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HomeMy WebLinkAboutCOM 0033.000 2000-2002For your review, deliberation, and acceptance. 1 am submitting the post -audit Financial 4udir Report of the Counn ofHawai'i jot the Fiscal Year Ended June 30, 2000, and Management Letter dared October 6, 2000, as prepared by KPMG, LLP The Report and •Management Letter satisfy the requirement of Section 10-13, Hawaii County Charter, relating to the responsibility of the County Council to conduct an annual independent audit of the accounts and other evidences of financial transactions of the County and of every county agency and executive agency This year's Management Lettet contains findings and recommendations related to • General Fund Financial Situation (Deficiency of revenues and other sources over expenditures and other uses, Unreserved fund balance, Debt service and Pension contributions) • Utilization of the Internet • Collection of Receivables of wastewater (sewer) and solid waste (landfill) • Risk Management Process pertaining to worker's compensation claims and the compilation and analvsis of accident statistics • Collection of Building Permit Fees • New Government Reporting Model The auditors will be present at the Finance Committee meeting on January 23, 2001, to answer any questions you may have In the meantime, please feel free to contact Rodney Oshiro should you require further mtormation Enclosures Cc w o enc Ralph Kanetoku, KPMG, LLP Derek Mizuno, KPMG. LLP AL KONISHI DONALD IKEDA t uurn Ch,ADepun 'A.oi•ii�J (-ounn (lerA CONSTANCE R KIRIU Legisiame Udrror OFFICE OF THE COUNTY CLERK ( ounty of Hawai i Hm+ar i Counn Building 25 aupum Street Hdn Hamm r 96-10 Telephone /808) 96/-815 - Fa,,imile (808) 961-89,12 December 11 2000 To Council Members From Connie Kirlu a Legislative Auditor RE Post -Audit Report of the County of Hawaii Fiscal Year Ended June 30 2000 For your review, deliberation, and acceptance. 1 am submitting the post -audit Financial 4udir Report of the Counn ofHawai'i jot the Fiscal Year Ended June 30, 2000, and Management Letter dared October 6, 2000, as prepared by KPMG, LLP The Report and •Management Letter satisfy the requirement of Section 10-13, Hawaii County Charter, relating to the responsibility of the County Council to conduct an annual independent audit of the accounts and other evidences of financial transactions of the County and of every county agency and executive agency This year's Management Lettet contains findings and recommendations related to • General Fund Financial Situation (Deficiency of revenues and other sources over expenditures and other uses, Unreserved fund balance, Debt service and Pension contributions) • Utilization of the Internet • Collection of Receivables of wastewater (sewer) and solid waste (landfill) • Risk Management Process pertaining to worker's compensation claims and the compilation and analvsis of accident statistics • Collection of Building Permit Fees • New Government Reporting Model The auditors will be present at the Finance Committee meeting on January 23, 2001, to answer any questions you may have In the meantime, please feel free to contact Rodney Oshiro should you require further mtormation Enclosures Cc w o enc Ralph Kanetoku, KPMG, LLP Derek Mizuno, KPMG. LLP ALAN S KONISHI Couary Clerk TO Mr. Al Konishi County Clerk OFF/CE OF THE COUNTY CLERK Counrc of Haivau Haman Coun(r Building 15 Aupuu Sueel Hilo Hauau 96710 DONALDIKLDA Uepun Counq Clerk CONST ANCE R KIRIU Le¢idame Auditor DATE December 11, 2000 RE Post Audit Report for Fiscal Year Ending June 30, 2000 Enclosed are copies of the following COPIES DATE DESCRIPf10N 3 June 30, 2000 Financial Audit Report for the Fiscal Year Ended June 30, 2000 O0 For your information and files O Per our conversation ( ) For your signature and return O Per your request ( ) For your signature and forwarding () For your approval as noted below O See "Remarks" below ( ) For your review and comment ( ) For appropnate action S LEGISLATIVE AUDITOR COUNTY OF HAWAII Financial Audit Report for the Fiscal Year Ended June 30, 2000 By of Foreword This financial audit report is the result of the audit of the financial statements of the County of Hawai i. State of Hawaii, for the fiscal year ended June 30, 2000 The audit was conducted by KPMG LLP, certified public accountants The audit was performed in accordance with auditing standards generally accepted to the L nited States of America adopted b% the membership of the American Institute of Certified Public Accountants In addition. the audit was governed by the 'Specifications for a Financial Post -Audit and Systems and Procedures Examination of the County of Hawai'i," issued by our office This report is divided into two sections Section I. 'Compliance and Internal Control Over Financial Reporting." includes the auditors' findings and recommendations based upon their consideration of the C ounn's internal control in connection with their audit of the County's financial statements for the fiscal year ended June 30, 2000 It is our practice to request agencies to submit their comments on the auditors' findmas and recommendations and to indicate what action has been or will be taken Section I1, "Comprehensive Annual Financial Report' for the fiscal year ended June 30. 2000, displays the financial statements and schedules of the County, the auditors' report as to the fairness of presentation of the financial statements and also includes statistical information We wish to express our sincere appreciation for the cooperation and assistance extended b% the management and staff of the various departments during the audit ConstanceR Kinu Legislative Auditor County of Hawaii COUNTY OF HAW AI`1 Financial Audit Report For the Fiscal Year ended June 30. 2000 Table of Contents SECTION I — COMPLIANCE AND INTERNAL CONTROL OVER FINANCIAL REPORTING Report on Compliance and on Internal Control Over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards Management Letter Current Year's Findings and Recommendations Status of Prior Year Findings and Recommendations Comments by the Affected Agencies SECTION II — COMPREHENSIVE ANNUAL FINANCIAL REPORT Introductory Section Financial Section Statistical Sections Page 3 4 13 18 17 127 SECTION I - COMPLIANCE AND INTERNAL CONTROL OVER FINANCIAL REPORTING PC Box/150 Hcro Au. HI 368'2 4150 Report on Compliance and on Internal Control Over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards To the Members of the County Council of Hawaii County of Hawaii Hilo, Hawaii We have audited the general purpose financial statements of the County of Hawaii. State of Haw•at t (County), as of and for the year ended June 30, 2000, and have issued our report thereon dated October 6. 2000 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 Compliance As part of obtaining reasonable assurance about whether the County's general purpose financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grants, noncompliance with which could have a direct and material effect oa the determination of financial statement amounts However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion The results of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards Internal Control Over Financial Reporting In planning and performing our audit, we considered the County's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide assurance on the internal control over financial reporting Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control over financial reporting that might be material weaknesses A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the general purpose financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions We noted no matters mvolvmg the internal control over financial reporting and its operation that we consider to be material weaknesses However, we noted other matters m%otvmg the internal control over financial reporting, which we have reported to management of the County in a separate letter dated October 6 2000 This report is intended solely for the information and use of the Count Administration, the Count Council and federal awarding agencies and is not intended to be and should not be used by anyone other than these specified parties Honolulu, Haw•ai`i October 6, 2000 "I"� 70 �Oa 4151 �ogob_ J -11 96812 L150 October 6, 2000 PRIVATE & CONFIDENTIAL To the Members of the County Council of Hawaii County of Hawaii Hilo. Hawaii We have audited the general purpose financial statements of the County of Hawaii, State of Hawaii (County), for the year ended June 30, 2000 and have issued our report thereon dated October 6, 2000 We have also audited the County's compliance with requirements applicable to its federal financial assistance programs and have issued our report thereon dated October 6, 2000 In planning and performing our audit of the general purpose financial statements of the County, we considered internal control in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide assurance on the internal control over financial reporting We have not considered internal control since the date of our report During our audit, we noted certain matters involving internal control over financial reporting and other operational matters that are presented for your consideration These comments and recommendations, all of which have been discussed with the appropriate members of management, are intended to improve internal control or result in other operating efficiencies We have also reviewed the disposition of the recommendations made in the previous year's report dated October 15. 1999 The status of prior year findings and recommendations is also presented A number of recommendations were adopted as suggested or in modified form Other recommendations were not implemented and those which we felt merited reconsideration have been modified where necessary and restated in the current year's findings and recommendations section Our audit procedures are designed primarily to enable us to form an opinion on the general purpose financial statements and therefore may not bring to light all weaknesses in internal control policies or procedures that may exist We aim, however, to use our knowledge of the County's organization gained during our work to make comments and suggestions that we hope will be useful to you This report is intended solely for the information and use of the County Administration and the County Council and is not intended to be and should not be used by anyone other than these specified parties We would like to take this opportunity to express our appreciation for the courtesy and assistance extended to us by the personnel of the County of Hawai'i during the course of our audit Should you wish to discuss any of the matters contained herein, we will be pleased to meet with you at your convenience Very trul) yours, K`pwtG ri-P 3 COUNTY OF HAWAII STATE OF HAWAII Current Year's Findings and Recommendations June 30, 2000 GENERAL FUND FINANCIAL SITUATION Over the past four years, the general fund has incurred substantial deficiencies of revenues and other sources over expenditures and other uses As a result, the County's unreserved general fund balance has decreased from $21 2 million in 1997 to $16 1 million in 2000 Fiscal year 1997 1998 1999 2000 Deficiency of revenues and other sources over expenditures and other uses $ 1,822,980 4,933,844 4,003,978 5,730,207 Unreserved fund balance 21,174.450 16,91 1,530 12,933,610 16,100,985 Fhe unreserved fund balance increased in fiscal year 2000, despite a $5 7 million deficiency of revenues and other sources over expenditures and other uses, because of an offsetting one-time transfer to the general fund from the debt service fund of $8 7 million related to the 1978 Sinking Fund These funds became available to fund the County's operations when the 1978 refunding bonds were refunded We noted that debt service and contributions to the Employees' Retirement System of the State of Hawaii (Retirement System) are expected to increase significantly after 2001 primarily due to the issuance of $30 million in general obligation bonds for capital improvements in 2000 and changes in the determination of the pension contributions Pension Fiscal year Debt service contributions 1999 2000 2001 2002 $ 15,274,784 16,382,259 17,154,953 17,140,179 6,490,200 2,105,000 129,000 7,434,500 Additionally, the County Council has authorized $9 8 million in general obligations bonds which will further increase future debt service requirements upon issuance Future debt service requirements on these general obligation bonds are not included in the previous table 4 (Continued) COUNTY OF HAWAII STATE OF HAWAVI Current Year's Findings and Recommendations June 30 2000 We noted that the trend in the deficiency of revenues and other sources over expenditures and other uses and the unreserved fund balance of the general fund is comparable to trends experienced by the counties of Maui and Kauai In addition, the County's ratio of debt to real property tax assessed values and the ratio of annual debt service to total general government expenditures were comparable to the City & County of Honolulu and the counties of Maui and Kauai The County administration is aware of the general fund financial situation and is formulating plans to address this matter Recommendation We recommend that the County administration and County Council work together to assess the County's present financial position and develop budgets to address future general fund financial performance UTILIZATION OF THE INTERNET The County's internet website presently provides basic County information In comparison, the City & County of Honolulu and the County of Maui's websites provide on-line functionality (forms and applications) and more information and utilize links to other sites that provide additional, useful, and detailed information Furthermore, the City & County of Honolulu has adopted business strategies that focus on electronic commerce initiatives such as on-line payments for services (i e , permits and motor vehicle registration) with no direct cost to the City & County of Honolulu Development of a more functional and interactive website and implementation of electronic commerce initiatives would produce the following benefits to the County and its residents • Automation of routine, high-volume transactions and business processes. • Easier and more expedient access to governmental services and forms and processing of transactions. • Dissemination of information regarding County issues. actions and other community events, • Dissemination of information to promote tourism and business development, • Promotion of County services and Council members, and • Increased consumer confidence in governmental affairs and services The County is in the process of implementing a real property tax information system that will include an internet component that will allow individuals to access ownership and assessment information Additionally, the County is partnering with the Counties of Maui and Kauai and the State of Hawaii in the development and implementation of electronic commerce initiatives Recommendation We recommend that the County develop a more functional and interactive website and continue to investigate electronic commerce options We also recommend that the County consider reviewing other governmental agencies' and private businesses' websites to provide additional ideas and information (Continued) COUNTY OF HAWAPI STATE OF HAWAII Current Year's Findings and Recommendations June 30, 2000 COLLECTION OF RECEIVABLES Timely collection of wastewater (sewer) and solid waste (landfill) receivables continues to be a problem for the Department of Public Works Sewer and landfill receivables outstanding for more than 90 days account for a significant portion of the respective receivable balances as follows Sewer. Current 31 - 60 days 61 - 90 days 90 + days 90 — days 44% 2000 Amount Percentage of onNtandinv total S 572,347 139,734 73,742 615.061 S 1,400,884 61 -90 days 31 -60 days a% 10% Cunene 41:. 1999 Amount Percentage of outstnndmv total 41% 524,356 42% 10% 142,380 12% 5% 70,910 6% 44% 495,906 40% 100°0 1233.552 100% 90 — das e 40% 61 40 days 6% 31 - 60 days 1?9, Current 42% 6 (Continued) Landfill - Current 31 - 60 days 61 - 90 days 90 - days 90 + days 50% COUNTY OF HAWAII STATE OF HAWAII Current Year's Findings and Recommendations June 30, 2000 Amount Percentage of outstandmo total $ 266,497 204,096 57,950 523,484 S 1.052,027 61 - 90 days 6% 1999 Amount Percentage of outstandmn total 25% 328,289 27% 19% 183,461 15% 6% 179,264 14% 50% 539,699 44% 100% 1,230,713 100% - 60 days 199, 90 + dav- 44% 61 - 90 days 14% rent 60 days 15% The Department of Public Works utilizes a collection agency to pursue delinquent accounts < $1 000 As of June 30, 2000, the Department of Public Works has 523 sewer accounts amounting to approximately $153,000 and 407 landfill accounts amounting to approximately $28,000 with the collection agency The current agreement with the collection agency dictates that the Department of Public Works receive 67% and 73% of all collections on sewer and landfill receivables, respectively, made by the collection agency The Department of Public Works compiles certain information pertaining to transactions with the collection agency However, no data is compiled to monitor and evaluate the effectiveness of the agency's collection efforts The landfill receivable delinquency problem can also be attributed to the Department of Public Works' credit extension policies We again noted that the Solid Waste Division of the Department of Public Works extends credit to all citizens and businesses regardless of credit history Landfill use 1s only refused when an outstanding receivable balance exceeds 90 days 7 (Continued) COUNTY OF HAWAII STATE OF HAWAII Current Year's Findings and Recommendations June 30. 2000 Recommendation We recommend that Department of Public Works' management perform the following procedures to monitor and evaluate the results of the collection agency's activities as reported by the agency I Periodic comparison of the ratio of actual collections by the collection agency, as a percentage of total accounts turned over to the agency 2 Periodic comparison of the ratio of accounts that will not be collectible, as a percentage of total accounts turned over to the collection agency Based on management's desired results for the collection of delinquent accounts, the Department of Public Works should establish benchmarks for collections and evaluate the effectiveness of the collection agency's efforts relative to those benchmarks In addition, the County should consider extending credit to landfill users only upon satisfactory credit history reviews Until satisfactory credit approvals are obtained, landfill users should be required to pay cash at the time of use RISK MANAGEMENT PROCESS Workers' Compensation Claims Process During our review of the risk management process, we noted that the Corporation Counsel attorney working in the Workers' Compensation Unit of the Division of Industrial Safety (Workers' Compensation Unit) is solely responsible for the negotiation of workers' compensation claims' settlement agreements We again noted that the majority of claims are not subject to supervisory or third party reviews to validate that the negotiated settlements are reasonable relative to the type and extent of injuries and comparable to industry guidelines Reviews of the settlement agreements by supervisory personnel with experience in handling workers' compensation claims or by independent claims adjusters provide additional assurance that the County is settling workers' compensation claims in a manner consistent with industry standards and in the best interest of the County During fiscal year ended June 30, 2000, County employees filed 229 workers' compensation claims and the County paid approximately $2.655.000 in claims In addition, the workers' compensation claims liability amounted to $7,257,826 at June 30, 2000 Information regarding the number and amount of workers' compensation settlements during the fiscal year is not compiled by the Workers' Compensation Unit We noted no instances of improper settlement agreements during our testwork 8 (Continued) COUNTY OF HAWAII STATE OF HAWAII Current Year's Findings and Recommendations June 30, 1.000 Recommendation We again recommend that the County consider the benefit of hiring additional personnel with experience in handling workers' compensation claims and/or contracting independent claims adjusters to perform periodic workers' compensation claims reviews or reviews of settlements over a stipulated monetary threshold The potential savings to the County in the form of a reduction in the number of claims or settlement amounts may outweigh the additional costs of such procedures Compilation and Analysts of Accident Statistics The County is self-insured for workers' compensation and general liability Therefore, it is imperative that the County pay special attention to safety conditions in the work place Continuous improvement of the safety conditions improves employee morale and reduces workers' compensation and general liability claims In the prior year and during our review of the risk management process, we noted that the Division of Industrial Safety does not compile and/or analyze statistics on the type, frequency and amount of claims relating to personal injury and property damage This statistical information and appropriate analyses could be useful in identifying hazardous work place conditions and locations, and types of recurring accidents, which could lead to the formulation of policies and procedures to mitigate these situations Based on discussions with the Division of Industrial Safety employees, such information is not compiled because, due to the lack of resources throughout the County, accident information is not received from the departments on a consistent and timely basis Recommendation We again recommend that the Division of Industrial Safety obtain from the departments timely information on workplace accidents, especially those departments that have historically experienced a high rate of workplace accidents The information should include a description of the accident. the number of each type of accident, the total estimated damages for each accident, and the total amount of lost man hours associated with the accident Furthermore, the Division of Industrial Safety should analyze those statistics, and with the assistance of the affected departments, formulate policies and procedures to mitigate these situations This will focus the efforts of the County on addressing the specific types and locations of recurring accidents, to reduce the occurrence of accidents and claims against the County A reduction in claims would allow the County to use funds, previously used for claim settlements, for other County programs and needs 9 (Continued) COUNTYOF HAWAII STATE OF HAWAII Current Year's Findings and Recommendations June 30, 2000 COLLECTION OF BUILDING PERMIT FEES During our review of the internal controls over the collection of building permit fees at the Hdo and Kona sites, we noted that there is a lack of adequate segregation of duties over permit fee receipts at the Building Division of the Department of Public Works (Building Division) The same permit clerk can collect both the cash and application form, issue the permit (which is not pre -numbered), and record the transaction in the County's computer system At the end of the day, the supervisor reconciles the cash and permit applications Effective internal controls require that the duties of receiving and recording cash transactions be segregated As a result, permit clerks could potentially remove the cash and permit application and issue permits with duplicate or without numbers The permit clerks could then pocket the cash receipts and file the application form without informing the supervisor The applicant would not be concerned as he/she received a valid permit Furthermore, the supervisor would not be able to detect the missing cash receipts as only the cash and permit applications, which are both missing, are reconciled Permit fees for the fiscal year ended June 30, 2000 amounted to approximately $1,106,000 Recommendation We again recommend that the County consider segregating the cash collection, permit issuance and recording functions at the Building Division One permit clerk should collect the cash and another clerk should collect the application and issue the permit At the end of the day, the cash receipts, permit applications and permits should be reconciled by the supervisor If this is not feasible, the division should consider using pre -numbered permits and reconcile the cash and applications with the permits issued The sequential listing of the permit numbers should also be verified Alternatively, the County may consider moving the cash collection function to the Treasury Division of the Department of Finance NEW GOVERNMENT REPORTING MODEL Changes in the Government Reporting Model After years of study and consideration of the needs of users of government financial statements, the Governmental Accounting Standards Board (GASB) issued its revolutionary new reporting model in June 2000 The new model dramatically changes the presentation of governments' external financial statements In the GASB's view, the objective of the new model is to enhance the clarity and usefulness of government financial statements to the citizenry, oversight bodies, investors and creditors It will substantially affect the County's financial data accumulation and financial statement presentation processes Some of the key aspects of the changes follow Management s Discussion and Analysis OND&A/ — A comprehensive MD&A will now be included as required supplementary information The MD&A will introduce the financial statements by presenting an analysis of the government's financial performance for the year and its financial position at year-end The 41D&A will be in addition to the transmittal letter currently required for Government Finance Officers Association (GFOA) award candidates, such as the County, but we expect that the 10 (Continued) COUNTY OF HAWAII STATE OF HAWAII Current Year s Findings and Recommendations June 30, 2000 GFOA will make changes in their requirements so as to avoid any duplication between the two documents Government -Wide Reporting — The County will be required to report financial operations and net assets, not only at the fund perspective for governmental activities, but will also have to prepare statements at the government -wide level This level will distinguish between government and business type activities All information at the government -wide level will be reported using the economic resources measurement focus and accrual basis of accounting, as enterprise funds do under the current model Fiduciary activities will be excluded from the government -wide level of reporting General government fixed assets, including infrastructure, and long term liabilities of the government will need to be reported with all other governmental assets and liabilities Statement oJActrvities — Governments will now be required to use a "net program cost' format for the government -wide statements instead of a traditional operating statement This new format groups revenues and expenses by functional categories (such as public safety, public works, etc ) The purpose of the new statement is to inform readers about the cost of specific functions and the extent to which they are financed with program revenues or general revenues of the government Governments will have the option of reporting both direct and indirect program costs Depreciation expense will now generally be reflected as a cost in the statement of activities Infrastructure Reporting — Historically, the County has not been required to record infrastructure assets in its financial statements Under the new standard, the County must report major general infrastructure assets that were acquired in fiscal years ending after June 30, 1980, or that received major renovation, restorations, or improvements during that period The standard provides several alternatives for determining historical cost of infrastructure assets Although the standard generally requires depreciation of infrastructure assets, the County may not be required to depreciate these assets if it can demonstrate that it is preserving its infrastructure at approximately (or above) a disclosed condition level established by the County Fund Level Reporting — Fund level financial statements will still be required and will provide information about the County's fund types, including fiduciary funds General capital assets and general long-term liabilities will only be reported at the government -wide level Fund level reporting will continue to focus on fiscal accountability and reflect the flows and balances of current financial resources The modified accrual basis of accounting will continue to be used at the fund level, except for proprietary and fiduciary funds which would continue reporting based on economic resources and the accrual method of accounting A reconciliation between the fund and the government -wide statements will be required on the face of the fund statements Finally, proprietary fund cash flows statements must be presented using the direct method II (Continued) COUNTY OF HAW4P1 STATE OF HAWAPI Current Year Findings and Recommendations June 30, 2000 Presentation of Budgetary Information — The standard requires budgetary statements for the general fund and certain other governmental funds as required supplementary information The original adopted budget of the County as well as the final revised budget must be presented Actual results on a budgetary basis will need to be reconciled to the GAAP (generally accepted accounting principles) basis on the face of the statements The effective date of the new pronouncement will require implementation by the County for its year ending June 30, 2002 However, we were informed that the County plans to implement the new pronouncement for the fiscal year ending June 30, 2001 We noted that the Accounts Division of the Department of Finance has made significant progress in compiling the required information and preparing for the new pronouncement We recommend that County personnel continue with their efforts in implementing the new pronouncement 12 COUNTY OF H4WAI'I STATE OF HAWAII Status of Prior Year Findings and Recommendations June 30, 2000 PROCUREMENT POLICIES AND PROCEDURES Purchases under 5400 Observation The County's procurement policies and procedures for purchases under $400 are time-consuming and inefficient Recommendation The County should consider the benefit of changing procurement policies and procedures to allow for the issuance of credit or debit cards to certain individuals within each department for purchases under $400 Status The Purchasing Division of the Department of Finance is currently awaiting the results of the City & Counn of Honolulu's efforts to procure a vendor to establish and maintain a credit or debit card system The County will utilize the information from the City & County of Honolulu's procurement to assist it in procuring and implementing its own system The County plans to complete implementation in fiscal year 2001 In the meantime, the County now issues blanket purchase orders that the agencies can use to accumulate purchases under $400 Invoices from the same vendor are combined and are paid once or twice a month Comment is no longer applicable Web -Based Electronic Procurement System Observation The County does not utilize a web -based electronic procurement system that would provide such benefits as access to a broad spectrum of suppliers, the ability to compare a wide -range of vendors' offers before making a purchase, a streamlined workflow (i e , manual tasks are automated), and reduced cycle times (i e , the waiting period for return phone calls, faxes, or postal service is eliminated) Recommendation The County should consider the feasibility of deploying a web -based electronic procurement system for the procurement of certain goods Status The County is currently in the process of establishing a credit or debit card system for small purchases After the system is in place, the County will experiment with procuring goods and services over the internet and examine the advantages and disadvantages of web -based procurement As the County has established a plan to examine the benefits and costs of a web -based electronic procurement system, the comment is no longer applicable 13 (Continued) COUNTY OF HAWAY1 STATE OF HAWAVI Status of Prior Year Findings and Recommendations June 30, 2000 RISK MANAGEMENT PROCESS Iflorkers 'Compensation Claims Process Observation The Corporation Counsel attomey working in the Workers' Compensation Unit of the Division of Industrial Safety is solely responsible for the negotiation of workers' compensation claims' settlement agreements There are no supervisory or third party reviews to validate that the negotiated settlements are reasonable relative to the type and extent of injuries and comparable to industry guidelines Recommendation The County should consider the benefit of (1) hiring additional personnel with relevant experience, (2) contracting independent claims adjusters to perform periodic workers' compensation claims reviews or reviews of settlements over a stipulated monetary threshold and/or (3) placing responsibility for review and approval of settlements over a stipulated monetary threshold with the County Council Status Comment is still applicable Refer to the current year finding and recommendation Compilation and Anal sis oJAccident Statistics Observation The County's Division of Industrial Safety does not compile and/or analyze statistics on the type, frequency and amount of claims relating to personal injury and property damage Recommendation The Division of Industrial Safety should consider compiling statistics on the number and type of accidents, analyzing those statistics and with the assistance of the affected departments, formulate policies and procedures to mitigate these situations Status Comment is still applicable Refer to the current year finding and recommendation 14 (Continued) COUNTY OF HAWAII STATE OF HAWAII Status of Prior Year Findings and Recommendations June 30, 2000 COLLECTION OF RECEIVABLES Observation Wastewater (sewer) and solid waste (landfill) receivables outstanding for more than 90 days account for a significant portion of the respective receivable balances The Department of Public Works utilizes a collection agency to pursue delinquent accounts less than $1,000 However, no data is compiled to monitor and evaluate the effectiveness of the collection agency's collection efforts Additionally, the Solid Waste Division of the Department of Public Works extends credit to all citizens and businesses regardless of credit history Recommendation The Department of Public Works' management should perform the following procedures to monitor and evaluate the results of the collection agency's activities as reported by the agency I Periodic comparison of the ratio of actual collections by the collection agency, as a percentage of total accounts turned over to the agency 2 Periodic comparison of the ratio of accounts that will not be collectible, as a percentage of total accounts turned over to the collection agency 3 Reconciliation of the recovery percentages to the total of those sewer and landfill accounts recovered when initially turned over to the collection agency The Department of Public Works should also consider establishing benchmarks for collections and evaluating the effectiveness of the collection agencies efforts relative to those benchmarks In addition, the County should consider extending credit to landfill users only upon satisfactory credit history reviews Status Reconciliation of the recovery percentages to the total of those sewer and landfill accounts recovered when initially turned over to the collection agency are being performed Refer to the current year finding and comment on sewer and landfill receivables outstanding over 90 days, monitoring and evaluating the effectiveness of the collection agency's efforts, establishment of benchmarks and credit extension policies at the landfill 15 (Continued) COUNTY OF HAWAII STATE OF HAWAII Status of Prior Year Findings and Recommendations June 30, 2000 INTERNAL CONTROLS — CASH COLLECTIONS Collection of Hilo :Municipal Golf Course Green Fees Observation There is a lack of segregation of duties over the receipt of golf course green and cart fees at the Hilo Municipal Golf Course The cashier performs both the cash collection and starter functions Recommendation The County should segregate the cash collection and starter function at the Hilo Municipal Golf Course Status The County has determined that it is not feasible to separate the starter and cashier functions As a mitigating control, the County has posted signs indicating that green and cart fee receipts are required to play Further, the marshal randomly checks golfers to ensure that they have receipts Comment is no longer applicable Collection of Building Division Permit Fees Observation There is a lack of segregation of duties over permit fee receipts at the Building Division of the Department of Public Works (Building Division) The same permit clerk can collect both the cash and building permit application form, issue the permit (which is not pre -numbered), and record the transaction in the County's computer system Effective internal controls require that the duties of receiving and recording cash transactions be segregated As a result, permit clerks are able to remove the cash and permit application and issue permits with duplicate or without numbers Recommendation The County should segregate the cash collection, permit issuance, and recording functions al the Building Division Pre -numbered applications should also be considered Status Comment is still applicable Refer to the current year finding and recommendation 16 (Continued) COUNTY OF HAWAII STATE OF HAWAII Status of Prior Year Findings and Recommendations June 30, 2000 LONG-RANGE STRATEGIC INFORMATION SYSTEMS PLAN Observation The County's original Long -Range Strategic Information Systems Plan which was developed to 1991 is obsolete and needs to be updated Recommendation The County should update its Long -Range Strategic Information Systems Plan Status The Department of Data Systems completed an information systems review, identified existing computer applications and established short and long-term goals Comment is no longer applicable NEW GOVERNMENT REPORTING MODEL Observation The Governmental Accounting Standards Board (GASB) issued a revolutionary new reporting model in June 1999 that dramatically changes the presentation of governments external financial statements It will substantially affect the County's financial data accumulation and financial statement presentation processes Recommendation The County should begin to look at its systems and processes to ensure that the required information will be available to ensure timely implementation of the new standard Furthermore, the County should consider the cost of required changes to its systems and processes to ensure availability of necessary funds in its upcoming budget Status The County plans to implement the new reporting model for the fiscal year ended June 30, 2001 The Accounts Division of the Department of Finance has made significant progress in compiling the required information and preparing for the new pronouncement However, additional work still remains Comment is still applicable Refer to the current year finding and recommendation 17 Stephen K Yantashiro Wayor Dime Kaetsu Dvecior Frank V Manallh DeH,m Countp of'abnail DEPARTMENT OF FINANCE o r 25 4upum'weel, Room 118 • Hilo Hawai , 96720-4252 O r, .1 (808)961-8234 • F&xl8081961 8248 CD - T C November 3, 2000 a To Connie Kiriu, Legislative Auditor N From Dixie Kaetsu, Director of FinanceQw,� Re Response to Preliminary Draft Management Letter Thank you for the opportunity to comment on the draft of the management letter from KPMG Genera! Fund Financia! Situation The administration is very aware of the County's financial situation As pointed out by KPMG, our situation is not unique The states economic problems in recent years have hurt all of the counties We intend to work with the Countv Count,il to ensure the County s continued financial health ;New Government Reporting Mode! The administration is well aware of the requirements of the new reporting model We have been working on preliminary steps to implementation over the last year, including identifying and assigning costs to the County's infrastructure assets and planning for asset deprecation We are now evaluating an asset management and inventory software package that will proNide the necessary information to comply with asset reporting requirements As noted by KPMG, it is the County's intent to implement the new pronouncement for the fiscal year ending June J0, 2001, which is a year earlier than the mandated deadline Stephen K Yamashiro Mayor DATE: TO: FROM: County of Hawaii DEPARTMENT OF DATA SYSTEMS 25 Aupum Street, Room 102 • Hilo, Hawau 967204252 (808) 961-8207 • Fax (808) 961-8453 November 9, 2000 Connie Mnu, Legislative Auditor G A Rock, Data Systems Director . ILL/ SUBJECT: Response to Preliminary Draft Management Letter UTILIZATION OF THE INTERNET G.A Rock Data System Dnarnr 0fm We do agree with the auditor recommendations to continually adding material and enhance the County's Internet website There is no end to the amount of information that can be put on the Internet as we enter the era of "electronic government" Staff time and resources devoted toward our website have increased and more information has been added as time permits For example, in the past year, the following additional content areas were been added ✓ Real Property auction sale information ✓ Charter Commission ballot questions, digest, and amendments ✓ League of Women voter information pamphlet ✓ General Plan revision ✓ Corporation Counsel formal opinions (from 1998 Opinion #5 forward) ✓ County Code (the entire text as of October 1999) ✓ County Council meeting agendas/actions taken (from January 2000 forward) ✓ Index listing of Council bills, ordinances, resolutions (from 1998 forward) ✓ P&R camping permit form ✓ P&R aquatics program guide -2 - Our plans call for adding the following new website pages dunng the current fiscal year to provide additional information about County government operations and services to the public ✓ Finance Department Comprehensive Annual Financial Report ✓ Housing Agency general information and forms ✓ Information & Complaints Office news releases ✓ Handicapped parking permit forms ✓ Immigration Office general information ✓ Liquor rules & regulations, licensing procedures, forms ✓ Planning Department rules, procedures, and forms ✓ Purchasing Bid Specifications and results ✓ Real Property general information and forms Placing this material on the County's website is in line with the enhancements suggested by the auditors to promote government services and disseminate information to the public Of special note, the auditors discussed the need to utilize the website to promote tounsm and business development Actually, we do have a substantial amount of material on the website in this area For example • The entire Hawaii County Data Book is on the site This contains comprehensive social, economic, and demograpluc data about the Big Island in the form of statistical tables and maps R&D Department publishes this annually It is one of the mayor information sources provided to interested parties to promote economic development • County Annual Reports going back to 1995 are on the website These provide extensive insight into County government operations and services • We now have an extensive 3 -year history of building permit information online • There is a link to our County Film Office website This excellent site has been up for several years to promote and facilitate use of the Big Island by the film industry for commercials, movies, television, and photo shoots • There is a link to the County Big Island Agriculture website that promotes the agriculture industry by providing substantial information and resource contacts for all agricultural products grown on the Big Island. • We also recently added links to numerous other the tounst and economic development sites for Hawaii 3 - Based upon the auditor suggestions, we also recently redesigned our home page and set up a separate link especially for promoting tourism and business development This will guide the Internet user to a special page that has all the economic development related information in one place We also substantially increased the number of tourism and business development links to other websites As noted by the auditors, we are currently pursuing implementation of special projects under the state's Access Hawaii "electronic commerce" master project This will enable citizens to obtain more information and to conduct business with the County of Hawaii via the Internet For example, obtaining and paying for camping permits on the Internet should be implemented this year In addition, the auditors noted that the new Real Property Tax System being installed this year has an interactive inquiry feature that will be available to the public via the Internet. We agree with the recommendation of keeping an eye on other government websites as a source of ideas We recently took a closer look at other jurisdictions in Hawaii for additional ideas and information We found that no two sites are identical. While Hawaii County's website may have less material in some areas, it has more in other areas One feature that we saw and do plan to install in the future is a "general search" capability for our website that will permit easter location of material In the future, we will be continually adding more content as our website evolves We hope to increase staff time devoted to the Internet area As with other project work undertaken by Data Systems Department, however, we must balance staff time and resources with all of the priorities and demands that must be addressed COUNTY OF HAWAII DEPARTMENT OF PUBLIC WORKS 25 AUPUNI STREET ROOM 202 HILO HI 96720-4245 TELEPHONE (808) 961-832' FAx 808) 961-8630 MEMORANDUM DATE November 14, 2000 TO. Connie Kinu, Legislative Auditor C3 i C=) -_ THRU. Robert K Yanabu, Chief Engineer -- L cn — - FROM: Leslie Botelho, Solid Waste Division RE Preliminary Draft Financial Audi; Report for the County of Hawaii FisLal Year Ended June 30, 2000 The Solid Waste Division is reviewing the performance of the Frank Huff Collection Agency They have collected on ninety-one of the four hundred seven accounts referred to them The Solid Waste staff manages the accounts of customers who are on payment plans, but there is not adequate staff to work collections on all accounts We were unable to implement cash collection at the landfills this year Until we are able to collect cash or establish an alternative payment system we will not be able to restrict credit accounts to those with satisfactory credit histories COUNTY OF HAWAII DEPARTMENT OF PUBLIC WORKS 25 AUPUNI STREET, ROOM 202 HILO HI 96720-4245 TELEPHONE (808) 961-8321 FAX (808) 961-8630 MEMORANDUM DATE TO THRU. FROM - RE November 14. 2000 Connie Kinu Legislative Auditor Robert K Yanabu Chief Engineer Nancy Crawford Vz� Business Manager 0 CD m z c, 0 t c.n C4 c= C=) P D3 Preliminary Draft Financial Audit Report for the County of Hawaii Fiscal Year Ended June 30, 2000 Recommendation Monitor and evaluate the results of collection agency activities and establish benchmarks to assess the effectiveness of the agency Response Wastewater and Solid Waste Divisions have reviewed the data to evaluate the collections and non -collectable values as a percentage of total accounts turned over to the collection agency The Department has not established benchmarks for evaluation purposes The collection agency was the only respondent to the last Request for Proposals for collection service Their collection rate is higher than in-house collections Recommendation Review credit history before extending credit to landfill users and require payment at time of use for those without credit Response The Department is committed to establishing guidelines for credit applications and requiring payment at time of use Personne: turnover interrupted the further implementation of cash collection at the landfills. but it will be pursued WASTEWATER DIVISION DEPARTMENT OF PUBLIC WORKS MAILING ADDRESS 25 AUPUNI STREET, RM 202 108 RAILROAD AVENUE -HILA, HAWAII %:20 HILO, HAWAII %7204252 (808) %1-8338 - FAX (808) %1-0614 M 310 AND UM: C=) o r - M DATE: NOVEMBER 13, 2000 =T TO: CONNIE KEUU, LEGISLATIVE AUDITOR CJ1 THRU: ROBERT YANABU, CHIEF ENGINEER C.3 FROM: PETER BOUCHER, WASTEWATER DIV ISI i� o �- SUBJECT: RESPONSE TO PRELIMINARY DRAFT MANAGEMENT LETTER- w FISCAL YEAR END JUNE 30, 2000 Collection of Receivables — Wastewater Division We have reviewed the recommendations to monitor and evaluate the results of the collection agency's activities. The collection agency is already providing statistical data, which we will review and confirm Efforts will be continued to monitor and evaluate the effectiveness of the collection agency's efforts relative to the benchmarks established by the Department of Public Works COUNTY OF HAWAII DEPARTMENT OF PUBLIC WORKS 25 AUPUNI STREET, ROOM 202 HILO HI 96720-4245 TELEPHONE (808) 961-8321 FAX (808) 961-8630 RE: Preliminary Draft Financial Audit Report for the County of Hawaii Fiscal Year Ended June 30, 2000 There are currently internal checks and balances which make it virtually impossible to issue a permit without a number or with duplicate numbers Permits cannot be issued without a number since the inspectors must log in all inspections by referencing the permit number The Budding Division operates on a " called inspection " system where the applicant is required to provide the permit number at the time of request If there is no permit number no inspection will be made When permits are issued the numbers are recorded in the computer When a permit number is called up on the computer the screen will display the tax map parcel number and other pertinent data associated with that permit number If a number has already been issued any attempt to reuse a number either by mistake or deliberately will activate an error message on the computer screen Before the end of each work day the permit clerks run a tally of collections and permits issued for that day One clerk will run a physical cash count and the second clerk will run a computer tally Both clerks operate independently of each other and both clerks must end up with the same total If the auditors feel that these measures are inadequate then funding should be provided in the Budding Division for 2 additional staff (one for each side of the island) whose primary function would be the collection of fees However, as stated in the auditor's report the collection of fees by the Treasury Division provides the most fool proof system CD MEMORANDUM CD 'Zn Ll DATE November 13, 2000 z Ca .. o= rn TO: Connie Kinu, Legislative Auditor m :wo THRU. Robert K Yanabu, Chief Engineer *—,� FROM: Stanley Takemura, Building Division RE: Preliminary Draft Financial Audit Report for the County of Hawaii Fiscal Year Ended June 30, 2000 There are currently internal checks and balances which make it virtually impossible to issue a permit without a number or with duplicate numbers Permits cannot be issued without a number since the inspectors must log in all inspections by referencing the permit number The Budding Division operates on a " called inspection " system where the applicant is required to provide the permit number at the time of request If there is no permit number no inspection will be made When permits are issued the numbers are recorded in the computer When a permit number is called up on the computer the screen will display the tax map parcel number and other pertinent data associated with that permit number If a number has already been issued any attempt to reuse a number either by mistake or deliberately will activate an error message on the computer screen Before the end of each work day the permit clerks run a tally of collections and permits issued for that day One clerk will run a physical cash count and the second clerk will run a computer tally Both clerks operate independently of each other and both clerks must end up with the same total If the auditors feel that these measures are inadequate then funding should be provided in the Budding Division for 2 additional staff (one for each side of the island) whose primary function would be the collection of fees However, as stated in the auditor's report the collection of fees by the Treasury Division provides the most fool proof system Memo 0 �o 0 C.7 T To Connie Kinu = �� Legislative Auditor 0 m ca 0 From Jay Sasan ^' Safety Coordinator Subject Preliminary Draft Management Letter November 1, 2000 Date November 3, 2000 Additional Personnel — Workers' Compensation Please fine attached responses dated 11/23/99 and a copy of Lester J Ishado's memo to Dixie Kaetsu dated October 9, 2000 The recommendations KPMG Peat Marwick have been considered Funding for positions and lack of response from some of the departments have been some of the obstacles Compilation and Analysis of Accident Statistics When KPMG first brought this to our attention, part of the problem in getting timely data was attributable to the fact that the computer program was being upgraded form the Comp 2000 program to the Renaissance program Implementation of the program is being completed therefore statistics covering Workers' Compensation accidents are now available in the format suggested Departments can make a request for these Other incident type and non- workers' compensation still need to be handled by the individual departments, which is more timely and effective in accident prevention programs Comments made earlier are still pertinent Si�-p! en K. Yamashiro Mawr Gunfg of 21fUztii DIVISION OF INDUSTRIAL SAFETY Workers' Compensation Unit 35 Wa11uku Dnve • Hllu Ilam, 9677D • (808)96, 8741 Fu 18n806I 8411. TO. Jay Sasan Safety Coordinator County of Hawaii FROM: Lester J. Ishado /� Deputy Corporation Counsel County of Hawaii Workers' Compensation Unit RE 11/1/00 Memorandum from Connie Kidu DATE. November 3, 2000 Jay A:Sasan Satery Grndi mm, This memorandum is written in response to the memorandum from Legislative Auditor Connie Kinu asking for comments to the Risk Management Process portion of the (draft) KPMG management letter. On page 8 of said letter, KPMG notes that "the majority of claims are not subject to supervisory or third party reviews to validate that the negotiated settlements are reasonable.. " KPMG is apparently referring to settlements of Permanent Partial Disability (PPD) benefits, disfigurement, and "wash" of future claims. As noted last year, statutory guidelines and formulas leave little room to negotiate. Typically the County retains an independent medical examiner to establish this rating, e.g. 10% of the whole person. PPD is set as follows: _ no. of weeks (set by statute depending on type of injury, e.g foot - 205 weeks, leg -288 weeks, whole person -312 weeks) X _maximum weekly compensation (set by statute depending on year injury occurred) X _ percentage (determined by doctor). The Department of Labor does allow a residual of 11% to 5% to be added on to the final percentage figure. Jay Sasen November 3, 2000 Page Two Disfigurement compensation is also set by guidelines from the Department of Labor and Industrial Relations at $100.00 per inch of disfigurement. A settlement (wash) of future workers' compensation benefits is generally set at $15,000.00 by Department of Labor and Industrial Relations guidelines. KPMG also notes that during 'fiscal year ended June 30, 2000, County employees filed 229 workers' compensation claims and the County paid approximately $2,655,000.00 in claims." To clarify any misunderstanding, this is the amount paid for all claims, including the claims filed in the fiscal year and those filed in prior years. It should be noted that settlements have to be reviewed by a deputy corporation counsel, recommended for approval by the Safety Coordinator, and approved by the Mayor of the County of Hawaii. Also, the letters states that information regarding the number and amount of workers' compensation settlements is not complied. In fact, the County has this information available and prepared a compilation for a portion of the fiscal year for the County Council. I have no specific comments on the compilation and analysis of accident statistics, but this could be helpful in the future. Please forward these comments to Ms. Kidu after you have had a chance to review them. Thank you. SECTION I/ - COMPREHENSIVE ANNUAL FINANCIAL REPORT COMPREHENSIVE ANNUAL FINANCIAL REPORT Fiscal Year Ended June 30, 2000 COUNTY OF HAWAII Hilo, Hawaii Stephen K. Yamashiro Mayor William G Davis Managing Director Prepared by The Department of Finance Harry A. Takahashi Director of Finance COUNTY OF HAki'All Comprehensive Annual Financial Report For the Fiscal Year Ended Tune 30. 2000 Table of Contents Page INTRODUCTORY SECTION Letter of Transmittal 1 GFOA Certificate of Achievement 13 Organization Chart 14 List of Elected Officials 15 List of Principal Officials 16 FINANCIAL SECTION Independent Auditors' Report 17 Glossary of Certain Terms Used in Financial Statements 19 General Purpose Financial Statements: Combined Balance Sheet - All Fund Types and Account Groups and Discretely Presented Component Unit 22 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types and Expendable Trust Funds 26 Combined Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual (Budgetary Basis) - General and Special Revenue Fund Types 28 Combined Statement of Revenues, Expenses and Changes in Retained Earnings - Proprietary Fund Type and Discretely Presented Component Unit 30 Combined Statement of Cash Flows - Proprietary Fund Type and Discretely Presented Component Unit 3 1 Notes to the Combined Financial Statements 33 FINANCIAL SECTION (Continued) Supplemental Information General Fund: Page Comparative Balance Sheets 67 Comparative Statements of Revenues, Expenditures and Changes in Fund Balances 69 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budge[ and Actual (Budgetary Basis) 70 Special Revenue Funds: Combining Balance Sheet 76 Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Deficit) 78 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances (Deficit) - Budget and Actual (Budgetary Basis) 80 Highway Fund - Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual (Budgetary Basis) 84 Parking Meter Fund - Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual (Budgetary Basis) 85 Sewer Fund - Schedule of Revenues, Expenditure% and Changes in Fund Balance - Budget and Actual (Budgetary Basis) 86 Bikeway Fund - Schedule of Revenues. Expenditures and Changes in Fund Balance - Budget and Actual (Budgetary Basis) 87 Cemetery Fund - Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual (Budgetary Basis) 88 Vehicle Disposal Fund - Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual (Budgetary Basis) 89 Solid Waste Fund - Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual (Budgetary Basis) 90 Golf Course Fund - Schedule of Revenues. Expenditures and Changes in Fund Deficit - Budget and Actual (Budgetary Basis) 91 Geothermal Relocation Revolving Fund - Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual (Budgetary Basis) 92 Beautification Fund - Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual (Budgetary Basis) 93 FINANCIAL SECTION (Continued) Pape Supplemental Information (continued) Debt Service Funds: Combining Balance Sheet 95 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 96 Capital Projects Funds. Combining Balance Sheet 97 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 98 Capital Projects Fund - Schedule of Appropriations, Expenditures and Encumbrances - Budget and Actual (Budgetary Basis) 99 Enterprise Funds: Combining Balance Sheet 107 Combining Statement of Revenues, Expenses and Changes in Retained Earnings (Deficit) l09 Combining Statement of Cash Flows 110 Trust and Agency Funds: Combining Balance Sheet 1 I 1 Agency Funds - Combining Balance Sheet 112 Expendable Trust Funds - Combining Statement of Revenues, Expenditures and Changes in Fund Balances 114 Hawaii County Housing Agency - Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual (Budgetary Basis) 115 Agency Funds - Combining Statement of Changes in Assets and Liabilities 1 i 6 General Long -Term Debt Account Group: Schedule of General Long -Term Debt III Schedule of Debt Service Requirements to Maturity for General Obligation Bonds 122 General Fixed Assets Account Group: Schedule of General Fixed Assets by Source 123 Schedule of Changes in General Fixed Assets by Function 124 Schedule of General Fixed Assets by Function and Activity 125 STATISTICAL SECTION Page Chart 1 - General Governmental Revenues and Expenditures Companion 127 Table 1 - General Governmental Expenditures by Function 128 Chart 2 - General Governmental Expenditures by Function 129 Table 2 - General Governmental Revenues by Source 130 Chart 3 - General Governmental Revenues by Source I'll Table 2a - General Governmental Tax Revenues by Source 132 Table 3 - Property Tax Levies and Collections 133 Table 4 - Assessed and Estimated Actual Value of Taxable Real Property 134 Table 5 - Real Property Assessed Values by Classification and Tax Rates 135 Chart 4 - Assessed Value of Real Property 139 Table 6 - Principal Taxpayers 140 Table 7 - Computation of Legal Debt Margin 141 Table 8 - Ratio of Net Bonded Debt to Assessed Value and Net Bonded Debt Per Capita l42 Table 9 - Ratio of Annual Debt Service Expenditures for General Obligation Bonded Debt to Total General Governmental Expenditures 143 Table 10 - Demographic Statistics 144 Table 11 - Property Value, Construction and Bank Deposits 145 Table 12 - Miscellaneous Statistical Data 146 INTRODUCTORY SECTION Stephen K Yarnashiro lfaior October 6, 2000 Countp Of'abjaiI DEPARTMENT OF FINANCE 25 Aupum street Room 118 • Hilo Hawai i 96204252 (808)961-8234 • Fax(809)961-8248 The Honorable Mayor and Members of the Council County of Hawaii 25 Aupum Street Hilo, Hawaii 96720 Dile Kaetsu D,recnr Frank V %lanahli Urpw, i We transmit herewith the Comprehensive Annual Financial Report for the County of Hawaii, State of Hawaii, for the fiscal year July 1, 1999 to June 30, 2000 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 and account groups of the County All disclosures necessary to convey the maximum understanding of the County's financial activities have been included This report presents the financial position of the County of Hawaii at June 30, 2000 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 the general purpose financial statements, related notes, the combining and individual fund and account group financial statements and schedules, 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 and account groups 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 -1- The County provides the full range of municipal services These include police and fire protection, emergency medical care, public prosecutor, culture and recreation, sanitation, social services, water, planning and zoning, construction and maintenance of highways, streets and infrastructure, real property assessment and tax collection, and general administrative services However, the County does not provide such other traditional services as public education, hospitals and courts These services are provided by the State government The County ofHawai'i consists of the island of Hawaii, 4,038 square miles in size D 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 Hawaii 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 Hilo's infrastructure includes Hilo Harbor, a deep -water port, and Hilo International Airport which is capable of handling fully - loaded wide-bodied aircraft Kailua-Kona and South Kohala, major tourist destination areas on the west side of the Big Island, are served by flights from the United States mainland, Japan and Canada through the Kona International Airport In recent years, the County's economy has been in a slump triggered by the loss of over 1,500 jobs due to the closing of three sugar plantations since 1990, and compounded by the economic woes in Asian nations that led to significant drops in tounsm and foreign investment in the state However, evidence of economic expansion has led to widespread agreement amount local economists that the long slump of the 1990s is finally over The County's unemployment rate in the first half of 2000 averaged 6 9 percent, down from 9 2 percent a year earlier In addition, the Hawai'i Council on Revenues, in its August 2000 report, made upward revisions in its estimates for real personal income growth dunng calendar years 2000 and 2001, as well as upward revisions in its estimates on tounsm and related government revenues from the transient accommodations tax Tourism — 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 A popular attraction, the park is the most visited site in the state, handling over 2 million visitors annually The latest figures for tounsm in the County are very good, with hotel occupancy rates for the first half of 2000 up to almost 70 percent, up from 60 percent for the same penod last year Westbound travelers from the U S mainland continued to dominate the market, with a six percent increase statewide in the first six months of 2000 over the same period a year ago Industry sources project continued strength in 2001, according to First Hawaiian Bank's economic forecast for the County -2- Construction — The construction industry continues to improve. as the value of building permits issued increased for the third straight year in 1999 The strong performance of the economy in the mainland U S has contributed to this, because most of the growth is in residential construction, and much of that is due to off -island interests constructing second homes Agriculture — The mild climate in the County is conducive to agricultural production Agriculture makes a substantial contribution to the County's economy and produces a variety of goods for export as well as for local consumption Diversified agriculture got a big boost this year with the opening of a facility that uses X-rays to kill larval fruit flies in papaya and other locally grown fruit This will make it possible to increase exports of popular tropical fruits to the U S mainland Major Initiatives For the Year During the year, the County focused on hazard mitigation, public safety, planning, and other issues affecting the quality of life in the County Year 2000 — The beginning of the new millenium came and went uneventfully, thanks to the preparation by and cooperation between the various County departments and the community Public information disseminated before January 1, 2000 by the Civil Defense Agency kept County residents informed about contingency planning and the status of essential services Project Impact — The County is one of the communities selected to participate in Project Impact, a federally -funded FEMA program to help build disaster -resistant communities The County's grant is to implement pre -disaster mitigation efforts aimed at reducing the loss of human life and the costs and disruptions caused by severe property damage occurring as a result of natural disasters Additionally, the grant will be used to generate a long-term, self-sustaining program of disaster mitigation throughout the County Public Works — The Paukaa Community Collector Sewer and Waiakea Houselots Collector Sewer Phase II were completed during the year at a total contract cost of S6 8 million Both projects were financed by loans from the state's Water Pollution Control Revolving Fund Public Safety — In 1999, police eradicated 215,352 marijuana plants and seized more than 34 pounds of dried, processed marijuana, which resulted in 598 arrests in the County In addition, 12 ounces of heroin, 10 8 pounds of cocaine, and 2 2 pounds of crystal methamphetamine were recovered, resulting in 382 arrests Community-onented policing continues to expand with the addition of seven new officers to the program during the year That brings the total number of community policing officers up to 30 Cormnumty policing facilities also expanded with the opening of a new mini -station in Honokaa, bringing the total number of mini -stations on the island to six, with three more planned in the - 3 - near future This program is successful in placing officers into the community working with the community to fight crime Volunteer fire companies are now equipped with pagers for immediate call -out and with a pak- radio for two-way emergency communications Three new volunteer fire companies were added during the year, continuing the expansion of fire protection to areas outside the urban cores General Plan — The Planning Department has undertaken a mayor task, a comprehensive review and update of the County's General Plan The General Plan is a policy document for the long- range comprehensive development of the County It provides the direction for the future growth of the County, and the legal basis for all subdivision, zoning and related activities A draft document is expected to be ready by fall 2000 Parks and Recreation — in May 2000, a comprehensive ADA program self-evaluation and transition plan was completed by the Department of Parks and Recreation This establishes the department's commitment to facilities renovation for ADA compliance Housing — The Office of Housing and Community Development succeeded in taking 500 families off its waiting list and offering them rental assistance A total of 1,623 families received housing assistance during the year, most of them through federally -funded HUD Section 8 certificates and vouchers Technology — The County began work on a geographic information system (GIS) during the year. A needs assessment was conducted and the County's first GIS plan was completed The Department of Data Systems has acquired the hardware, software, and personnel necessary to coordinate and implement the plan The County began a S2 million project to completely replace the old computerized real property tax system The new system will allow the County to be independent from the City and County of Honolulu in its real property tax functions, will interface to the new GIS system, and will have internet web -based inquiry access available to the public For the Future Public Works — Ground will be broken in the next fiscal year for the construction of the Mohouh Street Extension, the first new mayor street constructed by the County since 1967 Use of federal matching funds makes this project possible It will relieve congestion along Waianuenue Avenue by creating a new traffic link between lower Kaumana and Hilo In addition, land acquisition is underway for another new major street, the Puamako Extension, which will link upper Kaumana with Waiakea when it is completed Federal matching funds are also being utilized for this project As the Hilo landfill approaches full capacity, the County will be looking at solid waste technology alternatives to divert waste from the Hilo landfill to enable the County to close that facility M Public Safety —Two major projects are due to commence in the next fiscal vear First is construction of a cellblock in Hilo to house pre -arraignment detainees The state transferred this function to the County several years ago, and the police have been hard pressed to accommodate such detainees in their existing facilities, which were not designed for this purpose Community Development Block Grant funds and a federal loan are helping finance this project The police and other County agencies are working together to design and construct a new radio communications system to replace the current one that uses a frequency that will be unavailable after 2005 The conversion to a new higher frequency band will improve communications because there will be less interference and fewer "dead" spots This critical $8 million project will be financed by general obligation bonds Police, civil defense, fire, public works and other County agencies utilizing radio communications will benefit from this project, which includes new towers as well as communications equipment islandwide Workforce Investment Act — The Office of Housing and Community Development is the County agency that will be administering the new federal Workforce Investment Act funds through contracts with various one-stop centers to provide employment and training services to economically disadvantaged adults, dislocated workers and youth The program will begin July 1, 2000 Financial Information The management of the County is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the County are protected from loss, theft or misuse and to ensure that adequate accounting data are compiled to allow for preparation of financial statements in conformity with generally accepted accounting principles The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met The concept of reasonable assurance recognizes that (1) the cost of a control should not exceed the benefits likely to be derived, and (2) the valuation of costs and benefits 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 expenditures do not exceed budgeted amounts Activities of the general fund, special revenue funds, and one expendable trust fund 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, one expendable trust fund, and the capital projects fund Budgetary control for the debt service fund is achieved through general obligation bond indenture provisions - 5 - 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, all leases are treated as operating leases, and accounts payable are not accrued The County also maintains an encumbrance accounting system as one technique of accomplishing budgetary control Encumbrances outstanding at fiscal year end are reported as reservations of fund balances 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 Genera! Government Functions The following is a summary of operations for the fiscal year ended June 30, 2000, including the general fund, special revenue funds, and debt service fund Revenues - Revenues in fiscal 2000 totaled $151,536,452, a 2 1 % decrease from the previous year The amounts of revenues from the various sources and changes from last year follow Increase Percent of Percent (Decrease) Increase Source Amount of Total From 1999 (Decrease) Taxes and assessments 593,323,506 61 6% ($1,321,302) (14%) Licenses and permits 7,261,189 48 309,628 45 Intergovernmental 32,572,438 215 (2,502,917) (7 l) Charges for current services 11,214,850 74 1,066,526 105 Fines and forfeitures 401,781 02 50,067 142 Interest and penalties 5,281,513 3 5 (263,792) (4 8) Miscellaneous 1,481,175 10 (1,606,880) (52 0) Total $151,536,452 1000% (54,268,670)2277) The County's largest single source of revenues, taxes and assessments, showed a small decrease during the year and contributed 61 6% of the total revenues Taxes and assessments are a combination of three distinct resources real property, fuel, and franchise taxes Real property tax revenues were $1 5 million less than the pnor fiscal year, and accounted for the decrease during the year Assessments are based on 100% of fair market value, and reflect declining property values county -wide Tax rates remained unchanged from the prior year Charges for services increased 10 5% to $11,214,850 as a result of efforts to recover a higher percentage of costs through user fees and charges to those benefiting from various services Miscellaneous revenue was $1,481,175, a 52 0% decrease from the prior year, which was unusually high due to a refund of 51 6 million in excess employer contributions from the State of Hawaii Employees' Health Fund Taxes 62% Intergovernmental kk� 21% Miscellaneous 1% Interest/penalties 4% Charges for services 7% 2000 Revenues by Source Miscellaneous Interest & penalties Fines and forfeitures Charges for services Intergovernmental Licenses & permits Taxes Licenses 5% $ S g§- s s§ s n a vii 132000 ■ 1999 S 9 o ($000) Comparison of Revenues by Source - FY 1999 and 2000 7- Expenditures - Expenditures for general government purposes in the fiscal year ended June 30, 2000 totaled 5156,081,429, a decrease of 04% from the preceding period The amounts of expenditure by major functions and changes from last year follow Increase Percent of Percent (Decrease) Increase Function Amount of Total From 1999 (Decrease) Public safety S 58,394,818 374% 52,359,560 42% General government 21,441,933 13 7 644,841 3 1 Highways and streets 8,006,327 5 1 (141,700) (1 7) Sanitation 12,856,080 82 569,286 46 Health, education, welfare 5,078,730 3 3 (231,094) (4 4) Culture and recreation 11,526,076 74 (795.079) (6 5) Pension and retirement contributions 5,640,803 36 (4,144,662) (42 4) Health fund 9,544,209 6 1 279,816 3 0 Miscellaneous 4,223,753 27 607,479 168 Capital outlay 2,748,158 1 8 (909,548) (24 9) Debt service 16,620,542 107 1,138,742 74 Total $156,081,429 1000% ($ 622.359) 104) The actuanally-determined contribution to the Employees' Retirement System required during the year was $4 0 million less than the prior year's requirement because of changes in actuarial assumptions adopted by the state legislature The expenditure for capital outlay decreased 24 9% to $2 7 million because of lower expenditures during the year for federally -funded Community Development Block Grant and HOME Program projects Capital outlay 2% Miscellaneous 3% Health fund 6% _ __---.i Pensions Culture/ rec 7% HEW 3% Sanitation 8% govt 14% Highways & streets 5% 11% Public Safety 37% 2000 Expenditures by Function Debt service Capital outlay Misc Health fund Pension/retire Culture & recreation HEW Sanitatwn Highways & streets General govt Public safety o S o o $ o 0 0 0 0 0 0 0 0 0 0 0 132000 ■ 1999 ($000) Comparison of Expenditures by Function - FY 1999 and 2000 General Fund Balance The unreserved fund balance for the general fund amounted to S 16 1 million at June 30, 2000 Nearly all of this amount was designated for various purposes, including S 13 4 million that was projected and anticipated as revenue to finance the ensuing fiscal year 2001 operating budget The balance of $50,000 was unreserved and undesignated Enterprise Operations Kulaimano Elderly Housing Project - The operating revenue of this fund totaled $234,925 during the fiscal year, an increase of $12,598 over the prior year Operating expenses were $178,520, up $31,076 over last year Interest paid on long -tern debt exceeded interest earned on investments by $49,819 Net income for this fiscal year was $6,586 l� Ouli Ekahi Affordable Housing Project — The operating revenue of this fund was 5202,456, down from $207,476 in the prior year After operating expenses of $205,867 and interest income of $474, the net loss for the year was $2,937 Component Unit - Department of Water Supply Water sales totaled 520,964,517, an increase of 5488,426 over the prior year Operating expenses of $23,909,869 are S 1,716,628 higher than last year, resulting in an operating loss of $2,945,352 Nonoperating revenues (primarily interest earnings) net of nonoperating expenses (primarily interest expense) totaled $148,093, resulting in net loss of 52,797,259 Pension Plan All full-time employees of the County participate in the Employees' Retirement System of the State of Hawaii, a cost-sharing, multiple -employer defined benefit public employee retirement system Debt Administration The County issued general obligation bonds to agencies of the federal government on behalf of the component unit in the amount of $253,250 during the year The County has drawn down on thirteen loans from the State Water Pollution Control Revolving Fund to finance wastewater projects in Hilo and Kona The cash which the County had borrowed at June 30, 2000 (net of repayments) totaled $32,781,475 The total debt outstanding at June 30, 2000 was $183,171,814 (including debt of the enterprise fund and the component unit) Under current State statutes, the County's general obligation bonded debt issues are subject to a legal limitation of 15% of total assessed value of real property As of June 30, 2000, the County's net general obligation bonded debt of $162,716,490 was well below the legal limit of S 1,512,507,548 On September 14, 2000, the County issued $18,940,000 in general obligation refunding bonds to refund the 1978 Refunding Bonds, and S30 million in general obligation bonds The interest rates on the two new issues range from 4 25% to 6 00% By refunding the 1978 Refunding Bonds, $8 7 million in the 1978 Sinking Fund became available to the County to finance operations Cash Management Cash temporarily idle during the year was invested in demand deposits, certificates of deposit and repurchase agreements. The average yield on investment was 4 67% The County's policy is to minimize credit and market risks while maintaining a competitive yield on its portfolio. Accordingly, with the exception of $219,765 held by bond paying agents and a rental management agent, deposits were either insured by federal depository insurance, -10- collateralized, or secured by irrevocable letters of credit All collateral on deposits was held for safe keeping with a County -designated agent in the County's name Risk Management The County maintains insurance coverage for privately owned police vehicles as well as for other purposes The County is substantially self-insured for its vehicles as well as for all other perils including workers' compensation and general liability Other Information Independent Audit The Hawaii County Charter requires an annual audit by independent certified public accountants KPMG LLP was selected by the County Council to perform the audit Employee Union Contracts County employees are members of seven different bargaining units Two of the bargaining units have contracts which expired June 30, 1999 For one of these units, the County is awaiting the results of binding arbitration The other unit has declared an impasse in negotiations, and is currently in mediation One unit has a contract that runs through June 30, 2003 as a result of binding arbitration The other four units have an arbitration award covering the four years ending June 30, 2003 that has been approved by the County Council. However, concurrence of all affected Jurisdictions is required by state law, and the state legislature has not yet approved the cost items of the arbitration decision Certificate ofAchfevement 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 comprehensive annual financial report for the fiscal year ended June 30, 1999 This was the twelfth consecutive year that the government has aclueved this prestigious award In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report, whose contents conform to program standards. This report must satisfy both generally accepted accounting principles and applicable legal requirements A Certificate of Achievement is valid for a penod of one year only We believe our current comprehensive annual 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 on a timely basis 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 DIXIE KAETSU Director of Finance - 12 - Certificate of Achievement for Excellence in Financial Reporting Presented to County of Hawaii For its Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 1999 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting 3;t-&46-� FPresident � Y Executive Director County Council County Clerk Departments and agencies under direct supervision of the Mayor andlor Managing Director Corporation Counsel Finance Data Systems Planning Research & Development Public Works Parks & Recreation Fire Department .Mass Transportation County of Hawaii Organization Chart Countv Electorate Mayor 1 i Prosecuting Attorney Office of the Mayor Managing Director Safety Coordinator Agencies under administrative supervision of the Mayor Civil Defense Office of Aging -14- Departments under commissions and administrative supervision of the Mayor Civil Service Police Liquor Control Housing & Community Development Water Supply (semi -autonomous) Countv of Hawaii Elected Officials Administrative Officers (Term 1996-2000) Stephen K Yamashiro Mayor Jay T Kimura Prosecuting Attorney County Council (Term 1998-2000) James Y Arakaki Chair Al Smith Vice Chair Aaron S Y Chung Member Leningrad Elananofi Member Julie Jacobson Member Bobby Jean Leithead-Todd Member Nancy Pisicchio Member J Curtis Tyler, III Member Dominic Yagong Member -15- Principal Officials June 30, 2000 County Clerk Al Konishi Legislative Auditor Connie Kinu Managing Director William G DdvlS Deputy Managing Director Henry Cho Corporation Counsel Richard Wurdeman Director of Finance Ham A Takahashi Planning Director Virginia Goldstein Director of Personnel Michael R Ben Director of Research and Development Margarita Hopkins Chief of Police Wayne Carvalho Fire Chief Edward Bumatay Chief Engineer Robert Yanabu Director of Parks and Recreation Juliette Tulang Manager, Department of Water Supply Milton Pavao Civil Defense Administrator Harry Kim Director of Liquor Control Janice A Pakele Transit Operations Administrator Michael Cochran Executive on Aging William T Takaba Assistant Administrator, Office of Housing and Community Development Edwin S Taira Safety Coordinator Jay Sasan -16- FINANCIAL SECTION Sox4 =C -0,-CIi.. J - 36812 5'6C Independent Auditors' Report To the Chair and Members of the County Council County of Hawaii State of Haw•ai' i We have audited the accompanying general purpose financial statements of the County of Hawaii, State of Hawaii (County), as of and for the year ended June 30, 2000, as listed in the table of contents under Financial Section These general purpose financial statements are the responsibility of the County's management Our responsibility is to express an opinion on these general purpose financial statements based on our audit We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation We believe that our audit provides a reasonable basis for our opinion In our opinion, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the County of Hawaii, State of Hawaii, as of June 30, 2000, and the results of its operations and the cash flows of its proprietary fund type and component unit for the year then ended in conformity with accounting principles generally accepted in the United States of America In accordance with Government Auditing Standards, we have also issued our report dated October 6, 2000 on our consideration of the County's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grants That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit _17_ Our audit was made for the purpose of forming an opinion on [he eeneral purpose financial statements taken as a whole The combining and individual fund and account group financial statements and schedules listed in the table of contents under supplemental information are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the County of Hawaii, State of Hawai i Such information has been subjected to the auditing procedures applied in our audit of the general purpose financial statements and, in our opinion, is fairly stated in all material respects, in relation to the general purpose financial statements taken as a whole We did not audit the data included in the Introductory and Statistical Sections of the Count's comprehensive annual financial report as listed in the table of contents and, accordingly, express no opinion thereon LcP Honolulu, Hawari October 6, 2000 GLOSSARY OF CERTAIN TERMS USED IN FINANCIAL STATEMENTS The following is a glossary of certain terms associated with financial statements Fund - An independent fiscal and accounting entity with a self -balancing set of accounts recording cash and,'or other resources together with all related liabilities, obligations, reserves and equities which are segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions or limitations Appropriations - Authorizations granted by a legislative body to make expenditures and to incur obligations for specific purposes An appropriation is usually limited in amount and as to the time when it may be expended Encumbrances - Obligations in the form of purchase orders, contracts or other commitments which are chargeable to an appropriation and for which a part of the appropriation is reserved Encumbrances cease to exist when the related expenditure is recorded Unexpended Allotments - Reservations of capital project appropriations that are available to complete such projects in future fiscal periods Expenditures - Cost of goods delivered or services rendered, whether paid or unpaid, including expenses and capital outlays Expenditures are distinguished from encumbrances in that expenditures relate to goods delivered or services rendered whereas encumbrances represent commitments or obligations for goods to be delivered or services to berendered and for which no actual liability has been incurred Lapses - As applied to appropriations, the term denotes the automatic termination of an appropriation Except for continuing or indeterminate appropriations. an appropriation is made for a certain period of time At the end of this period, any unexpended or unencumbered balance thereof is returned to fund balance, unless otherwise provided by law 19- This page intentionally left blank. -20- GENERAL PURPOSE FINANCIAL STATEMENTS -21- COUNTY OF HAWAII Combined Balance Sheet All Fund Types and Account Groups and Discretely Presented Component Unit June 30, 2000 (With comparative totals for June 30, 1999) Assets and Other Debits Cash and investments (notes 3 and 16) Cash and cash equivalents Investments Imprest and change funds Receivables Trade, net of allowance for doubtful accounts Real property taxes Due from other governments Due from other funds (note 4) Other Inventories Prepaid expenses Restricted assets (note 3) Cash and cash equivalents Investments Loans receivable Fixed assets, net of accumulated depreciation where applicable (notes 5, 7 and 16) Deferred charges Amount available in debt service funds Amount to be provided for retirement of general long-term debt Total assets and other debits Proprietary Governmental Fund Types Fund Type Special Debt Capital General Revenue Service Protects Enterprise $ 4,062,240 $14,871,058 $ 286,095 $ 5,206,898 $ 287,046 18,930,747 9,835,484 47,200,000 500,000 25,695 2,400 150 1,585,591 16,778 10,193,392 3,013,305 60,490 3,185,015 2,039,152 51,737 126,404 1,301,158 266,979 2015 2,394 2,161,257 1,868 1,089,228 1 587 213.219 715,135 -- -- -- -- 1,505,063 $43,531,309 $16838,255 $10,121,579 $55.721,919 $2,526,518 See accompanying notes to combined financial statements -22- Fiduciary Totals - Component $ 34,202,501 Fund Types Account Groups Primary Unit Totals - 95,897,890 General Government Department Reporting Entity Trust and Long -Term General (Memorandum of (Memorandum Onlvi Agency Debt Fixed AssetsO( nlyl Water Supply June 30, 2000 June 30, 1999 $9,193,797 $ $ $ 33,907,134 S 295.367 $ 34,202,501 $ 44,801,169 1,716,862 78,183,093 17,714,797 95,897,890 68,739,924 100 28,345 10,481 38,826 37,542 452,509,818 1,602,369 1,972,340 3,574,709 3,725,209 9,785,133 9,785,133 10,193,392 9,785,133 10,193,392 10,669,810 1,404 6,260,214 174,606,586 6,260,214 6,15?,126 3,537,152 5,754,445 5,754,445 5,442,859 875,238 2,447,784 239,593 2,687,377 879,706 2,161,257 604,272 2,765,529 2,679,243 1,868 7,046 8,914 4,982 1,400,000 2,704,034 2,704,034 1,916,893 715,135 8,623,143 9,338,278 9,201,417 756,200 756,200 512.025 316,385,234 317,890,297 147,032,463 464,922,760 452,509,818 4,190,617 4,190,617 4,608,080 9,785,133 9,785,133 9,785,133 17.804,829 216,355,224 216 355,224 216,355,224 174,606,586 $16,724,553 $226.140,357 $316,385,234 $687,989,724 5181,446,319 $869,436,043 $804,297,218 (Continued) -23- COUNTY OF HAWAII Combined Balance Sheet All Fund Types and Account Groups and Discretely Presented Component Unit June 30, 2000 (With comparative totals for June 30 1999) Liabilities. Eauitv and Other Credits Liabilities Warrants payable Accounts payable Employee costs payable Due to other funds (note 4) Due to federal government - arbitrage rebate Accrued liabilities Customer advances and deposits Deferred revenue (note 6) Customer deposits payable from restricted assets Bonds payable (notes 9 and 16) Notes payable (note 9) Other general long-term debt (notes 7, 8, 9, 13, 14 and 16) Assets held for the benefit of improvement districts Other Total liabilities Equity and other credits Investments in general fixed assets Contributed capital (notes 10 and 16) Retained earrings (note 12) Reserved Unreserved Fund balances (notes 9 and 12) Reserved Unreserved Proprietary Governmental Fund Types Fund Type Special Debt Capital General Revenue Service Projects Enterprise $ 1106,811 $ 954,104 S $1,149,285 S 14253 979,708 910.600 2,294,804 8 266 3 162,429 950 596 122,994 Total equity and other credits 358,074 -- _- Total liabilities, equity and other credits -- 220,894 $55,721,919 $2.526,518 7,'29 11,671,896 1,753,771 514,504 1,781 __ -_ -- 75,525 1 135,139 698 292 -- -- 1.587 -- 18,977,210 4,569,071 220,894 4,103,174 1,192,693 955,663 -- -- -- -- 1-2.541 205,621 8,453,114 3,587,918 9,900,685 30,594.007 Designated 16,051,394 4870.646 5,287,588 Undesignated 49,591 3,810.620 -- 15,737,150 -- Total equity and other credits 24,554,099 12,269,184 9,900,685 51,618,745 1,333,825 Total liabilities, equity and other credits $43,531,309 $16,838,255 $10,121,579 $55,721,919 $2.526,518 See accompanying notes to combined financial statements -24- (Concluded) Fiduciary S S Totals - C omponent $ 7,235,187 Fund Types Account Groups Primary Unit Totals - 5,062,946 General Government Department Reporting Entity Trust and Long -Term General (Memorandum of (Memorandum Only) Agency Debt Fixed Assets LanW Water Supply June 30, 2000 June 30, 1999 $ 1,968,450 S S S 6,192,903 S 1,042,284 $ 7,235,187 $ 7,162436 9,105 106,244,484 4,202,483 860,463 5,062,946 5,067,949 172,541 169 117 205,621 3.879 343 1,518,426 48,719 375 5,754,445 56,055,894 5.754,445 5,442,859 51,257,318 804,556 -- 358,074 -- 358,074 253 620 1,116,793 22,168,504 1,345,416 1,774,287 3,119,703 3,187612 170,465 170,465 221,434 391,899 366 990 157,275,508 580,233,149 13,961,952 $16,724,553 $226,140,357 13,961,952 14,030 987 $869,436,043 $804,297218 25,525 8,623,143 8,648,668 9,303 502 137,606,000 137,606,000 11,649,200 149,255,200 126,387 350 1,135,139 1 135,139 1,146 411 88,534,357 88,534,357 88,534,357 78,324 915 5,045,445 5,045.445 5,045,445 4,742 589 6998-9 699,879 773 051 9,828,684 226,140,357 265,032083 24,170,811 289.202,894 260.069614 -25- 316,385,234 316,385,234 316,385,234 304,832 940 955,663 106,244,484 107,200,147 107,017 338 112,541 172,541 169 117 205,621 51,031,024 51,236,645 48,719 375 3,520,170 56,055,894 56,055,894 51,257,318 804,556 -- -- 27,014,184 -- 27,014,184 19,636,943 2,571,143 22,168,504 22,168,504 12,594,573 6,895,869 316,385,234 422,957,641 157,275,508 580,233,149 544,227,604 $16,724,553 $226,140,357 $316,385,234 $687,989,724 5181,446,319 $869,436,043 $804,297218 -25- COUNTY OF HAWAII Combined Statement of Revenues, Expenditures and Changes in Fund Balances All Governmental Fund Types and Expendable Trust Funds For the Fiscal Year Ended lune 30, 2000 (With comparative totals for the fiscal year ended June 30, 1999) Revenues Tares and assessments Licenses and permits Intergovernmental Charges for current services Fines and forfeitures Rents Interest and penalties Miscellaneous Total revenues Expenditures Current General government Public safety Highways and streets Sanitation Health, education and welfare Culture and recreation Pension and retirement contributions (note 15) Health fund Miscellaneous Capital outlay Debt service Interest and finance charges Principal retirement Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses) Sale of general fixed assets Intergovernmental loans Proceeds from sale of bonds Proceeds from sale of refunding bonds Payment to refunded bond escrow agent Increase in capital leases Operating transfers in Operating transfers out Total other financing sources (uses) Governmental Fund Type, Special Debt Capital General Revenue Service Protects $83.270,529 S10,052,977 $ 5 3,813.132 3,448,057 -- 32,152,183 420,255 5,810,824 2,426,864 8,787,986 -- 401,781 -- (22,632,046) (2,643,977) 120,744 5,076,128 -- -- 4,922,950 -- 358,503 2,166 989.225 371,206 -- 533,268 128,09-408 23,080,481 358.563 6,346 258 21,432,976 8,957 -- 648,553 55,784,371 2,610,447 595,499 1,518.667 6.487,660 2.676,995 -- 9,213 894 -- 12,856,080 (22,632,046) (2,643,977) 5,221.927 5,076,128 2.602 -- 10,736,652 789 424 3,429 247 5,036,367 604.436 -- 8,646.361 897,848 -- 3,177,419 1,046.334 51 827 2,748,158 -- -- -- 64,789 7,693,992 173,494 8,688,267 -- 114,395,382 25,303,788 16,382,259 19,160,947 13,702,026 (2,223,307) (16,023,696) (12,814.689) 28,387 -- 5,530,217 29,877,561 18,775,575 -- (18,7715,575) 2.676,995 -- -- -- 494,431 5,493.977 17,138,069 2,520,971 (22,632,046) (2,643,977) (358,563) -- (19,432,233) 2,850,000 16,779,506 37,928,749 Excess (deficiency) of revenues and other sources over expenditures and other uses (5,730,207) 626,693 755,810 25,114,060 Fund balances at beginning of year 21,560,805 11,642.491 17,846,888 26,504,685 Residual equity transfer in (out) (note 9) 8,702,013 -- (8,702.013) -- Increase in reserve for inventories 21,488 Fund balances at end of year $24,554,099 $12,269,184 $9,900,685 $51,618,745 See accompanying notes to combined financial statements -26- Fiduciary Totals Fund Type (Memorandum Only) Expendable Trust 2000 1999 $ $93,323,506 $94,644808 -- 7,261,189 6,951,561 7,685,121 46,068,383 50,116,034 -- 11,214,850 10,148,324 7,624,221 401,781 351,714 -- 120,744 113,433 250,445 5,534,124 5,763,247 804,020 2,697,719 3,716,643 8,739,586 166,622,296 171,805,764 1,971 22,092,457 21,251,964 -- 58,990,317 56,754,189 18,775,575 17, 220,221 21, 710, 830 -- 18,078,007 16,641,662 7,624,221 12,702,951 13,169,379 -- 14,955,323 18,484,239 138,628 5,779,431 9,974,027 -- 9,544,209 9,264,393 4,275,580 3,625,992 2,748,158 3,657,706 7,758,781 7,507,730 -- 8,861,761 7,974 070 7,764,820 183,007,196 190,016,181 974,766 (16,384,900) (18,210,417) 28,387 53,668 5,530,217 1,324,602 29,877,561 -- 18,775,575 (18,775,575) 2,676,995 -- 25,647,448 30,384 929 (12,862) (25,647,448) (30,384,929) (12,862) 38,113,160 1,378,270 961,904 21,728,260 (16,832,147) 5,933,965 83,488,834 100,211,330 21,488 109 651 $6,895,869 $105,238,582 $83,488,834 -27- COUNTY OF HAWAII Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual (Budgetary Basis) General and Special Revenue Fund Types For the Fiscal Year Ended June 30, 2000 Excess (deficiency) of revenues over expenditures 4,169,262 15 821,597 11,652,335 (8,437,616) (3 520 277) 4,917,339 Other financing sources (uses) General Fund Special Revenue Funds Variance - 9,290,622 9.196,444 Variance - 6,636,600 5,493 977 Favorable Operating transfers out (26,197,504) Fav orable 1,975.331 Budget 4ctoaI iUnfavorable) Budget Acmal Unfallorable) Revenues 1,881,153 3 992,623 2,850,000 (1,142,623) Excess (deficiency) of revenues and Taxes and assessments 582,248,000 $83,270.129 S1,022,529 510,008,109 S10.052,977 $44,868 Licenses and pemuts 3,592,321 3.813,132 220.811 3.020,187 3,448,057 421,870 Intergovernmental 34,322,070 33.435,793 (886,277) 518,000 517,846 (154) Charges for current services 2,001,486 2426.864 425,378 7,974,349 8,78',986 813 637 Fines and forfeitures 797,300 401,781 (395,519) -- 21,560,805 -- Rents 170,800 120,744 (50,056) Fund balances at end of year $8,823 185 S22,435,009 Interest and penalties 4 500,000 4,835,685 335,685 -- -- -- Miscellaneous 3408,783 2607,739 (801,044) 201,139 361,706 160.567 Total revenues 131,040 760 130 912 267 (128,493) 21,721,784 23,168,572 1,446,788 Expenditures Current General government 23,244,048 20,945, 790 2,298 258 150,000 150,000 -- Public safety 58 846,007 55,644,428 3,201,579 2,848,273 2.675,749 172,524 Highways and streets 1 584,979 1,584,978 1 7,006,739 6,703,379 303.360 Sanitation -- - -- 14,477,949 14,092.243 385 '06 Health, education and welfare 5,420,325 5,161,707 258.618 6,000 202 3 398 Culture and recreation 11,866,997 11,306,549 560,448 887 237 868,147 19,090 Pension and retirement contributions 6,291,515 5 211,162 1,079,953 1,694,544 700,342 994.202 Health fund 8,587,.799 8.556.550 31,349 1,000,848 897848 103.000 vtiscellaneous7,536,899 3,186 1' 7 4,350,522 2,087,810 598 539 1,489 271 Capital outlay 3,492,929 1492,929 -- -- .- -- Total expenditures 126,871,498 115 090,670 11,780 828 30 159,400 26,688 849 3.470 551 Excess (deficiency) of revenues over expenditures 4,169,262 15 821,597 11,652,335 (8,437,616) (3 520 277) 4,917,339 Other financing sources (uses) Operatmg transfers in 9,290,622 9.196,444 (94,178) 6,636,600 5,493 977 (1,142.623) Operating transfers out (26,197,504) (24,222,173) 1,975.331 (2.643,977) (2,643 977) Total other financing sources (uses) (16,906,882) ( 15025,729) 1,881,153 3 992,623 2,850,000 (1,142,623) Excess (deficiency) of revenues and other sources over expenditures and other uses (12,737,620) 795,868 13,533,488 (4,444,993) (670 277) 3,774,716 Unbudgeted self-insurance activities -- 78,336 78,336 -- -- -- Fund balances at beginning of year 21.560,805 21,560,805 -- 11,642.491 11,642 491 Fund balances at end of year $8,823 185 S22,435,009 $13,611,824 $7 197,498 $10,972,214 $3,774,716 See accompanying notes to combined financial statements ME Totals (Memorandum Only) Variance - Favorable Budget Actual (Unfavorable) $92,256,109 $93,323,506 5 1,067,397 6,612,508 7,261,189 648,681 34,840,070 33,953,639 (886,431) 9,975,835 11,214,850 1,239,015 797,300 401,781 (395,519) 170,800 120,744 (50,056) 4,500,000 4,835,685 335,685 3,609,922 2,969,445 (640.477) 152,762,544 154,080,839 1,318,295 23,394,048 21,095,790 2,298,258 61,694,280 58,320,177 3,374,103 8,591,718 8,288,357 303,361 14,477,949 14,092,243 385,706 5,426,325 5,164,309 262,016 12,754,234 12,174,696 579,538 7,986,059 5,911,904 2,074,155 9,588,647 9,454,198 134,449 9,624,709 3,784,916 5,839,793 3,492,929 3,492,929 -- 157,030,898 141, 779,519 15,251,379 (4,268,354) 12,301,320 16,569,674 15,927,222 14,690,421 (1136,801) (28,841,481) (26,866,150) 1,975,331 (12,914,259) (12,175,729) 738,530 (17,182,613) 125,591 17,308,204 -- 78,336 78,336 33,203,296 33,203,296 — $16,020,683 $33,407,223 $17,386,540 -29- COUNTY OF HAWAII Combined Statement of Revenues, Expenses and Changes in Retained Earnings Proprietary Fund Type and Discretely Presented Component Unit For the Fiscal Year Ended June 30, 2000 (With comparative totals for the fiscal year ended June 30 1999) Operating revenues Water sales Rental receipts from tenants Rental subsidy from federal government - FIL-D Miscellaneous Total operating revenues Operating expenses Power and pumping Utilities General and atimmistration Maintenance and repairs Customers' accounting and collecting Punfication Transmission and distribution Source of supply Lease expense Depreciation Total operating expenses Operating income (loss) Nonoperating revenues (expenses) Interest income Other revenue Interest on long-term debt Other expenses Loss on disposal of fixed assets Total nonoperating revenues (expenses) Net income (loss) Add depreciation on contributed utility plant Increase in retained earnings Proprietary Component Fund Type Unit Totals Department Reporting Entity of Water (Memorandum Only) Enterprise Suooly 2000 1999 $ -- $20,964,517 $20,964,517 $20,476,091 282,801 282,801 288,565 148,434 148,434 134,012 6,146 6,146 7,226 437,381 20,964,517 21,401,898 20,905,894 33,294 1,094,554 7,670,142 7,670,142 6,517,366 58,163 279,519 58,163 48,831 143,946 2,565 245 2,709,191 2,904,218 71,582 2,886,617 2,958,199 2,825,345 98,748 899,727 899,727 957,104 1,220,350 1,220,350 1,069,934 991,530 991,530 836,211 64,822 64,822 79,629 76,226 76,226 76,226 34,470 7611,436 7,645,906 7,225,840 384,387 23,909,869 24,294,256 32,540,704 52,994 (2,945,352) (2,892,358) [1,634,810) 33,294 1,094,554 1,127,848 1,008,061 470,149 470,149 279,519 (82,639) (648,486) (731,125) (776,659) (1"5,880) (175,880) (83,927) (592,244) (592,244) (49,676) (49,345) 148,093 98,748 377 318 3,649 (2,797,259) (2,793,610) i 1,257,492) 5,314,304 5,314,304 5,082,408 3,649 2,517,045 2,520,694 3,824,916 Retained earnings at beginning of year 374,513 48,513,979 48,888,492 45,063,576 Retained earnings at end of year $378,162 $51,031,024 $51,409,186 $48,888,492 See accompanying notes to combined financial statements 30- COUNTY OF HAWAII Combined Statement of Cash Flows Proprietary Fund Type and Discretely Presented Component Unit For the Fiscal Year Ended June 30, 2000 (With comparative totals for the fiscat year ended June 30, 1999) Cash flows from operating activities Cash received from customers Cash received from tenants Cash received from federal government - IfL'D Cash payments to suppliers for goods and services Cash payments to employees for services Net cash provided by operating activities Cash flows from capital and related financing activities Principal paid on long-term debt Proceeds from bond issue Interest paid on long-term debt Proceeds from sale of fixed assets Acquisition and construction of capital assets Capital contributions Net cash used in capital and related financing activities Cash flows from investing activities Purchase of investments Proceeds from sale and maturities of investments Interest on investments Net cash provided by investing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year Proprietary Component Fund Type Unit Department of Water Enterprise Suoaly. Totals - Reporting Entity (Memorandum Onlv) 2000 1999 S -- 520,533,051 520,533.051 $21,017,817 289.806 289,806 290,351 148,434 148,434 134,012 (341,578) (10,636,325) (10,977,903) (10,844,581) (5,533,0301 (5,533,030) (4,689,201) 96.662 4363,696 4,460,358 5 908,398 (11 272) (904,900) (916,1721 (901,926) 253,250 253,250 404,000 (82,639) (670,369) (753,008) (760,718) 8,956 (8,065) (5,433,263) (5,441,328) (8,484,942) 2,257,106 2,257,106 1,294,803 (101,976) (4,498,176) (4,600,152) (8,439 827) (1,500,000) (78,375,076) (79,875,076) (72,880.603) 1,500000 77,418,008 78,918,008 74,542,713 33,253 1,033,391 1,066,644 1,035,675 33,253 76.323 109,576 2,697,785 27.939 (58,157) (30,218) 166356 -31- 472,476 364 005 836,481 670,125 5500,415 S 305,848 S 806,263 $ 836 481 (Continuedl COUNTY OF HAWAII Combined Statement of Cash Flows Proprietary Fund Type and Discretely Presented Component Unit For the Fiscal Year Ended June 30, 2000 (With comparative totals for the fiscal year ended June 30, 1999) 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 Provision for uncollectible accounts (Increase) decrease in trade accounts receivable (Increase) decrease in other receivables Increase in inventory (Increase) decrease in prepaid expenses Increase in loans receivable Increase (decrease) in warrants payable Increase (decrease) in accounts payable Increase (decrease) in accrued liabilities Increase in deferred revenue Increase (decrease) in customer deposits payable Total adjustments Net cash provided by operating activities Noncash capital activities Proprietary Component Fund Type Unit Department of Water I.ntemnse Surnk (Concluded) Totals - Reportutg Entity (Memorandum Only) 2000 1999 $ 52,994 ($2,945,352) (52,892,358) ($1,634,810) 34,470 7,611,436 7,645,906 7,225,840 -- 44,712 44,712 214,963 (941) 8,868 7,927 (507,533) (18) 50,641 50,623 243,048 -- (64,798) (64,798) (90,131) (62) (3,870) (3,932) 11 825 -- (244,175) (244,175) (393,675) 1,076 691,056 692,132 (33,262) 7,325 (480,688) (473,363) 527,407 -- (304,134) (304,134) 346,005 1,378 1,378 26 440 440 (1,305) 43,668 7,309,048 7,352,716 7,543,208 $96,662 $4,363,696 $4,460,358 $5,908398 During the fiscal years ended June 30, 2000 and 1999, the Department of Water Supply received infrastructure valued at $3,240,007 and $1,563,747, respectively, as contributions in aid of construction See accompanying notes to combined financial statements -32- COUNTY OF HAWAII Notes to the Combined Financial Statements June 30, 2000 The accounting policies of the County of Hawai i (County) conform to generally accepted accounting principles (GAAP) as applicable to local governmental units The following notes to the combined financial statements are an integral part of the County's Comprehensive Annual Financial Report 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) No organizations, activities or functions that meet the criteria in GASB Statement No 14 for inclusion in the reporting entity are excluded from the County's general purpose 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, and 1990 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 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 defines component units as legally separate organizations for which the elected officials of the primary government are financially accountable "Financial accountability" is the level of accountability that exists if a primary government appoints a voting majority of an organization's governing board 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 performed 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 to, the organization, or (3) The primary government is obligated in some manner for the debt of the organization -33- COUNTY OF HAWA-VI Notes to the Combined Financial Statements June 30, 2000 As required by generally accepted accounting principles as set forth in GASB Statement No 14, these general purpose financial statements present the County of Hawaii (the primary government) and its component unit, the Department of Water Supply This component unit is included in the County's reporting entity because of its financial relationship with the County Discretely Presented Component Unit The component unit column in the combined financial statements includes the financial data of the Department of Water Supply (Department), a semiautonomous 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 Commission, 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 16 for required component unit disclosures for the Department Complete financial statements of the Department can be obtained from the Department of Water Supply, 25 Aupuni Street, Hilo, Hawai'i 96720 Fund Accounting The accounts of the County are organized on the basis of funds and account groups, each of which is considered to be a separate accounting entity The operations of each fund are accounted for with a separate set of self -balancing accounts that comprise its assets, liabilities, equity, revenues and expenditures (or expenses) Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain functions or activities Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which the resources are to be spent and the means by which spending activities are controlled The various funds are grouped by type in the financial statements The County has the following fund types and account groups Governmental Fund Types - Governmental funds are those through which most governmental functions of the County are financed The acquisition, use and balances of the County's expendable financial resources and the related liabilities (except those accounted for in proprietary funds) are accounted for through governmental funds The measurement focus follows the flow of current financial resources concept The following are the County's governmental fund types -34- COUNTY OF HAWAII Notes to the Combined Financial Statements June 30, 2000 General Fund - The general fund is the general operating fund of the County it is used to account for all financial resources except those required to be accounted for in other funds Special Revenue Funds - Special revenue funds are used to account for the proceeds of specific revenue sources (other than expendable trusts or major capital projects) that are legally restricted to expenditures for specified purposes Debt Service Funds - Debt service funds are used to account for the accumulation of resources for, and the payment of, general long-term debt principal, interest and related costs Capital Projects Funds - Capital projects funds are 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 Capital outlay for relatively minor general government assets or for projects that do not need separate project centers to control costs are financed directly from operating funds (general, special revenue and some expendable trust funds) Proprietary Fund Type — The County's proprietary funds and discretely presented component unit are used to account for activities which are similar to those often found in the private sector The measurement focus follows the flow of economic resources concept The propnetary funds of the County and its discretely presented component unit have elected to apply all applicable Governmental Accounting Standards Board (GASB) pronouncements, as well as Financial Accounting Standards Board (FASB) pronouncements and Accounting Principles Board opinions issued on or before November 30, 1989, unless those pronouncements or opinions conflict with or contradict GASB pronouncement~ The proprietary funds of the County and its discretely presented component unit will not apply FASB Statements and Interpretations issued atter November 30, 1989 The following is the County's proprietary fund type Enterprise Fund - Enterpnse funds are used to account for operations (a) that ai e financed and operated in a manner similar to private business enterprises - where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered pnmarily through user charges, or (b) where the governing body has decided that periodic determination of revenues earned, expenses incurred and/or net income is appropnate for capital maintenance, public policy, management control, accountability or other purposes - 35 - COUNTY OF HAWAI'1 Notes to the Combined Financial Statements June 30, 2000 Fiduciary Fund Types - Fiduciary tunds are used to account for assets held by the County in a trustee capacity or as an agent for individuals, private organizations, other governmental units and/or other funds The following are the County's fiduciary fund types Trust Funds — Trust funds are used to account for assets held by the County in a trustee capacity for individuals, private organizations, other governments and/or trust funds This includes expendable trust funds which are accounted for in essentially the same manner as governmental funds Agency Funds — Agency funds are custodial in nature and are used to receive and disburse funds for an entity/individual which is not part of the County Agency funds function as a clearing account and do not measure results of operations Account Groups - Account groups are used to establish accounting control and accountability for the County's general long-term debt and general fixed assets Account groups are not funds and accordingly, do not reflect available financial resources and related liabilities The following are the County's account groups General Long -Term Debt Account Group - This account group is established to account for all long-term liabilities that will be financed from governmental funds Long-term liabilities of the enterprise funds are accounted for in those funds General Fixed Assets Account Group -This account group is established to account for all fixed assets of the County, other than those accounted for in the enterprise funds 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 combined financial statements Basis of accounting relates to the timing of the measurements made. regardless of the measurement focus applied Modified Accrual Basis -The modified accrual basis of accounting is followed by the County's governmental and fiduciary fund types Under the modified accrual basis of accounting, 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 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 -36- COUNTY OF HAW.AFI Notes to the Combined Financial Statements June 30. 2000 generally not measurable until actually received Real property taxes levied for the current year and State Revolving Fund loan proceeds are considered available when collected In applying the susceptible to accrual concept to intergovernmental revenues, the legal and contractual requirements of the numerous inditidual programs are used as guidance There are essentially two types of these revenues In one, montes 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, moneys are virtually unrestricted as to purpose of expenditure and ai a 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 revenue on its combined balance sheet (see Note 6) Deferred revenues 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 liability for deterred revenue is removed from the combined balance sheet and revenue is recognized Expenditures are recognized under the modified accrual basis of accounting in the accounting period in which the fund liability is incurred Exceptions to this general rule include (a) accumulated compensated absences and claims and Judgments which are included in the general long-term debt account group and are recognized as expenditures when paid, (b) liabilities related to municipal solid waste landfill closure and postclosure care costs, and (c) principal and interest on general long-term debt which are recognized as expenditures when due Accrual Basis - The proprietary fund type and the County's discretely presented component unit utilize the accrual basis of accounting Revenues are recognized when earned and expenses are recognized when the related obligation is incurred Encumbrances The general, special revenue, capital projects and expendable trust funds follow encumbrance accounting under which purchase orders, contracts and other commitments are recorded as a reserve 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 reported as reservations of fund balances (see Note 12) and do not constitute expenditures or liabilities because the commitments will be honored during the subsequent year 37- COUNTY OF HAWAI'I Notes to the Combined Financial Statements June 30, 2000 Unexpended Allotments Allotment accounting is employed in the general and capital projects funds to reserve appropriations to complete capital projects that were funded during a given fiscal period Unexpended allotments represent reserves of capital projects appropriations that are available to complete such projects in future fiscal periods Cash and Investments Cash and cash equivalents include cash on hand, amounts in demand deposits and short-term investments with a maturity date of three months or less from the date acquired by the County Investments consist of time certificates of deposit at financial institutions and bank repurchase agreements with original maturities exceeding three months Included are participating interest-eamtng investment contracts (repurchase agreements) that have remaining matunties at the time of purchase of one year or less, as well as nonparticipating interest-earning investment contracts (time certificates of deposit and repurchase agreements) Both categories of investments are stated at amortized cost (see Note 3) Real Property Taxes The County's real property taxes are levied 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 and are reported as deferred revenue (see Note 6) 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 Real property tax revenue is recorded when it becomes available Available means collected within the current period unless the amounts expected to be collected soon thereafter (within 60 days) are matenal or are to be used to pay liabilities of the current period No such amounts are included in real property tax revenues for the fiscal year ended June 30, 2000 Inventories Inventones consist of materials and supplies and are reported as expenditures at the time of purchase (purchase method) Police and fire department inventones are stated using the first in, first out (FIFO) method Other inventories are stated at average cost COUNTY OF HAWAI'I Notes to the Combined Financial Statements June 30, 2000 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 The amounts expected to be liquidated with expendable available resources are accrued in the appropriate funds and the amounts payable from future resources are recorded in the general long-term debt account group along with the estimated liability for FICA taxes and employers' retirement contributions on those amounts All accumulated unpaid vacation and compensatory time off at June 30, 2000 are expected to be liquidated with future expendable resources 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 Accumulated sick leave at June 30, 2000 totaled $44,557,982 for the primary government Leases Leases transferring substantially all of the risks and benefits of ownership are recorded as capital leases, other leases are operating leases (see Note 7) Capital leases are recorded as fixed asset additions at their estimated fair market value at the inception of the lease and the related present value of the future minimum lease obligations is recorded as long-term debt Operating lease expenditures and expenses are recognized when the lease obligation is paid Retirement Plan Contributions The County's contribution to the Employees' Retirement System of the State of Hawai'i is based upon an actuarial computation and includes the normal cost plus the level annual payment required to amortize the unfunded actuarial accrued liability over a remaining penod of seventeen years from July 1, 1999 In addition, for the 1997 and 1998 actuarial valuations, contributions for fiscal years 2000 and 2001 were reduced by excess investment earnings in accordance with action by the state legislature The County's policy is to fund its actuarially determined required contribution annually KIM COUNTY OF HAW Ai'i Notes to the Combined Financial Statements June 30, 2000 Use of Estimates The preparation of the combined financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and other debits and liabilities and other credits, as well as disclosure of contingent assets and liabilities at the date of the combined 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 Total Columns Included on the combined financial statements are total columns, marked "memorandum only," that are presented only for informational purposes Adjustments to eliminate interfund transactions have not been recorded in arriving at such amounts and the totals are not intended to fairly present the financial positron or results of operations of the County taken as a whole Additionally, the 1999 totals presented in the total columns are intended to provide a summarized comparison with comparable 2000 amounts and are not intended to present all information necessary for a fair presentation of financial positron and results of operations in accordance with generally accepted accounting principles Certain 1999 amounts have been reclassified to conform to classifications adopted in 2000 2, STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY Annual Budget 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 I The operating budget includes proposed expenditures for the general fund, special revenue funds, and one expendable trust fund (the Hawai' i County Housing Agency), 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 -41- COUNTY OF HAWAI I Notes to the Combined Financial Statements June 30, 2000 The County Council conducts public hearings on the proposed operating and capital budgets after March i 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 Council approval During the year, the budget may be amended by action of the 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 1999-2000 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 $8 5 million in the general fund and $3 0 million in the special revenue funds .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, capital projects fund. and one expendable trust fund (the Hawaii County Housing Agency) Formal budgetary integration is not employed for debt service funds because effective budgetary control is alternatively achieved through general obligation bond indenture provisions The accompanying Combined Statement of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual (Budgetary Basis) — General and Special Revenue Fund Types presents 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 prepanng the combined 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 from a GAAP basis to a budgetary basis at June 30, 2000 -42- COUNTY OF HAWAII Notes to the Combined Financial Statements June 30, 2000 Ending fund balance — GAAP basis Encumbrance adjustments Beginning encumbrances and unexpended allotments Ending encumbrances and unexpended allotments Beginning accrued employee costs payable Ending accounts payable in excess of the reserve for encumbrances Increase in reserve for inventory of materials and supplies increase in imprest and change funds Ending fund balance — Non -GAAP budgetary basis Deficit Fund Balance General Special Revenue Fund Funds $24554,099 $12,269,184 5,942,392 3,490,071 (5,574,668) (3,460,740) (2,465,326) (1,349,571) 23,470 (21,488) -- (200) $22,435,009 $10,972,214 At June 30, 2000, the Geothermal Relocation Revolving Fund, a special revenue fund, had an unreserved -undesignated fund deficit of $28,967 It is anticipated that future geothermal royalty payments will eliminate this deficit 3. CASH AND INVESTMENTS Bank time certificates of deposit (TCDs) and repurchase agreements (repos) with original maturities of three months or less are considered cash and cash equivalents for purposes of balance sheet classification and the statement of cash flows, while TCDs and repos with original matunties exceeding three months are considered investments However, for purposes of the disclosures required by GASB Statement No 3, all bank TCDs are considered deposits and all repos are considered investments Cash and cash equivalents of $36,639,513 and investments of $78,898,228 are included in the accompanying combined balance sheet at June 30, 2000 The following table summanzes cash and cash equivalents and investments according to balance sheet captions, and indicates how these amounts are distributed between deposits and investments for GASB Statement No 3 disclosure purposes -43- COUNTY OF HAWAII Notes to the Combined Financial Statements June 30, 2000 The County maintains a cash and investment pool that is used by the general fund, all special revenue funds, one capital projects fund, the payroll clearance fund, and three other agency funds The following summarizes this pool at June 30, 2000 General fund — actual $22,135,017 GASB Statement No 3 Balance sheeet caption Total Deposits Investments Cash and cash equivalents 533,907,134 $12 257.135 S21,649999 Restricted assets Total pooled cash and investments $87,753,768 Cash and cash equivalents 2,704,034 2,704.034 -- Impress and change funds 28 345 Total cash and cash equivalents 36,639 S13 Investments 7.4,183,093 14616,417 63,566,676 Restricted assets Investments 715135 715135 Total investments 78,898 228 Total cash, cash equivalents and investments I IS 537 741 Less impress and change funds _(28.345) Classifications per GASB Statement No 3 SI 15,509,396 $30,292.721 S85,216,675 The County maintains a cash and investment pool that is used by the general fund, all special revenue funds, one capital projects fund, the payroll clearance fund, and three other agency funds The following summarizes this pool at June 30, 2000 General fund — actual $22,135,017 Payroll clearance fund — overdraft (1,420,764) General fund — as reported 20,714,253 Special revenue funds 14,871,058 Capital projects funds 51,568,358 Trust and agency funds 600,099 Total pooled cash and investments $87,753,768 The cash overdraft in the payroll clearance fund is reported as a liability due to the general fund, and as a receivable from the payroll clearance fund by the general fund (See Note 4 ) Interest earned is credited to the general fund unless otherwise designated by statute Deposits At June 30, 2000, the carrying amount of the County's deposits was 530,292,721 (including $3,419,169 reported in restncted assets) and the bank balance was $31,193,566 Of the bank balance, $800,000 was covered by federal depository insurance, $19,205,290 was covered by collateral held by the County's agent in the County's name and $10,968,511 was secured by irrevocable letters of credit issued by the Federal Home Loan Bank of Seattle, in accordance with State statutes, and $207.702 held by bond paying agents and $12,063 held by a management agent were uncollateralized -44- COLTITY OF HAWAII Notes to the Combined Financial Statements June 30, 2000 investments The Hawaii Revised Statutes authorize the County to invest in obligations of the U S Treasury, agencies and instrumentalities, time certificates of deposit, bank repurchase agreements and bonds of any improvement distract of any county of the State, provided the investments are due to mature not more than three years from the date of investment Investments are classified into three categories of credit risk (1) insured or registered, or secunties held by the County or its agent in the County's name, or (2) uninsured and unregistered, with securities held by the counterparty's trust department or agent in the County's name, or (3) uninsured and unregistered, with securities held by the counterparty in the County's name, or by the counterparty's trust department or agent but not in the County's name At June 30, 2000, investments reported as $85,216,675 (which approximates fair value) held for the County at banks were classified as category i These investments are comprised of bank repurchase agreements A repurchase agreement is an agreement in which a governmental entity transfers cash to a broker-dealer or financial institution, the broker- dealer or the financial institution transfers securities to the entity and promises to repay the cash plus interest in exchange for the same secunties Restricted Cash Cash and cash equivalents and investments classified as restricted assets amounted to $3,419,169 at June 30, 2000 consist of the following The County deposited its share of the cost of the Alenaio Stream Flood Control Project into an escrow account which amounted to $1,587 at lune 30, 2000 The Army Corps of Engineers is authorized to draw on these funds as needed during the course of the construction project During the year, the County entered into a capital lease to purchase a new real property tax computer system Upon execution of the lease documents, the leasing company deposited into an escrow account in the County's name the full lease proceeds As progress billings are received for the new system, the County will authorize withdrawals from this escrow account to pay the bills The balance in this account at June 30, 2000 is $1,804,363 Tenant secunty deposits received by the County for the Kulaimano Elderly Housing Project and the Ouli Ekahi Affordable Housing Project are recorded as a restricted asset Such funds amounted to $9,250 and $17,533, respectively, at June 30, 2000 -45- COUNTY OF HAWAI'I Notes to the Combined Financial Statements June 30, 2000 Restricted amounts set aside by the Kulaimano Elderly Housing Project under its loan agreement with the Farmers Home Administration totaled $172,541 at June 30, 2000 This amount is restricted for debt service, or for other purposes with prior approval from the Farmers Home Administration An operating reserve fund was established by the Ouli Ekahi Affordable Housing Project pursuant to an agreement with the developer of the project This restricted reserve amounted to $13,895 at June 30, 2000 The Improvement District No 17 Fund has restricted $1,400,000 as a bond reserve at June 30, 2000 to comply with the requirements of its Kaloko Subdivision bond issuance 4. INTERFUND RECEIVABLES AND PAYABLES Interfund receivables and payables consist of the following at June 30, 2000 iM Due from Due to Other Funds Other Funds General fund 52,039,152 $3,162,429 Special revenue funds Highway fund 42,435 554,501 Sewer fund 282 139,121 Vehicle disposal fund -- 3,071 Solid waste fund 8,645 209,292 Golf course fund 375 44,611 Total special revenue funds 51,737 950,596 Capital projects funds Capital projects fund 126,404 122,994 Trust and agency funds Hawat'i county housing agency -- 89,212 Performance and refundable deposits fund 860 Payroll clearance fund 3,529,977 1,421,154 Lapsed warrants fund 7,175 7,200 Total trust and agency funds 3,537,152 1,518 426 Total $5,754,445 55,754,445 iM COUNTY OF HAWAII Notes to the Combined Financial Statements June 30, 2000 5. FIXED ASSETS A summary of changes in the general fixed aswts account group follows Balance Balance July 1, June 30, 1999 Additions Retirements 2000 Land $ 16,183,543 S 364,155 $ 12,800 $ 16,534,898 Buildings and structures 209,712,329 15,345,249 107,321 224,950,257 Machinery and equipment 49,917,622 9,303,800 5,522,889 53,698,533 Construction in progress 29,019,446 6,391,693 14,209,593 21,201,546 Total $304,832,940 $31,404,897 $19,852,603 $316,385,234 The above summary includes fixed assets of the Hawaii County Housing Agency, an expendable trust fund, in the amount of $4,975,520 The following summarizes the enterpnse funds' fixed assets at June 30, 2000 Land $ 753,877 Buildings 1,136,008 Ground and site improvements 261,000 Furnishings and equipment 87,332 Less accumulated depreciation73( 3.154) Net fixed assets $1,505,063 6. DEFERRED REVENUE Deferred revenue at June 30, 2000 consists of the following -47- COUNTY OF HAWAII Notes to the Combined Financial Statements June 30, 2000 Special Capital General Revenue Projects Enterprise Fund Funds Funds Funds Total Real property taxes $10,547,484 $ S $ -- 510,547,484 Liquor control revenue 156,210 156,210 Sewer revenue 850,580 850,580 Solid waste revenue 903,191 903,191 Intergovemmental 968,202 534,504 1,502,706 Unearned rental income 1,781 1.781 Total $11,671,896 $1,753,771 5534,504 $1,781 $13,961,952 7. LEASES The County leases machinery and equipment under noncancellable leases expinng at various dates through November 2009 which meet the criteria for capitalization These capital leases are financed from general fund and special revenue fund resources The estimated value of the leased machinery and equipment at the inception of the capital leases, amounting to $3,146,205, and the related present value of the remaining obligations under the capital leases amounting to $2.872,678 at June 30, 2000 are included in the general fixed assets and general long-term debt account groups, respectively The County also leases land, office facilities and other equipment under noncancellable operating leases expinng through July 2020 Expenditures for such operating leases were $425,721 for the fiscal year ended June 30, 2000 The future minimum obligations under capital and operating leases at June 30, 2000 are as follows -48- COUNTY OF HAWAII Notes to the Combined Financial Statements June 30, 2000 8. Year Ending June 30 2001 2002 2003 2004 2005 Thereafter Total minimum lease payments Less amount representing interest Obligations under capital leases Capital Leases $ 647,771 647,034 645,309 638,289 482,878 305,887 3,367 168 49( 4.490) $2,872,678 Operating Leases $402,589 312.768 11,235 361 361 5,408 $732,722 SOLID WASTE LANDFILL CLOSURE AND POSTCLOSURE CARE COSTS Hilo Landfill The County owns and operates a landfill located in the city of Hilo State and federal laws require the County to place covers on certain landfill sites and to monitor and maintain the sites for thirty years after the facility is closed Although the closure and postclosure care costs will be paid near and atter the date that the landfill stops accepting waste, the County recognizes a portion of the closure and postclosure care costs in each operating period The liability for these costs is included in the general long-term debt account group The amount recognized each vear is based on the landfill capacity used as of the balance sheet date At June 30, 2000, the County recognized a liability of $13,210,000, based on the use of 95% of the estimated capacity of the landfill During the fiscal year ended June 30, 2000, $51,077 was spent on closure of the landfill The remaining $663,366 in estimated cost of closure and postclosure care will be recognized as the remaining estimated capacity is used These amounts are based on what it would cost to perform the required closure and postclosure care in 2000 Actual costs at that time may be higher due to inflation, changes in technology, or changes in regulations The County's permit to operate the landfill expired October 9, 1998 The County has filed for an extension which is pending approval by the state In accordance with state statute, the County is allowed to continue operations proN, ided that the County acts consistently with the permit previously granted and the extension application, plans, specifications and all other information contained therein The County expects the extension to be granted 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, the County anticipates monitoring and maintaining -49- COUNTY OF HAWAI'l Notes to the Combined Financial Statements June 30. 2000 the site for thirty years because there is presently a subterranean fire which requires active management The estimated cost of closure and postclosure is $15,250,000, based on what it would cost to perform the required closure and postclosure care in 2000 Actual :osts may be higher due to inflation, changes in technology, or changes in regulations Through June 30, 2000, S6,198,000 was spent on closure and postclosure care of the landfill The remaining estimated liability of $9,052,000 is included in the general long-term debt account group During the year ended June 30, 2000, a total of $65,424 was spent on this landfill This amount was for the management of the subterranean fire The County is providing financial assurance for postclosure care and remediation through self insurance as explained below 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 combined financial statements Financial Assurance For fiscal year 2000, 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 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 goverments 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 9. 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 both primary government and component unit activities (see Note 16) The following is a summary of general obligation bond transactions reported in the general long-term debt account group for the County for the fiscal year ended June 30, 2000 -50- COUNTY OF HAWAII Notes to the Combined Financial Statements June 30, 2000 Bonds payable at July 1, 1999 Bonds issued Bonds retired Bonds defeased Bonds payable at June 30, 2000 $114,086,500 48,940,000 (7,065 500) (18,355,000) S 137,606,000 General obligation bonds payable reported in the general long-term debt account group at June 30, 2000 are comprised of the following individual issues Public improvement andi'or refunding bonds 1977 Senes A at 5 0%, due through 2012 $ 276,000 1989 Refunding at 6 65% to 6 95%, due through 2004 1,350,000 1993 Refunding & PI at 4 8% to 5 6%. due through 2013 57,220,000 1996 Senes A at 5 5%, due through 2016 27,795,000 1996 Senes B at 4 5%, due through 2016 680,500 1997 Senes A at 4 875%, due through 2017 3,614,500 1999 Senes A at 4 375% to 6 0%, due through 2019 30,000,000 1999 Refunding at 4 25% to 4 875%, due through 2007 16.670.000 Total general government $137,606,000 Annual debt service requirements to matunty for the above general obligation bonds including interest payments of $63,331,020, are as follows Fiscal year ending June 30 2001 $ 14,256,692 2002 14,229,544 2003 15,322,197 2004 14,848,491 2005 14,850,760 Thereafter 127,429,336 Total 5200,937,020 Bonds Authorized and Unissued The County Council has authorized the issuance of $1 8 million in general obligation bonds to finance a portion of the cost of constructing a police prearraignment detention facility These bonds will be sold to the United States Department of Agnculture under its Federal Consolidated Farm and Rural Development Act loan program At June 30, 2000, these authonzed bonds were unissued -51- COLTNTY OF HAWAII Notes to the Combined Financial Statements June 30. 2000 Subsequent Event On August 11, 2000, the County Council authorized the issuance of $8 million in general obligation bonds to finance a radio communication system to be used by agencies of the County Refunded Bonds In fiscal 2000, the County issued $18,940,000 in refunding bonds as part of its 1999 series general obligation issue The refunding bonds have an average interest rate of 4 74% and were issued to advance refund the $18,355,000 outstanding balance of the 1978 refunding bond general obligation issue The bonds refunded bore interest at rates ranging from 5 00% to 6 50% The net proceeds of $18,775,575 (after payment of $164,425 in underwriting fees, insurance and other issuance costs) was used to purchase United States government securities Those securities were deposited in an irrevocable trust with an escrow agent to provide for full payment of all outstanding refunded bonds on October 15, 1999 The County's total debt service requirements over the next eight years decreased by $1,313,029 as a result of the refunding, and the net economic gain (difference between the present values on the old and new debt) after taking into account all allocable costs of issuance of the bonds was $1,110,488 By refunding the 1978 refunding bonds, 58 7 million in the 1978 sinking fund became available to the County to fund operations The County issued Public Improvement Refunding Bonds in 1993 The proceeds from the series were irrevocably deposited in a refunding trust The trust was set up to retire certain public improvement bonds of the County as maturites became due In June 2000, the trust was used to retire the remaining bonds defeased by this issue 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 fourteen projects approved for funding with these loans The schedule below shows the County's SRF transactions for the fiscal year ended June 30, 2000 -52- COUNTY OF HAWAYI Notes to the Combined Financial Statements June 30, 2000 Loans Approved Loan Balance 2,910,635 Loan Balance Authorized Amount July 1 1999 Additions Retirements June 30, 2000 Hilo WWTP $12,724,31 l S 9,657,038 S (5584.603) $ 9,072,435 Waiakea Mill 1,300,000 1,040,700 (58.036) 982,664 Waiakea Hslts 459,321 350,021 (21.189) 328,832 Waiakea Hslts II 5,024,266 -- 3,713,519 (57,439) 3,656.080 Ainako A&B 2,374,000 1,825,178 -- (101,512) 1,723,666 Kalamanaole 1,499,944 1,339,819 (63,794) 1,276,025 Alit Drive A&B 3,210,243 2,390,614 (130,590) 2,260,024 Alit Drive C&D 3,780,000 3,294,741 (169,616) 3,125,125 Alit Drive E&F 2,300,000 1,723,504 -- (79,138) 1,644,366 Waiaha Bay 3,697,893 3,022,735 219 320 (152,351) 3,089,704 Kealakehe 1,300,071 1,038,805 -- (57,931) 980,874 Holualoa Bay 3,080,000 2,806,712 65,423 (125,148) 2,746,987 Paukaa CCS 2,143,448 384,159 1,531.956 (21,422) 1,894,693 Pahoehoe 3,000,000 -- -- -- 545,893,497 $28,874,026 $5,530,218(51,622,769) $32,781.475 The loans bear interest at 2 06% to 3 02%, exclusive of a 100% loan fee, and require payments through fiscal year 2019 Debt service to maturity, including interest and loan fees of $10,584,398, is given below for the disbursements to date on these projects Fiscal year ending June 30 2001 S 2,898,261 2002 2,910,635 2003 2,908,248 2004 2,905,802 2005 2,903,293 Thereafter 28,839,634 Total $43,365,873 - 53 - COUNTY OF HAWAI'i Notes to the Combined Financial Statements June 30, 2000 Other General Long-term Debt The following is a summary of other general long-term debt transactions for the fiscal year ended June 30, 2000 Compensated absences Claims and judgments (see Note 14) Capital lease obligations (see Note 7) Landfill closure costs (see Note 8) Total Balance Deductions July 1, 1999 Additions & Payments $17,145,184 $ 1,542,346 S 9,888,528 7,100.409 369,177 2,676,995 (5,058,263) (173,494) Balance June 30, 2000 $18,68',530 11,930,674 2,872,678 22,048,000 330,501 (116.501) 22,262,000 549,450,889 $11,650.251 ($5,348.258) $55,752,882 Fund Balances - Debt Service Funds The fund balance in the debt service funds at June 30, 2000 includes $9,785,133 which is available for principal payments on general obligation bonds and $115,552 which is set aside for the payment of interest on the bonds The amount available for principal payments also appears in the general long-term debt account group as "Amount Available in Debt Service Funds " Enterprise Fund Notes Payable The Kulaimano Elderly Housing Project is indebted to the U S Department of Agriculture, Farmers Home Administration on two notes payable with balances aggregating $1,135.139 at June 30, 2000 The notes, which mature in September 2029, are repayable in monthly installments of $7,826 including interest and are collateralized by substantially all of the project's property and equipment Although the stated annual rate of interest on the notes is 9%, such rate is reduced to 7% for as long as the Project has a U S Department of Housing and Urban Development Section 8 Housing Assistance Payment contract in effect for all or part of the units within the Project Special Assessment Bonds The County has outstanding special assessment bonds for one improvement district In 1991, the County issued $14 million of special assessment bonds for Improvement District No 17, Kaloko Subdivision, to finance a roadway and water system The bonds mature annually through 2011 and bear interest at 9 5% -54- COUNTY OF HAWAI'l (Votes to the Combined Financial Statements June 30 2000 Total special assessment bonds payable were $11,305,000 at June 30, 2000 These are not general obligation bonds and the County is not obligated in any manner for the repayment of these bonds 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 appropnate dates and, if required, administer foreclosure proceedings Accordingly, these bonds are not reflected on the County's combined financial statements The following is a summary of special assessment bond transactions for Improvement Distnct No 17, Kaloko Subdivision, for the fiscal year ended June 30, 2000 Balance at July 1, 1999 511,800,000 Deductions — maturities (495,000) Balance at June 30. 2000 $11,305,000 The following is a summary of the annual maturities including interest of $7,582,663 for special assessment bonds Year ending June 30 2001 $ 1,593,088 2002 1,588,938 2003 1,589,563 2004 1,584,488 2005 1,583,238 Thereafter 10,948,348 Total $18,887,663 10. CONTRIBUTED CAPITAL Contributed capital of $411,296 at June 30, 2000 in the Kulaimano Elderly Housing Project represents contnbutions from private and government sources at the inception of the project Contnbuted capital of $544,367 in the Ouli Ekahi Affordable Housing Project at June 30, 2000 represents contnbutions received from developers There were no changes in contnbuted capital in either fund dunng the year -55- COL?NTY OF HAWAII Notes to the Combined Financial Statements June 30, 2000 11. SEGMENT INFORMATION- ENTERPRISE FUNDS The County maintains two enterprise funds The Kulaimano Elderly Housing Project (KEHP) provides low-income rental housing for senior citizens The Outt Ekaht Affordable Housing Project (OEAHP) provides affordable single-family rental housing to qualifying tenants Selected segment information for the fiscal year ended June 30, 2000 is as follows 12. FUND EQUITY Designated Fund Balance A designation of unreserved fund balance indicates tentative plans for the use of current KEHP OEAHP Total Operating revenues $234,925 $202,456 $437,381 Depreciation 34,470 32,354 34,470 Operating income (loss) 56,405 (3,411) 52,994 Net income (loss) 6,586 (2,937) 3,649 Net working capital 742,026 19.256 761,282 Fixed assets, net 1,001,186 503,877 1,505,063 Total assets 1,962,725 563,793 2,526,518 Long-term notes payable 1,135,139 1,135,139 Total equity 795,704 538,121 1,333,825 12. FUND EQUITY Designated Fund Balance A designation of unreserved fund balance indicates tentative plans for the use of current financial resources in the future Designated fund balances at June 30, 2000 consist of the following General fund Imprest and change funds $ 25,695 Drug enforcement 32,354 Special duty police program 321,731 Future year expenditures 13,392,880 Claims and Judgments 2,278,734 Total general fund $16,051,394 Special revenue funds Equipment replacement 3,087,246 Imprest fund 2,400 Future year expenditures 1,780,000 Future project 1,000 Total special revenue funds 4,870,646 -56- COUNTY OF HAWAII Notes to the Combined Financial Statements June 30, 2000 Capital projects funds Road repairs 3,928,183 Development impact 1,020,806 SRF (wastewater) projects 338,599 Total capital projects funds Trust and agency funds Revenue Imprest fund 100 Affordable housing 349,785 Future year expenditures 454,671 Total trust and agency funds Funds Total designated fund balance Funds Reserved Fund Balance 5,28'7,588 804,556 $27,014,184 Reserved fund balance represents that portion of fund balance that is either not available for appropriation or is legally segregated for a specific future use Fund balances reserved at June 30, 2000 are composed of the following Retained Earnings At June 30, 2000, the Kulaimano Elderly Housing Project reported retained earnings reserved for debt service in the amount of $172,541 and unreserved retained earnings of $211,867 The Ouli Ekahi Affordable Housing Project reported an accumulated deficit of $6,246 at June 30, 2000 57- Special Debt Capital Trust and General Revenue Service Projects Agency Fund Funds Funds Funds Funds Total Reserved for Encumbrances $5,574,668 53,460,740 S -- 515,481,371 53,520,170 523,036,949 Unexpended allotments -- -- -- 15,112,636 -- 1i,112,636 Road repairs -- 127,178 -- -- -- 127,178 Inventories 2,161,257 -- -- -- -- 2,161,25' Debt service -- -- 9,900,685 -- -- 0-900,685 Taxi invest 40,410 -- -- -- -- 40,410 Grants 6,227 -- -- -- -- 6,227 Liquor control 670,552 - _ -- -- - _ 670,552 Total reserved fund balance $8,453,114 53,587,918 $9,900,685 $30594,007 $3,520,170 S56,055,894 Retained Earnings At June 30, 2000, the Kulaimano Elderly Housing Project reported retained earnings reserved for debt service in the amount of $172,541 and unreserved retained earnings of $211,867 The Ouli Ekahi Affordable Housing Project reported an accumulated deficit of $6,246 at June 30, 2000 57- COLNTY OF HAWAII Notes to the Combined Financial Statements June 30, 2000 13. COMMITMENTS AND CONTINGENCIES Contractual commitments — Contractual commitments for capital projects, expenses, and supplies at June 30, 2000, except in the enterprise funds, are reflected in the combined financial statements as fund balance reserved for encumbrances 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 grant In the opinion of management of the County, disallowed costs, it 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 in the general long-term debt account group (see Note 14) Although the outcome of the various claims and lawsuits is not presently determinable, in the opinion of the County's attorneys, the resolution of such matters will not have a material adverse affect on the financial condition of the County Collective bargaining — The collective bargaining agreements covering firefighters and blue collar government workers statewide expired June 30, 1999 At this time, it is unknown what the settlements will call for or what impact they will have on the County's finances Managed process for public competition — The 1998 session of the state legislature passed a bill mandating that a multi-junsdictional committee be formed to establish policies and procedures to implement a managed process for public competition in the procurement of services by the state and the four counties The purpose of this process is to determine whether a particular service can be provided more effectively, efficiently and economically by a public agency or a private enterprise It is the legislature's intent that this process be fully implemented by June 30, 2001 A managed process for public competition may require cost accounting capability that the County does not presently have The cost to the County to develop a system to provide the necessary data cannot be determined until the legislature acts on the recommendations of the multi -jurisdictional committee and adopts policies and procedures Also, the fiscal impact of the managed process itself cannot be determined at this time ADA compliance — The County has been under two stipulated agreements signed by federal court to implement provisions of the Americans with Disabilities Act, and has complied with the terms of both Last year, the County complied with the terms of the first stipulated agreement relating to curb cuts The County, with the help of a consultant, surveyed 669 intersections, then ranked them in order of priority A transition plan, along with a funding R" COUNTY OF HAWAII Notes to the Combined Financial Statements June 30, 2000 commitment, was approved by the County Council The total cost of all curb cuts is estimated to be $6 2 million The cost of the first phase of the plan is $3 million, which will be used in high priority areas such as government facilities, schools, and hospitals The remaining cost will cover curb cuts at parks and in low-density single family residential areas All corrective action must be completed by the year 2005, with an estimated 308 intersections to be modified Funding allocated so far for this effort is S2 million The second stipulated agreement relates to the Department of Parks and Recreation (the Parks Department) The agreement required the Parks Department 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 has been completed and approved by the County Council The cost impact of implementation is not material because the necessary modifications are primarily procedural This is an ongoing effort The second part of this stipulated agreement is the reevaluation of all County facilities, which was completed and was accepted by the County Council on June 30, 2000 Approximately 240 County facilities were surveyed this year as part of this effort The tentative completion date of all necessary repairs and renovations is 10 years from the date the County Council accepted the self-evaluation The estimated cost of the facilities repairs is $14 8 million, which will be spent over the 10 year period Funding allocated so far for facilities repairs is S2 million, with $4 million federal funding anticipated through community development block grants over the next 5 years 14. RISK MANAGEMENT The County is exposed to various risks of losses related to torts, theft of, damage to, and destruction of assets, errors and omissions, injuries to employees, and natural disasters The County maintains fire and commercial multiple peril insurance on County facilities, flood insurance on selected structures, medical malpractice insurance for emergency medical technicians, general liability insurance for water safety officers, aviation liability for helicopter operations, automobile coverage on transit buses, and no-fault insurance coverage for privately owned police vehicles There was no reduction in insurance coverage during the year from coverage in the prior year During the past three fiscal years, the amount of settlements in cases covered by insurance have not exceeded the insurance coverage The County is substantially self-insured for its vehicles as well as for all other penls including workers' compensation and general liability The County currently reports all of its risk management activities in its general fund except for workers' compensation, which is paid by the fund that employed the injured worker 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 -59- COUNTY OF HAWAII Notes to the Combined Financial Statements June 30, 2000 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 in the general long-term debt account group because it is not expected to be liquidated with expendable financial resources At June 30, 2000, the amount of this liability was $11.930,674 This is the County's best estimate based on available information Changes in the reported liability since July 1, 1998 are given below Balance at July 1, 1998 Incurred claims (including IBNR)* Claim payments Balance at June 30, 1999 Incurred claims (including IBNR)• Claim payments Balance at June 30, 2000 General Workers' Total Liabili_ty Compensation Liabili $2,489,642 $5,848,019 $8,337,661 2,365,463 2,757,395 5,122,858 (1,082,147)2.4( 89,844) (3.571,991) 3,772,958 6,115,570 9,888,528 3,302,720 3,797,689 7,100,409 2,4( 02,830) 2,6( 55,433) (5,058,263) $4,672,848 $7,257,826 $11,930,674 *Net of new claims liability and old claims resolved at less than previous estimate 15. EMPLOYEE BENEFIT PLANS Pension Plan Plan description All full-time employees of the County participate in the Employees' Retirement System of the State of Hawai i (System), a cost-sharing multiple -employer defined benefit pension plan The System was established by Chapter 88 of the Hawai'i Revised Statutes (HRS) and is governed by a Board of Trustees All contributions, benefits and eligibility requirements are established by Chapter 88, HRS, and can be amended by legislative action The System regards the County, including its component unit, as one employer Therefore, separate information for the primary government and its component unit is not available All information given below on the pension plan is for the reporting entity as a whole, including both the primary government and its component unit All of the County's full-time employees are eligible to participate in the System The System consists of a contributory retirement plan and a noncontributory retirement plan Eligible employees, in service and a member of the existing contributory plan on June 30, 1984, were given an option to remain in the existing plan or Join the noncontributory plan, COUNTY OF HAWAII Notes to the Combined Financial Statements June 30. 2000 effective January 1, 1985 All new eligible employees hired after June 30, 1984 generally become members of the noncontributory plan Both plans provide death and disability benefits and a cost of living adjustment In the contributory plan, employees generally may elect normal retirement at age 55 with 5 or 10 years of credited service or elect early retirement at any age with 25 years of credited service Such employees are generally entitled to retirement benefits, payable monthly for life, of 2% or 2; % of their average final salary, as defined, for each year of credited service with certain limitations Benefits fully vest on reaching five years of service, retirement benefits are reduced for early retirement In the noncontributory plan, employees may elect normal retirement at age 62 with 10 years of credited service or at age 55 with 30 years of credited service, or elect early retirement at age 55 with 20 years of credited service Such employees are entitled to retirement benefits, payable monthly for life, of 1 25% of their average final salary, as defined, for each year of credited service Benefits fully vest on reaching ten years of service, retirement benefits are reduced for early retirement The System issues a Comprehensive Annual Financial Report that may be obtained by writing to the Employees' Retirement System of the State of Hawai' i, 201 Merchant Street, Suite 1400, Honolulu, Hawaii 96813 Funding policy All funding requirements are established by Chapter 88, HRS, and can be amended by the state legislature Covered contributory plan employees are required to contribute 7 8% or 12 2% of their salary to the plan, the County is required to contribute the remaining amounts necessary to pay contributory plan benefits when due The County is also required to contribute all amounts necessary to pay noncontributory benefits when due The County's contribution requirements are actuarially determined based on actuarial assumptions established by Chapter 88, HRS The County's contnbutions to the System for the fiscal years ended June 30, 1998, 1999 and 2000 were $11,460,200, $6,490,200, and $2,105,000 respectively, equal to the required contributions for each year Subsequent event The 2000 state legislature passed a measure amending state statutes relating to the actuarial assumptions of the System This amendment will reduce the County's employer contnbution for the fiscal year ending June 30, 2001, to $129,000 Post -Retirement Benefits in addition to providing the pension benefits described above, the County is required by state statute to contribute to the Hawai'i Public Employees Health Fund (Health Fund), a statewide program which provides health and group life insurance for all retired and active County employees, their dependents and their beneficiaries The state and other counties also participate in the fund For employees hired prior to July 1, 1996 who retire with at least ten years of credited service, the County is required to pay 100% of the premiums of the medical, adult dental, prescription drug, vision, and group life insurance plans elected by -61- COUNTY OF HAWAII Notes to the Combined Financial Statements June 30, 2000 the retiree For employees hired prior to July 1, 1996 who retire with less than ten years of credited service, the County is required to pay half of the monthly premium cost of the above plans For employees hired July I, 1996 or atter, the amount of the premium cost the County is required to pay varies depending on the employee's years of service at the time of retirement Currently, the County has 976 former employees who have retired with at least ten years of credited service and are receiving the full benefit 4n additional six employees have retired with less than ten years of service and have half of their medical premiums paid by the County For each retiree and retiree's spouse eligible for Medicare, the County also pays $45 50 per month as reimbursement of their Medicare premiums The County's contribution is recorded as an expenditure when paid The amount of the contribution is limited by state statute to the actual cost of benefit coverage During the fiscal year ended June 30, 2000, the County's contribution to the Health Fund for retired employees totaled $4 6 million 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, in accordance with GASB Statement No 32, Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans, deferred compensation plan assets are not reported in the accompanying combined financial statements 16. COMPONENT UNIT DISCLOSURES Cash and Investments For purposes of the statement of cash Flows, the Department of Water Supply (the Department) considers all highly liquid investments with original matunties of three months or less to be cash equivalents However, for the required GASB Statement No 3 disclosures, all bank TCDs are considered deposits The amount of $295,367 shown on the 62- COUNTY OF HAWAII Notes to the Combined Financial Statements June 30. 2000 balance sheet as cash and cash equivalents consists of cash on hand ("deposit in transit) of $220,152 and balance in the checking account of 575.215 Deposits At June 30, 2000 the carrying amount of the Department's deposits was $26,413,155 and the bank balance was $26.440,647 The entire bank balance was covered by collateral held by the County's agent in the County's name in accordance with state statutes This deposit amount includes cash received by the Department that is refundable or restricted as to use, and is recorded as a restricted asset Such funds amounted to $8,623,143 at June 30, 2000 Loans Receivable At June 30, 2000, loans receivable from various community associations for water system improvements were as follows Paauilo Camp Community Association $318,800 Paauhau Village Community Association 326,580 Ookala Community Association 110,820 Total $756.200 Fixed Assets 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 Depreciation on the Department utility plant assets in service is computed using the straight- line method over the estimated useful lives of the assets as follows Structures and improvements 40 to 50 years Machinery and equipment 5 to 20 years Water systems 10 to 40 years Depreciation expense on assets acquired with contributions in aid of construction is charged to contributed capital 63- COUNTY OF HAWAII Notes to the Combined Financial Statements June 30, 2000 The fixed assets of the Department at June 30, 2000 were as follows Utility plant in service 5208 921,268 Less accumulated depreciation (79,960,664) 2003 128 960,604 Construction in progress 18,071,859 Net fixed assets 5147,032,463 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 $11,649,200 at June 30, 2000 General obligation bonds payable issued on behalf of the Department at June 30, 2000 are comprised of the following individual issues Public improvement bonds 1981 Series A at 5 0%, due through 2016 S 503,000 1993 Series A at 3 8% to 5 6%, due through 2013 8,040,000 1998 Series A at 4 5%, due through 2033 756,200 Total public improvement bonds 9,299,200 Public improvement refunding bonds 1989 Series at 6 2% to 6 95%, due through 2004 2,350,000 Total S 11,649,200 Annual debt service requirements to maturity for these general obligation bonds, including interest payments of $4,782,264, are as follows Fiscal year ending June 30 2001 S 1,563,970 2002 1,536,998 2003 1,504,664 2004 1,527,730 2005 1,490,779 Thereafter 8,807,323 Total $16,431,464 IME COUNTY OF HAWAII Notes to the Combined Financial Statements June 30, 2000 Contributed Capital The following is a summary of contributed capital of the Department for the fiscal year ended June 30, 2000 Commitments and Contingent Liabilities Claims and judgments - The Department is self-insured for workers' compensation and other penis The liability at June 30, 2000 for workers' compensation claims of $222,000 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 approximated $12,000,000 at June 30, 2000 -65- Balance Balance July 1, June 30, 1999 Additions 2000 Contributed by County ofHawai'i S 1,132,683 $ -- $ 1,132,683 Contributions in aid of construction Federal government 5,847,814 105,473 5,953,287 State of Hawat'i 52,246,865 -- 52.246,865 County of Hawaii 8,331,584 -- 8,331,584 Non-government 97,333,149 5,391,640 102,724,789 Total conmbutions in aid of construction 163,759,412 5,497,113 169,256,525 Less accumulated depreciation (58,830,420) (5,314.304) (64,144 724) Net contributions in aid of construction 104,928,992 182.809 105,111,801 Contributed capital $106,061,675 $ 182,809 $106,244,484 Capital of $1,132,683 contributed by the County to the Department represents utility plant in service transferred from the County to the Department at its inception on January 1, 1950 Commitments and Contingent Liabilities Claims and judgments - The Department is self-insured for workers' compensation and other penis The liability at June 30, 2000 for workers' compensation claims of $222,000 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 approximated $12,000,000 at June 30, 2000 -65- This page intentionally left blank GENERAL FUND The General Fund accounts for all financial resources except those required to be accounted for in another fund COUNTY OF HAS§'AII (Concluded) General Fund Comparative Balance Sheets June 30, 2000 and 1999 EM 2000 1999 Liabilities and Fund Balance Liabilities Warrants payable S 2,106,811 S 2,702,483 Accounts payable 979,708 1,591,361 Employee costs payable -- 2,465,326 Due to other funds 3,162,429 3,037,382 Due to federal government - arbitrage rebate 358,074 253,620 Deferred revenue Real property taxes 10.547,484 10,887,608 Liquor control revenue 156,210 157,010 Intergovernmental 968,202 656,438 Total deferred revenue 11,671,896 11,701,056 Other 698,292 602,798 Total liabilities 18,9',7,210 22,354,026 Fund balance Reserved for Encumbrances 5,574,668 5,942,392 Inventones 2.161,257 2,139,769 Taxicab investigations 40,410 23,950 Grants 6,227 4,920 Liquor control 670,552 516,164 Total reserved fund balance 8,453,114 8,627,195 Unreserved Designated for Imprest and change funds 25,695 25,695 Drug enforcement 32,354 32,354 Special duty police program 321,731 275,202 Future year expenditures 13,392,880 10,100,000 Claims and Judgments 2,278,734 1,200,398 Total designated fund balance 16,051,394 11,633,649 Undesignated 49,591 1,299,961 Total fund balance 24,554,099 21,560,805 Total liabilities and fund balance 543,531,309 $43,914,831 EM COUNTY OF HAWAII General Fund Comparative Statements of Revenues, Expenditures and Changes in Fund Balances For the Fiscal Years Ended June 30, 2000 and 1999 2000 1999 Revenues Taxes and assessments 583,270,529 $84,791,838 Licenses and permits 3,813,132 3,708,264 Intergovernmental 32,152,183 34,565,760 Charges for current services 2,426,864 1,764,116 Fines and forfeitures 401,781 351,714 Rents 120,744 113,433 Interest and penalties 4,922,950 4,611,786 Miscellaneous 989,225 2,747,417 Total revenues 128,097.408 132,654,328 Expenditures Current General government 21,432,976 20,470,921 Public safety 55,784,371 53,270,672 Highways and streets 1,518,667 1,789,072 Health, education and welfare 5,076,128 5,306,198 Culture and recreation 10,736,652 11,477,152 Pension and retirement contributions 5,036,367 8,692,236 Health fund 8,646,361 8,389,666 Miscellaneous 3,177,419 3,031,288 Capital outlay 2,748,158 3,657,706 Debt service Interest and finance charges 64,789 16,947 Principal retirement 173,494 31,158 Total expenditures 114,395,382 116,133,016 Excess of revenues over expenditures 13,702,026 16,521,312 Other financing sources (uses) Sale of general fixed assets 28,387 53,668 Increase to capital leases 2,676,995 -- Operating transfers to 494,431 3,553,987 Operating transfers out (22,632,046) (24,132,945) Total other financing uses (19,432,233) (20,525,290) Deficiency of revenues and other sources over expenditures and other uses (5,730,207) (4,003,978) Fund balance at beginning of year 21,560,805 25,455,132 Residual equity transfer to 8.702,013 -- Increase to reserve for inventories 21 488 109,651 Fund balance at end of year $24,554,099 $21,560,805 COUNTY OF HAWAII General Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual (Budgetary Basis) For the Fiscal Year Ended June 30, 2000 Revenues Taxes and assessments - real property taxes Licenses and permits Budget Variance Favorable Actual (Unfavorable) $82,248,000 $83,270,529 S 1,022,529 Nonbusiness Licenses and permits 2,346,040 2,603,511 257,471 Business licenses 969,781 908,213 (61,568) Street use 276,500 301,408 24,908 Total licenses and permits 3,592,321 3,813,132 220,811 Intergovernmental Federal Programs for the aged 1,184,307 1,151,669 (32,638) Community development block grants 2,201,000 2,201,000 Civil defense 108,065 100,038 (8,027) Law enforcement 2,338,270 1,885,525 452,745) Other 2,863,097 2,649,913 (213,184) Total federal 8,694,739 7,988,145 (706,594) State State General Fund - Act 185, SLH 1990 12.974,000 14,049,132 1,075,132 Emergency medical services 7,942,033 7,486,030 (456,003) Other 3,831,751 2,959,977 (871,774) Child support enforcement 879,547 952,509 72,962 Total State 25,627,331 25,447,648 (179,683) Total intergovernmental revenue 34.322,070 33,435,793 (886,277) Charges for current services General government 1.173,209 1,385,390 212,181 Culture and recreation 482,277 557,435 75,158 Highways and streets 327,000 469,042 142,042 Public safety 19,000 14,997 (4,003) Total charges for current services 2,001,486 2,426,864 425,378 Fines and forfeitures 797,300 401,781 (395,519) Rents 170,800 120,744 (50,056) (Continued) -70- COUNTY OF HAWAII General Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual (Budgetary Basis) For the Fiscal Year Ended June 30, 2000 Public safety Police department 32,132,243 30,591,194 anance Fire department 11,698,093 17,024,966 Favorable Prosecuting attorney Budget Actual (Unfavorable) Revenues (continued) 1,511,156 1,492,674 18,482 Interest and penalties 4.500,000 4,835,685 335,685 Miscellaneous 3,408,783 2,607,739 (801,044) Total revenues 131.040,760 130,912,267 (128,493) Expenditures 627,250 627,250 -- Current 240,472 233,068 7,404 General government 58.846,007 55,644,428 3,201,579 Finance 5,462,985 5,022,792 440,193 Automotive equipment 1,899,577 1,893,489 6,088 General government building 1,840,591 1,743,794 96,797 Legislative 2,828,037 1,779,797 1,048,240 Law 3,263,137 3,196,003 67,134 Planning and zoning 1,537,872 1,390,670 147,202 Research and development 1,724,948 1,489,839 235,109 Mayor's office 978,683 945,256 33,427 Engineenng 1,006,005 992,402 13,603 Personnel services 781,140 716,814 64,326 Chief engineer 674,048 661,182 12.866 Data Systems 740,107 667,580 72,527 Elections 506,918 446,172 60,746 Total general government 23,244,048 20,945,790 2,298,258 Public safety Police department 32,132,243 30,591,194 1,541,049 Fire department 11,698,093 17,024,966 673.127 Prosecuting attorney 5,128,536 4,373,547 754,989 Protective inspection 1,511,156 1,492,674 18,482 Liquor control 965,181 798,665 166,516 Flood control 84,054 62,667 21,387 Civil defense agency 459,022 440,397 18,625 Humane Society 627,250 627,250 -- Industrial safety 240,472 233,068 7,404 Total public safety 58.846,007 55,644,428 3,201,579 Highways and streets Mass transit 1,584,979 1,584,978 1 (Continued) -71 - COUNTY OF HAWAII General Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual (Budgetary Basis) For the Fiscal Year Ended June 30, 2000 (Continued) -72- Variance Favorable Budget Actual (_Unfavorable) Expenditures (continued) Current (continued) Health, education and welfare Office of Aging 1.361,344 1,302,727 58,617 Elderly Activities 2.705,950 2,556,021 149.929 Education 55,000 47,531 7,469 Social programs 900,000 871,350 28,650 Cemeteries 296,745 283,514 13.231 Physical examination 101,286 100.564 722 Total health, education and welfare 5,420,325 5,161,707 258,618 Culture and recreation Community music 145,834 141,931 3,903 Organized recreation Maintenance 4556,168 4,493,555 62,613 Recreation 1,787,017 1,745,115 41,902 Aquatics 2,558,334 2,289,981 268,353 Hoolulu Park complex 732,205 723,637 8.568 Administration 651,681 634,247 17,434 Children's zoo 500,202 474,062 26,140 Summer/Intersession 250,394 222,363 28,031 Culture and arts 113,204 110,530 2,674 Elderly activities administration 571,958 471,128 100,830 Total culture and recreation 11,866,997 11,306,549 560,448 Pension and retirement contributions 6,291,515 5,211,562 1,079.953 Health fund 8,587,799 8,556,350 31,449 Miscellaneous 7,536,899 3,186,377 4,350,522 Total current 123,378,569 111,597,741 11,780,828 Capital Outlay Community Development Block grants (HUD) CDBG 1995 (138,318) (138,318) -- CDBG 1996 (4,796) (4,796) CDBG 1997 82,488 82,488 CDBG 1998 60,626 60,626 CDBG 1999 20,429 20,429 CDBG 2000 2,209,500 2,209,500 Total Community Development Block Grants (HUD) 2,229,929 2,229,929 (Continued) -72- CO(JI ITY OF HAWAII General Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual (Budgetary Basis) For the Fiscal Year Ended June 30, 2000 73- Variance Favorable Budget Actual (Unfavorable) Expenditures (continued) Capital Outlay (continued) HOME Program 1 263,000 1,263,000 Total capital outlay 3.492,929 3,492,929 -- Total expenditures 126.871,498 115,090,670 11,780,828 Excess of revenues over expenditures 4,169,262 15,821,597 11,652,335 Other financing sources (uses) Operating transfers in Golf Course Fund 135,868 135,868 1978 Sinking Fund 9 154,754 9,060,576 (94,178) Total operating transfers in 9.290,622 9,196,444 (94,178) Operating transfers out Sewer -Fund (232,735) (232,735) -- Solid Waste Fund (6,076,623) (4,950,000) 1,126,623 Golf Course Fund (311,242) (311,242) -- Debt Service Fund (19,576,904) (18,728,196) 848,708 Total operating transfers out (26.197,504) (24,222,173) 1,975.331 Total other financing uses (16,906,882) (15,025,729) 1,881,153 Excess (deficiency) of revenues and other sources over expenditures and other uses (12.737,620) 795,868 13,533,488 Unbudgeted self-insurance activities -- 78,336 78,336 Fund balance at beginning of year 21.560,805 21,560,805 -- Fund balance at end of year $ 8.823,185 $22,435,009 $13.611,824 73- This page intentionally left blank -74- 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 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 SEWER FUND -Used to account for costs of operating the County's vanous sewerage systems Financing is provided by charges to users for sewer services BIKEWAY FUND - Used to accumulate moneys for the construction of bikeways within the County Financing is provided by bicycle license fees CEMETERY FUND - Used to accumulate moneys to guarantee the future maintenance of County cemetery sites Financing is provided from the sale of burial lots in County cemetenes 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 registranons 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 penmt fees GOLF COURSE FUND - Used to account for the cost of operating the Hilo Municipal Golf Course Funding is provided from green fees and payments from restaurant and pro shop concessionaires GEOTHERMAL RELOCATION REVOLVING FUND - Used to account for the County's share of geothermal resource royalties received from the operator of a geothermal power plant located in the County The funds are earmarked for a geothermal relocation program 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 This page intentionally left blank- -75- COUNTY OF HAWAII Special Revenue Funds Combining Balance Sheet June 30, 2000 (With comparative totals for June 30, 1999) -76- Parking Highway Meter Sewer Bikeway Cemetery Fund Fund Fund Fund Fund Assets Cash and cash equivalents $5,245,917 $34,609 $5,413,841 $95,8.31 552,450 Imprest fund -- 100 - Receivables Waste disposal charges receivable, net of allowance for doubtful accounts 850,580 Due from State of Hawaii -- - Due from federal government -- -- 55,490 Due from other funds 42,435 282 -- Other -- 251,205 Total receivables 42,435 -- 1,102,067 55,490 Total assets $5,288,352 $34,609 $6,516,011 $151,331 $52,450 Liabilities and Fund Balances Liabilities Warrants payable $ 272,541 $ $ 75,475 $ -- $ Accounts payable 171,477 196,744 5,903 Employee costs payable -- -- -- Due to other funds 554,501 139,121 Accrued liabilities -- -- Deferred revenue 850,580 -- Total liabilities 998,519 1,261,920 5,903 Fund balances Reserved for Encumbrances 1,144, 817 840,934 Road repairs 127,178 -- Total reserved fund balance 1,271,995 840,934 Unreserved Designated for Equipment replacement -- 3,087,246 Imprest fund -- 100 Future year expenditures 1,280,000 -- Future project 1,000 Total designated fund balance 1,281,000 3,087,346 -- Undesignated 1,736,838 34,609 1,325,811 145,428 52,450 Total fund balances 4,289,833 34,609 5,254,091 145,428 52,450 Total liabilities and fund balances $5,288,352 $34,609 $6,516,011 $151,331 $52,450 -76- Vehicle Solid Golf Geothermal Beauty Disposal Waste Course Relocation fication Fund Fund Fund Rev Fund Fund Totals 2000 1999 $534,889 $2,384.764 $101,181 5582,594 $424,969 $14,871,058 300 2.000 2,400 735,011 $ 460,667 1,585,591 5,000 $ 11,758 5,000 S 1,398,719 62,448 55,490 8,645 375 51,737 9,821 5,953 266,979 758,477 6,328 1,964,797 $534,889 $3,143,541 $109,509 $582,594 $424,969 $16,838,255 S16,429,835 2,200 1,683,452 16,156 45,024 278,432 2,023,064 $18,455,099 $130,408 $ 460,667 $ 3,237 $ 18 $ 11,758 S 954,104 S 1,398,719 62,448 470,278 810 2,002 938 910,600 930,691 1,349,571 3,071 209,292 44,611 950,596 1,113,140 8,797 903,191 1,753,771 2,011,690 195,927 2,043,428 48,658 2,020 12,696 4,569,071 6,812,608 11,200 852,461 225 609,541 1,562 3,460,740 3,490,071 127,178 11,200 852,461 225 609,541 1,562 3,587,918 3,490,071 3,087,246 1,929,172 300 2,000 2,400 200 200,000 200,000 100,000 1,780,000 1,424,715 1,000 1,000 200,000 200,300 2,000 100,000 4,870,646 3,355,087 127,762 47,352 58,626 (28,967) 310,711 3,810,620 4,797,333 338,962 1,100,113 60,851 580,574 412,273 12,269,184 11.642,491 $534,889 $3,143,541 $109,509 $582,594 $424,969 $16,838,255 $18,455,099 _77- COUNTY OF HAWAII Special Revenue Funds Combining Statement of Revenues. Expenditures and Changes in Fund Balances (Deficit) For the Fiscal Year Ended June 30, 2000 (With comparative totals for the fiscal year ended June 30, 1999) Expenditures 472.250 Parking 995,683 Highway deter Public safety Fund Fund Revenues Sanitation -- Taxes $ 10,052.977 $ Licenses and permits 2,728,637 329,042 Intergovernmental 202,000 -- Charges for current services 42.435 17,931 Miscellaneous 72,608 -- Total revenues 13,098,657 17,931 Expenditures 472.250 Current 995,683 General government -- Public safety 2,610,447 Highways and streets 6,339,490 Sanitation -- Health, education & welfare 2,602 Culture and recreation -- Pension and retirement contributions 329,042 Health fund 473,866 Miscellaneous 362,851 Debt service Interest charges -- Pnncipal retirement Total expenditures 10.118,298 Excess (deficiency) of revenues over expenditures 2.980,359 Other financing sources (uses) Operating transfers in General Fund -- Operating transfers out General Fund Capital Projects Fund (2,508,109) Total other financing sources (uses) (2,508,109) Excess (deficiency) of revenues and other Sewer Bikeway Cemetery Fund Fund Fund S $ -- S -- 81,622 73,197 4,825,076 -- -- 151,032 14,500 4,976,108 154,819 14,500 -- 79,880 3,452,272 -- 113,522 132,580 514,786 -- 4,213,160 79,880 17,931 762,948 74,939 14.500 232,735 232,735 sources over expenditures and other uses 472.250 17,931 995,683 74,939 14,500 Fund balances (deficit) at beginning of year 3,817,583 16,678 4,258,408 70,489 37,950 Fund balances at end of year $ 4,289,833 $34,609 $5,254,091 $145,428 $52,450 -78- Vehicle Solid Golf Geothermal Beauti- Totals Disposal Waste Course Relocation fication Fund Fund Fund Rev Fund Fund 2000 1999 $ S S S $ $ 10,052,977 $ 9,852,970 510,236 127,562 3,448,057 3,243,297 145.058 420,255 509,595 250 3,063,508 838 786 8,787,986 8,384,208 135 92 91 132,748 371,206 227,205 510,621 37208,658 838 877 132,748 127,562 23,080,481 22,217,215 8,957 8,957 326,171 2,610447 2,764,586 68,290 6,487,660 6,358,955 690,739 8,713,069 12,856,080 12,286,794 2,602 3,626 789,424 789,424 844,003 2,683 123,484 35,705 604,436 1,093,229 1,811 221,809 67,782 897,848 874,727 168,620 77 1,046,334 584,986 9,318 149,593 695,233 9,226,982 892,988 8,957 68,290 25,303,788 25,295,988 (184,612) (6,018,324) (54,111) 123,791 59,272 (2,223,307) (3,078,713) 4,950,000 311,242 5,493,977 8,461,672 (135,868) (135,868) (135,868) (2,508,109) (2,697,997) 4,950,000 175,374 2,850,000 5,627,807 (184,612) (1,068,324) 121,263 123,791 59,272 626,693 2,549,094 523,574 2,168,437 (60,412) 456,783 353,001 11,642,491 9,093,397 $338,962 $1,100,113 $60,851 $580.574 $ 412,273 $12,269,184 $11,642,491 79- COUNTY OF HAWAII Special Revenue Funds Combining Schedule of Revenues, Expenditures and Changes in Fund Balances (Deficit) - Budget and Actual (Budgetary Basis) For the Fiscal Year Ended June 30, 2000 Revenues Taxes Licenses and permits Intergovernmental Charges for current services Miscellaneous Total revenues Expenditures Current General government Public safety Highways and streets Sanitation Health, education & welfare Culture and recreation Pension and retirement contnbutions Health fund Miscellaneous Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses) Parking Meter Highway Fund Fund Sewer Fund Budye Actual Budget Actual Budget Actual $10,008,109 $10,052,977 $ $ $ $ 2,450,000 2,728,637 200,000 201.999 -- 100,000 42,434 17,931 4,430,509 4,825,076 39,939 72,609 -- 100 141,532 12,798,048 13,098,656 17,931 4,430,609 4,966,608 2,848,273 2,675,749 232,735 6,795.739 6,547,868 -- -- -- -- 4,272,805 4,162,732 6,000 2,602 -- -- 924,913 382,319 381,746 129,694 550,000 473,865 155,791 132.580 375,014 362,124 1,496,296 83,294 11,499,939 10,444,527 6,306,638 4,508.300 1,298,109 2,654,129 -- 17,931 (1,876,029) 458,308 Operating transfers in 232,735 232,735 Operating transfers out (2,508,109) (2,508,109) -- -- Total other financing sources (uses) (2,508,109) (2,508,109) -- 232,735 232,735 Excess (deficiency) of revenues and other sources over expenditures and other uses (1,210,000) 146,020 -- 17,931 (1,643,294) 691,043 Fund balances at beginning of year 3,817,583 3,817,583 16,678 16,678 4,258,408 4,258,408 Fund balances at end of year $2,607,583 $3,963,603 $16,678 $34,609 $2,615,114 $4,949,451 X9012 Bikeway Fund Cemetery Fund Vehicle Disposal Fund Solid Waste Fund Budget Actual Budge[ Actual Budget Actual Budget Actual S -- S -- $ $ S -- $ -- S -- $ -- 19,000 81,622 436,187 510,236 -- -- 77,000 74,847 -- -- 241,000 241,000 -- -- 100 250 2,615,000 3,063,508 -- -- 11,000 14,500 100 135 -- 92 96,000 156,469 11,000 14,500 436,387 510,621 2,856,000 3,304,600 -- -- -- -- -- -- -- -- -- -- 96,000 84,847 -- -- -- -- -- -- __ -- -- -- -- 657,202 597,392 9,547,942 9,332,119 -- -- -- -- -- 2,874 -- 2,874 -- 298,243 -- 143,476 1,812 1,812 223,438 221,809 -- 500 -- 200,000 153,044 96,000 84,847 662,388 602,078 10,269,623 9,850,448 -- 71,622 11,000 14,500 (226,001) (91.457) (7,413,623) (6,545,848) 6,092,623 4,950,000 -- -- -- -- -- -- -- -- 6,092,623 4,950,000 -- 71,622 11,000 14,500 (226,001) (91,457) (1,321,000) (1,595,848) 70,489 70,489 37,950 37,950 523,574 523,574 2,168,437 2,168,437 $70,489 $142,111 $48,950 $52,450 $297,573 $432,117 $847,437 $572,589 (Continued) I -M COLNTY OF HAWAII Special Revenue Funds Combining Schedule of Revenues, Expenditures and Changes in Fund Balances (Deficit) - Budget and Actual (Budgetary Bans) For the Fiscal Year Ended June 30, 2000 Excess (deficiency) of revenues over expenditures (231,072) (139,107) Geothermal Relocation 56,898 Other financing sources (uses) Golf Course Fund Revolving Fund Beautification Fund Operating transfers in Budget Actual Budget Actual Budget Actual Revenues Total other financing sources (uses) 175,374 175,374 Taxes $ S $ $ $ 5 Licenses and permits 36,267 (17,253) -- 56,898 Fund balances (deficit) at beginning of year 115,000 127,562 Intergovernmental 353.001 Funds balances (deficit) at end of year ($116,110) ($24,145) $456,783 - -- Charges for current services 828,740 838,787 -- -- Miscellaneous -- 91 150,000 132,747 - -- Total revenues 828,740 838,878 150,000 131747 115,000 127,562 Expenditures Current General government 150,000 150,000 Public safety -- -- Highways and streets 115,000 70,664 Sanitation -- -- Health, education & welfare -- -- Culture and recreation 887,237 868,147 Pension and retirement contributions 86,768 41,979 Health fund 69,807 67,782 Miscellaneous 16,000 77 -- -- Total expenditures 1,059,812 977,985 150,000 150,000 115,000 70,664 Excess (deficiency) of revenues over expenditures (231,072) (139,107) (17,253) 56,898 Other financing sources (uses) Operating transfers in 311,242 311,242 -- Operating transfers out (135,868) (135.868) Total other financing sources (uses) 175,374 175,374 -- Excess (deficiency) of revenues and other sources over expenditures and other uses (55,698) 36,267 (17,253) -- 56,898 Fund balances (deficit) at beginning of year (60,412) (60,412) 456,783 456,783 353,001 353.001 Funds balances (deficit) at end of year ($116,110) ($24,145) $456,783 $439,530 $353,001 $409,899 Em (Concluded) 'Dotal Special Revenue Funds Variance Favorable Budget Actual (Unfavorable) $10,008,109 $10,052,977 $44,868 3,020,187 3.448,057 427,870 518,000 517,846 (154) 7,974,349 8,787,986 813,637 201,139 361,706 160,567 21,721,784 23,168,572 1,446,788 150,000 150,000 -- 2,848,273 2,675,749 172,524 7,006,739 6,703,379 303,360 14,477,949 14,092,243 385,706 6,000 2,602 3,398 887,237 868,147 19,090 1,694,544 700,342 994,202 1,000,848 897,848 103,000 2,087,810 598,539 1.489,271 30,159,400 26,688,849 3,470,551 (8,437,616) (3,520,277) 4,917,339 11,642,491 11,642,491 -- 6,636,600 5,493,977 (1,142,623) (2,643,977) (2,643,977) 3,992,623 2,850,000 (1,142,623) (4,444,993) (670,277) 3,774,716 11,642,491 11,642,491 -- $7,197,498 $10,972,214 $3,774,716 Sam COUNTY OF HAWAII Highway Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual (Budgetary Basis) For the Fiscal Year Ended June 30, 2000 Expenditures Public safety - traffic engineenng 2.848,273 2,675,749 Variance Highways and streets 6795,739 6,547,868 Favorable Health, education & welfare Budget Actual (Unfavorable) Pension and retirement contnbutions Revenues 382,319 542,594 Health fund Taxes 473,865 76,135 Miscellaneous Fuel tax $ 5,808,109 $ 6,102,703 5294,594 Public utility franchise tax 4200,000 3,950,274 (249,726) Total taxes 10,008,109 10,052,977 44,868 Licenses and permits - motor vehicle weight tares 2,450,000 2.728,637 278,637 Intergovernmental 200,000 201,999 1.999 Charges for current services 100,000 42,434 (57,566) Miscellaneous 39,939 72,609 32,670 Total revenues 12,798,048 13,098,656 300,608 Expenditures Public safety - traffic engineenng 2.848,273 2,675,749 172,524 Highways and streets 6795,739 6,547,868 247,871 Health, education & welfare 6,000 2,602 3,398 Pension and retirement contnbutions 924,913 382,319 542,594 Health fund 550,000 473,865 76,135 Miscellaneous 375,014 362,124 12,890 Total expenditures 11.499,939 10,444,527 1,055,412 Excess of revenues over expenditures 1,298,109 2,654,129 1,356,020 Other financing uses - operating transfers out Capital Projects Fund (2,508,109) (2.508,109) -- Excess (deficiency) of revenues over expenditures and other uses (1,210,000) 146,020 1,356,020 Fund balance at beginning of year 3,817,583 3.817,583 -- Fund balance at end of year $ 2,607,583 $ 3.963.603 S 1,356,020 ME 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, 2000 Revenues Charges for current services - highways and streets Fund balance at beginning of year Fund balance at end of year RIM Variance Favorable Budget Actual (Unfavorable) $ -- $17,931 $ 17,931 16,678 16,678 -- S16,678 534,609 $17,931 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, 2000 Revenues Charges for current services - sewer fees Miscellaneous Total revenues Expenditures Sanitation Pension and retirement contributions Health fund Miscellaneous Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources Operating transfer in - General Fund Excess (deficiency) of revenues and other sources over expenditures Fund balance at beginning of year Fund balance at end of year 902 Variance Favorable Budget Actual (Unfavorable) $4,430,509 54,825,076 $ 394,567 100 141.532 141.432 4,430,609 4,966,608 535,999 4,272,805 4,162,732 110,073 381,746 129,694 252,052 155,791 132,580 23,211 1,496,296 83,294 1,413,002 6,306,638 4,508,300 1,798,338 (1,876,029) 458.308 2,334,337 232,735 232,735 -- (1,643,294) 691,043 2,334,337 4,258,408 4,258,408 -- $2,615,114 $4,949,451 $2,334,337 902 COUNTY OF HAW all Bikeway Fund Schedule of Re%enues, Expenditures and Changes in Fund Balance - Budget and Actual (Budgetary Basis) For the Fiscal Year Ended June 30, 2000 Variance Favorable Budget Actual (Unfavorable) Revenues Licenses and permits - bicycle tax $19,000 581,622 $62,622 Intergovernmental 77,000 74,847 (2,153) Total revenues 96,000 156,469 60,469 Expenditures - highways and streets 96,000 84,847 11,153 Excess of revenues over expenditures -- 71,622 71,622 Fund balance at beginning of year 70,489 70,489 -- Fund balance at end of year $70,489 $142,111 571,622 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, 2000 Revenues - miscellaneous - sale of cemetery plots Fund balance at beginning of year Fund balance at end of year Variance Favorable Budget Actual (Unfavorable) $ I1,000 $14,500 $3,500 37,950 37,950 -- $48,950 $52,450 $3,500 COUNTY OF HAWAII Vehicle Disposal Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual (Budgetary Basis) For the Fiscal Year Ended June 30, 2000 Variance Favorable Budget 4ctual (Unfavorable) Revenues Licenses and permits- vehicle disposal fee $436,187 5510,236 S 74,049 Charges for services - towing charges 100 250 150 Miscellaneous 100 135 35 Total revenues 436,387 510,621 74,234 Expenditures Sanitation 657,202 597,392 59,810 Pennon and retirement contributions 2,874 2,874 -- Health fund 1,812 1,812 -- Miscellaneous 500 -- 500 Total expenditures 662,388 602,078 60,310 Deficiency of revenues over expenditures (226,001) (91,457) 134,544 Fund balance at beginning of year 523,574 523,574 -- Fund balance at end of year $297,573 5432,117 $134,544 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, 2000 Variance Fallorable Budge Actual (Unfavorable) Revenues Intergovernmental $ 241,000 $ 241,000 $ -- Charges for services - tipping fees 1615,000 3,063,508 448,508 Miscellaneous -- 92 92 Total revenues 2,856,000 3,304,600 448,600 Expenditures Sanitation 9,547,942 9,332,119 215,823 Pension and retirement contributions 298,243 143,476 154,767 Health fund 223,438 221,809 1,629 Miscellaneous 200,000 153,044 46,956 Total expenditures 10,269,623 9,850,448 419,175 Deficiency of revenues over expenditures (7,413,623) (6,545,848) 867,775 Other financing sources - operating transfers in General Fund 6,092,623 4,950,000 (1,142,623) Deficiency of revenues and other sources over expenditures (1,321,000) (1,595,848) (274,848) Fund balance at beginning of year 2,168,437 2,168,437 Fund balance at end of year $ 847,437 $572,589 ($274,848) 0 COUNTY OF HAWAII Golf Course Fund Schedule of Revenues, Expenditures and Changes in Fund Deficit - Budget and Actual (Budgetary Basis) For the Fiscal Year Ended June 30, 2000 Variance Favorable Budget Actual Unfavorable Revenues Charges for services $828,740 $838,787 $ 10,047 Miscellaneous -- 91 91 Total revenues 828,740 838,878 10,138 Expenditures Culture and recreation 887,237 868,147 19,090 Pension and retirement contributions 86,768 41,979 44,789 Health fund 69,807 67,782 2,025 Miscellaneous 16,000 77 15,923 Total expenditures 1,059.812 977,985 81,827 Deficiency of revenues over expenditures (231,072) (139,107) 91,965 Other financing sources (uses) Operating transfers in - General Fund 311,242 311,242 -- Operating transfers out- General Fund (135,868) (135,868) Total other financing sources 175,374 175,374 -- Excess (deficiency) of revenues and other sources over expenditures and other uses (55,698) 36,267 91,965 Fund deficit at beginning of year (60,412) (60,412) -- Fund deficit at end of year ($116,110) ($24,145) S 91,965 -91- COUNTY OF HAWAII Geothermal Relocation Revolving Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual (Budgetary Basis) For the Fiscal Year Ended June 30, 2000 Revenues - miscellaneous - geothermal royalties Expenditures - general government Deficiency of revenues over expenditures Fund balance at beginning of year Fund balance at end of year -92- Variance Favorable Budget Actual (Unfavorable) $150,000 5132,747 (51-,253) 150,000 150,000 -- -- (17,253) (17,253) 456,783 456,783 $456,783 $439,530 (517,253) -92- 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. 2000 Variance Favorable Budget Actual (Unfavorable) Revenues - licenses and penntts - highway beautification $115,000 $127,562 S 12,562 Expenditures - highways and streets 115.000 70,664 44.336 Excess of revenues over expenditures -- 56,898 56,898 Fund balance at beginning of year 353,001 353,001 -- Fund balance at end of year $353,001 $409,899 556,898 -93- This page intentionally left blank -94- 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 REDEMPTION FUND - Used to accumulate moneys for the 1978 Sinking Fund and for payment of general obligation bonds Moneys required to retire the bonds and service the Sinking Fund are transferred from the General Fund one year in advance of maturity 1978 SINKING FUND - Used to accumulate moneys for a sinking fund for the 1978 Series general obligation bonds Contributions to the Sinking Fund, which are determined by the bond ordinance, are transferred from the Bond Redemption Fund on established due dates COUNTY OF HAWAII Debt Service Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances For the Fiscal Year Ended June 30. 2000 (With comparative totals for the fiscal year ended June 30, 1999) Revenues - interest Expenditures Interest and finance charges Principal retirement Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses) Operating transfers to - General Fund Operating transfers out - General Fund Total other financing sources (uses) Excess (deficiency) of revenues and other sources over expenditures and other uses Fund balances at beginning of year Residual equity transfer out Fund balances at end of year General Obligation Bonds Bond 1978 Interest Redemption Sinking Fund Fund Fund Totals 2000 1999 S -- S S 358,563 $ 358,563 S 933,519 7,693,992 -- 7,693,992 7,481,465 -- 8,688,267 8,688,267 7,793,319 7,693,992 8,688,267 16,382,259 15,274,784 (7,693,992) (8,688,267) 358,563 (16,023,696) (14,341.265) 7,767,485 9,370,584 17,138,069 15,671,273 (358,563) (358,563) (3,418,119) 7,767,485 9,370,584 (358,563) 16,779,506 12,253,154 73,493 682,317 -- 755,810 (2,088,111) 42,059 9,102,816 8,702,013 17,846,888 19,934,999 -- -- (8,702,013) (8,702,013) -- $ 115,552 $9,785,133 S -- $9,900,685 $17,846,888 .M CAPITAL PROJECTS FUNDS CAPITAL PROJECTS FUND - Used to account for the costs of construct tng County capital improvements financed with general obligation bond proceeds, federal and state grants, and general and special revenue fund revenues IMPROVEMENT DISTRICT NO 17 - Used to account for the costs of construction of improvements in Improvement District No 17, Kaloko Subdivision The improvements were financed with the proceeds of the sale of special assessment bonds COUNTY OF HAWAII Capital Projects Funds Combining Balance Sheet June 30, 2000 (With comparative totals for June 30, 1999) Assets Cash and investments Cash and cash equivalents Investments Total cash and investments Receivables Due from other governments State of Hawaii Federal government Total due from other governments Due from other funds Private contributions receivable Total receivables Restricted assets --cash and cash equivalents Total assets Capital Projects Fund $ 4,368,358 47,200,000 51,568,358 102,815 3,082,200 3,185,015 126,404 2,015 3.313,434 1,587 $54,883,379 Improvement District No 17 Totals 2000 1999 $838,540 S 5,206,898 S11,609,393 47,200,000 13,550,000 838,540 52,406,898 25,159,393 102,815 102,815 3,082,200 3,264,479 3,185,015 3,367,294 126,404 223,602 2,015 2,015 3,313,434 3,592,911 1,587 231,520 $838,540 $55,721,919 528,983,824 Liabilities and Fund Balances Liabilities Wan -ants payable S 1,149,285 $ $ 1,149,285 $ 783,254 Accounts payable 2,294,804 2,294,804 1,200,181 Due to other funds 122,994 122,994 7,613 Deferred intergovernmental revenue 534,504 534,504 317,838 Other 1,587 1,587 110,253 Total liabilities 4.103,174 4,103,174 2,479,139 Fund balances Reserved for Encumbrances 15,481,371 15,481,371 11,747,779 Unexpended allotments 14.275,167 837,469 15,112,636 5,939,855 Total reserved fund balance 29,756,538 837,469 30,594,007 17,687,634 Unreserved Designated for Road repairs 3,928,183 3,928,183 2,550,384 Development impact 1,020,806 1,020,806 543,169 SRF projects 338,599 338,599 939,259 Total designated fund balance 5,287,588 5,287,588 4,032,812 Undesignated 15,736,079 1,071 15,737,150 4,784,239 Total fund balances 50,780,205 838,540 51,618,745 26,504,685 Total liabilities and fund balances $54.883,379 $838,540 $55,721,919 $28,983,824 -97- COUNTY OF HAWAII Capital Projects Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances For the Fiscal Year Ended June 30, 2000 (With comparative totals for the fiscal year ended June 30, 1999) ME Capital Improve Totals Projects District Fund No 17 2000 1999 Revenues Intergovernmental S 5,810,824 $ -- $ 5,810,824 S 7,981,710 Interest 2,166 2,166 6,893 Miscellaneous Developer's contributions 532,407 -- 532,407 14,478 Other -- 861 861 21,523 Total revenues 6,345,397 861 6,346,258 8,024,604 Expenditures General government 648,553 -- 648,553 452,123 Public safety 595,499 595,499 718,931 Highways and streets 9,213,894 9,213,894 13,562,803 Sanitation 5,221,927 5,221,927 4,354,868 Culture and recreation 3,429,247 -- 3,429,247 6,163,084 Miscellaneous 50,000 1,827 51,827 9.718 Total expenditures 19 159,120 1,827 19,160,947 25,261,527 Deficiency of revenues over expenditures (12,813,723) (966) (12,814,689) (17,236,923) Other financing sources (uses) State Revolving Fund loans 5,530,217 -- 5,530,217 1,324,602 Proceeds from sale of bonds 29,877,561 29,877,561 -- Proceeds from sale of refunding bonds 18,775,575 18,775,575 Payment to refunded bond escrow agent (18,775,575) (18,775,575) -- Operating transfers in Highway Fund 2,508,109 2,508,109 2,547,997 Sewer Fund -- -- 150,000 Park Dedication Fund 12,862 12,862 -- Total other financing sources (uses) 37,928,749 37,928,749 4,022,599 Excess (deficiency) of revenues and other sources over expenditures and other uses 25,115,026 (966) 25,114,060 (13,214,324) Fund balances at beginning of year 25,665,179 839,506 26,504,685 39,719,009 Fund balances at end of year $50,780,205 $838,540 $51,618,745 $26,504,685 ME COUNTY OF HAWAII Capital Projects Fund Schedule of Appropnations, Expenditures and Encumbrances - Budget and Actual (Budgetary Basis) For the Fiscal Year Ended June 30, 2000 Authorizations Encumbrances Lapsed Protect Tale Forwarded Appropriations Total Expenditures Ercumbrances Balances Public Safety Fire HPP Volunteer Fire Station Water S - S 1 000,000 E 1 000.000 S -- S 1,000,000 5 -- Central Fire Station Hose Tower 96 000 -- 96 000 63 200 -- 32,800 Wainiea/Central Fire Station Retrofit 87.539 -- 87,539 62 916 -- 24 623 Total Fire 183.539 1 000,000 1 183,539 126.116 1.000 000 57 423 Police Police Air Duct Removal 154 950 -- 154,950 115,816 39,134 -- Public Safety Air Conditioning Rermftt -- 300,000 300,000 -- 300,000 Public Safety Complex Cellblock -- 352,000 352 000 -- 352 000 -- Kona Police Station Air Conditioning Retrofit -- 100,000 100.000 -- 100,000 -- Kealakehe Refueling Station -- 300,000 300 000 -- 300 000 - Islandwide Communication Tower Replacement 25,763 -- 25 763 -- 25 763 - Total Police 180,713 1.052 000 1 232,713 115 816 1,116 897 Flood Control Waiakea Stream BMP Project - Federal Funds 90,000 -- 90,000 75 395 14 605 - Alcnato Stream Flood Control -- 24 000 24,000 23 100 900 - WallukulAlenaioWatershed- Federal Funds -- 3,381,000 3381,000 -- 3,381,000 -• Upper Waiakea Stream Flood Control -- 900,000 900,000 53 899 947 -- East Hawaii Drainage Irnprovemerrin 213,851 -- 213 851 203 874 -- 9 9-7 North Kona Drainage Improvements 13 160 - 13,160 13,160 -- -- North Kona Flood Control Phases I & 2 -- 1,400,000 1.400,000 - 125,000 1 275,000 Tota] Flood Control 317,011 5705,000 (,022.011 315.582 3,421.452 1,284 977 Total Public Safety 681 263 7 757 000 8,438,263 557 514 6,538 349 1 342 400 Highways and Streets South Kopua Road -- 118,465 118,465 -- 1,300 11-11 165 Puna HighwayTrat7ic Division Projects 237,018 -- 237 018 237,018 -- -- Nanawale Estates Road Improvements 106,657 -- 106 657 89,818 -- 16,839 Puna Highway Infrastructure - Federal Funds 493'041 -- 493,700 58,310 435,390 -- Puna Emergency Access Road 9,394 -- 9,394 3.531 -- 5 863 Puna Highway Frac Division Projects 29 862 -- 29,862 29.862 - - Puna Highway Infrastructure - Federal Funds 250.000 -- 250,000 58,892 191.108 -- Puna Local Road Improvements - 615,000 615,000 856 614,144 -- Highway 137 Realignment -- 1,500,000 1,500000 31,179 1,468,821 -- Highway 137 Realignment -Federal Funds -- 500.000 500,000 10.393 489,607 -- Various Puna Road • Federal Funds -- 1 500.000 t.500.000 400 1,499,600 - Old Volcano Road - Private Funds 8,060 - 8,060 -- -- 8,060 Puna Emergency Access Road 53,443 - 53 443 53,443 - -- Saddle Road/Kaumana Drive Curve Improvements - 250.000 250,000 8,977 241.023 - South Hilo Traffic Signal Upgrade - Federal Funds 1.834,001 -- 1 834,001 121,136 1.712 865 -- HononriL,MalnalaboaBndge -- 400000 400,00 -- 400000 -- South Hilo Local Road improvements 672,000 -- 672,000 163,010 508.990 -- COUNTY OF HAWAII Capital Projects Fund Schedule of Appropriations, Expenditures and Encumbrances - Budget and Actual (Budgetary Basis) Proiect Tnlc Highways and Streets (continued) Puainako Street Extension Hoomana/Malanat'Spring Streets Ululam Street Ululani Street Kawailani/PonahawaVAinaola'Iwalani Streets Mohouli Extension Mohouli Extension - Federal Funds Mohouli Extension - Federal Funds Mohouli Extension Mohouli Extension Haaheo School Sidewalks H9npmWMamalahoa Bridge - Federal Funds Onomea Camp Road Bridge - Federal Funds Kapiolam/Ululam Reconstruction Lanikaula-Manono Traffic Signal Lanikaula-Manono Traffic Signal - Federal Funds Komohana Bridge - Federal Funds Komohana Bridge Kaahakim Bridge - Federal Funds Kaahakini Bridge Reeds Island Bridge - Federal Funds Reeds Island Bridge Mohouli Street Improvements Kawadani,,Pohakulani/Amaolwlwalani Streets Honomu/Mamalahoa Bridge - Federal Funds HommMa,2ht2nialahoa Bridge Kalaoa/Mamalahoa Bridge - Federal Funds Onomea Camp Road Bridge - Federal Funds Onomea Camp Road Bridge Hilo Road Improvements Phase III - Federal Funds Komohana/Ponahawai Signal - Federal Funds Saddle Road Resurfacing Mohouli Street Extension Hilo Road Improvements Hilo Road Improvements Phase III Kapiolam Street Kaumana Drainage Improvements Haaheo School Sidewalk Improvements Hilo Road Improvements Phase 111 - Federal Funds Waiakea Houselots Resurfacing Kaahakmi Bridge Rehabilitation Mohouli/Komohana-Kilauea - Fedenl Funds Kilwallam/Pol akulan✓Alnaola - Federal Funds KawadanvPohaku Ian i'A i naola KalopwMamalahoa Bridge - Federal Funds Ki lopa'Manialahoa Bridge OpeaMamalahoa Bridge - Federal Funds Waikaalulu/Mamslaho t Bridge - Federal Funds For the Fiscal Year Ended June 30 2000 Authorizations 999 Encumbrances Forwarded Appropriations Total Expenditures Encumbrances -- 200 000 200,000 31.756 168.244 34.519 (21.482) 13,037 13,037 -- 16,780 -- 16,80 16,780 -- 266,861 -- 266 861 257 851 9 010 -- 250,000 250.000 -- 250,000 -- 1000,000 1,000000 -- 1,700000 3,584,858 -- 3,584,858 25.168 3,559,690 -- 6313,100 6 313 100 4 601 6 308 499 -- 980,000 980,000 - 980 000 91.691 -- 91691 26,513 65.178 58.224 -- 58224 56,174 -- - 1300.000 1.300,000 -- 1,300000 -- 425.000 425.000 - 725 000 -- 88 321 88,321 -- 88.321 27,852 -- 27,852 (7,200) 27852 565.000 -- 565.000 103 564,897 148,022 -- 148.022 37,091 110,931 9,808 -- 9 808 5 046 4,762 587 090 -- 587 090 286 S86804 22 000 -- 22 000 -- 22 000 1,947,346 -- 1,947,346 23572 1,923,774 380,653 -- 380,653 4.037 376 616 224 783 -- 224,783 18,044 206,739 44164 -- 44164 7101 37,063 35,587 -- 35587 6,179 29,408 4,089 4089 1,228 2,861 107,068 - 107,068 97 106,971 27,463 -- 27,463 3,539 23.924 1456 -- 1456 259 1 197 53,234 -- 53 234 15.846 37,388 1,058,438 -- 1,058438 57,000 18952 134,625 -- 134.625 -- 1,420000 -- 1,420000 83.452 1,336,548 120,000 -- 120 000 56 119.944 573821 -- 573821 269,074 11,879 899,516 -- 899516 823,101 76,415 65,927 (19 448) 26 479 26 479 -- 30,861 (21 391) 3,470 3.470 3412214 -- 3.412,214 1,270,566 2 141,648 125,000 -- 125 000 125,000 -- -- 135,000 135.000 -- 135,000 3,200,000 -- 3,200.000 -- 3 200,000 1,500,000 -- 1500,000 -- 1500,000 50 000 -- 50 000 -- 50 000 783,854 -- 783 854 14.806 769,048 7,284 -- 7 284 3,578 3,706 563,569 -- 563 569 129 563,440 811,863 - 811 863 4408 807,455 - 100 - (Continued) Lapsed Balances 2050 7,200 982.486 134,625 292,868 COUNTY OF HAWAII Capital Projects Fund Schedule of 4ppropriations, Expenditures and Encumbrances - Budget and Actual (Budgetary Basis) For the Fiscal Year Ended June 30, 2000 (Connnued) Authonzanons 101- Encumbrances Lapscd Protect Title Forwarded 4ppr6nn2lIOn5 Total Expenditure; Encumbrances Balance Highways and Street (continued) Watkaalulu/Mamalahoa Bndge 13,817 -- 13817 1,102 12,115 - Inomo Bndge Replacement - Federal Funds 60 118 -- 00,118 20,989 19,129 Inoino Bndge Replacement 15 402 -- 15,402 4,7,90 8.3-4 2 238 Hamakua Highwsyi7rafc Division Projects 5,847 -- 5 847 ; ol4 -- 933 Ahualoa Homestead Road 150,000 - 150,000 -- I50.00n -- North Hilo Highway/Traffic Division Projects 12 428 - 12,428 11,041 -- 1 387 Kalopa/Mamalahoa Bndge Replacement -- 183,000 183.000 -- 183 000 -- Opea/Mamalahoa Bndge -• 156,000 156,000 -- 156,000 -- Hamakua Local Road Improvement -- 9.200 9,200 9200 -- - InornwMarrralahoa Bndge - Federal Funds -- 800 000 800,000 -- 800.000 -- Harrakua Wooden Budges and Road Repairs 62,250 -- 62,250 -- -- 62 250 Kalopa Bypass/Sand Gulch 1,000 -- 1 000 -- -- 1 000 Mamalahoa/Watmea Town 353 916 -- 353 916 133,905 91.560 128 451 Mamalahoa/Waimea Town 113,493 -- 113,493 104.407 -- 9 086 Lindsey Road Improvement - Federal Funds 2,183.157 -- 2,183 157 200 471 1 982.686 - Lindsey Road lmprovcment 48,795 -- 48,395 -- 48 395 -- Noah Kohala Highway!lraf c Division Project 22,078 - 22,078 22,078 -- -- South Kohala Highway/Traffic Division Project 29,450 -- 29 450 29,450 -- -- Marralahoa il-indsey-Kamamalu 15,273 -- 15,2713 14,943 - 330 North Kohala Highwayfrrafc Division Project 36.492 -- 36492 36492 -- -- Karrtamalu Street 57,256 -- 57,256 9 956 -- 4'300 Mamalahoa/Lrndsey-Kamamalu - Federal Funds 793,638 -- '93 638 509,034 284,604 - North Kohala Highway?raft Division Project 632 - 632 632 -- - Watkoloa Road Improvement - Federal Funds 1,191,958 -- 1,191,958 635.56' 556,391 -- Waikoloa Road Shoulder Improvement 300,000 -- 300,000 156.263 58,999 84,738 Manalahoa•'Lrndsey-Kartartaln - Private Funds 70 828 -- 70,828 25 456 45 372 -- Waikoloa Road Improvement - Federal Funds 7G0,000 -- 760,000 -- 760.000 -- Mamalahoa/Lindsey-Kamamalu- Federal Funds 1000000 -- 1,000,000 332132 667,868 -- Manalahoa/Lindsey-Kamamalu 150,000 -- 150.000 22266 127'34 -- North Kohala Local Road Irrrprovement -- 93,000 93,000 -- 93 000 -- South Kohala Local Road Improvement -- 163'50 163'50 113 750 50,000 -- Lindsey Road improvement -- 451,000 451,000 37 754 413 246 -- North Kona Local Road Improvement -- 281,000 281,000 281 000 -- -- South Kona Local Road Improvement -- 121.000 121 000 93,371 27,629 -- Marralahoa Highway (Waiaha) - Federal Funds -- 1200,000 1,200 000 22 379 1,17' 621 - Kahalui-Keauhou Parkway - Federal Funds -- 14 000,000 24 000 000 2.123 23 997,877 -- Kahalut-Keauhou Parkway -- 500,000 500.000 53.139 440,861 -- Alit Drive DesigNAmh Study - Federal Funds 1 036 864 -- 1.036,964 681 607 355.257 -- Alit Highway - Pnvate Funds 154 993 -- 154.993 136,941 18,052 -- Kaloko/Mamalahoa Hwy - Private Funds 48 000 -- 48 000 -• 48,000 -- Napoopoo/MamalahoaHwy- Pnvate Funds 161,250 - 161.250 -- 161,250 -- Kuakmi/Palani Road - Hualalar 7,465-- 7 465 7 465 - -- Kona Road Improvement - Federal Funds 19,844 -- 19 844 320 -- 19,524 Kona Road Improvement Phase Il 1,702 -- 1.702 1.702 -- -- Kuakiru Highway Improvement 6,569 - 6,569 6.569 -- Palam Road Sidewalks 4,168 -- 4.168 1,379 -- 2 789 Alit Drive Bikeway Extension 29 451 - 29.451 6.143 -- 23 308 Alit Dnve Bndge Replacement 20.625 -- 20,625 12,916 7 709 101- COUNTY OF HAWAII Capital Projects Fund Schedule of Appropriations, Expenditures and Encumbrances - Budget and Actual (Budgetary Basis) For the Fiscal Year Ended June 30, 2000 (Cominued) Authorizations -IO2- Encumbrances Lapsed Protect Title Forwarded Appropriations Total Expenditures EncumDrances Balances Highways and Streets (continued) Alit Drive Bridge Replacement - Federal Funds 433.037 -- 433,037 54.387 378,650 - Kona Road Improvements Phase 11 - Federal Funds 2,288.719 -- 2,288 719 69,001 -- 2.219.718 Alit Drive Shoreline Protection 24,000 -- 24 000 -- -- 24 000 Mamalahoa Highway Improvements 270 460 -- 270,460 - 108.660 161 800 Kona Road Improvements 110,294 -- 110.294 7,516 102,778 -- Kona Road Improvements Phase 111 262,274 -- 262 274 8,754 172742 80 778 Kona Road Improvements Phase If 777,600 -- 777 600 4,069 -- 771 531 South Kona HighwayTtaRc Division Projects 234 013 -- 234 013 233,762 - 251 Kona Road Improvements Phase II 198 134 -- 198 134 .. -- 198 134 South Kona Highway.TratTtc Division Projects 446 -- 446 -- -- 446 Kuakim Highway/Paiani-Kualalat 155 000 -- 155 000 170 154 830 Ka'u HighwayrrnlFic Division Projects 419 -- 419 419 - Kau Highwny/rraf is Division Projects 220 687 -- 220 687 220,687 -- -- Ka'u Highway/Traffic Division Projects 98,112 -- 98 112 98 112 -- - Seismic Bridge Retrofit - Federal Funds 252,000 -- 252 000 -- 252 000 - Island -wide Right-of-way Land Acquisition 31,830 -- 31 830 13.847 17,983 -- Maniente/KaiwikiBndge- Federal Funds 1.624,000 -- 1,624000 -- 1:,24,000 -- Oshiro and Other Bndges 1,848,822 -- 1,848.822 54,163 1,794659 -- Bridge Replacement Program 556,666 -- 556.666 21,357 194,159 141 150 Bridge Inspection, Maintain, Repair 250,000 -- 250 000 -- -- 250,000 Seismic Bridge Retrofit -- 63,000 63,000 -- 63,000 -- Island-wide Right-of-way land Acquisition -- 25,000 25 000 4,087 20,913 -- ADA Compliance - Curb Cuts -- 200,000 200 000 166,517 33 483 - Bridge Inspection"Appraisal - Federal Funds 37,463 - 37 463 4 602 32.861 -- Total Highways and Streets 45,301 990 43 732,515 89 034 505 8.800,148 74,434 059 5 800 298 Sanitation and Waste Disposal Solid Wute Disposal Hilo Landfill Closure 1.792 -- 1 792 - 1,792 -- Landfill Closure 242,983 -- 242 983 51.077 53,368 138.538 Hilo Landfill Closure 4,989 - 4,989 -- 2.340 2 649 Katlua Landfill Closure 20.562 -- 20 562 -- 20 427 135 Keauhou Transfer Station 116,730 -- 116730 105,491 10,889 350 Hilo C&D Landfill -- 70,000 70000 -- 70.000 -- Total Solid Waste Disposal 387,056 70000 457056 156568 158.816 14:6-2 Sewers Kapoho Wastewater System 100,000 -- 100000 -- -- 100,000 Hilo STP DemobtwniRehabilitatwn 23,943 - 23 943 16,541 7,402 -- Papaikou Collector Sewer 24,150 - 24150 24,150 -- - Banyan Drive SPS Rehabilitation 4,515 -- 4 515 2,007 2,508 -- Amako Interceptor Sewer A&B - SRF 115,502 -- 115 502 104.906 10 596 -- W'atakea Pond Sewer Eueme it Improvements 3,132 -- 3 132 3.132 -- -- Kamehamcha Avenue Sewer Rehabilitation 173,433 -- 173,433 47,525 125,908 -- Pauku Collector Sewer - SRF 1,172 563 -- 1,172 563 1 156 779 15,784 -- WatakeaHouselotCollectorSewer - SRF 2.623.673 -- 2,623.673 2,310.571 313,102 -- -IO2- COUNTY OF HAWAII Capital Projects Fund Schedule of Appropnanons, Expenditures and Encumbrances - Budget and Actual (Budgetary Basis) Protect Title Sanitation and Waste Disposal (continued) Sewers (continued) Ain iko-Aura Nam Subdivision Sewer Puueo Collector Sewer Paukaa Collector Sewer Houselots Collector Sewer Phase 11 Wailoa Force Main Replacement Wailuku Sewage Pump Station Paukaa Collector Sewer - SRF Warakes Houselois Collector Sewer - SRF Ainako Interceptor Sewer - SRF Hilo STP DemolinoniRehabditauon Banyan Drive SPS Rehabilitation Kamehameha Avenue Sewer Rehabilitation Kaumana Gardens Sewer Papaikou Collector System Paukm Sewer Collector System - SRF Puako Wastewater System Kealakehe Wastewater Treatment Plant Kealakehe Effluent Disposal - State Funds Alii DnveiWaiaha Pump Station Waraha Bay SPS - SRF Alii Drive Interceptor Sewer - A&B - SRF Kealakehe Wastewater Treatment Plant Expansion Alit Drive Interceptor Sewer - FBF - SRF Holualoa Bay SPS Sewer Facility Rehabilitation Waraha Bay SPS - SRF Kealakehe Sewage Enluent Disposal Pahoehoe SPS - SRF Ain Drive Sewer/Waiaho Pump Station Alit Drive Interceptor Sewer - E&F Holualoa Bay SPS - SRF Disappearing Sands SPS - SRF Ali Drive Interceptor Sewer C&D - SRF Huard Mitigation for Wastewater - FEMA Funding Hazard Mitigation for Wastewater - DBED Funding Hazard Mitigation for Wastewater - ERF Funding Huard Mitigation for Wastewater Alit Drive Sewer Projects For the Fiscal Year Ended June 30, 2000 Authorization, 1990 Encumbrances Forwarded Appropriations Total Expenditures -- 300,000 300,000 -- 100 000 100 000 165 221 -- 165,.2.21 24.173 -- 241'3 150 000 -- 150 000 300 000 100,000 400,000 -- 175,933 175,933 - 428,466 428 466 -- 119,119 119,119 - 589,000 589 000 - 199,634 199,634 9,640 -- 9,640 43,427 -- 43 427 2,805 - 2,805 190 233 -- 190,233 100,000 (63,000) 37,000 93,863 -- 93,863 96,139 -- 96,139 33,343 -- 33,343 1688 -- 1,688 111 772 -- 113 772 393,432 -- 393,432 354,634 - 354,634 45 000 -- 45 000 28,986 -- 28,986 2,576 -- 2,576 695,494 200,000 895 494 -- 1,000,000 1000000 119,706 - 119,706 61856 -- 61,856 404 175 -- 404,175 2,000,000 -- 2000.000 9,288 -- 9,288 293,785 -- 293,785 9 500 -- 9,500 150.000 -- 150,000 346.715 -- 346 715 37,568 -- ;7568 142 276 24,173 176,448 7 465 2,805 146.987 16.008 5,539 113772 73 682 45,000 11,712 84.422 50.296 16,133 286,267 87,500 1 IC onunued) Lapsed E icumbrances Balan,es 300,000 100,000 (6 948 150 000 400 000 75,933 252 018 111.654 589,000 199,634 9,640 43,427 43,246 57.855 96,139 2',804 1 688 319 750 209 572 17 274 2,576 737 582 1,000,000 69,005 61 856 1,983,867 9 288 7 518 62,500 340,714 17 sr.a Total Sewers 10,517,920 3 149,152 13.667 072 4,976,097 7,915 356 Total Sanitation and Waste Disposal 10 904 976 3,219,152 14,124,128 5,132,665 8,074,172 Culture and Recreation Kalapana Community Facility Improvement 174 -- 174 -- -- Pohoiki Park Improvements 18 746 -- 18.746 18,746 -- Puna Parks 5 916 - 5,916 -- 5,916 Keaau Park Ballpark,'rennis Lights 3,000 -- 3000 -- 3 000 - 103 - ,000 145 062 73 48U 4U5 404 1-5 9 500 7'5619 917 291 174 Project Title COUNTY OF HAWAII Capital Projects Fund Schedule of Appropriations, Expenditures and Encumbrances - Budget and Actual (Budgetary Basis) For the Fiscal Year Ended June 30, 2000 iConlinued) Aulhonzahons 1999 Encumbrances Lapsed Forwarded Appropriations Total Expenditures Encumbrances Balances Culture and Recreation (continued) Hawaiian Beaches Soccer Field 5 000 19 800 24 800 -- 24,800 -- Ahalamn Beach Park Improvements -- 450 000 450 000 -- -- 450 000 Pohoikr Beach Park Expansion 101,977 127,500 229 477 80 575 122,205 26 697 Cooper Center Outdoor Court 323,233 -- 323233 11813 111,420 Volcano Park Multi -Purpose Court -- 300 000 300,000 -- 300,000 -- Pohoiki Park Improvements -- 182 000 182 000 -- 182 000 -- Ahalahui/Pohoiki Park Improvements - FEMA -- 1 020 330 1,020 330 -- 1,020,330 -- Panaewa Zoo Facility Improvements 11,985 -- 11 985 11,985 - _ Park Improvements - District 2 27 364 -- 27 364 15,544 11.820 -- Keaukaha-Panaewa Gym Planning 250 000 -- 250 000 124,408 25,592 Kawananakoa/Hualani Gym 38.514 -- 38,514 38,514 -- -- Hilo Municipal Golf Course Improvements -- 65 352 65,352 37 660 27,690 2 Council District 4 Park Improvements 27 997 -- 27 997 27,997 -- -- Civic Auditorium Improvements 21 138 -- 21 138 21,138 -- -- Kawamoto Swim Stadium 13,267 - 0 267 92 7,550 5 625 Hilo Bayfront Park Improvements 222,964 -- 222 964 218,432 4 500 32 Kawamoto Swim Stadium 2040 - 2,040 -- 2.040 -- Council District 3 Park Improvements 55,500 - 55 500 501 54,999 -- Council Dismct 2 Park Improvements -- 15,000 15.000 2,060 1289, 43 Council District 4 Park Improvements -- 37,500 37 500 20,700 16,800 Downtown Hilo Landscaping 36,041 -- 36 041 36,040 -- 1 Kcaukaha-Panaewa Gym Plan 4,783 995,217 1,000.000 6,600 1,93,400 Hoolulu Park Expansion 54,578 125,200 179 778 48,877 130.901 -- Lcleiwi Beach Park -- 100.000 100 000 2,369 97,631 -- Waiakea Peninsula Improvements 721,384 -- 721,384 663,972 57,412 - Seven Seas Luau House Improvements 20 085 219.100 239 185 18,445 220,740 -- Kawannoto Swim Stadium -- 350 000 350 000 405 '.9 595 -- Wainaku Gm improvements -- 100,000 100000 32.084 67,916 -- KawananakowHualani Park -- 1 000.000 1 000.000 -- 1 000,000 -- Panaewa Zoo Improvements -- 250,000 250,000 66,312 183,688 -- Hilo Bay Recreational Complex - 1,500,000 1,500,000 475,137 1,024 863 -- Keaukaha Park - Hawaiian Homes - 150.000 150.000 -- 150 000 - Amaola Park Equipment - Park Dedication Fund -- 12,862 12,862 -- 12,862 -- Walter Victor Stadium -- 80,000 80,000 475 79,525 -- Onekahakaha Beach Park -- 120,318 120.318 -- 120,318 -- Hilo Bay Recreational Complex -- -50,000 750 000 -- -50000 -- Seven Seas Luau House Improvements -- 350,000 350000 19,450 330,550 - Honokaa Swimming Pool Improvements -- 150,000 150.000 -- 87,000 63 000 Council Dismct 1 Park Improvements 22,060 -- 22,060 20,600 1,460 -- Council District 9 Park Improvements 7,239 -• 7,239 5 040 2087 112 New Waikoloa Park 38,064 -- 38,064 31,175 -- 6,889 South Kohala Trails and Gremways 52,340 9.200 61,540 14,619 46,921 New Waikoloa Park 4,987 495,013 500,000 40,319 459,681 Waimea Trails and Gmcnways - Federal Funds 283,058 -• 283 058 58,476 24,582 -- Waimea Senior Center Renovation -- 50,000 50000 10,408 39,592 - Kailua Playground Park 894 -• 894 _ 894 -- Kona Gym Showers/Lockers 100,000 -- 100,000 35,087 64,913 -- Hookena Park Water Tank 4,366 -• 4 366 4,366 -- _ - 104 - COUNTY OF HAWAII Capital Projects Fund Schedule of Appropriations, Expenditures and Encumbrances - Budget and Actual (Budgetary Basis) For the Fiscal Year Ended June 30, 2000 (Concluded) Authorizations -105- Encumbrances Lapsed Protect Title Forwarded Appropriations Total Expenditures Encumbrances Balances Culture and Recreation (continued) Old Kona Airport Swimming Pool 32,500 -- 32.500 32,500 -- -- Kailua Playground Park 17.742 -- 17,742 -- 11,742 Dis Sands/Pahmhoe'Kahaluu - Private Funds 70.561 -- 70,561 1 080 69.481 Kahaluu Park Improvements - Pmate Funds 5,250 -- 5,250 -- 5 250 - Kona Swimming Pool 194 486 - 194,486 194,486 -- -- Hookena Beach Composting Toilets 86,947 -- 86,947 85.723 1,224 - Miloli i Beach Composting Toilet 1,702 - 1,702 -- 1,702 -- Hale Halewai Repairsilmprovcments 3,000 175.000 178,000 4,850 173,150 -- Kona Swimming Pool 227,818 -- 227 818 227,818 -- -- Council District 7 Park Improvements 12 188 6.500 18,688 15,626 3,062 - Council District 8 Park Improvements 18,117 -- 18,117 9,095 6.397 2 o25 Hookers Beach Park Improvements 150,000 -- 150,000 123,955 26,045 -- Council District 7 Park Improvements -- 23,192 23.192 17.057 6 135 -- Council District 8 Park Improvements -- 32.063 32,063 5,966 26 096 1 Hale Halewu Repaus'lmprovements -- 446 935 446 935 -- 446.935 -- Mdoht Park Restroom Improvements -- 75 000 75.000 4,454 70,546 - Hookma Park Restroom Improvements -- 125,000 125 000 -- 125 000 - Whittington Park Resnooms -- 50 000 50,000 -- 50,000 -- Handicap Barrer Removal 8 354 39,535 47,889 22,461 24 222 1 206 Island -wide ADA Compliance 131,593 -- 131,593 39,295 92,298 - Wastewater System Upgrade 138 422 (120 318) 18.104 -- 18,104 -- ADA Compliance 144 336 -- 144,336 97,528 56 691 Ill Repairs to Facilities 40 336 -- 40,336 33,767 6 569 -- ADA Compliance -- 2,000,000 2,000000 211 1,999789 - RCpairs to Facilities -- 500.000 500,000 105,660 394,340 -- Repairs to Facilities -- 500,000 500 000 -- 500 000 -- Total Culture and Recreation 3,762046 12.877,299 16 639 345 3,231.953 12 850 868 5s6 524 Miscellaneous Euu'Wcst Hawaii Once Renovation 3,101 877 -- 3,101 877 246,911 2,854,966 -- EastlW'esl Hawaii Office Renovation 200.100 -- 200,100 -- 200 100 - Reroof Old Memorial Hospital - 650 000 650,000 - 650 000 -- East,'West Hawaii Building Repairs -- 310 000 310,000 - 310 000 -- Alae Cemetery Improvements 13 016 -- 13 016 5,872 -- 1,144 Alae Cemetery Expansion 50,000 -- 50,000 50,000 -- -- Ka'u Agricultural Water System - State Funds 500 000 -- 500.000 -- 500 000 -- Total Miscellaneous 3,864 993 960,000 4,824,993 302.783 4,515 066 ' 144 Total Capital Projects Fund $64.515 268 568.545,966 SI 33,061.234 $18,025,063 S106,412 514 S8623.0- -105- This page intentionally left blank - 106- PROPRIETARY FUNDS ENTERPRISE FUNDS KULAIMANO ELDERLY HOUSING PROJECT - Used to account for the operation of a housing project for low income elderly persons located north of Hilo Revenues are from rents collected and federal rent subsidies OULI EKAHI AFFORDABLE HOUSING PROJECT - Used to account for the operation of a 33 -unit single-family affordable housing project located in Waimea. Revenues are from rents collected COUNTY OF HAWAII Enterprise Funds Combining Balance Sheet June 30, 2000 (With comparative totals for June 30, 1999) Assets Current assets Cash and cash equivalents Investments Imprest fund Accounts receivable Interest receivable Other receivable Prepaid expenses Total current assets Restncted assets - cash and cash equivalents Tenant security deposits Debt service reserve Operating reserve Total restricted assets - cash and cash equivalents Fixed assets Land Buildings Grounds and site improvements Furnishings and equipment Accumulated depreciation Fixed assets, net of accumulated depreciation Total assets Kulaimano Oull Ekahi Elderly Affordable Housing Housing Proiect Proiect Totals 2000 1999 $274,983 $ 12,063 $287,046 S263,953 500,000 -- 500,000 500,000 50 100 150 150 1,697 15,081 16,778 15,837 1,150 85 1,235 1,194 -- 1,159 1,159 1,141 1,868 -- 1,868 1,806 779,748 28,488 808,236 784,081 9,250 17,533 26,783 25,637 172,541 172,541 169.117 -- 13,895 13,895 13,619 181,791 31,428 213,219 208,373 250,000 503,877 753,877 753,877 1,136,008 1,136,008 1,136,008 261,000 261,000 261,000 87,332 -- 87,332 86,170 1,734,340 503,877 2,238,217 2,237,055 (733,154) -- (733,154) (705,587) 1,001,186 503,877 1,505,063 1,531,468 $1,962,725 5563,793 $2,526,518 $2,523,922 -107- (Continued) COUNTY OF HAWAII Enterprise Funds Combining Balance Sheet June 30, 2000 (With comparative totals for lune 30. 1999) Liabilities and Equity Current liabilities Kulaimano Ouli Ekahi Elderly Affordable Housing Housing Project Proiect Warrants payable $ 14,253 Accounts payable 8,266 Due to developer -- Unearned rental income 278 Notes payable - current 14,925 Total current liabilities 37,722 Current liabilities payable from restricted assets - Tenant security deposits payable 9,085 Notes payable 1,120,214 Total liabilities 1.161,021 Equity 25,085 Contributed capital 1,132,301 Developers 250,500 Intergovernmental 160,796 Total contributed capital 411,296 Retained earnings (deficit) Reserved for debt service 172,541 Unreserved 211,867 Total retained earnings (deficit) 384,408 Total equity 795,704 S -- 7,729 1,503 9,232 (Concluded) Totals 2000 1999 $ 14,253 8,266 7,729 1,781 14,925 46,954 $ 13,177 941 7,729 403 14,110 36,360 16,440 25,525 25,085 -- 1,120,214 1,132,301 25,672 1,192,693 1,193,746 544,367 544,367 794,867 160,796 955,663 172,541 (6,246) 205,621 (6,246) 378,162 538,121 1,333,825 794,867 160,796 955,663 169,117 205.396 374,513 1,330,176 Total liabilities and equity $1,962,725 $563,793 $2,526,518 $2.523,922 COUNTY OF HAWAII Enterprise Funds Combining Statement of Revenues, Expenses and Changes in Retained Earnings (Deficit) For the Fiscal Year Ended June 30, 2000 (With comparative totals for the fiscal year ended June 30, 1999) Kulaimano Elderly Housing Proiect Operating revenues Rental receipts from tenants $ 83,695 Rental subsidy from federal government - HUD 148,434 Laundry receipts 2,796 Miscellaneous -- Total operating revenues 234,925 Operating expenses Utilities General and administration Maintenance and repairs Lease expense Depreciation Total operating expenses Operating income (loss) Nonoperaung revenues (expenses) Interest income Interest expense on notes payable Totalnonoperaung revenues(expenses) Net income (loss) Retained earnings (deficit) at beginning of year Retained earnings (deficit) at end of year 30,505 54,956 58,589 34,470 178,520 56,405 32,820 (82,639) (49,819) Ouli Ekahi Affordable Housing Protect $199,106 3,350 202,456 27,658 88,990 12,993 76,226 205,867 (3,411) 474 474 Totals Will, S282,801 148,434 2,796 3,350 437,381 58,163 143,946 71,582 76,226 34,470 384,387 52.994 33,294 (82,639) (49,345) 1999 5288,565 134,012 2,752 4,474 429,803 48,831 144,740 38,489 76,226 39.177 -i4 /,4w 82,340 30,994 (80,486) (49,492) 6,586 (2,937) 3,649 32,848 377,822 (3,309) 374,513 341,665 $384,408 ($6,246) $378,162 $374,513 -109- COUNTY OF HAWAII Enterprise Funds Combining Statement of Cash Flows For the Fiscal Year Ended June 30, 2000 (With comparative totals for the fiscal year ended June 30. 1999) - 110 - Kulaimano Ouli Ekahi Totals Elderly Affordable Hsg Proiect Hse Protect 2000 1999 Cash flows from operating activities Cash received from tenants $ 85,454 $204,352 $289,806 $290,351 Cash received from federal government - HUD 148,434 -- 148,434 134,012 Cash payments to suppliers for goods and services (135,711) (205,867) (341,578) (307,607) Net cash provided by (used in) operating activities 98,177 (1,515) 96,662 116,756 Cash flows from capital and related financing activities Principal paid on notes payable (11,272) (11,272) (13,426) Interest paid on notes payable (82,639) (82,639) (80,486) Acquisition and construction of capital assets (8,065) (8,065) (2,179) Net cash used in capital and related financing activities (101,976) (101,976) (96,091) Cash flows from investing activities Purchase of investments (1,500,000) (1,500,000) (1,500,000) Proceeds from sale and maturities of investments 1,500,000 1,500,000 1,500,000 Interest on investments 32,779 474 33,253 30,939 Net cash provided by investing activities 32,779 474 33,253 30,939 Net increase (decrease)in cash and cash equivalents 28,980 (1,041) 27,939 51,604 Cash and cash equivalents at beginning of year 427,844 44,632 472,476 420,872 Cash and cash equivalents at end of year $456,824 $43,591 $500,415 $472,476 Reconciliation of operating income (loss) to net cash provided by operating activities: Operating income (loss) $ 56,405 (53,411) $ 52,994 $82,340 Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities Depreciation 34,470 34,470 39,177 Decrease (increase)in accounts receivable (1,105) 164 (941) (3,869) Increase in other receivables -- (18) (18) (292) increase in prepaid expenses (62) -- (62) (8) increase in warrants payable 1,076 1,076 268 Increase in accounts payable 7,325 -- 7,325 419 Increase in unearned rental income 233 1,145 1,373 26 Increase (decrease) in tenant security deposits payable (165) 605 440 (1,305) Total adjustments 41,772 1,896 43,668 34,416 Net cash provided by (used in) operating activities $98,177 ($1,515) $96,662 $116,756 - 110 - TRUST AND AGENCY FUNDS EXPENDABLE TRUST FUYDS PARK DEDICATIOV FUND -Used to account for moneys deposited with the County by subdividers to provide land for parks and playgrounds in subdivisions HAWAII COUNTY HOUSING AGENCY - Used to account for Federal and County moneys used to provide public housing assistance within the County GEOTHERMAL ASSET FUND - Used to account for funds received from geothermal developers to mitigate the effects of geothermal energy development AGENCY FUNDS STATE WEIGHT T4X FUND - Used to account for the collection and payment to the State of motor vehicle weight taxes collected by the County on behalf of the State IMPROVEMENT DISTRICT,NOS 16 AND 17- Used to account for the collection of assessments and related interest from property owners in improvement districts for financing the payments of special assessment bond interest and prmcipal Proceeds from such bonds are used to finance the construction of improvements and are accounted for in the capital projects funds IMPROVEMENT DISTRICT REVOLVING FUND - Used to accumulate any surplus balance of an improvement district after final payment of all bonds Such moneys are available to make up deficiencies in other improvement districts IMPROVEMENT DISTRICT BOND AND INTEREST REDEMPTION FUND - Used to account for debt service on special assessment bonds PERFORMANCE AND REFUNDABLE DEPOSITS FUND - Used to account for miscellaneous deposits left with the County PAYROLL CLEARANCE FUND - Used to account for the payment of County payroll with moneys transferred from the respective departments FLEXIBLE SPENDING ACCOUNT— Used to account for funds that employees elect to have withheld from their pay checks to be used to pay unreimbursed medical and dependent care expenses on a pre-tax basis LAPSED WARRANTS FUND — As requned by state law, used to accounts for funds remaining when County warrants are not cashed before they lapse ,NON-PROFIT LICENSE PLATES FUND — Used to account for proceeds from sale of specially -marked license plates, such proceeds to go as indicated to participating non-profit agencies ORGAN AND TISSUE EDUCATION FUND — Used to account for voluntary donations paid with motor vehicle registration renewals that are designated for the statewide Hawaii organ and tissue education fund COUNTY OF HAWAII Trust and Agency Funds Combining Balance Sheet June 30, 2000 (With comparative totals for June 30, 1999) Expendable Trust Funds a%au County Park Housing Geothermal Agency Dedication Aeencv .Asset Funds Totals 2000 1999 Assets Cash and investments Cash and cash equivalents $ -- $4,890,669 $ -- $4,303,128 $9,193,797 $8.5"1,251 Investments 116,561 166,417 1,127,798 306,086 1,716,362 1,580472 Imprest fund -- 100 -- -- 100 100 Total cash and investments 116,561 5,057,186 1,127,798 4,609,214 10,910.759 10,151,823 Receivables Due from federal government -- 1,404 -- -- 1,404 12,313 Due from other funds -- 3,537,152 3,537,152 3,408,694 Other 875,238 -- 875,238 147,301 Total receivables 876,642 3,537,152 4,413,794 3,568,308 Restricted assets - cash & cash equiv -- 1,400,000 1,400,000 1,400,000 Total assets $116,561 $5,931828 $1,127,798 $9,546,366 $16,724,553 $15120,131 Liabilities and Equity Liabilities Warrants payable $ $ 173,499 $ $1,793,951 $ 1,968,450 $ 1,913,575 Accounts payable 9.105 9,105 3,624 Employee costs payable -- -- -- 64,446 Due to other funds 89 212 1,429,214 1,518,426 1,284,724 Accrued liabilities 9 502 1,107,291 1,116,793 1,092,858 Customer advances and deposits -- 170,465 170,465 84,350 Assets held for the benefit of improvement districts -- 5,045,445 5,045,445 4,742,589 Total liabilities 282318 9.546,366 9,828,684 9,186,166 Fund balances Reserved for encumbrances 2,498,396 1,021,774 -- 3,520,170 3,605,530 Unreserved Designated for Imprest fund 100 -- 100 100 Affordable housing 349.'85 349,785 101,794 Future year expenditures 454611 454,671 513,501 Total designated fund balance 804 556 -- 804,556 615,395 Undesignated 116,561 2.348,558 106,024 2,571,143 1,713,040 Total fund balances 116,561 5,651,510 1,127,798 6,895,869 5,933,965 Total liabilities and fund balances $116.561 $5,933.828 $1,127,798 $9,546,366 $16,724,553 $15,120,131 COUNTY OF HAWAII Agency Funds Combining Balance Sheet June 30, 2000 ( With comparative totals for June 30. 1999) Liabilities Warrants payable $599,844 $ $ $17,864 $1,176,043 $ Due to other funds Performance 1,421,154 Accrued liabilities -- State Improvement Improvement and Assets held for the benefit of Flexible Weight District District Refundable Payroll Spending Tax No 17 Revolving Deposits Clearance Account Assets Cash and investments Cash and cash equivalents $599,844 $3,339,359 S -- $189.189 5 $159,975 Investments -- 306,086 -- -- Total cash and investments 599,844 3.339.359 306,086 189,189 159 975 Receivables Due from other funds -- -- -- 3,529,977 -- Other Total receivables 3,529,977 Restricted assets - cash & cash equiv -- 1,400,000 -- -- __ -- Total assets S599,844 $4.739,359 $306,086 $189,189 $3,529,977 $159.975 Liabilities Warrants payable $599,844 $ $ $17,864 $1,176,043 $ Due to other funds -- 860 1,421,154 Accrued liabilities -- 932,780 159,975 Customer advances and deposits 170,465 -- -- Assets held for the benefit of improvement districts -- 4,739,359 306,086 -- Total liabilities $599,844 $4,739,359 5306,086 $189,189 $3,529,977 S159,975 - 112 - Non -Profit Lapsed License Organ & Totals Warrants Plates Tissue Educ Fund Fund Fund 2000 1999 $14,506 5200 $55 $4,303,128 53,880,239 306,086 276,630 14,506 200 55 4,609,214 4,156,869 7,175 3,537,152 3,408,106 -- -- -- -- 1,448 7,175 3,537,152 3,409,554 1,400,000 1,400,000 $21,681 $200 $55 $9,546366 $8,966,423 $ $200 $ -- S 1,793,951 S 1,862,388 7,200 1,429,214 1,193,806 14,481 55 1,107,291 1,083,290 170,465 84,350 5,045,445 4,742,589 $21,681 $200 $55 $9,546,366 $8,966,423 - 113 - COUNTY OF HAWAII Expendable Trust Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances For the Fiscal Year Ended June 30, 2000 (With comparative totals for the fiscal year ended June 30, 1999) Hawaii County Park Housing Geothermal Dedication Aeencv Asset 2000 Totals Revenues Intergovernmental $ -- $7,685,121 $ -- $7,685,121 $7,058,969 Interest 6,310 186,297 57,838 250.445 211.049 Miscellaneous Contnbuuons 240,720 50.000 290,720 50,000 Resale of property 512,908 512,908 656,020 Other 392 392 Total revenues 6,310 8,625,438 107 838 8,739,586 7,976.038 Expenditures Current General government 1.971 1,971 2,749 Health, education and welfare 7,624,221 7,624,221 7,859,555 Pension and retirement contnbutions 138,628 138,628 188.562 Total expenditures 7,762,849 1,971 7,764,820 8,050,866 Excess (deficiency) of revenues over expenditures 6,310 862,589 105,867 974,7t,6 (74,828) Other financing use Operating transfer out -Capital Projects Fund (12,862) (12,862) Excess (deficiency) of revenues over expenditures and other financing uses (6,552) 862,589 105,867 961,904 (74,828) Fund balances at beginning of year 123,113 4,788,921 1,021,931 5,933,965 6,008,793 Fund balances at end of year $116,561 $5,651,510 S1,127,798 $6,895,869 $5.933,965 - 114- COUNTY OF HAWAII Hawaii County Housing Agency Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual (Budgetary Basis) For the Fiscal Year Ended lune 30, 2000 -115- Variance Favorable Budget Actual (Unfavorable) Revenues Intergovernmental Federal grants Housing preservation grant $ 50,000 $ 50,000 $ HUD - Housing assistance 5,719,200 3,076,729 (2,642,471) HUD -Voucher program 1,726,000 4,568,100 2.842,100 Total intergovernmental 7,495,200 7,694,829 199,629 Interest earned 10,710 186,297 175,587 Resale of property -- 512,908 512,908 Other -- 241,112 241,112 Total revenues 7,505,910 8,635,146 1.129 236 Expenditures Health, education & welfare 7,828,634 7,560,406 268,228 Pension and retirement contributions 260,400 84,444 1"5,956 Health Fund 62,414 58,765 3,649 Total expenditures 8,151,448 7,703,615 447,833 Excess (deficiency) of revenues overexenditures (645,538) 931,531 1,57,069 Fund balance at beginning of year 4,788,921 4,788.921 -- Fund balance at end of year - budgetary basis $4,143,383 5 720,452 S1,57,069 Adjustments to conform with generally accepted principals Encumbrances at beginning of year (2,631,784) Encumbrances at end of year 2,498,396 Accrued costs at beginning of year 64,446 Fund balance at end of year - GAAP basis $5,651,510 -115- COUNTY OF HAWAII Agency Funds Combining Statement of Changes in �kssets and Liabilities For the Fiscal Year Ended June 30, 2000 State Weight Tax Fund Assets Cash and cash equivalents Liabilities Warrants payable Accrued liabilities - due to State of Hawaii Total liabilities Improvement District No. 16 Assets Cash and cash equivalents Other receivable Total assets Liabilities Warrants payable Assets held for the benefit of improvement districts Total liabilities Improvement District No. 17 Assets Cash and cash equivalents Restricted assets - cash and cash egwv Total assets Liabilities Assets held for the benefit of improvement districts (Continued) Balance July 1, 1999 Balance June 30, Additions Deductions 2000 5536,297 $ 6.395,484 S 6,331,937 5599,844 $536,297 S 6,395,484 -- 6,395,484 5536,297 $12,790,968 $ 6,331,937 $599.844 6,395,484 -- $12,727,421 $599,844 $25,036 $646 $25,682 $ 50 -- 50 $25,086 $646 $25,732 $ 511,195 $25 $11,220 $ 13,891 646 14,537 525,086 $671 $25,757 $ $3,052,068 $1,880,664 1 400,000 $4.452,068 $1,880,664 $4,452,068 $1,880,664 116- $1,593,373 $3,339,359 1,400,000 $1,593,373 $4,739,359 $1,593,373 $4,739,359 COUNTY OF HAWAII Agency Funds Combining Statement of Changes in Assets and Liabilities For the Fiscal Year Ended June 30, 2000 (Continued) Improvement District Revolving Fund Assets Cash and cash equivalents Investments Total assets Liabilities Assets held for the benefit of improvement districts Improvement District Bond and Interest Redemption Fund Assets Cash and cash equivalents Liabilities Accrued liabilities - debt service on special assessment bonds Performance and Refundable Deposits Fund Assets Cash and cash equivalents Liabilities Warrants payable Due to other funds Customer advances and deposits Total liabilities (Continued) Balance July 1, 1999 Balance June 30, Additions Deductions 2000 S -- S 29,456 $ 29,456 $ -- 276,630 29,456 -- 306,086 $276,630 $58,912 $29,456 5306,086 $276,630 529,456 S -- $306,086 $ -- $1,592,488 $1,592,488 $ $ $1,592,488 $1,592,488 $ -- 597,151 $350,416 $258,378 $189,189 512,163 $264,301 $258,600 $ 17,864 638 921 699 860 84,350 350,355 264,240 170,465 $97,151 $615,577 $523,539 $189,189 117- COUNTY OF HAWAII Agency Funds Combining Statement of Changes in Assets and Liabilities For the Fiscal Year Ended June 30, 2000 Balance Balance July 1, June 30, 1999 Additions Deductions 2000 (Continued) Payroll Clearance Fund Assets Cash and cash equivalents $ $ 81,675,494 $ 81,675,494 $ Due from other funds 3,393,496 81,791,401 81,654,920 3,529,977 Other receivables 1,398 15,596 16,994 -- Total assets $3,394,894 $163,482,491 $163,347,408 $3,529,977 Liabilities Warrants payable $1,302,733 S 81,776,754 $ 81,903,444 $1,176,043 Due to other funds 1,193,168 1,424,869 1,196,883 1,421,154 Accrued liabilities 898,993 17,740,142 17,706,355 932,780 Total liabilities $3.394,894 $100,941,765 $100,806,682 $3,529,977 Flexible Spending Account Assets Cash and cash equivalents $169,687 $391,788 $401,500 $159,975 Liabilities Accrued liabilities $169,687 $391,788 5401,500 $159,975 Lapsed Warrants Fund Assets Cash and cash equivalents $ -- 14,506 $ -- $14,506 Due from other funds 14,610 7,175 14,610 7,175 Total assets $14,610 521,681 $14,610 $21,681 Liabilities Warrants payable $ -- 50 50 $ -- Due to other funds 7,200 -- 7,200 Accrued liabilities 14,610 7,175 7,304 14,481 Total liabilities 514,610 $14,425 $7,354 521,681 (Continued) 118- COUNTY OF HAWAII Agency Funds Combining Statement of Changes in Assets and Liabilities For the Fiscal Year Ended June 30, 2000 (Concluded) Von -Profit License Plates Fund Assets Cash and cash equivalents Liabilities Warrants payable Organ and Tissue Education Fund Assets Cash and cash equivalents Liabilities Accrued liabilities Total - All Agency Funds Assets Cash and cash equivalents Investments Due from other funds Other receivables Restricted assets - cash and cash equivalents Total assets Liabilities Warrants payable Due to other funds Accrued liabilities Customer advances and deposits Assets held for the benefit of improvement distncts Total liabilities Balance July 1, 1999 Additions $ -- $340 $ 88,505,391 S -- $340 1,197,582 1,083,290 S -- $55 84,350 S -- S55 $ 3,880,239 $ 92,331,337 276,630 29,456 3,408,106 81,798,576 1,448 15,596 1,400,000 $8,966,423 $174,174,965 Balance June 30, Deductions 2000 $140 $200 $140 S200 $ -- $55 $ -- $55 $ 91,908,448 81,669,530 17,044 $173,595,022 S 1,862,388 $ 88,436,954 $ 88,505,391 1,193,806 1,432,990 1,197,582 1,083,290 26,127,132 26,103,131 84,350 350,355 264,240 4,742,589 1,910,766 1.607,910 $8,966,423 $118,258,197 $117,678,254 - 119- S 4,303,128 306,086 3,537,152 1,400,000 $9,546,366 $ 1,793,951 1,429,214 1,107,291 170,465 5,045,445 $9,546,366 This page intentionally left blank - 120- GENERAL LONG-TERM DEBT ACCOUNT GROUP This account group accounts for the long-term debt of the Pnmary Government except that related to the Enterpnse Fund COUNTY OF HAWAII General Long -Term Debt Account Group Schedule of General Long -Term Debt June 30, 2000 With Comparative Amounts for June 30, 1999 Amount Available and to be Provided For Retirement of General Long -Term Debt Amount available in Debt Service Funds Amounts to be provided for general long-term debt General obligation bonds State Revolving Fund loans Accrued compensated absences Estimated claims and Judgments Capital lease obligations Landfill closure and postclosure care costs Total amounts to be provided for retirement of general long-term debt Total General Long -Term Debt Payable General obligation bonds payable 1977 Series A, public improvement bonds 1978 Series, refunding bonds 1989 Series, refunding bonds 1993 Series, refunding and public improvement bonds 1996 Series A, public improvement bonds 1996 Series B, public improvement bonds 1997 Series A, public improvement bonds 1999 Series A, public improvement bonds 1999 Series B, refunding bonds Total general obligation bonds payable Other general long-term debt State Revolving Fund loans Accrued compensated absences Estimated claims and Judgments Capital lease obligations Landfill closure and postclosure care costs Total other general long-term debt Total -121 - 2000 1999 S 9,785,133 $ 17,804,829 129,586,100 97,854,087 31,016,242 27,301,610 18,687,530 17,145,184 11,930,674 9,888.528 2,872,678 369,177 22,262,000 22,048,000 216,355,224 174,606,586 $226,140,357 $192,411,415 276,000 $ 293,000 18,355,000 1,350,000 1,800,000 57,220,000 60,255,000 27,795,000 28,925,000 680,500 709,000 3,614,500 3,749,500 30,000,000 16,670,000 13 7,606,000 114,086,500 32,781,475 18,687,530 11,930,674 2,872,678 22,262,000 88,534,357 28,874,026 17,145,184 9,888,528 369,177 22,048,000 78,324,915 $226,140,357 $192,411,415 COUNTY OF HAWAII General Long -Term Debt Account Group Schedule of Debt Sen -ice Requirements to Maturity for General Obligation Bonds June 30. 2000 $137,606,000 $63,331,020 $200,937,020 - 122 - Total Bonds Bonds Fiscal Outstanding Year at Ended Beginning Total June 30 of Year Principal Interest Requirements 2001 137,606,000 7,093,500 7,163,192 14,256,692 2002 130,512,500 7,418,000 6,811,544 14,229,544 2003 123,094,500 8,872,500 6,449,697 15,322,197 2004 114,222,000 8.812,500 6,035,991 14,848,491 2005 105,409,500 9,252,500 5,598,260 14,850,760 2006 96,157,000 9.723,500 5,142,762 14,866,262 2007 86,433,500 10 200,000 4,643,383 14,843,383 2008 76,233,500 7.893,000 4,112,268 12,005,268 2009 68,340,500 8.326,000 3,687,797 12,013,797 2010 60,014,500 8.773,500 3,231,999 12,005,499 2011 51,241,000 9.247.000 2,764,033 12,011,033 2012 41,994,000 9,747,000 2,265,932 12,012,932 2013 32,247,000 10,236,000 1,738,836 11,974,836 2014 22,011,000 4,520,500 1,182.730 5,703,230 2015 17,490,500 4,756,000 945,388 5,701,388 2016 12,734,500 5006,500 695,150 5,701,650 2017 7,728,000 2,648,000 429,496 3,077,496 2018 5,080,000 2.470,000 285,750 2,755,750 2019 2,610,000 2,610.000 146,812 2,756,812 $137,606,000 $63,331,020 $200,937,020 - 122 - GENERAL FIXED ASSETS ACCOUNT GROUP This account group accounts for all fixed assets of the Primary Government other than those recorded to the Enterprise Fund COUNTY OF HAWAII General Fixed Assets Account Group Schedule of General Fixed Assets by Source June 30, 2000 With Comparative Amounts for June 30, 1999 123 - 2000 1999 General fixed assets Land S 16,534,898 $ 16,183,543 Buildings and structures 224,950,257 209,712,329 Machinery and equipment 53,698,533 49,917,622 Construction in progress 21,201,546 29,019,446 Total 5316,385,234 $304,832,940 Investment in general fixed assets by source Capital Projects Funds General obligation bonds $ 101,399,687 S 92,276,810 Federal grants 67,933,551 69,786,389 State grants 31,754,680 31,623,975 General Fund revenues 33,118,962 30,407,181 General Fund - Federal revenue 6,108,567 6,088,917 General Fund - State revenue 2,244,647 1,718,858 Special Revenue Funds revenues 9,301,561 8,512,947 Contributions 3,626,555 3,226,234 Assets acquired prior to 1979 (sources undetermined) 60,897,024 61,191,629 Total $316,385,234 $304,832,940 123 - COUNTY OF HAWAII General Fixed Assets Account Group Schedule of Changes in General Fixed Assets by Function For the Fiscal Year Ended June 30 2000 124- Balance Balance July 1, June 30, 1999 Additions Deductions 2000 General government $ 14,941,063 $ 5,192,542 $ 4,131,399 $ 16,002,206 Public safety 43,437,560 1,639,598 336,456 44,740,702 Highways and streets 11,065,398 1,103,184 354,240 11,814,342 Sanitation 130,627,180 11,325,1 I 1 452,883 141,499,408 Health, education and welfare 569,566 65,097 16,710 617,953 Culture and recreation 61,870,509 5,387,164 245,310 67,012,363 Educational facilities 8,528,105 -- 6,911 8,521,194 Housing and community development 4,774,113 300,508 99,101 4,975,520 Construction in progress 29,019,446 6,391,693 14,209,593 21,201,546 Total $304,832,940 $31,404,897 $19,852,603 $316,385,234 124- COUNTY OF HAWAII General Fixed Assets Account Group Schedule of General Fixed Assets by Function and Acuvitv June 30, 2000 -125- Buildings Machinery and and Land Structures Equipment Total General government General government buildings S 415,07,5 $ 5,186,398 S -- $ 5,661,413 Mayor's office -- -- 161,077 161,077 County clerk 588.082 588,082 Data processing 462,010 462,010 Finance 1,233,998 1,233,998 Corporation Counsel 191,264 191,264 Prosecuting attorney 937.040 937,040 Planning 433,483 433,483 Personnel services 134,246 134,246 Research and development 80.504 80,504 Mass transit 3,217,150 3,217,150 Public works -- 2.901,879 2901,879 Total general government 475,075 5,186,398 10,340,733 16,002,206 Public safety Public safety buildings 1,902,047 20,823,227 -- 22,725,274 Police -- -- 8,173,493 8,173.493 Fire 13,213,158 13,213,158 Liquor 133,859 133,859 Civil defense 494,918 494,918 Total public safety 1,902.047 20,823,227 22,015,428 44,740,702 Highways and streets 1,917,900 2,197,771 7,698,671 11,814.342 Sanitation 608.058 133,202,9-171 7,688,379 141,499.408 Health, education and welfare 122,574 406,730 88,649 617,953 Culture and recreation 10,044.138 51,387,242 5,580,983 67,012.363 Educational facilities 26,001 8,495,193 -- 8,521.194 Housing and community development 1,439,105 3,250,725 285,690 4,975.520 Total general fixed assets allocated to functions and activities $16,534,898 $224,950.257 $53,698,533 295,183,688 Construction in progress 21,201,546 Total general fixed assets $316,385,234 -125- This page intentionally left blank - 126- STATISTICAL SECTION (UNAUDITED) Chart I COUNTY OF HAWAII General Governmental Revenues and Expenditures Comparison Last Ten Fiscal Years (In Thousands) $160,000 $140,000 $120,000 $100,000 $80,000 $80,000 $40,000 $20,000 11021 '.99, 91' \9919 199,1 lggl 95 1e�' 1991 14�1 9b 1eoi9 1990,0 -127- 11021 127- -129 fJ V: n Q JC N N n OC N OC N L� C n ^ J C; C of S N Q J J � fi Q a N J7 N �1 O n t O V w' J r J J n oc z Y O r vi n n a a r, oc o0 p y oo M— c n Q vi o vi Q � V O 7 w 69 V x 00 ,C" ol c .6 00 00 0° O v1 as _ J Op J �O v1 00 O r. vi V1 u r nD O M oo0 lc O 7 A N1 Q Q Q Vl vl vl V" V1 Y; d V1 IA N V` Q Vl 00 — 00 N n N J L » :L -129 Table 2 COUNTY OF HAWAII General Governmental Revenues by Source* Last Ten Fiscal Years (Values in Thousands) • Includes General, Special Revenue and Debt Service Funds 130- Licenses Charges Interest Fiscal Taxes and and inter- for and Year Assessments Permits Governmental Services Penalties Other Total 1991 566,632 $5,496 $22,451 $3,290 $6,223 $1,543 $105,635 1992 75,774 5,331 27,188 3,576 4,150 2,613 118,632 1993 86,964 4,941 26,617 4,555 3,039 3,995 130,111 1994 97,893 5.107 28,581 4,983 3,068 1,676 141,308 1995 100,028 5,788 31,684 5,439 4,205 1,588 148,732 1996 101,755 5,836 33,656 8,032 4,692 2,500 :56.471 1997 96,124 6,124 36,016 7,796 5,859 2,009 153,928 1998 97,332 6,351 38,893 8,885 5,881 1,756 159,098 1999 94,645 6,952 35,075 10,148 5,545 3,440 155.805 2000 93,324 7,261 32,572 11,215 5,282 1,883 151,537 • Includes General, Special Revenue and Debt Service Funds 130- Table 2a COUNTY OF HAWAII General Governmental Tax Revenues by Source* Last Ten Fiscal Years ( Values in Thousands) ' Includes General, Special Revenue and Debt Service Funds -132- Real Fiscal Property Fuel Franchise Year Tax Tar Tax Total 1991 $59,132 $5,269 $2,231 $66,632 1992 67,922 5,321 2,531 75,774 1993 79,000 5.349 2,615 86,964 1994 89,538 5.504 2,851 97,893 1995 91,200 5,613 3,215 100,028 1996 92,512 5,820 3,423 101.755 1997 86,490 5,783 3,851 96,124 1998 87,420 5,832 4,080 97,332 1999 84,792 5.900 3,953 94.645 2000 83,271 6,103 3,950 93,324 ' Includes General, Special Revenue and Debt Service Funds -132- -133- — N L r � J �i C� c ll �, r, a r, m m ~ — O h O u O r y M N O e'�1 O m N a Vl Orn O v� eV �n v e r o 69 x - � n u e N P ON N vi �0 Oen m x �% 69 T Z a 0 0 a P P om0 a P a a P a V w a m n c v r alc v u x- P M oc P O x a M 0 %O V'1 U vi .o r m m m ao 0o n x w a r M r� m P P r n e O e M m vi M r LL -133- Table 4 COUNTY OF HAW klI Assessed and Estimated actual Value of Taxable Real Property Last Ten Fiscal Years (Values in Thousands) Notes There is no personal property tax in Hawaii Assessment ratios are uniform statewide -134- Ratio of Real Property Total Assessed to Fiscal Assessed Estimated Total Estimated Year Value Actual Value Actual Value 1991 $6,299,590 56,299,590 100% 1992 7,323,123 7,323,123 100% 1993 9,220,304 9,220,304 100% 1994 10,812,347 10, 812,347 100% 1995 10,618,892 10,618,892 100% 1996 10.611,589 10,611, 589 100% 1997 10.279,240 10,279,240 100% 1998 10.156,903 10,156,903 100% 1999 9,929,443 9,929,443 100% 2000 10,083,3 84 10,083,3 84 100% Notes There is no personal property tax in Hawaii Assessment ratios are uniform statewide -134- 7 x 0 0 0 0 0 0 0 n J x Q orO N r 00 N VI M r r1 h ,+1 69 69 0 0 0 0 0 0 0 h h Yi V1 h �1 h h 00 0o x oo ao x x o0 O M O x Q x 0 00 — a N vQi v� x o x J cli R N U C � � u � „ a ° E_ 0. << °A<U a -135- Q O Q N O L r Q N J r O x� J x r1 x r rri o v N ago x rN�, 69 69 vOi C� C S O� j x C 0 0 0 0 0 C lc `O x N N1 lq� H — yr 0 0 0 0 0 0 0 0 Vl V"1 V1 Vl Yi V1 Vl Vl x x x x 00 00 OO 00 w O N b J N Q 0 ^I O w N C C � V L C a ° � � A v a u a c u w 0Op A O % V F a O A P Q r a Q a oc ry P oC O C O v7 C O N S M. O N NI N iA x o 0 0 0 0 0 o r w n x N Q C w��Pll 0 0 0 0 0 0 0 0 C a ao a s oo x a x n M M N x C Q a Q a^ n r r N M Vl N N Q S M eIi N x C 0 0 0 0 C 0 Q M x^ p n M x N r Q b'1 N 69 v1 v1 V1 vl V1 V1 vl V1 Q b9 p P r M M r N M n O P r n a^ OD x^ n n t5 U C � a P c P -136- i O r x N VM N Q C a Q vQi C n M n M n0 0 r 0 0� 0 0 BOJ Q x o 0 0 0 0 o c Q r P vi vi a O n x o0 N w c C V u u Q M Vl x N N M M V1 —— x � 69 x O O O O O O O V 6'f — o ool o h m vxi a vQi 69 69 00000000., �OxxooxxxxQ w OMO N M Q O O x M 00 �+1 h a0 M e r h v O W � 69 a x M N Ja0 r� Vl N^ N M� O N P r x O Q n per. M N P N r x r Q O N nOPO ONO O N M O H a -137- x n v,V M Q o c Vf � Oo C O O� O C O Q 69 — h r 00 n Q N x M V; T r Nr0 N r T - Y1 Yl 69 00000000 x x x x x x x x Q P O M �O O rt 0�0 0 r N x Q Q= r P M w Q b9 A - C O O Y O 0 u a � � � Y A xrrvi a r` c i x oQc C a� c .6 c� n - C c c � ry rrvj � x n c rxv o c ^ ^ N N P 69 6A m O O O O O O O Q _ oc0000cc�., V1 V'1 V". V1 Vl Y: Vl V: Q W W 00 00 'JO 00 CO GO Q of a N x vOi n T P W rO OM o� o r` o; 7 u N L+ O E o E ' y 0 A a v_ N x o vi N P ry C O N M • � N P N Q O O M v'. N Q x Q^ N v 0 Vi b9 x O C O O O O O Q v1 Q N aO Q O C P O ri Yl Vl V` V1 �/1 Vl V: Vl Q OO N 00 'JO CO W 00 GC Q w r .0 r P Q M M Q tb v r h x r N N— N o0o C^ O x lz� 0 0 N -138- f W O Z Chari 4 COUNTY OF HAWAII Assessed Value of Real Property Last Ten Years (In Thousands) 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 - 139- Table 6 COUNTY OF HAWAII Principal Taxpayers June 30, 2000 ?rote Gross valuation at January 1, 1999 - 140 - $908,796,500 7 490 $12,101,003,382 Percentage 1999 of Total Assessed Assessed Taxpayer Business Valuation Valuation Global Resort Partners Hotel $186,149,600 15% Kaupulehu Makai Venture Developer 158,187,600 1 300 South Kohala Resort Corp Hotel 106,122,000 099, Mauna Kea Beach Hotel Corp Hotel 96,063,200 0 890 Mauna Lani Resort Inc Hotel 77,207,700 0 690 B P Bishop Estate Land trust 65,594,100 0 590 M L Hotel Investors LP Hotel 65,543,100 0 5% KM Kona Partners Developer 61,400,400 0 590 RWH Inc Hotel 47,000,000 0 490 Kona Coast Resort Ltd Time share 45,528,800 040,o ?rote Gross valuation at January 1, 1999 - 140 - $908,796,500 7 490 $12,101,003,382 COUNTY OF 14AWAII Computation of Legal Debt Margin June 30, 2000 Total assessed value Limitation as set by the Constitution of the State of Hawaii (A) Amount of debt applicable to debt Imut (B) Less County general obligation bonds $149,255,200 State Revolving Fund loans 32,781,475 Other debt 1,135,139 183,171,814 Bonds maturing in current fiscal year 8,019,900 SRF loan principal maturing in current fiscal year 1,712,624 Bonds reimbursable by DWS 10,722,800 20.455.324 Total amount of debt applicable to debt Imut Legal debt margin Table 7 SIO 083,383,652 1,512,507,548 162,716,490 $1,349,791,058 (A) The bonded debt lumtation of the County of Hawaii is established at 15% of the total assessed value of all county real property as established for tax purposes on the last tax assessment rolls (B) The Constitution of the State of Hawaii, as amended in 1978, states that the debt limitation is not applicable to indebtedness incurred under revenue bond statutes, or by a public enterprise when the only security for such indebtedness is the revenues of such enterprise, or of indebtedness incurred under special improvement statutes when the security for such indebtedness is the properties benefited or improved or the assessments thereon, or, under certain conditions, to certain types of general obligation bonds issued by the County or State of Hawaii 141- 4 _1 —142— Z c x r a a c c Z co u N z n N T u 7 v 7 y - N.. N- O Q - -- y N Z C2 T - en T N y �? a0 O O °e 'o O O u �+ J J N U C u = � u r r oo r o e -• N Q o 5 c aD O r T r r N C T N C a N vii N O 10 0. co a r r v m 3 oo T 3 c T Ni oo n T aG h x N cr O T P M n P v`^t .D .. vO1 L V T y P N� N N y V y� y Vai NQ1 70 T Q� y p r a o 0 o c o T L v N N vt r OO n = N V CL. < cu = yl a m aaaaa�aaa8 —142— Table 9 COUNTY OF HAWAII Ratio of Annual Debt Service Expenditures For General Obligation Bonded Debt To Total General Governmental Expenditures Last Ten Fiscal Years -143- Ratio of Debt Total Total Service to General Fiscal Debt General Governmental Year Principal Interest Service Expenditures Expenditures 1991 52,681,000 $6,324,606 $9,005,606 $102,457,902 88% 1992 3,026,000 6,137,804 9,163,804 115,070,212 80% 1993 3,992,000 5,936,363 9,928,363 123,140,556 81% 1994 4,923,187 6,459,361 11,382,548 134,984,061 84% 1995 5,335,443 6,245,235 11,580,678 139,831,035 8 3% 1996 5,327,414 6,067,082 11,394,496 140,225,931 81% 1997 5,984,439 7,597,939 13,582,378 153,420,338 89% 1998 6,422,996 7,724,699 14,147,695 158,376,171 89% 1999 7?93 319 7,481,465 15,274,784 156,703,788 97% 2000 8,688,267 7,693,992 16,382,259 156,081,429 105% -143- Table 10 COUNTY OF HAWAII Demographic Statistics Last Ten Fiscal Years Fiscal Per Capita School Unemployment Year Population Income Enrollment Rate A 1990 120,317 • $16,393 26.745 40% 1991 127,350 16,642 27,834 45% 1992 131,272 16,948 28,587 81% 1993 134.191 17,284 29,433 75% 1994 136,284 17,710 30,164 108% 1995 138,537 18,352 28,188•• 102% 1996 139.726 18,825 30,497'• 99% 1997 141,848 19,147 30,599 102% 1998 143.135 19,686 30,715 97% 1999 142,390 N/A 29.926 87% (A) Calendar year Sources • 1990 Census (all other population figures as estimated by State Department of Planning and Economic Development) •• Public school enrollment only Other data from County Department of Research and Development 144- Z O U PA -145- Ci m o d n °p yv 25 omo a< o a a a a<< a eo-i � z z z z z z z z v: ry n O• N M - 01 00 N Vlr 1 Q v'1 m 000 aro P N C N N rrh -145- Ci m n °p yv 25 omo v o opo a eo-i � ry m r O N r o v: ry n O• N M - 01 00 N Vlr 1 Q v'1 m 000 aro P N C N N rrh v o. �o N N a, r o o m o• IComo v o o ao o— m r o• — 0 M rti ri r M Q Y1 Q r z -145- Ci m n °p yv 25 omo v o opo a eo-i � �n a �n o -• vi v, a Q O• N M - P 00 N Vlr 1 Q v'1 m 000 aro P N C N N rrh v o. �o N N a, r o o m o• 0 h Q N r M Q Y1 Q r z -145- Ci m O• N M - P 00 N Vlr 1 Q v'1 m 000 aro P N C N N rrh v o. �o N N a, r o o m o• N h Q N r M Q Y1 Q r L u O 6. N m b N N N O• r 0 h ^ N N M Q M N1 M M M M O `^ U YI T T T a a T a O� Ol O, -145- Ci m Table 12 COUNTY OF HAWAII Miscellaneous Statistical Data June 30, 2000 Date first charter adopted June 1968 Form of government Mayor Council Area in square miles 4,038 Miles of streets (County only) 861 Number of street lights 8,462 Fire protection Number of stations 18 Number of fire fighters and officers (exclusive of volunteer fire fighters) 284 Police protection Number of stations 8 Number of substations 4 Number of police officers 391 County water service Number of consumers 35,084 Average consumpnon in gallons per day 22,820,571 Niles of water Innes 1,848 Miles of sanitary sewers (County only) 47 Number of building pernuts issued Building permits 3,466 Electrical perms 2,939 Plumbing permits 2,485 Sign permits 67 Recreation and culture Number of parks 118 Number of gyms and recreation centers 38 -146-