2,107,093
240,835
2019
2,137,812
225,792
2020
2,185,205
209,699
2021
2,194,763
193,098
2022
2,204,141
176,651
2023 —2027
10,935,004
632,967
2028 —2032
7,951,487
262,520
2033 —2037
2,829,686
41,221
2038 —2039
80.086
579
Total
.211
!ARE
is a simunary, lv= Acr gencra Mg-forni 1* UuMi- ItIrMIC711=1
year ended June 30, 2017:
Governmental activities:
Compensated absences
Claims and judgments
(see Note 12)
Capital leases
(see Note 8)
Landfill costs payable
(see Note 9)
Pollution remediation
(see Note 9)
Other post employment
benefit obligation
(see Note 13)
Total
Balance Balance Due Within
July 1 2016 Additions* PaYments June 30 2017 One Year
$37,907,805 $14,635,464 $(13,057,367) $39,485,902 $9,813,735
13,859,496 4,478,097 (3,901,900) 14,435,693 2,923,529
4,916,178 3,769,403 (2,120,001) 6,565,580 1,989,281
22,633,000 7,205,521 (315,521) 29,523,000 195,405
16,414,110 (871,471) 15,542,639 6,864,765
7 7,0�098 5 7 36 �8-1O 000 -Uj� �203Q 82 �247 822
$J.U.7AQ"4 -IAU-6.9 01 ,- $J2.U&2 -3-6 7L62
JIAZ.4WJ &ZIJ _
11MA"AM. six"
absences since most employees are paid by the general fund.
Fund Balances - Debt Service Funds
The fund balance in the debt service funds at June 30, 2017 includes $24,205,703, which is
reserved for principal payments on general obligation bonds and $2,599,986, which is
reserved for the payment of interest on the bonds.
I
On February 12, 2013, the County issued general obligation bonds on behalf of Kula'irnano
Elderly Housing Project (Project) to pay off its two notes payable to the U.S. Department of
Agriculture, Farmers Home Administration with principal and interest balances aggregating
$835,108, The Project is responsible for the debt service payment related to their portion of
the bonds, which is also secured with the County's general obligation pledge. Because the
Project is responsible for only a portion of the total bonds issued, it was decided that the
payments of $7,826 on the old notes at 5.547% interest. Under this payment schedule, the
Project will make contributions through 2025 of the bonds 2032 maturity date.
ME
I
Uff ITARGIM
The following is a summary of the Project's bond payable transactions for the fiscal year
ended June 30, 2017:
Balance at July 1, 2016
$ 707,808
Deductions
—_ff§,O 6 1)
Balance at June 30, 2017
651,747
Less current portion
51
Note payable, net of
21,997
current portion
17,905
Fiscal year ending June 30:
2018
2019
2020
2021
2022
2023-2026
IM
•I III Ili! Ili! 1! 111111% 1! Ini III I I ligil I
MIMT#��
Principal
Interest
$ 59,251
$ 32,999
62,622
29,533
66,186
25,869
69,952
21,997
73,932
17,905
319,804
_27,,056
IsTri L�cl; I _. V"LOMIll .1i,
the Hawai'i Housing Finance and Development Corporation in the arnount of $478,430, The
loan is non-interest bearing and matures on February 27, 2041. In exchange, the County
assumed ownership of the Ouli Ekahi project which consists of a 33 single family affordable
rental housing project.
The following is a summary of enterprise fund loan payable transactions for the fiscal year
ended June 30, 2017:
Balance at June 30, 2017
Less current portion
Loan payable, net of
current portion
111 11 E iiii III Ili IN RIVER I Ill ill III ME
Beam MMSMIM
Fiscal year ending June 30
2018
2019
2020
2021
2022
2U2] -2U27
2O28 -2O32
2033
MIM
The County has issued general obligation bonds on behalf of Improvement District No. 18 for
water improvements (see Note 4). These bonds were then refunded by a portion of the 2013
Series A Bonds that were issued. The Improvement District is responsible for the payment of
the debt service on these bonds, but the County remains I iable because they are general
obligations of the County. The improvement district's share of the refunded bonds matures
annually through 2027 and bear interest at the previous rates of 4.375% to 4.75%. Total
general obligation bonds payable included in the government -wide statement of net position
were $1,071,453 at June 30, 2017,
The County has also issued general obligation bonds on behalf of Improvement District No, 19
for water improvements (see Note 4). The Improvement District is responsible for the payment
of the debt service on these bonds, but the County remains liable because they are general
obligations of the County. The improvement district's share of the refunded bonds matures
annually through 2048 and bear interest at the previous rates of 2,75%. Total general
obligation bonds payable included in the government -wide statement of net position were
$1,125,982 at June 30, 2017,
an agent for the property owners within the improvement districts to collect assessments
receivable, forward payments to bond -paying agents at appropriate dates and, if required,
administer foreclosure proceedings.
MUNWOMMM
191511MI r x x
- following is a summary of bond transactionso • District No. 18,
o ,,Improvements,y No. 19, Kona Ocean
endedSubdivision for tile fiscal year June 30, 2017:
DeductionsBalance at July 1, 2016 $2,292,610
'
Balance at June 30, 2017 S2-192AJi
The following is a summary of the annual maturities for the improvement district general
obligation bonds;
Fiscal year ending June 30:
Principal
Interest
2018
$ 99,189
$ 78,752
2019
103,379
74,470
2020
107,752
70,001
2021
112,317
65,336
2022
117,082
60,466
2023
-2027
664,559
221,440
2028
-2032
276,248
112,296
2033
-2037
177,762
86,619
2038
-2042
203,586
60,440
2043
-2047
233,161
30,457
2048
-2049
102,400
2834
Total
General fund $ 1,391,468
Capital projects fund 102,878,357
Bond redemption fund --
Nonmajor funds 5.819,678
Contractual commitments for the enterprise funds were immaterial,
Intergovernmental revenues — o o pecifil
purposes that are subject to review and auditby grantor agencies, -
requests for reimbursement to the grantor g_ for expenditures disallowed under terms
the grants. In the opinion of g of w disallowedcosts,�
be material-
W29991M
Claijyu — Numerous claims and lawsuits have been filed against the County in the normal
course of its operations. A liability for probable losses is included on the government -wide
statement of net position (see Note 12). Although the outcome of the various claims and
lawsuits is not presently determinable, in the opinion of the County's Corporation Counsel,
of the County.
ADA complimice — The County entered into a stipulated agreement, filed on June 4, 1998,
which relates to the Department of Parks and Recreation (Parks). The agreement required
Parks to establish practices, policies and procedures regarding its programs, and prepare a
transition plan by the middle of the year 2000. The self-evaluation and transition plan for
r actice nd r ced e a ep. I, I d d a ved
W. -IM
ffm�l MA
U -csUr Ylvt CHY41 I UTS Rfw= [Y,- dl
ry dto I aV97FIT
recommends specific actions on those requests. i
The County is exposed to various risks of losses related to torts; theft of, damage to, and
destruction of assets; errors and omissions; injuries to employees, and natural disasters, Tile
County maintains fire and commercial multiple peril insurance on County facilities, flood
insurance on selected structures, medical malpractice insurance for emergency medical
technicians, aviation liability for helicopter operations, liability coverage on transit buses,
privately owned police vehicles and retired senior volunteers, and property damage coverage
on County Police fleet vehicles and Kohala. Ranch fire truck. The County maintains fire and
property coverage on several County housing projects (Kula'imano and Ouli Ekahi). There
was no reduction in insurance coverage during the year from coverage in the prior year,
Duriiv the (cast three fiscal pears- the amount of settlements in cases covered b insurance has
not exceeded the insurance coverage, Tile County is substantially self-insured for tile majority
of its vehicles as well as for all other perils including workers' compensation and genera)
liability. The liability for claims and judgments is reported on the government -wide statement
of net position and the majority will be liquidated from the County's general fund.
Liabilities are reported when it is probable that a loss has occurred and the amount of that loss
can be reasonably estimated. These losses include an estimate of claims that have been
incurred but not reported (IBNR), Claim liabilities, including IBNR, are based on the
estimated ultimate cost of settling the claims, and include incremental costs for the hiring of
special counsel and expert witnesses. Claims liabilities are estimated by a case-by-case
review of all claims and tile application of historical experience to outstanding claims.
Estimates of IBN R are based on historical experience, The liability for claims and judgments
is reported on the government -wide statement of net position. At June 30, 2017, the amount
of this liability was $14,435,693. This is the County's best estimate based on available
information. Changes in the reported liability since July 1, 2015 are given below.
21=1111 IN F111139MMS"Im-
W-M
General
Workers'
Total
Lia iii
Compensation
Lab�
Balance at July 1, 2015
$ 2,633,719
$ 10,653,188
$ 13,286,907
Incurred claims (including IBNR)*
470,965
3,537,320
4,008,285
Claim payments
X14,598)
f 212 1,0�98
_(2A15,696)
Balance at June 30, 2016
$ 2,490,086
$ 11,369,410
$ 13,859,496
Incurred claims (including IBNR)*
199,478
4,278,619
4,478,097
Claim payments
(125.362)
(3,506,538)
(3,901.900
Balance at June 30 2017L=Za%4
=�=22
=L49-1
L.UJ=4
S JAAJ�.M
21=1111 IN F111139MMS"Im-
W-M
M==
H.1 if I - I .. 0 . I .. . .
Benefits Provided - The ERS provides retirement, disability, and death benefits that are
covered by the provisions of the noncontributory, contributory, and hybrid retirement plans.
The three plans provide a monthly retirement allowance equal to the benefit multiplier
(generally 1 .25% or 2%) multiplied by the average final compensation multiplied by years of
credited service. The benefit multiplier decreased by 0.25% for new hybrid and contributory
plan members hired after June 30, 2012. Average final compensation is based on the five
highest paid years of service excluding the payment of salary in lieu of vacation for members
hired after June 30, 2012. For those hired between January 1, 1971 and June 30, 2012, AFC is
based on the three highest paid years of service excluding the payment of salary in lieu of
vacation. If the employee was hired prior to January 1, 197 1, the AFC is the average salary
earned durin the five hbyhest �said pears of service- including the - apment of salavA in lieu of
vacation, or &ee highest- paid'years of service, excluding the payme nt of salary in lieu of
vacation,
For members hired before July 1, 2012, the original retirement allowance is increased by 2.5%
cach July I following the calendar year of retirement. This cumulative benefit is not
compounded and increases each year by 2.5% of the original retirement allowance without a
ceiling (2.5% of the original retirement allowance the first year, 5.0% the second year, 7.5%
the third year, etc.). For members hired after June 30, 2012 the post-retirement annuity
increase was decreased to 1.5% per year.
"11,7411141111141NIt WA a KH I W.J41 RIV I Wfd to I U I
rOT'T'ren# M07MV
Retirement Benefits - General employeesretirement benefits are deten-nined as 1 .25% of
average final compensation multiplied by the years of credited service. Employees with
10 years of credited service are eligible to retire at age 62. Employees with 30 years of
credited service are eligible to retire at age 55.
Disability Benefits - Members are eligible for service -related disability benefits
Em
COUNTY OF HAWAI'l
ummium
COUNTY OF HAWAII
�M",77nmp I'll, ��� � 1. r W —r. M
at least I year of service, Ordinary death benefits consist of a lump sum payment of the
WITY0 MIT W_
same as those for contributory plan members hired June 30, 2012 and prior.
Hvbrid Plan for EmDlovees Hired Prior to julyj 2012
Retirement Benefits - General employees' retirement benefits are determined as 2% of
average final compensation multiplied by the years of credited service, General
employees with 5 years of credited service are eligible to retire at age 62. General
employees with 30 years of credited service are eligible to retire at age 55.
Disability Benefits - Members are eligible for service -related disability benefits
regardless of length of service and receive a lifetime pension of 35% of their average
final compensation plus refund of their contributions and accrued interest. Ten years of
credited service is required for ordinary disability. Ordinary disability benefits are
determined in the same manner as retirement benefits but are payable immediately,
without an actuarial re,
reTRYUNWAITIFF n4w.,W]
WrITA-905"I M
Death Benefits - For service -connected deaths, the surviving spouse/reciprocal
beneficiary receives a lump sum payment of the member's contributions and accrued
or re-entry into a new reciprocal beneficiary relationship. If there is no surviving
spouse/reciprocal beneficiary, surviving children (up to age 18) or dependent parents are
eligible for the monthly benefit. If there is no spouse/reciprocal beneficiary or dependent
children/parents, the ordinary death benefit is payable to the designated beneficiary.
at least 5 years of service. Ordinary death benefits consist of a lump sum payment of the
member's contributions and accrued interest multiplied by 150%, or 50% Joint and
Survivor lifetime pension if the member was not eligible for retirement at the time of
100% Joint and Survivor lifetime pension it the member was eligible for retirement at the
time of death and designated one beneficiary.
Hvbrid Plan for Emolovees Hired After June 30. 2012
Retirement Benefits - General employees' retirement benefits are determined as 1.75% of
average final compensation multiplied by the years of credited service. General
employees with 10 years of credited service are eligible to retire at age 65. Employees
with 30 years of credited service are eligible to retire at age 60, Sewer workers, water
safety officers, and EMTs may retire with 25 years of credited service at age 55,
Disability and Death Benefits - Provisions for disability and death benefits generally
to emy-lokiees who were ac W# #h w W
4`241 Wswiva
interest multiplied by 120'i%0Joint and Survivor lifetime pension if the member
was not eligible for retirement at the time of death and designated one beneficiary, or
100% Joint and Survivor lifetime pension if the member was eligible for retirement at the
time of death and designated one beneficiary.
Contributions - Contributions are established by HRS Chapter 88 and may be amended
through legislation. The employer rate is set by statute based on the recommendations of t
ERS actuary resulting from an experience study conducted every five years. Since July 1,
2005, the employer contribution rate is a fixed percentage of compensation, including the
normal cost plus amounts required to pay for the unfunded actuarial accrued liabilities, Th
al I other employees. Contributions to the pension plan from the County for the year ended
June 30, 2017, 2016, and 2015 were $36,157,981, $34,013,001, and $31,456,148,
respectively.
uff��
I I C 511, /-t I/-, go nFur-M71MY"I"Ime
14.2% of their salary. Hybrid plan members hired prior July 1, 2012 are required to contribute
6.0% of their salary. Hybrid plan members hired after June 30, 2012 are required to contribute
8.0% of their salary.
AL J IUIC J V, i i, ME uslunty ru,717M a i MMYruTW
$619,129,088 for its proportionate share of the net pension liability. The net pension liability
was measured as of June 30, 2016, and the total pension liability used to calculate the net
pension liability was determined by an actuarial valuation as of that date, The County's
proportion of the net pension liability was based on the actual employer contributions to the
pension plan relative to the contributions of all participating employers. At June 30, 2016, the
County's proportion was 4.62%, which was an increase of .24% from its proportion measured
as of June 30, 2015.
NOW I
Differences between expected and actual experience
Net difference between projected and actual investment
earnings on pension plan investments
Changes in assumptions
Changes in proportion and differences between employer
contributions and proportionate share of contributions
County contributions subsequent to the measurement date
Total
Deferred
Deferred
Outflows
Inflows of
of Resources
Resources
22,931,024
$ 6,759,333
41,702,998
--
126,260,518
18,375,458 5,773,781
3 6,15,7981 --
24=5=,L
2IS7. I-IZ03 I L4
$36,157,981 reported as deferred outflows of resources related to the County's contributions
the net pension liability in the fiscal year ended June 30, 2018.
related to pensions will be recognized in pension expense as follows:
maim
Fiscal Year Ending June 30
Amount
2018
$ 39,203,620
2019
39,203,620
2020
51,591,632
2021
44,572,275
2022
22.165.737
L==Lff4z&_W
the measurement:
Inflation 2.50%
Payroll growth rate 3.50% per annum
Salary increases 3.50% - 7.00%, including inflation
Investment rate of return 7.00% per annum, including inflation
Cost of living adjustments 2.50% /1.50%
Mortality rates used in the actuarial valuation as of June 30, 2016 were based on the
following:
Active memFe—rs— Rnu Tt—pffs—o—f e mortality taffFe for acTfve employees basTi�
on tile occupation of tile member.
Healthy retirees — The 2016 Public Retirees of liawai'i mortality table, generational
projection using the BB projection table from the year 2016 and with multipliers based on
plan and group experience.
Disabled retirees — Base Table for healthy retiree's occupation, set forward 5 years,
generational projection using the BB projection table from the year 2016. Minimun,
mortality rate of 3.5% for males and 2.5% for females.
The actuarial assumptions used in the June 30, 2016 valuation were based on the results of an
actuarial experience study for the five-year period ending June 30, 2015. The major changes
to assumptions resulting from the 2015 actuarial experience study were (I ) a decrease in the
investment return assumption from 7.65% to 7.00% and (2) the mortality assumptions were
modified to assume longer life expectancies as well as to reflect continuous mortality
improvement, ERS updates their experience studies every five years.
The long-terin expected rate of return on pension plan investments was determined using a
building-block method in which best -estimate ranges of expected future real rates of return
(expected returns, net of pension plan investment expense and inflation) are developed for
each major asset class. These ranges are combined to produce the long-term expected rate of
•USIVENUMMM
UIM-MBIMOIN
VFT-C-TEHTTUf-aFT4F I—M L L
CT-t4r1reu T T
percentage and by adding expected inflation.
-# M_ NIMM
summarized in the following table:
Discount rate — The discount rate used to measure the total pension liability was 7.00%, a
decrease from the 7.65% rate used at the prior measurement date. The projection of cash
flows used to determine the discount rate assumed that emvjovee contributions will be made
the current contribution rate and that contributions from the County will be made at statutril ]
required rates, actuarially determined. Based on those assumptions, the pension plan's
fiduciary net position was projected to be available to make all projected future benefit
payments of current active and inactive employees. Therefore, the long-terrn expected rate o
determine the total pension liability.
1,
11 1 liffial MINI »go- MR -61
plro�torultrlaw sriurc"Ili I UMilVII JId*IIILJ VIVIAU VIC 11 IL VUFC; UdIQLIHIe,;V
rate that is I -percentage -point lower (6.00%) or I -percentage -point higher (8,00%) than the
current rate:
I% Iecrease Current Discount I% Increa
(6.00%) Rate (7.00%) (8.00%)1
County's proportionate share of
the net pension liability $ 729.3 6 1LI29,M S 468.162-682
IM
Long -Term
Strategic Allocation
Target
Expected Real
(Risk -Based Classes)
Allocation
Rate of Return
Broad growth
63.00%
835%
Crisis risk offset
20.00%
5.50%
Real return
10.00%
6.15%
Principal protection
— 7.00%
2.20%
100.00%
Discount rate — The discount rate used to measure the total pension liability was 7.00%, a
decrease from the 7.65% rate used at the prior measurement date. The projection of cash
flows used to determine the discount rate assumed that emvjovee contributions will be made
the current contribution rate and that contributions from the County will be made at statutril ]
required rates, actuarially determined. Based on those assumptions, the pension plan's
fiduciary net position was projected to be available to make all projected future benefit
payments of current active and inactive employees. Therefore, the long-terrn expected rate o
determine the total pension liability.
1,
11 1 liffial MINI »go- MR -61
plro�torultrlaw sriurc"Ili I UMilVII JId*IIILJ VIVIAU VIC 11 IL VUFC; UdIQLIHIe,;V
rate that is I -percentage -point lower (6.00%) or I -percentage -point higher (8,00%) than the
current rate:
I% Iecrease Current Discount I% Increa
(6.00%) Rate (7.00%) (8.00%)1
County's proportionate share of
the net pension liability $ 729.3 6 1LI29,M S 468.162-682
IM
month of June 2017, as required by HRS, and the excess pension cost under Act 153/SLH 2-
12 REFER HRS Section 88-100 for fiscal year ended June 30, 2017.
i
,11111MWO�# 2 1 1 31=
The County also sponsors a nonqualified, governmental single employer defined benefit
pension plan for members of the County Band (County of Hawai'i Bandsmen Pension
System) who are or were ineligible for benefits under ERS and whose employment began
before June 1, 1990. Under HRS Chapter 88, the County Pension provides retirement benefits
that are computed based on the average annual salary during the last 10 years of employment
with a minimum pension amount of $50 per month. There are no assets accumulated in a trust
for the payment of benefits.
As of the valuation date of June 30, 2017, there were 23 inactive employees or beneficiaries
receiving benefits-, 9 inactive employees not yet receiving benefit payments; and 8 active
itent bers.
$1,146,780. The total pension liability was measured as of June 30, 2017 based on an
actuarial valuation as of that date.
Y fv(.TtTrF7Vt a pension
deferred inflow of resources of $49,924.
the measurement:
Inflation 2.50%
Payroll growth rate 3.50°x® per annum
Salary increases 3.50%, including inflation
Cost of living adjustments 2.50%
Except for the salary increase and retirement rate assumptions, all other demographic
assumptions are the same as those used to measure the total pension liability under the ERS
plan.
-WE " rXr P, Iffe MW
,iaily municipal bond at closest to but not later than the measurement date of tile Fidelity
"20 -Year Municipal GO AA Index". The following presents the County's total pension
liability calculated using the discount rate of 3.56%, as well as what the County's total
pension liability would be if it were calculated using a discount rate that is I -percentage-point
lower (2.56%) or I -percentage-point higher (4.56%) than the current rate:
I% Decrease Current Discount I % Increase
(2.56%) Rate (3.56%) (4,56%)
County's total pension liability S 1.331.977 L=j. �47 LM �7�
MEEMEME=
Total Pension Liability
Service Cost
Interest on the Total Pension Liability
Assumption Changes
Benefit Payments
Net Change in Total Pension Liability
11 UM OUNIN W
KIM
Offigmam
87A) to contribute to the Hawai'i Employer -Union Health Benefits Trust Fund (the EUTF).
The EUTF is an agent, multi pie -employer defined benefit plan providing certain healthcare
and life insurance benefits to all qualified retirees, active employees, their dependents and
their beneficiaries. The EUTF was established on July 1, 2003 to design, provide, and
administer medical, prescription drug, dental, vision, chiropractic, dual -coverage medical and
prescription drug, and group life benefits.
For employees hired prior to July 1, 1996, the County pays the entire monthly healthcare
premium for employees retiring with 10 or more years of credited service, and 50% of th
monthly premium for employees retiring with fewer than 10 years of credited service. Ti
current (pay-as-you-go) premium costs are paid by the respective funds but the net other
postemployment benefit obligation is paid by the General Fund. I
For employees hired after June 30, 1996, and who retire with fewer than 10 years of service,
the County makes no contributions, For those retiring with at least 10 years but fewer than I
years of service, the County pays 50% of the retired employees' monthly Medicare or non -
Medicare premium. For employees hired after June 30, 1996, and who retire with at least 15
years but fewer than 25 years of service, the County pays 75% of the retired employees'
monthly Medicare or non -Medicare premium. For those retiring with over 25 years of servi
the County pays the entire healthcare premium.
For employees hired after June 30, 200 1, and who retire with fewer than 10 years of service,
the County makes no contributions. For those retiring with at least 10 years but fewer than 15
SEE
years of service, the County pays 50% of tile retired employees' monthly Medicare or non -
Medicare premium based on the self -plan. For employees hired after June 30, 2001, and who
retire with at least 15 years but fewer than 25 years of service, the County pays 75% of the
retired employees' monthly Medicare or non -Medicare premium; for those retiring with over
25 years of service, the County pays the entire healthcare premium.
For active employees, the employee's contributions are based upon negotiated collective
bargaining agreements. Employer contributions for employees not covered by collective
bargaining agreements and for retirees are prescribed by the HRS.
I
ttr_LCIIIIIIIC�t III UUU12,11alluc 7111.11 077'j#=T ICLCI�i U1 /-%kX*,'AI1
Statement No. 45, Accounting and Financial Reporting by Employei-sfor Postemployment
Benefits 01her than Pensions (GASB Statement No. 45). GASB Statement No. 45 addresses
the failure of previous financial reporting practices to measure and recognize tile cost of
OPEB during the periods when employees render the services or to provide relevant
information about OPEB obligations and the extent to which progress is being made in
funding those obligations. The ARC represents a level of funding that, if paid on an ongoing
basis, is projected to cover normal cost each year and amortize any unfunded actuarial
liabilities (or funding excess) over a period not to exceed thirty (30) years. The current ARC
rate is 22. 1 % of annual covered payroll.
Annual required contribution
$36,472,000
Interest on net OPEB obligation
5,391,000
Adjustment to annual required contribution
(5,033,000)
Annual OPEB Cost
36,830,000
Contributions made
(31,592,035)
Increase in net OPEB liability
5,237,965
Net OPEB liability -beginning of year
77,009,857
Net OPEB liability -end of year
$82,247,822
"J"liffiff . .
Ifflomr4d 0 . I q 9371 �11
I 1W*J 0,147AM,
The annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and th
net OPEB (asset) liability for the year ended June 30, 2017 and the preceding two years we
as follows: I
The schedule of funding progress based on the actuarial valuation date of July 1, 2015, is as
follows:
Actuarial accrued liability $466,874,000
Actuarial value of plan assets — 91,579,000
Unfunded actuarial accrued liability (URAL} $375,295,000
Funded ratio 19.6%
Covered payroll (active plan members) $159,255,000
URAL as a percentage of covered payroll 235.7%
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts
and assumptions about the probability of occurrence of events far into the future. Example
include assumptions about future employment, mortality, and the healthcare cost trend,
Amounts determined regarding the funded status of the plan and the annual required
with past expectations and new estimates are made about the future.
LTVC. dl��Vt7djTdT_V-dTfC 111 MWO - 11. 1 MEW 104114
C&STf M U1111, ML
accrued liabilities for benefits.
rojec 1C InalMal MPOI L1r1&-RJJr,**SeS are CUM* on ne 711
plan as understood by the employer and plan members) and include the types of benefits
provided at the time of each valuation and the historical pattern of sharing of benefit costs
between the employer and plan members to that point, The actuarial methods and
assumptions used include techniques that are designed to reduce short-term volatility in
actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term
perspective of the calculations.
In the July 1, 2015 actuarial valuation, the entry age non -nal cost actuarial cost method was
used. The actuarial assumptions included a 7.0% discount rate, which is based on the
County's anticipated funding level, and an annual healthcare cost trend rate of 7.0-9,0%
M=
Percentage of Annual
Fiscal Year
OPEB Cost
Net OPEB
Ended
Annual OPEB Cost
Contributed
CDbli at�ion
June 30, 2015
$32,864,000
56.8%
$65,755,197
June 30, 2016
$34,002,000
66.9%
$77,009,857
June 30, 2017
$36,830,000
85.8%
$82,247,822
The schedule of funding progress based on the actuarial valuation date of July 1, 2015, is as
follows:
Actuarial accrued liability $466,874,000
Actuarial value of plan assets — 91,579,000
Unfunded actuarial accrued liability (URAL} $375,295,000
Funded ratio 19.6%
Covered payroll (active plan members) $159,255,000
URAL as a percentage of covered payroll 235.7%
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts
and assumptions about the probability of occurrence of events far into the future. Example
include assumptions about future employment, mortality, and the healthcare cost trend,
Amounts determined regarding the funded status of the plan and the annual required
with past expectations and new estimates are made about the future.
LTVC. dl��Vt7djTdT_V-dTfC 111 MWO - 11. 1 MEW 104114
C&STf M U1111, ML
accrued liabilities for benefits.
rojec 1C InalMal MPOI L1r1&-RJJr,**SeS are CUM* on ne 711
plan as understood by the employer and plan members) and include the types of benefits
provided at the time of each valuation and the historical pattern of sharing of benefit costs
between the employer and plan members to that point, The actuarial methods and
assumptions used include techniques that are designed to reduce short-term volatility in
actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term
perspective of the calculations.
In the July 1, 2015 actuarial valuation, the entry age non -nal cost actuarial cost method was
used. The actuarial assumptions included a 7.0% discount rate, which is based on the
County's anticipated funding level, and an annual healthcare cost trend rate of 7.0-9,0%
M=
r4rGIFIRWINSWIL-MM
MTT�
initially, reduced by decrements to an ultimate rate of 5.0% after eight years. The assurriptionis
ziso include a 3.5% increase in payroll and a 3.0% inflation rate. The UAAL is being
9mortized as a level percentage of projected payroll on a closed basis. The remaining
tmortization period at July 1, 2015 for the UAAL balance varies depending on the date each
portion was established but is set to not exceed 30 years. The equivalent single amortization
period is 22.0.
The EUTF issues a publicly available financial report that includes financial statements and
required supplementary information, which is available on-line at their web -site
www.eutf.haAAU,ggv or by contacting them at P.O. Box 2121, Honolulu, Hl 96805-212 1.
a3ves are terin 7«t partpaic in Me 71 1 conip,77isation V
Hawai'i, adopted pursuant to Internal Revenue Code (IRC) section 457. The plan permits
managed by a plan administrator. The deferred compensation amounts are not available to
employees until termination, retirement, death, or unforeseeable emergency.
A] I plan assets are held in a trust fund to protect them from claims of general creditors and
frorn diversion to any uses other than paying benefits to participants and beneficiaries. The
County has no responsibility for loss due to the investment or failure of investment of funds
and assets in the plans, but does have the duty of due care that would be required of an
ordinary prudent investor. Therefore, the deferred compensation plan assets are not reported
in the accompanying basic financial statements.
MMMMMMM��
funds of $50,410,841, with bank balances of $51,709,283 were held by the County on behalf
of the Department. These balances were fully insured or collateralized with securities held by
the County's agent in the County's name,
use and is recorded as a restricted asset, Such funds amounted to $888,225 at June 30, 2017.
At June 30, 2017, the Department had $25,000,000 in investments.
99MR111WOM
11 11 1 Ill . N I
�ilUtMt LQ Irl UIC-AMIL3
acquired by the County for its water system from January 1, 1924 to December 31, 1949, less
accumulated depreciation. Acquisitions prior to 1924 and acquisitions by gift or grant prior to
1950 are not included in utility plant. Additions to utility plant since January 1, 1950 are
stated at original cost and include contributions
and customers at their cost or estimated cost. Construction costs include amounts for contract
work, engineering supervision and other direct and indirect costs. Construction period interest
is capitalized on utility plan constructed with tax-exempt debt,
1111.1110 111 gn I Ard 4 1 1101momr.] A I wI It mir-111 E I �T'A III E law4asing I r4r'M*j ywom tog I EjjI
Structures and improvements 40 to 50 years
Machinery and equipment 5 to 25 years
Water systems 10 to 40 years
111111IIII qI1111111111 I! I I! I I ; I I III; � I I� I � 1 111111 M- ► a
Utility plant in service $498,316,252
Less: accumulated depreciation 1212&40
.279
260,675,973
Preliminary survey and investigation charges 5,337,002
Construction work in progress 29,979,075
Land and rights 4,898,583
Net capital assets SMINfi-31
at June 30, 2017
are
comprised
2004 Series D at 4.5%, due through 2039
$ 212,583
2008 Series A at 4.125%, due through 2043
129,793
2010 Series A at 4.0% to 5.0%, due through 2020
1,392,500
2010 Series 13 at 3.33% to 6.1 %, due through 2030
5,340.000
"Total public improvement bonds
7,074;876
Public improvement refunding bonds;
4,744,774
2007 Series C at 4.0% to 5.0%, due through 2021
2,935,432
2016 Series 13 at 3.0% to 5.0%, due through 2026
13,497,500
2016 Series E at 2.0% to 5.0%, due through 2029
6,353,750
Revolving fund loans:
2021
State revolving fund loans, interest up to 1.37%,
5,028,479
due through 2037
33,756„825
Total long-term debt 63,618,383
Add; Unamortized premium 1,929m528
Total $ _5.54 .91 I
At June 30, 2017, future principal and interest payments for long-term debt are scheduled as
follows:
Fiscal year ending June 30:
Pringipal
Interest
"Total
2018
$ 3,964,472
$ 1,983,860
$ 5,948,332
2019
4,744,774
1,836,847
6,581,621
2020
4,920,787
1,667,775
6,588,562
2021
5,028,479
1,475,968
6,504,447
2022
5,142,560
1,276,872
6,419,432
2023
—2027
21,971,330
3,921,372
25,892,702
2028—
2032
11,790,844
1,072,178
12,863,022
2033
—2037
5,443,816
248,471
5,692,287
2038
—2042
603,508
13,010
616,518
2043
7.813
322
8.135
Contributions in Aid of Construction
The Department r g $9,310,212 of contributionsd of constructiono
year ended
c
W
r r730WITM,
liabilityClainis andjudginenis — The Department maintains property, auto liability, and general
policies. Department self-insured for workers' compensation
r other perils.
experience to outstanding claims,
Construction! The Der, obligated under construction contractsfor
utility plant and other projects.f approximated $19,594,317
June 30, 2017.
of ,. ".: `. •r .: ; f � t f!.� ;! ,M', "M t, .+ „.
net pension liability was determined by an actuarial valuation as of that date, The
contributions to the pension plan relative to projected contributions of all participating
employers,
proportion meas" II as of June 30,
For the year ended June 30, 2017, the Department recognized pension expense of $3,696,028.
At June 30, 2017, the Department reported deferred outflows of resources and deferred
inflows of resources related to pensions from the following sources:
Deferred Deferred
Outflows Inflows of
of Resources Resources
Differences between expected and actual experience $ 582,442 $ 423,337
Net difference between projected and actual investment
Earnings on pension plan investments 1,789,236 -
Changes in assumptions 5,493,487 --
Changes in proportion and differences between employer
contributions and proportionate share of contributions 2,386,904 2,018,877
Department contributions subsequent to the measurement date l ,603,278
Total 55 471=ZA=41a1A
WHO
The $1,603,278 reported as deferred outflows of resources related to the Department's
related to pensions will be recognized in pension expense as follows:
2018
1,667,202
2019
1,667,203
2020
2,015,569
2021
1,497,749
2022
962,132
, 5
Itrr r rr r r r« r > r x
liabilitythe discount rate — The following presents the Count�s proportionate share of the net pensi
< .using the discount rate of 7.00%, as well as what theCounty's
proportionate share of the net pension liability would be if it were calculated using a disco
rate that is I #ercentage-point lower (6.00%) or # `(8.00%) than the
Decreasecurrent rate:
Current Discount
■ Increase
*
Department'sproportionate
share of the net pension a i S 29.247.607", i is "!
Payables to the pensionr ,L arnount payable
totaled $134,225, which represents the employer contribution for the month of June 2017, as
required #` HRS.
Post -Retirement Benefits
'11 # ♦ ; ' +
191myri M, "T
The financial statements of the Department for the fiscal year ended June 30, 2016 included
to the fiscal year end but no service connection income was recognized. Therefore, an
adjustment was made to decrease customers' deposits and increase beginning net position by
$449,220 for the fiscal year ended June 30, 2016.
1 r
•,; d
Actuarial
$61,907
$394,633
Accrued
15,7% $130,170 255.6%
UAAL as a
Actuarial Liability
Unfunded
Percentage
Actuarial Value of (AAL) —
AAL Funded
Covered of Covered
Valuation Assets Entry Age
(UAAL) Ratio
Mayr°nll Payroll
Lute a b
(b -a) (a/b)
(c ((b-a)/c)
July 1, 2011
$61,907
$394,633
$332,726
15,7% $130,170 255.6%
July 1, 2013
$66,077
$410,182
$344,1.05
16.1% $137,810 24M%
July 1, 2015
$91,579
$466,874
$375,295
19. % $159,255 235.7®/
11 i
,-TI w -
Net Pension Liability (ERS)
Last 10 Fiscal Years
Effs to presenf-ino-r-maTiTiT-16f I I years, as of Ue measure—m-e-nf TaTe-3-1 U77.
collective net pension liability for each respective fiscal year. Additional years will be built
prospectively as information becomes available.
Imm
Proportionate
Share of the
Plan
County's
County's
Net Pension
Fiduciary Net
Proportion of
Proportionate
Liability as a
Position as a
the Net
Share of the
County's
%age of
%age of the
Measurement
Pension
Net Pension
Covered
Covered
Total Pension
Period Ended
Liability (%)
Liability ($)
Payroll
Payroll
Liability
June 30, 2016
4.6%
$618,129,088
$156,556,514
394.8%
51.2%
June 30, 2015
4.4%
$382,070,813
$149,760,317
255.1%
62.4%
June 30, 2014
4.0%
$322,626,262
$137,669,418
234.3%
63.9%
June 30, 2013
4.2%
$377,065,856
$129,153,763
292.0%
58.0%
Effs to presenf-ino-r-maTiTiT-16f I I years, as of Ue measure—m-e-nf TaTe-3-1 U77.
collective net pension liability for each respective fiscal year. Additional years will be built
prospectively as information becomes available.
Imm
Schedule of the Employer Pension Contributions (ERS)
Last Ten Fiscal Years
mum
Actual
County
Contributions
Statutorily
Contributions
Contribution
as a /®age of
Fiscal Year
Required
recognized
Deficiency
County's
Covered
Ended
Cont
11
Tune 30, 2017
$ 36,1.57,981
$ 36,157,981
$ --
$
163,626,447
22.1%
June 30, 2016
$ 34,013,001
$ 34,013,001
$ --
$
156,556,514
21.7%
June 30, 2015
$ 31,456,148
$ 31,456,148
$ --
$
149,760,317
21.0%
June 30, 2014
$ 26,503,830
$ 26,503,830
$ --
$
137,669,418
1.9.3%
June 30, 2013
$ 23,763,101
$ 23,763,101
$ --
$
129,153,763
18.4%
June 30, 2012
$ 20,884,021
$ 20,884,021
$ --
$
123,218,017
16.9%
June 30, 2011
$ 21,424,642
$ 21,424,642
$ --
$
126,714,584
16.9%
June 30, 2010
$ 22,120,137
$ 22,120,137
$ --
$
132,253,481
16.7%
June 30, 2009
$ 22,310,600
$ 22,310,600
$ --
$
133,934,674
16.7/®
June 30, 2008
$ 18,195,447
$ 18,195,447
$ --
$
126,897,194
14.3%
mum
I
IN MI 71 Ts Mirl
to — Changes of Assumptions
Amounts reported in the schedule of the proportionate share of the net pension liability as of the
measurement period ended June 30, 2016 were significantly impacted by the following changes of
actuarial assumptions:
The investment return assumption decreased from 7.65% to 7.00%
l'il*itality assym�fiiriys were- assumc+#nger lik exAzctanms ai well as
.-eflect continuous mortality improvement
mlvlafl�# 0 �%.-U
•
EVVITNOMMI
edule of Changes in Total Pension Liability (Bandsmen Pension)
Last Ten Fiscal Years
Measurement year ending 2017
June 30,
UZM123�=
Service Cost
$ 16,416
Interest on the Total
Pension Liability
36,289
Assumption Changes
(113,807)
Benefit Payments
—Iil,347)
Net Change in Total
Pension Liability
(114,449)
Total Pension Liability —
Beginning 1,261,229
Total Pension Liability —
Ending
.6,i
Covered Employee
Payroll $49,505
Total Pension Liability as
a Percentage of Covered
Employee Payroll 2,316.5%
;7,11 1 0
is pension liability for each respective fiscal year. Additional years will be built prospectively
as information becomes available.
MOM
This page: intentionally lefl blank,
NONMAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
HIGHWAY FUND - Used to account for the costs of maintaining the County's highways and streets.
Financing is provided primarily by fuel, motor vehicle weight and public utility franchise taxes.
SEWER FUND - Used to account for costs of operating the County's various sewer systems. Financing is
provided by charges to users for sewer services.
SOLID WASTE FUND — Used to accumulate moneys for the operation, maintenance, and administration of
the County's solid waste management, collection and disposal systems. Financing is provided by tipping
fees at the landfills and by disposal permit fees.
CEMETERY FUND - Used to accumulate moneys to guarantee the future maintenance of County cemetery
sites. Financing is provided from the sale of burial lots in County cemeteries.
PARKING METER FUND - Used to account for the costs of maintaining County on -street and off-street
parking areas. Financing is provided by the proceeds from parking meters.
VEHICLE DISPOSAL FUND - Used to accumulate moneys for the towing, removal, disposal and recycling
of abandoned or discarded automobiles and automobile parts. Financing is provided by annual fees
collected with motor vehicle registrations.
BIKEWAY FUND - Used to accumulate moneys for the construction of bikeways within the County.
Financing is provided by bicycle license fees.
WORKFORCE INVESTMENT ACT FUND - Used to account for employment and training services
provided to economically disadvantaged adults, dislocated workers and youth. Financing is provided by
federal grants.
GOLF COURSE FUND - Used to account for the cost of operating the Hilo Municipal Golf Course.
Funding is provided from green fees and payments from restaurant and pro shop concessionaires.
GEOTHERMAL RELOCATION AND COMMUNITY BENEFITS FUND - Used to account for the County's
share of geothermal resource royalties received from the operator of a geothermal power plant located in the
County. The funds are earmarked for a geothermal relocation program and to benefit the lower Puna area.
BEAUTIFICATION FUND - Used to accumulate moneys for the beautification of highways and disposal of
abandoned vehicles within the County. Financing is provided by assessments on vehicle registrations.
HAWAII COUNTY HOUSING AGENCY- Used to account for Federal and County moneys used to provide
public housing assistance within the County.
PARK DEDICATION FUND - Used to account for moneys deposited with the County by subdividers to
provide land for parks and playgrounds in subdivisions.
DEBT SERVICE FUND
INTEREST FUND - Used to accumulate moneys for payment of interest on general obligation bonds.
Moneys required to service interest maturities are transferred annually from the General Fund.
This page intentionally left blank
COUNTY OF HAWAII
Nontttajor Governmental Funds
Combining Balance Sheet
June 30, 2017
Deferred Inflows of Resources
Unavailable Revenue -
Fund balances:
Restricted for:
Debt service -
Highways, streets and abandoned vehicles 6,814,624
Rental assistance and subsidy -
Committed to:
Sanitation -
Highways, streets and abandoned vehicles -
Rental assistance and subsidy -
Cemetery -
Golf course -
Lower Puna area -
Parks and recreational projects -
Total fund balances 6,814,624
Total liabilities, deferred inflows
1,235,896 1,260,770 -
7,846,436 8,628,463 -
- - 130,659
7,846,436 8,628,463 130,659
261,634
261,634
and fund balances $ 9,275,695 $ 9,963,351, $13,431,280 $130,659 $261,634
Special Revenue Funds
Solid
Parking
Highway
Sewer
Waste
Cemetery Meter
Fund
Fund
Fund
Fund Fund
Assets
Cash and cash equivalents
5 7,930,984
5 8,512,262
$11,727,077
$130,659 $ 261,634
Investments
-
-
-
- -
Imprest fund
-
400
250
-
Receivables:
Due from other governments
1,194,653
11,033
392,945
- -
Due from other governmental funds
150,058
202,410
174
- -
Due from other nongovernmental funds
-
1,350
-
- -
Trade, net of allowance for doubtful accounts
-
1,235,896
1,260,770
- -
Real estate held for sale
-
-
-
- -
Other
-
-
50,064
-
1,344,711
1,450,689
1,703,953
- -
Total assets
5 9,275,695
$ 9,963,351
$13,431,280
5130,659 $ 261,634
Liabilities, Deferred Inflows and Fund Balances
Liabilities:
Accounts payable
$ 1,055,434
$ 238,216
$ 2,513,904
$ - $
Accrued payroll
504,397
188,088
375,764
- -
Due to other governmental funds
662,010
375,470
640,361
- -
Advance Collections -Intergovernmental
238,270
-
11,998
- -
Other
960
79,245
20
- -
Totalliabilities
2,461,071
881,019
3,542,047
- -
Deferred Inflows of Resources
Unavailable Revenue -
Fund balances:
Restricted for:
Debt service -
Highways, streets and abandoned vehicles 6,814,624
Rental assistance and subsidy -
Committed to:
Sanitation -
Highways, streets and abandoned vehicles -
Rental assistance and subsidy -
Cemetery -
Golf course -
Lower Puna area -
Parks and recreational projects -
Total fund balances 6,814,624
Total liabilities, deferred inflows
1,235,896 1,260,770 -
7,846,436 8,628,463 -
- - 130,659
7,846,436 8,628,463 130,659
261,634
261,634
and fund balances $ 9,275,695 $ 9,963,351, $13,431,280 $130,659 $261,634
339,307 $ 13,903 $ $ 1,580 $
4,648 - 47,509
81,013 270,960 2,346
424,968 13,903 270,960 51,435
621,889
569 $ 16,911 $ 79,271 $ -
155,239 -
268 184,791 -
176,284
569 17,079 595,585
29,71
642,719 -
- 1,514,153
8,459,970 -
- 1,219,449
74,719
- 4,087,297 -
88,426
8,459,970 621,889 74,719 4,087,297 642,719 2,733,602 88,426
$8,884,938 $635,792 $ 270,960 $ 126,154 $4,087,866 $ 659,798 $ 3,358,905 $ 88,426
(Continued)
SpecW Revenue Funds
Golf
Geothermal Relo.
Beauti-
Hawaii County
Park
Disposal
Bikeway
InnvdtfonE
Course
& Communay
fication
Housing
Dedication
Fund
Fund
0
2j- �Aa f.,Ld_
Fund
Benefins Fund
Fund
enc
Fund
$8,884,938
$635,792
$
$ 123,650
$3,540,621
$ 659,798
$3,124,412
$ 27,768
-
-
-
-
60,658
2,000
800
-
231,966
-
166,009
37,352
-
-
402,551
-
38,994
504
144,694
30,332
-
270,960
504
- 547,245
233,693,
$8,884,938
$635,792
$ 270,960
$ 126,154
$4,087,866
$ 659,798
$3,358,905
$ 88,426
339,307 $ 13,903 $ $ 1,580 $
4,648 - 47,509
81,013 270,960 2,346
424,968 13,903 270,960 51,435
621,889
569 $ 16,911 $ 79,271 $ -
155,239 -
268 184,791 -
176,284
569 17,079 595,585
29,71
642,719 -
- 1,514,153
8,459,970 -
- 1,219,449
74,719
- 4,087,297 -
88,426
8,459,970 621,889 74,719 4,087,297 642,719 2,733,602 88,426
$8,884,938 $635,792 $ 270,960 $ 126,154 $4,087,866 $ 659,798 $ 3,358,905 $ 88,426
(Continued)
COUNTY OF HAWAII
Nonmajor Governmental Funds
Combining Balance Sheet
June 30, 2017
Debt Service Fund
Total
Nonmajor
Interest
Governmental
Fund
Funds
,assets
Cash and cash equivalents
$2,663,185
$ 48,222,780
Investments
60,658
Imprest fund
3,450
Receivables:
Clue from other governments
-
1,996,606
Due from other governmental funds
-
389,994
Clue from other nongovernmental funds
-
1,350
Trade, net of al lowance for doubtful accounts
-
2,496,666
Real estate held for sale
-
402,551
Other
-
264,588
-
5,551,755
Total assets
$2,663,185
$ 53,838,643
Liabilities, Deferred Inflows and Fund Balances
Liabilities:
Accounts payable
$ -
$ 4,258,995
Accrued payroll
-
1,275,645
Due to other governmental funds
-
2,217,219
Advance Collections -Intergovernmental
-
250,268
Other
63,199
319,708
Total liabilities
63,199
8,321,835
Deferred Inflows of Resources
Unavailable Revenue
-
2,526,384
Fund balances:
Restricted for:
Debt service
2,599,986
2,599,986
Highways, streets and abandoned vehicles
-
8,079,232
Rental assistance and subsidy
-
1,514,153
Committed to:
Sanitation
-
16,474,899
Highways, streets and abandoned vehicles
-
8,721,604
Rental assistance and subsidy
-
1,219,449
Cemetery
-
130,659
Golf course
-
74,719
Lower Puna area
-
4,087,297
Parks and recreational projects
-
88,426
Total fund balances
2,599,986
42,990,424
Total liabilities, deferred inflows
and fund balances
$2,663,185
53,838„643
See accompanying independent auditors' report.
- 112-
This, page intentiOMAY left b1mik,
E�
COUNTY OF HAWAII
Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
For the Fiscal Year Ended June 30, 2017
Revenues
Fueltaxes
Public utility franchise taxes
Licenses and permits
Intergovernmental
Charges for services
Investment earnings (loss)
Other
Total revenues
Expenditures
Current:
General Government
Public safety
Highways and streets
Health, education and welfare
Culture and recreation
Sanitation
Pension and retirement contributions
Employees' health insurance
Other
Debt service:
Principal
Interest
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other Financing Sources (Uses)
Transfers in
Increases in capital leases
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
7,451,863
Special Revenue Funds
17,274,718
Solid
Parking
Highway
Sewer
Waste
Cemetery
Meter
Fund
Fund
—.Fund
Fund
Fund
$ 8,288,676
$
S m
$
$
7,950,750
-
475,927
-
12,128
11,773,233
30,389
28,801,296
8,830,204
1,063,102
- -
288,840
_I1,015,33J5
.(?0,3232914
-
7,784,565
9,305,944
18,679,575
12,997
405,693
30,304
1,560,567
11,750
,952,825
29,481,454
7,814,869
11,155,351
11,750
12,997
7,451,863
17,274,718
-
7,733,585
28,148,574
- -
2,165,352
743,621
1,508,164
- -
1,024,730
270,192
704,852
- -
717,956
82,806
611,359
- -
154,549
-
475,927
-
12,128
-
30,389
28,801,296
8,830,204
31,479,265
- -
680,158
_I1,015,33J5
.(?0,3232914
11,750 12,997
10,000
2,120,785
18,679,575
8,233
-
1,413,164
,952,825
-
... 3,934,592)
2,120,785
20,092,739
- --
(3,254,434)
1,105,450
(231,175)
11,750 12,997
10,0697058
6,740,986
8,859,638
118,909 248,637
$ 6,814,624
$ 7,846,436
$ 8,628,463
$ 130,659 $261,634
---V-ehicle
Special Revenue Funds
WorkfDrce
Golf
Geothennal RCIOC
Beauti-
Hawaii County Park,
Disposal
Bikeway
Innovation &
Course
acommumn
fioutiom
Housing Dedication
Fund
Fund
_0 en Aci Lund_
Fund
Benefits Fund
Fund
���f�Fumd
-
2,282,664
-
77,621
-
'
-
-
-
-
-
190,220
- -
- -
~
-
1,021.604
-
-
-
19^017,328 -
2.724
-
-
585,557
-
-
- -
'
-
'
-
-
-
3,831 15
B
----
-
----
~
-----
-
----
||
-----
-
-----
9 -
-----'
2,299,165
77,621
505,557
1,113,208
190,22020,001,17615
-
-
-
-
1, 141,202
^
85/604
-
-
-
188,840
- ^
-
-
1,021,604
-
^
-
21,831,642 '
-
'
-
936,033
^
127,948
- -
1,704,359
-
-
_
,
_
_ _
17,73*
~
-
105,096
-
~
656,346 -
16,549
-
'
186,362
-
-
282,868 -
'
-
-
2,347
-
-
- -
- - ~ - - - 4,959 '
- - - - ~ - 525 -
1,738,646 85,604 1,021,604 1,230,638 1,141,202 316,780 22,776,340
- - ~ 477,519 ' - 1,572,396 -
- - ~ ' - - 38,967 '
- - - - - ' - -
- - ~77 ^ - l -
----- ---- ---- ---- -----` ---- ------ ----'
560,519 (7,983) ' (167'562) (27,994) (126.560) (1,183,801) 15
7,899,451639,872 �_ 242,281 4,115,291769,2793,897,40388,411
$8,459,970 �S 02/ 8@9 S S 74,719 $ 4,087,297 $ 642,719
,733,� ,�
(Continued)
COUNTY OF HAWAII
Nonrnajor Governmental Funds
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
For the Fiscal Year Ended June 30, 2017
s
See accompanying independent auditors' report.
Debt Service Fund
Total
Nonmajor
Interest
Governmental
Fund
Funds
Revenues
Fuel taxes
$ -
8,288,676
Public utility franchise taxes
-
7,950,750
Licenses and permits
-
14,323,738
Intergovernmental
388,011
21,778,885
Charges for services
-
17,691,787
Investment earnings (loss)
-
3,846
Cather
-
4,1 15,316
Total revenues
388,011
74,152,998
Expenditures
Current
General Government
-
1,141,202
Public safety
-
7,451,863
Highways and streets
-
17,549,162
Health, education and welfare
-
22,853,246
Culture and recreation
-
1,063,973
Sanitation
-
37,586,518
Pension and retirement contributions
-
5,277,117
Employees` health insurance
-
2,405,553
Cather
-
1,414,468
Debt service:
Principal
-
635,435
Interest
17,154,756
17,197,798
Total expenditures
17,154,756
114,576,335
Excess (deficiency) of revenues
over (under) expenditures
16,766,745)
(40,423,337)
Other Financing Sources (Uses)
Transfers in
16,275,431
39,135,706
Increases in capital leases
-
1,460,364
Transfers out
_ 3,952,825
Total other financing sources (uses)
16,275,431
36,643,245
Net change in fund balances
(491,314)
(3,780,092)
Fund balances at beginning of year
3,091,300
46,770,516
Fund balances at end of year
$ 2,599,986
$ 42,990,424
See accompanying independent auditors' report.
Budget and Actual (Budgetary
rXIMrt. 4 w
Revenues:
Taxes:
Fuel taxes
Public utility franchise taxes
Total taxes
Licenses and permits - motor vehicle weight taxes
1ntergoverrimental
Charges for services
Other
Expenditures:
General government
Public safety - protective inspection
Public safety - traffic engineering
Highways and streets
Highways and streets - mass transit
Pension and retirement contributions
Employees' health insurance
Cather
Excess (deficiency) of revenues over (under)
expenditures
Actual Variance
Original Final (Budgetary Positive
Bud et Budget Basis) (Ne ative)
$ 7,800,000
$ 7,800,000
7,934,224
$ 134,224
9,100,000
9,100,000
7,950,750
(1,149,250)
16,900,000
16,900,000
15,884,974
(1,015,026)
11,100,000
11,100,000
11,773,233
673,233
1,503,567
1,590,036
1,053,719
(536,317)
500,000
500,000
324,792
(175,208)
74,399
74,399
80,901
6,502
30,077,966
30,164,435
29,117,619
(1,046,816)
11,000
11,000
2,102
8,898
8,293,279
8,389,748
7,489,429
900,319
12,261,132
12,261,132
9,406,925
2,854,207
7,400,000
7,400,000
7,056,390
343,610
2,497,650
2,347,650
2,163,307
184,343
1,100,000
1,100,000
1,025,593
74,407
854,000
1,004,000
709,698
294,302
32,417,061
32,513,530
27,853,444
4,660,086
(2,339,095)
(2,349,095)
1,264,175
3,613,270
Other financing sources (uses) - transfers in (out) -
Transfers in - General Fund - 10,000 10,000 -
Transfers out - Capital Projects Fund (3,500,000) (3,720,566) (3,646,708) 73,858
tinder expenditures
10,069,058 10,069,058 10,069,058
balanceFund
See accompanying independent auditors' report.
COUNTY OF HAWAII
Mzr�J
Schedule of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual (Budgetary Basis)
MMM
See accompanying independent auditors' report.
MR -IN
Actual
Variance
Original
Final
(Budgetary
Positive
budget
Budget
Basis)
egative)
Revenues:
Charges for services - sewer fees
$7,371,924
S 7,371,924
$7,784,565
S 412,641
Other
-
30,304
30,304
Total revenues
7,371,924
7,371,924
7,814,869
442,945
Expenditures:
Sanitation
10,108,110
10,108,110
8,698,771
1,409,339
Pension and retirement contributions
884,600
847,600
739,745
107,855
Employees' health insurance
306,000
306,000
268,963
37,037
Other
550,000
587,000
76,578
510,422
Total expenditures
11,848,710
11,848,710
9,784,057
2,064.,653
Deficiency of revenues under expenditures
(4,476,786)
(4,476,786)
(1,969,188)
2,507,598
Other financing sources:
Transfers in - General Fund
2,120,785
2,120,785
2,120,785
-
Excess (deficiency) of revenues and other
sources over (under) expenditures
(2,356,001)
(2,356,001)
151,597
2,507,598
Fund balance at beginning of year
6,740,986
6,740,986
6,740,986
-
Fund balance at end of year
$ 4,384,985
$ 4,384,985
$ 6,892,583
=M=�
$ 2,507,598
See accompanying independent auditors' report.
MR -IN
COUNTY OF HAWAII
Solid Waste Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance 4
Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended ,lune 30, 2017
Revenues:
Intergovernmental
Charges for services - tipping fees
Other
Total revenues
Expenditures:
Sanitation
Pension and retirement contributions
Employees' health insurance
Other
Total expenditures
Deficiency of revenues under expenditures
Other financing sources:
Transfers in - General Fund
Excess (deficiency) of revenues and other
sources over (under) expenditures
Fund balance at beginning of year
Fund balance at end of year
Actual
Original Final (Budgetary
Budget Budget Basis)
S 428,013
428,013
$ 295,001
8,507,450
8,507,450
9,305,944
247,212
247,212
1,560,567
9,182,675
9,182,675
11,161,512
28,5 91,211
28,541,211
1,548,200
1,505,200
770,000
704,000
471,000
630,000
31,380,411
31,380,411
(22,197,736)
(22,197,736)
Variance
Positive
Negative)
26,167,821 2,373,.90
1,505,1 19 81
703,464 536
597,591 32,409
4,385,253
$ 4,385,253
867,092
8,859,638
8,859,638
8,859,638
t
4,385,253
$ 4,385,253
COUNTY OF HAWAII
Cemetery Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended June 30, 2017
Revenues - other - sale of cernetery plots
Expenditures - health, education and welfare
Excess of revenues over expenditures
Fund balance at beginning of year
Fund balance at end of year
MKM
Actual
Variance
Original
Final
(Budgetary
Positive
Budget
E�et
is)
(Negative
S 10,000
$ 10,000
$ 11,750
$ 1,750
10,000
10.000
-
10,000
-
-
11,750
11,750
118,909
118,909
118,909
-
S 118,909
S 118,909
S 130,659
$ 11,750
MKM
COUNTY OF HAWAII
Parking Meter Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended June 30, 2017
Revenues - Charges for services - highways and streets
Excess of revenues over expenditures
-cFT-gfT7mTg-m y7ar
rFund balance at end of year
See accompanying independent auditors' report.
Actual Variance
Original Final (Budgetary Positive
Budget Bud et _Basis) (Ne native)
$ $ 12,997 S 12,997
12,997 12,997
248,637 248,637 248,637 -
S 248,637 $ 248,637 $ 261,634 $ 12,997
Schedule of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended June 30, 2017
Actual Variance
Original Final (Budgetary Positive
Budget BudgetBasis} (Negative)
Licenses and permits _ vehicle disposal fee
$2,178,552
$ 2,178,552
5 2,282,664 $
104,112
Charges for services - towing charges
1,000
1,000
2,724
1,724
Miscellaneous
12,500
12,500
13,778
1,278
Total revenues
2,192,052
2,192,052
2,299,166
107,114
Sanitation
5,282,563
5,282,563
1,466,479
3,816,084
Pension and retirement contributions
29,273
29,273
17,419
11,854
Employees' health insurance
24,000
24,000
16,504
7,496
Cather
2,000
2,000
2,000
Total expenditures
5,337,836
5,337,836
1,500,402
3,837,434
Excess (deficiency) of revenues
over (under) expenditures
(3,145,784)
(3,145,784)
798,764
3,944,548
Fund balance at beginning of year
7,899,451
7,899,451
7,899,451
-
Fund balance at end of year
$4,753,667
S 4,753,667
S 8,698,215
$ 3,944,548
See accompanying independent auditors` report.
KOIRMFWAMMYAM AM
GM, Z M �1,
Schedule of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended June 30, 2017
Revenues - licenses and permits - bicycle tax
Expenditures - highways and streets
Excess (deficiency) of revenues over (under)
expenditures
Fund balance at beginning of year
Fund balance at end of year
See accompanying independent auditors' report.
Actual
Original Final (Budgetary
_j
Budget Budget Basis)
$ 75,000
$ 75,000
$ 77,621
102,495
102,495
24,780
(27,495)
(27,495)
52,841
629,872
629,872
629,872
$602,377
$602,377
$682,713
Variance
Positive
(Negative)
$ 2,621
77,715
80,336
$80,336
COUNTY OF HAWAII
Workforce Innovation & Opportunity Act Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended June 30, 2017
Actual Variance
Original Final (Budgetary Positive
Bud et Budget Basis) (Negative)
Revenues - intergovernmental - federal grants $ $ $
Expenditures - health, education and welfare
Excess of revenues over expenditures
Fund balance at beginning of year
Fund balance at end of year $ $ $
See accompanying independent auditors' report.
COUNTY OF HAWAII
Golf o rse Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance -
Eudget and Actual (Budgetary Basis)
For the Fiscal Year Ended June 30, 2017
Actual Variance
Original Final (Budgetary Positive
fludget u�et Basis) (Negative)
Revenues:
Charges for services s 596,400 s 596,400 $ 585,557 $ (10,843)
Culture and recreation
1,020,918
1,020,918
932,877
88,041
Pension and retirement contributions
200,270
200,270
185,1.64
15,106
Employees' health insurance
114,504
114,504
106,324
8,180
Other
11,131
11,131
2,346
8,785
-Total expenditures
1,346,823
1,346,823
1,226,711
120,112
Deficiency of revenues under expenditures
(750,423)
(750,423)
(641,154)
109,269
Other financing sources:
Transfers in - General Fund
477,519
477,519
477,519
-
Excess of revenues and other sources
over expenditures
(272,904)
(272,904)
(163,635)
109,269
Fund balance at beginning of year
242,281
242,281
242,281
-
Fund balance at end of year
s (30,623)
S (30,623)
78,646 $
109,269
COUNTY OF HAWAII
I C1114 I'll 4 L
Schedule of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended June 30, 2017
Revenues
Miscellaneous:
Geothermal royalties
Sale of real property
Total revenues
Expenditures:
General government:
Planning and zoning
Excess (deficiency) of revenues over
(under) expenditures
Fund balance at beginning of year
Fund balance at end of year
Actual Variance
Original Final (Budgetary Positive
Budget t et Basis) (Negative)
$ 600,000 $ 600,000 $ 360,850 $ (239,150)
706,225 706,225
600,000 600,000 1,067,075 467,075
1,700,000 1,700,000 823,005 876,995
(1,100,000) (1,100,000) 244,070 1,344,070
4,115,291 4,115,291 4,115,291 -
S 3,015,291 $3,015,291 $ 4,359,361 $ 1,344,070
COUNTY OF HAWAII
Beautification Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended June 30, 2017
See accompanying independent auditors' report.
Actual
Variance
Original
Final
(Budgetary
Positive
B�et
�et
Basis)2L
_ egLt �ve)
Revenues ® licenses and permits - highway
beautification
S 182,000
S 182,000
190,220
$ 8,220
Expenditures:
Highways and streets
179,800
179,800
178,800
1,000
Culture and recreation
131,300
131,300
112,762
18,538
Total expenditures
311,100
311,100
291,562
19,538
Deficiency of revenues under expenditures
(129,100)
(129,100)
(101,342)
27,758
Fund balance at beginning of year
769,279
769,279
769,279
Fund balance at end of year
S 640,179
$ 640,179
S 667,937
$ 27,758
See accompanying independent auditors' report.
C(JlJ1*ITY OF HAWAII
�chedule of Revenues, Expenditures,and Changes in Fund
Budget and Actual (Budgetary Basis)
Revenues:
Intergovernmental -
Federal - HUD - Voucher program
Investment earnings
Resale of property
Other
Expenditures:
Health, education and welfare
Pension and retirement contributions
Employees' health insurance
Total expenditures
,actual Variance
Original Final (Budgetary Positive
Budget et iasis) (Negative)
$ 16,288,452
19,288,452
$ 19,047,155
$ (241,297)
1,609
1,609
3,831
2,222
®
-
98,883
98,883
68,744
68,744
528,914
460,170
16,358,805
19,358,805
19,678,783
319,978
over (under) expenditures
(185,993)
17,300,197
20,308,197
19,871,908
436,289
713,198
713,198
654,719
58,479
342,299
342,299
282,429
59,870
18,355,694
21,363,694
20,809,056
554,638
Deficiency of revenues under expenditures
(1,996,889)
(2,004,889)
(1,130,273)
874,616
Other financing sources ® transfers in -
Transfers in ® General Fund
1,810,896
1,818,896
1,572,396
(246,500)
Excess (deficiency) of revenues and other sources
over (under) expenditures
(185,993)
(185,993)
442,123
628,116
Fund balance at beginning of year
3,897,403
3,897,403
3,897,403
-
und balance at end of year $
3,71 1,410
$ 3,71 1,410
$ 4,339,526
$ 628,116
COUNTY OF HAWAII
Park Dedication Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended June 30, 2017
Revenues - investment earnings
Excess of revenues over expenditures
Fund balance at beginning of year
Fund balance at end of year
See accompanying independent auditors' report.
Actual Variance
Original Final (Budgetary Positive
Bud
_.!j�et Budget __.Basis) (Negative)
S S 760 S 760
760 760
88,411 88,411 88,411
S 88,411 $ 88,411 89,171 $ 760
OF=
Cash and cash equivalents
Investments
Due from other agency funds
Other receivables
Total assets
I=
Agency Funds
Combining Statement of Agency Funds Net Position
June 30, 2017
State
Improvement
Improvement
Improvement
and
Weight
District
District
District
Refundable
Tax
No, 18
No. 19
Revolving
Deposits
Fund
Fund
Fund
Fund
Fund
$1,980,809 $ 478,889 $ 255,131 $ 5,627 $ 357,693
- 252,935 167,995 -
4,252 1,556 105
-T1,980,809 —i-483,141 $ 509,622 $ 17-3,622 7--335-7,798
Due to other agency funds $ - S - $ - $ $ 2,925
Accrued liabilities 1,980,809 6,009 3,956 -
Advances payable - 13,737 13,069 - 354,873
Assets field for the benefit of
improvement districts 463,395 492,597 173,622
Total liabilities $1,980,809 $ 483,141 $ 509,622 $ 173,622 $ 357,798
See accompanying independent auditors' report.
S 698 S - $ - S - S - $ - $ 3,623
516,048 354,875 335,428 1,025 1,160 333 3,199,643
_ - - - 381,679
3,292 •1
S 516,746 354,875 335,429
1,0251,160 3,625 S 4,717,851
Non -Profit
Organ and
Business
Payroll
Flexible
Lapsed
license
Tissue
Improvement
Clearance
Spending
Warrants
Plates
Education
District
Fund
Account
Fund
Fund
Fund
I - Kailua
'Total
S 85,426
S 354,875
S 323,234
S 1,025
S 1,160
55
$ 3,843,924
-
-
-
-
-
420,930
-
-
3,623
-
3,623
431,320
-
8,571
-
-
3,570
449,374
$ 516,746
S 354,875
S 335,428
S 1,025
S 1,160
$ 3,625
$ 4,717,851
S 698 S - $ - S - S - $ - $ 3,623
516,048 354,875 335,428 1,025 1,160 333 3,199,643
_ - - - 381,679
3,292 •1
S 516,746 354,875 335,429
1,0251,160 3,625 S 4,717,851
State eight'rax Fund
Assets
Cash and cash equivalents
Liabilities
Vouchers payable
Accrued liabilities - due to State of Hawaii
r
Improvement District No. 18 Fund
Assets
Cash and cash equivalents
Other receivables
Total assets
Liabilities
Vouchers Payable
Due to other non -agency funds
Accrued liabilities
Advances payable
Assets held for the benefit
of improvement districts
UZZIM
Improvement District No. 19 Fund
Assets
Cash and cash equivalents
Investments
Other receivables
Total assets
fit►
Vouchers Payable
Due to other non -agency funds
Accrued liabilities
Advances payable
Assets held for the benefit
of improvement districts
Total liabilities
A
WIN T
Balance Balance
July 1, June 30,
2016 Additions Deductions 2017
23,784,953
1,933,982 23,858,979 23,812,152 1,980,809
402,107
243,426
6 4 { .
478,889
3,684
258,713
t ,145
4,252
$ - $ 889 S 889 $ -
1,878 1,757 1,878 1,757
3,683 206,509 205,940 4,252
14,626 13,737 14,626 13,737
385,604 205,848 128,057 463,395
A „ 1
$ 222,675 $ 101,800 $ 69,344 $ 255,131
258,205 - 5,270 252,935
4,312 80,301 83,057 1,556
S 485,192 $ 182,101 $ 157,671 $ 509,622
$ - $ 7,133 S 7,133 $ -
2,540 2,400 2,540 2,400
4,312 80,301 83,057 1,556
6,580 13,069 6,580 13,069
471,760 88,731 4.;IV 492,597
w $ 509,622
COUNTY OF HAWAII
Performance and Refundable
Deposits Fran
Assets
Cash and cash equivalents $ 258,758 $ 554,970 455,045 $ 357,593
Clue from other non -agency funds 1,500 105 1,500 105
Total assets $ 250,358 $ 555,075 $ 457,545 $ 357,798
RIMM
Vouchers payable $ - $ 454,857 $ 454,857 $
Due to other agency funds 5,678 2,925 5,578 2,925
Advances payable 254,590 559,450 459,267 354,873
Total liabilities $ 260,368 $ 1,017,242 $ 919,812 $ 357,798
Payroll Clearance Fun
Assets
Cash and cash equivalents $ 470,978 $ 281,895,652 $ 282,281,204 $ 85,426
Clue from other non -agency funds 271,558,809 271,558,809 -
Other receivables 2,179 429,141 - 431,320
Total assets $ 473,157 $ 553,883,602 $ 553,840,013 $ 516,746
{
Vouchers payable $ - $ 134,322,557 $ 134,322,557 $ -
Due to other agency funds 177 3,035 2,514 698
Accrued liabilities 472,980 299,346,752 299,303,684 516,048
Total liabilities $ 473,157 $ 433,672,344 $ 433,628,755 $ 516,746
Balance
Balance
July 1,
June 30,
2015
Additions
Deductions
2017
Improvement [district Revolving Frond
Assets
Cash and cash equivalents
$ 3,535
$ 2,091
$ -
$ 5,527
Investments
170,055
-
2,051
157,995
Total assets
$ 173,592
$ 2,091
$ 2,051
$ 173,522
Liabilities
Assets held for the benefit
of improvement districts
$ 173,592
$ 2,091
$ 2,051
$ 173,522
Performance and Refundable
Deposits Fran
Assets
Cash and cash equivalents $ 258,758 $ 554,970 455,045 $ 357,593
Clue from other non -agency funds 1,500 105 1,500 105
Total assets $ 250,358 $ 555,075 $ 457,545 $ 357,798
RIMM
Vouchers payable $ - $ 454,857 $ 454,857 $
Due to other agency funds 5,678 2,925 5,578 2,925
Advances payable 254,590 559,450 459,267 354,873
Total liabilities $ 260,368 $ 1,017,242 $ 919,812 $ 357,798
Payroll Clearance Fun
Assets
Cash and cash equivalents $ 470,978 $ 281,895,652 $ 282,281,204 $ 85,426
Clue from other non -agency funds 271,558,809 271,558,809 -
Other receivables 2,179 429,141 - 431,320
Total assets $ 473,157 $ 553,883,602 $ 553,840,013 $ 516,746
{
Vouchers payable $ - $ 134,322,557 $ 134,322,557 $ -
Due to other agency funds 177 3,035 2,514 698
Accrued liabilities 472,980 299,346,752 299,303,684 516,048
Total liabilities $ 473,157 $ 433,672,344 $ 433,628,755 $ 516,746
COUNTY OF HAWAII
Agency Funds
Combining Statement of Changes in Assets and Liabilities
For the Fiscal Year Ended June 30, 2017
Flexible Spending Account
Assets
Cash and cash equivalents
Liabilities
Accrued liabilities
Lapsed Warrants Fund
Assets
Cash and cash equivalents
Due from other agency funds
Other receivables
Total assets
Liabilities
Vouchers payable
Accrued liabilities
Total liabilities
Non -Profit License Plates Fund
Assets
Cash and cash equivalents
Liabilities
Vouchers payable
Accrued liabilities:
Due to non-profit agency
Total liabilities
Organ and Tissue Education Fund
Assets
Cash and cash equivalents
Liabilities
Vouchers payable
Accrued liabilities - due to State of Hawaii
Total liabilities
Balance Balance
July 1, June 30,
2016 Additions Deductions 2017
$ 355,731 $ 357,701 $ 358,557 $ 354,875
$ 355,731 $ 357,701 $ 358,557 S 354,875
S 311,363 $
12,051 $
180
323,234
5,855
3,623
5,855
3,623
6,073
8,571
6,073
8,571
S 323,291 S
24,245 $
12,108
$ 335,428
180 $ -
323,291 20,477 8,340 335,428
323,291 $ 20,657 $ 8,520 $ 335,428
S 1,125 S 4,550 $ 4,650 S 1,025
$ - $ 4,650 $ 4,650 $ -
1,125 4,550 4,650 1,025
9,200 $ 9,300
S 1,115 S 4,456 S 4,411 S 1,160
$ - $ 3,579 $ 3,579 $ -
1,115 4,456 4,411 1,160
S 1,115 S 8,035 $ 7,990 $ 1,160
COUNTY OF HAWAII
Agency Funds
Combining Statement of Changes in Assets and Liabilities
For the Fiscal Year Ended June 30, 2017
Balance Balance
July 1, June 30,
2016 Additions Deductions 2017
Business Improvement District I-Kailua
Assets
Cash and cash equivalents
$ 811
$ 810,275
$ 811,031
55
Other receivables - BID I-Kailua Assessment
22,156
794,436
813,300
3,292
Due from other non -agency funds
2
856
580
278
Total assets
$ 22,969
$ 1,605,567
$ 1,624,911
3,625
Liabilities
Vouchers payable
$ -
$ 809,652
$ 809,652
$ -
Accrued liabilities - due to KVBID
516
333
516
333
Due to other non -agency funds
297
817
1,114
-
Assets held for the benefit
of improvement districts
22,156
784,525
803,389
3,292
Total liabilities
$ 22,969
$ 1,595,327
$ 1,614,671
$ 3,625
Total - All Agency Funds
Assets
Cash and cash equivalents
$3,962,191
$ 307,840,195
$ 307,958,462
$3,843,924
Investments
428,261
-
7,331
420,930
Due from other agency funds
5,955
3,623
5,855
3,623
Due from other non -agency funds
1,602
271,559,770
271,560,989
383
Other receivables - BID I-Kailua Assessment
22,156
794,436
813,300
3,292
Other receivables
16,248
776,726
347,275
445,699
Total assets
$4,436,313
$ 580,974,750
$ 580,693,212
$4,717,851
Liabilities
Vouchers payable
$ -
$ 159,388,460
$ 159,388,460
$ -
Due to other agency funds
5,855
5,960
8,192
3,623
Due to other non -agency funds
4,715
4,974
5,532
4,157
Accrued liabilities
1,159,997
300,011,740
299,959,578
1,212,159
Accrued liabilities - due to non-profit agency
1,125
4,550
4,650
1,025
Accrued liabilities - due to State of Hawaii
1,935,097
23,863,435
23,816,563
1,981,969
Accrued liabilities - due to KVBID
516
333
516
333
Advances payable
275,896
586,256
480,473
381,679
Assets held for the benefit
of improvement districts
1,053,112
1,081,195
1,001,401
1,132,906
Total liabilities
$4,436,313
$ 484,946,903
$ 484,665,365
$4,717,851
• rs III TIMM •. I
Assets
Cash and cash equivalents
Investments
Total assets
Net Position
Held in trust for other parties
Total net position
RMINumdm�N �
Private Purpose Trusts
ummmd�
$__2,286,872 S 2,491,464 $ 4,778,336
$ 2,286,872 $ 2,491,464 $ 4,778,336
Shippers'
Total
Geothennal
Wharf
Private
Asset
Trust
Purpose
—Fund
Fund
Trusts
S 743,344
$ 944,701
1,688,045
— 1,543,528
1,546,763
3,090,291
$ 2,286,872
$ 2,491,464
$ 4,778,336
$__2,286,872 S 2,491,464 $ 4,778,336
$ 2,286,872 $ 2,491,464 $ 4,778,336
Me"AMBRAMMA
Private Purpose Trusts
Combining Statement of Changes in Private Purpose Trust Net Position
For the Fiscal Year Ended June 30, 2017
Additions
Contributions:
Puna Geothermal Venture
Investment earnings:
Net increase (decrease) in fair value of
investments
Dividends
Interest
Total additions
Deductions
Claims Consultant
Grant payments
Investment Fees
Total deductions
Change in net position
Net position, beginning of year
Net position, end of year
See accompanying independent auditors' report.
Shippers'
Total
Geotherrnal
Wharf
Private
Asset
Trust
Purpose
Fund
Fund
Trusts
$ 50,000
$ -
$ 50,000
(18,942)
78,566
59,624
-
33,585
33,585
19,345
939
20,284
50,403
113,090
163,493
1,526
-
1,526
-
125,794
125,794
-
13,144
13,144
1,526
13 8,93 8
140,464
48,877
(25,848)
23,029
2,237,995
2,517,312
4,755,307
$ 2,286,872
2,491,464
$4,778,336
This, page inte!ntionally lei! lan,k,
SWIN
STATISTICAL SECTION
(UNAUDITED)
Contents
Page
Financial Trends — These schedules contain trend information to help help the reader understand
how the County's financial performance and well-being have changed over time. 139
Revenue Capacity— These schedules contain information to help the reader assess the County's
most significant local revenue source, the property tax. 144
Debt Capacity — These schedules present information to help the reader assess the affordability of
the County's current levels of outstanding debt and the County's ability to issue additional debt in
the future. 150
Demographic and Economic Information — These schedules offer demographic and economic
indicators to help the reader understand the environment within which the County's financial
acitivities take place. 153
Operating Information — These schedules contain service and infrastructure data to help the
reader understand how the information in the County's financial report relates to the services
provided and the activities performed by the County. 155
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Changes in Fund Balances, Governmenlrd Funds
(Modified accrual basis of accounting)
Lost Ten fiscal Years
(Amounts in thousands)
Unmanned - see accompanying independent auditors'repon
I Amount Car fiscal year 2014 has been changed for consistency
. 183 ,
2008
21709
2010
21711
2012
2013
2014
20
-15
---�-
O 16
2017
Revenuer
Property tax
$208,313
5225,859
5215,548
$216,511
$208,231
5201,201
S223,482
$236,190
5249,054
5266,517
Public service company tax
8,381
10,229
9,647
9,297
9,997
10,766
10,380
10,386
9,801
8,423
Fuel tax
7,888
7,662
7,406
7,603
8,293
6,353
7,373
7,633
7,934
8,289
Public utility franchise tax
9,027
11,118
8,963
9,416
l 1,065
l O,087
10,793
00,924
9,004
7,951
Licenses and permits
t5,918
14,972
04,725
15,097
05,790
15,99E
19,618
22,046
22,432
22,932
Wergovernmental
72,601
70,869
77,614
93,748
l00,867
79,912
75,257
86,272
95,173
79,220
Charges for services
22,154
21,404
18,909
1!1,416
16,885
67,055
19,392
20,357
21,672
21,708
Investment earnings (loss)'
12,144
8,914
2,253
flo
406
(619)
0,704
716
614
632
Seadersent corunbutions
-
12,500
Offier
7151
5,690
3,24
7,874
4,2116
4,399
30,084
9,769
06,02
1 9,791
Total Revenues
363,577
376,716
358,306
376,472
375,635
358,646
398,093
404,193
421,816
427,463
Expenditures:
Current:
General govcmment
42,99t
45,882
40,586
34,251
35,088
33,360
36,679
40,805
40,488
40,819
Public safety
10.1,617
107,540
108,798
104,9'1'7
104,523
106,885
011,221
t22,9t9
127,451
136, t 63
High,ways ond streets
0,529
17,059
20,222
07,014
17,338
17,923
20,270
20,964
22,479
20,329
Sanitation
33,405
35,025
35,675
28,424
29,511
30,672
29,949
31,464
34,015
39,676
1-tealds, education and welfare
24,609
24,596
25,519
26,847
23,749
24,09
23,070
24,540
25,380
30,535
Culture and recreation
08,079
18,853
07,266
06,001
16,763
96,337
18,334
20,056
21,561
21,196
Pension and retirement contributions
24,296
28,870
28,509
27,284
27,773
29,816
33,032
38,495
41,359
43,718
Employees' health insurance
18,089
19,119
23,573
25,292
25,902
26,01E
26,786
27,730
30,012
32,147
Other posarsmidaymeni benefins
13,629
14,930
15,700
17,307
-
3,1470
4,532
7,180
68,495
Other
5,344
6,257
4,773
4,758
4,183
2,991
3,238
4,696
3,931
3,839
Debt service:
Principal
16,548
19,749
20,720
42,233
24,834
25,718
0,013
22,004
22,432
22,032
Interest
13,116
12,790
14,584
14,941
15,032
14,345
14,644
13,871
12,974
17,289
Capital outlay
70,156
89,368
100,653
87782
71,220
48.565
51,369
79,398
044,288
111,109±
Total Expenditures
403,508
440,158
456,578
446,970
395,916
376,822
390,775
451,375
533,650
529,342
Revenues over (under) Expenditures
(19,930)
(63,442)
(98,272)
(70,499)
(20,281)
(H,M)
7,308
(47,182)
(111,934)
(100,979)
Omer Finmuting Sources (Uses):
Sate of assets
3,470
58
to
6
153
1
10
25
66
20
Capital leases
2,487
1,026
1,948
47
2,521
1,307
64
6,971
3,389
3,769
State Revolving Fund loans
1,916
280
6,811
9,257
4,569
4,991
3,072
7,317
8,630
Sale ofbords
50,000
45,000
-
50,480
130,136
Issuance ofband anticipation notes (BANs)
-
19,000
59,900
Refunding bonds
-
47,510
106.254
Premium on bonds
185
2,078
17,570
23,174
Refunding bandsfBANs uISUMICe Costs
(19)
(508)
Payment to refunded bond escrow agent
(45,352)
(128,920)
Retirement of refunded debt
-(9,635)
Transfers in
64,929
56,697
61,495
56,099
59,970
51,356
61,238
59,394
57,412
66,864
Transfers out
(64,929)
(5(,697)
(61,495)
(56
(59,971
(5 t,356)
(61,238)
(59„394)(57,412)
__
_ L �)_
(IW
Total other financing sources
7E3
--51-549
-11-150
__56j88_
7243
6.6,872
___ 3,026
0,996
-.240,908
7i,720µ
Net change in fund balances
S(32,358)
S(11,89
S(70,522)11
L(14,Mj =1112M
S 48,696
S 10,46
$ (45,186)
S 29, VI
Debt service as a percentage of
noncapind expenditures
93%
90%
104%
l5 9%
12 3%
119%
100%
9.3%
9 l%
94%
Unmanned - see accompanying independent auditors'repon
I Amount Car fiscal year 2014 has been changed for consistency
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Principal Taxpayers
Note: Gross valuation at January 1, 2016: $28,673,884,179
IEENRWZWi
1111 fl� 131112111
Fiscal Year 2017
Fiscal Year 2008
Percentage
Percentage
2016
of Total
2007
of Total
Assessed
Assessed
Assessed
Assessed
TaxRayer
Business
Valuation
Rank
Valuation
Valuation
Rank
Valuation
Kohanaiki Shores LLC
Developer
$ 278,850,500
1
1.0%
Mauna Kea/Hapuna Beach Corps.
Developer/Hotel
171,886,200
3
0.8%
-
Hualalai Investors LLC
Developer/Hotel
163,662,200
4
0.6%
241,692,800
1
0.8%
Hilton Resorts Corp.
Timeshare
158,400,000
5
0.6%
-
MAPS Orchid Hotel LLC
Hotel
121,777,400
6
0.4%
-
-
Mauna Lani Resort Inc.
Developer/Hotel
96,189,500
7
0,3%
110,729,300
6
0.4%
Raptor Residence LLC
Residential
73,925,900
8
0.3%
-
-
Target Corporation
Retailer
66,389,900
10
U%
Ho Retail Properties LTD
Retailer
66,709,500
9
0.2%
-
-
Hilton Land Investment I LLC
Hotel
210,286,200
2
0.7%
225,835,700
2
0.7%
1250 Oceanside Partners
Developer
95,440,700
7
03%
Mauna Kea Development Corp
Hotels/Dev,
204,812,400
3
0.7%
Kona BB Property
Hotel
64,923,900
10
0.2%
WB KD Acquisition LLC
Developer
150,186,100
5
0.5%
WB-LCP Orchid Owner LLC
Hotel
162,254,700
4
0.5%
Kona Coast Resort Ltd
Condo/Time Share
82,733,300
8
0.3%
BRE/Waikoloa LLC
Hotel
73,931,400
9
0.2%
$ 1,408,077,300
5A%
$ 1,412,540,300
4.6%
Note: Gross valuation at January 1, 2016: $28,673,884,179
IEENRWZWi
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Last Ten Fiscal Years
NOTES:
(a) See Table 10 for debt applicable to legal debt margin.
(b) See Table 5 for net taxable property values.
(c) See Table 11 for population data.
notes to the basic financial statements.
Debt
Percent of
Applicable to
Net Taxable
Fiscal
Legal Debt
Property
Per
Year
Margin (a)
Value (b)
Oapita (c)
2008
265,431,280
1.0%
1,510
2009
296,535,925
1.0%
1,667
2010
277,481,633
1.0%
1,549
2011
305,615,691
1.2%
1,636
2012
317,699,844
1.3%
1,679
2013
315,676,941
1.3%
1,654
2014
298,709,020
1.3%
1,538
2015
312,632,049
1.2%
1,592
2016
362,963,113
1.4%
1,829
2017
405,488,342
1.4%
N/A
NOTES:
(a) See Table 10 for debt applicable to legal debt margin.
(b) See Table 5 for net taxable property values.
(c) See Table 11 for population data.
notes to the basic financial statements.
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Fast Ten Fiscal Years
Fiscal
*:Personal
*Per
Year
*Resident
Income
Capita
Ended
Population
(thousands
Personal
School
Unemployment
June 30,
as of July 1
of dollars)
Income
Enrollment
Rate
2007
177,733
$
5,509,169
$
30,997
30,618
3.4%
2008
181,506
$
5,899,236
32,502
30,408
5.7%
2009
183,629
$
5,517,497
$
30,047
30,138
9.9%
2010
185,381
$
5,717,885
$
30,844
29,741
10.0%
2011,
187,229
$
6,114,237
$
32,656
30,103
9.7%
2012
189,191
$
6,318,657
$
33,398
30,314
8.3%
2013
190,821
$
6,544,583
$
34,297
33,948
6.6%
2014
194,190
$
6,771,329
$
34,870
29,985
6.5%
2015
196,428
$
7,067,347
$
35,979
29,865
5.2%
2016
198,449
$
7,618,924
$
38,392
29,753
4,7%
Source: County of Hawai'i, Department of Research and Development, Bureau of Economic Analysis,
State of Department of s •
"f"' «. i ..M
State of Hawaii
County of Hawai'i
United States Government
Four Seasons Resort Hualalai
Mauna Kea and Hapuna Prince Resorts
and Mauna Kea Services
Hilton Waikoloa Village
KTA Super Stores
The Fain-nont Orchid, Hawaii
Mauna Lani Resort ((operations), Inc.
Hapuna Beach Prince Hotel
Mauna Lani Bay Hotel
North Hawaii Community Hospital
Total
COUNTY OF HAWAII
Principal Employers, County of Hawaii
June 30, 2017 and 2008
880
2017
1.3%
2008
5
1.3%
1,200
Percentage
7
1.2%
Percentage
600
8
of Total County
900
391
of Total County
Employees
Rank
-
Employees
Rank
Eaployrnent
-
785
367
10
14,200
1
20.9%
8,009
1
9.7%
2,700
2
4.0%
2,538
2
3.1%
1,500
3
2.2%
1,279
3
1.5%
1,240
4
1.8%
587
9
0.7%
880
6
1.3%
900
5
1.3%
1,200
800
7
1.2%
800
600
8
0.9%
900
391
9
0,6%
-
-
650
-
785
367
10
0.5%
438
23,578
34.7%
17,186
Total employee count 67,942
Source: County of Hawaii, Department of Research and Development
EEMMMM�.
MKIE
4 1.5%
6 1.0%
5 1.1%
8 0.8%
7 0.9%
10 0.5%
20.1%
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