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HomeMy WebLinkAboutCOM 0427.000 2024-2026.5— X /l j ffe zelp County Auditor County of Hawai'i Office of the County Auditor Ph 808.961.8386 County of Hawaii Office of the County Auditor 120 Pauahi St., 309 Hilo, HI 96720 F 808.961.8905 www.hawaiicounty.gov C' July 21, 2025 Honorable Dr. Holeka Goro Inaba, Council Chair -r+ C-; and Members of the Hawaii County Council Hawaii County Council 25 Aupuni Street Hilo, HI 96720 RE: Annual Comprehensive Financial Report for Fiscal Year July 1, 2023 to June 30, 2024 Aloha Chair Inaba and Council Members: It is our pleasure to transmit for your review, deliberation, and acceptance of the Annual Comprehensive Financial Report for the Fiscal Year Ended June 30, 2024, as prepared by the County's Department of Finance. External auditors, Accuity LLP, will provide a brief presentation summarizing the results of the report and will be available to answer questions via Zoom. With Aloha, 4 jb441� lf-� Tyler J. Benner County Auditor Enclosures cc. C. Kimo Alameda, Ph.D., Mayor Jon Henricks, County Clerk Diane Nakagawa, Finance Director Donn Nakamura, Audit Partner Comm. No -911 Ref. To: iRef. Date i AUG - 4 2025 Hawaii County is an Equal Opportunity Provider and Employer County of Hawai'i State of Hawai'i y��P3' �...br � �~�_-���F�kJt_. �`��j. � •� ;Tv �� iyz �_. � M - � .r--h In,l a.. low I Annual Comprehensive Financial Report For the Fiscal Year July 1, 2023 to June 30, 2024 ANNUAL COMPREHENSIVE FINANCIAL REPORT Fiscal Year Ended June 30, 2024 COUNTY OF HAWAI`I Hilo, Hawai `i Mitchell Roth Mayor Deanna Sako Managing Director Prepared by The Department of Finance Diane Nakagawa Director of Finance COUNTY OF HAWAI`I Annual Comprehensive Financial Report For the Fiscal Year Ended June 30, 2024 Table of Contents Page INTRODUCTORY SECTION Letter of Transmittal 1 GFOA Certificate of Achievement 8 Organization Chart 9 List of Elected Officials 10 List of Principal Officials 11 FINANCIAL SECTION Report of Independent Auditors 13 Management's Discussion and Analysis (Unaudited) 17 Basic Financial Statements: Government -wide Financial Statements: Statement of Net Position 29 Statement of Activities 31 Fund Financial Statements: Balance Sheet - Governmental Funds 33 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position 34 Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds 35 Reconciliation of the Change in Fund Balances of Governmental Funds to the Statement of Activities 37 Statement of Net Position - Proprietary Funds 39 Statement of Revenues, Expenses, and Changes in Fund Net Position - Proprietary Funds 40 Statement of Cash Flows - Proprietary Funds 41 Statement of Fiduciary Net Position - Fiduciary Funds 42 Statement of Changes in Fiduciary Net Position - Fiduciary Funds 43 Notes to the Basic Financial Statements 44 Required Supplementary Information (Unaudited) Schedule of Changes in the Net OPEB Liability and Related Ratios 108 Schedule of Contributions (OPEB) 115 Notes to Required Supplementary Information as Required by GASB Statement No. 75 116 Schedule of the County's and Department's Proportionate Share of the Net Pension Liability (ERS) 118 Schedule of the Employer Pension Contributions (ERS) 119 FINANCIAL SECTION (Continued) Page Notes to Required Supplementary Information as Required by GASB Statement No. 68 120 Schedule of Changes in Total Pension Liability (Bandsmen Pension) 121 Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) - General Fund 123 Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) - Hawaii County Housing Agency 127 Notes to the Required Supplementary Information 128 Combining and Individual Nonmajor Fund Statements and Budgetary Control Schedules: Combining Balance Sheet - Nonmajor Governmental Funds 130 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Nonmajor Governmental Funds 133 Combining Statement of Fiduciary Net Position - Custodial Funds 136 Combining Statement of Changes in Net Position - Custodial Funds 138 Combining Statement of Private Purpose Trust Net Position - Private Purpose Trusts 140 Combining Statement of Changes in Net Position - Private Purpose Trusts 141 Schedules of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual (Budgetary Basis): Highway Fund 142 Sewer Fund 143 Solid Waste Fund 144 Cemetery Fund 145 Parking Meter Fund 146 Vehicle Disposal Fund 147 Bikeway Fund 148 Workforce Innovation & Opportunity Act Fund 149 Golf Course Fund 150 Geothermal Relocation and Community Benefits Fund 151 Beautification Fund 152 General Excise Tax Fund 153 Park Dedication Fund 154 Short-term Vacation Rental Enforcement Fund 155 Geothermal Asset Fund 156 STATISTICAL SECTION Table 1 - Net Position by Component 147 Table 2 - Changes in Net Position 158 Table 3 - Fund Balances, Governmental Funds 160 Table 4 - Changes in Fund Balance, Governmental Funds 161 Table 5 - Real Property Assessed Values by Classification and Tax Rates 162 Table 6 - Principal Taxpayers 166 STATISTICAL SECTION Table 7 - Property Tax Levies and Collections Table 8 - Ratios of Outstanding Debt by Type Table 9 - Ratios of General Bonded Debt Outstanding Table 10 -Legal Debt Margin Information Table 11 - Demographic and Economic Statistics Table 12 - Principal Employers, County of Hawaii Table 13 - Full -Time Equivalent County Government Employees by Function Table 14 - Operating Indicators by Function Table 15 - Capital Asset Statistics by Functions (Continued) Page 167 168 169 170 171 172 173 174 175 INTRODUCTORY SECTION C. Kimo Alameda, Ph.D. Mayor William V. Brilhante Jr. Managing Director County of Hawaii Finance Department 25 Aupuni Street, Suite 2103 • Hilo, Hawaii 96720 (808) 961-8234 • Fax (808) 961-8569 July 18, 2025 The Honorable Mayor and Members of the Council County of Hawaii 25 Aupuni Street Hilo, Hawaii 96720 Diane Nakagawa Director Malia A. Kekai Deputy Director We transmit herewith the Annual Comprehensive Financial Report for the County of Hawaii (County), State of Hawaii, for the fiscal year July 1, 2023, to June 30, 2024. 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 respects and are reported in a manner designed to present fairly the financial position 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, 2024, and results of operations for the fiscal year then ended. The report is divided into three sections: 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, other required supplementary information, the combining and individual fund budgetary financial statements, and the independent auditors' report. The Statistical Section includes selected financial and demographic information, generally presented on a multi -year basis. This report includes all funds of the County of Hawaii, including its component unit, the Department of Water Supply, established by the County Charter as a semi -autonomous body of the County government. This component unit is included in the County's reporting entity because of its financial relationship with the County. The County provides a full range of municipal services. These include police and fire protection; emergency medical care; public prosecutor; culture and recreation; sanitation; social services; Hawaii County is an Equal Opportunity Employer and Provider 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. Hawaii island is 4,028 square miles in size, which is twice as large as the combined area of all the other inhabited islands in the Hawaiian Archipelago. Since there is no other local or municipal government within the County, there are no overlapping taxes and no overlapping debt. The County has an elected mayor and a nine -member council. Economic Condition and Outlook The island of Hawaii, commonly known as the Big Island, is located 214 miles from Honolulu, the state capital; 2,200 miles from the west coast of the continental United States; and 4,000 miles from Japan. The city of Hilo, on the east side of the island, serves as the county seat as well as the transportation and financial center for the Big Island. Kailua-Kona, on the west side of the island, offers many natural attractions such as sport fishing, scuba diving and other water sports. The South Kohala coast, just north of Kailua-Kona, is a major tourist destination with several luxury resort developments, many with immaculately manicured golf courses surrounded by high -end vacation homes. The Big Island is served by two deep -water ports —one in Hilo and the other at Kawaihae on the northwest corner of the island —and two international airports. The Hilo and Kona International Airports each have 10,000-foot runways to accommodate transcontinental jets. The highway system allows travelers to access the island's east and west population centers from three directions. Over the past several years, the Big Island has transitioned from a tourism -based economy to a more diversified economy by capitalizing on its many unique features. For example, the elevation and isolation of the Big Island's mountains have helped to make Mauna Kea and Mauna Loa the world's premier locations for astronomical observatories and atmospheric research, respectively. In addition, deep ocean waters just off the island's coast provide prime research, aquaculture, and water bottling conditions, and the waters off the Kona Coast are world renowned for sport fishing and other water sports. The island's great natural beauty also has helped to foster a vibrant tourist industry. As a result, the Big Island is buffered to some extent when any one industry lags. According to the State of Hawaii Department of Business, Economic Development & Tourism (DBEDT), the unemployment rate for the County in calendar year 2024 was recorded at 3.2 percent, unchanged from the calendar year 2023 rate. Tourism has always been one of the major industries on the island. For the twelve-month period ending December 2024, preliminary data shows that total visitor arrivals reached 1,729,027, compared to 1,779,063 in 2023. This represents a 2.8% decrease in visitor arrivals from the prior year. -2- In addition to the mild climate and natural beauty it shares with other areas in the state, the County features the Hawaii Volcanoes National Park, in addition to four other national parks that focus on Hawaiian culture and history. Major Initiatives For the Year Public Safety — Fire Department successfully implemented a new Fire Records Management and Incident Reporting System using the web -based EPR Fireworks software. This system enables remote access from any location without requiring connection to the County Network, enhancing flexibility and efficiency. Fire Department progressed with the Apparatus Replacement Program, procuring two Class A pumpers and one Hazardous Materials Response Apparatus. The Fire Department's Emergency Medical Services Branch remains actively engaged in Fentanyl education throughout our community. The division supported island -wide Narcan distribution and education, along with delivering numerous community presentations. The Fire Prevention branch hosted the 1 st Annual Smoke `N Fire 5K Race and Family Fun Run on October 1, 2023, at the University of Hawai'i at Hilo, with approximately 500 participants and 1,000 community members. The event successfully promoted health and fire prevention, thanks to the efforts of dedicated volunteers. Proceeds from the run were donated to UH Foundation and the Kapi`olani Medical Center for Women and Children. Public Works — Over the past fiscal year the Department of Public Works (DPW) completed major projects in our community including: Completed $15.3 million Kilauea Avenue/Keawe Street Rehabilitation — Ponahawai to Waianuenue Avenue Project. This was a State Transportation Improvement Program (STIP) Project. The project included paving and rehabilitating existing roadways, sidewalks, and adding ADA ramps as well as upgrades of existing water and sewer lines. Completed $2 million Kolekole Stream Bridge project for 2018 Hurricane Lane Damage Repairs. Completed $31 million Hawaii County Emergency Call Center. Project included a new 17,127 square -foot essential facility for Police and Fire dispatch along with parking, landscaping, back-up generators, a communication tower, and redundant cooling systems for a county computing center. Completed $4 million reconstruction of Pauahi Street Bridge. This project included structural improvements and modernizing and improving safety. -3- Culture and Recreation — The Parks and Recreation Department completed multiple ADA Transition Plan projects including Richardson's Ocean Park and Kolekole Gulch Park accessibility improvement projects. For the Future Public Safety — The Police Department will be including English 100 classes for incoming recruits in partnership with the University of Hawaii. Looking ahead, the Fire Department is poised to embark on a major initiative, focusing on the community risk assessment, standards of cover, strategic planning, and master planning, ensuring a more efficient operation and safer future for the community. Public Works - DPW is currently working on these major projects: The S26 million rehabilitation of Waikoloa Road from Mamalahoa Highway to Queen Ka`ahumanu Highway. Project includes resurfacing over 11 miles of multi -lanes of pavement, improving shoulders, addition of bike lanes, and overall safety improvements. Anticipated completion is June 2025. This is a STIP project. The $16 million Waiakea/Palai Stream Drainage improvements. This project is a partnership with US Army Corps of Engineers and includes construction of three flood control features: a ditch/levee floodwall with detention basin, a detention basin, and a diversion structure. The $82 million Kilauea Lava Recovery repairs, including Pohoiki Road and Highway 137, to reconstruct 13 miles of roadway surfaces destroyed by the May 2018 eruption of Kilauea Volcano. DPW also is partnering with the Department of Water Supply to install 9 miles of waterline also damaged during the lava flow event. The project will take 2.5 years to complete and is a project funded by the Federal Emergency Management Agency (FEMA). Working on design of safety repairs for Waipio Valley Road, including slope stabilization, road surface repairs, and drainage improvements. Anticipated costs are $10 million and construction work to begin in 2025. Culture and Recreation — The Parks and Recreation Department will continue efforts to complete the remaining projects of the ADA transition plan and other scheduled repairs and improvements projects to park facilities. The following design and construction projects to begin in 2025 are Miloli`i Beach Park, Kealakehe Regional Park Phase I, Clarence Lum Won Park, Kohanaiki Beach Park, Na` alehu Park Ballfield, Pahala Ballfield, Kekuaokalani Gymnasium, Ho`olulu Complex, Honoka`a Park, and Hawaiian Paradise Park Phase I. -4- Other Financial Information Internal Control The County management 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 is 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 requires estimates and judgments by management. Budgetary Control 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 expenditures for purposes of determining legal compliance with the annual budget, 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, The Financial Reporting Entity (GASB Statement No. 14), Statement No. 39, Determining Whether Certain Organizations Are Component Units (GASB Statement No. 39) and Statement No. 61, 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 in the -5- County's basic financial statements. For further discussion on other significant accounting policies, refer to the notes to the basic financial statements. Financial Highlights Governmental activities increased the County's net position by $194.5 million, which represented almost the entire total increase in net position of the County. There was a $73.4 million (-7.7%) decrease in revenues from governmental activities, due to the following factors. The County experienced a $36.8 million decrease in revenues from operating grants and contributions and a $110.0 million decrease in capital grants and contributions which were partially offset with an increase in real property taxes of $42.5 million and investment earnings of $16.3 million. The increase in real property tax revenues was a direct reflection of the total increase of $4.0 billion in assessed value of the net taxable real property, with the majority of the increase stemming from the category of taxable land ($2.4 billion). Overall expenses from governmental activities decreased by $13.0 million (-1.9%) from the previous year, which was a result of the County experiencing a $41.7 million decrease in expenditures related to Highways and streets and $32.1 million related to Health, education and welfare expenditures due to unspent appropriations as well as lower pension, health and post employment benefit expenses. These decreases were offset by an increase of $24.2 million in General government expenditures, including Public safety and Sanitation spending which increased by $28.5 million and $7.8 million from the prior year end, respectively. Other Information Independent Audit The County Charter requires an annual audit by independent certified public accountants. Accuity, LLP was selected in accordance with the County Charter and the procurement provisions of the Hawaii Revised Statutes (HRS) and Hawaii Administrative Rules (HAR) to perform the audit. Employee Union Contracts Hawaii County's civil service employees are members of eight different bargaining units, of which all contracts are set to expire on June 30, 2025. -6- Certificate ofAchievement The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the County of Hawaii for its Annual Comprehensive Financial Report for the fiscal year ended June 30, 2023. This was the thirty sixth consecutive year that the government has received this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized annual comprehensive financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe our current Annual Comprehensive Financial Report continues to meet the Certificate of Achievement Program's requirements, and we are submitting it to the GFOA to determine its eligibility for another certificate. Acknowledgments 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 Hawaii. Diane Naka wa Director of Finance -7- Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to County of Hawaii, Hawaii For its Annual Comprehensive Financial Report For the Fiscal Year Ended June 30, 2023 Executive Director/CEO County Council County Clerk Departments under direct supervision of the Managing Director: County of Hawaii Organization Chart County Auditor Corporation Counsel Finance Planning Environmental Management Research & Development Public Works Parks & Recreation Information Technology County Electorate Mayor Agencies under direct supervision of the Managing Director: I Prosecuting Attorney Office of Mana eg ment: Managing Director Civil Defense Office of Aging Mass Transit Off ce of Housing & Community Development Animal Control & Protection Agency Office of Sustainability, Climate, Equity & Resilience Departments under commissions and administrative supervision of the Mayor: Human Resources Police Liquor Control Fire Water Supply (semi -autonomous) -9- County of Hawaii Elected Officials June 30, 2024 Administrative Officers (Term: 2020-2024) Mitchell Roth (12-02-24) Mayor Kelden Waltjen Prosecuting Attorney County Council (Term: 2022-2024) Heather L. Kimball Chair Holeka Goro Inaba Vice Chair Cindy Evans Member Michelle M. Galimba Member Jenn Kagiwada Member Matt Kaneali'i-Kleinfelder Member Ashley L. Kierkiewicz Member Susan L. K. Lee Loy Member Rebecca Villegas Member -10- Principal Officials June 30, 2024 County Clerk Jon Henricks County Auditor Tyler Benner Managing Director Deanna Sako Deputy Managing Director Bobby Command Corporation Counsel Elizabeth Strance Director of Finance Diane Nakagawa Planning Director Zendo Kern Director of Personnel Sommer Tokihiro Director of Research and Development Douglass Adams Chief of Police Benjamin Moszkowicz Fire Chief Kazuo Todd Director of Public Works Steven Pause Director of Environmental Management Ramzi Mansour Parks and Recreation Director Maurice Messina Manager -Chief Engineer, Department of Water Supply Keith Okamoto Civil Defense Administrator Talmadge Magno Director of Liquor Control Gerald Takase Mass Transit Administrator Victor Kandle Executive on Aging Horace Farr Administrator, Office of Housing and Community Development Susan Kunz Director of Information Technology Robert Ewbank Administrator, Animal Control & Protection Agency Matthew Runnells Administrator, Office of Sustainability, Climate, Equity & Resilience Bethany Morris -11- This page intentionally left blank. FINANCIAL SECTION ACCU ITY Report of Independent Auditors To the Chair and Members of the County Council County of Hawai'i, State of Hawai'i Opinions We have audited the accompanying financial statements of the governmental activities, the business -type activities, the Department of Water Supply (the "Department"), a discretely presented component unit of the County of Hawai'i, each major fund, and the aggregate remaining fund information of the County of Hawai'i, State of Hawai'i (the "County") as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the County's basic financial statements as listed in the table of contents. In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the respective financial position 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 Hawaii, State of Hawai'i as of June 30, 2024, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions 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 Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the County and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events considered in the aggregate, that raise substantial doubt about the County's ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. 0 999 Bishop Street OFFICE 808.531.3400 Suite 2300 FAX 808.531.3433 Honolulu, HI96813 accuityllp.com ti Auditors' Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the County's internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the County's ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control -related matters that we identified during the audit. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis (pages 17-27), schedule of changes in the net OPEB liability and related ratios (pages 108-114), schedule of contributions (OPEB) (page 115), schedule of the County's and Department's proportionate share of the net pension liability (ERS) (page 118), schedule of the employer pension contributions (ERS) (page 119), schedule of changes in total pension liability (Bandsmen Pension) (pages 121-122), and budgetary comparison schedules for the General and Hawaii County Housing Agency Funds (pages 123-129), which are required supplementary information ("RSI") that supplements the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, which considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic ACCUITY financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the County of Hawai'i, State of Hawai'i's basic financial statements. The combining statements and individual fund schedules, as identified in the table of contents, are presented for the purpose of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining statements and individual fund schedules are fairly stated in all material respects in relation to the basic financial statements as a whole. Other Information Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditors' report thereon. Our opinion on the basic financial statements do not coverthe other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements or whether the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated July 18, 2025, on our consideration of the County of Hawai'i, State of Hawai'i's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant 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 of Hawai'i, State of Hawai'i'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 of Hawai'i, State of Hawai'i's internal control over financial reporting and compliance. —A"lot L-LP Honolulu, Hawai'i July 18, 2025 ACCUITY MANAGEMENT'S DISCUSSION AND ANALYSIS (Unaudited) This section of the County of Hawai`i's (the County) Annual Comprehensive Financial Report presents a narrative overview and analysis of the financial activities of the County for the fiscal year ended June 30, 2024. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal. FINANCIAL HIGHLIGHTS The assets and deferred outflows of resources of the County exceeded its liabilities and deferred inflows of resources at the end of the fiscal year by $767.8 million (net position). This amount includes a negative balance of $610.0 million in unrestricted net position, a positive increase of $131.4 million from the prior year, which is explained in the sections below. This amount includes $2.5 billion of total assets and $173.4 million of total deferred outflows of resources; $1.8 billion of total liabilities and $121.1 million of total deferred inflows of resources. As of the end of fiscal year 2024, the County's governmental funds reported combined ending fund balances of $587.8 million, an increase of $2.2 million from the prior year. Approximately 42 percent of this total amount, $247.2 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 $165.5 million, or 31 percent of total general fund expenditures. OVERVIEW OF THE FINANCIAL STATEMENTS This discussion and analysis is intended to serve as an introduction to the County's basic financial statements. The County's basic financial statements comprise three components: (1) Government -wide financial statements, (2) Fund financial statements, and (3) Notes to the basic financial statements. This report also contains both required and other supplementary information in addition to the basic financial statements themselves. Government -wide Financial Statements The government -wide financial statements are designed to provide readers with a broad overview of the County's finances, in a manner like a private -sector business. The statement of net position presents information on all the County's assets, deferred outflows of resources, liabilities, and deferred inflows of resources, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the County 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 expenses are reported in this statement for some items that will only 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 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, -17- 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. The government -wide financial statements include not only the County itself (known as the primary government), but also the Department of Water Supply, a legally separate entity that the County is financially accountable for. Financial information for this component unit is reported separately from the financial information presented for the primary government itself. Fund Financial Statements The fund financial statements are designed to report information about groupings of related accounts which are used to maintain control over resources that have been segregated for specific 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 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 spending. Such information may be useful in determining what financial resources are available in the near future to finance the County's programs. Because the focus of governmental funds is narrower than that of the government -wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government -wide 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 and 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, capital projects fund, and the Hawaii County Housing Agency, which are 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 and the Hawaii county housing agency as well as nonmajor special revenue funds statements 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 are used to report the same functions presented as business -type activities in the government -wide financial statements. The County uses enterprise funds to account for the operations of the Kulaimano Elderly Housing Project and the Ouli Ekahi Affordable Housing Project. Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the County. The private -purpose trusts and the custodial funds are reported under the fiduciary funds. Since the resources of these funds are not available to support the County's own programs, they are not reflected in the government -wide financial statements. The accounting used for fiduciary funds is much like that used for proprietary funds. Notes to the Basic Financial Statements The notes to the basic financial statements provide additional information that is essential to a full understanding of the data provided in the government -wide and fund financial statements. Other Supplementary Information In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information, which is presented immediately following the notes to the basic financial statements. The combining statements referred to earlier in connection with nonmajor governmental funds and budgetary comparison schedules for the nonmajor special revenue funds are presented immediately following the required supplementary information. Assets Current assets and other assets Capital assets Total assets Deferred Outflows Of Resources: Total Assets and Deferred Outflows of Resources Liabilities: Current liabilities Non -current liabilities Total liabilities Deferred Inflows Of Resources: Total Liabilities and Deferred inflows Of Resources Net position: Net investment in capital assets Restricted Unrestricted Total net position Government -wide Financial Analysis Condensed Statements of Net Position June 30, 2024 and 2023 Primary Government Governmental Activities Business -type Activities Total 2024 2023 2024 2023 2024 2023 $ 880,428,742 $ 910,571,818 $ 1,275,592 $ 1200,831 $ 881,704,334 $ 811,772,649 1,624,068,009 1,549,776,749 3,434,892 3,545,546 1,627,502,901 1,553,322,295 2,504,496,751 2,360,348,567 4,710,484 4,746,377 2,509,207.235 2,365,094,944 173,387,837 158,703,500 - - 173,387,837 158,703,500 2,677,884,588 2,519,052,067 4,710,484 4,746,377 2,682,595,072 2,523,798,444 303,931,137 272,412,546 15,837 99,290 303,946,974 272,511,836 1,489,781,439 1,490,007,859 - 1,489,781,439 1,490,007,859 1,793,712,576 1,762,420,405 15,837 99,290 1.793,728,413 1,762,519,695 121,050,764 187,941,368 - 121,050,764 187,941,368 1,914,763,340 1,950,361,773 15,837 99,290 1,914,779,177 1,950,461,063 1,135,168,681 1,027,992,548 3,434892 3,537,456 1,138,603,573 1,031,530,004 239,236,262 283,205,882 - - 239,236,262 283,205,882 (611,283,695) (742,508,136) 1,259,755 1,109,631 (610,023,940) (741,398,505) $ 763,121,248 $ 568,690294 $ 4,694,647 $ 4,647,087 $ 767,815,895 $ 573,337,381 -19- Analysis of Net Position As noted earlier, net position may serve over time as a useful indicator of a government's financial position. In the case of the County, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $767.8 million at the close of the most recent fiscal year. By far the largest portion of the County's net position reflects its investment in capital assets (e.g., land, buildings, infrastructure, and equipment) less any related debt used to acquire those assets that is still outstanding. The County uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the County's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. An additional portion of the County's net position represents resources that are subject to external restrictions on how they may be used. At the end of the current fiscal year, the County is able to report positive balances in two of its three categories of net position, both for the government as a whole, as well as for its separate governmental activities. All three categories of net position are positive for its business -type activities. The County's net position increased by $194.5 million from the prior year, which was a decrease of $60.3 million (-23.7%) from the increase that was experienced last fiscal year. The main reasons for the increase from last year was due to an increase in Property taxes revenue of $42.5 million, increase investment earnings of $16.3 million and decreases in expenses for highways and streets of $41.7 million and health, education and welfare of $32.1 million. Current liabilities increased by $31.5 million and non -current liabilities decreased by $0.2 million, for a total increase from prior year of $31.3 million (1.8%). Although the County's net pension liability increased by $49.2 million, this was offset by a $66.8 million corresponding decrease in the projected deferred inflow of resources related to pension and OPEB liability and not by an increase in expenditures. There was a $6.8 million decrease in the net other post -employment benefit obligation. See further discussion of the increase in long-term debt outstanding on page 26. Further, there was an increase in net investment in capital assets of $107.1 million and the County's net capital assets increased by $74.2 million (4.8%) due to the large amount of capital improvement projects done by the County during the current fiscal year and infrastructure related assets that were contributed. See further discussion of the increase in capital assets on pages 25 — 26. See further discussion regarding the changes in the County's net position in the section labeled Analysis of Changes in Net Position. -20- Condensed Statements of Activities For the Fiscal Yeas Ended June 30, 2024 and 2023 Primary Government Governmental Activities Business -type Activities Total 2024 2023 2024 2023 2024 2023 Revenues: Program revenues: Charges for services $ 70,457,652 $ 64,789,259 $ 603,796 $ 541,139 $ 71,061,448 $ 65,330,398 Operating grants and contributions 104,918,731 141,690,010 396,005 331,282 105,314,736 142,021,292 Capital grants and contributions 29,943,511 139,937,282 - - 29,943,511 139,937,282 General revenue Property taxes 488,372,488 445,888,368 488,372,488 445,888,368 Other taxes 153,715,116 145,073,344 153,715,116 145,073,344 Grants and contributions, unrestricted 849,934 812,837 849,934 812,837 Investment earnings 27,412,752 11,101,680 16,822 2,104 27,429,574 11,103,784 Other 1,657,038 1,438,202 - - 1,657,038 1,438,202 Total revenues 877,327,222 950,730,982 1,016,623 874,525 878,343,845 951,605,507 Expenses: General government Public safety Highways and streets Health, education and welfare Culture and recreation Sanitation Interest on long-term debt Total expenses Increase in net position before transfers Transfers Change in net position Net position at beginning of year Net position at end of year 126,527,858 102,326,533 126,527,858 102,326,533 260,420,327 231,891,768 260,420,327 231,891,768 90,918,955 132,580,459 90,918,955 132,580,459 83,470,948 115,580,138 969,063 874,238 84,440,011 116,454,376 33,445,396 36,267,778 - - 33,445,396 36,267,778 71,863,269 64,095,411 71,863,269 64,095,411 16,249,515 13,181,506 16,249,515 13,181,506 682,896,268 695,923,593 969,063 874,238 683,865,331 696,797,831 194,430,954 254,807,389 47,560 287 194,478,514 254,807,676 - (129,548) - 129,548 - - 194,430,954 254,677,841 47,560 129,835 194,478,514 254,807,676 568,690,294 314,012,453 4,647,087 4,517,252 573,337,381 318,529,705 $ 763,121,248 $ 568,690,294 $ 4,694,647 $ 4,647,087 $ 767,815,895 $ 573,337,381 Analysis of Changes in Net Position Governmental activities. Governmental activities increased the County's net position by $194.5 million, which represented almost the entire total increase in net position of the County. There was a $73.4 million (-7.7%) decrease in revenues from governmental activities, due to the following factors. The County experienced a $36.8 million decrease in revenues from operating grants and contributions and a $110.0 million decrease in capital grants and contributions which were partially offset with an increase in real property taxes of $42.5 million and investment earnings of $16.3 million. The increase in real property tax revenues was a direct reflection of the total increase of $4.0 billion in assessed value of the net taxable real property, with the majority of the increase stemming from the category of taxable land ($2.4 billion). Overall expenses from governmental activities decreased by $13.0 million (-1.9%) from the previous year, which was a result of the County experiencing a $41.7 million decrease in expenditures related to Highways and streets and $32.1 million related to Health, education and welfare expenditures due to unspent appropriations as well as lower pension, health and post employment benefit expenses. These decreases were offset by an increase of $24.2 million in General government expenditures, including Public safety and Sanitation spending which increased by $28.5 million and $7.8 million from the prior year end, respectively. -21- The charts below illustrate the County's governmental expenses and revenues by function, and its revenues by source. As shown, public safety is the largest function in expense (38%), followed by general government (19%), and highways and streets (13%). General revenues such 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 programs, property taxes are the largest single source of funds (56%), followed by other taxes (18%) and operating grants and contributions (12%). $300,000,000 $250,000,000 $200,000,000 $150,000,000 $100,000,000 $50,000,000 $ Expenses and Program Revenues — Governmental Activities Year Ended June 30, 2024 Expenses ■ Program revenues -22- ■ Investmen ■ Grants and c unrestricted Other to $153,71E Property 5488,3T Revenue by Source — Governmental Activities Year Ended June 30, 2024 iarges far services, 570,457, 652 0peratinggrants and cantributians, $ 104, 918, 731 Capital grants and contributions, $ 29,943,511 Business -type activities. Business -type activities' net position increased by approximately $48,000 and had an extremely minimal impact on the increase in the County's net position overall, which was comparable to the prior year. Expenses for health, education and welfare account for all of the $969,063 expenses which represent an eleven percent increase from the prior year, with the largest increase occurring in the area of utilities, which increased by 56 percent. Charges for services were $603,796 and operating grants and contributions were $396,005, which were comparable to the prior year. FINANCIAL ANALYSIS OF THE COUNTY'S FUNDS As noted earlier, the County uses fund accounting to ensure and demonstrate compliance with finance - related legal requirements. Governmental funds. 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 serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. As of the end of fiscal year 2024, the County's governmental funds reported combined ending fund balances of $587.8 million, an increase of $2.2 million (0.4%) in comparison with prior year. Approximately 42 percent of this total amount ($247.2 million) constitutes unrestricted fund balance. The unrestricted portion of the fund balance is comprised of (1) $90.0 million in committed fund balance, (2) $63.3 million in assigned fund balance, and (3) $93.9 million in unassigned fund balance. The remainder of the fund balance is divided between $9.2 million in nonspendable fund balance for inventory and prepaid items and $331.4 million in restricted fund balance. Approximately 75.5 percent of the total restricted fund balance is due to restrictions relating to highways, streets and abandoned vehicles ($194.8 million) and debt service ($55.4 million). $69.8 million of the fund balance restricted for highways, streets and abandoned vehicles was due to the General Excise Tax fund that was created in fiscal year 2019, which accounts for the general excise tax surcharge that became effective in fiscal year 2019. The fund balance of the General Excise Tax Fund - 23 - decreased by $6.6 million due primarily to decreased sales activity throughout the County, which also correlates to the lower levels of tourism. 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 $165.5 million, while total fund balance increased to $215.9 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 represents 30.8 percent of total general fund expenditures, while total fund balance represents 40 percent of that same amount. The fund balance of the County's general fund increased by $25.1 million during the current fiscal year as compared to an increase of $79.2 million in the prior year. Key factors for this increase over last year's are as follows: • Positive increases of $41.3 million (9%) in real property tax revenues and $16.4 million (137%) in investment earnings. With the increase in multiple revenue sources, the County's expenditures also increased from the prior year by $75.5 million (16%). In addition to increases in salaries and wages and related benefits resulting from bargaining unit changes, the County also incurred $6.6 million in increased capital outlay spending and $70 million in Temporary Hazard Pay. Additional information can be found in note 12 and included in Governmental Fund Statement of Revenues, Expenditures, and Changes in Fund Balance. The fund balance of the County's capital projects fund decreased by $37.4 million during the current fiscal year. The decrease is primarily due to the fact that there was $28.5 million to fully retire the bond anticipation notes. Expenditures of the fund decreased by $7.9 million from the prior year. See discussion regarding construction activity during the current year in the capital asset section below. The debt service funds consist of the Bond Redemption Fund and the Interest Fund. These funds have combined total fund balances of $55.4 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 $1.0 million, which was a two percent change from the prior year end. The increase in fund balance was lower than the increase experienced in the prior year due to the fact that the amount of transfers -in exceeded the actual expenditures incurred for principal and interest payments by a lesser degree than in the prior year. Proprietary funds. The County's proprietary funds provide the same type of information found in the government -wide financial statements, but in more detail. Unrestricted net position of the Kulaimano Elderly Housing Project (Kulaimano) at the end of the year amounted to $630,732 and $629,023 for the Ouli Ekahi Affordable Housing Project (Ouli Ekahi). Unrestricted net position for Kulaimano increased by $143,124 and unrestricted net position for Ouli Ekahi increased by $7,000. Other factors concerning the finances of these two funds have already been addressed in the discussion of the County's business -type activities. GENERAL FUND BUDGETARY HIGHLIGHTS Differences between the original budget and the final amended budget were primarily the result of a $7.9 million increase in appropriations for expenditures and other financing uses, and $7.9 million increase in total revenues, the most significant reasons were due to additional grant appropriations from the federal government relating to coastal resilience ($2.0 million) and opioid settlement ($0.5 million). Differences between the final budget and the actual (budgetary basis) resulted in approximately $37.9 million more revenues than expected and $77.8 million less expenditures than appropriated. -24- This is primarily due to the following factors: The positive variance between budgeted and actual revenues was entirely attributable to the positive results in taxes and assessments, with $27.7 million more revenue resulting from property taxes and $10.0 million more resulting from the County's transient accommodation tax. Approximately $50.9 million of the unspent appropriations is related to salaries and wages and $21.6 million is from the various countywide expenditure accounts relating to salaries and wages, including benefits and anticipated compensation adjustments. 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 total variance in expenditures: public safety ($16.1 million), highways and streets ($14.4 million), and general government ($14.6 million). CAPITAL ASSET AND DEBT ADMINISTRATION Capital assets. The County's investment in capital assets for its governmental and business -type activities as of June 30, 2024 amounts to $1.6 billion (net of accumulated depreciation). This investment in capital assets includes land and improvements, buildings and improvements, equipment, leases, subscription assets, easements, 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 5%. Major capital asset events during the current fiscal year included the following: • Construction continued on the Hawaii County Radio System Upgrade project; construction in progress as of the end of the current fiscal year had reached $22.4 million with $1.0 million coming from the current fiscal year. • Construction continued on the Hilo Wastewater Treatment Plan Upgrade project; construction in progress as of the end of the current fiscal year had reached $14.8 million with $3.7 million coming from the current fiscal year. • Construction continued on the Pua Force Main Installation and Rehabilitation project; construction in progress as of the end of the current fiscal year had reached $4.6 million with $1.3 million coming from the current fiscal year. • Construction continued on the Kukuiola and Village 9 Affordable Rental and Homeless project; construction in progress as of the end of the fiscal year had reached $6.6 million with $3.5 million coming from the current fiscal year. • Construction continued on the Kolekole Gulch Park Accessibility Improvements project; construction in progress as of the end of the fiscal year had reached $6.5 million with $5.4 and the project was transferred to Buildings. • Construction continued on the NAS Swimming Pool Accessibility Improvements project; construction in progress as of the end of the fiscal year had reached $6.6 million with $3.2 million coming from the current fiscal year. • Construction continued on the Richardson's Ocean Park Access Improvement project; construction in progress as of the end of the fiscal year had reached $3.9 million with $348k coming from the current fiscal year and the project was transferred to Buildings. • Construction continued on the Kilauea Avenue/Keawe Street Rehabilitation projects; construction in progress as of the end of the current fiscal year had reached $12.8 million with $10.1 million coming from the current fiscal year. • Construction continued on the Waikoloa Road Rehabilitation project; construction in progress as of the end of the fiscal year had reached $13.7 million with $12.9 million coming from the current fiscal year. -25- • Construction continued on the Hawaii County Emergency Call Center project; construction in progress as of the end of the fiscal year had reached $27.1 million with $10.9 million coming from the current fiscal year. Capital Assets (net of depreciation and amortization) June 30, 2024 and 2023 Primary Government Governmental Activities Business -type Activities Total 2024 2023 2024 2023 2024 2023 Land and improvements $ 399,404,732 S 390,407,932 $ 753,877 $ 753,877 $ 400,158,609 $ 391,161,809 Inlastructure assets 267,166,648 285,691,707 - - 267,166,648 285,691,707 Ground and site improvements - - 27,461 31,811 27,461 31,811 Buildings and improvements 676,647,412 650,884,115 2,503.307 2,612,632 679,150,719 653,496,747 Easements 30,520,115 22,317,344 - - 30,520,115 22,317,344 Right of use assets 18,184,803 17,784,351 18,184,803 17,784,351 Subscription assets 13,328,429 3,536,865 - - 13,328,429 3,536,865 Equipment 71,153,528 60,879,955 44,991 41,790 71,198,519 60,921,745 Construction work in progress 147,662,342 118,274,480 105,256 105256 147,767,598 118,379,736 Total $1,624,068,009 $1,549,776,749 $ 3,434,892 $ 3,545,366 $1,627,502,901 $1,553,322,115 Additional information on the County's capital assets can be found in note 5 to the basic financial statements. Long-term debt. Long-term debt is primarily comprised of bonds of $414.8 million and State Revolving Fund loans of $49.2 million. The entire amount of bonds was comprised of general obligation bonds which are backed by the full faith and credit of the County. At the end of the fiscal year, the County held an "AA+" rating from Standard & Poor's, 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 $7.2 billion, which is in excess of the County's outstanding general obligation debt. Currently the County's outstanding debt represents 6 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. ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES • The unemployment rate for the County at the end of the current fiscal year is at approximately 3.8 percent, which is comparable to the end of the prior fiscal year. For the twelve-month period ending December 2024, preliminary data shows that total visitor arrivals reached 1,729,027, compared to 1,779,063 in 2023. This represents a 2.8% decrease in visitor arrivals year over year. At the end of the current fiscal year, unrestricted fund balance in the general fund was $165.5 million. The County has appropriated $37.6 million of this amount for spending in the 2025 fiscal year budget and the majority is included in the assigned portion of the fund balance. -26- REQUESTS FOR INFORMATION This financial report is designed to provide a general overview of the County's finances for all those with an interest in the government's finances. Questions concerning any of the information provided in this report or requests for additional information should be addressed to the Director of Finance, County of Hawaii, 25 Aupuni Street, Suite 2103, Hilo, Hawaii 96720. -27- BASIC FINANCIAL STATEMENTS COUNTY OF HAWAI`I Statement of Net Position Assets Current assets: Cash and cash equivalents (notes 2 and 14) Restricted cash and cash equivalents (note 2) Investments (note 2) Restricted investments (note 2) Receivables, net (note 3) Receivable from improvement district (notes 3 and 10) Internal balances (note 4) Inventories Prepaid expenses Other Total current assets Noncurrent assets: Investments (note 2) Restricted investments (note 2) Restricted cash and cash equivalents (notes 2 and 14) Receivable from improvement district, excluding current portion (notes 3 and 10) Other Capital assets (notes 5, 7, 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 Land and improvements Right of use assets, net Subscription assets, net Construction work in progress Total capital assets, net Total noncurrent assets Total assets Deferred Outflows of Resources Deferred loss on refunding Deferred outflow related to pensions and other post employment benefits (notes 13 and 14) Total deferred outflows of resources Total Assets and Deferred Outflows of Resources June 30, 2024 Primary Government Governmental Business -type Component Activities Activities Total Unit $ 309,839,558 $ 1,147,092 $ 310,986,650 $ 45,092,014 332,968,069 48,742 333,016,811 - 22,660,794 - 22,660,794 18,552,758 43,500,000 - 43,500,000 - 127,463,281 11,462 127,474,743 10,196,569 193,673 - 193,673 - 172,515 (172,515) - - 9,243,083 - 9,243,083 1,723,334 494,207 16,740 510,947 104,162 5,829,009 - 5,828,008 218,073 852,363,188 1,051,521 853,414,709 75,886,910 18,765,276 - 18,765,276 6,590,218 3,379,355 - 3,379,355 - - 224,071 224,071 888,225 3,532,734 - 3,532,734 - 2,388,189 2,388,189 1,831,080 274,150,660 267,166,648 - 267,166,648 - 27,461 27,461 676,647,412 2,503,307 679,150,719 71,153,528 44,991 71,198,519 30,520,115 - 30,520,115 - - - - 1,456,452 399,404,732 753,877 400,158,609 5,787,581 18,184,803 - 18,184,803 283,223 13,328,429 - 13,328,429 40,056 147,662,342 105,256 147,767,598 11,763,518 1,624,068,009 3,434,892 1,627,502,901 293,481,490 1,652,133,563 3,658,963 1,655,792,526 302,791,013 2,504,496,751 4,710,484 2,509,207,235 378,677,923 2,753,376 2,753,376 170,634,461 170,634,461 6,413,936 173,387,837 173,387,837 6,413,936 $2,677,884,588 $ 4,710,484 $2,682,595,072 $ 385,091,859 (Continued) -29- COUNTY OF HAWAII Statement of Net Position June 30, 2024 (Concluded) Primary Government Governmental Business -type Component Activities Activities Total Unit Liabilities Current liabilities: Accounts payable and accrued liabilities $ 32,045,233 $ 73,593 $ 32,118,826 $ 5,311,895 Accrued payroll 14,427,699 - 14,427,699 4,817,942 Interfund balances 65,646 (65,646) - - Advance collections - intergovernmental 101,678,091 6,101 101,684,192 - Interest due on long-term debt 7,363 691 1,789 7,365,480 348,471 Bonds and loans payable, current portion net (notes 10 and 14) 41,714,435 - 41,714,435 6,711,144 Compensated absences, current portion (note 10) 12,128,656 12,128,656 679,242 Claims and judgments, current portion (notes 10, 12 and 14) 74,560,144 74,560,144 324,488 Leases and other financing agreements, current portion (notes 8 and 10) 5,707,123 5,707,123 32,144 Subscription liability, current portion 2,171,308 2,508 Landfill costs payable, current portion 2,171,308 (notes 9 and 10) 497,048 497,048 - Customers' deposits - - 155,426 Other 11,572,063 - 11,572,063 - Total current liabilities 303,931,137 15,837 303,946,974 18,383,260 Noncurrent liabilities: Bonds and loans payable, net (notes 10 and 14) 482,014,209 - 482,014,209 65,405,468 Compensated absences (note 10) 38,305,876 38,305,876 1,169,905 Claims and judgments (notes 10, 12 and 14) 8,252,850 8,252,850 299,526 Leases and other financing agreements (notes 8 and 10) 24,600,989 24,600,989 255,955 Subscription liability 10,437,434 10,437,434 1,121 Landfill costs payable (notes 9 and 10) 11,051,952 11,051,952 - Customers' deposits - - 2,820,920 Net pension liability (notes 13 and 14) 634,255,399 634,255,399 29,273,892 Net OPEB liability (notes 13 and 14) 261,401,395 261,401,395 6,841,344 Other 19,461,335 19,461,335 - Total noncurrent liabilities 1,489,781,439 1,489,781,439 106,068,131 Total liabilities 1,793,712,576 15,837 1,793,728,413 124,451,391 Deferred Inflows of Resources Deferred inflows related to pensions and other post employment benefits (notes 13 and 14) 114,837,891 - 114,837,891 8,694,247 Deferred inflows - other (note 6) 6,212,873 6,212,873 2,117,099 Total Deferred Inflows of Resources 121,050,764 - 121,050,764 10,811,336 Total Liabilities and Deferred Inflows of Resources 1,914,763.340 15,837 1,914,779,177 135,262,727 Net Position Net investment in capital assets 1,135,168,681 3,434,892 1,138,603,573 221,845,308 Restricted for: Capital Projects 30,029,361 - 30,029,361 - Debt service (note 10) 55,424,702 55,424,702 Highways, streets and abandoned vehicles 114,030,803 114,030,803 Public access open space 22,747,055 22,747,055 Disaster and emergencies 11,498,359 11,498,359 Other 5,505,982 5,505,982 - Unrestricted (611,283,695) 1,259,755 (610,023,940) 27,983,824 Total net position $ 763,121,248 $ 4,694,647 $ 767,815,895 $ 249,829,132 See accompanying notes to the basic financial statements. -30- COUNTY OF HAWAI`I Statement of Activities For the Fiscal Year Ended June 30, 2024 Functions/Programs Primary government: Governmental activities: General government Public safety Highways and streets Health, education and welfare Culture and recreation Sanitation Interest on long-term debt Total governmental activities Business -type activities: Health, education and welfare Total primary government Component unit: Water (note 14) Program Revenues Operating Capital Charges for Grants and Grants and Expenses Services Contributions Contributions $ 126,527,858 $ 2,751,041 $ 260,420,327 8,457,724 90,918,955 18,057,208 83,470,948 2,699,332 33,445,396 2,573,896 71,863,269 35,918,451 16,249,515 - 682,896,268 70,457,652 5,376,331 $ 3,231,756 38,387,161 193,404 5,902,197 20,560,831 53,580,958 1,913,804 209,019 139,669 1,463,065 4,004,047 104,918,731 29,943,511 969,063 603,796 396,005 - $ 683,865,331 $ 71,061,448 $ 105,314,736 $ 29,943,511 $ 66,831,155 $ 69,084,598 $ - $ 9,174,072 General revenues: Taxes: Property taxes, levied for general purposes Public service company taxes County transient accomodations tax Franchise taxes Fuel taxes General excise tax surcharge Grants and contributions not restricted to specific programs Investment earnings Miscellaneous Total general revenues and transfers Change in net position Net position, beginning of fiscal year Net position, end of fiscal year See accompanying notes to the basic financial statements. -31- COUNTY OF HAWAII Statement of Activities For the Fiscal Year Ended June 30, 2024 Net (Expense) Revenue and Changes in Net Position Primary Government Governmental Business -type Component Activities Activities Total Unit $ (115,168,730) $ - $ (115,168,730) $ - (213,382,038) - (213,382,038) - (46,398,719) - (46,398,719) - (25,376,854) - (25,376,854) - (30,522,812) - (30,522,812) - (30,477,706) - (30,477,706) - (16,249,515) - (16,249,515) - (477,576,3741) - (477,576,374) - - 30,738 30,738 - (477,576,374) 30,738 (477,545,636) - 10,427,515 488,372,488 - 488,372,488 - 10,302,928 - 10,302,928 - 37,374,260 - 37,374,260 - 11,589,997 - 11,589,997 - 21,707,504 - 21,707,504 - 72,740,427 - 72,740,427 - 849,934 - 849,934 - 27,412,752 16,822 27,429,574 1,633,794 1,657,038 - 1,657,038 - 672,007,328 16,822 672,024,150 1,633,794 194,430,954 47,560 194,478,514 12,061,309 568,690,294 4,647,087 573,337,381 237,767,823 $ 763,121,248 $ 4,694,647 $ 767,815,895 $ 249,829,132 -32- Assets Cash and cash equivalents (note 2) Investments (note 2) Receivables, net (note 3) Due from other governmental funds (note 4) Due from nongovernmental funds (note 4) Receivables from other governments (note 3) Inventories Other Total assets Liabilities, Deferred Inflows and Fund Balances Liabilities: Accounts payable Accrued payroll Due to other governmental funds (note 4) Due to nongovernmental funds (note 4) Advance collections -intergovernmental Claims and judgments (notes 10, 12 and 14) Other Total liabilities Deferred Inflows of Resources: Unavailable revenue (note 6) Deferred inflows related to advance collections of real property taxes and liquor licenses Deferred inflows related to leases Total deferred inflows of resources Fund balances: Nonspendable: Inventory & Prepaid Restricted for: Debt service (note 10) Highways, streets and abandoned vehicles Parks and recreational projects Public access open space Disaster and emergencies General & public safety facilities Other Committed to: Budget stabilization Lower Puna area Housing. 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 Unassigned Total fund balances Total liabilities, deferred inflows, and fund balances See accompanying notes to the basic financial statements. COUNTY OF HAWAI`I Governmental Funds Balance Sheet June 30, 2024 Hawaii County Other Total Capital Housing Governmental Governmental General Projects Agency Funds Funds $ 278,789,065 $ 169,730,080 $ 35,846,212 $ 158,442,270 $ 642,807,627 39,972,795 4,832,630 - 43,500,000 88,305,425 42,500,241 - 686,211 5,063,805 49,250,257 55,551,188 794,499 139,825 1,075,308 57,560,820 - - 8,235 164,280 172,515 22,266,657 27,257,886 580,653 29,107,829 79,213,024 9,243,083 - - - 9,243,083 4,756,062 1,065,607 78,572 2,810,163 8,710,404 $ 453,079,091 $ 203, 880,702 $ 37,339,708 $ 240,163,654 $ 934,263,155 $ 10,951,899 $ 12,547,543 $ 194,658 $ 8,351,133 $ 32,045,233 12,238,747 - 250,965 1,937,986 14,427,698 639,449 52,980,501 147,423 3,793,447 57,560,820 - 65,646 - - 65,646 86,981,844 914,498 13,769,751 11,998 101,678,091 70,000,000 - - - 70,000,000 9,434,354 1,280,896 343,057 413,754 11,472,061 190,246,293 67,789,084 14,705,854 14,508,318 287,249,549 40,029,211 5,153,109 274,080 5,063,805 50,520,205 6,026,191 - - - 6,026,191 908,500 479,569 1,269,642 2,657,711 46,963,902 5,153,109 753,649 6,333,447 59,204,107 9,243,083 9,243,083 - 55,424,702 55,424,702 80,770,744 114,030,803 194,801,547 - 30,644,719 - 30,644,719 22,747,055 - 22,747,055 16,795,075 - 16,795,075 - 4,619,030 - 4,619,030 1,560,751 828,196 1,368,854 2,576,377 6,334,178 8,728,269 - - - 8,728,269 - - 5,636,931 5,636,931 20,511,351 1,228,396 21,739,747 - - 29,705,152 29,705,152 3,352,972 - 3,352,972 - 1,103,191 9,901,161 11,004,352 2,614,299 64,980 2,679,279 - 4,855,075 - 4,855,075 341,234 1,221,904 753,387 2,316,525 37,577,091 - 21,646,139 4,081,351 93,877,227 - - 215,868,896 130,738,509 21,880,205 $ 453,079,091 $ 203,680,702 $ 37, 339,708 37,577,091 25,727,490 - 93,877,227 219,321,889 587,809,499 $ 240 663,654 $ 934,263,155 -33- COUNTY OF HAWAI`I Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position June 30, 2024 Total fund balances - governmental funds $ 587,809,499 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 reported in the funds. These assets consist of: Subscription assets, net 13,328,429 Land and improvements 399,404,732 Infrastructure assets, net 267,166,648 Buildings and improvements, net 676,647,412 Equipment, net 71,153,528 Easements, net 30,520,115 Right to use assets, net 18,184,803 Construction work in progress 147,662,342 Total capital assets, net Deferred amounts on refunding, pension and other post employment benefits are reported as deferred outflows of resources in the government -wide financial statements but are not reported in the governmental fund statements Some of the County's revenues will be collected after year-end but are not available soon enough to pay for the current period's expenditures and therefore are unavailable in the funds. (note 6) Some liabilities are not due and payable in the current period and therefore are not reported in the funds. Those liabilities consist of: Subscription liability (12,608,742) Bonds and loans payable, net of receivable from improvement district (520,002,237) Interest due on long-term debt (7,363,691) Leases and other financing agreements (30,308,112) Compensated absences (50,434,532) Claims and judgments (12,812,994) Landfill costs payable (11,549,000) Pollution remediation (17,323,913) Underground storage tank liability (1,775,000) Net OPEB liability (261,401,395) Net pension obligation (634,255,399) Total long-term liabilities Unamortized gain on refunding Deferred amounts related to pension and other post employment benefits are reported as deferred inflows of resources in the government -wide financial statements but are not are not reported in the governmental fund statements Net position of governmental activities See accompanying notes to the basic financial statements. 1,624,068,009 173,387,837 52,991,234 (1,559,835,015) (462,425) (114,837,891) $ 763,121,248 -34- COUNTY OF HAWAI`I Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances For the Fiscal Year Ended June 30, 2024 Revenues Property taxes Public service company taxes County transient accomodations tax Fuel taxes Public utility franchise taxes Licenses and permits General excise tax surcharge Intergovernmental Charges for services Investment earnings, net Other Total revenues 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 Hawaii County Other Total Capital Housing Governmental Governmental General Projects Agency Funds Funds $ 483,004,239 $ - $ - $ - $ 483,004,239 10,302,928 - - - 10,302,928 37,178,793 - - - 37,178,793 - - - 21,707,504 21,707,504 - - - 11,589,997 11,589,997 11,658,143 - - 16,590,934 28,249,077 - - - 72,740,427 72,740,427 63,513,498 18,027,387 41,938,694 4,482,110 127,961,689 1,808,877 - - 33,235,397 35,044,274 28,327,692 98,239 727,454 291,328 29,444,713 2,153,109 30,226 1,760,686 1,522,924 5,466,945 637,947,279 18,155,852 44,426,834 162,160,621 862,690,586 138,239,885 - - 3,126,852 141,366,737 170,414,741 - - 12,347,415 182,762,156 2,682,930 - - 52,671,521 55,354,451 24,599,219 - 46,727,474 1,012,285 72,338,978 30,359,825 - - 1,884,519 32,244,344 120,085 - - 58,640,180 58,760,265 69,792,732 - 1,205,806 9,487,689 80,486,227 19,389,598 - 409,073 3,755,326 23,553,997 44,136,000 - - - 44,136,000 7,620,588 - 87,569 1,249,454 8,957,611 6,693,492 - 341,920 64,084,406 71,119,818 1,199,400 - 146,609 19,970,730 21,316,739 21,341,360 82,653,564 - - 103,994,924 536,589,855 82,653,564 48,918,451 228,230,377 896,392,247 101,357,424 (64,497,712) (4,491,617) (66,069,756) (33,701,661) (Continued) -35- COUNTY OF HAWAI`I Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances For the Fiscal Year Ended June 30, 2024 (Concluded) Hawaii County Other Total Capital Housing Governmental Governmental General Projects Agency Funds Funds Other Financing Sources (Uses) Sale of assets S 6,999 $ - $ - $ - S 6,999 Increase in right of use and subscription assets (notes 7, 8, and 10) 16,623,074 - 2,257,251 4,381,847 23,262,172 State Revolving Fund loans (note 10) - 12,666,494 - - 12,666,494 Transfers in (note 4) - 42,962,289 11,503,333 118,912,263 173,377,885 Transfers out (note 4) (92,854,065) (28,500,000) - (52,023,820) (173,377,885) Total other financing sources (uses) (76,223,992) 27,128,783 13,760,584 71,270,290 35,935,665 Net change in fund balances 25,133,432 (37,368,929) 9,268,967 5,200,534 2,234,004 Fund balances at beginning of fiscal year 190,735,464 168,107,438 12,611,238 214,121,355 585,575,495 Fund balances at end of fiscal year S 215,868,896 $130,738,509 $ 21,880,205 $ 219,321,889 S 587,809,499 See accompanying notes to the basic financial statements -36- COUNTY OF HAWAI`I Reconciliation of the Change in Fund Balances of Governmental Funds to the Statement of Activities For the Fiscal Year Ended June 30, 2024 Net change in fund balances - total governmental funds S 2,234,004 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 and amortization expense. In the current period, these amounts are: Capital outlay 115,276,674 Dedicated and contributed property 3,605,324 Right of use assets 3,738,500 Subscription assets 11,648,488 Depreciation and amortization expense and loss on disposals (59,977,726) Excess of capital outlay over depreciation and amortization expense 74,291,260 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: State Revolving Fund loans (12,666,494) Subscription liabilities (11,648,488) Leases and other financing agreements (11,613,684) Total debt proceeds (35,928,666) Repayment of long-term debt is reported as an expenditure in governmental 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, net of receivable from improvement district 29,738,858 Bond anticipation notes repayment 28,500,000 State Revolving Fund loan repayments and forgiveness 7,644,873 Subscription payments 2,378,638 Lease and other financing agreements payments 6,717,248 Total long-term debt repayment 74,979,617 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. Unavailable revenues increased by this amount this year. 6,592,182 (Continued) -37- COUNTY OF HAWAI`I Reconciliation of the Change in Fund Balances of Governmental Funds to the Statement of Activities For the Fiscal Year Ended June 30, 2024 Some items reported in the statement of activities do not involve current financial resources and therefore are not reported as expenditures in governmental funds. These activities are: Net increase in compensated absences Net decrease in claims and judgments Net increase in landfill closure/postclosure care costs Net decrease in pollution remediation costs Amortization of premium from bond issuance Amortization of deferred loss on refunding Amortization of gain on refunding Net increase in accrued interest Net increase to expenses related to net OPEB liability Net decrease to expenses related to pension and salaries and wages Net additional expenses Change in net position of governmental activities See accompanying notes to the basic financial statements. S (1,861,445) 29,945,956 (672,000) 64,763 6,140,253 (653,050) 102,761 (522,740) 29,743,911 9,974,148 (Concluded) 72262.557 S 194,430,954 -38- COUNTY OF HAWAI`I Proprietary Funds Statement of Net Position June 30, 2024 Assets Current assets: Cash and cash equivalents (note 2) Restricted cash and cash equivalents (note 2) Imprest fund (note 2) Receivables, net (note 3) Due from governmental funds (note 4) Prepaid expenses Total current assets Noncurrent assets: Restricted cash and cash equivalents (note 2) Capital assets (note 5): Land and site improvements Buildings and equipment Less accumulated depreciation Construction work in progress Total capital assets Total noncurrent assets Total assets Liabilities Current liabilities: Accounts payable Due to governmental funds (note 4) Security deposits payable from restricted assets Unearned revenue Interest payable Total current liabilities Net Position Net investment in capital assets Unrestricted Total net position See accompanying notes to the basic financial statements. Business -type Activities - Enterprise Funds Kulaimano Ouli Ekahi Elderly Affordable Housing Housing Project Project Total S 586,104 S 560,838 S 1,146,942 14,623 34,119 48,742 50 100 150 9,323 2,139 11,462 65,646 - 65,646 16,740 - 16,740 692,486 597,196 1,289,682 146,710 77,361 224,071 511,000 515,727 1,026,727 3,107,551 1,057,070 4,164,621 (1,613,974) (247,738) (1,861,712) - 105,256 105,256 2,004,577 1,430,315 3,434,892 2,151,287 1,507,676 3,658,963 2,843,773 2,104,872 4,948,645 17,964 11,965 29,929 171,099 1,416 172,515 14,616 29,048 43,664 2,996 3,105 6,101 1,789 - 1,789 208,464 45,534 253,998 2,004,577 1,430,315 3,434,892 630,732 629,023 1,259,755 S 2,635,309 S 2,059,338 S 4,694,647 -39- COUNTY OF HAWAI`I Proprietary Funds Statement of Revenues, Expenses, and Changes in Fund Net Position For the Fiscal Year Ended June 30, 2024 Operating revenues: Rental receipts from tenants Rental subsidy from federal government - HUD Laundry receipts Other Total operating revenues Operating expenses: Utilities General and administration Maintenance and repairs Depreciation (note 5) Total operating expenses Operating income (loss) Nonoperating revenues (expenses): Investment income Interest expense Loss on disposal of capital assets Total nonoperating revenues, net Change in net position Net position, beginning of fiscal year Net position, end of fiscal year See accompanying notes to the basic financial statements. Business -type Activities - Enterprise Funds Kulaimano Ouli Ekahi Elderly Affordable Housing Housing Project Project Total $ 179,717 S 408,759 $ 588,476 396,005 - 396,005 413 - 413 2,407 12,500 14,907 578,542 421,259 999,801 59,320 130,868 190,188 281,371 171,455 452,826 74,730 105,281 180,011 105,588 32,300 137,888 521,009 439,904 960,913 57,533 (18,645) 38,888 13,559 3,263 16,822 (7,443) - (7,443) (573) (134) (707) 5,543 3,129 8,672 63,076 (15,516) 47,560 2,572,233 2,074,854 4,647,087 $ 2,635,309 S 2,059,338 $ 4,694,647 -40- COUNTY OF HAWAI`I Proprietary Funds Statement of Cash Flows For the Fiscal Year Ended June 30, 2024 Cash Flows from Operating Activities Receipts from tenants Receipts from federal government - HUD Payments to suppliers for goods and services Net cash provided by operating activities Cash Flows from Capital and Related Financing Activities Principal paid on notes payable Interest paid on notes payable Purchase of capital assets Net cash used in capital and related financing activities Cash Flows from Investing Activities Interest on investments Net cash provided by investing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of fiscal year (including restricted cash and cash equivalents) Cash and cash equivalents at end of fiscal year (including restricted cash and cash equivalents) Reconciliation of Operating Income (Loss) to Net Cash Provided by Operating Activities Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided by operating activities: Depreciation expense Change in assets and liabilities: Receivables, net Due from governmental funds Prepaid expenses Accounts payable Due to other funds Security deposits payable Unearned revenue Net cash provided by operating activities See accompanying notes to the basic financial statements. Business -type Activities - Enterprise Funds Kulaimano Ouli Elcahi Elderly Affordable Housing Housing Project Project Total $ 186,577 $ 424,564 $ 611,141 396,005 - 396,005 (494,406) (409,056) (903,462) 88,176 15,508 103,684 (82,585) (8,090) (90,675) (9,013) - (9,013) (26,113) (1,828) (27,941) (117,711) (9,918) (127,629) 13,559 3,263 16,822 13,559 3,263 16,822 (15,976) 8,853 (7,123) 763,463 663,565 1,427,028 $ 747,487 $ 672,418 $ 1,419,905 $ 57,533 $ (18,645) $ 38,888 105,588 32,300 137,888 1,444 6,473 7,917 (65,645) - (65,645) (4,824) - (4,824) (2,229) 302 (1,927) (6,287) (1,754) (8,041) (400) 1,261 861 2,996 (4,429) (1,433) $ 88,176 $ 15,508 $ 103,684 -41- COUNTY OF HAWAI`I Fiduciary Funds Statement of Fiduciary Net Position June 30, 2024 Private - Purpose Custodial Trusts Funds Assets Cash and cash equivalents (note 2) S 577,982 S 5,476,910 Investments (note 2) 2,073,074 - Receivables: Due from other custodial fluids - 12,225 Other receivables - 136,893 Total receivables - 149,118 Total assets 2,651,056 5,626,028 Liabilities Accrued liabilities - 2,146,613 Due to other custodial funds - 12,225 Advances payable - 45,618 Total liabilities - 2,204,456 Net Position Restricted for other parties 2,651,056 3,421,572 Total net position S 2,651,056 S 3,421,572 See accompanying notes to the basic financial statements. -42- COUNTY OF HAWAII Fiduciary Funds Statement of Changes in Fiduciary Net Position For the Fiscal Year Ended June 30, 2024 Private - Purpose Custodial Trusts Funds Additions Tax collections for state $ - $ 30,133,621 Special assessment collections - 2,469,471 Developer deposit - 75,000 Employee collections - 561,008 Lapsed checks - 96,637 Collections from vehicle registrations and licenses - 320,456 Investment earnings 224,691 88,679 Total additions 224,691 33,744,872 Deductions Grant payments 83,391 - Payment of taxes to state - 29,006,902 Payments to state, not for profits and improvement district - 1,415,290 Contributions to debt repayment - 265,870 Administrative charges - 1,177,721 Community facility district expenses - 972,597 Reissuance of checks - 27,542 Reimbursements to employees - 566,446 Investment Fees 15,789 - Other - 41,157 Total deductions 99,180 33,473,525 Change in net position 125,511 271,347 Net position, beginning of fiscal year 2,525,545 3,150,225 Net position, end of fiscal year $ 2,651,056 $ 3,421,572 See accompanying notes to the basic financial statements. - 43 - COUNTY OF HAWAI`I Notes to the Basic Financial Statements June 30, 2024 The accounting policies of the County of Hawaii (the County) conform to U.S. generally accepted accounting principles (GAAP) as applicable to local governmental units. The following notes to the basic financial statements are an integral part of the County's Annual Comprehensive Financial Report (ACFR). 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Financial Reporting Entity The County has implemented Governmental Accounting Standards Board Statement No. 14, The Financial Reporting Entity (GASB Statement No. 14), Statement No. 39, Determining Whether Certain Organizations Are Component Units (GASB Statement No. 39) and Statement No. 61, 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, as amended, No. 39 and No. 61 for inclusion in the reporting entity are included in the County's basic financial statements. Primary Government 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 Hawaii (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 amended, 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 management's professional judgment, that the inclusion of an organization that does not meet 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 the organization to provide specific financial benefits to, or impose specific financial burdens 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 perfonned or provided by the organization. An organization has a financial benefit or burden relationship with the primary government if any one of three conditions exist: (1) The primary government is legally entitled to or can otherwise access the organization's resources; (2) The primary government is legally obligated or has otherwise assumed the obligation to finance the deficits of, or provide financial support COUNTY OF HAWAI`I Notes to the Basic Financial Statements June 30, 2024 to, the organization; or (3) The primary government is obligated in some manner for the debt of the organization. As required by GAAP as set forth in GASB Statement No. 14, No. 39 and No. 61, these basic financial statements present the County of Hawai `i (the primary government) and its component unit, the Department of Water Supply (the Department). This component unit is included in the County's reporting entity because the County is financially accountable for it. Discretely Presented Component Unit The component unit column in the basic financial statements includes the financial data of the Department, a legally independent agency of the County that is accounted for as an enterprise fund. It is reported in a separate column to emphasize that it is legally separate from the County. The members of the Water Board, the governing body of the Department, are appointed by the Mayor of the County and confirmed 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 the 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 Kekuanao`a Street, Suite 20, Hilo, Hawaii 96720. Basic Financial Statements The basic financial statements include both government -wide (based on the County as a whole) and fund financial statements. Both the government -wide and fund financial statements (within the basic financial statements) categorize primary activities as either governmental or business - type. In the government -wide statement of net position, both the governmental and business - type activities columns (a) are presented on a consolidated basis by column, (b) and are reflected on a full accrual, economic resource basis, which incorporates long-term assets and receivables as well as long-term debt and obligations. 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 operating -specific and discretionary (either operating or capital) grants while the capital grants column reflects capital -specific grants. The net cost (by function or business -type activity) is normally covered by general revenues. -45- COUNTY OF HAWAI`I Notes to the Basic Financial Statements June 30, 2024 The government -wide focus is more on the sustainability of the County as an entity and the change in aggregate financial position resulting from the activities of the fiscal period. The fund financial statements' emphasis is on the major funds in either the governmental or business -type categories. Nonmajor funds (by category) are summarized into a single column. 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 the 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 the 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 funds are presented in the fund financial statements by type (private purpose and custodial). 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 statements. Government -wide and fiend financial statements — The government -wide financial statements (i.e., the statement of net position and the 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 the process of incorporating fund data but interfund services provided and used have not been eliminated in the process of consolidation. Governmental activities, which normally 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. COUNTY OF HAWAII Notes to the Basic Financial Statements June 30, 2024 Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government -wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. Activities in funds — 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 —for State and Local Governments, sets forth minimum criteria (percentage of the assets, deferred outflows of resources, liabilities, 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. The County reports the following major governmental funds: General Fund — The general fund is the general operating fund of the County. It is used to account for all activities of the general government, except those required to be accounted for in other funds. Capital Projects Fund — Used to account for the costs of constructing County capital improvements financed with general obligation bond proceeds, federal and state grants, 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. Housing Agency — The Housing Agency is used to account for Federal and County moneys used to provide public housing assistance within the County. The County reports the following major proprietary funds: Kula`imano Elderly Housing Project — Used to account for the operation of a rental housing project for low-income senior citizens located north of Hilo. Ouli Ekahi Affordable Housing Project — Used to account for the operation of a 33-unit single-family affordable rental housing project located in Waimea. -47- COUNTY OF HAWAII Notes to the Basic Financial Statements June 30, 2024 The County reports the following fiduciary funds: Private -Purpose Trust Funds — Used to account for investment income on funds received from import businesses at the port of Hilo and the related expenditures to promote health and safety on the Island of Hawaii. Custodial Funds — Used to account for assets held by the County for other governmental units and individuals. The custodial funds are custodial in nature. The County has the following custodial funds: • State Weight Tax Fund • Improvement District No. 18 Fund • Improvement District No. 19 Fund • Improvement District No. 20 Fund • Improvement District Revolving Fund • Performance and Refundable Deposits Fund • Flexible Spending Account • Lapsed Warrants Fund • Non -Profit License Plates Fund • Organ and Tissue Education Fund • Business Improvement District 1-Kailua Basis of Accounting Basis of accounting refers to the period in which revenues and expenditures (or expenses) are recognized in the accounts and reported in the basic financial statements. Basis of accounting relates to the timing of the measurements made, regardless of the measurement focus applied. The government -wide financial statements and the proprietary, fiduciary and component unit 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. Accrual Basis - Revenues are recognized when earned and expenses are recognized when the related obligation is incurred. Modified Accrual Basis - Revenues are recorded when susceptible to accrual (that is, both measurable and available). "Measurable" means the amounts are determinable. "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. Licenses and permits, charges for current services, fines and forfeitures, penalties and miscellaneous revenues are recorded as revenues when received in cash because they are generally not measurable until actually received. Real property taxes and State Revolving Fund loan proceeds are considered available when collected. COUNTY OF HAWAI`I Notes to the Basic Financial Statements June 30, 2024 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 operating grants fall into this category. In the other, monies are virtually unrestricted as to purpose 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 6). 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 revenue recognition 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, excluding temporary hazard pay, which are recognized as expenditures when paid; (b) liabilities related to municipal solid waste landfill closure and post closure 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. Encumbrances The general, special revenue, and capital projects funds follow encumbrance accounting under which purchase orders, contracts and other commitments are recorded as an obligation of fund 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. 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. Investments consist of certificates of deposit, repurchase agreements, and securities with original maturities exceeding three months. These include participating investment contracts (U.S. government sponsored agency issues and negotiable certificates of deposit) as well as nonparticipating investment contracts (time certificates of deposit and repurchase agreements). Both categories of investments are stated at fair value (see Note 2). Valuations of investments COUNTY OF HAWAI`I Notes to the Basic Financial Statements June 30, 2024 in government sponsored enterprises such as Federal National Mortgage Association (Fannie Mae) and Federal Home Loan Mortgage Corporation (Freddie Mac) are based on quoted market rates. Investments also consist of equity securities in the fiduciary fund financial statements. These investments are stated at fair value based on closing quoted prices. Real Property Taxes The County's real property taxes are levied on July 1 each year on assessed valuation as of January 1. The taxes become a lien on the property assessed as of the levy date. Taxes are due and payable in two equal annual installments on August 20 and February 20. Accordingly, real property taxes receivable as of June 30 are delinquent. Each delinquent installment bears interest at 1 % 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 Hawaii 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 growth. A qualified business in an enterprise zone must satisfy the requirements of Chapter 31 of the Hawaii County Code and section 208E, Hawaii Revised Statutes. Historic Residential Dedication Exemption — Section 19-89.1 of the Hawaii County Code and Rule 36 of the Rules and Regulations of the Director of Finance provides an exemption to encourage the preservation of residential structures that have been placed on the Hawaii Register of Historic Places after January 1, 1977. The property owner must provide visual access on a year-round basis or open the property to the public for twelve days per year. The 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 made upon five years' written advance notice and no earlier than the end of the fifth tax year. Any person who becomes an owner of the dedicated real property shall be subject to the restrictions and retroactive tax assessment provisions. If the dedication is approved, the exemption based upon the dedication shall be effective July 1 of the tax year following the approval of the dedication. The dedicated exempt property or portion of the property approved shall be subject to the minimum tax provisions of Section 19-90(e) of the Hawaii County Code. If there is a breach in the agreement, the property would be subject to roll back taxes, including penalty and interest. -50- COUNTY OF HAWAI`I Notes to the Basic Financial Statements June 30, 2024 Low and Moderate Income Housing Exemption — Section 19-87 of the Hawaii 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 elderly, handicapped, 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 Hawaii 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 Hawaii 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 two times the dedicated 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 along with a plot plan and provide details as to what agricultural activities are conducted on the property. Upon review and approval, the application is effective as of January 1 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 years taxes plus penalties and interest. Commercial Agricultural Use Dedication. — Section 19-60 of the Hawaii County Code and Rule 31 of the Rules and Regulations of the Director of Finance provides reduced assessments to encourage local agricultural production as well as the preservation of agricultural lands that could otherwise be further developed, by valuing the dedicated lands at the agricultural use value as opposed to the market value. An application form must be filed along with a plot plan and provide details as to what agricultural activities are conducted on the property. Upon review and approval, the owner is required to record the dedication at the Bureau of Conveyances. There is currently only one available dedication length which is a 10-year period, however, previously there was a 20-year dedication. This dedication does not automatically renew. Valuation consideration is given to the type of agricultural activity. Any breach to the terms of the recorded dedication would result in the cancellation of the dedication, or portion thereof, and the immediate rollback calculation of taxes plus penalties and interest. -51- COUNTY OF HAWAI`I Notes to the Basic Financial Statements June 30, 2024 Solar Water Heater Credit- Section 19-104 of the Hawaii County Code provides a one-time tax credit per tax map key for up to $300 for the owner of real property who installs a solar water heater on the owner's property on or after January 1, 2008. This program was created with the purpose of providing an incentive to support renewable energy. The owner must apply for the credit. Information relevant to the disclosure of these programs for the fiscal year ended June 30, 2024, is as follows: Tax Abatement Program Enterprise Zone Historic Residential Dedication Low- and Moderate -Income Housing Agricultural Use Programs Solar Water Heater Credit Inventories Amount of Taxes Abated - as defined by GASB 77 $ 415,406 $ 1,467,922 $ 37,483,717 $ 58,314 Inventories consist of materials and supplies and are reported as expenditures at the time of consumption (consumption method). Police and fire department inventories are stated using the first in, first out (FIFO) method. Other inventories are stated at average cost. Liquor Control Section 281 of the Hawaii Revised Statutes requires that liquor license revenues collected be used only for costs and expenses directly relating to operational and administrative costs actually incurred by the liquor commission collecting such fees. The unexpended fees at June 30, 2024, of $1,560,751 are reflected as a restriction of general fund balance. Capital Assets Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, curbs and gutters, streets and sidewalks, drainage systems, lighting systems, and similar items), are reported in the applicable governmental or business -type activities columns 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 value at the date of donation. -52- COUNTY OF HAWAII Notes to the Basic Financial Statements June 30, 2024 The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend the life of the asset are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed to the extent the County's capitalization thresholds are met. Capital assets of the primary government and enterprise fund are depreciated or amortized using the straight-line method over the following estimated useful lives of the assets: Assets Infrastructure Buildings and improvements Ground and site improvements Equipment Easements Right to use leased assets Ye ars 20 to 100 years 50 to 100 years 20 to 50 years 5 to 40 years Dependent on terms of easement agreement Dependent on terms of lease agreement Deferred Outflows of Resources and Deferred Inflows of Resources Deferred outflows of resources represent a consumption of net assets that applies to future periods and will not be recognized as an outflow of resources (expense or expenditure) until that time. The County has three items that qualifies for reporting in this category. The County reports the deferred loss on refunding and deferred outflow related to both pensions and other postemployment benefits (OPEB) as a deferred outflow of resources in its statement of net position. Deferred inflows of resources represent an acquisition of net assets that applies to future periods and will not be recognized as an inflow of resources (revenue) until that time. Property taxes, fees, certain grants, lease rental income and other non -exchange transactions received in the current fiscal year for the ensuing fiscal year are reported as deferred inflows of resources. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. The County also reports deferred inflows of resources related to both pensions and other postemployment benefits (OPEB). Long-term Obligations 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 funds are reported as liabilities in those funds. -53- COUNTY OF HAWAI`I Notes to the Basic Financial Statements June 30, 2024 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 off 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 off an employee can accumulate. Both compensatory time off and vacation credits are converted 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 along 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, 2024, totaled $85,072,568 for the primary government. Leases Lessee The County has a policy to recognize a lease liability and a right -of -use lease asset (lease asset) in the government -wide financial statements. Variable payments based on future performance of the lessee or usage of the underlying asset are not included in the measurement of the lease liability. At the commencement of a lease, the County initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made. Lease assets are recorded at the amount of the initial measurement of the lease liabilities and modified by any lease payments made to the lessor at or before the commencement of the lease term, less any lease incentives received from the lessor at or before the commencement of the lease term along with any initial direct costs that are ancillary charges necessary to place the lease assets into service. Lease assets are amortized using the straight-line method over the shorter of the lease term or the useful life of the underlying asset, unless the lease contains a purchase option that the County has determined is reasonably certain of being exercised. In this case, the lease asset is amortized over the useful life of the underlying asset. -54- COUNTY OF HAWAII Notes to the Basic Financial Statements June 30, 2024 Key estimates and judgments related to leases include how the County determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments. The County uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, the County generally uses its estimated incremental borrowing rate as the discount rate for leases. The lease term includes the noncancellable period of the lease. Lease payments included in the measurement of the lease liability are composed of fixed payments and purchase option price that the County is reasonably certain to exercise. The County monitors changes in circumstances that would require a remeasurement of its lease and will remeasure any lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability. Lease assets are reported in capital assets and lease liabilities are reported with long-term liabilities on the statement of net position. Lessor The County is a lessor for leases of real property. The County recognizes leases receivable and deferred inflows of resources in the financial statements. Variable payments based on future performance of the lessee or usage of the underlying asset should not be included in the measurement of the lease receivable. At the commencement of a lease, the County initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflows of resources are initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflows of resources are recognized as revenue over the lease term in a systematic and rational method. Key estimates and judgments include how the County determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts. The County uses its estimated incremental borrowing rate as the discount rate for leases. The lease term includes the noncancellable period of the lease. Lease receipts included in the measurement of the lease receivable is composed of fixed payments from the lessee. The County monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable. -55- COUNTY OF HAWAII Notes to the Basic Financial Statements June 30, 2024 Subscription -Based Information Technology Arrangement The County has a policy to recognize a subscription liability and a right -of -use subscription asset (subscription asset) in the government -wide financial statements. Variable payments based on future performance of the County, usage of the underlying IT asset, or number of user seats are not included in the measurement of the subscription liability, rather, those variable payments are recognized as outflows of resources (expenses) in the period the obligation for those payments is incurred. At the commencement of a subscription -based information technology arrangement (SBITA), the County initially measures the subscription liability at the present value of payments expected to be made during the subscription term. Subsequently, the subscription liability is reduced by the principal portion of subscription payments made. Subscription assets are recorded at the amount of the initial measurement of the subscription liabilities, plus any payments made to the SBITA vendor before the commencement of the subscription term and capitalizable initial implementation cost, less any incentives received from the SBITA vendor at or before the commencement of the subscription term. Costs associated with a SBITA, other than the subscription payments, are accounted for as follows: Preliminary project stage — Outlays are expensed as incurred. Initial implementation stage — Outlays are capitalized as an addition to the subscription asset. Operation and additional implementation stage — Outlays are expensed as incurred unless they meet specific capitalization criteria. Subscription assets are reported in capital assets and subscription liabilities are reported with long-term liabilities on the statement of net position. Subscription assets are amortized using the straight-line method over the shorter of the subscription term or the useful life of the underlying IT asset, unless the subscription contains a purchase option that the County has determined is reasonably certain of being exercised. In this case, the subscription asset is amortized over the useful life of the underlying IT asset. Key estimates and judgments related to SBITAs include how the County determines (1) the discount rate it uses to discount the expected subscription payments to present value, (2) subscription term, and (3) subscription payments. The County uses the interest rate charged by the SBITA vendor as the discount rate. When the interest rate charged by the SBITA vendor is not provided, the County generally uses its estimated incremental borrowing rate as the discount rate for SBITAs. -56- COUNTY OF HAWAI`I Notes to the Basic Financial Statements June 30, 2024 The subscription term includes the noncancellable period of the SBITAs. Subscription payments included in the measurement of the subscription liability are composed of fixed payments and purchase option price that the County is reasonably certain to exercise. The County monitors changes in circumstances that would require a remeasurement of its subscription liability. Pensions For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Employees' Retirement System of the State of Hawaii (ERS) and 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 refunds of employee contributions) are recognized when due and payable in accordance with the benefit terns. Investments are reported at fair value. Other Postemployment Benefits (OPEB) For the purposes of measuring the net OPEB liability, deferred outflows or resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the Hawaii Employer -Union Health Benefits Trust Fund ("EUTF") and additions to/deductions from EUTF's fiduciary net position have been determined on the same basis as they are reported for EUTF. For this purpose, EUTF recognizes benefit payments when due and payable in accordance with the benefit terms. Investments are reported at fair value, except for investments in commingled and money market funds, which are reported at net asset value (NAV). The NAV is based on the fair value of the underlying assets held by the respective fund less its liabilities. Operating Revenues and Expenses 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, lease rent, and maintenance and repairs; administrative expenses; and depreciation on capital assets. All revenues and expenses not meeting these definitions are reported as nonoperating revenues and expenses. -57- COUNTY OF HAWAII Notes to the Basic Financial Statements June 30, 2024 Use of Estimates The preparation of the basic financial statements in accordance 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 reported amounts of revenues, expenditures, and other financing sources and uses during the reporting period. Actual results could differ from those estimates. Fund Balances When both restricted and unrestricted fund balances are available for use, it is the County's policy to use restricted fund balance first, then unrestricted fund balance. Furthermore, committed fund balances are reduced first, followed by assigned amounts, and then unassigned amounts when expenditures are incurred for purposes for which amounts in any of those unrestricted fund balance classifications can be used. The County reports the following classifications: Nonspendable Fund Balance — Nonspendable fund balances are amounts that cannot be spent because they are either not in spendable form, or, for legal or contractual reasons, must be kept intact. The County has inventory and prepaids included in their nonspendable fund balance. Restricted Fund Balance — Constraints placed on the use of these resources are either externally imposed by creditors (such as through debt covenants), grantors, contributors or other governments or are imposed by law (under the Hawaii Revised Statutes or County of Hawaii Charter). Committed Fund Balance — Committed Fund Balances are amounts that can only be used 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 the extent of such reduction necessitates the use of these funds to prevent a reduction in the level of public services. Upon written determination by the director that such usage is necessary, appropriations from such fund would require passage by two-thirds of the county council as opposed to the usual simple majority. Assigned Fund Balance — Assigned fund balances are amounts that are constrained by the County's intent as determined by the Mayor but are neither restricted nor committed. The COUNTY OF HAWAII Notes to the Basic Financial Statements June 30, 2024 County's only assigned fund balances are in the General Fund and Capital Projects Fund and the majority consists of the portion of fund balance that is intended to balance the subsequent year's budget, which is conveyed by the Mayor via his approval of allotment requests and his approval of the current year's fund balance amount to be included in the submittal for next year's annual budget ordinance. Unassigned 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. The category of Other for the Restricted, Committed and Assigned fund balances on the Governmental Funds Balance Sheet include funds restricted for the proposes of housing and rental assistance; parks and recreation projects; general and public safety facilities; liquor control; taxicab investigations; special duty officers and sewer loan programs. Net Position When both restricted and unrestricted net position are available for use, it is the County's policy to use restricted net position first, and then unrestricted net position. In the government -wide and proprietary fund financial statements, equity is displayed in three components as follows: Net investment in capital assets - This consists of capital assets, net of accumulated depreciation, less the outstanding balances of bonds, mortgages, notes, or other borrowings that are attributable to the acquisition, construction, or improvement of those assets. Restricted - This consists of net position that is restricted by outside parties or by law through constitutional provisions or enabling legislation. Unrestricted - This consists of net position that does not meet the definition of restricted or net investment in capital assets. New Accounting Pronouncements GASB Statement No. 100 The GASB issued Statement No. 100, Accounting Changes and Error Corrections — an amendment of GASB Statement No. 62. The primary objective of this Statement is to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent and comparable information for making decisions or assessing accountability. The requirements of this Statement were effective for the County's fiscal year ended June 2024. Management has determined that this Statement does not have a material impact on the County's financial statements. -59- COUNTY OF HAWAI`I Notes to the Basic Financial Statements June 30, 2024 GASB Statement No. 101 The GASB issued Statement No. 101, Compensated Absences. The primary objective of the Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. The requirements of this Statement are effective for reporting periods beginning after December 15, 2023. The County has not yet determined the effect this Statement will have on its financial statements. GASB Statement No. 102 The GASB issued Statement No. 102, Certain Risk Disclosures. The primary objective of the Statement is to provide users of government financial statements with information about risks related to a government's vulnerabilities due to certain concentrations or constraints that is essential to their analyses for making decisions or assessing accountability. The requirements of this Statement are effective for reporting periods beginning after June 15, 2024. The County has not yet determined the effect this Statement will have on its financial statements. GASB Statement No. 103 The GASB issued Statement No. 103, Financial Reporting Model Improvements. The primary objective of this Statement is to improve key components of the financial reporting model to enhance its effectiveness in providing information that is essential for decision making and assessing a government's accountability. The requirements of this Statement are effective for reporting periods beginning after June 15, 2025. The County has not yet determined the effect this Statement will have on its financial statements. GASB Statement No. 104 The GASB issued Statement No. 104, Disclosure of Certain Capital Assets. The primary objective of this Statement is to improve users of government financial statements with essential information about certain types of capital assets. The requirements of this Statement are effective for reporting periods beginning after June 15, 2025. The County has not yet determined the effect this Statement will have on its financial statements. 2. 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 Hawaii 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. COUNTY OF HAWAI`I Notes to the Basic Financial Statements June 30, 2024 Cash The County maintains a number of checking and savings accounts for various funds and with 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. The carrying amount of the County's deposits (cash, time certificates of deposit, and money market accounts) as of June 30, 2024, was $706,307,956 for the primary government and $6,054,892 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 the primary government and fiduciary funds amounted to $737,148,622 at June 30, 2024. Of that amount, $735,045,482 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 $2,103,140 represent deposits held by a management agent and were uncollateral ized. Accordingly, these deposits were exposed to custodial credit risk. Custodial credit risk is the risk that in the 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 the 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. Investments The County holds investments both for its own benefit and on behalf of some of the fiduciary 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), repurchase agreements and certificates of deposit, while the fiduciary funds also 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 the 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). -61- COUNTY OF HAWAII Notes to the Basic Financial Statements June 30, 2024 The three levels of the fair value hierarchy are described as follows: Level 1 — 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 or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2 — Inputs other than quoted prices included within level 1 that are observable for an asset or liability, either directly or indirectly. If the asset or liability has a specified (contractual) term, a level 2 input must be observable for most of the full term of the asset or liability. Level 2 inputs include: • Quoted prices for similar assets or liabilities in active markets, • 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 market data by correlation or other means. Level 3 — Inputs are unobservable for an asset or liability. Following is a description of the valuation techniques used by the County to measure fair value: Government sponsored securities of $26,176,914, inclusive is debt securities of $9,894,000 in US Treasury, negotiable certificates of deposits of $62,128,511: Valued using quoted prices at the end of the fiscal year for identical or similar assets in markets that are not active (Level 2). Equity securities of $2,073,074: Valued using quoted prices in active markets for identical assets or liabilities that a government can access at the measurement date (Level 1). The County's investments and maturities at June 30, 2024 are as follows: Maturity (in years) Fair Value Less than 1 1 — 5 Investments — Primary Government: Certificates of deposit $ 62,128,511 $ 53,850,564 $ 8,277,947 Government sponsored securities 26,176,914 12,310,231 13,866,683 $ 88,305,425 $ 66,160,795 $ 22,144,630 Investments — Private -Purpose Trusts: Equity securities $ 2,073,074 $ 2,073,074 $ - -62- COUNTY OF HAWAII Notes to the Basic Financial Statements June 30, 2024 Interest Rate Risk: The County minimizes its exposure to interest rate risk by limiting the maturities of investments to five years or less in compliance with state statute. The County's policy is to hold investments until maturity and does not engage in trading for capital gains. Credit Risk: The County's investment portfolio primarily consists of U.S. government or agency obligations, bonds of government sponsored enterprises, time certificates of deposit and repurchase agreements. These investments are either insured by the FDIC, secured by collateral or carry a credit rating equivalent to U.S. Treasuries. Custodial Risk: Custodial risk is the risk of loss from the failure of the counterparty, which is defined as any entity that obtained an investment on behalf of the County. All of the County's deposits including repurchase agreements are secured by collateral which is kept by a third - party custodian. Broker -dealers utilized by the County are members of the Securities Investor Protection Corporation, and all investment securities are held in the County's name. Concentration of Credit Risk: State law limits deposits to no more than 60% of the total in any one depository. The County seeks to further diversify its portfolio by purchasing from different issuers, by purchasing different types of investments and by purchasing investments at different maturities. The County also purchases its investments from a number of banks and broker - dealers both located locally and on the mainland. As of June 30, 2024, investments were distributed as follows: Bank of Hawaii, 18.3%; Bank of Hawaii Investments, 14.2%; Central Pacific Bank, 13.3%; First Hawaiian Bank, 26.1 %; FTN Financial, 0.6%; Hawaii National Bank, 5%; JP Morgan Chase Bank, 1.7%; Multi Bank Securities, 1.8%; Raymond James, 0.8%; Stiefel Nicolaus & Company, 2.6% and Territorial Savings Bank, 15.6%. Restricted Cash and Cash Equivalents and Investments Cash and cash equivalents and investments classified as restricted assets for the primary government on June 30, 2024, amounted to $380,120,237. Construction related contributions and unspent bond proceeds restricted to various capital improvement projects and fuel tax funds received are recorded as restricted assets in the Capital Projects Fund. Such funds totaled $154,730,058 on June 30, 2024. Cash and investments in the Bond Redemption Fund and the Interest Fund are restricted to debt service -related payments and amounted to $55,498,443. Cash in the Highway Fund, Bikeway Fund, General Excise Tax and Beautification Fund are restricted to costs incurred relating to highways and streets and the beautification of such items and amounted to $91,684,167. Cash in the Hawaii County Housing Agency and Short-term Vacation Rental Enforcement Fund classified as restricted to provide public housing assistance and housing rules enforcement amounted to $36,095,819. -63- COUNTY OF HAWAI`I Notes to the Basic Financial Statements June 30, 2024 Cash in the Geothermal Asset Fund classified as restricted to compensating persons impacted by geothermal energy development activities amounted to $2,576,377. The restricted cash in the General Fund was comprised of cash restricted to costs incurred to administer the liquor commission; cash restricted to the acquisition and maintenance of lands or property entitlements for public outdoor recreation and education and cash and investments restricted for disasters and emergencies. Such amounts totaled $1,560,750, $22,233,109 and $15,468,700, 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 $14,623 and $34,119, respectively, on June 30, 2024. An operating reserve fund was established by the Ouli Ekahi Affordable Housing Project pursuant to an agreement with the Hawaii Housing Finance and Development Corporation, who are the holders of the project's note. This restricted reserve amounted to $77,361 on June 30, 2024. 3. RECEIVABLES Receivables as of June 30, 2024, for the County's individual major funds and other funds in the aggregate, including the applicable allowances for uncollectible accounts, are as follows: Governmental activities: Real property taxes Transient Accommodations Tax Housing fraud recovery, lease and other housing Accounts receivable: Hawaii Capital County Other General Projects Housing Governmental Fund Fund Agency Funds $49,362,225 $ 3235,750 - - - 957,408 Total - $ 49,362,225 - 3,235,750 - 957,408 Sewer - - - 31817,376 3,817,376 Solid waste - - - 21486,401 2,486,401 Tntergovernmental 22,266,657 27,257,886 580,653 29,107,828 79,213,024 Gross receivables 74,864,632 27,257,886 1,538,061 35,411,605 139,072,184 Less: allowance for uncollectibles (10,097,734) - (271,197) (1,239,972) (11,608,903) Net total receivables $64,766,898 $27,257,886 $ 1,266,864 $ 34,171,633 $ 127,463,281 During fiscal year 2005, the County issued $3,887,493 in general obligation bonds on behalf of Improvement District No. 18, a custodial fund. On February 12, 2013, bonds were issued to refund the outstanding principal balance of $1,345,945 for the Improvement District. COUNTY OF HAWAII Notes to the Basic Financial Statements June 30, 2024 During fiscal years 2014 and 2015, the County also issued $448,669 and $720,331, respectively, in general obligation bonds on behalf of Improvement District No. 19, a custodial fund. During fiscal year 2021, the County issued $2,437,000 in general obligation bonds on behalf of Improvement District No. 20, a custodial fund. On June 30, 2024, the outstanding balance for the Improvement Districts of $3,726,407 is reflected in the government -wide statement of net position as a receivable (see Note 10). Business -type activities: Enterprise Funds Accounts receivable: Rent $ 16,373 Other 7,199 Gross receivables 23,572 Less: allowance for uncollectibles (12,110) Net total receivables $ 11,462 Lease Receivable The County has entered into several agreements with third parties in which they have been given the right to use certain assets owned by the County for specified periods of time in exchange for monetary compensation. These assets include land and buildings, and the original terms of the leases range from 2 to 50 years with varying payment terms and requirements. Amounts are included in Other current and non -current on the accompanying Governmental Funds Balance Sheet. For the fiscal year ended June 30, 2024, the County recognized $346,557 in lease revenue and $70,236 in interest revenue. Balance Balance Due Within Additions Deletions July 1, 2023 June 30, 2024 One Year Fund: General Fund $ 922,760 $ 55,553 $ (69,813) $ 908,500 $ 76,500 Solid Waste Fund 195,183 - (126,638) 68,545 31,475 Golf Course Fund 1,400,183 - (199,086) 1,201,097 203,713 Hawaii County Housing Agency 517,562 - (37,993) 479,569 39,539 Total $ 3,035,688 $ 55,553 $ (433,530) $ 2,657,711 $ 351,227 -65- COUNTY OF HAWAI`I Notes to the Basic Financial Statements June 30, 2024 The following are the lease receivable payments due in the upcoming years: Principal Interest Years Ending June 30: 2025 $ 351,227 $ 61,475 2026 339,933 52,262 2027 335,950 43,585 2028 293,909 35,346 2029 184,768 29,858 2030 - 2034 704,578 108,475 2035- 2039 243,329 38,920 2040- 2044 204,017 11,728 Total $ 2,657,711 $ 381,649 4. INTERFUND RECEIVABLES AND PAYABLES Interfund receivables and payables consist of the following at June 30, 2024: Receivable Fund Payable Fund Amount Capital projects fund $ 52,869,440 General fund Hawaii County Housing Agency 5,406 Other governmental funds 2,676,342 55,551,188 Capital projects fund General fund 70 Other governmental funds 794,429 794,499 Hawaii County Housing Agency General fund 139,825 139,825 Other governmental funds General fund 499,554 Capital projects fund 111,061 Hawaii County Housing Agency 142,017 Other governmental funds 322,676 1,075,308 Total $ 57,560,820 Other governmental funds Enterprise funds $ 164,280 Hawaii County Housing Agency 8,235 Total $ 172,515 Enterprise funds Capital projects fund $ 65,646 Total $ 65,646 The above interfund balances result from the time lag between the dates that interfund goods and services are provided or reimbursable expenditures occur, transactions are recorded, and payment between funds are made. COUNTY OF HAWAII Notes to the Basic Financial Statements June 30, 2024 Transfers for the fiscal year ended June 30, 2024, consisted of the following: Transfers Out: General Fund Capital Projects Fund Other Governmental Funds Total Transfers in: Capital Projects Fund $ 120,373 $ - $ 42,841,916 $ 42,962,289 Hawaii County Housing Agency 11,503,333 - - 11,503,333 Other Governmental Funds 81,230,359 28,500,000 9,181,904 118,912,263 $ 92,854,065 $ 28,500,000 $ 52,023,820 $ 173,377,885 The interfund transfers noted above include transfers from the General Fund to provide support for various County programs and to provide resources for the payment of debt services. In addition, some of the other governmental funds have made transfers to the capital projects fund for the construction of various projects. 5. CAPITAL ASSETS Capital asset activity for the fiscal year ended June 30, 2024, for the County was as follows: Balance July 1, 2023 Governmental activities: Capital assets not being depreciated: Land and Additions Retirements / Balance Transfers June 30, 2024 improvements $ 390,407,932 $ 8,996,800 $ - $ 399,404,732 Easements 22,317,302 8,202,800 - 30,520,102 Construction work in progress 118,274,480 75,781,380 (46,393,518) 147,662,342 Total capital assets not being depreciated 530,999,714 92,980,980 (46,393,518) 577,587,176 Capital assets being depreciated Buildings and improvements 845,760,441 40,446,387 (147,790) 886,059,038 Equipment 186,244,225 22,875,674 (4,003,087) 205,116,812 Easements 456,639 - - 456,639 Infrastructure 727,938,196 8,972,475 - 736,910,671 Total capital assets being depreciated 1,760,399,501 72,294,536 (4,150,877) 1,828,543,160 -67- COUNTY OF HAWAII Notes to the Basic Financial Statements June 30, 2024 Balance July 1, 2023 Additions Less accumulated depreciation for: Buildings and improvements (194,876,326) (14,578,925) Equipment (125,364,270) (12,296,251) Easements (456,597) (29) Infrastructure (442,246,489) (27,497,534) Total accumulated Retirements / Transfers Balance June 30, 2024 43,625 (209,411,626) 3,697,237 (133,963,284) - (456,626) - (469,744,023) depreciation (762,943,682) (54,372,739) 3,740,862 (813,575,559) Total capital assets being depreciated, net 997,455,819 17,921,797 (410,015) 1,014,967,601 Capital assets being amortized Right of use assets: Land 772,132 24,662 - 796,794 Buildings and improvements 20,392,380 3,507,643 - 23,900,023 Equipment 1,728,257 206,195 (453,151) 1,481,301 Total right of use assets 22,892,769 3,738,500 (453,151) 26,178,118 Less accumulated amortization for: Land Buildings and improvements Equipment Total accumulated amortization Total right of use assets, net Subscription assets Less accumulated amortization Total subscription assets, net Capital assets, net (231,140) (8,263) - (239,403) (3,918,123) (3,121,967) - (7,040,090) (959,155) (202,736) 448,069 (713,822) (5,108,418) (3,332,966) 448,069 (7,993,315) 17,784,351 405,534 (5,082) 18,184,803 4,291,773 11,648,488 - 15,940,261 (754,908) (1,856,924) - (2,611,832) 3,536,865 9,791,564 - 13,328,429 $ 1,549,776,749 $ 121,099,875 $ (46,808,615) $ 1,624,068,009 COUNTY OF HAWAI`I Notes to the Basic Financial Statements June 30, 2024 Balance Retirements / Balance July 1, 2023 Additions Transfers June 30, 2024 Business -type activities: Capital assets not being depreciated: Land $ 753,877 $ - $ - $ 753,877 Construction work in progress 105,256 - - 105,256 Total capital assets not being depreciated 859,133 - - 859,133 Capital assets being depreciated: Buildings and improvements 3,997,528 - - 3,997,528 Ground and site improvements 272,850 - - 272,850 Equipment 142,640 27,941 (3,488) 167,093 Total capital assets being depreciated 4,413,018 27,941 (3,488) 4,437,471 Less accumulated depreciation for: Buildings and improvements (1,384,899) (109,322) - (1,494,221) Ground and site improvements (241,039) (4,350) - (245,389) Equipment (100,667) (24,216) 2,781 (122,102) Total accumulated depreciation (1,726,605) (137,888) 2,781 (1,861,712) Total capital assets being depreciated, net 2,686,413 (109,947) (707) 2,575,759 Business -type activities capital assets, net $ 3,545,546 $ (109,947) $ (707) $ 3,434,892 COUNTY OF HAWAII Notes to the Basic Financial Statements June 30, 2024 Depreciation and amortization expense was charged to functions/programs of the primary government as follows: Governmental activities: General government $ 7,166,563 Public safety 5,826,252 Highways and streets 29,770,435 Sanitation 8,666,670 Health, education and welfare 3,857,764 Culture and recreation 4,274,945 Total depreciation and amortization expense - Governmental activities $ 59,562,629 Business -type activities: Kula'imano Elderly Housing Project $ 105,588 Ouli Ekahi Affordable Housing Project 32,300 Total depreciation and amortization expense - business -type activities $ 137,888 6. DEFERRED INFLOW OF RESOURCES Deferred inflow of resources consists of the following at June 30, 2024: Governmental activities: Real property taxes Liquor control revenue County transient accommodations tax Noncurrent grants Rental income (leases) Sewer revenue Solid waste revenue Housing revenue Total presented in fund financial statements Add: deferred inflows of resources related to pensions & OPEB Less: adjustments for accrual of revenues Total government- wide financial statements General Fund Capital Projects Fund Hawaii County Housing Agency Other Governmental Funds Total Governmental Funds $ 43,392,753 $ $ $ $ 43,392,753 191,620 191,620 2,471, 029 2,471,029 - 5,153,109 - - 5,153,109 908,500 - 479,569 1,269,642 2,657,711 - - 2,674,739 2,674,739 - 2,389,066 2,389,066 - - 274,080 - 274,080 46,963,902 5,153,109 753,649 6,333,447 59,204,107 114,837,891 114,837,891 (42,500,240) (5,153,109) (274,080) (5,063,805) (52,991,234) $ 119,301,553 $ - $ 479,569 $ 1,269,642 $ 121,050,764 -70- COUNTY OF HAWAI`I Notes to the Basic Financial Statements June 30, 2024 7. SUBSCRIPTION -BASED INFORMATION TECHNOLOGY AGREEMENTS (SBITAs) The County has entered into noncancellable agreements with third party vendors for the right to use their information technology software. These agreements expire at various dates through February 2034. These SBITAs include annual interest rates of 3.92% to 4.26%. The estimated value of the right to use assets and accumulated amortization, amount to $15,940,261 and $2,611,832, respectively and the related present value of the remaining obligations under these agreements amounting to $12,608,743 at June 30, 2024 are included in long-term debt. The future minimum payments under these SBITAs at June 30, 2024 are as follows: Years Ending June 30: 2025 2026 2027 2028 2029 Subscription -Based Agreement Liabilities Principal Interest $ 2,171,308 $ 526,339 1,608,672 438,065 1,611,355 371,857 1,016,122 307,462 1,009,229 264,175 2030-2034 5,192,056 579,315 Total $ 12,608,742 $ 2,487,213 8. LEASES AND OTHER FINANCING ARRANGEMENTS The County leases machinery, equipment, land, and office facilities under noncancellable contracts in which the County has a right of use to the underlying asset expiring at various dates through September 2043. The County has also entered into other financing arrangements for machinery and equipment in which the County will own the asset at the end of the lease. Such liabilities are presented with leases and other financing arrangements on the accompanying Statement of Net position. As of June 30, 2024, the capitalized value of the machinery and equipment and its corresponding accumulated depreciation, which are presented in capital assets in the accompanying Statement of Net Position, were $16,392,959 and $4,223,215, respectively. These leases and other financing arrangements include annual interest rates of 1.01 % to 4.85%. -71- COUNTY OF HAWAI`I Notes to the Basic Financial Statements June 30, 2024 The future minimum payments under these leases on June 30, 2024, are as follows: Other Financing Agreement Liabilities Lease Liabilities Principal Interest Principal Interest Years Ending June 30: 2025 $ 3,026,495 $ 190,117 $ 2,680,628 $ 656,221 2026 2,314,271 127,573 2,543,076 583,908 2027 1,731,838 72,079 2,558,002 512,590 2028 1,246,789 28,625 1,676,571 450,998 2029 194,630 2,963 1,564,603 414,645 2030 - 2034 - - 6,083,783 1,414,166 2035 - 2039 - - 3,918,779 467,326 2040 - 2044 - - 768,647 51,918 Total $ 8,514,023 $ 421,357 $ 21,794,089 $ 4,551,772 9. SOLID WASTE LANDFILL CLOSURE AND POSTCLOSURE CARE COSTS Hilo Landfill In December 2019, the County closed its landfill located in the city of Hilo. Under state and federal requirements, the County would have to monitor and maintain this site for thirty years from the closure date. The estimated cost of closure and postclosure is $27,620,000, based on what it would cost to perform the required closure and postclosure care in 2024. Actual costs may be higher due to inflation, changes in technology, or changes in regulations. Through June 30, 2024, $23,538,000 was spent on closure and postclosure care of the landfill. The remaining estimated liability of $4,082,000 is included in the government - wide statement of net position. During the year ended June 30, 2024, $87,000 was spent on closure of the landfill. The County is providing financial assurance for postclosure care and remediation through self-insurance as explained below. Kealakehe In October 1993, the County closed its Kealakehe landfill in Kona. Under state and federal requirements, the County would have to monitor and maintain this site for ten years from the closure date. However, because there is presently a subterranean fire which requires active management, the County anticipates monitoring and maintaining the site for another 30 years. The estimated cost of closure and postclosure is $17,300,000, based on what it would cost to perform the required closure and postclosure care in 2024. Actual costs may be higher due to inflation, changes in technology, or changes in regulations. Through June 30, 2024, $9,833,000 was spent on closure and postclosure care of the landfill. The remaining estimated liability of $7,467,000 is included in the government -wide statement of net position. During the year ended June 30, 2024, $280,000 was spent on closure of the landfill. The County is providing financial assurance for post closure care and remediation through self insurance as explained below. -72- COUNTY OF HAWAI`I Notes to the Basic Financial Statements June 30, 2024 Pu'uanahulu In May 1993, the County contracted with a private company to construct and operate a new landfill on County land at Pu'uanahulu in West Hawaii. The present contract calls for County employees to perform the daily operations of the landfill, and for the private company to retain the overall management as well as perform all construction work on the landfill cells. Under the terms of the contract, the County has no responsibility for remediation, closure or postclosure care. Accordingly, no liability for this landfill is included in the County's financial statements. Financial Assurance For fiscal year 2024, 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. In fiscal year 2013, the County closed its two metal salvage facilities located near the Hilo and Kealakehe Transfer Stations. State law requires the 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 as of June 30, 2024, of approximately $17,323,913 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. The liability could change over time due to inflation or deflation, changes in technology, or changes in laws and regulations governing the remediation effort. The County currently maintains and utilizes 7 underground fuel storage tanks to fuel both official and private vehicles that are used for County business. The tanks range in size from 1,000 to 8,000 gallons. The estimated liability of $1,775,000 for the cost to check for ground contamination and potential cleanup is included in the County's financial statements as of June 30, 2024. 10. LONG-TERM DEBT General Obligation Bonds The County issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. These bonds have been issued by the County for the primary government, component unit activities (see Note 14) and improvement districts. The County's general obligation bonds are an absolute and unconditional general obligation of the County for which its full faith and credit are pledged. The principal and interest payments on the bonds are a first charge on the general fund of the County. -73- COUNTY OF HAWAI`I Notes to the Basic Financial Statements June 30, 2024 The following is a summary of general obligation bond transactions reported in the governmental activities section of the government -wide statement of net position for the County for the fiscal year ended June 30, 2024: Bond Balance Bond Balance Due Within Bonds Authorized Issue Amount July 1, 2023 Issues Retirements June 30, 2024 One Year 2013 Series B $ 21,010,000 $ 2,525,000 $ - $ (2,525,000) $ - $ - 2013 Series C 18,470,000 4,315,000 - (2,115,000) 2,200,000 2,200,000 2013 PI Series A 1,169,000 981,992 - (26,360) 955,632 27,085 2016 Series A 99,620,000 86,425,000 - (4,855,000) 81,570,000 5,105,000 2016 Series B 13,497,500 6,152,500 - (1,442,500) 4,710,000 1,507,500 2016 Series C 44,835,000 25,205,000 - (4,550,000) 20,655,000 4,785,000 2016 Series D 28,860,000 19,010,000 - (2,785,000) 16,225,000 2,930,000 2016 Series E 19,061,250 14,186,250 - (1,796,250) 12,390,000 1,886,250 2017 Series A 90,000,000 75,125,000 - (3,455,000) 71,670,000 3,620,000 2017 Series D 43,475,000 37,700,000 - (3,090,000) 34,610,000 3,245,000 2020 PI Series A 2,437,000 2,378,000 - (60,000) 2,318,000 61,000 2020 PI Series B 3,699,000 3,609,000 - (91,000) 3,518,000 92,000 2020 Series A 59,815,000 59,815,000 - (2,115,000) 57,700,000 2,220,000 2020 Series C 10,215,000 8,325,000 - (1,020,000) 7,305,000 1,068,750 2023 Series 99,000,000 99,000,000 - - 99,000,000 2,960,000 555,163,750 444,752,742 - (29,926,110) 414,826,632 31,707,585 Add unamortized premium 102,942,590 65,835,283 - (6,140,253) 59,695,030 5,870,020 $ 658,106,340 $ 510,588,025 $ - $ (36,066,363) $ 474,521,662 $ 37,577,605 General obligation bonds payable reported in the governmental activities section on the government -wide statement of net position at June 30, 2024 are comprised of the following individual issues: Public improvement (PI) and/or refunding bonds: 2013 Series C at 4.0% to 5.0%, due through 2024 $ 2,200,000 2013 PI Series A at 2.75%, due through 2048 955,632 2016 Series A at 3.0% to 5.0%, due through 2035 81,570,000 2016 Refunding Series B at 3.0% to 5.0%, due through 2026 4,710,000 2016 Refunding Series C at 5.0%, due through 2027 20,655,000 2016 Refunding Series D at 5.0%, due through 2028 16,225,000 2016 Refunding Series E at 2.0% to 5.0%, due through 2029 12,390,000 2017 Series A at 5.0%, due through 2037 71,670,000 2017 Refunding Series D at 3.0% to 5.0%, due through 2032 34,610,000 2020 PI Series A at 1.125%, due through 2055 2,318,000 2020 PI Series B at 1.125%, due through 2055 3,518,000 2020 Series A at 4.0% to 5.0%, due through 2040 57,700,000 2020 Series C at 5.0%, due through 2029 7,305,000 2023 Series at 4.0% to 5.0%, due through 2043 99,000,000 Total general obligation bonds payable $ 414,826,632 -74- COUNTY OF HAWAI`I Notes to the Basic Financial Statements June 30, 2024 Annual debt service requirements to maturity for the above general obligation bonds are as follows: Years Ending June 30: 2025 2026 2027 2028 2029 2030 — 2034 2035 — 2039 2040 — 2044 2045 — 2049 2050 — 2054 2055 — 2056 Total Bond Premiums Governmental Activities Principal Interest $ 31,707,585 $ 18,544,374 30,976,830 17,046,842 32,472,095 15,537,572 32,351,132 13,999,746 28,061,690 12,595,321 120,442,617 45,334,236 91,020,673 19,434,700 45,111,937 4,501,966 1,222,073 127,080 1,032,000 53,359 428,000 3,611 $ 414,826,632 $ 147,178,807 At June 30, 2024, total unamortized bond premiums were $59,695,030, which are being amortized over the remaining life of the respective bond issues. Bonds Authorized and Unissued The County Council authorized issuance of up to $187 million of general obligation bonds to finance either specified or unspecified capital improvement projects at June 30, 2024. No such bonds were issued as of June 30, 2024. Community Facilities District On March 2, 2023, the County issued Hawaii County Community Facilities District No. 1-2021 (Kaloko Heights Project) Special Tax Revenue Bonds, Series 2023, in the amount of $13,055,000, for the purpose of financing the costs of certain public sewer line improvements relating to the County's Community Facilities District No. 1-2021 (Kaloko Heights Project). Neither the full faith and credit nor the general taxing power of the County or the State of Hawaii is pledged to the payment of these bonds. These bonds are not general obligations of the County. -75- COUNTY OF HAWAII Notes to the Basic Financial Statements June 30, 2024 General Obligation Bond Anticipation Notes The following is a summary of general obligation bond anticipation note transactions reported in the government -wide statement of net position for the County for the fiscal year ended June 30, 2024: Note No. Issue Amount Balance July 1, 2023 Issues Retirements Balance June 30,202 Series F, Note R-1 $ 7,500,000 $ 7,500,000 $ - $ (7,500,000) $ - Series F, Note R-2 7,500,000 7,500,000 - (7,500,000) - Series F, Note R-12 3,000,000 3,000,000 - (3,000,000) - Series F, Note R-13 3,000,000 3,000,000 - (3,000,000) - Series F, Note R-14 1,000,000 1,000,000 - (1,000,000) - Series F, Note R-15 1,000,000 1,000,000 - (1,000,000) - Series F, Note R-16 1,000,000 1,000,000 - (1,000,000) - Series F, Note R-17 1,000,000 1,000,000 - (1,000,000) - Series F, Note R-18 1,000,000 1,000,000 - (1,000,000) - Series F, Note R-19 1,000,000 1,000,000 - (1,000,000) - Series F, Note R-20 500,000 500,000 - (500,000) - Series F, Note R-21 500,000 500,000 - (500,000) - Series F, Note R-22 500,000 500,000 - (500,000) - $ 29,500,000 $ 28,500,000 $ - $ (28,500,000) $ - State Revolving Fund Loans 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 twelve projects approved for funding with these loans. The County's State Revolving Fund Loans are direct borrowings of the County for which its full faith and credit are pledged. The State Revolving Fund Loans are secured by the gross revenues of the County. -76- COUNTY OF HAWAII Notes to the Basic Financial Statements June 30, 2024 The schedule below shows the County's SRF transactions for the fiscal year ended June 30, 2024: Loans Authorized Cesspool Conversion Honoka`a LCC Queen Lili`uokalani Kalaniana`ole Kealakehe WWTPAU North Kona Kealakehe Effluent Reuse SH Landfill Closure Kealakehe Scrap Metal Lanihau WW Pumps Hilo WWTP Rehab and Replace Ph I Hilo WWTP Rehab and Replace Ph 11 Approved Loan Balance Retirements / Loan Balance Due Within Amount Ja,, 1 2023 Additions Forgiveness June 30, 2024 One Year $ 8,363,773 $ 1,584,868 $ $ (450,065) $ 1,134,803 $ 452,344 4,513,158 1,600,021 (184,738) 1,415,283 185,660 9,421,732 3,556,400 (500,611) 3,055,789 503,112 7,847,045 3,709,564 (362,733) 3,346,831 364,544 21,161934 10,649,084 (875,321) 9,773.764 877,607 2,690,404 1,294,705 (81,864) 1,212,841 82,480 8,677,918 1,486,146 (89,085) 1,397,061 89,978 23,099,553 14,757,238 (827287) 13,929951 835,580 8,000,973 4,548,401 2,703,050 (333,965) 6,917,486 414,812 1,023,631 998,934 - (49,816) 949,118 50,441 5,084,465 - 5,084,465 (3,889,388) 1,195,077 57,855 8,215,477 - 4,878,979 - 4,878,979 222,418 $108,101,063 $ 44,185,361 $12,666,494 $ (7,644,873) $ 49,206,983 $ 4,136,831 The remaining loans bear interest at 0.25% to 0.50% exclusive of a 0.25% to 1.00% loan fee and require payments through fiscal year 2044. Debt service to maturity for disbursements to date on these projects are as follows: Governmental Activities Years Ending June 30: Principal Interest 2025 $ 4,136,831 $ 450,733 2026 4,164,717 414,687 2027 3,963,876 378,327 2028 3,762,106 344,302 2029 3,788,509 310,799 2030— 2034 16,389,957 1,075,120 2035 — 2039 10,682,078 420,495 2040 — 2044 2,318,909 50,547 Total $ 49,206,983 $ 3,445,010 -77- COUNTY OF HAWAI`I Notes to the Basic Financial Statements June 30, 2024 Other General Long -Term Obligations The following is a summary of other general long-term obligations transactions for the fiscal year ended June 30, 2024: Governmental activities: Net pension liability (see notes 13 and 14) Net OPEB liability (see notes 13 and 14) Claims and judgments (see note 12) Compensated absences Leases and other financing agreements (see note 8) Subscription based agreement liabilities (see note 7) Pollution remediation (see note 9) Landfill costs payable (see note 9) Underground Storage Tank (see note 9) Total Balance Balance Due Within One July 1, 2023 Additions* Payments June 30, 2024 Year $ 585,026,054 $ 113,229,796 $ (64,000,451) $ 634,255,399 $ - 268,175,858 36,135,537 (42,910,000) 261,401,395 - 42,758,950 49,085,136 (9,031,092) 82,812,994 74,560,144 48,573,087 18,560,599 (16,699,154) 50,434,532 12,128,656 25,411,676 11,613,684 (6,717,248) 30,308,112 5,707,123 3,338,892 11,648,488 (2,378,638) 12,608,742 2,171,308 17,388,676 - (64,763) 17,323,913 100,000 10,877,000 1,038,669 (366,669) 11,549,000 497,048 1,775,000 - 1,775,000 $ 1,003,325,193 $ 241,311909 $ (142,168,015) $ 1,102,469,087 $ 95,164,279 * Net of new claims liability and existing claims resolved at less than previous estimate. Historically, the County's general fund has been used to liquidate the majority of other long- term liabilities, including the other post -employment benefit obligation and the compensated 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, 2024 includes $49,041,570, which is restricted for principal payments on general obligation bonds and $6,383,132, which is restricted for the payment of interest on the bonds. Enterprise Fund Notes, Bond and Loan Payable On February 12, 2013, the County issued general obligation bonds on behalf of Kula`imano 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 Project would COUNTY OF HAWAI`I Notes to the Basic Financial Statements June 30, 2024 continue to present the balance as a note payable and make bond payments equivalent to its previous monthly installment 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. In fiscal year 2021, the County made the final scheduled principal payment of the bond and thus, the Project now owes the County for the remainder of the contributions. On October 29, 2012, the County assumed the loan of its lessee Ouli Ekahi Partnership with the Hawaii Housing Finance and Development Corporation in the amount 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, 2024: Balance at July 1, 2023 $ 8,090 Deductions (8,090) Balance at June 30, 2024 $ - Special Assessment Bonds The County has issued general obligation bonds on behalf of Improvement District No. 18 for water improvements (see Note 3). 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 liable because they are general obligations of the County. The improvement district's share of the refunded bonds matures annually through fiscal 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 $452,775 at June 30, 2024. The County has also issued general obligation bonds on behalf of Improvement District No. 19 for water improvements (see Note 3). 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 fiscal 2048 and bear interest at the previous rate of 2.75%. Total general obligation bonds payable included in the government -wide statement of net position were $955,632 at June 30, 2024. The County has also issued general obligation bonds on behalf of Improvement District No. 20 for sewer improvements (see Note 3). 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 -79- COUNTY OF HAWAII Notes to the Basic Financial Statements June 30, 2024 annually through fiscal 2055 and bear interest at the previous rates of 1.125%. Total general obligation bonds payable included in the government -wide statement of net position were $2,318,000 at June 30, 2024. The bonds are secured by a first lien on the land benefited by the improvements and are to be repaid from the annual assessments levied against the owners of the land. The County acts as 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. The following is a summary of bond transactions for Improvement District No. 18, Coastview/Wonderview Water Improvements, No. 19, Kona Ocean View Properties Subdivision, and No. 20, Lono Kona Sewer Project for the fiscal year ended June 30, 2024: Balance at July 1, 2023 $ 3,913,659 Deductions (187,252) Balance at June 30, 2024 $ 3,726,407 The following is a summary of the annual maturities for the improvement district general obligation bonds: Years Ending June 30: Principal Interest 2025 S 193,673 $ 70,267 2026 199,334 63,795 2027 206,245 57,062 2028 213,415 50,051 2029 93,190 45,705 2030 — 2034 491,868 204,508 2035 — 2039 534,673 161,391 2040 — 2044 580,937 113,710 2045 — 2049 634,073 60,840 2050 — 2054 410,000 21,150 2055 — 2056 168,999 1,893 Total S 3,726,407 $ 850,372 11. COMMITMENTS AND CONTINGENCIES Contractual commitments — Contractual commitments for capital projects, expenses, and supplies at June 30, 2024, except in the enterprise funds, are reflected in the balance sheets as a part of the respective fund balance categories and are as follows: COUNTY OF HAWAI`I Notes to the Basic Financial Statements June 30, 2024 General Fund $ 22,045,071 Capital Projects Fund 130,310,490 Hawaii County Housing Agency 1,503,225 Nonmajor Funds 31,366,654 $ 185,225,440 Contractual commitments for the enterprise funds were immaterial. Intergovernmental revenues — The County has received federal and state grants for specific purposes that are subject to review and audit by grantor agencies. Such audits could lead to requests for reimbursement to the grantor agency for expenditures disallowed under terms of the grants. In the opinion of management of the County, disallowed costs, if any, would not be material. Claims —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, the resolution of such matters will not have a material adverse effect on the financial condition of the County. ADA compliance — The County entered into a stipulated agreement, filed June 4, 1998, which relates to the Department of Parks and Recreation (DPR). The first part of the agreement required DPR 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 programs, practices and procedures was completed and approved by the County Council. The cost impact of implementation was not material because the necessary modifications were primarily procedural. The second part of this stipulated agreement required the reevaluation of all County facilities for the presence of architectural barriers that prevented equal access to persons with disabilities, which was completed and accepted by the County Council on June 30, 2000. Approximately 240 County facilities (which included non-DPR facilities) were surveyed in this effort. The initially projected completion date for all modifications/renovations necessary to eliminate the architectural barriers at all DPR facilities was 12 years from the date the County Council accepted the self -evaluation. The initial (1997-2000) estimated cost of those necessary modifications at DPR facilities was $15.1 million, which would have been spent across the 12-year period. Funding allocated by the County over the initial few years of facilities modifications was $17.5 million, with another $4 million of federal funding provided through community development block grants over the next 2 years. The Department of Public Works requested an additional $2 million a year for non-DPR County facilities' ADA renovation projects. Because of severe disparities that surfaced between the original ADA projects' scoping and construction estimates and actual scopes and costs, as well as time/delivery issues that came into play because of necessary permits and reviews, and design professionals' costs that weren't factored into the effort, the County sought relief from the Court in the form of both a time extension and repriontization of sites. As a result, the DPR obtained court -approval of a modified 4-year plan wherein accessibility improvements at the then- COUNTY OF HAWAI`I Notes to the Basic Financial Statements June 30, 2024 remaining 35 park sites were required to be completed by December 31, 2016. Despite having passed that date, the County is engaged in ongoing quarterly briefings with the plaintiff's attorney and the federal magistrate judge assigned to this case wherein the County apprises plaintiff's counsel and the court on its progress, highlighting achievements, noting procedural and permitting concerns and delays, and constantly updating the status and completion projects for all remaining projects. To date, the County's progress and achievements have satisfied the court and plaintiff's attorney and the projected completion date for all remaining projects is now late-2026. The balance of the unscheduled, unimproved DPR sites would be deferred indefinitely pending separate improvement/enhancement projects that would inherently trigger accessibility improvements due to the nature of each project's scoping and applicable ADA requirements. Of the 35 park sites requiring accessibility improvements under the modified 4- year plan, plus an additional park site (Francis Wong Stadium at Ho'olulu Complex) that was reintroduced into the transition plan via the court, 27 have been completed, 1 (`Ahalanui) has been permanently omitted due to lava inundation, 3 (Pa`auilo, Kolekole, and Richardsons) have been substantially completed and are pending contract closeout, 1 (Miloli`i) was publicly bid and awarded for construction but is pending its start date, , and 3 (NAS, Pahala Pool, and Parks Maintenance) are in active construction. The County has encumbered or spent more than $100 million on these remaining 35 projects to date. Further to this, the County has secured additional general obligation bond funds in the amount of $5 million dedicated to the completion of the remaining projects in the active construction or earlier phases of completion. The County had spent $42 million for construction and design consultant costs to complete the 50 park facilities (some having multiple ADA work being completed) prior to the development of the modified four-year plan. Additionally, the County's ADA Coordinator has access to an operational account of at least $50,000 to handle requests for reasonable accommodations to assist County departments with addressing requests concerning specialized access needs. The procedures for these requests have been finalized and are available on the Department of Human Resources' web page under the heading "Procedure for Requesting Modifications to County of Hawaii Facilities, Programs, or Services". Also, DPR has a Recreation Specialist who reviews and assesses requests for reasonable accommodations involving recreational facilities and programs, and recommends specific actions on those requests, amongst other duties. 12. RISK MANAGEMENT The County is exposed to various risks of loss related to torts; theft, damage, and destruction of assets; errors and omissions; work -related injuries to employees; and natural disasters. County obtains property insurance, which includes coverage on a high -deductible basis for hurricane, flood, earthquake, and lava. It also purchases insurance coverages for flood on selected structures, general and professional liability for emergency medical services, general liability for lifeguards (waster safety), aviation liability for helicopter operations, retired senior volunteer liability coverage, auto liability for both mass transit buses and subsidized police vehicles, auto physical damage coverage for both police fleet vehicles and the Kohala Ranch fire truck, and property insurance on specific housing projects if not covered contractually. The County is substantially self -insured for liability and for all other exposures including workers' compensation. As such, emphasis is on claims management and safety/risk control to protect the public and employees and to mitigate loss costs. The liability for claims and judgments is COUNTY OF HAWAI`I Notes to the Basic Financial Statements June 30, 2024 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 the application of historical experience to outstanding claims. Estimates of IBNR are based on historical experience. The liability for claims and judgments is reported on the government - wide statement of net position. On June 30, 2024, the amount of this liability was $82,812,994. This is the County's best estimate based on available information. The County has entered into one settlement agreement and is in discussions to enter into multiple settlement agreements regarding Temporary Hazard Pay (THP) with unions for periods covering dates from March 2020 to March 2022, for those employees who performed essential functions during the COVID-19 pandemic. The County has estimated a liability of $70,000,000 related to THP; this amount is presented with total claims and judgments on the statement of net position and on the governmental funds balance sheet. Changes in the reported liability since July 1, 2022, are given below. Balance at June 30, 2022 Incurred claims (including IBNR)* Claims payments Balance at June 30, 2023 Incurred claims (including 1BNR)* Claims payments Balance at June 30, 2024 General Workers' Total Liability Compensation Liability $ 9,976,700 $ 12,554,278 $ 22,530,978 28,279,081 3,239,948 31,519,029 (5,692,436) (5,598,621) (11,291,057) 32,563,345 10,195,605 42,758,950 44,199,550 4,885,586 49,085,136 (4,532,010) (4,499,082) (9,031,092) $ 72,230,885 $ 10,582,109 $ 82,812,994 *Net of new claims liability and existing claims resolved at less than previous estimate. COUNTY OF HAWAI`I Notes to the Basic Financial Statements June 30, 2024 13. EMPLOYEE BENEFIT PLANS The County recognized a total net pension expense of $57,564,617 for the year ended June 30, 2024, for the following two pension plans covering its employees. Pensions — Employees' Retirement System of the State of Hawaii Pension Plan Description - All eligible employees of the State and counties are provided with pensions through a cost -sharing multiple -employer defined benefit pension plan administered by the Employees' Retirement System of the State of Hawaii (ERS). Benefit terms, eligibility, and contribution requirements are established by HRS Chapter 88 and can be amended through legislation. The ERS issues a publicly available financial report that can be obtained at ERS's website: h!W:Hers.ehawaii.gov/. 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, 1971, the AFC is the average salary earned during the five highest paid years of service, including the payment of salary in lieu of vacation, or three highest paid years of service, excluding the payment of salary in lieu of vacation. For members hired before July 1, 2012, the original retirement allowance is increased by 2.5% each July 1 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. Retirement benefits for certain groups, such as police officers, firefighters, some investigators, sewer workers, judges, and elected officials, vary from general employees. Noncontributory Plan Retirement Benefits - General employees' retirement benefits are determined 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. COUNTY OF HAWAI`I Notes to the Basic Financial Statements June 30, 2024 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. 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 reduction, and at a minimum of 12.5% of average final compensation. Death Benefits - For service -connected deaths, the surviving spouse/reciprocal beneficiary receives a monthly benefit of 30% of the average final compensation until remarriage or re-entry into a new reciprocal beneficiary relationship. Additional benefits are payable to surviving dependent children up to age 18. If there is no spouse/reciprocal beneficiary or dependent children, no benefit is payable. Ten years of credited service is required for ordinary death benefits. For ordinary death benefits, the surviving spouse/reciprocal beneficiary (until remarriage/reentry into a new reciprocal beneficiary relationship) and dependent children (up to age 18) receive a benefit equal to a percentage of member's accrued maximum allowance unreduced for age or, if the member was eligible for retirement at the time of death, the surviving spouse/reciprocal beneficiary receives 100% joint and survivor lifetime pension. Contributory Plan for Employees Hired Prior to July 1, 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 55. Police and firefighters' retirement benefits are determined as 2.5% of average final compensation for each year of service up to a maximum of 80%. Police and firefighters with 10 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 50% of their average final compensation. Ten years of credited service is required for ordinary disability. Ordinary disability benefits are determined as 1.75% of average final compensation multiplied by the years of credit services and are payable immediately, without an actuarial reduction, and at a minimum of 30% of average final compensation. Death Benefits - For service -connected deaths, the surviving spouse/reciprocal beneficiary receives a lump sum payment of the member's contributions and accrued interest plus a monthly benefit of 50% of the average final compensation until remarriage 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. COUNTY OF HAWAI`I Notes to the Basic Financial Statements June 30, 2024 Ordinary death benefits are available to employees who were active at time of death with at least 1 year of service. Ordinary death benefits consist of a lump sum payment of the member's contributions and accrued interest plus a percentage of the salary earned in the 12 months preceding death, or 50% Joint and Survivor lifetime pension if the member was not eligible for retirement at the time of death but was credited with at least 10 years of service 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. Contributory Plan for Employees 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 60. Police and firefighters' retirement benefits are determined as 2.25% of average final compensation for each year of service up to a maximum of 80%. Police and firefighters with 10 years of credited service are eligible to retire at age 60. Disability and Death Benefits - Members are eligible for service -related disability benefits regardless of length of service and receive a lifetime pension of 50% of their average final compensation plus refund of contributions and accrued interest. Ten years of credited service is required for ordinary disability. Ordinary disability benefits are 1.75% of average final compensation for each year of service for police and firefighters and are payable immediately, without an actuarial reduction, at a minimum of 30% of average final compensation. Death benefits for contributory plan members hired after June 30, 2012 are generally the same as those for contributory plan members hired June 30, 2012 and prior. Hybrid Plan for Employees Hired Prior to July 1, 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 reduction, and at a minimum of 25% of average final compensation. COUNTY OF HAWAI`I Notes to the Basic Financial Statements June 30, 2024 Death Benefits - For service -connected deaths, the surviving spouse/reciprocal beneficiary receives a lump sum payment of the member's contributions and accrued interest plus a monthly benefit of 50% of the average final compensation until remarriage 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. Ordinary death benefits are available to employees who were active at time of death with 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 death but was credited with at least 10 years of service 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. Hybrid Plan for Employees 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 remain the same except for ordinary death benefits. Ordinary death benefits are available to employees who were active at time of death with at least 10 years of service. Ordinary death benefits consist of a lump sum payment of the member's contributions and accrued interest multiplied by 120%, or 50% Joint 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 the 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. The contribution rates for fiscal year 2023 were 41.00% for police and firefighters and 24.0% for all other employees. Contributions to the pension plan from the County for the year ended June 30, 2024, 2023, and 2022 were $67,471,071, $63,900,644, and $61,913,089, respectively. COUNTY OF HAWAII Notes to the Basic Financial Statements June 30, 2024 The employer is required to make all contributions for members in the noncontributory plan. For contributory plan employees hired prior to July 1, 2012, general employees are required to contribute 7.8% of their salary and police and firefighters are required to contribute 12.2% of their salary. For contributory plan employees hired after June 30, 2012, general employees are required to contribute 9.8% of their salary and police and firefighters are required to contribute 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 arc required to contribute 8.0% of their salary. Pension liabilities, pension expense, and deferred outflows of resources and deferred inflows of resources related to pensions — At June 30, 2024, the County reported a liability of $634,255,399 for its proportionate share of the net pension liability, of which $633,449,126 represents the portion of the pension liability with ERS and $806,273 represents the Bandsmen pension as further discussed on pages 90 and 91, respectively. The ERS net pension liability was measured as of June 30, 2023, 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, 2023, the County's proportion was 4.59%, which was an increase of .08% from its proportion measured as of June 30, 2022. For the year ended June 30, 2024, the County recognized pension expense of $57,564,617. At June 30, 2024, the County reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: 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 Outflows Deferred Inflows of Resources of Resources 12,066,723 8,512,450 1,599,901 20,081,850 2,711,722 25,678,784 14,767,071 67,471,071 - $ 115,328,929 $ 37,560,643 $67,471,071 reported as deferred outflows of resources related to the County's contributions to the pension plan subsequent to the measurement date will be recognized as a reduction of the net pension liability in the fiscal year ended June 30, 2025. COUNTY OF HAWAII Notes to the Basic Financial Statements June 30, 2024 Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Net Deferred Outflows Years Ending June 30, (Inflows) of Resources 2025 $ (5,893,615) 2026 (12,203,282) 2027 17,507,637 2028 10,281,730 2029 604,745 $ 10,297,215 Actuarial assumptions — The total pension liability in the June 30, 2023 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Inflation 2.50% Payroll growth rate 3.50% per annum Salary increases 3.75% - 6.75%, including inflation Investment rate of return 7.00% per annum, including inflation Cost of living adjustments 2.50% 1 l .50% Mortality rates used in the actuarial valuation as of June 30, 2023 were based on the following: Active members — Multiples of the Pub-2010, Employee Table for active employees based on the occupation of the member. Healthy retirees — The 2022 Public Retirees of Hawaii mortality table, the rates are projected on a fully generational basis by the long-term rates of scale UMP from the year 2022 and with multiplier and setbacks based on plan and group experience. Disabled retirees — Base Table for healthy retiree's occupation, set forward 3 years, generational projection using the UMP projection table from the year 2022. Minimum mortality rate of 3.5% for males and 2.5% for females. The actuarial assumptions used in the June 30, 2023 valuation were based on the results of an actuarial experience study as of June 30, 2021, with most assumptions based on the period from July 1, 2016, through June 30, 2021. The major changes to assumptions resulting from the 2021 actuarial experience study were (1) to update the base mortality tables with data through June 30, 2021 and (2) recommended a higher salary increase schedule. The long-term expected rate of return on pension plan investments was determined using a "top down approach" 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 COUNTY OF HAWAI`I Notes to the Basic Financial Statements June 30, 2024 asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected nominal real rates of return by the target asset allocation percentage. The target allocation and best estimates of geometric rates of return for each major asset class are summarized in the following table: Strategic Allocation Target Long -Term Expected Expected (Risk -Based Classes) Allocation Rate of Return Volatility* Broad growth 62.50% 8.00% 15.80% Diversifying Strategies 37.50% 5.10% 8.50% 100.00% * Uses an expected inflation rate of 2.10%. Discount rate — The discount rate used to measure the total pension liability was 7.00%, which was the same rate used at the prior measurement date. The projection of cash flows used to determine the discount rate assumed that employee contributions will be made at the current contribution rate and that contributions from the County will be made at statutorily 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-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Sensitivity of the County's proportionate share of the net pension liability to changes in the discount rate — The following presents the County's proportionate share of the net pension liability calculated using the discount rate of 7.00%, as well as what the County's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1- percentage-point lower (6.00%) or 1-percentage-point higher (8.00%) than the current rate: 1% Decrease Current Discount 1% Increase (6.00)% (7.00)% (8.00)% County's proportionate share of the net pension liability $871.836.867 i6aaA49 226 S436,023,039 Pension plan fiduciary net position — Detailed information about the pension plan's fiduciary net position is available in the separately issued Employees' Retirement System of the State of Hawaii (ERS) report that includes financial statements and required supplementary information. Payables to the pension plan — At June 30, 2024, the amount payable to the ERS totaled $5,245,946, which represents the employer contribution for the second half of the month of June 2024, as required by HRS, and the excess pension cost under Act 153/SLH 2-12 HRS Section 88-100 for fiscal year ended June 30, 2024. COUNTY OF HAWAI`I Notes to the Basic Financial Statements June 30, 2024 Other Pension Plans - County of Hawaii Bandsmen Pension System The County also sponsors a nonqualified, governmental single employer defined benefit pension plan for members of the County Band (County of Hawaii 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, 2024, there were 13 inactive employees or beneficiaries receiving benefits; 9 inactive employees not yet receiving benefit payments; and 4 active members. Pension liabilities, pension expense, and deferred outflows of resources and deferred inflows of resources related to pensions — At June 30, 2024, the portion of the County's total pension liability attributed to the Bandsmen pension was $806,273. The total pension liability was measured as of June 30, 2024 based on an actuarial valuation as of June 30, 2024. For the year ended June 30, 2024, the County recognized pension payments of $32,604 and a pension benefit of $491. Actuarial assumptions — The total pension liability in the June 30, 2024 actuarial report was determined using the following actuarial assumptions, applied to all periods included in the measurement: Inflation Salary increases 2.50% 3.50%, including inflation The average of the S&P Municipal Bond 20 Year High Grade and Fidelity GO AA-20 Year published yields was evaluated to determine the discount rate. The selected rate was 4.09%. The following presents the County's total pension liability calculated using the discount rate of 4.09%, as well as what the County's total pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (3.09%) or 1-percentage-point higher (5.09%) than the current rate: 1% Current 1% Decrease Discount Rate Increase (3.09%) (4.09%) (5.09%) County's total pension liability S 960.908 S 806.273 S 741.495 -91- COUNTY OF HAWAI`I Notes to the Basic Financial Statements June 30, 2024 Schedule of Changes in Total Pension Liability Measurement year ending June 30, 2024 Total Pension Liability Service cost $ 7,016 Interest 31,819 Difference between expected and actual experience 4,006 Changes of assumptions (10,728) Benefit payments (32,604) Net Change in Total Pension Liability (491) Total Pension Liability— Beginning 806,764 Total Pension Liability— Ending $ 806,273 Post -Retirement Benefits In addition to providing pension benefits, the County is required by state statute (HRS Chapter 87A) to contribute to the Hawaii Employer -Union Health Benefits Trust Fund (the EUTF). The EUTF is an agent, multiple -employer defined benefit plan providing certain healthcare and life insurance benefits to all qualified retirees, active employees, their dependents and their beneficiaries. Contributions to the plan and earnings on the plan are irrevocable, plan assets are dedicated to providing health and other benefits to retirees, and plan assets are legally protected from creditors. The EUTF issues an annual financial report that is available to the public that can be obtained on EUTF's website at https:Heutf.hawaii. o� v/repoits. Benefits Provided — Chapter 87A of the HRS grants the authority to establish and amend the benefit terms to the board of trustees of the EUTF. The EUTF currently provides medical, prescription drug, dental, vision, chiropractic, supplemental medical and prescription drug, and group life insurance benefits for retirees and their dependents. The following table provides a summary of the number of employees covered by the benefit terms as of July 1, 2023. Inactive employees or beneficiaries currently receiving benefits 1,854 Inactive employees entitled but not yet receiving benefit payments 209 Active employees 2,476 Contributions — The County's contribution levels are established by Chapter 87A of the HRS. The county was required to contribute 100% of the ARC starting in fiscal year 2019. The ARC represents a level of funding that is sufficient to cover, 1) the normal cost, which is the cost of the other postemployment benefits attributable to the current year of service; and 2) an amortization payment, which is a catch-up payment for past service costs to fund the unfunded -92- COUNTY OF HAWAII Notes to the Basic Financial Statements June 30, 2024 actuarial accrued liability over the next thirty years. For the fiscal year ended June 30, 2024, contributions to the OPEB Plan from the County totaled $44,136,000 which resulted in an average contribution rate of approximately 20.7% of covered -employee payroll. 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 the monthly premium for employees retiring with fewer than 10 years of credited service. The 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. 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 15 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 service, the County pays the entire healthcare premium. For employees hired after June 30, 2001, 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 years of service, the County pays 50% of the 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. Net OPEB liability — The County's net OPEB liability was measured as of July 1, 2023, and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of that date. There were no changes between the measurement date, July 1, 2023, and the reporting date, June 30, 2024, that are expected to have a significant effect on the net OPEB liability. Actuarial assumptions — The total OPEB liability in the actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified: -93- COUNTY OF HAWAII Notes to the Basic Financial Statements June 30, 2024 Valuation Date: 7/1/2023 Methods and Assumptions: Actuarial Cost Method Entry Age Normal Discount Rate 7.00% Inflation 2.50% Salary Increases 3.75% to 6.75% including inflation Demographic Assumptions Based on the 2022 Hawaii ERS Actuarial Experience Study, as conducted June 30, 2021 for the Hawaii Employees' Retirement System (ERS) Mortality System- specific mortality tables utilizing ultinate scale MP2021 to project generational mortality improvement Participation Rates 98% healthcare participation assumption for retirees that receive 100% of the Base Monthly Contribution (BMC). Healthcare participation rates of 25%, 65%, and 90% for retirees that receive 0%, 50%, or 75% of the base monthly contribution, respectively. 100% for Life Insurance and 98% for Medicare Part B Healthcare cost trend rates PPO* Initial rate of 6.30%, declining to a rate of 4.25% after 21 years HMO** Initial rate of 6.30%, declining to a rate of 4.25% after 21 years Part B & Base Monthly Contribution (BMC) Initial rate of 5.00%, declining to a rate of 4.25% after 21 years Dental 4.00% Vision 2.50% Life Insurance 0.00% * Blended rates for medical and prescription drug ** Includes prescription drug assumptions The actuarial assumptions used to value the liabilities are the same as those used in the valuation report as of July 1, 2023. The assumptions include details on the health care trend assumption, the aging factors as well as the cost method used to develop the OPEB expense. The demographic assumptions are based on the 2022 ERS actuarial experience study. OPEB- specific assumptions, such as the participation assumption for future retirees, health care trend, etc. are reviewed during each valuation. There were no assumption changes during the current measurement period. COUNTY OF HAWAII Notes to the Basic Financial Statements June 30, 2024 A Single Discount Rate of 7.00% was used to measure the total OPEB liability. This Single Discount Rate was based on the expected rate of return on OPEB plan investments of 7.00%. Beginning with the FYE 2019 contribution, the funding policy of the County of Hawaii is to pay the recommended actuarially determined contribution, which is based on layered, closed amortization periods. in July 2020, the Governor's office issued the Tenth Proclamation related to the Covid-19 Emergency, allowing employers of the EUTF to suspend ACT 268 contributions for fiscal year ended June 30, 2021 and instead limit their contribution amounts to the OPEB benefits due. This relief provision related to OPEB funding was extended to the fiscal years ended June 30, 2022 and 2023 by Act 229, Session Laws of Hawaii 2021. The EUTF's fiduciary net position is still expected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on the EUTF's investments was applied to all periods of projected benefit payments to determine the total OPEB liability. The target allocation and best estimates of arithmetic rates of return for each major asset class are summarized in the following table: Strategic Allocation (Risk -Based Classes) Long -Term Target Allocation Expected Real Rate of Return Global equity 27.50% 7.60% Private equity 15.00% 10.00% Real assets 12.00% 4.30% Private Credit 10.00% 7.80% Trend following 10.00% 2.40% Long treasuries 5.50% 2.40% TIPS 5.00% 2.00% Reinsurance 5.00% 3.40% Alternative risk premix 5.00% 3.30% U.S. microcap 3.00% 8.70% Tail Risk/Long Volatility 2.00% -1.10% Global options 0.00% 4.90% 100.00% -95- COUNTY OF HAWAII Notes to the Basic Financial Statements June 30, 2024 Changes in the Net OPEB Liability: The following schedule presents the changes in the net OPEB liability for the fiscal year ended June 30, 2024: Balance at June 30, 2023 Changes for the fiscal year: Service cost Interest on the total OPEB liabi Employer contributions Net investment income Benefit payments Administrative expense Changes of assumptions Difference between expected Increase (Decrease) Total OPEB Plan Fiduciary Net OPEB Liability Net Position Liability (a) (b) (a)-(b) $ 571,101,431 $ 302,925,573 $ 268,175,858 12,129,999 39,628,250 (22,097,136) 42,910,000 14,379,907 (22,097,136) (20,275) 12,129,999 39,628,250 (42,910,000) (14,379,907) 20,275 and actual experience (1,076,619) - (1,076,619) Other - 186,461 (186,461) Net changes 28,584,494 35,358,957 (6,774,463) Balance at June 30, 2024 $ 599,685,925 $ 338,284,530 $ 261,401,395 There were no significant changes of assumptions from the prior year. Sensitivity of the net OPEB liability to changes in the discount rate — The following presents the net OPEB liability of the County, as well as what the County's net OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.00%) or 1- percentage-point higher (8.00%) than the current discount rate: 10/0 Current 1% Decrease Discount Rate Increase (6.00)% (7.00)% (8.00)% County's net OPEB liability $ 353,103,780 $ 261,401,395 $ 188,625,251 Sensitivity of the net OPEB liability to changes in the healthcare cost trend rates — The following presents the net OPEB liability of the County, as well as what the County's net OPEB liability would be if it were calculated using a healthcare cost trend rate that is 1-percentage- point lower or 1-percentage-point higher than the current healthcare cost trend rate: COUNTY OF HAWAI`I Notes to the Basic Financial Statements June 30, 2024 1% Current 1% Decrease Healthcare Cost Increase County's net OPEB liability $ 180,331,224 $ 261,401,395 $ 365,543,306 For the year ended June 30, 2024, the County recognized OPEB expense of $14,392,089. At June 30, 2024, the County reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Difference between expected and actual experience Changes of assumptions Net difference between projected and actual earnings on OPEB plan investments County contributions subsequent to the measurement date Total Deferred Outflows Deferred Inflows of Resources of Resources $ 2,532,342 $ 65,541,436 1,462,898 11,735,812 7,174,292 44,136,000 $ 55,305,532 $ 77,277,248 $44,136,000 reported as deferred outflows of resources related to the County's contributions to the OPEB plan subsequent to the measurement date will be recognized as a reduction of the net OPEB liability in the fiscal year ended June 30, 2024. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: Years Ending June 30, 2025 2026 2027 2028 2029 Thereafter Net deferred inflows ofresources $ (16,133,349) (18,792,145) (10,942,123) (10,817,998) (9,245,842) (176,259) $ (66,107,716) 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.hawaii.gov or by contacting them at P.O. Box 2121, Honolulu, HI 96805-2121. -97- COUNTY OF HAWAI`I Notes to the Basic Financial Statements June 30, 2024 Deferred Compensation Plan County employees are permitted to participate in a deferred compensation plan of the State of Hawaii, adopted pursuant to Internal Revenue Code (IRC) section 457. The plan permits eligible employees to defer a portion of their salary until future years by contributing to a fund managed by a plan administrator. The deferred compensation amounts are not available to employees until termination, retirement, death, or unforeseeable emergency. All plan assets are held in a trust fund to protect them from claims of general creditors and from 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. 14. COMPONENT UNIT DISCLOSURES Deposits and Investments At June 30, 2024, the carrying amount of deposits (cash, time certificates of deposit, government sponsored securities and money market funds) was $71,123,215 with corresponding bank balance of $72,147,806. These amounts were fully insured or collateralized with securities held by the County's agent in the County's name. The following summarizes the Department's investments and maturities at June 30, 2024: Investments — Primary Government: Certificates of deposit Government sponsored securities Capital Assets Maturity (in years) Fan Value Less than 1 1-5 $ 19,000,000 $ 17,000,000 $ 2,000,000 6,142,976 1,552,758 4,590,218 $ 25,142,976 $ 18,552,758 $ 6,590,218 The Department began operations as of January 1, 1950. At that date, the utility plant in service was transferred to the Department from the County at the cost of the utility plant assets 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 by governmental agencies, private subdividers and customers at their cost or estimated cost. Construction costs include amounts for contract work, engineering supervision and other direct and indirect costs. COUNTY OF HAWAII Notes to the Basic Financial Statements June 30, 2024 Depreciation on the Department's utility plant assets in service is computed using the straight-line method over the estimated useful lives of the assets as follows: Ye ars Distribution mains and accessories 40 Structures and improvements 40 - 50 Electric and hydraulic pumping equipment 10 Services 25 Transmission mains and accessories, hydrants, and purification system 40 Meters 10 Transportation, communication, tools, and office equipment and furniture 5 Other equipment 5 - 10 Other fire protection plant 25 The capital assets of the Department at June 30, 2024 were as follows: Depreciable assets Utility plant in service Less: accumulated depreciation Non -depreciable assets Preliminary survey and investigation charges Construction work in progress Land and rights Right of use lease assets Land Equipment Less: accumulated amortization SBTTA assets Less: accumulated amortization Capital assets, net $ 612,171,792 (33 8,021,132) 274,150.660 1,456,452 11,763,518 5,787,581 19,007,551 226,050 149,676 (92,503) 283,223 116,096 (76,040) 40,056 $ 293,481,490 COUNTY OF HAWAII Notes to the Basic Financial Statements June 30, 2024 The following is a summary of changes in capital assets during the fiscal year ended June 30, 2024. Balance Retirements/ Balance July 1, 2023 Additions Transfers June 30, 2024 Non -depreciable assets Land and rights $ 5,376,240 $ 411,341 $ - $ 5,787,581 Preliminary survey and investigation charges 1,416,107 224,425 (184,080) 1,456,452 Construction work in progress 8,689,122 11,091,579 (8,017,183) 11,763,518 Total capital assets not being depreciated 15,481,469 11,727,345 (8,201,263) 19,007,551 Depreciable assets Utility plant in service 603,842,375 9,626,466 (1,297,049) 612,171,792 Less accumulated depreciation (323,339,622) (16,722,126) 2,040,616 (338,021,132) Total capital assets being depreciated 280,502,753 (7,095,660) 743,567 274,150,660 Right of use lease assets Land 226,050 - - 226,050 Equipment 57,470 92,206 - 149,676 283,520 92,206 - 375,726 Accumulated amortization Land (11,252) (5,626) - (16,878) Equipment (47,720) (27,905) - (75,625) (58,972) (33,531) - (92,503) Total right of use lease assets 224,548 58,675 - 283,223 SBITA assets 66,313 70,253 (20,470) 116,096 Accumulated amortization (52,198) (44,312) 20,470 (76,040) Total SBITA assets 14,115 25,941 - 40,056 Capital assets, net $296,222,885 $ 4,716,301 $ (7,457,696) $ 293,481,490 Long -Term Debt The County has issued general obligation bonds on behalf of the Department. The Department 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 Department has recorded a liability for these general obligation bonds, which amounted to $15,486,960 at June 30, 2024. - 100 - COUNTY OF HAWAII Notes to the Basic Financial Statements June 30, 2024 General obligation bonds payable issued on behalf of the Department and other long -teen debt at June 30, 2024 are comprised of the following: Public improvement bonds: 2008 Series A at 4.125%, due through 2043 $ 106,960 Public improvement refunding bonds: 2016 Series B at 3.0% to 5.0%, due through 2026 4,710,000 2016 Series E at 2.0% to 5.0%, due through 2029 4,130,000 2020 Series C & D at 5.0%, due through 2029 2,435,000 USDA Bond #R-1 at 2.0%, due through 2057 4,105,000 Revolving fund loans: State revolving fund loans, interest up to 1.0%, due through 2044 55,796,006 Total long-term debt 71,282,966 Add: Unamortized premium 833,646 Total 72,116,612 Less: Current portion (6,711,144) Noncurrent portion $ 65,405,468 At June 30, 2024, future principal and interest payments for long-term debt are scheduled as follows: Years Ending June 30: 2025 2026 2027 2028 2029 2030 — 2034 2035 — 2039 2040 — 2044 2045 — 2049 2050 — 2054 2055 — 2058 Total Principal Interest Total $ 6,448,282 $ 1,342,473 $ 7,790,755 6,607,328 1,168,253 7,775,581 6,767,793 987,791 7,755,584 5,002,708 841,758 5,844,466 5,092,585 741,732 5,834,317 20,309,909 2,505,678 22,815,587 14,299,159 1,173,006 15,472,165 4,813,591 366,332 5,179,923 688,525 167,165 855,690 760,187 95,503 855,690 492,899 19,833 512,732 $ 71,282,966 $ 9,409,524 $ 80,692,490 COUNTY OF HAWAI`I Notes to the Basic Financial Statements June 30, 2024 The following is a summary of changes in long-term debt during the fiscal year ended June 30, 2024: State revolving fund loans Public improvement bonds Add: unamortized premium Total Balance Balance Due Within July 1, 2023 Additions Decreases June 30, 2024 One Year $ 55,737,039 $ 7,714,698 $ (7,655,731) $ 55,796,006 $ 3,862,922 17,871,881 - (2,384,921) 15,486,960 2,585,360 1,096,508 - (262,862) 833,646 262,862 $ 74,705,428 $ 7,714,698 $ (10,303,514) $ 72,116,612 $ 6,711,144 Contributions in Aid of Construction The Department recognized $9,174,072 of contributions in aid of construction for the fiscal year ended June 30, 2024. Other Long -Term Liabilities The following is a summary of other long-term obligations transactions for the fiscal year ended June 30, 2024: Balance Deductions/ Balance Due Within July 1, 2023 Additions Payments June 30, 2024 One Year Pension liability $ 30,899,325 $ 910,226 $ (2,535,659) $ 29,273,892 $ OPEB liability 7,812,470 989,874 (1,961,000) 6,841,344 - Customers' deposits 4,671,058 667,022 (2,361,734) 2,976,346 155,426 Accrued vacation 1,923,930 271,662 (346,445) 1,849,147 679,242 Accrued workers' compensation 300,000 324,014 624,014 324,488 Leases payable 227,517 92206 (31,624) 288,099 32,144 SBITA payable 6,980 - (3,351) 3,629 2,508 $ 45,841,280 $ 3,255,004 $ (7,239,813) $ 41,856,471 $ 1,193,808 Commitments and Contingent Liabilities Claims and judgments — The Department maintains property, auto liability, and general liability insurance policies. The Department remains self -insured for workers' compensation and other perils. The liability at June 30, 2024 for workers' compensation claims of $624,014 was estimated based on a combination of case -by -case review and the application of historical experience to outstanding claims. Construction contracts — The Department is obligated under construction contracts for the utility plant and other projects. Such commitments totaled $24,744,016 at June 30, 2024. - 102 - COUNTY OF HAWAII Notes to the Basic Financial Statements June 30, 2024 Temporary Hazard Pay — Effective fiscal year 2024-2025, the Department of Water Supply is anticipating payment to employees due to the settlement agreement between the County of Hawaii with the United Public Workers (UPW) and Hawaii Government Employees Association (HGEA) to resolve the grievances regarding temporary hazard pay ("THP") for the employees that worked during the COVID period of March 2020 — March 2022. The Department estimated a liability of approximately $3,100,000 related to THP, which is included in accrued compensation in the statement of net position. Pension Plan Pension liabilities, pension expense, and deferred outflows of resources and deferred inflows of resources related to pensions — At June 30, 2024, the Department reported a liability of $29,273,892 for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2023, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The Department's proportion of the net pension liability was based on a projection of the employer contributions to the pension plan relative to projected contributions of all participating employers. At June 30, 2023, the Department's proportion was 0.212%, which is a decrease 0.03% from its proportion measured as of June 30, 2022. For the year ended June 30, 2023, the Department recognized pension expense of $1,832,139. At June 30, 2024, the Department reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Differences between expected and actual experience Net difference between projected and actual earnings on pension plan investments Changes in assumptions Changes in proportion and differences between employer contributions and proportionate share of contributions Deferred Outflows Deferred Inflows of Resources of Resources $ 576,780 $ 300,433 318,627 - 9,639 263,229 325,557 3,066,031 Department contributions subsequent to the measurement date 2,579,303 - Total $ 3,809,906 $ 3,629,693 The $2,579,303 reported as deferred outflows of resources related to the Department's contributions to the pension plan subsequent to the measurement date will be recognized as a reduction of the net pension liability in the fiscal year ended June 30, 2025. -103- COUNTY OF HAWAI`I Notes to the Basic Financial Statements June 30, 2024 Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Net Deferred Outflows (Inflows) of Resources Year Ending June 30, 2025 $ (830,592) 2026 (1,143,334) 2027 36,290 2028 (356,043) 2029 (105,411) $ (2,399,090) Sensitivity of the Department's proportionate share of the net pension liability to changes in the discount rate — The following presents the Department's proportionate share of the net pension liability calculated using the discount rate of 7.00%, as well as what its proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1- percentage-point lower (6.00%) or 1-percentage-point higher (8.00%) than the current rate: Current 1% Decrease Discount Rate 1% Increase (6.00)% (7.00)% (8.00)% Department's proportionate share of the net pension liability $ 38,941,002 $ 29,273,892 $ 21,267,861 Pension plan fiduciary net position — Detailed information about the pension plan's fiduciary net position is available in the separately issued ERS ACFR that includes financial statements and required supplementary information. Payables to the pension plan — At June 30, 2024, the amount payable to the ERS totaled $653,226, which represents the employer contribution for the month of June 2024 and an accrual for excess pension costs attributed to the fiscal year, as required by HRS. Post -Retirement Benefits Other than Pensions (OPEB) Net OPEB liability, OPEB expense, and deferred outflows of resources and deferred inflows of resources related to OPEB — At June 30, 2024, the Department reported a net OPEB liability of $6,841,344. The net OPEB liability was measured as of July 1, 2023, and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of that date. For the year ended June 30, 2024, the Department recognized OPEB expense of $134,386. - 104 - COUNTY OF HAWAI`I Notes to the Basic Financial Statements June 30, 2024 At June 30, 2024 the Department reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Difference between expected and actual experience Changes of assumptions Net difference between projected and actual earnings on OPEB plan investments Employer contributions subsequent to the measurement date Total Deferred Outflows Deferred Inflows of Resources of Resources $ - $ 4,154,281 73,754 910,273 503,276 - 2,027,000 - $ 2,604,030 $ 5,064,554 $2,027,000 reported as deferred outflows of resources related to the Department's contributions to the OPEB plan subsequent to the measurement date will be recognized as a reduction of the net OPEB liability in the fiscal year ended June 30, 2025. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Years Ending June 30, 2025 2026 2027 2028 2029 Thereafter Net Deferred (Inflows) of Resources $ (1,358,019) (1,479,873) (499,964) (689,528) (389,497) (70,643) $ (4,487,524) - 105 - COUNTY OF HAWAI`I Notes to the Basic Financial Statements June 30, 2024 Changes in the Net OPEB Liability: The following schedule presents the changes in the net OPEB liability for the fiscal year ended June 30, 2024: Balance at June 30, 2023 Changes for the fiscal year: Service cost Interest on the total OPEB liability Employer contributions Net investment income Benefit payments Administrative expense Difference between expected and actual experience Change of assumptions Other Net changes Balance at June 30, 2024 Total OPEB Liability (a) $ 34,900,490 669,524 2,420,425 (1,315,507) (842,089) 932,353 $ 35,832,843 Increase (Decrease) Plan Fiduciary Net Position (b) $ 27,088,020 1,961,000 1,256,994 (1,315,507) (1,815) 2,807 1,903,479 $ 28,991,499 Net OPEB Liability (a)-(b) $ 7,812,470 669,524 2,420,425 (1,961,000) (1,256,994) 1,815 (842,089) (2,807) (971,126) $ 6,841,344 Sensitivity of the net OPEB liability to changes in the discount rate — The following presents the net OPEB liability of the Department, as well as what the Department's net OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.00%) or 1-percentage-point higher (8.00%) than the current discount rate: Current 1% Decrease Discount Rate 1% Increase (6.00)% (7.00)% (8.00)% Department's net OPEB liability $ 12,005,010 $ 6,841,344 $ 2,691,931 - 106 - COUNTY OF HAWAII Notes to the Basic Financial Statements June 30, 2024 Sensitivity of the net OPEB liability to changes in the healthcare cost trend rates — The following presents the net OPEB liability of the Department, as well as what the Department's net OPEB liability would be if it were calculated using a healthcare cost trend rate that is 1- percentage-point lower or 1-percentage-point higher than the current healthcare cost trend rate: Current Healthcare 1% Decrease Cost Trend Rate 1% Increase Department's net OPEB liability $ 2,167,831 $ 6,841,344 $12,789,732 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.hawaii.ov or by contacting them at P.O. Box 2121, Honolulu, HI 96805-2121. - 107 - COUNTY OF HAWAI`I Required Supplementary Information (Unaudited) June 30, 2024 Schedule of Changes in the Net OPEB Liability and Related Ratios Last Ten Fiscal Years* Total OPEB Liability Service Cost Interest on the total OPEB liability Benefit payments Difference between expected and actual experience Net change in total OPEB liability Total OPEB liability - Beginning Total OPEB liability - Ending Plan fiduciary net position Contributions - employer Net investment income Benefit payments Administrative expense Other Net change in plan fiduciary net position Plan fiduciary net position - Beginning Plan fiduciary net position - Ending Net OPEB liability Plan fiduciary net position as a percentage of the total OPEB liability Covered -employee payroll Net OPEB liability as a percentage of Covered -employee payroll 2024 County Department $ 12,129,999 $ 669,524 39,628,250 2,420,425 (22,097,136) (1,315,507) (1,076,619) (842,089) 28,584,494 932,353 571,101,431 34,900,490 $ 599,685,925 $ 35,832,843 $ 42,910,000 $ 1,961,000 14,379,907 1,256,994 (22,097,136) (1,315,507) (20,275) (1,815) 186,461 2,807 35,358,957 1,903,479 302.925.573 27.088.020 $ 338,284,530 $ 28,991,499 $ 261,401,395 $ 6,841,344 56.4% 80.9% $ 207,585,949 $ 10,513,239 125.9% 65.1 % COUNTY OF HAWAI`I Required Supplementary Information (Unaudited) June 30, 2024 Total OPEB Liability Service Cost Interest on the total OPEB liability Benefit payments Difference between expected and actual experience Changes in assumptions Net change in total OPEB liability Total OPEB liability - Beginning Total OPEB liability - Ending Plan fiduciary net position Contributions - employer Net investment income Benefit payments Administrative expense Other Net change in plan fiduciary net position Plan fiduciary net position - Beginning Plan fiduciary net position - Ending Net OPEB liability Plan fiduciary net position as a percentage of the total OPEB liability Covered -employee payroll Net OPEB liability as a percentage of Covered -employee payroll - 109 - 2023 Count Department $ 13,200,983 $ 754,223 41,857,781 2,581,297 (19,891,212) (1,213,715) (50,903,860) (3,112,836) 04,475,674) (1,213,900) (30,211,982) (2,204,931) 601,313,413 37,105,421 $ 571,101,431 $ 34,900,490 $ 38,439,395 $ 2,148,000 (5,410,114) (518,406) (19,891,212) (1,213,715) (24,126) (2,283) 1,910 20,789 13,115,853 434,385 289,809,720 26,653,635 $ 302,925,573 $ 27,088,020 $ 268,175,858 $ 7,812,470 53.0% 77.6% $ 195,866,428 $ 10,326,292 136.9% 75.7% COUNTY OF HAWAI`I Required Supplementary Information (Unaudited) June 30, 2024 2022 County Department Total OPEB Liability Service Cost $ 12,764,228 $ 762,769 Interest on the total OPEB liability 40,832,661 2,456,079 Benefit payments (19,280,575) (1,063,301) Difference between expected and actual experience (19,584,810) (287,233) Net change in total OPEB liability 14,731,504 1,868,314 Total OPEB liability - Beginning 586,581,909 35,237,107 Total OPEB liability - Ending $ 601,313,413 $ 37,105,421 Plan fiduciary net position Contributions - employer $ 38,334,627 $ 1,210,523 Net investment income 57,339,331 5,666,092 Benefit payments (19,280,575) (1,063,301) Administrative expense (29,421) (2,922) Other (170,462) (50) Net change in plan fiduciary net position 76,193,500 5,810,342 Plan fiduciary net position - Beginning 213,616,220 20,843,293 Plan fiduciary net position - Ending $ 289,809,720 $ 26,653,635 Net OPEB liability $ 311,503,693 $ 10,451,786 Plan fiduciary net position as a percentage of the total OPEB liability 48.20% 71.80% Covered -employee payroll $ 197,978,022 $ 10,713,826 Net OPEB liability as a percentage of Covered -employee payroll 157.30% 97.60% - 110 - COUNTY OF HAWAI`I Required Supplementary Information (Unaudited) June 30, 2024 Total OPEB Liability Service Cost Interest on the total OPEB liability Benefit payments Difference between expected and actual experience Change in assumptions Net change in total OPEB liability Total OPEB liability - Beginning Total OPEB liability - Ending Plan fiduciary net position Contributions - employer Net investment income Benefit payments Administrative expense Other Net change in plan fiduciary net position Plan fiduciary net position - Beginning Plan fiduciary net position - Ending Net OPEB liability Plan fiduciary net position as a percentage of the total OPEB liability Covered -employee payroll Net OPEB liability as a percentage of Covered -employee payroll 2021 Count Department $ 13,182,551 $ 773,607 41,412,243 2,483,573 (19,277,123) (1,036,438) (39,988,932) (2,403,748) (3,397,584) (190,921) (8,068,845) (373,927) 594.650.754 35.611.034 $ 586,581,909 $ 35,237,107 $ 41,604,474 $ 1,977,000 3,806,539 376,721 (19,277,123) (1,036,438) (29,192) (3,013) 127,017 (2,264) 26,231,715 1,312,006 187384.505 19.531.287 $ 213,616,220 $ 20,843,293 $ 372,965,689 $ 14,393,814 36.40% 59.20% $ 189,053,873 $ 10,266,331 197.40% 140.20% COUNTY OF HAWAI`I Required Supplementary Information (Unaudited) June 30, 2024 Total OPEB Liability Service Cost Interest on the total OPEB liability Benefit payments Difference between expected and actual experience Changes in assumptions Net change in total OPEB liability Total OPEB liability - Beginning Total OPEB liability - Ending Plan fiduciary net position Contributions - employer Net investment income Benefit payments Administrative expense Other Net change in plan fiduciary net position Plan fiduciary net position - Beginning Plan fiduciary net position - Ending Net OPEB liability Plan fiduciary net position as a percentage of the total OPEB liability Covered -employee payroll Net OPEB liability as a percentage of Covered -employee payroll - 112 - 2020 Count Department $ 12,402,599 $ 746,672 38,381,475 2,349,959 (18,651,726) (1,012,084) 9,224,217 (314,598) 1,862,836 137,542 43,219,401 1,907,491 551.431.353 33.703.543 $ 594,650,754 $ 35,611,034 $ 39,770,000 $ 1,990,000 7,187,610 764,696 (18,651,726) (1,012,084) (49,623) (5,493) 8,531,701 522,371 36,787,962 2,259,490 150,596,543 17,271,797 $ 187,384,505 $ 19,531,287 $ 407,266,249 $ 16,079,747 31.50% 54.90% $ 185,575,775 $ 10,264,425 219.50% 156.70% COUNTY OF HAWAI`I Required Supplementary Information (Unaudited) June 30, 2024 Total OPEB Liability Service Cost Interest on the total OPEB liability Benefit payments Difference between expected and actual experience Changes in assumptions Net change in total OPEB liability Total OPEB liability - Beginning Total OPEB liability - Ending Plan fiduciary net position Contributions - employer Net investment income Benefit payments Administrative expense Net change in plan fiduciary net position Plan fiduciary net position - Beginning Plan fiduciary net position - Ending Net OPEB liability Plan fiduciary net position as a percentage of the total OPEB liability Covered -employee payroll Net OPEB liability as a percentage of Covered -employee payroll - 113 - 2019 Count Department $ 12,056,311 $ 698,126 36,036,284 2,264,524 (17,998,013) (1,016,548) (3,679,099) (1,184,347) 7,240,956 432,233 33,656,439 1,193,988 517,774,914 32,509,555 $ 551,431,353 $ 33,703,543 $ 32,829,013 $ 1,936,548 9,474,156 1,111,306 (17,998,013) (1,016,548) (29,227) (3,336) 24,275,929 2,027,970 126,320,614 15,243,827 $ 150,596,543 $ 17,271,797 $ 400,834,810 $ 16,431,746 27.30% 51.30% $ 178,889,344 $ 10,212,595 224.10% 160.90% COUNTY OF HAWAI`I Required Supplementary Information (Unaudited) June 30, 2024 Total OPEB Liability Service Cost Interest on the total OPEB liability Benefit payments Net change in total OPEB liability Total OPEB liability - Beginning Total OPEB liability - Ending Plan fiduciary net position Contributions - employer Net investment income Benefit payments Administrative expense Other Net change in plan fiduciary net position Plan fiduciary net position - Beginning Plan fiduciary net position - Ending Net OPEB liability Plan fiduciary net position as a percentage of the total OPEB liability Covered -employee payroll Net OPEB liability as a percentage of Covered -employee payroll 2018 Count Department $ 11,757,502 $ 687,414 34,046,407 2,135,490 (I7.054.987) (953288) 28,748,922 1,869,616 489,025,992 30,639,939 $ 517,774,914 $ 32,509,555 $ 28,549,987 $ 1,867,788 10,380,705 1,245,946 (17,054,987) (953,288) (23,228) (2,782) 266,457 16,370 22,118,934 2,174,034 104,201,680 13,069,793 $ 126,320,614 $ 15,243,827 $ 400,834,810 $ 17,265,728 24.40% 46.90% $ 172,678,405 $ 9,791,132 226.70% 176.34% * This schedule is intended to present information for ten years, as of the measurement date of the collective net OPEB liability for each respective fiscal year. Additional years will be built prospectively as information becomes available. See accompanying notes to required supplementary information. - 114 - COUNTY OF HAWAI`I Required Supplementary Information (Unaudited) June 30, 2024 Schedule of Contributions (OPEB) Last Ten Fiscal Years County: Contributions in Relation to the Actuarially Actuarially Contribution Covered- Contributions as a Fiscal Year Determined Determined Deficiency Employee % of Covered Ended Contribution Contribution (Excess) Payroll Employee Payroll June 30, 2024 $ 44,136,000 $ 44,136,000 $ - $ 224,626,088 19.6% June 30, 2023 $ 42,910,000 $ 42,910,000 $ - $ 207,585,949 20.7% June 30, 2022 $ 45,147,000 $ 38,439,395 $ 6,707,605 $ 195,866,428 19.6% June 30, 2021 $ 42,917,000 $ 38,181,347 $ 4,735,653 $ 197,978,022 19.3% June 30, 2020 $ 41,464,000 $ 41,604,474 $ (140,474) $ 189,053,873 22.0% June 30, 2019 $ 39,770,000 $ 39,770,000 $ - $ 185,575,775 21.4% June 30, 2018 $ 37,748,000 $ 32,829,013 $ 4,918,987 $ 178,889,344 21.1% June 30, 2017 $ 36,472,000 $ 28,549,987 $ 7,922,013 $ 172,678,405 21.1% June 30, 2016 $ 33,614,000 $ 22,747,340 $ 10,866,660 $ 159,744,324 14.2% June 30, 2015 $ 32,478,000 $ 18,657,000 $ 13,821,000 $ 152,490,296 12.2% Department: Contributions in Relation to the Actuarially Actuarially Contribution Covered- Contributions as a Fiscal Year Determined Determined Deficiency Employee % of Covered Ended Contribution Contribution (Excess) Payroll Employee Payroll June 30, 2024 $ 2,027,000 $ 2,027,000 $ - $ 10,900,000 18.6% June 30, 2023 $ 1,961,000 $ 1,961,000 $ - $ 10,513,239 18.7% June 30, 2022 $ 2,148,000 $ 2,148,000 $ - $ 10,326,292 20.8% June 30, 2021 $ 2,046,000 $ 1,210,523 $ 835,477 $ 10,713,826 11.3% June 30, 2020 $ 1,977,000 $ 1,977,000 $ - $ 10,266,331 19.3% June 30, 2019 $ 1,990,000 $ 1,990,000 $ - $ 10,264,425 19.4% June 30, 2018 $ 1,933,000 $ 1,936,548 $ (3,548) $ 10,212,595 19.0% June 30, 2017 $ 1,867,000 $ 1,867,788 $ (788) $ 9,791,132 19.1% June 30, 2016 $ 1,914,000 $ 1,913,204 $ 796 $ 9,464,649 20.2% June 30, 2015 $ 1,850,000 $ 1,848,389 $ 1,611 $ 9,426,509 19.6% * Revised from prior ACFR. See accompanying notes to required supplementary information. - 115 - COUNTY OF HAWAI`I Required Supplementary Information (Unaudited) June 30, 2024 Note — Significant Methods and Assumptions Beginning July 1, 2017, an actuarial valuation of the County's and Department's liability associated with other postemployment benefits other than pension provided through the EUTF is performed as of July 1 of each year. The following summarizes the significant methods and assumptions used to determine the actuarially determined contribution for the fiscal year ended June 30, 2024: Actuarial valuation date Developed in the July 1, 2021, valuation Actuarial cost method Entry Age Normal Amortization method Level percent, closed Equivalent single amortization period 15.4 and 14.9 for the County and Department, respectively, as of June 30, 2024 Asset valuation method 4-year smoothed market Inflation rate 2.50% Investment rate of return 7.00% Payroll growth 3.50% Salary increases 3.50% to 7.00% including inflation Healthcare cost trend rates PPO Initial rates of 7.25%; declining to a rate of 4.70% after 12 years HMO Initial rate of 7.25%; declining to a rate of 4.70% after 12 years Part B Initial rate of 5.00%; declining to a rate of 4.70% after 9 years Dental 4.00% Vision 2.50% Life Insurance 0.00% - 116 - COUNTY OF HAWAI`I Required Supplementary Information (Unaudited) June 30, 2024 Demographic assumptions Based on the experience study covering the five year period ending June 30, 2018 conducted for the Hawaii Employees' Retirement System Mortality System -specific mortality tables utilizing scale BB to project generational mortality improvement Participation rates 98% healthcare participation assumption for retirees that receive 100% of the Base Monthly Compensation. Healthcare participation rates of 25%, 65%, and 90% for retirees that receive 0%, 50%, or 75% of the base monthly contribution, respectively. 100% for life insurance and 98% for Medicare Part B. There were no other factors that significantly affected trends in the amounts reported in the schedule of changes in the net OPEB liability and related ratios or the schedule of contributions (OPEB). - 117 - COUNTY OF HAWAI`I Required Supplementary Information (Unaudited) June 30, 2024 County: Schedule of the County's and Department's Proportionate Share of the Net Pension Liability (ERS) Last Ten Fiscal Years County's County's Proportionate Share Plan Fiduciary Proportion of the Proportionate Share of the Net Pension Net Position as Measurement Net Pension of the Net Pension County's Covered Liability as a % of a % of the Total Period Ended Liability (%) Liability ($) Payroll Covered Payroll Pension Liability June 30, 2023 4.6% $ 633,449,216 $ 192,711,324 328.70% 61.9% June 30, 2022 4.5% $ 584,219,290 $ 183,409,868 318.50% 62.8% June 30, 2021 4.6% $ 565,147,246 $ 186,778,076 302.60% 64.3% June 30, 2020 4.5% $ 696,251,655 $ 180,285,326 386.20% 53.2% June 30, 2019 4.7% $ 668,213,164 $ 172,197,101 388.10% 54.9% June 30, 2018 4.8% $ 635,693,501 $ 168,484,880 377.30% 55.5% June 30, 2017 4.7% $ 609,904,199 $ 163,626,447 372.70% 54.8% June 30, 2016 4.6% $ 618,129,088 $ 156,556,514 394.80% 51.2% June 30, 2015 4.4% $ 382,070,813 $ 149,760,317 255.10% 62.4% June 30, 2014 4.0% $ 322,626,262 $ 137,669,418 234.30% 63.9% Department: Department's Department's Proportionate Share Plan Fiduciary Proportion of the Proportionate Share of the Net Pension Net Position as Measurement Net Pension of the Net Pension Department's Liability as a % of a % of the Total Period Ended Liability (%) Liability ($) Covered Payroll Covered Payroll Pension Liability June 30, 2023 0.2% $ 29,273,892 $ 10,802,083 271.00% 61.9% June 30, 2022 0.2% $ 30,899,325 $ 10,450,084 295.70% 62.8% June 30, 2021 0.2% $ 29,017,165 $ 11,016,038 263.40% 64.3% June 30, 2020 0.2% $ 35,290,257 $ 10,439,473 338.00% 53.2% June 30, 2019 0.2% $ 32,029,248 $ 10,318,136 310.40% 54.9% June 30, 2018 0.3% $ 33,522,053 $ 9,742,400 344.10% 55.5% June 30, 2017 0.2% $ 28,365,453 $ 9,358,187 303.10% 54.8% June 30, 2016 0.2% $ 29,247,607 $ 9,046,930 323.30% 51.2% June 30, 2015 0.2% $ 18,940,065 $ 9,012,196 210.20% 62.4% June 30, 2014 0.3% $ 20,526,993 $ 8,272,307 248.10% 63.9% See accompanying notes to required supplementary information. - 118 - COUNTY OF HAWAI`I Required Supplementary Information (Unaudited) June 30, 2024 County: Schedule of the Employer Pension Contributions (ERS) Last Ten Fiscal Years Fiscal Year Ended Statutorily Required Contribution Actual County Contributions Recognized by the Plan Contribution Deficiency (Excess) County's Covered Payroll Contributions as a % of Covered Payroll June 30, 2024 $ 67,471,071 $ 67,471,071 $ - $ 224,626,088 30.0% June 30, 2023 $ 63,900,644 $ 63,900,644 $ - $ 192,711,324 33.2% June 30, 2022 $ 61,913,089 $ 61,913,089 $ - $ 183,409,868 33.8% Jame 30, 2021 $ 63,953,781 $ 63,953,781 $ - $ 186,778,076 34.2% June 30, 2020 $ 52,778,035 $ 52,778,035 $ - $ 180,285,326 29.3% June 30, 2019 $ 44,853,953 $ 44,853,953 $ - $ 172,197,101 26.0% June 30, 2018 $ 41,562,933 $ 41,562,933 $ - $ 168,484,880 24.7% June 30, 2017 $ 36,157,981 $ 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% Department: Fiscal Year Ended Statutorily Required Contribution Actual County Contributions Recognized by the P Ian Contribution Deficiency (Excess) Department's Covered Payroll Contributions as a o of Covered /o Payroll June 30, 2024 $ 2,579,303 $ 2,579,303 $ - $ 11,175,965 23.1% June 30, 2023 $ 2,535,659 $ 2,535,659 $ - $ 10,802,083 23.5% June 30, 2022 $ 2,477,404 $ 2,477,404 $ - $ 10,450,084 23.7% June 30, 2021 $ 2,579,631 $ 2,579,631 $ - $ 11,016,038 23.4% June 30, 2020 $ 2,258,593 $ 2,258,593 $ - $ 10,439,473 21.6% June 30, 2019 $ 1,950,358 $ 1,950,358 $ - $ 10,318,136 18.9% June 30, 2018 $ 1,757,461 $ 1,757,461 $ - $ 9,742,400 18.0% Julie 30, 2017 $ 1,603,278 $ 1,603,278 $ - $ 9,358,187 17.1% June 30, 2016 $ 1,553,128 $ 1,553,128 $ - $ 9,046,930 17.2% June 30, 2015 $ 1,520,994 $ 1,520,994 $ - $ 9,012,196 16.9% See accompanying notes to required supplementary information. - 119 - COUNTY OF HAWAI`I Required Supplementary Information (Unaudited) June 30, 2024 Note — Changes of Assumptions The following changes were made to the actuarial assumptions as of June 30, 2024, based on the 2021 Experience Study: During the measurement period, the demographic assumptions were updated to reflect the 2022 ERS Actuarial Experience Study. Additionally, short-term healthcare trend assumptions were updated. - 120 - COUNTY OF HAWAI`I Required Supplementary Information (Unaudited) June 30, 2024 Schedule of Changes in Total Pension Liability (Bandsmen Pension) Last Ten Fiscal Years* Measurement year ending June 30, Total Pension Liability Service Cost Interest on the Total Pension Liability Differences between expected and actual experience Assumption Changes Benefit Payments Net Change in Total Pension Liability Total Pension Liability— Beginning Total Pension Liability — Ending Covered Payroll Total Pension Liability as a Percentage of Covered Employee Payroll Measurement year ending June 30, Total Pension Liability Service Cost Interest on the Total Pension Liability Differences between expected and actual experience Assumption Changes Benefit Payments Net Change in Total Pension Liability Total Pension Liability — Beginning Total Pension Liability — Ending Covered Payroll Total Pension Liability as a Percentage of Covered Employee Payroll - 121 - 2024 2023 2022 $ 7,016 $ 6,747 $ 11,943 31,819 30,680 21,813 4,006 (7,564) (68,212) (10,728) (31,700) (230,048) (32,604) (32,185) (37,713) (491) (34,022) (302,217) 806,764 840,786 1,143,003 806,?73 S 806,764 S 840,786 $29,206 $28,813 $22,729 2760.6% 2800.0% 3699.2% 2021 2020 2019 $ 145,450 $ 7,577 $ 7,392 28,152 29,250 38,149 (70,480) - (89,947) 58,659 87,065 (44,293) (44,799) (49,612) (47,532) 116,982 74,280 (136,231) 1,026,021 951,741 1,087,972 114 1 2 21 951,741 $24,076 $26,349 $26,349 4747.5% 3894.0% 3612.1% COUNTY OF HAWAI`I Required Supplementary Information (Unaudited) June 30, 2024 Measurement year ending June 30, Total Pension Liability Service Cost Interest on the Total Pension Liability Differences between expected and actual experience Assumption Changes Benefit Payments Net Change in Total Pension Liability Total Pension Liability— Beginning Total Pension Liability— Ending Covered Payroll Total Pension Liability as a Percentage of Covered Employee Payroll 2018 2017 $ - $ 16,416 - 36,289 - (113,807) (58,808) (53,347) (58,808) (114,449) 1,146,780 1,261,229 $ L 87.972 L1,146,780 $49,505 $49,505 2197.7% 2316.5% * This schedule is intended to present information for 10 years, as of the measurement date of the total pension liability for each respective fiscal year. Additional years will be built prospectively as information becomes available. There are no assets accumulated in a trust for the payment of benefits. - 122 - COUNTY OF HAWAI`I Required Supplementary Information (Unaudited) General Fund Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) For the Fiscal Year Ended June 30, 2024 Actual Variance Original Final (Budgetary Positive Budget Budget Basis) (Negative) Revenues: Taxes and assessments: Property taxes $ 453,750,000 $ 455,250,000 $ 482,922,149 $ 27,672,149 Public service company taxes 8,400,000 8,400,000 10,302,928 1,902,928 County transient accomodation tax 24,000,000 24,000,000 34,038,515 10,038,515 Total taxes and assessments 486,150,000 487,650,000 527,263,592 39,613,592 Licenses and permits: Nonbusiness licenses and permits 5,512,652 5,512,651 6,088,879 576,228 Business licenses 2,336,123 2,336,123 2,149,946 (186,177) Street use 3,182,763 3,182,763 3,419,320 236,557 Total licenses and permits 11,031,538 11,031,537 11,658,145 626,608 Intergovernmental: Federal: Programs for the aged 2,646,904 2,646,904 2,468,739 (178,165) Community development block grants 200,000 200,000 200,000 - Law enforcement 5,052,768 5,994,266 2,854,445 (3,139,821) Other 19,691,009 23,238,039 7,508,973 (15,729,066) Total federal 27,590,681 32,079,209 13,032,157 (19,047,052) State: Emergency medical services 24,944,904 25,562,606 25,562,606 - Other 10,021,264 11,053,059 7,904,239 (3,148,820) Total State 34,966,168 36,615,665 33,466,845 (3,148,820) Total intergovernmental revenue 62,556,849 68,694,874 46,499,002 (22,195,872) Charges for services: General government 4,912,955 4,912,955 4,043,055 (869,900) Culture and recreation 1,366,486 1,421,486 1,345,726 (75,760) Highways and streets 15,000 15,000 15,423 423 Public safety 82,400 82,400 117,728 35,328 Total charges for services 6,376,841 6,431,841 5,521,932 (909,909) Fines and forfeitures 2,171,300 2,171,300 990,187 (1,181,113) Rents 153,500 153,500 147,554 (5,946) (Continued) -123- COUNTY OF HAWAI`I Required Supplementary Information (Unaudited) General Fund Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) For the Fiscal Year Ended June 30, 2024 Actual Variance Original Final (Budgetary Positive Budget Budget Basis) (Negative) Revenues (continued): Interest and penalties $ 2,500,000 $ 2,500,000 S 24,807,282 S 22,307,282 Miscellaneous 4,312,306 4,472,306 4,079,674 (392,632) Total revenues 575,252,334 583,105,358 620,967,368 37,862,010 Expenditures: Current: General government: Finance 20,692,862 20,692,862 16,089,874 4,602,988 General government building 11,346,742 11,399,742 10,045,843 1,353,899 Legislative 5,041,782 4,157,827 3,568,868 588,959 Automotive equipment 5,720,376 5,586,473 4,771,929 814,544 Law 4,163,579 4,163,579 3,756,506 407,073 Research and development 4,089,298 7,594,940 7,114,427 480,513 Planning and zoning 5,050,324 5,125,324 4,011,559 1,113,765 Mayor's office 2,020,563 1,951,493 1,635,513 315,980 Engineering 1,071,274 1,073,914 1,010,054 63,860 Information technology 9,645,656 9,645,656 7,353,995 2,291,661 Human resources 3,796,168 3,796,168 2,388,310 1,407,858 Public works administration 2,102,340 2,132,340 1,906,008 226,332 Elections 1,053,022 1,053,022 702,183 350,839 County auditor 1,011,126 1,011,126 947,085 64,041 Sustainability, climate, equity and resilience 619,326 627,346 154,812 472,534 Total general government 77,424,438 80,011,812 65,456,966 14,554,846 Public safety: Police department 86,364,493 86,785,468 80,111,706 6,673,762 Fire department 70,058,647 71,253,489 67,736,367 3,517,122 Prosecuting attorney 12,920,262 13,987,681 10,153,876 3,833,805 Protective inspection 4,317,035 4,401,395 3,607,187 794,208 Liquor control 2,367,123 2,650,108 2,311,927 338,181 Flood control 330,000 330,000 330,000 - Civil defense agency 3,048,853 3,247,603 2,620,327 627,276 Animal control 3,603,325 3,636,355 3,313,054 323,301 Total public safety 183,009,738 186,292,099 170,184,444 16,107,655 Highways and streets: Mass transit 14,664,039 14,664,039 275,121 14,388,918 (Continued) - 124 - COUNTY OF HAWAI`I Required Supplementary Information (Unaudited) General Fund Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) For the Fiscal Year Ended June 30, 2024 Actual Variance Original Final (Budgetary Positive Budget Budget Basis) (Negative) Expenditures (continued): Current (continued): Health, education and welfare: Elderly activities $ 4,179,038 $ 4,401,883 $ 3,616,174 $ 785,709 Office of aging 4,800,886 4,819,886 3,543,617 1,276,269 Education 52,650 52,650 35,036 17,614 Social programs 2,500,000 2,500,000 2,472,500 27,500 Homelessness 11,100,000 11,100,000 10,494,813 605,187 Cemeteries 512,167 519,347 387,748 131,599 Physical examination 133,826 202,896 202,896 - Total health, education and welfare 23,278,567 23,596,662 20,752,784 2,843,878 Culture and recreation: Community music 409,805 453,600 383,835 69,765 Organized recreation: Maintenance 18,214,634 18,081,134 17,066,867 1,014,267 Recreation 3,756,549 3,768,649 3,324,663 443,986 Aquatics 3,086,756 2,995,256 2,425,711 569,545 Hoolulu park complex 1,280,658 1,339,658 1,329,571 10,087 Administration 3,675,247 3,682,504 3,541,793 140,711 Children's zoo 994,804 1,026,804 1,018,661 8,143 Summer/Intersession 594,052 605,452 372,759 232,693 Culture and arts 429,600 453,300 433,007 20,293 Elderly activities administration 961,054 1,028,674 899,451 129,223 Total culture and recreation 33,403,159 33,435,031 30,796,318 2,638,713 Sanitation: Environmental management 2,028,659 2,032,899 1,192,515 840,384 Pension and retirement contributions 74,617,064 74,760,758 67,340,109 7,420,649 Employees' health insurance 21,566,498 21,566,498 19,378,658 2,197,840 Other postemployment benefits 44,136,000 44,136,000 44,037,878 98,122 Other 24,057,463 23,759,179 7,808,756 15,950,423 Total current 498,185,625 504,254,977 427,223,549 77,031,428 (Continued) -125- COUNTY OF HAWAI`I Required Supplementary Information (Unaudited) General Fund Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) For the Fiscal Year Ended June 30, 2024 Expenditures (continued): Capital Outlay: Community Development Block grants (HUD) HOME Program Total capital outlay Total expenditures Excess of revenues over expenditures Other financing uses: Transfers out: Housing Fund Solid Waste Fund Sewer Fund Golf Course Fund Capital Project Fund Self Insurance 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 Comm Benefit Fund Debt Service Fund Total transfers out Total other financing uses Excess (deficiency) of revenues over (under) expenditures and other uses Fund balance at beginning of fiscal year Original Final Budget Budget (Concluded) Actual Variance (Budgetary Positive Basis) (Negative) $ 350,000 $ 500,000 $ (40,319) $ 540,319 200,000 205,000 - 205,000 550,000 705,000 (40,319) 745,319 498,735,625 "4C14rAn 504,959,977 rO1ncZ01 427,183,230 1n1rOA1'0 77,776,747 11GL10^CG (11,495,033) (11,503,333) (11,503,333) - (30,136,536) (30,136,536) (30,136,536) - (5,094,515) (5,094,515) (5,094,515) - (1,095,681) (1,095,681) (1,095,681) - - (120,373) (120,373) - (2,000,000) (2,000,000) (2,000,000) - (4,503,500) (5,003,500) (4,768,672) 234,828 (9,075,000) (10,115,000) (9,658,443) 456,557 (1,134,375) (1,094,375) (848,909) 245,466 (250,000) (250,000) (250,000) - (250,000) (250,000) - 250,000 (47,960,933) (47,960,933) (47,960,933) - (112,995,573) (114,624,246) (113,437,395) 1,186,851 (112,995,573) (114,624,246) (113,437,395) 1,196,851 (36,478,864) (36,478,865) 80,346,743 116,825,608 190,735,464 190,735,464 190,735,464 - Fund balance at end of fiscal year $ 154,256,600 $ 154,256,599 $ 271,082,207 $116,825,608 See accompanying notes to required supplementary information. - 126 - COUNTY OF HAWAI`I Required Supplementary Information (Unaudited) Hawaii County Housing Agency Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) For the Fiscal Year Ended June 30, 2024 Revenues: Intergovernmental - Federal - HUD - Voucher program Other federal grants State - Housing grant Investment earnings Other Total revenues Expenditures: Actual Variance Original Final (Budgetary Positive Budget Budget Basis) (Negative) $ 28,322,838 $ 33,872,838 $ 32,958,898 $ (913,940) - 25,000,000 23,000,000 (2,000,000) - 1,400,000 1,400,000 - 26,200 648,200 727,454 79,254 911,500 1,187,040 1,760,688 573,648 29,260,538 62,108,078 59,847,040 (2,261,038) Health, education and welfare 40,679,603 83,831,248 60,946,233 22,885,015 Pension and retirement contributions 1,326,743 1,326,743 1,201,200 125,543 Employees' health insurance 544,950 544,950 409,093 135,857 Total expenditures 42,551,296 85,702,941 62,556,526 23,146,415 Deficiency of revenues Lmder expenditures (13,290,758) (23,594,963) (2,709,486) 20,885,377 Other financing sources - transfers in - Transfers in - General Fund Excess (Deficiency) of revenues and other sources 11,495,033 11,503,333 11,503,333 - over(under)expenditures (1,795,725) (12,091,530) 8,793,847 20,885,377 Fund balance at beginning of fiscal year 12,611,238 12,611,238 12,611,238 - Fund balance at end of fiscal year $ 10,815,513 $ 519,708 $ 21,405,085 $ 20,885,377 See accompanying notes to required supplementary information. - 127 - COUNTY OF HAWAI`I Required Supplementary Information (Unaudited) June 30, 2024 Note - Annual Budget and Budgetary Controls The County follows these procedures in establishing its operating and capital budgets: • On or before March 1, the Mayor submits to the County Council proposed operating and capital projects budgets for the fiscal year commencing the following July 1. The operating budget includes proposed expenditures for the general fund and special revenue funds, and the means of financing them. A project -length budget is submitted to the County Council for the capital projects fund. • The Mayor submits to the County Council amendments to the proposed operating and capital budgets within ten working days after the close of the state legislature, but not later than May 5. • The County Council conducts public hearings on the proposed operating and capital budgets after March 1 but prior to the first reading on the budget bills, which must be after May 5. • On or before June 30, the County Council adopts the budgets. The legal level of budgetary control is the department level because the Mayor can transfer funds from any unencumbered appropriation to another within a department or agency without County Council approval. During the year, the budget may be amended by action of the County Council, except for appropriations required by law and appropriations for debt service, which may not be decreased or deleted. Supplemental appropriations were made during the 2023-24 fiscal year to recognize revenue from sources not anticipated at the time of the original budget and to establish the authorization for such funds to be expended. Such supplemental appropriations totaled $7.8 million in the general fund and $43.7 million in the special revenue funds. Legally adopted budgets include the General Fund, Highway Fund, Sewer Fund, Solid Waste Fund, Cemetery Fund, Vehicle Disposal Fund, Bikeway Fund, Workforce Investment Act Fund, Golf Course Fund, Geothermal Relocation and Community Benefits Fund, Beautification Fund, Hawaii County Housing Agency Fund, General Excise Tax Fund, Short -Term Vacation Rental Enforcement Fund, and Geothermal Asset Fund. Appropriations for the operating budget lapse at the end of the fiscal year to the extent that they have not been expended or encumbered. Appropriations for capital expenditures that are not encumbered lapse at the end of two fiscal years following the 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 budgetary integration is not employed for debt service funds because effective budgetary control is alternatively achieved through general obligation bond indenture provisions. -128- COUNTY OF HAWAI`I Required Supplementary Information (Unaudited) June 30, 2024 The accompanying statements of revenues, expenditures and changes in fund balances — budget and actual (budgetary basis) for the General Fund and Hawaii County Housing Agency Fund present comparisons of the legally adopted budget with actual data on a budgetary basis. Accounting principles applied 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, intergovernmental revenues are recognized when awarded by the granting agency, encumbrances and unexpended allotments are treated as expenditures, accounts payable 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. Budget to GAAP Reconciliation The following is a summary of the adjustments necessary to convert fund balances of the County's General Fund and Housing Agency Fund from a GAAP basis to a budgetary basis at June 30, 2024: General Fund Housing Agency Ending fund balance — GAAP basis $ 215,868,896 $ 21,880,205 Encumbrance adjustments: Beginning encumbrances and unexpended allotments 12,951,200 1,106,782 Ending encumbrances and unexpended allotments (21,646,139) (1,603,998) Other adjustments 63,908,250 22,096 Ending fund balance — Non-GAAP budgetary basis $ 271,082,207 $ 21,405,085 - 129 - 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. CEMETERYFUND - 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. BIKEWAYFUND - Used to accumulate moneys for the construction of bikeways within the County. Financing is provided by bicycle license fees. WORKFORCE INNOVATION AND OPPORTUNITY 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 RELOCATIONAND COMMUNITY BENEFITS FUND - Used to account for the County's share of geothermal 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. GENERAL EXCISE TAX FUND - Used to account for the general excise tax and use surcharge as authorized by §46-16.8, 237- 8.6, 238-2.6, and 248-2.6(d) Hawaii Revised Statutes and related authorized uses of such funds, including operating or capital costs of public transportation. PARK DEDICATION FUND - Used to account for moneys deposited with the County by subdividers to provide land for parks and playgrounds in subdivisions. SHORT-TERM VACATION RENTAL ENFORCEMENT FUND — Used to account for cost of enforcing County's short-term vacation rental enforcement laws. Financing is provided by all fees and fines collected in connection with the law. GEOTHERMAL ASSET FUND — Used to account for funds from Puna Geothermal Venture, a Hawaii Partnership, to compensate those impacted by geothermal energy development activities. DEBT SERVICE FUNDS 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. BOND REDEMPTIONFUND - 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. This page intentionally left blank COUNTY OF HAWAII Nonmajor Governmental Funds Combining Balance Sheet June 30, 2024 Special Revenue Funds Solid Parking Vehicle Highway Sewer Waste Cemetery Meter Disposal Fund Fund Fund Fund Fund Fund Assets Cash and cash equivalents $ 43,768,892 $ 21,415,836 $ 13,410,902 $ 79,947 $ 359,550 $ 9,798,438 Investments - - - - - - Imprest fund - 400 250 - - - Receivables: Due from other governments 2,343,402 281,145 879,197 - - - Due from other governmental funds 660,631 179,692 171,868 - - - Due from nongovernmental funds - 5,200 - - - - Trade, net of allowance for doubtful accounts - 2,674,739 2,389,066 - - - Other - - 986,055 - - - 3,004,033 3,140,776 4,426,186 - - - Total assets $ 46,772,925 $ 24,557,012 $ 17,837,338 $ 79,947 $ 359,550 $ 9,798,438 Liabilities, Deferred Inflows and Fund Balances Liabilities: Accounts payable $ 1,086,565 $ 662,909 $ 3,948,834 $ - $ - $ 165,648 Accrued payroll 910,391 284,798 571,216 - - 13,281 Due to other governmental funds 1,050,896 905,982 1,042,003 - - 77,898 Advance Collections -Intergovernmental - - 11,998 - - - Other 34,342 128,366 742 - - - Total liabilities 3,082,194 1,982,055 5,574,793 - - 256,827 Deferred Inflows of Resources: Unavailable revenue (note 6) - 2,674,739 2,389,066 Deferred inflows related to leases - - 68,545 - - - Total deferred inflows of resources - 2,674,739 2,457,611 - - - Fund balances: Restricted for: Debt service - - - - - - Highways, streets and abandoned vehicles 43,690,731 - - - - - Lower Puna area - - - - - - Committed to: Sanitation - 19,900,218 9,804,934 - - - Highways, streets and abandoned vehicles - - - - 359,550 9,541,611 Housing, rental assistance and subsidy - - - - - - Cemetery - - - 79,947 - - Golf Course - - - - - - Lower Puna area - - - - - - Parks and recreational projects - - - - - - Total fund balances 43,690,731 19,900,218 9,804,934 79,947 359,550 9,541,611 Total liabilities, deferred inflows and fund balances $ 46,772,925 $ 24,557,012 $ 17,837,338 $ 79,947 $ 359,550 $ 9,798,438 See accompanying report of independent auditors. - 130 - COUNTY OF HAWAI`I Nonmajor Governmental Funds Combining Balance Sheet Jame 30, 2024 Special Revenue Funds Bikeway Fund Workforce innovation & opport. Act Fend Golf Course Fund Geothermal Reloc. & community Benefits Ftmd Beauti- fication Fund General Excise Tax Fund Park Dedication Fund $ 414,581 $ - $ 730,464 $ 5,078,571 $ 261,052 $ 47,239,642 $ 64,980 - - 2,000 - - - - - 558,466 - - - 25,045,619 - - 64 - - - 63,053 - - 38,994 1,208,621 561,116 - - - - 597,524 1,208,621 561,116 - 25,108,671 - $ 414,581 $ 597,524 $1,941,085 $ 5,639,687 $ 261,052 $ 72,348,313 $ 64,980 $ 2,414 $ - $ 8,662 $ 2,756 $ 1,638 $ 2,471,707 $ - - - 57,886 - - 86,865 - - 597,524 - - 108,259 10,885 - - - - - - 2,106 - 2,414 597,524 66,548 2,756 109,897 2,571,563 - - - 1,201,097 - - - - - - 1,201,097 - - - - 412,167 - - - 151,155 69,776,750 - - - 673,440 - - - - - - - 5,636,931 - - - - - - - - - 64,980 412,167 - 673,440 5,636,931 151,155 69,776,750 64,980 $ 414,581 $ 597,524 $1,941,085 $ 5,639,687 $ 261,052 $ 72,348,313 $ 64,980 - 131 - COUNTY OF HAWAPI Nonmajor Governmental Funds Combining Balance Sheet June 30, 2024 Debt Service Fund Short-term Bond Vacation Rental Geothermal Interest Redemption Enforcement Fund Asset Fund Fund Fund Assets Cash and cash equivalents $ 1,241,945 $2,576,377 $ 6,430,953 $ 5,567,490 Investments - - - 43,500,000 Imprest fund - - - - Receivables: Due frorn other governments - - Due from other governmental funds - - Due from nongovernmental funds - - Trade, net of allowance for doubtful accounts - - Other - - Total assets $ 1,241,945 $2,576,377 Liabilities, Deferred Inflows and Fund Balances Liabilities: Accounts payable $ - $ - Accrued payroll 13,549 - Due to other governmental funds - - Advance Collections -Intergovernmental - - Other - Total liabilities 13,549 - Deferred Inflows of Resources: Unavailable revenue (note 6) - - Deferred inflows related to leases - - Total deferred inflows of resources - - Fund balances: Restricted for: Debt service - - Highways, streets and abandoned vehicles - - Lower Puna area - 2,576,377 Committed to: Sanitation - - Highways, streets and abandoned vehicles - - Housing, rental assistance and subsidy 1,228,396 - Cemetery - - Golf Course - - Lower Puna area - - Parks and recreational projects - - Total fund balances 1,228,396 2,576,377 Total liabilities, deferred inflows and fund balances $ 1,241,945 $2,576,377 See accompanying report of independent auditors. - 159,080 15,377 - 15,377 159,080 $ 6,446,330 $49,226,570 63,198 185,000 63,198 185,000 6,383,132 49,041,570 (Concluded) Total Nonmaj or Governmental $ 158,439,620 43,500,000 2,650 29,107,828 1,075,308 164,280 5,063,805 2,810,163 38,221,384 $ 240,163,654 $ 8,351,133 1,937,986 3,793,447 11,998 413,754 14,508,318 5,063,805 1,269,642 6,333,447 55,424,702 114,030,803 2,576,377 - - 29,705,152 - - 9,901,161 - - 1,228,396 - - 79,947 - - 673,440 - - 5,636,931 - - 64,980 6,383,132 49,041,570 219,321,889 $ 6,446,330 $49,226,570 $ 240,163,654 - 132 - This page intentionally left blank COUNTY OF HAWAI`I Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances For the Fiscal Year Ended June 30, 2024 Special Revenue Funds Solid Parking Vehicle Highway Sewer Waste Cemetery Meter Disposal Fund Fund Fund Fund Fund Fund Revenues Fuel taxes S 21,707,504 S - S - $ - $ - S - Public utility franchise taxes 11,589,997 - - - - - Licenses and permits 13,435,238 - - - - 2,567,976 General excise tax surcharge - - - - - - Intergovernmental 2,788,102 - 681,723 - - - Charges for services 444,595 16,311,673 15,478,249 - 10,188 15,683 Investment earnings - - - - - - Other 464,620 962 74,525 10,750 - 13,985 Total revenues 50,430,056 16,312,635 16,234,497 10,750 10,188 2,597,644 Expenditures Current: General Government 2,800,762 - - - - - Public safety 12,115,525 - - - - - Highways and streets 20,332,923 - - - - - Health, education and welfare - - - - - - Culture and recreation - - - 60,269 - - Sanitation - 16,133,761 40,276,111 - - 2,230,308 Pension and retirement contributions 4,907,845 1,364,142 2,506,875 - - 49,122 Employees' health insurance 1,967,689 525,569 1,041,833 - - 29,451 Other 410,313 172,383 652,948 - - - Debt service: Principal 894,248 414,522 746,841 - - - Interest 78,729 92,363 74,132 - - - Total expenditures 43,308,034 18,702,740 45,298,740 60,269 - 2,307,881 Excess (deficiency) of revenues over (under) expenditures 7,122,022 (2,390,105) (29,064,243) 49,519 10,188 289,763 Other Financing Sources (Uses) Transfers in - 5,094,515 30,136,536 - - - Increases in leases and other financing agreements 9,539 2,785,852 1,586,456 - - - Transfers out (4,644,289) - - - - (481,904) Total other financing sources (uses) (4,634,750) 7,880,367 31,722,992 - - (481,904) Net change in fund balances 2,487,272 5,490,262 2,658,749 (49,519) 10,188 (192,141) Fund balances at beginning of fiscal year 41,203,459 14,409,956 7,146,185 129,466 349,362 9,733,752 Fund balances at end of fiscal year S 43,690,731 S 19,900,218 S 9,804,934 $ 79,947 $ 359,550 S 9,541,611 See accompanying report of independent auditors - 133 - COUNTY OF HAWAI`I Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances For the Fiscal Year Ended June 30, 2024 Special Revenue Funds Workforce Golf Geothermal Reloc. Beauti- park Bikeway innovation & Course & conuuunity fication General Excise Dedication Fund opport. Act Fund Fund Benefits Fund Fund Tax Fund Fund $ - $ - $ - $ - $ - 48,754 - - - 213,946 - - - - - - - 72,740,427 - - 1,012,285 - - - - - - - 975,009 - - - - - - - - - - 2,707 5,099 - - 900,457 26 - - 53,853 1,012,285 975,009 900,457 213,972 72,740,427 2,707 2,756 231,890 150,294 - - - 214,591 31,973,713 - - 1,012,285 - - - - - - - 1,293,979 495,237 35,134 - - - - 303,159 - - 371,572 - - - 144,381 - - 92,304 - - - - - - 13,810 - - - 4,863 - - - - 96,441 - 771,300 170,574 35,753 40,289,028 2,707 - - 1,095,681 - - - - - - - - - (46,897,627) - - - 1,095,681 - - (46,897,627) - (96,441) - 324,381 170,574 (35,753) (6,608,599) 2,707 508,608 - 349,059 5,466,357 186,908 76,385,349 62,273 $ 412,167 $ - $ 673,440 $ 5,636,931 $ 151,155 $ 69,776,750 $ 64,980 - 134 - COUNTY OF HAWAI`I Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances For the Fiscal Year Ended June 30, 2024 (Concluded) Debt Service Fund Total Short-tenn Bond Nonmajor Vacation Rental Geothermal Interest Redemption Governmental Enforcement Fund Asset Fund Fund Fund Funds Revenues Fuel taxes $ - $ - $ - $ - $ 21,707,504 Public utility franchise taxes - - - - 11,589,997 Licenses and permits 325,020 - - - 16,590,934 General excise tax surcharge - - - - 72,740,427 Intergovernmental - - - - 4,482,110 Charges for services - - - - 33,235,397 Investment earnings - 106,900 181,721 - 291,328 Other 2,500 50,000 - - 1,522,924 Total revenues 327,520 156,900 181,721 - 162,160,621 Expenditures Current: General Government 323,334 - - - 3,126,852 Public safety - - - - 12,347,415 Highways and streets - - - - 52,671,521 Health, education and welfare - - - - 1,012,285 Culture and recreation - - - - 1,884,519 Sanitation - - - - 59,640,180 Pension and retirement contributions 85,974 - - - 9,487,689 Employees' health insurance 54,099 - - - 3,755,326 Other - - - - 1,249,454 Debt service: Principal - - - 62,023,932 64,084,406 Interest - - 19,725,479 - 19,970,730 Total expenditures 463,407 - 19,725,479 62,023,932 228,230,377 Excess (deficiency) of revenues over (under) expenditures (135,887) 156,900 (19,543,758) (62,023,932) (66,069,756) Other Financing Sources (Uses) Transfers in - - 18,018,549 64,566,982 118,912,263 Increases in leases and other financing agreements - - - - 4,381,847 Transfers out - - - - (52,023,820) Total other financing sources (uses) - - 19,018,549 64,566,982 71,270,290 Net change in fund balances (135,887) 156,900 (1,525,209) 2,543,050 5,200,534 Fund balances at beginning of fiscal year 1,364,283 2,419,477 7,908,341 46,498,520 214,121,355 Fund balances at end of fiscal year $ 1,228,396 $2,576,377 $ 6,383,132 $49,041,570 $ 219,321,889 See accompanying report of independent auditors -135- This page intentionally left blank Assets Cash and cash equivalents Due from other custodial funds Other receivables Total assets Liabilities Accrued liabilities Due to other custodial funds Advances payable Total liabilities Net Position COUNTY OF HAWAI`I Custodial Funds Combining Statement of Custodial Funds Fiduciary Net Position June 30, 2024 Performance State Improvement Improvement Improvement Improvement and Weight District District District District Refundable Tax No.18 No.19 No.20 Revolving Deposits Fund Fund Fund Fund Fund Fund $ 2,067,463 $ 335,351 $ 603,483 $ 759,087 $ 442,951 $ 323,929 - 23,348 4,234 7,541 - - $ 2,067,463 $ 358,699 $ 607,717 $ 766,628 $ 442,951 $ 323,929 $ 2,067,463 $ 890 $ 1,092 $ 8,194 $ - $ - - - - - - 12,225 - 22,627 1,236 21,755 - - $ 2,067,463 $ 23,517 $ 2,328 $ 29,949 $ - $ 12,225 Restricted for others $ - $ 335,182 $ 605,389 $ 736,679 $ 442,951 $ 311,704 Total net position $ - $ 335,182 $ 605,389 $ 736,679 $ 442,951 $ 311,704 See accompanying report of independent auditors. - 136 - COUNTY OF HAWAII Custodial Funds Combining Statement of Custodial Funds Fiduciary Net Position June 30, 2024 Non -Profit Organ and Business Flexible Lapsed License Tissue Improvement Spending Warrants Plates Education District Account Fund Fund Fund 1 - Kailua Total $ 428,157 $ 465,135 $ 44,225 $ 5,362 $ 1,767 $ 5,476,910 - 12,225 - - - 12,225 - 84,150 1,410.00 - 16,210 136,893 $ 428,157 $ 561,510 $ 45,635 $ 5,362 $ 17,977 $ 5,626,028 $ 45,635 $ 5,362 $ 17,977 $ 2,146,613 - - - - - 12,225 - - - - - 45,618 45,635 $ 5,362 $ 17,977 $ 2,204,456 $ 428,157 $ 561,510 $ - $ - $ - $ 3,421,572 $ 428,157 $ 561,510 $ - $ - $ - $ 3,421,572 - 137 - COUNTY OF HAWAII Custodial Funds Combining Statement of Changes in Custodial Funds Fiduciary Net Position For the Fiscal Year Ended June 30, 2024 Additions Tax collections for state Special assessment collections Developer deposit Employee collections Lapsed checks Collections from vehicle registrations and licenses Investment earnings Total additions Deductions Payment of taxes to state Payments to state, not for profits and improvement district Contributions to debt repayment Administrative charges Community facility district expenses Reissuance of checks Reimbursements to employees Other Total deductions Change in net position Net position at beginning of fiscal year Net position at end of fiscal year See accompanying report of independent auditors. Improvement Improvement Improvement Improvement District State Weight District District District Revolving Tax Fund No. 18 Fund No. 19 Fund No. 20 Fund Fund $ 30,133,621 $ - $ - $ - $ - - 61,344 19,825 146,045 - - 14,100 25,587 30,537 18,455 30,133,621 75,444 45,412 176,582 18,455 29,006,902 - - - - - 124,322 55,133 86,415 - 1,126,719 890 1,092 8,194 - IGJ,000 ,7V,bor 74,/00 - - (49,824) (10,869) 81,794 18,455 - 385,006 616,258 654,885 424,496 $ - $ 335,182 $ 605,389 $ 736,679 $ 442,951 - 138 - COUNTY OF HAWAI`I Custodial Funds Combining Statement of Changes in Custodial Funds Fiduciary Net Position For the Fiscal Year Ended June 30, 2024 Performance and Non -Profit Organ and Business Refundable Flexible Lapsed License Tissue Improvement Total Deposits Spending Warrants Plates Education District Custodial Fund Account Fund Fund Fund 1 - Kailua Funds $ - $ - $ - $ - $ - $ - $ 30,133,621 972,597 - - - - 1,269,660 2,469,471 75,000 - - - - - 75,000 - 561,008 - - - - 561,008 - - 96,637 - - - 96,637 134,000 164,535 21,921 - 320,456 - - - - - - 88,679 1,181,597 561,008 96,637 164,535 21,921 1,269,660 33,744,872 - - - - - - 29,006,902 - - - 130,810 17,706 1,266,774 1,415,290 - - - - - - 265,870 - - - 33,725 4,215 2,886 1,177,721 972,597 - - - - - 972,597 - - 27,542 - - - 27,542 - 566,446 - - - - 566,446 40,866 - - - - - 41,157 1,013,463 566,446 27,542 164,535 21,921 1,269,660 33,473,525 168,134 (5,438) 69,095 - - - 271,347 143,570 433,595 492,415 - - - 3,150,225 $ 311,704 $ 428,157 $ 561,510 $ - $ - $ - $ 3,421,572 - 139 - COUNTY OF HAWAII Private Purpose Trusts Combining Statement of Private Purpose Trust Fiduciary Net Position June 30, 2024 Shippers' Total Wharf Private Trust Purpose Assets Fund Trusts Cash and cash equivalents $ 577,982 $ 577,982 Investments 2,073,074 2,073,074 Total assets $ 2,651,056 $ 2,651,056 Net Position Restricted for other parties $ 2,651,056 $ 2,651,056 Total net position $ 2,651,056 $ 2,651,056 See accompanying report of independent auditors. - 140 - COUNTY OF HAWAII Private Purpose Trusts Combining Statement of Changes in Private Purpose Trust Fiduciary Net Position For the Fiscal Year Ended June 30, 2024 Additions Investment earnings: Dividends Interest Net increase in fair value of investments Total additions Deductions Grant payments Investment Fees Total deductions Change in net position Net position, beginning of fiscal year Net position, end of fiscal year See accompanying report of independent auditors. Shippers' Total Wharf Private Trust Purpose Fund Trusts $ 80,539 $ 80,539 2,103 2,103 142,049 142,049 224,691 224,691 83,391 83,391 15,789 15,789 99,180 99,180 125,511 125,511 2,525,545 2,525,545 $ 2,651,056 $ 2,651,056 - 141 - COUNTY OF HAWAI`I Highway Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) For the Fiscal Year Ended June 30, 2024 Revenues: Taxes: Fuel taxes Public utility franchise taxes Total taxes Licenses and permits - motor vehicle weight taxes Intergovernmental Charges for services Other Total revenues Expenditures: General government - engineering Public safety - police traffic enforcement Public safety - protective inspection Public safety - traffic engineering Highways and streets Pension and retirement contributions Employees' health insurance Other Total expenditures Excess (Deficiency) of revenues over (under) expenditures Other financing uses - transfers out - Transfers out - Capital Projects Fund Excess (Deficiency) of revenues over (under) expenditures and other uses Fund balance at beginning of fiscal year Fund balance at end of fiscsal year See accompanying report of independent auditors. Actual Variance Original Final (Budgetary Positive Budget Budget Basis) (Negative) $ 21,600,000 $ 21,600,000 $ 21,707,504 $ 107,504 12,728,000 12,728,000 11,589,997 (1,138,003) 34,328,000 34,328,000 33,297,501 (1,030,499) 12,000,000 12,000,000 13,43 5,23 8 1,435,238 1,751,258 2,000,578 2,916,853 916,275 655,000 655,000 959,498 304,498 138,000 138,000 464,620 326,620 48,872,258 49,121,578 51,073,710 1,952,132 3,520,131 6,379,508 4,270,476 2,109,032 2,395,204 2,395,204 1,422,694 972,510 2,382,700 1,294,643 1,202,668 91,975 11,583,895 11,583,895 9,881,056 1,702,839 22,460,267 22,460,267 21,004,189 1,456,078 5,690,000 5,690,000 4,794,455 895,545 2,225,000 2,225,000 1,857,950 367,050 1,600,000 1,600,000 457,900 1,142,100 51,857,197 53,628,517 44,891,388 8,737,129 (2,984,939) (4,506,939) 6,182,322 10,689,261 (5,000,000) (5,000,000) (4,718,922) ?R1 n7R (7,984,939) (9,506,939) 1,463,400 10,970,339 41,203,459 41,203,459 41,203,459 - $ 33,218,520 $ 31,696,520 $ 42,666,859 $ 10,970,339 - 142 - COUNTY OF HAWAII Sewer Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) For the Fiscal Year Ended June 30, 2024 Actual Variance Original Final (Budgetary Positive Budget Budget Basis) (Negative) Revenues: Charges for services - sewer fees $ 15,690,147 $ 15,690,147 $ 16,311,673 $ 621,526 Other - - 962 962 Total revenues 15,690,147 15,690,147 16,312,635 622,488 Expenditures: Sanitation 19,146,335 19,146,335 14,089,288 5,057,047 Pension and retirement contributions 2,090,583 2,090,583 1,361,015 729,568 Employees' health insurance 874,223 804,223 523,234 280,989 Other 1,105,000 1,175,000 332,611 842,389 Total expenditures 23,216,141 23,216,141 16,306,148 6,909,993 Deficiency of revenues under expenditures (7,525,994) (7,525,994) 6,487 7,532,481 Other financing sources: Transfers in - General Fund 5,094,515 5,094,515 5,094,515 - Excess (Deficiency) of revenues and other sources over (under) expenditures (2,431,479) (2,431,479) 5,101,002 7,532,481 Fund balance at beginning of fiscal year 14,409,956 14,409,956 14,409,956 - Fund balance at end of fiscal year $ 11,978,477 $ 11,978,477 $ 19,510,958 $ 7,532,481 See accompanying report of independent auditors. -143- COUNTY OF HAWAII Solid Waste Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) For the Fiscal Year Ended June 30, 2024 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 fiscal year Fund balance at end of fiscal year See accompanying report of independent auditors. Actual Variance Original Final (Budgetary Positive Budget Budget Basis) (Negative) $ 915,414 $ 2,647,544 $ 2,457,512 14,930,000 14,93 0,000 15,478,249 - - 74,525 15, 845,414 17,5 77,544 18,010,2 86 $ (190,032) 548,249 43,514,946 45,247,076 42,004,024 3,243,052 3,032,248 2,777,248 2,495,859 281,389 1,166,225 1,166,225 1,031,637 134,588 546,000 801,000 645,367 155,633 48,259,419 49,991,549 46,176,887 3,814,662 (32,414,005) (32,414,005) (28,166,601) 4,247,404 30,136,536 30,136,536 30,136,536 - (2,277,469) (2,277,469) 1,969,935 4,247,404 7,146,185 7,146,185 7,146,185 - $ 4,868,716 $ 4,868,716 $ 9,116,120 $ 4,247,404 - 144 - 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, 2024 Revenues - other - sale of cemetery plots Expenditures - health, education and welfare Excess of revenues over expenditures Fund balance at beginning of fiscal year Fund balance at end of fiscal year See accompanying report of independent auditors. Actual Variance Original Final (Budgetary Positive Budget Budget Basis) (Negative) $ 10,000 $ 10,000 $ 10,750 $ 750 10,000 10,000 9,769 231 - - 981 981 129,466 129,466 129,466 - $ 129,466 $ 129,466 $ 130,447 $ 981 -145- 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, 2024 Revenues - Charges for services - highways and streets Excess of revenues over expenditures Fund balance at beginning of fiscal year Fund balance at end of fiscal year See accompanying report of independent auditors. Actual Variance Original Final (Budgetary Positive Budget Budget Basis) (Negative) $ - $ - $ 10,188 $ 10,188 - - 10,188 10,188 349,362 349,362 349,362 - $ 349,362 $ 349,362 $ 359,550 $ 10,188 - 146 - COUNTY OF HAWAI`I Vehicle Disposal Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) For the Fiscal Year Ended June 30, 2024 Actual Variance Original Final (Budgetary Positive Budget Budget Basis) (Negative) Revenues: Licenses and permits - vehicle disposal fee $ 2,515,000 $ 2,515,000 $ 2,567,976 $ 52,976 Charges for services - towing charges 18,000 18,000 15,683 (2,317) Miscellaneous 5,000 5,000 13,985 8,985 Total revenues 2,538,000 2,538,000 2,597,644 59,644 Expenditures: Sanitation 4,159,299 4,159,299 2,085,999 2,073,300 Pension and retirement contributions 64,500 64,500 47,372 17,128 Employees' health insurance 42,204 42,204 28,187 14,017 Other 2,000 2,000 - 2,000 Total expenditures 4,268,003 4,268,003 2,161,558 2,106,445 Deficiency of revenues under expenditures (1,730,003) (1,730,003) 436,086 2,166,089 Other financing uses - transfers out - Transfers out - Capital Projects Fund (200,000) (200,000) - 200,000 Transfers out - Serial Bond Redemption Fund (440,000) (440,000) (410,403) 29,597 Transfers out - Interest Fund (80,000) (80,000) (71,501) 8,499 Deficiency of revenues under expenditures and other uses (2,450,003) (2,450,003) (45,818) 2,404,185 Fund balance at beginning of fiscal year 9,733,752 9,733,752 9,733,752 - Fund balance at end of fiscal year $ 7,283,749 $ 7,283,749 $ 9,687,934 $ 2,404,185 See accompanying report of independent auditors. - 147 - COUNTY OF HAWAII Bikeway Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) For the Fiscal Year Ended June 30, 2024 Revenues - Licenses and permits - bicycle tax Miscellaneous Total revenues Expenditures - highways and streets Deficiency of revenues under expenditures Fund balance at beginning of fiscal year Fund balance at end of fiscal year See accompanying report of independent auditors. Actual Variance Original Final (Budgetary Positive Budget Budget Basis) (Negative) $ 50,000 $ 50,000 $ 49,754 $ (1,246) - - 5,099 5,099 50,000 50,000 53,853 3,853 199,000 199,000 149,589 49,411 (149,000) (149,000) (95,736) (45,558) 508,609 508,608 508,608 - $359,608 $359,608 $412,872 ($45,558) - 148 - COUNTY OF HAWAI`I 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, 2024 Revenues - intergovernmental Expenditures - health, education and welfare Excess of revenues over expenditures Fund balance at beginning of fiscal year Fund balance at end of fiscal year See accompanying report of independent auditors. Actual Variance Original Final (Budgetary Positive Budget Budget Basis) (Negative) $ - $ - $ (1,075,772) $ (1,075,772) - - (1,075,772) 1,075,772 - 149 - COUNTY OF HAWAII Golf Course Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) For the Fiscal Year Ended June 30, 2024 Actual Variance Original Final (Budgetary Positive Budget Budget Basis) (Negative) Revenues: Charges for services $ 932,250 $ 932,250 $ 975,009 $ 42,759 Expenditures: Culture and recreation 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 fiscal year Fund balance at end of fiscal year See accompanying report of independent auditors. 1,578,486 1,578,486 1,385,048 193,438 324,423 322,715 303,096 19,619 142,000 143,708 143,708 - 6,000 6,000 - 6,000 2,050,909 2,050,909 1,831,852 219,057 (1,118,659) (1,118,659) (856,843) 261,816 1,095,681 1,095,681 1,095,681 - (22,978) (22,978) 238,838 261,816 349,059 349,059 349,059 - $ 326,081 $ 326,081 $ 587,897 $ 261,816 - 150 - COUNTY OF HAWAII Geothermal Relocation and Community Benefits Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) For the Fiscal Year Ended June 30, 2024 Actual Variance Original Final (Budgetary Positive Budget Budget Basis) (Negative) Revenues Miscellaneous: Geothermal royalties $ 1,000,000 $ 1,000,000 $ 900,457 $ (99,543) Expenditures: General government - planning and zoning 1,000,000 563,000 65,000 498,000 Culture & Recreation - 437,000 434,991 2,009 Total expenditures 1,000,000 1,000,000 499,991 500,009 Excess of revenues over expenditures - - 400,466 400,466 Fund balance at beginning of fiscal year 5,466,357 5,466,357 5,466,357 - Fund balance at end of fiscal year $ 5,466,357 $ 5,466,357 $ 5,866,823 $ 400,466 See accompanying report of independent auditors. - 151 - 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, 2024 Revenues Licenses and permits - highway beautification Miscellaneous Total revenues Expenditures: Highways and streets Culture and recreation Total expenditures Excess (Deficiency) of revenues over (under) expenditures Fund balance at beginning of fiscal year Fund balance at end of fiscal year See accompanying report of independent auditors. Original Final Budget Budget $ 200,000 $ 200,000 200,000 200,000 Actual Variance (Budgetary Positive Basis) (Negative) $ 213,946 $ 13,946 26 26 213,972 13,972 178,450 178,450 166,119 12,331 90,000 90,000 35,134 54,866 268,450 268,450 201,253 67,197 (68,450) (68,450) 12,719 (53,225) 186,908 186,908 186,908 - $ 118,458 $ 118,458 $ 199,627 $ (53,225) - 152 - COUNTY OF HAWAPI General Excise Tax Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) For the Fiscal Year Ended June 30, 2024 Actual Variance Original Final (Budgetary Positive Budget Budget Basis) (Negative) Revenues: General excise tax surcharge $ 60,000,000 $ 60,000,000 $ 72,740,427 $ 12,740,427 Expenditures: Highways and streets - mass transit 37,732,245 37,732,245 29,859,558 7,872,687 Pension and retirement contributions 630,000 630,000 367,212 262,788 Employees' health insurance 175,000 175,000 91,016 83,984 Other 165,128 165,128 9,201 155,927 Total expenditures 38,702,373 38,702,373 30,326,987 8,375,386 Excess of revenues over expenditures 21,297,627 21,297,627 42,413,440 4,365,041 Other financing uses - transfers out - Transfers out - Capital Projects Fund (38,197,627) (38,197,627) (38,197,627) - Transfers out - Serial Bond Redemption Fund (6,400,000) (6,400,000) (6,400,000) - Transfers out - Interest Fund (2,300,000) (2,300,000) (2,300,000) - Deficiency of revenues under expenditures and other uses (25,600,000) (25,600,000) (4,484,187) 4,365,041 Fund balance at beginning of fiscal year 76,385,349 76,385,349 76,385,349 - Fund balance at end of fiscal year $ 50,785,349 $ 50,785,349 $ 71,901,162 $ 4,365,041 See accompanying report of independent auditors - 153 - 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, 2024 Revenues - investment earnings Excess of revenues over expenditures Fund balance at beginning of fiscal year Fund balance at end of fiscal year See accompanying report of independent auditors. Actual Variance Original Final (Budgetary Positive Budget Budget Basis) (Negative) - - 2,707 2,707 62,273 62,273 62,273 - $ 62,273 $ 62,273 $ 64,980 $ 2,707 - 154 - COUNTY OF HAWAII Short -Term Vacation Rental Enforcement Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) For the Fiscal Year Ended June 30, 2024 Actual Variance Original Final (Budgetary Positive Budget Budget Basis) (Negative) Revenues: Licenses - ST vacation rental fees $ 337,500 $ 337,500 $ 325,020 $ (12,480) Fines and forfeitures 10,000 10,000 2,500 (7,500) Total revenues 347,500 347,500 327,520 (19,980) Expenditures: General government: ST vacation rental enforcement 854,772 854,772 326,675 528,097 Pension and retirement contributions 205,000 205,000 87,044 117,956 Employees' health insurance 127,000 127,000 54,550 72,450 Total expenditures 1,186,772 1,186,772 468,269 718,503 Deficiency of revenues under expenditures (839,272) (839,272) (140,749) 698,523 Fund balance at beginning of fiscal year 1,364,283 1,364,283 1,364,283 - Fund balance at end of fiscal year $ 525,011 $ 525,011 $ 1,223,534 $ 698,523 See accompanying report of independent auditors. -155- COUNTY OF HAWAI`I Geothermal Asset Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (Budgetary Basis) For the Fiscal Year Ended June 30, 2024 Revenues: Licenses - geothermal assessment Investment earnings Total revenues Expenditures: General government Total expenditures Excess of revenues over expenditures Fund balance at beginning of fiscal year Fund balance at end of fiscal year See accompanying report of independent auditors. Actual Variance Original Final (Budgetary Positive Budget Budget Basis) (Negative) $ 50,000 $ 50,000 $ 50,000 $ - - - 106,900 106,900 50,000 50,000 156,900 106,900 50,000 50,000 50,000 - 50,000 50,000 50,000 - - - 106,900 106,900 2,419,477 2,419,477 2,419,477 - $ 2,419,477 $ 2,419,477 $ 2,526,377 $ 106,900 - 156 - STATISTICAL SECTION (UNAUDITED) Contents Page Financial Trends — These schedules contain trend information to help the reader understand how the County's financial performance and well-being have changed over time. 157 Revenue Capacity — These schedules contain information to help the reader assess the County's most significant local revenue source, the property tax. 162 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. 168 Demographic and Economic Information — These schedules offer demographic and economic indicators to help the reader understand the environment within which the County's financial activities take place. 171 Operating Information — These schedules contain sei vice 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. 173 7 �G rn x N M In N lc �O lc N O x rq [- 7 N x vi O I M h vi 7 n x rn �n n n N x �C N x a` O 0• 00 x � � x" �1 � 00 0 �+; �y 'd �G 7 � �O •-. �O l� ch l� 7 x O C 't O '1 C , O h N': •7 L� M � O _O _ O O O V r, ti O Wj N � � b➢ (J OJ � N G. c3 z � m m O r 7 O V' M C C C M �D M C M M� C 7 7 x N x C C x M R n N N x x N N Vl V a\ M M— '_O Ic C. x M t` — N 69 64 N 69 Y3 69 b9 10 O O C O V1 C\ x N M O 11; Cl V Vl M x N M x Vl Vl N O— 01 x x l� Vl V1 69 64 6S 64 6S H3 Vt M V— 'G — N V1 N t` C V x 0 x V O Vt �D I-:," O N L� M O r M Vl — O N O x x C h M M M� N 0 V1 V Vt V l� V Vl V1 O lJ 69 �i4 69 �i4 EA !A Vj Y3 Ji Y3 Ji 69 x N M N C V C M 0 O M M M ID a,C` Ic V t\ � M lG C\ C\ N 7 M V V M M N V V x O M C Vt Vt R JD M R M 7 N t\ N N x of t\ l� '- O �D — xof 7 7^ O n 69 — ^ 64 N 69 vi vi 64 V 69 V 69 M lD c0 �n O M x N N lc O Olc N R 7 N lC l� C C C 0 0 0 0 x-- — O— N M O^ ID C IG ^ ID — O— 69 64 6S 64 6S H3 ID N C C C lD v1 r OC � E}i Yi EH Yi EH EA N o lo � m — o� � o� o � ' o o x o 17 x lo U C M N O V C C t` 10 M O M C IG C M O t` M x x x t\ C V— 69 V3 69 Y3 69 69 V V C V M x x IO 10 N N V O O M V1 O— V ID C O t` x V V N Vl N Vl V C, M V x Vl M x x C\ V M x 01 n rl� ll V O O x V1 M- V C M V V V C\ ID C\ x x ll 69 64 69 64 69 fA — — �D Ic -- �O �O r- r Vl � 69 64 6S 64 Ef-. 4A C n N E _ a y )' � '^ a sue. 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C O � � N y J � i0- 7 N O O 4:3 x r3 n N y n i Y N N '• in, td CIl N G '% It 1 N '� U C7 F co E F U U o7 F M Gf. cli l� M N 01 N N �n O O\ N N M Vl � 6'3 n : . w d � U O Y y U U r✓ CS U .a -o O O m 7 7 N 7 l- 1-0co v- 7 �c N In Ic �O IO 00 x In M O` N D, O1 a1 M O O O It Ir V' M GO 01 M l.0 O\ GC 6S ^ M M V 61, N 41 M N^ 00 M O\ 7 h Crl 00 M N N M M N C N O l� c N O N Ol N O O a, ^ In t� l N N �D Dv In N 'n l� N 01 x N n N ^ -- ^ In N �c N r cr In In '- N Ol .- O\ m V In Q\ N N a1 In In O N G� cG cG GO It GO N Vl M N m A 0 7 7 M v, N N M 6� cc a r- � cl t � N c� r-; o v_ r- cc a co ci cS a; a r- � 0, a �n o v x v n 7 O In cc cc 6v V1 M In Vl N It ^� M O\ � 00 Vl 'O lC O Q\ N N N D �O M M �O CC �t N -- N EA Ef Cl 1� O O 1-1 n It N a ItVl �O CC CO l� Vl V1 V � M M o0 lC l� N 7 01 m -- Y O M N 69 6� m m vl O, r vl yJ 01 N O V' O n^ ^ 69 Ef GO M Ic O In Oo 7 M OM O U1 ' N N �O �O Vl Ir oC O �C V N Co N �O Co Co M �c In 7 Vl l l� N O l� O V1 In Co N N 01 d\ a -- N 'n 01 7 M ^ O• 6S Gf �n ^ Ol Ol CO N 00 00 Vl ^ M O\ C In V1 N M �O n Vt M N In Q` V' C 4� O y F � U y y � 7 z Cam' U¢ Q L U Q�D 0F Table 4 COUNTY OF HAWAVI Changes in Fund Balances, Governmental Funds (Modified accrual basis of accounting) Last Ten Fiscal Years (Amounts in thousands) 2015 2016 2017 201E 2019 2020 2021 2022 2023 2024 Revenues: Property tax 5236,190 $249,054 5266,517 $ 301,699 S 313,631 $ 327,886 S 355,161 $372,701 5441,715 $ 483,004 Public service company tax 10,386 9,801 8,423 7,612 8,494 8,862 8,167 8,011 9,646 10,303 County transient accomodations tax - - - - - - - 12,751 33,911 37,179 Fuel tax 7,633 7,934 8,289 13,342 17,343 20,108 18,763 21,547 21,636 21,708 Public utility franchise tax 10,824 9,004 7,951 8,331 9,442 9,365 8,259 9,141 12,052 1 L590 Licenses and permits 21046 22,432 22,932 24,066 24,653 25,155 24,880 27,337 28,584 28,249 General excise tax surcharge - - - - 12,518 35,538 50,288 63,737 69,549 72,740 Intergovernmental 86,272 85,173 79,220 90,025 101,627 113,632 187,650 118,658 159,710 127,962 Charges fim scnrias 20,357 21,672 21,708 23,553 27,516 30,080 24,846 29,641 32,213 35,044 Investment earnings 716 614 632 1,592 4,148 3,481 557 23 12,095 29,445 Other 9,769 16.132 11,791 4,832 4.643 4,174 3,424 5,584 4,861 5,467 Total Revenues 404.193 421,816 427,463 475,052 524,015 578,281 681,995 669,131 825,972 862,691 Expenditures: Current: General government 40.905 40,488 40,8t9 41,57t 41.900 47,383 47,059 51,008 61,651 t4t,367 Public safety 122,819 127,451 136.163 137,718 145,094 154,921 232,212 163,387 164,544 182.762 Highways and streets 20.984 22,479 20,329 21,40t 27.448 27,962 25,692 38,043 49,626 55,354 Sanitation 31,464 34,015 38,671 39,352 43,815 43,758 45,282 49,928 53,015 58,760 Health, education and welfare 24.540 25,380 30,535 29,876 31,109 30,943 41,391 60,639 103,907 72,339 Culture and recreation 20,056 21,561 21,196 21,324 21022 22,533 22,883 23,964 28,142 32,244 Pension and retirement contributions 38,485 41,359 43,718 49,494 53,137 61,813 70,662 71,593 73,468 80,486 Employees'healthinsurance 27,731 30,112 32,147 33,802 17,522 18,846 20,107 20,239 X580 23,554 Otherpostcmploymcnt benefits 4,532 7,180 11,495 14,831 39,637 41,604 38,191 38,439 42,910 44,136 Other 4,686 3,931 3,839 4,622 4,314 8,742 9,165 9,142 9,820 8,958 Debt sen ice: Principal 21004 22,432 22,032 86,906 X577 29,222 32,605 36,691 38,398 71,120 Interest 13,871 12,974 17,289 17,739 19,223 18,590 18,241 18,728 17,673 21,317 Capital outlay 79398 144,288 111,109 41,924 5L897 79,536 72,439 64,270 104,688 103,995 Total Expenditures 45L375 533,650 529,342 540,560 527,595 585,853 675,929 646,071 768,422 896,392 Revenues over (under) Expenditures (47,182) (111,834) (101,879) (65,508) (3,580) (7,572) 6,066 23,060 57,550 (33,702) Other Financing Sources (Uses): Sale of assets 25 66 21 23 47 10 33 199 24 7 Leases 1,971 3,389 3,769 3,809 6,777 2,822 4.901 19,316 11,702 23,262 State Revolving Fund loans - 7,317 8,130 5,t54 7.439 174 16,187 - 1,024 12,666 Sale ofbonds 130,136 - 107,116 - - 38,106 99,000 - Issuancc of bond anticipation notes (BANs) - - 59,800 - - - - - 28,500 Refunding bonds - 106,254 - 48,784 - - 11,254 - - - Premium on bonds - 23,174 - 5,998 - - 17,745 - 1L879 - Refundingbonds/BANsissuance costs - (508) - (276) - - (333) - (551) Payment to refunded bond escrow agent - (128,920) - (54,537) - - (13,344) - - - Reclass of debt from current to long -terns - - - - - 30,279 - - - Transfers in 59,394 57,412 66,864 75,71t 77,240 90,199 86,482 92,669 132,379 173,378 Transfers out (59,394) (57,412) (66,864) (75,711) (77,240) (90,199) (86,482) (92,669) (132,379) (173,378) Total other financing sources L996 140,908 71,720 116,071 14,263 33,285 74,549 19,515 15L578 35,936 Not change in fund balances S(45.186) $ 29,074 S (30,159) $ 50,563 S 10,683 $ 25,713 S 80,615 $ 42,575 5209,128 $ 2,234 Debt service as a percentage of Recalculated noneapital expenditures 10.3% 10.0% 10.3% 26.4% 11.7% 10.0% 9.1% 10.8% 9.2% 13.5% Unaudited - See accompanying report of independent auditors. - 161 - l- oc 00 Ic -n Ic Ic o o cn co C, In o v o r- oc N IO 'T m �c �T O oo p o0 llO n lzzt� a1 0 In a, v m - �T o m v o rn o 0 0 0 00 ° h N Wn O m 0 0o O l� O O l o0 0o m I N p„ Vl 01 W O, r- O1 CA oo M t O 'o N 00 zt �C O G1 OC °\ O O\ t O oo N �o N cn 74 M •--� •--� •--� N N n •--' •--' •--' 'n N N �o Y �_ Ln Vn Ln V 1 Ln Wn Ln Ln kn Ln kn V Vl kn V i kn Vi ) Vi cC O 00 00 O O N OC .--i .--i O 00 00 O O N 00 .--i .--i a CI 6 C, 6� CZ � FZ u sv l� ul oc r— O 00 IO N 00 l- 4--i m (V O If) m l� m �D 00 V) 01 10 10 N o ° m -� m o m n oo a o 0o rn v cl cv v OA 01 N �D OO r-•s r- '�O oA N �c OO 01 O N l� M -� Z; M r W� C;I V N m O a, Ln Ln o\ O Wn l— 00 kr) �n IN O N l� NID N z I In U U a LnV)W')QILnWnLnLnk U Lnkf)W)W)�111knW)V')Ln � o 0o oo o o N Oo o 00 oo o o N 00 O O N N U N O 00 O 00 Vo N U N O O �O ,-ti 00 N'T U Vi ID 00 11O 00 01 m D A 01 in r- s oo kn N ',I: m 'Z:� n O1 C ": V'1 '1� rf W Cl 0 lO l ; r� k oo Ln m m r` vi a1 o U o 't� c- oo Vn Wn �i v cz m � � a o r- oo o o OC cA oc � C)o 00 kn t �O m t� C l— .O t m p'� .--i OC m m N N N m m. 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L" ,� U u 'D -O 7C O 5 o a o o tQ o o w a o 0 0 ono o w r�r�d'�'U�dU'xd r�u;dxU�dU'xd P. 3 = w .J O Q O � F U 4.1 y � � ' O Y cz d c3 N U ° w �] U O O T T p CO, o U vi ,.a y y F .a Table 6 Taxpayer Business Hilton Resorts Corp. Timeshare Mauna Kea Resort LLC Developer/Hotel Kohanaiki Shores LLC Developer Hualalai Investors LLC Developer/Hotel DHL Mahi Opeo LLC Developer/Hotel Hilton Land Investment 1 LLC Hotel MAPS Orchid Hotel LLC Hotel SMG I Hotel Waikoloa LLC Hotel Hotel/Condo/ Kona Coast Resort Ltd Time Share Raptor Residence LLC Residential Mauna Kea/Hapuna Beach Corps. Developer/Hotel AG-WP Hapuna Tower Owner, LLC Developer Mauna Lani Resort Inc. Developer/Hotel WB KD Acquisition LLC Developer Orchid 09 LLC Hotel Target Corporation Retailer Notes: COUNTY OF HAWAI`I Principal Taxpayers June 30, 2024 and 2015 Fiscal Year 2024 Percentage 2023 of Total Assessed Assessed Valuation Rank Valuation $ 373,565,200 1 0.8% 324,077,900 2 0.7% 285,406,500 3 0.6% 241,029,700 4 0.5% 222,360,200 5 0.5% 170,021,500 6 0.4% 142,409,800 7 0.3% 100,793,200 8 0.2% 87,882,000 9 0.2% 75,309,600 10 0.2% Fiscal Year 2015 Percentage 2014 of Total Assessed Assessed Valuation Rank Valuation $ 65,578,000 9 0.3% 188,907,500 2 0.8% 172,881,600 4 0.7% 208,557,000 1 0.8% 64,747,500 10 0.3% 186,842,000 3 0.7% 95,384,700 6 66,970,200 7 118,298,600 5 66,635,200 8 $2,022,855,600 4.24% $ 1,234,802,300 Note: Gross valuation at January 1, 2024: $ 47,817,494,577 Gross valuation at January 1, 2015: $ 25,198,050,487 Source: County of Hawaii, Department of Finance, Real Property Tax Division Unaudited - See accompanying report of independent auditors. 0.4% 0.3% 0.5% 0.3% 4.9% - 166 - FBI 1`z SC.) I N 01 01 O �O N O O N M M � �n `O M M l- Vl V) C� C, Y kr) O ti �--� y N ti 01 y l� N M M Q� � O U11 � O O O O O O O O O O p Y O Y U O O O O O O a� �� � o0 C� Cr � � U Vl O1 •--i Ol M l� M 00 01 N 00 O Ol O� 01 l0 l� N_ r- lo M � V1 o0 N r- M V � O O o0 IIC O r� U N M M zT \c O o0 N Cl Ln l0 �c l— M O UN N N M M M M M 69 00 00 O� 00 oc M 00 "o OC OC � O OC GD kn 01 kn "o CD V) OV OV o0 kr) V) N �z O M N N C � U ~O Q V'1 Ln �O 00 V, � r--- Ln 69 � �7z; o 0 0 0 0 0 0 0 0 0 C\ O\ r- U\ r- Cl 00 Cl) 00 O. r- a, 00 C� 00 00 C� C;l a U U--� l M 0000 V) r- C1 N O O oo Ln �t O _O u N 00 M O V) AO � � O N M VO �O l� M Cj O r 64 ,--i V) .- Ln 01 Ln l-- o0 M "o ti \D 00 v) o) �t 00 00 G1 "t M Cl �o N ',o o� v oo m 69 oc U H 71 y CG U w U H I d m � 't � C, 't cc N � C, N N N N N N N N d z 000000000 co os m v a O O� o0 v) 00 M O l a, N a, � Vn V) O V) V'i 4 L Q %/ M v') 0 0 0 0 01 l-- V% O 1.0 In mI- M m m Ln O "C N �n fli kn 69 00 OC O 00 "D Q*) 00 cc � NN s9 "" a1 00 O ll- N al m l N O l-- oo l-- M O O Vn DD v' U - ,--� v'� v'� M .--� a1 O �--� _ 41 -i 01 N00 � 00 �O "0 l-- r- N �O os �y N N m m M_ ,--i � O N N W) — M Ln �.n 00 N N N oho l� NO ,�-i V1 Ln � U r- N Ln 01 l- O cr �y w N N m cM M M (n 't Tt sus 01 N1- 00 t— 00 O o0 Vn N o �o p V N m N l� O m 01 � ,--� 00 In00 o0 M m O 01 o0 N in IO l 00 O, O N M't w oc Table 9 COUNTY OF HAWAI`I Ratios of General Bonded Debt Outstanding Last Ten Fiscal Years Debt Percent of Applicable to Net Taxable Fiscal Legal Debt Property Per Year Margin (a) Value (b) Capita (c) 2015 $ 312,632,049 1.2% $ 1,592 2016 362,963,113 1.4% 1,829 2017 405,488,342 1.4% 2,024 2018 414,446,063 1.4% 2,062 2019 425,153,552 1.3% 2,110 2020 315,676,941 0.9% 2,047 2021 416,225,798 1.2% 2,051 2022 385,067,012 1.0% 1,866 2023 451,617,291 1.0% 2,175 2024 424,656,464 0.9% 2,045 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. Details regarding the County's outstanding debt can be found in the notes to the basic financial statements. Unaudited - See accompanying report of independent auditors. - 169 - 0 0 N h 00 Yi 64 � � 0o c w Y EA H7 � C C 7 Q 4 y U 4 r 01 r lC o M m y y N = c) oc oN Cli 't oroIn V] c � U t y oo V) CO o cc M ON Cc cam; V) N S: Q oc 7v y Ic o a rn 71- kl-, m t r O c a cfl 5R y 4 M oc c y N oc oc � Q O N L ON M V V V'1 o0 M :0�+ Y i Eil 64 p � C 'O y r M V ¢ oc d ) O U S cc ON a1 N M � V'1 N � y C y -0 Y Cc N Ic V O M r ,'� c rn N r r w y c N _ M fA ER O � S N b ¢ � ur y oA y y oU y" v a U p 66 h 't 10 00 � 't � c �C-A r r 7 N � w ,O .O. y iC c3 U -O � y � U L"i ryi] ou c`�s C y 'C Ca � a y on y i bA Table 11 COUNTY OF HAWAPI Demographic and Economic Statistics Last Ten Fiscal Years Fiscal *Personal Year *Resident Income Ended Population (thousands June 30, as of July 1 of dollars) 2014 194,190 $ 6,771,329 2015 196,428 $ 7,067,347 2016 198,449 $ 7,618,924 2017 200,381 $ 8,053,011 2018 201,509 $ 8,509,388 2019 202,165 $ 8,602,392 2020 203,340 $ 9,410,824 2021 202,906 $ 10,152,965 2022 206,315 $ 10,207,652 2023 207,615 $ 10,975,814 * Amounts reflect subsequent adjustments *Per Capita Personal School Unemployment Income Enrollment Rate $ 34,870 29,985 6.5% $ 35,979 29,865 5.2% $ 38,392 29,753 4.7% $ 40,188 29,666 3.5% $ 42,228 29,601 3.7% $ 42,551 29,609 4.2% $ 46,281 29,217 13.8% $ 50,038 28,866 6.4% $ 49,476 28,430 4.4% $ 52,866 31,887 3.8% Source: State of Hawaii, Department of Business, Economic Development and Tourism, https://dbedt.hawaii.gov/economic/databook/db202] State of Hawai `i, Department of Business, Economic Development and Tourism, https://dbedt.hawaii.gov/economic/unemployment-statistics Bureau of Economic Analysis, https:Happs.bea.gov/itable/iTable.cfm Unaudited - See accompanying report of independent auditors. - 171 - Table 12 Employer State of Hawaii County of Hawaii United States Government Mauna Kea Beach Hotel KTA Super Stores Kamehameha Schools Hawai'i Island Goodwill Hawaii Island Queen's North Hawaii Community Hospital Roberts Hawaii, Inc (Big Island) Waikoloa Beach Marriot Resort & Spa Four Seasons Resort Hualalai Hilton Waikoloa Village Mauna Lani Resort (Operations), Inc. The Fairmont Orchid, Hawaii Wal-Mart Hapuna Beach Prince Hotel Total Total employee count COUNTY OF HAWAI`I Principal Employers, County of Hawaii June 30, 2024 and 2015 2024 2015 Percentage Percentage of Total County of Total County Employees Rank Employment Employees Rank Employment 17,300 1 23.4% 8,300 1 12.5% 2,800 2 3.8% 2,800 2 4.2% 1,300 3 1.8% 1,300 3 2.0% 1,135 4 1.5% 800 5 1.1% 750 6 1.1% 677 6 0.9% 456 7 0.6% 319 8 0.4% 308 9 0.4% 307 10 0.4% (a) (a) 1,000 4 1.5% 850 5 1.3% 540 9 0.8% 650 7 1.0% 637 8 1.0% 500 10 0.8% 25,402 34.3% 17,327 26.2% 74,058 66,535 NOTES: (a) Exact employee count is unavailable Source: Hawaii Tourism Authority; State Department of Business, Economic Development & Tourism. State of Hawaii, Hawaii Workforce Infonet https://www.hiwi.org/vosnet/gsipub/documentview.aspx United State Department of Labor, Bureau of Labor Statistics: https://www.bls.gov/regions/west/news-release/countyemploymentand wages_hawaii.htm Unaudited - See accompanying report of independent auditors. - 172 - 0 0 0 0 0 0 O� N G O O G V O O O O r O N rt N 0 7 V1 D` r rt 'S 'S M x x V1 O N r' Vr r N O� Q• V 00 lG x x °� l� l� � r m o0 o V Vt �F CA �. ,--i x V � o, N .� •-� � R N ,� N1 O 0 0 c c c 0 0 0 0 O O 0 N m N O, N N R O -F l-- o� r, N O N n ,-, N� � r, o ,-, r ,-, v o v ,-• �o N Vl R M o O x 0° c O 0 o c w o o o x x c o o D o n N M T N v U F v to Ll tp ° c atl ❑❑ CA bA ,a�i u J m w C7UUa�Ui�.'xara�a.w�aw¢'aUa"��H�¢'m�wx¢'� 7 l- ^ r- O, In r- O V 7 V'1 V'� N C l- W a, C v a o o^ o m m N m o 0 0 0 m o o co r- r- a, v m .o v � � o m � In NO r-- CA N ^ oo N 00 oc 't r cl) Vl OG m r) C I I I I 17t t a, N In O C O 't N 01 O oo O t� N N O, O l- a; p N h N O N n m n o0 °_o N ~ ^ m co C a1 W m oc v cq m 000 cV ON1 O oc O MO. 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